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A BILL TO BE ENTITLED
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AN ACT
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relating to the composition of, appointment of, and qualifications |
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for the state commission of insurance. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 31.001(1), Insurance Code, is amended to |
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read as follows: |
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(1) "Commission" ["Commissioner"] means the state |
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commission [commissioner] of insurance. |
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SECTION 2. Section 31.007, Insurance Code, is amended to |
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read as follows: |
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Sec. 31.007. REFERENCES TO BOARD OR COMMISSIONER. A |
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reference in this code or other law to the former State Board of |
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Insurance, the Board of Insurance Commissioners, [or] an individual |
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commissioner, or the commissioner of insurance means the commission |
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[commissioner] or the department as consistent with the respective |
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duties of the commission [commissioner] and the department under |
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this code and other insurance laws. |
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SECTION 3. The heading to Subchapter B, Chapter 31, |
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Insurance Code, is amended to read as follows: |
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SUBCHAPTER B. STATE COMMISSION [COMMISSIONER] OF INSURANCE |
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SECTION 4. Section 31.021, Insurance Code, is amended to |
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read as follows: |
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Sec. 31.021. GOVERNING BODY [CHIEF EXECUTIVE]. (a) The |
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commission [commissioner] is the department's governing body |
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[chief executive and administrative officer]. The commission |
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[commissioner] shall administer and enforce this code, other |
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insurance laws of this state, and other laws granting jurisdiction |
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or applicable to the department or the commission [commissioner]. |
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(b) The commission [commissioner] has the powers and duties |
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vested in the department by: |
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(1) this code and other insurance laws of this state; |
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and |
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(2) Title 5, Labor Code, and other workers' |
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compensation insurance laws of this state. |
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SECTION 5. Section 31.022, Insurance Code, is amended to |
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read as follows: |
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Sec. 31.022. APPOINTMENT; TERM; PRESIDING OFFICER. |
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(a) The governor, with the advice and consent of the senate, shall |
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appoint three members to serve on the commission serving staggered |
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terms of six years [the commissioner. The commissioner serves a |
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two-year term that expires on February 1 of each odd-numbered |
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year]. |
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(b) In appointing members to serve on the commission, the |
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governor shall appoint: |
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(1) one member with expertise in insurance regulation; |
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(2) one member with expertise in insurance |
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administration; and |
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(3) one member with expertise in insurance consumer |
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advocacy. |
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(c) The governor shall designate one member of the |
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commission as the presiding officer. The presiding officer: |
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(1) serves at the pleasure of the governor; |
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(2) serves for a two-year term that expires February 1 |
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of each odd-numbered year; and |
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(3) is ineligible to be designated as presiding |
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officer more than once during a six-year period. |
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(d) The governor shall appoint a member of the commission |
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[the commissioner] without regard to the race, color, disability, |
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sex, religion, age, or national origin of the appointee. |
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SECTION 6. Section 31.023, Insurance Code, is amended to |
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read as follows: |
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Sec. 31.023. QUALIFICATIONS. A member of the commission |
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[The commissioner] must: |
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(1) be a competent and experienced administrator; |
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(2) be well informed and qualified in the field of |
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insurance and insurance regulation; [and] |
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(3) be well informed and qualified in consumer |
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advocacy; |
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(4) have at least five years of experience in the |
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administration of business or government or as a practicing |
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attorney, [or] certified public accountant, physician, dentist, |
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chiropractor, podiatrist, or health care administrator or business |
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owner; and |
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(5) be a resident of this state. |
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SECTION 7. Section 31.024, Insurance Code, is amended to |
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read as follows: |
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Sec. 31.024. INELIGIBILITY FOR PUBLIC OFFICE. A member of |
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the commission [The commissioner] is ineligible to be a candidate |
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for another [a] public elective office in this state, unless the |
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member [commissioner] has resigned and the governor has accepted |
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the resignation. |
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SECTION 8. Section 31.027, Insurance Code, is amended to |
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read as follows: |
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Sec. 31.027. GROUNDS FOR REMOVAL. (a) It is a ground for |
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removal from office if a member of the commission [the |
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commissioner]: |
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(1) does not have at the time of appointment the |
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qualifications required by Section 31.023; |
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(2) does not maintain during service as member |
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[commissioner] the qualifications required by Section 31.023; |
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(3) violates a prohibition established by Section |
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33.001, 33.003, 33.004, or 33.005; or |
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(4) cannot, because of illness or disability, |
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discharge the member's [commissioner's] duties for a substantial |
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part of the member's [commissioner's] term. |
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(b) The validity of an action of the commission |
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[commissioner] or the department is not affected by the fact that it |
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is taken when a ground for removal of a member of the commission |
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[commissioner] exists. |
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SECTION 9. Sections 33.002(a) and (b), Insurance Code, are |
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amended to read as follows: |
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(a) A person is not eligible for appointment as a member of |
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the commission [commissioner] if the person, the person's spouse, |
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or any other person who resides in the same household as the person: |
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(1) is registered, certified, or licensed by the |
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department; |
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(2) is employed by or participates in the management |
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of a business entity or other organization regulated by or |
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receiving funds from the department; |
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(3) owns or controls, directly or indirectly, more |
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than a 10 percent interest in a business entity or other |
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organization regulated by or receiving funds from the department; |
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or |
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(4) uses or receives a substantial amount of tangible |
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goods, services, or funds from the department, other than |
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compensation or reimbursement authorized by law. |
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(b) A person is not eligible for appointment as a member of |
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the commission [commissioner] if the person: |
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(1) is a stockholder, director, officer, attorney, |
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agent, or employee of an insurance company, insurance agent, |
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insurance broker, or insurance adjuster; or |
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(2) is directly or indirectly interested in a business |
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described by Subdivision (1). |
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SECTION 10. Sections 33.004(a) and (b), Insurance Code, are |
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amended to read as follows: |
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(a) A person who is an officer, employee, or paid consultant |
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of a trade association in the field of insurance may not be: |
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(1) a member of the commission [commissioner]; or |
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(2) an employee of the department who is exempt from |
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the state's position classification plan or is compensated at or |
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above the amount prescribed by the General Appropriations Act for |
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step 1, salary group A17, of the position classification salary |
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schedule. |
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(b) A person who is the spouse of an officer, manager, or |
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paid consultant of a trade association in the field of insurance may |
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not be: |
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(1) a member of the commission [commissioner]; or |
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(2) an employee of the department who is exempt from |
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the state's position classification plan or is compensated at or |
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above the amount prescribed by the General Appropriations Act for |
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step 1, salary group A17, of the position classification salary |
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schedule. |
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SECTION 11. Not later than December 1, 2025, the governor |
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shall: |
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(1) appoint each initial member of the state |
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commission of insurance to serve staggered terms beginning January |
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1, 2026, with one of the members serving a two-year term, one of the |
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members serving a four-year term, and one of the members serving a |
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six-year term; and |
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(2) designate a member appointed under Subdivision (1) |
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of this section as the initial presiding officer of the state |
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commission of insurance. |
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SECTION 12. Until each member of the initial state |
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commission of insurance is appointed and confirmed by the senate in |
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the manner provided by Section 31.022, Insurance Code, as amended |
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by this Act, the commissioner of insurance serving on the effective |
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date of this Act shall, unless otherwise removed as provided by law, |
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continue in office under the prior law that governed the office, and |
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that prior law is continued in effect for that purpose. If on |
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January 1, 2026, there is a vacancy in the office of a member of the |
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state commission of insurance created under this Act because the |
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initial appointee has not been confirmed by the senate as provided |
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by Section 31.022, Insurance Code, as amended by this Act, has died, |
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or refuses or is permanently unable to serve, the commissioner |
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serving on that date shall, unless otherwise removed as provided by |
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law, continue in office under the prior law that governed the office |
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until the governor fills the vacancy by appointment in the manner |
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provided by Section 31.022, Insurance Code, as amended by this Act. |
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The prior law that governed the office of the commissioner of |
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insurance is continued in effect for that purpose. |
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SECTION 13. This Act takes effect September 1, 2025. |