Amend HB 1951 (house committee printing) by adding the following appropriately numbered ARTICLE and renumbering remaining ARTICLES accordingly:

ARTICLE ____. SURETY BONDS AND RELATED INSTRUMENTS

SECTION ____.  Section 3503.005(a), Insurance Code, is amended to read as follows:

(a)  A bond that is made, given, tendered, or filed under Chapter 53, Property Code, or Chapter 2253, Government Code, may be executed only by a surety company that is authorized to write surety bonds in this state.  If the amount of the bond exceeds $100,000, the surety company must also:

(1)  hold a certificate of authority from the United States secretary of the treasury to qualify as a surety on obligations permitted or required under federal law; or

(2)  have obtained reinsurance for any liability in excess of $1 million [$100,000] from a reinsurer that:

(A)  is an authorized reinsurer in this state; or [and]

(B)  holds a certificate of authority from the United States secretary of the treasury to qualify as a surety or reinsurer on obligations permitted or required under federal law.

SECTION ____.  Section 3503.004(b), Insurance Code, is repealed.