Bail agent licenses: qualifications.

Existing law requires a license from the Insurance Commissioner for advertising or holding oneself out as engaging in the business of executing, delivering, or furnishing bail bonds or undertakings of bail whether or not for consideration. A license may be held by a corporation if certain requirements are met, including, but not limited to, that 100% of the shares of the corporation are held by licensed bail agents, and all shareholders, officers, and directors of the corporation are licensed bail agents. A violation of any of these provisions is a crime. This bill would authorize a limited liability company (LLC) to be a licensee subject to the same requirements as corporations. The bill would also exempt a corporation or a LLC from the requirements that 100% of the shares of the corporation or membership interest in the LLC be held by licensed bail agents, and all shareholders, officers, and directors of the corporation or members of the LLC be licensed bail agents, if the corporation or LLC is an admitted surety insurer or a subsidiary of an admitted surety insurer. Because a violation of the bill's provisions by an LLC would be a crime, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.