S2349

An Act concerning bail bond agents and agencies and supplementing various sections of statutory law.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. All of the functions, powers, and duties pertaining to the licensing and oversight of bail agents or agencies as defined in section 1 of P.L.2003, c.202 (C.17:31-10), except as otherwise provided, are transferred to the Department of Law and Public Safety and shall be exercised by the Bail Agent Enforcement Unit established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill). All records, equipment, and other personal property, appropriations, and any unexpended balances of funds appropriated or otherwise available to the Department of Banking and Insurance pertaining to the licensure and oversight of bail agents and agencies subject to the provisions of this act shall be transferred to the Bail Agent Enforcement Unit in the Department of Law and Public Safety pursuant to the “State Agency Transfer Act,” P.L.1971, c.375 (C.52:14D-1 et seq.).

2. a. The Attorney General shall establish and maintain a Bail Agent Enforcement Unit within the Department of Law and Public Safety which shall be responsible for the licensing and oversight of bail agents or agencies as defined in section 1 of P.L.2003, c.202 (C.17:31-10).

b. The Bail Agent Enforcement Unit shall be empowered to ensure that the methods of operation of bail agents or agencies are conducted in accordance with current law and shall be authorized to investigate whether a bail agent or agency has engaged in, or is engaging in, any criminal act or offense under Title 2C of the New Jersey Statutes or Title 17 of the Revised Statutes. In carrying out its functions and duties under this act, the Bail Agent Enforcement Unit shall be authorized to:

(1) inspect any premises of any bail agency operating in this State and examine any record, book, computer, electronic database, recording device, document, account, paper or other tangible thing, without prior notification, in connection with any investigation;

(2) seize and impound any record, book, computer, electronic database, recording device, document, account, paper or other tangible thing in connection with any investigation;

(3) work in coordination with the Superintendent of State Police to facilitate the arrest of any bail agent who engages in illegal activity; and

(4) work in coordination with the Commissioner of Banking and Insurance to ensure that each bail agent or agency is working in accordance with all laws relative to the negotiation, solicitation or sale of bail bonds in this State.

c. The Bail Agent Enforcement Unit established under this section shall be supervised by a chief of staff appointed by the Attorney General and shall employ field investigators and administrative staff to assist in the enforcement of subsection b. of this section.

3. a. Following the effective date of the act, the Department of Banking and Insurance shall cease issuing licenses to bail bond agents and all licenses and enforcement of licensing requirements shall be conducted by the Bail Agent Enforcement Unit in accordance with section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).

b. As a condition of licensure pursuant to the provisions of P.L.2001, c.210 (C.17:22A-26 et seq.), a bail agent shall possess and display an identification card containing the bail agent’s photograph, license number, and any other information deemed appropriate by the Attorney General.

c. Notwithstanding the provisions of subsection a. of section 19 of P.L.2001, c.210 (C.17:22A-44) to the contrary, on or after January 1, 2015, the fee for licensing or registering as a bail bond agent or agency in the State shall be assessed annually, at a rate of $300 for an initial license or registration and $250 for a license or registration renewal. The fees collected pursuant to this subsection shall be remitted to the State Treasurer and shall fund the operation of the Bail Enforcement Unit established under section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).

d. The Bail Agent Enforcement Unit shall revoke the license of any bail agent or agency if the Attorney General finds, after a hearing, that the agent, agency, or any licensed or unlicensed representative thereof, has:

(1) facilitated telephone communication via three-way telephone call between any person incarcerated in a State correctional facility or a county jail and a third party; or

(2) solicited business from any person incarcerated in a State correctional facility or a county jail, either directly or by means of any third party.

For the purposes of this subsection, "bail agent or agency” shall have the same meaning as set forth in section 1 of P.L.2003, c.202 (C.17:31-10).

4. a. As used in this section, “bail agent or agency” means any person or entity that solicits, negotiates, or sells bail bonds, or is affiliated in any manner with the execution of bail.

b. In addition to any penalties imposed pursuant to section 15 of P.L.2001, c.210 (C.17:22A-40), a person commits a crime of the fourth degree if he operates as a bail agent or agency without a license in violation of section 4 of P.L.2001, c.210 (C.17:22A-29).

5. a. Except as provided in subsection b. of this section, a bail agent, bail agency, or surety company shall not execute a bail bond for the release from custody or incarceration of a defendant charged with a crime of the first through fourth degree without collecting a minimum of 10 percent of the face amount of the bail bond as the premium for executing the bail bond. The premium shall be paid prior to or at the time of filing the bail bond. At the time the bail bond is posted, the bail agent or agency that executes the bail bond shall attest in writing to the appropriate court, or other agency authorized to accept bail bonds, that the 10 percent fee required by this subsection has been collected.

b. Notwithstanding the provisions of subsection a. of this section, a bail agent, bail agency, or surety company may charge a premium in an amount less than 10 percent of the face value of the bail bond if the court finds that compelling circumstances warrant a reduced premium. The amount of the reduced premium under this subsection shall be disclosed to the court.

c. If the court finds that a defendant does not have the ability to pay the premium for executing a bail bond pursuant to subsections a. or b. of this section, the court may authorize the payment of the premium to the bail agent, bail agency, or surety company in installments. The bail of a defendant who fails to make the required installment payments shall be forfeited. The terms and conditions of the installment payment plan shall be disclosed to the court and the appropriate law enforcement authorities. Nothing in this subsection shall preclude the court from ordering a reduction in bail pursuant to court rules.

d. If the Attorney General determines, after notice and an opportunity for a hearing, that a bail agent or bail agency is in violation of this section, the authority of the agent or agency to negotiate, solicit or sell bail bonds, or be affiliated in any manner with the execution of bail bonds, shall be suspended for 90 days for a first violation, 180 days for a second violation, and one year for a third violation. For any subsequent violation, the insurance producer license of the bail agent or agency shall be permanently revoked.

e. Nothing in this act shall interfere with the presumption in favor of the court designating the posting of full United States currency cash bail for defendants charged with a crime with bail restrictions pursuant to subsection c. of section 1 of P.L.1994, c.144 (C.2A:162-12).

6. a. Every county correctional facility shall adopt and implement a written policy governing access to, and interaction with, inmates by bail agents, agencies and their representatives, which complies with the uniform guidelines promulgated pursuant to subsection b. of this section.

b. The Attorney General, in consultation with the Department of Corrections, the New Jersey Jail Wardens Association, and any other organization deemed appropriate by the Attorney General, shall promulgate uniform guidelines and procedures governing access to, and interaction with, inmates of county correctional facilities by bail agents, agencies, and their representatives. The guidelines shall be promulgated within 180 days of the effective date of this act.

The guidelines shall include but not be limited to:

(1) a prohibition against solicitation of inmates for bail purposes;

(2) a prohibition against facilitating three-way telephone calls with inmates;

(3) a series of reasonable sanctions, including a schedule of access suspensions for violators and access revocation for repeat violators; and

(4) a requirement that each county correctional facility designate specific personnel responsible for monitoring and enforcing compliance with the guidelines.

c. For the purposes of this section:

“Bail agent or agency” shall have the same meaning as set forth in section 1 of P.L.2003, c.202 (C.17:31-10).

“County correctional facility” means any prison or other secure facility managed and operated by any county of this State in which adult offenders are incarcerated.

7. a. A person, whether or not licensed as a bail agent, commits a crime of the fourth degree, if he:

(1) facilitates telephone communication via three-way telephone call between any person incarcerated in a State correctional facility or a county jail and a third party; or

(2) solicits business from any person incarcerated in a State correctional facility or a county jail, either directly or by means of any third party, on behalf of a bail agent or agency.

b. As used in this section, “bail agent or agency” shall have the same meaning as set forth in section 1 of P.L.2003, c.202 (C.17:31-10).

c. Nothing in this section shall preclude the imposition of a civil penalty pursuant to section 15 of P.L.2001, c.210 (C.17:22A-40).

8. This act shall take effect on the first day of the tenth month next following the date of enactment, but the Attorney General and the Commissioner of Banking and Insurance may take such anticipatory administrative action in advance thereof as shall be necessary for the implementation of this act.

STATEMENT

This bill implements recommendations of the State of New Jersey Commission of Investigation (SCI) in its May 2014 report entitled, “Inside Out: Questionable and Abusive Practices in New Jersey’s Bail-Bond Industry.”

The bill establishes a Bail Agent Enforcement Unit within the Department of Law and Public Safety. The bill transfers the all of the functions, powers, and duties pertaining to the licensing and oversight of bail agents or agencies from the Department of Banking and Insurance (DOBI) to the Department of Law and Public Safety. The transfer would be subject to the provisions of the “State Agency Transfer Act,” P.L.1971, c. 375 (C.52:14D-1 et seq.).

Under the provisions of the bill, the Bail Agent Enforcement Unit is responsible for the licensing and oversight of bail agents or agencies. The Bail Agent Enforcement Unit is to be supervised by a chief of staff appointed by the Attorney General and is to employ field investigators and administrative staff to carry out the functions of the unit. The bill authorizes the unit to ensure bail agents or agencies operate in accordance with current law. The unit also is required to investigate whether a bail agent or agency has committed criminal acts or offenses. In carrying out its functions and duties, the unit is authorized to inspect the premises of any bail agency and seize and impound certain records in connection with an investigation. The bill further authorizes the unit to work in coordination with the Superintendent of State Police to facilitate the arrest of any bail agent who engages in illegal activity. The unit is further directed to work in coordination with the Commissioner of DOBI to ensure that each bail agent and agency is complying with all laws relative to the negotiation, solicitation or sale of bail bonds in this State.

The bill requires the Bail Agent Enforcement Unit to issue licenses to bail agents which are to be renewed on an annual basis. The licensing and registration fee for bail agents and agencies is set at $300 for an initial license or registration and $250 for a renewal, and is to be assessed on any license or registration issued or renewed on or after January 1, 2015.

The bill also makes it a crime to operate as a bail agent without a license. Under current law, a bail agent is prohibited from selling, soliciting, or negotiating a bail bond unless he or she is licensed to do so. In addition, current law provides for civil penalties that may be imposed against a person who performs these acts without the required license. Under the provisions of this bill, a person commits a crime of the fourth degree if he or she operates as a bail agent or agency without a license. This penalty is to be imposed in addition to any civil penalties imposed under current law. Crimes of the fourth degree are punishable by up to 18 months imprisonment, a fine of up to $10,000, or both.

This bill further requires, as a condition of licensure, that a bail agent possess and display an identification card displaying the bail agent’s photograph, license number, and any other information deemed appropriate by the Attorney General.

Bail agents, bail agencies, and surety companies are required under this bill to charge and collect a premium of at least 10 percent of the face value of a bail bond from a defendant who is charged with a criminal offense in this State. The bill makes an exception to the required 10 percent bail bond premium if a judge finds that compelling circumstances warrant a reduced premium, and the amount of the reduced premium must be disclosed to the court.

The bill authorizes installment payment plans for defendants who do not have the ability to pay the premium for executing a bail bond. The bail of a defendant who fails to make the required installment payments will be forfeited. The bill requires the terms and conditions of an installment payment plan to be disclosed to the court and to appropriate law enforcement authorities.

The Attorney General may suspend or revoke the authority of any bail agent or agency to solicit or sell bail bonds in this State if the agent or agency violates the 10 percent requirement. A period of license suspension of 90 days will be imposed for a first violation, 180 days for a second violation, and one year for a third violation. For a fourth or subsequent violation, the insurance producer license of the bail agent or agency is to be permanently revoked.

The provisions of this bill also require county correctional facilities to adopt and implement a written policy governing access to, and interaction with, inmates by bail agents, agencies and their representatives. Any policy adopted pursuant to the bill’s provisions is to be in compliance with uniform guidelines established by the Attorney General. The guidelines are to include, but not be limited to:

(1) a prohibition against solicitation of inmates for bail purposes;

(2) a prohibition against facilitating three-way telephone calls with inmates;

(3) a series of reasonable sanctions, including a schedule of access suspensions for violators and access revocation for repeat violators; and

(4) a requirement that each county correctional facility designate specific personnel responsible for monitoring and enforcing compliance with the guidelines.

Finally, the bill provides that it is a crime of the fourth degree to facilitate three-way telephone calls between anyone incarcerated in State prison or county jail and a third party, or to solicit bail bond business from anyone incarcerated in State prison or county jail. The bill further provides this facilitation or solicitation will also result in the revocation of the license of the bail agent or agency.