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.