S T A T E O F N E W Y O R K
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10640--A
I N A S S E M B L Y
June 12, 2012
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Introduced by COMMITTEE ON RULES -- (at request of M. of A. Aubry,
Boyle, Heastie, Lentol, Lifton) -- read once and referred to the
Committee on Codes -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the insurance law, in relation to charitable bail organ-
izations
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 1108 of the insurance law is amended by adding a
new subsection (k) to read as follows:
(K) A CHARITABLE BAIL ORGANIZATION HOLDING A CERTIFICATE ISSUED BY THE
SUPERINTENDENT PURSUANT TO SECTION SIX THOUSAND EIGHT HUNDRED FIVE OF
THIS CHAPTER.
S 2. Subsections (a) and (b) of section 6801 of the insurance law are
amended to read as follows:
(a) (1) Any person, firm or corporation in any court having criminal
jurisdiction or in any criminal action or proceeding who shall for
another deposit money or property as bail or execute as surety any bail
bond who within a period of one month prior thereto shall have made such
a deposit or given such bail in more than two cases not arising out of
the same transaction shall be deemed to be doing a bail [bond] business
and doing an insurance business as defined in article eleven of this
chapter.
(2) Except for a corporation authorized to write fidelity and surety
insurance and to do a bail [bond] business pursuant to the provisions of
article eleven of this chapter and otherwise in compliance with all
other requirements of this chapter to do such business OR A CHARITABLE
BAIL ORGANIZATION HOLDING A CERTIFICATE ISSUED BY THE SUPERINTENDENT
PURSUANT TO SECTION SIX THOUSAND EIGHT HUNDRED FIVE OF THIS ARTICLE AND
OTHERWISE IN COMPLIANCE WITH ALL OTHER REQUIREMENT OF THIS CHAPTER, no
person, firm or corporation shall engage in [such] A BAIL business IN
THIS STATE.
(b) (1) No person, firm or corporation shall in this state do an
insurance business or a bail [bond] business as defined in subsection
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16177-02-2
A. 10640--A 2
(a) of this section unless authorized by a license issued and in force
as provided under article eleven of this chapter.
(2) The superintendent may authorize a property/casualty insurance
company which is authorized to write fidelity and surety insurance to do
a bail [bond] business in accordance with the provisions of article
eleven of this chapter, but no individual shall be licensed to do such
business.
S 3. Subsections (a), (b), (c), (h) and (m) of section 6802 of the
insurance law, subsection (m) as amended by chapter 285 of the laws of
1993, are amended to read as follows:
(a) No person, firm or corporation or any officer or employee thereof
shall act in this state as an agent or solicitor of an insurer OR CHARI-
TABLE BAIL ORGANIZATION doing a bail [bond] business in soliciting,
negotiating or effectuating any such deposit or bail bond by such insur-
er OR CHARITABLE BAIL ORGANIZATION unless licensed by the superintendent
as an agent pursuant to the provisions of this section. Any person, firm
or corporation so acting without being duly licensed shall be guilty of
a misdemeanor.
(b) Every corporation OR CHARITABLE BAIL ORGANIZATION engaging as an
insurer [in the business of giving] DOING A bail BUSINESS IN THIS STATE
shall procure a license pursuant to the provisions of this section for
each of its employees, officers and agents acting for it in soliciting,
negotiating or effectuating any such deposit or bail bond.
(c) The superintendent may, in [his] THE SUPERINTENDENT'S discretion,
issue to any person, firm or corporation a license to act as an agent of
an authorized insurer OR CHARITABLE BAIL ORGANIZATION, in soliciting,
negotiating or effectuating any such deposit or bail bond by such insur-
er OR ANY SUCH DEPOSIT BY SUCH CHARITABLE BAIL ORGANIZATION.
(h) In order to determine the competence of each applicant for a
license or a sublicense, the superintendent shall require every appli-
cant to pass to the satisfaction of the superintendent a written exam-
ination to be prepared by the superintendent and appropriate to the
doing of a bail [bond] business. If the applicant or any proposed subli-
censee intends to maintain an office or solicit, negotiate, effectuate
or deposit bail on behalf of another in any city containing a population
of more than one hundred seventy-five thousand, such written examination
may inquire into the applicant's knowledge of the pertinent provisions
of the criminal procedure law and the pertinent rules and practices of
the courts and district attorneys' offices within the area of the appli-
cant's proposed operations. Such examination shall be held at such times
and places as the superintendent shall determine.
(m) Every license issued to an officer, employee, or agent of an
insurer OR CHARITABLE BAIL ORGANIZATION doing a bail [bond] business
pursuant to this section shall be for a term expiring on the thirty-
first day of December of even numbered years and may be renewed for the
ensuing two calendar years upon the filing of a renewal application. The
superintendent may refuse to issue any such license if in [his] THE
SUPERINTENDENT'S judgment such refusal will best promote the interests
of the people of this state. Every such licensee and sublicensee shall
file an information statement on or before the thirty-first day of
December of each even numbered year, the form and subject matter of
which may be prescribed by the superintendent.
S 4. Section 6803 of the insurance law is amended to read as follows:
S 6803. Bail bond business; cities in excess of one hundred seventy-
five thousand. (a) An insurance corporation OR CHARITABLE BAIL ORGANIZA-
TION engaged in the BAIL business [of giving bail] in a city containing
A. 10640--A 3
a population of more than one hundred seventy-five thousand inhabitants,
according to the last preceding federal census or state enumeration,
shall file with the district attorney of each county contained in such
city or in which such a city is contained, the clerks of the supreme and
county courts and the clerk of the criminal court of the city of New
York, certified statements of the names of all persons authorized to
execute bail bonds OR EFFECTUATING SUCH DEPOSIT on its behalf or to
solicit such business as agent, together with a certificate duly
executed by the superintendent, certifying with respect to each such
person, that such person has been licensed by the superintendent pursu-
ant to section six thousand eight hundred two of this article.
(b) The court or other public officer concerned in the matter may
examine under oath any insurer OR CHARITABLE BAIL ORGANIZATION doing a
bail [bond] business or a depositor of security for bail, or the officer
or agent of any such insurer, CHARITABLE BAIL ORGANIZATION or depositor
proposing to execute a bail bond, or to make such deposit, as to the
indemnity, if any, deposited or otherwise provided directly or indirect-
ly against loss by reason of the deposit or bail bond and as to the fee
charged, IF ANY, for the giving of such bond. The court or other public
officer concerned in the matter may refuse to accept such bond or depos-
it if satisfied that any portion of such security has been feloniously
obtained by the defendant, or that the provisions of this or any other
section of law have been violated, or that the person or persons indem-
nifying such insurer or depositor shall have within a period of one
month prior thereto given indemnification or security for like purpose
in more than two cases not arising out of the same transaction and that
such person is not duly licensed by the superintendent in accordance
with the provisions of this chapter.
S 5. The insurance law is amended by adding a new section 6805 to read
as follows:
S 6805. CHARITABLE BAIL ORGANIZATION. (A)(1) THE SUPERINTENDENT MAY
ISSUE A CERTIFICATE TO A CHARITABLE BAIL ORGANIZATION TO DEPOSIT MONEY
AS BAIL FOR ANOTHER IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION
ONLY IF SUCH ENTITY IS A NON-PROFIT ORGANIZATION ORGANIZED PURSUANT TO
THE UNITED STATES INTERNAL REVENUE CODE AS DESCRIBED BY SECTION
501(C)(3) OF TITLE 26 OF THE UNITED STATES CODE, IS REGISTERED AS A
CHARITY PURSUANT TO ARTICLE SEVEN-A OF THE EXECUTIVE LAW AND IS CURRENT
ON SUCH REGISTRATION.
(2) THE APPLICATION FOR A CHARITABLE BAIL ORGANIZATION CERTIFICATE
SHALL BE IN SUCH FORM OR FORMS, AND SHALL CONTAIN RELEVANT INFORMATION,
AS THE SUPERINTENDENT SHALL PRESCRIBE.
(3) THE SUPERINTENDENT MAY REFUSE TO ISSUE A CHARITABLE BAIL ORGANIZA-
TION CERTIFICATE IF, IN THE SUPERINTENDENT'S JUDGMENT, AN APPLICANT, OR
AN OFFICER OR DIRECTOR OF THE APPLICANT, HAS: (A) DEMONSTRATED UNTRUST-
WORTHINESS OR INCOMPETENCE; (B) GIVEN CAUSE FOR THE REVOCATION OR
SUSPENSION OF THE CERTIFICATE; OR (C) FAILED TO COMPLY WITH ANY PREREQ-
UISITE FOR THE ISSUANCE OF THE CERTIFICATE.
(4) A CHARITABLE BAIL ORGANIZATION CERTIFICATE SHALL BE VALID FOR A
TERM OF FIVE YEARS FROM ISSUANCE. AT THE TIME OF APPLICATION FOR EVERY
SUCH CERTIFICATE, AND FOR EVERY RENEWAL THEREOF, AN APPLICANT SHALL PAY
TO THE SUPERINTENDENT THE SUM OF ONE HUNDRED FIFTY DOLLARS, PAYABLE EACH
YEAR FOR WHICH THE CERTIFICATE SHALL BE VALID, PROVIDED, HOWEVER, THAT
IN HIS OR HER DISCRETION, THE SUPERINTENDENT MAY WAIVE SUCH FEE.
(5) IF AN APPLICATION FOR A RENEWAL CERTIFICATE SHALL HAVE BEEN FILED
WITH THE SUPERINTENDENT BEFORE THE EXPIRATION OF SUCH CERTIFICATE, THEN
THE CERTIFICATE SOUGHT TO BE RENEWED SHALL CONTINUE IN FULL FORCE AND
A. 10640--A 4
EFFECT EITHER UNTIL THE ISSUANCE BY THE SUPERINTENDENT OR THE RENEWAL
CERTIFICATE APPLIED FOR OR UNTIL FIVE DAYS AFTER THE SUPERINTENDENT
SHALL HAVE REFUSED TO ISSUE SUCH RENEWAL CERTIFICATE.
(6) THE SUPERINTENDENT MAY REFUSE TO RENEW OR MAY REVOKE OR SUSPEND A
CHARITABLE BAIL ORGANIZATION CERTIFICATE FOR A REASONABLE PERIOD DETER-
MINED BY THE SUPERINTENDENT IF, AFTER NOTICE AND HEARING, THE SUPER-
INTENDENT DETERMINES THAT AN APPLICANT OR LICENSEE, OR AN OFFICER OR
DIRECTOR OF THE APPLICANT OR LICENSEE, HAS: (A) DEMONSTRATED UNTRUSTWOR-
THINESS OR INCOMPETENCE; (B) VIOLATED THIS SECTION OR AUTHORIZED REGU-
LATIONS PROMULGATED THEREUNDER; OR (C) FAILED TO STAY CURRENT WITH THEIR
REGISTRATION AS A CHARITY PURSUANT TO ARTICLE SEVEN-A OF THE EXECUTIVE
LAW. ANY HEARING CONDUCTED UNDER THIS SECTION SHALL COMPLY WITH THE
REQUIREMENTS OF THE STATE ADMINISTRATIVE PROCEDURE ACT.
(B) A CHARITABLE BAIL ORGANIZATION SHALL:
(1) ONLY DEPOSIT MONEY AS BAIL IN THE AMOUNT OF FIVE THOUSAND DOLLARS
OR LESS FOR A DEFENDANT CHARGED WITH ONE OR MORE MISDEMEANORS OR
NON-VIOLENT CLASS E OR D FELONIES WITH THE EXCEPTION OF ANY FELONY SEX
OFFENSE AS DEFINED IN ARTICLE ONE HUNDRED THIRTY OF THE PENAL LAW, ANY
FELONY BRIBERY OFFENSE INVOLVING PUBLIC SERVANTS AS DEFINED IN ARTICLE
TWO HUNDRED OF THE PENAL LAW, OR ANY FELONY TERRORISM OFFENSE AS DEFINED
IN ARTICLE FOUR HUNDRED NINETY OF THE PENAL LAW; PROVIDED, HOWEVER, THAT
SUCH ORGANIZATION SHALL NOT EXECUTE AS SURETY ANY BOND FOR ANY DEFEND-
ANT;
(2) ONLY DEPOSIT MONEY AS BAIL ON BEHALF OF A PERSON WHO IS FINANCIAL-
LY UNABLE TO POST BAIL, EXCEPT SUCH PERSON MAY POST A PORTION OF THE
BAIL;
(3) ONLY DEPOSIT MONEY AS BAIL IN THE CITY OF NEW YORK OR, OUTSIDE OF
THE CITY OF NEW YORK, IN THE JUDICIAL DISTRICT IN WHICH SUCH CHARITABLE
BAIL ORGANIZATION IS INCORPORATED; AND
(4) NOT CHARGE A PREMIUM OR RECEIVE COMPENSATION FOR ACTING AS A CHAR-
ITABLE BAIL ORGANIZATION.
(C) THE SUPERINTENDENT MAY PROMULGATE REGULATIONS IMPLEMENTING THIS
SECTION.
S 6. This act shall take effect on the ninetieth day after it shall
have become a law.