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.
1-41 * * * * *