| 1 | 1 | | 89R11551 SRA-F |
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| 2 | 2 | | By: Villalobos H.B. No. 4575 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the selection and retention of an insurance broker by |
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| 10 | 10 | | certain metropolitan rapid transit authorities. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Subchapter C, Chapter 451, Transportation Code, |
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| 13 | 13 | | is amended by adding Section 451.1025 to read as follows: |
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| 14 | 14 | | Sec. 451.1025. SELECTION AND RETENTION OF INSURANCE BROKER. |
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| 15 | 15 | | (a) This section applies only to an authority in which the |
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| 16 | 16 | | principal municipality has a population of less than 320,000. |
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| 17 | 17 | | (b) The board may select a licensed insurance agent for the |
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| 18 | 18 | | authority as the sole broker of record to obtain proposals and |
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| 19 | 19 | | coverages for insurance, including in areas of risk relating to |
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| 20 | 20 | | public official liability, property, casualty, workers' |
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| 21 | 21 | | compensation, and specific and aggregate stop-loss coverage |
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| 22 | 22 | | insurance for self-funded health care. |
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| 23 | 23 | | (c) The board may retain a broker of record selected under |
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| 24 | 24 | | this section only on a fee basis paid by the authority. A broker of |
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| 25 | 25 | | record retained under this section may not directly or indirectly |
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| 26 | 26 | | receive any other remuneration, compensation, or other form of |
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| 27 | 27 | | payment from any other source for the placement of insurance |
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| 28 | 28 | | business under the broker of record contract with the board. |
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| 29 | 29 | | (d) A broker of record retained under this section may not |
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| 30 | 30 | | submit any insurance carrier proposal to the board or direct any |
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| 31 | 31 | | authority insurance business to an insurance carrier if the broker |
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| 32 | 32 | | has a business relationship or proposed business relationship with |
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| 33 | 33 | | the carrier, including an appointment, unless the broker first |
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| 34 | 34 | | discloses the nature of that relationship or proposed relationship, |
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| 35 | 35 | | in writing, to the board. |
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| 36 | 36 | | (e) A broker who violates this section is subject to any |
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| 37 | 37 | | disciplinary remedy available under Chapter 82, Insurance Code, or |
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| 38 | 38 | | Section 4005.102, Insurance Code, including license revocation and |
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| 39 | 39 | | fine. |
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| 40 | 40 | | SECTION 2. This Act takes effect immediately if it receives |
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| 41 | 41 | | a vote of two-thirds of all the members elected to each house, as |
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| 42 | 42 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 43 | 43 | | Act does not receive the vote necessary for immediate effect, this |
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| 44 | 44 | | Act takes effect September 1, 2025. |
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