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A BILL TO BE ENTITLED
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AN ACT
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relating to required workers' compensation insurance coverage for |
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building and construction contractors. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Section 406.096, Labor Code, is |
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amended to read as follows: |
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Sec. 406.096. REQUIRED COVERAGE FOR [CERTAIN] BUILDING OR |
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CONSTRUCTION CONTRACTORS. |
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SECTION 2. Section 406.096, Labor Code, is amended by |
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amending Subsections (a), (b), and (c) and adding Subsection (a-1) |
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to read as follows: |
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(a) A contractor shall provide workers' compensation |
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insurance coverage for each employee of the contractor. A |
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subcontractor shall provide workers' compensation insurance |
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coverage for each employee of the subcontractor. |
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(a-1) A governmental entity that enters into a building or |
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construction contract shall require the contractor to certify in |
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writing that the contractor provides workers' compensation |
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insurance coverage for each employee of the contractor employed on |
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the public project. |
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(b) Each subcontractor on a [the] public project shall |
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provide [such] a certificate relating to coverage of the |
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subcontractor's employees to the general contractor, who shall |
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provide the subcontractor's certificate to the governmental |
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entity. |
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(c) A contractor may provide [who has a contract that
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requires] workers' compensation insurance coverage [may provide
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the coverage] through a group plan or other method. If the |
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contractor enters into a contract with a governmental entity for a |
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public project, the coverage must be satisfactory to the governing |
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body of the governmental entity. |
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SECTION 3. The change in law made by this Act applies only |
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to a contract for building or construction that is entered into on |
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or after the effective date of this Act. A contract entered into |
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before the effective date of this Act is governed by the law in |
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effect on the date the contract was entered into, and the former law |
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is continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2011. |