Section 402.404 - Surety Bonding(a) A sole proprietor, partnership, corporation, or other legal entity engaged in the fitting and dispensing of hearing instruments shall file with the department security in a form provided by Subsection (b) in the amount of $10,000 and conditioned on the promise to pay all:(1) taxes and contributions owed to the state and political subdivisions of the state by the entity; and(2) judgments that the entity may be required to pay for: (A) negligently or improperly dispensing hearing instruments; or(B) breaching a contract relating to the dispensing of hearing instruments.(b) The security may be a bond, a cash deposit, or another negotiable security acceptable to the department.(c) A bond required by this section remains in effect until canceled by action of the surety, the principal, or the department. A person must take action on the bond not later than the third anniversary of the date the bond is canceled.Amended by Acts 2015, Texas Acts of the 84th Leg. - Regular Session, ch. 838,Sec. 1.122, eff. 9/1/2015. Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. 9/1/1999.