Attorney General Opinion JM-0471

The Attorney General of Texas April 9, 1986 JIM MAlTOX Attorney General Supreme Court Building P. 0. BOX 12546 A”!dl”, TX. 7671% 2546 5121475.2501 Telex 910/674-1367 Telecopier 512l475-0266 714 Jackson. Suite 700 Dallas, TX. 752024506 214/742-6944 4624 Alberta Ave., Suite 160 El Paso. TX. 793052793 9151533.3464 1 Texas. Suite 700 i-mus,on, TX. 77002-3111 7131223.5666 806 Broadway, Suite 312 Lubbock, TX. 79401.3479 6OW747.5238 4309 N. Tenth. Suite S McAllen, TX. 76501.1665 5121662.4547 2M) Main Plaza, Suite 400 San Antonio. TX. 76205.2797 512n25.4191 An Equal OpportunitYI Affirmative Action Employer Honorable Henry Wade District Attorney Government Center Dallas, Texas 75:!02 Opinion No.JM-471 Re: Whether a corporate surety way sub- stltute an agent's name on a license without fulfilling the requirement of a new application for licensing Dear Mr. Wade: The statute ,v'hich governs the licer~sing of bail bondsmen in certain counties, article 2372p-3, V.T.C.S., requires a corporate surety to designate a named agent of the corporation to execute bail bonds on behalf of the licensed corporate surety. A separate license, which Is valid for :24 months, is required for each agent. You inform us that a corporate surety licensed by the Dallas County Bail Bond Board desires to replace one of its designated agents with a new agent, one not yet licensed. You wish to know whether the Dallas County Ball Bond Board may permit the newly designated agent's name to be substituted for that of the previously designated agent for the portion of the 24-month period remaining on the previously designated agent's license. Me answer your question in the negative. Subsection (,::I of section 7 of' article 2372p-3, V.T.C.S.. governing a corpor,%tion acting as a surety, provides the following: Any corporation which acts as 8 surety shall, before errcuring any bail bond, first file in the office c,f the county clerk of the county where such bat:1 bond is given a power of attorney designatLng and authorizing the named agent of such corporation to execute such ball bonds by such agc!nt. This power of attorney shall be a valid and binding obligation of the corporation. A separ&e license is required for each agent operating under a corporation power of attornay. (Emphasis added). Subsection (a) of section 8 governing the expiration and renewal of a license provides in part: p. 2153 Bonorable Aenry Wade - Page 2 (JM-471) A license issued under this Act expires 24 months after the aate of its issuance and may not be renewed unless; an application for renews1 is filed with the board at least 30 days before expiration. The application for renewal shall have the same fo:al and content as an application for an original license under this Act. The application for renewal shall be accompanied by a renewal fee of $530 Section 6 of the act governing application and issuance of a license sets forth very detailed and specific information disclosure requirements and provides the following in pertinent part: Sec. 6. (a) Any person desiring to act as a bondsman in any court of the county shall file with the County Bail Bond Board a swor* application for 21 license. The application shall be in such form aad shall contain such information as the board 'may prescribe including the following: (1) The narn(!) age, and address of the applicant, and if the applicant is a surety corporation, and whether chartered or admitted to do business in this state and qualified to write fidelity, guaranty, and surety bonds under the Texas Insurance Code, as amended; (2) The name under which the business shall be conducted; (3) The name of the place or places, including street address aid city, wherein the business is to be conducted; (4) A statesent listing any nonexempt real estate owned by the applicant that the applicant intends to convey in trust to the board to secure payment of any obligations incurred by the applicant in the bonding business if the license is granted. The following shall be included for each parcel llstcd: [Specific requfrements] (5) A statement indicating the amount of cash or cash value of any certificate of deposit or cashier's checks which the applicant intends to , p. 2154 Eonorable Eenry Wade - Page, 3 (JM-471) place on deposit with the county treasurer to secure payment o:E any obligations incurred by the applicant in the,bonding business if the license is granted; (6) A complete, sworn financial statement: (7) A declaration by the applicant that he till comply with this Act and the rules prescribed by the board. (b) The application of an individual for a license under t'xts Act shall be accompanied by letters of reccmmendatlon from three reputable persons who have 'known the applicant for a period of at least thr(!e years. If the applicant is a corporation, the letters shall be required for the person to be ir..charge of its business in the county. . . . (c) The application shall be accompanied by a fee of $500 fl,r the filing of any original application, a photograph of the applicant. and a set of fingerprints of the applicant taken by a law enforcement ,xFficer designated by the board. . . . . (e) A hearins shall be held on the application after the board conducts the inquiries required by Subsection (d) of this section. . . . And finally, subsection 9(a) of the act govetilng refusal to grant, suspension, and rlrlocation of licenses provides that "[alo license may be issued to any person who has not complied with the requirements of this [a]ct for applying for an original or renewal license." The act simply does not authorize the board to permit the sort of substitution about which you inquire. Article 2372p-3, V.T.C.S., was enacted for the purpose oE licensing and regulating bail bondsmen in certain counrtes. Pursu;int to that end. the statute created at section 5(a) county bail bond boards in such counties and conferred upon them certain powers. See generally Bexar County Bail Bond Board v. Dcckard, 604 S.W.2d 214, 216 (Tex. Civ. App. - San Antonio 1980, no writ) ; Attorney General Opinions JM-251 (1984); IN-507 (1982). Generally, the powers of sn administrative agency arc derived entirely from legislative enactment. Corzelius v. Railroad Commission, 182 S.W.2d 412, 415 (Tex. Civ. App. - Austin 1944, no writ). An agency p. 2155 Plonorable Eenry Wade - Page 34 (JM-471) .--- - - -, __-_. =__. -__ -- . hnn nnlv anrh anwcta aa me expressly conferred on it by stature, Stauffe; v. City of San Antonio, 344 S.W.2d 158, 160 (Tax. 1961). -- together with those powers uecessarily implied from powers and duties expressly given' or lmpos~cd. City of Sherman v. Public Utility Commission of Texas, 643 S.W.2d 681, 686 (Tex. 1983). There is no provision in the act which limits the length of time a licensee may serve as a corporate agent; no re-application for designation as agent is required. Nor does the act limit the number of persons who may be designated as agents by a corporate surety. Subsection 7(c) requires only that any person designated as an agent be also a licensee. The itc:t, though, limits the length of time for which a license may be vrtlid, specifically providing in subsection 8(a) that a license will errpire 24 months from its date of Issuance. There is no provision in tie act which expressly or impliedly permits the substitution on a licer;sc of one person's name for another. An applicant for lice~asing or renewal is required to provide detailed information about the applicant's financial status, letters of recommendation, and a set of fingerprints. Sec. 6. The required Information is used to dezermine whether the applicant is qualified for licensing. The licensing procedure includes a hearing in which the applicant participates. In view of the detailed scrutiny of the applicant's personal qualifications for licensing which article 2372p-3 requires, it is clear that the legislature did not Intend that the county bail bond board could substitute the name of an unlicensed person on a license previously issued to another person. Accordingly, we answer your question in the negative. SUMMARY Under article 2372p-3, V.T.C.S., a county bail bond board may not substitute the name of one person not yet lztcensed for that of another person already licensed. JIM WATTOX Attorney General of Texas JACX EIGRTOWRR First Assistant Attorney General MARY KELLER Executive Assistant Attorney General p. 2156 i Honorable Eenry Wade - Page Ii (JM-471) ROBERT GRAY Special Assistant Attorney General RICK GILPIN Chairman, Opinion Committee Prepared by Jim Moellinger Assistant Attorney General p. 2157