The bill, S.B. No. 1642, proposes significant changes to the structure and governance of the Texas state commission of insurance. It amends various sections of the Insurance Code to replace references to the "commissioner" with "commission," establishing a commission as the governing body instead of a single commissioner. The bill stipulates that the governor will appoint three members to the commission, each serving staggered six-year terms, and outlines specific qualifications for these members, including expertise in insurance regulation, administration, and consumer advocacy. Additionally, the governor will designate one member as the presiding officer, who will serve a two-year term and cannot be reappointed to that position more than once in a six-year period.

The bill also includes provisions regarding the ineligibility of commission members for public office, grounds for removal, and eligibility criteria for appointment. It specifies that members must be competent administrators with relevant experience and prohibits individuals with certain conflicts of interest from serving. The initial appointments to the commission are to be made by December 1, 2025, with staggered terms beginning January 1, 2026. The current commissioner will continue to serve under the previous law until the new commission is fully appointed and confirmed. The act is set to take effect on September 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)