SB 0950 - Fiscal Note

Fiscal Note - SB 0950 - Regulation of Bail Bondsmen

L.R. NO.  3551-01
BILL NO.  SB 950
SUBJECT:  Bail Bond Agents, Department of insurance, Courts
TYPE:     Original
DATE:     March 19, 1996




                              FISCAL SUMMARY

                    ESTIMATED NET EFFECT ON STATE FUNDS

FUND AFFECTED               FY 1997         FY 1998         FY 1999

General Revenue           ($70,457)       ($86,696)       ($88,863)

Insurance
Dedicated                 ($27,456)       ($27,000)       ($27,690)

Total Estimated
Net Effect on All
State Funds               ($97,913)      ($113,696)      ($116,553)


                   ESTIMATED NET EFFECT ON FEDERAL FUNDS

FUND AFFECTED               FY 1997         FY 1998         FY 1999

Total Estimated
Net Effect on All
Federal Funds                    $0              $0              $0


                    ESTIMATED NET EFFECT ON LOCAL FUNDS

FUND AFFECTED               FY 1997         FY 1998         FY 1999

Local Government                 $0              $0              $0


                         FISCAL ANALYSIS

ASSUMPTION

Officials from the Department of Insurance (INS) reported that this proposal
requires additional administrative duties to be performed by INS.  These
duties include additional communication between the clerk of the court and
INS, sureties registered with the department, and presiding judges in each
circuit court of the state.  Additional license preparation duties are also
included. The INS currently has 550 bail bond agents and 91 general bail bond
agents and corporations licensed. INS request one Clerk Typist III to
communicate between the courts, judges, and sureties from the INS and
internal communication between the licensing section and the legal section
which would be responsible for license suspensions.  Also additional license
preparation duties inscribing liability limits on licenses for each bail
bondsman registered with the INS.

Officials from the Office of State Courts Administrator (CTS) stated that the
proposal would make a number of changes including requiring notice to the
Department of Insurance upon initial declaration of bond forfeiture,
providing confidential status to certain documents , and requiring court
clerks to keep additional records of bail bonds. CTS estimates these changes
would result in an additional four minutes per case on approximately 100,000
cases annually. CTS estimates that this would result in an additional 3.5
FTEs statewide.

Officials from the Department of Corrections (DOC), Office of Prosecution
Services (OPS), Missouri Sheriff's's Association, Office of the Attorney
General (AGO),  Department of Economic Development (DED), and the Department
of Public Safety (DPS) stated that passage of this legislation would have no
fiscal impact on their agency.


FISCAL IMPACT - State Government     FY 1997   FY 1998   FY 1999
                                 (10 Months)


GENERAL REVENUE FUND

Cost - Office of State Courts
Administrator

Personal Services                  ($53,899) ($66,322) ($67,980)

Fringe Benefits                    ($16,558) ($20,374) ($20,883)

Total Cost to Department           ($70,457) ($86,696) ($88,863)

Estimated Net Effect on General
Revenue Fund                       ($70,457) ($86,696) ($88,863)


FISCAL IMPACT - State Government     FY 1997   FY 1998   FY 1999
                                 (10 Months)

INSURANCE DEDICATED FUND

Cost - Department of Insurance

Personal Services                  ($14,836) ($18,256) ($18,712)

Fringe Benefits                     ($4,558)  ($5,608)  ($5,748)

Expense and Equipment               ($8,062)  ($3,136)  ($3,230)

Total Cost to Department of
Insurance                          ($27,456) ($27,000) ($27,690)

Estimated Net Effect on Insurance
Dedicated Fund                     ($27,456) ($27,000) ($27,690)


DESCRIPTION

This act imposes the following new regulations upon bail bondsmen: A person,
in applying to be a bail bond agent, must show:  1) that he is at least 21
and a U.S. citizen;  2) has a net worth in  liquid assets of at least
$10,000; 3) has not been convicted of a felony; 4) is not an attorney; 5) is
not an elected or appointed official or public employee; and 6) has no
outstanding forfeitures or unsatisfied judgments upon such forfeitures on any
bail bond in this or any other state. A complaint may be filed against any
person who has failed to renew or who has surrendered his license for failing
to satisfy any bond forfeiture judgment within the time specified by the
court.  A procedure is established to enter a judgment against a defendant
and his sureties when the defendant fails to appear for trial.  If any such
judgment is not paid within ten days, the Director of the Department of
Insurance may draw upon the assets of the bondsman and may suspend the
bondsman's license. No bond may be executed if such bond exceeds ten percent
of the bondsman's net worth.  A bondsman may request the Director of the
Department of Insurance to license bail bond agents that he  employs. The
bondsman shall appoint such agents by power of attorney.  The clerk of the
court shall keep records in the permanent case record of each bail bond that
is posted.

This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.


SOURCES OF INFORMATION

Department of Insurance
Office of State Courts Administrator
Department of Economic Development
Department of Corrections
Department of Public Safety
Office of Prosecution Services
Office of the Attorney General
Missouri Sheriffs' Association