Date of Adoption: March 18, 2002.

     Purpose: The reason for the adoption of this rule is to bring the bail bond agents licensing program in compliance with RCW 43.24.086, which requires each professional licensing program to collect revenue equal to the cost of the program, and to increase recordkeeping accountability for increased protection of consumer funds.

     Citation of Existing Rules Affected by this Order: Amending WAC 308-19-130 Fees and 308-19-240 Required records.

     Statutory Authority for Adoption: RCW 43.24.086.

     Other Authority: Chapter 18.185 RCW.

      Adopted under notice filed as WSR 02-02-095 on January 2, 2002.

     Changes Other than Editing from Proposed to Adopted Version: New original application fees effective July 1, 2002. Renewals: New fees effective for all licenses expiring on or after July 1, 2002.

     Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 2, Repealed 0.

     Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 1, Repealed 0.

     Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0;      Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 2, Repealed 0.
     Effective Date of Rule: July 1, 2002.

March 18, 2002

Alan E. Rathbun

Assistant Director

OTS-5538.1

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

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	Fee
Bail bond agency/branch office:
Application	$((800.00)) 1,000.00
License renewal	((600.00)) 800.00
Late renewal with penalty	((900.00)) 1,000.00
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 of 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.]

     (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 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, invoices, billings, 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;

     (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.

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

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

     (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 takes 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:

     (a) Date of receipt;

     (b) Complete description of the property to include serial numbers or other unique identifying numbers;

     (c) Signature of the bail bond agent; and

     (d) 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.]

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