1. (a) Surety bonds furnished in compliance with the Act shall be effective for the entire time period of the registration and for a period of two years from the date the talent agency ceases to hold a valid and active registration. The bond shall provide for the issuing company to give the department 30 days written notice of cancellation.
2. (b) The surety bond shall be issued by a company authorized to do business in the State of Texas, conform to the Texas Insurance Code, and be on a form provided by the department.
3. (c) Prior to the date that a talent agency ceases to hold a valid and active registration, a talent agency must submit proof of a surety bond in the amount of $10,000 payable to the State of Texas to be effective for a period of two years from the date the talent agency ceases to hold an valid and active registration.
4. (d) Failure to maintain the bond for the entire time period required by this section and the Act will be cause for the executive director to institute action to impose administrative and/or civil sanctions and penalties.

Source Note:The provisions of this §78.40 adopted to be effective March 1, 1994, 19 TexReg 1102; amended to be effective April 3, 2001, 26 TexReg 2539; amended to be effective December 1, 2003, 28 TexReg 10472; amended to be effective December 1, 2006, 31 TexReg 9605.