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”

This article was written by L. Scott Harrell and is posted courtesy IRBseach, LLC.

IRBsearch offers The Most information, The Best data sources, and The Fastest delivery for locating people, businesses, and their assets. With one click you can search billions of records in just a fraction of a second.

HOUSE BILL No. 5493

September 30, 2009, Introduced by Rep. Johnson and referred to the Committee on Regulatory Reform.

A bill to license and regulate bail enforcement agents; to provide for certain powers and duties for certain state agencies and law enforcement agencies; to require the obtaining of surety devices by licensees; to provide for the imposition of certain fees and establishment of certain standards of operation of licensees; to provide for the promulgation of rules; and to provide remedies and prescribe penalties.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 1. This act shall be known and may be cited as the “bail enforcement agent regulation act”.

Sec. 3. As used in this act:

(a) “Bail enforcement agent” means an individual who has been contractually retained as an agent by a surety or surety agent or who is otherwise authorized to act on behalf of the surety, with or without consideration, for the delivery of a principal to the sheriff or other peace officer of any jurisdiction. Bail enforcement agent does not include a surety who is a natural person executing a recognizance on his or her own behalf.

(b) “Department” means the Department of Energy, Labor, and Economic Growth- (MI DELEG).

(c) “Principal” means an individual charged with a crime in this or any other state who is the subject of a recognizance issued by a surety for the individual’s appearance on that criminal matter…

(d) “Surety” means an individual or business entity that has entered into a recognizance as a surety for the personal appearance of an individual charged with a crime.

Sec. 5. (1) Subject to section 11, an individual shall not act as, attempt to act as, or represent himself or herself as being a bail enforcement agent unless that individual obtains a license from the department under this act.

(2) An individual may act or attempt to act as a bail enforcement agent only under 1 or more of the following circumstances based upon the information and belief of the surety:

(a) The individual subject to the recognizance has failed to appear at a required court appearance or has violated or may violate a condition of recognizance.

(b) The principal has left, is leaving, or is attempting to leave the jurisdiction.

(c) Failure of the sureties submitted by the principal.

(d) Action of the surety pursuant to section 26 of chapter V of the code of criminal procedure, 1927 PA 175, MCL 765.26.

Sec. 7. (1) The department shall issue a license as a bail enforcement agent only to a natural person.

(2) The department shall not issue a license as a bail enforcement agent to an individual who has been convicted of a felony or misdemeanor in which the individual caused physical injury to another person.

(3) An individual seeking licensure as a bail enforcement agent shall do all of the following:

(a) Apply to the department on a form supplied by the department and pay an application fee and a per-year license fee in the amount determined by the department in rules promulgated under subsection (7).

(b) Be at least 18 years of age.

(c) Supply a copy of the applicant’s fingerprints acceptable to the department. The applicant shall sign an authorization for a criminal history check by the criminal history records division of the department of state police, including the records of the federal bureau of investigation, and pay a fee determined
appropriate by the department to cover the cost of the criminal history check.

(d) If applicable, and subject to the prohibition of subsection (2), demonstrate to the department that at least 10 years have passed after all of the following conditions regarding any felony convictions and misdemeanor convictions involving physical injury to another person:

(i) The payment of all fines, costs, and restitution.

(ii) The serving of all terms of imprisonment.

(iii) The completion of all conditions of probation or parole.

(e) Not later than 5 days before the date of application, successfully complete a course of education regarding the criminal justice system, consisting of at least 20 hours of classroom instruction.

(4) Upon the issuance of a license, the department shall issue a picture identification card stating the name and any alias of the licensee, the date of issuance and expiration date of the license, and the principal business address of the licensee. For a charge of at least $10.00 but not to exceed the cost or issuance, the department shall issue a new card to a licensee whose card is lost or destroyed.

(5) A license under this act is valid for a period of 12 months from the date of its issuance and is renewable by filing a renewal application not less than 30 days before the expiration date and enclosing the per-year license fee.

(6) Within 30 days after a change of home or business address, the licensee shall notify the department in writing of the change. Upon receipt of such a change, the department shall enter the change into its records and send a sticker to the licensee with the corrected information to be placed on the licensee’s identification card.

(7) The department shall promulgate rules under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, to set fees for application for licensure under this act and for a per-year license fee. The fees shall be in an amount determined by the department to cover the actual costs of processing the application and issuing the license.

Sec. 9. A bail enforcement agent shall do all of the following:

(a) Notify by telephone or in person an appropriate law enforcement agency having jurisdiction over the location where the apprehension will occur or is planned no sooner than 24 hours before and at least 30 minutes in advance of a planned attempt to apprehend a principal. This subdivision does not apply if all of the following circumstances exist:

(i) The bail enforcement agent is confronted with an unanticipated opportunity to apprehend a principal that would be seriously jeopardized by the delay inherent in providing advance notice so long as a reasonable person would conclude that the apprehension can be accomplished without the use of force.

(ii) It is not foreseeable to a reasonable person that injury to another person or property will occur.

(iii) The bail enforcement agent notifies the law enforcement agency within 60 minutes after the apprehension.

(b) Have in his or her possession documentation demonstrating that he or she has been retained or independently contracted and authorized by the surety to effect the apprehension.

(c) Have in his or her possession his or her license issued under this act or a license issued by another jurisdiction and at least 1 additional picture identification other than the licensee identification issued under this or another jurisdiction. This additional picture identification shall be an operator’s or chauffeur’s license or an official identification issued by this or any other jurisdiction.

Sec. 11. A surety or an individual licensed as a bail enforcement agent in another jurisdiction may act as a bail enforcement agent in this state so long as he or she acts in compliance with section 9.

Sec. 13. A bail enforcement agent shall not have in his or her possession a firearm while performing his or her duties as a bail enforcement agent unless he or she is licensed to carry a concealed pistol under section 5b of 1927 PA 372, MCL 28.425b.

Sec. 15. (1) A person determined by a court of competent jurisdiction to have done any of the following is guilty of a felony punishable by imprisonment for not more than 2 years or a fine of not more than $2,000.00, or both.

(a) Acted as, attempted to act as, or represented himself or herself as being a bail enforcement agent without being licensed under this act.

(b) Knowingly possessed an altered or forged bail enforcement agent identification card or license or knowingly altered or forged a bail enforcement agent identification card or license.

(c) In the case of a person not licensed under this act but licensed by another jurisdiction, failed to comply with section 9.

(2) Except as otherwise provided in subsection (1), a person determined by a court of competent jurisdiction to have, while licensed under this act, violated any other section of this act is guilty of a misdemeanor punishable by imprisonment for not more than 1 year or a fine of not more than $1,000.00, or both.

Sec. 17. After a notice and an opportunity for a hearing under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, the department may suspend or revoke a license issued under this act of an individual determined to have violated this act.

Sec. 19. The sanctions and remedies under this act are independent and cumulative. The use of a remedy or the imposition of a sanction under this act does not bar other lawful remedies and does not limit criminal and civil liability.

Enacting section 1. This act does not take effect unless Senate Bill No. ____ or House Bill No. 5492 (request no. 04400′09a) of the 95th Legislature is enacted into law.

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

Michigan Bail Bond Personnel Licensure Act Before the State Legislature

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

This article was written by L. Scott Harrell and is posted courtesy IRBseach, LLC.

IRBsearch offers The Most information, The Best data sources, and The Fastest delivery for locating people, businesses, and their assets. With one click you can search billions of records in just a fraction of a second.

There will be two tracks of education- Security and Investigation featuring speakers such as: Kelly Riddle of Kelmar & Associates on Con and Swindle Investigations, Michelle Stuart with JAG Investigations speaking on Advanced Skip Tracing, Joe Buckley of John E Reid & Associates on Assessing Subject Credibility, Ellis Armistead of Heartland Investigations on The Art of Criminal Defense Investigations and more including keynote speaker Ric Peregrino- Director of International Operations with Blackwater Worldwide.

Fourteen and one half hours of training will be provided, allowing attendees to earn 14.5 hours of Continuing Education credit. Certificates of Education Units will be presented upon completion of the training. These credits are good toward certifications from ASIS (CPP, CPI, PSP). The total cost for attendees is only $195.00 if registered in advance.

Below is the complete schedule line up for the conference, which looks great!!! For more information and how to register for this event go to www.associationsone.org.

Date: 2009-05-14 through 2009-05-15

I’ve read the “Professional Investigator Licensure Act” which went into effect in May of 2008. While the law does not specify “bounty hunters” specifically, it has unquestionably expanded the definition of “private investigator” to now include “professional investigator.”

Within the new broad definition of “professional investigator” falls many types of individuals and, while I am not an attorney or offering legal advice, my personal opinion is that an independent contractor offering bail recovery services most likely fits within the framework of the new definition (I’ve only included the brief but most important section):

(e) “Investigation business” means a business that, for a fee, reward, or other consideration, engages in business or accepts employment to furnish, or subcontracts or agrees to make, or makes an investigation for the purpose of obtaining information with reference to any of the following:

(i) Crimes or wrongs done or threatened against the United States or a state or territory of the United States, or any other person or legal entity.

(ii) The identity, habits, conduct, business, occupation, honesty, integrity, credibility, trustworthiness, efficiency, loyalty, activity, movement, whereabouts, affiliations, associations, transactions, acts, reputation, or character of a person.

Furthermore, because the act specifically excludes licensed Michigan bail agents, one could easily infer that the writers of that law considered the act of fugitive apprehension by a bail bondsmen as an investigation; note that it did not specifically exclude a MI bail agent’s assigns, subcontractors and/or agents… what you and I would refer to as the independent act of bail enforcement or bounty hunting.

My non-attorney interpretation is that you will either need to obtain a “Professional Investigator’s license” from the Michigan Department of Labor and Economic Growth-Commercial Services Licensing or a “Fidelity & Surety Producer license” from the Michigan Office of Financial and Insurance Regulation. To me, absent any language classifying a licensed bail agent’s subcontractor as a bona fide bail agent (and there is no such language in MI PC 167(b)) then it is clear that a bail recovery agent (or whatever other title he or she wants to use) is conducting an investigation into someone else’s whereabouts for a fee, which makes him or her subject to the professional investigator licensure act.

Since this has been a hot topic, I decided to go straight to the source(s) and I am going to concede this much…

If you are in the business of bounty hunting, and not a bonafide employee (per the US Tax Code) of a MI Fidelity & Surety Producer licensee or a licensed Professional Investigator, I feel really badly for you right now.

Just before Christmas in 2008, I called both offices within the Department of Labor and Economic Growth- The Office of Financial and Insurance Regulation (Producer licensing) and the Commercial Services Licensing (Professional Investigator licensing) and spoke to the very highest representative that they would put on the phone to answer questions. I asked the same question of both, “Do I need to be licensed to be a bounty hunter in Michigan.” They both answered yes, without hesitation, but it went downhill quickly from there as I started asking pointed question; I knew it would because I identified the fly in the ointment well before getting involved in this post… I did the research back in July when I was first asked this question by someone who wanted to become a Bail Enforcement Agent in Michigan and mentioned the new verbiage in the law.

My first call was to Alicia (I think that was her name) who identified herself as being the person in charge of the professional investigator licensing section and the administrator of the Professional Investigator Licensure Act. She read me the law- verbatim, until I stopped her and assured her that I had read the law again just moments ago. I told her that I was looking for an official opinion, so I asked her point blank, “Does bounty hunting fall under the classification of an investigation business?” Again, she started reading the definition of “investigation business” from the law until I stopped her. I said, “Can you give me a yes or no answer to the question? Is bounty hunting regulated under the new Professional Investigator Act?” She said, all B.S. aside, “If bounty hunting is an investigation business, then yes.” How’s that for an affirmative non-answer? She added that the only exception would be if I was licensed per PC 167b as per the law. I asked her for clarification on where in PC 167b it defines the term “bail agent” as used in the Professional Investigator Licensure Act? She put me on hold for about 5 minutes and said, that she only handles professional investigators and suggested that I call the Office of Financial and Insurance Regulation.

The call to OFIR ((877) 999-6442) was as equally frustrating… let me condense the substance of the call for you…

OFIR: “You must be a bonafide employee of a licensed fidelity and surety producer to call yourself a bail agent.”

Me: “What about being a bounty hunter?”

OFIR: “Not our department, see the FAQ on our website.”

(I found it at http://www.michigan.gov/dleg/0,1607,7-154-10555_13648-141139–,00.html; the number provided is wrong. The new number is 517-241-9288 and as of this writing the website has been removed)

Me: “What about 167b, as stated in the Professional Investigator Licensure Act?”

OFIR: “Questions concerning the content of the Professional Investigator Licensure Act should be directed to the Commercial Services Licensing division of the DLEG. Would you like their number?”

Me: “No, I’ve already talked to them and they referred me to you for official clarification of what a “bail agent as authorized in 167b” is exactly.”

Loooooooooooong hold time……

OFIR: “Sir the only advice we can give you is to go to the Michigan legislature website and search on the term “bail agent.” Thanks and happy holidays.” Click, then the inevitable dial tone.

Of course I had already searched for the term bail agent in MI code and the only time the phrase is used is in the, say it with me boys and girls… the Professional Investigator Licensure Act.

You see, 167b does not describe the authorization of a bail agent nor does it define bail agent in any capacity; 167b instead defines what those people who are the surety upon a bail bond and his or her “clerks, agents and representatives” may not do:

1. Thou shall not pay potential bribe money.
2. Though shall not be in league with criminal defense attorneys.
3. Thou shall not charge more than 10% of the bail.
4. The jail shall build a list of bondsmen and make it conspicuous for all to see.
5. If you shall then you shall be guilty of a misdemeanor.

However, while this is a fundamental flaw in the Professional Investigator Licensure Act and really reeks of terrible legislation, it does not invalidate the law.

The bottom line is that the only proper course of action, as suggested by a friend, is to request an opinion from the Michigan Attorney General. I’m not an attorney and this is not legal advice but it would be irresponsible of me to tell you that you did not need a license in Michigan, even if a few people on the Internet are claiming otherwise.

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

“Michigan Bail Bond Personnel Licensure Act” Before the State Legislature in 2010 

Potential New Bail Enforcement Licensing Law in Michigan