82R9667 JSC-D

By: Workman H.B. No. 1987

A BILL TO BE ENTITLED

AN ACT

relating to required workers' compensation insurance coverage for building and construction contractors.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. The heading to Section 406.096, Labor Code, is amended to read as follows:

Sec. 406.096. REQUIRED COVERAGE FOR [CERTAIN] BUILDING OR CONSTRUCTION CONTRACTORS.

SECTION 2. Section 406.096, Labor Code, is amended by amending Subsections (a), (b), and (c) and adding Subsections (a-1), (a-2), (a-3), (a-4), and (d-1) to read as follows:

(a) A contractor shall ensure that each employee of the contractor has workers' compensation insurance coverage for a project. A subcontractor shall ensure that each employee of the subcontractor has workers' compensation insurance coverage for a project.

(a-1) Unless the construction contract is with a governmental entity for a public project, the workers' compensation insurance coverage required under this section may be provided:

(1) by any person, including the contractor, the subcontractor, the owner of the property or premises, or a staff leasing services company; and

(2) through a group plan or other method.

(a-2) On request of a contractor who enters into a building or construction contract with a subcontractor, the subcontractor shall certify in writing that workers' compensation insurance coverage is provided for:

(1) each employee of the subcontractor employed on the project; and

(2) if applicable, each person employed on the project by another subcontractor that entered into a contract with the subcontractor.

(a-3) On request of a person who enters into a building or construction contract with the contractor, the contractor shall:

(1) certify in writing that workers' compensation insurance coverage is provided for each employee of the contractor employed on the project; and

(2) provide a certificate described by Subdivision (1) for each subcontractor on the project.

(a-4) 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.

(b) Each subcontractor on a [the] public project shall certify in writing that the subcontractor provides workers' compensation insurance coverage for each employee of the subcontractor employed on the public project. The subcontractor shall provide the [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.

(c) A contractor who has a contract with a governmental entity for a public project or a subcontractor of that contractor [that requires workers' compensation insurance coverage] may provide the workers' compensation insurance coverage to employees employed on the public project through a group plan or other method satisfactory to the governing body of the governmental entity.

(d-1) This section does not apply to a direct employee of a property owner performing work on a construction project on the property owner's property.

SECTION 3. Section 406.096(e), Labor Code, is amended by adding Subdivision (3) to read as follows:

(3) "Staff leasing services company" has the meaning assigned by Section 91.001.

SECTION 4. The change in law made by this Act applies only to a contract for building or construction 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 5. This Act takes effect September 1, 2011.