76R13277 T
By Talton H.B. No. 883
Substitute the following for H.B. No. 883:
By Talton C.S.H.B. No. 883
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of bail bondsmen.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 2(2), Chapter 550, Acts of the 63rd
1-5 Legislature, Regular Session, 1973 (Article 2372p-3, Vernon's Texas
1-6 Civil Statutes), is amended to read as follows:
1-7 (2) "Bondsman" means any person who:
1-8 (A) for hire or for any compensation deposits
1-9 any cash or bonds or other securities to ensure the appearance in
1-10 court of a person accused of a crime;[,] or
1-11 (B) executes as surety or cosurety for any
1-12 consideration:
1-13 (i) any bond for other persons; or
1-14 (ii) a written undertaking to ensure the
1-15 appearance in court of a person accused of a crime.
1-16 SECTION 2. Section 3, Chapter 550, Acts of the 63rd
1-17 Legislature, Regular Session, 1973 (Article 2372p-3, Vernon's Texas
1-18 Civil Statutes), is amended by amending Subsections (b) and (e) to
1-19 read as follows:
1-20 (b) No individual is eligible to be licensed as a bondsman
1-21 or act as an agent for a corporate surety [for a license] under
1-22 this Act unless the individual:
1-23 (1) is a resident of this state and a citizen of the
1-24 United States;
2-1 (2) is at least 18 years of age;
2-2 (3) possesses sufficient financial resources to
2-3 provide indemnity against loss on such bonds as he may undertake as
2-4 bondsman as required by Section 6 of this Article;
2-5 (4) has been continuously employed in all phases of
2-6 the bonding business by a person licensed under this Act for a
2-7 period of at least 24 months on the date that the individual
2-8 applies for the license or applies to act as an agent for a
2-9 corporate surety, provided, however, that this Subsection shall not
2-10 apply during the first 24 months after a county creates a bail bond
2-11 board; and
2-12 (5) has no unpaid final judgment in any county arising
2-13 out of a bail bond forfeiture.
2-14 (e) Persons licensed to practice law in this state and
2-15 approved by the sheriff as having sufficient security for such
2-16 obligations as they may undertake may execute bail bonds or act as
2-17 sureties for persons they actually represent in criminal cases
2-18 without being licensed under this Act provided the aggregate total
2-19 of all outstanding bail bonds executed by such person in the county
2-20 does not exceed $250,000. If the person wishes to execute bonds
2-21 that in the aggregate exceed this total, such person must apply for
2-22 and be granted a license by the board. All persons executing bail
2-23 bonds under the exception provided by this subsection [they] are
2-24 prohibited from engaging in the practices made the basis for
2-25 revocation of license under this Act and if found by the board
2-26 [sheriff] to have violated any term of this Act, may not qualify
2-27 thereafter under the exception provided in this subsection unless
3-1 and until they come into compliance with those practices made the
3-2 basis of revocation under this Act. Notwithstanding any other
3-3 provision of this subsection, no person licensed to practice law
3-4 shall be relieved of liability on a bail bond he has executed for
3-5 the sole reason that he has not been employed to represent the
3-6 principal on the merits of the case if he has been paid a fee for
3-7 the execution of the bail bond.
3-8 SECTION 3. Section 4, Chapter 550, Acts of the 63rd
3-9 Legislature, Regular Session, 1973 (Article 2372p-3, Vernon's Texas
3-10 Civil Statutes), is amended by amending Subsections (a) and (b) and
3-11 adding Subsections (c) and (d) to read as follows:
3-12 Sec. 4. RECORDS AND COLLATERAL ACCOUNT REQUIRED OF LICENSE
3-13 HOLDER [LICENSEES]. (a) A bondsman licensed under this Act shall
3-14 maintain a record of each bond on which the bondsman appears as
3-15 surety and shall maintain a separate set of records for each county
3-16 in which the bondsman is licensed. Such records shall include the
3-17 following information for each bond executed and enforced:
3-18 (1) the style and number of the cause in which the
3-19 bond is given and the court in which it is executed;
3-20 (2) the name of the defendant released on bond;
3-21 (3) the amount of the bail set in the case; and
3-22 (4) the amount and type of security held by the
3-23 licensee, together with a statement as to whether the security was
3-24 taken for payment of a bail bond fee or for assurance of the
3-25 principal's appearance in court and the conditions under which the
3-26 security will be returned. [No security shall be held for both the
3-27 payment of a bail bond fee and assurance of the principal's
4-1 appearance in court that is in excess of the particular risk
4-2 involved.]
4-3 (b) A license holder shall produce a record required to be
4-4 maintained by this section [The records shall be submitted to the
4-5 board or a person designated by the board for inspection prior to
4-6 each renewal of the bondsman's license and shall be available] for
4-7 inspection on demand by the applicable board on the written request
4-8 of [demand by] the board or its authorized representative.
4-9 (c) A license holder shall maintain a record required by
4-10 this section for four years after final disposition of the case.
4-11 (d) A bondsman licensed under this Act must execute a
4-12 written agreement that describes the conditions under which
4-13 collateral will be refunded or retained. Collateral may not be
4-14 refunded or retained except in accordance with the written
4-15 agreement. The bondsman shall maintain as trustee a cash collateral
4-16 account separate from other bank accounts used by that bondsman for
4-17 the operation of a bonding business. The bondsman shall deposit
4-18 cash collateral into the cash collateral account not later than the
4-19 fifth banking day after the date of receipt of the cash.
4-20 SECTION 4. Section 6(b), Chapter 550, Acts of the 63rd
4-21 Legislature, Regular Session, 1973 (Article 2372p-3, Vernon's Texas
4-22 Civil Statutes), is amended to read as follows:
4-23 (b) The application of an individual for a license under
4-24 this Act shall be accompanied by a letter [letters] of
4-25 recommendation from each of three reputable persons who have known
4-26 the applicant for a period of at least three years, recommending
4-27 the applicant as having a reputation of honesty, truthfulness, fair
5-1 dealing, and competency. If the applicant is a corporation, the
5-2 letters shall be required for the agent named by the corporation in
5-3 that application [person to be in charge of its business in the
5-4 county]. For each county in which the applicant has been licensed
5-5 under this Act the applicant shall include a sworn statement by the
5-6 applicant that:
5-7 (1) states the date of each license; and
5-8 (2) states that as of the date of the license
5-9 application the applicant has no unpaid final judgments of
5-10 forfeiture in each of those counties. [Each letter shall recommend
5-11 the applicant or person who will be in charge of its business as
5-12 having a reputation of honesty, truthfulness, fair dealing, and
5-13 competency and shall recommend that the license be granted. If the
5-14 applicant or person to be in charge of its business has been
5-15 licensed under this Act in another county, the application shall be
5-16 accompanied by a letter from each appropriate board stating whether
5-17 or not the applicant is in good standing in the county where he is
5-18 licensed.]
5-19 SECTION 5. Section 15(a), (g), and (j), Chapter 550, Acts of
5-20 the 63rd Legislature, Regular Session, 1973 (Article 2372p-3,
5-21 Vernon's Texas Civil Statutes), are amended to read as follows:
5-22 (a) In a county with a board, no [No] person [required to be
5-23 licensed under this Act] may act as [execute] a bail bondsman or
5-24 advertise that he may post a bail bond within that county [bond]
5-25 without holding a license issued by that board.
5-26 (g) No person may place in a detention facility an
5-27 advertisement for a bail bondsman or a device that charges a fee to
6-1 dispense a bail bond. For purposes of this subsection, a detention
6-2 facility includes a police station, jail, prison, or other place in
6-3 which a person in the custody of a law enforcement official is
6-4 detained [advertise as a bondsman who does not hold a valid license
6-5 under this Act].
6-6 (j) A person who violates [Subsection (a) or (g) of] this
6-7 section shall be guilty of a Class A [C] misdemeanor.
6-8 SECTION 6. Subsections 15(k) and (l), Chapter 550, Acts of
6-9 the 63rd Legislature, Regular Session, 1973 (Article 2372p-3,
6-10 Vernon's Texas Civil Statutes) are repealed.
6-11 SECTION 7. Section 14A(a), Chapter 550, Acts of the 63rd
6-12 Legislature, Regular Session, 1973 (Article 2372p-3, Vernon's Texas
6-13 Civil Statutes) is amended to read as follows:
6-14 (a) Notwithstanding any law to the contrary, if [for] a
6-15 corporation [that] is in default on two [five] or more bail bonds
6-16 in a county on bonds executed by any single agent for that
6-17 corporation, that agent may not execute any further bail bonds for
6-18 that corporation while those defaults continue [act as a bail
6-19 bondsman in that county].
6-20 SECTION 8. The changes in law made by this Act to Section
6-21 15, Chapter 550, Acts of the 63rd Legislature, Regular Session,
6-22 1973 (Article 2372p-3, Vernon's Texas Civil Statutes), apply only
6-23 to an offense committed on or after the effective date of this Act.
6-24 For purposes of this section, an offense is committed before the
6-25 effective date of this Act if any element of the offense occurs
6-26 before that date. An offense committed before the effective date
6-27 of this Act is covered by the law in effect when the offense was
7-1 committed, and the former law is continued in effect for that
7-2 purpose.
7-3 SECTION 9. The importance of this legislation and the
7-4 crowded condition of the calendars in both houses create an
7-5 emergency and an imperative public necessity that the
7-6 constitutional rule requiring bills to be read on three several
7-7 days in each house be suspended, and this rule is hereby suspended.