By McCall H.B. No. 2356
74R7044 PB-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to insurance coverage requirements on certain government
1-3 contracts.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 406.096, Labor Code, is amended to read
1-6 as follows:
1-7 Sec. 406.096. REQUIRED COVERAGE FOR CERTAIN BUILDING OR
1-8 CONSTRUCTION CONTRACTORS; INDEMNITY PROVISION. (a) A governmental
1-9 entity that enters into a building or construction contract shall
1-10 require the contractor to certify in writing that the contractor
1-11 provides either workers' compensation insurance coverage or
1-12 accident and disability insurance coverage for each employee of the
1-13 contractor employed on the public project.
1-14 (b) Each subcontractor on the public project shall provide
1-15 such a certificate relating to the insurance coverage of the
1-16 subcontractor's employees to the general contractor, who shall
1-17 provide the subcontractor's certificate to the governmental entity.
1-18 (c) A contractor who has a contract that requires <workers'
1-19 compensation> insurance coverage to satisfy the requirement imposed
1-20 under Subsection (a) may provide the coverage through a group plan
1-21 or other method satisfactory to the governing body of the
1-22 governmental entity.
1-23 (d) A governmental entity that enters into a contract
1-24 subject to this section shall include in the contract a provision
2-1 to indemnify and hold harmless the governmental entity for any
2-2 claim arising from an incident involving an employee of the
2-3 contractor. Performance of services under the contract does not
2-4 make an employee of the contractor an employee of the governmental
2-5 entity.
2-6 (e) The employment of a maintenance employee by an employer
2-7 who is not engaging in building or construction as the employer's
2-8 primary business does not constitute engaging in building or
2-9 construction.
2-10 (f) <(e)> In this section:
2-11 (1) "Building or construction" includes:
2-12 (A) erecting or preparing to erect a structure,
2-13 including a building, bridge, roadway, public utility facility, or
2-14 related appurtenance;
2-15 (B) remodeling, extending, repairing, or
2-16 demolishing a structure; or
2-17 (C) otherwise improving real property or an
2-18 appurtenance to real property through similar activities.
2-19 (2) "Governmental entity" means this state or a
2-20 political subdivision of this state. The term includes a
2-21 municipality.
2-22 SECTION 2. This Act takes effect September 1, 1995, and
2-23 applies only to a claim for worker's compensation benefits based on
2-24 a compensable injury that occurs on or after that date. A claim
2-25 based on a compensable injury that occurred before that date is
2-26 governed by the law in effect on the date that the compensable
2-27 injury occurred, and the former law is continued in effect for that
3-1 purpose.
3-2 SECTION 3. The importance of this legislation and the
3-3 crowded condition of the calendars in both houses create an
3-4 emergency and an imperative public necessity that the
3-5 constitutional rule requiring bills to be read on three several
3-6 days in each house be suspended, and this rule is hereby suspended.