78R4143 JMM-F
By: Brown of Brazos H.B. No. 851
A BILL TO BE ENTITLED
AN ACT
relating to certain requirements for construction contracts with
governmental entities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 406.096, Labor Code, is amended by
amending Subsections (a) and (c) and adding Subsection (f) to read
as follows:
(a) A governmental entity that enters into a building or
construction contract shall require the contractor to certify in
writing that the contractor provides [workers' compensation
insurance coverage] for each employee of the contractor employed on
the public project:
(1) workers' compensation insurance coverage; or
(2) benefits for personal injuries or death in the
amounts described by Subsection (f).
(c) A contractor who is subject to Subsection (a) and who
provides [has a contract that requires] workers' compensation
insurance coverage for the contractor's employees may provide the
coverage through a group plan or other method satisfactory to the
governing body of the governmental entity.
(f) A contractor under Subsection (a) who does not have
workers' compensation insurance coverage must provide benefits
under the contract for personal injuries or death sustained by an
employee in the course and scope of employment in at least the
following amounts:
(1) $300,000 for medical expenses for at least 104
weeks after the date of injury;
(2) $100,000 in accidental death benefits for a fatal
injury; and
(3) weekly income benefits of at least 75 percent of
the employee's preinjury income for at least 104 weeks after the
date of injury, not to exceed $600.
SECTION 2. This Act takes effect September 1, 2003, and
applies only to a contract for building or construction between a
governmental entity and a contractor that is entered into on or
after that date. A contract entered into before the effective date
of this Act is governed by the law in effect on the date the contract
was entered into, and the former law is continued in effect for that
purpose.