1-1     By:  Olivo (Senate Sponsor - Haywood)                 H.B. No. 2373

 1-2           (In the Senate - Received from the House April 14, 1997;

 1-3     April 16, 1997, read first time and referred to Committee on

 1-4     Economic Development; April 30, 1997, reported favorably by the

 1-5     following vote:  Yeas 11, Nays 0; April 30, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to notice of changes to the capital stock of an insurance

 1-9     company.

1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-11           SECTION 1.  Articles 8.13 and 8.23, Insurance Code, are

1-12     amended to read as follows:

1-13           Art. 8.13.  INCREASE OF CAPITAL.  Any such company may

1-14     increase its capital stock at any time after the intention to so

1-15     increase the capital stock shall have been ratified by a two-thirds

1-16     vote of the stockholders, and after notice of the purpose to so

1-17     increase the capital stock has been given by publication in some

1-18     newspaper of general circulation for five [four (4)] consecutive

1-19     days [weeks].  No increase of capital stock in less amount than

1-20     Fifty Thousand ($50,000.00) Dollars is hereby authorized.

1-21           Art. 8.23.  DECREASE OF STOCK.  Any such company may decrease

1-22     its capital stock at any time after the intention to so decrease

1-23     the capital stock shall have been ratified by a majority vote of

1-24     the stockholders, and after notice of such purpose has been

1-25     published in some newspaper of general circulation for a period of

1-26     five [four] consecutive days [weeks].

1-27           SECTION 2.  This Act applies only to publication of notice of

1-28     an increase or decrease of the capital stock of an insurance

1-29     company the first publication date of which is on or after the

1-30     effective date of this Act.  Publication of notice the first

1-31     publication date of which is before the effective date of this Act

1-32     is governed by the law as it existed immediately before the

1-33     effective date of this Act, and that law is continued in effect for

1-34     this purpose.

1-35           SECTION 3.  This Act takes effect September 1, 1997.

1-36           SECTION 4.  The importance of this legislation and the

1-37     crowded condition of the calendars in both houses create an

1-38     emergency and an imperative public necessity that the

1-39     constitutional rule requiring bills to be read on three several

1-40     days in each house be suspended, and this rule is hereby suspended.

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