The bill, H.B. No. 3899, seeks to amend the Texas Insurance Code by granting the Texas Department of Insurance the authority to adopt rules related to environmental, social, and governance (ESG) models, ratings, or standards. Specifically, it modifies Section 36.004 by adding a new subsection (d) that defines terms related to environmental, social, and governance assessments and restricts the commissioner from requiring insurers to comply with any rules or standards developed using ESG models unless explicitly authorized by statute. Additionally, the bill introduces Section 36.008, which prohibits the adoption of rules based on ESG assessments that could adversely affect the state's economy, productivity, employment, or public health unless they meet specific criteria.

The new legal language emphasizes that any rule or standard developed by entities not regulated by the Texas Department of Insurance or the National Association of Insurance Commissioners cannot be enforced. It also allows individuals to challenge the adoption of such rules through a declaratory judgment if they believe the rules violate the provisions set forth in this bill. The changes will take effect on September 1, 2025, and will apply only to proposed rules filed after that date.

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