BILL ANALYSIS
C.S.H.B. 2418
By: Place
04-24-95
Committee Report (Substituted)
BACKGROUND
C.S.H.B. 2418 is designed to increase the standard of
professionalism in the bail bond industry. It increases the
security requirements required to back bonds issued by bondsmen.
Under C.S.H.B. 2418, every bondsman in the state would hold a
license issued by a county bail bond board or the sheriff in
smaller counties.
The bill also requires initial educational requirements for a
bondsman's license and annual continuing education requirements to
qualify for renewing a license. C.S.H.B. 2418 would prohibit peace
officers, court employees, or employees of a similar or related
agency from obtaining a bondsman license.
PURPOSE
If enacted, C.S.H.B. 2418 would authorize the licensing and
regulation of bail bondsmen and provide that certain educational
criteria are met for bondsmen to obtain and retain their licenses.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency, or institution.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 3, Chapter 550, Acts of the 63rd
Legislature (Article 2372p-3, V.T.C.S.), by changing the Section's
heading to read LICENSING AND EDUCATIONAL REQUIREMENTS:
ELIGIBILITY and as follows:
Sec. 3.
(a) Provides exception with Subsection (g).
(b) Changes subsection (a) to (b); replaces bondsman with
"surety on a bail bond for compensation."
(c) Changes subsection (b) to (c); amends eligibility
requirements by (1) raising age from 18 to 21; (2) prohibiting
a surety from being personally or being married to a police
officer, jailer, employee of law enforcement agency; judicial
officer; a court employee; or an employee of a similar related
agency; (3) requiring a high school diploma or G.E.D.; (4)
requiring the successful completion of 20 hours of training in
classes that meet continuing education requirements.
(d) Renumbered.
(e) Renumbered.
(f) Changes subsection (e) to (f); allows boards, in counties
that have boards, to make findings for revocation of licenses
of attorneys acting as sureties; requires attorneys in
counties over 110,000 to deposit security in the form of cash,
cashier's check or certificates of deposit to secure bonds in
the same amount as a bondsman with the exception that the
minimum amount is $10,000.
(g) Requires the sheriff, in counties without a bail bond
board, to issue or renew license only to persons who meet
requirements of Subsections (c), (d), and (e); allows the
sheriff to set uniform rules for bondsmen in that county;
makes inapplicable other provisions of this Act to such
counties.
SECTION 2. Amends Chapter 550, Acts of the 63rd Legislature
(Article 2372p-3, V.T.C.S.), by adding Sections 3A and 3B as
follows:
Sec 3A. CONTINUING EDUCATION REQUIREMENTS; REGISTRATION.
(a) Requires a person licensed under this Act or an agent for
a corporation licensed under this Act to complete annually a
minimum of eight hours of continuing education before the
anniversary date of the issuance of the license.
(b) Makes inapplicable the requirements under Subsection (a)
to a person 70 years of age or older.
(c) Requires the attorney general to determine if a continuing
education program offered under this section is reasonably and
directly related to the bonding business and to approve or
disapprove the program.
(d) Allows a provider of a continuing education program to be
a licensed bondsman or an association of licensed bondsmen.
(e) Requires the attorney general to approve the fees for such
programs.
(f) Requires the program provider to give each individual
who completes that course a certificate of attendance and
file a copy of each certificate with the Attorney
General.
(g) Requires each person who desires to take a continuing
education program to register with the attorney general and
pay an annual $50.00 registration fee. Requires the attorney
general to issue a registration card which expires on December
31 of each year. Requires the attorney general to publish
annually a list of persons registered under this section.
Sec 3B. IDENTIFICATION CARD.
(a) Requires each individual employed by or contracting with
a bondsman to hold an identification card issued by the board.
(b) Requires an application for an identification card to:
(1) be filed with the board;
(2) contain the name, address, and date of birth of the
applicant;
(3) be accompanied by a $25 application fee.
(c) Prohibits an identification card from being issued to an
individual who is
(1) is personally or is married to: a peace officer;
a jailer; an employee of a law enforcement agency; a
judicial officer; a court employee; or an employee of
any similar or related agency; or
(2) have been found guilty of any felony or misdemeanor
involving moral turpitude other than a Class C
misdemeanor in the 10 years preceding the date of the
application or any felony committed in the course of
engaging in any phase of the bail bond business.
(d) Requires the sheriff to verify the information contained
in the application; requires the board to issue an
identification card to a qualified applicant.
(e) Allows the Board or Sheriff in counties where there is no
board to issue more than one identification card if each
licensee signs a request for the issuance of the cards and
agree to be jointly responsible for the cardholder. Allows
for revocation or suspension of all cards if one is revoked or
suspended.
(f) Defines "bondsman"; "licensee"; and "license."
SECTION 3. Amends Section 5(b), Chapter 550, Acts of the 63rd
Legislature, Regular Session, 1973 (Article 2372p-3, Vernon's Texas
Civil Statutes), as follows:
(7) Allows a person who is a staff member of a justice of the
peace and an attorney to serve on the county bail bond board.
(10) Deletes the board's permission to appoint a presiding
municipal judge to the board.
SECTION 4. Amends Section 6, Subsections (a) through (f), Chapter
550, Acts of the 63rd Legislature (Article 2372p-3, V.T.C.S.), as
follows:
(a) Requires statements from the applicant to be sworn;
imposes requirement for title insurance on real property being
pledged as security.
(b) Requires a corporation seeking to be licensed
to include in its application letters of good
standing both as to the corporation and its agent
designated in its application.
(c) Clarifies language that a corporation seeking
to be licensed must include in its application a
photograph and set of fingerprints of its agent
designated in its application.
(d) Requires the board to determine the
truthfulness of the application.
(e) No changes.
(f) Requires an applicant to do the following
within 10 days or such other longer period as the
board may proscribe: deposit or pledge the
security required after the application has been
tentatively approved. Changes the population
bracket from 250,000 persons to 110,000 persons
for a minimum security deposit of $50,000.
Provides that real property be valued by the
amount indicated on the taxing unit statements
filed with the application. Imposes a
requirement for title insurance on real property
pledged as security. Provides for automatic
revocation of tentative approval of an
application if the initial security is not timely
posted. Removes letters of credit as authorized
security. Imposes a $10,000.00 minimum cash
security requirement. Imposes a requirement that
a bondsmen or attorney pledging real property as
security also deposit in cash, cashier's check or
certificate of deposit an amount equal to 30
percent of the value of the real property
pledged.
SECTION 5. Amends Article 17.03(b), Code of Criminal Procedure, as
follows:
Provides that only the court before whom the case is pending
may release on personal bond a defendant who is charged with
a felony and who has been convicted of a felony offense within
the preceding 10 year period to release; or who is charged
with a felony and does not submit to testing for controlled
substances.
SECTION 6. Amends Article 17, Code of Criminal Procedure, by
adding Section 17.085 as follows:
Art. 17.085. MORE THAN ONE BAIL BOND MAY BE GIVEN TO PROVIDE BAIL
IN CERTAIN CASES. Provides that if bail is set at an amount of
$100,000.00 or more, more than one bail bond of a minimum $50,000
may be given provided that the aggregate totals the amount set,
that all of bonds are presented at the same time for approval, and
that no person serve as surety on more than one bond presented for
approval.
SECTION 7. Amends Chapter 22, Code of Criminal Procedure, by
adding Article 22.121 to read as follows:
Art. 22.121. CONTINUANCE TO APPREHEND PRINCIPAL. Allows a court
to continue a bond forfeiture proceeding if the court is presented
a motion for continuance by the security that contains an affidavit
setting out facts sufficient to show that the surety is making a
diligent effort to return the defendant to custody.
SECTION 8. Amends Article 22.16, Code of Criminal Procedure, as
follows:
Art. 22.16. REMITTITUR AFTER FORFEITURE AND BEFORE JUDGMENT OF
FORFEITURE BECOMES FINAL.
(a) Clarifies time frame for the court's remitting specific
amounts to the surety if:
(6) the proper authorities refuse to extradite the
principal on the bond to the county in which the
declaration of forfeiture is pending after a request by
the surety for extradition and a written acknowledgment
of the surety's liability for the costs of the
extradition; or
(7) the case for which the bond was given was disposed of
by a finding of guilty and the principal was placed into
the custody, the case was disposed of by a finding of not
guilty, or the principal was granted community
supervision after being convicted or receiving deferred
adjudication.
(b) Provides a certain time frame during which a law
enforcement agency must notify the court whether the principal
is or has been incarcerated in another jurisdiction and the
date of incarceration. Requires a surety that requests
confirmation to pay a fee of $10 for a confirmation from a
jurisdiction in this state and the greater of $25 or the
actual costs to the county for a confirmation from a
jurisdiction outside this state.
(c) Strikes the allowance that a final judgment be entered
against a bond within a certain time frame; states that this
article does not exonerate the surety on a bond until all
imposed costs and penalties have been paid in full or an
agreed judgment has been entered and paid.
(d) Strikes the allowance that the court remit to the surety
all or part of the bond after deducting court costs, costs to
the county, and accrued interest. Allows interest to accrue
on the bond amount from the date of forfeiture in the same
manner and at the same rate as provided for the accrual of
prejudgment interest in civil cases.
SECTION 9.
(a) Changes in law made by this Act apply only to a license
that is initially issued or renewed after the effective date
of this Act.
(b) Makes effect of the Act prospective. Provides that a
bondsman licensed before the effective date of this Act is
governed by the law in effect on the date that the license was
issued, and the former law is continued in effect for that
purpose until the later of the date of renewal or January 1,
1997.
(c) Requires a person who was not subject to licensing as a
bondsman before the effective date of this Act to comply with
this Act no later than January 1, 1996.
SECTION 10.
(a) Makes Section 3(c)(4) inapplicable to a person married
before the effective date of this Act to a peace officer,
jailer, employee of a law enforcement agency, judicial
officer, court employee, or employee of any similar or related
agency.
(b) Makes Section 3(c)(5) inapplicable to a person who: holds
a license issued before September 1, 1995; was previously
licensed before September 1, 1995 and whose license was never
revoked or suspended; was a surety on a bond for compensation
in a county in which a license was not required before the
effective date of this Act; or was employed by a bondsman for
before the effective date of this Act.
(c) Defines "person."
SECTION 11. Allows a bondsman whose license was issued prior to
September 1, 1995 and who pledged real property as security on or
before September 1, 1995 not to comply with Section 6(f)(5) as
amended by this Act.
SECTION 12. Allows any real property pledged by a bondsman before
September 1, 1995 to be valued by the law or board rule in effect
prior to September 1, 1995 and that was in effect when the property
was pledged and does not have to comply with Section 6(f)(2)(A) of
this Act as amended. Requires all real property pledged after
September 1, 1995 to comply and be valued as provided in Section
6(f)(2)(A) as amended.
SECTION 13. Provides a bond or bond forfeiture given before
September 1, 1995 is governed by the law in effect on the date the
bond was executed, and the former law is continued in effect for
that purpose. Bail set and bonds executed on or after September 1,
1995, are governed by the Code of Criminal Procedure as amended by
this Act.
SECTION 14. Effective date: September 1, 1995.
SECTION 15. Emergency clause.
COMPARISON OF ORIGINAL TO SUBSTITUTE
Both the original bill and the substitute amend the following:
Section 3, Chapter 550, 63rd Legislature; Chapter 550, 63rd
Legislature, by adding Sections 3A and 3B; Article 17.03(b), Code
of Criminal Procedure; Chapter 22, Code of Criminal Procedure, by
adding Article 22.121; and Article 22.16, Code of Criminal
Procedure.
The original amends Section 5, Chapter 550, Acts of the 63rd
Legislature by amending Subsections (b) and (f) and adding
Subsection (g); the substitute amends only Subsection (b).
The original amends Section 6(a), (f), and (h), Chapter 550, Acts
of the 63rd Legislature, while the substitute amends Section 6(a) -
(f).
The substitute amends Article 17, Code of Criminal Procedure, by
adding Section 17.085; the original does not amend this Article.
Any other section of statute not previously mentioned is amended by
the original bill, but not by the substitute.
SUMMARY OF COMMITTEE ACTION
HB 2418 was referred directly to the Procedural Subcommittee by the
chair. HB 2418 was considered in a public hearing on April 18,
1995. The following persons testified in favor of the bill:
Bob Glasgow, representing the Professional Bondsmen of Texas.
J. Sutton Taylor, representing the Professional Bondsmen of
Texas.
The following persons testified against the bill:
Ronnie Earle, representing Travis County;
Kathleen Braddock, representing the Harris County District
Attorney's Office; and
Donald Lee, representing the Conference of Urban Counties.
Carol Oeller, representing herself;
Betty Blackwell, representing the Texas Criminal Defense
Lawyers Association (TCDLA); and
Sgt. Bruce Carr, representing the Harris County Sheriff's
Department.
The subcommittee considered a complete committee substitute. Two
amendments were offered to the substitute. The amendments were
adopted without objection. The substitute, as amended, was adopted
without objection. The Chair directed the staff to incorporate the
amendments into the substitute. The bill was reported favorably as
substituted, to the full committee by a record vote of 3 ayes, 0
nays, 0 pnv, and 0 absent.
HB 2418 was considered on subcommittee report by the committee in
a public hearing on April 24, 1995. The committee considered a
complete committee substitute. The substitute was adopted without
objection. HB 2418 was reported favorably as substituted, with the
recommendation that it do pass and be printed by a record vote of
7 ayes, 0 nays, 0 pnv, and 2 absent.