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Tennessee General Assembly· SB 1245Companion House Bill substituted

Bonding, Surety and Professional - As enacted, makes revisions to law relative to bondsmen. - Amends TCA Title 4, Chapter 3, Part 13; Title 39; Title 40; Title 41; Title 56; Title 62 and Title 67, Chapter 4, Part 8. Comp, the official text

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                        ~tate of ~ennessee

                          PUBLIC CHAPTER NO. 491

                                                  HOUSE BILL NO. 576

                 By Representatives Doggett, Mr. Speaker Sexton, Howell, Lafferty

                                       Substituted for: Senate Bill No. 1245

                           By Senators Haile, Jackson and Mr. Speaker McNally

          AN ACT to amend Tennessee Code Annotated, Title 4, Chapter 3, Part 13; Title 39; Title
40; Title 41; Title 56; Title 62 and Title 67, Chapter 4, Part 8, relative to bond.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

          SECTION 1. Tennessee Code Annotated, Section 4-3-1304(a), is amended by adding
the following as a new subdivision:

                    (11) Board of professional bondsmen;

          SECTION 2. Tennessee Code Annotated, Section 40-11-124, is amended by adding the
following as a new subsection:

                     (c)

                               (1)

                                        (A) The department of commerce and insurance shall provide the
                              clerk, sheriff, municipal courts, and other inferior courts with a current
                              approved list of professional bondsmen licensed by the board of
                              professional bondsmen.

                                        (B) The clerk, sheriff, municipal courts, and other inferior courts
                              shall have available a list of licensed professional bondsmen or other
                              sureties approved and qualified as solvent by the courts of record with
                              criminal jurisdiction within the county. The approved lists must be
                              provided by the judges of those courts.

                               (2) An undertaking must not be accepted unless the professional
                     bondsman or other surety is licensed under part 3 of this chapter and approved
                     and qualified as solvent by the courts of record with criminal jurisdiction within the
                     county.

                               (3) Notwithstanding the issuance by an association of a guaranteed arrest
                     or bail bond certificate, as defined in § 40-11-145, a professional bondsman
                     licensed by the board of professional bondsmen, pursuant to part 3 of this
                     chapter, shall provide proof of such licensure to all courts of this state having
                     jurisdiction and authorized to admit to bail when appearing before such courts.

           SECTION 3. Tennessee Code Annotated, Section 40-11-125(a), is amended by deleting
 the language:

           In addition to the requirements of part 3 of this chapter regulating professional
           bondsmen, approval of a professional bondsman or other surety may be withheld,
           withdrawn or suspended by any court if, after investigation, it appears that a bondsman:

 and substituting the language:

           In addition to the requirements of part 3 of this chapter regulating professional
           bondsmen, licensure of a professional bondsman may be withheld, withdrawn,
           suspended, revoked, or denied by the board of professional bondsmen if, after
           investigation, it appears that a professional bondsman:
HB576

          SECTION 4. Tennessee Code Annotated, Section 40-11-125, is amended by deleting
subsections (b)-(d) and substituting the following:

                    (b) If, after investigation, the board finds a professional bondsman to be in
          violation of any of the statutes enumerated in this section, then the board shall notify the
          bondsman in writing of the bondsman's right to a hearing prior to imposing any sanction
          permitted under this chapter. If the bondsman fails to notify the board in writing within ten
          (10) days from the date of the board's notice that the bondsman seeks a hearing, then
          such hearing is waived and the board may impose upon the bondsman any sanction or
          discipline permitted by this chapter. All hearings conducted pursuant to this subsection
          (b) must be in accordance with the Uniform Administrative Procedures Act, compiled in
          title 4, chapter 5.

                    (c) The board shall remove the offending professional bondsman's name from
          the approved list as maintained on the board's registry under§ 40-11-314 and notify all
          courts in which the professional bondsman is approved to practice.

                     (d)

                              (1) Notwithstanding the board's authority under this section, a court may
                    deny, withhold, suspend, or revoke an approved professional bondsman's
                    bonding privileges in such court upon the court's determination that the
                    professional bondsman's conduct is detrimental to the bondsman's client or is
                    disruptive to the court or court proceedings.

                               (2) The court shall notify the board of its action, and the board may strike
                    the offending bondsman from the approved list as maintained on the board's
                     registry under§ 40-11-314, following review by the board.

                               (3) Any bondsman whose bonding privileges have been denied, withheld,
                     suspended, or revoked under subdivision (d)(1) has the right of appeal to the
                     next highest court having criminal jurisdiction, and the appeal must be heard de
                     nova.

                     (e) Any disciplinary action taken against a professional bondsman under this
           section must be published in accordance with § 56-1-302(a)(9).

           SECTION 5. Tennessee Code Annotated, Section 40-11-127, is amended by deleting
 the section and substituting the following:

                     Upon a finding by a district attorney general that a professional bondsman has
           violated this chapter, the district attorney general may:

                               (1) File a complaint with the board of professional bondsmen that details
                     all violations alleged to have been committed by the professional bondsman for
                     further action, if necessary, by the department; and

                               (2) Prefer charges to have a bail bondsman stricken from the approved
                     list pursuant to § 40-11-125 with the same provisions for notice, answer, and
                     hearing before the court, and the same right of appeal.

           SECTION 6. Tennessee Code Annotated, Section 40-11-132(1), is amended by deleting
 the subdivision.

           SECTION 7. Tennessee Code Annotated, Section 40-11-133(d), is amended by deleting
 the language "Any approved bail bondsman in good standing" and substituting the language
 "Any licensed professional bondsman in good standing with the board of professional
 bondsmen".

           SECTION 8. Tennessee Code Annotated, Section 40-11-303(a), is amended by deleting
 "file with the clerk of the circuit or criminal court in each county" and substituting "file with the
 board of professional bondsmen and the clerk of the circuit or criminal court of each county".

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HB576

          SECTION 9. Tennessee Code Annotated, Section 40-11-306, is amended by adding the
following language at the end of the section:

          The court shall report any action taken under this section to the board of professional
          bondsmen for review to determine if additional disciplinary action is to be taken against
          the professional bondsman.

          SECTION 10. Tennessee Code Annotated, Section 40-11-306, is amended by
designating the existing language as subsection (a) and adding the following as a new
subsection:

                    (b) In addition to the limitations imposed under subsection (a), the board of
          professional bondsmen may suspend or revoke the professional bondsman's license to
          practice bail bonding in this state upon its review of the findings of the investigation by
          the court. A person whose license to practice bail bonding has been suspended or
          revoked under this subsection (b) may appeal such action by the board pursuant to§ 40-
          11-125.

          SECTION 11. Tennessee Code Annotated, Section 40-11-313, is amended by deleting
the section and substituting:

                     (a) It is unlawful for a person to act as a professional bondsman, directly or
          indirectly, while:

                               (1) Serving as a constitutionally elected peace officer, or as such officer's
                     deputy, or any duly elected or appointed county official; or

                               (2) Owning, operating, or being an employee of a qualified electronic
                     monitoring provider, as defined in § 40-11-152(a).

                     (b) Subdivision (a)(1) does not apply to any duly elected member of the county
           legislative body.

                     (c) Subdivision (a)(2) does not apply to a person who was a professional
           bondsman and owned a qualified electronic monitoring provider prior to January 1, 2025.

           SECTION 12. Tennessee Code Annotated, Section 40-11-317(a), is amended by
 deleting the subsection and substituting the following:

                     (a) In addition to any other qualifications required by law, a person seeking to
           become a professional bondsman shall file an application for licensure with the board of
           professional bondsmen. In addition, the applicant shall submit to a criminal history
           background check by the Tennessee bureau of investigation as provided for under § 38-
           6-109 and is responsible for any fees associated with the criminal history background
           check. The Tennessee bureau of investigation shall submit the results of the criminal
           background check to the clerks of all courts in which the professional bondsman is
           qualified and to the board.

           SECTION 13. Tennessee Code Annotated, Section 40-11-317(c), is amended by
 deleting the subsection and substituting:

                      (c)

                                (1) If a court finds that a bondsman has individually or as a corporation
                      owner been discharged in a bankruptcy proceeding leaving unsatisfied
                      outstanding forfeitures with any court, then the court may order that the
                      bondsman be prohibited from executing bonds, bail, or other undertakings as
                      surety in the court, and must notify the board of professional bondsmen of the
                      finding.

                                (2) If the board is notified that a bondsman has individually or as a
                      corporation owner been discharged in a bankruptcy proceeding leaving
                      unsatisfied outstanding forfeitures with any court, then the board may suspend or
                      revoke the bondsman's license to practice bail bonding in this state.

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HB576

          SECTION 14. Tennessee Code Annotated, Section 40-11-319(a), is amended by
deleting the language:

                    shall notify, in writing, within seventy-two (72) hours of the arrest, the court or
                    courts in which the professional bondsman is qualified

and substituting the language:

                    shall notify the board of professional bondsmen in writing within seventy-two (72)
                    hours of the arrest

          SECTION 15. Tennessee Code Annotated, Section 40-11-319(c), is amended by
deleting the subsection and substituting the following:

                    (c) Upon receipt of the notice, the board may proceed in accordance with § 40-
          11-125 if such action is warranted.

          SECTION 16. Tennessee Code Annotated, Section 40-11-319(d), is amended by
deleting the subsection and substituting the following:

                    (d) Failure to comply with this section must result in an automatic suspension of
          the professional bondsman's bonding privileges until the board conducts a hearing
          pursuant to § 40-11-125(b), or until the criminal charges against the professional
          bondsman are resolved.

           SECTION 17. Tennessee Code Annotated, Title 40, Chapter 11, Part 3, is amended by
 adding the following as a new section:

           40-11-314.

                     (a) On or after March 1, 2026, a person shall not operate as a professional
           bondsman in this state unless the person is licensed by the board of professional
           bondsmen under this section.

                      (b)

                               (1) There is created a state board to be known and designated as the
                     board of professional bondsmen for this state. The board consists of seven (7)
                     members who must possess good moral character, must be residents of this
                     state, and are appointed as follows:

                                         (A) Two (2) members to be appointed by the speaker of the house
                               of representatives, who meet the following qualifications:

                                                   (i) One (1) member who is licensed as a professional
                                         bondsman; and

                                                   (ii) One (1) member who is a circuit court clerk;

                                          (8) Three (3) members to be appointed by the governor, who
                               meet the following qualifications:

                                                   (i) One (1) member who is licensed as a professional
                                         bondsman;

                                                    (ii) One (1) member who is a district attorney general; and

                                                    (iii) One (1) member who is a judge with jurisdiction to
                                          issue bond; and

                                          (C) Two (2) members to be appointed by the speaker of the
                                senate, who meet the following qualifications:

                                                    (i) One (1) member who is licensed as a professional
                                          bondsman; and

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HB576

                                   (ii) One (1) member who is a sheriff.

               (2)

                         (A) Members of the board must be appointed in accordance with
               subdivision (b)(2)(B). It is the purpose of this section that at least one (1)
               member shall retire from the board at the end of each year, thereby
               creating a rotating board.

                         (B) The members' terms shall be staggered as follows:

                                    (i) The member of the board appointed pursuant to
                          subdivision (b)(1)(A)(i) shall serve an initial term of one (1) year;

                                    (ii) The member of the board appointed pursuant to
                          subdivision (b)(1)(A)(ii) shall serve an initial term of two (2) years;

                                    (iii) The member of the board appointed pursuant to
                          subdivision (b)(1)(B)(i) shall serve an initial term of three (3) years;

                                    (iv) The member of the board appointed pursuant to
                          subdivision (b)(1 )(B)(ii) shall serve an initial term of four (4) years;

                                    (v) The member of the board appointed pursuant to
                          subdivision (b)(1 )(B)(iii) shall serve an initial term of five (5) years;

                                    (vi) The member of the board appointed pursuant to
                          subdivision (b)(1)(C)(i) shall serve an initial term of six (6) years;
                          and

                                    (vii) The member of the board appointed pursuant to
                          subdivision (b)(1 )(C)(ii) shall serve an initial term of seven (7)
                          years.

                          (C) The appointing authorities shall appoint a new member to the
                board upon the expiration of the terms prescribed in subdivision (b)(2)(B)
                and upon the expiration of all subsequent terms. All subsequent terms
                must be for six (6) years.

                           (D) A member must not be reappointed for one (1) year after the
                completion of a term on the board.

                 (3) Vacancies occurring on the board must be filled in accordance with
       this section for the balance of the unexpired term.

       (c)

                 (1) The administrative office of the courts shall provide a list of all licensed
       bondsmen in this state upon the request of the board. The request must be made
       prior to March 1, 2026.

                 (2) The board of professional bondsmen, in consultation and cooperation
       with members of the judiciary in this state, shall promulgate rules for the
       regulation of professional bondsmen that are reasonably necessary to carry out
       this chapter, including, but not limited to, rules to:

                           (A) Implement and administer the licensure program created by
                 this section, including, but not limited to, the establishment of adequate
                 licensure and renewal fees to cover the cost of implementing and
                 administering the licensure program for professional bondsmen;

                           (B) Establish procedures for handling disciplinary matters
                 involving professional bondsmen licensed under this section and for
                 persons engaged in the unauthorized practice of bail bonding;

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HB576

                                        (C) Assess civil penalties for violations;

                                        (D) Establish the standards of practice and qualifications for the
                              issuance of a license to be a professional bondsman under this section.
                              The standards and qualifications include, but are not limited to,
                              procedures to require professional bondsmen to submit to criminal history
                              background checks in accordance with§§ 38-6-109 and 55-10-426;

                                        (E) Establish any other procedures deemed necessary by the
                              department for the supervision of professional bondsmen licensed under
                              this section; and

                                        (F) Establish procedures for the approval of the continuing
                              education programs for professional bondsmen, to be administered by an
                              approved third-party contractor under part 4 of this chapter.

                              (3) The rules must be promulgated in accordance with this chapter and
                    the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.

                    (d) A person eighteen (18) years of age or older may apply for a license to
          operate as a professional bondsman.

                    (e) An application for licensure as a professional bondsman must be submitted
          on a form prescribed by the board.

                     (f) A certificate of licensure expires two (2) years from the date of the licensure or
           renewal.

                     (g) A licensed professional bondsman shall list each place of business within this
           state with reference to its specific location, upon licensure and upon subsequent
           renewals of the licensure.

                     (h) Included on each license and renewal form must be a section in which the
           licensee declares, under penalty of perjury pursuant to § 39-16-702(a)(3), whether the
           licensee has previously been revoked or convicted of a violation of this chapter. In
           addition, the ijpplicant shall submit to a criminal history background check by the
           Tennessee bureau of investigation as provided for under § 38-6-109, and is responsible
           for any fees associated with the criminal history background check. The Tennessee
           bureau of investigation shall submit the results of the criminal background check to the
           board.

                     (i) A licensee who has been convicted of a violation of this chapter, which
           resulted in a revocation of their license is prohibited from licensure under this chapter for
           five (5) years from the date of conviction.

                     U) The board shall create and keep up to date a registry that includes, but is not
           limited to, the approved list of professional bondsmen licensed by the board, the names
           of all persons licensed as professional bondsmen, and a list of names of persons who
           have been disciplined by the board in the previous five (5) years for violating this
           chapter. The board shall post and maintain the registry on the department of commerce
           and insurance's website.

                     (k) Notwithstanding another law to the contrary, a license issued pursuant to this
           section becomes inactive upon notification to the department that the licensee is no
           longer in business at the licensed location.

                      (I) The board shall serve as the centralized entity for filing and evaluating
           complaints against professional bondsmen.

                      (m) This section does not require a judge to allow a licensed professional
            bondsman to admit persons to bail in the judge's court. A judge may deny a professional
            bondsman the privilege of admitting persons to bail in the judge's court regardless of the
            professional bondsman's licensure status. If a judge denies a licensed professional

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HB576
          bondsman's request to admit persons to bail in the judge's court, then the judge must
          provide the bondsman with written notice of the denial and the reasons for such denial.
          SECTION 18. Tennessee Code Annotated, Title 40, Chapter 11, Part 3, is amended by

adding the following as a new section:
                    Each licensed professional bondsman shall inform the board in writing of each

          county in which the licensed professional bondsman has been approved by a judge to
          admit persons to bail.
          SECTION 19. Notwithstanding Sections 40-11-314(b)(1)(A)(i), (b)(1)(B)(i), and
(b)(1 )(C)(i), for the purpose of establishing the board of professional bondsmen, the appointing
entities may initially appoint a bondsman who is approved to make bonds by a court within this
state to the positions that must be filled by a licensed professional bondman. After March 1,
2026, the licensing requirements of Sections 40-11-314(b)(1)(A)(i), (b)(1)(B)(i), and (b)(1)(C)(i)
apply for any newly appointed member of the board.
          SECTION 20. For the purpose of promulgating rules and appointing members to the
board, this act takes effect upon becoming a law, the public welfare requiring it. For all other
purposes, this act takes effect January 1, 2026, the public welfare requiring it.

                                                                 7
                    HOUSE BILL NO. 576

PASSED:  April 21, 2025

                         c-7df_

                             CAMERONSEXTON,SPEAKER
                            HOUSE OF REPRESENTATIVES

                         li.s A.. ~~'"'
                              '         RANDY MCNAILy

                              SPEAKER OF THE SENATE

c2 /St- APPROVED this  day of /V")~     2025

BILL LEE, GO~ERNOR       U<-
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