(a) State agencies shall initiate the process of purchasing surety bonds by submitting the SORM-201 not later than 30 days before the inception date of the bond.
(b) The following factors shall be considered by the Office in determining the necessity of surety bonds for state agencies:
  (1) whether the bond is required under the Texas Constitution, federal law or regulation, or court order;
  (2) whether the surety bond is warranted by a substantial or unusual risk of loss;
  (3) whether the surety bond is necessary to protect the interests of the state; and/or
  (4) other relevant factors.
(c) If the Office approves the application for the surety bond, the Office shall determine the scope and amount of the bond coverage and shall authorize the purchase of the bond.

Source Note: The provisions of this §252.403 adopted to be effective December 22, 2002, 27 TexReg 11779