| 1 | 1 | | 81R5156 MCK-D |
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| 2 | 2 | | By: Alvarado H.B. No. 3877 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to requiring contractors in certain state construction |
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| 8 | 8 | | contracts to provide health benefits to employees. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter F, Chapter 2166, Government Code, is |
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| 11 | 11 | | amended by adding Section 2166.2527 to read as follows: |
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| 12 | 12 | | Sec. 2166.2527. HEALTH BENEFITS COVERAGE REQUIRED FOR LARGE |
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| 13 | 13 | | CONTRACTS. (a) In this section: |
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| 14 | 14 | | (1) "Covered employee" means an employee of the |
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| 15 | 15 | | contractor or a subcontractor, including a contract laborer, who: |
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| 16 | 16 | | (A) is 18 years of age or older; |
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| 17 | 17 | | (B) works at least 30 hours per week; and |
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| 18 | 18 | | (C) works any amount of time on the project that |
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| 19 | 19 | | is the subject of a major construction contract. |
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| 20 | 20 | | (2) "Major construction contract" means a |
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| 21 | 21 | | construction contract with a value of $1 million or more. |
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| 22 | 22 | | (b) A contractor who enters into a major construction |
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| 23 | 23 | | contract with the commission must: |
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| 24 | 24 | | (1) provide health benefits coverage that is at least |
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| 25 | 25 | | equivalent to basic coverage provided under the state employees |
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| 26 | 26 | | group benefits program provided under Chapter 1551, Insurance Code, |
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| 27 | 27 | | to each covered employee; or |
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| 28 | 28 | | (2) contribute to the health opportunity pool under |
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| 29 | 29 | | Subchapter N, Chapter 531, $1.00 for every hour worked by a covered |
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| 30 | 30 | | employee on the project that is the subject of the major |
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| 31 | 31 | | construction contract. |
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| 32 | 32 | | (c) If a contractor provides health benefits coverage under |
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| 33 | 33 | | Subsection (b)(1), the contractor must pay not less than $150 per |
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| 34 | 34 | | month for the health insurance premiums for each covered employee |
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| 35 | 35 | | and the employee's contribution for the cost of the health benefits |
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| 36 | 36 | | coverage may not exceed 50 percent of the cost of the premiums. |
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| 37 | 37 | | (d) A subcontractor of the contractor under a major |
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| 38 | 38 | | construction contract must comply with the requirements of |
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| 39 | 39 | | Subsection (b). |
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| 40 | 40 | | (e) The commission may perform monthly audits of a |
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| 41 | 41 | | contractor to ensure compliance with the requirements of this |
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| 42 | 42 | | section. |
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| 43 | 43 | | (f) A major construction contract must include terms that |
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| 44 | 44 | | allow the commission to terminate the contract if the contractor, |
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| 45 | 45 | | or a subcontractor of the contractor, at any time during the life of |
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| 46 | 46 | | the contract fails to comply with the requirements of this section. |
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| 47 | 47 | | SECTION 2. Section 2166.2527, Government Code, as added by |
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| 48 | 48 | | this Act, applies only to a building construction contract for |
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| 49 | 49 | | which the solicitation of bids or proposals, request for proposals, |
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| 50 | 50 | | or similar required notification as to the project is published on |
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| 51 | 51 | | or after September 1, 2009. A building construction contract for |
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| 52 | 52 | | which the solicitation of bids or proposals, request for proposals, |
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| 53 | 53 | | or similar required notification as to the project is published |
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| 54 | 54 | | before September 1, 2009, is governed by the law in effect at the |
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| 55 | 55 | | time the solicitation, request, or notification is published, and |
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| 56 | 56 | | that law is continued in effect for that purpose. |
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| 57 | 57 | | SECTION 3. This Act takes effect September 1, 2009. |
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