Relating to required workers' compensation insurance coverage for building and construction contractors.
Impact
This legislation significantly modifies existing labor laws by updating Section 406.096 of the Labor Code. It emphasizes the importance of workers' rights and safety by enforcing insurance coverage from all entities involved in public construction projects. This could potentially reduce the financial risks associated with work-related injuries for employees in the construction sector, as workers' compensation insurance serves as a safety net for injured workers.
Summary
SB155 aims to mandate workers' compensation insurance coverage specifically for building and construction contractors within Texas. The bill establishes that each contractor must provide insurance coverage for every employee, and if subcontractors are involved, they too must have proper coverage. In addition, governmental entities engaging in construction contracts are required to obtain certifications from contractors affirming that they hold the necessary insurance, ensuring full compliance throughout the contracting chain.
Contention
There may be points of contention surrounding the bill, particularly about its implications for contractors and subcontractors. Some might argue that the insurance requirement could lead to increased costs for contractors, particularly smaller companies that may struggle to afford comprehensive coverage. Others may raise concerns about the bureaucratic processes involved in obtaining certifications from subcontractors, potentially complicating contract negotiations and project timelines.
Relating to limitations on the use of workers' compensation insurance experience modifier values in soliciting and awarding public construction contracts.
Relating to property owner liability for personal injury claims arising from insurance restoration projects in which a contractor or subcontractor does not maintain workers' compensation insurance coverage.
Relating to property owner liability for personal injury claims arising from insurance restoration projects in which a contractor or subcontractor does not maintain workers' compensation insurance coverage.
Relating to the classification of certain construction workers and the eligibility of those workers for unemployment benefits; providing an administrative penalty.
Relating to discontinuing group self-insurance coverage and dissolving the Texas self-insurance group guaranty fund and trust fund under the Texas Workers' Compensation Act.