DENTON COUNTY BAIL BOND BOARD
LOCAL RULES
PURSUANT to the provisions of Texas Occupations Code Chapter 1704, as amended, the Denton County Bail Bond Board Rules and Regulations, herein "Rules," are promulgated to govern the giving and making of bail bonds in Denton County, Texas. Unless otherwise noted, all references to sections or the "Act" are references to Texas Occupations Code Chapter 1704, as amended.
DEFINITIONS
“Agent”, as used in these rules, shall mean any person hired by a licensee who (a) meets and negotiates with members of the public for the purpose of selling bail bonds; (b) receives money as a fee or money or property as collateral for bail bonds; (c) presents bonds to the Sheriff’s Department for approval; and/or (d) interviews or takes information from persons who have been released from jail pursuant to a bond provided by the licensee.
“Applicant” means a corporate surety or individual surety seeking a license or renewal of a license in Denton County.
"Board" means the Denton County Bail Bond Board.
"Bond" includes cash deposit and any other similar deposit or written undertaking to assure appearance.
"Bondsman" means any person who for hire or for any compensation deposits any cash or bonds or other securities, or executes as surety or cosurety any bond for other persons.
"Company" includes corporations and other business entities.
“County” means Denton County.
"Licensee" means a person licensed hereunder.
“Loss payee clause” means a clause in a contract of insurance which provides that in the event of payment being made under the policy in relation to the insured risk, payment will be made to a third party (the County) rather than to the insured beneficiary of the policy (the Licensee).
"Person" means an individual or corporation.
1. MEETING TIMES
The Denton County Bail Bond Board shall meet at least once a month. The Denton County Bail Bond Board shall meet:
A. regularly at 8:30 a.m. on the fourth Thursday of each month, and on the third Thursday in the months of November and December; or
B. for a special meeting upon the request of three (3) or more members of the Board in accordance with the posting requirements of the Texas Open Meetings Act.
2. MEETING LOCATION
The Board shall meet at the Denton County Courthouse on the Square Commissioners Courtroom, located, 110 West Hickory, Denton, Texas, unless notice is posted specifying otherwise.
3. AGENDA ITEMS:
Items submitted for the Bail Bond Board Agenda shall be submitted to the Staff Assistant no later than the close of business on the Monday of the week before the regular Thursday Bail Bond Board Meeting to give the staff time to prepare the agenda and timely submit it to the Bail Bond Board Counsel for approval before posting. Emergency items may be considered on an individual basis so long as they are in compliance with the Texas Open Meetings Act, Tex. Gov’t Code Ann. Ch. 551 (Vernon 1993 and as amended).
4. APPLICATIONS FOR LICENSES:
A. All new applications for bail bond licenses shall be submitted to the Bail Bond Board no less than thirty (30) calendar days before the date of the regular Board Meeting at which the application is to be considered. Applications submitted less than thirty (30) calendar days before the date of the Board Meeting will not be placed on the agenda but will be held until the next regular meeting. All corrections to applications must be submitted to the Board no later than the Monday of the week before the regular Thursday Bail Bond Board Meeting. Corrections not timely received by the Board will not be considered.
B. Applications for renewal shall be submitted not later than the 31st day before the license expiration date. All corrections to renewal applications must be submitted to the Board no later than the Monday of the week before the regular Thursday Bail Bond Board Meeting. Applications received by the Board later than the 31st day before the license expiration date will not be considered. Corrections not timely received will not be considered.
C. The application fee for an original or renewal license is not refundable in the event the board denies the application. An application that is withdrawn by the applicant prior to the board’s hearing shall not be considered by the Board, and the application fee shall be returned.
D. The Applicant for an original Bail Bond Surety License or for the renewal thereof shall attend the meeting of the Board at which the application shall be considered. If Applicant is unable to attend, his or her attorney may appear on the Applicant’s behalf. If neither the Applicant nor their attorney is present, the Board may table the discussion until a future meeting or deny the original or renewal application.
E. Applicant and all employees/agents of the Applicant shall have a criminal background check conducted before Board approval by the Denton County Sheriff’s Department to ensure compliance with Tex. Occ. Code § 1704.153.
5. CRIMINAL BACKGROUND CHECKS:
No licensee shall employ, as an agent, or any person who in the last 10 years has been finally convicted of an offense constituting a felony or a misdemeanor involving moral turpitude.
Before assuming the duties of Licensee or Agent, as defined under these rules, Licensees and Agents must pass a criminal background check conducted by the Denton County Sheriff’s Department. Upon passing the background check, Licensee or Agent shall be placed on the Denton County Sheriff Department’s list of licensees/agents who are allowed to perform the duties of a Licensee or Agent.
6. STANDING COMPLAINT COMMITTEE:
The Denton County Bail Bond Board has a standing complaint committee. The committee shall consist of the Sheriff’s representative, the District Attorney’s representative, and the licensed bail bond sureties’ representative to the Board. The counsel to the Board may attend the committee meetings and provide legal advice to the committee.
Upon the receipt of a sworn complaint against a bondsman licensed in Denton County, the committee shall review and investigate the complaint. Upon a majority vote of the committee, the committee shall submit a written recommendation to the Board’s staff that the complaint be referred to the Board or that the complaint not be referred to the Board. Each committee member shall have one vote. Upon the recommendation of no referral to the Board, the Board’s staff shall notify the bondsman and the complainant(s) of such decision. The Board may review and reverse the committee’s recommendation at a regular or called meeting.
7. STANDING LOCAL RULES COMMITTEE:
The Denton County Bail Bond Board has a standing local rules committee. The committee shall consist of three Board members one of which is licensed bail bond sureties’ representative and two other Board members appointed by the Chair. The counsel to the Board may attend the committee meetings, aid in drafting rules and amendments to rules, and provide legal advice to the committee.
8. LICENSED BAIL BOND SURETY ADVERTISING
The license number of each licensed bail bond surety must appear on the following advertisements: yellow pages or telephone book ads, bill boards, newspapers, magazines, and other widely distributed media publications. The license number is not required on business cards. Violation of this rule may result in the suspension or revocation of the license.
9.
ANNUAL ELECTION OF THE LICENSED BAIL BOND SURETIES’
REPRESENTATIVE / SUBSTITUTE FOR ABSENT REPRESENTATIVE
A. The election of the licensed bail bond sureties’ representative shall begin on the second Monday of January of each year and shall continue for five (5) consecutive business days.
B. To vote, a licensed bail bond surety shall appear in person at the Bail Bond Board offices and shall provide the elections officer with photo identification. The elections officer shall be the staff assistant to the Board unless otherwise designated by the Board at its sole discretion. The licensed bail bond surety desiring to vote shall sign in on the Licensed Bail Bond Surety Roster provided at the time of the election.
C. The elections shall be conducted by secret ballot on ballots provided by the Board. The Ballots are the property of the Denton County Bail Bond Board.
D. The ballots will be placed in a sealed ballot box and shall be opened and the votes tallied and canvassed by the Board at its first regular meeting after the election is conducted. Ballots where more than one candidate is marked are VOID and shall not be counted. If a licensed bail bond surety accidentally marks the wrong candidate, he/she shall advise the elections officer and the elections officer will exchange the Ballot and shall immediately destroy the miss-marked Ballot.
E. The licensed bail bond sureties’ representative shall be elected by a simple majority of the votes cast. The licensed bail bond sureties’ representative shall take office at the regular February meeting of the Board.
F. In the event of a tie, a runoff election shall begin on the Monday following the regular meeting where the ballots were canvassed and shall continue for five (5) consecutive business days. The runoff ballots will be handled in the same manner as a regular election of the licensed bail bond sureties’ representative. They shall be opened and the votes tallied and canvassed by the Board at its first regular meeting after the runoff election is conducted. The licensed bail bond sureties’ representative in office at the time of the annual election shall holdover until a successor is qualified. The licensed bail bond sureties’ representative elected in a runoff election may take office immediately upon the tally and canvass of the votes.
G. In the event that the licensed bail bond sureties’ representative is unable to attend a Board meeting, such representative may substitute another licensed surety (in good standing with the Board) in his or her place upon written notice to the Board Chair.
10. ANNUAL ELECTION OF THE PRESIDING OFFICER
The Board shall conduct an annual election of the presiding officer at the regular March meeting of the Board beginning in March, 2004. The presiding officer shall be elected by a simple majority vote of the quorum present. The presiding officer may succeed him or herself.
11. SECURITY FOR BAIL BOND LICENSES
A. Cashier’s Checks and Certificates of Deposit
1. Cashier’s checks and certificates of deposit intended for use as security for a bail bond license shall be styled “Denton County Treasurer for the benefit of ________”.
2. The Board will not accept certificates of deposit or cashier’s checks containing, or subject to, set-off provisions. 3. Applicants for a license/Licensed Bail Bond Sureties using cashier’s checks or certificates of deposit for security shall execute and have the issuing bank execute a security agreement to the Board. The applicant shall deliver the original to the Board. The form for the security agreement is attached to these Rules and will be distributed with Applications. Applicants for a license/Licensed Bail Bond Sureties using cashier’s checks or certificates of deposit for security shall deliver the original cashier’s checks or certificates of deposit to the Denton County Treasurer.
3. The Denton County Treasurer shall take possession of the original cashier’s checks or certificates of deposit and the Security Agreement. The Treasurer shall deposit the cashier’s checks into a bond security account.
B. Real Property as Collateral
1. When a licensee submits real property as collateral (a) it must be appraised by a real estate appraiser who is a member in good standing of a nationally recognized professional appraiser society or trade organization that has an established code of ethics, educational program, and professional certification program, e.g. Member of Appraisers Institute (M.A.I.) or Society of Real Estate Appraisers (S.R.E.A.); or provide proof of value according to a statement from the county from the county’s most recent certified tax appraisal roll; (b) it must have a minimum appraised value of Fifty Thousand Dollars ($50,000.00); (c) it must be re-appraised for each license renewal thereafter or if the certified tax appraisal roll is used to determine value, a statement must be annually provided to the Board on the anniversary of the effective date of surety’s license.
2. Real Property Deeded in Trust to the Board must meet the following requirements;
a. Property cannot be exempt from forced sale.
b. Such property must be unencumbered.
c. The following documentation must be submitted;
i. Original or Certified copy of warranty deed executed and filed running in the name of the licensee, and
ii. Exhibit C of the Title Commitment specifying that there are no outstanding liens against the property other than the Board’s deed of trust.
d. Surety must annually proof of property insurance covering any improvements on the property in accordance with section 11(b)(6) of these Rules; and
e. Insurance policy provides that Denton County and the Denton County Bail Bond Board is a loss payee in the event of destruction/damage of the property submitted as collateral.
3. Official tax receipt photocopies of all State, County, City and School District Taxes through the previous tax year must be timely submitted with application or renewal application.
4. Any deeds of trust must in on a form approved by the Board. The Board must be the grantee in the Deeds of Trust and such must be recorded with the Denton County Clerk or in the county wherein the property used as collateral is located. Prior to recording, the deed of trust must be approved as directed by the Board. The original or certified copy of the recorded deed of trust will be held and secured as directed by the Board.
5. On or before June 30th of each year, bondsmen with real estate pledged as collateral for making bail bonds will provide a copy of paid tax receipts for each piece of real estate so pledged. These receipts must show proof of taxes paid in full by since the previous June 30th, and must show such payment for any county, city, school district and other ad valorem taxes which are due for the previous calendar year. Failure to comply with this provision will result in the applicable property being immediately deducted from posted collateral as of June 30th of the applicable year. If a bondsman provides proof that taxes were paid in full by June 30th, but provides that proof after June 30th, any collateral previously deducted by the Board's Secretary shall be immediately restored to the bondsman's account without the necessity of further Board action.
If, however, a bondsman fails to pay taxes in full by June 30th but makes a later payment in full, he must make a request to the Board for reinstatement of collateral. Upon written request from a bondsman received ten (10) days before a scheduled monthly meeting of the Board, a request to reinstate real estate which has been deducted from posted collateral for non-payment or late payment of property taxes as stated above shall be placed on the agenda for the Board's consideration. If the bondsman provides proof at such a meeting that all property taxes and penalties have been fully paid as of that time, the real estate shall be immediately restored to a bondsman's posted collateral.
6. Within 10 days after the insurance policy renewal date, bondsmen with real estate pledged as collateral for making bail bonds will annually provide proof of insurance coverage for each piece of real estate improvements so pledged. The amount of the policy is not required to exceed the value of the improvement that is pledged as collateral. These policies must show proof of that Denton County and the Denton County Bail Bond Board are loss payees in the event of destruction/damage to the property. Failure to comply with this provision will result in the applicable property being immediately deducted from posted collateral. If a bondsman provides proof that insurance is currently in effect, but provides that proof after the due date (i.e., within 10 days after the insurance policy renewal date), he must make a request to the Board for reinstatement of collateral. Upon written request from a bondsman received ten (10) days before a scheduled monthly meeting of the Board, a request to reinstate real estate which has been deducted from posted collateral for not providing proof of insurance as stated above shall be placed on the agenda for the Board's consideration. If the bondsman provides proof at such a meeting that the bondman has properly insured the property as of that time, the real estate shall be immediately restored to a bondsman's posted collateral.
C. Increases/Modifications/Substitutions of Security: At such property licensee’s option, he/she can deposit with the Denton County Treasurer any amount more than the Fifty Thousand dollars ($50,000.00) minimum required security, as approved by the Board, as additional security. No collateral of any kind submitted to obtain or renew a license can be changed, substituted, or modified in any way that might affect the Board’s rights of execution against it, without prior written approval from the Board.
12. NOTICE OF CHANGES IN AGENTS OR ATTORNEYS
Both individual and corporate sureties shall notify the Board in writing of any change in the registered or designated agent or attorney for service of citation within five business days of such a change. Sureties shall include the full name, address and telephone number of the new registered or designated agent or attorney for service. This includes notice of the waiver or rescinding of the waiver of citation as contemplated by Texas Code of Criminal Procedure art. 22.03 filed with the clerks of the courts.
13. NAMES ON BONDS
All sureties shall include their full names, addresses for service of citation, and license numbers, all legibly written, on the face of each bond they write in Denton County. Failure to comply with this rule may result in the suspension or revocation of a license.
14. AUTHORITY TO SIGN BAIL BOND DOCUMENTS
Only licensed sureties, or their attorneys at law, may sign documents for court cases or that bind the sureties in any aspect of the bail bond business. Failure to comply with this rule may result in the suspension or revocation of a license.
15. PARTIAL RELEASES OF PROPERTY
Upon written request from a licensed surety still conducting bail bond business in Denton County, the Board may release a portion of the security it holds. The Board shall not reduce the surety’s total security to an amount less than that required by § 1704.160, or to an amount that would violate the applicable bond to security ratio established by § 1704.203. Written requests for release shall be filed no less than 45 days prior to the meeting date where the release is to be heard. The number of requests for release shall not exceed one per six month period, or twice per year per licensee. The release is within the sole discretion of the Board. This rule is not available to sureties no longer in business or with suspended licenses.
16. 15. OFFICE
All licensees must maintain an office in Denton County and must notify the Board within seven (7) days of opening a new office or moving an existing office to a new location. For purposes of these rules, “office” is defined as any location where a licensee conducts bail bond business, maintains business records, employs staff, meets with clients, accepts payment for bonds, and/or installs and maintains an advertised phone number.
No person, firm or corporation that is not licensed to make bail bonds may use a phone number, address, or advertising of any kind to solicit or refer bond business to a licensee or to any non-licensee. Further, no licensee may use a phone number, address or office of a non-licensee to conduct any bail bond activities.
17. 17. TERMINATION OF AGENT/EMPLOYEE
Licensee must immediately notify the Denton County Sheriff’s Department when an Agent is no longer employed by Licensee.