Section  1.  That § 58-22-3 be amended to read as follows:

     58-22-3.   The following persons or classes shall may not be bail bondsmen bondspersons or runners and shall may not directly or indirectly receive any benefits from the execution of any bail bond: jailers, police officers, committing magistrates, magistrate court judges, sheriffs, deputy sheriffs , and constables, any person having the power to arrest or having anything to do with the control of federal, state, county , or municipal prisoners. Violation of this section is a Class 2 misdemeanor Class 6 felony .

     Section  2.  That § 58-22-4 be amended to read as follows:

     58-22-4.   No person shall may act in the capacity of a bail bondsman bondsperson or runner or perform any of the functions, duties , or powers prescribed for bail bondsmen bondsperson or runners under the provisions of this chapter unless that person shall be is qualified and licensed as provided in this chapter ; provided, however, that . However, none of the provisions of this section shall prohibit any individual person , from pledging real or other property as security for a bail bond in judicial proceedings and who if that person does not receive, or is not promised, money or other things of value therefor. Violation of this section is a Class 2 misdemeanor Acting in the capacity of a bail bondsperson or runner without being licensed is a Class 6 felony. Receipt of money or other things of value by any person not acting in the capacity of a bail bondsperson is a Class 2 misdemeanor .

     Section  3.  That § 58-22-5 be amended to read as follows:

     58-22-5.   No license shall may be issued except in compliance with this chapter and none shall may be issued except to an individual ; provided, however, that . However, any person performing the functions of a bail bondsman bondsperson or runner, within the definition of this chapter, on July 1, 1966, shall is not be required to take an examination, but shall be issued a license upon making the application herein required by this chapter , and renewals thereof shall be granted subject to the provisions of § §   58-22-6, 58-22-19 , and 58-22-21 ; provided, further, that the . The provisions of this chapter shall do not apply to the holder of a valid all lines fire and casualty agent's license held prior to July 1, 1998 .

     A firm, partnership, association, or corporation, as such shall need not be licensed.

     Section  4.  That § 58-22-6 be amended to read as follows:

     58-22-6.   The application for license, in addition to the other matters set out in § §   58-22-5 and 58-22-14 this chapter to serve as a bail bondsman must bondsperson shall affirmatively show : Applicant that the applicant is a natural person who has reached the age of twenty-one years ; , is a citizen of the United States, and has been a bona fide resident of the state for one the preceding year last past , will actively engage in the bail bond business, and has knowledge, experience or instruction in the bail bond business or has held a valid all lines fire and casualty agent's license for one year within the last five years; or has been employed by an insurer engaged in writing bail bonds in which field he has actively engaged for at least one year of the last five years; or was actively engaged in bail bond business on March 2, 1963 not been convicted of, or pled guilty or nolo contendere to, a felony or a crime involving moral turpitude or any crime involving moral turpitude. The director of the Division of Insurance may waive the restriction relating to the conviction of, or plea of guilty or nolo contendere to, a felony if three years have elapsed since the completion of the sentence imposed by the court in connection with the violation .

     Section  5.  That § 58-22-7 be amended to read as follows:

     58-22-7.   A license fee of ten thirty dollars shall be submitted to the director with each application for license as bail bondsman bondsperson .

     Applicant The applicant shall also furnish with his the application, a complete set of his the applicant's fingerprints and a recent credential-size full face photograph of himself the applicant . The applicant's fingerprints shall be certified by an authorized law enforcement officer.

     Section  6.  That § 58-22-8 be amended to read as follows:

     58-22-8.   Every insurer shall annually, prior to May first, furnish the director a list of all surety bondsmen bondsperson appointed by it to write bail bonds on its behalf accompanied by a renewal fee of ten dollars for each bondsperson being reappointed . Every such insurer who subsequently appoints a surety bondsman bondsperson in the state , shall give notice thereof to the director along with a written application for license for said bondsman bondspersons accompanied by a ten dollar appointment fee . All such appointments shall be are subject to the issuance of a license to such surety bondsman bondsperson .

     Section  7.  That § 58-22-12 be amended to read as follows:

     58-22-12.   In addition to the other requirements prescribed in § §   58-22-5 and 58-22-14 this chapter , an applicant for a license to serve as a runner must shall affirmatively show:

             (1)      That the applicant is a natural person who has reached the age of twenty-one years;

             (2)      That the applicant is a citizen of the United States and has been a bona fide resident of this state for more than six months one year last past;

             (3)      That the applicant will be employed by only one bail bondsman, who will supervise the work of the applicant, and be responsible for the runner's conduct in the bail bond business; and

             (4)      The application must be endorsed by the each appointing bail bondsman, who shall obligate himself bondsperson is obligated to supervise the runner's applicant's activities in his behalf , and be responsible for the applicant's conduct in the bail bond business; and

             (4)    That the applicant has not been convicted of, nor has pled guilty or nolo contendere to, a felony or of any crime involving moral turpitude. The director of the Division of Insurance may waive the restriction relating to the conviction of, or plea of guilty or nolo contendere to, a felony or a crime involving moral turpitude if three years have elapsed since completion of the sentence imposed by the court in connection with the violation .

     Section  8.  That chapter 58-22 be amended by adding thereto a NEW SECTION to read as follows:

     The application for the a runner's license shall be accompanied by a written appointment of the applicant as a runner by each licensed bail bondsperson employing the applicant.

     Section  9.  That § 58-22-13 be amended to read as follows:

     58-22-13.   A Each runner's application shall be accompanied by a license fee of ten thirty dollars and an appointment fee of ten dollars for each bail bondsperson employing the applicant and shall be submitted to the director with each application for a license to serve as a runner, together with fingerprints and photograph. The employing bail bondsperson is responsible for submitting the application and appointment fee.

     Section  10.  That § 58-22-14 be amended to read as follows:

     58-22-14.   The applicant for any license under this chapter shall apply in writing, on forms prepared and supplied by the director, and the director may propound any reasonable interrogatories to an applicant for a license under this chapter or on any renewal thereof, relating to his the applicant's qualifications, residence, prospective place of business, and any other matters which, in the opinion of the director, are deemed necessary or expedient in order to protect the public and ascertain the qualifications of the applicant. The director may also conduct any reasonable inquiry or investigation he the director sees fit, relative to the determination of the applicant's fitness to be licensed or to continue to be licensed including a criminal background check, and the applicant is responsible for any costs associated with a criminal background check as charged by the appropriate agency conducting and furnishing the background check. The applicant shall provide any necessary authorization requested by the director to facilitate an inquiry or investigation .

     Section  11.  That chapter 58-22 be amended by adding thereto a NEW SECTION to read as follows:

     Any person holding a license under this chapter shall notify the Division of Insurance of a conviction or plea of guilty or nolo contendere to a felony or a crime of moral turpitude within twenty days of the conviction or plea. Violation of this section is a Class 1 misdemeanor.

     Section  12.  That § 58-22-20 be amended to read as follows:

     58-22-20.   A renewal license shall be issued by the director to a licensee who has continuously maintained same a license in effect without further examination, unless deemed necessary by the director, upon the payment of a renewal fee of ten dollars, but such license shall is in all other respects be required to comply with and be subject to the provisions of this chapter. After the receipt of such licensee's application for renewal the current license shall continue in effect until the renewal license is issued or denied for cause.

     Section  13.  That § 58-22-21 be amended to read as follows:

     58-22-21.   The director may deny, suspend, revoke , or refuse to renew any license issued under this chapter for any of the following causes:

             (1)      For any cause for which issuance of the license could have been refused had it then existed and been known to the director . ;

             (2)      Violation of any laws of this state to bail in the course of dealings under the license issued him the licensee by the director . ;

             (3)      Material omission, misstatement, misrepresentation , or fraud in obtaining the license . ;

             (4)      Misappropriation, conversion , or unlawful withholding of moneys, belonging to insurers or others and received in the conduct of business under the license . ;

             (5)      Conviction of , or a plea of guilty or nolo contendere to, a felony or any crime involving moral turpitude . ;

             (6)      Fraudulent or dishonest practices in the conduct of business under the license . ;

             (7)      Willful failure to comply with, or willful violation of any proper order, rule , or regulation of the director . , or the provisions of this chapter;

             (8)      When If , in the judgment of the director, the licensee has, in the conduct of affairs under the license, demonstrated incompetency, or untrustworthiness, or conduct or practices rendering him the licensee unfit to carry on the bail bond business or making his the licensee's continuance in such business detrimental to the public interest, or that he the licensee is no longer in good faith carrying on the bail bond business, or that he the licensee is guilty of rebating, or offering to rebate, or unlawfully dividing, or offering to divide his such licensee's premiums in the case of professional bondsmen bondsperson , and for such reasons is found by the director to be a source of detriment, injury , or loss to the public.

     Section  14.  That § 58-22-24 be amended to read as follows:

     58-22-24.   Professional bondsmen bondspersons shall, before writing cash or security bail bonds, deposit with the director in the same manner as required of domestic insurers, an amountdetermined by the director of not less than ten thousand dollars and an amount necessary to cover forfeitures as required to be filed with the director annually . Such deposit shall be is subject to all laws, rules, and regulations concerning deposits by domestic insurers. The director may waive the deposit requirement contained in this section for a person authorized pursuant to §   58-22-37 to countersign for a bail bondsman bondsperson .

     Section  15.  That § 58-22-25 be amended to read as follows:

     58-22-25.   No bail bondsman shall bondsperson may become a surety on an undertaking unless he the bail bondsperson has registered his license in the office of the sheriff in the county in which the bondsman bondsperson resides and he . The bail bondsperson may then become such a surety in any other county upon presenting to the official required to approve the sufficiency of bail, a certificate of such registration. A surety bondsman bondsperson shall also file a certified copy of his appointment by power of attorney from each insurer which he the bail bondsperson represents as agent with the sheriff. Registration and filing of certified copy of renewed power of attorney shall be performed annually on October first. The sheriff shall not permit the registration of a bail bondsman unless such bondsman is currently licensed by the director. Violation of this section is a Class 2 misdemeanor. No bail bondsperson may register with the sheriff unless such bail bondsperson is currently licensed with the director. Any violation of this section is a Class 1 misdemeanor.

     Section  16.  That chapter 58-22 be amended by adding thereto a NEW SECTION to read as follows:

     Any out-of-state bail bondsperson or runner entering this state shall notify all local law enforcement agencies in the area where the bail bondsperson or runner intends to conduct bail bondspersons or runner activities, including, at a minimum, the office of the county's, sheriff's, and also, if operating within a municipality, the office of the municipal police as to presence and intended activity and present evidence of out-of-state licensure. No out-of-state bail bondsperson or runner who is unlicensed in their state of domicile may conduct any bail bondsperson's or runner activities in this state. Violation of this section is a Class 6 felony.

     Section  17.  That § 58-22-26 be amended to read as follows:

     58-22-26.   Any bail bondsman bondsperson who discontinues writing bail bonds during the period for which he is licensed shall notify the sheriffs with whom he is registered and return his the license to the director for cancellation within thirty days for from such discontinuance.

     Section  18.  That § 58-22-27 be amended to read as follows:

     58-22-27.   Every person duly licensed as a bail bondsman bondsperson may appoint as a runner any person who holds or has qualified for a runner's license. Each bail bondsman must, on or before May first of each year, furnish to the director a list of all runners appointed by him. Each such bail bondsman who shall, subsequent to the filing of this list, appoint additional persons as runners shall file written notice with the director of such appointment. Each bail bondsperson appointing a runner in this state shall file with, and obtain approval from the director for each appointment which shall be in a format prescribed by the director, and pay a fee of ten dollars. The appointment is effective upon the date it is processed by the Division ofInsurance. The director may deny an appointment for reasons of protection of the public health, welfare, or safety, including the following:

             (1)    The runner to be appointed is not properly licensed;

             (2)    An investigation or administrative action concerning the runner or bail bondsperson by the Division of Insurance is eminent or on-going;

             (3)    Material omission, misstatement, misrepresentation, or fraud in applying for the appointment; or

             (4)    Conviction of, or a plea of guilty or nolo contendere to, a felony or any crime involving moral turpitude.

     The director shall give written notice to the bail bondsperson of approval, denial, or delay of a runner's appointment within thirty days of the bail bondsperson filing the appointment and shall send a copy of the notice to the runner.

     Section  19.  That chapter 58-22 be amended by adding thereto a NEW SECTION to read as follows:

     Each bail bondsperson shall, on or before May first of each year, furnish to the director a list of all runners appointed, accompanied by a ten dollar reappointment fee for each runner. Each bail bondsperson who, subsequent to the filing of this list, appoints additional persons as runners shall comply with the requirements of this section.

     Section  20.  That § 58-22-29 be amended to read as follows:

     58-22-29.   No bail bondsman bondsperson or runner shall may pay a fee or rebate or give or promise anything of value to the principal or anyone in his behalf an agent of the principal . Violation of this section is a Class 2 Class 1 misdemeanor.

     Section  21.  That § 58-22-30 be amended to read as follows:

     58-22-30.   No bail bondsman bondsperson or runner shall may accept anything of value from a principal except the premium , provided that . However, the bondsman shall be permitted to bondsperson may accept collateral security or other indemnity from the principal which shall be returned upon final termination of liability on the bond. Such collateral security or other indemnity required by the bondsman must bondsperson shall be reasonable in relation to the amount of the bond. Violation of this section is a Class 2 Class 1 misdemeanor.

     Section  22.  That § 58-22-32 be amended to read as follows:

     58-22-32.   No bail bondsman bondsperson or runner shall may solicit business in or about any place where prisoners are confined. Violation of this section is a Class 2 Class 1 misdemeanor.

     Section  23.  That § 58-22-33 be amended to read as follows:

     58-22-33.   No bail bondsman bondsperson or runner shall may pay a fee or rebate or give or promise anything of value to a jailer, policeman police , peace officer, committing magistrate, or any other person who has power to arrest or hold in custody; or to any public official or public employee in order to secure a settlement, compromise, remission , or reduction of the amount of any bail bond or the forfeiture thereof. Violation of this section is a Class 2 misdemeanor Class 6 felony .

     Section  24.  That § 58-22-34 be amended to read as follows:

     58-22-34.   No bail bondsman bondsperson or runner shall may pay a fee or rebate or give anything of value to an attorney in bail bond matters; except in defense of any action on a bond. Violation of this section is a Class 2 misdemeanor Class 6 felony .

     Section  25.  That § 58-22-35 be amended to read as follows:

     58-22-35.   No bail bondsman bondsperson or runner shall may participate in the capacity of an attorney at a trial or hearing of one on whose bond he such bail bondsperson or runner is surety. Violation of this section is a Class 2 Class 1 misdemeanor.

     Section  26.  That § 58-22-36 be amended to read as follows:

     58-22-36.   No bail bondsman bondsperson or runner shall may suggest or advise the employment of or name for employment any particular attorney to represent his the bondsperson's or runner's principal. Violation of this section is a Class 2 misdemeanor.

     Signed March 13, 1998.