GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2007
SESSION LAW 2007-228
SENATE BILL 881
AN ACT to define the residency requirements for licensure under the laws pertaining to bail bondsmen and runners and to make other stylistic changes.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 58-71-1 reads as rewritten:
"§ 58-71-1. Definitions.
The following words when used in this Article shall have
the following meanings: The following definitions apply in this Article:
(1) "Accommodation
bondsman" is a Accommodation bondsman. - A person who shall not
charge a fee or receive any consideration for action as surety and who endorses
the bail bond after providing satisfactory evidences of ownership, value, and
marketability of real or personal property to the extent necessary to
reasonably satisfy the official taking bond that the real or personal property
will in all respects be sufficient to assure that the full principal sum of the
bond will be realized if there is a breach of the conditions of the bond.
"Consideration" as used in this subdivision does not include the
legal rights of a surety against a principal by reason of breach of the
conditions of a bail bond nor does it include collateral furnished to and securing
the surety as long as the value of the surety's rights in the collateral do not
exceed the principal's liability to the surety by reason of a breach in the
conditions of the bail bond.
(2) "Bail
bond" shall mean an Bail bond. - An undertaking by the principal
to appear in court as required upon penalty of forfeiting bail to the State in
a stated amount; and may include an unsecured appearance bond, a premium-secured
appearance bond, an appearance bond secured by a cash deposit of the full
amount of the bond, an appearance bond secured by a mortgage pursuant to
G.S. 58-74-5, and an appearance bond secured by at least one surety. A
bail bond may also include a bond securing the return of a motor vehicle
subject to forfeiture in accordance with G.S. 20-28.3(e).
(3) "Bail
bondsman" shall mean a Bail bondsman. - A surety bondsman,
professional bondsman or an accommodation bondsman as hereinafter defined.defined
in this section.
(4) "Commissioner"
shall mean the Commissioner. - The North Carolina Commissioner of
Insurance.
(4a) "First-year
licensee" means any First-year licensee. - Any person who has
been licensed as a bail bondsman or runner under this Article and who has held
the license for a period of less than 12 months.
(5) "Insurer"
shall mean any Insurer. - Any domestic, foreign, or alien surety
company which has qualified generally to transact surety business and
specifically to transact bail bond business in this State.
(6) "Obligor"
shall mean a Obligor. - A principal or a surety on a bail bond.
(7) "Principal"
shall mean a Principal. - A defendant or witness obligated to appear
in court as required upon penalty of forfeiting bail under a bail bond or a
person obligated to return a motor vehicle subject to forfeiture in accordance
with G.S. 20-28.3(e).
(8) "Professional
bondsman" shall mean any Professional bondsman. - Any person
who is approved and licensed by the Commissioner and who pledges cash or
approved securities with the Commissioner as security for bail bonds written in
connection with a judicial proceeding and who receives or is promised
money or other things of value therefor.in exchange for writing the
bail bonds.
(8a) Resident. - A person who lives in this State for at least six consecutive months immediately before applying for a license under this Article.
(9) "Runner"
shall mean a Runner. - A person employed by a bail bondsman for the
purpose of assisting the bail bondsman in presenting the defendant in court
when required, or to assistassisting in the apprehension
and surrender of defendant to the court, or keeping the defendant
under necessary surveillance, or to execute executing bonds on
behalf of the licensed bondsman when the power of attorney has been duly
recorded. "Runner" does not include, however, include a
duly licensed attorney-at-law or a law-enforcement officer assisting a
bondsman.
(9a) "Supervising bail
bondsman" means any Supervising bail bondsman. - Any person
licensed by the Commissioner as a professional bondsman or surety bondsman who
employs or contracts with any new licensee under this Article.
(10) "Surety" shall mean
one Surety. - One who, with the principal, is liable for the amount
of the bail bond upon forfeiture of bail.
(11) "Surety bondsman"
means any Surety bondsman. - Any person who is licensed by the
Commissioner as a surety bondsman under this Article, is appointed by an
insurer by power of attorney to execute or countersign bail bonds for the
insurer in connection with judicial proceedings, and who receives or is
promised consideration for doing so."
SECTION 2. G.S. 58-71-50(b) reads as rewritten:
"(b) Every applicant for a license under this Article as a bail bondsman or runner must meet all of the following qualifications:
(1) Be 18 years of age or over.
(2) Be a resident of this State.
(3) Repealed by Session Laws 1998-211, s. 23.
(4) Have knowledge, training, or experience of sufficient duration and extent to provide the competence necessary to fulfill the responsibilities of a licensee.
(5) Have no outstanding bail bond obligations.
(6) Have no current or prior violations of any provision of this Article or of Article 26 of Chapter 15A of the General Statutes or of any similar provision of law of any other state.
(7) Not have been in any manner disqualified under the laws of this State or any other state to engage in the bail bond business.
(8) Hold a valid and current North Carolina drivers license or valid North Carolina identification card issued by the Division of Motor Vehicles."
SECTION 3. G.S. 58-71-50 is amended by adding a new subsection to read:
"(c) An applicant for a license as a bail bondsman or runner shall provide to the Commissioner at least two of the following documents as proof of residency in this State:
(1) A pay stub showing the applicant's residential address in this State.
(2) A utility bill showing the applicant's residential address in this State.
(3) A written lease agreement or contract for purchase and sale signed by the applicant and for a residence located in this State.
(4) A receipt for personal property taxes paid by the applicant to a North Carolina unit of local government.
(5) A receipt for real property taxes paid by the applicant to a North Carolina unit of local government.
(6) A monthly or quarterly statement showing the applicant's residential address in this State and issued by a financial institution for an account held by the applicant.
Subject to rules adopted by the Commissioner, an applicant may be required to provide additional documentation as proof of residency in this State."
SECTION 4. This act becomes effective October 1, 2007, and applies to applications for licensure made on or after that date.
In the General Assembly read three times and ratified this the 9th day of July, 2007.
s/ Beverly E. Perdue
President of the Senate
s/ Joe Hackney
Speaker of the House of Representatives
s/ Michael F. Easley
Governor
Approved 11:45 a.m. this 18th day of July, 2007