77R12289 E
By Hinojosa H.B. No. 2192
Substitute the following for H.B. No. 2192:
By Hinojosa C.S.H.B. No. 2192
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of bail bond sureties; providing a
1-3 penalty.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 1704.001(2), Occupations Code, is amended
1-6 to read as follows:
1-7 (2) "Bail bond surety" means a person who for
1-8 compensation:
1-9 (A) executes a bail bond as a surety or cosurety
1-10 for another person; or
1-11 (B) deposits a bond or other security other than
1-12 cash to ensure the appearance in court of a person accused of a
1-13 crime [for compensation].
1-14 SECTION 2. Subchapter C, Chapter 1704, Occupations Code, is
1-15 amended by adding Section 1704.109 to read as follows:
1-16 Sec. 1704.109. SOLICITATION AND ADVERTISEMENT. A board by
1-17 rule may regulate solicitations or advertisements by or on behalf
1-18 of license holders to protect the public from harassment, fraud, or
1-19 misrepresentation.
1-20 SECTION 3. Section 1704.152, Occupations Code, is amended by
1-21 amending Subsection (a) and adding Subsection (c) to read as
1-22 follows:
1-23 (a) To be eligible for a license under this chapter, an
1-24 individual, including an agent designated by a corporation in an
2-1 application, must:
2-2 (1) be a resident of this state and a citizen of the
2-3 United States;
2-4 (2) be at least 18 years of age; [and]
2-5 (3) possess the financial resources required to comply
2-6 with Section 1704.160, unless the individual is acting only as
2-7 agent for a corporation holding a license under this chapter; and
2-8 (4) have, in the two years preceding the date a
2-9 license application is filed:
2-10 (A) at least one year of continuous work
2-11 experience in the bail bond business; and
2-12 (B) completed at least eight hours of continuing
2-13 legal education in criminal law courses or bail bond law courses
2-14 that are approved by the State Bar of Texas and that are offered by
2-15 an institution of higher education accredited by the state.
2-16 (c) Subsection (a)(4) does not apply to the issuance of an
2-17 original license:
2-18 (1) in a county before the first anniversary of the
2-19 date a board is created in the county; or
2-20 (2) to an individual who applies to operate the bail
2-21 bond business of a license holder who has died if the individual is
2-22 related to the decedent within the first degree by consanguinity or
2-23 is the decedent's surviving spouse.
2-24 SECTION 4. Section 1704.154, Occupations Code, is amended by
2-25 amending Subsections (b) and (c) and adding Subsections (d) and (e)
2-26 to read as follows:
2-27 (b) The application must:
3-1 (1) be in a form and contain the information
3-2 prescribed by the board;
3-3 (2) state:
3-4 (A) the applicant's name, age, and address;
3-5 (B) if the applicant is a corporation, whether
3-6 the applicant is:
3-7 (i) chartered or admitted to do business
3-8 in this state; and
3-9 (ii) qualified to write fidelity,
3-10 guaranty, and surety bonds under the Insurance Code;
3-11 (C) the name under which the bail bond business
3-12 will be conducted, including a bail bond business that is a
3-13 corporation; [and]
3-14 (D) each place, including the street address and
3-15 municipality, at which the business will be conducted; and
3-16 (E) the amount of cash or the cash value of a
3-17 certificate of deposit or cashier's check that the applicant
3-18 intends to deposit with the county treasurer if the applicant's
3-19 application is approved or, if the applicant is an individual
3-20 intending to execute nonexempt real property in trust to the board,
3-21 the value of the real property;
3-22 (3) if the applicant is an individual, be accompanied
3-23 by[:]
3-24 [(A)] a list, as required by Section 1704.155,
3-25 of nonexempt real property owned by the applicant that the
3-26 applicant intends to execute in trust to the board if the
3-27 applicant's application is approved; and
4-1 [(B) a statement showing the amount of cash or
4-2 cash equivalent, or the cash value of a certificate of deposit or
4-3 cashier's check, that the applicant intends to deposit with the
4-4 county treasurer if the applicant's application is approved; and]
4-5 (4) be accompanied by:
4-6 (A) the applicant's complete, sworn financial
4-7 statement;
4-8 (B) the applicant's declaration that the
4-9 applicant will comply with this chapter and the rules adopted by
4-10 the board;
4-11 (C) three letters of recommendation, each from a
4-12 person who:
4-13 (i) is reputable; and
4-14 (ii) has known the applicant or, if the
4-15 applicant is a corporation, the agent designated by the corporation
4-16 in the application [person who will be in charge of the applicant's
4-17 business in the county] for at least three years;
4-18 (D) a $500 filing fee;
4-19 (E) a photograph of the applicant or, if the
4-20 applicant is a corporation, of the agent designated by the
4-21 corporation in the application [person who will be in charge of the
4-22 applicant's business in the county];
4-23 (F) a set of fingerprints of the applicant, or,
4-24 if the applicant is a corporation, of the agent designated by the
4-25 corporation in the application [person who will be in charge of the
4-26 applicant's business in the county] taken by a law enforcement
4-27 officer designated by the board; [and]
5-1 (G) if the applicant [or, if the applicant is a
5-2 corporation, the person who will be in charge of the applicant's
5-3 business in the county] is or has been licensed under this chapter
5-4 in another county:
5-5 (i) a list of each county in which the
5-6 applicant holds a license; and
5-7 (ii) a statement by the applicant that, as
5-8 of the date of the application, the applicant has no unpaid final
5-9 judgments of forfeiture against the applicant in any county in
5-10 which the applicant holds or has held a license; and
5-11 (H) if the applicant is a corporation, a
5-12 statement by the designated agent of any unpaid final judgments of
5-13 forfeiture on any bond executed by the agent[, a letter from the
5-14 board of that county stating whether the applicant is in good
5-15 standing in the county in which the person is licensed].
5-16 (c) A letter of recommendation submitted under Subsection
5-17 (b)(4)(C) must:
5-18 (1) state that the applicant or, if the applicant is a
5-19 corporation, the agent designated by the corporation in the
5-20 application [person who will be in charge of the applicant's
5-21 business in the county] has a reputation for honesty, truthfulness,
5-22 fair dealing, and competency; and
5-23 (2) recommend that the board issue the license.
5-24 (d) The existence of an unpaid final judgment disclosed
5-25 under Subsection (b)(4)(H) may not bar licensure but may be
5-26 considered by the board in determining whether to grant a license
5-27 to the corporation with that agent.
6-1 (e) A corporation must file a separate corporate application
6-2 for each agent the corporation designates in the county.
6-3 SECTION 5. Section 1704.155, Occupations Code, is amended to
6-4 read as follows:
6-5 Sec. 1704.155. REAL PROPERTY LIST. A list of nonexempt real
6-6 property required under Section 1704.154(b)(3) [1704.154(b)(3)(A)]
6-7 must, for each parcel listed, include:
6-8 (1) a legal description of the property that would be
6-9 sufficient to convey the property by general warranty deed;
6-10 (2) a current statement from each taxing unit
6-11 authorized to impose taxes on the property showing:
6-12 (A) that there is no outstanding tax lien
6-13 against the property; and
6-14 (B) the net value of the property according to a
6-15 current appraisal made by a real estate appraiser who is a member
6-16 in good standing of a nationally recognized professional appraiser
6-17 society or trade organization that has an established code of
6-18 ethics, educational program, and professional certification
6-19 program;
6-20 (3) a statement by the applicant that, while the
6-21 property remains in trust, the applicant:
6-22 (A) agrees to pay the taxes on the property;
6-23 (B) will not further encumber the property
6-24 unless the applicant notifies the board of the applicant's intent
6-25 to encumber the property and the board permits the encumbrance; and
6-26 (C) agrees to maintain insurance on any
6-27 improvements on the property against damage or destruction in the
7-1 full amount of the value claimed for the improvements;
7-2 (4) a statement of whether the applicant is married;
7-3 and
7-4 (5) if the applicant is married, a sworn statement
7-5 from the applicant's spouse agreeing to transfer to the board, as a
7-6 part of the trust, any right, title, or interest that the spouse
7-7 may have in the property.
7-8 SECTION 6. Sections 1704.160(a), (b), and (c), Occupations
7-9 Code, are amended to read as follows:
7-10 (a) On receipt of notice under Section 1704.159 that an
7-11 application has been conditionally approved, the applicant, not
7-12 later than the 90th day after the date of receipt of the notice,
7-13 must:
7-14 (1) if the applicant is an individual:
7-15 (A) subject to Subsection (b), deposit with the
7-16 county treasurer a cashier's check, certificate of deposit, or
7-17 cash[, or cash equivalent] in the amount stated on the application
7-18 under Section 1704.154(b)(2)(E) [1704.154(b)(3)(B)]; or
7-19 (B) subject to Subsections (c)-(e), execute in
7-20 trust to the board each deed to the property listed on the
7-21 application under Section 1704.154(b)(3) [1704.154(b)(3)(A)]; or
7-22 (2) if the applicant is a corporation, subject to
7-23 Subsection (b), deposit with the county treasurer a cashier's
7-24 check, certificate of deposit, or cash in the amount stated on the
7-25 application under Section 1704.154(b)(2)(E) [provide to the sheriff
7-26 an irrevocable letter of credit as a cash equivalent to pay any
7-27 final judgment of a forfeiture on a bail bond executed by the
8-1 applicant].
8-2 (b) A deposit made under Subsection (a)(1)(A) or (a)(2) may
8-3 not be less than $50,000[, except that the deposit may not be less
8-4 than $10,000 in a county with a population of less than 250,000]. A
8-5 deposit made to a county with a population of less than 250,000
8-6 shall be placed in a fund known as a bail security fund.
8-7 (c) The total value of the property executed in trust under
8-8 Subsection (a)(1)(B) may not be less than $50,000[, except that the
8-9 value may not be less than $10,000 in a county with a population of
8-10 less than 250,000].
8-11 SECTION 7. Section 1704.163, Occupations Code, is amended to
8-12 read as follows:
8-13 Sec. 1704.163. ATTORNEY EXEMPTION. (a) Except as provided
8-14 by this section [Subsection (c)], a person not licensed under this
8-15 chapter may execute a bail bond or act as a surety for another
8-16 person if the person:
8-17 (1) is licensed to practice law in this state; and
8-18 (2) represents the other person in a criminal case.
8-19 (b) A person executing a bail bond or acting as a surety
8-20 under this section may not engage in conduct involved with that
8-21 practice that would subject a bail bond surety to license
8-22 suspension or revocation. If the board [sheriff] determines that a
8-23 person has violated this subsection, the person may not execute a
8-24 bail bond or act as a surety under this section until the person
8-25 has remedied the violation.
8-26 (c) A person executing a bail bond or acting as a surety
8-27 under this section who has been paid a fee for executing the bond
9-1 or acting as the surety is not relieved of liability on the bond
9-2 solely because the person has not been employed to represent the
9-3 principal on the merits of the criminal case.
9-4 SECTION 8. Section 1704.207(b), Occupations Code, is amended
9-5 to read as follows:
9-6 (b) If a principal is surrendered under Subsection (a) and
9-7 the principal[, an agent of the board of the county in which the
9-8 bond was executed,] or an attorney representing the state or an
9-9 accused in the case determines that a reason for the surrender was
9-10 without reasonable cause, the person may contest the surrender in
9-11 the court that authorized the surrender.
9-12 SECTION 9. Section 1704.211, Occupations Code, is amended by
9-13 amending Subsection (b) and adding Subsection (d) to read as
9-14 follows:
9-15 (b) An agent designated by a power of attorney under
9-16 Subsection (a) for a corporation holding a license under this
9-17 chapter must be designated by the corporation in the corporation's
9-18 application for a license [holder under this chapter].
9-19 (d) A corporation may limit the authority of an agent
9-20 designated under Subsection (a) by specifying the limitation in
9-21 the power of attorney that is filed with the county clerk and the
9-22 board.
9-23 SECTION 10. Section 1704.212(c), Occupations Code, is amended
9-24 to read as follows:
9-25 (c) For purposes of this section:
9-26 (1) a corporation is considered in default on a bail
9-27 bond beginning on the 11th day after the date the trial court
10-1 enters a final judgment on the scire facias and ending on the date
10-2 the judgment is satisfied, [or] set aside, or superseded; and
10-3 (2) a corporation is not considered in default on a
10-4 bail bond if, pending appeal, the corporation deposits cash or a
10-5 supersedeas bond in the amount of the final judgment with the court
10-6 in which the bond is executed.
10-7 SECTION 11. Subchapter E, Chapter 1704, Occupations Code, is
10-8 amended by adding Section 1704.213 to read as follows:
10-9 Sec. 1704.213. OFFICE LOCATION. (a) A license holder shall
10-10 maintain an office in the county in which the license holder holds
10-11 a license.
10-12 (b) Not later than the seventh day after the date a license
10-13 holder opens a new office or moves an office to a new location, the
10-14 license holder shall notify the board of the location of the
10-15 office.
10-16 SECTION 12. The heading of Section 1704.302, Occupations
10-17 Code, is amended to read as follows:
10-18 Sec. 1704.302. PROHIBITED REFERRALS OF OR EMPLOYMENTS WITH
10-19 BONDING BUSINESS; OFFENSE.
10-20 SECTION 13. Section 1704.302, Occupations Code, is amended by
10-21 adding Subsection (c) and by redesignating former Subsection (c) as
10-22 Subsection (d) to read as follows:
10-23 (c) A person may not accept or receive from a license holder
10-24 money, property, or any other thing of value as payment for
10-25 employment with a bonding business if, within the preceding 10
10-26 years, the person has been convicted of a misdemeanor involving
10-27 moral turpitude or of a felony.
11-1 (d) [(c)] A person commits an offense if the person violates
11-2 this section. An offense under this section is a Class A
11-3 misdemeanor.
11-4 SECTION 14. Sections 1704.303(b) and (c), Occupations Code,
11-5 are amended to read as follows:
11-6 (b) A person may not advertise as a bail bond surety in a
11-7 county unless the person holds a license issued under this chapter
11-8 by a bail bond board in that county. A person does not violate
11-9 this subsection if the person places an advertisement that appears
11-10 in more than one county and:
11-11 (1) the advertisement clearly indicates the county or
11-12 counties in which the person holds a license issued under this
11-13 chapter; and
11-14 (2) any local telephone number in the advertisement is
11-15 a local number only for a county in which the person holds a
11-16 license issued under this chapter.
11-17 (c) A person commits an offense if the person violates this
11-18 section. An offense under this section is a Class B [C]
11-19 misdemeanor.
11-20 SECTION 15. Section 1704.304, Occupations Code, is amended
11-21 by adding a new Subsection (d) and redesignating current Subsection
11-22 (d) as Subsection (e) to read as follows:
11-23 (d) A person may not place a device in a place of detention,
11-24 confinement, or imprisonment that dispenses a bail bond in exchange
11-25 for a fee.
11-26 (e) A person commits an offense if the person violates this
11-27 section. An offense under this section is a Class B misdemeanor.
12-1 SECTION 16. (a) Except as provided by Subsection (b) of this
12-2 section, the changes in law made by this Act to the requirements
12-3 for an original bail bond license or to renew a bail bond license
12-4 apply only to an application for a bail bond license or to renew a
12-5 bail bond license that is made on or after the effective date of
12-6 this Act.
12-7 (b) The changes in law made by this Act to Section 1704.152,
12-8 Occupations Code, relating to the renewal of a bail bond license by
12-9 a person who holds a bail bond license immediately before the
12-10 effective date of this Act apply only to a renewal that occurs on
12-11 or after September 1, 2002.
12-12 SECTION 17. The change in law made by this Act to Section
12-13 1704.302(c), Occupations Code, applies only to a person employed by
12-14 a bonding business after the effective date of this Act.
12-15 SECTION 18. (a) The change in law made by this Act to
12-16 Section 1704.303, Occupations Code, applies only to an offense
12-17 committed on or after the effective date of this Act.
12-18 (b) For purposes of this section, an offense is committed
12-19 before the effective date of this Act if any element of the offense
12-20 occurs before that date. An offense committed before the effective
12-21 date of this Act is covered by the law in effect on the date the
12-22 offense is committed, and the former law is continued in effect for
12-23 that purpose.
12-24 SECTION 19. This Act takes effect September 1, 2001.