Representative Nellie Nicholl told the committee she brought House Bill 726 to ensure Montana’s bail industry remains locally accountable. The bill would require surety bail agents to be Montana residents and maintain a principal place of business in the state, sponsors told the committee, arguing that out‑of‑state franchise brokers and call‑center models have led to higher failure‑to‑appear rates and reduced local oversight.

John Looney, president of the Montana Bail Agents Association and a local bail agent, urged passage and said out‑of‑state corporate agents often place a single licensed agent in Montana to write bonds statewide without local presence or capacity for post‑release oversight. “When out‑of‑state corporations… place a single agent in Montana and write statewide bonds … they absolutely cannot and do not have the resources to manage those defendants,” Looney told the committee.

Proponents emphasized the public‑safety and fiscal consequences: they cited higher failure‑to‑appear rates among bonds written through out‑of‑state agencies, higher costs for extradition and enforcement, and consumer complaints about predatory practices. Several Montana bail agents and association representatives testified in favor of residency and other reforms.

Frank Cote, Deputy Insurance Commissioner, testified in measured opposition to the residency language as written, citing federal‑commerce‑clause concerns and the state’s participation in the National Association of Insurance Commissioners (NAIC) compact that provides reciprocity mechanisms for licensing across states. Cote asked the committee to remove the residency clause or revise it to avoid violating interstate reciprocity agreements.

Sponsor Nicholl and proponents said they would continue to negotiate language but argued residency is necessary to preserve Montana businesses and public safety. No committee vote was recorded that day.