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A BILL TO BE ENTITLED
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AN ACT
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relating to required provision of workers' compensation insurance |
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coverage for employees of building and construction contractors and |
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subcontractors. |
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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 PROVISION OF COVERAGE FOR EMPLOYEES |
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OF [CERTAIN] BUILDING OR CONSTRUCTION CONTRACTORS AND |
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SUBCONTRACTORS. |
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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: |
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(1) certify in writing that the contractor provides |
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workers' compensation insurance coverage for each employee of the |
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contractor employed on the public project; and |
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(2) if the contractor uses a subcontractor on the |
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public project, provide a written certificate, submitted by each |
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subcontractor, that the subcontractor provides workers' |
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compensation insurance coverage for each employee of the |
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subcontractor employed on the public project. |
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(b) Each subcontractor on a [the] public project shall |
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provide the [such a] certificate described by Subsection (a-1)(2) |
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[relating to coverage of the subcontractor's employees] to the |
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general contractor, who shall provide the subcontractor's |
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certificate to the governmental entity. |
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(c) A contractor or subcontractor may provide [who has a |
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contract that requires] workers' compensation insurance coverage |
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[may provide the coverage] through a group plan, an |
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owner-controlled consolidated insurance program created under |
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Chapter 151, Insurance Code, or another [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 provided by the contractor and, if |
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applicable, by each subcontractor must be satisfactory to the |
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governing 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, 2025. |