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S. 778
STATUS INFORMATION
General Bill
Sponsors: Senator Knotts
Document Path: l:\council\bills\ms\7334ahb07.doc
Introduced in the Senate on May 22, 2007
Currently residing in the Senate Committee on Banking and Insurance
Summary: Surety bonds
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 5/22/2007 Senate Introduced and read first time SJ-8 5/22/2007 Senate Referred to Committee on Banking and Insurance SJ-8
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
TO AMEND SECTION 38-53-40, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SURETY QUALIFICATIONS, SO AS TO DELETE THE LANGUAGE REGARDING AN INSURER REPRESENTED BY A SURETY BONDSMAN; TO AMEND SECTION 38-53-50, RELATING TO A SURETY'S RELIEF FROM BOND, SURRENDER OF A DEFENDANT, AND THE FILING OF A NEW UNDERTAKING, SO AS TO DELETE THAT A SURETY MAY BE RELIEVED FOR NONPAYMENT OF FEES AND TO CREATE A TEN-DOLLAR FILING FEE WHEN RELIEF FROM BOND IS SOUGHT BY A SURETY; TO AMEND SECTION 38-53-70, AS AMENDED, RELATING TO ISSUANCE OF A BENCH WARRANT FOR FAILURE TO APPEAR, SO AS TO REQUIRE NOTIFICATION OF THE SURETY WITHIN A CERTAIN TIMEFRAME OF THE ISSUANCE OF THE BENCH WARRANT AND TO INCREASE THE TIME PERIOD AFTER WHICH BOND IS FORFEITED FROM THIRTY DAYS TO NINETY DAYS AFTER THE ISSUANCE OF THE BENCH WARRANT; TO AMEND SECTION 38-53-85, RELATING TO EDUCATIONAL REQUIREMENTS OF A PROFESSIONAL BONDSMAN, SURETY BONDSMAN, AND RUNNERS, SO AS TO DELETE AN OBSOLETE REFERENCE; TO AMEND SECTION 38-53-170, RELATING TO PROHIBITIONS REGARDING A PROFESSIONAL BONDSMAN, SURETY BONDSMAN, OR RUNNER, SO AS TO REPLACE THE TERM "PRINCIPAL" WITH THE TERM "INDEMNITOR"; AND TO AMEND SECTION 38-53-260, RELATING TO REGISTRATION OF PROFESSIONAL BONDSMAN OR SURETY BONDSMAN'S LICENSE AND THE CURRENT POWER OF APPOINTMENT, SO AS TO MANDATE THAT ALL JAILS POST THE NAME AND TELEPHONE NUMBER OF EACH LICENSED BONDING OR SURETY COMPANY FOR A FIFTY-DOLLAR ANNUAL FEE.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 38-53-40 of the 1976 Code is amended to read:
"Section 38-53-40. Each surety for the release of a person on bail must be qualified as:
(a) (1) an insurer and represented by a surety bondsman;
(b) (2) a professional bondsman; or
(c) (3) an accommodation bondsman."
SECTION 2. Section 38-53-50 of the 1976 Code is amended to read:
"Section 38-53-50. (A) A surety desiring to be relieved on a bond for "good cause" or the nonpayment of fees shall file with the court a motion to be relieved on the bond and shall pay a ten-dollar filing fee to be used by the clerk of court in his discretion. A copy of the motion must be served upon the defendant, his attorney, and the solicitor's office, and the magistrates or municipal court, as appropriate. The court then shall then schedule a hearing to determine if the surety should be relieved on the bond and advise all parties of the hearing date.
(B) If the circumstances warrant immediate incarceration of the defendant to prevent imminent violation of any one of the specific terms of the bail bond, or if the defendant has violated any one of the specific terms of the bond, the surety may take the defendant to the appropriate detention facility for holding until the court orders that the surety be relieved. The surety immediately must immediately file with the detention facility and the court an affidavit stating the facts to support the surrender of the defendant for good cause or the nonpayment of fees. When the affidavit is filed with the court, the surety must also file a motion to be relieved on the bond pursuant to subsection (A). A surety who surrenders a defendant and files an affidavit which does not show good cause or the nonpayment of fees is subject to penalties imposed for perjury as provided for in pursuant to Article 1, Chapter 9 of Title 16.
(C) After the surety has been is relieved by order of the court, a new undertaking must be filed with the appropriate court in order to secure the re-release subsequent release of the defendant. The undertaking must contain the same conditions included in the original bond unless the conditions have been changed by the court."
SECTION 3. Section 38-53-70 of the 1976 Code, as last amended by Act 329 of 2002, is further amended to read:
"Section 38-53-70. If a defendant fails to appear at a court proceeding to which he has been summoned, the court must issue a bench warrant for the defendant. The surety must be notified by the solicitor's office or magistrates or municipal court by first class mail no later than three days after issuance of a bench warrant. If the surety fails to surrender the defendant or place a hold on the defendant's release from incarceration, commitment, or institutionalization within thirty ninety days of the issuance of the bench warrant, the bond shall be is forfeited. At any time Before execution is issued on a judgment of forfeiture against a defendant or his surety, the court may direct that the judgment be remitted in whole or in part, upon conditions as the court may impose, if it appears that justice requires the remission of part or all of the judgment. In making a determination as to remission of the judgment, the court shall consider the costs to the State or any a county or municipality resulting from the necessity to continue or terminate the defendant's trial and the efforts of law enforcement officers or agencies to locate the defendant. The court in its discretion may must permit the surety to pay the estreatment in installments for a period of up to six months; however, the surety must pay a handling fee to the court in an amount equal to four percent of the value of the bond which must be retained by the clerk of court to be used in his discretion. The clerk of court is authorized to suspend the surety for failure to satisfy a final estreatment judgment order by the court. If, at any time during the period in which installments are to be paid, the defendant is surrendered to the appropriate a detention facility and the surety complies with the re-commitment recommitment procedures, the surety is relieved of any further liability."
SECTION 4. Section 38-53-85(C) of the 1976 Code is amended to read:
"(C) The South Carolina Bail Agent's Association or any other Any group or association approved by the Department of Insurance to provide educational courses to bondsmen must establish an educational curriculum for bondsman licensure. The Department of Insurance must approve the courses offered and ensure that the courses meet the standards for education established by this section and the department. The requirement of course work for licensure is not satisfied by a mail order course. The department must also approve a written examination to be administered by all groups who provide educational courses to be administered at the conclusion of the twenty-hour course work."
SECTION 5. Section 38-53-170 of the 1976 Code is amended to read:
"Section 38-53-170. No bondsman or runner A professional bondsman, surety bondsman, or runner may not:
(a)(1) pay a fee or rebate or give or promise anything of value, directly or indirectly, to a jailer, law enforcement officer, committing magistrate, or any other another person who has power to arrest or hold in custody, or to any a public official or public employee in order to secure a settlement, compromise, remission, or reduction of the amount of any a bail bond or the forfeiture of the bail bond, including the payment to the law enforcement officers, directly or indirectly, for the arrest or apprehension of a principal or principals who have caused a forfeiture;
(b)(2) 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;
(c)(3) pay a fee or rebate or give or promise anything of value to the principal or anyone in on his behalf;
(d)(4) participate in the capacity of an attorney at a trial or hearing of one on whose bond he is surety, nor suggest or advise the employment of or name for employment any a particular attorney to represent the principal;
(e)(5) accept anything of value from a principal an indemnitor except the premium, which may not exceed fifteen percent of the face amount of the bond, with a minimum fee of twenty-five dollars. However, the bondsman is permitted to accept collateral security or other indemnity from the principal indemnitor which must be returned upon final termination of liability on the bond. The bondsman shall identify who is paying the premium and shall represent that the collateral security or other indemnity has not been obtained from any a person who has a greater interest in the principal's indemnitor's disappearance than appearance for trial. The collateral security or other indemnity required by the bondsman must be reasonable in relation to the amount of the bond;
(f)(6) solicit business in any one of the courts or on the premises of any one of the courts of this State, in the office of any a magistrate, or in or about any a place where prisoners are confined. Law enforcement officers and jailers shall report any violations of this provision to the court. Any Action taken pursuant to this provision resulting in a conviction, guilty plea, or plea of nolo contendere pursuant to Section 38-53-340 must be reported to the director or his designee by the court within thirty days;
(g)(7) advise or assist the principal indemnitor for the purpose of forfeiting bond."
SECTION 6. Section 38-53-260 of the 1976 Code is amended to read:
"Section 38-53-260. (A) No A professional bondsman or surety bondsman may not become a surety on an undertaking unless he has registered his current license in the office of the clerk of the circuit court in the county in which he resides and registered a certified copy of the license with the clerk of the circuit court in any other another county in which he writes bail bonds.
(B) A surety bondsman also shall also annually register annually a certified copy of his current power of appointment with the clerk of the circuit court where he resides and in any other another county where he writes bail bonds on behalf of an insurer.
(C) All jails shall post the name and telephone number of each bonding or surety company licensed by the Department of Insurance for a fee of not more than fifty dollars annually."
SECTION 7. This act takes effect upon approval by the Governor.
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