79R968 JMM-D

By:  Brown of Brazos                                              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, 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)  $400,000 for medical expenses for at least 104 
weeks after the date of injury;
		(2)  $250,000 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 $750.
	SECTION 2.  Section 406.096, Labor Code, as amended 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 3.  This Act takes effect September 1, 2005.