Bill Text: TX SB163 | 2019-2020 | 86th Legislature | Introduced


Bill Title: Relating to required provision of workers' compensation insurance coverage for employees of building and construction contractors and subcontractors.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2018-11-12 - Filed [SB163 Detail]

Download: Texas-2019-SB163-Introduced.html
  86R1771 KKR-F
 
  By: Rodríguez S.B. No. 163
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to required provision of workers' compensation insurance
  coverage for employees of building and construction contractors and
  subcontractors.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The heading to Section 406.096, Labor Code, is
  amended to read as follows:
         Sec. 406.096.  REQUIRED PROVISION OF COVERAGE FOR EMPLOYEES
  OF [CERTAIN] BUILDING OR CONSTRUCTION CONTRACTORS AND
  SUBCONTRACTORS.
         SECTION 2.  Section 406.096, Labor Code, is amended by
  amending Subsections (a), (b), and (c) and adding Subsection (a-1)
  to read as follows:
         (a)  A contractor shall provide workers' compensation
  insurance coverage for each employee of the contractor. A
  subcontractor shall provide workers' compensation insurance
  coverage for each employee of the subcontractor.
         (a-1)  A governmental entity that enters into a building or
  construction contract shall require the contractor to:
               (1)  certify in writing that the contractor provides
  workers' compensation insurance coverage for each employee of the
  contractor employed on the public project; and
               (2)  if the contractor uses a subcontractor on the
  public project, provide a written certification, submitted by each
  subcontractor, that the subcontractor provides workers' 
  compensation insurance coverage for each employee of the
  subcontractor employed on the public project.
         (b)  Each subcontractor on a [the] public project shall
  provide the [such a] certificate described by Subsection (a-1)(2) 
  [relating to coverage of the subcontractor's employees] to the
  general contractor, who shall provide the subcontractor's
  certificate to the governmental entity.
         (c)  A contractor or subcontractor may provide [who has a
  contract that requires] workers' compensation insurance coverage
  [may provide the coverage] through a group plan or other method.  If
  the contractor enters into a contract with a governmental entity
  for a public project, the coverage provided by the contractor and,
  if applicable, by each subcontractor must be satisfactory to the
  governing body of the governmental entity.
         SECTION 3.  The change in law made by this Act applies only
  to a contract for building or construction that is entered into on
  or after the effective date of this Act. A contract entered into
  before the effective date of this Act is governed by the law in
  effect on the date the contract was entered into, and the former law
  is continued in effect for that purpose.
         SECTION 4.  This Act takes effect September 1, 2019.
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