03-10152 Bail Bonds(Published in the Salina Journal on July k, 2003)
ORDINANCE NUMBER 03-10152
AN ORDINANCE AMENDING CHAPTER 23, ARTICLE II,
SECTIONS 23-16 THROUGH 23-37 OF THE SALINA CODE PERTAINING
TO BAIL BOND AGENTS AND COMPANIES AND REPEALING EXISTING
SECTIONS 23-16 THROUGH 23-37.
BE IT ORDAINED by the Governing Body of the City of Salina, Kansas:
Section 1. That Sections 23-16 through 23-37 of Chapter 23, Article II of the Salina Code is
hereby amended to read as follows:
"ARTICLE II. BAIL BOND AGENTS AND COMPANIES
DIVISION 1. GENERALLY
Sec. 23-16. Definitions.
The following word, terms or phrases, as used in this article, shall have the following
meanings:
Bail bond agent. A person who acts in writing bonds on behalf of a bail bond company.
Bail bond company. Any person or firm, other than an insurance company, who issues
bail bonds for compensation.
Crime. A crime is an act or omission defined by law and for which, upon conviction, a
sentence of death, imprisonment or fine, or both imprisonment and fine is authorized, or
in the case of a traffic infraction, a fine is authorized. Crimes are classified as felonies,
misdemeanors and traffic infractions.
Insurance agent. Any person licensed by the Kansas State Insurance Commissioner to
write surety bonds in the State of Kansas and who represents an authorized insurance
company.
Insurance company. A company authorized by the Kansas State Insurance
Commissioner to write surety bonds.
Licensee. Any licensed bail bond agent or bail bond company.
Person. A firm, partnership, association of persons, corporation, organization or any
other group acting as a unit, as well as an individual.
Sec. 23-17. Entering, loitering, soliciting business at the police department, Saline
County jail, municipal court or district court.
It shall be unlawful for any person, whether acting on the person's own behalf or
through an agent or representative:
(1) To enter the police department, Saline County jail, municipal court or for
the purpose of obtaining employment as a bail bond agent without having
been called by a person in custody or some other person acting on behalf
of the person in custody.
(2) To loiter in the police department, Saline County jail, municipal court or
district court. Such licensee shall conduct business as quickly as possible
and leave the premises immediately upon completion.
(3) To personally or otherwise solicit or refer business in, at or near the
police department, Saline County jail, municipal court or district court.
Sec. 23-18. Attorney referral.
It shall be unlawful for any licensee:
(1) To recommend, directly or indirectly, any lawyer to a client for whom a
bond has been executed.
(2) To refuse to issue a bail bond unless a particular attorney is retained.
(3) To offer any legal advice to a client, predict the outcome of a case to a
client, or advise a client to appeal a decision of the court.
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(4) To speak with an attorney on behalf of a client.
Sec. 23-19. Referral of bail bond business for compensation prohibited.
It shall be unlawful for any licensee to directly or indirectly give or promise to give any
compensation to secure, send or refer bail bond business to the licensee, unless such
person is licensed as an agent of the licensee.
DIVISION 2. LICENSES*
Sec. 23-20. Bail bond company license; required.
It shall be unlawful for any person, other than an insurance company authorized to do
business by the Kansas State Insurance Commissioner, to demand or receive
compensation for providing surety on any bail bond, recognizance bond, appeal bond or
other court bond unless such person is licensed as a bail bond company as provided by
this article.
Sec. 23-21. Same --Application.
Any person desiring to secure a license for a bail bond company shall file with the city
clerk an application provided by the city clerk. Such application shall contain the
following information and any other information deemed necessary by the city clerk:
(1) The business name, address, phone number and type of business entity.
(2) The name, home address, home phone number and date of birth for each
owner.
(3) A statement from each owner listing any criminal conviction, including
traffic infractions within five (5) years of the application date
(4) A statement from each owner listing any pending criminal charge,
including traffic infractions.
(5) A statement from each owner listing any criminal conviction for which
they are currently on diversion, probation or parole.
(6) A statement from each owner listing any unsatisfied forfeiture or
judgment thereon entered on any bail bond written by the owner or the
firm in any court.
(7) A ten thousand dollar ($10,000.00) irrevocable letter of credit as provided
in sections 23-22.
Sec. 23-22. Bail bond company license; Irrevocable letter of credit.
(a) The applicant shall use as security for issuing bail bonds a bank issued
irrevocable letter of credit in a form approved by the city clerk, with the
following minimum requirements:
(1) Shall show the City of Salina only as beneficiary.
(2) Shall have a minimum value of ten thousand dollars ($10,000.00).
(3) Shall expire no sooner than March 31 following the licensing period.
(4) Shall contain provisions that the lending agency must give the city clerk
thirty (30) days notice prior to cancellation.
(5) Shall contain provisions allowing the City of Salina to collect on any
open bonds the licensee may have should the letter of credit not be
renewed, as outlined in subsection (c) below.
(b) If the city must make demand upon the letter of credit such that the amount
secured by the letter falls below ten thousand dollars ($10,000.00), the licensee
shall have to provide to the city clerk written evidence from the issuing bank that
credit of a minimum value of ten thousand dollars ($10,000.00) has been
restored. Until such time that the letter of credit is restored, the bail bonding
company shall be removed from the bonding list and unable to write any new
bonds.
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(c) If the applicant has any open bonds and fails to renew the letter of credit, whether
or not the applicant is still operating as a bail bonding company, the city shall, no
sooner than one week prior to the expiration of the letter of credit, collect on the
letter of credit for the amount of the open bonds and hold the funds as a cash
bond. Any funds not needed to pay forfeitures will be returned to the bonding
company once the bonding company has been released from any liability. Should
a company no longer desire to operate as a bail bonding company and not wish to
revoke any open bonds or have the city collect on the letter of credit, a letter of
credit may be given for the amount of the bonds still open. Such reduced amount
letter of credit shall not expire for a minimum of three (3) months. Should there
still be open bonds upon its expiration, the same procedures as outlined above
will be followed.
Sec. 23-23. Bail bond agent license; required.
It shall be unlawful for any person who acts in writing bonds as an employee or owner of
a bail bond company to do so unless licensed as a bail bond agent as provided by this
article.
Sec. 23-24. Same --Application.
Any person desiring to secure a license as a bail bond agent shall file, with the city clerk,
an application provided by the city clerk. Such application shall contain the following
information and any other information deemed necessary by the city clerk:
(1) The name, home address and home phone number of the applicant.
(2) The applicant's date of birth.
(3) A statement listing any criminal convictions, including traffic infractions,
within five (5) years of the application date.
(4) A statement listing any pending criminal charge including traffic
infractions.
(5) A statement from each owner listing any criminal conviction for which
they are currently on diversion, probation or parole.
(6) Name, address and phone number of the bail bond company where the
agent will be employed.
Sec. 23-25. Examination of application, investigation, report on criminal record of
applicant, approval, issuance, appeal of denial.
(a) If the application for a license is in proper form and accompanied by the license
fee as prescribed in section 2-2, the police chief, city prosecutor and the city
clerk, or their representatives, shall cause an investigation to be made of the facts
set forth in the application and of the record of such applicant in the municipal
court and the district court of the county, and any other courts in which the chief
of police may have reason to believe the applicant has a record.
(b) No license shall be issued to:
(1) A person who, within five (5) years prior to the date of the application,
has been convicted of a felony.
(2) A person who shall have any unsatisfied forfeiture or judgment thereon
entered on any bail bond in any court.
(3) A person unless the face value of its letter of credit payable to the city
equals a minimum of ten thousand dollars ($10,000.00).
(4) A person, unless all the owners shall be qualified to obtain a license.
(c) If an applicant:
(1) is currently on diversion, probation or parole for any criminal offense
other than a traffic infraction;
(2) has criminal charges other than a traffic infraction pending in any court;
(3) within the last five (5) years has been convicted for a criminal offense
other than a traffic infraction; or
(4) has previously had bail bond company or bail bond agent license revoked;
then
(d) The city manager shall consider the application for a license, the report and
recommendation, and any other relevant information received concerning the
applicant. If satisfied with the application, the city manager may approve the
application.
(e) If the application is approved, the city clerk shall issue a license to the applicant.
If the application for the license is denied, the license fee shall be returned.
(f) Any denial of the application by the city manager may be appealed to the
governing body by filing a notice of appeal with the city clerk in accordance with
Section 23-33.
Sec. 23-26. Fingerprinting.
All applicants for bail bond company or agent licenses shall be fingerprinted. The cost of
the fingerprinting is the responsibility of the applicant.
Sec. 23-27. Photo -identification badge.
Upon the issuance of a bail bond agent license, the city clerk shall issue a photo -
identification badge to the licensee, which shall be worn by the licensee in such a way as
to be conspicuous at all times when the licensee is acting as a bail bond agent. The
licensee shall return the badge to the city clerk upon the expiration or revocation of the
license.
Sec. 23-28. Notification of certain events.
All licensees under this article shall be required to immediately report to the city clerk:
(1) Any criminal charge, including traffic infractions filed against the
licensee.
(2) Any criminal conviction, including traffic infractions against the licensee.
(3) Any unsatisfied forfeiture or judgment thereon entered on any bail bond
in any court.
The city clerk shall administratively develop a system whereby the Salina Municipal
Court and the Saline County District Court shall be advised of any information reported
under this section.
Sec. 23-29. Judicial suspension or restriction.
Pending a formal hearing and final determination by the city manager, the municipal
judge shall have the authority to temporarily suspend or restrict the authority of any
licensee under this article from issuing any bond if the municipal judge determines that
continued exercise of licensee's authority adversely impacts the effective administration
of the court. No judgment shall be rendered regarding the temporary suspension or
restriction of the bonding authority of a licensee without first providing an opportunity
for the licensee to be heard by the municipal judge. Immediately following a judgment,
both the city manager and the licensee shall be provided written notification of the
specific judgment, findings supporting the judgment and the municipal judge's
recommendation for further action.
Sec. 23-30. Administrative suspension or revocation, notice, hearing, decision,
appeal.
(a) Any license issued under this article may be suspended, restricted or revoked by
the city manager, after notice and hearing, for any of the following reasons:
(1) If the licensee fraudulently obtained the license by giving false
information in the application.
(2) If the licensee has violated any of the terms of this article.
(3) If the licensee has become ineligible to obtain a license under the
provisions of this article.
(4) If the licensee fails to make a timely report to the city clerk as required by
section 23-28.
(5) If the licensee charges fees in excess of the maximum fee in the fee
schedule provided by the licensee in section 23-34(b).
(6) If a judgment entered in Salina Municipal Court on a bond involving a
licensee is unpaid.
(7) If a licensee fails to restore the required letter of credit as provided in
section 23-22.
(8) If the municipal judge determines that continued exercise of licensee's
authority adversely impacts the effective administration of the court.
(b) The city manager may immediately suspend, restrict, or revoke any license,
pending a restriction, suspension or revocation hearing if the public safety or
welfare is best served by such action, or if the licensee has repeatedly failed to
properly serve the public interest in carrying out the duties of either a bail bond
company or bail bond agent in accordance with this article. A hearing shall be
set not later than ten (10) working days from the date of receipt of the appellant's
written statement or written recommendation from the municipal judge. Notice
of a hearing for restriction, suspension or revocation of a license issued pursuant
to this article shall be provided in writing and shall set forth specifically the
grounds for the proposed action, and the time and place of the hearing. Notice
shall be mailed, postage prepaid, to the licensee at the address shown on the
license application or at the last known address of the licensee. Following the
hearing, the licensee shall be notified in writing of the decision, including any
restriction guidelines, duration of any suspension or any prerequisites to
reapplication imposed in conjunction with any revocation.
Secs. 23-31— 23-32. Reserved.
Sec. 23-33. Appeals to governing body.
(a) Any applicant or licensee aggrieved by the action or decision of the city manager
to deny, suspend or revoke a license under this article shall have the right to
appeal such action or decision to the governing body within ten (10) days after
the notice of the action or decision has been mailed to the person or firm.
(b) An appeal to the governing body shall be taken by filing with the city clerk a
written statement setting forth the grounds for the appeal.
(c) A hearing shall be set not later than twenty (20) working days from the date of
receipt of the appellant's written statement.
(d) Notice of the time and place of the hearing shall be given to the appellant in the
same manner as provided for the mailing of notice of hearing provided in section
23-30(a) above. The decision of the governing body on the appeal shall be final
and binding on all parties concerned. Any denial of an application by the
governing body shall be subject to appeal pursuant to then applicable state law.
Sec. 23-34. List of licensees and fee schedules; posting.
(a) The city clerk shall maintain a list of persons licensed under the provisions of
this article and their telephone numbers. At any time the list of persons licensed
changes, the city clerk shall provide the Saline County sheriff with a copy of the
revised list for posting in such manner and in such locations as the sheriff
designates.
(b) Each company shall furnish to the city clerk a schedule of the minimum and
maximum fees charged by such licensee. This section shall not be construed as
setting the fees of the licensees and such licensees may charge such fees as they
may desire so long as the fee is within the limits set forth in the schedule of fees
furnished by the licensee.
Sec. 23-35. Insurance agent/company; registration.
(a) Any Kansas licensed insurance agent desiring to operate a bail bonding company
as a representative of an underwriting insurance company must register in the
office of the city clerk. On a form provided by the city clerk, the agent shall be
required to provide the following:
(1) Name, address and phone number of agent.
(2) Name, contact person, address and phone number of insurance agency.
(3) Copies of power of attorney and sample bond form.
(4) Proof that the insurance company is authorized by the Kansas Insurance
Commissioner to do business in the state.
(5) Copy of the agent's current Kansas insurance license.
(6) Name, manager name, address and phone number of business if different
from (a) above.
(b) A separate registration form for each agent working under the same company
name is required.
(c) Each insurance agent acting as a bail bond agent shall be required to obtain and
wear a photo identification badge as outlined in section 23-27.
(d) There shall be no license fee assessed for registration under this section, except a
fee shall be charged for the identification badge required by subsection (c) above.
Sec. 23-36. Insurance bonds; forfeited.
(a) Any bond provided by an insurance agent shall be due and payable upon the
forfeiture date set by the municipal judge. If an agent fails to pay a forfeited bond
within the allotted time, the city clerk shall contact the underwriting insurance
company for payment.
(b) The city clerk may remove the insurance agent and/or the business from the list
of those authorized to bond, as provided in section 23-34(a), if any forfeited
bonds are not paid in a timely manner.
Sec. 23-37. Application of general rules regarding licenses.
Unless more specifically provided in this article, the general rules regarding licenses
contained in Chapter 20 of this Code shall also apply to licenses issued pursuant to this
article."
Section 2. That the existing Sections 23-16 through 23-37 of the Salina Code are hereby
repealed.
Section 3. That this ordinance shall be fin full force and effect from and after its adoption
and publication once in the official city newspaper.
Introduced: June 23, 2003
Passed: July 7, 2003
CU44-1, �.
Alan E. Jilka,ayor
[SEA]L)
ATTEST:
Lieu Arm Nicola, City Clerk