AEZ H.B. 3412 75(R)BILL ANALYSIS CRIMINAL JURISPRUDENCE H.B. 3412 By: Place 4-17-97 Committee Report (Unamended) BACKGROUND A problem has arisen in recent years relating to property bondsmen becoming agents of corporate sureties without paying off outstanding judgements. Additionally, certain provisions of the Bail Bonds Act, Article 2372p-3, Vernon's Texas Civil Statutes, are unclear as they relate to corporate sureties. PURPOSE HB 3412, as proposed, would amend the Bail Bond Act, Article 2372p-3, Revised Statutes, to clarify the provisions of the Act. This bill would also amend the Insurance Code and provide certain restrictions on the licensing of agents for corporate sureties. RULEMAKING AUTHORITY It is the committee's opinion that this bill does grant additional rulemaking authority to the Commissioner of Insurance in SECTION 4 which amends Sections 7(e), Article 2372p-3, and in SECTION 7 which amends Article 21.14, Insurance Code, adding Sec. 17. SECTION BY SECTION ANALYSIS SECTION 1.Amends Article 2372p-3, Vernon's Texas Civil Statutes, to define the term "corporation" and to provide that a "person" means only an individual. SECTION 2.Amends Subsections 3(a) and (d), Article 2372p-3, Vernon's Texas Civil Statutes, to clarify that in a bail bond board county, persons who are licensed as agents of a corporate surety may act as bondsmen. Also provides that a corporate surety must hold a certificate of authority from the Department of Insurance to be licensed as a corporate bondsman. SECTION 3.Amends Section 6(a), Article 2372p-3, Vernon's Texas Civil Statutes, to conform the section to the definition changes in Section 1 of this act to clarify that a corporation shall file its bondsman application with the bail bond board. SECTION 4.Amends Section 7(b), Article 2372p-3, Vernon's Texas Civil Statutes, to clarify that a corporate sureties certificate of authority from the Department of Insurance is sufficient evidence of the sufficiency of the security, the corporation's financial solvency or its credits. Amends Section 7(c) to provide that a corporate surety may not be granted a bondsman license for an agent that has any outstanding judgement on any forfeited bond. Amends Section 7(d) to provide that a local recording agent of a corporate surety is eligible to be licensed as a bondsman. Amends Section 7(e) to ensure that the Commissioner of Insurance may promulgate rules relating to corporate sureties that the department licenses and to local recording agents that the department licenses. SECTION 5.Amends Section 8, Article 2372p-3, Vernon's Texas Civil Statutes, by adding paragraph (d) which provides that a corporate surety may not renew the bondsman license of an agent that has any outstanding judgement on any forfeited bond in the county where the agent is licensed that has not been paid timely. SECTION 6.Amends Sections 12(a) and (c), Article 2372p-3, Vernon's Texas Civil Statutes, to change "person" to bondsman" to conform with the definitions in Section 1 of this Act. SECTION 7.Amends Article 21.14, Insurance Code, by adding Subsection 17 which provides that the Commissioner of Insurance may promulgate rules related to corporate sureties and local recording agents that also write criminal court appearance bonds. SECTION 8. Emergency Clause.