S T A T E   O F   N E W   Y O R K
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                                  7752

                            I N  S E N A T E

                              June 18, 2012
                               ___________

Introduced  by  Sen.  RIVERA -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

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
(a)  of  this section unless authorized by a license issued and in force
as provided under article eleven of this chapter.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD16177-05-2

S. 7752                             2

  (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 population of more than one hundred seventy-five thousand inhabitants,
according to the last preceding federal  census  or  state  enumeration,

S. 7752                             3

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 A SUM OF ONE THOUSAND DOLLARS PAYABLE EACH TERM OR
FRACTION  OF  A  TERM, 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
EFFECT  EITHER  UNTIL  THE ISSUANCE BY THE SUPERINTENDENT OR THE RENEWAL

S. 7752                             4

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 SECTION THREE HUNDRED FIVE  OF  THE  FINANCIAL  SERVICES
LAW.
  (B) A CHARITABLE BAIL ORGANIZATION SHALL:
  (1)  ONLY  DEPOSIT MONEY AS BAIL IN THE AMOUNT OF TWO THOUSAND DOLLARS
OR LESS FOR A DEFENDANT CHARGED WITH ONE OR MORE MISDEMEANORS, PROVIDED,
HOWEVER, THAT SUCH ORGANIZATION SHALL NOT EXECUTE AS SURETY ANY BOND FOR
ANY DEFENDANT;
  (2) ONLY DEPOSIT MONEY AS BAIL ON BEHALF OF A PERSON WHO IS FINANCIAL-
LY UNABLE TO POST BAIL, WHICH MAY CONSTITUTE  A  PORTION  OR  THE  WHOLE
AMOUNT OF SUCH BAIL;
  (3)  ONLY DEPOSIT MONEY AS BAIL IN ONE COUNTY IN THIS STATE. PROVIDED,
HOWEVER, THAT A CHARITABLE BAIL ORGANIZATION WHOSE  PRINCIPAL  PLACE  OF
BUSINESS IS LOCATED WITHIN A CITY OF A MILLION OR MORE MAY DEPOSIT MONEY
AS BAIL IN THE FIVE COUNTIES COMPRISING SUCH CITY; 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.