1-1     By:  Sibley                                            S.B. No. 627

 1-2           (In the Senate - Filed February 17, 1997; February 20, 1997,

 1-3     read first time and referred to Committee on State Affairs;

 1-4     March 26, 1997, reported adversely, with favorable Committee

 1-5     Substitute by the following vote:  Yeas 11, Nays 1; March 26, 1997,

 1-6     sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 627                   By:  Nelson

 1-8                            A BILL TO BE ENTITLED

 1-9                                   AN ACT

1-10     relating to certification of bail bondsmen by the Texas Department

1-11     of Licensing and Regulation; providing a penalty.

1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-13           SECTION 1.  Title 44, Revised Statutes, is amended by adding

1-14     Article 2372p-4 to read as follows:

1-15           Art. 2372p-4.  STATE CERTIFICATION OF BAIL BONDSMEN

1-16           Sec. 1.  DEFINITIONS.  (a)  In this article:

1-17                 (1)  "Commissioner" means the commissioner of licensing

1-18     and regulation.

1-19                 (2)  "Department" means the Texas Department of

1-20     Licensing and Regulation.

1-21                 (3)  "Person" includes an individual designated to act

1-22     as an agent of a corporation licensed to execute bail bonds for

1-23     compensation.

1-24           (b)  In addition to the definitions under Subsection (a) of

1-25     this section, the definitions adopted under Section 2, Chapter 550,

1-26     Acts of the 63rd Legislature, Regular Session, 1973 (Article

1-27     2372p-3, Vernon's Texas Civil Statutes), apply to this article.

1-28           Sec. 2.  CERTIFICATE OF REGISTRATION REQUIRED; PENALTY.

1-29     (a)  In addition to any other legal requirements, a person may not

1-30     execute a bail bond in any county of this state as a surety for

1-31     compensation unless the person holds a certificate of registration

1-32     issued under this article.  A person is entitled to a certificate

1-33     of registration if the person:

1-34                 (1)  passes the certification examination required

1-35     under Section 4 of this article; and

1-36                 (2)  pays all required fees.

1-37           (b)  Notwithstanding Subsection (a) of this section, a person

1-38     is exempt from the certification examination requirement if the

1-39     person:

1-40                 (1)  holds a license under Chapter 550, Acts of the

1-41     63rd Legislature, Regular Session, 1973 (Article 2372p-3, Vernon's

1-42     Texas Civil Statutes), that was issued before September 1, 1997;

1-43                 (2)  held a license under Chapter 550, Acts of the 63rd

1-44     Legislature, Regular Session, 1973 (Article 2372p-3, Vernon's Texas

1-45     Civil Statutes), that was issued before September 1, 1995, if:

1-46                       (A)  that license was never revoked or suspended

1-47     before the license expired; and

1-48                       (B)  renewal of that license was not refused by

1-49     the department; or

1-50                 (3)  acted as a surety on a bond for compensation in a

1-51     county in which a license to operate as a bondsman was not required

1-52     before September 1, 1997.

1-53           (c)  A person who is exempt under Subsection (b) of this

1-54     section may obtain a certificate of registration from the

1-55     department by filing a sworn statement that demonstrates to the

1-56     satisfaction of the commissioner that the person is eligible for

1-57     the exemption claimed.

1-58           (d)  A certificate of registration issued under this article

1-59     expires on the second anniversary of the date of issuance of the

1-60     certificate.  The certificate is not transferable.

1-61           (e)  A person commits an offense if the person operates as a

1-62     bondsman without a certificate of registration issued under this

1-63     article.  An offense under this subsection is a Class A

1-64     misdemeanor.

 2-1           Sec. 3.  EXEMPTION.  This article does not apply to a person

 2-2     licensed to practice law by the Supreme Court of Texas.

 2-3           Sec. 4.  CERTIFICATION EXAMINATION; REQUIREMENTS.

 2-4     (a)  Except as otherwise provided by this article, each person who

 2-5     desires to operate as a bondsman in this state must pass the

 2-6     certification examination required by this section.

 2-7           (b)  The certification examination must cover topics involved

 2-8     in the operation of a bail bond business.  The department shall

 2-9     approve, administer, and grade the examination.

2-10           (c)  An applicant shall pay a $100 examination fee to the

2-11     department to cover the costs of administering the examination.

2-12           (d)  The department shall offer the examination at least

2-13     semiannually.

2-14           (e)  A person who fails the examination is entitled to take a

2-15     subsequent examination on the payment of an additional examination

2-16     fee.  However, the person must wait a minimum of three months

2-17     before taking a subsequent examination.  If a person fails the

2-18     examination twice, the person may not retake the examination before

2-19     the anniversary of the date of the second examination.

2-20           (f)  A dispute concerning the grading of an examination is

2-21     governed by the contested case provisions of Chapter 2001,

2-22     Government Code.  Appeal of a decision regarding the dispute to a

2-23     district court may be made as provided by Section 11, Chapter 550,

2-24     Acts of the 63rd Legislature, Regular Session, 1973 (Article

2-25     2372p-3, Vernon's Texas Civil Statutes).

2-26           Sec. 5.  CONTINUING EDUCATION REQUIREMENTS.  (a)  To renew

2-27     the certificate of registration, a bondsman must annually complete

2-28     five hours of continuing education courses through a program

2-29     qualified under Subsection (b) of this section.

2-30           (b)  The department shall certify qualified continuing

2-31     education programs.  To be eligible for certification, the course

2-32     offered by a program must cover all major topics involved in the

2-33     operation of a bail bond business.

2-34           (c)  A fee charged by a provider of continuing education

2-35     shall be retained by the provider to cover the cost of presenting

2-36     the program.  The fee must be paid in full by the participant and

2-37     may not be paid for or waived by the provider.

2-38           (d)  Each provider of continuing education shall provide the

2-39     department with a list that:

2-40                 (1)  identifies each person who participated in the

2-41     continuing education program;

2-42                 (2)  states the number of hours of instruction actually

2-43     attended by that participant; and

2-44                 (3)  states the fee paid by the participant for the

2-45     continuing education program.

2-46           Sec. 6.  CERTIFICATE RENEWAL.  A person who holds a

2-47     certificate of registration issued under this article is entitled

2-48     to renew the certificate if the person:

2-49                 (1)  demonstrates to the satisfaction of the

2-50     commissioner compliance with the continuing education requirements

2-51     imposed under Section 5 of this article;

2-52                 (2)  pays any required renewal fee; and

2-53                 (3)  complies with any other requirements for renewal.

2-54           Sec. 7.  ADVISORY COUNCIL.  (a)  The bail bondsman advisory

2-55     council is established as an advisory committee to the department.

2-56           (b)  The advisory council is composed of nine members

2-57     appointed by the commissioner as provided by this section.

2-58           (c)  The commissioner shall appoint the members as follows:

2-59                 (1)  one member shall be an assistant attorney general

2-60     for this state;

2-61                 (2)  one member shall be an active judge in this state

2-62     with experience in criminal law matters;

2-63                 (3)  one member shall be a member of the legislature of

2-64     this state;

2-65                 (4)  one member shall be an elected prosecuting

2-66     attorney in this state;

2-67                 (5)  one member shall be a sheriff in this state;

2-68                 (6)  two members shall be individuals each of whom is

2-69     licensed as an agent for a corporation that acts as a surety and is

 3-1     not licensed as a bondsman; and

 3-2                 (7)  two members shall be individuals each of whom is

 3-3     licensed to execute bail bonds as a noncorporate surety.

 3-4           (d)  A member of the advisory council serves a two-year term

 3-5     or until the member's successor is appointed.  A member who is a

 3-6     public official serves for two years or until the member leaves the

 3-7     position that qualifies the member for service.

 3-8           (e)  A member of the advisory council is not entitled to

 3-9     compensation for service on the committee but is entitled to

3-10     reimbursement for reasonable travel expenses at the rate provided

3-11     for state employees in the General Appropriations Act.

3-12           (f)  The advisory council shall:

3-13                 (1)  advise the commissioner on the contents of the

3-14     certification examination; and

3-15                 (2)  assist the department in the evaluation of

3-16     continuing education programs.

3-17           (g)  The advisory council may:

3-18                 (1)  recommend standards for continuing education

3-19     programs, including standards relating to the qualifications of

3-20     program providers and instructors, and the level of program fees;

3-21                 (2)  recommend topics to be covered in a continuing

3-22     education course; and

3-23                 (3)  propose rules for adoption by the commissioner to

3-24     implement the provisions of this article.

3-25           (h)  The advisory council is not subject to Article 6252-33,

3-26     Revised Statutes.

3-27           SECTION 2.  (a)  Except as otherwise provided by this

3-28     section, this Act takes effect September 1, 1997.

3-29           (b)  A person is not required to hold a certificate of

3-30     registration issued under Article 2372p-4, Revised Statutes, as

3-31     added by this Act, until January 1, 1998.

3-32           (c)  The commissioner of licensing and regulation shall adopt

3-33     rules as necessary to implement Article 2372p-4, Revised Statutes,

3-34     as added by this Act, not later than December 1, 1997.                    

3-35           (d)  A person who, on September 1, 1997, holds a license

3-36     issued by a county bail bond board under Chapter 550, Acts of the

3-37     63rd Legislature, Regular Session, 1973 (Article 2372p-3, Vernon's

3-38     Texas Civil Statutes), and receives a certificate of registration

3-39     under Article 2372p-4, Revised Statutes, as added by this Act,

3-40     without compliance with the examination requirements imposed under

3-41     that article must comply with the continuing education requirements

3-42     imposed under that article not later than September 1, 1998.

3-43           SECTION 3.  The importance of this legislation and the

3-44     crowded condition of the calendars in both houses create an

3-45     emergency and an imperative public necessity that the

3-46     constitutional rule requiring bills to be read on three several

3-47     days in each house be suspended, and this rule is hereby suspended.

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