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A BILL TO BE ENTITLED
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AN ACT
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relating to boycott, coercion, and intimidation activities by |
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insurance companies regarding environmental, social, and |
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governance matters. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 541.054, Insurance Code, is amended to |
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read as follows: |
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Sec. 541.054. BOYCOTT, COERCION, OR INTIMIDATION. (a) It |
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is an unfair method of competition or an unfair or deceptive act or |
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practice in the business of insurance to commit through concerted |
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action or to enter into an agreement to commit an act of boycott, |
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coercion, or intimidation that results in or tends to result in the |
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unreasonable restraint of or a monopoly in the business of |
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insurance. |
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(b) An act of boycott, coercion, or intimidation includes |
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refusing to deal with, terminating business activities with, or |
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otherwise taking any commercial action that is intended to |
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penalize, inflict economic harm on, limit commercial relations |
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with, or change or limit the activities of a company because the |
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company, without violating controlling federal or state law: |
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(1) engages in the exploration, production, |
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utilization, transportation, sale, or manufacturing of fossil |
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fuel-based energy, timber, mining, or agriculture; |
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(2) engages in, facilitates, or supports the |
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manufacture, import, distribution, marketing or advertising, sale, |
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or lawful use of firearms, ammunition, or component parts and |
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accessories of firearms or ammunition; |
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(3) contracts with the United States Immigration and |
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Customs Enforcement for the provision of federal immigration |
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detention centers or support services related to the implementation |
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of federal immigration and border security laws, regulations, and |
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policies; |
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(4) does not meet, is not expected to meet, or does not |
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commit to meet environmental standards or disclosure criteria, in |
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particular to eliminate, reduce, offset, or disclose greenhouse gas |
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emissions; or |
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(5) does not meet, is not expected to meet, or does not |
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commit to meet corporate board, employment, composition, |
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compensation, or disclosure criteria that incorporates |
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characteristics protected under Chapter 21, Labor Code. |
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(c) A method of competition, act, or practice in the |
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business of insurance may be determined to be an action to boycott, |
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coerce, or intimidate based on evidence indicating that purpose, |
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including: |
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(1) branding, advertising, statements, explanations, |
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reports, letters to clients, communications with portfolio |
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companies, statements of principles, or commitments; or |
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(2) participation in, affiliation with, or status as a |
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signatory to any coalition, initiative, joint statement of |
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principles, or agreement. |
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SECTION 2. This Act takes effect September 1, 2023. |