LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 86TH LEGISLATIVE REGULAR SESSION

April 8, 2019

TO:	Honorable Trey Martinez Fischer, Chair, House Committee on Business & Industry
FROM:	John McGeady, Assistant Director     Sarah Keyton, Assistant Director Legislative Budget Board
IN RE:	HB750 by Walle (Relating to required provision of workers' compensation insurance coverage for employees of building and construction contractors and subcontractors.), As Introduced

No significant fiscal implication to the State is anticipated.

The bill would require contractors and subcontractors to certify to a government entity that they provide worker's compensation insurance for each employee on a public project. The coverage could be through a group plan or other method but would have to be acceptable to the government entity's governing body.

The Facilities Commission indicated that the bill would result in additional costs to document insurance coverage for subcontractor employees, but this cost could be absorbed within existing resources.

This analysis assumes the bill does not prevent state entities from using existing programs to meet the requirements of the bill. The University of Texas System indicated there would be a cost if the bill was interpreted as removing their authority to provide worker's compensation insurance through an Owner Controlled Insurance Program.

Local Government Impact

According to the Texas Municipal League, no significant fiscal impact to cities is anticipated.

Source Agencies:

303 Facilities Commission, 320 Texas Workforce Commission, 454 Department of Insurance, 479 State Office of Risk Management, 601 Department of Transportation, 696 Department of Criminal Justice, 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration

LBB Staff:

WP, CLo, JQ, BH, AF