By: Armbrister S.B. No. 1119
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. Subdivision (2), Section 1704.001, Occupations
1-6 Code, is amended to read as follows:
1-7 (2) "Bail bond surety" means a person who:
1-8 (A) executes a bail bond as a surety or cosurety
1-9 for another person; or
1-10 (B) for compensation deposits cash to ensure the
1-11 appearance in court of a person accused of a crime.
1-12 SECTION 2. Subchapter C, Chapter 1704, Occupations Code, is
1-13 amended by adding Section 1704.109 to read as follows:
1-14 Sec. 1704.109. SOLICITATION AND ADVERTISEMENT. A board by
1-15 rule may regulate solicitations or advertisements by or on behalf
1-16 of license holders to protect the public from harassment, fraud, or
1-17 misrepresentation.
1-18 SECTION 3. Section 1704.152, Occupations Code, is amended by
1-19 amending Subsection (a) and adding Subsection (c) to read as
1-20 follows:
1-21 (a) To be eligible for a license under this chapter, an
1-22 individual, including an agent designated by a corporation in an
1-23 application, must:
1-24 (1) be a resident of this state and a citizen of the
1-25 United States;
2-1 (2) be at least 18 years of age; [and]
2-2 (3) possess the financial resources required to comply
2-3 with Section 1704.160, unless the individual is acting only as
2-4 agent for a corporation holding a license under this chapter; and
2-5 (4) have, in the two years preceding the date a
2-6 license application is filed:
2-7 (A) at least one year of continuous work
2-8 experience in the bail bond business; and
2-9 (B) completed at least eight hours of continuing
2-10 legal education in criminal law courses or bail bond law courses
2-11 that are approved by the State Bar of Texas and that are offered by
2-12 an institution of higher education accredited by the state.
2-13 (c) Subsection (a)(4) does not apply to the issuance of an
2-14 original license:
2-15 (1) in a county before the first anniversary of the
2-16 date a board is created in the county; or
2-17 (2) to an individual who applies to operate the bail
2-18 bond business of a license holder who has died if the individual is
2-19 related to the decedent within the first degree by consanguinity or
2-20 is the decedent's surviving spouse.
2-21 SECTION 4. Section 1704.154, Occupations Code, is amended by
2-22 amending Subsections (b) and (c) and adding Subsections (d) and (e)
2-23 to read as follows:
2-24 (b) The application must:
2-25 (1) be in a form and contain the information
2-26 prescribed by the board;
3-1 (2) state:
3-2 (A) the applicant's name, age, and address;
3-3 (B) if the applicant is a corporation, whether
3-4 the applicant is:
3-5 (i) chartered or admitted to do business
3-6 in this state; and
3-7 (ii) qualified to write fidelity,
3-8 guaranty, and surety bonds under the Insurance Code;
3-9 (C) the name under which the bail bond business
3-10 will be conducted, including a bail bond business that is a
3-11 corporation; [and]
3-12 (D) each place, including the street address and
3-13 municipality, at which the business will be conducted; and
3-14 (E) the amount of cash or the cash value of a
3-15 certificate of deposit or cashier's check that the applicant
3-16 intends to deposit with the county treasurer if the applicant's
3-17 application is approved or, if the applicant is an individual
3-18 intending to execute nonexempt real property in trust to the board,
3-19 the value of the real property as determined by the most recent
3-20 certified county appraisal roll or according to a current appraisal
3-21 made by a real estate appraiser approved by the board;
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
4-1 applicant's application is approved; and
4-2 [(B) a statement showing the amount of cash or
4-3 cash equivalent, or the cash value of a certificate of deposit or
4-4 cashier's check, that the applicant intends to deposit with the
4-5 county treasurer if the applicant's application is approved; and]
4-6 (4) be accompanied by:
4-7 (A) the applicant's complete, sworn financial
4-8 statement;
4-9 (B) the applicant's declaration that the
4-10 applicant will comply with this chapter and the rules adopted by
4-11 the board;
4-12 (C) three letters of recommendation, each from a
4-13 person who:
4-14 (i) is reputable; and
4-15 (ii) has known the applicant or, if the
4-16 applicant is a corporation, the agent designated by the corporation
4-17 in the application [person who will be in charge of the applicant's
4-18 business in the county] for at least three years;
4-19 (D) a $500 filing fee;
4-20 (E) a photograph of the applicant or, if the
4-21 applicant is a corporation, of the agent designated by the
4-22 corporation in the application [person who will be in charge of the
4-23 applicant's business in the county];
4-24 (F) a set of fingerprints of the applicant[,]
4-25 or, if the applicant is a corporation, of the agent designated by
4-26 the corporation in the application [person who will be in charge of
5-1 the applicant's business in the county] taken by a law enforcement
5-2 officer designated by the board; [and]
5-3 (G) if the applicant [or, if the applicant is a
5-4 corporation, the person who will be in charge of the applicant's
5-5 business in the county] is or has been licensed under this chapter
5-6 in another county:
5-7 (i) a list of each county in which the
5-8 applicant holds a license; and
5-9 (ii) a statement by the applicant that, as
5-10 of the date of the application, the applicant has no unpaid final
5-11 judgments of forfeiture against the applicant in any county in
5-12 which the applicant holds or has held a license; and
5-13 (H) if the applicant is a corporation, a
5-14 statement by the designated agent of any unpaid final judgments of
5-15 forfeiture on any bond executed by the agent[, a letter from the
5-16 board of that county stating whether the applicant is in good
5-17 standing in the county in which the person is licensed].
5-18 (c) A letter of recommendation submitted under Subsection
5-19 (b)(4)(C) must:
5-20 (1) state that the applicant or, if the applicant is a
5-21 corporation, the agent designated by the corporation in the
5-22 application [person who will be in charge of the applicant's
5-23 business in the county] has a reputation for honesty, truthfulness,
5-24 fair dealing, and competency; and
5-25 (2) recommend that the board issue the license.
5-26 (d) The existence of an unpaid final judgment disclosed
6-1 under Subsection (b)(4)(H) may not bar licensure but may be
6-2 considered by the board in determining whether to grant a license
6-3 to the corporation with that agent.
6-4 (e) A corporation must file a separate corporate application
6-5 for each agent the corporation designates in the county.
6-6 SECTION 5. Section 1704.155, Occupations Code, is amended to
6-7 read as follows:
6-8 Sec. 1704.155. REAL PROPERTY LIST. A list of nonexempt real
6-9 property required under Section 1704.154(b)(3) [1704.154(b)(3)(A)]
6-10 must, for each parcel listed, include:
6-11 (1) a legal description of the property that would be
6-12 sufficient to convey the property by general warranty deed;
6-13 (2) a current statement from each taxing unit
6-14 authorized to impose taxes on the property showing:
6-15 (A) that there is no outstanding tax lien
6-16 against the property; and
6-17 (B) the net value of the property according to
6-18 the most recent certified county appraisal roll or according to a
6-19 current appraisal made by a real estate appraiser approved by the
6-20 board who is a member in good standing of a nationally recognized
6-21 professional appraiser society or trade organization that has an
6-22 established code of ethics, educational program, and professional
6-23 certification program;
6-24 (3) a statement by the applicant that, while the
6-25 property remains in trust, the applicant:
6-26 (A) agrees to pay the taxes on the property;
7-1 (B) will not further encumber the property
7-2 unless the applicant notifies the board of the applicant's intent
7-3 to encumber the property and the board permits the encumbrance; and
7-4 (C) agrees to maintain insurance on any
7-5 improvements on the property against damage or destruction in the
7-6 full amount of the value claimed for the improvements;
7-7 (4) a statement of whether the applicant is married;
7-8 and
7-9 (5) if the applicant is married, a sworn statement
7-10 from the applicant's spouse agreeing to transfer to the board, as a
7-11 part of the trust, any right, title, or interest that the spouse
7-12 may have in the property.
7-13 SECTION 6. Subsections (a), (b), and (c), Section 1704.160,
7-14 Occupations Code, are amended to read as follows:
7-15 (a) On receipt of notice under Section 1704.159 that an
7-16 application has been conditionally approved, the applicant, not
7-17 later than the 90th day after the date of receipt of the notice,
7-18 must:
7-19 (1) if the applicant is an individual:
7-20 (A) subject to Subsection (b), deposit with the
7-21 county treasurer a cashier's check, certificate of deposit, or
7-22 cash[, or cash equivalent] in the amount stated on the application
7-23 under Section 1704.154(b)(2)(E) [1704.154(b)(3)(B)]; or
7-24 (B) subject to Subsections (c)-(e), execute in
7-25 trust to the board each deed to the property listed on the
7-26 application under Section 1704.154(b)(3) [1704.154(b)(3)(A)]; or
8-1 (2) if the applicant is a corporation, subject to
8-2 Subsection (b), deposit with the county treasurer a cashier's
8-3 check, certificate of deposit, or cash in the amount stated on the
8-4 application under Section 1704.154(b)(2)(E) [provide to the sheriff
8-5 an irrevocable letter of credit as a cash equivalent to pay any
8-6 final judgment of a forfeiture on a bail bond executed by the
8-7 applicant].
8-8 (b) A deposit made under Subsection (a)(1)(A) or (a)(2) may
8-9 not be less than $50,000[, except that the deposit may not be less
8-10 than $10,000 in a county with a population of less than 250,000].
8-11 A deposit made to a county with a population of less than 250,000
8-12 shall be placed in a fund known as a bail security fund.
8-13 (c) The total value of the property executed in trust under
8-14 Subsection (a)(1)(B) may not be less than $50,000[, except that the
8-15 value may not be less than $10,000 in a county with a population of
8-16 less than 250,000].
8-17 SECTION 7. Section 1704.163, Occupations Code, is amended to
8-18 read as follows:
8-19 Sec. 1704.163. ATTORNEY EXEMPTION. (a) Except as provided
8-20 by this section [Subsection (c)], a person not licensed under this
8-21 chapter may execute a bail bond or act as a surety for another
8-22 person if the person:
8-23 (1) is licensed to practice law in this state; and
8-24 (2) represents the other person in a criminal case.
8-25 (b) A person executing a bail bond or acting as a surety
8-26 under this section may not engage in conduct involved with that
9-1 practice that would subject a bail bond surety to license
9-2 suspension or revocation. If the board [sheriff] determines that a
9-3 person has violated this subsection, the person may not execute a
9-4 bail bond or act as a surety under this section until the person
9-5 has remedied the violation.
9-6 (c) A person executing a bail bond or acting as a surety
9-7 under this section who has been paid a fee for executing the bond
9-8 or acting as the surety is not relieved of liability on the bond
9-9 solely because the person has not been employed to represent the
9-10 principal on the merits of the criminal case.
9-11 SECTION 8. Subsection (b), Section 1704.207, Occupations
9-12 Code, is amended to read as follows:
9-13 (b) If a principal is surrendered under Subsection (a) and
9-14 the principal[, an agent of the board of the county in which the
9-15 bond was executed,] or an attorney representing the state or an
9-16 accused in the case determines that a reason for the surrender was
9-17 without reasonable cause, the person may contest the surrender in
9-18 the court that authorized the surrender.
9-19 SECTION 9. Section 1704.211, Occupations Code, is amended by
9-20 amending Subsection (b) and adding Subsection (d) to read as
9-21 follows:
9-22 (b) An agent designated by a power of attorney under
9-23 Subsection (a) for a corporation holding a license under this
9-24 chapter must be designated by the corporation in the corporation's
9-25 application for a license [holder under this chapter].
9-26 (d) A corporation may limit the authority of an agent
10-1 designated under Subsection (a) by specifying the limitation in the
10-2 power of attorney that is filed with the county clerk and the
10-3 board.
10-4 SECTION 10. Subsection (c), Section 1704.212, Occupations
10-5 Code, is amended to read as follows:
10-6 (c) For purposes of this section:
10-7 (1) a corporation is considered in default on a bail
10-8 bond beginning on the 11th day after the date the trial court
10-9 enters a final judgment on the scire facias and ending on the date
10-10 the judgment is satisfied, [or] set aside, or superseded; and
10-11 (2) a corporation is not considered in default on a
10-12 bail bond if, pending appeal, the corporation deposits cash or a
10-13 supersedeas bond in the amount of the final judgment with the court
10-14 in which the bond is executed.
10-15 SECTION 11. Subchapter E, Chapter 1704, Occupations Code, is
10-16 amended by adding Section 1704.213 to read as follows:
10-17 Sec. 1704.213. OFFICE LOCATION. (a) A license holder shall
10-18 maintain an office in the county in which the license holder holds
10-19 a license.
10-20 (b) Not later than the seventh day after the date a license
10-21 holder opens a new office or moves an office to a new location, the
10-22 license holder shall notify the board of the location of the
10-23 office.
10-24 SECTION 12. The heading of Section 1704.302, Occupations
10-25 Code, is amended to read as follows:
10-26 Sec. 1704.302. PROHIBITED REFERRALS OF OR EMPLOYMENTS WITH
11-1 BONDING BUSINESS; OFFENSE.
11-2 SECTION 13. Section 1704.302, Occupations Code, is amended
11-3 by adding Subsection (c) and by redesignating existing Subsection
11-4 (c) as Subsection (d) to read as follows:
11-5 (c) A person may not accept or receive from a license holder
11-6 money, property, or any other thing of value as payment for
11-7 employment with a bonding business if, within the preceding 10
11-8 years, the person has been convicted of a misdemeanor involving
11-9 moral turpitude or of a felony.
11-10 (d) A person commits an offense if the person violates this
11-11 section. An offense under this section is a Class A misdemeanor.
11-12 SECTION 14. Subsections (b) and (c), Section 1704.303,
11-13 Occupations Code, are amended to read as follows:
11-14 (b) A person may not advertise as a bail bond surety in a
11-15 county unless the person holds a license issued under this chapter
11-16 by a bail bond board in that county. A person does not violate
11-17 this subsection if the person places an advertisement that appears
11-18 in more than one county and:
11-19 (1) the advertisement clearly indicates the county or
11-20 counties in which the person holds a license issued under this
11-21 chapter; and
11-22 (2) any local telephone number in the advertisement is
11-23 a local number only for a county in which the person holds a
11-24 license issued under this chapter.
11-25 (c) A person commits an offense if the person violates this
11-26 section. An offense under this section is a Class B [C]
12-1 misdemeanor.
12-2 SECTION 15. Section 1704.304, Occupations Code, is amended
12-3 by adding a new Subsection (d) and redesignating current Subsection
12-4 (d) as Subsection (e) to read as follows:
12-5 (d) A person may not place a device in a place of detention,
12-6 confinement, or imprisonment that dispenses a bail bond in exchange
12-7 for a fee.
12-8 (e) A person commits an offense if the person violates this
12-9 section. An offense under this section is a Class B misdemeanor.
12-10 SECTION 16. (a) Except as provided by Subsection (b) of
12-11 this section, the changes in law made by this Act to the
12-12 requirements for an original bail bond license or to renew a bail
12-13 bond license apply only to an application for a bail bond license
12-14 or to renew a bail bond license that is made on or after the
12-15 effective date of this Act.
12-16 (b) The changes in law made by this Act to Section 1704.152,
12-17 Occupations Code, relating to the renewal of a bail bond license by
12-18 a person who holds a bail bond license immediately before the
12-19 effective date of this Act apply only to a renewal that occurs on
12-20 or after September 1, 2002.
12-21 SECTION 17. The change in law made by this Act to Subsection
12-22 (c), Section 1704.302, Occupations Code, applies only to a person
12-23 employed by a bonding business after the effective date of this
12-24 Act.
12-25 SECTION 18. (a) The change in law made by this Act to
12-26 Section 1704.303, Occupations Code, applies only to an offense
13-1 committed on or after the effective date of this Act.
13-2 (b) For purposes of this section, an offense is committed
13-3 before the effective date of this Act if any element of the offense
13-4 occurs before that date. An offense committed before the effective
13-5 date of this Act is covered by the law in effect on the date the
13-6 offense is committed, and the former law is continued in effect for
13-7 that purpose.
13-8 SECTION 19. This Act takes effect September 1, 2001.