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. 3-48 * * * * *