1.1 	A bill for an act
1.2 	relating to insurance; regulating sureties, supervising bail bond agencies, surety 
1.3 	bail bond producers, and bail bond enforcement agents;amending Minnesota 
1.4 	Statutes 2020, section 629.63; proposing coding for new law as Minnesota Statutes, 
1.5 	chapter 60M.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. [60M.01] DEFINITIONS.
1.8 		Subdivision 1.Terms. For the purposes of this chapter, the terms defined in this section 
1.9 	have the meanings given them.
1.10 		Subd. 2.Commissioner. "Commissioner" means the commissioner of commerce.
1.11 		Subd. 3.Disqualifying offense. "Disqualifying offense" means: (1) a felony; or (2) a 
1.12 	gross misdemeanor if an element of the offense involves dishonesty or misappropriation of 
1.13 	money or property.
1.14 		Subd. 4.Estreatment or estreature. "Estreatment" or "estreature" means the enforcement 
1.15 	of a forfeiture of a bail bond due to a failure of the principal to comply with a lawful 
1.16 	appearance in court and the court order forfeiting the bail bond.
1.17 		Subd. 5.Insurer. "Insurer" means any domestic, foreign, or alien insurance company 
1.18 	that is licensed to transact surety business in Minnesota under section 60A.06.
1.19 		Subd. 6.License. "License" means a surety bail bond producer license issued under 
1.20 	chapter 60K by the commissioner to a qualified individual, as provided in this chapter.
1.21 		Subd. 7.Negotiate. "Negotiate" means the act of conferring directly with or offering 
1.22 	advice directly to a purchaser or prospective purchaser of a particular insurance contract 
2.1 	concerning any of the substantive benefits, terms, or conditions of the contract if the person 
2.2 	engaged in the act either sells insurance or obtains insurance from insurers for purchasers.
2.3 		Subd. 8.Sell. "Sell" means to exchange on behalf of an insurance company an insurance 
2.4 	contract by any means for money or its equivalent.
2.5 		Subd. 9.Supervising bail bond agency. "Supervising bail bond agency" means any 
2.6 	agency contracted by an insurer to supervise or otherwise manage the bail bond business 
2.7 	written in Minnesota by surety bail bond producers appointed by the insurer.
2.8 		Subd. 10.Solicit. "Solicit" means: (1) any written or printed presentation or advertising 
2.9 	made by mail or other publication which implies that an individual is licensed under this 
2.10 	chapter; (2) an oral presentation or advertising in person or by means of telephone, radio, 
2.11 	or television, which implies that an individual is licensed under this chapter; (3) an activity 
2.12 	in arranging for bail which results in compensation or anything of value to the individual 
2.13 	conducting that activity; or (4) an attempt to sell or ask or urge a person to apply for a bail 
2.14 	bond from an insurer.
2.15 		Subd. 11.Surety bail bond producer. "Surety bail producer" means any person licensed 
2.16 	under this chapter that works for a supervising bail bond agency and is appointed by an 
2.17 	insurer to execute or countersign bail bonds for the insurer in connection with judicial 
2.18 	proceedings.

2.19 	Sec. 2. [60M.02] LICENSURE; GENERAL REQUIREMENTS.
2.20 		Subdivision 1.Generally. An insurer is prohibited from executing an undertaking of 
2.21 	bail in Minnesota except by and through a surety bail bond producer holding a license issued 
2.22 	under this chapter.
2.23 		Subd. 2.License required; discipline. (a) A person is prohibited from selling, soliciting, 
2.24 	or negotiating to execute or deliver an undertaking of bail or bail bond on behalf of an 
2.25 	insurer, or execute or deliver an undertaking of bail or bail bond on behalf of an insurer, 
2.26 	unless the person is licensed as provided in this section and chapter 60K.
2.27 	(b) A person engaged in law enforcement or vested with police powers is prohibited 
2.28 	from being licensed as a surety bail bond producer.
2.29 	(c) In addition to the department's authority under chapters 45 and 60K, a person who 
2.30 	violates this subdivision is guilty of a gross misdemeanor.
3.1 		Subd. 3.Bail bonds; license required. (a) Only natural persons who are licensed under 
3.2 	this chapter may execute bail bonds. A license does not create any actual, apparent, or 
3.3 	inherent authority for the holder to represent or commit an insurance carrier.
3.4 	(b) A supervising bail bond agency must be licensed as a business insurance producer 
3.5 	under 60K.37, subdivision 3. A supervising bail bond agency desiring to execute an 
3.6 	undertaking of bail in Minnesota must do so by and through a person holding a surety bail 
3.7 	bond producer license issued under this chapter. Any supervising bail bond agency doing 
3.8 	business under a name other than a surety bail bond producer's legal name must provide 
3.9 	the commissioner with documentation that the assumed name has been properly filed with 
3.10 	the secretary of state before the bail bond agency uses the assumed name.
3.11 		Subd. 4.License application. A person desiring to act as a surety bail bond producer 
3.12 	in Minnesota must pass a prelicense test before submitting a written application to the 
3.13 	commissioner for a license. The application must be submitted in the form prescribed by 
3.14 	the commissioner. Each application must be signed by the applicant and must be accompanied 
3.15 	by a nonrefundable filing fee in the amount provided under section 60K.55. The applicant 
3.16 	must also comply with the criminal history and background check requirements under 
3.17 	section 60K.37, subdivision 2a.
3.18 		Subd. 5.Insurer appointment. (a) Every surety and every surety bail bond producer 
3.19 	is subject to the appointment requirements under section 60K.49.
3.20 	(b) An appointment of a person as a surety bail bond producer by an insurer under 
3.21 	paragraph (a) constitutes certification by the insurer that, to the best of the insurer's 
3.22 	knowledge and belief, the person is competent, financially responsible, and suitable to serve 
3.23 	as the insurer's representative. A person is prohibited from representing to the public that 
3.24 	the person has the authority to represent an insurer as the insurer's surety bail bond agent 
3.25 	until the person has been appointed an agent by an insurer under this section.
3.26 	(c) Each appointment, by its terms, continues in force until: (1) the surety bail bond 
3.27 	producer's license is inactive for any reason; (2) the insurer or the insurer's representative 
3.28 	files a notice of termination with the commissioner; or (3) the surety bail bond producer 
3.29 	files a notice of termination with the commissioner.
3.30 	(d) Prior to appointment by the insurer and at each subsequent license renewal, a surety 
3.31 	bail bond producer must sign an affidavit of compliance, as developed and adopted by the 
3.32 	commissioner, acknowledging that the surety bail bond producer is familiar with and 
3.33 	continually complies with the conditions set forth in this chapter. Completed affidavits of 
4.1 	compliance must be held by the insurer and must be sent to the Department of Commerce 
4.2 	within ten days of the date a request is received.
4.3 		Subd. 6.License examination. (a) A person applying for a surety bail bond producer 
4.4 	license must pass a written examination before applying for a license, unless the person is 
4.5 	exempt under paragraph (c).
4.6 	(b) The commissioner must prescribe the content of the examination, which must be 
4.7 	sufficient in scope to test the applicant's knowledge of subjects pertinent to the duties and 
4.8 	responsibilities of a surety bail bond agent, including all applicable laws and regulations of 
4.9 	Minnesota.
4.10 	(c) A resident person is exempt from taking a prelicense test if the person has been 
4.11 	continually licensed as a surety bail bond producer and the original license was issued prior 
4.12 	to July 1, 2021.
4.13 		Subd. 7.Construction. Unless specifically governed by provisions in this chapter, the 
4.14 	requirements of chapter 60K continue to apply to all insurers, supervising bail bond agencies, 
4.15 	and surety bail bond producers.
4.16 		Subd. 8.Notice; status changes. Each surety bail bond producer or surety bail bond 
4.17 	agency must provide written notice no later than 30 days after a change, proceeding, action, 
4.18 	or order:
4.19 	(1) to the commissioner, the appointing insurer, and the supervising bail bond agency 
4.20 	of a change in the surety bail bond producer's business name, principal business address, 
4.21 	telephone number, or e-mail address;
4.22 	(2) to the commissioner of a change in the surety bail bond producer's name, residence 
4.23 	address, telephone number, or e-mail address; and
4.24 	(3) to the commissioner of (i) any bankruptcy proceeding in Minnesota or another state 
4.25 	concerning the surety bail bond producer, or (ii) any administrative action taken or any 
4.26 	administrative order entered against the producer in Minnesota or another state.
4.27 		Subd. 9.Notice; disqualifying offenses. The insurer, supervising bail bond agency, or 
4.28 	surety bail bond producer must notify the commissioner in writing not later than ten days 
4.29 	after receiving notice or learning that a surety bail bond producer has been arrested for, 
4.30 	charged with, pleaded guilty or nolo contendere to, or been found guilty of a disqualifying 
4.31 	offense in Minnesota or an offense in any other state for which the essential elements are 
4.32 	substantially the same as a disqualifying offense, whether judgment was entered or withheld 
4.33 	by a court.

5.1 	Sec. 3. [60M.03] SURETY BAIL BONDS.
5.2 		Subdivision 1.Authorized premium. A surety bail bond producer is prohibited from 
5.3 	executing a bail bond without charging the premium provided under the surety's rate filing 
5.4 	with the commissioner.
5.5 		Subd. 2.Fees for services. A surety bail bond producer is prohibited from charging a 
5.6 	fee for any services rendered in connection with the solicitation, negotiation, or servicing 
5.7 	of any bail bond contract unless:
5.8 	(1) before rendering the services a written statement is provided, disclosing:
5.9 	(i) the services for which fees are charged;
5.10 	(ii) the amount of the fees;
5.11 	(iii) that the fees are charged in addition to premiums; and
5.12 	(iv) that premiums include a commission; and
5.13 	(2) all fees charged are reasonable in relation to the services rendered.
5.14 		Subd. 3.Insurer audits. (a) An insurer must annually audit for the period from January 
5.15 	1 to December 31 each of the insurer's appointed surety bail bond producers to ensure each 
5.16 	producer has complied with this chapter's requirements regarding premium charged, premium 
5.17 	collected, the existence and amount of the promissory note or other security, the surety bail 
5.18 	bond producer's collection efforts, and collateral taken by the surety bail bond producer. 
5.19 	The commissioner must develop and adopt an insurer audit template no later than 60 days 
5.20 	following the enactment of this act. The insurer must complete the audit template as part 
5.21 	of the annual audit. Not later than June 30 each year, an insurer must notify the commissioner 
5.22 	if any surety bail bond producer failed to comply with this chapter's requirements regarding 
5.23 	premium charged, premium collected, the existence and amount of the promissory note or 
5.24 	other security, the surety bail bond producer's collection efforts, and collateral taken by the 
5.25 	surety bail bond producer during the previous calendar year. The notice must include the 
5.26 	name of the surety bail bond producer and details regarding the surety bail bond producer's 
5.27 	failure to comply with the requirements.
5.28 	(b) The annual audit required by this subdivision must include a review of an adequate 
5.29 	sample of bonds written by each surety bail bond producer. An adequate sample consists 
5.30 	of the lesser of 24 bonds or 20 percent of the bonds written by each producer. If the surety 
5.31 	bail bond producer has written less than 24 bonds, all bonds must be audited.
6.1 	(c) The audit sample must include the four largest and four smallest bonds written by 
6.2 	the surety bail bond producer. Of the remaining bonds audited, to the extent the quantity of 
6.3 	bonds supports the percentage, 50 percent must be randomly selected bonds with a penal 
6.4 	sum of $10,000 or less, and the remaining 50 percent with a penal sum of over $10,000.
6.5 	(d) The audit must be conducted at either the bail bond surety producer's or supervising 
6.6 	bail bond agency's office, depending on the location of the files. The audit may be done 
6.7 	electronically by the insurer if the surety bail bond producer's and supervising bail bond 
6.8 	agency's files are stored electronically and cannot be altered once they are stored, and the 
6.9 	surety has access to the complete records. The insurer must not disclose to the surety bail 
6.10 	bond producer or the supervising bail bond agency, or anyone affiliated with the surety bail 
6.11 	bond producer or the supervising bail bond agency, the files included in the insurer's audit 
6.12 	until the insurer's on-site audit begins.
6.13 	(e) For each bond audited, the insurer must confirm:
6.14 	(1) the proper premium was charged and collected. Confirmation of premium collection 
6.15 	includes a review of the premium account statements and deposit slips;
6.16 	(2) a proper premium receipt is in the bail bond surety producer's file;
6.17 	(3) a proper promissory note was executed at the time the bond was sold if the full 
6.18 	premium was not paid before the bond was posted;
6.19 	(4) that suit was filed if the premium was not paid as required under section 60M.04; 
6.20 	and
6.21 	(5) that reasonable efforts were made to (i) serve a summons and complaint, (ii) enter 
6.22 	judgment, unless the matter was settled while the suit was pending, and (iii) enforce the 
6.23 	judgment.
6.24 	(f) In addition to the audit required under this section, the annual audit required under 
6.25 	this subdivision must include a follow-up review of each bond audited the prior year for 
6.26 	which the full premium had not been collected at the time of the final audit. For each bond 
6.27 	in the follow-up review, the insurer must confirm, through a review of the premium account 
6.28 	and deposit slips, that the full premium was collected or if full payment was not received, 
6.29 	that the required suit was filed and reasonable efforts were made to (1) serve the summons 
6.30 	and complaint, (2) enter judgment, unless the matter was settled while the suit was pending, 
6.31 	and (3) enforce the judgment. Nothing in this section precludes the commissioner or the 
6.32 	commissioner's designated producer from auditing some or all of a surety bail bond producer's 
6.33 	or supervising bail bond agency's files.
7.1 	(g) An insurer must conduct an annual audit of every surety bail bond producer's and 
7.2 	supervising bail bond agency's collateral security records. The insurer must sample the 
7.3 	lesser of 12 bonds that were secured by collateral security or 20 percent of all bonds secured 
7.4 	by collateral security. The audit under this paragraph must include:
7.5 	(1) confirmation the surety bail bond producer or supervising bail bond agency maintained 
7.6 	a collateral security log that lists (i) the power of attorney number; (ii) the defendant's name; 
7.7 	(iii) the depositor's name; (iv) the cash collateral amount, including information indicating 
7.8 	whether the cash collateral is being held in an interest bearing account for the benefit of the 
7.9 	collateral owner; (v) a detailed description of the collateral, if the collateral is not cash; (vi) 
7.10 	the date the collateral was taken; and (vii) the dates the collateral was sent to the insurer, 
7.11 	returned to the depositor, liquidated, or applied to any loss or costs incurred by the surety 
7.12 	bail bond producer, supervising bail bond agency, or insurer;
7.13 	(2) that a cash collateral security trust account exists;
7.14 	(3) that the balance of cash collateral security shown on the collateral security log equals 
7.15 	the amount held in the collateral security trust account; and
7.16 	(4) that a collateral security receipt exists.
7.17 		Subd. 4.Executed bail bonds; certification. Not later than June 30 each year, an insurer 
7.18 	must file with the commissioner a statement certifying the total amount of bail bonds 
7.19 	executed by the insurer and the total amount of premiums collected by the insurer on the 
7.20 	bail bonds in the preceding calendar year.
7.21 		Subd. 5.Construction; limitation. Nothing in this section prohibits or limits a premium 
7.22 	financing arrangement that complies with section 60M.04.

7.23 	Sec. 4. [60M.04] PREMIUM FINANCING ARRANGEMENTS.
7.24 		Subdivision 1.Generally. A surety bail bond producer may, with approval of the surety 
7.25 	by which the surety bond producer is appointed, enter into a premium financing arrangement 
7.26 	with a principal or any indemnitor in which the surety bail bond producer extends credit to 
7.27 	the principal or indemnitor for bail bonds with a penal sum of $3,000 or more. Premium 
7.28 	financing arrangements are prohibited for a bail bond with a penal sum that is less than 
7.29 	$3,000.
7.30 		Subd. 2.Requirements. (a) A surety bail bond producer may enter into a premium 
7.31 	financing arrangement on behalf of the surety for any bail bond with a penal sum of $3,000 
7.32 	or more. For bonds with a penal sum of $3,000 or more, the principal on the bail bond or 
8.1 	any indemnitor must make a minimum down payment of 50 percent of the premium owed 
8.2 	under the surety's rate filing approved by the commissioner.
8.3 	(b) The promissory note must provide that the balance must be paid no later than 360 
8.4 	days after the date the bail bond is executed. The promissory note may allow for (1) an 
8.5 	annual interest rate of no more than six percent, and (2) the actual costs of collection and 
8.6 	reasonable attorney fees in the event of a default.
8.7 	(c) If the balance has not been paid in full to the surety bail bond within 90 days after 
8.8 	the due date, the supervising bail bond agency or surety bail bond producer must, within 
8.9 	20 days after the due date, file civil court action or refer the matter for collection to a licensed 
8.10 	collection agency.
8.11 	(d) The supervising bail bond agency or surety bail bond producer, either directly or 
8.12 	through a licensed collection agency, must make a diligent effort to recover the amount 
8.13 	owed by obtaining a judgment after filing a complaint unless good cause is shown for the 
8.14 	failure to obtain judgment, including a bankruptcy filing by the principal or the indemnitor, 
8.15 	failure to serve process despite good faith efforts, or any other reason that has received prior 
8.16 	approval from the commissioner.

8.17 	Sec. 5. [60M.05] PREMIUMS; TRUST FUNDS.
8.18 	All premiums, including any part of a premium that a surety bail bond producer is 
8.19 	obligated to return to a principal or indemnitor, and other funds belonging to insurers or 
8.20 	others that are received by a surety bail bond producer in performing the producer's duties 
8.21 	as a surety bail bond producer are deemed trust funds received by the producer in a fiduciary 
8.22 	capacity. The producer must account for and pay the same to the insurer or persons entitled 
8.23 	to the funds pursuant to the surety bail bond producer's contract with the insurer or 
8.24 	supervising bail bond agency. Fees, expenses, or charges of any kind must not be deducted 
8.25 	from any premium the surety bail bond producer is obligated to return to a principal or 
8.26 	indemnitor, except as authorized under sections 60M.03 to 60M.12. The insurer, supervising 
8.27 	bail bond agency, and surety bail bond producer must accept only cash, money orders, 
8.28 	checks, wire transfers, electronic funds transfers, debit cards, prepaid cash cards, and credit 
8.29 	cards for premium payments, with any balance owed evidenced by a promissory note that 
8.30 	is approved by the insurer.

8.31 	Sec. 6. [60M.06] RECORDS.
8.32 	A surety bail bond producer and supervising bail bond agency must keep and make 
8.33 	available all books, accounts, and records of surety bail bonds executed or countersigned 
9.1 	by the producer for at least three years after the insurer's liability has been terminated. 
9.2 	Records that are preserved by photographic, electronic, or digital reproduction, or records 
9.3 	that are in photographic, electronic, or digital form, comply with this section if the record 
9.4 	is legible and cannot be altered once it is stored. A surety bail bond producer's and supervising 
9.5 	bail bond agency's records must be available to a Department of Commerce authorized 
9.6 	representative, an authorized representative of the insurer, or a supervising bail bond agency 
9.7 	at all times for examination, inspection, and photographic, electronic, or digital reproduction. 
9.8 	The commissioner may require a surety bail bond producer and supervising bail bond agency 
9.9 	to furnish to the Department of Commerce at any time any information, in the manner or 
9.10 	form as the commissioner may require, concerning the surety bail bond producer's or 
9.11 	supervising bail bond agency's surety bail bond business. This section is in addition to the 
9.12 	commissioner's authority under chapters 45, 60A, and 60K.

9.13 	Sec. 7. [60M.07] ACCOUNTS.
9.14 	(a) A surety bail bond producer must maintain a trust account pursuant to the surety bail 
9.15 	bond producer's contract with the insurer, the supervising bail bond agency, or the supervising 
9.16 	bail bond agency's contract with the insurer, as applicable. The insurer or supervising bail 
9.17 	bond agency must establish or require an individual trust account for each surety bail bond 
9.18 	producer in a federally insured bank or savings and loan association in Minnesota, jointly 
9.19 	in the name of the surety bail bond producer and the insurer or supervising bail bond agency, 
9.20 	or in trust for the surety bail bond producer by the insurer or supervising bail bond agency.
9.21 	(b) A surety bail bond producer and the supervising bail bond agency must turn over to 
9.22 	the insurer all collateral received or as otherwise provided in this section. At the insurer's 
9.23 	discretion, the insurer may permit the surety bail bond producer to turn over all collateral 
9.24 	received to the supervising bail bond agency and permit the supervising bail bond agency 
9.25 	to retain possession and control over the collateral without turning it over to the insurer. If 
9.26 	the insurer permits the supervising bail bond agency to retain possession and control over 
9.27 	the collateral, the supervising bail bond agency has the responsibilities and obligations of 
9.28 	the insurer set forth under this chapter. A surety bail bond producer must not be allowed to 
9.29 	retain possession or control of the collateral beyond the times set forth in this chapter.
9.30 	(c) The insurer or supervising bail bond agency must deposit funds received from the 
9.31 	surety bail bond producer in the trust account within five business days of a bond being 
9.32 	posted or a payment being made on a premium promissory note. The surety bail bond 
9.33 	producer must deposit the funds received directly into a trust account maintained by the 
10.1 	surety bail bond producer. Interest earned on any deposits accrues to the surety bail bond 
10.2 	producer.
10.3 	(d) The only funds that may be deposited into a trust account are premium payments, 
10.4 	travel-related fees, or other fees that are reasonable in relation to the service provided and 
10.5 	that were disclosed to the customer in advance, as required under section 60K.46, subdivision 
10.6 	2.
10.7 	(e) Each deposit into a trust account must be accompanied by a deposit slip that separately 
10.8 	designates the source of the deposit and specifically lists the power of attorney number used 
10.9 	for the bond the premium was collected for.
10.10 	(f) Withdrawals from a surety bail bond producer's trust account must be made only to:
10.11 	(1) pay the insurer or supervising bail bond agency the net premium, defined as premium 
10.12 	less commission as agreed to in advance and in writing between the surety bail bond producer 
10.13 	and the insurer or the supervising bail bond agency;
10.14 	(2) pay the insurer or supervising bail bond agency any required build up fund or escrow 
10.15 	account pursuant to the contract between the surety bail bond producer and the insurer or 
10.16 	the supervising bail bond agency;
10.17 	(3) pay the surety bail bond producer any travel-related or other fees that have been 
10.18 	collected and that are reasonable in relation to the service provided and disclosed in advance 
10.19 	to the customer in accordance with section 60K.46, subdivision 2;
10.20 	(4) pay to the surety bail bond producer any fees or charges deducted electronically by 
10.21 	credit card processing vendors, provided the fees or charges are reasonable in relation to 
10.22 	the service provided and were disclosed to the customer in advance, as required under 
10.23 	section 60K.46, subdivision 2; and
10.24 	(5) distribute any excess amounts to the surety bail bond producer's operating account.
10.25 	(g) The account must be open to inspection and examination by the Department of 
10.26 	Commerce at all times. The insurer, supervising bail bond agency, and surety bail bond 
10.27 	producer must maintain an accurate accounting of all accounts.

10.28 	Sec. 8. [60M.08] SURETY BAIL BOND PRODUCER; COLLATERAL SECURITY; 
10.29 	GENERALLY.
10.30 		Subdivision 1.Collateral security; indemnity. A surety bail bond producer may receive 
10.31 	collateral security or other indemnity on a bail bond, if approved by the insurer.
11.1 		Subd. 2.Requirements. A surety bail bond producer, supervising bail bond agency, or 
11.2 	an insurer who receives collateral security or other indemnity on a bail bond must comply 
11.3 	with all of the following requirements:
11.4 	(1) the collateral security or other indemnity must be reasonable in relation to the amount 
11.5 	of the bail bond;
11.6 	(2) the collateral security or other indemnity must not be used by the surety bail bond 
11.7 	producer for personal benefit or gain, and must be returned in the same condition as received;
11.8 	(3) acceptable forms of collateral security or other indemnity include cash or its 
11.9 	equivalent, a promissory note, an indemnity agreement, a real property mortgage in the 
11.10 	name of the insurer, any Uniform Commercial Code filing, or other collateral security with 
11.11 	the insurer's documented prior approval;
11.12 	(4) the surety bail bond producer must provide to the person providing the collateral 
11.13 	security or other indemnity a written, numbered receipt that includes the date, depositor's 
11.14 	name and address, supervising bail bond agency's name and address, insurer's name and 
11.15 	address, defendant's name, bond amount, bond number, and the cash amount or a detailed 
11.16 	description of the collateral if not cash;
11.17 	(5) the receipt must be signed by (i) the surety bail bond producer, insurer, or supervising 
11.18 	bail bond agency, and (ii) the individual on whose behalf the collateral is being held;
11.19 	(6) the surety bail bond producer or supervising bail bond agency must hold the collateral 
11.20 	security or other indemnity in a fiduciary capacity and must not, prior to any forfeiture of 
11.21 	a bail bond, commingle the collateral security or other indemnity with any other funds or 
11.22 	assets the surety bail bond producer or supervising bail bond agency maintains;
11.23 	(7) if the surety bail bond producer receives collateral security or other indemnity in 
11.24 	excess of $50,000 in cash: (i) the cash amount must be made payable to the insurer in the 
11.25 	form of a cashier's check, United States postal money order, certificate of deposit, or wire 
11.26 	or other electronic transfer; and (ii) the producer must forward within five business days 
11.27 	the entire amount of the collateral security or other indemnity to the insurer;
11.28 	(8) the insurer, supervising bail bond agency, or surety bail bond producer is prohibited 
11.29 	from taking a quit claim deed on real property as collateral for a bond;
11.30 	(9) all mortgages and deeds of trust taken as collateral for a bond must name the insurer 
11.31 	as mortgagee or, at the discretion of the insurer, the supervising bail bond agency may be 
11.32 	named as the mortgagee, except that a surety bail bond producer must not be named as a 
11.33 	mortgagee;
12.1 	(10) the insurer or supervising bail bond agency that controls the collateral must return 
12.2 	all collateral to the depositor named in the collateral receipt within 21 calendar days after 
12.3 	the depositor has provided written proof of bond discharge to the insurer or supervising bail 
12.4 	bond agency; provided, however, that if the depositor owes the insurer, supervising bail 
12.5 	bond agency, or surety bail bond producer any premium for any loss or expense related to 
12.6 	a breach of the bond or any terms of any indemnity or other agreement, the insurer or 
12.7 	supervising bail bond agency may retain from the collateral all funds required to satisfy the 
12.8 	depositor's debts;
12.9 	(11) if all debts secured by the collateral are satisfied, the insurer or supervising bail 
12.10 	bond agency must file documentation within 21 calendar days after the depositor has provided 
12.11 	written proof of the bond discharge to the insurer or supervising bail bond agency to release 
12.12 	any liens, security interests, mortgages, or other interests filed or obtained in relation to the 
12.13 	collateral; and
12.14 	(12) any action taken to enforce or foreclose upon collateral must comply with Minnesota 
12.15 	law.
12.16 		Subd. 3.Deposit. With the insurer's prior approval, the surety bail bond producer may 
12.17 	deposit collateral security or other indemnity in an interest-bearing account in a federally 
12.18 	insured bank or savings and loan association in Minnesota, to accrue for the benefit of the 
12.19 	person providing the collateral security or other indemnity. The surety bail bond producer, 
12.20 	insurer, or supervising bail bond agency is prohibited from receiving any direct or indirect 
12.21 	pecuniary or other gain on the collateral security or other indemnity deposited.
12.22 		Subd. 4.Insurer liability. (a) The insurer is liable for all collateral security or other 
12.23 	indemnity received by a surety bail bond producer. If, upon final termination of liability on 
12.24 	a bail bond, the surety bail bond producer or supervising bail bond agency fails to return 
12.25 	the collateral security or other indemnity to the person who provided it, the insurer must 
12.26 	return the actual collateral or other indemnity to the person or, in the event that the insurer 
12.27 	cannot locate the collateral security or other indemnity, must pay the person the value of 
12.28 	the collateral security or other indemnity.
12.29 	(b) An insurer's liability under paragraph (a) survives the termination of the surety bail 
12.30 	bond agent's appointment, with respect to bail bonds executed by the surety bail bond 
12.31 	producer prior to the termination of the appointment.
12.32 		Subd. 5.Forfeiture; conversion. (a) If a forfeiture of the bail bond occurs, the surety 
12.33 	bail bond producer, supervising bail bond agency, or insurer must give the principal on the 
12.34 	bail bond and the person who provided the collateral security or other indemnity 30 days' 
13.1 	written notice of intent to convert the collateral security or other indemnity into cash to 
13.2 	satisfy the forfeiture. The notice must be sent by certified mail, return receipt requested, to 
13.3 	the last-known address of the principal and the person who provided the collateral security 
13.4 	or other indemnity.
13.5 	(b) Whenever a stay of execution upon the forfeiture is ordered, the surety bail bond 
13.6 	producer or insurer must send written notice by certified mail, return receipt requested, to 
13.7 	the last-known address of the principal and the person who provided the collateral security 
13.8 	or other indemnity, at least 30 days prior to the expiration of the stay.
13.9 	(c) The surety bail bond producer or insurer must (1) convert the collateral security or 
13.10 	other indemnity into cash within a reasonable period of time, and (2) return to the principal 
13.11 	or the person who provided the collateral security or other indemnity any amount in excess 
13.12 	of the face value of the bail bond, minus the actual and reasonable expenses to convert the 
13.13 	collateral security or other indemnity into cash. Expenses must not exceed ten percent of 
13.14 	the face value of the bail bond. If a surety bail bond producer expends more than ten percent 
13.15 	of the face value of the bail bond to convert the collateral security or other indemnity into 
13.16 	cash, the producer may file a civil action to recover the full amount of the actual and 
13.17 	reasonable expenses upon motion and proof that the actual and reasonable expenses exceed 
13.18 	ten percent of the face value of the bail bond.
13.19 		Subd. 6.Certain agreements void. An agreement that violates a provision of sections 
13.20 	60M.03 to 60M.12 is void. A surety bail bond agent or insurer is prohibited from entering 
13.21 	into any agreement regarding the value of the collateral security or other indemnity that 
13.22 	does not reflect the actual value of the collateral security or other indemnity.

13.23 	Sec. 9. [60M.09] COLLATERAL SECURITY; TERMINATION.
13.24 	(a) If collateral security or other indemnity was received on a bail bond by a surety bail 
13.25 	bond producer and the bond is terminated, the insurer, supervising bail bond agency, or 
13.26 	surety bail bond producer must return the collateral security or other indemnity, except a 
13.27 	promissory note or an indemnity agreement, not later than 21 days after the date a written 
13.28 	report from the court that the bail bond has been terminated is received. The collateral 
13.29 	security or other indemnity must be returned to the person who provided the collateral 
13.30 	security or other indemnity, unless the right to receive the return of the collateral security 
13.31 	or other indemnity is provided to another person by legal assignment.
13.32 	(b) If, despite diligent inquiry by the insurer or supervising bail bond agency to determine 
13.33 	whether the bail bond has been terminated the court fails to provide any written report on 
13.34 	termination, the collateral security or other indemnity, except a promissory note or an 
14.1 	indemnity agreement, must be returned to the person who provided the collateral security 
14.2 	or other indemnity not later than 21 days of the date the insurer, supervising bail bond 
14.3 	agency, or surety bail bond producer received information that the bail bond has been 
14.4 	terminated, subject to any allowable fees or expenses the depositor must reimburse for 
14.5 	balances owed.

14.6 	Sec. 10. [60M.10] LICENSE REQUIRED.
14.7 	An insurer, supervising bail bond agency, or surety bail bond producer is prohibited 
14.8 	from furnishing to any person any blank form, application, stationery, business card, or 
14.9 	other supplies to be used in the sale, solicitation, negotiation, or execution of bail bonds, 
14.10 	unless the person is licensed to act as a surety bail bond producer and is appointed by an 
14.11 	insurer. Except for a power of attorney form, a bond appearance form, or a collateral security 
14.12 	or other indemnity receipt, this section does not prohibit an unlicensed employee who is 
14.13 	under the direct supervision and control of a licensed and appointed surety bail bond producer 
14.14 	from possessing or working with any other form used while performing administrative 
14.15 	duties in the surety bail bond producer's or insurer's office, provided the unlicensed 
14.16 	employee's compensation is not based on the sale, solicitation, or negotiation of a bail bond 
14.17 	transaction.

14.18 	Sec. 11. [60M.11] SURETY BAIL BOND PRODUCER, SUPERVISING BAIL BOND 
14.19 	AGENCY, OR INSURER; PROHIBITIONS.
14.20 	In addition to the prohibitions under section 60K.46, a surety bail bond producer or 
14.21 	insurer is prohibited from:
14.22 	(1) suggesting or advising, directly or indirectly in exchange for a fee or other thing of 
14.23 	value, the employment of or name for employment of a particular attorney to represent the 
14.24 	principal on a bail bond;
14.25 	(2) unless a request is initiated by an arrested person or potential indemnitor, directly 
14.26 	or indirectly soliciting business in or on the property or grounds of (i) a correctional 
14.27 	institution, (ii) community correctional center or other detention facility where arrested 
14.28 	persons are confined, or (iii) within any police station or courthouse. The prohibition under 
14.29 	this clause includes unsolicited telephone communications made to a correctional institution, 
14.30 	community correctional center or other detention facility, police station, or courthouse. For 
14.31 	purposes of this clause, "solicit" includes the display or distribution of business cards, print 
14.32 	or other advertising of any kind, or any other written information directed to arrested persons 
14.33 	or potential indemnitors. A correctional institution, community correctional center or other 
15.1 	detention facility where arrested persons are confined, police station, or courthouse may 
15.2 	permit print advertising by an insurer, supervising bail bond agency, or surety bail bond 
15.3 	producer in or on the property or grounds of the institution, center or facility, police station, 
15.4 	or courthouse, provided the advertising is limited to (i) a listing in a telephone or other 
15.5 	directory, or (ii) posting the surety bail bond producer's name, address, and telephone number 
15.6 	in a prominent designated location in or on the property or grounds;
15.7 	(3) wearing or otherwise displaying any surety bail bond producer identification, other 
15.8 	than a surety bail bond agent license or surety bail bond producer identification issued or 
15.9 	approved by the Department of Commerce, in or on the property or grounds of a correctional 
15.10 	institution, community correctional center or other detention facility where arrested persons 
15.11 	are confined, or in or on the property or grounds of any courthouse;
15.12 	(4) paying a fee or rebate, or directly or indirectly giving or promising anything of value 
15.13 	to a law enforcement officer, judicial marshal, employee of the Department of Corrections 
15.14 	or other person who has power to arrest or to hold a person in custody, or to any other public 
15.15 	official or public employee, to secure estreatment of bail, or a compromise, remission, or 
15.16 	reduction in the amount of a bail bond;
15.17 	(5) paying a fee or rebate, or directly or indirectly giving or promising anything of value 
15.18 	to an individual person in jail, to solicit on behalf of the surety bail bond producer or 
15.19 	supervising bail bond agency or to secure estreatment of bail, or a compromise, remission, 
15.20 	or reduction in the amount of a bail bond;
15.21 	(6) paying a fee or rebate, or directly or indirectly giving or promising anything of value 
15.22 	to an attorney in any matter pertaining to a bail bond, except in defense of any action on a 
15.23 	bail bond;
15.24 	(7) paying a fee or rebate, or giving or promising directly or indirectly anything of value 
15.25 	to the principal or to any person on the principal's behalf;
15.26 	(8) participating in the capacity of an attorney at a proceeding of a principal;
15.27 	(9) accepting anything of value from a principal for providing a bail bond, other than 
15.28 	the premium approved by the commissioner under chapter 70A and an expense fee, except 
15.29 	that a surety bail bond agent may accept collateral security or other indemnity from a 
15.30 	principal or other person under section 60M.09. A surety bail bond producer may, upon 
15.31 	written agreement with a third party, receive a fee or other compensation for returning to 
15.32 	custody an individual who has fled the jurisdiction of the court or whose bail bond has been 
15.33 	forfeited;
16.1 	(10) executing a bail bond in Minnesota on the agent's or insurer's own behalf;
16.2 	(11) writing a bail bond in Minnesota for an arrested person if the arrested person or a 
16.3 	person with actual or apparent authority to act on behalf of the arrested person has not 
16.4 	authorized the surety bail bond producer, in writing, to execute a bail bond on the arrested 
16.5 	person's behalf. The surety bail bond producer must maintain any such written authorization; 
16.6 	or
16.7 	(12) failing to provide timely notice of the information required under section 60M.02, 
16.8 	subdivision 9.

16.9 	Sec. 12. [60M.12] REPORTING.
16.10 		Subdivision 1.Record retention. (a) Each insurer, supervising bail bond agency, and 
16.11 	each surety bail bond producer that executes bail bonds in Minnesota must maintain the 
16.12 	following records by calendar year, based on the insurer's, supervising bail bond agency's, 
16.13 	or surety bail bond producer's Minnesota bail bond business, and upon request provide them 
16.14 	to the Department of Commerce within the required time frame. A surety bail bond producer, 
16.15 	or the supervising bail bond agency on the surety bail bond producer's behalf, must maintain 
16.16 	the information separately for each insurer represented:
16.17 	(1) commissions paid;
16.18 	(2) the number of, and the total dollar amount of, bail bonds executed;
16.19 	(3) the number of, and the total dollar amount of, bail bonds ordered forfeited;
16.20 	(4) the number of, and the total dollar amount of, forfeitures discharged, remitted, or 
16.21 	otherwise recovered prior to payment for any reason;
16.22 	(5) the number of, and the total dollar amount of, forfeitures discharged, remitted, or 
16.23 	otherwise recovered prior to payment due to the apprehension of the principal on the bail 
16.24 	bond by the surety bail bond producer;
16.25 	(6) the number of, and the total dollar amount of, forfeited bail bonds that have not been 
16.26 	reinstated;
16.27 	(7) the number of, and the total dollar amount of, forfeitures paid and subsequently 
16.28 	recovered by the attorney general by discharge, remission, or otherwise;
16.29 	(8) a list of every outstanding or unpaid forfeiture, estreature, and judgment, with the 
16.30 	case number and the name of the court in which the forfeiture, estreature, or judgment is 
16.31 	recorded and the name of each agency or firm that employs the surety bail bond agent;
17.1 	(9) the number of, and the total dollar amount of, bail bonds for which collateral security 
17.2 	or other indemnity was received;
17.3 	(10) the actual value of collateral security or other indemnity converted, excluding the 
17.4 	cost to convert the collateral security or other indemnity;
17.5 	(11) the cost of converting collateral security or other indemnity;
17.6 	(12) the underwriting gain or loss;
17.7 	(13) the net investment gain or loss allocated to the flow of funds associated with 
17.8 	Minnesota business; and
17.9 	(14) any additional information the Department of Commerce may require to: (i) evaluate 
17.10 	the reasonableness of rates or ensure that rates are not excessive, inadequate, or unfairly 
17.11 	discriminatory; (ii) evaluate the financial condition or trade practices of surety bail bond 
17.12 	producers and insurers executing bail bonds; and (iii) evaluate the performance of the surety 
17.13 	bail bond producers, supervising bail bond agencies, and insurers executing bail bonds in 
17.14 	a manner consistent with appropriate criminal justice system goals and standards.
17.15 	(b) Paragraph (a), clauses (1), (12), and (13) apply only to insurers.
17.16 		Subd. 2.Information submission; insurers. Each surety bail bond producer or 
17.17 	supervising bail bond agency keeping the information on the surety bail bond producer's 
17.18 	behalf must submit a copy of the information maintained and submitted under subdivision 
17.19 	1 to each insurer the producer represents.

17.20 	Sec. 13. [60M.13] LICENSE ENFORCEMENT.
17.21 		Subdivision 1.Action against licensee. The commissioner may take action against the 
17.22 	license of any insurer, surety bail bond producer, or supervising bail bond agency as provided 
17.23 	for under chapters 45 and 60K or rules promulgated under chapter 45 and 60K for any 
17.24 	violation of this chapter, chapter 45 or 60K, or rules promulgated under chapter 45 and 60K.
17.25 		Subd. 2.Designation. Upon the surrender, suspension, or revocation of a surety bail 
17.26 	bond producer's license, the appointing insurer or supervising bail bond agency must 
17.27 	immediately designate a licensed and appointed surety bail bond producer to administer all 
17.28 	bail bonds previously executed by the licensee.

17.29 	Sec. 14. [60M.14] FEES.
17.30 	In conjunction with the examination of any insurer, the commissioner is authorized to 
17.31 	charge the fees provided under sections 60A.031 and 60A.033.

18.1 	Sec. 15. [60M.15] CHANGE NOTICE.
18.2 	Each supervising bail bond agency or surety bail bond producer licensed under this 
18.3 	chapter must inform the commissioner, in writing, of any change in the entity's or individual's 
18.4 	name, residence address, or telephone number not later than 30 days after the date the change 
18.5 	occurred.

18.6 	Sec. 16. [60M.16] VIOLATIONS.
18.7 	In addition to the provisions of section 60M.13, a person whose license has been revoked 
18.8 	is also barred from engaging in business as a bail bond enforcement agent in Minnesota or 
18.9 	engaging in managing a supervising bail bond agency.

18.10 	Sec. 17. [60M.17] BAIL BOND ENFORCEMENT AGENT.
18.11 		Subdivision 1.Definition. For purposes of this section, "bail bond enforcement agent" 
18.12 	means a person who is hired, directed, or paid to arrest a defendant who fails to comply 
18.13 	with the terms of the defendant's bail.
18.14 		Subd. 2.Certain activities prohibited. (a) A person is prohibited from acting as a bail 
18.15 	bond enforcement agent without first obtaining a license under this section. A person engaged 
18.16 	in law enforcement or vested with police powers is prohibited from being licensed as a bail 
18.17 	bond enforcement agent.
18.18 	(b) A person who violates this subdivision is guilty of a gross misdemeanor.
18.19 		Subd. 3.License. A person desiring to act as a surety bail bond enforcement agent in 
18.20 	Minnesota must submit a written application for a license to the commissioner on the form 
18.21 	prescribed by the commissioner. Each application must be signed by the applicant and must 
18.22 	be accompanied by a nonrefundable filing fee in an amount determined by the commissioner. 
18.23 	The applicant must also comply with the criminal history and background check requirements 
18.24 	under chapter 60K.
18.25 		Subd. 4.Disqualification. A person must not be issued or continue to hold a bail 
18.26 	enforcement license if the individual has:
18.27 	(1) made any false statement in an application for a bail bond enforcement agent license 
18.28 	or in any document the Department of Commerce requires to be submitted;
18.29 	(2) been charged with, pleaded guilty or nolo contendere to, or been found guilty of a 
18.30 	disqualifying offense in federal courts, the courts of Minnesota, or in any other state where 
19.1 	the essential elements are substantially the same as a disqualifying offense, whether judgment 
19.2 	was entered or withheld by a court; or
19.3 	(3) had a surety bail bond producer's license revoked.

19.4 	Sec. 18. Minnesota Statutes 2020, section 629.63, is amended to read:
19.5 	629.63 SURETY ARREST OF DEFENDANT.
19.6 	(a) If a surety believes that a defendant for whom the surety is acting as bonding agent 
19.7 	(1) is about to flee, (2) will not appear as required by the defendant's recognizance, or (3) 
19.8 	will otherwise not perform the conditions of the recognizance, the surety may arrest or have 
19.9 	another person or the sheriff arrest the defendant.
19.10 	(b) If the surety or another person at the surety's direction arrests the defendant, the 
19.11 	surety or the other person shall take the defendant before the judge before whom the 
19.12 	defendant was required to appear and surrender the defendant to that judge.
19.13 	(c) If the surety wants the sheriff to arrest the defendant, the surety shall deliver a certified 
19.14 	copy of the recognizance under which the defendant is held to the sheriff, with a direction 
19.15 	endorsed on the recognizance requiring the sheriff to arrest the defendant and bring the 
19.16 	defendant before the appropriate judge.
19.17 	(d) Upon receiving a certified copy of the recognizance and payment of the sheriff's 
19.18 	fees, the sheriff shall arrest the defendant and bring the defendant before the judge.
19.19 	(e) Before a surety who has arrested a defendant who has violated the conditions of 
19.20 	release may personally surrender the defendant to the appropriate judge, the surety shall 
19.21 	notify the sheriff. If the defendant at the hearing before the judge is unable to post increased 
19.22 	bail or meet alternative conditions of release in accordance with rule 6.03 of the Rules of 
19.23 	Criminal Procedure, the sheriff or a deputy shall take the defendant into custody.
19.24 	(f) A person working at the direction of a surety or supervising bail bond agency to arrest 
19.25 	a defendant must possess a valid bail bond enforcement agent license issued under this 
19.26 	chapter.