WSR 00-01-061

PERMANENT RULES

DEPARTMENT OF LICENSING


[ Filed December 13, 1999, 11:19 a.m. ]

Date of Adoption: December 13, 1999.

Purpose: The purpose of the rule adoption is to better meet the intention of chapter 18.185 RCW and to clarify the procedures required by law.

Citation of Existing Rules Affected by this Order: Amending chapter 308-19 WAC.

Statutory Authority for Adoption: Chapter 18.185 RCW.

Adopted under notice filed as WSR 99-21-048 on October 18, 1999.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 4, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 16, Repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 4, Amended 16, Repealed 0. Effective Date of Rule: Thirty-one days after filing.

December 13, 1999

Alan Rathbun

Assistant Director

Business and Professions Division

OTS-2896.7


AMENDATORY SECTION(Amending WSR 93-21-053, filed 10/18/93, effective 11/18/93)

WAC 308-19-010
Promulgation -- Authority.

The director of the department of licensing, state of Washington, pursuant to the authority vested in the director by chapter ((260, Laws of 1993)) 18.185 RCW, does hereby promulgate the following rules and regulations relating to the licensing of bail bond agencies and bail bond agents.

[Statutory Authority: 1993 c 260 13. 93-21-053, 308-19-010, filed 10/18/93, effective 11/18/93.]


AMENDATORY SECTION(Amending WSR 93-21-053, filed 10/18/93, effective 11/18/93)

WAC 308-19-020
Organization.

The department of licensing administers the Washington bail bond license law, chapter ((260, Laws of 1993)) 18.185 RCW. Submissions and requests for information regarding bail bond agency licenses and bail bond agent licenses may be sent in writing to the Bail Bond Program, Business and Professions Division, Department of Licensing, P.O. Box 9649, Olympia, Washington 98507-9649.

[Statutory Authority: 1993 c 260 13. 93-21-053, 308-19-020, filed 10/18/93, effective 11/18/93.]


AMENDATORY SECTION(Amending WSR 93-21-053, filed 10/18/93, effective 11/18/93)

WAC 308-19-030
Definitions.

(1) Words and terms used in these rules shall have the same meaning as each has under chapter ((260, Laws of 1993)) 18.185 RCW unless otherwise clearly provided in these rules, or the context in which they are used in these rules clearly indicates that they be given some other meaning. Also see RCW 18.185.010 for other definitions.

(2) "Principal partner" means the partner who is the qualified agent of a bail bond agency and who exercises operational control over the agency.

(3) "Bail bond" means the contract between the defendant, the surety and/or the court to insure the appearance of the accused before the court(s) at such time as the court may direct. These bonds may require annual renewal.

(4) "Property bond agent" means a surety that posts security in the form of personal or real estate for compensation to assure the appearance of a defendant.

(5) "Surety" as it relates to bail bonds, means the depositor/owner of cash if a cash bail bond, the property owner(s) if a property bond, the insurance company if a corporate surety bond, that guarantees performance of the bail bond contract for compensation.

(6) "Principal/defendant" means the accused, for whom a bail bond may be obtained.

(7) "Exonerate" means the discharging of the bail bond by the court.

(8) "Indemnitor" means the person placing security with an agency/agent, to secure the agency against loss for the release of a defendant(s) on a bail bond.

(9) "Clients" means defendants and indemnitors.

(10) "Affidavit" means a written statement made under oath as provided in RCW 10.19.160.

(11) "Indemnity agreement" means the contract signed by the indemnitor that states the obligations the indemnitor(s) is/are assuming.

(12) "Collateral receipt" means an accurate description of the security given to an indemnitor by the receiving agency's agent, in its fiduciary capacity, listing all collateral given as security for a bail bond and held by the agency/agent until the bail bond is exonerated by the court or a forfeiture occurs. The receipt shall name the owner of the collateral, the defendant, and the bond number, and specify the terms for redemption of the collateral including any fees charged for storage.

(13) "Surrender form" means the form used to return to custody a defendant for violation of bond conditions, and the indemnitor's withdrawal from a bail bond with an affidavit in accordance with RCW 10.19.160, or a letter of forfeiture from a court in accordance to the bail contract.

(14) "Letter of forfeiture" means a notice in varied forms, sent to a bail bond agency/branch office, advising the agency/branch office that a defendant who has secured a bail bond with that agency has failed to appear on a given date in a given court in accordance with RCW 10.19.090. The court has made a demand for the surrender of the defendant, or payment of the face amount of the bond by a given date.

(15) "Letter of demand" means any form of notice to the indemnitor/defendant that the collateral placed in trust has come under jeopardy because of a failure to appear or violation of bail.

(16) "Corporate surety bail bonds" means a bail bond contract that is guaranteed by a domestic, foreign or alien insurance company which has been qualified to transact surety insurance business in Washington state by the insurance commissioner.

(17) "Build-up fund" (also known as "BUF fund" or "escrow fund" or "trust fund") means that percentage of money obtained from collected premiums paid by the agent to the corporate surety company for the purpose of indemnifying the corporate surety from loss caused by the agent.

[Statutory Authority: 1993 c 260 13. 93-21-053, 308-19-030, filed 10/18/93, effective 11/18/93.]


AMENDATORY SECTION(Amending WSR 93-21-053, filed 10/18/93, effective 11/18/93)

WAC 308-19-100
((Bail bond agency applications -- Conditions.)) How do I apply for a bail bond agent license?

((Any person desiring to obtain a bail bond agency license must substantiate the experience requirements in chapter 260, Laws of 1993, section 4 or pass an examination as provided in this chapter. Persons meeting the experience requirements shall make application for a license on a form prescribed by the director. Persons who do not meet the experience requirements shall make application for an examination and for a license on a form prescribed by the director. Concurrently, the applicant shall:

(1) Pay a fee or fees as prescribed by WAC 308-19-130.

(2) If the applicant is the qualified agent of a corporation, he or she shall furnish a copy of its articles of incorporation, and a list of its officers and directors and their addresses. If the applicant is the qualified agent of a foreign corporation, he or she shall furnish a copy of certificate of authority to conduct business in the state of Washington, a list of its officers and directors and their addresses, and evidence of current registration with the secretary of state. If the applicant is a partnership or limited partnership, each partner shall apply, qualify and furnish their addresses.

(3) When an agency license is issued to a sole proprietorship, the owner shall act as the qualified agent of the agency without the payment of additional license fees. When an agency license is issued to a corporation, the manager, officer, or chief operating officer shall act as the qualified agent of the agency without the payment of additional fees. When a license is issued to a partnership the principal partner shall act as the qualified agent of the agency without the payment of additional fees.)) An applicant for a bail bond agent license must first meet the requirements stated in the bail bond agents law, RCW 18.185.020. After the applicant meets the requirements he/she shall:

(1) Complete an application for a license on a form provided by the department of licensing.

(2) Inform the department if he/she has an insurance surety license and with what company he or she is affiliated.

(3) Pay a fee or fees as listed in WAC 308-19-130.

[Statutory Authority: 1993 c 260 13. 93-21-053, 308-19-100, filed 10/18/93, effective 11/18/93.]


NEW SECTION
WAC 308-19-105
How do I apply for a bail bond agency license?

To qualify for a bail bond agency license you must:

(1) Meet and complete the requirements of the bail bond agent license and; prove your work experience as required under RCW 18.185.030 (1)(b). Work related experience shall include: Bail bonds, insurance, trust accounts, receiving collateral in a fiduciary capacity, and forms of underwriting. If you do not have the required work experience you must train and pass an examination that shall follow the training and examination requirements as stated under Part D, WAC 308-19-300.

(2) Complete an application for an agency license on a form provided by the department of licensing.

(3) Pay a fee or fees as required by WAC 308-19-130.

(4) Obtain a bond for the main office as required by RCW 18.185.070.

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NEW SECTION
WAC 308-19-107
What are the requirements and responsibilities of the qualified agent?

The qualified agent shall be responsible for all transactions, recordkeeping, and the employees of each office he or she is licensed as the qualified agent.

If the agency or branch agency is to be a corporate surety or property agency, the agency, or branch agency qualified agent shall disclose the surety(s) name, address, the attorney in fact, and in whose name the build-up fund is in.

If an agency changes or takes another corporate surety, the director shall be advised immediately by the qualified agent.

If the agency provides security in the form of real property, the qualified agent shall advise the director of the names of the court(s) that have given approval for the placing of property bonds.

If the applicant for qualified agent represents a corporation, he or she shall furnish a copy of the articles of incorporation, and a list of officers and directors and their addresses to the director.

If the applicant for a qualified agent represents a foreign corporation, he or she shall furnish a copy of its articles of incorporation, and a list of its officers and directors and their addresses to the director.

If the applicant is a partnership or limited partnership, each partner shall apply, qualify and furnish their addresses to the director.

When an agency license is issued to a sole proprietorship, the owner shall act as the qualified agent of the agency without the payment of additional license fees.

When an agency license is issued to a corporation, the manager, officer, or chief operating officer shall act as the qualified agent of the agency without the payment of additional license fees.

When a license is issued to a partnership the principal partner shall act as the qualified agent of the agency without the payment of additional license fees.

Any agency going out of business in the state of Washington shall continue to be obligated on all outstanding bonds until the director receives notification from the jurisdiction in which the agency/branch offices are located that all bonds have been exonerated and the department of licensing has received no complaints from indemnitor about the return of collateral. The director may require an audit of the closing agency at any time upon notification of the closing of the agency.

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AMENDATORY SECTION(Amending WSR 93-21-053, filed 10/18/93, effective 11/18/93)

WAC 308-19-110
How do I apply for a bail bond agency branch office license(( -- Conditions.))?

A licensed bail bond agency ((desiring to)) may establish a branch office ((must apply and obtain a bail bond branch office license and pay the required fee)) by meeting the following requirements.

(1) Each branch office shall have a licensed qualified agent.

(2) Complete an application form provided by the department of licensing.

(3) Pay the fee or fees as required under WAC 308-19-130.

[Statutory Authority: 1993 c 260 13. 93-21-053, 308-19-110, filed 10/18/93, effective 11/18/93.]


AMENDATORY SECTION(Amending WSR 93-21-053, filed 10/18/93, effective 11/18/93)

WAC 308-19-140
((Expiration and renewal of licenses.)) When will my license expire and how do I renew my license?

(1) Licenses issued to bail bond agents expire on their respective birth dates. However, if an application for the bail bond agent license is received by the department of licensing within ninety days from the applicant's birthdate, the license issued shall not expire until the next birthdate.

(2) Licenses issued to bail bond agencies expire on December 31 each year. Licenses must be renewed each year on or before the date established herein and a renewal license fee as prescribed by the director in WAC 308-19-130 must be paid.

(3) If the application for a license renewal is not received by the director on or before the renewal date, a penalty fee as prescribed by the director in WAC 308-19-130 shall be paid. Acceptance by the director of an application for renewal after the renewal date shall not be a waiver of the delinquency.

(4) A license shall be cancelled if an application for a renewal of that license is not received by the director within one year from the date of expiration. A person may obtain a new license by satisfying the procedures and qualifications for licensing, including the successful completion of any current examination and education requirements.

(5) No agent or agency shall engage in the sale or issuance of bail bonds if their license has expired.

(6) When the director receives verification that a bail bond agency license has expired or has been revoked or suspended, the director shall advise correction centers.

[Statutory Authority: 1993 c 260 13. 93-21-053, 308-19-140, filed 10/18/93, effective 11/18/93.]


AMENDATORY SECTION(Amending WSR 93-21-053, filed 10/18/93, effective 11/18/93)

WAC 308-19-150
((Bail bond agent -- Termination of services.)) What happens to my agent license when I leave the bail bond agency I work for?

(1) A person licensed as a bail bond agent may perform duties and activities as licensed only under the direction and supervision of a licensed qualified agent and as a representative of a bail bond agency. ((This relationship may be terminated unilaterally by either the agency or the agent. Notice of such termination shall be by the agency's qualified agent to the director without delay and such notice shall be accompanied by, and include the surrender of, the agent's license held by the agency. Notice of termination shall be provided by signature of the agency's qualified agent on the surrendered license. The termination date shall be the postmark date or date the license is hand delivered to the department. If the license held by the agency cannot be surrendered to the department because the license has been lost, the qualified agent shall complete and submit an affidavit of lost license on a form approved by the department.))

(2) Either the agency or agent may cancel this relationship. The agency's qualified agent must send a written notice of the cancellation to the department of licensing immediately and include the agent's license held by the agency. Notice of cancellation shall be provided by signature of the agency's qualified agent on the surrendered license. The cancellation date shall be the postmark date or date the license is hand delivered to the department. If the license held by the agency cannot be surrendered to the department because the license has been lost, the qualified agent shall complete and submit an affidavit of lost license on a form approved by the department explaining why the license has been lost and for how long the license has not been on display.

[Statutory Authority: 1993 c 260 13. 93-21-053, 308-19-150, filed 10/18/93, effective 11/18/93.]


AMENDATORY SECTION(Amending WSR 93-21-053, filed 10/18/93, effective 11/18/93)

WAC 308-19-160
((Inactive license.)) What happens to my bail bond agent license when I am not working?

(1) Any license issued under chapter ((260, Laws of 1993)) 18.185 RCW, and not otherwise revoked or suspended shall be deemed "inactive" at any time it is delivered to the director. Until reissued, the holder of an inactive license shall be deemed to be unlicensed.

(2) An inactive license may be placed in an active status upon completion of an application as provided by the director and upon compliance with ((the rules adopted pursuant to chapter 260, Laws of 1993)) chapter 18.185 RCW.

(3) An inactive license may not be renewed. The inactive license will be cancelled if not activated by the expiration date. To obtain a new license the person must satisfy the procedures and qualifications for initial licensing, including the successful completion of any examination and education requirements.

(4) The provisions of chapter ((260, Laws of 1993)) 18.185 RCW relating to the denial, suspension, and revocation of a license shall be applicable to an inactive license as well as an active license, except that when proceedings to suspend or revoke an inactive license have been initiated, the license shall remain inactive until the proceedings have been completed.

[Statutory Authority: 1993 c 260 13. 93-21-053, 308-19-160, filed 10/18/93, effective 11/18/93.]


AMENDATORY SECTION(Amending WSR 93-21-053, filed 10/18/93, effective 11/18/93)

WAC 308-19-200
((Filing of licenses.)) Where do I keep the agency and agent licenses for my bail bond business?

Licenses of all bail bond agency and bail bond agents shall be ((on file)) kept in the office located at the address appearing on the license.

[Statutory Authority: 1993 c 260 13. 93-21-053, 308-19-200, filed 10/18/93, effective 11/18/93.]


AMENDATORY SECTION(Amending WSR 93-21-053, filed 10/18/93, effective 11/18/93)

WAC 308-19-210
((Change of office location.)) What do I need to do if I move my business?

The qualified agent of a bail bond agency shall notify the department of any change of location and mailing address of the agency office within ten working days by filing a completed change of address form approved or provided by the department.

[Statutory Authority: 1993 c 260 13. 93-21-053, 308-19-210, filed 10/18/93, effective 11/18/93.]


AMENDATORY SECTION(Amending WSR 93-21-053, filed 10/18/93, effective 11/18/93)

WAC 308-19-220
((Licensee's responsibilities.)) What are my responsibilities as a licensee in addition to the other obligations and responsibilities outlined in chapter 18.185 RCW and chapter 308-19 WAC?

It is the responsibility of each and every licensee to obtain a copy of and be knowledgeable of and keep current with the rules implementing chapter ((260, Laws of 1993)) 18.185 RCW.

[Statutory Authority: 1993 c 260 13. 93-21-053, 308-19-220, filed 10/18/93, effective 11/18/93.]


AMENDATORY SECTION(Amending WSR 93-21-053, filed 10/18/93, effective 11/18/93)

WAC 308-19-230
((Complaint notification.)) What if my bail bond agency or a bail bond agent is the subject of a criminal complaint or action?

Every licensee shall notify in writing, within twenty days after service or knowledge thereof, the office of the bail bond program, business and professions division, department of licensing of any criminal complaint, information, indictment, or conviction (including a plea of guilty or nolo contendere) in which the licensee is named as a defendant.

[Statutory Authority: 1993 c 260 13. 93-21-053, 308-19-230, filed 10/18/93, effective 11/18/93.]


AMENDATORY SECTION(Amending WSR 93-21-053, filed 10/18/93, effective 11/18/93)

WAC 308-19-240
((Records.)) What records are a bail bond agency and branch office required to keep?

The following requirements and prohibitions apply to all records and documents required to be maintained by chapter ((260, Laws of 1993)) 18.185 RCW, or in these rules:

(1) They shall be maintained in accordance with generally accepted accounting practices.

(2) No person shall make any false or misleading statement, or make false or misleading entry, or willfully fail to make any entry required to be maintained or made, in any such record or document.

(3) No person shall willfully fail to produce any such record or document for inspection by the department.

(4) The minimum records the qualified agent or principal partner of a bail bond agency shall be required to keep are:

(a) Bank trust account records;

(b) Duplicate receipt book or receipt journal;

(c) Prenumbered checks;

(d) Check register or cash disbursement journal;

(e) Validated bank deposit slips;

(f) Reconciled bank monthly statement (client liability vs bank statement);

(g) All cancelled checks;

(h) All voided checks;

(i) ((Client's information file which indicates client's name, dates of transactions, amount received, amount disbursed, current balance, check number, receipt number, and item(s) covered;)) "Client information" which includes defendant's name, application, dates of transactions, amount received, amount disbursed, current balance, check number, item(s) covered, indemnitor's agreement, and indemnity agreements, premium receipts, collateral receipt(s), letter(s) of forfeiture or surrender form(s), letter(s) of demand and affidavit(s), if surrendered before a forfeiture has occurred, and any written information or communication that may have influence on the bail bond or collateral placed for the bail bond;

(j) A transaction folder or file containing a copy of all agreements and related correspondence for each transaction;

(k) Records or description of all collaterals, securities, or monetary instruments received or held in the bail bond business transactions ((and));

(l) Records of training and/or continuing education for each bail bond agents employed in that agency((.));

(m) Records of exoneration of all bail bond transactions which include: (i) Court, citation or case number (ii) date of issuance of the bail (iii) the defendant's name, address and telephone number (iv) amount of the bond (vi) name of the court (vii) date of exoneration of the bond.

(((n))) (5) The above records shall be maintained for a minimum period of three years.

(((5))) (6) All funds and monetary instruments received by the agency from ((the)) customers or clients in ((the)) business transactions shall be deposited into the trust account within three working days of receipt.

[Statutory Authority: 1993 c 260 13. 93-21-053, 308-19-240, filed 10/18/93, effective 11/18/93.]


AMENDATORY SECTION(Amending WSR 93-21-053, filed 10/18/93, effective 11/18/93)

WAC 308-19-250
((Inspection and audit.)) Is a bail bond agency subject to audit and inspection?

All records required to be maintained by a qualified agent of a bail bond agency by chapter ((260, Laws of 1993)) 18.185 RCW, or these rules, together with any other business or other types of records of a licensee which may be related to the bail bond activity, together with any personal property which may be the subject of, or related to, a bail bond business transaction shall be subject to inspection and audit at any reasonable time, with or without notice upon demand by the department of licensing, for the purposes of determining compliance or noncompliance with the provisions of chapter ((260, Laws of 1993)) 18.185 RCW, and these rules.

If records requested by the department are not immediately available because they are not physically present upon the premises at the time the demand is made, they shall be procured and produced to the department as soon as possible, but in any event within twenty-four hours, by the licensee.

A reasonable time for the conduct of such inspection and audit shall be:

(1) If the records or items to be inspected or audited are located anywhere upon a premise any portion of which is open for business or to the public (or members and guests), then at any time the premises are so open, or at which they are usually open; or

(2) If the records or items to be inspected or audited are not located upon a premise set out in ((section)) subsection (1) ((above)) of this section, then any time between the hours of 8:00 a.m. and 5:00 p.m. Monday through Friday.

[Statutory Authority: 1993 c 260 13. 93-21-053, 308-19-250, filed 10/18/93, effective 11/18/93.]


AMENDATORY SECTION(Amending WSR 93-21-053, filed 10/18/93, effective 11/18/93)

WAC 308-19-300
((Minimum)) What are the prelicense training and examination requirements for bail bond agents, bail bond agency, and qualified bail bond agent license applicants((.))?

(1) The training and examination requirements for bail bond agent license applicants under ((chapter 260, Laws of 1993, section 7)) RCW 18.185.060, shall include, ((as)) at a minimum:

(a) Four hours of training in the following subjects:

(i) Bail bond licensing laws;

(ii) Court procedures relating to bail bonds;

(iii) Criminal procedure, Title 10 RCW;

(iv) Contracts and bail bond agreements;

(v) Preparation of promissory notes, mortgages, deeds of trust, assignments and other documents affecting property;

(vi) Care and storage of personal property;

(vii) Forfeiture of collateral, judgements and collection;

(viii) Washington Insurance Code, Title 48 RCW;

(ix) Laws relating to notary publics, chapter 42.44 RCW;

(x) Contact with clients, courts and law enforcement;

(xi) Sexual harassment.

(b) A licensed qualified agent shall certify on each bail bond agent's license application that the training required in this section has been completed.

(2) The examination requirement for bail bond agency or qualified bail bond agent license applicants under ((chapter 260, Laws of 1993, section 4(a))) RCW 18.185.030 (1)(a), shall include, as a minimum:

(a) All of the subjects as listed in ((section)) subsection (1)(a) ((above,)) of this section; and

(b) ((As)) At a minimum, the following subjects:

(i) Recordkeeping and filing;

(ii) Business licensing, taxation and related reporting and recordkeeping requirements.

(iii) Personnel management;

(iv) Laws relating to employment;

(v) The Americans with Disabilities Act;

(3) The examination for bail bond agency or qualified bail bond agent license applicants shall consist of a minimum of fifty questions covering the subjects listed above in subsection (2)(a) and (b) of this section. A score of eighty-five percent must be achieved in order to pass the examination. Applicants who fail to achieve an eighty-five percent score will be required to wait a minimum of fourteen days before reexamination.

(4) The director will certify training and examination programs for bail bond qualified agents and bail bond agents license applications.

(5) Every bail bond agent shall present to the director a letter stating training they have received while working as a trainee for an agency, including the name of the principal instructor before the director issues the person a bail bond license. This letter shall be signed by the qualified agent and shall also include a statement that the qualified agent is aware that they are taking responsibility for the agent.

[Statutory Authority: 1993 c 260 13. 93-21-053, 308-19-300, filed 10/18/93, effective 11/18/93.]


AMENDATORY SECTION(Amending WSR 97-10-047, filed 5/1/97, effective 6/1/97)

WAC 308-19-400
((Application of)) What is a brief adjudicative proceeding((s.))?

The director adopts RCW 34.05.482 through 34.05.494 for the administration of brief adjudicative proceedings conducted by request, and/or at the discretion of the director pursuant to RCW 34.05.482, for the categories of matters set forth below. Brief adjudicative proceedings will be limited to a determination of one or more of the following issues:

(1) Whether an applicant for a license meets the minimum criteria for a license to practice as a bail bond agency, qualified agent, branch office or bail bond agent in this state and the department proposes to deny the application;

(2) Whether a person is in compliance with the terms and conditions of a final order or agreement previously issued by the department;

(3) Whether an education course or curriculum meets the criteria for approval when approval by the department is required or authorized by statute or rule;

(4) Whether a license holder requesting renewal has submitted all required information and whether a license holder meets minimum criteria for renewal; and

(5) Whether a license holder has been certified by a lending agency and reported to the department for nonpayment or default on a federally or state-guaranteed educational loan or service-conditional scholarship.

[Statutory Authority: RCW 34.05.410 (1)(a) and 34.05.482 (1)(c). 97-10-047, 308-19-400, filed 5/1/97, effective 6/1/97.]


AMENDATORY SECTION(Amending WSR 97-10-047, filed 5/1/97, effective 6/1/97)

WAC 308-19-410
((Preliminary record in)) What records are used in a brief adjudicative proceeding((s.))?

(1) The preliminary record with respect to an application for an original or renewal license or for approval of an education course or curriculum shall consist of:

(a) The application for the license, renewal, or approval and all associated documents;

(b) All documents relied upon by the department in proposing to deny the license, renewal, or approval; and

(c) All correspondence between the applicant for license, renewal, or approval and the department regarding the application.

(2) The preliminary record with respect to determination of compliance with a previously issued final order or agreement shall consist of:

(a) The previously issued final order or agreement;

(b) All reports or other documents submitted by, or at the direction of, the license holder, in full or partial fulfillment of the terms of the final order or agreement;

(c) All correspondence between the license holder and the department regarding compliance with the final order or agreement; and

(d) All documents relied upon by the department showing that the license holder has failed to comply with the previously issued final order or agreement.

(3) The preliminary record with respect to the determination of nonpayment or default by the license holder on a federally or state-guaranteed educational loan or service-conditional scholarship shall consist of:

(a) Certification and report by the lending agency that the identified person is in default or nonpayment on a federally or state-guaranteed educational loan or service-conditional scholarship; or

(b) A written release, if any, issued by the lending agency stating that the identified person is making payment on the loan in accordance with a repayment agreement approved by the lending agency.

[Statutory Authority: RCW 34.05.410 (1)(a) and 34.05.482 (1)(c). 97-10-047, 308-19-410, filed 5/1/97, effective 6/1/97.]


AMENDATORY SECTION(Amending WSR 97-10-047, filed 5/1/97, effective 6/1/97)

WAC 308-19-420
((Conduct of)) How is a brief adjudicative proceeding((s.)) conducted?

(1) Brief adjudicative proceedings shall be conducted by a presiding officer for brief adjudicative proceedings designated by the director. The presiding officer for brief adjudicative proceedings shall not have personally participated in the decision, which resulted in the request for a brief adjudicative proceeding.

(2) The parties or their representatives may present written documentation. The presiding officer for brief adjudicative proceedings shall designate the date by which written documents must be submitted by the parties.

(3) The presiding officer for brief adjudicative proceedings may, in his or her discretion, entertain oral argument from the parties or their representatives.

(4) No witnesses may appear to testify.

(5) In addition to the record, the presiding officer for brief adjudicative proceedings may employ department expertise as a basis for the decision.

(6) The presiding officer for brief adjudicative proceedings shall not issue an oral order. Within ten days of the final date for submission of materials or oral argument, if any, the presiding officer for brief adjudicative proceedings shall enter an initial order.

[Statutory Authority: RCW 34.05.410 (1)(a) and 34.05.482 (1)(c). 97-10-047, 308-19-420, filed 5/1/97, effective 6/1/97.]


NEW SECTION
WAC 308-19-430
False or misleading advertising.

(1) The department has authority to discipline bail bonds agents for advertising that is false, fraudulent or misleading, RCW 18.185.110(5). Every advertisement by a licensee that solicits or advertises business shall contain the name of the business exactly as stated on the bail bond agency license, the physical address of the business as stated on the bail bond agency license and, the bail bond agency license number. For purposes of providing the business name and telephone number only, single line telephone directory listings are not required to include the license number.

(2) No bail bond agency shall use fictitious names in any advertising, or telephone directory.

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NEW SECTION
WAC 308-19-440
Standards of professional conduct.

(1) A bail bond agent shall maintain a detailed record of any collateral taken as security on any bond to the principal, indemnitor, or depositor of such collateral.

(2) A bail bond agent shall preserve or retain separately any collateral or to retain any collateral taken as security on any bond.

(3) A bail bond agent shall not have an outstanding judgment on a bail forfeiture, which judgment is or has been subject to execution on demand.

(4) A bail bond agent shall not use a relationship with any person employed by a jail facility to obtain referrals, or pay a fee or rebate or give or promise anything of value to any person having the power of arrest or having control of federal, state, county, or municipal prisoners, trustees or prisoners incarcerated in any jail, prison or any other place used for the incarceration of persons.

(5) A bail bond agent shall not require as a condition of his/her executing a bail bond that the principal or defendant agree to engage the services of a specific attorney.

(6) A bail bond agent shall not prepare or issue forged bonds or a forged power of attorney.

(7) A bail bond agent shall not arrest or make a threat of arrest to a defendant when the defendant or the indemnitor fails to fulfill a promise to repay credit extended by the bail bond agent.

(8) A bail bond agent shall not pay a fee or rebate or give or promise anything of value to the principal or anyone on his or her behalf.

(9) A bail bond agent shall not pay a fee or rebate or give anything of value to an attorney in bail bond matters, except for legal services actually rendered on behalf of the bail bond agent.

(10) A bail bond agent shall not pay a fee or rebate or pay for a referral except from another bonding company, or promise anything of value to a person in order to secure a settlement, compromise, remission or reduction of the amount of any bail bond.

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Washington State Code Reviser's Office