HBA-RBT C.S.H.B. 883 76(R)BILL ANALYSIS
Office of House Bill AnalysisC.S.H.B. 883
By: Talton
Criminal Jurisprudence
4/26/1999
Committee Report (Substituted)
BACKGROUND AND PURPOSE
Currently, various bail bond boards interpret the bail bond act
differently. There are no specifications regarding what a board may do
with respect to suspension or revocation of a license. C.S.H.B. 883 revises
the authority of local bail bond boards to regulate bail bondsmen and
revises the procedure in the event of an appeal of an order of a local bail
bond board. This bill also revises the authority of a prosecutor to settle
the liability of a bail bondsman.
RULEMAKING AUTHORITY
It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 2(2), Article 2372p-3, V.T.C.S. (Chapter 550,
Acts of the 63rd Legislature, Regular Session, 1973), to redefine
"bondsman."
SECTION 2. Amends Section 3, Article 2372p-3, V.T.C.S. (Chapter 550, Acts
of the 63rd Legislature, Regular Session, 1973), by amending Subsections
(b) and (e), to provide that a person is ineligible to be licensed as a
bondsman or as an agent for a corporate surety unless the person has been
employed continuously in all phases of the bonding business by a person
licensed under this Act for a period of at least 24 months on the date that
the individual applies for the license or applies to act as an agent for a
corporate surety, provided, however, that this provision does not apply
within the first 24 months after a county creates a bail bond board, and
the person has no unpaid final judgment in any county arising out of a bail
bond forfeiture. Authorizes persons licensed to practice law in this state
and approved by the sheriff as having sufficient security for such
obligations as they may undertake to execute bail bonds or act as sureties
for persons they represent, provided the aggregate total of all outstanding
bail bonds executed by such persons in the county does not exceed $250,000.
Provides that if a person wishes to execute bonds that in the aggregate
exceed this total, such person must apply for and be granted a license by
the board. Makes conforming and nonsubstantive changes.
SECTION 3. Amends Section 4, Article 2372p-3, V.T.C.S. (Chapter 550, Acts
of the 63rd Legislature, Regular Session, 1973), as follows:
New title: RECORDS AND COLLATERAL ACCOUNT REQUIRED OF LICENSE HOLDER.
Requires the license holder to maintain a record for at least four years
after final disposition of the case. Requires an individual licensed under
this Act to maintain as trustee a cash collateral account separate from
other bank accounts used by that individual for the operation of a bonding
business. Provides that the individual must execute a written agreement
that describes the conditions under which collateral will be refunded or
retained. Requires the individual to deposit cash collateral into the
collateral account by the fifth banking day after the cash is received.
Deletes text prohibiting a security being held for both payment of a bail
bond fee and assurance of a principal's court appearance that is in excess
of the risk involved. Makes conforming and nonsubstantive changes.
SECTION 4. Amends Section 4, Article 2372p-3, V.T.C.S. (Chapter 550, Acts
of the 63rd Legislature, Regular Session, 1973), to require that
applications be accompanied by 3 letters of recommendation. Sets forth
the required contents of the letters. Requires an applicant who has been
licensed in a county to include a sworn statement by the applicant and sets
forth the required contents of the statement. Makes conforming and
nonsubstantive changes.
SECTION 5. Amends Section 15(a), (g), (j), Article 2372p-3, V.T.C.S.
(Chapter 550, Acts of the 63rd Legislature, Regular Session, 1973), to
prohibit a person from acting as a bail bondsman or advertising that the
person may post a bail bond with that county without holding a license
issued by that board. Prohibits a person from placing an advertisement for
a bail bondsman or a device that dispenses a bail bond in a detention
facility. Makes it a Class A, rather than a Class C misdemeanor to violate
this section. Makes conforming and nonsubstantive changes.
SECTION 6. Repealer: Section 15(k) and (l) (relating to punishment for
violations), Article 2372p3, V.T.C.S. (Chapter 550, Acts of the 63rd
Legislature, Regular Session, 1973).
SECTION 7. Amends Section 14A(a), Article 2372p-3, V.T.C.S. (Chapter 550,
Acts of the 63rd Legislature, Regular Session, 1973), to prohibit a
corporation from executing bail bonds if the corporation is in default on
two or more bail bonds in a county, rather than five or more. Makes
conforming changes.
SECTION 8. Makes application of Sections 5 and 6 of this Act prospective.
SECTION 9. Emergency clause.
Effective date: 90 days after adjournment.
COMPARISON OF ORIGINAL TO SUBSTITUTE
The substitute differs from the original by replacing SECTION 1 of the
original, including Section 1 (relating to a declaration of policy),
Section 2 (definitions), Section 3 (relating to licensing requirements),
Section 4 (relating to records), Section 5 (relating to county bail bond
boards), Section 6 (relating to applications and issuance of licenses),
Section 7 (relating to reappraisal of real property), Section 8 (relating
to individuals as sureties), Section 9 (relating to corporate sureties),
Section 10 (relating to expiration and renewal of licenses), Section 11
(relating to refusal, suspension, and revocation of licenses), Section 12
(relating to procedures for suspension or revocation of licenses), Section
13 (relating to court review), Section 14 (relating to surrender of
principal by the surety), Section 15 (relating to termination and
settlement of liability on bonds), Section 16 (relating to acceptance of
bonds), and Section 17 (relating to acts subject to penalties), Article
2372p-3, V.T.C.S., with SECTIONS 1-7 of the substitute which define
bondsman, sets forth licensing qualifications, modifies record keeping
requirements, modifies prohibited acts, and include a repealer. Please see
the Section-by-Section Analysis in this document for the new SECTIONS.
The substitute removes SECTION 2 (effective date and prospective clause) of
the original.
Redesignates SECTION 3 (effective date) as SECTION 9.