HB 637-FN - AS INTRODUCED
2009 SESSION
04/05
HOUSE BILL 637-FN
AN ACT relative to bail agents and recovery agents.
SPONSORS: Rep. Ulery, Hills 27
COMMITTEE: Criminal Justice and Public Safety
This bill requires any person doing business as a bail recovery agent to be licensed by the department of safety and to provide proof of such license to the secretary of state every 2 years.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
09-0629
04/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nine
AN ACT relative to bail agents and recovery agents.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Bail Agents and Recovery Agents. Amend RSA 597:7-b to read as follows:
597:7-b Bail Agents and Recovery Agents; Certification and Registration; Notification to Local Law Enforcement Required.
I. In this section:
(a) “Bail agent” means any person appointed by an insurer by power of attorney to execute or countersign bail bonds for the insurer in connection with judicial proceedings and who receives a premium.
(b) “Bail recovery agent” means a person who [meets the requirements of paragraph II of this section] is licensed pursuant to RSA 106-F and who is offered or given any compensation by a bail agent or surety in exchange for assisting the bail agent or surety in apprehending or surrendering any defendant, or keeping the defendant under necessary surveillance.
II. Any person who operates a business as a bail recovery agent in this state[, excluding licensed private detectives, shall be trained and certified through a program approved by the Professional Bail Agents of the United States and] shall register [annually] biennially with the secretary of state. [The secretary of state shall issue to each registered recovery agent proof of such registration. Effective July 1, 2000, each bail agency operating in this state shall annually provide to the secretary of state proof of liability insurance coverage in the amount of $300,000 for bail recovery activities of the agency’s bail agents and bail recovery agents. This proof of insurance coverage shall be provided before the agency’s bail agents are licensed or relicensed, and before the agency’s bail recovery agents are registered or reregistered. Bail recovery agents acting as independent contractors shall provide proof of liability insurance coverage in the amount of $300,000 to the secretary of state before registration or reregistration. Any person who operates as a bail recovery agent in this state without meeting such certification, insurance, and registration requirements shall be guilty of a class A misdemeanor.] A bail recovery agent shall furnish the secretary of state with a copy of the license issued pursuant to RSA 106-F.
III. A bail agent or bail recovery agent searching for a person who has violated conditions of release shall notify a municipality’s chief law enforcement officer if the search or apprehension is to be conducted in the municipality’s jurisdiction. This notification shall be confidential and shall not be released to the public or any other unauthorized party. A bail agent, [or] bail recovery agent, or other person who violates the provisions of this paragraph shall be guilty of a class [A misdemeanor] B felony.
IV.(a) No bail agent or bail recovery agent shall use any trade name or designation which may imply, or can be construed to imply, an association with local, county, state, or federal government, or any agency or instrumentality of local, county, state, or federal government.
(b) No bail recovery agent shall possess or use a badge of any kind. No bail recovery agent shall use the word “police”, or any police or police-like insignia, or any military or military-like insignia on any official form of identification, advertisement, or informational materials.
2 Detective Agencies and Security Services Chapter Title Amended. Amend the chapter title in RSA 106-F to read as follows:
DETECTIVE AGENCIES [AND], SECURITY
SERVICES, AND BAIL RECOVERY AGENTS
3 Detective Agencies and Security Services; Statement of Purpose. Amend RSA 106-F:1 to read as follows:
106-F:1 Declaration of Purpose. The purpose of this chapter is to:
I. Provide reasonable supervision and control of private detective agencies and their employees, security guard services and their employees, bail recovery agencies and their employees, and individuals licensed as private detectives [and], bail recovery agents, and security guards doing business in this state.
II. Ensure the honesty, good character and integrity of individuals, licensees, and license holders.
4 Detective Agencies and Security Services; Definitions. Amend RSA 106-F:4 to read as follows:
106-F:4 Definitions. In this chapter:
I-a. “Applicant” means any person who makes application to engage in any activity regulated under this chapter.
I-b. “Bail recovery agent” means a person who is offered or given any compensation by a bail agent as defined in RSA 597:7-b, I(a) or surety in exchange for assisting the bail agent or surety in apprehending or surrendering any defendant, or keeping the defendant under necessary surveillance.
I-c. “Private detective” means a person engaged in conducting investigations involving, but not limited to:
(a) Unsolved crimes.
(b) Insurance.
(c) Clandestine surveillance.
(d) Missing persons.
(e) Lost, concealed, or stolen property.
(f) Escaped felons or wanted persons subject to reward for capture.
II. “Private detective agency” means the business of collecting for a fee, hire or reward information on the identity, conduct, movements, whereabouts, affiliations, transactions, reputation or character of any person, or otherwise doing investigative work for a private rather than a public interest.
III. “Security guard service” means any business entity, except as provided in RSA 106-F:2, that furnishes or employs persons for the protection of individuals or their property from injury or theft and includes, but is not limited to, services providing for the safe transport of money or valuable documents and security patrols of homes, businesses or industrial plants.
IV. “Employee” means an individual employed by a private detective agency or an individual employed by a security guard service performing the duties of a private detective or a security guard for the said private detective agency or security guard service.
V. “Licensee” means a licensed private detective agency or security guard service.
VI. “License holder” means an employee of a licensee.
VII. “ Individual” means an individual licensed as a private detective or security guard who is not an employee and who has no employees.
5 Detective Agencies and Security Services; Bail Recovery Agents; License Required. Amend RSA 106-F:5 to read as follows:
106-F:5 License Required; Registration of Foreign Corporations.
I. No person shall engage in the business of a private detective agency without obtaining a private detective agency license from the commissioner of safety and no person shall engage in the business of a security guard service without obtaining a security guard service license from the commissioner of safety.
I-a. No person shall engage in the business of a bail recovery agency without obtaining a bail recovery agency license from the commissioner of safety.
II. No person shall become an employee of a private detective agency [or], a security guard agency, or a bail recovery agency without first obtaining a license to do so from the commissioner of safety.
III. Any out-of-state applicant incorporated under the laws of any other state, desiring to do business in this state pursuant to this chapter, shall be deemed to be a foreign corporation and shall be required to register under and comply with the provisions of RSA 293-A.
6 Detective Agencies and Security Services; Issuance of License. Amend RSA 106-F:7, I to read as follows:
I. Following review of the application, the applicant’s references, and investigation into the character, competency and integrity of the applicant, the commissioner shall as soon as practicable issue a license or renewal license in the form prescribed by him to the applicant, or notify the applicant of denial of the application. Prior to approval of any [armed detective or security] license issued under this chapter, the applicant shall submit to a fingerprint examination conducted by the Federal Bureau of Investigation, and the department of safety shall be authorized to use the records of the Federal Bureau of Investigation in the screening of applicants. The applicant shall be responsible for the cost of any background investigation or criminal records check required under this section.
7 Detective Agencies and Security Services; License Fees. Amend RSA 106-F:8, I to read as follows:
I. The fee for a [private detective agency license or a security guard service] license shall be $100 for an agency or service employing one person licensed under this chapter and $400 for an agency or service employing more than one such person. A person may hold one or more types of license at any given time, provided that a separate fee shall be paid for each license so held. Licenses shall be valid for 2 years after the date of issue and shall be renewed every 2 years thereafter, upon application and payment of the fee and submission of certified evidence that the surety bond remains in force. The application for renewal shall be submitted at least 15 days before the expiration of the previously granted license.
8 Detective Agencies and Security Services; Firearm Proficiency. Amend the introductory paragraph in RSA 106-F:8-a, I to read as follows:
I. All armed security guards [and armed], private detectives, and bail recovery agents shall meet minimum requirements in the proficiency in the use of firearms at least once per year. The requirements shall be as follows:
9 Detective Agencies and Security Services; Penalty. Amend RSA 106-F:16 to read as follows:
106-F:16 Penalty. Any individual or person who engages in business [as a private detective agency or security guard service] or in any activity regulated under this chapter without first having obtained a license therefor or who violates any other provisions of this chapter shall be guilty of a misdemeanor.
10 Division of State Police; General Provisions. Amend RSA 21-P:7, I(d) to read as follows:
(d) Regulation of detective agencies [and], security services, and bail recovery agencies under RSA 106-F.
11 Department of Safety; Rulemaking. Amend RSA 21-P:14, II(d) to read as follows:
(d) Licensing detective agencies [and], security guard services, and bail recovery agencies, as authorized by RSA 106-F:3.
12 Effective Date. This act shall take effect January 1, 2010.
LBAO
09-0629
Revised 03/05/09
HB 637 FISCAL NOTE
AN ACT relative to bail agents and recovery agents.
FISCAL IMPACT:
The Department of Safety states this bill will increase state general fund revenues and state restricted expenditures in FY 2010 and each year thereafter. The Judicial Branch, Judicial Council, Department of Justice, Department of Corrections, and New Hampshire Association of Counties state this bill may increase state general fund and county expenditures in FY 2010 and each year thereafter. This bill will have no fiscal impact on county or local revenues or local expenditures.
METHODOLOGY:
The Department of Safety states this bill requires any person doing business as a bail recovery agent to be licensed by the Department and to provide proof of such license to the Secretary of State every to years. The Department states this bill will increase state general fund revenues an indeterminable amount in FY 2010 and each year thereafter. This bill requires a license fee of $100 for an agency or service employing one person and $400 for an agency or service employing more than one person. However, as the Department cannot estimate the number of licenses requested, the fiscal impact cannot be determined at this time. This bill will require at least one new secretary position to handle bail recovery agent licensing, increasing criminal records fund expenditures as follows:
FY 2010 |
FY 2011* |
FY 2012* |
FY 2013* | ||
Salary (LG 11) |
$12,792 |
$26,062 |
$27,027 |
$28,080 | |
Benefits |
$15,931 |
$19,896 |
$21,445 |
$23,151 | |
Total Salary and Benefits |
$28,723 |
$45,958 |
$48,472 |
$51,231 | |
|
|
|
| ||
Current Expenses |
$2,000 |
$1,400 |
$1,700 |
$1,800 | |
Equipment |
$1,500 |
$200 |
$200 |
$200 | |
Printing |
$2,000 |
$500 |
$600 |
$600 | |
Total Other Costs |
$5,500 |
$2,100 |
$2,500 |
$2,600 | |
|
|
|
| ||
Total Additional Expenses |
$34,223 |
$48,058 |
$50,972 |
$53,831 | |
*The Department assumes step increases will occur on January 1 of each year |
|||||
The Judicial Branch states this bill may increase state expenditures by an indeterminable amount in FY 2010 and each year thereafter. This bill replaces the current requirement of liability insurance with a requirement for a surety bond, which allows suits on the bond to be brought by the attorney general. Suits brought in the Superior Court would likely be considered a routine equity case, which will cost the Branch an average $184.21 in FY 2010 and each year thereafter. Therefore, if the bill resulted in 55 additional cases annually, the cost would be in excess of $10,000 each fiscal year. If cases are appealed, the number of cases needed for a fiscal impact in excess of $10,000 will be significantly fewer. This bill also replaces a class A misdemeanor penalty with a class B felony. Each case charged as a class B felony rather than a class A misdemeanor will increase state expenditures by $284.84 in FY 2010 and each year thereafter. If this bill resulted in 36 charges brought as class B felonies that currently would be brought as class A misdemeanors, the bill would have a fiscal impact in excess of $10,000 annually. However, Branch statistics show no charges have been brought in the district and superior courts for violations of this provision in the past decade, therefore the Branch does not anticipate a significant fiscal impact from this change. Because the Branch cannot predict the number of violations, the fiscal impact cannot be determined at this time.
The Judicial Council states this bill may increase state expenditures by an indeterminable amount in FY 2010 and each year thereafter. Each case charged as a class B felony rather than a class A misdemeanor where the defendant is found to be indigent will increase state expenditures by $481.25 in FY 2010 and each year thereafter. Because the Council cannot predict the number of violations, the fiscal impact cannot be determined at this time.
The Department of Justice states this bill may increase state expenditures in FY 2010 and each year thereafter. The Department states this bill requires any person doing business as a bail recovery agent to obtain a surety bond subject to being sued upon by the attorney general of the state in the name of the state, potentially increasing attorney and staff time to investigate and bring claims. Because the Department cannot predict how many such cases will be generated under this bill, the fiscal impact cannot be determined at this time. Also, the Department anticipates violations for any person doing business as a bail recovery agent without first obtaining a license will be prosecuted by the county or local prosecutor and any appeals involving the Department could be absorbed within the Department’s current budget.
The Department of Corrections states this bill may increase state expenditures by an indeterminable amount in FY 2010 and each year thereafter. To the extent the change from a class A misdemeanor to a class B felony results in any individual being incarcerated in the general prison population, state expenditures will increase. The average annual cost to incarcerate an individual in FY 2008 was $32,753 and the annual cost to the Division of Field Services to supervise an individual was $779. Because the Department cannot predict the number of violations, the fiscal impact cannot be determined at this time.
The New Hampshire Association of Counties states this bill may increase county expenditures by an indeterminable amount in FY 2010 and each year thereafter. To the extent the change from a class A misdemeanor to a class B felony results in any individual being sentenced to a county correctional facility, county expenditures will increase. The average annual cost to incarcerate an individual in a county correctional facility is $30,165. Because the Association cannot predict the number of violations, the fiscal impact cannot be determined at this time.
The Department of State states this bill will have no fiscal impact on state revenues or expenditures.
This bill does not contain an appropriation or establish positions.