By Hinojosa H.B. No. 3531
77R6753 GJH-D
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) engages in any other act particular to the
1-12 bail bond business [for compensation].
1-13 SECTION 2. Section 1704.102(a), Occupations Code, is amended
1-14 to read as follows:
1-15 (a) A board shall:
1-16 (1) enforce this chapter in the county;
1-17 (2) conduct hearings and investigations and make
1-18 determinations relating to license suspension and revocation;
1-19 (3) suspend or revoke a license for a violation of
1-20 this chapter or a rule adopted by the board under this chapter;
1-21 [and]
1-22 (4) require a record and transcription of each board
1-23 proceeding; and
1-24 (5) require each of its members:
2-1 (A) to read this chapter and the local rules
2-2 adopted by the board; and
2-3 (B) to file an affidavit stating that the member
2-4 has met the requirement under Paragraph (A).
2-5 SECTION 3. Section 1704.105(b), Occupations Code, is amended
2-6 to read as follows:
2-7 (b) A list of each licensed bail bond surety in a county
2-8 shall [may] be displayed where prisoners are examined, processed,
2-9 or confined in a manner that is viewable by the public and detained
2-10 prisoners.
2-11 SECTION 4. Section 1704.154(b), Occupations Code, is amended
2-12 to read as follows:
2-13 (b) The application must:
2-14 (1) be in a form and contain the information
2-15 prescribed by the board and approved by the Texas Judicial Council;
2-16 (2) state:
2-17 (A) the applicant's name, age, and address;
2-18 (B) if the applicant is a corporation, whether
2-19 the applicant is:
2-20 (i) chartered or admitted to do business
2-21 in this state; and
2-22 (ii) qualified to write fidelity,
2-23 guaranty, and surety bonds under the Insurance Code;
2-24 (C) the state trademark certificate, if any,
2-25 stating the name under which the business will be conducted; and
2-26 (D) each place, including the street address and
2-27 municipality, at which the business will be conducted;
3-1 (3) if the applicant is an individual, be accompanied
3-2 by:
3-3 (A) a list, as required by Section 1704.155, of
3-4 nonexempt real property owned by the applicant that the applicant
3-5 intends to execute in trust to the board if the applicant's
3-6 application is approved; and
3-7 (B) a statement showing the amount of cash or
3-8 cash equivalent, or the cash value of a certificate of deposit or
3-9 cashier's check, that the applicant intends to deposit with the
3-10 county treasurer if the applicant's application is approved; and
3-11 (4) be accompanied by:
3-12 (A) the applicant's complete, sworn financial
3-13 statement;
3-14 (B) the applicant's declaration that the
3-15 applicant will comply with this chapter and the rules adopted by
3-16 the board;
3-17 (C) three letters of recommendation, each from a
3-18 person who:
3-19 (i) is reputable; and
3-20 (ii) has known the applicant or, if the
3-21 applicant is a corporation, the person who will be in charge of the
3-22 applicant's business in the county for at least three years;
3-23 (D) a $500 filing fee;
3-24 (E) a photograph of the applicant or, if the
3-25 applicant is a corporation, of the person who will be in charge of
3-26 the applicant's business in the county;
3-27 (F) a set of fingerprints of the applicant, or,
4-1 if the applicant is a corporation, of the person who will be in
4-2 charge of the applicant's business in the county taken by a law
4-3 enforcement officer designated by the board; and
4-4 (G) if the applicant or, if the applicant is a
4-5 corporation, the person who will be in charge of the applicant's
4-6 business in the county is licensed under this chapter in another
4-7 county, a letter from the board of that county stating whether the
4-8 applicant is in good standing in the county in which the person is
4-9 licensed.
4-10 SECTION 5. Section 1704.155, Occupations Code, is amended to
4-11 read as follows:
4-12 Sec. 1704.155. REAL PROPERTY LIST. A list of nonexempt real
4-13 property required under Section 1704.154(b)(3)(A) must, for each
4-14 parcel listed, include:
4-15 (1) a legal description of the property that would be
4-16 sufficient to convey the property by general warranty deed;
4-17 (2) a current statement from each taxing unit
4-18 authorized to impose taxes on the property showing:
4-19 (A) that there is no outstanding tax lien
4-20 against the property; and
4-21 (B) the net value of the property according to a
4-22 current appraisal made by the appraisal district in which the
4-23 property is located [a real estate appraiser who is a member in
4-24 good standing of a nationally recognized professional appraiser
4-25 society or trade organization that has an established code of
4-26 ethics, educational program, and professional certification
4-27 program];
5-1 (3) a statement by the applicant that, while the
5-2 property remains in trust, the applicant:
5-3 (A) agrees to pay the taxes on the property;
5-4 (B) will not further encumber the property
5-5 unless the applicant notifies the board of the applicant's intent
5-6 to encumber the property and the board permits the encumbrance; and
5-7 (C) agrees to maintain insurance on any
5-8 improvements on the property against damage or destruction in the
5-9 full amount of the value claimed for the improvements;
5-10 (4) a statement of whether the applicant is married;
5-11 and
5-12 (5) if the applicant is married, a sworn statement
5-13 from the applicant's spouse agreeing to transfer to the board, as a
5-14 part of the trust, any right, title, or interest that the spouse
5-15 may have in the property.
5-16 SECTION 6. Section 1704.160, Occupations Code, is amended to
5-17 read as follows:
5-18 Sec. 1704.160. SECURITY REQUIREMENTS. (a) On receipt of
5-19 notice under Section 1704.159 that an application has been
5-20 conditionally approved, the applicant must:
5-21 (1) if the applicant is an individual:
5-22 (A) subject to Subsection (b), deposit with the
5-23 county treasurer a cashier's check, certificate of deposit, cash,
5-24 or cash equivalent in the amount stated on the application under
5-25 Section 1704.154(b)(3)(B); or
5-26 (B) subject to Subsections (c)-(f) [(c)-(e)],
5-27 execute in trust to the board each deed to the property listed on
6-1 the application under Section 1704.154(b)(3)(A); or
6-2 (2) if the applicant is a corporation, provide to the
6-3 sheriff an irrevocable letter of credit as a cash equivalent to pay
6-4 any final judgment of a forfeiture on a bail bond executed by the
6-5 applicant.
6-6 (b) A deposit made under Subsection (a)(1)(A) may not be
6-7 less than $100,000 [$50,000], except that the deposit may not be
6-8 less than $50,000 [$10,000] in a county with a population of less
6-9 than 250,000. A deposit made to a county with a population of less
6-10 than 250,000 shall be placed in a fund known as a bail security
6-11 fund.
6-12 (c) The property executed in trust under Subsection
6-13 (a)(1)(B) must be valued in the amount indicated by the appraisal
6-14 district in which the property is located.
6-15 (d) The total value of the property executed in trust under
6-16 Subsection (a)(1)(B) may not be less than $100,000 [$50,000],
6-17 except that the value may not be less than $50,000 [$10,000] in a
6-18 county with a population of less than 250,000.
6-19 (e) [(d)] A trust created under Subsection (a)(1)(B) is
6-20 subject to the condition that the property executed in trust may,
6-21 after notice is provided and under the conditions required by the
6-22 Code of Criminal Procedure, be sold to satisfy a final judgment on
6-23 a forfeiture on a bail bond executed by the applicant.
6-24 (f) [(e)] If an applicant is married, the applicant's spouse
6-25 must execute each deed of trust under Subsection (a)(1)(B) that
6-26 involves community property.
6-27 (g) [(f)] A board shall file each deed of trust in the
7-1 records of each county in which the property is located. The
7-2 applicant shall pay the filing fee.
7-3 (h) [(g)] The certificate of authority to do business in
7-4 this state issued under Article 8.20, Insurance Code, to an
7-5 applicant that is a corporation is conclusive evidence of:
7-6 (1) the sufficiency of the applicant's security; and
7-7 (2) the applicant's solvency and credits.
7-8 (i) [(h)] A license holder must maintain the amount of
7-9 security required by this section during the time the person holds
7-10 the license.
7-11 SECTION 7. Section 1704.203, Occupations Code, is amended by
7-12 adding Subsection (h) to read as follows:
7-13 (h) A bail bond surety may not execute a single bail bond in
7-14 an amount that exceeds the amount of all property held as security
7-15 under Section 1704.160(a)(1)(A) plus the amount of all property
7-16 held in trust under Section 1704.160(a)(1)(B).
7-17 SECTION 8. Section 1704.252, Occupations Code, is amended to
7-18 read as follows:
7-19 Sec. 1704.252. DISCRETIONARY LICENSE SUSPENSION OR
7-20 REVOCATION: GROUNDS. After notice and hearing, a board may revoke
7-21 or suspend a license if the license holder:
7-22 (1) violates this chapter or a rule adopted by the
7-23 board under this chapter;
7-24 (2) fraudulently obtains a license under this chapter;
7-25 (3) makes a false statement or misrepresentation:
7-26 (A) in an application for an original or renewal
7-27 license; or
8-1 (B) during a hearing conducted by the board;
8-2 (4) refuses to answer a question submitted by the
8-3 board during a hearing relating to the license holder's license,
8-4 conduct, or qualifications;
8-5 (5) is finally convicted under the laws of this state,
8-6 another state, or the United States of an offense that:
8-7 (A) is a misdemeanor involving moral turpitude
8-8 or a felony; and
8-9 (B) is committed after August 27, 1973;
8-10 (6) is found by a court to be bankrupt or is
8-11 insolvent;
8-12 (7) is found by a court to be mentally incompetent;
8-13 (8) fails to pay a judgment in accordance with Section
8-14 1704.204;
8-15 (9) pays commissions or fees to or divides commissions
8-16 or fees with, or offers to pay commissions or fees to or divide
8-17 commissions or fees with, a person or business entity not licensed
8-18 under this chapter;
8-19 (10) solicits bonding business in a building in which
8-20 prisoners are processed or confined;
8-21 (11) recommends to a client the employment of a
8-22 particular attorney or law firm in a criminal case;
8-23 (12) falsifies or fails to maintain a record required
8-24 under this chapter;
8-25 (13) fails to promptly permit the board, or a
8-26 representative or an agent of the board, of the county in which the
8-27 license holder is licensed to inspect a record required under this
9-1 chapter;
9-2 (14) acts as a bail bond surety under a suspended or
9-3 expired license;
9-4 (15) fails two or more times to maintain the amount of
9-5 security required by Section 1704.160; [or]
9-6 (16) misrepresents to an official or an employee of
9-7 the official the amount for which the license holder may execute a
9-8 bail bond for purposes of obtaining the release of a person on
9-9 bond;
9-10 (17) makes, causes to be made, or benefits from an
9-11 unsolicited contact to solicit bail bond business relating to a
9-12 specific individual with an outstanding warrant that has not been
9-13 executed; or
9-14 (18) makes, causes to be made, or benefits from an
9-15 unsolicited contact to solicit the bail bond business of a specific
9-16 individual within 72 hours of the execution of an arrest warrant
9-17 relating to that individual.
9-18 SECTION 9. The heading of Section 1704.302 is amended to read
9-19 as follows:
9-20 Sec. 1704.302. PROHIBITED REFERRALS OF OR EMPLOYMENTS WITH
9-21 BONDING BUSINESS; OFFENSE.
9-22 SECTION 10. Section 1704.302, Occupations Code, is amended by
9-23 adding Subsection (c) and by redesignating former Subsection (c) as
9-24 Subsection (d) to read as follows:
9-25 (c) A person may not accept or receive from a license holder
9-26 money, property, or any other thing of value as payment for
9-27 employment with a bonding business if the person has been convicted
10-1 of a misdemeanor involving moral turpitude or of a felony.
10-2 (d) [(c)] A person commits an offense if the person violates
10-3 this section. An offense under this section is a Class A
10-4 misdemeanor.
10-5 SECTION 11. Sections 1704.154(b) and 1704.155, Occupations
10-6 Code, as amended by this Act, apply only to an application filed on
10-7 or after the effective date of this Act. An application filed
10-8 before the effective date of this Act is governed by the law in
10-9 effect immediately before the effective date of this Act, and that
10-10 law is continued in effect for that purpose.
10-11 SECTION 12. Section 1704.160, Occupations Code, as amended by
10-12 this Act, applies only to a deposit that is required on or after
10-13 the effective date of this Act. A deposit that is required before
10-14 the effective date of this Act is governed by the law in effect
10-15 immediately before the effective date of this Act, and that law is
10-16 continued in effect for that purpose.
10-17 SECTION 13. Section 1704.203, Occupations Code, as amended by
10-18 this Act, applies only to an act that occurs on or after the
10-19 effective date of this Act. An act that occurs before the
10-20 effective date of this Act is governed by the law in effect
10-21 immediately before the effective date of this Act, and that law is
10-22 continued in effect for that purpose.
10-23 SECTION 14. This Act takes effect September 1, 2001.