Texas House Bill HB3734

Texas 2017 - 85th Regular

Caption

Relating to the rulemaking authority of the commissioner of insurance with respect to certain agreements and the effect of those agreements on this state's authority to regulate insurance.

Impact

The legislation would significantly impact how insurance is regulated in Texas, reinforcing the principle that state legislature approval is necessary for any agreements that could limit state regulatory authority. This could lead to more robust state control over the insurance sector and ensure that any agreements made at higher levels do not infringe upon the interests or regulatory approaches established by the state legislature. It aims to protect the state's prerogative to regulate the business of insurance independently of outside frameworks.

Summary

House Bill 3734 seeks to clarify and restrict the rulemaking authority of the commissioner of insurance regarding interstate, national, or international agreements that could affect the state's authority to regulate insurance. Specifically, the bill prohibits the commissioner from adopting or enforcing any rules based on agreements that have not been approved by the Texas legislature. This measure aims to maintain the state's control over its insurance regulations and prevent any external influences from undermining state authority.

Contention

While the bill is positioned as a protective measure for state authority, it may have implications for collaboration with other states and compliance with broader regulatory standards. Critics may argue that imposing such limitations could hinder Texas' adaptability to national or international insurance standards that could benefit the state's consumers and insurance providers. The need for legislative approval for agreements may also slow down the response time in adopting necessary regulatory changes, potentially affecting the competitiveness of Texas' insurance market.