WSR 02-02-095

PROPOSED RULES

DEPARTMENT OF LICENSING


[ Filed January 2, 2002, 10:57 a.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 01-21-092.

Title of Rule: WAC 308-19-130 Bail bond agency, branch office and bail bond agent fees and 308-19-240 What records are a bail bond agency and branch office required to keep?

Purpose: The purpose of the rule change is to increase fees pursuant to the requirements of RCW 43.24.086, and to the records bail bond agencies are required to keep for the purpose of increasing protection of consumer funds.

Statutory Authority for Adoption: RCW 43.24.086 and chapter 18.185 RCW.

Statute Being Implemented: Chapter 18.185 RCW.

Summary: To increase fees in WAC 308-19-130 and to increase protection of consumer funds in WAC 308-19-240.

Reasons Supporting Proposal: The reason for the fee increase is that RCW 43.24.086 requires that regulatory programs raise sufficient revenue to be self-supporting. Pursuant to RCW 43.135.055, the Department of Licensing may increase fees in excess of the fiscal growth factor during the 2001-2003 biennium, if necessary, to fully fund the costs of the licensing program. The reason for amending the record-keeping requirements is to better protect consumer funds based on the number of consumer complaints and investigation or audit results.

Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: Mary Haglund, Olympia, (360) 664-6624.

Name of Proponent: Department of Licensing, Bail Bond Program, governmental.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: WAC 308-19-130 Bail bond agent and bail bond agency licensing fee. The proposed rules would increase licensing fees so the program will be able to fully fund the costs of the licensing program as required by RCW 43.135.055.

WAC 308-19-240 Required records of bail bond agencies and branch offices defines requirements and prohibitions that apply to all records and documents that are required to be maintained by chapter 18.185 RCW and WAC 308-19-240. The amended sections define procedures for bail bond agents to be required to follow when charging consumers for a defendant's failure to appear and for the liquidation of the consumer's collateral. The amendments will require bail bond agents to provide a detailed invoice when billing consumers and provide a clearer audit trail when investigating consumer complaints.

Proposal Changes the Following Existing Rules: See below.

No small business economic impact statement has been prepared under chapter 19.85 RCW. The proposed rule regarding fee increases is pursuant to legislative approval. The amendatory section of record keeping does not impose economic impact as it is minor changes.

RCW 34.05.328 applies to this rule adoption. The proposed amended rules are following all rule-making requirements.

Hearing Location: Department of Licensing, Business and Professions Division Building 2, Conference Room 4, 405 Black Lake Boulevard, Olympia, WA 98507, on February 15, 2002, at 10:00 a.m.

Assistance for Persons with Disabilities: Contact Mary Haglund by February 5, 2002, TDD (360) 664-0116, or (360) 664-6611.

Submit Written Comments to: Department of Licensing, Bail Bond Program, P.O. Box 9649, Olympia, WA 98507-9649, fax (360) 570-7888, by February 5, 2002.

Date of Intended Adoption: February 28, 2002.

December 31, 2001

Alan E. Rathbun

Assistant Director


AMENDATORY SECTION(Amending WSR 93-21-053 [00-01-061], filed 10/18/93 [12/13/99])

WAC 308-19-240   What records are a bail bond agency and branch office required to keep?   (j) A transaction folder or file containing a copy of all agreements, invoices, billings, -and related correspondence for each transaction ((including invoices, billings and related correspondence for each transaction.))

(7) All money spent on behalf of a client must be deposited in and disbursed from the agent's collateral trust account, including advances, loans or money from the agency's business account to the collateral trust account to pay expenses

(8) The bail bond agent must secure an invoice or billing from any party who provides a service on behalf of the defendant and must include the cost for the service, a description of the service provided, and the service provider's name, address telephone number, and UBI number, (Uniform Business Identifier.)

(9) Bail bond agents must secure an affidavit from any party who purchases or take possession of collateral being liquidated. The affidavit must state the name, address and telephone number of the party (ies) acquiring the property along with a complete description of the property, serial number or other unique identifying number, and the dollar value of the collateral being liquidated with an explanation of how the dollar value was estimated.

(10) If the bail bond agent or agency provides other services to the indemnitor or client, the firm must provide full disclosure in writing of the agent's relationship with any persons providing such services, and prior disclosure of fees charged. The written disclosure must be maintained in the client's transaction file for a minimum period of three years. For purposes of this section, "other services" shall mean services unrelated to the issuance and posting of bail.

(11) The bail bond agent must provide each indemnitor or client a receipt for all personal property. The bail bond agent shall keep a duplicate of all receipts. The receipt will include: (1) date of receipt, (2) complete description of the property to include serial numbers or other unique identifying numbers, (3) signature of the bail bond agent, and (4) a file or case number the receipt relates to.

(12) The bail bond agent shall maintain an individual ledger card to post all bank charges of any nature, including credit card charges. Accrued interest shall be posted to the individual ledger card. If bank charges exceed the interest earned, causing the trust account to be lower than client liability, the bail bond agent shall immediately deposit funds into the trust account to bring the trust account into balance. For purposes of this subsection, "immediately" shall mean within one banking day after the bail bond agent receives notice that the trust account is lower than client liability. All interest accruing on the trust bank account must be withdrawn at least once monthly

[Statutory Authority: Chapter 18.185 RCW. 00-01-061, 308-19-240, filed 12/13/99, effective 1/13/00. Statutory Authority: 1993 c 260 13. 93-21-053, 308-19-240, filed 10/18/93, effective 11/18/93.]

Reviser's note: The bracketed material preceding the section above was supplied by the code reviser's office.

Reviser's note: RCW 34.05.395 requires the use of underlining and deletion marks to indicate amendments to existing rules. The rule published above varies from its predecessor in certain respects not indicated by the use of these markings.
AMENDATORY SECTION(Amending WSR 93-21-053, filed 11/18/93 [10/18/93])

WAC 308-19-130   Bail bond agency, branch office and bail bond agent fees.   The following fees for a one-year period shall be charged by business and professions division of the department of licensing:

TITLE OF FEE PROGRAM FEES
Bail Bond Agency/Branch Office:
Application $((800.00)) 1000.00
License Renewal ((600.00)) 800.00
Late Renewal with Penalty ((900.00)) 1000.00
Certification of Records 25.00
Bail Bond Agent:
Original License $((200.00)) 400.00
License Renewal ((150.00)) 250.00
Late Renewal with Penalty ((250.00)) 350.00
Certification Records 25.00
Change of Qualified Agent 200.00

[Statutory Authority: 1993 c 260 13. 93-21-053, 308-19-130, filed 10/18/93, effective 11/18/93.]

Reviser's note: The bracketed material preceding the section above was supplied by the code reviser's office.

Reviser's note: RCW 34.05.395 requires the use of underlining and deletion marks to indicate amendments to existing rules. The rule published above varies from its predecessor in certain respects not indicated by the use of these markings.

Reviser's note: The typographical error in the above section occurred in the copy filed by the agency and appears in the Register pursuant to the requirements of RCW 34.08.040.

Washington State Code Reviser's Office