By Olivo                                              H.B. No. 2373

         75R5695 DLF-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to notice of changes to the capital stock of an insurance

 1-3     company.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Articles 8.13 and 8.23, Insurance Code, are

 1-6     amended to read as follows:

 1-7           Art. 8.13.  INCREASE OF CAPITAL.  Any such company may

 1-8     increase its capital stock at any time after the intention to so

 1-9     increase the capital stock shall have been ratified by a two-thirds

1-10     vote of the stockholders, and after notice of the purpose to so

1-11     increase the capital stock has been given by publication in some

1-12     newspaper of general circulation for five [four (4)] consecutive

1-13     days [weeks].  No increase of capital stock in less amount than

1-14     Fifty Thousand ($50,000.00) Dollars is hereby authorized.

1-15           Art. 8.23.  DECREASE OF STOCK.  Any such company may decrease

1-16     its capital stock at any time after the intention to so decrease

1-17     the capital stock shall have been ratified by a majority vote of

1-18     the stockholders, and after notice of such purpose has been

1-19     published in some newspaper of general circulation for a period of

1-20     five [four] consecutive days [weeks].

1-21           SECTION 2.  This Act applies only to publication of notice of

1-22     an increase or decrease of the capital stock of an insurance

1-23     company the first publication date of which is on or after the

1-24     effective date of this Act.  Publication of notice the first

 2-1     publication date of which is before the effective date of this Act

 2-2     is governed by the law as it existed immediately before the

 2-3     effective date of this Act, and that law is continued in effect for

 2-4     this purpose.

 2-5           SECTION 3.  This Act takes effect September 1, 1997.

 2-6           SECTION 4.  The importance of this legislation and the

 2-7     crowded condition of the calendars in both houses create an

 2-8     emergency and an imperative public necessity that the

 2-9     constitutional rule requiring bills to be read on three several

2-10     days in each house be suspended, and this rule is hereby suspended.