Pennsylvania Legislation
Click on the below to read the Pennsylvania Legislation for the following years:
2013
2012
Pennsylvania Legislation 2013
Pennsylvania Legislation 2012
Senate Bill 192 (filed on September 5, 2012)
“Bail bondsman.” A person or entity that is authorized to execute bail bonds or to solicit business on its behalf that: (1) Either: (i) engages in the business of giving bail, giving or soliciting undertakings, or giving or soliciting indemnity or counterindemnity to sureties on undertakings; or (ii) within a period of 30 days has become a surety, or has indemnified a surety, for the release on bail of a person, with, or without a fee or compensation, or promise thereof, in three or more matters not arising out of the same transaction. (2) Is licensed as a corporate surety bail bondsman or self-insured bail bondsman as provided in this chapter. “Corporate surety bail bondsman” A person licensed by the Insurance Department to provide bail bonds to the general public and authorized by a corporate surety insurer to execute bail bonds as attorney-in-fact for the corporate surety insurer.
“Department” The Insurance Department of the Commonwealth “Self-insured bail bondsman” A person licensed by the Insurance Department to provide bail bonds to the general public and that provides financial security as collateral for the bail bonds.
Section 5742 Registration and Licensure Required
(a) General rule-No bail bondsman shall become surety on an undertaking, and no person shall engage in or continue to engage in business providing bail bonds to the general public, unless he has been registered and is currently licensed as a professional bondsman by the Insurance Department, at a minimum, fulfilled the requirements for the issuance of a casualty insurance license as determined by the department, has secured a casualty insurance license from the department and has filed a copy of his license in the office of the clerk in the manner prescribed by general rules.
(b) Form of application-Every application for licensure as a bail bondsman shall comply with the application requirements for a casualty insurance license issued by the department and shall complete all educational, testing, financial and fiduciary requirements imposed by law for obtaining a license as a casualty insurance agent.
Section 5743 Issuance of License
(a) General Rule-Upon receipt of:
(1) an application for registration and licensure as a professional bondsman; and
(2) an annual license fee of $50; The department shall issue a license to an applicant who satisfactorily meets the requirements established by the department for insurers of casualty insurance and pays the associated licensing fee.
(a.1) Territorial scope of license-a bail bondsman may only conduct business in a judicial district when he provides either: (1) a copy of the casualty license issued to him by the Pennsylvania Office of Judicial Support to the office of the clerk of the court for the judicial district and a copy of a power of attorney qualifying him to provide bail bond services on behalf of a corporate bail surety insurer; or (2) security in the amount of $50,000 for the first $150,000 of the total amount of bail bonds to be provided and $10,000 for every additional $100,000 thereafter…..
(b) Duration-Each license shall be valid for two years following the date of issue.
(c) Nontransferable-No license issued under this subchapter shall be assigned or transferred.
Section 5744 Office
No license shall be issued to, and no privileges or rights conferred by any license issued under the provisions of this subchapter shall be exercised by, any bail bondsman, unless he has and maintains an office in the county in which he conducts or intends to conduct his business.
The department may not grant a license or renew a license under this chapter to an applicant if any of the following provisions apply:
(1) The applicant was convicted or pled guilty or nolo contendere to an offense of fraud, theft, deception, use of false identification or similar charge
(2) The applicant violated any of the licensing requirements relating to a casualty insurance agent license, including continuing education requirements. If a license renewal is denied for failure to complete continuing education requirements, then the applicant shall be afforded 90 days to cure the defect. Upon cure, the applicant must provide notice of completion of the continuing education requirements to the department, and the department shall grant the renewal of the license, if no other cause exist for denial of the renewal. If the applicant fails to cure the defect in a timely manner, the applicant must apply for a new license rather than a renewal.
(3) The applicant fraudulently obtained a license as a casualty insurer agent or bail bondsman
(4) The applicant was adjudicated bankrupt or insolvent
(5) The applicant failed to pay any judgment rendered on any forfeited undertaking in any court of competent jurisdiction
(6) The applicant interfered or attempted to interfere with the administration of justice
Section 5746 Suspension or Revocation of License
(a) General rule-Upon petition of the district attorney, count solicitor, clerk of court or by any interested person to suspend or revoke the license issued to any licensee under the subchapter, the department shall issue a rule, returnable not less than ten days after the issuance thereof for the licensee to show cause, if any, why the licensee should not have its license revoked or suspended. It shall be sufficient service of the rule upon any licensee to leave a copy thereof at the address provided by the licensee to the department under the license requirements of a casualty insurance agent.
(b) Grounds for suspension or revocation- any license issued under the provisions of this subchapter may be suspended by the department for a period less than the unexpired portion of the period for which the license was issued, or may be revoked for good cause, or for any one or more of the following causes:
(1) Violation of any of the provisions of this subchapter or of the licensing requirements relating to a casualty insurance agent license, including, but not limited to, continuing education requirements, unless the violation of the continuing education requirements has been remedied consistent with section 5745.
(2) Fraudulently obtaining a license as a casualty insurance agent or bail bondsman under the provisions of this subchapter, other provisions relating to insurance licensing in this Commonwealth or any other jurisdiction within the United States.
(3) Upon conviction for an offense of fraud, theft, deception, use of false identification or same or similar offense under 18 Pa.C.S. or any other Federal or state offense.
(4) Upon being adjudged (a) bankrupt or insolvent in this Commonwealth or any other jurisdiction within the United States.
(5) Failing to pay any judgment rendered on any forfeited undertaking in any court of competent jurisdiction
(6) Any interference or attempted interference with the administration of justice
(c) Good cause-if the petition for suspension or revocation is based upon the failure of the licensee to pay a forfeited undertaking, proof that the forfeited undertaking has been paid to the office of the clerk or that the defendant has been returned to justice shall be evidence of good cause that the license shall not be suspended or revoked.
(d) Notice to Surety-(1) if suspension or revocation proceedings are commenced against a bail bondsman and he has provided a qualifying power of attorney on behalf of a corporate surety insurer to the office of the clerk and the suspension or revocation proceedings are based upon the failure of the bail bondsman to pay a forfeited undertaking, notice shall be sent by the department to the corporate surety insurer of the administration action and the nonpayment of the forfeited undertaking. (2) If the bail bondsman cannot demonstrate good cause and, as a result, the license is suspended, notice of nonpayment shall be sent to the corporate surety insurer on whose behalf the bail bondsman is appointed to do business
(e) Duty of corporate surety insurer to pay (1) Within 20 days of receiving the notice of payment, the corporate surety insurer shall pay the forfeited undertaking amount to the office of the clerk or, if payment is not rendered within the 20-day period, the clerk of courts shall send notice to the department seeking revocation of its certificate of authority to do business in this commonwealth. A copy of the notice sent by the clerk to the department shall also be sent to the corporate surety. (2) The department may revoke the certificate of authority 30 days after the date of the mailing of the notice of intent to revoke the certificate of authority. Revocation proceedings shall conform substantially to the existing practices determined by the department. (3) If the forfeited undertaking is paid after the 20-day period, but prior to the exhaustion of the 30-day notice period to the department, the revocation of the certificate of authority shall be deemed moot and the certificate of authority shall remain in full force and effect.(4) If the forfeited undertaking is paid and the corporate surety recuperates the defendant, the corporate surety may petition the court for remission of the forfeiture as provided under section 5750 (relating to private cause of action).
Section 5747 Statements by Bail Bondsmen
A bail bondsman shall file, with the clerk of the court of the judicial district where bail is entered, a biannual statement on which shall appear a statement which shall appear a summary of all bail entered by the bail bondsman during the previous reporting period, together with the compensation charged therefor.
Section 5748 Premiums
(a) General rule
Any corporate surety bail bondsman or self-insured bail bondsman who knowingly or intentionally fails to charge the premium rate filed with and approved by the department commits a misdemeanor of the third degree. In addition to any criminal liability imposed by law, the department shall establish sanctions for failure to charge the required premium.
(a.1) Defense-It shall not be a violation of subsection (a) if the bail bondsman failed to collect the full premium by an unknowing or unintentional act or by mistake
(b) Civil Penalty
(c) Promissory Note
(1) If a surety bail bond agent determines to extend credit for payment of the premium, the surety bail bond agent must have the defendant and the indemnitor execute a bona fide promissory note for the balance of the premium due. The promissory note shall provide that the amount owed must be paid in not later than 365 days.
(2) In the event that the premium has not been paid in full to the surety bail agent by the due date, the surety bail agent must institute suit, by a verified complaint, on the promissory note within 60 days after the due date. The surety bail agent must diligently attempt to obtain judgment on that promissory note within 120 days after filing suit unless there is good cause for failure to obtain such a judgment.
(3) Good cause includes, but is not limited to, the filing of bankruptcy by a maker on the promissory note, or a failure to obtain service of process after good faith, diligent efforts.
(d) Audit- at any time, upon five days’ advance notice to the bail bondsman, the department may audit any bail bondsman to assure that the bail bondsman is charging the full amount of premium consistent with the premium rate filed with and approved by the department. The said audit shall determine the approved premium rate, the amount of premium collected, the case docket number if assigned, the total amount of the surety bond, the date the surety bond was posted and the date the premium computed at the filed rate was due.
Section 5749 Prohibitions and Penalties
(a) Licensing- any person who engages in business as a bail bondsman without being licensed in accordance with the provisions of this subchapter, or who engages in such business while his license is suspended or revoked, commits a misdemeanor of the third degree and shall be prohibited from conducting business as a bail bondsman in this Commonwealth for the remainder of the person’s lifetime and from holding himself out as a licensed bail bondsman.
Section 5750 Private cause of action
(a) Self-policing-any bail bondsman or surety who determines that a competitor has engaged in an activity that is in violation of any provision of this chapter may commence a private cause of action seeking monetary damages, declaratory judgment or injunctive relief from the court of common pleas of the county in which the violation occurred. The violation must be proven by clear and convincing evidence.
(b) Frivolous actions-any bail bondsman or surety who knowingly commences a frivolous private cause of action under this section shall be liable for actual damages of the other party in the amount of the costs of the defense of the suit and punitive damages of an equal amount to those costs that constitute actual damage.