1. (a) Notwithstanding any other law that authorizes or requires a state officer or employee to obtain a surety bond, a state agency may purchase a surety bond for a state officer or employee only if:

   1. (1) required by the constitution of the state or by federal law or regulation;
   2. (2) required by court order; or
   3. (3) approved by the office.

2. (b) The office may approve the purchase of a surety bond if:

   1. (1) the office finds that the surety bond is warranted by a substantial or unusual risk of loss; or
   2. (2) the office otherwise determines that the purchase of a surety bond is necessary to protect the interests of the state.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993.

Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 8.42, eff. Sept. 1, 1997;

Acts 2001, 77th Leg., ch. 1017, Sec. 1.12, eff. Sept. 1, 2002.