| 1 | 1 | | H.B. No. 1903 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | AN ACT |
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| 5 | 5 | | relating to capital stock requirements for certain insurance |
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| 6 | 6 | | companies. |
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| 7 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 8 | 8 | | SECTION 1. Section 822.056(d), Insurance Code, is amended |
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| 9 | 9 | | to read as follows: |
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| 10 | 10 | | (d) The shareholders of an insurance company authorizing |
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| 11 | 11 | | shares of stock without par value must pay a total amount of at |
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| 12 | 12 | | least $250,000 for the shares [in good faith subscribe and pay for |
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| 13 | 13 | | shares representing at least 50 percent of the authorized shares |
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| 14 | 14 | | without par value] before the company is granted a charter or has |
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| 15 | 15 | | its charter amended to authorize the issuance of shares without par |
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| 16 | 16 | | value. [The total amount paid for the shares must be at least |
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| 17 | 17 | | $250,000.] |
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| 18 | 18 | | SECTION 2. Section 841.057(c), Insurance Code, is amended |
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| 19 | 19 | | to read as follows: |
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| 20 | 20 | | (c) The shareholders of an insurance company authorizing |
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| 21 | 21 | | shares of stock without par value must pay a total amount of at |
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| 22 | 22 | | least $250,000 for the shares [in good faith subscribe and pay for |
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| 23 | 23 | | shares representing at least 50 percent of the authorized shares |
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| 24 | 24 | | without par value] before the company is granted a charter or has |
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| 25 | 25 | | its charter amended to authorize the issuance of shares without par |
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| 26 | 26 | | value. [The total amount paid for the shares must be at least |
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| 27 | 27 | | $250,000.] |
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| 28 | 28 | | SECTION 3. The following provisions of the Insurance Code |
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| 29 | 29 | | are repealed: |
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| 30 | 30 | | (1) Section 822.055(d); |
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| 31 | 31 | | (2) Section 841.055(c); and |
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| 32 | 32 | | (3) Section 841.056(d). |
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| 33 | 33 | | SECTION 4. This Act takes effect September 1, 2023. |
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| 34 | 34 | | ______________________________ ______________________________ |
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| 35 | 35 | | President of the Senate Speaker of the House |
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| 36 | 36 | | I certify that H.B. No. 1903 was passed by the House on April |
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| 37 | 37 | | 14, 2023, by the following vote: Yeas 138, Nays 5, 2 present, not |
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| 38 | 38 | | voting. |
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| 39 | 39 | | ______________________________ |
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| 40 | 40 | | Chief Clerk of the House |
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| 41 | 41 | | I certify that H.B. No. 1903 was passed by the Senate on May |
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| 42 | 42 | | 24, 2023, by the following vote: Yeas 31, Nays 0. |
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| 43 | 43 | | ______________________________ |
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| 44 | 44 | | Secretary of the Senate |
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| 45 | 45 | | APPROVED: _____________________ |
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| 46 | 46 | | Date |
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| 47 | 47 | | _____________________ |
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| 48 | 48 | | Governor |
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