S.B. No. 1450
 
 
 
 
AN ACT
  relating to the regulatory authority of the commissioner of
  insurance and the Texas Department of Insurance.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 36.004, Insurance Code, is amended to
  read as follows:
         Sec. 36.004.  COMPLIANCE WITH NATIONAL ASSOCIATION OF
  INSURANCE COMMISSIONERS REQUIREMENTS; RULES. (a)  Except as
  provided by Subsection (c) and Section 36.005, the department may
  not require an insurer to comply with a rule, regulation,
  directive, or standard adopted by the National Association of
  Insurance Commissioners, including a rule, regulation, directive,
  or standard relating to policy reserves, unless application of the
  rule, regulation, directive, or standard is expressly authorized by
  statute [and approved by the commissioner].
         (b)  For purposes of Subsection (a), a version of a rule,
  regulation, directive, or standard is expressly authorized by
  statute if:
               (1)  the statute explicitly authorizes the
  commissioner to adopt rules consistent with the rule, regulation,
  directive, or standard; or
               (2)  that version is the latest version of the rule,
  regulation, directive, or standard on the date that the statute was
  enacted.
         (c)  The commissioner may adopt a rule to require compliance
  with a rule, regulation, directive, or standard adopted by the
  National Association of Insurance Commissioners if:
               (1)  the commissioner finds the rule is technical or
  nonsubstantive in nature or necessary to preserve the department's
  accreditation; and
               (2)  before the adoption of the rule, the commissioner
  provides the standing committees of the senate and house of
  representatives with primary jurisdiction over the department with
  written notice of the commissioner's intent to adopt the rule.
         SECTION 2.  Subchapter A, Chapter 36, Insurance Code, is
  amended by adding Section 36.007 to read as follows:
         Sec. 36.007.  RULES RELATING TO AGREEMENTS LIMITING STATE
  AUTHORITY TO REGULATE INSURANCE PROHIBITED; EFFECT OF AGREEMENT.
  (a)  The commissioner may not adopt or enforce a rule that
  implements an interstate, national, or international agreement
  that:
               (1)  infringes on the authority of this state to
  regulate the business of insurance in this state; and
               (2)  was not approved by the legislature.
         (b)  An agreement described by Subsection (a) has no effect
  on the authority of this state to regulate the business of insurance
  in this state unless the agreement is approved by the legislature.
         SECTION 3.  Subchapter C, Chapter 551, Insurance Code, is
  amended by adding Section 551.1041 to read as follows:
         Sec. 551.1041.  RULEMAKING AUTHORITY RELATING TO NOTICE OF
  CANCELLATION OF CERTAIN PERSONAL AUTOMOBILE INSURANCE COVERAGES.  
  The commissioner shall exercise the commissioner's rulemaking
  authority to adopt rules under which an insurer that cancels a
  personal automobile insurance policy that provides comprehensive
  or collision physical damage coverage for an automobile that is
  subject to a purchase money lien is required to notify the
  lienholder, if known, that the coverage will be canceled.
         SECTION 4.  Section 36.004, Insurance Code, as amended by
  this Act, applies only to a rule adopted or amended on or after the
  effective date of this Act. A rule adopted before the effective
  date of this Act and not amended on or after that date is governed by
  the law applicable to the rule immediately before the effective
  date of this Act, and that law is continued in effect for that
  purpose.
         SECTION 5.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2017.
 
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1450 passed the Senate on
  May 4, 2017, by the following vote:  Yeas 31, Nays 0; May 26, 2017,
  Senate refused to concur in House amendments and requested
  appointment of Conference Committee; May 27, 2017, House granted
  request of the Senate; May 28, 2017, Senate adopted Conference
  Committee Report by the following vote:  Yeas 30, Nays 1.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1450 passed the House, with
  amendments, on May 24, 2017, by the following vote:  Yeas 141,
  Nays 4, one present not voting; May 27, 2017, House granted request
  of the Senate for appointment of Conference Committee;
  May 28, 2017, House adopted Conference Committee Report by the
  following vote:  Yeas 99, Nays 47, one present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
             Date
 
 
  ______________________________ 
            Governor