By Farabee                                            H.B. No. 1980
         77R5843 JMM-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the workers' compensation insurance coverage
 1-3     requirements for certain construction contracts with governmental
 1-4     entities.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1. Sections 406.096(a) and (b), Labor Code, are
 1-7     amended to read as follows:
 1-8           (a)  A governmental entity that enters into a building or
 1-9     construction contract shall require the contractor to certify in
1-10     writing that the contractor provides workers' compensation
1-11     insurance coverage for each employee of the contractor employed on
1-12     the public project.  This subsection applies only to a contractor
1-13     who enters into building or construction contracts with the
1-14     governmental entity for which the total dollar amount in a fiscal
1-15     year exceeds $9,000.
1-16           (b)  Each subcontractor on a [the] public project subject to
1-17     Subsection (a) shall provide such a certificate relating to
1-18     coverage of the subcontractor's employees to the general
1-19     contractor, who shall provide the subcontractor's certificate to
1-20     the governmental entity.
1-21           SECTION 2. This Act takes effect September 1, 2001, and
1-22     applies only to a contract for building or construction between a
1-23     governmental entity and a contractor that is entered into on or
1-24     after that date.  A contract entered into before the effective date
 2-1     of this Act is governed by the law in effect on the date the
 2-2     contract was entered into, and the former law is continued in
 2-3     effect for that purpose.