HBA-NLM C.S.H.B. 3133 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 3133 By: Chisum County Affairs 3/27/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE Currently, a political subdivision is required to extend workers' compensation benefits to its employees by becoming a self-insurer, providing insurance under a workers' compensation insurance policy, or by entering into an interlocal agreement with other political subdivisions providing for self-insurance. The Stratford Hospital District operates without being a subscriber to the worker's compensation insurance program and has covered employee benefits from district resources. The cost to the district has been estimated to be less than one-tenth the cost of the insurance program. There is concern that the costs of subscription are prohibitive and may endanger the ability of the hospital district to continue a viable nursing facility. C.S.H.B. 3133 provides that contracts for construction or purchases involving the expenditure of more than $5,000, rather than $2,000, may be made only after advertising. This bill requires for the provisions of Chapter 2253 (Public Work Performance and Payment Bonds), Government Code, to apply to construction contracts let by the district. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 10, Chapter 470, Acts of the 61st Legislature, Regular Session, 1969, as follows: Sec. 10. Provides that contracts for construction or purchases involving the expenditure of more than $15,000, rather than $2,000, may be made only after advertising in the manner provided by Chapter 252 (Purchasing and Contracting Authority of Municipalities), Local Government Code, rather than Chapter 163, Acts of the 42nd Legislature, Regular Session, 1931, as amended by Article 2368a (Bond and Warrant Law of 1931), V.T.C.S. Requires the provisions of Chapter 2253 (Public Work Performance and Payment Bonds), Government Code, rather than Article 5160 (Contractors Performance and Payment Bonds), V.T.C.S., apply to construction contracts let by the district. SECTION 2. Effective date: September 1, 1999. SECTION 3. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 3133 modifies the original by deleting proposed SECTION 2, which provided that the district is exempt from Section 504.011 (Method of Providing Coverage), Labor Code, to the extent that the section requires the district to provide worker's compensation benefits to its employees. C.S.H.B. 3133 modifies the original by redesignating proposed SECTIONS 3 and 4 to SECTIONS 2 and 3.