S.B. No. 495 amends the Texas Insurance Code to clarify the authority of the Texas Department of Insurance regarding the adoption of rules based on environmental, social, and governance (ESG) models, ratings, or standards. The bill introduces new definitions for "environmental assessment," "social assessment," and "governance assessment," which outline the criteria for evaluating entities in relation to climate change, corporate governance, and social impacts. It specifies that the commissioner cannot require insurers to comply with any ESG-related rules unless such compliance is expressly authorized by statute.

Additionally, the bill prohibits the adoption or enforcement of rules that are based on ESG assessments if they may adversely affect the state's economy, productivity, employment, or public health and safety. It also allows individuals to challenge the adoption of such rules through a declaratory judgment if they believe the rules were adopted in violation of the new provisions. The changes will take effect on September 1, 2025, and apply only to proposed rules filed after that date.

Statutes affected:
Introduced: Insurance Code 36.004 (Insurance Code 36)
Senate Committee Report: Insurance Code 36.004 (Insurance Code 36)
Engrossed: Insurance Code 36.004 (Insurance Code 36)
House Committee Report: Insurance Code 36.004 (Insurance Code 36)