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Committee backs bill barring compensated sureties from loaning initial portion of appearance bond premium
Summary
The committee recommended Senate Bill 244 favorably. The bill would prohibit a compensated surety from making loans to cover the initial 5% of a minimum appearance bond premium and would require any such loan to come from a licensed lender unaffiliated with the surety.
The Senate Judiciary Committee voted to recommend Senate Bill 244 favorably for passage. The motion was made by Senator Titus and seconded by Senator Klempe; the committee approved the recommendation by voice vote.
Committee staff reminded members that last year the Legislature established a minimum appearance bond premium of 10 percent with 5 percent due upfront. The bill considered by the committee would prohibit a compensated surety from making a loan to cover that initial 5 percent. Any loan used to pay the initial 5 percent would have to come from a licensed lending provider, and a compensated surety would be prohibited from being affiliated with or owning the lender that provides such a loan.
The reviser summarized the bill’s provisions and the prior year’s change to the bond premium. No roll‑call tally was recorded in the transcript; committee action was by voice vote. Senator Titus moved the committee recommendation and Senator Klempe seconded; the motion passed.
Committee members did not elaborate at length in the record. The measure as described would change the marketplace for paying the upfront portion of appearance bond premiums by restricting surety‑provided loans and requiring licensed lenders for such loans.
The committee approved the recommendation to pass Senate Bill 244 to the next stage.
