SF 3358

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 03/26/2024 10:05am

A bill for an act
relating to insurance; codifying bail bond standards and regulations; proposing
coding for new law as Minnesota Statutes, chapter 60M.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [60M.01] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Terms. new text end

new text begin For the purposes of this chapter, the terms defined in this section
have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Bail bond agency. new text end

new text begin "Bail bond agency" means an agency contracted by a surety
to supervise or otherwise manage the bail bond business written in Minnesota by producers
appointed by the surety.
new text end

new text begin Subd. 3. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of commerce.
new text end

new text begin Subd. 4. new text end

new text begin Department. new text end

new text begin "Department" means the Department of Commerce.
new text end

new text begin Subd. 5. new text end

new text begin Negotiate. new text end

new text begin "Negotiate" means the act of conferring directly with or offering
advice directly to a purchaser or prospective purchaser of a particular insurance contract
concerning any of the substantive benefits, terms, or conditions of the contract, if the person
engaged in the act either sells insurance or obtains insurance from insurers for purchasers.
new text end

new text begin Subd. 6. new text end

new text begin Net premium. new text end

new text begin "Net premium" means a bond's premium, less any commission
agreed to in advance and in writing between a producer and the surety or bail bond agency.
new text end

new text begin Subd. 7. new text end

new text begin Personal information. new text end

new text begin "Personal information" has the meaning given in section
72A.491, subdivision 17.
new text end

new text begin Subd. 8. new text end

new text begin Privileged information. new text end

new text begin "Privileged information" has the meaning given in
section 72A.491, subdivision 19.
new text end

new text begin Subd. 9. new text end

new text begin Producer. new text end

new text begin "Producer" means a person that works for a supervising bail bond
agency and is appointed by a surety to execute or countersign bail bonds for the surety in
connection with judicial proceedings.
new text end

new text begin Subd. 10. new text end

new text begin Sell. new text end

new text begin "Sell" means to exchange on behalf of an insurance company an insurance
contract by any means for money or money's equivalent.
new text end

new text begin Subd. 11. new text end

new text begin Solicit. new text end

new text begin "Solicit" means: (1) any written or printed presentation or advertising
made by mail or other publication which implies that an individual is licensed to sell bail
bonds; (2) an oral presentation or advertising in person or by means of telephone, radio, or
television, which implies that an individual is licensed to sell bail bonds; (3) an activity in
arranging for bail which results in compensation or anything of value to the individual
conducting that activity; or (4) an attempt to sell or ask or urge a person to apply for a bail
bond from a surety.
new text end

new text begin Subd. 12. new text end

new text begin Surety. new text end

new text begin "Surety" means a domestic, foreign, or alien insurance company that
is licensed to transact surety business in Minnesota under section 60A.06.
new text end

Sec. 2.

new text begin [60M.02] PREMIUMS.
new text end

new text begin Subdivision 1. new text end

new text begin Premiums; generally. new text end

new text begin (a) Regardless of whether a producer is an
employee or an independent contractor, a producer must charge the approved, filed rate of
the surety being used to post a bail bond. Except as provided in subdivision 2 or in a situation
where cash bail is set by the court under subdivision 5, the rate charged must not be less
than the surety's filed rate.
new text end

new text begin (b) A producer is prohibited from providing a premium rebate.
new text end

new text begin (c) A producer may charge travel or other related fees, provided the producer complies
with section 60K.46, subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Minimum premium. new text end

new text begin A producer must charge a minimum premium of $100.
Any premium amount must be included in the surety's rate filing with the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin Bail bonds less than $10,000. new text end

new text begin (a) A producer is prohibited from posting a bail
bond with a penal sum of $10,000 or less unless the producer has:
new text end

new text begin (1) received at least 50 percent of the total premium owed under the surety's rate filing;
new text end

new text begin (2) provided the premium's payer with a receipt that indicates the premium paid; and
new text end

new text begin (3) if the payment in full is not made before posting the bond, obtained a promissory
note from the premium payer that requires the premium payer to pay the unpaid premium
in full within 120 days after the date the bond is posted.
new text end

new text begin (b) A promissory note issued under paragraph (a), clause (3), must be made on a surety
or bail bond agency form that has been approved by the commissioner. The maximum
interest rate allowed in a promissory note under this subdivision is six percent. A promissory
note may authorize collection of the actual costs incurred to collect the premium, including
reasonable attorney fees, in the event of a default.
new text end

new text begin Subd. 4. new text end

new text begin Bail bonds greater than $10,000. new text end

new text begin (a) A producer is prohibited from posting
a bail bond with a penal sum greater than $10,000 unless the producer has:
new text end

new text begin (1) received at least 30 percent of the total premium owed under the surety's rate filing;
new text end

new text begin (2) provided the premium's payer with a receipt that indicates the premium paid; and
new text end

new text begin (3) if the payment in full is not made before posting the bond, obtained a promissory
note from the premium payer that requires the premium payer to pay the unpaid premium
in full, making at a minimum equal monthly payments, within 12 days of the date the bond
is posted.
new text end

new text begin (b) A promissory note issued under paragraph (a), clause (3), must be made on a surety
or bail bond agency form that has been approved by the commissioner. The maximum
interest rate allowed in a promissory note under this subdivision is six percent. A promissory
note may authorize collection of the actual costs incurred to collect the premium, including
reasonable attorney fees, in the event of a default.
new text end

new text begin Subd. 5. new text end

new text begin Alternative premium structure. new text end

new text begin (a) A bail bond agency or principal may
include an alternative premium structure as part of the bail bond agency or producer's surety
rate filing submitted to the commissioner. The commissioner may approve the alternative
premium structure's use in circumstances as provided under this subdivision.
new text end

new text begin (b) If a court sets bail at 15 percent or less of the bond's penal amount, a surety, bail
bond agency, or principal may charge an alternative premium that is as low as one-half of
the cash bail amount set by the court. An alternative premium charged under this subdivision
is subject to the minimum premium requirement under subdivision 2.
new text end

new text begin (c) A bail bond agency or principal is required to obtain from the court documentation
indicating the cash bail amount set by the court and must maintain the documentation in
the bond file.
new text end

new text begin (d) A bail bond agency and producer must maintain a log of all bonds where an alternative
premium was charged under this subdivision.
new text end

new text begin (e) Subdivisions 3 and 4 apply to the payment of an alternative premium structure under
this subdivision.
new text end

new text begin Subd. 6. new text end

new text begin Late payments. new text end

new text begin If a payment, including a minimum monthly payment, that is
required under a promissory note executed pursuant to subdivision 3 or 4 is more than 90
days late, the bail bond agency or producer must, within 20 days of the date a payment
becomes 90 days late:
new text end

new text begin (1) for amounts owed that are $1,000 or less, assign the debt to a Minnesota-licensed
debt collector; or
new text end

new text begin (2) for amounts owed that are greater than $1,000:
new text end

new text begin (i) file a civil action against the delinquent premium payer; and
new text end

new text begin (ii) make all reasonable efforts to: (A) serve a summons and complaint; (B) enter
judgment, unless the matter is settled while the action is pending; and (C) enforce the
judgment, which may be satisfied by assigning the debt to a licensed debt collector.
new text end

new text begin Subd. 7. new text end

new text begin Form of payment. new text end

new text begin A surety, bail bond agency, or producer must accept only
cash, money orders, checks, wire transfers, electronic funds transfers, debit cards, prepaid
cash cards, or credit cards as a premium payment method. Any balance owed must be
evidenced by a promissory note, as provided under subdivision 3 or 4.
new text end

new text begin Subd. 8. new text end

new text begin Payments made directly to producer; premium trust account. new text end

new text begin (a) Unless
payment was previously forwarded to the surety or bail bond agency, within five business
days of the date a bond is posted or a payment is made on a promissory note, a producer
must deposit payments directly to the producer into a premium trust account that the producer,
bail bond agency, or surety maintains.
new text end

new text begin (b) A premium trust account must be used only for premium payments and travel or
other related fees authorized under subdivision 1, paragraph (c). A producer, bail bond
agency, or surety is prohibited from depositing any other money into a premium trust
account.
new text end

new text begin (c) A deposit into a premium trust account must be accompanied by a deposit slip that:
(1) separately designates the source of the deposit; and (2) lists the power of attorney number
for the bond that the premium is being collected on.
new text end

new text begin (d) Money may be withdrawn from a producer's premium trust account only to:
new text end

new text begin (1) pay the net premium to the surety or bail bond agency;
new text end

new text begin (2) pay a surety or bail bond agency any build-up fund or escrow account required by
a contract executed by the producer and the surety or bail bond agency;
new text end

new text begin (3) pay travel or other related fees authorized under subdivision 1, paragraph (c);
new text end

new text begin (4) pay the producer any fees or charges deducted electronically by credit card processing
vendors, provided the fees and charges comply with section 60K.46, subdivision 2; and
new text end

new text begin (5) distribute any excess amounts to the producer's operating account.
new text end

Sec. 3.

new text begin [60M.03] COLLATERAL.
new text end

new text begin Subdivision 1. new text end

new text begin Collateral generally. new text end

new text begin (a) When collateral is accepted, the producer, or
a surety or bail bond agency if collateral is provided directly to the surety or bail bond
agency, must provide a written, numbered receipt to the individual on whose behalf the
collateral is being held. The receipt must:
new text end

new text begin (1) contain the date; depositor's name and address; bail bond agency's name and address;
surety's name and address; defendant's name; bond amount; and cash amount or a detailed
description of the collateral, if the collateral is not cash; and
new text end

new text begin (2) be signed by: (i) the producer, surety, or bail bond agency; and (ii) the individual on
whose behalf the collateral is being held.
new text end

new text begin (b) Collateral must be reasonably cared for in a manner that complies with this section
and other law.
new text end

new text begin Subd. 2. new text end

new text begin Collateral received; transfer; control. new text end

new text begin (a) Except as otherwise provided under
paragraph (b), a producer or bail bond agency must transfer all cash and noncash collateral
that the producer or bail bond agency receives to the surety.
new text end

new text begin (b) A surety may, at the surety's discretion, permit: (1) a producer to transfer all cash
and noncash collateral that the producer receives to the bail bond agency; and (2) the bail
bond agency to retain possession and control over the cash and noncash collateral without
transferring the cash and noncash collateral to the surety. If a surety exercises the surety's
discretion under this paragraph, the bail bond agency assumes the surety's responsibilities
and responsibilities under this section. A producer is prohibited from retaining possession
or control of cash or noncash collateral beyond the time periods established in this section.
new text end

new text begin Subd. 3. new text end

new text begin Cash collateral trust account. new text end

new text begin (a) All cash collateral must be deposited into
a cash collateral account maintained by a surety within five business days of the date the
cash collateral is received.
new text end

new text begin (b) All checks, money orders, wire transfers, or similar money transfer for collateral
must be made payable to the bail bond agency and deposited into the surety's or bail bond
agency's collateral account within ten business days of the date the payment was received.
new text end

new text begin (c) When required by law, a bail bond agency or producer must: (1) file an IRS Form
8300 and informational notice; and (2) retain a copy of the filed IRS Form 8300 and
informational notice in the bail bond agency's or producer's files.
new text end

new text begin Subd. 4. new text end

new text begin Separate cash collateral account. new text end

new text begin At the surety's discretion, the surety or a
bail bond agency may maintain a separate cash collateral trust account. A cash collateral
trust account may be an interest-bearing account or a noninterest-bearing account. If the
separate cash collateral trust account is an interest-bearing account, the interest earned is
for the benefit of the individual on whose behalf the collateral is being held.
new text end

new text begin Subd. 5. new text end

new text begin Surety liable. new text end

new text begin The surety is liable to return any cash or noncash collateral that
a producer or bail bond agency collects, even if the collected collateral is not transferred to
the surety.
new text end

new text begin Subd. 6. new text end

new text begin Prohibitions. new text end

new text begin (a) A surety, bail bond agency, or producer is prohibited from
collecting collateral in excess of the bond's penal sum.
new text end

new text begin (b) A surety, bail bond agency, or producer is prohibited from using collateral for personal
benefit or gain.
new text end

new text begin (c) A surety, bail bond agency, or producer is prohibited from taking a quitclaim deed
on real property as collateral for a bond.
new text end

new text begin Subd. 7. new text end

new text begin Collateral log. new text end

new text begin (a) A bail bond agency or producer must maintain a collateral
log that includes:
new text end

new text begin (1) the power of attorney number;
new text end

new text begin (2) the defendant's name;
new text end

new text begin (3) the depositor's name;
new text end

new text begin (4) the cash collateral amount, including whether the cash collateral is being held in an
interest-bearing account;
new text end

new text begin (5) if the collateral is noncash collateral, a detailed description of the collateral;
new text end

new text begin (6) the date the collateral was taken; and
new text end

new text begin (7) the dates the collateral was sent to the surety, returned to the depositor, liquidated,
or applied to a loss or cost incurred by the producer, bail bond agency, or surety.
new text end

new text begin (b) For purposes of paragraph (a), an indemnity agreement does not constitute collateral
and is not required to be included in the collateral log. For purposes of paragraph (a), clause
(7), the amount of a loss incurred must be listed separately from other costs in the collateral
log.
new text end

new text begin Subd. 8. new text end

new text begin Mortgages and deeds of trust. new text end

new text begin (a) A mortgage or deed of trust, if applicable
for property located outside of Minnesota, taken as collateral for a bond must name the
surety as a mortgagee. At the discretion of the surety, a bail bond agency may be named as
the mortgagee in lieu of the surety being named as the mortgagee.
new text end

new text begin (b) A producer is prohibited from being named as a mortgagee for a mortgage or deed
of trust taken as collateral for a bond.
new text end

new text begin Subd. 9. new text end

new text begin Return of collateral. new text end

new text begin (a) A surety or bail bond agency that controls the collateral
must return cash and noncash collateral to the depositor named in the collateral receipt
within 21 days of the date the depositor provides the surety or bail bond agency with written
proof that the bond has been discharged.
new text end

new text begin (b) If the depositor owes the surety, bail bond agency, or producer a premium; is liable
for a loss or expense related to a breach of the bond; or is liable pursuant to the terms of an
indemnity or other agreement, the surety or bail bond agency may retain from the collateral
all money required to satisfy the depositor's debts.
new text end

new text begin (c) If all of the depositor's debts secured by collateral are satisfied, the surety or bail
bond agency must file documentation to release any liens, security interests, mortgages, or
other security interests that were filed or obtained in relation to the collateral. The
documentation must be filed within 21 days of the date the depositor provides the surety or
bail bond agency with written proof that the bond has been discharged.
new text end

new text begin Subd. 10. new text end

new text begin Bond or indemnity agreement; breach. new text end

new text begin If a bond or indemnity agreement
is breached and the surety, bail bond agency, or producer suffers a loss, the surety or bail
bond agency that controls the collateral must send to the depositor written notice that notifies
the depositor that the surety or bail bond agency intends to liquidate noncash collateral. The
written notice must be sent by certified mail to the depositor's last known address at least
30 days before the date the surety or bail bond agency liquidates the noncash collateral.
new text end

new text begin Subd. 11. new text end

new text begin Compliance with Minnesota law. new text end

new text begin Any action taken to enforce or foreclose
on cash or noncash collateral must comply with Minnesota law.
new text end

new text begin Subd. 12. new text end

new text begin Collateral documentation; audit and inspection. new text end

new text begin (a) All collateral and related
documentation held in trust by the surety or bail bond agency must be made available for
immediate audit and inspection by the department.
new text end

new text begin (b) All collateral and related documentation held in trust by the bail bond agency must
be made available for immediate audit and inspection by the surety.
new text end

Sec. 4.

new text begin [60M.04] PRODUCER AUDITS.
new text end

new text begin Subdivision 1. new text end

new text begin Premium audits. new text end

new text begin (a) By April 30 each year, a surety must audit each
licensed bail bond producer's bonds written during the previous calendar year to ensure the
licensed bail bond producer has complied with this subdivision.
new text end

new text begin (b) The premium audits must include a review of an adequate sample of bonds written
by each bail bond producer. A review sample is adequate if it consists of the lesser of: (1)
20 percent of the bonds written by the bail bond producer; (2) 24 bonds; or (3) all of the
bonds written by the bail bond producer, if the bail bond producer wrote fewer than 12
bonds during the previous calendar year. The audit sample must include the four largest
bonds written by the bail bond producer and four bonds that charged an alternative premium
under section 60M.02, subdivision 5, if applicable. Of the remaining bonds audited and to
the extent the quantity of bonds supports the percentages, 50 percent must be randomly
selected bonds with a penal sum that is $10,000 or less, and 50 percent must be randomly
selected bonds with a penal sum that is greater than $50,000.
new text end

new text begin (c) The premium audit must be conducted at the producer's office or the bail bond
agency's office, depending on which entity maintains the physical records. The surety must
not disclose to the producer or bail bond agency, or anyone affiliated with the surety or bail
bond agency, which files the surety intends to audit until the surety's on-site audit of the
producer begins.
new text end

new text begin (d) For each bond audited, the surety must confirm that:
new text end

new text begin (1) the proper premium was charged and collected, including a review of the premium
account statements and deposit slips;
new text end

new text begin (2) a proper premium receipt is in the producer's file;
new text end

new text begin (3) if the full premium was not paid before the bond was posted, a proper promissory
note was executed;
new text end

new text begin (4) if the premium was not paid as required, a lawsuit was filed; and
new text end

new text begin (5) all reasonable efforts were made to: (i) serve the summons and complaint; (ii) enter
judgment, unless the matter was settled while the action was pending; and (iii) enforce the
judgment.
new text end

new text begin (e) An annual premium audit under this section must also include a follow-up review
of each bond audited the previous year for which full premium had not yet been collected
at the time the audit occurred. For each bond subject to a follow-up review, the surety must:
(1) review the premium account and deposit slips to confirm that the full premium was
collected; or (2) if full payment of the premium was not received, confirm that: (i) the
required action was filed; (ii) all reasonable efforts were made to enter judgment, unless
the matter was settled while the action was pending; and (iii) all reasonable efforts were
made to enforce the judgment.
new text end

new text begin Subd. 2. new text end

new text begin Collateral audits. new text end

new text begin (a) By April 30 each year, a surety must audit each licensed
bail bond producer's bonds written during the previous calendar year to ensure the licensed
bail bond producer has complied with this subdivision.
new text end

new text begin (b) A collateral audit under this subdivision must include confirmation that:
new text end

new text begin (1) a collateral log was maintained;
new text end

new text begin (2) a cash collateral account exists;
new text end

new text begin (3) the balance of the cash collateral indicated on the collateral log is identical to the
amount held in the collateral trust account; and
new text end

new text begin (4) a collateral receipt exists for collateral collected, as represented by a sampling of the
lesser of: (i) 20 percent of all bonds secured by collateral; or (ii) 12 bonds that were secured
by collateral.
new text end

new text begin Subd. 3. new text end

new text begin Audits report. new text end

new text begin (a) By May 31 each year, a surety must prepare a report of the
audits conducted under this section during that year. The report must include:
new text end

new text begin (1) a list of the bonds audited under subdivision 1 for each producer, including the power
of attorney number used for each audited bond and whether full premium payment was
made by the date the audit occurred;
new text end

new text begin (2) a list of the bonds included in a follow-up review of the previous year's audit,
including whether full premium payment was collected by the date the audit occurred;
new text end

new text begin (3) the compliance certifications required under section 60M.07, subdivision 4; and
new text end

new text begin (4) details regarding any violations discovered during the audit or a statement that no
violations were discovered, as applicable.
new text end

new text begin (b) The annual report under this subdivision must be maintained for a period of at least
36 months from the date the report is complete. Annual reports must be submitted to the
commissioner by June 30 each year.
new text end

Sec. 5.

new text begin [60M.05] SOLICITATION.
new text end

new text begin Subdivision 1. new text end

new text begin Solicitation generally. new text end

new text begin (a) A producer is prohibited from, in or on the
grounds of a jail, prison, or other location where an incarcerated person is confined, or in
or on the grounds of a court:
new text end

new text begin (1) approaching, enticing, inviting, or soliciting a person to use a bail bondsman's services;
new text end

new text begin (2) distributing, displaying, or wearing an item that advertises a bail bondsman's services;
or
new text end

new text begin (3) otherwise soliciting business as a bail bondsman.
new text end

new text begin (b) Notwithstanding paragraph (a), clause (3), permissible print advertising in a jail is
limited to:
new text end

new text begin (1) a listing in a telephone directory; and
new text end

new text begin (2) posting the producer's or bail bond agency's name, address, and telephone number
in a designated location within the jail, as approved by the jail.
new text end

new text begin Subd. 2. new text end

new text begin Identification; marketing material. new text end

new text begin A producer is prohibited from wearing
or displaying any information, other than identification approved by the surety or bail bond
agency, which constitutes marketing material that a surety or bail bond agency must approve
and maintain under Minnesota Rules, chapter 2790. A producer is prohibited from displaying
any information constituting marketing material in or on the property or grounds of: (1) a
jail, prison, or other location where incarcerated people are confined; or (2) a court.
new text end

new text begin Subd. 3. new text end

new text begin Other prohibited conduct. new text end

new text begin (a) A producer is prohibited from loitering in or
about the courthouse, jail, or any other place where individuals are held in custody.
new text end

new text begin (b) A producer is prohibited from making unauthorized and unsolicited cold calls without
having first spoken with or having a connection to a criminal defendant.
new text end

new text begin (c) A producer or bail bond agency is prohibited from initiating in-person or telephone
solicitation before 8:00 a.m. or after 9:00 p.m.
new text end

new text begin (d) A producer is prohibited from soliciting a bond to a person by recorded or electronic
communication, or by live telephone contact, unless the producer otherwise complies with
applicable state and federal law, including but not limited to:
new text end

new text begin (1) the National Do Not Call Registry under Code of Federal Regulations, title 16, part
310; and
new text end

new text begin (2) the Telephone Consumer Protection Act of 1991, Code of Federal Regulations, title
47, part 64.1200.
new text end

new text begin (e) A surety, bail bond agency, or producer is prohibited from obtaining a credit check
on a person unless the person has authorized the surety, bail bond agency, or producer to
do so in writing. The surety, bail bond agency, or producer must retain the written
authorization provided by the person subject to the credit check.
new text end

new text begin Subd. 4. new text end

new text begin Compliance with other law. new text end

new text begin (a) A surety, bail bond agency, and producer
must comply with all federal and state privacy laws related to information provided to a
producer during the application process and during bond underwriting by a bond principal,
indemnitor, or other person.
new text end

new text begin (b) A surety, bail bond agency, and producer must comply with sections 60K.46,
subdivision 6; 72A.494; 72A.496, subdivision 1; 72A.501; and 72A.502, subdivision 1.
new text end

new text begin (c) A surety, bail bond agency, and producer must receive preauthorization before
collecting and disclosing personal or privileged information about an applicant or proposed
insured, and must provide all notices otherwise required by Minnesota law.
new text end

new text begin (d) A surety, bail bond agency, and producer must otherwise comply with all applicable
Minnesota law.
new text end

new text begin Subd. 5. new text end

new text begin Insurance transaction. new text end

new text begin The act of soliciting, underwriting, negotiating, or
selling a bail bond constitutes an insurance transaction.
new text end

Sec. 6.

new text begin [60M.06] UNLICENSED INDIVIDUALS; NO REBATES OR PAYMENT.
new text end

new text begin (a) A surety, bail bond agency, or producer is prohibited from paying a fee or commission,
or otherwise giving or promising anything of value, to: (1) a jailer, police officer, peace
officer, or any other person who has the power to arrest or hold an individual in custody;
or (2) a judge, public official, or public employee.
new text end

new text begin (b) A surety, bail bond agency, or producer is prohibited from paying a fee or rebate, or
otherwise giving or promising anything of value, to the individual seeking the producer's
services or the individual seeking the producer's services on another individual's behalf.
new text end

new text begin (c) A surety, bail bond agency, or producer is prohibited from paying a fee or commission,
or otherwise giving or promising anything of value, to a person for selling, soliciting, or
negotiating a bail bond if the person is not properly licensed as a producer.
new text end

new text begin (d) A surety, bail bond agency, or producer is prohibited from paying a fee, rebate, or
commission, or otherwise giving or promising anything of value, to an inmate for referring
business or for any other reason related to soliciting, negotiating, or selling a bail bond.
new text end

Sec. 7.

new text begin [60M.07] OTHER PROVISIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Compliance with standards of conduct. new text end

new text begin A producer must comply with
the Minnesota Court Administrator's Office's bail bond procedures and standards of conduct,
including but not limited to while in or on the property of courts, jails, or other detention
facilities in Minnesota. A surety or bail bond agency must require the surety or bail bond
agency's producers to affirm that the producer complies with any changes to the bail bond
procedures and standards of conduct as the changes are posted to the Minnesota state court
website or the Minnesota Court Administrator's Office's website.
new text end

new text begin Subd. 2. new text end

new text begin No waiver. new text end

new text begin A producer is prohibited from soliciting or accepting a waiver of
any requirement under this chapter.
new text end

new text begin Subd. 3. new text end

new text begin Record maintenance. new text end

new text begin (a) A bail bond agency and producer must maintain the
following records on each bond for at least seven years after the date the bond is terminated:
new text end

new text begin (1) power of attorney;
new text end

new text begin (2) premium receipts;
new text end

new text begin (3) the promissory note for unpaid premium, if any;
new text end

new text begin (4) the cash bond amount set by the court, if an amount less than the filed rate is accepted
for the premium;
new text end

new text begin (5) all documents related to any lawsuit filed to collect the premium;
new text end

new text begin (6) indemnity agreements;
new text end

new text begin (7) collateral receipts, if any;
new text end

new text begin (8) proof that collateral was returned, if any;
new text end

new text begin (9) proof of bond exoneration or forfeiture payment;
new text end

new text begin (10) all records relating to liquidating and converting collateral, including fees or costs;
and
new text end

new text begin (11) proof of any expenses incurred or losses paid by the surety, bail bond agency, or
producer.
new text end

new text begin (b) A bail bond agency and producer must maintain all premium account, collateral
account, and operating account bank records, including deposit slips, for at least seven years
after the records are made available.
new text end

new text begin (c) All records that a bail bond agency or producer maintain under this chapter must be
kept in the bail bond agency or producer's office, as applicable. If a bail bond agency or
producer's relationship with a surety is terminated, the information and documentation must
be immediately transferred to:
new text end

new text begin (1) the bail bond agency, if the producer is terminated; or
new text end

new text begin (2) the surety, if the bail bond agency is terminated.
new text end

new text begin (d) A bail bond agency and producer's records must be available for the commissioner
or the surety to inspect, with or without notice.
new text end

new text begin Subd. 4. new text end

new text begin Compliance certification new text end new text begin . new text end

new text begin (a) During the surety's annual audit of a producer,
the producer must sign a compliance certification form that attests to the producer's
compliance with this chapter during the previous calendar year.
new text end

new text begin (b) Before a producer is appointed by a surety and at each license renewal thereafter, a
producer must sign an affidavit of compliance form in which the producer acknowledges
the producer is familiar and continually complies with the requirements under this chapter.
The surety must retain completed affidavits and send requested affidavits to the commissioner
within ten days of the date an affidavit is requested.
new text end

new text begin (c) The commissioner must establish the compliance certification and affidavit of
compliance forms for use under this subdivision.
new text end

new text begin Subd. 5. new text end

new text begin Producer termination; notice. new text end

new text begin (a) If a producer's relationship with a surety is
voluntarily or involuntarily terminated due to a violation of this chapter or because the
surety determined the producer violated this chapter during an annual audit, the surety must,
within 30 days of the date the producer is terminated, provide the commissioner with the
terminated producer's name and the reason the producer was terminated.
new text end

new text begin (b) Another surety is prohibited from appointing a producer subject to a termination
under paragraph (a) unless the department approves the appointment.
new text end