S.B. No. 1642 proposes significant changes to the administration of the Texas Department of Insurance by restructuring the governing body from a single commissioner to a state commission of insurance. The bill amends various sections of the Insurance Code, including the definition of "Commission," which now refers to the state commission rather than a commissioner. It establishes that the governor will appoint three members to the commission, each serving staggered six-year terms, and specifies that these members must have expertise in insurance regulation, administration, and consumer advocacy. The bill also introduces a presiding officer role within the commission, who will serve a two-year term and can only be designated as such once every six years.

Additionally, the bill outlines the qualifications and standards for commission members, including a requirement for at least five years of relevant experience and residency in Texas. It sets forth grounds for removal from the commission and clarifies the duties of the newly appointed executive director, who will oversee daily operations and coordinate department activities. The bill also includes provisions to ensure equal employment opportunities within the department and establishes a career ladder program for internal promotions. The changes are set to take effect on September 1, 2025, with initial appointments to be made by December 1, 2025.

Statutes affected:
Introduced: Insurance Code 31.001, Insurance Code 31.007, Insurance Code 31.021, Insurance Code 31.022, Insurance Code 31.023, Insurance Code 31.024, Insurance Code 31.027, Insurance Code 33.002, Insurance Code 33.004 (Insurance Code 33, Insurance Code 31)
Senate Committee Report: Insurance Code 31.001, Insurance Code 31.007, Insurance Code 31.021, Insurance Code 31.022, Insurance Code 31.023, Insurance Code 31.024, Insurance Code 31.027, Insurance Code 31.041, Insurance Code 31.042, Insurance Code 31.043, Insurance Code 31.044, Insurance Code 31.045, Insurance Code 33.002, Insurance Code 33.004 (Insurance Code 33, Insurance Code 31)
Engrossed: Insurance Code 31.001, Insurance Code 31.007, Insurance Code 31.021, Insurance Code 31.022, Insurance Code 31.023, Insurance Code 31.024, Insurance Code 31.027, Insurance Code 31.041, Insurance Code 31.042, Insurance Code 31.043, Insurance Code 31.044, Insurance Code 31.045, Insurance Code 33.002, Insurance Code 33.004 (Insurance Code 33, Insurance Code 31)