By Talton H.B. No. 2844
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the licensing and regulation of bail bondsmen.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Sections 6, Chapter 550, Acts of the 63rd
1-5 Legislature, Regular Session, 1973 (Article 237p-3, Vernon's Texas
1-6 Civil Statutes), is amended to read as follows:
1-7 (a) Any person desiring to act as a bail bondsman in any
1-8 court of the county shall file with the County Bail Bond Board a
1-9 sworn application for a license. The application shall be in such
1-10 form and shall contain such information as the board may prescribe
1-11 including the following:
1-12 (1) The name, age, and address of the applicant, and
1-13 if the applicant is a <surety> corporation, <and> whether it is
1-14 chartered or admitted to do business in the state and qualified to
1-15 write fidelity, guaranty, and surety bonds under the Texas
1-16 Insurance Code<, as amended>;
1-17 (2) The name under which the applicant will conduct
1-18 business <shall be conducted>;
1-19 (4) A sworn statement from the applicant listing any
1-20 nonexempt real estate owned by the applicant and located in the
1-21 county in the county in which the applicant seeks licensing that
1-22 the applicant intends to convey in trust to the board to secure
1-23 payment of any obligations in the bonding business if the license
2-1 is granted. The following shall be included for each parcel
2-2 listed:
2-3 (A) a legal description equivalent to the
2-4 description required to convey the property by general warranty
2-5 deed;
2-6 (B) current statements from each taxing unit
2-7 with power to assess or collect taxes against the property
2-8 indicating that there are no unpaid taxes, no outstanding tax liens
2-9 against the property, and <indicating> the taxable <net> value of
2-10 the property <according to the current appraisal made by a real
2-11 estate appraiser who is a member in good standing of a nationally
2-12 recognized professional appraiser society or trade organization
2-13 that has an established code of ethics, educational program, and
2-14 professional certification program,> <accompanied by a statement
2-15 from the applicant agreeing to keep all taxes paid on the property
2-16 while it remains in trust>;
2-17 (C) a sworn statement from the applicant
2-18 agreeing to pay all taxes assessed against the property on or
2-19 before the date payment is due while the property remains in trust;
2-20 (D) <(C)> a sworn statement from <of> the
2-21 applicant <that he will> agreeing not <further> to encumber the
2-22 property after conveying it in trust to the County Bail Bond Board,
2-23 without notifying and obtaining the permission of the board;
2-24 (E) <(D)> a sworn statement from the applicant
2-25 agreeing to purchase, and maintain as long as the property remains
3-1 in trust, an insurance policy, issued by an insurance company
3-2 authorized to write hazard insurance in this state, naming the
3-3 board as a co-payee in the case of loss, insuring the improvements
3-4 on the property in amount equal to or greater than the value of the
3-5 improvements indicated on the tax statements submitted pursuant to
3-6 Subsection (a)(4)(B) of this section against damage or destruction
3-7 <an agreement to insure and keep current the insurance on any
3-8 improvements on the property against any damage or destruction
3-9 while the property remains in truth, in the full amount of the
3-10 value claimed for the improvements>;
3-11 (F) sworn statement from the applicant agreeing
3-12 to purchase, for the benefit of the board, a mortgagee's title
3-13 insurance policy, issued by a title insurance policies in this
3-14 state, in an amount equal to or greater than the taxable value of
3-15 the property as indicated on the tax statements submitted pursuant
3-16 to Subsection (a)(4)(B) of this section, insuring title to the
3-17 property to the board is free and clear of any liens except taxes
3-18 which are not then due and payable or liens which are in all
3-19 respects subordinate to the lien of the board. A license who has
3-20 previously pledged real property under this Act and who was not
3-21 required to have a mortgagee's title insurance policy by local rule
3-22 shall have until September 1, 1996, to obtain and tender to the
3-23 board the required mortgagee's title insurance policy;
3-24 <(E) a statement indicating whether the
3-25 applicant is married and, if so, a sworn statement from the spouse
4-1 agreeing to transfer to the board, as a part of the trust, any
4-2 right, title, or interest that the spouse may have in the property,
4-3 and the spouse must execute the deeds of the to any community
4-4 property placed in the security deposit required under this
4-5 section,>
4-6 (5) A statement indicating the amount of cash or cash
4-7 value of any certificate of deposit or cashier's checks which the
4-8 applicant intends to place on deposit with the county treasurer to
4-9 secure payment of any obligations incurred by the applicant in the
4-10 bonding business if the license is granted;
4-11 (6) A sworn statement from the applicant indicating
4-12 the applicant's marital status and whether the security to be
4-13 deposited and/or placed in trust is separate or community property.
4-14 If the applicant is married, the applicant's spouse transferring to
4-15 the board any right, title, or interest that the spouse may have in
4-16 the security being deposits and/or placed in trust; and the spouse
4-17 must also execute the deeds of trust to any property placed in
4-18 trust under this Act;
4-19 (7) <(6)> A complete, sworn financial statement;
4-20 (8) <(7)> A declaration by the applicant that he will
4-21 comply with this Act and the rules prescribed by the board.
4-22 (b) The application of an individual for a license under
4-23 this Act shall be accompanied by letters of recommendation from
4-24 three persons who known the applicant for a period of at least
4-25 three years. The application of a corporation for a license under
5-1 this Act shall be accompanied by letters of recommendation for the
5-2 agent the corporation seeks to license from three reputable persons
5-3 who have known the agent for a period of at least three years. <If
5-4 the applicant is a corporation, the letters shall be required for
5-5 the person who will be in charge of its business in the county.>
5-6 Each letter shall recommend the applicant or agent <person who will
5-7 be in charge of its business> as having a reputation of honesty,
5-8 truthfulness, fair dealing, and competency and shall recommend that
5-9 the license be granted. <If the applicant or the person to be in
5-10 charge of its business has been or currently is licensed under this
5-11 Act in another county, the application shall be accompanied by a
5-12 letter from each appropriate board stating whether or not the
5-13 applicant is in good standing in the county where he is licensed.>
5-14 (c) If the applicant currently is or has been licensed under
5-15 this Act, the application shall be accompanied by a letter from the
5-16 board of every county where the applicant is or has been licensed
5-17 stating whether or not the applicant is in good standing. If the
5-18 applicant is a corporation seeks to license currently is or has
5-19 been licensed under this Ac, the application shall also be
5-20 accompanied by a letter from the board of every county where the
5-21 agent is or has been licensed stating whether or not the agent is
5-22 in good standing.
5-23 (d) <(c)> The application shall be accompanied by a fee of
5-24 $500 for the filing of any original application, a photograph of
5-25 the applicant, if an individual, or the agent the corporation seeks
6-1 to license, if a corporation, and set of fingerprints of the
6-2 applicant or agent taken by a law enforcement officer designed by
6-3 the board.
6-4 (e) <(d)> Prior to a hearing on the application, the board
6-5 or its authorized representatives shall conduct necessary inquiries
6-6 to determine the truthfulness of statements contained in the
6-7 application and whether the applicant possesses the financial
6-8 responsibility and meets other requirements of this Act.
6-9 (f) <(e)> A hearing shall be held on the application after
6-10 the board conducts the inquiries required by Subsection (e) <(d)>
6-11 of this section. This board may submit any questions to the
6-12 applicant and the applicant's agents relevant to its ruling on the
6-13 application, and the applicant is entitled to present oral and
6-14 documentary evidence to the board. If, after the hearing, the
6-15 board is satisfied that no grounds exist on which to refuse the
6-16 application, the board shall enter an order tentatively approving
6-17 the application subject to the application being perfected by the
6-18 filing of the security deposits requiring of licenses under this
6-19 Act. If the board is not satisfied, it shall enter an order
6-20 refusing the license.
6-21 (g) <(f)> Within ten (10) days or such times as the board
6-22 prescribes, whichever is longer, after <Upon> notice from the board
6-23 that the application has been tentatively approved, the applicant
6-24 shall <then>:
6-25 (1) deposit with the county treasurer of the county in
7-1 which the license is to be issued a cashier;s check, certificate of
7-2 deposit, or cash, <or each equivalent> in the amount indicated by
7-3 the applicant pursuant to <under> Subsection (a)(5) of this
7-4 section, (Subdivision (5) of Subsection (a) of Section 6 of this
7-5 Act) but in no event shall the amount deposited be less than
7-6 $50,000.00, except on counties with populations of less, than
7-7 110,000 <250,000> persons by the most recent federal census, where
7-8 the minimum deposit amount <the amount for applicants in said
7-9 counties> shall be $10,000.00, to be held in a special fund to be
7-10 called the bail security fund; or
7-11 (2) (A) deliver <execute in trust> to the board an
7-12 executed deed of trust for each <deeds to the> property listed by
7-13 the applicant under <Subdivision (4) of> Subsection (a)(6) <(a)> of
7-14 <Section 6 of> this section. <Act, which> For purposes of this Act
7-15 the property shall be valued in the amount indicated on the taxing
7-16 unit statements filed pursuant to Subsection (a)(4)(B) of this
7-17 section, <an appraisal by a real estate appraiser who is a member
7-18 in good standing of a nationally recognized professional appraiser
7-19 society or trade organization that has an establishes code of
7-20 ethics, educational program, and professional certification
7-21 program,> and at least one parcel of property shall have a taxable
7-22 value of at least $50,000.00 <but in no event less than $50,000
7-23 valuation>, except in counties with populations of less than
7-24 110,000 <250,000> persons by the most recent federal census, where
7-25 at least one parcel of property shall have a taxable value of at
8-1 least $10,000.00 <the amount for applicants in said counties shall
8-2 be $10,000>, the condition of the trust being that the property may
8-3 be sold to satisfy any final judgement forfeitures that may be made
8-4 in bonds on which the licensee is surety after such notice and upon
8-5 such conditions as are required by the Code of Criminal Procedure<,
8-6 1965, as amended,> in bonds forfeiture cases; the board shall file
8-7 the deeds of trust in the records of each county in which the
8-8 property is located, and the applicant shall pay the filing fees;
8-9 and<.>
8-10 (B) deliver to the board an insurance policy,
8-11 issued by an insurance company authorized to write hazard insurance
8-12 in this state, valid for at least a one year period, naming the
8-13 board as a co-payee in case of loss, insuring the improvements on
8-14 the property against damage or destruction in an amount equal to or
8-15 on greater than the value of the improvements indicated on the tax
8-16 statements submitted pursuant to Subsection (a)(4)(B) of this
8-17 section. The license shall maintain this policy in full force and
8-18 effect while the property remains in trust and shall deliver to the
8-19 board a copy of the policy annually; and
8-20 (C) deliver to the board a mortgagee's title
8-21 insurance policy, issued by a title insurance company authorized to
8-22 write title insurance policies in this state, insuring title to the
8-23 property to the board to be free and clear of any liens except
8-24 taxes which are not then due and payable or liens which are in all
8-25 respects subordinate to the lien of the board in the amount of the
9-1 tax value of the property. A licensee who was not required to have
9-2 a mortgagee's title insurance policy by local rule shall have until
9-3 September 1, 1996, to obtain and tender to the board the required
9-4 mortgagee's title insurance policy.
9-5 (3) Failure to comply with this subsection within the
9-6 provided time shall result in the automatic revocation of the
9-7 license without any action by the board.
9-8 <(3) if the licensee is a corporation, it shall
9-9 furnish to the sheriff an irrevocable letter of credit as a cash
9-10 equivalent to satisfy any final judgement of forfeiture that may be
9-11 made on any bonds on which the corporate licensee is surety.>
9-12 (h) <(g)> No bondsman may execute a bail bond in an amount
9-13 that exceeds the amount he has on deposit or in trust as security
9-14 under Subsection (g) of this section. No bondsman may execute, in
9-15 any county, bail bonds that in the aggregate exceed 5 <10> times
9-16 the value of the property (held as security on deposit or in trust
9-17 as security under Subsection (g) <(f)> of this section and when a
9-18 bondsman's total liability on judgements nisi reaches the same
9-19 amount as he has on deposit or on trust as security, no further
9-20 bonds may be written until the bondsman posts additional security
9-21 as required by this subsection. a county officer or employee
9-22 designated by the board shall maintain a current total of the
9-23 bondsman's potential liability on bonds in force and on judgements
9-24 nisi, and no further bonds may be written by or accepted from the
9-25 bondsman when the limits are <is> reached. <When a bondsman's
10-1 total liability on judgements nisi reaches two times the same
10-2 amount as he has on deposit as security, no further bonds may be
10-3 written until the bondsman posts additional security as required by
10-4 this subsection.> A bondsman whose license is effective may, at
10-5 any time by posting additional security, increase the <bondsman's
10-6 limit> limits set forth in this section.
10-7 (i) <(h)> The cash deposit or the funds realized from the
10-8 trust shall be used to pay the final judgements of any bail
10-9 forfeitures that result from the licensee's execution of a bail
10-10 bond, if the licensee fails to satisfy the judgement within 30 days
10-11 after a final judgment of forfeiture. When any sums are depleted
10-12 from the deposit or trust to pay a judgment resulting from a
10-13 forfeiture. When any sums are depleted from the deposit or trust
10-14 to pay a judgement resulting from a forfeited bond, the license
10-15 shall, as a condition to continuing as a licensee, replenish the
10-16 amount so depleted up to the amount of the required minimum deposit
10-17 to secure other bonds in force. When the licensee ceases to engage
10-18 in the business of executing bail bonds and ceases to maintain his
10-19 license, he may withdrawal his security deposit or trust upon
10-20 presentment of a release by the board, if there are no judgements
10-21 or bond liabilities, either actual or potential, outstanding
10-22 against the license. Any portions of the deposit or trust not used
10-23 to pay judgements or to secure unexpired obligations on existing
10-24 bonds in force shall be returned to the license or his heirs or
10-25 assigns upon presentment of a release by the board.
11-1 SECTION 2. Section 7(c), Chapter 550, Acts of the 63rd
11-2 Legislature, Regular Session, 1973 (Article 2372p-3, Vernon's Texas
11-3 Civil Statutes) is amended to read as follows:
11-4 Sec. 7. (c) Any corporation which acts as a surety shall,
11-5 before executing any bail bond, first file in the office of the
11-6 county clerk of the county where such bail bond is given a power of
11-7 attorney designating and authorizing the named agent of such
11-8 corporation to execute such bail bonds by such agent. This power
11-9 of attorney shall be a valid and binding obligation of the
11-10 corporation. A separate license and security deposit are <is>
11-11 required for each agent operating under a corporate power of
11-12 attorney.
11-13 SECTION 3. Section 11, Chapter 550, Acts of the 63rd
11-14 Legislature, Regular Session, 1973 (Article 237p-3, Vernon's Texas
11-15 Civil Statutes) is amended to read as follows:
11-16 Sec. 11. Court Review. (a) An Appeal may be taken from any
11-17 board's order revoking, suspending, or refusing to issue a license.
11-18 The appeal must be made within 10 <30> days after written notice of
11-19 the suspension, revocation, or refusal, such action shall become
11-20 final. <An appeal shall be made by trial de novo, as in proceedings
11-21 appealed from justice to county courts.> The decision of the board
11-22 shall have full force and effect pending the determination of the
11-23 appeal.
11-24 (b) The appeal of a board order shall be made to the
11-25 district court. The district court shall examine the record of the
12-1 board's action and determine whether there was substantial evidence
12-2 to support the board's action. The court may not substitute its
12-3 judgement for that of the board as to the weight of the evidence on
12-4 questions committed to the board's discretion but may affirm the
12-5 decision of the board in whole or in part and shall reverse or
12-6 remand the case for furthur proceedings if substantial rights of
12-7 the appellant have been prejudiced because the board's findings,
12-8 inferences, conclusions, or decisions are:
12-9 (1) in violation of constitutional or statutory
12-10 provisions:
12-11 (2) in excess of the statutory authority of the board;
12-12 (3) made upon unlawful procedure;
12-13 (4) affected by other error of law; or
12-14 (5) not reasonably supported by substantial evidence
12-15 in view of the reliable and probative evidence in the record as a
12-16 whole.
12-17 (c) All appeals taken from the actions of the board shall be
12-18 against the board and not against the members individually.
12-19 SECTION 4. This Act takes effect September 1, 1995.
12-20 SECTION 5. The importance of this legislation and the
12-21 crowded condition of the calendars in both houses create an
12-22 emergency and an imperative public necessity that the
12-23 constitutional rule requiring bills to be read on three separate
12-24 days in each house be suspended, and this rule is hereby suspended.