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A BILL TO BE ENTITLED
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AN ACT
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relating to the selection and retention of an insurance broker by |
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certain metropolitan rapid transit authorities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 451, Transportation Code, |
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is amended by adding Section 451.1025 to read as follows: |
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Sec. 451.1025. SELECTION AND RETENTION OF INSURANCE BROKER. |
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(a) This section applies only to an authority in which the |
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principal municipality has a population of less than 320,000. |
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(b) The board may select a licensed insurance agent for the |
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authority as the sole broker of record to obtain proposals and |
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coverages for insurance, including in areas of risk relating to |
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public official liability, property, casualty, workers' |
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compensation, and specific and aggregate stop-loss coverage |
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insurance for self-funded health care. |
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(c) The board may retain a broker of record selected under |
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this section only on a fee basis paid by the authority. A broker of |
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record retained under this section may not directly or indirectly |
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receive any other remuneration, compensation, or other form of |
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payment from any other source for the placement of insurance |
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business under the broker of record contract with the board. |
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(d) A broker of record retained under this section may not |
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submit any insurance carrier proposal to the board or direct any |
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authority insurance business to an insurance carrier if the broker |
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has a business relationship or proposed business relationship with |
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the carrier, including an appointment, unless the broker first |
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discloses the nature of that relationship or proposed relationship, |
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in writing, to the board. |
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(e) A broker who violates this section is subject to any |
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disciplinary remedy available under Chapter 82, Insurance Code, or |
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Section 4005.102, Insurance Code, including license revocation and |
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fine. |
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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, 2025. |