| 1 | 1 | | 88R14148 KBB-F |
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| 2 | 2 | | By: Harris of Williamson H.B. No. 5048 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to boycott, coercion, and intimidation activities by |
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| 8 | 8 | | insurance companies regarding environmental, social, and |
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| 9 | 9 | | governance matters. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 541.054, Insurance Code, is amended to |
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| 12 | 12 | | read as follows: |
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| 13 | 13 | | Sec. 541.054. BOYCOTT, COERCION, OR INTIMIDATION. (a) It |
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| 14 | 14 | | is an unfair method of competition or an unfair or deceptive act or |
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| 15 | 15 | | practice in the business of insurance to commit through concerted |
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| 16 | 16 | | action or to enter into an agreement to commit an act of boycott, |
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| 17 | 17 | | coercion, or intimidation that results in or tends to result in the |
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| 18 | 18 | | unreasonable restraint of or a monopoly in the business of |
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| 19 | 19 | | insurance. |
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| 20 | 20 | | (b) An act of boycott, coercion, or intimidation includes |
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| 21 | 21 | | refusing to deal with, terminating business activities with, or |
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| 22 | 22 | | otherwise taking any commercial action that is intended to |
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| 23 | 23 | | penalize, inflict economic harm on, limit commercial relations |
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| 24 | 24 | | with, or change or limit the activities of a company because the |
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| 25 | 25 | | company, without violating controlling federal or state law: |
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| 26 | 26 | | (1) engages in the exploration, production, |
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| 27 | 27 | | utilization, transportation, sale, or manufacturing of fossil |
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| 28 | 28 | | fuel-based energy, timber, mining, or agriculture; |
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| 29 | 29 | | (2) engages in, facilitates, or supports the |
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| 30 | 30 | | manufacture, import, distribution, marketing or advertising, sale, |
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| 31 | 31 | | or lawful use of firearms, ammunition, or component parts and |
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| 32 | 32 | | accessories of firearms or ammunition; |
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| 33 | 33 | | (3) contracts with the United States Immigration and |
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| 34 | 34 | | Customs Enforcement for the provision of federal immigration |
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| 35 | 35 | | detention centers or support services related to the implementation |
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| 36 | 36 | | of federal immigration and border security laws, regulations, and |
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| 37 | 37 | | policies; |
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| 38 | 38 | | (4) does not meet, is not expected to meet, or does not |
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| 39 | 39 | | commit to meet environmental standards or disclosure criteria, in |
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| 40 | 40 | | particular to eliminate, reduce, offset, or disclose greenhouse gas |
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| 41 | 41 | | emissions; or |
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| 42 | 42 | | (5) does not meet, is not expected to meet, or does not |
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| 43 | 43 | | commit to meet corporate board, employment, composition, |
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| 44 | 44 | | compensation, or disclosure criteria that incorporates |
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| 45 | 45 | | characteristics protected under Chapter 21, Labor Code. |
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| 46 | 46 | | (c) A method of competition, act, or practice in the |
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| 47 | 47 | | business of insurance may be determined to be an action to boycott, |
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| 48 | 48 | | coerce, or intimidate based on evidence indicating that purpose, |
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| 49 | 49 | | including: |
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| 50 | 50 | | (1) branding, advertising, statements, explanations, |
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| 51 | 51 | | reports, letters to clients, communications with portfolio |
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| 52 | 52 | | companies, statements of principles, or commitments; or |
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| 53 | 53 | | (2) participation in, affiliation with, or status as a |
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| 54 | 54 | | signatory to any coalition, initiative, joint statement of |
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| 55 | 55 | | principles, or agreement. |
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| 56 | 56 | | SECTION 2. This Act takes effect September 1, 2023. |
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