Bill not drafted by TLC or Senate E&E.
Line and page numbers may not match official copy.
By Brimer H.B. No. 3024
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to workers' compensation insurance coverage under certain
1-3 agreements.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 406, Labor Code, is amended by adding
1-6 Subchapter I to read as follows:
1-7 SUBCHAPTER I. COVERAGE OF CERTAIN OWNERS, CONTRACTORS,
1-8 AND THEIR EMPLOYEES
1-9 Sec. 406.181. DEFINITIONS. (a) In this subchapter:
1-10 (1) "Contractor" means a person who contracts to
1-11 perform work for another. The term includes a general contractor,
1-12 subcontractor, or independent contractor.
1-13 (2) "Principal" means a person who:
1-14 (A) undertakes work for himself or herself or
1-15 contracts to perform work for another; and
1-16 (B) enters into an agreement with a contractor
1-17 for execution by or under the contractor of all or any part of the
1-18 work.
1-19 (3) "Worker" means an individual who performs work for
1-20 a principal, but who is not a direct employee of the principal.
1-21 The term includes a contractor who is an individual.
1-22 (b) For purposes of this subchapter:
1-23 (1) a principal may include an owner or lessor of real
1-24 property; and
2-1 (2) a worker may have more than one principal for the
2-2 same work.
2-3 Sec. 406.182. ELECTION BY PRINCIPAL TO OBTAIN COVERAGE. (a)
2-4 A principal may elect to obtain workers' compensation insurance
2-5 coverage for a contractor or a worker employed by a contractor for
2-6 the period during which the contractor or worker performs the work
2-7 of the principal.
2-8 (b) A principal must make the election:
2-9 (1) in a written agreement with the contractor; or
2-10 (2) by a written notice filed with the commission.
2-11 (c) A principal may obtain workers' compensation insurance
2-12 coverage in the manner authorized under Section 406.003 or by
2-13 entering into a written agreement with another person under which
2-14 the other person obtains the coverage. Notwithstanding Section
2-15 415.006, if the contractor agrees in writing, the principal may
2-16 deduct all or part of the principal's cost of the coverage from the
2-17 contract price or other amount owed to the contractor by the
2-18 principal.
2-19 (d) If coverage is provided through an insurance company,
2-20 the principal and contractor shall provide to their respective
2-21 workers' compensation insurance companies written notice of an
2-22 agreement entered into under this section. If either the principal
2-23 or contractor has agreed to provide workers' compensation coverage
2-24 through self-insurance as provided by this subtitle, written notice
2-25 of the agreement shall be given to the commission not later than
2-26 the 10th day after the date the agreement is executed.
2-27 Sec. 406.183. PRINCIPAL'S LIABILITY. (a) If a principal
2-28 has elected to obtain workers' compensation insurance coverage for
2-29 a worker under Section 406.182, the principal's insurance carrier
2-30 for the coverage is liable for workers' compensation benefits if
3-1 the worker sustains a compensable injury in the course and scope of
3-2 the work performed by the worker for the principal.
3-3 (b) If the principal has elected to obtain coverage by
3-4 agreeing that another person will obtain the coverage, the
3-5 principal's insurance carrier is liable for benefits only to the
3-6 extent the other person or the other person's insurance carrier
3-7 fails to pay benefits to which the worker is entitled.
3-8 Sec. 406.184. PRINCIPAL'S AND CONTRACTOR'S IMMUNITY. (a)
3-9 Except as provided by Section 408.001(b), a recovery of workers'
3-10 compensation benefits under this subchapter is the exclusive remedy
3-11 of a worker or a worker's legal beneficiary against the principal
3-12 and the principal's employee for the death of or a work-related
3-13 injury sustained by the worker.
3-14 (b) Except as provided by Section 408.001(b), a recovery of
3-15 workers' compensation benefits under this subtitle is the exclusive
3-16 remedy of an employee of the principal or the employee's legal
3-17 beneficiary against a contractor or a contractor's employee for the
3-18 death of or a work-related injury sustained by the employee.
3-19 (c) This subchapter does not affect a direct employer's
3-20 status and immunity under Section 408.001 as an employer against
3-21 whom the recovery of workers' compensation benefits is the injured
3-22 employee's exclusive remedy.
3-23 SECTION 2. Section 415.006(a), Labor Code, is amended to
3-24 read as follows:
3-25 (a) An employer may not collect from an employee, directly
3-26 or indirectly, a premium or other fee paid by the employer to
3-27 obtain workers' compensation insurance coverage, except as provided
3-28 by Sections 406.123, [and] 406.144, and 406.182.
3-29 SECTION 3. Title 5, Labor Code, as amended by Sections 1-5
3-30 of this Act, applies only to a cause of action that accrues on or
4-1 after the effective date of this Act. A cause of action that
4-2 accrues before that date is governed by the law in effect on the
4-3 date that the cause of action accrued, and the former law is
4-4 continued in effect for that purpose.
4-5 SECTION 4. This Act takes effect September 1, 1997.
4-6 SECTION 5. The importance of this legislation and the
4-7 crowded condition of the calendars in both houses create an
4-8 emergency and an imperative public necessity that the
4-9 constitutional rule requiring bills to be read on three several
4-10 days in each house be suspended, and this rule is hereby suspended.