HBA-NMO H.B. 1480 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1480 By: Hinojosa Criminal Jurisprudence 3/18/1999 Introduced BACKGROUND AND PURPOSE Current law requires that a bail bondsman be licensed and regulated by a bail bond board, but only in counties with a population of or greater than 110,000. Bail bondsmen are largely unregulated in the 240 counties which have no bail bond board. H.B. 1480 establishes a statewide certification program administered by the Texas Department of Licensing and Regulation (department) that provides for a certification examination and continuing education requirements. This bill also creates the Bail Bondsman Advisory Council as an advisory committee to the department. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the commissioner of licensing and regulation in SECTION 2 of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Title 44, V.T.C.S., by adding Article 2372p-4, as follows: ARTICLE 2372p-4. STATE CERTIFICATION OF BAIL BONDSMEN Sec. 1. DEFINITIONS. Defines "commissioner" as the commissioner of licensing and regulation, "department" as the Texas Department of Licensing and Regulation, and "person" as an individual designated to act as an agent of a corporation licensed to execute bail bonds for compensation. Provides that the definitions in Article 2372p-3, V.T.C.S. (Licensing and Regulation of Bail Bondsmen), apply to this article. Sec. 2. CERTIFICATE OF REGISTRATION REQUIRED; PENALTY. (a) Prohibits a person from executing a bail bond in any county of this state unless the person holds a certificate of registration issued under this article, in addition to any other legal requirements. Provides that a person is entitled to a certificate of registration if the person passes the certification examination and pays all required fees. (b) Provides that a person is exempt from the certification examination requirement if the person holds a license under Article 2372p-3, V.T.C.S., issued before September 1, 1999; held a license under Article 2372p-3, V.T.C.S., issued before September 1, 1997, if that license was never revoked or suspended before expiration, and renewal was not refused by the department; or the person acted as a surety on a bond for compensation in a county in which a license to operate as a bondsman was not required before September 1, 1999. (c) Authorizes a person exempt under Subsection (b) to obtain a certificate of registration from the department by filing a sworn statement that demonstrates to the satisfaction of the commissioner, that the person is eligible for the exemption claimed. (d) Establishes that a certificate of registration issued under this article expires on the second anniversary of issuance and that the certificate is not transferable. (e) Provides that a person commits a Class A misdemeanor if the person operates as a bondsman without a certificate of registration issued under this article. Sec. 3. EXEMPTION. Provides that this article does not apply to a person licensed to practice law by the Supreme Court of Texas. Sec. 4. CERTIFICATION EXAMINATION; REQUIREMENTS. (a) Provides that a person who desires to operate as a bondsman in this state must pass the certification examination required by this section, except as otherwise provided by this article. (b) Provides that the certification examination must cover topics involved in the operation of a bail bond business. Requires the department to approve, administer, and grade the examination. (c) Requires an applicant to pay a $100 examination fee to the department to cover the costs of administering the examination. (d) Requires the department to offer the examination at least semiannually. (e) Provides that a person who fails the examination is entitled to take a subsequent examination on payment of an additional fee and that the person must wait three months before taking the subsequent examination. Prohibits a person who has failed the examination twice from retaking the examination before the anniversary of the second examination. (f) Provides that examination grading disputes are governed by the contested case provisions of Chapter 2001, Government Code (Administrative Procedure). Authorizes appeals of a decision regarding a dispute to a district court as provided under Article 2372p-3, V.T.C.S. Sec. 5. CONTINUING EDUCATION REQUIREMENTS. (a) Provides that a bondsman, to renew the certificate of registration, must complete five hours of continuing education annually through a qualified program. (b) Requires the department to certify qualified continuing education programs. Provides that the courses offered by a program must cover all major topics involved in the operation of a bail business, for the program to be eligible for certification. (c) Requires the provider of continuing education to retain the fee charged to cover the cost of presenting the program. Provides that the fee must be paid in full by the participant and prohibits the provider from paying or waiving the fee. (d) Requires each provider of continuing education to provide the department with a list that identifies each person who participated in the continuing education program and states the number of hours of instruction actually attended and the fees paid by participants. Sec. 6. CERTIFICATE RENEWAL. Provides that a person who holds a certificate of registration issued under this article is entitled to renew the certificate if the person demonstrates to the satisfaction of the commissioner compliance with the continuing education requirements, pays any required renewal fee, and complies with any other requirements for renewal. Sec. 7. ADVISORY COUNCIL. (a) Establishes the Bail Bondsman Advisory Council (council) as an advisory committee to the department. (b) Provides that the council is composed of nine members appointed by the commissioner. (c) Requires the commissioner to appoint as members of the council an assistant attorney general for this state, an active judge in this state with experience in criminal law matters, a member of the state legislature, an elected prosecuting attorney in this state, a sheriff in this state, two individuals each of whom is licensed as an agent for a corporation that acts as a surety and is not licensed as a bondsman, and two individuals each of whom is licensed to execute bail bonds as a noncorporate surety. (d) Provides that a member of the advisory council serves a two-year term or until the member's successor is appointed. Provides that a member who is a public official serves for two years or until the member leaves the position that qualifies the member for service. (e) Provides that a member of the advisory council is not entitled to compensation for service on the committee but is entitled to reimbursement for reasonable travel expenses at the rate provided for state employees in the General Appropriations Act. (f) Requires the advisory council to advise the commissioner on the contents of the certification examination and to assist the department in the evaluation of continuing education programs. (g) Authorizes the advisory council to recommend standards for continuing education programs, including standards relating to the qualifications of program providers and instructors and the level of program fees; recommend topics to be covered in a continuing education course; and propose rules for adoption by the commissioner to implement this article. (h) Provides that the advisory council is not subject to Chapter 2110, Government Code (State Agency Advisory Committees.) SECTION 2. (a) Effective date: September 1, 1999, except as provided by this section. (b) Provides that a person is not required to hold a certificate of registration issued under Article 2372p-4, V.T.C.S., until January 1, 2000. (c) Requires the commissioner to adopt rules as necessary to implement Article 2372p-4, V.T.C.S., no later than December 1, 1999. (d) Provides that a person who, on September 1, 1999, holds a license issued by a county bail bond board under Article 2372p-3, V.T.C.S., and receives a certificate of registration under Article 2372p-4, V.T.C.S., without compliance with the examination requirements imposed under that article, must comply with the continuing education requirements imposed under that article no later than September 1, 2000. SECTION 3. Emergency clause.