Original Notice.

     Preproposal statement of inquiry was filed as WSR 08-08-015.

     Title of Rule and Other Identifying Information: An act relating to bail bond agents and bail bond recovery agents, amending chapter 18.185 RCW, requires rules to be amended or added as new.

     Hearing Location(s): Department of Licensing, Business and Professions Division, 405 Black Lake Boulevard, Building 2, Conference Room 2209, Olympia, WA 98502-5046, on August 28, 2008, at 10:00 a.m.

     Date of Intended Adoption: September 23, 2008.

     Submit Written Comments to: Mary Haglund, Department of Licensing, Business and Professions Division, Bail Bond Agents, P.O. Box 9649, Olympia, WA 98507-9649, e-mail Security@dol.wa.gov, fax (360) 570-7888, by August 26, 2008.

     Assistance for Persons with Disabilities: Contact Mary Haglund by August 26, 2008, TTY (360) 664-8885 or (360) 664-6611.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The passing of ESSB 6437, an act relating to bail bond agents in 2008 requires that the department of licensing develop training topics, testing requirements, procedures for recovery agents to report forced entries, and other reporting procedures. The fiscal note for ESSB 6437 also includes a legislatively approved fee increase for bail bond agents and bail bond recovery agents to support the increased work activity created by the new law changes. The stakeholders who participated in the development of the rules included licensees, law enforcement and other state agencies.

     Reasons Supporting Proposal: The legislature had concerns for public safety in the regulating of the bail bond industry and those concerns are reflected in the revisions made to the law. The rules increase training and accountability, and are in the best interest of the safety of the licensees as well as consumers and citizens.

     Statutory Authority for Adoption: Chapter 18.185 RCW.

     Statute Being Implemented: Chapter 18.185 RCW.

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

     Agency Comments or Recommendations, if any, as to Statutory Language, Implementation, Enforcement, and Fiscal Matters: ESSB 6437 was agency proposed legislation and the rules were developed with a wide range of licensees, other state agencies and law enforcement officials. All stakeholders were provided opportunity to participate in the drafting of the rule and a general agreement on all requirements has been reached. The exception is the fee increase, but the agency has communicated with the stakeholders regarding the issues and basis for the increase.

     Name of Proponent: Department of licensing, governmental.

     Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: Mary Haglund, Olympia, (360) 664-6611.

     No small business economic impact statement has been prepared under chapter 19.85 RCW. Chapter 19.85 RCW does not apply to department of licensing.

     A cost-benefit analysis is not required under RCW 34.05.328. RCW 34.05.328 does not apply to department of licensing.

July 11, 2008

Shelly L. Hagen

Deputy Assistant Director

OTS-1751.2

AMENDATORY SECTION(Amending WSR 05-08-027, filed 3/30/05, effective 4/30/05)

WAC 308-19-030   Definitions.   (1) Words and terms used in these rules shall have the same meaning as each has under chapter 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.

     (18) "Endorsement" means that a bail bond agent or bail bond qualified agent licensee has met all licensing requirements for a bail bond recovery agent license and is authorized to perform the duties of both a bail bond agent and a bail bond recovery agent. Such licenses shall be issued by the department and will clearly state the dual purpose of the license.

     (19) "Forced entry" means physical entry into a dwelling without the occupant's knowledge or consent for the purpose of apprehending a defendant subject to a bond.

     (20) "Credentialed trainer" means an individual who has been certified by a state or national association to provide training to industry members based upon formal training and industry knowledge.

[Statutory Authority: Chapter 18.185 RCW. 05-08-027, § 308-19-030, filed 3/30/05, effective 4/30/05; 00-01-061, § 308-19-030, filed 12/13/99, effective 1/13/00. Statutory Authority: 1993 c 260 § 13. 93-21-053, § 308-19-030, filed 10/18/93, effective 11/18/93.]

     (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/she is affiliated.

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

     (4) Pass a written exam administered by the department or submit proof of twelve hours of prelicense training as provided in Part D, WAC 308-19-300. The training must have occurred within the previous six months or less.

[Statutory Authority: Chapter 18.185 RCW. 05-08-027, § 308-19-100, filed 3/30/05, effective 4/30/05; 00-01-061, § 308-19-100, filed 12/13/99, effective 1/13/00. Statutory Authority: 1993 c 260 § 13. 93-21-053, § 308-19-100, filed 10/18/93, effective 11/18/93.]

     (1) ((A bail bond recovery agent license or endorsement application completed in full;)) Complete an application for a license or an endorsement on a form provided by the department;

     (2) ((Proof that the applicant directly submitted the)) Submit a completed fingerprint card ((and fees to the Washington state patrol));

     (3) ((A copy of)) Attest on the application form to having earned a high school diploma or GED or submit proof of three years experience in the bail industry;

     (4) Submit a copy of a current and valid concealed pistol license.

     (5) If applicant is retired or separated from a local or state police department, or a branch of the armed forces trained to carry out the duties of a peace officer within the last six years, submit proof to the department describing length of service, duties and date of retirement or separation or;

((if applicant is not retired or separated from a local or state police department, or a branch of the armed forces trained to carry out the duties of a peace officer within the last six years, the applicant must)) submit a certificate or transcript showing the applicant has completed ((a course consisting of not less than four hours of study which includes the following:

     (a) Civil and criminal law:

     (I) State statutes relating to bail regulations;

     (ii) Constitutional law;

     (iii) Procedures for exoneration and surrendering defendants into custody;

     (iv) Civil liability;

     (v) Civil rights of persons who are detained in custody. The knowledge in law may be accomplished through self-study. Self-study applicants must submit a written statement attesting to their knowledge in the subjects as stated in this section.

     (b) Procedures for field operations, including, but not limited to:

     (i) Use of force and degrees of force;

     (ii) Safety techniques;

     (iii) Entering and searching buildings;

     (iv) Custody and transportation of prisoners including persons who are mentally ill or under the influence of alcohol or drugs;

     (v) Defensive tactics;

     (vi) Power of arrest;

     (vii) Contracts;

     (viii) Powers of a bail bond recovery agent;

     (c) The basic principles of identifying and locating defendants. Public records and confidentially; surveillance.

     (5) Proof of firearm training shall be submitted by applicants who intend to carry a firearm while engaging in the business of a bail bond recovery agent, or while traveling to or from such business. Such proof may be established by submission of a firearm certification issued by the criminal justice training commission.

     (6) Proof of training certification in the following tools: Taser X/M26, baton either expandable, straight stick, or side handle, and oleo capsicum resin sprays or foams rated at 100,000 to 2,000,000 Scoville Heat Units.

     (7) Return completed applications to:

     Department of Licensing

     Bail Bond Program

     P.O. Box 9048

     Olympia, WA 98507-9048

     (8))) thirty-two hours of field operations classes as stated in WAC 308-19-305;

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

     (9) After the department receives the completed application and fees, a notification regarding examination dates and times will be mailed to the address of the applicant by the department.));

     (7) Pass a written exam administered by the department.

[Statutory Authority: Chapter 18.185 RCW. 05-08-027, § 308-19-101, filed 3/30/05, effective 4/30/05.]

     (((1) The department shall provide fingerprint cards to all applicants.

     (2))) Applicants shall be fingerprinted by a law enforcement agency on a fingerprint card provided by the department and pay any fees required by the law enforcement agency providing the fingerprinting service.

     (((3) Applicants shall submit the completed fingerprint card to the Washington state patrol with the appropriate fees charged under WAC 446-20-600, Fees. Checks or money orders made payable to the Washington state patrol, identification and criminal history section, shall be mailed with the fingerprint card to P.O. Box 42633, Olympia, Washington 98504-2633.

     (4) Results of the background checks will be sent directly to the department.

     (5) If the fingerprint card is rejected by Washington state patrol or the Federal Bureau of Investigation, the applicant will be notified by the department that the applicant must be reprinted and resubmit the fingerprint card to the Washington state patrol with the rejected cards and the attached reject slip.))

[Statutory Authority: Chapter 18.185 RCW. 05-08-027, § 308-19-102, filed 3/30/05, effective 4/30/05.]

Title of Fee	Fee
Bail bond agency/branch office:
Application	$1,200.00
License renewal	((1,000.00)) 1,150.00
Late renewal with penalty	1,200.00
Bail bond agent:
Original license	500.00
License renewal	((500.00)) 575.00
Late renewal with penalty	600.00
Change of qualified agent	250.00
Original endorsement to the bail bond      agent license	100.00
Endorsement renewal	100.00
Endorsement renewal with penalty	150.00
Bail bond recovery agent license:
Original license	((400.00)) 450.00 (includes background check fees)
License renewal	((400.00)) 475.00
Late renewal with penalty	500.00
Examinations:
Reexamination fee	25.00

[Statutory Authority: Chapter 18.185 RCW. 06-21-082, § 308-19-130, filed 10/17/06, effective 11/17/06; 05-08-027, § 308-19-130, filed 3/30/05, effective 4/30/05. Statutory Authority: RCW 43.24.086 and chapter 18.185 RCW. 02-07-067, § 308-19-130, filed 3/18/02, effective 7/1/02. Statutory Authority: 1993 c 260 § 13. 93-21-053, § 308-19-130, filed 10/18/93, effective 11/18/93.]

     (2) Licenses and endorsements must be renewed each year on or before the date of expiration and a renewal fee as prescribed by the director in WAC 308-19-130 must be paid.

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

     (5) No bail bond agent, or bail bond agency shall engage in the sale or issuance of bail bonds if their license has expired. No bail bond recovery agent shall perform the duties of a bail bond recovery agent if his/her license has expired.

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

     (7) By renewing the bail bond agent, bail bond recovery agent, or bail bond qualified agent license with the department, the licensee is making declaration that they have met the requirements for annual continued education.

[Statutory Authority: Chapter 18.185 RCW. 05-08-027, § 308-19-140, filed 3/30/05, effective 4/30/05; 04-01-021, § 308-19-140, filed 12/8/03, effective 1/12/04; 00-01-061, § 308-19-140, filed 12/13/99, effective 1/13/00. Statutory Authority: 1993 c 260 § 13. 93-21-053, § 308-19-140, filed 10/18/93, effective 11/18/93.]

     (2))) Beginning November 1, 2008, all bail bond agents and qualified agent applicants must provide proof of twelve hours of training or take a written state exam and achieve a passing score of at least eighty-five percent.

     (a) The prelicense training must consist of eight hours of instruction provided by a credentialed trainer or other department approved source in the topic requirements listed below in subsection (3) of this section;

     (b) The prelicense training must also consist of four hours of self study or formal training in the laws and rules relating to bail bonds.

     (2) Proof of the eight hours of prelicense instruction provided by a credentialed trainer or other department approved source must be submitted with the bail bond agent or qualified agent application form provided by the department.

     (3) The prelicense bail bond agent training topic requirements include:

     (a) The basics of bail bonds;

     (b) Responsibilities of a bail bond agent;

     (c) Understanding power of attorney;

     (d) Court jurisdiction;

     (e) Articulated offense;

     (f) Understanding the liability in surety bonds;

     (g) Role in criminal justice;

     (h) The rights of the clients;

     (i) Ethics pertaining to how to treat your clients;

     (j) Sexual harassment between agents and clients;

     (k) Transporting clients;

     (l) Phone service in jails;

     (m) How to be in compliance with jail requirements;

     (n) Collect call companies;

     (o) Harassment and no contact orders of the client;

     (p) Collateral;

     (q) General recordkeeping;

     (r) Contracts;

     (s) Basic requirements of bail bond recovery agents;

     (t) Understanding of the privacy laws;

     (u) The basics of notaries;

     (v) Basic understanding of the trust account; and

     (w) Application of the Consumer Protection Act.

     (4) Approved sources for bail bond agent prelicense training include:

     (a) National or local industry associations;

     (b) Certified bail agent on-line education courses;

     (c) Credentialed licensed bail bond agents; and

     (d) Other sources determined by the department.

     (5) The examination requirement for ((bail bond agency or)) qualified bail bond agent license applicants under RCW 18.185.030 (1)(a), shall also include, as a minimum:

     (a) All of the subjects as listed in subsection (((1)(a))) (3) of this section; and

     (b) 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.)) (6) 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)) seven 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: Chapter 18.185 RCW. 05-08-027, § 308-19-300, filed 3/30/05, effective 4/30/05; 00-01-061, § 308-19-300, filed 12/13/99, effective 1/13/00. Statutory Authority: 1993 c 260 § 13. 93-21-053, § 308-19-300, filed 10/18/93, effective 11/18/93.]

     (2) Continued education must be in the following topic areas:

     (a) How to work with the courts systems;

     (b) Refresher course relating to relative laws;

     (c) Ethics;

     (d) Transporting defendants between other states; and

     (e) Other topics applicable to the profession.

     (3) Approved continued education providers include:

     (a) National or local industry associations;

     (b) Certified bail agent on-line education courses; and

     (c) Other sources determined by the department.

     (4) Continued education hours cannot be carried forward to the following year.

     (a) A licensee may not repeat a course for credit during the same renewal period.

     (b) Continued education courses must be taken within the same year of the renewal period.

     (c) Licensees acting as a credentialed trainer of an approved continued education course will receive the same credit for the course they teach as the licensees attending receive.

     (5) By renewing the bail bond agent or bail bond qualified agent license with the department, the licensee is making declaration that they have met the requirements for annual continued education.

[]

     (a) Prelicense training in civil or criminal law can be achieved through public or private instruction or self-study and must include the following training topics:

     (i) State statutes relating to bail regulations;

     (ii) Constitutional law;

     (iii) Procedures for surrendering defendants into custody;

     (iv) Procedures for exoneration;

     (v) Civil liability;

     (vi) Civil rights of persons who are detained in custody;

     (vii) Basic principles of identifying and locating defendants to include public records and confidentially, and surveillance;

     (viii) Contracts;

     (ix) Powers of a bail bond recovery agent;

     (b) Prelicense training in procedures for field operations can be achieved through public or private instruction and must include the following training and certifications:

     (i) Training in use of force and degrees of force, including verbal, Taser X/M26, baton either expandable, straight stick, or side handle, and oleo capsicum resin sprays or foams rated at 100,000 to 2,000,000 Scoville Heat Units((.));

     (ii) ((Certification in the following defensive tools, Taser X/M26, baton either expandable, straight stick, or side handle, and oleo capsicum resin sprays or foams rated at 100,000 to 2,000,000 Scoville Heat Units within twelve months of applying for a license or endorsement;

     (iii))) Safety techniques;

     (((iv))) (iii) Entering and searching buildings;

     (((v))) (iv) The custody and transportation of prisoners including persons who are violent, emotionally disturbed or under the influence of alcohol, or drugs;

     (((vi))) (v) Defensive tactics;

     (((vii))) (vi) Application of restraints/handcuffing procedures;

     (((viii))) (vii) All applicants shall obtain ((firearm)) gun safety training from an approved trainer, or applicants intending to carry a firearm as a bail bond recovery agent shall obtain and keep current firearm certification from the criminal justice training commission;

     (viii) Certification in the following defensive tools: Taser X/M26, baton either expandable, straight stick, or side handle, and oleo capsicum resin sprays or foams rated at 100,000 to 2,000,000 Scoville Heat Units within twelve months of applying for a license or endorsement.

     (2) In place of completing the prelicense training in procedures for field operations established in subsection (1) of this section required under RCW 18.185.260, an applicant may submit proof to the department that he/she has completed a course of training required by a municipal, state or federal law enforcement agency or a branch of the armed forces to carry out the duties of a peace officer within the past six years.

     (((3) Applicants may submit proof of previously meeting prelicense training requirements in procedures for field operations in subsection (1) of this section between May 1, 2005, and July 1, 2005. The purpose of this rule is to allow applicants advance notice whether or not the applicant will be required to take additional training before the license requirements are in effect on January 1, 2006. The proof must be submitted in writing and include: The applicant's name, address and telephone number, the name, address, and telephone number of the training facility attended, a copy of the training curriculum which the applicant received training in, including the number of hours devoted to each topic, and documentation of certification of training accomplishments related to the training requirements set forth in subsection (1) of this section. The department will issue written notification to the applicant, stating acceptance of the prelicense training received, or a written notification and explanation for the department's denial of the prelicense training received.

     (4) The training the applicant receives should prepare the applicant to achieve a passing score on the written examination administered under chapter 18.185 RCW.))

[Statutory Authority: Chapter 18.185 RCW. 05-08-027, § 308-19-305, filed 3/30/05, effective 4/30/05.]

[Statutory Authority: Chapter 18.185 RCW. 05-08-027, § 308-19-310, filed 3/30/05, effective 4/30/05.]

     (2) If a bail recovery agent carries a firearm, or other weapons, it is their obligation to be recertified annually. The hours for firearm, or other weapons, recertification cannot be counted towards annual training hours.

     (3) By renewing the bail bond recovery agent license with the department, the licensee is making declaration that they have met the requirements for annual continued education.

[]

     (1) In addition to the minimum notification requirements of RCW 18.185.300, the notification to law enforcement must provide any prior known risk factors of which the bail bond recovery agent is aware including knowledge regarding any warrants.

     (2)(a) Beginning November 1, 2008, bail recovery agents shall report to the department within ten business days after a forced entry on a form provided by the department the following information:

     (i) Date and time of the forced entry;

     (ii) Location;

     (iii) Defendant name;

     (iv) Bail bond agent named on the recovery contract;

     (v) Bail recovery agent names who participated in the forced entry;

     (vi) Was any person present during the forced entry injured?

     (vii) Was property damaged?

     (viii) Was the defendant present?

     (ix) Was the defendant surrendered to jail?

     (b) The Forced Entry Reporting Form can be submitted to the department by e-mail, fax or regular postage mail to the address information on the form.

[Statutory Authority: Chapter 18.185 RCW. 05-08-027, § 308-19-450, filed 3/30/05, effective 4/30/05.]

© Washington State Code Reviser's Office