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.