By Solis H.B. No. 2484
75R3334 PB-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to an exemption for certain insurance companies regulated
1-3 by the Texas Department of Insurance from licensing requirements
1-4 regarding the issuance of bail bonds.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 3, Chapter 550, Acts of the 63rd
1-7 Legislature, Regular Session, 1973 (Article 2372p-3, Vernon's Texas
1-8 Civil Statutes), is amended to read as follows:
1-9 Sec. 3. LICENSING REQUIREMENT AND ELIGIBILITY. (a) The
1-10 provisions of this Act apply only to the execution of bail bonds in
1-11 counties having a population of more than 110,000 according to the
1-12 last federal census or in counties of less than 110,000 where a
1-13 board has been created. The creation of the board is within the
1-14 discretion of a majority of the officers of the county who would be
1-15 members of, or who would designate members of, the board as
1-16 provided under Section 5 [Subsection (b)] of this Act [section].
1-17 (b) [(a)] In a county that has a board, no person may act as
1-18 a bondsman except:
1-19 (1) persons licensed under this Act;[, and]
1-20 (2) persons licensed to practice law in this state who
1-21 meet the requirements set forth in [Subsection (e) of] Section
1-22 3A(b) [3] of this Act; and
1-23 (3) corporations that meet the description stated
1-24 under Section 3A(a) of this Act.
2-1 (c) [(b)] No individual is eligible for a license under this
2-2 Act unless the individual:
2-3 (1) is a resident of this state and a citizen of the
2-4 United States;
2-5 (2) is at least 18 years of age; and
2-6 (3) possesses sufficient financial resources to
2-7 provide indemnity against loss on such obligations as he may
2-8 undertake as required by Section 6 of this Article.
2-9 (d) [(c)] No person shall be eligible for a license under
2-10 this Act, who after the effective date of this Act, commits an
2-11 offense for which he is finally convicted, such offense being a
2-12 felony or misdemeanor involving moral turpitude.
2-13 Sec. 3A. EXCEPTIONS. (a) A [(d) No] corporation may
2-14 execute a bail bond without a license issued under this Act if the
2-15 corporation is [eligible to be licensed unless:]
2-16 [(1) it is] chartered or admitted to do business in
2-17 this state under the jurisdiction of the Texas Department of
2-18 Insurance[;] and
2-19 [(2) it is] qualified to write fidelity, guaranty and
2-20 surety bonds under the [Texas] Insurance Code [, as amended]. A
2-21 corporation shall present evidence of the corporation's eligibility
2-22 for the exemption under this subsection to a board on request.
2-23 (b) [(e)] Persons licensed to practice law in this state may
2-24 execute bail bonds or act as sureties for persons they actually
2-25 represent in criminal cases without being licensed under this Act,
2-26 but they are prohibited from engaging in the practices made the
2-27 basis for revocation of license under this Act and if found by the
3-1 sheriff to have violated any term of this Act, may not qualify
3-2 thereafter under the exception provided in this subsection unless
3-3 and until they come into compliance with those practices made the
3-4 basis of revocation under this Act. Notwithstanding any other
3-5 provision of this subsection, no person licensed to practice law
3-6 shall be relieved of liability on a bail bond he has executed for
3-7 the sole reason that he has not been employed to represent the
3-8 principal on the merits of the case if he has been paid a fee for
3-9 the execution of the bail bond.
3-10 SECTION 2. Sections 6(a), (b), and (f), Chapter 550, Acts of
3-11 the 63rd Legislature, Regular Session, 1973 (Article 2372p-3,
3-12 Vernon's Texas Civil Statutes), are amended to read as follows:
3-13 (a) Any person desiring to act as a bondsman in any court of
3-14 the county shall file with the County Bail Bond Board a sworn
3-15 application for a license. The application shall be in such form
3-16 and shall contain such information as the board may prescribe
3-17 including the following:
3-18 (1) The name, age, and address of the applicant[, and
3-19 if the applicant is a surety corporation, and whether chartered or
3-20 admitted to do business in this state and qualified to write
3-21 fidelity, guaranty, and surety bonds under the Texas Insurance
3-22 Code, as amended];
3-23 (2) The name under which the business shall be
3-24 conducted;
3-25 (3) The name of the place or places, including street
3-26 address and city, wherein the business is to be conducted;
3-27 (4) A statement listing any nonexempt real estate
4-1 owned by the applicant that the applicant intends to convey in
4-2 trust to the board to secure payment of any obligations incurred by
4-3 the applicant in the bonding business if the license is granted.
4-4 The following shall be included for each parcel listed:
4-5 (A) a legal description equivalent to the
4-6 description required to convey the property by general warranty
4-7 deed;
4-8 (B) current statements from each taxing unit
4-9 with power to assess or collect taxes against the property
4-10 indicating that there are no outstanding tax liens against the
4-11 property and indicating the net value of the property according to
4-12 the current appraisal made by a real estate appraiser who is a
4-13 member in good standing of a nationally recognized professional
4-14 appraiser society or trade organization that has an established
4-15 code of ethics, educational program, and professional certification
4-16 program, accompanied by a statement from the applicant agreeing to
4-17 keep all taxes paid on the property while it remains in trust;
4-18 (C) a statement of the applicant that he will
4-19 not further encumber the property after conveying it in trust to
4-20 the County Bail Bond Board, without notifying and obtaining the
4-21 permission of the board;
4-22 (D) an agreement to insure and keep current the
4-23 insurance on any improvements on the property against any damage or
4-24 destruction while the property remains in trust, in the full amount
4-25 of the value claimed for the improvements;
4-26 (E) a statement indicating whether the applicant
4-27 is married and, if so, a sworn statement from the spouse agreeing
5-1 to transfer to the board, as a part of the trust, any right, title,
5-2 or interest that the spouse may have in the property; and the
5-3 spouse must execute the deeds of trust to any community property
5-4 placed in the security deposit required under this section;
5-5 (5) A statement indicating the amount of cash or cash
5-6 value of any certificate of deposit or cashier's checks which the
5-7 applicant intends to place on deposit with the county treasurer to
5-8 secure payment of any obligations incurred by the applicant in the
5-9 bonding business if the license is granted;
5-10 (6) A complete, sworn financial statement;
5-11 (7) A declaration by the applicant that he will comply
5-12 with this Act and the rules prescribed by the board.
5-13 (b) The application of an individual for a license under
5-14 this Act shall be accompanied by letters of recommendation from
5-15 three reputable persons who have known the applicant for a period
5-16 of at least three years. [If the applicant is a corporation, the
5-17 letters shall be required for the person to be in charge of its
5-18 business in the county.] Each letter shall recommend the applicant
5-19 or person who will be in charge of its business as having a
5-20 reputation of honesty, truthfulness, fair dealing, and competency
5-21 and shall recommend that the license be granted. If the applicant
5-22 or the person to be in charge of its business has been licensed
5-23 under this Act in another county, the application shall be
5-24 accompanied by a letter from each appropriate board stating whether
5-25 or not the applicant is in good standing in the county where he is
5-26 licensed.
5-27 (f) Upon notice from the board that the application has been
6-1 tentatively approved, the applicant shall then:
6-2 (1) deposit with the county treasurer of the county in
6-3 which the license is to be issued a cashier's check, certificate of
6-4 deposit, cash, or cash equivalent in the amount indicated by the
6-5 applicant under Subdivision (5) of Subsection (a) of Section 6 of
6-6 this Act but in no event less than $50,000 except in counties with
6-7 populations of less than 250,000 persons by the most recent federal
6-8 census, the amount for applicants in said counties shall be $10,000
6-9 to be held in a special fund to be called the bail security fund;
6-10 or
6-11 (2) execute in trust to the board deeds to the
6-12 property listed by the applicant under Subdivision (4) of
6-13 Subsection (a) of Section 6 of this Act, which property shall be
6-14 valued in the amount indicated on an appraisal by a real estate
6-15 appraiser who is a member in good standing of a nationally
6-16 recognized professional appraiser society or trade organization
6-17 that has an established code of ethics, educational program, and
6-18 professional certification program, but in no event less than
6-19 $50,000 valuation, except in counties with populations of less than
6-20 250,000 persons by the most recent federal census, the amount for
6-21 applicants in said counties shall be $10,000, the condition of the
6-22 trust being that the property may be sold to satisfy any final
6-23 judgment forfeitures that may be made in bonds on which the
6-24 licensee is surety after such notice and upon such conditions as
6-25 are required by the Code of Criminal Procedure, 1965, as amended,
6-26 in bond forfeiture cases; the board shall file the deeds of trust
6-27 in the records of each county in which the property is located, and
7-1 the applicant shall pay the filing fees.
7-2 [(3) If the licensee is a corporation, it shall
7-3 furnish to the sheriff an irrevocable letter of credit as a cash
7-4 equivalent to satisfy any final judgment of forfeiture that may be
7-5 made on any bonds on which the corporate licensee is surety.]
7-6 SECTION 3. Section 7, Chapter 550, Acts of the 63rd
7-7 Legislature, Regular Session, 1973 (Article 2372p-3, Vernon's Texas
7-8 Civil Statutes), is amended to read as follows:
7-9 Sec. 7. CORPORATION AS SURETY. (a) Wherever in this Act
7-10 any person is required or authorized to give or execute any bail
7-11 bond, the [such] bail bond may be given or executed by that [such]
7-12 principal and any corporation authorized under the Insurance Code
7-13 [by law] to act as surety. If a [When any such] corporation
7-14 authorized by law to act as a surety undertakes to be a surety on a
7-15 bail bond, that [such] corporation, before being acceptable as a
7-16 surety on a bail bond, shall furnish to the sheriff an irrevocable
7-17 letter of credit as a cash equivalent to satisfy any final judgment
7-18 of forfeiture that may be made on any bonds on which the
7-19 corporation is the surety. [be required to meet the applicable
7-20 requirements prescribed by Section 6 of this Act before being
7-21 acceptable as a personal surety on a bail bond; Subsection (g) of]
7-22 Section 6(g) of this Act does not apply to a corporate surety.
7-23 (b) The certificate of authority to do business in this
7-24 state issued to a corporation by the Texas Department [State Board]
7-25 of Insurance under the [pursuant to Article 8.20,] Insurance Code
7-26 is [, as amended, shall be] conclusive evidence as to the
7-27 sufficiency of the security, the corporation's solvency, or its
8-1 credits.
8-2 (c) Any corporation which acts as a surety shall, before
8-3 executing any bail bond, first file in the office of the county
8-4 clerk of the county where such bail bond is given a power of
8-5 attorney designating and authorizing the named agent of such
8-6 corporation to execute such bail bonds by such agent. This power
8-7 of attorney shall be a valid and binding obligation of the
8-8 corporation. [A separate license is required for each agent
8-9 operating under a corporate power of attorney.]
8-10 (d) Notwithstanding any statutory requirements to the
8-11 contrary, any agent so designated and licensed or approved
8-12 hereunder for the purpose of writing bail bonds shall not be
8-13 required to be licensed as a local recording agent under [as
8-14 defined in] Article 21.14, [Texas] Insurance Code, [as amended,]
8-15 for the purpose of this Act.
8-16 (e) It shall be the duty of the board to notify promptly the
8-17 Texas Department [State Board] of Insurance of default by a
8-18 corporation on any financial obligation which it undertakes in the
8-19 county.
8-20 SECTION 4. The importance of this legislation and the
8-21 crowded condition of the calendars in both houses create an
8-22 emergency and an imperative public necessity that the
8-23 constitutional rule requiring bills to be read on three several
8-24 days in each house be suspended, and this rule is hereby suspended,
8-25 and that this Act take effect and be in force from and after its
8-26 passage, and it is so enacted.