SRC-JJJ S.B. 739 76(R) BILL ANALYSIS
Senate Research Center S.B. 739
76R3050 MXM-FBy: Armbrister
Criminal Justice
3/23/1999
As Filed
DIGEST
Currently, no experience or financial security is necessary for a person to
enter the bail bonding business. S.B. 739 would require persons seeking
to enter the bail bonding business to obtain a license and would require
bondsmen to establish a separate cash collateral account.
PURPOSE
As proposed, S.B. 739 sets forth provisions regarding the regulation of
bail bondsmen.
RULEMAKING AUTHORITY
This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Article 2372p-3, V.T.C.S., as follows:
Art. 2372p-3. LICENSING AND REGULATION OF BAIL BONDSMEN
Sec. 1. New heading: DECLARATION OF POLICY; APPLICATION. Provides that
Sections 2 through 13 and 16 of this Act do not apply in a county with a
population of less than 110,000 unless a County Bail Bond Board (board) has
been created in that county. Makes a conforming change.
Sec. 2. DEFINITIONS. Defines "agent for a corporate surety," "applicant,"
"bondsman," "corporate surety," "final judgment of forfeiture," "individual
surety," and "license holder." Redefines "board" and "bond." Deletes the
definition for "company."
Sec. 3. New heading: LICENSING REQUIREMENTS AND ELIGIBILITY. Prohibits a
person from acting as a bondsman in a county subject to this Act other than
a bondsman licensed in that county. Provides that an individual is not
eligible for a license as an individual surety or as an agent for a
corporate surety unless the individual meets certain requirements.
Provides that a corporation is not eligible to be licensed as a corporate
surety unless the corporation meets certain conditions. Deletes text
regarding provisions applying to the execution of certain bail bonds, and
text regarding the creation of the board and the designation of its
members. Deletes text regarding ineligibility for a license under this
act, for a person finally convicted of a felony or misdemeanor involving
moral turpitude. Deletes existing Subsection (e) regarding the
authorization of persons licensed to practice law in this state. Makes
conforming and nonsubstantive changes.
Sec. 4. New heading: RECORDS AND COLLATERAL ACCOUNT REQUIRED OF LICENSE
HOLDER. Requires an individual licensed under this Act to maintain a
record of each bond the individual executes. Requires the individual to
separately maintain the records for each county in which the individual is
licensed Sets forth requirements to be included in the information for each
bond the individual has executed. Requires a license holder to produce a
record required to be maintained by this section for inspection by the
applicable board on the written request, rather than demand, of the board
or its representative. Requires a license holder to maintain a required
record in a convenient place, and to be maintained for at least four years
after the disposition of the case. Requires a licensed individual to
maintain as trustee a cash collateral account separate from other accounts
used for the operation of the bonding business. Requires the individual to
execute a written agreement that describes the conditions under which
collateral will be refunded or retained. Requires the individual to
deposit cash collateral into the collateral account not later than the
first banking day after the date of receipt of cash. Prohibits a
disbursement from being made from the cash collateral account for a purpose
other than as a refund of the collateral on final disposition of the case
for which the collateral was posted or on final judgment of forfeiture.
Prohibits cash collateral from being retained except in accordance with the
terms of the written agreement.
Sec. 5. COUNTY BAIL BOND BOARD. Provides that a board consists of certain
persons. Requires a board to annually elect one of its members as presiding
officer. Authorizes the presiding officer to vote on any matter pending
before the board. Requires the board to hold its initial meeting not later
than the 60th day after the date on which the board is created, and at
least once a month thereafter. Provides that four members of a board
constitute a quorum. Requires board action to have a majority vote by the
members present and voting. Requires each rule or action of a board passed
under this Act to be posted at certain locations for a period of 10 days
prior to their effective date. Requires a board to post a proposed rule at
specified locations for a period of 30 days before the date of
consideration and adoption of a rule by the board. Sets forth powers and
duties of a board. Sets forth prohibitions regarding requirements,
inquiries, and limits of a board. Requires each fee collected by a board
to be deposited in the county's general fund for use in the administration
and enforcement of this Act. Authorizes the board to receive disbursements
from the general fund for reasonable expenses incurred, but service on the
board is considered an additional duty of office, and the members are not
entitled to compensation for the service. Entitles a member to
reimbursement for any expense actually incurred as a result of service.
Deletes text regarding requirements for board members, and certain
information concerning a board's powers and duties. Makes conforming and
nonsubstantive changes.
Sec. 6. APPLICATION AND ISSUANCE OF LICENSE. Requires a person desiring
to act as a bondsman to file an application for a license. Requires the
application to be on a prescribed form and accompanied with a $500
application fee. Sets forth requirements for the application regarding an
individual applying for a license as an individual surety. Sets forth
requirements for the application regarding an applicant that is a
corporation applying for a license as a corporate surety. Requires a
designated law enforcement officer to take a photograph and a set of
fingerprints of each individual applicant. Requires a hearing to be held,
after the required inquiry, not earlier than the 30th day or later than the
60th day after the date on which the applicant files the application.
Provides that if no grounds for rejecting the application exists, a license
is issued and is valid for 24 months after the date of the order approving
the license application. Establishes that if there are grounds for denial,
a written order specifying the grounds will be entered. Requires an order
granting or denying a license to be signed by each member of the board.
Requires a license holder, upon tentative approval, to perfect the license
by filing a required security deposit within 90 days after the date of the
order tentatively approving the license. Provides that the temporary
license is rescinded if the security deposit is not paid within the
specified period and the applicant must apply again. Establishes that in
order to perfect a corporate surety's license does not require security
deposit. Requires an applicant for an individual surety license or for a
license as an agent for a corporate surety, upon notice that an application
has been approved, to perfect the license by depositing with the county
treasurer of the county in which the license is to be issued certain funds
in the indicated amount. Prohibits the deposit from being less than a
certain amount with regards to the county's population. Requires the
county treasurer to hold the deposit in a special bail security fund.
Authorizes an applicant for an individual surety to perfect the license by
conveying in trust deeds to the property listed in the application.
Requires property to be valued in the amount indicated on an appraisal made
by a member in good standing of a nationally recognized professional
appraiser society or trade organization. Prohibits the estimate from being
less than a certain amount per county population. Requires the board to
file the deeds of trust in the records of each county, and requires the
license holder to pay the filing fees. Deletes text regarding information
required on an application for a license as an individual surety; text
regarding the applicant under certain sections; text regarding a
corporation furnishing a letter of credit to satisfy a judgment of
forfeiture; text prohibiting a bondsman from executing bonds exceeding a
certain value, and factors that determine a bondsman's limit due to the
amount of security held. Makes conforming and nonsubstantive changes.
Sec. 7. REAPPRAISAL OF REAL PROPERTY. Makes conforming changes.
Sec. 8. INDIVIDUAL AS SURETY. Authorizes a board to temporarily bar an
individual surety from executing a bail bond in that board's county if
certain conditions exist. Requires a designated person to maintain a
current list regarding certain transactions for each individual surety.
Requires an officer, when an individual surety exceeds either the set
limits or fails to satisfy a final judgment within 30 days, to notify each
officer in the county authorized to accept a bail bond that the officer may
not accept bonds from the individual surety until the individual complies
with this section. Authorizes the individual surety to comply with the
prescribed limits by posting additional security. Authorizes an individual
surety whose license is in good standing to increase the individual
surety's ratio limits at any time by posting additional security with the
county. Prohibits an individual from holding more than one license as an
individual surety within a county. Prohibits an individual surety from
conducting a bonding business under more than one name.
Sec. 9. New heading: CORPORATE AS SURETY; AGENTS FOR CORPORATE SURETY.
Provides that the certificate of authority to do business in this state
issued to a corporation by the Texas Department of Insurance under the
Insurance Code is conclusive evidence as to the sufficiency of the
corporation's security, solvency, or credit. Provides that a board or
local official is prohibited from requiring certain financial conditions of
the corporation. Requires a corporation to disclose in the power of
attorney any limit that the corporation imposes on an agent's authority to
act for it in that county. Prohibits a board from refusing to issue a
license to a corporation or its agent because of disclosure of a limit on
the agent's authority. Requires each named agent to apply for and be
issued a license in that county as an agent for that corporate surety,
before executing a bail bond. Authorizes a corporate surety to authorize
more than one agent to execute bail bonds in that county. Authorizes each
agent to do business under an assumed name different from that of another
agent. Provides that a corporation is not assumed to be doing business
under an assumed name. Authorizes a corporate surety to be temporarily
barred from executing a bail bond in a county for certain reasons.
Provides that the agent's right to execute a further bond is restored on
payment of that judgment of forfeiture. Prohibits an individual from
holding more than one license for a corporate surety within a county.
Deletes text regarding a corporation meeting requirements for executing
bail bonds; and regarding separate licensing for power of attorney. Makes
conforming and nonsubstantive changes.
Sec. 10. EXPIRATION AND RENEWAL OF LICENSE. Establishes that a license
expires after 24 months, and may be renewed by filing an application with
the board at least 30 days before the day on which the license expires.
Requires the board to renew the license by written order unless there are
grounds for refusal. Requires the board to state the reason for refusal in
the written order refusing to renew the license. Provides that a renewed
license expires 24 months after the date of renewal. Requires each license
to show the license number and expiration date. Authorizes a license
holder who fails to timely apply for a renewal to apply using the original
requirements. Deletes text regarding renewal of a license; regarding fees
and disbursement from the general fund; and regarding information on a
license.
Sec. 11. New heading: REFUSAL, SUSPENSION, AND REVOCATION OF A LICENSE.
Authorizes the board, after notice and hearing, to refuse to issue or
renew, suspend, or revoke a license on a written finding that an applicant
or license holder met certain conditions. Deletes text regarding reasons to
issue or renew, suspend, or revoke a license. Makes conforming and
nonsubstantive changes.
Sec. 12. PROCEDURE FOR SUSPENSION OR REVOCATION OF LICENSE. Requires a
notice for revocation or suspension to include a copy of the sworn
complaint or written request by a court. Prohibits a hearing under this
section from being closed to the public. Prohibits a board from suspending
or revoking an individual surety's license if the individual is temporarily
barred from executing bonds. Prohibits a license from being suspended or
revoked without a hearing and presentation and a preponderance of the
evidence. Sets forth the method by which the board is authorized to
suspend or revoke a license. Deletes text regarding the process of
suspension and revocation of a license. Makes conforming and
nonsubstantive changes.
Sec. 13. COURT REVIEW. Provides that an original or renewal license
approved by the district court after an appeal expires 24 months after the
date of the court's final judgment. Authorizes the district court to enjoin
a board order during the appeal for good cause, but a board order is not
stayed by filing an appeal. Authorizes the district court to award
attorney's fees and costs to an applicant or license holder who prevails on
appeal. Authorizes an applicant or license holder to file a declaratory
judgment action to determine the validity of a board rule. Requires the
action to be filed in certain courts, and authorizes the district court to
award attorney's fees and costs to the prevailing party. Authorizes a
board to be served by serving its presiding officer. Makes conforming
changes.
Sec. 14. New heading: SURRENDER OF PRINCIPAL BY THE SURETY. Requires the
clerk of the court to immediately issue a capias warrant that authorizes a
peace officer, or private investigator licensed in the state to arrest and
return the principal to custody of the sheriff of the county in which the
cause is pending. Authorizes the principal to file a written motion with
the court requesting a hearing to determine the matter, if the principal
considers the reason for surrender to be without reasonable cause. Deletes
text regarding certain fees and conditions under which the court is unable
to commit a principal during an appeal.
Sec. 15. New heading: TERMINATION AND SETTLEMENT OF LIABILITY ON BONDS.
Provides that the surety on an appearance bond in a criminal case is not
liable for the bond on dismissal, acquittal, or finding of guilt on a
charge made the basis of the bond. Prohibits a court from requiring a
surety to continue as a surety during an appeal of a case. Provides that if
a case is appealed without the surety's approval, the surety is discharged
from liability on the bond. Establishes that this subsection does not
deny a principal the right to an appeal bond. Authorizes the attorney for
the state to settle the liability of a principal and a surety on the bond
for an amount less than that stated in the bond, before final judgment on a
forfeiture of an appearance bond. Requires the attorney for the state to
set the settlement in a reasonable amount in relation to the fact and
circumstances. Deletes text regarding forfeiture of appearance before
final judgment, conditions relating after forfeiture to refund for the
bondsman, and absolving of liability for the surety upon disposition.
Sec. 16. New heading: ACCEPTANCE OF BONDS. Prohibits a county officer
from refusing to accept a bail bond in legally sufficient form that has
been executed by a license holder, after perfection of a license. Provides
that this license does not apply to a license holder barred from executing
a bail bond. Prohibits a county officer from requiring a license holder to
be physically present to post a bail bond with that officer. Authorizes
certain individuals to require that a license holder designate in writing
employees authorized to deliver a bond to the officer and may require that
a designated employee display photo identification in a form acceptable to
the officer or board. Deletes text regarding a sheriff approving or
accepting a bond posted by a licensed bondsman; regarding the effect of
default by corporation; and regarding a corporation that may be considered
in default.
Sec. 17. ACTS SUBJECT TO PENALTY. Provides that no person is authorized
to act as a bail bondsman or advertise as a bail bondsman without holding a
license issued by the board, in a county with no board. Sets forth certain
persons who are prohibited from accepting or receiving certain transactions
from a bondsman. Prohibits a person from soliciting bail bond business in
certain specified areas. Prohibits a person from placing in a detention
facility an advertisement for a bail bondsman or a device that dispenses a
bail bond in certain specified facilities. Deletes text regarding a
bondsman keeping a copy of a receipt. Makes conforming and nonsubstantive
changes.
SECTION 2. Effective date: September 1, 1999.
Makes application of this Act prospective.
SECTION 3. Emergency clause.