HBA-NMO S.B. 739 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 739
By: Armbrister
Criminal Jurisprudence
5/4/1999
Engrossed



BACKGROUND AND PURPOSE 

Current law does not specifically outline the authority of a bail bond
board with respect to the suspension or revocation of a bail bondsman
license.  S.B. 739 modifies the authority of local bail bond boards to
regulate bail bondsmen and  modifies the requirements of licensed bail
bondsmen. 
 
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 act 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 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 a person,  if such a person wishes to execute bonds that in the
aggregate exceed this total, 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 a 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. Prohibits collateral from being refunded or retained except in
accordance with the written agreement.  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 6, 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), and (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.  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 7.  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 8.  Makes application of Sections 5 and 7 of this Act prospective.

SECTION 9.  Emergency clause.
            Effective date: 90 days after adjournment.