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Second Regular Session
Sixty-first General Assembly
LLS NO. 980838.01D JLB
HOUSE BILL 981392
STATE OF COLORADO
BY REPRESENTATIVE Reeser
STATE, VETERANS & MILITARY
A BILL FOR AN ACT
CONCERNING BAIL BONDING AGENTS.
(Note: This summary applies to this bill as introduced
and does not necessarily reflect any amendments that may be subsequently
Increases the prelicensure education requirement for bail bonding agents from 8 to 80 hours. States that such education shall consist of 25 hours of handson training with a licensed bail bonding agent, 15 hours of court procedures and ethics, 20 hours of bookkeeping and collateral procedures, and 20 hours concerning the recovery of fugitives.
Eliminates provisions authorizing the suspension of an agent's license when a judgment is not paid in a reasonable time, and replaces such provisions with a prohibition against any court accepting a person as a bail bonding agent, cash bonding agent, or surety company if such court entered judgment against such person or company on a forfeited bail bond, and such judgment remains unpaid for at least 45 days plus any additional period during which the court stayed such judgment. Makes such provision inapplicable until an appeal or other action at law filed concerning such judgment is final. Prohibits any agent or surety from using such provisions as a defense to liability on a bond accepted by a court if an order of forfeiture was entered on such bond, and the judgment remains unpaid in violation of such provisions.
Makes it a prohibited activity to act as a bail bonding agent if judgment has been entered on the forfeiture of a bond issued by such agent and such judgment remains unpaid for at least 45 days plus any additional period during which the court stayed such judgment.
Requires that reasonable notice be given to the surety whenever application for modification of a bond is made by the defendant, district attorney, or a court.
States that the surety or principal of a bail bond shall be exonerated from liability no later than 2 years after the date of issuance of such bond.
Increases from 30 days to 180 days the period after
a forfeiture during which a defendant must appear and surrender
to a court or such court may enter a judgment for the amount of
the bail and court costs. Requires a court to vacate its judgment
and refund the amount paid on a forfeited bail bond, less any
court costs, if a defendant is apprehended or has surrendered
within one year after payment of such judgment.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. 127102.5 (1), Colorado Revised Statutes, is amended to read:
education requirements exemptions.
(1) As a condition of initial licensure and qualification
as a bail bonding agent, the commissioner shall require each applicant
to submit evidence of satisfactory completion of an approved prelicensure
education or training course. Such education or training shall
consist of at least
EIGHTY hours, two of which shall concern
the criminal court system, two TWENTYFIVE
OF WHICH SHALL INVOLVE HANDSON TRAINING WITH A LICENSED
BAIL BONDING AGENT, FIFTEEN of which shall concern bail bond industry
ethics AND COURT PROCEDURES, and four
of which shall concern the laws relating to bail bonds
TWENTY OF WHICH SHALL CONCERN BOOKKEEPING AND COLLATERAL PROCEDURES,
AND TWENTY OF WHICH SHALL CONCERN THE RECOVERY OF FUGITIVES.
SECTION 2. 127103 (3) (b) and (3) (c), Colorado Revised Statutes, are amended to read:
127103. License requirements
application qualification bond forfeiture.
(3) (b) If any bond issued by a cash bonding agent
is declared forfeited, and judgment is entered thereon by a court
of proper jurisdiction, and the judgment is served upon the bail
bonding agent, personally or by certified mail, within ten days
after the entry of said judgment, and the amount of the bond is
not paid within a reasonable time to be determined by the court
but not less than fortyfive days,
more than ninety days, such court
shall order the division to declare the qualification bond of
such cash bonding agent to be forfeited after a hearing as provided
in section 127106 (2). The division 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 cash bonding agent and declared forfeited by the court or
the amount of the qualification bond, whichever is the smaller
amount. The division shall suspend
the license of such 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.
SUCH ORDER SHALL BE COMPLIED WITH IN A REASONABLE TIME TO BE
DETERMINED BY THE COURT, BUT NOT LESS THAN FORTYFIVE DAYS.
IF SUCH ORDER IS NOT COMPLIED WITH IN SUCH REASONABLE TIME, THE
PROVISIONS OF SECTION 164112, C.R.S., SHALL APPLY.
(c) If any bond issued by a surety and
bail bonding agent is declared forfeited by a court of proper
jurisdiction, notice of any judgment entered thereon must be served
upon both the surety and bail bonding agent, personally or by
certified mail, within ten days after the entry of said judgment.
If the judgment is not paid within
a reasonable time, to be determined by the court, but not less
than fortyfive days or more than ninety days, the court
shall order the division to suspend the license of said bail bonding
agent, after hearing pursuant to section 102801, C.R.S.,
until such time as all forfeitures and judgments ordered and entered
against said bail bonding agent have been certified as paid or
vacated by order of a court of record. The division shall also
order the surety on the bond to pay the judgment after notice
and hearing pursuant to sections 244104 and 245105,
C.R.S. SUCH JUDGMENT SHALL BE PAID
WITHIN A REASONABLE TIME, TO BE DETERMINED BY THE COURT, BUT NOT
LESS THAN FORTYFIVE DAYS. IF A JUDGMENT IS NOT PAID WITHIN
SUCH REASONABLE TIME, THE PROVISIONS OF SECTION 164112,
C.R.S., SHALL APPLY.
SECTION 3. 127109 (1) (g), Colorado Revised Statutes, is amended to read:
127109. Prohibited activities penalties. (1) It is unlawful for any licensee under this article to engage in any of the following activities:
(g) Act as a bail bonding agent in any
court of record in this state if
licensee is in default in securing any person's bond
JUDGMENT HAS BEEN ENTERED AGAINST SUCH AGENT PURSUANT TO SECTION
127103 (3) (b) OR (3) (c), AND REMAINS UNPAID AFTER
THE EXPIRATION OF THE FOLLOWING:
(I) A REASONABLE TIME TO BE DETERMINED BY THE COURT, BUT NOT LESS THAN FORTYFIVE DAYS; AND
(II) ANY ADDITIONAL PERIOD GRANTED BY THE COURT FOR PAYMENT OF SUCH JUDGMENT PURSUANT TO A STAY OF EXECUTION.
SECTION 4. 164107 (2) and (3), Colorado Revised Statutes, are amended to read:
164107. Reduction or increase of bail change in type of bond. (2) Reasonable notice of an application for modification of a bond by the defendant shall be given to the district attorney AND ALL SURETIES.
(3) Reasonable notice of application for modification of a bond by the district attorney OR A COURT shall be given to the defendant AND ALL SURETIES, except as provided in subsection (4) of this section.
SECTION 5. 164108 (1), Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW PARAGRAPH to read:
164108. Exoneration from bond liability. (1) Any person executing a bail bond as principal or as surety shall be exonerated as follows:
(e) THE SURETY OR PRINCIPAL SHALL BE EXONERATED NO LATER THAN TWO YEARS AFTER THE DATE OF ISSUANCE OF ANY BAIL BOND.
SECTION 6. 164109 (2) and (4), Colorado Revised Statutes, are amended to read:
164109. Disposition of
security deposits upon forfeiture or termination of bond.
(2) Where the defendant has been released upon deposit
of cash, stocks, bonds, or property or upon a surety bond,
by property, if the defendant fails
to appear in accordance with the primary condition of the bond,
the court shall declare a forfeiture. Notice of the order of
forfeiture shall be mailed by the court to the defendant, all
sureties, and all depositors or assignees of any deposits of cash
or property if such sureties, depositors, or assignees have direct
contact with the court, at their lastknown addresses. Such
notice shall be sent within ten days after the entry of the order
of forfeiture. If the defendant does not appear and surrender
to the court having jurisdiction within thirty
ONE HUNDRED EIGHTY days from the date of the forfeiture or within
that period satisfy the court that appearance and surrender by
the defendant is impossible and without fault by such defendant,
the court may enter judgment for the state against the defendant
for the amount of the bail and costs of the court proceedings.
IF THE DEFENDANT APPEARS BEFORE THE COURT WITHIN SUCH ONEHUNDREDEIGHTYDAY
PERIOD, THE COURT SHALL VACATE THE JUDGMENT OR FORFEITURE PROCEEDINGS
ON IT OWN MOTION AND EXONERATE THE SURETY. Any cash deposits
made with the clerk of the court shall be applied to the payment
of costs. If any amount of such cash deposit remains after the
payment of costs, it shall be applied to payment of the judgment.
(4) If, within one year after PAYMENT
the person who executed
the forfeited bond as principal or as surety effects the apprehension
or surrender of the defendant to the sheriff of the county from
which the bond was taken or to the court which granted the bond,
the court may vacate the judgment and order a remission less necessary
and actual costs of the court. THE
DEFENDANT IS APPREHENDED OR HAS SURRENDERED TO THE COURT OR TO
THE SHERIFF IN THE COUNTY IN WHICH THE BOND WAS TAKEN, THE COURT
THAT GRANTED SUCH BOND SHALL VACATE THE JUDGMENT AND REFUND THE
AMOUNT PAID LESS ANY COURT COSTS.
SECTION 7. Part 1 of article 4 of title 16, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SECTION to read:
164112. Unpaid judgments penalty agents and sureties. (1) NO COURT SHALL ACCEPT ANY PERSON OR CORPORATION AS A BAIL BONDING AGENT, CASH BONDING AGENT, OR SURETY IF SUCH COURT HAS ENTERED JUDGMENT AGAINST SUCH AGENT OR SURETY ON A FORFEITED BOND AND SUCH JUDGMENT REMAINS UNPAID AFTER THE EXPIRATION OF THE FOLLOWING:
(a) A REASONABLE TIME TO BE DETERMINED BY THE COURT BUT NOT LESS THAN FORTYFIVE DAYS; AND
(b) ANY ADDITIONAL PERIOD GRANTED BY THE COURT FOR PAYMENT OF SUCH JUDGMENT PURSUANT TO A STAY OF EXECUTION.
(2) SUBSECTION (1) OF THIS SECTION SHALL NOT APPLY TO A JUDGMENT UNTIL ALL APPEALS OR OTHER ACTIONS AT LAW CONCERNING SUCH JUDGMENT ARE FINAL SO LONG AS THE COURT RECEIVES NOTICE OF SUCH APPEALS OR ACTIONS ON OR BEFORE THE DATE PAYMENT OF SUCH JUDGMENT IS DUE.
(3) SUBSECTION (1) OF THIS SECTION SHALL NOT BE USED BY ANY BAIL BONDING AGENT, CASH BONDING AGENT, OR SURETY AS A DEFENSE TO LIABILITY ON ANY BOND ACCEPTED BY A COURT IF AN ORDER OF FORFEITURE HAS BEEN ENTERED ON SUCH BOND AND THE JUDGMENT REMAINS UNPAID IN VIOLATION OF SUBSECTION (1) OF THIS SECTION.
SECTION 8. 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.