79R13863 JMM-F


By:  Brown of Brazos                                              H.B. No. 153

Substitute the following for H.B. No. 153:                                    

By:  Zedler                                                   C.S.H.B. No. 153



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(a), Labor Code, is amended to 
read as follows:   
	(a)  Except as provided by Section 2252.904, Government 
Code, 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.
	SECTION 2.  Subchapter Z, Chapter 2252, Government Code, is 
amended by adding Section 2252.904 to read as follows:
	Sec. 2252.904.  CERTAIN BUILDING AND CONSTRUCTION 
CONTRACTS.  (a)  Notwithstanding Section 406.096, Labor Code, a 
governmental entity subject to that section may allow a contractor 
or subcontractor to provide alternative benefits under the contract 
for injuries or death sustained by an employee in the course and 
scope of employment in at least the following amounts:
		(1)  $400,000 for reasonable and necessary medical 
expenses related to the injury for at least 104 weeks after the date 
of the injury;
		(2)  for an accidental death or dismemberment:                         
			(A)  $250,000 for a fatal injury, payable to the 
employee's legal beneficiary, as defined by Section 401.011, Labor 
Code; and
			(B)  $100,000 for a dismemberment; and                                
		(3)  weekly income benefits of at least 75 percent of 
the employee's preinjury average weekly wage, as determined by 
Chapter 408, Labor Code, for at least 104 weeks after the date of 
injury, but not exceeding $750 each week.
	(b)  This section applies only to a contractor or 
subcontractor that does not provide workers' compensation 
insurance coverage for the contractor's or subcontractor's 
employees on or before September 1, 2005.
	(c)  This section expires September 1, 2007.                            
	SECTION 3.  The change in law made by this Act applies only 
to a contract for building or construction between a governmental 
entity and a contractor that is entered into on or after the 
effective date of this Act.  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.
	SECTION 4.  This Act takes effect September 1, 2005.