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Subcommittee approves bill to streamline cash-bond certificate process
Summary
The Insurance Subcommittee approved House Bill 119 to move sole responsibility for issuing cash- and bond-backed certificates to the Department of Revenue, a change sponsors said will simplify recordkeeping and reduce customer confusion.
Chairman Hicks presented House Bill 119 to the Insurance Subcommittee on Wednesday, Feb. 12, proposing that the Department of Revenue alone issue certificates for cash bonds or deposit-backed certificates now handled by two agencies.
Supporters said the change will centralize recordkeeping and simplify the process for customers who put up cash bonds or surety bonds tied to certificates. Chairman Hicks said the bill would “streamline the entire process” so customers “only have to communicate with one state department instead of currently two.”
The measure moves issuance authority to the Department of Revenue and, according to the bill summary presented, aims to reduce confusion for the relatively small number of people who use the certificate option. Chairman Hicks noted that the fiscal note or internal documentation shows about 41 people receive such bonds but only two vehicles were recorded as cash bonds, underscoring the sponsor’s view that the change affects a limited number of transactions.
Committee members asked no substantive questions before the roll-call vote. The roll call, recorded by the clerk, registered aye votes from Representative Bob Freeman; Representative Youssef Hakim; Chairwoman Esther Hilton Haines; Representative Renee Jones; Representative Anssavi Kumar; Representative Raper; and Representative Rick Scarborough. The clerk announced 7 ayes and 0 nays, and the bill was approved to advance to the full Insurance Committee.
The subcommittee did not record a named mover or seconder on the motion to advance; members followed standard roll-call procedure to pass the bill. No amendments or changes were offered during the subcommittee hearing.
