| 6 | 8 | | AN ACT |
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| 7 | 9 | | relating to the qualifications of members of the board of directors |
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| 8 | 10 | | of the Texas Mutual Insurance Company. |
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| 9 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 12 | | SECTION 1. Section 2054.052(b), Insurance Code, is amended |
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| 11 | 13 | | to read as follows: |
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| 12 | 14 | | (b) An individual may not serve as a board member if the |
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| 13 | 15 | | individual or[,] another individual related to the individual |
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| 14 | 16 | | within the first [second] degree by consanguinity or affinity[, or |
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| 15 | 17 | | another individual residing in the same household with the |
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| 16 | 18 | | individual]: |
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| 17 | 19 | | (1) is a [registered or] licensed insurance agent |
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| 18 | 20 | | [under this code or is required to be registered or licensed under |
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| 19 | 21 | | this code]; |
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| 20 | 22 | | (2) serves as an employee, officer, director, or [is |
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| 21 | 23 | | employed by or acts as a] consultant or in any other capacity for an |
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| 22 | 24 | | insurer writing workers' compensation insurance in this state or an |
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| 23 | 25 | | affiliate of an insurer writing workers' compensation insurance in |
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| 24 | 26 | | this state [to a person registered or licensed under this code or |
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| 25 | 27 | | required to be registered or licensed under this code]; |
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| 26 | 28 | | (3) owns, controls, has a financial interest in, or |
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| 27 | 29 | | participates in the management of an insurer writing workers' |
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| 28 | 30 | | compensation insurance in this state or an affiliate of an insurer |
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| 29 | 31 | | writing workers' compensation insurance in this state |
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| 30 | 32 | | [organization registered or licensed under this code or required to |
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| 31 | 33 | | be registered or licensed under this code]; |
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| 32 | 34 | | (4) receives a substantial tangible benefit from the |
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| 33 | 35 | | company or the department; or |
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| 34 | 36 | | (5) is an officer, employee, or consultant of an |
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| 35 | 37 | | association in the field of insurance. |
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| 36 | 38 | | SECTION 2. Section 2054.052(b), Insurance Code, as amended |
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| 37 | 39 | | by this Act, does not affect the entitlement of a member serving on |
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| 38 | 40 | | the board of directors of the Texas Mutual Insurance Company |
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| 39 | 41 | | immediately before the effective date of this Act to continue to |
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| 40 | 42 | | serve for the remainder of the member's term. |
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| 41 | 43 | | SECTION 3. This Act takes effect immediately if it receives |
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| 42 | 44 | | a vote of two-thirds of all the members elected to each house, as |
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| 43 | 45 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 44 | 46 | | Act does not receive the vote necessary for immediate effect, this |
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| 45 | 47 | | Act takes effect September 1, 2025. |
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| 46 | | - | ______________________________ ______________________________ |
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| 47 | | - | President of the Senate Speaker of the House |
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| 48 | | - | I hereby certify that S.B. No. 2077 passed the Senate on |
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| 49 | | - | April 16, 2025, by the following vote: Yeas 30, Nays 0, one |
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| 50 | | - | present not voting. |
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| 51 | | - | ______________________________ |
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| 52 | | - | Secretary of the Senate |
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| 53 | | - | I hereby certify that S.B. No. 2077 passed the House on |
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| 54 | | - | May 2, 2025, by the following vote: Yeas 122, Nays 0, one present |
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| 55 | | - | not voting. |
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| 56 | | - | ______________________________ |
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| 57 | | - | Chief Clerk of the House |
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| 58 | | - | Approved: |
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| 59 | | - | ______________________________ |
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| 60 | | - | Date |
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| 61 | | - | ______________________________ |
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| 62 | | - | Governor |
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