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Committee backs bill barring compensated sureties from lending initial bond premium
Summary
Senate Bill 244 was recommended favorably by the Senate Judiciary Committee; it would prohibit compensated sureties from making loans to cover the initial 5% of a defendant’s required minimum appearance bond premium and require any such loan to come from a licensed lender unaffiliated with the surety.
The Senate Judiciary Committee recommended Senate Bill 244 favorably for passage after a brief presentation by the reviser explaining the bill’s effect on appearance bond premiums.
The reviser reminded the committee of the prior change to the minimum appearance bond premium and summarized the bill: “you'll recall last year, you guys put in a minimum appearance bond premium of 10%, and then 5% of that has to be given upfront. This would prohibit a compensated surety from making a loan for that initial 5%. Any loan obtained for the purpose of paying that initial 5% would have to be from a licensed, lending provider. And no compensated surety would be able to be affiliated with or an owner of, a lender who is making loans for that 5% portion.”
There was no recorded debate on the bill in the provided excerpt. Senator Titus moved that the committee recommend Senate Bill 244 favorably for passage; the motion was seconded by Senator Klempe and passed by voice vote in the excerpt. The transcript does not record a roll‑call tally.
By barring sureties from providing loans for the initial premium and requiring loans, if any, to come from licensed lenders unaffiliated with the surety, the bill targets the specific financing arrangement used to cover the upfront portion of the bond premium. The reviser framed the bill as a clarification of the premium financing rules established previously.
The committee adjourned after reporting its bills for turnaround; next steps for Senate Bill 244 will follow the chamber’s scheduling rules for reported bills.
