Texas passed captive insurance legislation in June 2013. Senate Bill 734 authorized the creation of pure captive insurance companies, which can only insure risks of their parents, affiliates, and controlled unaffiliated business. The Texas law requires owners to have significant operations in the state before forming or moving a captive there. The bill was backed by large employers with captives in other domiciles that hope to transfer them to Texas. More recently, lawmakers approved measures that, among other things, allow Texas captives to reinsure directly with nonaffiliated, nonadmitted reinsurers. Other recent amendments allow a Texas captive to be formed as a reciprocal insurance exchange.