SUMMARY--Makes various changes to provisions governing licensure of bail bondsmen. (BDR 57-734)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: No.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to bail bondsmen; requiring a person to be licensed by the commissioner of insurance to act in the capacity of a bail enforcement agent; revising the qualifications for licensure as a bail agent, bail solicitor or general agent; eliminating the requirement that a person obtain a license to act in the capacity of a property bondsman; revising the fees that may be charged by a bail agent for his services; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
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Section 1 NRS 679A.160 is hereby amended to read as follows:
679A.160[Unless otherwise provided,] Except as otherwise provided by specific statute, no provision of this code applies to:
1. Fraternal benefit societies, as identified in chapter 695A of NRS, except as stated in chapter 695A of NRS.
2. Hospital, medical or dental service corporations, as identified in chapter 695B of NRS, except as stated in chapter 695B of NRS.
3. Motor clubs, as identified in chapter 696A of NRS, except as stated in chapter 696A of NRS.
4. Bail [bondsmen,] agents, as identified in chapter 697 of NRS, except as stated in NRS 680B.025 to 680B.039, inclusive, and chapter 697 of NRS.
5. Risk retention groups, as identified in chapter 695E of NRS, except as stated in chapter 695E of NRS.
6. Health and welfare plans arising out of collective bargaining under chapter 288 of NRS, except that the commissioner may review the plan to ensure that the benefits are reasonable in relation to the premiums and that the fund is financially sound.
Sec. 2 NRS 679B.240 is hereby amended to read as follows:
679B.240[For the purpose of ascertaining] To ascertain compliance with law, or relationships and transactions between any [such] person and any insurer or proposed insurer, the commissioner may, as often as he deems advisable, examine the accounts, records, documents and transactions relating to such compliance or relationships of:
1. Any insurance agent, solicitor, broker, surplus lines broker, general agent, adjuster, insurer representative, bail [bondsman,] agent, motor club agent or any other licensee or any other person the commissioner has reason to believe may be acting as or holding himself out as any of the foregoing.
2. Any person having a contract under which he enjoys in fact the exclusive or dominant right to manage or control an insurer.
3. Any insurance holding company or other person holding the shares of voting stock or the proxies of policyholders of a domestic insurer, [for the purpose of controlling] to control the management thereof, as voting trustee or otherwise.
4. Any subsidiary of the insurer.
5. Any person engaged in this state in, or proposing to be engaged in this state in, or holding himself out in this state as so engaging or proposing, or in this state assisting in, the promotion, formation or financing of an insurer or insurance holding corporation, or corporation or other group to finance an insurer or the production of its business.
Sec. 3 NRS 680B.010 is hereby amended to read as follows:
680B.010 The commissioner shall collect in advance and receipt for, and persons so served shall pay to the commissioner, fees and miscellaneous charges as follows:
1. Insurer's certificate of authority:
(a) Filing initial application $2,450
(b) Issuance of certificate:
(1) For any one kind of insurance as defined in NRS 681A.010 to 681A.080, inclusive 283
(2) For two or more kinds of insurance as so defined 578
(3) For a reinsurer 2,450
(c) Each annual continuation of a certificate 2,450
(d) Reinstatement pursuant to NRS 680A.180, 50 percent of the annual continuation fee otherwise required.
(e) Registration of additional title pursuant to NRS 680A.240 50
(f) Annual renewal of the registration of additional title pursuant to NRS 680A.240 25
2. Charter documents, other than those filed with an application for a certificate of authority. Filing amendments to articles of incorporation, charter, bylaws, power of attorney and other constituent documents of the insurer, each document $10
3. Annual statement or report. For filing annual statement or report $25
4. Service of process:
(a) Filing of power of attorney $5
(b) Acceptance of service of process 30
5. Agents' licenses, appointments and renewals:
(a) Resident agents and nonresident agents qualifying under subsection 3 of NRS 683A.340:
(1) Application and license $78
(2) Appointment by each insurer 5
(3) Triennial renewal of each license 78
(4) Temporary license 10
(b) Other nonresident agents:
(1) Application and license 138
(2) Appointment by each insurer 25
(3) Triennial renewal of each license 138
6. Brokers' licenses and renewals:
(a) Resident brokers and nonresident brokers qualifying under subsection 3 of NRS 683A.340:
(1) Application and license $78
(2) Triennial renewal of each license 78
(b) Other nonresident brokers:
(1) Application and license 258
(2) Triennial renewal of each license 258
(c) Surplus lines brokers:
(1) Application and license 78
(2) Triennial renewal of each license 78
7. Solicitors' licenses, appointments and renewals:
(a) Application and license $78
(b) Triennial renewal of each license 78
(c) Initial appointment 5
8. Managing general agents' licenses, appointments and renewals:
(a) Resident managing general agents:
(1) Application and license $78
(2) Initial appointment, each insurer 5
(3) Triennial renewal of each license 78
(b) Nonresident managing general agents:
(1) Application and license 138
(2) Initial appointment, each insurer 25
(3) Triennial renewal of each license 138
9. Adjusters' licenses and renewals:
(a) Independent and public adjusters:
(1) Application and license $78
(2) Triennial renewal of each license 78
(b) Associate adjusters:
(1) Application and license 78
(2) Initial appointment 5
(3) Triennial renewal of each license 78
10. Licenses and renewals for appraisers of physical damage to motor vehicles:
(a) Application and license $78
(b) Triennial renewal of each license 78
11. Additional title and property insurers pursuant to NRS 680A.240:
(a) Original registration $50
(b) Annual renewal 25
12. Insurance vending machines:
(a) Application and license, for each machine $78
(b) Triennial renewal of each license 78
13. Permit for solicitation for securities:
(a) Application for permit $100
(b) Extension of permit 50
14. Securities salesmen for domestic insurers:
(a) Application and license $25
(b) Annual renewal of license 15
15. Rating organizations:
(a) Application and license $500
(b) Annual renewal 500
16. Certificates and renewals for administrators licensed pursuant to chapter 683A of NRS:
(a) Resident administrators:
(1) Application and certificate of registration $78
(2) Triennial renewal 78
(b) Nonresident administrators:
(1) Application and certificate of registration 138
(2) Triennial renewal 138
17. For copies of the insurance laws of Nevada, a fee which is not less than the cost of producing the copies.
18. Certified copies of certificates of authority and licenses issued pursuant to the insurance code $10
19. For copies and amendments of documents on file in the division, a reasonable charge fixed by the commissioner, including charges for duplicating or amending the forms and for certifying the copies and affixing the official seal.
20. Letter of clearance for an agent or broker $10
21. Certificate of status as a licensed agent or broker $10
22. Licenses, appointments and renewals for bail agents:
(a) Application and license $78
(b) Initial appointment by each surety insurer 5
(c) Triennial renewal of each license 78
23. Licenses and renewals for [property bondsmen:] bail enforcement agents:
(a) Application and license $78
(b) Triennial renewal of each license 78
24. Licenses, appointments and renewals for general bail agents:
(a) Application and license $78
(b) Initial appointment by each insurer 5
(c) Triennial renewal of each license 78
25. Licenses and renewals for bail solicitors:
(a) Application and license $78
(b) Triennial renewal of each license 78
26. Licenses and renewals for title agents and escrow officers:
(a) Resident title agents and escrow officers:
(1) Application and license $78
(2) Triennial renewal of each license 78
(b) Nonresident title agents and escrow officers:
(1) Application and license 138
(2) Triennial renewal of each license 138
(c) Change in name or location of business or in association 10
27. Certificate of authority and renewal for a seller of prepaid funeral contracts $78
28. Licenses and renewals for agents for prepaid funeral contracts:
(a) Resident agents:
(1) Application and license $78
(2) Triennial renewal of each license 78
(b) Nonresident agents:
(1) Application and license 138
(2) Triennial renewal of each license 138
29. Licenses, appointments and renewals for agents for fraternal benefit societies:
(a) Resident agents:
(1) Application and license $78
(2) Appointment 5
(3) Triennial renewal of each license 78
(b) Nonresident agents:
(1) Application and license 138
(2) Triennial renewal of each license 138
30. Reinsurance intermediary broker or manager:
(a) Resident agents:
(1) Application and license $78
(2) Triennial renewal of each license 78
(b) Nonresident agents:
(1) Application and license 138
(2) Triennial renewal of each license 138
31. Agents for and sellers of prepaid burial contracts:
(a) Resident agents and sellers:
(1) Application and certificate or license $78
(2) Triennial renewal 78
(b) Nonresident agents and sellers:
(1) Application and certificate or license 138
(2) Triennial renewal 138
32. Risk retention groups:
(a) Initial registration and review of an application $2,450
(b) Each annual continuation of a certificate of registration 2,450
33. Required filing of forms:
(a) For rates and policies $25
(b) For riders and endorsements 10
Sec. 4 NRS 683A.400 is hereby amended to read as follows:
683A.4001. All funds of others received by any person in any way licensed or acting as an insurance agent, broker, solicitor, surplus lines broker, motor club agent or bail [bondsman] agent under any insurance policy or undertaking of bail, are received and held by such person in a fiduciary capacity. Any such person who diverts or appropriates such fiduciary funds to his own use is guilty of embezzlement.
2. Each such person who does not make immediate remittance of such funds to the insurer or other person entitled thereto, shall elect and follow with respect to funds received for the account of a particular insurer or person either of the following methods:
(a) Remit received premiums , [(] less applicable commissions, if any , [)] and return premiums to the insurer or other person entitled thereto within 15 days after such receipt; or
(b) Establish and maintain in a commercial bank or other established financial institution depositary in this state one or more accounts, separate from accounts holding his general personal, firm or corporate funds, and forthwith deposit and retain therein pending transmittal to the insurer or other person entitled thereto, all such premiums , [(] net of applicable commissions, if any , [)] and return premiums. Funds belonging to more than one principal may be so deposited and held in the same such account [so long as] if the amount so held for each such principal is readily ascertainable from the records of the depositor. The depositor may commingle with such fiduciary funds in a particular [such] account such additional funds as he may deem prudent [for the purpose of advancing premiums, establishing] to advance premiums, establish reserves for the payment of return commissions, or for other contingencies arising in his business of receiving and transmitting premiums or return premiums.
3. Such a person may commingle with his own funds to an unlimited amount funds of a particular principal if the principal in writing in advance has specifically waived the segregation requirements of subsection 2.
4. Any commingling of funds with funds of any such person permitted under this section [shall] does not alter the fiduciary capacity of such person with respect to the funds of others.
Sec. 5 NRS 684A.070 is hereby amended to read as follows:
684A.070 1. For the protection of the people of this state, the commissioner may not issue or continue any license as an adjuster except in compliance with the provisions of this chapter. Any [individual] person for whom a license is issued or continued must:
(a) Be at least 18 years of age;
(b) Except as otherwise provided in subsection 2, be a [bona fide] resident of this state [;] , and have resided therein for at least 90 days before his application for the license;
(c) Be competent, trustworthy, financially responsible and of good reputation;
(d) Never have been convicted of, or entered a plea of guilty or nolo contendere to, forgery, embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to defraud or any crime involving moral turpitude;
(e) Have had at least 2 years' recent experience with respect to the handling of loss claims of sufficient character reasonably to enable him to fulfill the responsibilities of an adjuster;
(f) Pass all examinations required under this chapter; and
(g) Not be concurrently licensed as an agent, broker, solicitor or surplus lines broker, except as a bail [bondsman.] agent.
2. The commissioner may [, in his discretion,] waive the residency requirement set forth in paragraph (b) of subsection 1 if the applicant is:
(a) An adjuster licensed under the laws of another state who has been brought to this state by [an employer] a firm or corporation with whom he is employed that is licensed as an adjuster in this state to fill a vacancy in the firm or corporation in this state;
(b) An adjuster licensed in an adjoining state whose principal place of business is located within 50 miles from the boundary of this state; or
(c) An adjuster who is applying for a limited license pursuant to section 18.5 of [this act.] Assembly Bill No. 578 of this session.
3. A conviction of, or plea of guilty or nolo contendere by, an applicant or licensee for any crime listed in paragraph (d) of subsection 1 is a sufficient ground for the commissioner to deny a license to the applicant, or to suspend, revoke or limit the license of an adjuster pursuant to NRS 684A.210.
Sec. 6 Chapter 697 of NRS is hereby amended by adding thereto the provisions set forth as sections 7 to 14, inclusive, of this act.
Sec. 7 "Bail enforcement agent" means a person who has contracted with or is employed by a surety or bail agent as a special agent to enforce the terms and conditions of a defendant's release from custody on bail in a criminal proceeding, to locate a defendant and to apprehend a defendant or surrender a defendant to custody, or both, if appropriate.
Sec. 8 1. Except as otherwise provided in subsection 2, a person is entitled to receive, renew or hold a license as a bail enforcement agent if he:
(a) Is a natural person not less than 21 years of age.
(b) Is a citizen of the United States or is lawfully entitled to remain and work in the United States.
(c) Has a high school diploma or a general equivalency diploma or has an equivalent education as determined by the commissioner.
(d) Has submitted to the commissioner a report of an investigation of his criminal history from the central repository for Nevada records of criminal history which indicates that he possesses the qualifications for licensure as a bail enforcement agent.
(e) Has submitted to the commissioner the results of an examination conducted by a psychiatrist or psychologist licensed to practice in this state which indicate that he does not suffer from a psychological condition that would adversely affect his ability to carry out his duties as a bail enforcement agent.
(f) Has passed any written examination required by this chapter.
(g) Submits to the commissioner the results of a test to detect the presence of a controlled substance in his system that was administered no earlier than 30 days before the date of the application for the license which do not indicate the presence of any controlled substance for which he does not possess a current and lawful prescription issued in his name.
(h) Successfully completes the training required by section 9 of this act.
2. A person is not entitled to receive, renew or hold a license of a bail enforcement agent if he:
(a) Has been convicted of a felony in this state or of any offense committed in another state which would be a felony if committed in this state; or
(b) Has been convicted of an offense involving moral turpitude or the unlawful use, sale or possession of a controlled substance.
Sec. 9 1. Except as otherwise provided in this section, an applicant for a license as a bail enforcement agent must satisfactorily complete a basic course of training for bail enforcement agents that is approved by the commissioner.
2. The basic course of training must consist of at least 80 hours of training which includes instruction in:
(a) The following areas of the law:
(1) Constitutional law;
(2) Procedures for arresting defendants and surrendering defendants into custody;
(3) Civil liability;
(4) The civil rights of persons who are detained in custody;
(5) The use of force; and
(6) The history and principles of bail;
(b) Procedures for field operations, including, without limitation:
(1) Safety and survival techniques;
(2) Searching buildings;
(3) Handling persons who are mentally ill or under the influence of alcohol or a controlled substance; and
(4) The care and custody of prisoners;
(c) The skills required of bail enforcement agents, including, without limitation:
(1) Writing reports, completing forms and procedures for exoneration;
(2) Methods of arrest;
(3) Nonlethal weapons;
(4) The retention of weapons;
(5) Qualifications for the use of firearms; and
(6) Defensive tactics;
(d) Principles of investigation, including, without limitation:
(1) The basic principles of locating defendants who have not complied with the terms and conditions established by a court for their release from custody or the terms and conditions of a contract entered into with a surety; and
(2) Ethics; and
(e) The following subjects:
(1) Demeanor in a courtroom;
(2) First aid used in emergencies; and
(3) Cardiopulmonary resuscitation.
An applicant may complete the 80 hours of training required by this subsection by completing 16 hours of training each weekend for 5 weeks.
3. In lieu of completing the basic course of training required by subsection 1, an applicant may submit proof to the commissioner that he has completed a course of training required by a municipal, state or federal law enforcement agency or a branch of the armed forces to carry out the duties of a peace officer.
4. An applicant for a license as a bail enforcement agent must complete the training required by this section within 9 months after the date he is employed by a bail agent as a bail enforcement agent. The commissioner shall issue a temporary license to an applicant who has not completed the training if he is otherwise qualified to be issued a license as a bail enforcement agent. The temporary license:
(a) Authorizes the person to whom it is issued to act as a bail enforcement agent while employed by a licensed bail agent.
(b) Is valid for 9 months or until the person to whom it is issued completes the training required by this section, whichever occurs first.
(c) May not be renewed.
Sec. 10 An application for a license as a bail agent must be accompanied by:
1. Proof of the completion of a 6-hour course of instruction in bail bonds that is:
(a) Offered by a state or national organization of bail agents or another organization that administers training programs for bail agents; and
(b) Is approved by the commissioner.
2. A written appointment by an authorized insurer as agent for bail bonds, subject to the issuance of the license.
3. A letter from a local law enforcement agency in the applicant's county of residence which indicates that the applicant:
(a) Has not been convicted of a felony in this state or of any offense committed in another state which would be a felony if committed in this state; and
(b) Has not been convicted of an offense involving moral turpitude or the unlawful use, sale or possession of a controlled substance.
Sec. 11 1. An application for a license as a general agent must be accompanied by:
(a) Proof of the completion of a 6-hour course of instruction in bail bonds that is:
(1) Offered by a state or national organization of bail agents or another organization that administers training programs for general agents; and
(2) Is approved by the commissioner.
(b) A written appointment by an authorized insurer as general agent, subject to the issuance of the license.
(c) A letter from a local law enforcement agency in the applicant's county of residence which indicates that the applicant:
(1) Has not been convicted of a felony in this state or of any offense committed in another state which would be a felony if committed in this state; and
(2) Has not been convicted of an offense involving moral turpitude or the unlawful use, sale or possession of a controlled substance.
2. If the applicant for a license as a general agent is a firm or corporation, the application must include the names of the members, officers and directors and designate each natural person who is to exercise the authority granted by the license. Each person so designated must furnish information about himself as though the application were for an individual license.
Sec. 12 An application for a license as a bail solicitor must be accompanied by:
1. Proof of the completion of a 6-hour course of instruction in bail bonds that is:
(a) Offered by a state or national organization of bail agents or another organization that administers training programs for bail solicitors; and
(b) Is approved by the commissioner.
2. An appointment by a licensed bail agent and a statement by the agent that he will exercise reasonable supervision over the conduct of the applicant and be responsible for the applicant's conduct in the bail bond business.
3. A letter from a local law enforcement agency in the applicant's county of residence which indicates that the applicant:
(a) Has not been convicted of a felony in this state or of any offense committed in another state which would be a felony if committed in this state; and
(b) Has not been convicted of an offense involving moral turpitude or the unlawful use, sale or possession of a controlled substance.
Sec. 13 An application for a license as a bail enforcement agent must be accompanied by:
1. Proof of compliance with the requirements set forth in section 8 of this act.
2. A letter from a local law enforcement agency in the applicant's county of residence which indicates that the applicant:
(a) Has not been convicted of a felony in this state or of any offense committed in another state which would be a felony if committed in this state; and
(b) Has not been convicted of an offense involving moral turpitude or the unlawful use, sale or possession of a controlled substance.
Sec. 14 A person who is licensed as a general agent, bail agent or bail solicitor on October 1, 1997, is entitled to renew his license after that date if he is otherwise qualified to be issued such a license and submits to the commissioner a letter from a local law enforcement agency in his county of residence which indicates that he:
1. Has not, on or after October 1, 1997, been convicted of a felony in this state or of any offense committed in another state which would be a felony if committed in this state; and
2. Has not, on or after October 1, 1997, been convicted of an offense involving moral turpitude or the unlawful use, sale or possession of a controlled substance.
Sec. 15 NRS 697.020 is hereby amended to read as follows:
697.020As used in this code, unless the context otherwise requires, the words and terms defined in NRS 697.030 to 697.080, inclusive, and section 7 of this act, have the meanings ascribed to them in [NRS 697.030 to 697.080, inclusive.] those sections.
Sec. 16 NRS 697.030 is hereby amended to read as follows:
697.030"Bail" means [that which is deposited] a deposit made with a court or other governmental agency to secure or continue the release from custody and to guarantee the appearance of the defendant in a criminal proceeding. [Bail] The term includes bail bonds, undertakings of bail and any pledge or deposit of the matters described in NRS 697.320.
Sec. 17 NRS 697.060 is hereby amended to read as follows:
697.060"Bail solicitor" means [an individual] a person employed by a bail [bondsman] agent to solicit bail transactions as a representative of [such bail bondsman.] the bail agent.
Sec. 18 NRS 697.090 is hereby amended to read as follows:
697.0901. [No individual] A person in this state shall not act in the capacity of a bail [bondsman] agent, bail enforcement agent or bail solicitor, or perform any of the functions, duties or powers prescribed for a bail [bondsman] agent, bail enforcement agent or bail solicitor under the provisions of this chapter , unless that [individual] person is qualified and licensed as provided in this chapter.
2. [No] A person, whether or not located in this state, shall [be,] not act as or hold himself out to be a general agent unless qualified and licensed as such under the provisions of this chapter.
3. For the protection of the people of this state, the commissioner shall not issue [nor renew, nor] or renew, or permit to exist, any license except in compliance with this chapter. The commissioner shall not issue [nor renew, nor] or renew, or permit to exist, a license for any [individual] person found to be untrustworthy or incompetent, or who has not established to the satisfaction of the commissioner that he is qualified therefor in accordance with this chapter.
Sec. 19 NRS 697.100 is hereby amended to read as follows:
697.1001. [No] Except as otherwise provided in this section, no license may be issued [except] :
(a) Except in compliance with this chapter . [and none may be issued to a bail bondsman]
(b) To a bail agent, bail enforcement agent or bail solicitor [except to] , unless he is a natural person.
2. A corporation may be licensed as a bail agent or bail enforcement agent if ownership and control of the corporation is retained by one or more licensed agents.
3. This section does not prohibit two or more licensed bail [bondsmen] agents from entering into a partnership for the conduct of their bail business. No person may be a member of such a partnership unless he is licensed pursuant to this chapter in the same capacity as all other members of the partnership. [Limited partnerships are prohibited and no] A limited partnership or a natural person may not have any proprietary interest , directly or indirectly , in a partnership or the conduct of business thereunder except licensed bail [bondsmen] agents as provided in this chapter.
Sec. 20 NRS 697.120 is hereby amended to read as follows:
697.120This chapter [shall] does not:
1. Prevent any [duly] licensed general lines agent, as defined in NRS 683A.050, from writing bail bonds for any insurer authorized to write surety which he represents as agent, providing [such agent shall be] the agent is subject to and governed by all laws, rules and regulations relating to bail [bondsmen] agents when engaged in the activities thereof.
2. Affect the negotiation for or the execution or delivery of a bail bond which is authorized by chapter 696A of NRS . [(motor clubs).]
Sec. 21 NRS 697.150 is hereby amended to read as follows:
697.150[A]
1. Except as otherwise provided in subsection 2, a person is [not] entitled to receive, renew or hold a license as a bail agent [unless he:
1. Is a bona fide resident of and resides within this state, and must have so] if he:
(a) Is a resident of this state and has resided in this state for not less than 1 year immediately preceding the date of the application for the license.
[2.] (b) Is a natural person not less than 18 years of age.
[3.] (c) Has been appointed as a bail agent by an authorized surety insurer, subject to the issuance of the license.
[4.] (d) Is competent, trustworthy and financially responsible . [, and has not been convicted of, or entered a plea of guilty or nolo contendere to, forgery, embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to defraud or any crime involving moral turpitude. A conviction of, or plea of guilty or nolo contendere by, an applicant or licensee for any crime listed in this subsection is a sufficient ground for the commissioner to deny a license to the applicant or to suspend or revoke the agent's license.
5.] (e) Has passed any written examination required under this chapter.
[6.] (f) Has filed the bond required by NRS 697.190.
(g) Has, on or after July 1, 1999, successfully completed a 6-hour course of instruction in bail bonds that is:
(1) Offered by a state or national organization of bail agents or another organization that administers training programs for bail agents; and
(2) Approved by the commissioner.
2. A person is not entitled to receive, renew or hold a license as a bail agent if he has been convicted of, or entered a plea of guilty or nolo contendere to, forgery, embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to defraud or any crime involving moral turpitude. A conviction of, or plea of guilty or nolo contendere by, an applicant or licensee for any crime listed in this subsection is a sufficient ground for the commissioner to deny a license to the applicant or to suspend or revoke the license of the agent.
Sec. 22 NRS 697.170 is hereby amended to read as follows:
697.170 [A]
1. Except as otherwise provided in subsection 2, aperson is [not] entitled to receive, renew or hold a license as a bail solicitor [unless he:
1.] if he:
(a) Is a natural person not less than 18 years of age.
[2. Is and has been a bona fide resident within]
(b) Is a resident of this state and has resided in this state for not less than 3 months immediately preceding the date of the application for the license.
[3.] (c) Is the bona fide employee of a licensed bail [bondsman] agent as a bail solicitor, or is to be so employed subject to the issuance of the license.
[4.] (d) Has successfully completed a 6-hour course of instruction in bail bonds that is:
(1) Offered by a state or national organization of bail agents or another organization that administers training programs for bail solicitors; and
(2) Is approved by the commissioner.
(e) Has passed any written examination required under this chapter.
2. Except as otherwise provided in section 14 of this act, a person is not entitled to receive, renew or hold a license as a bail solicitor if he:
(a) Has been convicted of a felony in this state or of any offense committed in another state which would be a felony if committed in this state; or
(b) Has been convicted of an offense involving moral turpitude or the unlawful use, sale or possession of a controlled substance.
Sec. 23 NRS 697.180 is hereby amended to read as follows:
697.1801. [Written] A written application for a [bail agent's, general agent's, property bondsman's or bail solicitor's] license as a bail agent, general agent, bail enforcement agent or bail solicitor must be filed with the commissioner by the applicant, accompanied by the applicable fees. The application form must be accompanied by the applicant's fingerprints, and must require full answers to questions reasonably necessary to determine the applicant's:
(a) Identity and residence.
(b) Business record or occupations for not less than the 2 years [next preceding,] immediately preceding the date of the application, with the name and address of each employer, if any.
(c) [Experience or instruction in the bail bond business and relative to the laws of this state governing bail.] Prior criminal history, if any.
2. The commissioner may [reasonably] require the submission of such other [facts] information as may be required to determine the applicant's qualifications for the license for which he applied . [for.
3. If for a bail agent's license, the application must be accompanied by a written appointment by an authorized insurer as agent for bail bonds, subject to issuance of the license.
4. If for a general agent's license, the application must be accompanied by a written appointment by an authorized insurer as general agent, subject to issuance of the license.
5. If for a bail solicitor's license, the application must be accompanied by an appointment by a licensed bail agent and a statement by the agent that he will exercise reasonable supervision over the conduct of the applicant and be responsible for the applicant's conduct in the bail bond business.
6. If the applicant for a general agent's license is a firm or corporation, the application must also name all members, officers and directors, and designate each natural person who is to exercise the license powers. Each person so designated must furnish information about himself as though for an individual license.
7.] 3. The applicant must verify his application. An applicant for a license under this chapter shall not knowingly misrepresent or withhold any fact or information called for in the application form or in connection therewith.
Sec. 24 NRS 697.190 is hereby amended to read as follows:
697.1901. Every applicant for a [property bondsman's,] bail agent's or bail solicitor's license [shall] must file with the application, and thereafter maintain in force while so licensed, a bond in favor of the people of the State of Nevada executed by an authorized surety insurer. The bond may be continuous in form with total aggregate liability limited to payment as follows:
(a) [Property bondsman $50,000
(b)] Bail agent $25,000
[(c)] (b) Bail solicitor 10,000
2. The bond must be conditioned upon full accounting and payment to the person entitled thereto of money, property or other matters coming into the licensee's possession through bail bond transactions under the license.
3. The bond must remain in force until released by the commissioner, or canceled by the surety. Without prejudice to any liability previously incurred under the bond, the surety may cancel the bond upon 30 days' advance written notice to [both] the licensee and the commissioner.
Sec. 25 NRS 697.200 is hereby amended to read as follows:
697.200 1. Any natural person who intends to apply for a license as a bail [bondsman] agent, bail enforcement agent or bail solicitor must personally take and pass a written examination of his competence to act as [a bail bondsman or bail solicitor.] such. After passing the examination, the person may apply to the commissioner for such a license.
2. The scope of the examination must be as broad as the bail bond business.
3. The examination must be administered by the commissioner or an entity approved by the commissioner.
Sec. 26 NRS 697.220 is hereby amended to read as follows:
697.2201. [The license shall] A license must state the name and address of the licensee, the date of issue, general conditions relative to expiration or termination, and such other information and conditions as the commissioner may deem proper and consistent with law.
2. The license of a bail solicitor [shall show] must also state the name and address of the [employer bail bondsman.] bail agent who is the employer of the bail solicitor.
Sec. 27 NRS 697.230 is hereby amended to read as follows:
697.2301. [Each general agent's, bail bondsman's and bail solicitor's] Except as otherwise provided in section 9 of this act, each license issued to a general agent, bail agent, bail enforcement agent or bail solicitor under this chapter continues in force for 3 years unless it is suspended, revoked or otherwise terminated. A license may be renewed upon payment of the applicable fee for renewal to the commissioner on or before the last day of the month in which the license is renewable. The fee must be accompanied by [a] :
(a) Proof that the licensee has completed a 3-hour program of continuing education that is:
(1) Offered by the authorized surety insurer from whom he received his written appointment, if any, a state or national organization of bail agents or another organization that administers training programs for general agents, bail agents, bail enforcement agents or bail solicitors; and
(2) Approved by the commissioner; and
(b) A written request for renewal of the license. The request must be made and signed:
[(a)] (1) By the licensee in the case of the renewal of a [general agent's or property bondsman's license.
(b)] license as a general agent, bail enforcement agent or bail agent.
(2) By the bail solicitor and the bail [bondsman] agent who employs the solicitor in the case of [a bail solicitor's license.] the renewal of a license as a bail solicitor.
2. Any license [referred to in subsection 1 and not so] that is not renewed on or before the last day specified for its renewal expires at midnight on that day. The commissioner may accept a request for renewal received by him within 30 days after the date of expiration [,] if the request is accompanied by a fee for renewal of 150 percent of the fee otherwise required.
3. A bail agent's license continues in force while there is in effect an appointment of him as a bail agent of one or more authorized insurers. Upon termination of all the bail agent's appointments and his failure to replace any appointment within [60] 30 days thereafter, his license expires and he shall promptly deliver his license to the commissioner.
4. The commissioner shall terminate the license of a general agent for a particular insurer upon a written request by the insurer.
5. [Any property bondsman who discontinues writing bail bonds during the period for which he is licensed shall notify the clerk of the district court and the sheriff with whom he has registered and return his license to the commissioner for cancellation within 30 days after the discontinuance.
6.] This section does not apply to temporary licenses issued under section 9 of this act or NRS 683A.300.
Sec. 28 NRS 697.250 is hereby amended to read as follows:
697.2501. An insurer may terminate an appointment at any time. The insurer shall promptly give written notice of termination and the effective date thereof to the commissioner, on forms furnished by the commissioner, and to the bail agent if reasonably possible. The commissioner may require of the insurer reasonable proof that the insurer has also given such a notice to the agent if reasonably possible.
2. Accompanying each notice of termination given to the commissioner, the insurer shall file with him a statement of the cause, if any, for the termination. Any information or documents so disclosed to the commissioner shall be deemed an absolutely privileged communication, and the information or documents are not admissible as evidence in any action or proceedings unless their use as evidence is permitted by the insurer in writing.
3. A bail [bondsman] agent terminating the appointment and license as such of a bail solicitor shall give [like] notice of termination [, with like status as a privileged communication] in the manner prescribed by subsections 1 and 2. Any information or documents disclosed to the commissioner shall be deemed an absolutely privileged communication, unless the privilege is waived in writing by the bail agent.
4. No agreement between an insurer and a bail agent or between an employing bail [bondsman] agent and a licensed bail solicitor affects the commissioner's termination of the appointment or license if the termination is requested by the insurer or the employing bail agent, as the case may be.
Sec. 29 NRS 697.260 is hereby amended to read as follows:
697.2601. A bail solicitor shall not concurrently be employed or licensed as to more than one bail [bondsman.] agent.
2. The bail [bondsman shall be] agent is responsible for the acts or omissions of the bail solicitors within the scope of his employment.
3. The bail solicitor shall maintain his office with that of the [employer bail bondsman.] bail agent with whom he is employed.
4. The bail solicitor's license [shall] must remain in the custody of the [employer bail bondsman.] bail agent with whom he is employed. Upon termination of such employment as a bail solicitor, the bail [bondsman] agent shall give written notice thereof to the commissioner, as provided in NRS 697.250, and deliver the license to the commissioner for cancellation.
Sec. 30 NRS 697.270 is hereby amended to read as follows:
697.270 [No bail bondsman shall] A bail agent shall not become a surety on an undertaking unless he has registered in the office of the sheriff and with the clerk of the district court in which the [bondsman] agent resides, and he may register in [like] the same manner in any other county. Any bail agent shall file a certified copy of his appointment by power of attorney from each insurer which he represents as agent with each of such officers. [Registration and filing of] The bail agent shall register and file a certified copy of renewed power of attorney [shall be performed] annually on July 1. The clerk of the district court and the sheriff shall not permit the registration of a bail [bondsman unless such bondsman is duly] agent unless the agent is licensed by the commissioner.
Sec. 31 NRS 697.280 is hereby amended to read as follows:
697.280 1. Every bail [bondsman] agent shall have and maintain in this state a place of business accessible to the public, wherein the licensee principally conducts transactions under his license. The address of [such place shall] his principal place of business must appear upon the application for a license and upon the license, when issued, and the licensee shall promptly notify the commissioner [relative to] of any change [thereof. Nothing in this section prohibits the maintenance of such place in the licensee's] in that address. This subsection does not prohibit a licensee from conducting business in his residence in this state.
2. The licenses of the licensee, and those of others employed by him, [shall] and the fees charged for services rendered must be conspicuously displayed in [such] his principal place of business in a part or area customarily open to the public.
3. The bail [bondsman] agent shall keep at [such] his principal place of business the records required under NRS 697.290.
Sec. 32 NRS 697.290 is hereby amended to read as follows:
697.290Every bail [bondsman] agent must maintain in his office such records of bail bonds, and such additional information as the commissioner may reasonably require, executed or countersigned by him to enable the public to obtain all necessary information concerning [such] the bail bonds for at least 1 year after the liability of the surety has been terminated. [Such records shall] The records must be open to examination by the commissioner or his representatives at all times, and the commissioner at any time may require the licensee to furnish to him, in such manner or form as he requires, any information kept or required to be kept in [such] the records.
Sec. 33 NRS 697.300 is hereby amended to read as follows:
697.300 [No bail bondsman shall,]
1. A bail agent shall not, in any bail transaction or in connection therewith, directly or indirectly, charge [,] or collect money or other valuable consideration from any person except for the following purposes:
[1.] (a) To pay the premium at the rates established by the insurer, in accordance with chapter 686B of NRS, or to pay the charges for the bail bond filed in connection with [such] the transaction at the rates filed in accordance with the provisions of this code.
[2.] The rates must be not less than 10 percent or more than 15 percent of the amount of the bond or $50, whichever is greater.
(b) To provide collateral.
[3.] (c) To reimburse himself for actual expenses incurred in connection with the [individual bail transaction, including:
(a) Guard and like fees;
(b)] transaction. Such expenses are limited to:
(1) Guard fees.
(2) Notary public fees, recording fees, expenses incurred for necessary long distance telephone [expenses, telegram charges and travel] calls and charges for telegrams.
(3) Travel expenses incurred more than 25 miles from the [bondsman's] agent's principal place of business . [, such travel expense not to exceed a charge of 10 cents per mile in excess of such 25 miles; and
(c)] Such expenses:
(I) May be billed at the rate provided for state officers and employees generally; and
(II) May not be charged in areas where bail agents advertise a local telephone number.
(4) Expenses incurred to verify underwriting information.
(5) Any other actual expenditure necessary to the [bail] transaction which is not usually and customarily incurred in connection with bail transactions.
[4.] (d) To reimburse himself, or have a right of action against the principal or any indemnitor, for actual expenses incurred in good faith, by reason of breach by the defendant of any of the terms of the written agreement under which and pursuant to which the undertaking of bail or bail bond was written. [Should there be] If there is no written agreement, or an incomplete writing, the surety may, at law, enforce its equitable rights against the principal and his indemnitors, in exoneration. Such reimbursement [,] or right of action [, shall] must not exceed the principal sum of the bond or undertaking [and reasonable attorney's fees and] , plus any reasonable expenses that may be verified by receipt in a total amount of not more than the principal sum of the bond or undertaking, incurred in good faith by the surety, its agents, licensees and employees by reason of the principal's breach.
[5. Nothing in this section shall be construed as preventing]
2. This section does not prevent the full and unlimited right of a bail agent to execute undertaking of bail on behalf of a nonresident agent of the surety he represents. The licensed resident bail agent [shall be] is entitled to a minimum countersignature [charge] fee of $5, with a maximum countersignature fee [not to exceed $10 per $1,000 on the face amount of the bond] of $100, plus expenses incurred in accordance with [subsections 3 and 4.] paragraphs (c) and (d) of subsection 1. Such countersignature fees may be charged in addition to the premium of the undertaking.
Sec. 34 NRS 697.310 is hereby amended to read as follows:
697.310Except to the extent permitted by [subsections 3, 4 and 5] paragraphs (c) and (d) of subsection 1 of NRS 697.300 and subsection 2 of NRS 697.300, [no bail] a licensee shall not make any charge for his services in a bail transaction in addition to the premium or the charge for a bail bond at the rates filed in accordance with the provisions of this code.
Sec. 35 NRS 697.320 is hereby amended to read as follows:
697.3201. A bail [bondsman] agent may accept collateral security in connection with a bail transaction [, provided such] if the collateral security is reasonable in relation to the face amount of the bond.
2. [Such collateral security shall] The collateral security must be received by the bail [bondsman] agent in his fiduciary capacity, and [prior to] before any forfeiture of bail [shall] must keep it separate and apart from any other funds or assets of [such] the licensee. Any collateral received [shall] must be returned to the person who deposited it with the bail [bondsman] agent or any assignee other than the bail [bondsman] agent as soon as the obligation, the satisfaction of which was secured by the collateral, is discharged [.] and all fees owed to the bail agent have been paid. If the collateral is deposited to secure the obligation of a bond, it [shall] must be returned [upon] within 30 days after the entry of any order by an authorized official by virtue of which liability under the bond is terminated [.] or upon payment of all fees owed to the bail agent, whichever is later. A certified copy of the minute order from the court wherein the bail or undertaking was ordered exonerated shall be deemed prima facie evidence of exoneration or termination of liability.
3. [When] If a bail [bondsman] agent accepts collateral , he shall give a written receipt for the [same, and this receipt shall give] collateral. The receipt must include in detail a full account of the collateral received.
Sec. 36 NRS 697.330 is hereby amended to read as follows:
697.330If a bail [bondsman] agent or bail solicitor, without good cause, surrenders a defendant to custody [prior to] before the time specified in the undertaking of bail or the bail bond for the appearance of the defendant, or [prior to] before any other occasion where the presence of the defendant in court is lawfully required, the premium [shall be] is returnable in full.
Sec. 37 NRS 697.340 is hereby amended to read as follows:
697.340 1. A bail [bondsman,] agent, general agent or bail solicitor shall not:
(a) Suggest or advise the employment of or name for employment any particular attorney to represent his principal.
(b) Solicit business in or about any place where prisoners are confined or in or about any court.
(c) Pay a fee or rebate or give or promise anything of value to any person in order to secure a settlement, compromise, remission or reduction of the amount of any undertaking or bail bond.
(d) Pay a fee or rebate or give anything of value to an attorney in bail bond matters, except for legal services actually rendered.
(e) Pay a fee or rebate or give or promise anything of value to the principal or anyone in his behalf.
(f) Participate in the capacity of an attorney at a trial or hearing of [one] a person on whose bond he is surety, except for the purposes of surrendering the defendant, making motions to set aside orders of bail forfeitures and motions to exonerate bails and protecting his financial interest in such a bond.
2. The following persons [or classes shall] may not be bail [bondsmen] agents, bail enforcement agents or bail solicitors and shall not , directly or indirectly , receive any benefits from the execution of any bail bond:
(a) Jailers;
(b) Police officers;
(c) Justices of the peace;
(d) Municipal judges;
(e) Sheriffs, deputy sheriffs and constables;
(f) Any person having the power to arrest or having anything to do with the control of federal, state, county or municipal prisoners; and
(g) Trustees or prisoners incarcerated in any jail, prison or any other place used for the incarceration of persons.
3. A bail [bondsman] agent shall not sign [nor] or countersign in blank any bond, [nor shall he] or give the power of attorney to, or otherwise authorize, anyone to countersign his name to bonds unless the person so authorized is a licensed [bondsman] agent directly employed by the [bondsman giving such] agent giving the power of attorney.
4. A bail [bondsman,] agent, bail enforcement agent, bail solicitor or general agent shall not advertise or hold himself out to be a surety insurance company.
Sec. 38 NRS 697.350 is hereby amended to read as follows:
697.350[1. A property bondsman shall justify the sufficiency of his undertaking by attaching to each bail bond only United States currency, a United States postal money order, a cashier's check or other security acceptable to the court as security in the amount of such bond.
2.] A bail agent shall justify his suretyship by attaching a copy of the power of attorney issued to him by the surety insurer to each bond.
Sec. 39 NRS 697.360 is hereby amended to read as follows:
697.360Licensed bail [bondsmen,] agents, bail solicitors and general agents [shall also be] are also subject to the following provisions of this code, to the extent reasonably applicable:
1. Chapter 679A of NRS . [(scope and definitions).]
2. Chapter 679B of NRS . [(commissioner of insurance).]
3. NRS 683A.240 . [(true, fictitious names).]
4. NRS 683A.300 . [(temporary license).]
5. NRS 683A.400 . [(fiduciary funds).]
6. NRS 683A.410 . [(remittance of premiums).]
7. NRS 683A.450 to 683A.480, inclusive . [(grounds, procedure for suspension, revocation, refusal of license).]
8. NRS 686A.010 to 686A.310, inclusive . [(trade practices and frauds).]
Sec. 40 NRS 171.153 is hereby amended to read as follows:
171.1531. Any person arrested has the right to make a reasonable number of completed telephone calls from the police station or other place at
which he is booked immediately after he is booked and, except where physically impossible, no later than 3 hours after his arrest. Such telephone calls may be limited to local calls, except that long distance calls may be made by the arrested person at his own expense.
2. A reasonable number of calls [shall] must include one completed call to a friend or bail [bondsman] agent and one completed call to an attorney.
Sec. 41 NRS 176.18523 is hereby amended to read as follows:
176.18523For the purpose of surrendering a probationer, a surety, at any time before it is finally discharged, and at any place within the state, may , [arrest the probationer or,] by a written authority endorsed on a certified copy of the undertaking, [may empower a person of suitable age and discretion to do so.] cause the probationer to be arrested by a bail agent or bail enforcement agent who is licensed pursuant to chapter 697 of NRS.
Sec. 42 NRS 178.526 is hereby amended to read as follows:
178.526For the purpose of surrendering [the defendant, the sureties,] a defendant, a surety, at any time before [they are] he is finally discharged, and at any place within the state, may , [themselves arrest him, or] by a written authority [,] endorsed on a certified copy of the undertaking, [may empower any person of suitable age and discretion to do so.] cause the defendant to be arrested by a bail agent or bail enforcement agent who is licensed pursuant to chapter 697 of NRS.
Sec. 43 NRS 697.010, 697.050, 697.080, 697.110 and 697.160 are hereby repealed.
Sec. 44 Notwithstanding the amendatory provisions of section 18 of this act, a person performing any of the functions, duties or powers prescribed for a bail enforcement agent is not required to be licensed pursuant to the provisions of this act before January 1, 1998.
Sec. 45 The commissioner of insurance shall, not later than January 1, 1998, release the bond of a property bondsman filed pursuant to NRS 697.190.
Sec. 46 The provisions of subsection 1 of NRS 354.599 do not apply to any additional expenses of a local government that are related to the provisions of this act.
Sec. 47 The amendatory provisions of this act do not apply to offenses that are committed before October 1, 1997.
Sec. Sections 3, 5 and 21 of this act become effective at 12:01 a.m. on October 1, 1997.
LEADLINES OF REPEALED SECTIONS
697.010 Short title.
697.050"Bail bondsman" defined.
697.080"Property bondsman" defined.
697.110Concurrent licensing as bail agent and property bondsman prohibited.
697.160Property bondsman: Qualifications.