Committee Hearing on SB153

Senate Bill 153 will be heard by the Senate Small Business, Insurance and Industrial Relations Committee next Tuesday, February 27th, at noon. This is the DIFP bill which has 7 pages of bail bond language included in the bill. Here’s a link to the whole bill as well as link to just the bail section.

To refresh your memory, here is what is presently included in the bill:

1) Doubles Your CD-Increases the general agent's assigned CD from $10,000 to $20,000 and allows by regulation, the Department to increase the CD to $100,000.
2) Dollar for Dollar-Includes a provision which by-passes filing with the local courts and establishes a system to report to the Office of State Courts Administrator. The language states that each general agent (but not insurance companies) file an affidavit saying that his/her total net assets exceed the aggregate (total) amount of bonds written. This provision creates a “dollar for dollar” system and assumes that 100% of your bonds will result in judgment. Insurance companies are exempt from this provision and only have to prove “solvency” to the local court. Additionally, a fee is associated with this process and that fee has not been disclosed in the bill.
3) Former General Agents Given Power to Revoke Your License-If you leave a company, your former general agent can revoke your authority for any outstanding premium. The bill does not distinguish whether this is collected premium owed the company or uncollected, (or worse, uncollectible) credit that you have extended to clients. This provision was borrowed from the Florida statutes, with two important differences. First, the Florida statute includes a due-process provision which stays the cancellation of authority until the Department investigates the allegations of the former general agent. Without this provision, a former general agent can deprive an agent of the right to earn a living without due process of law.
4) EVERY Forfeiture Must Be Noticed by Department-Upon notice by the court, the Department must notify general agents of a bail bond forfeiture within 48 hours. Courts already report unsatisfied judgments. Since most forfeitures are set aside and do not result in judgment, it seems quite onerous for the Department and the courts to notify for every forfeiture in the state.
5) Felon Language-Allows the 15 year felony clause, but adds that a license MAY be refused, revoked, etc. if an applicant has been convicted of: any dangerous felony defined by section 556.061, RSMo, any felony crime of assault, any felony crime that results in the serious physical injury or death of another person, any felony crime against the administration of justice, or any felony of which deceit or fraud is an element of the offense. Felonies not included in this language would be manufacturing of meth, possession of child pornography, and distribution of drugs.

Here are the committee members who will hear the bill:

John Loudon, 7th, Chair , Part of St. Louis County
Luann Ridgeway, 17th, Vice-Chair, Clay County
Dan Clemens, 20th, Counties of Christian, Douglas, Webster and part of Greene
Scott Rupp, 2nd, Lincoln County and part of St. Charles County
Delbert Scott, 28th, Barton, Benton, Cedar, Dallas, Henry, Hickory, Pettis, Polk, St. Clair
Carl Vogel, 6th, Callaway, Cole, Miller, Moniteau and Morgan
Victor Callahan, 11th, Part of Jackson
Rita Days, 14th, Part of St. Louis County
Tim Green, 13th, Part of St. Louis County

How you can be heard on this bill:

Contact your senator by letter, personal visit, or phone call, especially if your senator is on this committee. Need help locating your senator? Go to find my Senator. You can attend the hearing next Tuesday and tell the committee how you feel about this bill. If you think this language would be detrimental to your business, tell your Senator to strip this language from the bill.