House Bill 5824 (File No. 576) introduces new requirements for professional bail bondsmen and surety bail bond agents, including the establishment and maintenance of a trustee account to demonstrate financial responsibility. The bill, effective October 1, 2023, mandates annual audits of these accounts by the Commissioner of Emergency Services and Public Protection for bondsmen and the Insurance Department for surety bail bond agents. It also outlines penalties for non-compliance, such as fines up to $3,500 and the permanent loss of the right to operate in the industry. Additionally, the bill specifies acceptable forms of collateral and requires the return of such collateral within 21 days after a bail bond is terminated.

The fiscal impact of the bill includes annual costs for conducting audits, estimated at $50,000 for the Department of Emergency Services and Public Protection and $457,673 for the Insurance Department. The bill may also affect costs for the Judicial Department and the Department of Correction, and generate revenue from fines. The bill revises penalties, reducing the maximum fine from $5,000 to $3,500 and eliminating the possibility of imprisonment. The insurance commissioner is required to suspend or revoke licenses for violations, with the option to impose fines. The Judiciary Committee has given the bill a Joint Favorable Substitute with a unanimous vote.

Statutes affected:
Committee Bill: 29-146, 29-152, 29-152a, 29-152c, 54-64a
JUD Joint Favorable Substitute: 29-146, 29-152, 29-152a, 29-152c
File No. 576: 29-146, 29-152, 29-152a, 29-152c