Bulletin 1999-4 Recent Statutory Changes to Chapter 53 Affecting Bail Bondsmen and Runners

Recent Statutory Changes to Chapter 53 Affecting Bail Bondsmen and

Runners

(Issued upon August 13, 1999)

To: All Licensed Bail Bondsmen and Licensed Runners in the State of South Carolina

From: Mr. Ernst N. Csiszar, Director

Subject: Recent Statutory Changes to Chapter 53 Affecting Bail Bondsmen and Runners

I. Purpose

The purpose of this Bulletin is to inform members of the bail agents industry of a recent statutory change in the

law affecting the execution of bonds by runners in South Carolina and the penalties for referring a defendant to a

specific attorney or law firm. This Bulletin should also clarify any confusion which may currently exist about the

authority of runners and other associates of bail bondsmen to execute bonds.

II. Changes Effected by South Carolina Act 127 of 1999

In 1998, a statutory change to Chapter 53 of the South Carolina Code of Laws eliminated the authority of runners

and other associates employed by a bail bondsman to execute bonds on behalf of the licensed bondsman. South

Carolina Act 127 of 1999 (Act 127) restored the authority of runners to execute bonds where a power of attorney

has been recorded.

On June 30, 1999, the Governor signed into law Act 127. Act 127 amends certain provisions of Chapter 53 of the

South Carolina Code of Laws. These amendments clarify the authority of runners to execute bonds on behalf of

the bail bondsman who employs them when a power of attorney has been recorded with the South Carolina

Department of Insurance and the clerk of the circuit court of the county in the state where the bondsman giving

the power of attorney is currently writing or is obligated on the bonds.

Act 127 changes the definition of runner in Section 38-53-10. It adds the following language to the definition of a

"runner:" "...and executing bonds on behalf of the licensed bondsman when the power of attorney has been

recorded..." to make it clear that runners may execute bonds on behalf of their employer

ndsman giving

the power of attorney is currently writing or is obligated on the bonds.

Act 127 changes the definition of runner in Section 38-53-10. It adds the following language to the definition of a

"runner:" "...and executing bonds on behalf of the licensed bondsman when the power of attorney has been

recorded..." to make it clear that runners may execute bonds on behalf of their employer. Additionally, Section 38-

53-200 has been amended to indicate that "a professional bondsman or surety bondsman may not sign or

countersign blank bail bonds, nor may he give a power of attorney to, or otherwise authorize, anyone to

countersign his name to bonds unless the authorized person is a licensed bondsman or runner directly employed

by the bondsman giving power of attorney." The amendments to these two sections clearly indicate that runners

have the authority to execute bonds.

Additionally, Act 127 adds Section 38-53-102 to Chapter 53. This section gives the South Carolina Department of

Insurance the authority to suspend the license of a bail bondsman or any of his associates, affiliates, or runners

who refer defendants to attorneys. Under the law, a bondsman may indicate to a defendant that he should contact

an attorney for professional assistance, but neither the bondsman nor his associates, affiliates or runners may

mention, or in any other manner, suggest or indicate a particular attorney or law firm by name. The penalty for

violation of this provision is suspension for a period of five years.

III. Implementation of Act 127

The amendments to Chapter 53 were effective on June 30, 1999. In order for a runner to execute a bond on

behalf of the bondsman that employs him, there must be a power of attorney filed with the Department and the

clerk of the circuit court in the county where the bondsman wrote or was obligated on the bond

this provision is suspension for a period of five years.

III. Implementation of Act 127

The amendments to Chapter 53 were effective on June 30, 1999. In order for a runner to execute a bond on

behalf of the bondsman that employs him, there must be a power of attorney filed with the Department and the

clerk of the circuit court in the county where the bondsman wrote or was obligated on the bond.

Attached are South Carolina Department of Insurance Form Numbers: BB1103 (Termination of Runner

form), BB1104 (Power of Attorney form) and BB1105(Revocation of Power Attorney form). These forms satisfy

the requirements of Act 127 and this Department.

Any questions about the recent changes to Chapter 53 may be addressed to Willie Seawright, Licensing

Coordinator, South Carolina Department of Insurance at (803) 737-6134.