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.