1. Applicable Statutes

Arizona Revised Statutes Title 20: Insurance, Chapter 2: Transaction of Insurance Business, Article 3: Insurance Producer Licensing

Arizona Rules of Criminal Procedure: Part Three: Rights of Parties: Rule 7

Arizona Revised Statutes Title 13: Criminal Code: Chapter 38: Miscellaneous: Article 7: Arrest and Article 12: Bail

2. Licensing Requirements

"Bail bond agent" means an individual who is appointed by an insurer through a power of attorney to execute or countersign bail bonds in connection with judicial proceedings and who receives or is promised monies or other things of value for that service. [A.R.S. § 20-340.01]

A bail bond agent must comply with the following for licensure: [AZ ST RCRP Rule 7.1]

• Be a resident of this state
• Have sufficient financial net worth to satisfy reasonable obligations as a surety
• Agree to assume an affirmative duty to the court to remain in regular contact with any defendant released pursuant to an appearance bond on which the person is a surety
• Not have been convicted of a felony
• Have no judgments arising out of surety undertakings outstanding against him or her
• Have not, within a period of two years, violated any provisions of these rules or any court order.
• Maintain a place of business in this state that is accessible to the public and where the bail bond agent principally conducts transactions under the agent's license. [A.R.S. § 20-340.01]
• Maintain a daily bond register that is the original and permanent record of all bonds or undertakings executed by the licensee [A.R.S. § 20-340.01]
• Maintain a $10,000 bond with the State Treasurer [A.R.S. § 20-340.01]

The Regulatory Body is the Department of Insurance.

3. Notice of Forfeiture [AZ ST RCRP Rule 7.6]

If the defendant fails to appear, the court shall issue a bench warrant for the person's arrest and send a copy to the surety within 10 days after the issuance of the warrant.

The court shall also set a hearing within a reasonable time not to exceed 120 days requiring the parties and any surety to show cause why the bond should not be forfeited. The court shall provide notice of the hearing to the parties and any surety by mailing copies of the minute entry to the addresses previously provided by the parties to the court.

4. Forfeiture to Judgment [AZ ST RCRP Rule 7.6]

If at the hearing, the violation is not explained or excused, the court may enter an appropriate order of judgment forfeiting all or part of the amount of the bond, which shall be enforceable by the state as any civil judgment.

After entering an order of forfeiture, the court shall forward: (1) a copy of the forfeiture minute entry to the defendant, the defendant's attorney, and the surety; and (2) a copy of a signed forfeiture minute entry to the county attorney for collection.

5. Forfeiture Defenses [AZ ST RCRP Rule 7.6]

If the surety, in compliance with the requirements of A.R.S. § 13-3974, surrenders the defendant to the sheriff of the county in which the prosecution is pending, or delivers an affidavit to the sheriff stating that the defendant is incarcerated in this or another jurisdiction, and the sheriff reports the surrender or status to the court, the court may exonerate the bond.

In all other instances, the decision whether or not to exonerate a bond shall be within the sound discretion of the court.

6. Remission [A.R.S. § 13-3974]

A surety may be relieved from liability on an appearance bond if the surety surrenders the defendant into the custody of the sheriff of the county in which the prosecution is pending and the sheriff reports the surrender to the court.

7. Bail Agent's Arrest Authority

For the purpose of surrendering the defendant, a surety on the bail bond of a defendant may arrest the defendant before the forfeiture of the undertaking or, by written authority attached to a certified copy of the undertaking, may empower a bail recovery agent or a bail bond agent as defined in section 20-340 to arrest the defendant. [A.R.S. § 13-3885]

8. Other Noteworthy Provisions

In order to retain the services of a bail recovery agent in Arizona , a bail bond agent who is licensed in another state (but not in Arizona ) must contract with a bail bond agent licensed in Arizona . [A.R.S. § 13-3885]

9. Noteworthy Appellate Decisions

State of Arizona v. Empire American Bail Bonds, Inc. No. 1 CA-CV 97-0426 Court of Appeals of Arizona, Division 1, Department E.

Feb. 24, 1998.

Empire American Bail Bonds, Inc. ("Empire") appeals from the trial court's order denying its request for a new form of judgment. The issue presented by this appeal is whether the state must give notice to the surety of the filing of a proposed form of judgment forfeiting the bail bond. The court holds that Rule 58(a), Arizona Rules of Civil Procedure, requires such notice. The trial court erred in signing the judgment without first requiring proof of such notice. The court, therefore, vacates the trial court's order denying Empire's request for a new form of judgment and remands the case for further proceedings.

State of Arizona v. L.Z. Jackson d/b/a A-Jax Bond Company , No. 1 CA-CV 94-0302.

Court of Appeals of Arizona , Division 1, Department D.

Dec. 19, 1995.

After a defendant who had been released pursuant to bail bond failed to appear at arraignment, the surety on bond filed a motion to exonerate bond, and the state filed a motion for forfeiture in response. After setting hearing over 90 days after defendant's failure to appear, the Superior Court ordered bond forfeited, and the surety appealed.

The Court of Appeals held that: (1) statute governing bond forfeitures (which requires a hearing to be held more than 90 days before and less than 180 days after failure to appear) conflicts with, and is superseded by, rules of criminal procedure requiring hearing to be held within ten days, but (2) failure to hold hearing within ten days did not require dismissal of forfeiture as surety was not prejudiced and had opportunity to contest forfeiture. The Superior Courts decision that the bond be forfeited was affirmed.

United Bonding Ins. Co. v. City Court of City of Tucson , 433 P.2d 642 (Az. App. 1967) Surrender of defendant before breach of undertaking would exonerate surety on bail bond.

State ex rel. Corbin v. Superior Court In and For Maricopa County , 407 P.2d 938 (Az. App. 1965) To constitute sufficient basis for exoneration of bond or to justify suspension of forfeiture until after defendant's release by other authorities, surrender of defendant by surety must be before breach of undertaking and must be actual surrender and not mere offer.

United Bonding Ins. Co. v. City Court of City of Tucson , 433 P.2d 642. (Az. App. 1967) Termination of prosecution before forfeiture of bail bond terminates surety's liability on bond.

Surety's surrender of defendant after forfeiture of bail bond would not necessarily have entitled surety to remission of forfeiture.

10. Bounty Hunter Provisions

"Bail recovery agent" means any person who has never been convicted in any jurisdiction of theft or of a felony or any crime involving carrying or the illegal use or possession of a deadly weapon or dangerous instrument and who is employed or hired as an independent contractor or otherwise utilized by a bail bond agent to assist the bail bond agent in presenting a defendant in court when required, in apprehending a defendant and surrendering the defendant to a court or in keeping a defendant under necessary surveillance. Bail recovery agent does not include an attorney or law enforcement officer who acts in an official capacity and who assists a bail bond agent in the bail bond agent's business. [A.R.S. § 13-3885]

Before acting as a bail recovery agent, a person must: [A.R.S. § 20.340.04]

• Submit an initial set of fingerprints and a new set every third year
• Submit to a criminal background check
• Be identified in a report filed by a licensed bail bond agent

A bail recovery agent or a bail bond agent shall not do any of the following: [A.R.S. § 13-3885]

• Enter an occupied residential structure without the consent of the occupants who are present at the time of the entry.
• Conduct a bail recovery arrest or apprehension without written authorization from a bail bond agent licensed in Arizona .
• Wear, carry or display any uniform, badge, shield or other insignia or emblem that implies that the bail recovery agent is an employee, officer or agent of this state, a political subdivision of this state or the federal government. A bail recovery agent may display identification that indicates the agent's status as a bail recovery agent only.
• Authorize or allow any third party bail recovery agent to undertake an apprehension or arrest if the bail recovery agent has been convicted in any jurisdiction of theft or of any felony or any crime involving carrying or the illegal use or possession of a deadly weapon or dangerous instrument.
• The surety or bail bond agent employing, hiring as an independent contractor or otherwise utilizing a bail recovery agent shall advise the department of insurance in writing that the bail recovery agent is providing the services to the surety or bail bond agent on a given case or cases. The written notice to the department of insurance must be given within twenty-four hours after the retention and include identifying information about the agent and a sworn statement that the agent has never been convicted of theft or any crime involving illegal use or possession of a deadly weapon.
• Bail bond agents shall provide an annual report to the department of insurance listing all bail recovery agents employed, hired as independent contractors or otherwise utilized by the bail bond agent during the year. This report shall certify that all employees of the bail bond agent have met the requirements prescribed in section 20-340.03 and that all bail recovery agents have complied with section 20-340.04. The report shall include the name, home and business addresses, date of birth, telephone number, and a two-inch wide by three-inch high photograph of the face of each person identified in the report.
• To satisfy the requirements of this section, a bail bond agent who is licensed in another state but is not licensed in this state shall contract with a bail bond agent licensed in this state to retain the services of a bail recovery agent in this state.