Amend CSHB 2960 as follows:                                                  

(1)  On page 4, line 5, strike "2210.052(a)" and substitute 	"2210.052(a), (c),".
	(2)  On page 4, between lines 14 and 15, insert the 
following:               
	(c)  Each member's participation in the association shall be 
determined annually in the manner provided by the plan of 
operation.  For purposes of determining participation in the 
association, two or more members that are subject to common 
ownership or that operate in this state under common management or 
control shall be treated as a single member.  [The determination 
shall also include the net direct premiums of an affiliate that is 
under that common management or control, including an affiliate 
that is not authorized to engage in the business of property 
insurance in this state.]
	(3)  On page 7, line 7, strike "The association" and 
substitute "Notwithstanding any other provision of this section, 
the association".
	(4)  On page 7, lines 9-11, strike "to fund losses and may pay 
expenses of the association with other funding available as 
provided in any subsection of this section".
	(5)  Strike page 8, line 9 through page 9, line 5, and 
substitute the following:
	Sec. 2210.061.  ELIGIBLE SURPLUS LINES INSURERS.  (a)  An 
eligible surplus lines insurer may not be a member of the 
association and is not subject to assessment as a member of the 
association.
	(b)  Each surplus lines agent placing property insurance 
through an eligible surplus lines insurer shall collect from the 
policyholder and shall remit to the association a surplus lines 
policy fee on all premiums collected after January 1, 2008, for all 
insurance written by the surplus lines agent for a policy from an 
eligible surplus lines insurer for all risks on real property and 
contents in first tier coastal counties.  By procuring or selling 
insurance on property in this state through an eligible surplus 
lines insurer, each surplus lines agent described by this 
subsection agrees to be subject to the provisions of this chapter, 
and to collect and remit the surplus lines policy fee described by 
this section.
	(c)  The surplus lines policy fee shall be five percent of 
the total policy premium, but the fee may not be considered premium 
and is not subject to premium taxes or commissions.  Failure to pay 
the surplus lines policy fee shall be treated as a failure to pay 
premium.  For purposes of this subsection, "total policy premium" 
includes taxes and commissions.
	(d)  Not later than the 20th day after the last day of each 
calendar quarter, each surplus lines agent placing insurance 
through an eligible surplus lines insurer shall remit directly to 
the association all surplus lines policy fees collected in the 
preceding quarter.
	(6)  On page 9, strike lines 20-22 and substitute the 
following:             
	(b)  Three members must be employed by or affiliated with, 
other than as agents, [:
	(7)  On page 9, strike lines 25-26 and substitute the 
following:             
	(c)  Two members must be [, elected by the members as 
provided by the plan of
	(8)  On page 34, line 4, between "(d)" and "The service 
fees", insert the following:

The premium surcharge shall apply to all insurance policies for all 
property and casualty lines other than workers' compensation, 
accident and health, and medical malpractice.
	(9)  On page 37, line 4, strike "for calendar year 2008" and 
substitute "for calendar years 2007 and 2008".
	(10)  On page 38, strike lines 25-27 and substitute the 
following:           
	SECTION 38.  (a)  Except as provided by Subsection (b) of 
this section, this Act takes effect immediately if it receives a 
vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2007.
	(b)  The change in law made by this Act to Sections 2210.251, 
2210.252, 2210.254, and 2210.255, Insurance Code, takes effect 
September 1, 2008.
	(11)  On page 39, strike lines 1-2.