The bill, 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. It introduces new definitions for "environmental assessment," "social assessment," and "governance assessment," and specifies that the commissioner cannot require insurers to comply with any rules developed using ESG models unless such compliance is expressly authorized by statute. Additionally, the bill prohibits the adoption or enforcement of rules that may adversely affect the state's economy, productivity, employment, or public health and safety unless they are developed by recognized regulatory entities.

Furthermore, the bill allows individuals to file for a declaratory judgment if they believe a rule was adopted in violation of the new provisions. If a court finds that a rule was improperly adopted, it will be deemed invalid. The changes will apply only to proposed rules filed after the effective date of the Act, which is set for September 1, 2025.

Statutes affected:
Introduced: Insurance Code 36.004 (Insurance Code 36)