AB 1406, as introduced, Gordon. Insurance: bail licenses.
(1) Existing law provides for the issuance of bail licenses under the jurisdiction of the Insurance Commissioner. Existing law requires persons soliciting or negotiating the execution or delivery of an undertaking of bail on behalf of a surety insurer to be licensed as a bail agent.
This bill would require each surety insurer or bail permittee to pay a fee, not to exceed $30 per bail bond transaction. These fees would go to the Bail Investigation and Prosecution Fund, created as a special account in the Insurance Fund. This bill would provide that moneys in the Bail Investigation and Prosecution Fund be distributed by the commissioner, upon appropriation, to fund the reasonable costs incurred in regulating entities involved in the undertaking of bail, as specified. This bill would provide that if the total amount in the Bail Investigation and Prosecution Fund ever exceeds $8,000,000, then the commissioner shall reduce the amount of the assessment, as specified. This bill would authorize the commissioner to develop guidelines to implement or clarify these provisions. This bill would require the commissioner to provide an annual report on the department’s Internet Web site including various information, as specified.
(2) Existing constitutional provisions require that a statute that limits the public’s right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 1824 is added to the Insurance Code, to
2read:
(a) The Bail Investigation and Prosecution Fund is
4hereby created as a special account within the Insurance Fund.
5Each surety insurer or bail permittee admitted and authorized to
6execute an undertaking of bail in this state through a licensed bail
7licensee shall pay a fee per bail bond transaction, not to exceed
8thirty dollars ($30), for each bail bond posted in this state. The
9revenue from this fee shall be deposited into the Bail Investigation
10and Prosecution Fund.
11(b) Moneys in the Bail Investigation and Prosecution Fund shall
12be distributed, upon appropriation by the Legislature, to fund the
13reasonable costs incurred in regulating entities involved in the
14undertaking of bail as described in this section. Moneys in the Bail
15Investigation and
Prosecution Fund shall not be used for any other
16purpose. Moneys in the Bail Investigation and Prosecution Fund
17shall be distributed by the commissioner as follows:
18(1) Seventy percent of these funds shall be distributed within
19the department for consumer enforcement and protection purposes
20related to bail transactions, including, but not limited to:
21(A) Investigating and prosecuting unlawful conduct by bail
22licensees, or a person or entity purporting to solicit or negotiate in
23respect to execution or delivery of an undertaking of bail or bail
24bond, or execute or deliver an undertaking of bail or bail bond, or
25matters subsequent to the execution of an undertaking of bail or
26bail bond contract and arising out of it.
27(B) Responding to consumer inquiries and complaints related
28to bail transactions.
P3 1(C) Regulating and overseeing bail bond products, solicitation,
2and advertising directed toward consumers.
3(D) The cost of any fiscal audit performed pursuant to this
4section.
5(2) Thirty percent of the funds shall be distributed to county
6district attorneys and city attorneys, for investigating and
7prosecuting surety insurer and bail abuse cases involving licensees,
8or any person or entity engaged in the solicitation or negotiation
9in respect to execution or delivery of an undertaking of bail or bail
10bond, or execution or delivery of an undertaking of bail or bail
11bond.
12(A) The commissioner shall distribute funds to county district
13attorneys and city attorneys who show a likely positive outcome
14that will benefit consumers in the local jurisdiction based on
15
specific criteria promulgated by the commissioner. Each local
16district attorney and city attorney desiring a portion of those funds
17shall submit to the commissioner an application, including, at a
18minimum, all of the following:
19(i) The proposed use of the moneys and the anticipated outcome.
20(ii) A list of all prior relevant cases or projects and a copy of
21the final accounting for each. If cases or projects are ongoing, the
22most recent accounting shall be provided.
23(iii) A detailed budget, including salaries and general expenses,
24specifically identifying the cost of purchase or rental of equipment
25or supplies.
26(B) Each district attorney and city attorney that receives funds
27pursuant to this section shall submit a final detailed accounting at
28the
conclusion or closure of each case or project. For cases or
29projects that continue longer than six months, interim accountings
30shall be submitted every six months, or as otherwise directed by
31the commissioner.
32(C) Each district attorney and city attorney that receives funds
33pursuant to this section shall submit a final report to the
34commissioner, which may be made public, as to the success of the
35cases or projects conducted. The report shall provide information
36and statistics on the number of active investigations, arrests,
37indictments, and convictions. The applications for moneys, the
38distribution of moneys, and the annual reports shall be public
39documents.
P4 1(c) Notwithstanding any other provision of this section,
2information submitted to the commissioner pursuant to this section
3concerning criminal investigations, whether active or inactive,
4shall be confidential.
5(d) The commissioner may conduct a fiscal audit of the programs
6administered under this subdivision. If conducted, this fiscal audit
7shall be conducted by an internal audit unit of the department.
8(e) If the commissioner determines that a district attorney or
9city attorney is unable or unwilling to investigate or prosecute a
10relevant bail abuse case, the commissioner may discontinue
11distribution of funds allocated for that matter and may redistribute
12those funds to other eligible district attorneys or city attorneys.
13(f) If, as of June 30 of any calendar year, the total amount in
14the Bail Investigation and Prosecution Fund exceeds eight million
15dollars ($8,000,000), the commissioner shall reduce the amount
16of the assessment accordingly for the following year to eliminate
17that excess. A surety insurer, upon receipt of an
invoice, shall
18transmit payment to the department for deposit in the Bail
19Investigation and Prosecution Fund. Any balance remaining in the
20Bail Investigation and Prosecution Fund at the end of the fiscal
21year shall be retained in the account, to be available in the next
22fiscal year.
23(g) The commissioner may develop guidelines for implementing
24or clarifying these provisions, including guidelines for the
25allocation, distribution, and potential return of unused funds. The
26commissioner may, from time to time, issue regulations for
27implementing or clarifying these provisions. Regulations adopted
28pursuant to this section shall not be subject to the requirements of
29the Administrative Procedure Act (Chapter 3.5 (commencing with
30Section 11340) of Part 1 of Division 3 of Title 2 of the Government
31Code).
32(h) The commissioner shall provide a consolidated report
33annually on the department’s
Internet Web site, which shall
34include, but is not limited to, the following information:
35(1) The number of consumer complaints regarding to bail bond
36transactions.
37(2) The number of investigations initiated relating to bail bond
38transactions.
39(3) The number of investigations related to bail and bail bond
40transactions referred to and reported by prosecuting agencies.
P5 1(4) The number of administrative or regulatory cases related to
2bail and bail bond transactions referred to the department’s legal
3division.
4(5) The number of administrative or regulatory enforcement
5actions taken in cases related to bail and bail bond transactions.
6(i) A violation of this section is not a crime pursuant to Section
71814.
The Legislature finds and declares that this act imposes
9limits on the public’s right of access to meetings of public bodies
10or the writings of public officials and agencies within the meaning
11of Section 3 of Article I of the California Constitution. Pursuant
12to that constitutional provision, the Legislature makes the following
13finding to demonstrate the interest protected by this limitation and
14the need for protecting that interest:
15In order to ensure that criminal investigations are not frustrated
16or hindered, it is necessary to limit the public’s right of access to
17information submitted to the Insurance Commissioner pursuant to
18this act concerning criminal investigations.
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