1-1 By: Armbrister S.B. No. 1119
1-2 (In the Senate - Filed March 6, 2001; March 7, 2001, read
1-3 first time and referred to Committee on Criminal Justice;
1-4 April 23, 2001, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 6, Nays 0; April 23, 2001,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1119 By: Armbrister
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the regulation of bail bond sureties; providing a
1-11 penalty.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Subdivision (2), Section 1704.001, Occupations
1-14 Code, is amended to read as follows:
1-15 (2) "Bail bond surety" means a person who:
1-16 (A) executes a bail bond as a surety or cosurety
1-17 for another person; or
1-18 (B) for compensation deposits cash to ensure the
1-19 appearance in court of a person accused of a crime.
1-20 SECTION 2. Subchapter C, Chapter 1704, Occupations Code, is
1-21 amended by adding Section 1704.109 to read as follows:
1-22 Sec. 1704.109. SOLICITATION AND ADVERTISEMENT. A board by
1-23 rule may regulate solicitations or advertisements by or on behalf
1-24 of license holders to protect the public from harassment, fraud, or
1-25 misrepresentation.
1-26 SECTION 3. Section 1704.152, Occupations Code, is amended by
1-27 amending Subsection (a) and adding Subsection (c) to read as
1-28 follows:
1-29 (a) To be eligible for a license under this chapter, an
1-30 individual, including an agent designated by a corporation in an
1-31 application, must:
1-32 (1) be a resident of this state and a citizen of the
1-33 United States;
1-34 (2) be at least 18 years of age; [and]
1-35 (3) possess the financial resources required to comply
1-36 with Section 1704.160, unless the individual is acting only as
1-37 agent for a corporation holding a license under this chapter; and
1-38 (4) have, in the two years preceding the date a
1-39 license application is filed:
1-40 (A) at least one year of continuous work
1-41 experience in the bail bond business; and
1-42 (B) completed at least eight hours of continuing
1-43 legal education in criminal law courses or bail bond law courses
1-44 that are approved by the State Bar of Texas and that are offered by
1-45 an institution of higher education accredited by the state.
1-46 (c) Subsection (a)(4) does not apply to the issuance of an
1-47 original license:
1-48 (1) in a county before the first anniversary of the
1-49 date a board is created in the county; or
1-50 (2) to an individual who applies to operate the bail
1-51 bond business of a license holder who has died if the individual is
1-52 related to the decedent within the first degree by consanguinity or
1-53 is the decedent's surviving spouse.
1-54 SECTION 4. Section 1704.154, Occupations Code, is amended by
1-55 amending Subsections (b) and (c) and adding Subsections (d) and (e)
1-56 to read as follows:
1-57 (b) The application must:
1-58 (1) be in a form and contain the information
1-59 prescribed by the board;
1-60 (2) state:
1-61 (A) the applicant's name, age, and address;
1-62 (B) if the applicant is a corporation, whether
1-63 the applicant is:
1-64 (i) chartered or admitted to do business
2-1 in this state; and
2-2 (ii) qualified to write fidelity,
2-3 guaranty, and surety bonds under the Insurance Code;
2-4 (C) the name under which the bail bond business
2-5 will be conducted, including a bail bond business that is a
2-6 corporation; [and]
2-7 (D) each place, including the street address and
2-8 municipality, at which the business will be conducted; and
2-9 (E) the amount of cash or the cash value of a
2-10 certificate of deposit or cashier's check that the applicant
2-11 intends to deposit with the county treasurer if the applicant's
2-12 application is approved or, if the applicant is an individual
2-13 intending to execute nonexempt real property in trust to the board,
2-14 the value of the real property;
2-15 (3) if the applicant is an individual, be accompanied
2-16 by[:]
2-17 [(A)] a list, as required by Section 1704.155,
2-18 of nonexempt real property owned by the applicant that the
2-19 applicant intends to execute in trust to the board if the
2-20 applicant's application is approved; and
2-21 [(B) a statement showing the amount of cash or
2-22 cash equivalent, or the cash value of a certificate of deposit or
2-23 cashier's check, that the applicant intends to deposit with the
2-24 county treasurer if the applicant's application is approved; and]
2-25 (4) be accompanied by:
2-26 (A) the applicant's complete, sworn financial
2-27 statement;
2-28 (B) the applicant's declaration that the
2-29 applicant will comply with this chapter and the rules adopted by
2-30 the board;
2-31 (C) three letters of recommendation, each from a
2-32 person who:
2-33 (i) is reputable; and
2-34 (ii) has known the applicant or, if the
2-35 applicant is a corporation, the agent designated by the corporation
2-36 in the application [person who will be in charge of the applicant's
2-37 business in the county] for at least three years;
2-38 (D) a $500 filing fee;
2-39 (E) a photograph of the applicant or, if the
2-40 applicant is a corporation, of the agent designated by the
2-41 corporation in the application [person who will be in charge of the
2-42 applicant's business in the county];
2-43 (F) a set of fingerprints of the applicant[,]
2-44 or, if the applicant is a corporation, of the agent designated by
2-45 the corporation in the application [person who will be in charge of
2-46 the applicant's business in the county] taken by a law enforcement
2-47 officer designated by the board; [and]
2-48 (G) if the applicant [or, if the applicant is a
2-49 corporation, the person who will be in charge of the applicant's
2-50 business in the county] is or has been licensed under this chapter
2-51 in another county:
2-52 (i) a list of each county in which the
2-53 applicant holds a license; and
2-54 (ii) a statement by the applicant that, as
2-55 of the date of the application, the applicant has no unpaid final
2-56 judgments of forfeiture against the applicant in any county in
2-57 which the applicant holds or has held a license; and
2-58 (H) if the applicant is a corporation, a
2-59 statement by the designated agent of any unpaid final judgments of
2-60 forfeiture on any bond executed by the agent[, a letter from the
2-61 board of that county stating whether the applicant is in good
2-62 standing in the county in which the person is licensed].
2-63 (c) A letter of recommendation submitted under Subsection
2-64 (b)(4)(C) must:
2-65 (1) state that the applicant or, if the applicant is a
2-66 corporation, the agent designated by the corporation in the
2-67 application [person who will be in charge of the applicant's
2-68 business in the county] has a reputation for honesty, truthfulness,
2-69 fair dealing, and competency; and
3-1 (2) recommend that the board issue the license.
3-2 (d) The existence of an unpaid final judgment disclosed
3-3 under Subsection (b)(4)(H) may not bar licensure but may be
3-4 considered by the board in determining whether to grant a license
3-5 to the corporation with that agent.
3-6 (e) A corporation must file a separate corporate application
3-7 for each agent the corporation designates in the county.
3-8 SECTION 5. Section 1704.155, Occupations Code, is amended to
3-9 read as follows:
3-10 Sec. 1704.155. REAL PROPERTY LIST. A list of nonexempt real
3-11 property required under Section 1704.154(b)(3) [1704.154(b)(3)(A)]
3-12 must, for each parcel listed, include:
3-13 (1) a legal description of the property that would be
3-14 sufficient to convey the property by general warranty deed;
3-15 (2) a current statement from each taxing unit
3-16 authorized to impose taxes on the property showing:
3-17 (A) that there is no outstanding tax lien
3-18 against the property; and
3-19 (B) the net value of the property according to a
3-20 current appraisal made by a real estate appraiser who is a member
3-21 in good standing of a nationally recognized professional appraiser
3-22 society or trade organization that has an established code of
3-23 ethics, educational program, and professional certification
3-24 program;
3-25 (3) a statement by the applicant that, while the
3-26 property remains in trust, the applicant:
3-27 (A) agrees to pay the taxes on the property;
3-28 (B) will not further encumber the property
3-29 unless the applicant notifies the board of the applicant's intent
3-30 to encumber the property and the board permits the encumbrance; and
3-31 (C) agrees to maintain insurance on any
3-32 improvements on the property against damage or destruction in the
3-33 full amount of the value claimed for the improvements;
3-34 (4) a statement of whether the applicant is married;
3-35 and
3-36 (5) if the applicant is married, a sworn statement
3-37 from the applicant's spouse agreeing to transfer to the board, as a
3-38 part of the trust, any right, title, or interest that the spouse
3-39 may have in the property.
3-40 SECTION 6. Subsections (a), (b), and (c), Section 1704.160,
3-41 Occupations Code, are amended to read as follows:
3-42 (a) On receipt of notice under Section 1704.159 that an
3-43 application has been conditionally approved, the applicant, not
3-44 later than the 90th day after the date of receipt of the notice,
3-45 must:
3-46 (1) if the applicant is an individual:
3-47 (A) subject to Subsection (b), deposit with the
3-48 county treasurer a cashier's check, certificate of deposit, or
3-49 cash[, or cash equivalent] in the amount stated on the application
3-50 under Section 1704.154(b)(2)(E) [1704.154(b)(3)(B)]; or
3-51 (B) subject to Subsections (c)-(e), execute in
3-52 trust to the board each deed to the property listed on the
3-53 application under Section 1704.154(b)(3) [1704.154(b)(3)(A)]; or
3-54 (2) if the applicant is a corporation, subject to
3-55 Subsection (b), deposit with the county treasurer a cashier's
3-56 check, certificate of deposit, or cash in the amount stated on the
3-57 application under Section 1704.154(b)(2)(E) [provide to the sheriff
3-58 an irrevocable letter of credit as a cash equivalent to pay any
3-59 final judgment of a forfeiture on a bail bond executed by the
3-60 applicant].
3-61 (b) A deposit made under Subsection (a)(1)(A) or (a)(2) may
3-62 not be less than $50,000[, except that the deposit may not be less
3-63 than $10,000 in a county with a population of less than 250,000].
3-64 A deposit made to a county with a population of less than 250,000
3-65 shall be placed in a fund known as a bail security fund.
3-66 (c) The total value of the property executed in trust under
3-67 Subsection (a)(1)(B) may not be less than $50,000[, except that the
3-68 value may not be less than $10,000 in a county with a population of
3-69 less than 250,000].
4-1 SECTION 7. Section 1704.163, Occupations Code, is amended to
4-2 read as follows:
4-3 Sec. 1704.163. ATTORNEY EXEMPTION. (a) Except as provided
4-4 by this section [Subsection (c)], a person not licensed under this
4-5 chapter may execute a bail bond or act as a surety for another
4-6 person if the person:
4-7 (1) is licensed to practice law in this state; and
4-8 (2) represents the other person in a criminal case.
4-9 (b) A person executing a bail bond or acting as a surety
4-10 under this section may not engage in conduct involved with that
4-11 practice that would subject a bail bond surety to license
4-12 suspension or revocation. If the board [sheriff] determines that a
4-13 person has violated this subsection, the person may not execute a
4-14 bail bond or act as a surety under this section until the person
4-15 has remedied the violation.
4-16 (c) A person executing a bail bond or acting as a surety
4-17 under this section who has been paid a fee for executing the bond
4-18 or acting as the surety is not relieved of liability on the bond
4-19 solely because the person has not been employed to represent the
4-20 principal on the merits of the criminal case.
4-21 SECTION 8. Subsection (b), Section 1704.207, Occupations
4-22 Code, is amended to read as follows:
4-23 (b) If a principal is surrendered under Subsection (a) and
4-24 the principal[, an agent of the board of the county in which the
4-25 bond was executed,] or an attorney representing the state or an
4-26 accused in the case determines that a reason for the surrender was
4-27 without reasonable cause, the person may contest the surrender in
4-28 the court that authorized the surrender.
4-29 SECTION 9. Section 1704.211, Occupations Code, is amended by
4-30 amending Subsection (b) and adding Subsection (d) to read as
4-31 follows:
4-32 (b) An agent designated by a power of attorney under
4-33 Subsection (a) for a corporation holding a license under this
4-34 chapter must be designated by the corporation in the corporation's
4-35 application for a license [holder under this chapter].
4-36 (d) A corporation may limit the authority of an agent
4-37 designated under Subsection (a) by specifying the limitation in the
4-38 power of attorney that is filed with the county clerk and the
4-39 board.
4-40 SECTION 10. Subsection (c), Section 1704.212, Occupations
4-41 Code, is amended to read as follows:
4-42 (c) For purposes of this section:
4-43 (1) a corporation is considered in default on a bail
4-44 bond beginning on the 11th day after the date the trial court
4-45 enters a final judgment on the scire facias and ending on the date
4-46 the judgment is satisfied, [or] set aside, or superseded; and
4-47 (2) a corporation is not considered in default on a
4-48 bail bond if, pending appeal, the corporation deposits cash or a
4-49 supersedeas bond in the amount of the final judgment with the court
4-50 in which the bond is executed.
4-51 SECTION 11. Subchapter E, Chapter 1704, Occupations Code, is
4-52 amended by adding Section 1704.213 to read as follows:
4-53 Sec. 1704.213. OFFICE LOCATION. (a) A license holder shall
4-54 maintain an office in the county in which the license holder holds
4-55 a license.
4-56 (b) Not later than the seventh day after the date a license
4-57 holder opens a new office or moves an office to a new location, the
4-58 license holder shall notify the board of the location of the
4-59 office.
4-60 SECTION 12. The heading of Section 1704.302, Occupations
4-61 Code, is amended to read as follows:
4-62 Sec. 1704.302. PROHIBITED REFERRALS OF OR EMPLOYMENTS WITH
4-63 BONDING BUSINESS; OFFENSE.
4-64 SECTION 13. Section 1704.302, Occupations Code, is amended
4-65 by adding Subsection (c) and by redesignating existing Subsection
4-66 (c) as Subsection (d) to read as follows:
4-67 (c) A person may not accept or receive from a license holder
4-68 money, property, or any other thing of value as payment for
4-69 employment with a bonding business if, within the preceding 10
5-1 years, the person has been convicted of a misdemeanor involving
5-2 moral turpitude or of a felony.
5-3 (d) A person commits an offense if the person violates this
5-4 section. An offense under this section is a Class A misdemeanor.
5-5 SECTION 14. Subsections (b) and (c), Section 1704.303,
5-6 Occupations Code, are amended to read as follows:
5-7 (b) A person may not advertise as a bail bond surety in a
5-8 county unless the person holds a license issued under this chapter
5-9 by a bail bond board in that county. A person does not violate
5-10 this subsection if the person places an advertisement that appears
5-11 in more than one county and:
5-12 (1) the advertisement clearly indicates the county or
5-13 counties in which the person holds a license issued under this
5-14 chapter; and
5-15 (2) any local telephone number in the advertisement is
5-16 a local number only for a county in which the person holds a
5-17 license issued under this chapter.
5-18 (c) A person commits an offense if the person violates this
5-19 section. An offense under this section is a Class B [C]
5-20 misdemeanor.
5-21 SECTION 15. Section 1704.304, Occupations Code, is amended
5-22 by adding a new Subsection (d) and redesignating current Subsection
5-23 (d) as Subsection (e) to read as follows:
5-24 (d) A person may not place a device in a place of detention,
5-25 confinement, or imprisonment that dispenses a bail bond in exchange
5-26 for a fee.
5-27 (e) A person commits an offense if the person violates this
5-28 section. An offense under this section is a Class B misdemeanor.
5-29 SECTION 16. (a) Except as provided by Subsection (b) of
5-30 this section, the changes in law made by this Act to the
5-31 requirements for an original bail bond license or to renew a bail
5-32 bond license apply only to an application for a bail bond license
5-33 or to renew a bail bond license that is made on or after the
5-34 effective date of this Act.
5-35 (b) The changes in law made by this Act to Section 1704.152,
5-36 Occupations Code, relating to the renewal of a bail bond license by
5-37 a person who holds a bail bond license immediately before the
5-38 effective date of this Act apply only to a renewal that occurs on
5-39 or after September 1, 2002.
5-40 SECTION 17. The change in law made by this Act to Subsection
5-41 (c), Section 1704.302, Occupations Code, applies only to a person
5-42 employed by a bonding business after the effective date of this
5-43 Act.
5-44 SECTION 18. (a) The change in law made by this Act to
5-45 Section 1704.303, Occupations Code, applies only to an offense
5-46 committed on or after the effective date of this Act.
5-47 (b) For purposes of this section, an offense is committed
5-48 before the effective date of this Act if any element of the offense
5-49 occurs before that date. An offense committed before the effective
5-50 date of this Act is covered by the law in effect on the date the
5-51 offense is committed, and the former law is continued in effect for
5-52 that purpose.
5-53 SECTION 19. This Act takes effect September 1, 2001.
5-54 * * * * *