HB4575 - Relating to the selection and retention of an insurance broker by certain metropolitan rapid transit authorities.

  89R11551 SRA-F     By: Villalobos H.B. No. 4575       A BILL TO BE ENTITLED   AN ACT   relating to the selection and retention of an insurance broker by   certain metropolitan rapid transit authorities.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter C, Chapter 451, Transportation Code,   is amended by adding Section 451.1025 to read as follows:           Sec.   451.1025.     SELECTION AND RETENTION OF INSURANCE BROKER.   (a)   This section applies only to an authority in which the   principal municipality has a population of less than 320,000.           (b)     The board may select a licensed insurance agent for the   authority as the sole broker of record to obtain proposals and   coverages for insurance, including in areas of risk relating to   public official liability, property, casualty, workers'   compensation, and specific and aggregate stop-loss coverage   insurance for self-funded health care.           (c)     The board may retain a broker of record selected under   this section only on a fee basis paid by the authority.   A broker of   record retained under this section may not directly or indirectly   receive any other remuneration, compensation, or other form of   payment from any other source for the placement of insurance   business under the broker of record contract with the board.           (d)     A broker of record retained under this section may not   submit any insurance carrier proposal to the board or direct any   authority insurance business to an insurance carrier if the broker   has a business relationship or proposed business relationship with   the carrier, including an appointment, unless the broker first   discloses the nature of that relationship or proposed relationship,   in writing, to the board.           (e)     A broker who violates this section is subject to any   disciplinary remedy available under Chapter 82, Insurance Code, or   Section 4005.102, Insurance Code, including license revocation and   fine.          SECTION 2.  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, 2025.