HomeMy WebLinkAboutOrdinances Book 15, Page 624, No Ordinance Number624 /
AN ORDINANCE RELATING TO THE BUSINESS OF PROFESSIONAL BONDSMEN; AND PROVIDING
FOR THE LICENSING AND REGULATION THEREOF
BE IT ORDAINED BY THE BOARD Or COMMISSIONERS OF THE CITY OF PADUCAH,
KERVICK Y:
SECTION 1. Bondsman to Conform to Regulations. It shall be unlawful
for any person or firm to conduct or engage in the business of a professional
bondsman in the City of Paducah except in the manner and under the conditions
provided in this ordinance.
SECTION 2. Definitions. The following terms as used herein shall be
construed as follows:
"PROFESSIONAL BONDSMEN". The term "professional bondsmen", shall mean
and include any person or firm or number thereof, who for cmm-nensation conducts
or engages in the City of Paducah in the business of becoming surety upon,
or providing or furnishing, or offering to provide or furnish, any bond in any
court in the City of Paducah. Provided that any representative or attorney in
fact of any surety company authorized to do business in the Commonwealth of
Kentucky, who shall provide or furnish or offer to provide or furnish said
bonds of such or any surety company for a compensation in excess of or other
than charged by said surety company, shall be deemed to be a professional
bondsman within the meaning of this ordinance.
"PERSON". The term "person" means an individual person.
"FIRI411. The term "firm" means two or more persons acting as a part-
nership or as an association or unincorporated group of persons acting
jointly under any title whatsoever.
"AGENT, SOLICITOR OR RUNNER". The terms "agent", "solicitor" or 11runnerP
as used herein, means any person other 'than a licensed professional bondsman,
who solicits or seeks business for a professional bondsman.
PCONPENSATION". The term "compensation"means any emolument, fee,
commission, salary, gift, loan, entertainment, or other thing of value whatso-
ever, paid, donated, given, offered or promised in connection with providing or
furnishing, or offering to provide or furnish, any bond im any court in the
City of Paducah.
"CONDUCTING OR ENGAGING IN THE BUSINESS OF A PROFESSIONAL BONDSMAN".
One act, for compensation of becoming surety upon, or providing or furnishing
or offering to provide or furnish any bond in any court in the City of Paducah,
shall constitute doing, conducting or engaging in the business of a professional
bondsman; provided that nothing herein shall apply to any surety company duly
authorized to do business in the Commonwealth of Kentucky, or to the repre-
sentatives of such surety company except as otherwise provided in the first
paragraph of this section.
SECTION 3. License required. It shall be unlawful for any person or
firm to conduct or engage in the business of a professional bondsman in the
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City of Paducah unless he holds the necessary annual license required by
this ordinance and at all times comply with the provisions of this ordinance. No
such license, or .renewal thereof, shall be issued to any applicant except upon
presentation by the applicant to the Treasurer of the City of Paducah of a certifi-
cate of qualification signed by the Chief of Police of the City of Paducah certi-
fying that the applicant has met and does possess the requirements and qualifi-
cations of Section 4 of this ordinance, and until a permit therefor has been
granted by the said City Treasurer.
SECTION 4.Qualifications of Bondsmen (A ) A person acting individually
shall not be granted a license to conduct or engage in the business of a pro-
fessional bondsman unless:
(1) He is a citizen and resident of the City of Paducah, or of McCracken
County, Kentucky.
(2) He is twenty-one years of age or over, with legal capacity to answer
for the default or misdoing of another.
(3) He is of good moral character and reputation.
(4) He is the owner in his own name of fee simple title to one or
more parcels of real estate located in Kentucky, of a value as assessed for taxation
by the City Assessor or the County Tax Commissioner where said real estate is
located in excess of homestead rights and incumbrances.
(5) He files with his application of qualifications:
(a) A written statement from the officer in charge of the records
room of the Police Department of the City of Paducah containing the bondsman's
official police record.
(b) A certification from the Clerk of the McCracken Circuit Court
setting forth the bondsman's official record in the McCracken Circuit Court,
and also stating whether or not there are any outstanding bond forfeitures
against the said bondsman.
(6) He deposits in the office of the City Treasurer an amount in cash
of not less than $2500.00 deposited as collateral to indemnify the City of
Paducah against loss by reason of any bond forfeiture, judgment or judgments
thereafter entered against him.
(B) A firm shall not be granted a license to conduct or engage in the
business of a professional bondsman unless:
(1) Each member of the firm possess the qualifications required of a
"person" under sub -paragraphs (1), (2), (3), (40, (5), and (6) of paragraph
(A) of this section.
(2)v The members of the firm own in their joint names fee simple title
to one or more parcels of real estate located in Kentucky, or a value as ass-
essed for taxation by the City Assessor or the County Tax Commissioner, where said
real estate is located, in excess of homestead rights and incumbrances.
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SECTION 5. License; Application For; How and `Then Issued.
A license from the City Treasurer of the (,ity of Paducah to engage in the
business of a professional bondsman shall be granted and issued if and when
the applicant complies with the conditions and requirements of this ordinance.
Provided further, that such rules and regulations shall include the followings
(A) The application for a license, or a renewal thereof, shall be in
writing, signed and sworn to by the applicant, and filed with the City
Treasurer. If the applicant is a firm, the application shall be signed
and sworn to by all the members thereof.
(B) Said application shall embody, or there shall be attached thereto:
(1) A written statement by the applicant, signed and verified under
oath, setting forth:
(a) The name, age and business and home address of the applicant, if
a person. If the applicant is a film, the name, date of organization, and
business address of the firm and the names, ages, and business and home
addresses of themembers therof shall be stated.
(b) The name, age and residence of each person employed by said
bondsman, as clerk or otherwise in the bonding business. It shall be the duty
of each of said persons to file an undertaking with the City Treasurer stat-
ing that said person will abide by the terms and provisions of this ordinance.
(c) A list of the real estate owned by the applicant showing, as to
each piece or parcel; the location; the source and record of title; the latest
assessed value by the City Assessor, or County Tax Commissioner, as the case
may be, for tax purposes; and any and all indebtedness or obligation consti-
tuting an incumbrance thereof, including homestead rights. If the appli-
cant is a firm, the foregoing information shall be given as to the real
estate owned by the firm or members thereof as the case may be.
(d) A list of any and all bonds of whatever character executed by the
applicant and outstanding at the time the permit is applied for, showing the
character and amount of each bond, the name of the person or persons for whom
executed, and the case or matter and court or office in which posted. If
the applicant executes any additional bond or bonds after the application is
filed and before the permit is granted, the applicant shall immediately file
a supplemental statement with the City Treasurer, or as he directs, to be
attached to the original application, giving the date with respect thereto
required in the original list.
(e) That the applicant has never been convicted of a felony or any
offence other than minor traffic violations.
(f) An undertaking and obligation on the part of the applicant to
perform well and faithfully the duties of a professional bondsman according
to law and the provisions of this ordinance.
(2) A certificate as to the good moral character and reputation of th—e
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person or persons signing the application, executed under oath by not less than
three reputable citizens of the City of Paducah or of McCracken County.
SECTION 6. Issuance of License. All license and renewals thereof, to
conduct or engage in the business of a professional bondsman, shall be issued by
the City Treasurer. The said City Treasurer is hereb; authorized to adopt and
promulgate such rules and regulations as may be necessary in connection with the
form and issuance of said license not inconsistent with law or the provisions of
this ordinance.
No such license shall be issued or renewed by the City Treasurer until
the applicant has filed his application in proper form as provided by this ordinance;
has paid the license fee at the rates prescribed herein; and has deposited at
least $2500.00 in cash as hereinbefore provided.
SECTION 7. Types and Forms of Licenses. (a) Types: Licenses issued
under and pursuant to this ordinance shall be of the following two types:
(1) A license to a "person" as an individual.
(2) A license to a "firm" which shall be in the name of the firm.
(b) Form: Each license shall show, among other items, the following:
(1) The type of the license.
(2) The name and business address of the licensee.
If the licensee is a "firm"tthe names of themembers thereof shall also be shown.
(3) The dates of issue and expiration thereof.
SECTION 8. Term and Expiration of.Licenses A license, or renewal
thereof, issued under and pursuant to the provisions of this ordinance shall
expire on December 31 of the year in and for which it is issued. License which
are renewed shall be for a term of one year, beginning on January 1, and expiring
on December 31 of the same year. Application for renewal of a license shall be
filed with the City Treasurer not less than 30 days prior to the expiration date
of said license.
SECTION 9. Licenses.- Fees and Charges. The following annual license
fees and other charges for the licenses and renewals thereof, herein authorized,
shall be paid to the City Treasurer at the time the licenses are issued:
(a) Annual license fees to conduct or engage in the business of a
professional bondsman shall be:
(1) For a person, as an individual '000.00.
(2) For a firm, a fee computed at the rate per member of 5100.00,
provided, however, that no firm is to be licensed for a license fee less than
$400.00.
SECTION 10. List of Bondsmen to be Posted. It shall be the duty of
the City Treasurer to cause to be typewritten or printed, on or before March 15
of each year, a list, alphabetically arranged, of all persons licensed under the
authority of this ordinance to conduct or engage in the business of a professional
Bondsman in the City of Paducah, and furnish copies thereof to the Judge and Clerk
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of the Police Court of the City of Paducph. He shall also furnish five copies
thereof to -the officer in charge of the city jail, one of which copies shall
be conspicuously posted in said jail. Additional copies of said list shall
be kept on hand for the purpose of being shown upon request to persons
detained in the custody of the law. 11hen a person in custody in said jail
shall request any officer in charge thereof to furnish him the name of a
bondsman, said list shall be shown to the person so requesting, and it shall
be the duty of said officer or his assistant within a reasonable time to put
the person so detained or his authorized representative in communication by
telephone or otherwise with the bondsman selected and chosen by said person
in custodyi Said officer or assistant shall contemporaneously with said trans-
action make a record in the blotter or book of record kept in such place for
said purpose, showing the name of the person detained, and the.name of his
authorized representative, if any, requesting the bondsman, the offense with which
the said person is charged, the time at which the request and commainication was
made, the name of the bondsman requested, and the name of the person by whom
the said bondsman was called, which record shall be preserved as a public and
permanent record in the book or blotter in which entered. It shall be unlawful
for said officer or assistant, or any employee thereof, to make any suggestion
to, or influence in any way the person in custody with reference to the choice
of a bondsman.
SECTION 11. Changes.in Lists. It shall be the duty of.the City Treasu-
rer to notify promptly each official or officer in the City of Paducah to whom
he furnishes lists of professional bondsmen, of any change or correction
therein by reason of the issuance of additional licenses or the suspension or
revocation of existing licenses; and it shall be the duty of such officials
and officers to make proper corrections and notations of such changes on the
copies of said lists in their possession or posted in their offices.
SECTION 12. Duties and Obligations of Bondsmen A professional
bondsman:
(A) Shall not charge or receive, either directly or indirectly,
as compensation for acting as bail or surety on any bond or recognizance, or
or making or causing to be made, a deposit of cash or securities as bail,
in any criminal case within the.jurisdiction of any court in Paducah, Ken-
tucky, a sum in excess of 10% of the first X100.00 and 5% for each additional
$100.00 of the penalty of such bond or recognizance. Provided, however,
a minimum fee of $5.00 may be charged for eadh bond.
(B) May require and accept in his discretion in each.individual
case collateral to be posted with him to guarantee the appearance of the
defendant. A receipt for the collateral shall be given to the person posting
the collateral. A duplicate copy of the receipt shall be furnished to the
Clerk of the Police Court of the City of Paducah in cases involving the
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the appearance of persons in that Court, at the titre of the execution of the
bond- A triplicate copy of the receipt shall be furnished to the City Treasurer
at the same time and in the same manner as provided for the filing of the itemized
receipt required in paragraph (E) of this section. The original receipt pro-
perly signed by the depod.itor of the collateral acknowledging that the collateral
was returned to the depositor must be furnished to the said Clerk before such
bond shall be released.
(C) Shall not enter a police station, jail, or other place where
persons in the custody of the law are detained in the City of Paducah, for the
purpose of obtaining employment as a bondsman, without having been previously
called by a person so detained or by a relative or other person or officer author-
izedby and acting for and on behalf of the person so detained. Whenever any
person engaged in the bonding business shall enter a police station, jail, or
other place, where persons in the custody of the law are detained in the City
of Paducah, he shall forthwith state to the officer in charge thereof his mission
there and the name of the person or officdr requesting him to come to such
place. Such information shall be recorded by the officer or employee in charge
of said place of detention and preserved in a public record maintained for that
purpose, and the failure of the officer in charge of said place of detention to
make and preserve such record shall constitute a violation of this ordinance.
(D ) Shall not personally or otherwise solicit business in, at or
near any courtroom or corridor leading thereto.
(E) Shall furnish each person, for whom a bond is executed, with an
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itemized receipt showing the character of the service or services rendered and
I the true itemized amount of money or other thing of value paid or given for or
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in connection with each item of services rendered and the nature and amount of
the bend. Such receipt shall be prepared in an original and at least four copies.
The original shall be delivered to the client. A copy shall be delivered to the
City Treasurer at his office in the City Hall before 12 o'clock noon of each
day for any bond written during the twenty-four (24) hours preceding such filing.
I Provided, however, that in a case where a receipt is issued and the office of
the City Treasurer is not open for business, this copy shall be delivered to the
office of the City Treasurer before noon of the first day after the issuance of
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the receipt when the City Treasurer's office is open for business. In cases
arising out of the Paducah Police Court, one copy shall be filed promptly with
the Clerk of said Court. One copy shall be filed with the bondsman's monthly
report as set out in paragraph (J) of this section. One copy shall be retained
on file in the bondsman's office for inspection.
(F) Shall not receive, directly or indirectly, nor shall an attorney
or other third person give, directly or indirectly, to a professional bondsman,
any compensation, other than the fee and charge, if any, for executing a bond.
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(G) Shall not directly or indirectly pay or give, or promise to pay
or give to any person, nor shall any person or persons directly or indirectly
receive or take from any professional bondsman, any money or thing of value
as compensation for securing or referring or sending bond business or clients
in any way to or for any professional bondsman. A professional bondsman
shall not employ or pay any person to act or serve as "Agent", "Solicitor",
or "Runner" in conducting such business nor shall any person act or receive
any compensation as "Agent", "Solicitor", or "Runner" for a professional
bondsman.
(H) Shall not engage in the sale of liquor, either as a distributor,
wholesaler or retailer, or in any business which handles for sale any kind
of beer, wine, or liquor.
(I) Shall not directly or indirectly influence, or promise or
attempt in any way to influence, any court, public official or witness in
any case.
(J) Shall quarterly on or before the 10th day of January, April,
July and October, file upon a form to be prescribed by the City Treasurer,
with the Chief of Police, a sworn statement setting forth all bonds of what-
ever character executed, satisfied or discharged during the preceding three
calendar months. This statement may take the form of a general declaration
which incorporates by reference copies of receipts for all bonds executed
during the praceding three calendar months, provided a copy of each such
receipt as described in paragraph (E) hereinabove is attached to the sworn
statement. This statement shall moreover include a declaration that the
bonds, receipts for which are attached thereto, are all of the bonds written
by the affiant during the preceding three calendar months in any court within
the City of Paducah and that he has done no other business as a professional
bondsman than that which is reported in detail in that statement. This
report shall also include a statement of what bonds, on which the affiant
had theretofore been surety, have been satisfied or discharged during the
preceding three calendar months. This report shall also include a statement
by each reporting bondsman that he has read the provisions of the ordinance
of the City of Paducah relating to the business of professional bondsmen;
that he understands those provisions and that he has not violated any of
them.
The original of the quarterly report required herein shall be kept
on file in the office of the Chief of Police and a copy thereof shall be
furnished by the affiant to the City Treasurer.
In both the Chief's office and the City Treasurer's office, these
statements shall be open to public inspection.
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(K) Shall keep and maintain books and records showing in detail the
transactions and conduct of said business, which books and records shall be
open to inspection by the Chief of Police of the City of Paducah and the City
Treasurer, or their authorized representatives.
(L) Shall post in a conspicuous place in his or its place of business,
his or its license to conduct said business, and his or its schedule of fees
and charges.
SECTION 13. Execution of Bonds. Bonds executed for compensation, if
executed by a "person" shall be executed by and in the name of said "person".
I£ the bond is executed by a "firm", it shall be executed by a member of the
firm in the name of the firm.
SECTION 1h. Amount For Which Bondsmen May Sign Bonds A bondsman
to whom a license has been issued under the provisions of this ordinance shall
be permitted to sign bonds in a total amount not to exceed triple the aggregate
sum of his cash deposit with the City Treasurer plus the assessed valuation of
his listed real estate, provided, however, that no bond or bonds for any one
person shall be signed for an amount exceeding twenty percent (20%) of the
amount of his said sum of cash deposit plus real estate.
SECTION 1$. Suspension or Revocation of Licenses The license of
a professional bondsman may be suspended or revoked by the Board of Commissioners
for any violation of the provisions of this ordinance or for raking false
statements in the application for license provided for herein, such revoca-
tion or suspension to be done in the following manner:
(a) Upon receipt of a statement in writing signed by the Chief of
Police, or any other person, stating that a professional bondsman has violated
any of the provisions of this ordinance, or has made false statements in his
application, the Board of Commissioners may cite such bondsman to appear
before it on a day certain to show why his license should not be suspended
or revoked. Said citation shall state the reason and grounds for its issuance
and the date, hour and place of the hearing, and shall be served in the manner
prescribed by law.
(b) The bondsman so cited shall appear personally at the time and
place of the hearing named in the citation. He shall have the right at such
hearing to be represented by counsel, to introduce witnesses on his behalf,
and at his own expense to have transcribed the testimony given at such hearing.
(c) The Clerk of the City of Paducah is authorized to summon wit-
nesses to appear at such hearing, and to administer oaths.
(d) If after such hearing the Board of Commissioners determines that
there is good and sufficient reason for the suspension or revocation of the
bondsman's license, it may enter an order effective immediately to such effect
and the City Clerk shall notify the bondsman by registered mail with a return
receipt requested. The said Clerk shall give notice of the suspension or
revocation of said license, as the case may be, to the officials and officers
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named in Section 10 of this ordinance, and they shall be governed accordingly
until further notice.
SECTION 16. List of Bonds in Other Courts and Offices to be Obtained.
It shall be the dutr of the City Treasurer once each month to obtain and
file in his office a list of the new bonds executed in the City of Paducah
during said period in the offices of the following officials:
Commissioner of the United States District Court;
Clerk of the United States District Court;
Clerk of the McCracken Circuit Court;
Clerk of the McCracken Quarterly Court;
Sheriff of McCracken County;
Said information and lists shell be used by said Uity Treasurer to check the
reports of bondsman required by this ordinance to be filed with said City
Treasurer and to determine whether any professional bondsman has executed or
is executing bonds in excess of his authority. Said check shall be made at
least once each month, and if the City Treasurer finds that any professional
bondsman has exceeded or is exceeding his authority, he shall at once report
that fact to the Board of Commissioners of the Gity of Paducah who may take
appropriate action with respect thereto..
SECTION 17. Penalties. Any person, firm or officer violating any
provision of this ordinance, other than in the commission of perjury, shall,
upon conviction, be punished by a fine of no less than 450.00 nor more than
,S'100.00, or by imprisonment of not less than ten (10) days nor more than
fifty (50) days in jail, or both such fine and imprisonment, for each offense.
The violation of each provision of this ordinance shall be deemed a separate
offense and shall be punishable accordingly. It shall be the duty of the
Judge of the Police Court of the City of Paducah to notify the City Treasurer
of the conviction of a bondsman of a violation of any of this ordinance.
Said City Treasurer shall enter such information in the records of his office
kept in connection with the granting of licenses as provided under this
ordinance. A second conviction of a bondsman of a violation of any provision
of this ordinance shall, of itself, be cause for the revocation of the license
of the said bondsman. Such license shall be revoked in the manner provided in
Section 15 of this ordinance.
SECTION 18. All ordinances and parts of ordinances in conflict
herewith are, to the extent of such conflict, hereby repealed.
SECTION 19. That if any section, paragraph or provision of this
ordinance shall be found to be inoperative, ineffective or invalid for any
cause, the deficiency or invalidity of such section, paragraph or provision
shall not affect any other section, paragraph or provision hereof, it being
the purpose and intent of this ordinance to make each and every section,
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paragraph and provision hereof separable from all other section, paragraphs
and provisions.
SECTION 20. Effective Date. This ordinance shall be in full force and
effect from and after its adoption provided, however, any person or firm holding
a valid professional bondsmen license at the time this ordinance is adopted shall
have a period Of sixty (60) days from such time in which to comply with all of
the herein provisions and requirements.
Mayor
Passed by the Board of Commissioners_ July 13 1965
Recorded by Sarah Thurman, City Clerk__ July 13 1965