Relates to charitable bail organizations; authorizes the superintendent to issue certificates to a charitable bail organization to deposit money as bail under certain circumstances.
STATE OF NEW YORK
________________________________________________________________________
10640--B
IN ASSEMBLY
June 12, 2012
___________
Introduced by COMMITTEE ON RULES -- (at request of M. of A. Aubry,
Boyle, Heastie, Lentol, Lifton) -- read once and referred to the
Committee on Codes -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee -- reported and
referred to the Committee on Ways and Means -- committee discharged,
bill amended, ordered reprinted as amended and recommitted to said
committee
AN ACT to amend the insurance law, in relation to charitable bail organ-
izations
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 1108 of the insurance law is amended by adding a
2 new subsection (k) to read as follows:
3 (k) A charitable bail organization holding a certificate issued by the
4 superintendent pursuant to section six thousand eight hundred five of
5 this chapter.
6 § 2. Subsections (a) and (b) of section 6801 of the insurance law are
7 amended to read as follows:
8 (a) (1) Any person, firm or corporation in any court having criminal
9 jurisdiction or in any criminal action or proceeding who shall for
10 another deposit money or property as bail or execute as surety any bail
11 bond who within a period of one month prior thereto shall have made such
12 a deposit or given such bail in more than two cases not arising out of
13 the same transaction shall be deemed to be doing a bail [bond] business
14 and doing an insurance business as defined in article eleven of this
15 chapter.
16 (2) Except for a corporation authorized to write fidelity and surety
17 insurance and to do a bail [bond] business pursuant to the provisions of
18 article eleven of this chapter and otherwise in compliance with all
19 other requirements of this chapter to do such business or a charitable
20 bail organization holding a certificate issued by the superintendent
21 pursuant to section six thousand eight hundred five of this article and
22 otherwise in compliance with all other requirement of this chapter, no
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD16177-04-2
A. 10640--B 2
1 person, firm or corporation shall engage in [such] a bail business in
2 this state.
3 (b) (1) No person, firm or corporation shall in this state do an
4 insurance business or a bail [bond] business as defined in subsection
5 (a) of this section unless authorized by a license issued and in force
6 as provided under article eleven of this chapter.
7 (2) The superintendent may authorize a property/casualty insurance
8 company which is authorized to write fidelity and surety insurance to do
9 a bail [bond] business in accordance with the provisions of article
10 eleven of this chapter, but no individual shall be licensed to do such
11 business.
12 § 3. Subsections (a), (b), (c), (h) and (m) of section 6802 of the
13 insurance law, subsection (m) as amended by chapter 285 of the laws of
14 1993, are amended to read as follows:
15 (a) No person, firm or corporation or any officer or employee thereof
16 shall act in this state as an agent or solicitor of an insurer or chari-
17 table bail organization doing a bail [bond] business in soliciting,
18 negotiating or effectuating any such deposit or bail bond by such insur-
19 er or charitable bail organization unless licensed by the superintendent
20 as an agent pursuant to the provisions of this section. Any person, firm
21 or corporation so acting without being duly licensed shall be guilty of
22 a misdemeanor.
23 (b) Every corporation or charitable bail organization engaging as an
24 insurer [in the business of giving] doing a bail business in this state
25 shall procure a license pursuant to the provisions of this section for
26 each of its employees, officers and agents acting for it in soliciting,
27 negotiating or effectuating any such deposit or bail bond.
28 (c) The superintendent may, in [his] the superintendent's discretion,
29 issue to any person, firm or corporation a license to act as an agent of
30 an authorized insurer or charitable bail organization, in soliciting,
31 negotiating or effectuating any such deposit or bail bond by such insur-
32 er or any such deposit by such charitable bail organization.
33 (h) In order to determine the competence of each applicant for a
34 license or a sublicense, the superintendent shall require every appli-
35 cant to pass to the satisfaction of the superintendent a written exam-
36 ination to be prepared by the superintendent and appropriate to the
37 doing of a bail [bond] business. If the applicant or any proposed subli-
38 censee intends to maintain an office or solicit, negotiate, effectuate
39 or deposit bail on behalf of another in any city containing a population
40 of more than one hundred seventy-five thousand, such written examination
41 may inquire into the applicant's knowledge of the pertinent provisions
42 of the criminal procedure law and the pertinent rules and practices of
43 the courts and district attorneys' offices within the area of the appli-
44 cant's proposed operations. Such examination shall be held at such times
45 and places as the superintendent shall determine.
46 (m) Every license issued to an officer, employee, or agent of an
47 insurer or charitable bail organization doing a bail [bond] business
48 pursuant to this section shall be for a term expiring on the thirty-
49 first day of December of even numbered years and may be renewed for the
50 ensuing two calendar years upon the filing of a renewal application. The
51 superintendent may refuse to issue any such license if in [his] the
52 superintendent's judgment such refusal will best promote the interests
53 of the people of this state. Every such licensee and sublicensee shall
54 file an information statement on or before the thirty-first day of
55 December of each even numbered year, the form and subject matter of
56 which may be prescribed by the superintendent.
A. 10640--B 3
1 § 4. Section 6803 of the insurance law is amended to read as follows:
2 § 6803. Bail bond business; cities in excess of one hundred seventy-
3 five thousand. (a) An insurance corporation or charitable bail organiza-
4 tion engaged in the bail business [of giving bail] in a city containing
5 a population of more than one hundred seventy-five thousand inhabitants,
6 according to the last preceding federal census or state enumeration,
7 shall file with the district attorney of each county contained in such
8 city or in which such a city is contained, the clerks of the supreme and
9 county courts and the clerk of the criminal court of the city of New
10 York, certified statements of the names of all persons authorized to
11 execute bail bonds or effectuating such deposit on its behalf or to
12 solicit such business as agent, together with a certificate duly
13 executed by the superintendent, certifying with respect to each such
14 person, that such person has been licensed by the superintendent pursu-
15 ant to section six thousand eight hundred two of this article.
16 (b) The court or other public officer concerned in the matter may
17 examine under oath any insurer or charitable bail organization doing a
18 bail [bond] business or a depositor of security for bail, or the officer
19 or agent of any such insurer, charitable bail organization or depositor
20 proposing to execute a bail bond, or to make such deposit, as to the
21 indemnity, if any, deposited or otherwise provided directly or indirect-
22 ly against loss by reason of the deposit or bail bond and as to the fee
23 charged, if any, for the giving of such bond. The court or other public
24 officer concerned in the matter may refuse to accept such bond or depos-
25 it if satisfied that any portion of such security has been feloniously
26 obtained by the defendant, or that the provisions of this or any other
27 section of law have been violated, or that the person or persons indem-
28 nifying such insurer or depositor shall have within a period of one
29 month prior thereto given indemnification or security for like purpose
30 in more than two cases not arising out of the same transaction and that
31 such person is not duly licensed by the superintendent in accordance
32 with the provisions of this chapter.
33 § 5. The insurance law is amended by adding a new section 6805 to read
34 as follows:
35 § 6805. Charitable bail organization. (a)(1) The superintendent may
36 issue a certificate to a charitable bail organization to deposit money
37 as bail for another in accordance with the provisions of this section
38 only if such entity is a non-profit organization organized pursuant to
39 the United States internal revenue code as described by section
40 501(c)(3) of title 26 of the United States code, is registered as a
41 charity pursuant to article seven-A of the executive law and is current
42 on such registration.
43 (2) The application for a charitable bail organization certificate
44 shall be in such form or forms, and shall contain relevant information,
45 as the superintendent shall prescribe.
46 (3) The superintendent may refuse to issue a charitable bail organiza-
47 tion certificate if, in the superintendent's judgment, an applicant, or
48 an officer or director of the applicant, has: (A) demonstrated untrust-
49 worthiness or incompetence; (B) given cause for the revocation or
50 suspension of the certificate; or (C) failed to comply with any prereq-
51 uisite for the issuance of the certificate.
52 (4) A charitable bail organization certificate shall be valid for a
53 term of five years from issuance. At the time of application for every
54 such certificate, and for every renewal thereof, an applicant shall pay
55 to the superintendent a sum of one thousand dollars payable each term or
A. 10640--B 4
1 fraction of a term, provided, however, that in his or her discretion,
2 the superintendent may waive such fee.
3 (5) If an application for a renewal certificate shall have been filed
4 with the superintendent before the expiration of such certificate, then
5 the certificate sought to be renewed shall continue in full force and
6 effect either until the issuance by the superintendent or the renewal
7 certificate applied for or until five days after the superintendent
8 shall have refused to issue such renewal certificate.
9 (6) The superintendent may refuse to renew or may revoke or suspend a
10 charitable bail organization certificate for a reasonable period deter-
11 mined by the superintendent if, after notice and hearing, the super-
12 intendent determines that an applicant or licensee, or an officer or
13 director of the applicant or licensee, has: (A) demonstrated untrustwor-
14 thiness or incompetence; (B) violated this section or authorized regu-
15 lations promulgated thereunder; or (C) failed to stay current with their
16 registration as a charity pursuant to article seven-A of the executive
17 law. Any hearing conducted under this section shall comply with the
18 requirements of section three hundred five of the financial services
19 law.
20 (b) A charitable bail organization shall:
21 (1) only deposit money as bail in the amount of two thousand dollars
22 or less for a defendant charged with one or more misdemeanors, provided,
23 however, that such organization shall not execute as surety any bond for
24 any defendant;
25 (2) only deposit money as bail on behalf of a person who is financial-
26 ly unable to post bail, which may constitute a portion or the whole
27 amount of such bail;
28 (3) only deposit money as bail in one county in this state. Provided,
29 however, that a charitable bail organization whose principal place of
30 business is located within a city of a million or more may deposit money
31 as bail in the five counties comprising such city; and
32 (4) not charge a premium or receive compensation for acting as a char-
33 itable bail organization.
34 (c) The superintendent may promulgate regulations implementing this
35 section.
36 § 6. This act shall take effect on the ninetieth day after it shall
37 have become a law.
