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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.