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