Bill > HB3899

This bill amends the Texas Insurance Code to restrict the Texas Department of Insurance (TDI) from adopting or enforcing rules based on environmental, social, and governance (ESG) models, ratings, or standards unless expressly authorized by statute. The bill defines key terms like "environmental assessment" (vulnerability to climate change), "social assessment" (focusing on human capital management, product safety, and social impacts), and "governance assessment" (examining corporate ethical principles and board structure). Under the new law, the TDI commissioner cannot require insurers to comply with rules developed using ESG models if those rules might adversely affect the state's economy, business productivity, employment levels, or residents' health and safety. The bill also allows any person to file a declaratory judgment action challenging a rule they believe was improperly adopted under these new restrictions. Specifically, rules cannot be from entities not licensed or regulated by the department, the National Association of Insurance Commissioners, or other government regulatory bodies, and must be specifically authorized by statute. The changes will apply to proposed rules filed with the secretary of state on or after September 1, 2025, effectively creating a new legal framework for evaluating and potentially limiting ESG-related insurance regulations in Texas.

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https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB3899