ATTORNEY GENERAL OF TEXAS GREG ABBOTT

September 12, 2008

The Honorable Jana A. Jones 271st Judicial District Attorney Jack and Wise Counties 101 North Trinity, Suite 200 Decatur, Texas 76234
Dear Ms. Jones: Opinion No. GA-0663 Re: Whetherthe members ofa discretionary bail bond board may dissolve the board (RQ-0687-GA)

Occupations Code section 1704.052 authorizes the creation ofa county bail bond board "in a county with a population ofless than 110,000 ifa majority ofthe persons who would serve as members ofthe board

... or who would designate the persons who would serve as members ofthe board, determine to create a board." TEX. OCC. CODE ANN. § 1704.052 (Vernon 2004). It appears that in Wise County, which has a population offewer than 110,000, a bail bond board has been created under section 1704.052. 1 You ask whether "members ofa discretionary bail bond board [created under section 1704.052] can dissolve the said bail bond board by [a] majority vote ofthe statutory members or a quorum thereof." Request Letter, 

### supra note 1, at 1. Ifchapter 1704 does not authorize the dissolution, you also ask aboutthe "law [that] mustbe followed to achievethatend ifso desired[.]" 

### Id at 2. Chapter 1704 ofthe Occupations Code provides for bail bond boards to regulate the bail bond2 industry in "a county with a population of

... 110,000 or more; or ... less than 110, 000 in which a board is created." TEX. OCC. CODE ANN. § 1704.002 (Vernon 2004); see 

### ide §§ 1704.051-.052. In a county that has a bail bond board, "a person may not act as a bail bond**suret~** or as an agent for a corporate surety in the county unless the person holds a license issued

lSee Letter from Honorable Jana A. Jones, 271st Judicial District Attorney, Jack and Wise Counties, to Honorable Greg Abbott, Attorney General ofTexas (Mar. 12, 2008) (on file withthe Opinion Committee, also available at http://www.texasattorneygeneral.gov) [hereinafter Request Letter]. 2"'Bail bond' means a cash deposit, or similar deposit orwritten undertaking, or abond orother security, given to guarantee the appearance ofa defendant in a criminal case." TEX. OCC. CODE ANN. § 1704.001(1) (Vernon Supp. 2008).

3A "bail bond surety" is a person who "executes a bail bond as a surety or cosurety for another person; or ... for compensation deposits cash to ensure the appearance in court ofa person accused ofa crime." Id § 1704.001(2); see also id § 1704.001(5) ("'Person' means an individual or corporation.").The Honorable Jana A. Jones

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under chapter [1704]." 

### Id § 1704.151; 

### see also id. § 1704.163 (Vernon Supp. 2008) (attorney exemption). The statute itselfcreates a bail bond board in a county "with a population of 110,000 or more." 

### Id 

### § 1704.051 (Vernon 2004). In counties with a population offewer than 110,000, however, creation ofa bail bond board is authorized, but not required: "A board 

### may be created in [such a county] ifa majority ofthe persons who would serve as members ofthe board

... or who would designatethepersons who would serve as members of the board, determineto create aboard." 

### Id. § 1704.052 (emphasis added).4 As you note, chapter 1704 makes no provision for, or allusionto, the dissolution ofa bail bond board. 

### See id §§ 1704.001-.306 (Vernon 2004 & Supp. 2008); Request Letter, 

### supra note 1, at 2. Thus, the issue here is whether a "discretionary bail bond board," as you describe it, may nevertheless dissolve itselfifa majority ofthe board members wish to do so. 

### See Request Letter, 

### supra note 1, at 1-2. While no court has considered specifically a bail bond board's authority to dissolve, the courts have saidthat apolitical subdivision authorizedto be createdpursuantto legislative authority may be dissolved only pursuant to legislative authority. 

### See Ringling 

### v. City of Hempstead, 193 F. 596, 599 (5th Cir. 1911); 

### Harness v. State, 13 S.W. 535, 537 (Tex. 1890); 

### Largen v. State ex rei. Abney, 13 S.W. 161, 163 (Tex. 1890); 

### Watts v. Double Oaklndep. Sch. Dist., 377 S.W.2d 779, 780 (Tex. Civ. App.-Fort Worth 1964, no writ). As the Texas Supreme Courthas described it, "'[t]he state creates such [municipal] corporations forpublic ends, andthey will andmustcontinue until the legislature annuls or destroys them, or authorizes it to be done.'" 

### Largen, 13 S.W. at 162 (quoting 1 Dill. Mun. Corp. 

### § 167); 

### see also Ringling, 193 F. at 599 ("It is well settled that a municipal corporation can only be dissolved by legislative action."); 

### Harness, 13 S.W. at 537 (stating that "[m]unicipalcorporations canbe createdonlyinthe mannerprovidedbylaw, andwhencreatedmust continue until abolished in some legal method"). This principle applies to political subdivisions other than cities. School districts, for instance, are "authorized and chartered by the State" and as "creatures ofthe State

... can be destroyed only by their creator." 

### Watts, 377 S.W.2d at 780 (citing 

### King's Estate v. Sch. Trs. ofWillacy County, 33 S.W.2d 783,784 (Tex. Civ. App.-San Antonio 1930, writ refd)); 

### see Amer. Liberty Oil Co. v. State, 125 S.W.2d 1107, 1109 (Tex. Civ. App.-Texarkana 1939, no writ) (holdingthat "[s]chool districts are localpublic corporations ofthe same general character as municipal corporations[; t]hey are quasi-municipal corporations").5

4A bailbondboard consists ofthe following generally describedpersons: (1) the sheriffor a designee from the sheriffs office; (2) a districtjudge ofthe county with criminaljurisdiction or a designee; (3) the countyjudge, a county commissioner, or a designee; (4) a county court or county court at lawjudge with criminaljurisdiction or a designee; (5) the district attorney or assistant district attorney; (6) a licensed bail bond surety or agent for a corporate surety; (7) a justice of the peace; (8) the district clerk or the clerk's designee; (9) the county clerk with criminal matter responsibilities orthe clerk's designee; (10) a presidingjudge ofa municipal court ifappointed by the bail bond board; (11) the presidingjudge or a municipaljudge ofthe municipal court system ifthe county's principal city designates the presidingjudge for such a system; (12) the county treasurer, the treasurer's designee, or the person designated by the commissioners courtto perform the treasurer's duties; and (13) a criminal defense attorney practicing inthe county. Id § 1704.053. 5S

ee also Tex. Att'y Gen. Op. Nos. GA-0621 (2008) at 3 (concluding that "[w]ithout authorization, the [Kerr County Airport] Authority may not be dissolved"); JC-0220 (2000) at 2 (concluding that a hospital district could not dissolvepursuantto an electionbecausethere was no statutory authorityto callandhold a dissolution election), WW-395 (continued

...)The Honorable Jana A. Jones

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While a bail bond board is not a political subdivision, it is a legal entity whose creation is -authorized by the Legislature for public ends. See Dallas County Bail BondBd v. Mason, 773 S.W.2d 586, 587 (Tex. App.-Dallas 1989, no writ); Dallas County Bail Bond Bd v. Stein, 771 S.W.2d 577, 579 (Tex. App.-Dallas 1989, writ denied). A bail bond board has been described as a "legal entity through which the county performs its governmental function." Mason, 773 S.W.2d at 587. Ithas also been described as a "governmental agent ofthe county for purposes ofregulating the bail bond industry." Stein, 771 S.W.2d at 579. And ithas been described as an "administrative agency." Tex. Fire & Cas. Co. v. Harris County Bail Bond Bd., 684 S.W.2d 177, 178 (Tex. App.-Houston [14th Dist.] 1984, writ refd n.r.e.). And, as is the case with political subdivisions, the Legislature generally provides for the dissolution ofpublic legal entities whose creation the Legislature authorizes. 6 This includes legal entities that the Legislature authorizes (like the bail bond board here), ratherthan requires, political subdivisions to create. 7 As noted by the Dallas court of appeals in a 1931 case involving an insurance company: "Thepolicy inthis state withreference to the dissolution and winding up ofthe affairs ofits legal entities, as manifestedbythe acts ofthe Legislature, is thatthe rightto bring about suchresults belongs exclusivelyto the state
.... " State v. Robinson, 42 S.W.2d 457,458 (Tex. Civ. App.-Dallas 1931, writrefd). The Legislature's expressprovisions for dissolutionoflegal entities indicates that the (1) authority to dissolve is not inherent or implied in the authority to create such entities and (2) when desired, the Legislature knows how to provide it. As you observe, chapter 1704 does not specifically authorize the dissolution ofa bail bond boardby a vote of the board orby any othermethod. Nordoes anyprovision in chapter 1704 suggest thatthe Legislature intended orcontemplated such dissolution once abail bondboard is created. Cf Pruettv. Harris CountyBailBondBd., 249 S.W.3d447, 454 (Tex. 2008) ("We ascertain legislative intent concerning the [Harris County Bail Bond] Boards'authority from the plain and common
5(

...continued) (1958) at 3 (explaining that absent specific authority and procedure, an inactive junior college district could not be dissolved). 6See, e.g., TEX. AGRIc. CODE ANN. § 74.127 (Vernon Supp. 2008) (authorizing the dissolution ofthe official cotton growers' boll weevil eradication foundation); TEX. GOV'T CODEANN. § 441.131 (b) (Vernon 2004) (authorizing regional library systems to provide forthe dissolution ofa nonprofitcorporationcreatedbythe systems); ide § 481.024(d) (authorizing the Texas Economic Development Corporation's board of directors to dissolve the corporation); ide § 2306.558 (Vernon 2000) (authorizing the Texas State Affordable Housing Corporation's board ofdirectors to dissolve the corporation); TEX. HEALTH& SAFETY CODEANN. § 221.081 (Vernon 2001) (authorizing the local sponsoring entity that has created a health facilities development corporation to dissolve the corporation); TEX. Loc. GOV'T CODE ANN. § 303.101 (Vernon 2005) (authorizing sponsoring governing entity that has created a public facility corporation to dissolve the corporation); id § 327.351 (a) (Vernon2005) (authorizing a countyto dissolve a countyzoological operation and maintenance board); TEX. NAT. REs. CODEANN. § 62.161(a) (Vernon 2001) (authorizing county to call an election to dissolve beach park board oftrustees); TEX. TRANSP. CODE ANN. § 22.159 (Vernon 1999) (authorizing constituent agencies incorporating a nonprofit airport facility fmancing corporation to dissolve the corporation); TEX. Loc. GOV'T CODE ANN. § 394.026(a) (Vernon 2005) (authorizing a housing fmance corporation's board ofdirectors to dissolve the corporation). 7See supra note 6.The Honorable Jana A. Jones

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meaning ofthe statute granting such authority."). First, while in a county with apopulation offewer than 110,000 the Legislature has granted the discretion to create a bail bond board, we do not find and you do not direct us to any provision in the statute or other law indicating that such a county or its bail bond board has the concomitant discretion to dissolve the board. 

### CfTEX. OCC. CODEANN. 

### § 1704.052 (Vernon 2004) (discretionary creation ofboard). Second, chapter 1704 contains no provisions for winding up the affairs ofabail bondboardS ormaking atransitionto the very different scheme that would govern the taking ofa bail bond in a county without abail bondboard,9 as would reasonably be expected ifthe Legislature contemplated the dissolution ofa bail bond board. See TEX. GOV'T CODE ANN. 

### § 311.021(3) (Vernon 2005) ("In enacting a statute, it is presumed that

... ajust and reasonable result is intended[.]"); see also Font v. Carr, 867 S.W.2d 873, 880 (Tex. App.-Houston [1st Dist.] 1993, writ dism'd w.o.j.) (describing the predecessor to Occupations Code 1704 as "a comprehensive statutory regulatory scheme that applies to the business ofwriting bail bonds"); Tex. Att'y Gen. Ope No. JC-0541 (2002) at 2 (stating that Code ofCriminal Procedure chapter 17 generally governs the '''taking ofbail bonds on a bond-by-bond basis"').

8There is no provision in chapter 1704 forrevocation orcancellation ofabailbondlicense orfor the disposition ofthe related security deposited or executed because ofthe dissolution ofthe bail bond board. See TEX. OCC. CODE ANN. §§ 1704.0()1-.306 (Vernon 2004 & Supp. 2008); see also Int'l Fidelity Ins. Co. v. Wise County BailBondBd, 83 S.W.3d 257,260 (Tex. App.-Fort Worth 2002, no pet.) ("Appellants [insurance companies], duly licensed by the [bail bond] board to write bail bonds in Wise County, thereby acquired a property right that has constitutional protection." (citing Smith v. Decker, 312 S.W.2d 632, 633 (Tex. 1958))). Occupations Code chapter 1704 provides for the licensing ofbail bond sureties and requires a sheriffto accept bail bonds executed by license holders that have satisfied the requirements ofthe statute, including the deposit or execution ofsecurity. See TEX. OCC. CODE ANN. § 1704.201 (Vernon 2004). As security for executing bail bonds, a license holder must deposit with the county treasurer a cashier's check, certificate ofdeposit, or cash ofnot less than $50,000 or execute intrustto the bail bond board a deed to nonexempt real property with a value ofnot less than $50,000. See ide § 1704. 160(a)-(d), (i) (Vernon 2004). The security deposited or executedmaybe withdrawn andreturned ifthe license holder "(A) ceases to engage inthe bonding business; (B) ceases to maintain the license; and (C) presents a release by the board; and

... no judgment or bond liability, actual or potential, is outstanding against the license holder." Id § 1704.210. Chapter 1704 specifies the grounds for discretionary and mandatory suspension or revocation ofa license, including for failure to maintain the required security amount. 'See id §§ 1704.252 (discretionary licenses suspension or revocation: grounds), .253 (mandatory license suspension or revocation: grounds). 9Chapter 17 ofthe Code ofCriminal Procedure governs the taking of bail in a county without abailbondboard. See Castaneda 

## v. Gonzalez, 985 S.W.2d 500, 502-03 (Tex. App.-Corpus Christi 1998, no pet.); Font v. Carr, 867 S.W.2d 873, 882 (Tex. App.-Houston [1 stDist.] 1993, writ dism'd w.o.j.); Tex. Att'y Gen. Ope No. GA-0288 (2004) at 1. Unlike Occupations Code chapter 1704, Code ofCriminal Procedure chapter 17 does notrequire apersonto obtain a license to act as a bail bond surety nor does it require a deposit ofa fixed sum to secure the execution ofbail bonds. Chapter 17 authorizes "every court, judge, magistrate or other officer" taking a bail bond to "require evidence ofthe sufficiency ofthe security offered." TEX. CODECRIM. PROC. ANN. art. 17.11, § 1 (Vernon 2005). Article 17.11 provides that "one surety shall be sufficient" ifthe surety is "worth at least double the amount ofthe sum for which he is bound, exclusive ofall property exempted by law from execution, and ofdebts or other encumbrances; andthathe is a resident ofthis state, andhas propertytherein liable to executionworththe sum for whichhe is bound." Id Butthe officertaking the bail bond may require an affidavit attesting to the surety's worth. Idart. 17.13. And the officermay require further evidence "ifthe

... officer taking the bail bond is not fully satisfied as to the sufficiency ofthe security offered." Id art. 17.14. Article 17.141 permits the sheriffto "post a list ofeligible bail bond sureties whose security has been determinedto be sufficient," buteach such listed surety "mustfile annually a sworn fmancial statementwiththe sheriff." Id art. 17.141 (Vernon Supp. 2008).The Honorable Jana A. Jones

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In sum, as a general matter, public legal entities authorized to be created by legislative authority may be dissolved only pursuant to similar legislative authority. A bail bond board is a public legal entity. Chapter 1704 does not authorize the dissolution ofa bail bond board or suggest that the Legislattire intended or contemplated the dissolution ofa bail bond board. In the absence oflegislative authority, a bail bond board is not authorized to dissolve itselfby a majority vote of the members or a quorumthereoforby any othermethod. Dissolution authority, ifdesired, mustbe sought from the Legislature.

### The Honorable Jana A. Jones

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### SUMMARY Occupations Code chapter 1704 creates a bail bond board in a county with a population of 110,000 or more and authorizes the creation ofa bail bond board in a county with a population offewer than 110,000. Because neither chapter 1704 nor another law authorizes it, a bail bond board created in a county with apopulation of fewer than 110,000 may not dissolve itself by a vote of the members ofthe board or by another method.

KENT C. SULLIVAN First Assistant Attorney General ANDREW WEBER Deputy Attorney General for Legal Counsel NANCY S. FULLER Chair, Opinion Committee Sheela Rai Assistant Attorney General, Opinion Committee