SB2077

The disqualifications now reach the candidate and relatives within the first degree by blood or marriage, rather than the second degree, and no longer separately include everyone living in the same household. First-degree relationships include a parent or child, spouse and first-degree in-laws; second-degree blood relatives include siblings and grandparents. A relative or housemate’s connection outside the new scope does not itself trigger this provision, though the candidate’s own prohibited connection still can. Final law, 2054.052(b); Degrees by blood; Degrees by marriage.

Instead of disqualifying anyone registered, licensed or required to be licensed under the Insurance Code, the licensing clause now covers a licensed insurance agent. Employment, service, ownership, financial-interest and management restrictions focus on an insurer writing workers’ compensation insurance in Texas or an affiliate of such an insurer. The service restriction expressly includes an employee, officer, director, consultant or someone serving in any other capacity. Previously those provisions broadly covered persons or organizations registered, licensed or required to be licensed under the Insurance Code. Final law; Previous qualifications and retained safeguards.

The law retains disqualification for receiving a substantial tangible benefit from Texas Mutual or the insurance department, and for being an officer, employee or consultant of an insurance association, now within the narrower family scope. Unchanged provisions require Texas residency, preserve the exception for someone who is only an insurance policyholder or consumer, and require a one-year wait after a disqualifying condition ends. The bill does not remove all conflict rules. Final law; Previous qualifications and retained safeguards.

A director serving immediately before the effective date remains entitled to finish that term. The act does not appoint anyone or change the nine-member board’s selection split: five gubernatorial appointees subject to Senate consent, with the others elected by policyholders. Final law, section 2; Board composition.

Changes during passage: The Senate committee substitute narrowed the direct-insurer part of the service and financial-interest restrictions to insurers writing workers’ compensation in Texas, retained coverage of affiliates of those insurers, and added the protection for sitting members’ remaining terms. The introduced wording referred more broadly to “an insurer” before its affiliate clause. The substitute also cleaned up the agent clause and drafting format. The substitute, Senate-passed, House-committee and final operative texts match. No floor amendments are listed in the official index. Introduced; Senate substitute; Senate-passed; House committee; Final law; Version index; Amendment index.

Compare the published text versions in the official text index. A change is not attributed to a specific amendment here without a verified record.

The narrower restrictions may enlarge the pool of candidates, including some with insurance-sector experience or more distant family connections previously disqualifying them. The tradeoff is a smaller statutory conflict screen, not a guarantee of better governance or permission for every insurance professional to serve. The bill does not change workers’ compensation benefits, premium rates or claim eligibility. Final law.

The April 3 substitute fiscal note anticipates no significant state fiscal impact, assumes costs can be absorbed within existing resources, and anticipates no local fiscal impact. The March 29 introduced note reaches the same conclusions. Neither quantifies company savings or premium reductions; the act makes no appropriation. Substitute fiscal note; Introduced fiscal note.