Bill not drafted by TLC or Senate E&E.

      Line and page numbers may not match official copy.

      By Shields                                      H.B. No. 3518

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to workers' compensation insurance requirements for public

 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 by to

 1-6     read as follows:

 1-7           (a)  A governmental entity has the discretion to enter into a

 1-8     building or construction contract with a contractor that does not

 1-9     subscribe to workers' compensation insurance coverage as defined in

1-10     Section 401.011(44), Labor Code.  A contractor that does not

1-11     subscribe to workers compensation insurance coverage must submit to

1-12     the governmental entity, with its bid on the building or

1-13     construction contract, a schedule of benefits provided under the

1-14     contractor's occupational injury insurance plan.  The schedule must

1-15     state how the benefits under the contractor's occupational injury

1-16     insurance plan differ from a workers compensation insurance

1-17     coverage plan.  The benefits provided under the contractor's

1-18     occupational injury insurance plan must be substantially equal to

1-19     benefits under a workers compensation insurance coverage plan.

1-20           (b) [(a)]  If a [A] governmental entity [that] enters into a

1-21     building or construction contract that requires workers'

1-22     compensation insurance coverage, the governmental entity shall

1-23     require the contractor to certify in writing that the contractor

1-24     provides workers' compensation insurance coverage for each employee

 2-1     of the contractor employed on the public project, [.] and

 2-2           [(b)  Each] each subcontractor on public project shall

 2-3     provide such a certificate relating to coverage of the

 2-4     subcontractor's employees to the general contractor, who shall

 2-5     provide the subcontractor's certificate to the governmental entity.

 2-6           SECTION 2.  This Act applies only to contracts executed on or

 2-7     after September 1, 1997.  A contract executed before September 1,

 2-8     1997 is governed by the law as it existed before the effective date

 2-9     of this Act, and that law is continued in effect for this purpose.

2-10           SECTION 3.  The importance of this legislation and the

2-11     crowded condition of the calendars in both houses create an

2-12     emergency and an imperative public necessity that the

2-13     constitutional rule requiring bills to be read on three several

2-14     days in each house be suspended, and this rule is hereby suspended.