First Regular Session Sixty-eighth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 11-0391.01 Kate Meyer HOUSE BILL 11-1135 HOUSE SPONSORSHIP Casso, SENATE SPONSORSHIP (None), House Committees Senate Committees Judiciary A BILL FOR AN ACT Concerning the transfer of the regulation of bail bonding agents from the division of insurance to a newly created regulatory board. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) Currently, bail bonding agents (agents) are regulated by the division of insurance under the department of regulatory agencies (DORA). Agents are required to be licensed either as insurance producers or as cash bonding agents, a grandfathered agent licensure category. The bill relocates regulation of bail bonding agents from the division of insurance to a newly created "state bail bonding agent board" (board) under the division of registrations within DORA. The board must be appointed by October 1, 2011, and the transfer of bail bond agent regulatory functions is effective when the board appointments are complete. The board is granted rule-making authority to administer and enforce the laws relating to regulation of bail bond agents. The bill increases from 8 hours to 480 hours the minimum amount of prelicensure education and from 16 hours to 480 hours the minimum amount of prelicensure training that a person must complete to qualify for initial licensure as an agent. The education must be provided by a board-approved recognized state bail bonding association, and the training must be overseen by a current licensee authorized by the board. The bill restores and bolsters continuing education requirements for licensees. The bill also requires persons who provide bail recovery services for a licensee to complete at least 100 hours of fugitive apprehension training. Currently, an advisory committee exists to render advisory opinions, ensure that agents properly report and pay premium taxes, and review rules proposed by the commissioner of insurance. Because the composition of this advisory committee substantially duplicates the composition of the new board, the bill repeals the advisory committee and its related sunset review. Under current law, an agent may charge the greater of 15% of the bail or $50 as the agent's premium, commission, or fee. The bill removes the alternative statutory cap of $50, and further states that the minimum amount that an agent may charge is 10% of the bail. The bill mandates that agents collect a $15 fee per professional surety bond from defendants or third-party indemnitors and deliver that sum to the law enforcement entity that processes the defendant's bail. Of those moneys, the law enforcement entity is directed to transmit $10 to the local school district and retain the remaining $5 to offset the costs of collecting and administering the charge. All premium taxes on fees charged by licensees will still be collected by the division of insurance, but, instead of crediting those particular moneys to the general fund, the state treasurer is directed to transmit those moneys to the public school fund. Provisions relating to the procedure for a bail insurance company to appoint licensees are relocated. Further, bail insurance companies, which currently report terminations of agents to the division of insurance, will instead be required to report such terminations to the board. The bill makes conforming changes required under the new regulatory scheme and nonsubstantive changes to clarify existing provisions relating to agents. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. Article 7 of title 12, Colorado Revised Statutes, is amended to read: 12-7-101. Definitions. As used in this article, unless the context otherwise requires: (1) "Applicant" means a person applying for licensure or renewal of a license as a bail bonding agent or professional cash bail bonding agent pursuant to this article. (1) (2) (a) "Bail bonding agent" or "bonding agent" means any a person who furnishes bail for compensation in any court or courts in this state and who is appointed by an insurer by power of attorney to execute or countersign bail bonds, or who executes or countersigns bail bonds, in connection with judicial proceedings. and (b) "Bail bonding agent" or "bonding agent" does not include a person who: (I) Is other than a full-time salaried officer or employee of an insurer; or a person who (II) Pledges United States currency, a United States postal money order, a cashier's check, or other property as security for a bail bond in connection with a judicial proceeding, whether for compensation or otherwise. (1.3) (3) "Bail insurance company" means an insurer, as defined in section 10-1-102, (13), C.R.S., engaged in the business of writing bail appearance bonds through bonding agents, which company is subject to regulation by the division of insurance. in the department of regulatory agencies. (1.5) (4) "Bail recovery" means actions taken by a person other than a peace officer to apprehend an individual or take an individual into custody because of the individual's failure of such individual to comply with bail bond requirements. (2) (Deleted by amendment, L. 96, p. 1177,  1, effective June 1, 1996.) (5) "Board" means the state bail bonding agent board created in section 12-7-101.5. (6) "Cash bonding agent" or "cash bail bonding agent" means a person currently licensed as a bail bonding agent who was also licensed by the division of insurance as of January 1, 1992, to write bail bonds as a cash bonding agent. (2.5) (7) "Compensated surety" means any a person in the business of writing bail appearance bonds, who is subject to regulation by the Colorado division of insurance, including bonding agents and bail insurance companies. Nothing in this subsection (2.5) shall be construed to authorize (7) authorizes bail insurance companies to write bail bonds except through licensed bail bonding agents. (3) (8) "Division of insurance" means the division of insurance in the department of regulatory agencies. (4) (Deleted by amendment, L. 96, p. 1177,  1, effective June 1, 1996.) (5) Repealed. (9) "Division of registrations" means the division of registrations in the department of regulatory agencies. (10) "Licensee" means a person licensed under this article as a bail bonding agent, cash bonding agent, or professional cash bail bonding agent. (6) (11) "On the board" means that the name of a compensated surety has been publicly posted or disseminated by a court as being ineligible to write bail bonds pursuant to section 16-4-112 (5) (e) or (5) (f), C.R.S. (7) (12) (a) "Professional cash bail bonding agent" means a person who is an authorized licensed bail bond bonding agent who furnishes bail for compensation in any court or courts in this state in connection with judicial proceedings. and (b) "Professional cash bail bonding agent" does not include a person who: (I) Is not a full-time salaried officer or employee of an insurer; nor a person who (II) Pledges United States currency, a United States postal money order, a cashier's check, or other property in connection with a judicial proceeding, whether for compensation or otherwise; or (III) Is licensed as a cash bonding agent. (13) "Recognized state bail bond association" means an organization or association that demonstrates to the division of registrations that it represents at least fifty-one percent of the licensed bail bonding agents in the state. 12-7-101.5. State bail bonding agent board - creation - composition - duties - subject to termination. (1) The responsibility for administration and enforcement of this article is vested in the state bail bonding agent board, which is hereby created in the division of registrations. The board has all of the duties, powers, and authority specifically granted by, and necessary to the enforcement of, this article. Except as otherwise provided in this article, the board shall exercise all its duties, powers, and authority in accordance with the "State Administrative Procedure Act", article 4 of title 24, C.R.S. (2) The powers, duties, and functions formerly performed by the division of insurance and the commissioner of insurance with respect to regulation of bail bonding agents are hereby transferred to the board. The board shall exercise its powers and perform its duties and functions specified by this article under the department of regulatory agencies and the executive director of the department as if the powers, duties, and functions were transferred to the department by a type 1 transfer, as such transfer is defined in the "Administrative Organization Act of 1968", article 1 of title 24, C.R.S. The transfer effected by this subsection (2) occurs upon the appointment of all the members to the board under subsections (3) and (4) of this section. (3) (a) The division of registrations shall identify entities that qualify as recognized state bail bond associations by October 1, 2011. (b) Until the positions on the board are filled, the division of insurance retains regulatory authority over bail bonding agents. (4) (a) The board consists of seven members appointed by the governor as follows: (I) One law enforcement officer; (II) One attorney; (III) One judge; (IV) Two bail bonding agents who are appointed by or who contract with bail insurance companies and who are members of a recognized state bail bond association; (V) Two bail bonding agents licensed as either professional cash bail bonding agents or cash bonding agents and who are members of a recognized state bail bond association. (b) A majority of the board constitutes a quorum for the transaction of all business. (5) (a) (I) Except as otherwise provided in this subsection (5), the term of office of members is four years. (II) The initial term of office of members appointed to the board under subparagraphs (I) and (III) and one of the members appointed under subparagraph (V) of paragraph (a) of subsection (4) of this section is one year. The initial term of office of the member appointed under subparagraph (II), and one of the members appointed under subparagraph (IV) of paragraph (a) of subsection (4) of this section, is two years. (b) The governor shall fill any vacancy occurring in the membership of the board by appointment for the unexpired term of the member. (c) The governor may remove any member of the board for misconduct, incompetence, or neglect of duty. (6) (a) The governor shall attempt to appoint members with experience regarding bail bonding in Colorado. (b) No major political party shall be represented on the board by more than one member more than at least one other major political party. (c) Members shall not serve more than two consecutive terms. 12-7-101.7. Rules. In addition to any powers and duties specifically granted under this article, the board is authorized to promulgate, in accordance with article 4 of title 24, C.R.S., any rules necessary to administer and enforce this article. Each rule promulgated by the commissioner of insurance continues to apply notwithstanding the repeal of section 12-7-110.5 until the board promulgates a rule that specifically supercedes such rule. 12-7-102. License required - qualifications - enforcement - rules. (1) (a) No A person can qualify to be shall not act in the capacity of a bail bonding agent or perform any of the functions, duties, or powers of a bail bonding agent unless such the person is a licensed insurance producer appointed to represent an insurance company or is a licensed, professional cash bail agent under article 2 of title 10, C.R.S. under this article. (b) However, any bail A bail bonding agent who was licensed by the division of insurance as of January 1, 1992, to write bail bonds as a cash bonding agent shall be is permitted to continue such licensure upon compliance with the other requirements of this article. (2) No A firm, partnership, association, or corporation as such, shall not be licensed as a bonding agent. No A person engaged as a law enforcement or judicial officer shall not be licensed as a bonding agent. (a) and (b) (Deleted by amendment, L. 96, p. 1178,  2, effective June 1, 1996.) (c) to (e) (Deleted by amendment, L. 95, p. 280,  2, effective July 1, 1995.) (3) The division board is vested with the authority authorized to enforce the provisions of this article The division shall have the authority to make and may conduct investigations and promulgate such rules and regulations as may be necessary for the administration and enforcement of this article. (4) Each licensee's license shall expire biennially on January 1 unless revoked or suspended prior thereto by the division or upon notice served upon the commissioner by the insurer or the employer or user of any license that such insurer, employer, or user has cancelled the licensee's authority to act for or in behalf of such insurer, employer, or user. (5) (4) The division of registrations shall prepare and deliver to each licensee a pocket card showing the name, address, and classification of such the licensee. Such The pocket card shall clearly state that such the person is a licensed bail bonding agent. (6) (5) The division of registrations shall notify each licensed bail bonding agent in writing on an annual basis regarding changes to the state laws regarding pertaining to the regulation of bail bonding agents. 12-7-102.5. Prelicensure education and training requirements - examinations - exemptions - professional cash bail bonding agent requirements - rules. (1) As a condition of initial licensure and qualification as a bail bonding agent, the commissioner shall require each applicant to shall submit to the board, in such form and manner as prescribed by the board, evidence of satisfactory completion of an approved prelicensure education or and training. course. Such An applicant is also required to pass an examination prior to licensure. (a) The education or and training shall must consist of at least: (a) (I) Eight clock hours regarding bail bonding, two of which shall concern the criminal court system, two of which shall concern bail bond industry ethics, and four of which shall concern the laws relating to bail bonds Four hundred eighty hours of prelicensure education, of which at least one hundred hours must pertain to bail recovery, administered by a recognized state bail bond association and approved by the board; and (b) (II) For persons applying for licensure on or after January 1, 1999, training in bail recovery practices not to exceed sixteen clock hours. Such training shall comply with the standards established by the peace officers standards and training board pursuant to section 24-31-303 (1) (h), C.R.S. Four hundred eighty hours of training, of which at least one hundred hours must pertain to bail recovery, under the direct supervision of a current licensee authorized by the board to provide such training. A supervising licensee shall report to the board, in such form and manner as required by the board and under penalty of perjury, when an applicant has completed or has failed to complete the training required by this subparagraph (II) and rules promulgated pursuant thereto. (b) (I) An applicant who satisfactorily completes the prelicensure education and training required under this section is entitled to take a licensure examination. The board shall administer licensure examinations as often as necessary to provide applicants a reasonable opportunity to take the examination. The examination must adequately test an applicant's knowledge of bail bonding, including laws and rules related to bail recovery, the criminal court system, bail bond industry ethics, and any other related subject the board deems relevant and necessary. (II) If an applicant candidate fails a certain number of examinations, as determined by rule of the board, the board may require the applicant to take additional study before taking another examination. (2) The prelicensure education, requirements shall training, and examination required under subsection (1) of this section do not apply to a person: applying for: (a) Applying for reinstatement of a cancelled or expired bail bonding agent license if such the license has been inactive for one year or less; or (b) Licensed by the division of insurance as a bail bonding agent on or before July 1, 2011; or (b) (c) Applying for a license if such person the applicant has been licensed in another state for at least one year and has completed or satisfied prelicensure requirements which in that state that the board determines are substantially similar to those stated in subsection (1) of this section. (3) to (5) (Deleted by amendment, L. 96, p. 1178,  3, effective June 1, 1996.) (6) (3) (a) As a condition of initial licensure and qualification as a professional cash bail bonding agent, the commissioner board shall require each applicant to submit evidence of satisfactory completion of an additional approved prelicensure education or and training. course. Such education or training shall consist of not less than eight clock hours regarding bail bonding, two of which shall concern the criminal court system, two of which shall concern bail bond industry ethics, and four of which shall concern the laws relating to bail bonds. The board shall specify the education and training required under this subsection (3) by rule, which is in addition to that required under subsection (1) of this section. (7) (b) The professional cash bonding agent shall A person must be licensed as a bail bonding agent in Colorado for four years prior to applying to be eligible for licensure as a professional cash bail bonding agent. (8) (4) The division board shall promulgate rules necessary for the implementation of this section. The rules must, at a minimum, set forth the standards by which prelicensure education courses and programs qualify for approval, describe a system of control and reporting, specify the criteria for authorizing a licensee to train an applicant, determine the subjects contained in examinations, set the frequency at which examinations will be offered, and specify the education and training required for licensure as a professional cash bail bonding agent. (5) An individual applying for a license under this article shall pay to the board, in addition to any other applicable fees or charges, a fee established by the board for the operation of the prelicensure education program. 12-7-103. Licenses - application - fees - qualification bond - forfeiture. (1) Any person desiring to engage in the business of bail bonding agent An applicant for licensure in this state shall supply the following information to the division board: (a) (Deleted by amendment, L. 96, p. 1179,  4, effective June 1, 1996.) (b) Repealed. (c) (a) Whether the applicant has been convicted of a felony, entered a guilty plea to a felony, accepted a plea of nolo contendere to a felony, or engaged in or committed an act described in section 12-7-106 (1) during the previous ten years; (b) Proof, in accordance with rules of the board, that the person is a member in good standing at a level no lower than the entry, trainee, student, or other comparable prelicensure level, in a recognized state bail bond association; (d) (c) Such Any other information as may be required by under this article or by the division board, including but not limited to a full-face photograph. In addition, Each applicant shall pay the actual costs associated with obtaining any photograph that may be required. (e) and (f) Repealed. (2) (a) A licensee's license expires biennially on January 1 unless revoked or suspended prior to that date by the board or upon notice served upon the board by the insurer, employer, or user of any license that the insurer, employer, or user has cancelled the licensee's authority to act for or on behalf of the insurer, employer, or user. (b) The board shall establish application forms and fee amounts for license applications, renewals, and reinstatements of expired licenses. A person applying for, renewing, or reinstating a license shall submit an application to the board, in the form and manner determined by the board, and shall pay a fee in an amount set by the board under section 12-7-104. (1.5) (a) (3) Prior to submission of Before submitting an application, each applicant shall have his or her fingerprints taken by a local law enforcement agency for the purpose of obtaining a fingerprint-based criminal history record check. The applicant is required to submit payment by certified check or money order for the fingerprints and for the actual costs of said the record check at the time the fingerprints are submitted to the Colorado bureau of investigation. Upon receipt of fingerprints and receipt of the payment for costs, the Colorado bureau of investigation shall conduct a state and national fingerprint-based criminal history record check utilizing records of the Colorado bureau of investigation and the federal bureau of investigation. (b) For purposes of this subsection (1.5), "applicant" shall include any: (I) Bail bonding agent, as defined in section 12-7-101 (1); (II) Professional cash bail agent, as defined in section 12-7-101 (7); and (III) Bail bonding agent licensed to write bail bonds as a cash bonding agent, as described in section 12-7-102 (1). (2) (Deleted by amendment, L. 96, p. 1179,  4, effective June 1, 1996.) (3) (4) (a) Each applicant who is to be authorized as a cash bonding agent pursuant to section 12-7-102 (1) shall be is required to post a qualification bond in the amount of fifty thousand dollars with the division board. The bond shall be to the people of the state of Colorado in favor of any court in this state, whether municipal, county, district, or other court. Any qualification bond for a cash bail bonding agent shall also be to the commissioner and the division board to fulfill the purposes of this section. In the event of a forfeiture of a cash bonding agent's qualification bond, the division shall have board has priority over all other claimants to such the bond. Such The bond shall must be conditioned upon full and prompt payment into the court ordering such the bond forfeited. Bail bonding agents authorized licensed as cash bonding agents pursuant to section 12-7-102 (1) may only issue bonds only in accordance with the provisions of section 16-4-104 (1) (b) (III), C.R.S. In the event of a qualification bond forfeiture, a cash bonding agent shall be is prohibited from writing new bail bonds until the qualification bond is restored to fifty thousand dollars. (b) If the name of a cash bonding agent is placed on the board pursuant to section 16-4-112 (5) (e), C.R.S., and remains on the board for the same forfeiture for more than thirty consecutive days, the court that placed the name of the cash bonding agent on the board shall order the division board to declare the qualification bond of such the cash bonding agent to be forfeited after a hearing as provided in section 12-7-106 (2). The division board shall then order the cash bonding agent on the qualification bond to deposit with the court an amount equal to the amount of the bond issued by such the cash bonding agent and declared forfeited by the court or the amount of the qualification bond, whichever is the smaller amount. The division board shall suspend the license of such the cash bonding agent until such time as all forfeitures and judgments ordered and entered against the cash bonding agent have been certified as paid or vacated by order of a court of record and another qualification bond in the required amount is posted with the division board. (c) If the name of a bail bonding agent, other than a cash bonding agent, is placed on the board pursuant to section 16-4-112 (5) (e), C.R.S., and remains on the board for the same forfeiture for more than forty-five consecutive days, the court that placed the name of the bail bonding agent on the board shall order the division board to suspend the license of said the bail bonding agent, after a hearing conducted pursuant to section 10-2-801, C.R.S. 12-7-106 (2), until such time as all forfeitures and judgments ordered and entered against said the bail bonding agent have been certified as paid or vacated by order of a court of record. If the bail forfeiture judgment is not paid within fifteen days after the name of a bail insurance company has been placed on the board pursuant to section 16-4-112 (5) (f), C.R.S., the division board shall also order the bail insurance company on the bond to pay the judgment after notice and hearing pursuant to sections 24-4-104 and 24-4-105, C.R.S. section 12-7-106 (2). (4) to (7) (Deleted by amendment, L. 96, p. 1179,  4, effective June 1, 1996.) (8) (5) (a) Each applicant who is to be authorized for licensure as a professional cash bail bonding agent pursuant to section 12-7-102 (1) shall be is required to post a qualification bond in the amount of no less than at least fifty thousand dollars with the division board. The bond shall be to the people of the state of Colorado in favor of any court in this state, whether municipal, county, district, or other court. Any qualification bond for a professional cash bail bonding agent shall also be to the commissioner and the division board to fulfill the purposes of this section. A professional cash bail bonding agent shall not furnish a single bail greater than twice the amount of the bond posted with the division board. In the event of a forfeiture of a professional cash bail bonding agent's qualification bond, the division shall have board has priority over all other claimants to such the bond. Such The bond shall must be conditioned upon full and prompt payment into to the court ordering such the bond forfeited. Bail bonding agents authorized licensed as professional cash bail bonding agents pursuant to section 12-7-102 (1) may only issue bonds only in accordance with the provisions of section 16-4-104 (1) (b) (III), C.R.S. In the event of a qualification bond forfeiture, a professional cash bail bonding agent shall be is prohibited from writing new bail bonds until the qualification bond is restored to at least fifty thousand dollars. (b) If the name of a professional cash bail bonding agent is placed on the board pursuant to section 16-4-112 (5) (e), C.R.S., and remains on the board for the same forfeiture for more than thirty consecutive days, the court that placed the name of the professional cash bonding agent on the board shall order the division board to declare the qualification bond of such the professional cash bail bonding agent to be forfeited after a hearing as provided in section 12-7-106 (2). The division board shall then order the professional cash bail bonding agent on the qualification bond to deposit with the court an amount equal to the amount of the bond issued by such the professional cash bail bonding agent and declared forfeited by the court or the amount of the qualification bond, whichever is the smaller amount. The division board shall suspend the license of such the professional cash bail bonding agent until such time as all forfeitures and judgments ordered and entered against the professional cash bail bonding agent have been certified as paid or vacated by order of a court of record and another qualification bond in the required amount is posted with the division board. 12-7-103.5. Continuing education requirement - rules. (1) On and after July 1, 2011, a licensee shall satisfactorily complete at least sixteen hours of instruction every two years by attending courses or programs of instruction that are administered by a recognized state bail bond association and have been approved by the board. Two hours of the instruction must concern bail bond industry ethics. (2) For good cause shown, the board may grant an extension of time, not to exceed one year, within which a licensee may comply with this section. (3) An instructor of an approved course of instruction qualifies for the same number of hours of continuing education as a person attending and successfully completing the course or program, but an instructor shall not receive such credit more than once for a course or program given more than once during a two-year period. (4) A bail bonding agent licensed under this article shall furnish written proof of compliance with this section, in a form and manner prescribed by the board. (5) A recognized state bail bond association providing a course of continuing education approved by the board shall execute written certification that a licensee has completed a course of instruction. The certification must be in a form and manner prescribed by the board. (6) The board shall suspend, after notice and opportunity for hearing, a licensee licensed under this article who fails to comply with this section or is found to have submitted a false or fraudulent certificate of compliance. The suspension continues until the licensee satisfactorily demonstrates to the board that all of the requirements of this section have been met. (7) The board shall promulgate rules necessary to administer this section, including approving curricula developed by a recognized state bail bond association for continuing education required under this section and establishing methods by which compliance with the section may be proven. (8) This section does not apply to a cash bonding agent. 12-7-104. License fees. (Repealed) 12-7-104.2. Fees. The board may establish licensing fees pursuant to this article. The fees shall be adequate to cover the direct and indirect expenses incurred for implementation of this article and shall be determined, collected, and appropriated in the manner set forth in section 24-34-105, C.R.S., and periodically adjusted in accordance with section 24-75-402, C.R.S. 12-7-104.5. Advisory committee - repeal. (1) (a) There is hereby created an advisory committee to render advisory decisions to the division in matters involving complaints and help to ensure that bail bonding agents properly report and pay premium tax. The committee shall be composed of one representative of law enforcement, one representative of cash bail bond agents, one representative of professional cash bond agents, three representatives of surety bond agents licensed in this state, and one representative of surety companies. The committee members shall serve without compensation. Appointments shall be made by the commissioner. The representative of cash bail bond agents and two of the representatives of surety bond agents shall be appointed for an initial term of two years. All other appointments shall be for terms of four years. Vacancies that occur during any term shall be filled by the commissioner for the remainder of the term. (b) The advisory committee shall also review all rules regarding the regulation of bail bonding agents that are proposed by the commissioner and make recommendations to the commissioner regarding the implementation of such rules. The commissioner shall consider the recommendations of the committee and make the recommendations public and available for review. (2) (a) This section is repealed, effective July 1, 2013. (b) Prior to such repeal, the advisory committee shall be reviewed as provided for in section 2-3-1203, C.R.S. 12-7-105. Reports and records required - bonding agents - board - rules. (1) Each licensed bail bonding agent shall provide a report to the division of registrations no later than November 1 of each year. Such The report shall must be in the form and manner that the division board requires and shall must include but shall not be limited to, the following information: (a) The names of the persons for whom such the bail bonding agent has become surety; (b) A description of any bond activity; (c) (Deleted by amendment, L. 96, p. 1183, 8, effective June 1, 1996.) (d) (c) The amount of collateral or security received; (e) (Deleted by amendment, L. 96, p. 1183, 8, effective June 1, 1996.) (e.5) (d) The names of persons for whom such the bail bonding agent has become surety and who have failed to appear; (f) (e) Such further Any additional information as that the division board may reasonably require by rule. (2) The division of registrations shall keep records as necessary of all matters pertaining to its regulation of bail bonding agents. Such The records shall must be kept in compliance with article 17 of title 6, C.R.S., and shall must include copies of all applications, examinations, and reports filed by or completed on behalf of any a bonding agent or person seeking licensure as a bonding agent; complaints regarding any facet of the bail bond industry, including but not limited to complaints involving any a licensee; and summaries of actions taken by the division board against or on behalf of any such a bonding agent. (3) The board shall develop by rule standards and procedures to monitor licensees on the board and for licensees to take appropriate action to rectify a delinquency causing the licensee to remain on the board for a period exceeding thirty days. 12-7-105.5. Bail recovery services - requirements. (1) On or after October 1, 1998, Prior to hiring, contracting with, or paying any compensation to any an individual other than another licensed bail bonding agent for bail recovery services, a licensed bail bonding agent shall take all of the following actions: (a) The agent shall Contact the Colorado bureau of investigation pursuant to the requirements of subsection (3) of this section to confirm that the person has submitted fingerprints to the bureau for a criminal background fingerprint-based criminal history record check and to confirm that such the person has not been convicted of or pled guilty or nolo contendere to any felony under federal or state law. (b) For employment commencing on or after January 1, 1999, the agent shall Obtain a copy of a certificate of training from the individual indicating that such the individual has received training in bail fugitive apprehension from a private bail recovery program or an accredited institution of higher education. Such The training shall must comply with the standards established by the peace officers standards and training board pursuant to section 24-31-303 (1) (h), C.R.S., and shall not exceed must be at least sixteen clock hours in duration. (c) The agent shall Obtain a statement from the individual attesting, under penalty of perjury, that such the person is providing true and complete information to the bail bonding agent. (d) Receive from the division of registrations proof that the individual satisfactorily completed at least one hundred hours of fugitive apprehension education or training from a board-approved course offered by a recognized state bail bond association. (2) Any An individual who wishes to be employed by a licensed bail bonding agent to perform bail recovery services shall have his or her fingerprints taken by a local law enforcement agency for the purposes of obtaining a background fingerprint-based criminal history record check. The individual is required to submit payment by certified check or money order for the fingerprints and for the background fingerprint-based criminal history record check at the time the fingerprints are taken. Any person who wishes to complete the background check process by the time that background checks are required for employment on October 1, 1998, shall submit a set of fingerprints to a local law enforcement agency on or before July 1, 1998. (3) Upon receipt of fingerprints from a law enforcement agency and the payment for costs required by subsection (2) of this section, the Colorado bureau of investigation shall utilize such use the fingerprints, the bureau's files and records, and the files and records of the federal bureau of investigation for the purpose of determining to determine whether the individual has been convicted of or pled guilty or nolo contendere to any felony under federal or state law during the previous fifteen years. The bureau shall establish and maintain files regarding the criminal backgrounds of persons seeking to provide bail recovery services. (4) (a) On or after October 1, 1998, A licensed bail bonding agent may not hire, contract with, or pay any compensation to any an individual for bail recovery services if the inquiry to the Colorado bureau of investigation required by paragraph (a) of subsection (1) of this section indicates that the bureau has not completed a background fingerprint-based criminal history record check on the individual or if the bail bonding agent knows, through the inquiry to the Colorado bureau of investigation or through any other source, that such the individual has been convicted of or pled guilty or nolo contendere to a felony under federal or state law during the previous fifteen years. (b) Beginning no later than October 1, 1998, The Colorado bureau of investigation shall accept inquiries from licensed bail bonding agents regarding the criminal background records of individuals seeking employment to perform bail recovery services. A bail bonding agent shall pay the cost of each inquiry made to the bureau through such a payment method as is established by the bureau. Upon receiving an inquiry, the bureau shall inform the bail bonding agent whether a background fingerprint-based criminal history record check has been completed for the individual and, if so, whether, according to the record established by the bureau, such the person has been convicted of or pled guilty or nolo contendere to a felony under federal or state law during the previous fifteen years. Prior to providing information under the provisions of this section, the bureau shall require a person making an inquiry to provide the name of the bail bonding agent and such the agent's license number. (5) The Colorado bureau of investigation, any a local law enforcement agency, and any an individual employed by the bureau or a local law enforcement agency shall is not be liable for any damages that may result from good faith compliance with the provisions of this section. 12-7-106. Denial, suspension, revocation, and refusal to renew license - hearing - alternative civil penalty. (1) The division board shall deny, suspend, revoke, or refuse to renew, as may be appropriate, the license of any person engaged in the business of a bail bonding agent for any of the following reasons: (a) Failure of a cash bonding agent or professional cash bail bonding agent to post a qualified bond in the required amount with the division board during the period such the person is engaged in the business of bail bonding within this state or, if such the bond has been posted, the forfeiture or cancellation of such the bond; (b) Knowingly failing to comply with or knowingly violating any provisions of this article or of any proper order or rule of the division board or any of a court of this state where the licensee knew or reasonably should have known of the provisions, order, or rule; (c) Any Engaging in an activity prohibited in section 12-7-109 (1); (d) Failure to satisfy, pay, or otherwise discharge a bail forfeiture judgment after having his or her name placed on the board pursuant to section 16-4-112 (5) (e), C.R.S., for more than forty-five consecutive days for the same forfeiture; (e) Conviction of a felony, a guilty plea to a felony, or a plea of nolo contendere to a felony within the last ten years, regardless of whether the conviction or plea resulted from conduct in or conduct related to the bail bond business; (f) Service of a sentence upon a conviction of a felony in a correctional facility, city or county jail, or community correctional facility or under the supervision of the state board of parole or any probation department within the last ten years; (g) Failure to report, to preserve without use and retain separately, or to return collateral taken as security on any bond to the principal, indemnitor, or depositor of such the collateral; (h) Soliciting business in or about any place where prisoners are confined, arraigned, or in custody; (i) Failure to pay a final, nonappealable judgment award for failure to return or repay collateral received to secure a bond; (j) Hiring, contracting with, or paying compensation to any individual for bail recovery services in violation of the provisions of section 12-7-105.5; (k) Continuing to execute bail bonds in any court in this state while on the board pursuant to section 16-4-112 (5) (e), C.R.S., where the bail forfeiture judgment that resulted in being placed on the board has not been paid, stayed, vacated, exonerated, or otherwise discharged; (l) If For a professional cash bail bonding agent, furnishes furnishing a single bail in any a court in this state in an amount greater than twice the amount of the professional cash bail bonding agent's bond posted with the division board. (2) If the division board denies, suspends, revokes, or refuses to renew any such a license, the board shall give the aggrieved person shall be given an opportunity for a hearing subject to judicial review as provided in article 4 of title 24, C.R.S. (3) Except for the reasons listed in paragraphs (e) and (f) of subsection (1) of this section, the commissioner board, in lieu of revoking or suspending a license, may in any one proceeding, by order, require the licensee to pay to the commissioner board, to be deposited in the general fund of the state, a civil penalty in the sum of no less than three hundred dollars and no more than one thousand dollars for each offense. Upon failure of the licensee to pay the penalty within twenty days after the mailing of the order, postage prepaid, registered and addressed to the last-known place of business of the licensee, the commissioner board may revoke the license of the licensee or may suspend the license for such period as the commissioner board may determine, unless the commissioner's board's order is stayed by an order of a court of competent jurisdiction. 12-7-107. Notice to surety. (1) (Deleted by amendment, L. 96, p. 1185,  10, effective June 1, 1996.) (2) Repealed. (3) The A bail bonding agent shall prepare a list of all collateral taken for assurance of compliance with the bond issued and the fee paid. therefor. The bail bonding agent shall provide such the list to the surety within twenty days of after taking the collateral. Failure to provide this the written list to the surety, keep a file of all such lists for two years following the end of the calendar year in which each was prepared, or provide the list or a copy thereof of the list to the commissioner board on request is a violation of this section and shall be is a ground for revocation of the bail bonding agent's license. 12-7-108. Bonding agreement - place of business - records - payment schedule - disclosure statements - amounts allowed for fees, premiums, or commissions - additional charge authorized - legislative declaration. (1) All indemnity agreements, promissory notes, premium and collateral receipts, and bond revocation agreements shall must be in writing and signed by the bail bonding agent and the defendant or third-party indemnitor. If the defendant or third-party indemnitor is illiterate or does not read the English language, such the bail bonding agent shall note on the indemnity agreement that he or she or a third party has read or translated the agreement to the defendant or third-party indemnitor and shall affix an affidavit attesting that the document was translated to the indemnity agreement. Premium receipts shall be signed, be dated, and list the amount of the bond paid, and the bail bonding agent shall give the original given receipt to the defendant or the third-party indemnitor. (2) Each bail bonding agent shall use a third-party agent or his or her own office for the purposes of service of process. The bail bonding agent shall file the name and address of the place of business of the bail bond agent or agent of service of process shall be filed with the division of insurance registrations. (3) As a minimum requirement for permanent office records, each bail bonding agent who is engaged in the bail bond business shall maintain a current and up-to-date bond register in a form and with such content as prescribed by the commissioner board that shall identify identifies all bonds or undertakings executed by the licensee. (4) Each bail bonding agent who accepts money or any other consideration for a bond or undertaking shall, for each payment received, give to each indemnitor a prenumbered, signed receipt as evidence of payment. The prenumbered, signed receipt shall must state the date, the name of the defendant, a description of the consideration or amount of money received and the purpose for which it was received, the number of any applicable power-of-attorney form attached to the bond, the penal sum of the bond, the name of the indemnitor, and the terms under which the money or other consideration shall will be released. Each bail bonding agent shall retain a duplicate copy of each receipt issued as part of the agent's records and shall account for all of the prenumbered receipts, whether they were issued to an indemnitor or whether they were destroyed or otherwise not used by the agent. (5) The bail bonding agent shall keep at the place of his or her business or, if using an agent for service of process required pursuant to subsection (2) of this section, shall make available at the business of the agent for service of process, all records pertaining to transactions made under the agent's license. and The bail bonding agent shall keep all the records as to any particular transaction available and open to inspection by the commissioner or the commissioner's authorized representative board during normal business hours for the three years immediately after the date of release of the bond and return of the collateral, if applicable, or proof of notice to the defendant or third-party indemnitor that the terms of any a promissory note have been satisfied. Such The records include: without limitation: (a) Records of all bail bonds the bail bonding agent executes or countersigns; (b) Copies of any receipts issued to the indemnitor who pays the money for the premium and the collateral agreement, signed by a licensed bail bonding agent; (c) An executed agreement, signed by the indemnitor and a licensed bail bonding agent, setting forth the amount of bail set in the case; the name of the defendant released on the bond; the court case number, if available, and the court in which the bond is executed; the premium charged; the amount and type of collateral held by the bail bonding agent; and the conditions under which the collateral will be returned; (d) Evidence that the indemnitor has received copies of signed and dated disclosure forms as required by subsection (9) of this section; and (e) Any additional information the commissioner board may reasonably require by rule. (6) The commissioner board may examine the business practices, books, and records of any a bail bonding agent as often as the commissioner board deems appropriate. (7) (a) Except for bond filing fees charged by a court or law enforcement agency and the actual cost of storing collateral in a secure, self-service public storage facility or premium financing fees, no bail bonding agent licensed under this article a licensee shall not charge for such bail bonding agent's a premium, commission, or fee in an amount less than ten percent nor more than fifteen percent of the amount of bail furnished by such the bonding agent. or fifty dollars, whichever is more. (b) (I) (A) Notwithstanding any provision of law to the contrary, and in addition to any amount that may be lawfully charged, a bail bonding agent shall collect a fee of fifteen dollars per professional surety bond posted from each defendant or third-party indemnitor. The bail bonding agent shall forward this sum to the sheriff or other law enforcement entity who processes the defendant's bail. The sheriff or other law enforcement entity shall then transmit ten dollars to the local public school district and retain five dollars for costs incurred in processing the charge. (B) The bail bonding agent shall not collect the fee collected under sub-subparagraph (A) of this subparagraph (I) for personal recognizance bonds ordered by a court, or cash or property bonds, or any other bond for which a defendant posts his or her own assets without the services of a professional surety. (II) The general assembly hereby finds, determines, and declares that the presence and support of schools is directly correlated with preventing and reducing crime. It is therefore appropriate and beneficial to establish a mechanism where the school districts directly suffering from crime receive funds. (8) An arrangement for the payment of all or part of the premium, commission, or fee paid to a licensed bail bonding agent licensed under this article shall must be in writing; be signed and dated by the bail bonding agent and the defendant or the third-party indemnitor, as applicable; be retained by the bail bonding agent, and a copy provided to the defendant or third-party indemnitor; and shall set forth the schedule of such the payments. The signature of the bail bonding agent shall does not obligate such the agent to pay any debt owed to a third-party lender. Interest and financial charges on any unpaid premium shall must comply with the "Uniform Consumer Credit Code", articles 1 to 9 of title 5, C.R.S. An insurer, cash bail bonding agent, and professional cash bail bonding agent shall pay the appropriate premium tax. (9) Every bail bonding agent licensee shall provide, in a form prescribed by the commissioner board, a disclosure statement to each defendant or third-party indemnitor. (10) (a) The bail bonding agent licensee may use collateral received from the defendant or third-party indemnitor pursuant to this article to secure the following obligations: (I) Compliance with the bond issued on behalf of the principal; (II) Any balance due on the premium, commission, or fee for the bond; and (III) Any related costs incurred by the agent as a result of issuing the bond. (b) The bail bonding agent licensee shall provide an appropriate disclosure and obtain the agreement of the defendant or third-party indemnitor to use collateral to secure the obligations in paragraph (a) of this subsection (10). 12-7-109. Prohibited activities - penalties. (1) It is unlawful for any licensee under this article to engage in any of the following activities: (a) Specify, suggest, or advise the employment of any particular attorney to represent such the licensee's principal; (b) Pay a fee or rebate or give or promise to give anything of value to a jailer, police officer, peace officer, clerk, deputy clerk, any other an employee of any court, district attorney or any of such the district attorney's employees, or any a person who has power to arrest or to hold any a person in custody; (c) Pay a fee or rebate or give anything of value to an attorney in bail bond matters, except in defense of any an action on a bond or as counsel to represent such the bail bonding agent or such the bonding agent's representative or employees; (d) Pay a fee or rebate or give or promise to give anything of value to the person on whose bond such the licensee is surety; (d.5) (I) Except for the premium, commission, or fee received for the bond to fail and except as provided in subparagraph (II) of this paragraph (d.5), failure to return any a collateral or security within ten working days after receipt of a copy of the court order that results in a release of the bond by the court, unless the collateral also secures other obligations in compliance with section 12-7-108 (10). The person for whom the bond was written shall provide a copy of the court order shall be provided to the bonding agent in Colorado or the company, if any, for whom the bonding agent works, whether in Colorado or out-of-state, or both. by the person for whom the bond was written; except that, (II) If three years have elapsed from the date of the posting of the bond, unless a judgment has been entered against the surety or the principal for the forfeiture of the bond, or unless the court grants an extension of the three-year time period for good cause shown, the bail bonding agent, as principal or as surety, shall be exonerated and, at the request of the person who tendered the collateral or security, shall return the collateral or security to the person who posted the collateral or security within ten business days after the three-year time period. The commissioner board may release a lien after the three-year time period has expired if the lienholder cannot be contacted after an attempt has been made by certified mail and the attempt has failed. (e) Except as otherwise provided in section 12-7-108 (7), accept anything of value, other than the premium, commission, or fee on the bond, from a person on whose bond such the licensee is surety or from others on behalf of such the person; except the fee or premium on the bond but that, the bail bonding agent may accept collateral security or other indemnity if: (I) No collateral or security in tangible property is taken by pledge or debt instrument which that allows retention, sale, or other disposition of such the property upon default except in accordance with the provisions of article 9 of title 4, C.R.S.; (II) No collateral or security interest in real property is taken by deed or any other instrument unless the bail bonding agent's interest in the property is limited to the amount of the bond; (III) The collateral or security taken by the bail bonding agent is not pledged directly to any a court as security for any an appearance bond; and (IV) The person from whom the collateral or security is taken is issued a receipt describing the condition of the collateral at the time it is taken into the custody of the bail bonding agent; (f) Coerce, suggest, aid and abet, offer promise of favor, or threaten any a person on whose bond such the licensee is surety or offers to become surety to induce that person to commit any a crime; (g) Act as a bail bonding agent in any a court of record in this state while the name of such the licensee is on the board pursuant to section 16-4-112 (5) (e), C.R.S., or under any circumstance where a licensee has failed to pay a bail forfeiture judgment after all applicable stays of execution have expired and the bond has not been otherwise exonerated or discharged; (h) to (j) Repealed. (k) (h) (I) Accept anything of value, other than the premium, commission, or fee on the bond, from a person on whose bond such the licensee is indemnitor or from another on behalf of such the principal, except the premium; except that as provided in subparagraph (II) of this paragraph (h). (II) (A) The bail bonding agent licensed under this article may accept collateral security or other indemnity from the person on whose bond such the bail bonding agent is indemnitor or from another on behalf of such the principal. The bail bonding agent shall return all such collateral or other indemnity shall be returned pursuant to the requirements contained in paragraph (d.5) of this subsection (1). (B) The bail bonding agent licensed under this article shall preserve and separately retain such the collateral and shall be and is responsible for the return of all such collateral taken, and shall be the bail bonding agent and surety company is liable for failure thereof as will also be the surety company of the collateral. When a bail bonding agent accepts collateral as security pursuant to this paragraph (k), such subparagraph (II), the bail bonding agent shall give a written receipt for such the collateral to the person on whose bond such the bail bonding agent is indemnitor or to another on behalf of such the principal and the surety, which shall provide in detail a full description of the collateral received. (C) In the event of the failure of or inability for any reason of a bail bonding agent or such the bail bonding agent's heirs or assignees to return collateral as required in this paragraph (k) subparagraph (II), the commissioner board or the commissioner's board's designee is authorized to take immediate possession of the collateral and take whatever actions are necessary and appropriate to assure compliance with the obligations of this article relating to the return of collateral. The commissioner board is authorized to utilize any or all of the qualification bond required in section 12-7-103 (3) 12-7-103 (4) for any costs incurred. Any such payment received by the commissioner board is hereby appropriated to the division of insurance in addition to any other funds appropriated for its normal operation board for use in performing its function under this article. The commissioner board shall forfeit a qualification bond in the amount necessary to pay any a final, nonappealable judgment award for failure to return collateral, including costs and attorney's fees, if awarded. (l) (i) Sign or countersign blank bail bonds or execute a power of attorney or otherwise authorize anyone a person to countersign such the licensee's name to bonds; (m) (j) For any one a licensee to have more than one bond posted at any one a time and, in any a single case, on behalf of any one person; (n) (k) Fail to issue to the person from whom collateral or security is taken a receipt which that includes a description of the collateral or security at the time it is taken into the custody of the bail bonding agent; (o) (l) Failure to post a bond within twenty-four hours of after receipt of full payment or a signed contract for payment, or if the bond is not posted within twenty-four hours of after receipt of full payment or a signed contract for payment, failure to refund all moneys received, release all liens, and return all collateral within forty-eight hours of after receipt of such the payment or contract. (2) Any A licensee who violates any provision of subsection (1) of this section is guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine of not more than one thousand dollars, or by imprisonment in the county jail for not more than one year, or by both such fine and imprisonment. Any A criminal penalty prescribed in this section for a violation of this article shall be is in addition to, and not exclusive of, any other applicable penalty prescribed by law or disciplinary action by the board pursuant to section 12-7-106. (3) Any A person who acts or attempts to act as a bail bonding agent and who is not licensed as such under this article is guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine of not more than one thousand dollars, or by imprisonment in the county jail for not more than one year, or by both such fine and imprisonment. 12-7-109.5. Appointment of bail bonding agent by bail insurance company - continuation - renewal - exceptions. (1) A licensee shall not claim to be a representative or authorized or appointed agent of, or use any other term implying a contractual relationship with, a particular bail insurance company or accept applications on behalf of a bail insurance company unless the licensee is appointed by that bail insurance company, in accordance with this section, to act in the capacity of an agent of the company. (2) A bail insurance company shall: (a) Notify the board of each producer bail bonding agent appointment; and (b) File with the board, monthly or at such other less frequent intervals as the board may prescribe, a current list of licensees that it has appointed to solicit business on its behalf. The list shall contain all relevant appointment information as prescribed by the board, including the effective date of appointment. (3) Each appointment remains in effect until: (a) The licensee's license expires or is suspended or revoked by the board; or (b) The bail insurance company files notice of termination of the appointment with the board pursuant to section 10-2-415.7, C.R.S. (4) The board shall notify a bail insurance company in writing if the license of an appointee expires or is suspended or revoked. 12-7-110. Penalty for violation of bond conditions. (Repealed) 12-7-110.5. Rate filing - rules. (1) All cash and professional cash bail bonding agents and all surety companies shall file with the division of insurance a schedule of premium rates charged for bail by the bail bonding agent and shall file revised rates with the division whenever the rates change. (2) The commissioner of insurance shall promulgate rules regarding the rate filing requirement pursuant to this section. 12-7-111. Tax on fees charged. Each bail bonding agent who furnishes bail in a form other than in the form of the bail bond of an insurer shall pay to the division of insurance a tax on the fees charged for bail by such the bail bonding agent. Such The tax shall must be the same as the tax levied on insurance companies by section 10-3-209 (1), C.R.S., and, except as otherwise provided in section 10-3-209 (4) (b), C.R.S., all applicable provisions of such that section shall be applied apply to such a bail bonding agent in the same manner, amounts, and procedure as they are applied apply to insurance companies. in such section. 12-7-112. Repeal of article - review of functions. This article is repealed, effective July 1, 2012 September 1, 2021. Prior to such that repeal, the licensing functions regulation of the commissioner and the division bail bonding agents by the board shall be reviewed as provided for in section 24-34-104, C.R.S. 12-7-113. Scope of article - relation to insurance laws. (1) The commissioner of insurance or his or her designee is authorized to examine the relevant records of all licensed bail bonding agents in order to ensure consumer protection through the pursuit of administrative compliance actions and enforcement. The board is vested with the exclusive authority to regulate bail bonding agents in Colorado. Nothing in this article abrogates or impairs the regulation of bail insurance companies by the division of insurance under title 10, C.R.S. (2) Not more than once every three years, The commissioner of insurance or his or her designee may request that the board examine the records of all licensed bail bonding agents a licensee or all licensees for the purpose of a market conduct examination or investigation. SECTION 2. 10-1-103 (6) (b) (I) (A) and (6) (b) (I) (D), Colorado Revised Statutes, are amended to read: 10-1-103. Division of insurance - subject to termination - repeal of functions. (6) (b) (I) (A) The functions of the division of insurance related to the licensing of bail bonding agents are repealed, effective July 1, 2012, pursuant to the provisions of this section and section 12-7-112, C.R.S. (D) The functions of the division of insurance other than those functions related to the licensing of bail bonding agents, are repealed, effective July 1, 2017, pursuant to this section and section 24-34-104 (48), C.R.S. SECTION 3. 10-2-301 (6) (a) and (6) (c), Colorado Revised Statutes, are amended to read: 10-2-301. Continuing education requirement - advisory committee - rules. (6) (a) The commissioner shall be is responsible for administering the continuing insurance education requirements under this article and the continuing education requirements under article 7 of title 12, C.R.S., and approving courses of instruction which that qualify for such continuing insurance education purposes. The commissioner shall promulgate such rules and regulations as the commissioner deems necessary to administer such the continuing education requirements, including the provisions and requirements of this section. The commissioner shall also promulgate regulations requiring that producers and bail bonding agents licensed under article 7 of title 12, C.R.S., be required to provide to a continuing education administrator proof of compliance with the continuing education requirements as a condition of license renewal. For persons licensed pursuant to section 10-11-116 (1) (c), compliance with the continuing legal education credits requirements of the Colorado supreme court shall be deemed to meet the requirements of this section. (c) Each producer and bail bonding agent licensed under article 7 of title 12, C.R.S., shall be responsible for paying to the continuing education administrator a reasonable biennial fee for the operation of the continuing education programs, which fee shall be used to administer the provisions of this section. SECTION 4. 10-3-209 (4), Colorado Revised Statutes, is amended to read: 10-3-209. Tax on premiums collected - exemptions - penalties - legislative declaration. (4) (a) Except as otherwise provided in paragraph (b) of this subsection (4), all taxes, penalties, and fines collected by the division of insurance under the provisions of this section and under section 12-7-111, C.R.S., shall be transmitted to the department of the treasury and credited to the general fund; except that such amounts appropriated by the general assembly to the division of insurance cash fund, created in section 10-1-103 (3), not to exceed a maximum of five percent of all taxes collected under this section, shall be transmitted to the state treasurer and deposited in the division of insurance cash fund. (b) (I) The state treasurer shall transfer all premium taxes collected from bail bonding agents, as defined in section 12-7-101, to the public school fund described in section 22-41-101, C.R.S. (II) The general assembly hereby finds, determines, and declares that the presence and support of schools is directly correlated with preventing and reducing crime. It is therefore appropriate and beneficial to establish a mechanism to provide funding to schools in an effort to diminish crime in this state. SECTION 5. The introductory portion to 10-2-407 (1) and 10-2-407 (1) (f), Colorado Revised Statutes, are amended to read: 10-2-407. License - definitions of lines of insurance - authority. (1) Unless denied licensure pursuant to section 10-2-801, or 12-7-106, C.R.S., a person who has met the requirements of sections 10-2-401, 10-2-404, 12-7-102, or 12-7-103, C.R.S., 10-2-401 or 10-2-404 may be issued an insurance producer license. An insurance producer may receive qualification for a single license to include one or more of the following lines of authority: (f) Bail bonding agent including a surety agent, as defined in section 12-7-101 (1), C.R.S., a cash bonding agent, as defined in section 12-7-102 (1), C.R.S., and a professional cash bail agent, as defined in section 12-7-101 (7), C.R.S.; SECTION 6. Repeal. 10-2-415.5, Colorado Revised Statutes, is repealed as follows: 10-2-415.5. Appointment of insurance producer bail bonding agent - continuation - renewal - exceptions. (1) No insurance producer with bail bonding agent authority as set forth in section 10-2-407 (1) (f) shall claim to be a representative or authorized or appointed agent of, or use any other term implying a contractual relationship with, a particular insurer or accept applications on behalf of such insurer unless such insurance producer becomes, pursuant to a contract in writing, a producer appointee, appointed by that insurer in accordance with this section, to act in the capacity of an agent of the insurer. (2) (a) An insurer shall notify the commissioner of each producer bail bonding agent appointment. Each insurer shall file with the commissioner, monthly or at such other less frequent intervals as the commissioner may prescribe, a current list of insurance producers that it has appointed to solicit business on its behalf. The list shall contain all relevant appointment information as prescribed by the commissioner, including the effective date of appointment. (b) Subject to renewal, each insurance producer bail bonding agent appointment shall remain in effect until: (I) The insurance producer's license is allowed to expire, discontinued, or cancelled by the insurance producer bail bonding agent or revoked by the commissioner; or (II) Notice of termination of the appointment is filed with the commissioner by the insurer. (3) Each active insurance producer bail bonding agent appointment shall be subject to renewal on October 1 of the renewal year. The division shall provide a list of active insurance producer appointees to the insurer along with a renewal invoice stating the fee required for the renewal of each active insurance producer bail bonding agent appointment. (4) Any appointment that is not renewed on or before October 1 shall be deemed to have expired or been discontinued, effective on that date; except that the commissioner may renew an insurer's appointment upon receipt of the renewal invoice together with the renewal fees due and any applicable late fee. SECTION 7. 10-2-415.7, Colorado Revised Statutes, is amended to read: 10-2-415.7. Termination of bail bonding agent - notice - penalty. (1) Upon the termination of the appointment of an insurance producer a bail bonding agent that the insurer has appointed or engaged or with whom the insurer has contracted, the insurer shall, within fifteen days, notify the commissioner state bail bonding agent board created in section 12-7-101.5, C.R.S., also referred to in this section as the "board", and the appointee of such termination by certified mail. (2) If the termination of an agent's appointment is for any of the causes listed in section 10-1-128, 10-2-801, 12-7-106, or 12-7-109, C.R.S., the insurer shall notify the commissioner state bail bonding agent board of the reason and, if the commissioner board so requests, the insurer shall provide any information, records, statements, or other data pertaining to the termination that may be used by the division board in any action taken pursuant to sections 10-2-801 and section 12-7-106, C.R.S. (3) Any information, documents, records, or statements provided pursuant to this section shall be are privileged, and there shall be is no liability on the part of, nor shall a cause of action of any nature arise against, the division board, the insurance company, or any authorized representative for requesting or providing such the information, documents, records, or statements; except that such the information may be used by the division board to pursue administrative or criminal prosecutions action. (4) In addition to any other penalty or liability authorized by law, the failure or refusal of any insurer to comply with the requirements of subsection (1) or (2) of this section shall be is cause for the assessment against the insurer of a civil penalty of up to one thousand dollars for each such failure or refusal if, after notice to the insurer and after a hearing in accordance with section 24-4-105, C.R.S., the commissioner finds that the insurer has violated this section. SECTION 8. The introductory portion to 10-2-502 (1), Colorado Revised Statutes, is amended to read: 10-2-502. Nonresident licensing - qualification. (1) Except for individuals or entities writing bail, The commissioner may qualify an applicant as a nonresident, unless the applicant is denied licensure pursuant to section 10-2-801, and shall issue an insurance producer license to any qualified nonresident person in accordance with the following: SECTION 9. 16-4-112 (2) (c), Colorado Revised Statutes, is amended to read: 16-4-112. Enforcement procedures for compensated sureties - definitions. (2) As used in this section, unless the context otherwise requires: (c) "Compensated surety" means any a person in the business of writing bail appearance bonds, who is subject to regulation by the division of insurance in the department of regulatory agencies, including bonding agents and bail insurance companies. Nothing in this paragraph (c) shall be construed to authorize bail insurance companies to write bail bonds except through licensed bail bonding agents. SECTION 10. 22-41-101 (2), Colorado Revised Statutes, is amended to read: 22-41-101. Composition of fund. (2) (a) The public school fund of the state shall consist consists of the proceeds of such lands as have been, or may be, granted to the state by the federal government for educational purposes; all estates that may escheat to the state; all other grants, gifts, or devises that may be made to the state for educational purposes; and such other moneys as the general assembly may appropriate or transfer. (b) The public school fund includes premium taxes collected from bail bonding agents pursuant to section 12-7-111, C.R.S. SECTION 11. 24-31-303 (1) (h), Colorado Revised Statutes, is amended to read: 24-31-303. Duties - powers of the P.O.S.T. board. (1) The P.O.S.T. board has the following duties: (h) To establish standards for training in bail recovery practices under sections 12-7-102.5 (1) (b) (1) (a) and 12-7-105.5 (1) (b), C.R.S. The board shall establish such standards on or before October 1, 1998. SECTION 12. Repeal. 2-3-1203 (3) (z) (III), Colorado Revised Statutes, is repealed as follows: 2-3-1203. Sunset review of advisory committees. (3) The following dates are the dates for which the statutory authorization for the designated advisory committees is scheduled for repeal: (z) July 1, 2013: (III) The advisory committee to the division of insurance regarding bail bond issues, created in section 12-7-104.5, C.R.S.; SECTION 13. Repeal. 24-34-104 (43) (f), Colorado Revised Statutes, is repealed as follows: 24-34-104. General assembly review of regulatory agencies and functions for termination, continuation, or reestablishment. (43) The following agencies, functions, or both, shall terminate on July 1, 2012: (f) The licensing of bail bonding agents through the division of insurance in accordance with article 7 of title 12, C.R.S.; SECTION 14. 24-34-104, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SUBSECTION to read: 24-34-104. General assembly review of regulatory agencies and functions for termination, continuation, or reestablishment. (52.5) The following agencies, functions, or both, shall terminate on September 1, 2021: (a) The regulation of bail bonding agents by the state bail bonding agent board in accordance with article 7 of title 12, C.R.S. SECTION 15. Applicability. This act shall apply to bail bonding agent licenses applied for on or after the effective date of this act. SECTION 16. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.