senate Bill S506

2013-2014 Legislative Session

Requires the commissioner of financial services to conduct a study to identify problems and concerns regarding the bail bond business and to present his or her findings to the legislature

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to insurance
Jan 09, 2013 referred to insurance

S506 - Bill Details

See Assembly Version of this Bill:
A7057
Current Committee:
Law Section:
Insurance
Versions Introduced in 2011-2012 Legislative Session:
S2872

S506 - Bill Texts

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Requires the commissioner of financial services to conduct a study to identify problems and concerns regarding the bail bond business and to present his or her findings to the legislature.

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BILL NUMBER:S506

TITLE OF BILL:
An act
requiring the commissioner of financial services
to conduct a study to identify
problems and concerns regarding the bail bond business and to present
his or her findings to the legislature

PURPOSE:
Requires the New York State Insurance Commissioner to conduct a study
to identify problems and concerns regarding the bail bond business
and to present finding to the Legislature.

SUMMARY OF PROVISIONS:
Section One of the bill requires the Commissioner of Insurance, within
90 days of the enactment of this legislation, to conduct a study to
identify problems and concerns regarding the bail bond business as
defined in Section 6801 on the Insurance law.

The study will identify necessary improvements and clarifications to
current regulation and statutes related to the rights of defendants
who utilize the bail bond business.

Upon completion of the study, the Commissioner shall repair a report
with the departments suggestions for regulatory and statutory changes
necessary to improve and clarify current regulations and statures
related to defendants utilizing the bail bond business.

Upon completion of the report, the Commissioner shall hold a public
hearing to afford the opportunity for any person to propose additions
or deletions from the report recommendations and shall have the
report available for public inspection and posted on the Insurance
Departments website.

Notice of the hearing must be sent to those working in the bail bond
industry, public defenders and legal aid societies, district
attorneys, and a representative from the uniform court system.

Upon completion of the public hearing the Commissioner shall present
her or his findings to the Legislature.

EXISTING LAW:
New bill.

JUSTIFICATION:
A recent New York Times article ("For Poor, Bail System Can Be an
Obstacle to Freedom" Metro, 1/09/11) highlighted the serious problems
defendants face when posting bail via a bail bondsman.. Under New
York State law, the Insurance Department regulates the bail-bonds
business. The laws surrounding the practice are vague, and
insufficient oversight has created a situation where a bail-bondsman
can return a defendant to jail for no sufficient cause.

Indigent defendants are now faced with the option of remaining in jail
because she or he cannot make bail, or use a bails-bond service that


can return her or him to jail at anytime and charge thousands of
dollars worth of questionable fees.

This legislation will improve the fairness and consistency of the
bail-bonds business by creating a dialogue with stakeholders which
will lead to fairness and consistency in the bail-bonds business.

LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS:
Minimal.

LOCAL FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect immediately.

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

                                   506

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

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

AN  ACT  requiring  the  commissioner of financial services to conduct a
  study to identify problems and concerns regarding the bail bond  busi-
  ness and to present his or her findings to the legislature

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. a. The commissioner of financial services shall, within  90
days  of  the  effective  date  of this act, conduct a study to identify
problems and concerns regarding the bail bond  business  as  defined  in
section  6801  of  the insurance law. The study is to identify necessary
improvements and clarifications  to  current  regulations  and  statutes
related to the rights of defendants who utilize the bail bond business.
  b.  Upon  completion  of  the  study, the commissioner shall prepare a
report with the department's suggestions for regulatory and/or statutory
changes necessary to improve and clarify current regulations  and  stat-
utes related to the rights of defendants who utilize the bail bond busi-
ness as defined in section 6801 of the insurance law.
  c.  Upon  completion  of  the  report,  the commissioner or her or his
designated hearing officer shall hold a public hearing in that  area  in
order  to  afford  an opportunity for any person to propose additions or
deletions from the report recommendations and shall assure  that  copies
of  the  report are available for public inspection and a copy posted to
the department's website.
  d. The commissioner of financial services shall give  notice  of  such
hearing  by  certified  mail not less than 30 days prior to the date set
for such hearing to all relevant stakeholders including, but not limited
to, any person, firm or corporation, or officer, employee or agent ther-
eof, licensed under section 6801 of the insurance law, all county funded
public defenders and legal aid societies, the district attorney for each

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02989-01-3

S. 506                              2

county and a representative appointed by chief judge  of  the  New  York
state court of appeals.
  e.  The  commissioner  shall  also cause notice of such hearing, to be
published at least once, not more than 30 days nor fewer than  10  days,
in  newspapers  which  have  a general circulation in each county of the
state before the date set for such hearing.
  f. Upon completion of the public hearing, the commissioner shall pres-
ent his or her findings to the legislature no later than 60  days  after
the completion of the public hearing.
  S 2. This act shall take effect immediately.

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