HCS HB 253 -- BAIL BOND AND SURETY RECOVERY AGENTS

SPONSOR:  Boucher (Ross)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Public
Safety, Law Enforcement and Veteran Affairs by a vote of 18 to 0.

This substitute establishes licensing requirements for bail bond
agents and surety recovery agents (bounty hunters).  Under the
provisions of the substitute, both general bail bond agents and
bail bond agents are required to be licensed by the Department
of Insurance.  General bail bond agents are allowed to act only
through a licensed bail bond agent.  A bail bond agent is
required to hold an appointment by a general bail bond agent and
to have a numbered power of attorney.  The power of attorney for
a bail bond agent is required to be included with the license
application.  Appearance bonds issued by the bail bond agent
cannot exceed the amount specified in the power of attorney.

Applicants are required to demonstrate that they have obtained a
bond or insurance policy of at least $300,000 for damage to
persons or property caused by the applicant.  Applicants for
general bail bond agent licenses are required to demonstrate
that they have liquid assets and an assignment to the state in a
specified amount based on the number of bail bond agents
employed.

Licensees are prohibited from making agreements with certain
officials or attorneys in order to reduce the amount of a bond,
and a licensee is not permitted to accept anything from a
principal other than the premium or collateral security.  The
substitute lists the grounds for discipline of a licensee, as
well as the procedure for disciplinary action before the
Administrative Hearings Commission.  The Department of Insurance
is required to investigate the bail bond business transacted in
Missouri, including violations of the bail bond law.

Bail bond agents are required to notify and submit certified
copies of all pertinent paperwork to local law enforcement
officials prior to making or attempting an apprehension.  Local
law enforcement officials may accompany the agent.  Violations
will be a class A misdemeanor for first offenses and a class D
felony for subsequent offenses.  Bail bond agents who wrongfully
cause damages to persons or property are liable for the damages,
which may include punitive damages.

The substitute defines a surety recovery agent as any person who
tracks down, captures, and surrenders custody of a fugitive to
the court.  Surety recovery agents are required to be licensed
by the Department of Insurance and to possess a $1 million bond
or insurance policy.  The department will determine the
sufficiency of qualifications of applicants, who must be at
least 21 years of age and have completed an approved surety
recovery course with at least 40 hours of training.  Surety
recovery agents from other jurisdictions may receive a
reciprocal license from Missouri.

The substitute specifies the grounds for which the department
may seek discipline of a licensee before the Administrative
Hearing Commission.

A surety recovery agent is required to inform local law
enforcement in the city or county where the agent is planning on
entering a residence in order to capture a fugitive, and local
law enforcement may accompany the surety recovery agent.
Failure to report to local law enforcement is a class A
misdemeanor for the first offense and a class D felony for any
subsequent violations.

A surety recovery agent with probable cause to believe a person
has failed to appear in court or otherwise breached the terms of
a bond may use all lawful means to arrest the person, including
detaining the subject for up to 72 hours, transporting the
subject to another county or state, and entering upon private
property in a reasonable manner.  Engaging in fugitive recovery
without a valid license is a class D felony.  In addition,
anyone engaging in fugitive recovery who wrongfully causes
damage to property or person is liable for damages and may be
assessed punitive damages.

The substitute also prohibits any person from being certified or
employed as a peace officer unless he or she is a resident of
Missouri.

FISCAL NOTE:  Estimated Net Cost to General Revenue Fund of less
than $100,000 in FY 2002, FY 2003, and FY 2004.  Estimated Net
Cost to Insurance Dedicated Fund of $25,205 in FY 2002, $3,968
in FY 2003, and $3,050 in FY 2004.

PROPONENTS:  Supporters say that they are in support of the
provisions that require bail bond agents and surety recovery
agents to contact local police or law enforcement agencies and
to comply with the bonding and liability requirements.

Testifying for the bill were Representative Ross; Charon Porter;
and C&M Bonding, Inc.

OPPONENTS:  There was no opposition voiced to the committee.

Amy Woods, Legislative Analyst

Missouri House of Representatives
Last Updated November 26, 2001 at 11:43 am