Texas § LA.91.014 - WORKING CAPITAL REQUIREMENTS

§ LA.91.014. WORKING CAPITAL REQUIREMENTS

WORKING CAPITAL REQUIREMENTS. (a) An applicant for an original or renewal license must demonstrate positive working capital in the following amounts: (1) $50,000 if the applicant employs fewer than 250 covered employees; (2) $75,000 if the applicant employs at least 250 but not more than 750 covered employees; and (3) $100,000 if the applicant employs more than 750 covered employees. (b) The applicant shall demonstrate the applicant's working capital to the department by providing the department with the applicant's financial statement. The financial statement must be prepared in accordance with generally accepted accounting principles, be audited by an independent certified public accountant, and be without qualification as to the going concern status of the applicant. An applicant that has not had sufficient operating history to have audited financial statements based on at least 12 months of operations must meet the financial capacity requirements required by Subsection (a) and provide the department with financial statements that have been reviewed by a certified public accountant.The applicant may satisfy any deficiencies in the working capital requirement through guarantees, letters of credit, a bond in an amount that demonstrates compliance with the amounts required under Subsection (a), or other security acceptable to the department. A guaranty is not acceptable to satisfy this subsection unless the applicant submits sufficient evidence to satisfy the department that the guarantor has adequate resources to satisfy the obligations of the guaranty. (c) Information submitted to or maintained by the department is subject to Chapter 552 , Government Code, other than information related to: (1) identification of clients; (2) working capital; (3) financial statements; or (4) federal tax returns. Added by Acts 1995, 74th Leg., ch. 76, Sec. 9.20(a), eff. Sept. 1, 1995. Amended by Acts 1997, 75th Leg., ch. 1379, Sec. 7, eff. Sept. 1, 1997. Amended by: Acts 2009, 81st Leg., R.S., Ch. 188 (H.B. 2249 ), Sec. 2, eff. December 31, 2011. Acts 2013, 83rd Leg., R.S., Ch. 117 (S.B. 1286 ), Sec. 7, eff. September 1, 2013.