Texas 2021 - 87th Regular

Texas Senate Bill SB918 Latest Draft

Bill / Enrolled Version Filed 05/24/2021

                            S.B. No. 918


 AN ACT
 relating to the size, terms, and election of boards of directors of
 certain insurance companies.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Section 822.152(b), Insurance Code, is amended
 to read as follows:
 (b)  The board consists of not fewer than five [seven]
 directors. A director:
 (1)  is not required to be a shareholder unless such a
 qualification is required by the articles of incorporation or
 bylaws of the company; and
 (2)  serves until the director's successor is elected
 and accepts the position.
 SECTION 2.  Section 822.153(b), Insurance Code, is amended
 to read as follows:
 (b)  The shareholders of an insurance company shall meet
 annually [before May 1 of each year] as provided by the company's
 bylaws to elect successor directors.
 SECTION 3.  Section 841.153(b), Insurance Code, is amended
 to read as follows:
 (b)  After the directors are first elected under this
 section, the annual meeting must be held [before May 1 of] each year
 as established by the company's bylaws. The directors serve
 one-year terms beginning immediately after the election, except as
 provided by Section 841.154.
 SECTION 4.  The heading to Section 841.154, Insurance Code,
 is amended to read as follows:
 Sec. 841.154.  STAGGERED TERMS FOR [LARGE BOARD OF]
 DIRECTORS.
 SECTION 5.  Section 841.154(a), Insurance Code, is repealed.
 SECTION 6.  The changes in law made by this Act apply only to
 the election of members of the board of directors of an insurance
 company who are elected on or after the effective date of this Act.
 The election of members of the board of directors of an insurance
 company who were elected before the effective date of this Act is
 governed by the law in effect when that election was held, and that
 law is continued in effect for that purpose.
 SECTION 7.  This Act takes effect September 1, 2021.
 ______________________________ ______________________________
 President of the Senate Speaker of the House
 I hereby certify that S.B. No. 918 passed the Senate on
 April 9, 2021, by the following vote:  Yeas 31, Nays 0.
 ______________________________
 Secretary of the Senate
 I hereby certify that S.B. No. 918 passed the House on
 May 23, 2021, by the following vote:  Yeas 145, Nays 0, one
 present not voting.
 ______________________________
 Chief Clerk of the House
 Approved:
 ______________________________
 Date
 ______________________________
 Governor