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Bail agents urge repeal of 2023 bail bond insurance rules; insurance office urges oversight
Summary
Sen. Trebis introduced SB 197 to repeal last session's bail bond insurance provisions; Montana bail agents said the 2023 law disrupted the industry and opened the door to out‑of‑state firms, while the deputy insurance commissioner cited violent incidents and urged continued oversight.
Sen. Trebis told the committee Senate Bill 197 would repeal provisions enacted in 2023 that placed some bail bond producer licensing and reporting under the state insurance commissioner. The sponsor said the earlier law disrupted Montana's licensing process and argued for restoring the prior regulatory structure.
John Looney, president of the Montana Bail Agents Association, said HB 62 (the 2023 law) had sharply reduced the number of local licensed bail agents willing to write bonds and allowed out‑of‑state firms to enter Montana markets. Looney told the committee that community‑based agents foster accountability and that the current law created gaps that let unlicensed fugitive recovery agents operate without oversight.
Other proponents included representatives of Bail Montana and Montana Pretrial Services who said the changes imposed by the 2023 law harmed local agents and complicated the industry.
Frank Cote, deputy insurance commissioner, opposed the repeal. Cote recounted incidents the department reviewed — including a recovery agent shooting a person with less‑than‑lethal rounds in Great Falls, a tasing in Livingston and other violent episodes — and said the department requested sideboards because the industry lacked consistent standards and reporting. He urged the committee to oppose repeal and said the office stands ready to work with stakeholders on fixes.
The sponsor closed the hearing saying the 2023 changes should be undone and that accountability for bad actors should proceed under existing criminal law. The committee did not record executive action on SB 197 during this session; the sponsor later asked to have the bill pulled from an executive agenda.
