Texas Senate Bill SB474

Texas 2017 - 85th Regular

Caption

Relating to required provision of workers' compensation insurance coverage for employees of building and construction contractors and subcontractors.

Impact

The implications of SB 474 on state laws are significant as it establishes a clear requirement for workers' compensation coverage. By mandating insurance for all employees of contractors and subcontractors on public projects, the bill strengthens the foundation for worker protection within the construction sector. This is particularly important in an industry that often experiences high rates of workplace injuries. The law also ensures that governmental entities verify insurance coverage, promoting compliance and reducing the risks associated with insufficient employee protection.

Summary

Senate Bill 474 seeks to mandate that all building and construction contractors and subcontractors provide workers' compensation insurance coverage for their employees. The bill stipulates that a contractor entering a public project contract must not only cover their own employees but also ensure that any subcontractors involved in the project provide similar coverage. This provision aims to enhance worker safety and enforce accountability within the construction industry, ensuring that all employees on public projects are sufficiently protected under workers' compensation laws.

Contention

During discussions surrounding SB 474, notable points of contention arose regarding the burden the bill may place on smaller contractors and subcontractors. Opponents raised concerns that the additional insurance requirements could disproportionately impact smaller businesses that may struggle to afford the associated costs. Supporters, however, argued that the benefits of providing adequate worker protection far outweigh these concerns, emphasizing that the overall safety and welfare of workers should take precedence.

Effectiveness

If enacted, this law will apply only to contracts for building or construction entered into after its effective date. Contracts established prior to this legislation will not be affected by the new provisions, continuing under the previous legal framework. This transitional approach is intended to prevent disruptions for existing contracts while still pushing forward with improved worker protections for future projects.