(a) This subchapter shall be applicable to a state department, commission, board, institution, court, or institution of higher education or soil conservation district of the state. This subchapter does not apply to any other political subdivisions of the state.

(b) Surety bonds shall not be purchased without approval of the Office. State agencies failing to obtain approval for purchases of surety bonds may result in non-authorization of the expenditure and/or report to the legislature for appropriate action.

(c) This subchapter does not affect the purchase by a state agency of any form of insurance other than a surety bond.

The provisions of this §252.401 adopted to be effective December 22, 2002, 27 TexReg 11779.