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