No. 31767: R590-186. Bail Bond Surety Business

DAR File No.: 31767
Filed: 07/29/2008, 02:48
Received by: NL

NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

Concise explanation of the particular statutory provisions under which the rule is enacted and how these provisions authorize or require the rule:

Section 31A-35-104 requires the commissioner to adopt by rule specific licensure and certification guidelines and standards of conduct for the bail bond business; Subsection 31A-35-301(1) authorizes the commissioner to adopt rules necessary to administer Chapter 35 of Title 31A; Subsection 31A-35-401(1)(c) allows the commissioner to adopt rules governing the granting of licenses for bail bond surety companies; Subsection 31A-35-401(2) allows the commissioner to require by rule additional information from bail bond applicants applying for licensure; and Subsection 31A-35-406(1)(b) allows the commissioner to establish by rule the annual renewal date for the renewal of a license as a bail bond surety company.

Summary of written comments received during and since the last five-year review of the rule from interested persons supporting or opposing the rule:

This rule is in the process of being changed. The changes would create a minimum bond fee for bail bonds and allow 12 discounted bonds a year. So far, the division has received two written comments. One of the comments is in support of the changes and the other asks the department if the setting of a minimum bond fee violates the Sherman Antitrust Act.

Reasoned justification for continuation of the rule, including reasons why the agency disagrees with comments in opposition to the rule, if any:

This rule is required by Section 31A-35-104, which requires the commissioner to adopt by rule specific licensure and certification guidelines and standards of conduct for the business of bail bond surety insurance. This rule provides specific licensure guidelines and sets standards of unprofessional conduct for bail bond licensees. Therefore, this rule should be continued. The department's position regarding the antitrust concerns with the proposed changes to this rule are now being considered by the Attorney General's office.

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Insurance
Administration
Room 3110 STATE OFFICE BLDG
450 N MAIN ST
SALT LAKE CITY UT 84114-1201

Direct questions regarding this rule to:

Jilene Whitby at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at [e-mail]

Authorized by:

Jilene Whitby, Information Specialist