BILL NUMBER: SB 1265	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Vargas

                        FEBRUARY 23, 2012

   An act to amend Section 1810 of the Insurance Code, relating to
bail agent licenses.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1265, as introduced, Vargas. Bail agent licenses:
qualifications.
   Existing law requires a license from the Insurance Commissioner
for advertising or holding oneself out as engaging in the business of
executing, delivering, or furnishing bail bonds or undertakings of
bail whether or not for consideration. A license may be held by a
corporation if certain requirements are met, including, but not
limited to, that 100% of the shares of the corporation are held by
licensed bail agents, and all shareholders, officers, and directors
of the corporation are licensed bail agents. A violation of any of
these provisions is a crime.
   This bill would authorize a limited liability company (LLC) to be
a licensee subject to the same requirements as corporations. The bill
would also exempt a corporation or an LLC from the requirements that
100% of the shares of the corporation or membership interest in the
LLC be held by licensed bail agents, and all shareholders, officers,
and directors of the corporation or members of the LLC be licensed
bail agents, if the corporation or LLC is an admitted surety insurer
or a subsidiary of an admitted surety insurer. Because a violation of
the bill's provisions by an LLC would be a crime, the bill would
impose a state-mandated local program.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 1810 of the Insurance Code is amended to read:
   1810.  (a) Natural persons  can   may 
be licensed under this chapter.
   (b) A license may be held by a corporation  or a limited
liability company (LLC) , in which case all of the following
requirements shall be met:
   (1) The application shall set forth the names of all officers and
employees of the licensee who will be authorized to exercise the
powers of the licensee under this chapter. Each of those persons
shall be required to meet the requirements for licensure under this
chapter, and disciplinary action may be taken against any of those
persons, and the licensee, if any of those persons does any act that
would be grounds for disciplinary action against a licensee.
   (2) The corporation  or LLC  may solicit or negotiate the
execution or delivery of bail on behalf of surety insurers only
through natural persons who hold individual licenses as bail agents.
   (3) One hundred percent of the shares of the corporation  or
membership interest in the LLC  shall be held by licensed bail
agents  ,   unless the corpo   ration or LLC is
an admitted surety insurer or is a subsidiary of an admitted surety
insurer  .
   (4) All shareholders, officers, and directors of the corporation
 or members of the LLC  shall be licensed bail agents, and
shall be disclosed to the department  , unless the corporation or
LLC is an admitted surety insurer or is a subsidiary of an admitted
surety insurer  .
   (5) Any sale or transfer of stock or other interest in the
corporation  or sale or transfer of any membership or other
interest in the LLC  shall require the prior approval of the
department. The department shall approve or disapprove a request for
approval within 60 days of receiving the completed request.
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.