88R7380 JES-F
By: Smithee H.B. No. 1903
A BILL TO BE ENTITLED
AN ACT
relating to capital stock requirements for certain insurance
companies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 822.056(d), Insurance Code, is amended
to read as follows:
(d) The shareholders of an insurance company authorizing
shares of stock without par value must pay a total amount of at
least $250,000 for the shares [in good faith subscribe and pay for
shares representing at least 50 percent of the authorized shares
without par value] before the company is granted a charter or has
its charter amended to authorize the issuance of shares without par
value. [The total amount paid for the shares must be at least
$250,000.]
SECTION 2. Section 841.057(c), Insurance Code, is amended
to read as follows:
(c) The shareholders of an insurance company authorizing
shares of stock without par value must pay a total amount of at
least $250,000 for the shares [in good faith subscribe and pay for
shares representing at least 50 percent of the authorized shares
without par value] before the company is granted a charter or has
its charter amended to authorize the issuance of shares without par
value. [The total amount paid for the shares must be at least
$250,000.]
SECTION 3. The following provisions of the Insurance Code
are repealed:
(1) Section 822.055(d);
(2) Section 841.055(c); and
(3) Section 841.056(d).
SECTION 4. This Act takes effect September 1, 2023.