Kansas bill would bar bail companies from loaning money to cover mandatory upfront bond fees

Senate Bill 244 would prohibit a compensated surety from providing a loan to cover any portion of the minimum appearance-bond premium that must be paid before the bond is posted, proponents told the House Committee on Judiciary during a June hearing.

Jason Thompson, adviser in the Revisor—s Office, told the committee the bill (KSA 22-2809[b]) amends the criminal procedure code to close a gap in last year—s changes that require a compensated surety to collect a minimum 10 percent premium and to receive at least one-half of that required premium before posting the bond. Thompson said the Senate Committee of the Whole removed language that would have required such loans be made by a Kansas-licensed financial institution. He also said the bill passed the Senate 37 to 3.

Why it matters: Proponents say the change would prevent bail companies from effectively circumventing the statutory requirement that a defendant pay a portion of the premium up front. Supporters and prosecutors have described cases where the surety pays money to the defendant or guarantor and then treats that payment as the required upfront portion, which proponents say defeats the statute—s intent.

Shane Rolfe, executive vice president of the Kansas Bail Agents Association, said the amendment simply makes explicitly impermissible a practice he described as a way some companies have tried to skirt the earlier law. "We think that circumvents the intent of [last year—s statute]," Rolfe said, describing a fact pattern in which a bonding company advances small cash amounts that are returned to the surety as part of a payment scheme to appear to meet the upfront requirement. He told the committee the amendment closes what proponents view as a loophole.

Committee members questioned enforcement and penalties for violations. Thompson and Rolfe pointed to existing enforcement provisions in KSA 22-2809(b): a chief judge in each judicial district has authority to investigate alleged violations and to temporarily or permanently suspend a surety—s authority to do business in the district. Thompson said the statute already allows a chief judge to assign investigators, and that suspensions longer than 30 days require a formal hearing.

Sen. Stephen Owens, appearing as a proponent, disclosed he has worked in the bail industry for more than 25 years and offered to assist the committee. He and Rolfe said they had worked with opponents in the Senate to tighten language and that the bill is intended to preserve the reductions in bond amounts some districts have seen since last year—s legislation.

No committee action was taken; the committee closed the hearing and moved on to a separate bill.

Ending: Committee staff noted written-only proponent testimony from the Kansas Sheriffs Association and from Aaron Breitenbach on behalf of the Sedgwick County district attorney; there were no opponents or neutral witnesses listed in committee materials for SB 244.