By Place                                        H.B. No. 2341

      75R3488 PB-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to certification of bail bondsmen by the Texas Department

 1-3     of Licensing and Regulation; providing a penalty.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Title 44, Revised Statutes, is amended by adding

 1-6     Article 2372p-4 to read as follows:

 1-7           Art. 2372p-4.  STATE CERTIFICATION OF BAIL BONDSMEN

 1-8           Sec. 1.  DEFINITIONS.  (a)  In this article:

 1-9                 (1)  "Commissioner" means the commissioner of licensing

1-10     and regulation.

1-11                 (2)  "Department" means the Texas Department of

1-12     Licensing and Regulation.

1-13                 (3)  "Person" includes an individual designated to act

1-14     as an agent of a corporation licensed to execute bail bonds for

1-15     compensation.

1-16           (b)  In addition to the definitions under Subsection (a) of

1-17     this section, the definitions adopted under Section 2, Chapter 550,

1-18     Acts of the 63rd Legislature, Regular Session, 1973 (Article

1-19     2372p-3, Vernon's Texas Civil Statutes), apply to this article.

1-20           Sec. 2.  CERTIFICATE OF REGISTRATION REQUIRED; PENALTY.  (a)

1-21     In addition to any other legal requirements, a person may not

1-22     execute a bail bond in any county of this state as a surety for

1-23     compensation unless the person holds a certificate of registration

1-24     issued under this article.  A person is entitled to a certificate

 2-1     of registration if the person:

 2-2                 (1)  passes the certification examination required

 2-3     under Section 4 of this article; and

 2-4                 (2)  pays all required fees.

 2-5           (b)  Notwithstanding Subsection (a) of this section, a person

 2-6     is exempt from the certification examination requirement if the

 2-7     person:

 2-8                 (1)  holds a license under Chapter 550, Acts of the

 2-9     63rd Legislature, Regular Session, 1973 (Article 2372p-3, Vernon's

2-10     Texas Civil Statutes), that was issued before September 1, 1997;

2-11                 (2)  held a license under Chapter 550, Acts of the 63rd

2-12     Legislature, Regular Session, 1973 (Article 2372p-3, Vernon's Texas

2-13     Civil Statutes), that was issued before September 1, 1995, if that

2-14     license was never revoked or suspended before the license expired;

2-15     or

2-16                 (3)  acted as a surety on a bond for compensation in a

2-17     county in which a license to operate as a bondsman was not required

2-18     before September 1, 1997.

2-19           (c)  A person who is exempt under Subsection (b) of this

2-20     section may obtain a certificate of registration from the

2-21     department by filing a sworn statement that demonstrates to the

2-22     satisfaction of the commissioner that the person is eligible for

2-23     the exemption claimed.

2-24           (d)  A certificate of registration issued under this article

2-25     expires on the second anniversary of the date of issuance of the

2-26     certificate.  The certificate is not transferable.

2-27           (e)  A person commits an offense if the person operates as a

 3-1     bondsman without a certificate of registration issued under this

 3-2     article.  An offense under this subsection is a Class A

 3-3     misdemeanor.

 3-4           Sec. 3.  APPLICATION; EXEMPTION.  (a)  Except as otherwise

 3-5     provided by this article, this article applies to a person who

 3-6     holds a license issued by a board under Chapter 550, Acts of the

 3-7     63rd Legislature, Regular Session, 1973 (Article 2372p-3, Vernon's

 3-8     Texas Civil Statutes).

 3-9           (b)  This article does not apply to a person licensed to

3-10     practice law by the Supreme Court of Texas.

3-11           Sec. 4.  CERTIFICATION EXAMINATION; REQUIREMENTS.  (a) Except

3-12     as otherwise provided by this article, each person who desires to

3-13     operate as a bondsman in this state must pass the certification

3-14     examination required by this section.

3-15           (b)  The certification examination must cover topics involved

3-16     in the operation of a bail bond business.  The department shall

3-17     approve, administer, and grade the examination.

3-18           (c)  An applicant shall pay a $100 examination fee to the

3-19     department to cover the costs of administering the examination.

3-20           (d)  The department shall offer the examination at least

3-21     semiannually.

3-22           (e)  A person who fails the examination is entitled to take a

3-23     subsequent examination on the payment of an additional examination

3-24     fee.  However, the person must wait a minimum of three months

3-25     before taking a subsequent examination.  If a person fails the

3-26     examination twice, the person may not retake the examination before

3-27     the anniversary of the date of the second examination.

 4-1           (f)  A person who fails the examination and desires to

 4-2     contest the grading process is entitled to judicial review of the

 4-3     process by a district court of Travis County.

 4-4           Sec. 5.  CONTINUING EDUCATION REQUIREMENTS.  (a)  To renew

 4-5     the certificate of registration, a bondsman must annually complete

 4-6     five hours of continuing education courses through a program

 4-7     qualified under Subsection (b) of this section.

 4-8           (b)  The department shall certify qualified continuing

 4-9     education programs.  To be eligible for certification, the course

4-10     offered by a program must cover all major topics involved in the

4-11     operation of a bail bond business.

4-12           (c)  A fee charged by a provider of continuing education

4-13     shall be retained by the provider to cover the cost of presenting

4-14     the program.  The fee must be paid in full by the participant and

4-15     may not be paid for or waived by the provider.

4-16           (d)  Each provider of continuing education shall provide the

4-17     department with a list that:

4-18                 (1)  identifies each person who participated in the

4-19     continuing education program;

4-20                 (2)  states the number of hours of instruction actually

4-21     attended by that participant; and

4-22                 (3)  states the fee paid by the participant for the

4-23     continuing education program.

4-24           Sec. 6.  CERTIFICATE RENEWAL.   A person who holds a

4-25     certificate of registration issued under this article is entitled

4-26     to renew the certificate if the person:

4-27                 (1)  demonstrates to the satisfaction of the

 5-1     commissioner compliance with the continuing education requirements

 5-2     imposed under Section 5 of this article;

 5-3                 (2)  pays any required renewal fee; and

 5-4                 (3)  complies with any other requirements for renewal

 5-5     adopted by rule by the commissioner.

 5-6           Sec. 7.  ADVISORY COUNCIL.  (a)  The bail bondsman advisory

 5-7     council is established as an advisory committee to the department.

 5-8           (b)  The advisory council is composed of nine members

 5-9     appointed by the commissioner as provided by this section.

5-10           (c)  The Professional Bondsmen of Texas and the Corporate

5-11     Surety Association shall each nominate two of their members to the

5-12     commissioner for designation by the commissioner as members of the

5-13     advisory council.

5-14           (d)  The commissioner shall appoint the remaining five

5-15     members as follows:

5-16                 (1)  one member shall be an assistant attorney general

5-17     for this state;

5-18                 (2)  one member shall be a judge in this state with

5-19     experience in criminal law matters;

5-20                 (3)  one member shall be a member of the legislature of

5-21     this state;

5-22                 (4)  one member shall be a prosecuting attorney in this

5-23     state; and

5-24                 (5)  one member shall be a sheriff in this state.

5-25           (e)  A member of the advisory council serves a two-year term

5-26     or until the member's successor is appointed.  A member who is a

5-27     public official serves for two years or until the member leaves the

 6-1     position that qualifies the member for service.

 6-2           (f)  A member of the advisory council is not entitled to

 6-3     compensation for service on the committee but is entitled to

 6-4     reimbursement for reasonable travel expenses at the rate provided

 6-5     for state employees in the General Appropriations Act.

 6-6           (g)  The advisory council shall:

 6-7                 (1)  advise the commissioner on the contents of the

 6-8     certification examination; and

 6-9                 (2)  assist the department in the evaluation of

6-10     continuing education programs.

6-11           (h)  The advisory council may:

6-12                 (1)  recommend standards for continuing education

6-13     programs, including standards relating to the qualifications of

6-14     program providers and instructors, and the level of program fees;

6-15                 (2)  recommend topics to be covered in a continuing

6-16     education course; and

6-17                 (3)  propose rules for adoption by the commissioner

6-18     relating to the regulation of bail bondsmen registered under this

6-19     article.

6-20           (i)  The advisory council is not subject to Article 6252-33,

6-21     Revised Statutes.

6-22           SECTION 2.  (a)  Except as otherwise provided by this

6-23     section, this Act takes effect September 1, 1997.

6-24           (b)  A person employed on the effective date of this Act by a

6-25     bondsman licensed under Chapter 550, Acts of the 63rd Legislature,

6-26     Regular Session, 1973 (Article 2372p-3, Vernon's Texas Civil

6-27     Statutes), is eligible for a certificate of registration under

 7-1     Article 2372p-4, Revised Statutes, as added by this Act, without

 7-2     compliance with the examination requirements if the person applies

 7-3     for the certificate to the Texas Department of Licensing and

 7-4     Regulation before January 1, 1998, and pays any required fees.

 7-5           (c)  A person is not required to hold a certificate of

 7-6     registration issued under Article 2372p-4, Revised Statutes, as

 7-7     added by this Act, until January 1, 1998.

 7-8           (d)  The commissioner of licensing and regulation shall adopt

 7-9     rules as necessary to implement Article 2372p-4, Revised Statutes,

7-10     as added by this Act, not later than December 1, 1997.                    

7-11           (e)  A person who, on September 1, 1997, holds a license

7-12     issued by a county bail bond board under Chapter 550, Acts of the

7-13     63rd Legislature, Regular Session, 1973 (Article 2372p-3, Vernon's

7-14     Texas Civil Statutes), and receives a certificate of registration

7-15     under Article 2372p-4, Revised Statutes, as added by this Act,

7-16     without compliance with the examination requirements imposed under

7-17     that article must comply with the continuing education requirements

7-18     imposed under that article not later than September 1, 1998.

7-19           SECTION 3.  The importance of this legislation and the

7-20     crowded condition of the calendars in both houses create an

7-21     emergency and an imperative public necessity that the

7-22     constitutional rule requiring bills to be read on three several

7-23     days in each house be suspended, and this rule is hereby suspended.