By: Sibley S.B. No. 627 A BILL TO BE ENTITLED AN ACT 1-1 relating to certification of bail bondsmen by the Texas Department 1-2 of Licensing and Regulation; providing a penalty. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Title 44, Revised Statutes, is amended by adding 1-5 Article 2372p-4 to read as follows: 1-6 Art. 2372p-4. STATE CERTIFICATION OF BAIL BONDSMEN 1-7 Sec. 1. DEFINITIONS. (a) In this article: 1-8 (1) "Commissioner" means the commissioner of licensing 1-9 and regulation. 1-10 (2) "Department" means the Texas Department of 1-11 Licensing and Regulation. 1-12 (3) "Person" includes an individual designated to act 1-13 as an agent of a corporation licensed to execute bail bonds for 1-14 compensation. 1-15 (b) In addition to the definitions under Subsection (a) of 1-16 this section, the definitions adopted under Section 2, Chapter 550, 1-17 Acts of the 63rd Legislature, Regular Session, 1973 (Article 1-18 2372p-3, Vernon's Texas Civil Statutes), apply to this article. 1-19 Sec. 2. CERTIFICATE OF REGISTRATION REQUIRED; PENALTY. 1-20 (a) In addition to any other legal requirements, a person may not 1-21 execute a bail bond in any county of this state as a surety for 1-22 compensation unless the person holds a certificate of registration 1-23 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: 2-14 (A) that license was never revoked or suspended 2-15 before the license expired; and 2-16 (B) renewal of that license was not refused by 2-17 the department; or 2-18 (3) acted as a surety on a bond for compensation in a 2-19 county in which a license to operate as a bondsman was not required 2-20 before September 1, 1997. 2-21 (c) A person who is exempt under Subsection (b) of this 2-22 section may obtain a certificate of registration from the 2-23 department by filing a sworn statement that demonstrates to the 2-24 satisfaction of the commissioner that the person is eligible for 2-25 the exemption claimed. 3-1 (d) A certificate of registration issued under this article 3-2 expires on the second anniversary of the date of issuance of the 3-3 certificate. The certificate is not transferable. 3-4 (e) A person commits an offense if the person operates as a 3-5 bondsman without a certificate of registration issued under this 3-6 article. An offense under this subsection is a Class A 3-7 misdemeanor. 3-8 Sec. 3. EXEMPTION. This article does not apply to a person 3-9 licensed to practice law by the Supreme Court of Texas. 3-10 Sec. 4. CERTIFICATION EXAMINATION; REQUIREMENTS. 3-11 (a) Except as otherwise provided by this article, each person who 3-12 desires to operate as a bondsman in this state must pass the 3-13 certification examination required by this section. 3-14 (b) The certification examination must cover topics involved 3-15 in the operation of a bail bond business. The department shall 3-16 approve, administer, and grade the examination. 3-17 (c) An applicant shall pay a $100 examination fee to the 3-18 department to cover the costs of administering the examination. 3-19 (d) The department shall offer the examination at least 3-20 semiannually. 3-21 (e) A person who fails the examination is entitled to take a 3-22 subsequent examination on the payment of an additional examination 3-23 fee. However, the person must wait a minimum of three months 3-24 before taking a subsequent examination. If a person fails the 3-25 examination twice, the person may not retake the examination before 4-1 the anniversary of the date of the second examination. 4-2 (f) A dispute concerning the grading of an examination is 4-3 governed by the contested case provisions of Chapter 2001, 4-4 Government Code. Appeal of a decision regarding the dispute to a 4-5 district court may be made as provided by Section 11, Chapter 550, 4-6 Acts of the 63rd Legislature, Regular Session, 1973 (Article 4-7 2372p-3, Vernon's Texas Civil Statutes). 4-8 Sec. 5. CONTINUING EDUCATION REQUIREMENTS. (a) To renew 4-9 the certificate of registration, a bondsman must annually complete 4-10 five hours of continuing education courses through a program 4-11 qualified under Subsection (b) of this section. 4-12 (b) The department shall certify qualified continuing 4-13 education programs. To be eligible for certification, the course 4-14 offered by a program must cover all major topics involved in the 4-15 operation of a bail bond business. 4-16 (c) A fee charged by a provider of continuing education 4-17 shall be retained by the provider to cover the cost of presenting 4-18 the program. The fee must be paid in full by the participant and 4-19 may not be paid for or waived by the provider. 4-20 (d) Each provider of continuing education shall provide the 4-21 department with a list that: 4-22 (1) identifies each person who participated in the 4-23 continuing education program; 4-24 (2) states the number of hours of instruction actually 4-25 attended by that participant; and 5-1 (3) states the fee paid by the participant for the 5-2 continuing education program. 5-3 Sec. 6. CERTIFICATE RENEWAL. A person who holds a 5-4 certificate of registration issued under this article is entitled 5-5 to renew the certificate if the person: 5-6 (1) demonstrates to the satisfaction of the 5-7 commissioner compliance with the continuing education requirements 5-8 imposed under Section 5 of this article; 5-9 (2) pays any required renewal fee; and 5-10 (3) complies with any other requirements for renewal. 5-11 Sec. 7. ADVISORY COUNCIL. (a) The bail bondsman advisory 5-12 council is established as an advisory committee to the department. 5-13 (b) The advisory council is composed of nine members 5-14 appointed by the commissioner as provided by this section. 5-15 (c) The commissioner shall appoint the 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 an active judge in this state 5-19 with 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 an elected prosecuting 5-23 attorney in this state; 5-24 (5) one member shall be a sheriff in this state; 5-25 (6) two members shall be individuals each of whom is 6-1 licensed as an agent for a corporation that acts as a surety and is 6-2 not licensed as a bondsman; and 6-3 (7) two members shall be individuals each of whom is 6-4 licensed to execute bail bonds as a noncorporate surety. 6-5 (d) A member of the advisory council serves a two-year term 6-6 or until the member's successor is appointed. A member who is a 6-7 public official serves for two years or until the member leaves the 6-8 position that qualifies the member for service. 6-9 (e) A member of the advisory council is not entitled to 6-10 compensation for service on the committee but is entitled to 6-11 reimbursement for reasonable travel expenses at the rate provided 6-12 for state employees in the General Appropriations Act. 6-13 (f) The advisory council shall: 6-14 (1) advise the commissioner on the contents of the 6-15 certification examination; and 6-16 (2) assist the department in the evaluation of 6-17 continuing education programs. 6-18 (g) The advisory council may: 6-19 (1) recommend standards for continuing education 6-20 programs, including standards relating to the qualifications of 6-21 program providers and instructors, and the level of program fees; 6-22 (2) recommend topics to be covered in a continuing 6-23 education course; and 6-24 (3) propose rules for adoption by the commissioner to 6-25 implement the provisions of this article. 7-1 (h) The advisory council is not subject to Article 6252-33, 7-2 Revised Statutes. 7-3 SECTION 2. (a) Except as otherwise provided by this 7-4 section, this Act takes effect September 1, 1997. 7-5 (b) 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 (c) 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 (d) 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.