By: Smithee (Senate Sponsor - Parker) H.B. No. 1903
(In the Senate - Received from the House April 17, 2023;
April 18, 2023, read first time and referred to Committee on
Business & Commerce; May 19, 2023, reported favorably by the
following vote: Yeas 10, Nays 0; May 19, 2023, sent to printer.)
Click here to see the committee vote
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are repealed: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.
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