78R5926 JMM-F

By:  Nixon                                                        H.B. No. 2982



A BILL TO BE ENTITLED

AN ACT

relating to workers' compensation insurance coverage for certain 
persons engaged in building or construction.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Sections 408.001(a) and (b), Labor Code, are 
amended to read as follows:
	(a)  Recovery of workers' compensation benefits is the 
exclusive remedy of an employee covered by workers' compensation 
insurance coverage or a legal beneficiary against:
		(1)  the employer or an agent or employee of the 
employer for the death of or a work-related injury sustained by the 
employee;  or
		(2)  a person engaged in building or construction under 
Section 417.0011.
	(b)  This section does not prohibit the recovery of exemplary 
damages by the surviving spouse or heirs of the body of a deceased 
employee whose death was caused by an intentional act or omission of 
the employer or other person described by Subsection (a)(2) or by 
the employer's or other person's gross negligence.
	SECTION 2.  Section 417.001(a), Labor Code, is amended to 
read as follows:   
	(a)  Except as provided by Section 417.0011, an [An] employee 
or legal beneficiary may seek damages from a third party who is or 
becomes liable to pay damages for an injury or death that is 
compensable under this subtitle and may also pursue a claim for 
workers' compensation benefits under this subtitle.
	SECTION 3.  Chapter 417, Labor Code, is amended by adding 
Section 417.0011 to read as follows:
	Sec. 417.0011.  THIRD-PARTY LIABILITY FOR BUILDING OR 
CONSTRUCTION.  (a)  In this section,   "building or construction" 
has the meaning assigned that term by Section 406.096, except that 
the term does not include preparing to construct, constructing, 
altering, repairing, extending, or demolishing a residential 
structure or an appurtenance to a residential structure.
	(b)  An employee of a subcontractor or independent 
contractor, or a legal beneficiary of the employee, may not seek 
damages from a third party who is a premises owner or general 
contractor engaged in building or construction for an injury or 
death that is compensable under this subtitle if:
		(1)  workers' compensation insurance coverage is 
provided as required by Section 406.096; or
		(2)  the premises owner or general contractor elects to 
provide or require workers' compensation insurance coverage.
	(c)  A premises owner or general contractor subject to 
Subsection (b) is secondarily liable for the workers' compensation 
insurance coverage obligation of a subcontractor or independent 
contractor if the subcontractor or independent contractor fails to 
maintain the coverage.  The premises owner or general contractor is 
not liable for the injury or death of a partner or an executive 
officer of the subcontractor or independent contractor or for the 
injury or death of a subcontractor or independent contractor who is 
a sole proprietor with no employees.
	SECTION 4.  (a) This Act takes effect September 1, 2003.                       
	(b)  The change in law made by this Act applies only to a 
claim for workers' compensation benefits based on a compensable 
injury that occurs on or after the effective date of this Act.  A 
claim based on a compensable injury that occurs before the 
effective date of this Act is governed by the law in effect on the 
date the injury occurred, and the former law  is continued in effect 
for that purpose.