Amend HB 1203 as follows:
(1) On page 1, line 38, insert the following Subsection
(b)(3) and renumber subsequent Subsections appropriately:
(3) administer the program for the purchase of surety
bonds for state officers and employees as provided by Chapter 653,
Government Code;
(2) On page 6, line 17, insert new SECTION 1.12 through
SECTION 1.16 and renumber subsequent SECTIONS appropriately:
SECTION 1.12. Section 653.002, Government Code, is amended
to read as follows:
Sec. 653.002. LEGISLATIVE INTENT. The intent of the
legislature in enacting this chapter is to limit the purchase of
surety bonds by state agencies in order that the state, to the
greatest extent practicable, shall self-insure for such purposes
<prescribe:>
<(1) uniform standards for the bonding of officers and
employees of state agencies to provide protection against loss; and>
<(2) a uniform bond to cover those officers and
employees>. This chapter does not affect the purchase by a state
agency of any form of insurance other than a surety bond.
SECTION 1.13. Section 653.003, Government Code, is amended
to read as follows:
Sec. 653.003. DEFINITIONS. In this chapter:
(1) "Surety bond <Bond>" means any bond <an agreement>
, including a bond for a notary public under Section 406.010, that
obligates <obligating an insurance company, as> a surety<,> to pay
within certain limits a loss caused by a:
(A) dishonest act of an officer or employee of a
state agency; or
(B) failure of an officer or employee of a state
agency to faithfully perform a duty of the officer's or employee's
office or position.
(2) "Office" means the State Office of Risk Management
<"Faithful performance blanket position bond" means a bond that:>
<(A) covers all positions in a state agency; and>
<(B) is conditioned on the faithful performance of
the officers' and employees' duties>.
(3) <"Honesty blanket position bond" means a bond that
covers all positions in a state agency for a specific amount for
each position.>
<(4) "Position schedule honesty bond" means a bond that
covers, for a specific amount for each position, the honesty of an
employee of a state agency who occupies and performs the duties of
a position listed in a schedule attached to the bond.>
<(5) "Specific excess indemnity" means additional bond
coverage that exceeds the coverage specified in a faithful
performance blanket position bond, honesty blanket position bond,
or position schedule honesty bond.>
<(6)> "State agency" means a state department,
commission, board, institution, court, or institution of higher
education. The term also includes a soil conservation district of
the state but does not include any other political subdivision of
the state.
SECTION 1.14. Section 653.004, Government Code, is amended
to read as follows:
Sec. 653.004. AUTHORITY TO PURCHASE BONDS. (a)
Notwithstanding any other law that authorizes or requires a state
officer or employee to obtain a surety bond, <The head of> a state
agency may purchase a surety bond for a state officer or employee
only if <contract for>:
(1) required by the constitution of the state or by
federal law or regulation <a position schedule honesty bond
covering not more than 10 offices or positions of the state
agency>; <or>
(2) required by court order; or
(3) approved by the office <a blanket position bond
for more than two offices or positions of the state agency>.
(b) The office may approve the purchase of a surety bond if:
(1) the office finds that the surety bond is warranted
by a substantial or unusual risk of loss; or
(2) The office otherwise determines that the purchase
of a surety bond is necessary to protect the interests of the state
<head of a state agency may not contract for coverage of the same
office or position under more than one type of bond, other than for
specific excess indemnity authorized under Subsection (c).>
<(c) The head of a state agency, other than the comptroller
or the state treasurer, may contract for specific excess indemnity
coverage in addition to a blanket bond. The comptroller or the
state treasurer may contract for:>
<(1) specific excess indemnity coverage in addition to
an honesty blanket position bond or to a position schedule honesty
bond; and>
<(2) a faithful performance blanket position bond.>
<(d) A bond covers the office or position rather than the
officer or employee in the office or position>.
SECTION 1.15. Section 653.005, Government Code, is amended
to read as follows: Sec. 653.005. SCOPE AND AMOUNT OF BOND
COVERAGE. <(a)> Unless the amount of bond coverage is established
as provided by Subsections (a)(1) and (a)(2) of Section 653.004,
<The head of a state agency> the office shall determine the
necessary scope and amount of bond coverage for a state <the>
agency <within the maximum bond coverage limit.>
<(b) The maximum bond coverage on a state officer or
employee, including specific excess indemnity coverage, may not
exceed $10,000 unless the state auditor recommends and approves
specific excess indemnity coverage of more than $10,000 as
necessary to protect the state>.
SECTION 1.16. Chapter 653, Government Code, is amended by
adding Section 653.012 to read as follows:
Sec. 653.012. QUALIFICATION FOR OFFICE OR EMPLOYMENT.
Notwithstanding any other law that requires a state officer or
employee to obtain a surety bond, a state officer or employee
otherwise qualified to hold office, employment, or to serve as a
notary public shall not be disqualified because a surety bond has
not been obtained for such officer or employee.
(3) On page 6, following line 64, add Subsection (e) to read
as follows:
(e) The changes made by this Act to Chapter 653, Government
Code, shall not apply to payments made under an agreement to
purchase a surety bond entered into by a state agency before the
effective date of this Act.