There is yet another move in Michigan to wrangle in the Bail Agents, Fugitive Recovery Agents and Bail Bond Runners working within the state- this time in the form of Michigan House Bill 5536, the “Bail Bond Personnel Licensure Act.”

Read the original bill here.

This bill has not yet been approved by either the Senate or the House.  I’m not sure how this one is going to go because further analysis by the HFA indicates a budget shortfall of  well over $200,000 to administer the act. Personally, I think that the analysts over estimated the amount of revenue the act will generate by at least 25%, so the shortfall would be higher in my estimation.

From the House Legislative Analysis Section (HFA), Fiscal Analysts  Mark Wolf and Ben Gielczyk:

“A SUMMARY OF HOUSE BILLS 5536 AND 5537 AS INTRODUCED 10-22-09

House Bill 5536 would create a new scheme for licensing bail bond agents, bail bond runners, and fugitive recovery agents.

House Bill 5536 – Bail Bond Personnel Licensure Act

The bill essentially establishes a specific license for bail agents that must be obtained, (it is assumed), in addition to the existing general insurance law requirements on surety insurance agents.  Currently, there is no specific state law concerning the licensure of bail bond agents.  However, bail bond agents act, in effect, as agents of property and casualty insurers, and therefore must meet the applicable licensing standards for insurance agents.[1]  The bill would also require a license for fugitive recovery agents and bail bond runners.

Bail Bond Agent License Required:  The bill would require surety bail agents to obtain a license from the Department of Energy, Labor, and Economic Growth, Office of Financial and Insurance Regulation (OFIR), effective January 1, 2010, in order to engage in the business of a bail agent.[2]  Additionally, the bail agent would have to register with the State Court Administrative Office (SCAO).

For property bail agents, the bill would require, effective January 1, 2010, that they be authorized by an order of the circuit court to engage in business.[3]  Authorization by the court would expire at the end of the calendar year.  Beginning January 1, 2011, property bail agents would have to also be licensed by OFIR and registered with the SCAO, in order to engage in the business of a property bail agent.[4]

Licenses would only be issued on an individual basis.

Use of Titles: A person could not use a title or description giving the impression that he or she is a bail bond agent unless licensed by OFIR and registered with the SCAO.[5]  A violation of this provision would be a misdemeanor punishable by up to 91 days imprisonment and/or a fine of up to $500 for a first violation, and up to 2 years imprisonment and/or a fine of up to $4,000 for each second or subsequent violation.  A person convicted of a second violation would be permanently disqualified from being issued a bail bond agent license.

Bail Bond Agent Licensure Requirements: To be licensed as a bail bond agent, an individual would have to pass a written examination and be of “good moral character.”[6]  Current bail bond agents – those engaged in business prior to the bill’s effective date – would be exempt from the examination requirement.

Identification: Upon licensure, OFIR would provide each bail bond agent an identification card containing the agent’s photo, name, and other identifying information.  The identification card would have to be carried by the agent when acting as a bail bond agent.  Additionally, each agent would be issued a seal by OFIR that would include the agent’s name, the registration number, the phrase “Bail Bond Agent, State of Michigan” and other information OFIR considers to be necessary.  Bonds and other documents filed by the agent with the court or local law enforcement agent would have to be stamped with the seal.  The seal could not be loaned to another individual, and would have to be return to the state within 7 days after the licensed or registration is revoked, suspended, or canceled.  The penalty for failing to comply with these provisions is a misdemeanor punishable by up to 90 days imprisonment and/or a fine of up to $500.

Bail Bond Agent Fees: The bill would establish the following schedule of fees, to defray the costs of OFIR in administering the bill:

Application Processing Fee$35.00
Supplemental Application Processing Fee- $20.00
Examination Fee- $150.00
Examination Review Fee- $25.00

SCAO Registration: The bill would also require licensed bail bond agents to register with the State Court Administrative Office (SCAO).  The SCAO would be required to maintain, and update monthly, a registry of all registered bail bond agents.  The registry would consist of the individual agent’s name, business name and telephone number, the appointing surety, a power of attorney from the surety specifying the agent and the financial limit of the agent’s authority, and the areas in the state where the agent is authorized to engage in business.  For property agents, the registry would have also have to include the name of the counties in which the agent is authorized (by circuit court order) to engage in business.

The registry would be made available to local law enforcement (to make publicly available) on the SCAO’s website (http://courts.michigan.gov/scao). The removal from the registry by the SCAO would occur upon request from OFIR or, for property agents, from a request from an authorizing circuit court.  The bill would also impose on each agent a $40 registration fee to be used to defray the costs of the SCAO in administering the act.

Fugitive Recovery Agents: The bill will would also license “fugitive recovery agents,” defined in the bill to mean a person employed (on a contract or salary basis) by a bail bond agent or surety to enforce the terms and conditions of a defendant’s release from custody on bail in a criminal proceeding, including locating, apprehending, and transporting a defendant.[7]

License Requirements: To be licensed by OFIR as a fugitive recovery agent, a person would have to meet the following criteria:

1. Pass a two-part examination administered by OFIR, with one part testing the applicant’s knowledge of general insurance laws and regulations and the second part testing knowledge of pre-trial release and bonds, SCAO policies regarding bonds, the Michigan court system, the Michigan surety bond forfeiture process, judgments, and the surety’s right to arrest.
2. Hold a conceal pistol license.
3. Have never been convicted of a felony
4. Be of good moral character.

Additionally, an applicant for a fugitive recovery license would also have to successfully complete at least 40 hours of classroom training on applicable state and federal laws and rules and at least 40 hours of field training (weapons safety, use of force, defensive tactics, restraining and detaining individuals).  Individuals that have completed the training required by a municipal, state, or federal law enforcement agent or a branch of the armed forces to act as a peace officer would be exempt from the pre-licensure requirements.  Once licensed as a fugitive recovery agent, individuals would have to certificates on the proper use of Tasers and pepper sprays within 12 months of being licensed.

Violations: A bail bond agent or surety would be prohibited from employing or retaining the services of a fugitive recovery person who has been convicted of a felony.  Violating this provision and the licensure requirement provisions would be would be a misdemeanor punishable by up to 91 days imprisonment and/or a fine of up to $500 for a first violation, and up to 2 years imprisonment and/or a fine of up to $4,000 for each second or subsequent violation.  A person convicted of a second violation would be permanently disqualified from being issued a bail bond agent license.[8]

Identification: Similar to bail bond agents, OFIR would issue identification cards to licensed fugitive recovery agents, which the agents would have to carry at all times when acting as a fugitive recovery agent.

Fugitive Recovery Agent Fees: The bill would establish the following schedule of fees, to defray the costs of OFIR in administering the bill:

Application Processing Fee- $35.00
Supplemental Application Processing Fee- $20.00
Examination Fee- $150.00
Examination Review Fee- $25.00

Bail Bond Runner License Requirement: In addition, the bill would also require a license to act as a “bail bond runner”, i.e. a person who delivers bail bonds to courts and jails on behalf of a bail bond agent.  A bail bond runner would be appointed by a sponsoring bail bond agent and could perform services only for the sponsoring agent and other bail bond agents employed by the sponsoring agent.  A runner could only be appointed by one sponsoring agent.  An individual acting as a bail bond runner would have to be licensed by OFIR, effective January 1, 2010.

Bail Bond Runner License Requirements: To be licensed as a bail bond runner, an individual would have to be at least 18, a state resident, complete a high school diploma or GED, be able to “competently fulfill the responsibilities of a bail bond runner,” and have no current or prior violations of state insurance or bail bond laws or regulations.  Additionally, the bail bond runner would have to have a current, valid concealed pistol permit (if applicable), or be subject to a criminal history (fingerprint) check.

Prohibited Activities: A bail bond runner could not engage in the business of a bail bond agent or, unless licensed, fugitive recovery agent; countersign bail bond powers of attorney; or possess any power of attorney or similar document unless it contains the bail bond agent’s seal; collect money; take applications for bail; executive bail bonds; or solicit bail bond business.

Bail Bond Runner Application: To be licensed by OFIR, a bail bond runner would have to submit an application.  The application would have to include a written appointment from the sponsoring bail bond agent, and written affidavits from the applicant and the sponsoring agent attesting that the applicant has received training in applicable bail laws and procedures.  The applicant would also have to disclose to OFIR whether he or she has been licensed in another state to act as a bail bond runner and whether the license was ever suspended or revoked.  (If the applicant was licensed elsewhere, the application should also include contact information of the prior bail bond agents for whom the applicant worked.).

Bail Bond Runner Violations: A person who violates the bail bond runner licensure requirements would be guilty of a misdemeanor punishable by up to 91 days imprisonment and/or a fine of up to $500 for a first violation, and up to 2 years imprisonment and/or a fine of up to $4,000 for each second or subsequent violation.  A person convicted of a second violation would be permanently disqualified from being issued a bail bond agent or bail bond runner license.

Bail Bond Runner Fees: The bill would establish the following schedule of fees, to defray the costs of OFIR in administering the bill:

Application Processing Fee- $35.00
Supplemental Application Processing Fee- $20.00
Examination Fee- $150.00
Examination Review Fee- $25.00″

Note- This article updates a series of articles written about Bail Enforcement in Michigan:

Potential New Bail Enforcement Licensing Law in Michigan

Bail Enforcement Licensing in Michigan and the “Professional Investigator Licensure Act”