By: Kamel H.B. No. 399
73R706 JMM-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to requirements concerning property listed as security in
1-3 an application for a bail bondsman license.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 6, Chapter 550, Acts of the 63rd
1-6 Legislature, Regular Session, 1973 (Article 2372p-3, Vernon's Texas
1-7 Civil Statutes), is amended by amending Subsection (a) and adding
1-8 Subsection (i) to read as follows:
1-9 (a) Any person desiring to act as a bondsman in any court of
1-10 the county shall file with the County Bail Bond Board a sworn
1-11 application for a license. The application shall be in such form
1-12 and shall contain such information as the board may prescribe
1-13 including the following:
1-14 (1) The name, age, and address of the applicant, and
1-15 if the applicant is a surety corporation, and whether chartered or
1-16 admitted to do business in this state and qualified to write
1-17 fidelity, guaranty, and surety bonds under the Texas Insurance
1-18 Code, as amended;
1-19 (2) The name under which the business shall be
1-20 conducted;
1-21 (3) The name of the place or places, including street
1-22 address and city, wherein the business is to be conducted;
1-23 (4) A sworn statement listing any nonexempt real
1-24 estate owned by the applicant in this state that the applicant
2-1 intends to convey in trust to the board to secure payment of any
2-2 obligations incurred by the applicant in the bonding business if
2-3 the license is granted. The following shall be included for each
2-4 parcel listed:
2-5 (A) a legal description equivalent to the
2-6 description required to convey the property by general warranty
2-7 deed;
2-8 (B) current statements from each taxing unit
2-9 with power to assess or collect taxes against the property
2-10 indicating that there are no outstanding tax liens against the
2-11 property;
2-12 (C) a current written appraisal that meets the
2-13 requirements of Subsection (i) of this section, is made not more
2-14 than nine months before the date of the application, indicates <and
2-15 indicating> the net value of the property, and is prepared by a
2-16 state certified real estate appraiser certified under the Texas
2-17 Appraiser Licensing and Certification Act (Article 6573a.2,
2-18 Vernon's Texas Civil Statutes);
2-19 (D) <according to the current appraisal made by
2-20 a real estate appraiser who is a member in good standing of a
2-21 nationally recognized professional appraiser society or trade
2-22 organization that has an established code of ethics, educational
2-23 program, and professional certification program, accompanied by> a
2-24 sworn statement from the applicant agreeing to keep all taxes paid
2-25 on the property while it remains in trust;
2-26 (E) <(C)> a sworn statement of the applicant
2-27 that he will not further encumber the property after conveying it
3-1 in trust to the County Bail Bond Board, without notifying and
3-2 obtaining the permission of the board;
3-3 (F) a sworn <(D) an> agreement to insure and
3-4 keep current the insurance on any improvements on the property
3-5 against any damage or destruction while the property remains in
3-6 trust, in the full amount of the value claimed for the
3-7 improvements;
3-8 (G) <(E)> a sworn statement indicating whether
3-9 the applicant is married and, if so, a sworn statement from the
3-10 spouse agreeing to transfer to the board, as a part of the trust,
3-11 any right, title, or interest that the spouse may have in the
3-12 property; and the spouse must execute the deeds of trust to any
3-13 community property placed in the security deposit required under
3-14 this section;
3-15 (5) A statement indicating the amount of cash or cash
3-16 value of any certificate of deposit or cashier's checks which the
3-17 applicant intends to place on deposit with the county treasurer to
3-18 secure payment of any obligations incurred by the applicant in the
3-19 bonding business if the license is granted;
3-20 (6) A complete, sworn financial statement;
3-21 (7) A declaration by the applicant that he will comply
3-22 with this Act and the rules prescribed by the board.
3-23 (i) A real estate appraisal required under Subsection
3-24 (a)(4)(C) of this section must:
3-25 (1) conform to the appraisal requirements adopted by
3-26 board rule that are at least as stringent as the provisions of the
3-27 Uniform Standards of Professional Appraisal Practice adopted by the
4-1 Appraisal Standards Board of the Appraisal Foundation;
4-2 (2) disclose the steps taken by the appraiser that
4-3 were necessary to comply with the competency provisions adopted by
4-4 board rule that are at least as stringent as the competency
4-5 provisions of the Uniform Standards of Professional Appraisal
4-6 Practice adopted by the Appraisal Standards Board of the Appraisal
4-7 Foundation;
4-8 (3) be based on the elements of market value and net
4-9 value described by this subsection;
4-10 (4) be written and presented in a narrative format or
4-11 on forms that satisfy the requirements of this subsection;
4-12 (5) be sufficiently descriptive as to the estimated
4-13 market value and the estimated net value and as to the rationale
4-14 for these estimates;
4-15 (6) provide sufficient detail and depth of analysis
4-16 that reflects the complexity of each tract of real estate
4-17 appraised;
4-18 (7) report and analyze in reasonable detail any
4-19 transfer of the appraised property that occurred:
4-20 (A) not more than one year before the date of
4-21 the appraisal for residential property designed for not more than
4-22 four families; or
4-23 (B) not more than three years before the date of
4-24 the appraisal for all other property;
4-25 (8) report and analyze information regarding the
4-26 current revenues, expenses, and vacancies for the property if the
4-27 property is, and will continue to be, income producing;
5-1 (9) report and analyze a reasonable marketing period
5-2 for the appraised property;
5-3 (10) report and analyze current market conditions and
5-4 trends that may affect the projected income or the absorption of
5-5 the appraised property;
5-6 (11) include a statement that the appraisal assignment
5-7 is not based on a requested minimum or specific valuation;
5-8 (12) contain sufficient supporting documentation and
5-9 all pertinent information documenting the reasonableness of the
5-10 appraiser's logic, reasoning, judgment, and analysis in arriving at
5-11 the conclusions indicated in the appraisal;
5-12 (13) identify and value separately any personal
5-13 property, fixtures, or items other than real property that are
5-14 included in the appraisal and analyze the effect these items have
5-15 on the estimate of the appraised property's market value and net
5-16 value;
5-17 (14) be prepared by using a reasonable valuation
5-18 method that addresses the direct sales comparison, income, and cost
5-19 approaches to market value, reconciles these approaches, and
5-20 explains the elimination of each approach not used; and
5-21 (15) disclose and explain any information that is
5-22 required or that is pertinent to the appraisal that is unavailable
5-23 to the appraiser.
5-24 SECTION 2. This Act takes effect September 1, 1993, and
5-25 applies only to a license issued or renewed by a county bail bond
5-26 board after that date.
5-27 SECTION 3. The importance of this legislation and the
6-1 crowded condition of the calendars in both houses create an
6-2 emergency and an imperative public necessity that the
6-3 constitutional rule requiring bills to be read on three several
6-4 days in each house be suspended, and this rule is hereby suspended.