Texas 2025 - 89th Regular

Texas Senate Bill SB1642 Compare Versions

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	1	+	89R16185 RDS-D
1	2		By: Schwertner S.B. No. 1642
2		-	(In the Senate - Filed February 25, 2025; March 11, 2025,
3		-	read first time and referred to Committee on Business & Commerce;
4		-	April 14, 2025, reported adversely, with favorable Committee
5		-	Substitute by the following vote: Yeas 10, Nays 0; April 14, 2025,
6		-	sent to printer.)
7		-	Click here to see the committee vote
8		-	COMMITTEE SUBSTITUTE FOR S.B. No. 1642 By: Schwertner
9	3
10	4
11	5
12	6
13	7		A BILL TO BE ENTITLED
14	8		AN ACT
15		-	relating to the administration of the Texas Department of
16		-	Insurance, including the appointment of the state commission of
17		-	insurance.
	9	+	relating to the composition of, appointment of, and qualifications
	10	+	for the state commission of insurance.
18	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
19	12		SECTION 1. Section 31.001(1), Insurance Code, is amended to
20	13		read as follows:
21	14		(1) "Commission" ["Commissioner"] means the state
22	15		commission [commissioner] of insurance.
23	16		SECTION 2. Section 31.007, Insurance Code, is amended to
24	17		read as follows:
25	18		Sec. 31.007. REFERENCES TO BOARD OR COMMISSIONER. A
26	19		reference in this code or other law to the former State Board of
27	20		Insurance, the Board of Insurance Commissioners, [or] an individual
28	21		commissioner, or the commissioner of insurance means the commission
29	22		[commissioner] or the department as consistent with the respective
30	23		duties of the commission [commissioner] and the department under
31	24		this code and other insurance laws.
32	25		SECTION 3. The heading to Subchapter B, Chapter 31,
33	26		Insurance Code, is amended to read as follows:
34	27		SUBCHAPTER B. STATE COMMISSION [COMMISSIONER] OF INSURANCE
35	28		SECTION 4. Section 31.021, Insurance Code, is amended to
36	29		read as follows:
37	30		Sec. 31.021. GOVERNING BODY [CHIEF EXECUTIVE]. (a) The
38	31		commission [commissioner] is the department's governing body
39	32		[chief executive and administrative officer]. The commission
40	33		[commissioner] shall administer and enforce this code, other
41	34		insurance laws of this state, and other laws granting jurisdiction
42	35		or applicable to the department or the commission [commissioner].
43	36		(b) The commission [commissioner] has the powers and duties
44	37		vested in the department by:
45	38		(1) this code and other insurance laws of this state;
46	39		and
47	40		(2) Title 5, Labor Code, and other workers'
48	41		compensation insurance laws of this state.
49	42		SECTION 5. Section 31.022, Insurance Code, is amended to
50	43		read as follows:
51	44		Sec. 31.022. APPOINTMENT; TERM; PRESIDING OFFICER.
52	45		(a) The governor, with the advice and consent of the senate, shall
53	46		appoint three members to serve on the commission serving staggered
54	47		terms of six years [the commissioner. The commissioner serves a
55	48		two-year term that expires on February 1 of each odd-numbered
56	49		year].
57	50		(b) In appointing members to serve on the commission, the
58	51		governor shall appoint:
59	52		(1) one member with expertise in insurance regulation;
60	53		(2) one member with expertise in insurance
61	54		administration; and
62	55		(3) one member with expertise in insurance consumer
63	56		advocacy.
64	57		(c) The governor shall designate one member of the
65	58		commission as the presiding officer. The presiding officer:
66	59		(1) serves at the pleasure of the governor;
67	60		(2) serves for a two-year term that expires February 1
68	61		of each odd-numbered year; and
69	62		(3) is ineligible to be designated as presiding
70	63		officer more than once during a six-year period.
71	64		(d) The governor shall appoint a member of the commission
72	65		[the commissioner] without regard to the race, color, disability,
73	66		sex, religion, age, or national origin of the appointee.
74	67		SECTION 6. Section 31.023, Insurance Code, is amended to
75	68		read as follows:
76	69		Sec. 31.023. QUALIFICATIONS. A member of the commission
77	70		[The commissioner] must:
78	71		(1) be a competent and experienced administrator;
79	72		(2) be well informed and qualified in the field of
80	73		insurance and insurance regulation; [and]
81	74		(3) be well informed and qualified in consumer
82	75		advocacy;
83	76		(4) have at least five years of experience in the
84	77		administration of business or government or as a practicing
85	78		attorney, [or] certified public accountant, physician, dentist,
86	79		chiropractor, podiatrist, or health care administrator or business
87	80		owner; and
88	81		(5) be a resident of this state.
89	82		SECTION 7. Section 31.024, Insurance Code, is amended to
90	83		read as follows:
91	84		Sec. 31.024. INELIGIBILITY FOR PUBLIC OFFICE. A member of
92	85		the commission [The commissioner] is ineligible to be a candidate
93	86		for another [a] public elective office in this state, unless the
94	87		member [commissioner] has resigned and the governor has accepted
95	88		the resignation.
96	89		SECTION 8. Section 31.027, Insurance Code, is amended to
97	90		read as follows:
98	91		Sec. 31.027. GROUNDS FOR REMOVAL. (a) It is a ground for
99	92		removal from office if a member of the commission [the
100	93		commissioner]:
101	94		(1) does not have at the time of appointment the
102	95		qualifications required by Section 31.023;
103	96		(2) does not maintain during service as member
104	97		[commissioner] the qualifications required by Section 31.023;
105	98		(3) violates a prohibition established by Section
106	99		33.001, 33.003, 33.004, or 33.005; or
107	100		(4) cannot, because of illness or disability,
108	101		discharge the member's [commissioner's] duties for a substantial
109	102		part of the member's [commissioner's] term.
110	103		(b) The validity of an action of the commission
111	104		[commissioner] or the department is not affected by the fact that it
112	105		is taken when a ground for removal of a member of the commission
113	106		[commissioner] exists.
114		-	SECTION 9. Subchapter C, Chapter 31, Insurance Code, is
115		-	amended by adding Section 31.040 to read as follows:
116		-	Sec. 31.040. DEFINITION. In this subchapter, "executive
117		-	director" means the department's executive director employed under
118		-	Section 31.041.
119		-	SECTION 10. Section 31.041, Insurance Code, is amended to
120		-	read as follows:
121		-	Sec. 31.041. EXECUTIVE DIRECTOR; DEPARTMENT PERSONNEL.
122		-	(a) Subject to the General Appropriations Act or other law, the
123		-	commission [commissioner] shall employ:
124		-	(1) an executive director; and
125		-	(2) officers and employees the commission considers
126		-	[appoint deputies, assistants, and other personnel as] necessary to
127		-	carry out the powers and duties of the commission [commissioner]
128		-	and the department under this code, other insurance laws of this
129		-	state, and other laws granting jurisdiction or applicable to the
130		-	department or the commission [commissioner].
131		-	(b) A person employed [appointed] under this section must
132		-	have the professional, administrative, and insurance experience
133		-	necessary to qualify the person for the position to which the person
134		-	is employed [appointed].
135		-	[(c) A person appointed as an associate or deputy
136		-	commissioner or to hold an equivalent position must have at least
137		-	five years of the experience required for appointment as
138		-	commissioner under Section 31.023. At least two years of that
139		-	experience must be in work related to the position to be held.]
140		-	SECTION 11. Section 31.042, Insurance Code, is amended to
141		-	read as follows:
142		-	Sec. 31.042. DUTIES OF EXECUTIVE DIRECTOR; DIVISION OF
143		-	DEPARTMENT PERSONNEL RESPONSIBILITIES. (a) The executive director
144		-	is responsible for the daily operations of the department and shall
145		-	coordinate the activities of department officers and employees.
146		-	(b) The executive director [commissioner] shall develop and
147		-	implement policies that clearly define the respective
148		-	responsibilities of [the commissioner and the staff of the]
149		-	department officers and employees.
150		-	SECTION 12. Section 31.043(a), Insurance Code, is amended
151		-	to read as follows:
152		-	(a) The executive director [commissioner or the
153		-	commissioner's designee] shall prepare and maintain a written
154		-	policy statement to ensure implementation of a program of equal
155		-	employment opportunity under which all personnel transactions are
156		-	made without regard to race, color, disability, sex, religion, age,
157		-	or national origin. The policy statement must include:
158		-	(1) personnel policies, including policies relating
159		-	to recruitment, evaluation, selection, appointment, training, and
160		-	promotion of personnel that are in compliance with Chapter 21,
161		-	Labor Code;
162		-	(2) a comprehensive analysis of the department
163		-	workforce that meets federal and state guidelines;
164		-	(3) procedures by which a determination can be made of
165		-	significant underuse in the department workforce of all persons for
166		-	whom federal or state guidelines encourage a more equitable
167		-	balance; and
168		-	(4) reasonable methods to appropriately address those
169		-	areas of significant underuse.
170		-	SECTION 13. Section 31.044, Insurance Code, is amended to
171		-	read as follows:
172		-	Sec. 31.044. QUALIFICATIONS AND STANDARDS OF CONDUCT. The
173		-	executive director [commissioner] shall provide to the commission
174		-	and department officers and employees, as often as necessary,
175		-	information regarding their:
176		-	(1) qualification for office or employment under this
177		-	code; and
178		-	(2) responsibilities under applicable laws relating
179		-	to standards of conduct for state officers and employees.
180		-	SECTION 14. Section 31.045, Insurance Code, is amended to
181		-	read as follows:
182		-	Sec. 31.045. CAREER LADDER PROGRAM; PERFORMANCE
183		-	EVALUATIONS. (a) The executive director [commissioner or the
184		-	commissioner's designee] shall develop an intra-agency career
185		-	ladder program. The program must require intra-agency posting of
186		-	all nonentry level positions concurrently with any public posting.
187		-	(b) The executive director [commissioner or the
188		-	commissioner's designee] shall develop a system of annual
189		-	performance evaluations. All merit pay for department officers and
190		-	employees must be based on the system established under this
191		-	subsection.
192		-	SECTION 15. Sections 33.002(a) and (b), Insurance Code, are
	107	+	SECTION 9. Sections 33.002(a) and (b), Insurance Code, are
193	108		amended to read as follows:
194	109		(a) A person is not eligible for appointment as a member of
195	110		the commission [commissioner] if the person, the person's spouse,
196	111		or any other person who resides in the same household as the person:
197	112		(1) is registered, certified, or licensed by the
198	113		department;
199	114		(2) is employed by or participates in the management
200	115		of a business entity or other organization regulated by or
201	116		receiving funds from the department;
202	117		(3) owns or controls, directly or indirectly, more
203	118		than a 10 percent interest in a business entity or other
204	119		organization regulated by or receiving funds from the department;
205	120		or
206	121		(4) uses or receives a substantial amount of tangible
207	122		goods, services, or funds from the department, other than
208	123		compensation or reimbursement authorized by law.
209	124		(b) A person is not eligible for appointment as a member of
210	125		the commission [commissioner] if the person:
211	126		(1) is a stockholder, director, officer, attorney,
212	127		agent, or employee of an insurance company, insurance agent,
213	128		insurance broker, or insurance adjuster; or
214	129		(2) is directly or indirectly interested in a business
215	130		described by Subdivision (1).
216		-	SECTION 16. Sections 33.004(a) and (b), Insurance Code, are
	131	+	SECTION 10. Sections 33.004(a) and (b), Insurance Code, are
217	132		amended to read as follows:
218	133		(a) A person who is an officer, employee, or paid consultant
219	134		of a trade association in the field of insurance may not be:
220	135		(1) a member of the commission [commissioner]; or
221	136		(2) an employee of the department who is exempt from
222	137		the state's position classification plan or is compensated at or
223	138		above the amount prescribed by the General Appropriations Act for
224	139		step 1, salary group A17, of the position classification salary
225	140		schedule.
226	141		(b) A person who is the spouse of an officer, manager, or
227	142		paid consultant of a trade association in the field of insurance may
228	143		not be:
229	144		(1) a member of the commission [commissioner]; or
230	145		(2) an employee of the department who is exempt from
231	146		the state's position classification plan or is compensated at or
232	147		above the amount prescribed by the General Appropriations Act for
233	148		step 1, salary group A17, of the position classification salary
234	149		schedule.
235		-	SECTION 17. Not later than December 1, 2025, the governor
	150	+	SECTION 11. Not later than December 1, 2025, the governor
236	151		shall:
237	152		(1) appoint each initial member of the state
238	153		commission of insurance to serve staggered terms beginning January
239	154		1, 2026, with one of the members serving a two-year term, one of the
240	155		members serving a four-year term, and one of the members serving a
241	156		six-year term; and
242	157		(2) designate a member appointed under Subdivision (1)
243	158		of this section as the initial presiding officer of the state
244	159		commission of insurance.
245		-	SECTION 18. Until each member of the initial state
	160	+	SECTION 12. Until each member of the initial state
246	161		commission of insurance is appointed and confirmed by the senate in
247	162		the manner provided by Section 31.022, Insurance Code, as amended
248	163		by this Act, the commissioner of insurance serving on the effective
249	164		date of this Act shall, unless otherwise removed as provided by law,
250	165		continue in office under the prior law that governed the office, and
251	166		that prior law is continued in effect for that purpose. If on
252	167		January 1, 2026, there is a vacancy in the office of a member of the
253	168		state commission of insurance created under this Act because the
254	169		initial appointee has not been confirmed by the senate as provided
255	170		by Section 31.022, Insurance Code, as amended by this Act, has died,
256	171		or refuses or is permanently unable to serve, the commissioner
257	172		serving on that date shall, unless otherwise removed as provided by
258	173		law, continue in office under the prior law that governed the office
259	174		until the governor fills the vacancy by appointment in the manner
260	175		provided by Section 31.022, Insurance Code, as amended by this Act.
261	176		The prior law that governed the office of the commissioner of
262	177		insurance is continued in effect for that purpose.
263		-	SECTION 19. This Act takes effect September 1, 2025.
264		-	* * * * *
	178	+	SECTION 13. This Act takes effect September 1, 2025.