Can a Texas county bail bond board discipline a surety over an out-of-county bond?

TX AG Opinion GA-0667: Can a bail bond board discipline a surety over an out-of-county bond?

Plain-English summary

The Hays County Criminal District Attorney asked whether a county bail bond board may suspend or revoke an individual surety's license for activity relating to an out-of-county bond, meaning a bond executed in Hays County for a person arrested there on another county's warrant.

The factual backdrop: a Hays County surety wrote a $50,000 bond for a defendant arrested on a Fort Bend County larceny warrant, collecting $14,000 in security from an indemnitor. The bond was not forfeited, and the larceny case was finally disposed. When the indemnitor asked for the security back, the surety said he needed a written release from Fort Bend County first. The Hays County board voted to require return of the security; the surety refused, and the board considered whether it had authority over the out-of-county bond before acting.

The opinion concluded the board does have that authority. Section 1704.252(1) lets a board revoke or suspend a license when the holder violates chapter 1704 or a board rule, and nothing limits that to bonds on in-county warrants. Section 1704.101(3) authorizes the board to supervise and regulate each phase of the bonding business in the county, and the "bonding business" includes executing a bail bond. As a prior opinion explained, an out-of-county bail bond is executed in the county that licensed the surety, not the county that issued the warrant. So each phase of that bond, including whether the security must be returned, falls under the licensing county's board. The board's enforcement authority reaches all violations on bonds executed in that county, including those tied to another county's warrant.

Currency note

This opinion was issued in 2008. 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.

Occupations Code chapter 1704 has been amended since 2008. Confirm the current text of the bail-bond licensing and enforcement provisions before relying on this analysis.

Who this opinion affected (as of 2008)

County bail bond boards: The opinion confirmed their enforcement authority reaches violations on bonds executed in their county, including bonds tied to another county's warrant.

Licensed bail bond sureties: The opinion meant a surety could face license suspension or revocation for a chapter 1704 violation on an out-of-county bond executed in the licensing county.

Indemnitors who post security: The opinion treated the disposition of the security on such a bond as part of the bonding business the licensing county's board supervises.

Common questions

Could the board discipline the surety for the out-of-county bond?
Yes. The opinion concluded a county bail bond board may suspend or revoke the license of a surety it licensed for a chapter 1704 or rule violation on a bond executed in that county, even one tied to another county's warrant.

Where is an out-of-county bond considered "executed"?
In the county that licensed the surety, not the county that issued the warrant. The opinion relied on a prior opinion (GA-0002) for that point.

What authority lets the board reach these bonds?
Section 1704.252(1) allows revocation or suspension for any chapter 1704 or rule violation, and section 1704.101(3) lets the board supervise each phase of the bonding business in the county.

Did the opinion decide whether this surety actually violated the law?
No. The request did not ask that, and the opinion addressed only the board's authority, not whether the surety violated section 1704.301.

Background and statutory framework

In a county that has created a bail bond board, sureties are regulated under Occupations Code chapter 1704, and only a licensed person (other than an attorney) may act as a bail bond surety (Tex. Occ. Code Ann. §§ 1704.002(2), .052, .151, .163, .303(a) (Vernon 2004 & Supp. 2008); see Font v. Carr, 867 S.W.2d 873, 882 (Tex. App.-Houston [1st Dist.] 1993, writ dism'd w.o.j.)). A magistrate before whom a person arrested on another county's warrant is brought takes bail and transmits the bond to the court with jurisdiction (Tex. Code Crim. Proc. Ann. art. 15.18(a)(1) (Vernon Supp. 2008)). Section 1704.252(1) authorizes revocation or suspension for a violation of chapter 1704 or a board rule, and section 1704.102(a)(3) requires it, without limiting the triggering violations to in-county warrants (Tex. Occ. Code Ann. §§ 1704.252(1), 1704.102(a)(3) (Vernon 2004); see Harris County Bail Bond Bd. v. Blackwood, 41 S.W.3d 123, 124 (Tex. 2001); Tex. Att'y Gen. Op. No. GA-0197 (2004) at 5-6). Section 1704.101(3) lets a board supervise and regulate each phase of the bonding business, defined to include executing a bail bond (id. §§ 1704.101(3), 1704.001(4)); an out-of-county bond is executed in the licensing county (Tex. Att'y Gen. Op. No. GA-0002 (2002) at 3). Section 1704.301 requires a surety to return security within thirty days of a written request and proof the cases or payment agreement concluded (Tex. Occ. Code Ann. § 1704.301 (Vernon 2004)).

Citations

Statutes and opinions:

• Tex. Occ. Code Ann. §§ 1704.001(1)-(2), (4) (Vernon Supp. 2008)
• Tex. Occ. Code Ann. §§ 1704.002(2), .052, .101(3), .102(a)(3), .151, .163, .252(1), .301, .303(a) (Vernon 2004 & Supp. 2008)
• Tex. Code Crim. Proc. Ann. art. 15.18(a)(1) (Vernon Supp. 2008)
• Tex. Gov't Code Ann. § 311.005(3) (Vernon 2005)
• Tex. Att'y Gen. Op. Nos. GA-0197 (2004), GA-0002 (2002)

Cases:

• Font v. Carr, 867 S.W.2d 873, 882 (Tex. App.-Houston [1st Dist.] 1993, writ dism'd w.o.j.)
• Harris County Bail Bond Bd. v. Blackwood, 41 S.W.3d 123, 124 (Tex. 2001)
• Briones v. State, 76 S.W.3d 591, 594-95 (Tex. App.-Corpus Christi 2002, no pet.)

Source

• Landing page: https://www.texasattorneygeneral.gov/opinions/greg-abbott/ga-0667
• Original PDF: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/2008/ga0667.pdf

Original opinion text

ATTORNEY GENERAL OF TEXAS

GREG ABBOTT

October 1, 2008

The Honorable Sherri K. Tibbe
Hays County Criminal District Attorney
110 East Martin Luther King
San Marcos, Texas 78666

Opinion No. GA-0667

Re: Whether a county bail bond board may suspend or revoke an individual surety's license for that licensee's activity relating to an out-of-county bond (RQ-0700-GA)

Dear Ms. Tibbe:

You ask whether a county bail bond board may suspend or revoke an individual surety's license for that licensee's activity relating to an out-of-county bond. You explain that you use the term "out-of-county bail bond" to refer to a bond executed in Hays County for an arrest in Hays County on a warrant from another county. See Request Letter, supra note 1, at 1 n.1; see also TEX. CODE CRIM. PROC. ANN. art. 15.18(a)(1) (Vernon Supp. 2008) (directing the magistrate before whom a person arrested under a warrant issued in another county is brought to take bail if allowed by law and immediately to transmit the bond to the court with jurisdiction of the offense).

You indicate that Hays County has created a bail bond board; consequently, bail bond sureties operating in the county are regulated under Occupations Code chapter 1704. See Request Letter, supra note 1, at 1; see also TEX. OCC. CODE ANN. §§ 1704.002(2), .052, .101(3) (Vernon 2004) (authorizing a county with a population of less than 110,000 to create a bail bond board to "regulate each phase of the bonding business in the county"); Font v. Carr, 867 S.W.2d 873, 882 (Tex. App.-Houston [1st Dist.] 1993, writ dism'd w.o.j.) (concluding that chapter 1704's statutory predecessor, article 2372p-3 of the Revised Civil Statutes, controlled "over the more general provisions of" Code of Criminal Procedure chapter 17 "[i]n the counties where article 2372p-3 applie[d]"). In a county subject to chapter 1704, no one except an attorney may "act as a bail bond surety or as an agent for a corporate surety in the county unless the person holds a license issued under" chapter 1704. TEX. OCC. CODE ANN. §§ 1704.151, .163 (Vernon 2004 & Supp. 2008); accord id. § 1704.303(a) (Vernon 2004) ("A person required to be licensed under this chapter may not execute a bail bond unless the person holds a license issued under this chapter."). For purposes of chapter 1704, the terms "bail bond" and "bail bond surety" are defined as follows:

(1) "Bail bond" means a cash deposit, or similar deposit or written undertaking, or a bond or other security, given to guarantee the appearance of a defendant in a criminal case.

(2) "Bail bond surety" means a person who:

(A) executes a bail bond as a surety or cosurety for another person; or

(B) for compensation deposits cash to ensure the appearance in court of a person accused of a crime.

Id. § 1704.001(1)-(2) (Vernon Supp. 2008).

You relate the following facts: In approximately September 2005 an individual (the "defendant") was arrested in Hays County on a larceny warrant issued by Fort Bend County. See Request Letter, supra note 1, at 2. At that time a licensed bail bond surety in Hays County "executed a bail bond in Hays County" for the defendant in the amount of $50,000. Id. As security for the bond, the bail bond surety collected $14,000, paid by credit card, from an indemnitor. See id. Although the defendant's bond "was revoked on October 12, 2006[,] for ... failure to appear," the bond was not forfeited. See id. The larceny charge against the defendant was "finally disposed on October 29, 2007." Id. On November 1, 2007, the indemnitor by letter requested the bail bond surety to return the security and enclosed a copy of the final judgment in the larceny case. See id. On December 5, 2007, the indemnitor filed a complaint with the Hays County Bail Bond Board (the "Board"), alleging that the bail bond surety had not returned the security. See id. "When the Hays County District Attorney's Office contacted [the bail bond surety] about the return of the security, [the surety] stated that he needed a written release from Fort Bend County before he would return" it. Id. The Hays County District Attorney then "recommended to the Board that the security be returned to the indemnitor[] because the bond was not forfeited [as a result of the October 12, 2006, failure to appear], the criminal case was finally disposed, and section 1704.301 [of the Occupations Code] did not require a written release by the Fort Bend prosecutor" as a condition precedent to the return of the security. Id. On January 18, 2008, the Board voted to approve the district attorney's recommendation and requested the bail bond surety by letter to return the security. See id. He did not do so. See id. As a result, on March 28, 2008, the Board scheduled "a hearing to consider whether to commence formal action to suspend or revoke" the surety's license. See id. But the Board tabled the item pending the attorney general's opinion regarding the county bail bond board's authority over out-of-county bonds. See id.

You do not ask whether the bail bond surety in this instance has violated section 1704.301. See Request Letter, supra note 1, at 4; see also supra note 5 (setting out section 1704.301). Rather, you suggest that, under chapter 1704, it "is not clear if the Board's authority extends to activity on out-of-county bonds." Request Letter, supra note 1, at 1. You therefore ask whether the Board may "suspend or revoke an individual surety license for that licensee's activity relating to an out-of-county bond." Id. at 4.

Under section 1704.252(1), a bail bond board has express authority to revoke or suspend a license if a license holder "violates this chapter or a rule adopted by the board under this chapter." TEX. OCC. CODE ANN. § 1704.252(1) (Vernon 2004); accord id. § 1704.102(a)(3) (requiring a bail bond board to "suspend or revoke a license for a violation of" chapter 1704 "or a rule adopted by the board under" chapter 1704); see also Harris County Bail Bond Bd. v. Blackwood, 41 S.W.3d 123, 124 (Tex. 2001) (stating that "[a] county bail bond board is responsible for all aspects of the licensing of bondsmen in that county, including granting, denying, or renewing licenses"); Tex. Att'y Gen. Op. No. GA-0197 (2004) at 5-6 (stating that Occupations Code section 1704.252(1) incorporates conduct that is not specifically listed in section 1704.252(2)-(16) "but that violates other chapter 1704 provisions," such as section 1704.301). Nothing in the statute expressly limits the violations that can trigger revocation or suspension to bonds executed on in-county warrants; indeed, the statute refers without qualification to violations of chapter 1704 or board rule. See TEX. OCC. CODE ANN. § 1704.102(a)(3) (Vernon 2004).

In addition, section 1704.101(3) authorizes a county bail bond board to "supervise and regulate each phase of the bonding business in the county." Id. § 1704.101(3). The term "bonding business" means "the solicitation, negotiation, or execution of a bail bond by a bail bond surety." Id. § 1704.001(4) (Vernon Supp. 2008). As we stated in Opinion GA-0002, an out-of-county bail bond is executed in the county that licensed the bail bond surety, not the county that issued the warrant. See Tex. Att'y Gen. Op. No. GA-0002 (2002) at 3. Thus, under section 1704.101, "each phase of the bonding business" that is associated with a bond executed in the licensing county is subject to that county board's supervision. This encompasses the disposition of the bond-whether it is forfeited so that the bail bond surety retains the security or whether the bond is not forfeited so that the bail bond surety must return the security to the indemnitor.

We consequently conclude that a county bail bond board's enforcement authority extends to all violations committed by a bail bond surety licensed by that board with respect to all bonds executed in that county, including those that relate to a warrant issued by another county. A bail bond surety may violate chapter 1704 on an out-of-county bond that was executed in the licensing county, and if the surety does so, that violation is subject to censure by the licensing county's bail bond board.

SUMMARY

A county bail bond board may revoke or suspend the license of a bail bond surety licensed in that county if the surety violates chapter 1704 of the Occupations Code or a rule adopted under that chapter on a bond executed in that county on a warrant issued by another county.

Very truly yours,

KENT C. SULLIVAN
First Assistant Attorney General

ANDREW WEBER
Deputy Attorney General for Legal Counsel

NANCY S. FULLER
Chair, Opinion Committee

Kymberly K. Oltrogge
Assistant Attorney General, Opinion Committee

Footnotes:

1 See Letter from Honorable Sherri K. Tibbe, Hays County Criminal District Attorney, to Honorable Greg Abbott, Attorney General of Texas, at 4 (Apr. 8, 2008) (on file with the Opinion Committee, also available at www.texasattorneygeneral.gov) [hereinafter Request Letter].

2 In 2000 Hays County population was less than 110,000. See UNITED STATES CENSUS BUREAU, 2000 CENSUS OF POPULATION: POPULATION FINDER (Hays County population: 97,589); see also TEX. GOV'T CODE ANN. § 311.005(3) (Vernon 2005) (defining the term "population" generally for all codes to mean "the population shown by the most recent federal decennial census").

3 Article 2372p-3, Revised Civil Statutes, was repealed and recodified as Occupations Code chapter 1704 in 1999. See Act of May 13, 1999, 76th Leg., R.S., ch. 388, §§ 1, 6(a), 1999 Tex. Gen. Laws 1431, 2279-91, 2439-40.

4 "A bail bond is a written undertaking entered into by the defendant and his sureties for the appearance of the principal before some court or magistrate to answer a criminal accusation. As such, a bail bond is a contract between the surety (the bonding company) and the State." Briones v. State, 76 S.W.3d 591, 594-95 (Tex. App.-Corpus Christi 2002, no pet.) (citations omitted).

5 Occupations Code section 1704.301 requires a bail bond surety to return security within thirty days of the date that the owner of the security: (1) requests return of the security in writing; and (2) submits to the bail bond surety written evidence of the conclusion of: (A) the payment agreement; or (B) all of the criminal cases for which the security was given. TEX. OCC. CODE ANN. § 1704.301 (Vernon 2004).