2005 Legislation
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SENATE BILL NO. 1199 – Bail agent/indemnificatn/bond loss

SENATE BILL NO. 1199

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Bill Status



S1199................................................by JUDICIARY AND RULES
BAIL - Amends existing law relating to producer licensing to provide that a
bail surety or bail agent is not prohibited from pursuing certain
contractual rights to indemnification of bond losses.
                                                                        
03/14    Senate intro - 1st rdg - to printing
03/15    Rpt prt - to Jud

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1199
                                                                        
                              BY JUDICIARY AND RULES COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO PRODUCER LICENSING; AMENDING SECTION 41-1042, IDAHO CODE, TO  PRO-
  3        VIDE THAT A BAIL SURETY OR BAIL AGENT IS NOT PROHIBITED FROM PURSUING CER-
  4        TAIN CONTRACTUAL RIGHTS TO INDEMNIFICATION OF BOND LOSSES.
                                                                        
  5    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  6        SECTION  1.  That  Section 41-1042, Idaho Code, be, and the same is hereby
  7    amended to read as follows:
                                                                        
  8        41-1042.  COLLECTIONS AND CHARGES PERMITTED. (1) Notwithstanding any other
  9    provision of this chapter, a bail agent in any  bail  transaction  shall  not,
 10    directly  or  indirectly,  charge or collect money or other valuable consider-
 11    ation from any person except for the following:
 12        (a)  To pay premiums at the rates established by the insurer;
 13        (b)  To provide collateral;
 14        (c)  To reimburse the bail agent for actual expenses incurred  in  connec-
 15        tion with the bail transaction, limited to the following:
 16             (i)   Expenditures  actually and reasonably incurred to verify under-
 17             writing information or to pay for notary public fees, recording fees,
 18             or necessary long distance telephone or telegram fees; provided  how-
 19             ever,  that  the  total of all such expenditures reimbursed shall not
 20             exceed fifty dollars ($50.00); and
 21             (ii)  Travel expenses incurred more than twenty-five (25) miles  from
 22             a bail agent's place of business, which includes any city or locality
 23             in which the bail agent advertises or engages in bail business, up to
 24             the  amount  allowed  by  the  internal  revenue service for business
 25             travel for the year in which the travel occurs.
 26        (2)  Except as permitted under this section, a bail agent shall  not  make
 27    any  charge  for  his  service  in a bail transaction and the bail agent shall
 28    fully document all expenses for which the bail agent seeks reimbursement.
 29        (3)  This section does not prohibit a bail surety or bail agent from  pur-
 30    suing  a contractual right to indemnification of any bond loss, including rea-
 31    sonable and necessary investigation, legal and court expenses actually  incur-
 32    red by the bail surety or bail agent in connection with a bail forfeiture.

Statement of Purpose / Fiscal Impact


                         STATEMENT OF PURPOSE
                                    
                               RS 15138
      
    
    
      This legislation clarifies the authority of the bail surety or
    agent to enforce the contractual right to indemnification if a
    defendant breaches the contract, specifically the right to
    recover expenses caused by the defendant's breach of the
    contract.
    
                            FISCAL IMPACT
    
    No fiscal impact to the State of Idaho.  This legislation
    should reduce the costs to law enforcement for locating and
    returning defendants to the state of Idaho by motivating bail
    sureties and agents to locate and return defendants who have
    failed to appear in court.
    
    
    
    
    
    
    
    
    Contact:                      
    
    Name:   Steve J. Tobiason
    Phone:  342-4545
      
     
    STATEMENT OF PURPOSE/FISCAL NOTE                 S 1199