By Hinojosa H.B. No. 2192
77R6768 GJH-F
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 any security, including cash or a
1-12 bond, to ensure the appearance in court of a person accused of a
1-13 crime [for compensation].
1-14 SECTION 2. Section 1704.152, Occupations Code, is amended by
1-15 amending Subsection (a) and adding Subsection (c) to read as
1-16 follows:
1-17 (a) To be eligible for a license under this chapter, an
1-18 individual must:
1-19 (1) be a resident of this state and a citizen of the
1-20 United States;
1-21 (2) be at least 18 years of age; [and]
1-22 (3) possess the financial resources required to comply
1-23 with Section 1704.160, unless the individual is acting only as
1-24 agent for a corporation holding a license under this chapter; and
2-1 (4) have, in the two years preceding the date a
2-2 license application is filed:
2-3 (A) at least one year of continuous work
2-4 experience in the bail bond business; and
2-5 (B) completed at least eight hours of continuing
2-6 legal education in criminal law courses or bail bond law courses
2-7 that are approved by the State Bar of Texas and that are offered by
2-8 an institution of higher education accredited by the state.
2-9 (c) Subsection (a)(4) does not apply to the issuance of an
2-10 original license:
2-11 (1) in a county before the first anniversary of the
2-12 date a board is created in the county; or
2-13 (2) to an individual who applies to operate the bail
2-14 bond business of a license holder who has died if the individual is
2-15 related to the decedent within the first degree by consanguinity or
2-16 is the decedent's surviving spouse.
2-17 SECTION 3. Section 1704.154, Occupations Code, is amended by
2-18 amending Subsections (b) and (c) and adding Subsection (d) to read
2-19 as follows:
2-20 (b) The application must:
2-21 (1) be in a form and contain the information
2-22 prescribed by the board;
2-23 (2) state:
2-24 (A) the applicant's name, age, and address;
2-25 (B) if the applicant is a corporation, whether
2-26 the applicant is:
2-27 (i) chartered or admitted to do business
3-1 in this state; and
3-2 (ii) qualified to write fidelity,
3-3 guaranty, and surety bonds under the Insurance Code;
3-4 (C) the name under which the bail bond business
3-5 will be conducted, including a bail bond business that is a
3-6 corporation; [and]
3-7 (D) each place, including the street address and
3-8 municipality, at which the business will be conducted; and
3-9 (E) the amount of cash or the cash value of a
3-10 certificate of deposit or cashier's check that the applicant
3-11 intends to deposit with the county treasurer if the applicant's
3-12 application is approved;
3-13 (3) if the applicant is an individual, be accompanied
3-14 by[:]
3-15 [(A)] a list, as required by Section 1704.155,
3-16 of nonexempt real property owned by the applicant that the
3-17 applicant intends to execute in trust to the board if the
3-18 applicant's application is approved; and
3-19 [(B) a statement showing the amount of cash or
3-20 cash equivalent, or the cash value of a certificate of deposit or
3-21 cashier's check, that the applicant intends to deposit with the
3-22 county treasurer if the applicant's application is approved; and]
3-23 (4) be accompanied by:
3-24 (A) the applicant's complete, sworn financial
3-25 statement;
3-26 (B) the applicant's declaration that the
3-27 applicant will comply with this chapter and the rules adopted by
4-1 the board;
4-2 (C) three letters of recommendation, each from a
4-3 person who:
4-4 (i) is reputable; and
4-5 (ii) has known the applicant or, if the
4-6 applicant is a corporation, the agent designated by the corporation
4-7 in the application [person who will be in charge of the applicant's
4-8 business in the county] for at least three years;
4-9 (D) a $500 filing fee;
4-10 (E) a photograph of the applicant or, if the
4-11 applicant is a corporation, of the agent designated by the
4-12 corporation in the application [person who will be in charge of the
4-13 applicant's business in the county];
4-14 (F) a set of fingerprints of the applicant, or,
4-15 if the applicant is a corporation, of the agent designated by the
4-16 corporation in the application [person who will be in charge of the
4-17 applicant's business in the county] taken by a law enforcement
4-18 officer designated by the board; and
4-19 (G) if the applicant [or, if the applicant is a
4-20 corporation, the person who will be in charge of the applicant's
4-21 business in the county] is licensed under this chapter in another
4-22 county:
4-23 (i) a list of each county in which the
4-24 applicant holds a license; and
4-25 (ii) a statement by the applicant that, as
4-26 of the date of the application, the applicant has no knowledge of
4-27 any unpaid final judgments of forfeiture against the applicant in
5-1 any county in which the applicant holds a license[, a letter from
5-2 the board of that county stating whether the applicant is in good
5-3 standing in the county in which the person is licensed].
5-4 (c) A letter of recommendation submitted under Subsection
5-5 (b)(4)(C) must:
5-6 (1) state that the applicant or, if the applicant is a
5-7 corporation, the agent designated by the corporation in the
5-8 application [person who will be in charge of the applicant's
5-9 business in the county] has a reputation for honesty, truthfulness,
5-10 fair dealing, and competency; and
5-11 (2) recommend that the board issue the license.
5-12 (d) A corporation must file a separate corporate application
5-13 for each agent the corporation designates in the county.
5-14 SECTION 4. Section 1704.155, Occupations Code, is amended to
5-15 read as follows:
5-16 Sec. 1704.155. REAL PROPERTY LIST. A list of nonexempt real
5-17 property required under Section 1704.154(b)(3) [1704.154(b)(3)(A)]
5-18 must, for each parcel listed, include:
5-19 (1) a legal description of the property that would be
5-20 sufficient to convey the property by general warranty deed;
5-21 (2) a current statement from each taxing unit
5-22 authorized to impose taxes on the property showing:
5-23 (A) that there is no outstanding tax lien
5-24 against the property; and
5-25 (B) the net value of the property according to a
5-26 current appraisal made by a real estate appraiser who is a member
5-27 in good standing of a nationally recognized professional appraiser
6-1 society or trade organization that has an established code of
6-2 ethics, educational program, and professional certification
6-3 program;
6-4 (3) a statement by the applicant that, while the
6-5 property remains in trust, the applicant:
6-6 (A) agrees to pay the taxes on the property;
6-7 (B) will not further encumber the property
6-8 unless the applicant notifies the board of the applicant's intent
6-9 to encumber the property and the board permits the encumbrance; and
6-10 (C) agrees to maintain insurance on any
6-11 improvements on the property against damage or destruction in the
6-12 full amount of the value claimed for the improvements;
6-13 (4) a statement of whether the applicant is married;
6-14 and
6-15 (5) if the applicant is married, a sworn statement
6-16 from the applicant's spouse agreeing to transfer to the board, as a
6-17 part of the trust, any right, title, or interest that the spouse
6-18 may have in the property.
6-19 SECTION 5. Sections 1704.160(a), (b), and (c), Occupations
6-20 Code, are amended to read as follows:
6-21 (a) On receipt of notice under Section 1704.159 that an
6-22 application has been conditionally approved, the applicant must:
6-23 (1) if the applicant is an individual:
6-24 (A) subject to Subsection (b), deposit with the
6-25 county treasurer a cashier's check, certificate of deposit, or
6-26 cash[, or cash equivalent] in the amount stated on the application
6-27 under Section 1704.154(b)(2)(E) [1704.154(b)(3)(B)]; or
7-1 (B) subject to Subsections (c)-(e), execute in
7-2 trust to the board each deed to the property listed on the
7-3 application under Section 1704.154(b)(3) [1704.154(b)(3)(A)]; or
7-4 (2) if the applicant is a corporation, subject to
7-5 Subsection (b), deposit with the county treasurer a cashier's
7-6 check, certificate of deposit, or cash in the amount stated on the
7-7 application under Section 1704.154(b)(2)(E) [provide to the sheriff
7-8 an irrevocable letter of credit as a cash equivalent to pay any
7-9 final judgment of a forfeiture on a bail bond executed by the
7-10 applicant].
7-11 (b) A deposit made under Subsection (a)(1)(A) or (a)(2) may
7-12 not be less than $50,000[, except that the deposit may not be less
7-13 than $10,000 in a county with a population of less than 250,000]. A
7-14 deposit made to a county with a population of less than 250,000
7-15 shall be placed in a fund known as a bail security fund.
7-16 (c) The total value of the property executed in trust under
7-17 Subsection (a)(1)(B) may not be less than $50,000[, except that the
7-18 value may not be less than $10,000 in a county with a population of
7-19 less than 250,000].
7-20 SECTION 6. Section 1704.162(c), Occupations Code, is amended
7-21 to read as follows:
7-22 (c) Except as provided by this subsection, an applicant [An
7-23 application] for renewal must comply with the requirements for an
7-24 original license application under Section 1704.154, including the
7-25 $500 filing fee requirement. An applicant for renewal is not
7-26 required to furnish letters of recommendation.
7-27 SECTION 7. Section 1704.163, Occupations Code, is amended to
8-1 read as follows:
8-2 Sec. 1704.163. ATTORNEY EXEMPTION. (a) Except as provided
8-3 by this section [Subsection (c)], a person not licensed under this
8-4 chapter may execute a bail bond or act as a surety for another
8-5 person if the person:
8-6 (1) is licensed to practice law in this state; and
8-7 (2) represents the other person in a criminal case.
8-8 (b) A person may not execute a bail bond under this section
8-9 if the total amount of all outstanding bail bonds executed by the
8-10 person under this section exceeds $250,000.
8-11 (c) A person executing a bail bond or acting as a surety
8-12 under this section may not engage in conduct involved with that
8-13 practice that would subject a bail bond surety to license
8-14 revocation. If the board [sheriff] determines that a person has
8-15 violated this subsection, the person may not execute a bail bond or
8-16 act as a surety under this section until the person has remedied
8-17 the violation.
8-18 (d) [(c)] A person executing a bail bond or acting as a
8-19 surety under this section who has been paid a fee for executing the
8-20 bond or acting as the surety is not relieved of liability on the
8-21 bond solely because the person has not been employed to represent
8-22 the principal on the merits of the criminal case.
8-23 SECTION 8. Section 1704.207(b), Occupations Code, is amended
8-24 to read as follows:
8-25 (b) If a principal is surrendered under Subsection (a) and
8-26 the principal[, an agent of the board of the county in which the
8-27 bond was executed, or an attorney representing the state or an
9-1 accused in the case] determines that a reason for the surrender was
9-2 without reasonable cause, the person may contest the surrender in
9-3 the court that authorized the surrender.
9-4 SECTION 9. Section 1704.211, Occupations Code, is amended by
9-5 amending Subsection (b) and adding Subsection (d) to read as
9-6 follows:
9-7 (b) An agent designated by a power of attorney under
9-8 Subsection (a) for a corporation holding a license under this
9-9 chapter must be designated by the corporation in the corporation's
9-10 application for a license [holder under this chapter].
9-11 (d) A corporation may limit the authority of an agent
9-12 designated under Subsection (a) by specifying the limitation in
9-13 the power of attorney filed with the county clerk.
9-14 SECTION 10. Section 1704.303(c), Occupations Code, is
9-15 amended to read as follows:
9-16 (c) A person commits an offense if the person violates this
9-17 section. An offense under this section is a Class B [C]
9-18 misdemeanor.
9-19 SECTION 11. Section 1704.304, Occupations Code, is amended
9-20 by adding a new Subsection (d) and redesignating current Subsection
9-21 (d) as Subsection (e) to read as follows:
9-22 (d) A person may not place a device in a place of detention,
9-23 confinement, or imprisonment that dispenses a bail bond in exchange
9-24 for a fee.
9-25 (e) A person commits an offense if the person violates this
9-26 section. An offense under this section is a Class B misdemeanor.
9-27 SECTION 12. Section 1704.212, Occupations Code, is repealed.
10-1 SECTION 13. (a) Except as provided by Subsection (b) of this
10-2 section, the changes in law made by this Act to the requirements
10-3 for an original bail bond license or to renew a bail bond license
10-4 apply only to an application for a bail bond license or to renew a
10-5 bail bond license that is made on or after the effective date of
10-6 this Act.
10-7 (b) The changes in law made by this Act to Section 1704.152,
10-8 Occupations Code, relating to the renewal of a bail bond license by
10-9 a person who holds a bail bond license immediately before the
10-10 effective date of this Act apply only to a renewal that occurs on
10-11 or after September 1, 2002.
10-12 SECTION 14. (a) The change in law made by this Act to
10-13 Section 1704.303, Occupations Code, applies only to an offense
10-14 committed on or after the effective date of this Act.
10-15 (b) For purposes of this section, an offense is committed
10-16 before the effective date of this Act if any element of the offense
10-17 occurs before that date. An offense committed before the effective
10-18 date of this Act is covered by the law in effect on the date the
10-19 offense is committed, and the former law is continued in effect for
10-20 that purpose.
10-21 SECTION 15. This Act takes effect September 1, 2001.