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A BILL TO BE ENTITLED
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AN ACT
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Relating to the effect of the amendment of certain documents |
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incorporated by reference into the laws or policy of this state on |
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the Texas Department of Insurance. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sec. 36.004, Insurance Code, is amended by |
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adding subsection (c)(3) to read as follows: |
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Sec. 36.004. COMPLIANCE WITH NATIONAL ASSOCIATION OF |
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INSURANCE COMMISSIONERS REQUIREMENTS; RULES. (a) Except as |
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provided by Subsection (c) and Section 36.005, the department may |
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not require an insurer to comply with a rule, regulation, |
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directive, or standard adopted by the National Association of |
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Insurance Commissioners, including a rule, regulation, directive, |
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or standard relating to policy reserves, unless application of the |
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rule, regulation, directive, or standard is expressly authorized by |
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statute. |
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(b) For purposes of Subsection (a), a version of a rule, |
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regulation, directive, or standard is expressly authorized by |
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statute if: |
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(1) the statute explicitly authorizes the |
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commissioner to adopt rules consistent with the rule, regulation, |
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directive, or standard; or |
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(2) that version is the latest version of the rule, |
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regulation, directive, or standard on the date that the statute was |
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enacted. |
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(c) The commissioner may adopt a rule to require compliance |
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with a rule, regulation, directive, or standard adopted by the |
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National Association of Insurance Commissioners if: |
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(1) the commissioner finds the rule is technical or |
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nonsubstantive in nature or necessary to preserve the department's |
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accreditation; [and] |
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(2) before the adoption of the rule, the commissioner |
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provides the standing committees of the senate and house of |
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representatives with primary jurisdiction over the department with |
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written notice of the commissioner's intent to adopt the rule[.]; |
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and |
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(3) if a rule relates to environmental, social, or |
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governance matters, or is otherwise substantive in nature, the |
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commissioner shall enter into the formal rulemaking process. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2023. |