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A BILL TO BE ENTITLED
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AN ACT
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relating to workers' compensation insurance coverage and bid |
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bonding requirements for small municipal construction projects. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter Z, Chapter 271, Local Government |
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Code, is amended by adding Section 271.909 to read as follows: |
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Sec. 271.909. WORKERS' COMPENSATION AND BID BONDING |
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REQUIREMENTS FOR SMALL MUNICIPAL CONSTRUCTION PROJECTS. (a) In |
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this section, "project" includes all work to be completed on a |
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construction project for a municipality at one location within 12 |
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months of the date the work begins. |
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(b) Notwithstanding any other law, for a construction |
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project contracted for an amount that is less than one percent of |
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the total amount of a municipality's most recently adopted budget, |
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the municipality is not required to: |
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(1) ensure that the contractor is covered by workers' |
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compensation insurance coverage; or |
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(2) require the contractor to obtain a performance |
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bond. |
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(c) For the purpose of determining the contracted amount of |
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a construction project under Subsection (b), a municipality may not |
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aggregate work from more than one project. |
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SECTION 2. The change in law made by this Act applies only |
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to a contract entered into on or after the effective date of this |
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Act. |
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SECTION 3. This Act takes effect September 1, 2023. |