Background:

The Bail Practices Work Group (Work Group) was created in chapter 256 of the Laws of 2010 to study bail practices and procedures in a comprehensive manner and make recommendations to the Governor, the Washington Supreme Court, and the Legislature. The Work Group issued a report with unanimous recommendations on December 1, 2010.

A "bail bond agency" means a business that sells and issues corporate surety bail bonds or that provides security in the form of personal or real property to ensure the appearance of a criminal defendant before the courts of this state or the United States.

A "bail bond recovery agent" means a person who is under contract with a bail bond agent to receive compensation, reward, or any other form of lawful consideration for locating, apprehending, and surrendering a fugitive criminal defendant for whom a bail bond has been posted. "Bail bond recovery agent" does not include a general authority Washington peace officer or a limited authority Washington peace officer.

Notification of Failure to Appear.

If a court does not notify a surety of a defendant's failure to appear within 30 calendar days of the date of appearance, the forfeiture is null and void and the recognizance is exonerated. The parties may stay the execution of the forfeiture judgment for 60 days by giving a bond with two sureties.

Surrender.

A surety may surrender, or return to custody, a person under their bond if the surrender is accompanied by a notice of forfeiture or a notarized affidavit specifying the reasons for the surrender. The surrender shall be made to the facility in which the person was originally held in custody or the county or city jail affiliated with the court issuing the warrant resulting in bail.

Licensing.

An applicant for licensure as a bail bond recovery agent must complete a records check, with fingerprints, through the Washington State Patrol (WSP) and the Federal Bureau of Investigation (FBI) at the applicant's expense. A background investigation may also be done for license renewals.

For a bail bond agency license to be issued, the agency must file with the director a bond for $10,000 or maintain an interest-bearing account with a $10,000 balance.

Trust Accounts.

Bail bond agents who hold collateral or security for persons held under their bond are fiduciaries of that property. Accordingly, they must maintain adequate records and keep all funds received as collateral or security in a trust account. The agent must annually report the account number and balance of the trust account.

Summary of Bill:

House Bill 2668 incorporates several of the unanimous recommendations of the Work Group, amending chapter 19 of Title 10 and chapter 185 of Title 18 of the RCW.

Notification of Failure to Appear.

House Bill 2688 shortens the period by which a surety must be notified of a defendant's failure to appear. If a defendant fails to appear, the recognizance will be declared forfeited and the surety must be notified in writing. If the surety is not notified within a certain period of time, the forfeiture will be invalidated. The period of time for notification is shortened from 30 days to 14 days.

Surrender.

House Bill 2688 only allows a surety to return a person under their bond to custody for good cause. If a court determines that good cause does not exist, the surety must return the premium paid by or for the person and any recovery fee. Good cause includes, but is not limited to:

a substantial increase in the risk of flight;
violation of a court order;
failure to appear; or
the concealment or intentional misrepresentations of information by the person.

Good cause may not include failure to make timely payments to the surety for the bond premium. If a bail bond agent violates this section, it is unprofessional conduct.

Unprofessional Conduct.

House Bill 2688 expands the statutory definition of "unprofessional conduct" to include:

entering into a contract, including a general power of attorney, which gives the bail bond agent full authority over the person's finances, assets, real property, or personal property;
surrendering a person without good cause; and
when requested, failing to reasonably disclose to law enforcement information about the location of a fugitive criminal defendant.

Licensing and Certification.

Under the bill, an applicant for licensure as a bail bond recovery agent or a bail bond agent must to complete a records check, with fingerprints, through the WSP and the FBI at the applicant's expense. A background investigation may also be done for license renewals.

The bill creates a distinction between a "property bond agency," which issues bail bonds executed for compensation the security for which is real property, tangible personal property or other assets, and a "surety bond agency," which issues bail bonds that are guaranteed by an insurance company that had been qualified to transact surety insurance business in Washington by the Insurance Commissioner.

The bill amends the bond requirements for licensing of a bail bond agency from $10,000 to $10,000 for a bail bond agency and $100,000 for a property bond agency.

If a court revokes or reinstates the certification of a bail bond agent, the presiding judge of the court must notify the Administrative Office of the Courts (AOC) of the revocation or reinstatement and the reasons for the action. The AOC must then notify superior courts and courts of limited jurisdiction statewide.

Trust Accounts.

Trust accounts, which every agent who receives collateral or security must maintain, may be audited by the Department of Licensing (department) every two years, unless the licensee regularly submits a financial report prepared by a certified public accountant to the department.