1-1 By: Armbrister S.B. No. 739
1-2 (In the Senate - Filed February 26, 1999; March 1, 1999, read
1-3 first time and referred to Committee on Criminal Justice;
1-4 April 26, 1999, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 5, Nays 1; April 26, 1999,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 739 By: Armbrister
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the regulation of bail bondsmen; providing a criminal
1-11 penalty.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Subdivision (2), Section 2, Chapter 550, Acts of
1-14 the 63rd Legislature, Regular Session, 1973 (Article 2372p-3,
1-15 Vernon's Texas Civil Statutes), is amended to read as follows:
1-16 (2) "Bondsman" means any person who:
1-17 (A) for hire or for any compensation deposits
1-18 any cash or bonds or other securities to ensure the appearance in
1-19 court of a person accused of a crime;[,] or
1-20 (B) executes as surety or cosurety for any
1-21 consideration:
1-22 (i) any bond for other persons; or
1-23 (ii) a written undertaking to ensure the
1-24 appearance in court of a person accused of a crime.
1-25 SECTION 2. Subsections (b) and (e), Section 3, Chapter 550,
1-26 Acts of the 63rd Legislature, Regular Session, 1973 (Article
1-27 2372p-3, Vernon's Texas Civil Statutes), are amended to read as
1-28 follows:
1-29 (b) No individual is eligible to be licensed as a bondsman
1-30 or act as an agent for a corporate surety [license] under this Act
1-31 unless the individual:
1-32 (1) is a resident of this state and a citizen of the
1-33 United States;
1-34 (2) is at least 18 years of age;
1-35 (3) possesses sufficient financial resources to
1-36 provide indemnity against loss on such bonds [obligations] as the
1-37 individual [he] may undertake as bondsman as required by Section 6
1-38 of this Article;
1-39 (4) has been continuously employed in all phases of
1-40 the bonding business by a person licensed under this Act for a
1-41 period of at least 24 months on the date that the individual
1-42 applies for the license or applies to act as an agent for a
1-43 corporate surety, provided, however, that this subdivision shall
1-44 not apply during the first 24 months after a county creates a bail
1-45 bond board; and
1-46 (5) has no unpaid final judgment in any county arising
1-47 out of a bail bond forfeiture.
1-48 (e) Persons licensed to practice law in this state may
1-49 execute bail bonds or act as sureties for persons they actually
1-50 represent in criminal cases without being licensed under this Act
1-51 provided the aggregate total of all outstanding bail bonds executed
1-52 by such person in the county does not exceed $250,000. If the
1-53 person wishes to execute bonds that in the aggregate exceed this
1-54 total, such person must apply for and be granted a license by the
1-55 board. All persons executing bail bonds under the exception
1-56 provided by this subsection[, but they] are prohibited from
1-57 engaging in the practices made the basis for revocation of license
1-58 under this Act and if found by the board [sheriff] to have violated
1-59 any term of this Act, may not qualify thereafter under the
1-60 exception provided in this subsection unless and until they come
1-61 into compliance with those practices made the basis of revocation
1-62 under this Act. Notwithstanding any other provision of this
1-63 subsection, no person licensed to practice law shall be relieved of
1-64 liability on a bail bond he has executed for the sole reason that
2-1 he has not been employed to represent the principal on the merits
2-2 of the case if he has been paid a fee for the execution of the bail
2-3 bond.
2-4 SECTION 3. Section 4, Chapter 550, Acts of the 63rd
2-5 Legislature, Regular Session, 1973 (Article 2372p-3, Vernon's Texas
2-6 Civil Statutes), is amended to read as follows:
2-7 Sec. 4. RECORDS AND COLLATERAL ACCOUNT REQUIRED OF LICENSE
2-8 HOLDER [LICENSEES]. (a) A bondsman licensed under this Act shall
2-9 maintain a record of each bond on which the bondsman appears as
2-10 surety and shall maintain a separate set of records for each county
2-11 in which the bondsman is licensed. The records shall include the
2-12 following information for each bond executed and enforced:
2-13 (1) the style and number of the cause in which the
2-14 bond is given and the court in which it is executed;
2-15 (2) the name of the defendant released on bond;
2-16 (3) the amount of the bail set in the case; and
2-17 (4) the amount and type of security held by the
2-18 bondsman, together with a statement as to whether the security was
2-19 taken for payment of a bail bond fee or for assurance of the
2-20 principal's appearance in court and the conditions under which the
2-21 security will be returned. [No security shall be held for both the
2-22 payment of a bail bond fee and assurance of the principal's
2-23 appearance in court that is in excess of the particular risk
2-24 involved.]
2-25 (b) A license holder shall produce a record required to be
2-26 maintained by this section [The records shall be submitted to the
2-27 board or a person designated by the board for inspection prior to
2-28 each renewal of the bondsman's license and shall be available] for
2-29 inspection on demand by the applicable board on the written request
2-30 of [demand by] the board or its authorized representative.
2-31 (c) A license holder shall maintain a record required by
2-32 this section for four years after final disposition of the case.
2-33 (d) A bondsman licensed under this Act must execute a
2-34 written agreement that describes the conditions under which
2-35 collateral will be refunded or retained. Collateral may not be
2-36 refunded or retained except in accordance with the written
2-37 agreement. The bondsman shall maintain as trustee a cash
2-38 collateral account separate from other bank accounts used by that
2-39 bondsman for the operation of a bonding business. The bondsman
2-40 shall deposit cash collateral into the cash collateral account not
2-41 later than the fifth banking day after the date of receipt of the
2-42 cash.
2-43 SECTION 4. Subsection (b), Section 6, Chapter 550, Acts of
2-44 the 63rd Legislature, Regular Session, 1973 (Article 2372p-3,
2-45 Vernon's Texas Civil Statutes), is amended to read as follows:
2-46 (b) The application of an individual for a license under
2-47 this Act shall be accompanied by a letter [letters] of
2-48 recommendation from each of three reputable persons who have known
2-49 the applicant for a period of at least three years recommending the
2-50 applicant as having a reputation of honesty, truthfulness, fair
2-51 dealing, and competency. If the applicant is a corporation, the
2-52 letters shall be required for the agent named by the corporation in
2-53 that application [person to be in charge of its business in the
2-54 county]. For each county in which the applicant has been licensed
2-55 under this Act the applicant shall include a sworn statement by the
2-56 applicant that:
2-57 (1) states the date of each license; and
2-58 (2) states that as of the date of the license
2-59 application the applicant has no unpaid final judgments of
2-60 forfeiture in each of those counties. [Each letter shall recommend
2-61 the applicant or person who will be in charge of its business as
2-62 having a reputation of honesty, truthfulness, fair dealing, and
2-63 competency and shall recommend that the license be granted. If the
2-64 applicant or the person to be in charge of its business has been
2-65 licensed under this Act in another county, the application shall be
2-66 accompanied by a letter from each appropriate board stating whether
2-67 or not the applicant is in good standing in the county where he is
2-68 licensed.]
2-69 SECTION 5. Subsections (a), (g), and (j), Section 15,
3-1 Chapter 550, Acts of the 63rd Legislature, Regular Session, 1973
3-2 (Article 2372p-3, Vernon's Texas Civil Statutes), are amended to
3-3 read as follows:
3-4 (a) In a county with a board, no [No] person [required to be
3-5 licensed under this Act] may act as [execute] a bail bondsman or
3-6 advertise that the person may post a bail bond within that county
3-7 [bond] without holding a license issued by that board.
3-8 (g) No person may place in a detention facility an
3-9 advertisement for a bail bondsman or a device that charges a fee to
3-10 dispense a bail bond. For purposes of this subsection, a detention
3-11 facility includes a police station, jail, prison, or other place in
3-12 which a person in the custody of a law enforcement official is
3-13 detained [advertise as a bondsman who does not hold a valid license
3-14 under this Act].
3-15 (j) A person who violates [Subsection (a) or (g) of] this
3-16 section shall be guilty of a Class A [C] misdemeanor.
3-17 SECTION 6. Subsection (a), Section 14A, Chapter 550, Acts of
3-18 the 63rd Legislature, Regular Session, 1973 (Article 2372p-3,
3-19 Vernon's Texas Civil Statutes), is amended to read as follows:
3-20 (a) Notwithstanding any law to the contrary, if a
3-21 corporation [that] is in default on two [five] or more bail bonds
3-22 in a county on bonds executed by any single agent for that
3-23 corporation, that agent may not execute any further bail bonds for
3-24 that corporation while those defaults continue [act as a bail
3-25 bondsman in that county].
3-26 SECTION 7. Subsections (k) and (l), Section 15, Chapter 550,
3-27 Acts of the 63rd Legislature, Regular Session, 1973 (Article
3-28 2372p-3, Vernon's Texas Civil Statutes), are repealed.
3-29 SECTION 8. The changes in law made by this Act to Section
3-30 15, Chapter 550, Acts of the 63rd Legislature, Regular Session,
3-31 1973 (Article 2372p-3, Vernon's Texas Civil Statutes), apply only
3-32 to an offense committed on or after the effective date of this Act.
3-33 For purposes of this section, an offense is committed before the
3-34 effective date of this Act if any element of the offense occurs
3-35 before that date. An offense committed before the effective date
3-36 of this Act is covered by the law in effect when the offense was
3-37 committed, and the former law is continued in effect for that
3-38 purpose.
3-39 SECTION 9. The importance of this legislation and the
3-40 crowded condition of the calendars in both houses create an
3-41 emergency and an imperative public necessity that the
3-42 constitutional rule requiring bills to be read on three several
3-43 days in each house be suspended, and this rule is hereby suspended.
3-44 * * * * *