Can a Texas bail bond board grant a temporary license or extension so a surety can keep working after the license expires?

TX AG Opinion GA-0575: Can a bail bond board temporarily extend an expiring surety license?

Plain-English summary

In Texas counties that fall under chapter 1704 of the Occupations Code (counties of 110,000 or more, and smaller counties that create a board), a county bail bond board licenses and regulates the people who write bail bonds for a living. Under section 1704.162, those licenses run for two years (or thirty-six months for some renewals), and a surety has to apply to renew at least thirty-one days before the license expires. Boards meet at least once a month.

The Collin County board ran into a practical problem: sometimes a surety files a renewal application that accidentally leaves out required information, and the current license will expire before the board's next monthly meeting. The board wanted a local rule that would issue a "temporary permit" so the surety could keep operating until the board acted on the renewal. Collin County Criminal District Attorney John R. Roach asked whether a board could adopt such a rule.

The Attorney General said no. A bail bond board is an administrative agency, so it has only the rule-making power the Legislature gave it, and it cannot adopt a rule that conflicts with or exceeds chapter 1704. Three features of the statute blocked the proposed rule. First, section 1704.151 says no one but an attorney may act as a surety without a current chapter 1704 license, and a person whose license has expired no longer holds one, so a board cannot issue some other "permit" to fill the gap. Second, section 1704.162 fixes license terms at two years or thirty-six months and section 1704.161(a) requires the expiration date to appear on the face of the license, so a board cannot issue a "temporary" license or move an expiration date. Third, section 1704.159 requires a board to deny a renewal application if a ground for denial exists, and leaving out required information is such a ground, so the board cannot conditionally approve a deficient application to let the surety keep working while curing it. The bottom line: the board has no authority to issue temporary licenses or permits or to extend a prior license's expiration date.

Currency note

This opinion was issued in 2007. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Chapter 1704 of the Occupations Code and the case law cited here may have been amended since 2007. Confirm the current statute and any later opinions before relying on this analysis.

Who this opinion affected (as of 2007)

County bail bond boards: The opinion told boards in chapter 1704 counties that they could not adopt a local rule issuing temporary licenses or permits, or extending a prior license's expiration date, because such a rule would conflict with the fixed license terms and renewal requirements of chapter 1704.

Bail bond sureties: The opinion explained that a surety whose license expired, or whose renewal application omitted required information, could not keep acting as a surety on a temporary permit. A person without a current chapter 1704 license does not hold a license, and the board must deny a deficient renewal application.

Lawyers and county officials advising boards: The opinion confirmed that a bail bond board's broad rule-making authority under section 1704.101 does not let it create license types or extensions the Legislature did not provide, and that section 1704.159's conditional-approval procedure cannot be used to approve a legally deficient application.

Common questions

Who regulates bail bond sureties in a Texas county?
In counties covered by chapter 1704 of the Occupations Code, a county bail bond board supervises and regulates each phase of the bonding business and is responsible for granting, denying, and renewing licenses. A person other than an attorney may not act as a surety in such a county without a license from the board.

How long does a bail bond surety license last?
Under section 1704.162, an original or renewal license expires on the second anniversary of the issuance date, though sureties meeting certain qualifications may renew for thirty-six months from the prior expiration date. The expiration date has to appear on the face of the license.

Why can't the board just issue a temporary permit when a renewal is late or incomplete?
Because chapter 1704 does not authorize it. Section 1704.151 bars anyone but an attorney from acting as a surety without a current chapter 1704 license, and a board may not adopt a rule that conflicts with the statute. A temporary permit, a temporary license, or an extension of an expiring license all conflict with the fixed terms and renewal rules.

What happens if a renewal application is missing required information?
Section 1704.159 requires the board to deny an application when a ground for denial exists, and failing to provide required information is a ground for denial. The board cannot conditionally approve the deficient application to let the surety keep operating while fixing it.

Background and statutory framework

In counties subject to chapter 1704 of the Occupations Code (counties of 110,000 or more, and smaller counties in which a board is created), a county bail bond board supervises and regulates each phase of the bonding business (Tex. Occ. Code Ann. §§ 1704.002, .051, .101(3)). A person other than an attorney may not act as a bail bond surety in such a county without a license issued under the chapter (Tex. Occ. Code Ann. §§ 1704.151, .163). Original and renewal licenses expire on the second anniversary of issuance, except that qualifying persons may renew for thirty-six months from the prior expiration date; renewal applications are due at least thirty-one days before expiration, and boards must meet at least monthly (Tex. Occ. Code Ann. §§ 1704.055(b), .162(a), (b), (e)).

An administrative agency such as a bail bond board has only the rule-making authority the Legislature has expressly or impliedly conferred, and may adopt a rule only if it is authorized by and consistent with that statutory authority (R.R. Comm'n of Tex. v. Lone Star Gas Co., 844 S.W.2d 679, 685 (Tex. 1992); Tex. Fire & Cas. Co. v. Harris County Bail Bond Bd., 684 S.W.2d 177, 178-79 (Tex. App.-Houston [14th Dist.] 1984, writ ref'd n.r.e.); accord Walstad v. Dallas County Bail Bond Bd., 996 S.W.2d 314, 317 (Tex. App.-Dallas 1999, no pet.); Austin v. Harris County Bail Bond Bd., 756 S.W.2d 65, 67 (Tex. App.-Houston [1st Dist.] 1988, writ denied); Bexar County Bail Bond Bd. v. Deckard, 604 S.W.2d 214, 216 (Tex. Civ. App.-San Antonio 1980, no writ)). A board has broad authority under section 1704.101 to exercise powers incidental or necessary to administering the chapter, supervise and regulate the bonding business, and adopt rules to implement the chapter, and is responsible for all aspects of licensing (Tex. Occ. Code Ann. § 1704.101(1), (3)-(4), (6)-(7); Harris County Bail Bond Bd. v. Blackwood, 41 S.W.3d 123, 124 (Tex. 2001)).

That general authority does not reach the proposed rules. A person whose license has expired does not hold a chapter 1704 license, so a "permit" allowing such a person to act as a surety conflicts with section 1704.151 (Smith v. Travis County Bail Bond Bd., 559 S.W.2d 693, 694 (Tex. Civ. App.-Austin 1977, no writ)). Because section 1704.162 fixes license terms and section 1704.161(a) requires the expiration date on the face of the license, a board may not grant a temporary license or extend an expiration date. And section 1704.159 requires a board to deny an application if a ground to deny exists; failing to provide required information is such a ground (Burns v. Harris County Bail Bond Bd., 971 S.W.2d 102, 105-06 (Tex. App.-Houston [14th Dist.] 1998, no pet.)), and a renewal application must comply with the requirements for an original license under section 1704.154 (Tex. Occ. Code Ann. § 1704.162(b)-(c); Blackwood, 41 S.W.3d at 126-27). So a board may not promulgate a rule issuing temporary licenses or permits or extending a prior license's expiration date.

Citations

Statutes:

• Tex. Occ. Code Ann. § 1704.002 (Vernon 2004)
• Tex. Occ. Code Ann. § 1704.051 (Vernon 2004)
• Tex. Occ. Code Ann. § 1704.055(b) (Vernon 2004)
• Tex. Occ. Code Ann. § 1704.101 (Vernon 2004)
• Tex. Occ. Code Ann. § 1704.151 (Vernon 2004 & Supp. 2006)
• Tex. Occ. Code Ann. § 1704.154 (Vernon 2004)
• Tex. Occ. Code Ann. § 1704.159 (Vernon 2004)
• Tex. Occ. Code Ann. § 1704.161(a) (Vernon 2004)
• Tex. Occ. Code Ann. § 1704.162 (Vernon 2004)
• Tex. Occ. Code Ann. § 1704.163 (Vernon 2004 & Supp. 2006)

Cases:

• R.R. Comm'n of Tex. v. Lone Star Gas Co., 844 S.W.2d 679, 685 (Tex. 1992)
• Tex. Fire & Cas. Co. v. Harris County Bail Bond Bd., 684 S.W.2d 177, 178 (Tex. App.-Houston [14th Dist.] 1984, writ ref'd n.r.e.)
• Walstad v. Dallas County Bail Bond Bd., 996 S.W.2d 314, 317 (Tex. App.-Dallas 1999, no pet.)
• Austin v. Harris County Bail Bond Bd., 756 S.W.2d 65, 67 (Tex. App.-Houston [1st Dist.] 1988, writ denied)
• Bexar County Bail Bond Bd. v. Deckard, 604 S.W.2d 214, 216 (Tex. Civ. App.-San Antonio 1980, no writ)
• Harris County Bail Bond Bd. v. Blackwood, 41 S.W.3d 123, 124 (Tex. 2001)
• Smith v. Travis County Bail Bond Bd., 559 S.W.2d 693, 694 (Tex. Civ. App.-Austin 1977, no writ)
• Burns v. Harris County Bail Bond Bd., 971 S.W.2d 102, 105-06 (Tex. App.-Houston [14th Dist.] 1998, no pet.)

Source

• Landing page: https://www.texasattorneygeneral.gov/opinions/greg-abbott/ga-0575
• Original PDF: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/2007/ga0575.pdf

Original opinion text

Best-effort transcription from a scanned PDF. Minor errors may remain - the linked PDF is authoritative.

ATTORNEY GENERAL OF TEXAS

GREG ABBOTT

October 2, 2007

The Honorable John R. Roach
Collin County Criminal District Attorney
Collin County Courthouse
210 South McDonald, Suite 324
McKinney, Texas 75069

Opinion No. GA-0575

Re: Whether a bail bond board may implement a rule allowing a temporary extension of the license expiration dates set forth in section 1704.162 of the Occupations Code (RQ-0585-GA)

Dear Mr. Roach:

You ask whether a bail bond board may implement a rule allowing a temporary extension of the license expiration dates set forth in Occupations Code section 1704.162.[1]

In counties subject to chapter 1704 of the Occupations Code, such as Collin County, "each phase of the bonding business in the county" is supervised and regulated by a bail bond board. TEX. OCC. CODE ANN. § 1704.101(3) (Vernon 2004); see also id. §§ 1704.002, .051.[2] A person other than an attorney may not act as a bail bond surety in such a county unless the person is licensed by the county's board. See id. §§ 1704.151, .163 (Vernon 2004 & Supp. 2006). Under section 1704.162, original and renewal licenses expire on the second anniversary of the issuance date, except that persons meeting certain qualifications may renew a license for thirty-six months from the prior expiration date. See id. § 1704.162(a), (e) (Vernon 2004).

Applications to renew a license must be submitted no later than the thirty-first day before the existing license expires, and bail bond boards must meet at least once a month. See id. §§ 1704.055(b), .162(b). You explain the board's desire to be able to accommodate the bail bond surety who submits a renewal application that inadvertently omits statutorily-required information, but whose license will expire before the next board meeting. See Request Letter, supra note 1, at 2-3. You inform us that the Collin County Bail Bond Board has promulgated a local rule, that if "the Board fails for any reason to act upon a renewal application prior to [a license's] expiration date, a temporary permit may be issued pending final action." Id. at 2. You ask whether a bail bond board may implement a rule that would allow a temporary extension of the expiration dates set forth in section 1704.162. See id. Your request raises the possibility of three different types of rules: rules authorizing the board (1) to issue a "permit," other than a chapter 1704 license, that allows a renewal applicant to act as a bail bond surety after the applicant's license has expired; (2) to issue a "temporary" chapter 1704 license; or (3) to temporarily extend the expiration date of a license that is about to expire.

An administrative agency such as a bail bond board has only the rule-making authority that the Legislature has expressly or impliedly conferred upon it. See R.R. Comm'n of Tex. v. Lone Star Gas Co., 844 S.W.2d 679, 685 (Tex. 1992). Thus, such an agency may adopt a rule only if it is authorized by and consistent with the agency's statutory authority. See Tex. Fire & Cas. Co. v. Harris County Bail Bond Bd., 684 S.W.2d 177, 178 (Tex. App.-Houston [14th Dist.] 1984, writ ref'd n.r.e.); see also R.R. Comm'n of Tex., 844 S.W.2d at 685. A bail bond board may not adopt a rule that "conflicts with or exceeds the statutory authority" of chapter 1704. Tex. Fire & Casualty Co., 684 S.W.2d at 178-79; accord Walstad v. Dallas County Bail Bond Bd., 996 S.W.2d 314, 317 (Tex. App.-Dallas 1999, no pet.); Austin v. Harris County Bail Bond Bd., 756 S.W.2d 65, 67 (Tex. App.-Houston [1st Dist.] 1988, writ denied); Bexar County Bail Bond Bd. v. Deckard, 604 S.W.2d 214, 216 (Tex. Civ. App.-San Antonio 1980, no writ).

We first consider a bail bond board's legislative authority to promulgate rules. A bail bond board has broad rule-making powers under section 1704.101, which authorizes a board to: "exercise powers incidental or necessary to the administration of this chapter;" "supervise and regulate each phase of the bonding business in the county;" and "adopt and post rules necessary to implement this chapter." TEX. OCC. CODE ANN. § 1704.101(1), (3)-(4) (Vernon 2004). Also, a "county bail bond board is responsible for all aspects of the licensing of bondsmen in that county, including granting, denying, or renewing licenses." Harris County Bail Bond Bd. v. Blackwood, 41 S.W.3d 123, 124 (Tex. 2001); see also TEX. OCC. CODE ANN. §§ 1704.101(6) (issuing licenses), (7) (denying licenses), 1704.162 (issuing or denying renewals) (Vernon 2004). Thus, a bail bond board has general authority to promulgate local rules pertaining to licensing. See TEX. OCC. CODE ANN. § 1704.101(1), (3)-(4), (6)-(7) (Vernon 2004). Next, we consider whether the specific types of rules you propose would conflict with, or be consistent with, chapter 1704's licensing provisions.

Chapter 1704 does not authorize a bail bond board to allow a person to act as a bail bond surety by issuing a "permit" other than a chapter 1704 license. Under section 1704.151, a person other than an attorney "may not act as a bail bond surety . . . in the county unless the person holds a license issued under this chapter." Id. § 1704.151 (emphasis added). And a person whose license has expired does not hold a license under chapter 1704. See Smith v. Travis County Bail Bond Bd., 559 S.W.2d 693, 694 (Tex. Civ. App.-Austin 1977, no writ) (concerning pre-code bail bond statutes). Thus, a rule whereby a bail bond board may issue a "permit" to a person to act as a surety without a current chapter 1704 license conflicts with section 1704.151.

Rules purporting to allow temporary chapter 1704 licenses or temporary extensions of prior licenses would also conflict with chapter 1704. Under section 1704.162, licenses expire either after two years or thirty-six months depending on the circumstances. TEX. OCC. CODE ANN. § 1704.162(a), (e)-(f) (Vernon 2004). And a license's expiration date must appear on the face of the license. Id. § 1704.161(a). These statutes prohibit a board from granting either a temporary license or a temporary extension of a license's expiration date.

Finally, you note that under section 1704.159, a bail bond board issues an order conditionally approving an application, which becomes final once the applicant complies with security requirements. See id. § 1704.159(a); Request Letter, supra note 1, at 2-3. You suggest that a rule allowing a bail bond surety to engage in the bonding business while the surety cures deficiencies in the surety's renewal application would be consistent with section 1704.159. Request Letter, supra note 1, at 2-3. Under section 1704.159, however, a bail bond board may not conditionally approve a legally deficient application. To the contrary, section 1704.159 requires a board to deny an application "[i]f . . . a ground exists to deny the application." TEX. OCC. CODE ANN. § 1704.159 (Vernon 2004). Failing to provide required information in an application is grounds for denial. See Burns v. Harris County Bail Bond Bd., 971 S.W.2d 102, 105-06 (Tex. App.-Houston [14th Dist.] 1998, no pet.). Thus, even by analogy, section 1704.159 is not support for a rule purporting to authorize a surety with a deficient renewal application to continue in the bonding business after the current license expires.

Moreover, section 1704.162, which specifically applies to license renewals, requires the license holder to submit a renewal application that complies with the requirements for an original license under section 1704.154. TEX. OCC. CODE ANN. § 1704.162(b)-(c) (Vernon 2004). A bail bond board does not have authority to renew a license when the renewal application omits information and items required by section 1704.154. See id. §§ 1704.101(7), .154, .162(b)-(c); see also Blackwood, 41 S.W.3d at 126-27 (stating that the statute's requirements are mandatory and a court may not grant renewal when the application is incomplete). Because bail bond board rules must not conflict with chapter 1704 of the Occupations Code, a board may not promulgate or implement a rule allowing the board to issue temporary bail bond surety licenses or permits, or to extend the expiration date of a prior license.

SUMMARY

Under chapter 1704 of the Occupations Code, a bail bond board does not have the authority to promulgate or implement a rule allowing the board to issue a temporary bail bond surety license or permit, or to extend a prior license's expiration date.

Very truly yours,

GREG ABBOTT
Attorney General of Texas

KENT C. SULLIVAN
First Assistant Attorney General

NANCY S. FULLER
Chair, Opinion Committee

William A. Hill
Assistant Attorney General, Opinion Committee

Footnotes

[1] See Letter from Honorable John R. Roach, Collin County Criminal District Attorney, to Honorable Greg Abbott, Attorney General of Texas, at 1 (Apr. 16, 2007) (on file with the Opinion Committee, also available at http://www.oag.state.tx.us) [hereinafter Request Letter].

[2] Chapter 1704 of the Occupations Code applies to counties of 110,000 or more and smaller counties in which a board is created. See TEX. OCC. CODE ANN. § 1704.002 (Vernon 2004). The population of Collin County at the last census was 491,675. See U.S. CENSUS BUREAU, 2000 CENSUS OF POPULATION, STATE & COUNTY QUICKFACTS, available at http://quickfacts.census.gov/qfd/states/48/48085.html (last visited Sept. 27, 2007).