No. 32879 (Amendment): Rule R590-196. Bail Bond Surety Fee Standards, Collateral Standards, and Disclosure Form  

  • (Amendment)

    DAR File No.: 32879
    Filed: 08/12/2009 05:29:44 PM

    RULE ANALYSIS

    Purpose of the rule or reason for the change:

    This rule is being changed to allow bail bondsmen to pass through court or jail processing fees to their clients.

    Summary of the rule or change:

    The changes to the rule include spelling corrections, change in outlining, and the addition of a pass through fee that allows bondsmen to pass along jail or court processing fees.

    State statutory or constitutional authorization for this rule:

    Anticipated cost or savings to:

    the state budget:

    The changes to this rule will not change the revenue flow or expenses of the department or state government. It will create a little additional work in the way of form filings made to the department if a bail bond agency adopts the pass through fee allowed in the rule. This however will be minimal and just for a short period of time.

    local governments:

    The changes to this rule will have no fiscal impact on local governments since it deals solely with the relationship between the department and their licensees, bail bond surety companies, agencies, and agents.

    small businesses:

    This rule will allow bail bond agencies and agents to pass along a processing fee charged to them by the court or jail. Currently they are unable to pass this cost along to their customers.

    persons other than small businesses, businesses, or local governmental entities:

    The changes to this rule will have no effect on large businesses. If an agency decides to pass along the court or jail processing fee it will affect the consumer. The processing fees have been around $25. Only a few courts and jails are charging the fee so far.

    Compliance costs for affected persons:

    Defendants or co-signers to a bail bond may be required to pay around $25 for jail or court processing fees if an agent decides to pass the charge on to their clients.

    Comments by the department head on the fiscal impact the rule may have on businesses:

    The changes to this rule will allow bail bondsmen to pass along to their clients court and jail processing fees. These fees are around $25 and not all jails or courts are charging them yet.

    D. Kent Michie, Commissioner

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

    Insurance
    Administration
    450 N MAIN ST
    SALT LAKE CITY, UT 84114-1201

    Direct questions regarding this rule to:

    Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

    10/15/2009

    This rule may become effective on:

    10/22/2009

    Authorized by:

    Jilene Whitby, Information Specialist

    RULE TEXT

    R590. Insurance, Administration.

    R590-196. Bail Bond Surety Fee Standards, Collateral Standards, and Disclosure Form.

    R590-196-4. Fee Standards.

    (1) Initial bail bond fees.

    (a) Bail bond premium:

    (i) minimum fee: none;

    (ii) maximum fee: not to exceed 20% of bond amount.

    (b) Document preparation fee may not exceed $20 per set of forms pertaining to one bail bond.

    (c) Credit card fee may not exceed 5% of the amount charged to the credit card.

    (2) [Other]Additional fees.

    (a) These fees are limited to actual and reasonable expenses incurred by the bail bond surety because:

    (i) the defendant fails to appear before the court at any designated dates and times;

    (ii) the defendant fails to comply with the court order; or

    (iii) the defendant or the co-signer fails to comply with the terms of the bail bond agreement and any promissory notes pertaining to that agreement.

    (b) Reasonable expense fee for mileage is the Internal Revenue Service standard for business mileage.

    (c) Apprehension expenses such as meals, lodging, commercial travel, communications, whether or not the defendant is apprehended, are limited to actual expenses incurred and must be reasonable, i.e., meals at mid-range restaurants, lodging at mid-range hotels, commercial travel in coach class, etc.

    (d) Reasonable collateral expense fees:

    (i) actual expenses to obtain collateral; and

    (ii) storage expenses if in a secured storage area, limited to actual expenses.

    (e) A late payment fee of $20 or 5% of the delinquent periodic payment [which ever]whichever is less.

    (f) If a fee is charged by the court or the jail to process a bail bond, the actual fee charged may be passed through to the defendant or the co-signer.


    R590-196-6. Disclosure Form.

    The bail bond surety and its agents will use the following disclosure form or a form that contains similar language.


    TABLE


    XYZ Bail Bonds Disclosure Form
    1234 South 1234 East, Salt Lake City, UT 84444:
    801-123-4567 fax: 801-098-7654
    Defendant.......................Co-Signer......................
    Court...........................Charge.........................
    Bond amount $...................Bond number....................
    Initial Fees, non-refundable.
    ....bond premium, maximum: no more than 20%;
    minimum: none. $......
    ....document preparation, not to exceed $20
    per set of bond forms. $......
    ....credit card fee, not to exceed 5% of amount
    charged to credit card $......
    total initial fees $......

    Additional Fees.
    (1) Limited to actual and reasonable expenses required
    because the defendant fails to appear before the court at any
    designated times, or fails to comply with the court order, or
    fails to comply with the terms of the bail bond agreement or
    any promissory notes pertaining to that agreement. The following
    are some reasonable expense fees:
    [ (1)](i) reasonable expense fee for mileage is IRS mileage
    reimbursement standard for business miles;
    [ (2)](ii) reasonable apprehension expense fees include
    meals at mid-range restaurants, lodging at mid-range hotels,
    transportation at no more than coach fares; and
    [ (3)](iii) reasonable collateral expense fees: actual
    expenses to obtain collateral and, actual storage expenses,
    if collateral is in a secured storage area.
    [ (4)](2) A late payment fee of $20 or 5% of the
    delinquent periodic payment [which ever]whichever is less.
    (3) If a fee is charged by the court or the jail to
    process a bail bond, the actual fee charged may be passed
    through to the defendant or the co-signer.

    Grounds for revocation of bond.
    Should the defendant violate any of the following, the
    defendant shall be subject to immediate bond revocation and
    the defendant, or the co-signer, or both, shall be subject
    to all the costs incurred to return the defendant to the court.

    Grounds for revocation include the following:
    (a) the defendant or co-signer providing materially false
    information on bail bond application;
    (b) the court's increasing the amount of bail beyond sound
    underwriting criteria employed by the bail bond agent or bail
    bond surety;
    (c) a material and detrimental change in the collateral
    posted by the defendant or one acting on defendant's behalf;
    (d) the defendant changes their address or telephone
    number or employer without giving reasonable notice to the bail
    bond agent or bail bond surety;
    (e) the defendant is arrested for another crime, other
    than a minor traffic violation, while on bail;
    (f) the defendant is back in jail in any jurisdiction and
    revocations can be served prior to the defendant being released;
    (g) failure by the defendant to appear in court at any
    appointed times;
    (h) finding of guilt against the defendant by a court of
    competent jurisdiction;
    (i) a request by the co-signer based on reasons (a)
    through (h) above. Items (a) through (h) pertain to the
    defendant; items (a), (c), (e) (g) and (i) pertain to
    co-signers, if any.

    Collateral.
    The following has been given as collateral to guarantee
    all court appearances of the defendant until the bond is
    exonerated:
    ...............................................................
    ...............................................................
    ...............................................................
    The following has been given as collateral to guarantee
    payment of bond fees:
    ...............................................................
    ...............................................................
    In the event judgment is entered against the surety or the
    bonding fee is not paid according to the terms of the bail bond
    agreement and its promissory note, if any, following written
    notice to the undersigned of such judgment or non-payment, the
    undersigned authorize XYZ Bail Bonds to convert the appropriate
    collateral to collect the judgment or the unpaid bond fees.
    Should proceeds from the sale of the appropriate collateral be
    insufficient to cover the outstanding balance due, the defendant,
    the co-signer, or both, agree to be personally liable for the
    difference. Should proceeds from the sale exceed the
    outstanding balance, the difference will be returned to the
    depositor of the collateral. The depositor's signature below
    constitutes acknowledgment of a Bill of Sale for the
    collateral. The depositor accepts this agreement as a bill of
    sale for the collateral.

    By signing below I certify that I have read and understand
    this disclosure form, the bail bond agreement and its
    attached promissory note, if any. I certify under penalty of
    perjury that all information given to XYZ Bail Bonds verbally
    and in writing on all documents relevant to this bond are true
    and accurate. The co-signer agrees that should the co-signer
    request XYZ Bail Bonds to revoke the defendant's bond, with or
    without probable cause, the co-signer will be responsible to
    pay XYZ Bail Bonds and their agents for the time returning
    the defendant to jail at the rates stated above in additional
    fees. If requested by the co-signer to revoke the bond
    without probable cause, the co-signer will be responsible to
    reimburse the defendant his bond fees.

    Date..............................Defendant....................
    Date..............................Co-signer....................
    Date..............................Depositor....................
    I,......................................., agent of XYZ Bail
    Bonds, certify that I have given a copy of all documents
    pertaining to this bail bond agreement to the defendant, the
    co-signer, the depositor, or any of the above, at the time and
    date said bail bond agreement was executed.
    Date....................Bail Bond Agent........................


    KEY: insurance

    Date of Enactment or Last Substantive Amendment: [February 10, 2005]2009

    Notice of Continuation: January 7, 2005

    Authorizing, and Implemented or Interpreted Law: 31A-35-104



Document Information

Effective Date:
10/22/2009
Publication Date:
09/01/2009
Filed Date:
08/12/2009
Agencies:
Insurance,Administration
Rulemaking Authority:

Section 31A-35-104

Authorized By:
Jilene Whitby, Information Specialist
DAR File No.:
32879
Related Chapter/Rule NO.: (1)
R590-196. Bail Bond Surety Fee Standards, Collateral Standards, and Disclosure Form.