Texas Senate Bill SB2433

Texas 2025 - 89th Regular

• Filed: 3/13/25

Caption

Relating to negotiated rulemaking by the commissioner of insurance.

Impact

If enacted, SB2433 will necessitate a significant shift in how regulatory rules are adopted within the insurance sector. The bill mandates that the commissioner of insurance develop a policy focused on utilizing these negotiated rulemaking procedures by January 1, 2026, affecting the timeline and methodology traditionally employed for rule adoption. This transition is anticipated to foster a more participatory regulatory environment, potentially leading to more balanced and well-informed regulations.

Summary

SB2433, also known as the Act relating to negotiated rulemaking by the commissioner of insurance, aims to enhance the efficiency of the rulemaking process within the Texas Department of Insurance. The bill requires the implementation of negotiated rulemaking procedures, which involve collaborative discussions among stakeholders prior to the establishment of regulations. This is intended to ensure that rules are not only effective but also take into account various perspectives from the insurance community and beyond.

Contention

There may be points of contention regarding the effectiveness of negotiated rulemaking versus traditional methods. Supporters argue that involving diverse stakeholders in the rulemaking process will yield regulations that are more practical and acceptable to the broader community. On the other hand, critics may express concerns about the potential for delays in rule adoption or the risk of stakeholder bias skewing the regulatory outcomes in favor of certain interests over the public good. Overall, the successful implementation of SB2433 will depend on careful planning and thorough engagement with interested parties.

Texas Constitutional Statutes Affected

Insurance Code

• Chapter 36. Department Rules And Procedures
  • Section: New Section