S.B. No. 2077
AN ACT
relating to the qualifications of members of the board of directors
of the Texas Mutual Insurance Company.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2054.052(b), Insurance Code, is amended
to read as follows:
(b) An individual may not serve as a board member if the
individual or[,] another individual related to the individual
within the first [second] degree by consanguinity or affinity[, or
another individual residing in the same household with the
individual]:
(1) is a [registered or] licensed insurance agent
[under this code or is required to be registered or licensed under
this code];
(2) serves as an employee, officer, director, or [is
employed by or acts as a] consultant or in any other capacity for an
insurer writing workers' compensation insurance in this state or an
affiliate of an insurer writing workers' compensation insurance in
this state [to a person registered or licensed under this code or
required to be registered or licensed under this code];
(3) owns, controls, has a financial interest in, or
participates in the management of an insurer writing workers'
compensation insurance in this state or an affiliate of an insurer
writing workers' compensation insurance in this state
[organization registered or licensed under this code or required to
be registered or licensed under this code];
(4) receives a substantial tangible benefit from the
company or the department; or
(5) is an officer, employee, or consultant of an
association in the field of insurance.
SECTION 2. Section 2054.052(b), Insurance Code, as amended
by this Act, does not affect the entitlement of a member serving on
the board of directors of the Texas Mutual Insurance Company
immediately before the effective date of this Act to continue to
serve for the remainder of the member's term.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 2077 passed the Senate on
April 16, 2025, by the following vote: Yeas 30, Nays 0, one
present not voting.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 2077 passed the House on
May 2, 2025, by the following vote: Yeas 122, Nays 0, one present
not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor