GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2011

H                                                                                                                                                   2

HOUSE BILL 649

Committee Substitute Favorable 5/16/11

 

Short Title:        Amend Grounds/License Revocat'n/Bail Bondsman.

(Public)

Sponsors:

 

Referred to:

 

April 6, 2011

A BILL TO BE ENTITLED

AN ACT to Amend the laws pertaining to grounds for revocation of licensure under the laws regulating bail bondsmen.

The General Assembly of North Carolina enacts:

SECTION 1.  Article 71 of Chapter 58 of the General Statutes is amended by adding a new section to read:

"§ 58-71-16.  No return of premium; bond reduction.

Notwithstanding any other provision of law or rules adopted by the Commissioner under this Article, if after an agreement has been entered into between a defendant and a surety the defendant's bond is reduced, the surety shall not be required to return any portion of the premium to the defendant."

SECTION 2.  G.S. 58-71-80 reads as rewritten:

"§ 58-71-80.  Grounds for denial, suspension, revocation or refusal to renew licenses.probation, revocation, or nonrenewal of licenses.

(a)        The Commissioner may deny, place on probation, suspend, revoke, or refuse to renew any license issued under this Article Article, in accordance with the provisions of Article 3A of Chapter 150B of the General Statutes, for any one or more of the following causes:

…

(5)        Fraudulent Fraudulent, coercive, or dishonest practices in the conduct of business under the license.or demonstrating incompetence, untrustworthiness, or financial irresponsibility in the conduct of business in this State or any other jurisdiction.

(6)        Conviction of a crime involving dishonesty, breach of trust, or moral turpitude.

(7)        Failure to comply with or violation of the provisions of this Article or of any order, subpoena, rule or regulation of the Commissioner.Commissioner or person with similar regulatory authority in another jurisdiction.

…

(14a)    Having any professional license denied, suspended, or revoked in this State or any other jurisdiction for causes substantially similar to those listed in this subsection.

(14b)    Violating any (i) law governing bail bonding or insurance in this State or any other jurisdiction or (ii) rule of the Financial Industry Regulatory Authority (FINRA).

(14c)    Failing to comply with an administrative order or court order imposing a child support obligation after entry of a final judgment or order finding the violation to have been willful.

(14d)    Failing to pay State income tax or comply with any administrative or court order directing payment of State income tax after entry of a final judgment or order finding the violation to have been willful.

(14e)    Forging another's name to any document related to a bail bond transaction.

…."

SECTION 3.  G.S. 58-71-115 is amended by adding the following new subsection to read:

"(c)       Notwithstanding any other provision of this Article, any documents, materials, or other information in the control or possession of the Commissioner or any organization of which the Commissioner is a member that are (i) furnished by an insurer or an employee or agent thereof acting on behalf of the insurer under this section or (ii) obtained by the Commissioner in an investigation under this section shall be confidential, by law, and privileged, shall not be considered public records under G.S. 58-2-100 or Chapter 132 of the General Statutes, shall not be subject to subpoena, and shall not be subject to discovery in any civil action other than a proceeding brought by the Commissioner against a person to whom the documents, materials, or other information relate. However, the Commissioner may use the documents, materials, or other information in the furtherance of any regulatory or legal action brought as a part of the Commissioner's duties. Neither the Commissioner nor any person who received documents, materials, or other information while acting under the authority of the Commissioner shall be permitted or required to testify in any civil action other than a proceeding brought by the Commissioner against a person to whom the documents, materials, or other information relate."

SECTION 4.  Article 71 of Chapter 58 of the General Statutes is amended by adding a new section to read:

"§ 58-71-122.  Transfer of business by bail bondsman.

A licensed professional bondsman may contract to transfer, convey, or assign the professional bondsman's business to another professional bondsman licensed under this Article. The contract shall include a list of the transferring professional bondsman's pending outstanding bail bond obligations and shall be filed with the Commissioner. The contract shall allow for the transferring professional bondsman to transfer, convey, or assign assets to the purchasing professional bondsman that include, but are not limited to, any pledged cash or any pledged approved securities with the Commissioner as security for bail bonds. Notwithstanding the filing of the contract with the Commissioner, the transferor remains responsible for all outstanding bond obligations until relieved from an individual obligation pursuant to G.S. 15A-534(h), by a substitution of surety pursuant to G.S. 15A-538, or satisfaction of any final judgment of forfeiture entered thereon."

SECTION 5.  This act is effective when it becomes law.