New Laws & Regulations

New Forfeiture Law Now Effective - 11-01-08

On April 11, 2008, Governor Brad Henry signed language supported by the Oklahoma Bondsman Association and authored by Senator Brian Crain and Representative Randy Terrill, Representative Ryan Kiesel, Representative Paul Roan and Representative Ben Sherrer. The new language found in Enrolled Senate Bill 1797 regarding SECTION 1332 - FORFEITURE PROCEDURE becomes effective November 1, 2008.

Please note the new language which is underlined and the deleted language which is stricken
found in §1332(C)(4), which reads as follows:

1. In addition to the provisions set forth in paragraphs 2 and 3 of this subsection, the bond shall be exonerated by operation of law in any case in which:

   a. the bondsman has requested in writing of the sheriff's department in the county where the forfeiture occurred that the defendant be entered into the computerized records of the National Crime Information Center, and

   b. the request has not been honored within fourteen (14) business days of the receipt of the written request by the department, or

   b. the defendant has been arrested outside of this state and the court records shows the prosecuting attorney has declined to proceed with extradition.

Section 1332. FORFEITURE PROCEDURE

A. If there is a breach of an undertaking, the court before which the cause is pending shall issue an arrest warrant for the defendant and declare the undertaking and any money, property, or securities that have been deposited as bail, forfeited on the day the defendant failed to appear. In the event of the forfeiture of a bail bond the clerk of the trial court shall, within thirty (30) days after the forfeiture, by mail with return receipt requested, mail a true and correct copy of the order and judgment of forfeiture to the bondsman, and if applicable, the insurer, whose risk it is, and keep at least one copy of the order and judgment of forfeiture on file; provided, the clerk shall not be required to mail the order and judgment of forfeiture to the bondsman or insurer if, within fifteen (15) days from the date of forfeiture, the defendant is returned to custody, the bond is reinstated by the court with the bondsman's approval, or the order of forfeiture is vacated or set aside by the court. Failure of the clerk of the trial court to comply with the thirty-day notice provision in this subsection shall exonerate the bond by operation of law.
B. The order and judgment of forfeiture shall be on forms prescribed by the Administrative Director of the Courts.
C. 1. The bail bondsman shall have ninety (90) days from receipt of the order and judgment of forfeiture from the court clerk or mailing of the notice if no receipt is made, to return the defendant to custody.
2. When the court record indicates that the defendant is returned to custody in the jurisdiction where forfeiture occurred, within the ninety-day period, the court clerk shall enter minutes vacating the forfeiture and exonerating the bond. If the defendant has been timely returned to custody, but this fact is not reflected by the court record, the court shall vacate the forfeiture and exonerate the bond.
3. For the purposes of this section, "return to custody" means:
a. the return of the defendant to the appropriate Oklahoma law enforcement agency by the bondsman,
b. an appearance of the defendant in open court in the court where charged,
c. arrest or incarceration within this state of the defendant by law enforcement personnel, or
d. arrest or incarceration of the defendant in any other jurisdiction, provided the bondsman has requested that a hold be placed on the defendant in the jurisdiction wherein the forfeiture lies and has guaranteed reasonable travel expenses for the return of the defendant.
4. In addition to the provisions set forth in paragraphs 2 and 3 of this subsection, the bond shall be exonerated by operation of law in any case in which:
a. the bondsman has requested in writing of the sheriff's department in the county where the forfeiture occurred that the defendant be entered into the computerized records of the National Crime Information Center, and the request has not been honored within fourteen (14) business days of the receipt of the written request by the department, or
b. the defendant has been arrested outside of this state and the court record shows the prosecuting attorney has declined to proceed with extradition.
5. The court may, in its discretion, vacate the order of forfeiture and exonerate the bond where good cause has been shown for:
a. the defendant's failure to appear, or
b. the bondsman's failure to return the defendant to custody within ninety (90) days.
D. 1. If, within ninety (90) days from receipt of the order and judgment of forfeiture from the court clerk, or mailing of the notice if no receipt is made, the defendant is not returned to custody, or the forfeiture has not been stayed, the bondsman and if applicable, the insurer whose risk it is shall deposit cash or other valuable securities in the face amount of the bond with the court clerk ninety-one (91) days from receipt of the order and judgment of forfeiture from the court clerk, or mailing of the notice if no receipt is made; provided, this provision shall not apply if the defendant has been returned to custody within the ninety-day period and the court has failed to vacate the forfeiture pursuant to paragraphs 2 through 5 of subsection C of this section.
2. After the order and judgment has been paid, the bondsman and, if applicable, the insurer whose risk it is shall have one year from the date payment is due to return the defendant to custody as defined by paragraph 3 of subsection C of this section. In the event the defendant is returned to custody and all expenses for the defendant's return have been paid by the bondsman or insurer, the bondsman's or insurer's property shall be returned; provided, the request for remitter be made by motion filed within one year from the date payment is due.
3. If the additional cash or securities are not deposited with the court clerk on or before the ninety-first day after the date of service of the order and judgment of forfeiture from the court clerk, or mailing of the notice if no receipt is made, then the court clerk shall notify the Insurance Commissioner by sending a certified copy of the order and judgment of forfeiture and proof that the bondsman and, if applicable, the insurer have been notified by mail with return receipt requested.
4. The Insurance Commissioner shall:
a. in the case of a surety bondsman, immediately cancel the license privilege and authorization of the insurer to do business within the State of Oklahoma and cancel the appointment of all surety bondsman agents of the insurer who are licensed by Section 1301 et seq. of this title, and
b. in the case of a professional bondsman, withdraw the face amount of the forfeiture from the deposit provided in Section 1306 of this title. The Commissioner shall then immediately direct the professional bondsman, by mail with return receipt requested, to make additional deposits to bring the original deposit to the required level. Should the professional bondsman, after being notified, fail to make an additional deposit within ten (10) days from the receipt of notice, or mailing of notice if no receipt is made, the license shall be revoked and all sums presently on deposit shall be held by the Commissioner to secure the face amounts of bonds outstanding. Upon release of the bonds, any amount of deposit in excess of the bonds shall be returned to the bondsman; provided, the bail bondsman shall have had notice as required by the court, at the place of the bondsman's business, of the trial or hearing of the defendant named in the bond. The notice shall have been at least ten (10) days before the required appearance of the defendant, unless the appearance is scheduled at the time of execution of the bond. Notwithstanding the foregoing, the bondsman shall be deemed to have had notice of the trial or hearing if the defendant named in the bond shall have been recognized back in open court to appear at a date certain for the trial or hearing.
5. If the actions of any bail bondsman force the Insurance Commissioner to withdraw monies, deposited pursuant to Section 1306 of this title, to pay past due executions more than two (2) times in a consecutive twelve-month period, then the license of the professional bondsman shall, in addition to other penalties, be suspended automatically for one (1) year or until a deposit equal to all outstanding forfeitures due is made. The deposit shall be maintained until the Commissioner deems it feasible to reduce the deposit. In no case shall an increased deposit exceed two (2) years unless there is a recurrence of withdrawals as stated herein.
E. 1. If the defendant's failure to appear was the result of the defendant's death or of being in the custody of a court other than the court in which the appearance was scheduled, forfeiture shall not lie. Upon proof to the court that the bondsman paid the order and judgment of forfeiture without knowledge that the defendant was deceased or in custody of another court on the day the defendant was due to appear, and all expenses for the defendant's return have been paid by the bondsman, the bondsman's property shall be returned.
2. Where the defendant is in the custody of another court, the district attorney or municipal attorney shall direct a hold order to the official, judge, court or law enforcement agent wherein the defendant is in custody; provided, that all expenses accrued as a result of returning the custody of the defendant shall be borne by the bondsman.
F. The district attorney or municipal attorney shall not receive any bonuses or other monies or property for or by reason of services or actions in connection with or collection of bond forfeitures under the provisions of Section 1301 et seq. of this title, except that the court may award a reasonable attorney fee in favor of the prevailing party for legal services in any civil action or proceeding to collect upon a judgment of forfeiture.
G. The above procedures shall be subject to the bondsman's rights of appeal. The bondsman or insurer may appeal an order and judgment of forfeiture pursuant to the procedures for appeal set forth in Section 951 et seq. of Title 12 of the Oklahoma Statutes. To stay the execution of the order and judgment of forfeiture, the bondsman or insurer shall comply with the provisions set forth in Section 990.4 of Title 12 of the Oklahoma Statutes.
H. For municipal courts of record, the above procedures are criminal in nature and ancillary to the criminal procedures before the trial court and shall be subject to the bondsman's right of appeal. The bondsman or insurer may appeal an order and judgment of forfeiture by the municipal courts of record to the Court of Criminal Appeals.
I. Upon a motion to the court, any person executing a bail bond as principal or as surety shall be exonerated after three (3) years have elapsed from the posting of the bond, unless a judgment has been entered against the surety or the principal for the forfeiture of the bond, or unless the court grants an extension of the three-year time period for good cause shown, upon motion by the prosecuting attorney.

Amended Laws 2008, eff. November 1, 2008.

- NOTICE TO ALL OKLAHOMA BONDSMEN -

- NEW STATUTES EFFECTIVE JULY 1, 2008 - SECTION 1316 & 1317
NEW RULES & REGULATIONS EFFECTIVE JULY 14, 2008 - 365:25-5-30, 34, 35 AND 43
NEW STATUTES EFFECTIVE NOVEMBER 1, 2008 - SECTION 1332

On May 12, 2008, Governor Brad Henry signed language supported by the Oklahoma Insurance Department and authored by Senator John Sparks, Senator Bill Brown and Representative Ron Peterson. The new language found in Enrolled Senate Bill 2122 regarding Section 1316 - SIGNING OF BONDS and Section 1317 - INSURERS TO LIST BONDSMEN- APPOINTMENTS becomes effective July 1, 2008.

Please note the new language which is underlined found in §1316 and 1317, which reads as follows:

Section 1316. SIGNING OF BONDS

A. 1. A bail bondsman shall neither sign nor countersign in blank any bond, nor shall the bondsman give a power of attorney to, or otherwise authorize, anyone to countersign his or her name to bonds unless the person so authorized is a licensed surety bondsman or managing general agent directly employed by a licensed professional bondsman giving such power of attorney. The professional bondsman shall submit to the Insurance Commissioner the agreement between the professional bondsman and the employed bondsman. The agreement shall be submitted to the Commissioner prior to the employed bondsman writing bonds on behalf of the professional. The professional bondsman shall notify the Commissioner whenever any agreement is canceled. If the bondsman surrenders the professional qualification, or the professional qualification is suspended or revoked, then the Commissioner shall suspend the appointment of all of the professional bondsman's bail agents. The Commissioner shall immediately notify any bail agent whose license is affected and the court clerk of the agent's resident county upon such suspension or revocation of the professional bondsman's qualification. If the professional qualification is reinstated within twenty-four (24) hours, the Commissioner shall not be required to suspend the bail agent appointments. If the Commissioner reinstates the professional qualification within twenty-four (24) hours, the Commissioner shall also reinstate the appointment of the professional bondsman's bail agents. If more than twenty-four (24) hours elapse following the suspension or revocation, then the professional bondsman shall submit new agent appointments to the Commissioner.

2. Bail bondsmen shall not allow other licensed bondsmen to present bonds that have previously been signed and completed by other licensed bondsmen unless a written authorization is on file with the court clerk where the bond is filed. The individual that presents the bond shall sign the form in the presence of the official that receives the bond.

B. Premium charged must be indicated on the appearance bond prior to the filing of the bond.

C. A bail bondsman shall provide the indemnitors with a proper receipt which shall include fees, premium or other payments and copies of any agreements executed relating to the appearance bond.

D. All surety bondsmen or managing general agents shall attach a completed power of attorney to the appearance bond that is filed with the court clerk on each bond written.
E. Any bond written in this state shall contain the name and last-known mailing address of the bondsman and, if applicable, of the insurer.

Amended Laws 2008, emerg. eff. July 1, 2008.

Section 1317. INSURERS TO LIST BONDSMEN - APPOINTMENTS

A. Every surety who appoints a surety bondsman or managing general agent in the state, shall give notice thereof to the Insurance Commissioner . The filing fee for appointment of each surety bondsman or managing general agent shall be Ten Dollars ($10.00), payable to the Commissioner and shall be submitted with the appointment. The appointment shall remain in effect until the surety submits a notice of cancellation to the Commissioner, the bail bondsman's license expires, or the Commissioner cancels the appointment. If the surety changes the liability limitations of the surety bondsman or the managing general agent, or any other provisions of the appointment, the surety shall submit an amended appointment form and a filing fee of Ten Dollars ($10.00) payable to the Commissioner.

B. A surety terminating the appointment of a surety bondsman or managing general agent immediately shall file written notice thereof with the Commissioner, together with a statement that it has given or mailed notice to the surety bondsman or managing general agent. The notice filed with the Commissioner shall state the reasons, if any, for the termination.

C. Prior to issuance of a new surety appointment for a surety bondsman or managing general agent, the bondsman or agent shall file an affidavit with the Commissioner stating that no forfeitures are owed to any court, no fines are owed to the insurance department, and no premiums or indemnification for forfeitures or fines are owed to any insurer. This provision shall not require that all outstanding liabilities have been exonerated, but may provide that the liabilities are still being monitored by the bondsman or agent.

D. Every bail bondsman who negotiates and posts a bond shall, in any controversy between the defendant, indemnitor, or guarantor and the bail bondsman or surety, be regarded as representing the surety. This provision shall not affect the apparent authority of a bail bondsman as an agent for the insurer.

Amended Laws 2008, emerg. eff. July 1, 2008.

The following rules and regulations which were supported by the Oklahoma Insurance Department become effective on July 14, 2008. The following analysis of the bail provisions are being made to Title 365. Insurance Department. Chapter 25. Licensure of Producers, Bail Bondsmen, Adjusters Companies, Prepaid Funeral Benefits, and Viatical and Life Settlements Providers and Brokers.

The amendment to 365:25-5-30 defines the equivalent of a high school diploma. The phrase is not defined by statute. The proposed rule requires a bail bondsman applicant to demonstrate their credentials are acceptable to the State Department of Education for completion of a program that is the equivalent of a high school diploma.

The amendment to 365:25-5-34 clarifies the phrase "required level" as described in 59 O.S. §1332(D)(4). The proposed rule defines required level as the professional bail bondsmen's amount on deposit prior to a forfeiture payment. The proposed rule requires professional bail bondsmen to make a deposit equal to the amount withdrawn by the Commissioner to pay a forfeiture within ten (10) days from the receipt of the withdrawal notice or mailing of notice if receipt is not made.

The amendment to 365:25-5-35 explains that a license expires September 30. However, a licensee may renew an expired license until November 30. The rule describes when a license expires and the requirements of a complete renewal filing.

Rule 365:25-5-43 is new. The rule clarifies when a bail bondsman appointment becomes effective. The rule prevents an appointment becoming effective until the appointment is processed and reviewed.

Please note the new language which is underlined found in the rules and regulations, which reads as follows:

365:25-5-30. Definitions
The following words or terms, when used in this Part, shall have the following meaning, unless the context clearly indicates otherwise:

"High school diploma or equivalent" The equivalent of a high school diploma, as described by 59 O.S. §1305(A)(8), shall be the successful completion of all parts of the General Educational Development program or completion of a similar program authorized and approved by the Oklahoma State Department of Education. An applicant shall provide documentation that the Oklahoma State Department of Education considers the applicant's educational qualifications to be the equivalent of a high school diploma if necessary.

"Limited surety agent" means any individual who is duly licensed by the Commissioner and is appointed by an insurer by power of attorney to execute or countersign bail bonds in connection with judicial proceedings and receives or is promised money or other things of value.

"Premium" means a sum of money charged by the bail bondsman for services rendered on behalf of the principal. Nothing in this section shall be construed to include collateral security received by the bail bondsman in the definition of premium.

365:25-5-34. Professional bondsman deposits
(a) Bondsman making an original deposit required by 59 O.S. §1306, or replacing any portion of a deposit shall deliver the deposit to the office of the Insurance Commissioner in Oklahoma City, Oklahoma. The bondsman shall appear in person at the office of the Insurance Commissioner to execute an assignment of the deposit to the Insurance Commissioner as instructed by 59 O.S. §1306.

(b) The phrase "required level," as described by 59 O.S. §1332 (D)(4)(b), shall be the bondsman's amount on deposit prior to a forfeiture payment. A bondsman shall make a deposit equal to the amount withdrawn by the Commissioner following the Commissioner's withdrawal of professional securities to pay a bond forfeiture. The deposit shall be made within ten (10) days from receipt of the withdrawal notice or mailing of the notice if no receipt is made. The bondsman shall follow the provisions of paragraph a of this section for the deposit.

365:25-5-35. Bondsman license renewal
(a) Pursuant to 59 O.S. §1309, bondsmen are required to renew their licenses annually. Requirements for a complete renewal filing for a bondsman shall be submitted by September 15 each year and must include each of the following:

(1) $100 renewal fee,
(2) proof of completion of eight (8) hours of continuing education, and
(3) for professional bondsman, a financial statement prepared in accordance with 59 O.S. §1309(B).
(4) In case of renewal of a property bondsman license, the application shall also provide a county assessor's written statement stating the property's assessed value for each property used to post bonds and a written statement from any lien holder stating the current payoff amount of each lien for each property used to post bonds. The written statements shall be submitted by September 15 of each year.

(b) Renewal filings or partial renewal filings submitted after September 30 will be assessed a $100 late renewal fee in addition to the usual $100 renewal fee.

(c) Failure to complete the renewal process by November 30 will result in non-renewal and the bondsman will be required to apply for a license as a new applicant.

(d) All licenses of bail bondsmen shall expire September 30 unless the Commissioner receives a complete renewal filing. A complete renewal filing consists of all necessary items required by paragraph a of this section as well as any other items required by the Commissioner.

(e) The November 30 date utilized in 59 O.S. §1309(D) does not authorize a bail bondsman to continue acting as a bail bondsman if the license has not been renewed by September 30.

(f) The Commissioner shall mail all renewal licenses to the bondsman's address of record.

365:25-5-43. Appointments
The effective date of the bondsman appointment described in 59 O.S. §1317 shall be the date the Commissioner mails the completed appointment form to the appointed bondsman.