Texas 2009 - 81st Regular

Texas House Bill HB520 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R4258 PB-D
2	2	By: Giddings H.B. No. 520
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to workers' compensation insurance coverage under certain
8	8	agreements and to liability of third parties for an injury to an
9	9	employee.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 406.121, Labor Code, is amended by
12	12	amending Subdivision (1) and adding Subdivision (4-a) to read as
13	13	follows:
14	14	(1) "General contractor" means a person who undertakes
15	15	to procure the performance of work or a service for the benefit of
16	16	another, either separately or through the use of subcontractors.
17	17	The term includes a "principal contractor," "original contractor,"
18	18	"prime contractor," or other analogous term. The term does not
19	19	include:
20	20	(A) a motor carrier that provides a
21	21	transportation service through the use of an owner operator; or
22	22	(B) a principal who enters into an agreement with
23	23	a general contractor for the performance of work or the provision of
24	24	a service.
25	25	(4-a) "Principal" means a person who enters into a
26	26	contract or other agreement with a general contractor for the
27	27	benefit of the person for the performance of work or a service in
28	28	accordance with the terms of the contract or agreement. In the
29	29	context of an agreement regarding the performance of work or a
30	30	service on the premises of the person contracting with the general
31	31	contractor, the term includes a premises owner.
32	32	SECTION 2. Subchapter F, Chapter 406, Labor Code, is
33	33	amended by adding Section 406.128 to read as follows:
34	34	Sec. 406.128. LIABILITY OF PRINCIPAL. (a) A principal who
35	35	enters into a contract or other agreement with a general contractor
36	36	for the performance of work or a service for the benefit of the
37	37	principal does not, by virtue of that contract or agreement, become
38	38	an employer of the employees of the general contractor or any
39	39	subcontractor of the general contractor for purposes of Section
40	40	408.001.
41	41	(b) A principal may be liable under Chapter 417 for damages
42	42	for an injury or death that:
43	43	(1) is compensable under this subtitle; and
44	44	(2) occurs on the premises of the principal.
45	45	SECTION 3. Section 417.001(a), Labor Code, is amended to
46	46	read as follows:
47	47	(a) An employee or legal beneficiary may seek damages from a
48	48	third party who is or becomes liable to pay damages for an injury or
49	49	death that is compensable under this subtitle and may also pursue a
50	50	claim for workers' compensation benefits under this subtitle. For
51	51	purposes of this subsection, a third party may include a principal,
52	52	as that term is defined by Section 406.121, if the compensable
53	53	injury or death occurs on the premises of the principal.
54	54	SECTION 4. This Act takes effect immediately if it receives
55	55	a vote of two-thirds of all the members elected to each house, as
56	56	provided by Section 39, Article III, Texas Constitution. If this
57	57	Act does not receive the vote necessary for immediate effect, this
58	58	Act takes effect September 1, 2009.