Requesting the lieutenant governor and speaker to create a joint interim committee to study the use of incorporation by reference in the Texas Insurance Code.
The bill emphasizes the potential constitutional implications of the incorporation by reference method in Texas law, particularly regarding the delegation of legislative authority. By investigating this practice, the bill aims to ensure that legislative powers remain in the hands of the Texas Legislature, thus questioning whether it is appropriate to rely on external model laws instead of enacting specific legislation for Texas. This could lead to fundamental changes in how certain insurance regulations are implemented in the state.
SCR26 is a concurrent resolution from the 86th Legislature of the State of Texas, proposed by Senator Taylor. The resolution calls for the creation of a joint interim committee to study the use of 'incorporation by reference' in the Texas Insurance Code. This procedural practice involves adopting noncontroversial technical changes by referencing model laws from the National Association of Insurance Commissioners (NAIC). The resolution assigns the responsibility of forming this committee to the lieutenant governor and the speaker of the house, requiring them to report their findings and recommendations to the next legislative session in January 2021.
Although the resolution does not denote any explicit points of contention, the underlying implications about the delegation of legislative authority could spark debate. Proponents might argue for the efficiency and modernization of legislative processes through alignment with established models, while opponents may raise concerns about the loss of state-specific regulations and control over local insurance practices. The outcome of this study could either reinforce the current use of incorporation by reference or prompt legislative changes, affecting how insurance laws are crafted and applied in Texas.