BILL NUMBER: AB 404 CHAPTERED 09/29/05 CHAPTER 389 FILED WITH SECRETARY OF STATE SEPTEMBER 29, 2005 APPROVED BY GOVERNOR SEPTEMBER 29, 2005 PASSED THE ASSEMBLY AUGUST 29, 2005 PASSED THE SENATE AUGUST 22, 2005 AMENDED IN SENATE JULY 11, 2005 AMENDED IN SENATE JUNE 20, 2005 AMENDED IN SENATE MAY 19, 2005 AMENDED IN ASSEMBLY MARCH 29, 2005 INTRODUCED BY Assembly Member Leno FEBRUARY 15, 2005 An act to amend Section 1810.7 of the Insurance Code, relating to bail licenses. LEGISLATIVE COUNSEL'S DIGEST AB 404, Leno Bail licenses: continuing education. Existing law provides the licensing and education requirements for obtaining and maintaining a bail license. Existing law directs that professional organizations must provide education for licensure under this provision, and that education providers must consult with the California District Attorneys Association, California State Sheriffs' Association, the California Advisory Board of Surety Agents, and the California Bail Agents Association prior to submitting course outlines for approval. Further, existing law specifies the punishment for noncompliance with these provisions. This bill would delete the above references to the California Advisory Board of Surety Agents and the California Bail Agents Association and add the County Counsels Association of California. The bill would require education providers to be approved by the Insurance Commissioner every 2 years. This bill would also specify that completion of bail agent continuing education requirements through Internet or correspondence instruction is permitted, and would provide that successful completion of these requirements through instruction of this type requires obtaining a passing grade of at least 70% on a written final examination, as specified. The bill would prohibit an Internet or correspondence continuing education course from being offered prior to April 1, 2006. Existing law requires the Insurance Commissioner to require the payment of various fees by prelicensing or continuing education providers in connection with specified courses. This bill would allow the commissioner to adopt regulations that include a schedule establishing fees to be paid by an applicant seeking approval to act as a provider and to deliver courses under these provisions. It would require that those fees be no greater than fees paid by applicants providing similar courses to other insurance agents licensed by the Department of Insurance, as specified. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 1810.7 of the Insurance Code is amended to read: 1810.7. (a) In order to be eligible to take the examination required to be licensed under this chapter, the applicant shall have completed not less than 12 hours of classroom education in subjects pertinent to the duties and responsibilities of a bail licensee, including, but not limited to, all laws and regulations related thereto, rights of the accused, ethics, and apprehension of bail fugitives. Additionally, a licensee shall complete annually not less than six hours of continuing education in these subjects prior to renewal of his or her license. (b) The commissioner shall approve or disapprove an applicant to provide education for licensure as required by this section within 90 days of receipt of the applicant's full and complete application. However, this 90-day period shall be tolled during the pendency of any investigation of the applicant by the commissioner for an alleged violation that would, if proven, result in the suspension, revocation, or denial of the provider's approval to provide continuing education to bail agents as prescribed in Section 1813. Failure to disapprove an applicant within this period shall result in the automatic approval of the application. Approval shall be valid for two years. The commissioner may, at any time, disapprove any provider who is not qualified or whose course outlines are not approved, who is not of good business reputation, or who is lacking in integrity, honesty, or competency. A provider shall not provide education for licensure following the expiration of the two-year approval period unless the commissioner has renewed the provider's approval. The commissioner shall, at the time of renewal, approve or disapprove the course outlines and schedule of classes to be provided. (c) Providers responsible for providing education for licensure under this chapter shall consult with the California State Sheriffs' Association, the California District Attorneys Association, and the County Counsels Association of California prior to submission of the course outlines for approval by the commissioner, and these entities may respond within 30 days of receipt of a request for consultation from a provider. Providers shall maintain records of their requests for consultation and any responses from these entities, and make these records available to the department for review as requested. The bail license fee shall be increased, the amount of which shall be determined by the commissioner, which shall be deposited in the Insurance Fund for the purposes of recovering the administrative costs for meeting the conditions and purposes of this section. Providers of education or continuing education shall offer courses to all applicants at the same course fees. (d) Any person who falsely represents to the commissioner that compliance with this section has been met shall be subject, after notice and hearing, to the penalties and fines set out in Section 1814. (e) A licensee shall not be required to comply with the continuing education requirements of this section if the licensee submits proof satisfactory to the commissioner that he or she has been a licensee in good standing for 30 continuous years in this state and is 70 years of age or older. (f) The commissioner may make reasonable rules and regulations necessary, advisable, and convenient for the administration and enforcement of this chapter. The rules and regulations may include a schedule establishing fees to be paid by an applicant seeking approval to act as a provider and to deliver courses under this section. Those fees shall be in an amount no greater than fees paid by applicants providing similar courses to other insurance agents licensed by the department, as specified in Section 1751.1. (g) Nothing in this chapter shall preclude completion of the bail agent continuing education requirements of this section through a course of instruction offered via the Internet or correspondence. However, this subdivision shall not be construed to allow completion of the prelicensing education requirements of this section through such a course of instruction. (h) Successful completion of the continuing education requirements by means of an Internet or correspondence course shall require obtaining a passing grade of at least 70 percent on a written final examination. The final examination shall be open book and shall be graded by the approved provider. The provider shall issue certificates of completion only to those students who have passed the final examination. (i) No Internet or correspondence continuing education course shall be provided pursuant to this section prior to April 1, 2006. However, this subdivision shall not prohibit an approved provider from advertising or promoting a course prior to that date.