78R4295 JMM-F

By:  Farabee                                                      H.B. No. 1375



A BILL TO BE ENTITLED

AN ACT

relating to the workers' compensation insurance coverage 
requirements for certain construction contracts with governmental 
entities.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Sections 406.096(a) and (b), Labor Code, are 
amended 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.  This subsection applies only to a contractor 
who enters into building or construction contracts with the 
governmental entity for which the total dollar amount in a fiscal 
year exceeds $9,000.
	(b)  Each subcontractor on a [the] public project subject to 
Subsection (a) shall provide such a certificate relating to 
coverage of the subcontractor's employees to the general 
contractor, who shall provide the subcontractor's certificate to 
the governmental entity.
	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.