GENERAL ASSEMBLY OF NORTH CAROLINA
1995 SESSION
CHAPTER 726
AN ACT TO AMEND THE LAW REGULATING SURETY BONDSMEN, BAIL BONDSMEN, AND RUNNERS.
The General Assembly of North Carolina enacts:
Section 1. G.S. 58-71-1(11) reads as rewritten:
"(11) 'Surety bondsman' shall mean means
any person who is approved by and licensed by the Commissioner as an
insurance agent pursuant to the provisions of Articles 1 through 64 of this
Chapter and a surety bondsman under this Article, is appointed by an
insurer by power of attorney to execute or countersign bail bonds for the
insurer in connection with judicial proceedings proceedings, and
receives or is promised money or other things of value therefor. consideration
for doing so."
Sec. 2. G. S. 58-71-40 reads as rewritten:
"§
58-71-40. Bail bondsmen and runners to be qualified and licensed; only
individuals to be licensed; license applications generally.
(a) No person
shall act in the capacity of a bail bondsman or runner or perform any of the
functions, duties, or powers prescribed for bail bondsmen or runners under the
provisions of this Article unless that person shall be qualified and (except as
regards an accommodation bondsman) licensed in accordance with the provisions
of this Article. No license shall be issued to a professional bondsman or
runner except as provided in this Article and none shall be issued except to
an individual natural person.
(b) The applicant
shall apply for a license or renewal thereof on forms
prepared and supplied by the Commissioner and the Commissioner may propound any
reasonable interrogatories to an applicant for a license under this Article or
on any renewal thereof, relating to his the applicant's qualifications,
residence, prospective place of business, and any other matters which, in the
opinion of the Commissioner, are deemed necessary in order to protect the
public and ascertain the qualifications of the applicant. The Commissioner may
also conduct any reasonable inquiry or investigation he sees fit, relative
to the determination of the applicant's fitness to be licensed or to continue
to be licensed.
(c) The failure
of the applicant to secure approval of the Commissioner shall not preclude him
from applying as many times as he desires, but no application shall be
considered by A person whose application is denied may reapply, but the
Commissioner within one year subsequent to the date upon which the
Commissioner denied the last application. may not consider more than one
application submitted by the same person within any one-year period.
(d) When a license is issued under this section, the Commissioner shall issue a picture identification card, of design, size, and content approved by the Commissioner, to the licensee. Each licensee must carry this card at all times when working in the scope of the licensee's employment. A licensee whose license is terminated must surrender the identification card to the Commissioner within 10 working days of the termination."
Sec. 3. G.S. 58-71-45 reads as rewritten:
"§
58-71-45. Expiration Terms of licenses.
All licenses issued pursuant to the provisions of this
Article shall expire annually on June 30 unless revoked or suspended prior
thereto by the Commissioner, or upon notice served upon the Commissioner that
the employer of any runner has canceled the licensee's authority to act for
such employer. A license issued to a bail bondsman or to a runner
authorizes the licensee to act in that capacity until the license is suspended
or revoked. Upon the suspension or revocation of a license, the licensee
shall return the license to the Commissioner. A license of a bail
bondsman and a license of a runner shall be renewed on July 1 of each year upon
payment of the applicable renewal fee under G.S. 58-71-75. The
Commissioner is not required to print renewal licenses. After notifying
the Commissioner in writing, a professional bondsman who employs a runner may
cancel the runner's license and the runner's authority to act for the
professional bondsman."
Sec. 4. G.S. 58-71-50 reads as rewritten:
"§
58-71-50. Qualification for professional bail bondsmen and
runners.
(a) Before
license can issue to an An applicant permitting him to act as a
professional for a license as a bail bondsman or runner, he must
furnish the Commissioner a complete set of his the applicant's fingerprints
and a recent passport size full-face photograph of himself. the
applicant. The applicant's fingerprints shall be certified by an
authorized law-enforcement officer. The fingerprints of every
applicant shall be forwarded to the State Bureau of Investigation for a search
of the applicant's criminal history record file, if any. If warranted,
the State Bureau of Investigation shall forward a set of the fingerprints to
the Federal Bureau of Investigation for a national criminal history record
check. An applicant shall pay the cost of the State and any national
criminal history record check of the applicant.
(b) Every
applicant for a license under this Article as a professional bail
bondsman or runner before being issued such license shall satisfy the
Commissioner that he: must meet all of the following qualifications:
(1) Is Be 18
years of age or over; over.
(2) Is Be a
resident of this State; State.
(3) Is Be a
person of good moral character and has not not have been
convicted of a felony or any crime involving moral turpitude; turpitude.
(4) Has Have knowledge,
training, or experience of sufficient duration and extent to reasonably
satisfy the Commissioner that he possesses provide the competence
necessary to fulfill the responsibilities of a licensee; licensee.
(5) Has Have no
outstanding bail bond obligations; obligations.
(6) Is not or has not
been in violation Have no current or prior violations of any
provision of this Article or of Article 26 of Chapter 15A of the General
Statutes or of any similar provision of law of any other state; state.
(7) Has not Not
have been in any manner disqualified under the laws of this State or any
other state to engage in the bail bond business."
Sec. 5. G.S. 58-71-55 reads as rewritten:
"§ 58-71-55. License fees.
A nonrefundable license fee of one hundred dollars ($100.00)
shall be paid to the Commissioner with each application for license as a professional
bail bondsman and a license fee of sixty dollars ($60.00) shall be
paid to the Commissioner with each application for license as a runner."
Sec. 6. G.S. 58-71-60 is repealed.
Sec. 7. G.S. 58-71-65 reads as rewritten:
"§
58-71-65. Contents of application for runner's license; endorsement by bail
professional bondsman.
In addition to the other requirements of this Article, an applicant for a license to be a runner must affirmatively show:
(1) That the applicant
will be employed by only one bail bondsman professional bondsman, who
will supervise the work of the applicant and be responsible for the runner's
conduct in the bail bond business; and business.
(2) That the application
is endorsed by the appointing bail bondsman professional
bondsman, who shall obligate himself therein must agree in
the application to supervise the runner's activities.
(3) That Whether
or not the applicant has disclosed whether he has ever been licensed
as a professional bail bondsman or runner. If the An
applicant who has ever been licensed as a professional
bondsman, he shall bail bondsman must list all outstanding bail bond
obligations. If the An applicant who has ever been
licensed as a runner, he shall runner must list all prior
employment as such, indicating the name of each bail supervising
professional bondsman by whom he has been employed and the reason
or reasons for the termination of the employment."
Sec. 8. G.S. 58-71-70 reads as rewritten:
"§ 58-71-70. Examination; fees.
Except as hereinafter provided, an Each applicant
for a license to be as a professional bondsman bondsman,
surety bondsman, or runner shall be required to appear in person and
take a written examination prepared by the Commissioner testing his the
applicant's ability and qualifications. Each applicant shall
become is eligible for examination 30 days after the date the
application is received by the Commissioner. Examinations Each
examination shall be held at such a time and place as
designated by the Commissioner, and the Commissioner. Each applicant
shall be given notice of such the designated time and place not
less no sooner than 15 days prior to taking before the
examination. The Commissioner may contract with a person to process
applications for the examination and administer and grade the examination in
the same manner as for agent examinations under Article 33 of this Chapter.
The fee for such each examination shall be is
twenty-five dollars ($25.00) for professional bondsmen and twenty-five
dollars ($25.00) for runners. ($25.00) plus an amount that offsets the
cost of any contract for examination services. These This examination
fees are fee is nonrefundable. The failure of an
applicant to pass an examination shall not preclude him from taking subsequent
examinations; provided, however, that
An applicant who fails an examination may take a subsequent examination, but at least one year must intervene between examinations."
Sec. 9. G.S. 58-71-71(d) reads as rewritten:
"(d) The Commissioner
shall approve the educational Educational courses offered under this
section and ensure that they must be approved by the Commissioner
before they may be offered. Before approving a course, the Commissioner
must be satisfied that it will enhance the professional competence and
professional responsibility of bail bondsmen and runners. No person shall
offer, sponsor, or conduct any course under the auspices of this section
unless the Commissioner has authorized that person to do so."
Sec. 10. Article 71 of Chapter 58 of the General Statutes is amended by adding a new section to read:
"§ 58-71-72. Qualifications of instructors.
(a) A person who provides, presents, or instructs a prelicensing course or continuing education course under G.S. 58-71-71 must have a certificate of authority issued by the Commissioner. The Commissioner may establish requirements for the issuance or renewal of a certificate of authority and grounds for the summary suspension or termination of a certificate of authority.
(b) The Commissioner may summarily suspend or terminate a certificate of authority to provide, present, or instruct a course if the Commissioner finds that the course is inaccurate or it received a poor evaluation from both a Department monitor and a majority of those who attended the course and responded to a Department questionnaire about the course."
Sec. 11. G.S. 58-71-75 reads as rewritten:
"§
58-71-75. Renewal of licenses; fees.
A renewal license shall be issued by the Commissioner to a
licensee who has continuously maintained his license in effect without further
examination upon the payment of a renewal fee of sixty dollars ($60.00) in case
of runners and one hundred dollars ($100.00) in case of professional bondsmen,
but such licensees shall in all other respects be required to comply with and
be subject to the provisions of this Article. The renewal fee for a
runner's license is sixty dollars ($60.00). The renewal fee for a bail
bondsman's license is one hundred dollars ($100.00). After the receipt
of such licensee's application for renewal, the current license shall continue A
renewed license continues in effect until the renewal license is issued
or denied suspended or revoked for cause."
Sec. 12. G.S. 58-71-81 reads as rewritten:
"§ 58-71-81. Notice of receivership.
Upon the filing for protection under the United States
Bankruptcy Code or any state receivership law by any professional bail
bondsman licensed under this Article or by any bail bond business in which
the bondsman holds a position of management or ownership, the bondsman shall
notify the Commissioner of the filing for protection within three business days
after the filing. Upon the appointment of a receiver by a State or
federal court for any professional bondsman licensed under this Article, or for
any bail bond business in which the bondsman holds a position of management or
ownership, the bondsman shall notify the Commissioner of the filing for
protection within three business days after the filing. The failure to
notify the Commissioner within three business days after the filing for
bankruptcy protection shall, after hearing, cause the license of any person
failing to make the required notification to be suspended for a period of not
less than 60 days nor more than three years, in the discretion of the
Commissioner."
Sec. 13. Article 71 of Chapter 58 of the General Statutes is amended by adding a new section to read:
"§ 58-71-82. Other licenses issued by the Commissioner.
If licenses are issued to a bail bondsman or runner under this Article and under Article 33 of this Chapter and the license issued under Article 33 of this Chapter is suspended or revoked for cause or is not renewed, the license issued under this Article is suspended, revoked, or not renewed as of the date the order under Article 33 of this Chapter is final."
Sec. 14. G.S. 58-33-25 is amended by adding a new subsection to read:
"(e1) If a license is issued to a bail bondsman or a runner under this Article and under Article 71 of this Chapter and the license issued under Article 71 of this Chapter is suspended or revoked for cause or is not renewed for failure to pay the renewal fee, the license issued under this Article is suspended, revoked, or not renewed as of the date the order under Article 71 of this Chapter is final."
Sec. 15. G.S. 58-71-82, as enacted by Section 11 of this act, reads as rewritten:
"§
58-71-82. Other licenses issued by the Commissioner. Dual
license holding.
If licenses are issued to a bail bondsman or runner under
this Article and under Article 33 of this Chapter and the license issued under
Article 33 of this Chapter is suspended or revoked for cause or is not renewed,
the license issued under this Article is suspended, revoked, or not renewed as
of the date the order under Article 33 of this Chapter is final. If an
individual holds a professional bondsman's license or a runner's license and a
surety bondsman's license simultaneously, they are considered one license for
the purpose of suspension, revocation, or renewal under this Article.
Separate renewal fees must be paid for each license, however."
Sec. 16. G.S. 58-71-95 reads as rewritten:
"§ 58-71-95. Prohibited practices.
No bail bondsman or runner shall:
(1) Pay a fee or rebate or give or promise anything of value, directly or indirectly, to a jailer, law-enforcement officer, committing magistrate, or any other person who has power to arrest or hold in custody, or to any public official or public employee in order to secure a settlement, compromise, remission or reduction of the amount of any bail bond or the forfeiture thereof, including the payment to law-enforcement officers, directly or indirectly, for the arrest or apprehension of a principal or principals who have caused or will cause a forfeiture.
(2) Pay a fee or rebate or give anything of value to an attorney in bail bond matters, except in defense of any action on a bond.
(3) Pay a fee or rebate or give or promise anything of value to the principal or anyone in his behalf.
(4) Participate in the capacity of an attorney at a trial or hearing of one on whose bond he is surety, nor suggest or advise the employment of, or name for employment any particular attorney to represent his principal.
(5) Accept anything of value from a principal or from anyone on behalf of a principal except the premium, which shall not exceed fifteen percent (15%) of the face amount of the bond; provided that the bondsman shall be permitted to accept collateral security or other indemnity from a principal or from anyone on behalf of a principal. Such collateral security or other indemnity required by the bondsman must be reasonable in relation to the amount of the bond and shall be returned upon final termination of liability on the bond.
(6) Solicit business in any of the courts or on the premises of any of the courts of this State, in the office of any magistrate and in or about any place where prisoners are confined. Loitering in or about a magistrate's office or any place where prisoners are confined shall be prima facie evidence of soliciting.
(7) Advise or assist the principal for the purpose of forfeiting bond.
(8) Impersonate a law-enforcement officer.
(9) Falsely represent that the bail bondsman or runner is in any way connected with an agency of the federal government or of a state or local government."
Sec. 17. G.S. 58-71-105 reads as rewritten:
"§ 58-71-105. Persons prohibited from becoming surety or runners.
No sheriff, deputy sheriff, other law-enforcement officer,
judicial official, attorney, parole officer, probation officer, jailer,
assistant jailer, employee of the General Court of Justice, nor other public
employee assigned to duties relating to the administration of criminal justice,
nor the spouse of any such person, may in any case become surety on a bail bond
for any person. In addition, no person covered by this section may act as
an agent for any bonding company or professional bail bondsman.
No such person may have an interest, directly or indirectly, in the financial
affairs of any firm or corporation whose principal business is acting as a bail
bondsman. However, nothing in this section prohibits any such person from
being surety upon the bond of his or her spouse, parent, brother, sister,
child, or descendant."
Sec. 18. G.S. 58-71-115 reads as rewritten:
"§ 58-71-115. Insurers to annually report surety bondsmen; notices of appointments and terminations; information confidential.
Every Before July 1 of each year, every insurer
shall annually prior to July 1, furnish the Commissioner a list of all
surety bondsmen appointed by it the insurer to write bail bonds
on its the insurer's behalf. Every such An insurer
who subsequently appoints a surety bondsman in the State shall
give notice thereof to the Commissioner. on or after July 1 of each year
must notify the Commissioner of the appointment. All such appointments
shall be are subject to the issuance of the proper insurance
agent's license to the appointee. appointee under this Article.
An insurer terminating the appointment of a surety bondsman
shall file a written notice thereof of the termination with
the Commissioner, together with a statement that it the insurer has
given or mailed notice to the surety bondsman and to the clerk of superior
court of any county in the State wherein such in which the insurer
has been obligated on bail bonds through said agent the surety
bondsman within the past three years. Such notice filed with the
Commissioner The notice to the Commissioner shall state the reasons,
if any, for such the termination. Information so furnished
in the notice to the Commissioner shall be privileged and shall not be
used as evidence in or basis for any action against the insurer or any of its
representatives."
Sec. 19. G.S. 58-71-140 reads as rewritten:
"§ 58-71-140. Registration of licenses and power of appointments by insurers.
(a) No professional bail bondsman shall become a surety on an undertaking unless he or she has registered his or her current license in the office of the clerk of superior court in the county in which he or she resides and a certified copy of the same with the clerk of superior court in any other county in which he or she shall write bail bonds.
(b) A surety
bondsman shall also annually register a certified copy of his or
her current surety bondsman's license and a certified copy of his or her
power of appointment with the clerk of superior court wherein in
the county in which he the surety bondsman resides and with
the clerk of superior court in any other county wherein he shall write in
which the surety bondsman writes bail bonds on behalf of an insurer.
(c) No runner shall become surety on an undertaking on behalf of a professional bondsman unless that runner has registered his or her current license and a certified copy of his or her power of attorney in the office of the clerk of superior court in the county in which the runner resides and with the clerk of superior court in any other county in which the runner writes bail bonds on behalf of the professional bondsman."
Sec. 20. G.S. 58-33-25(e)(9) is repealed.
Sec. 21. All surety bondsmen holding licenses issued under G.S. 58-33-25(e)(9) shall be issued surety bondsmen licenses under Article 71 of Chapter 58 of the General Statutes.
Sec. 22. If any section or provision of this act is declared unconstitutional or invalid by the courts, it does not affect the validity of the act as a whole or any part other than the part so declared to be unconstitutional or invalid.
Sec. 23. Sections 6 and 16 of this act become effective October 1, 1996. Sections 1 through 5, 7 through 12, 15, and 17 through 21 of this act become effective January 1, 1997. The remaining sections of this act are effective upon ratification. Section 14 of this act expires January 1, 1997.
In the General Assembly read three times and ratified this the 21st day of June, 1996.
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Dennis A. Wicker
President of the Senate
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Harold J. Brubaker
Speaker of the House of Representatives