82R889 MCK-D
By: Alvarado H.B. No. 131
A BILL TO BE ENTITLED
AN ACT
relating to requiring contractors in certain state construction
contracts to provide health benefits to employees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter F, Chapter 2166, Government Code, is
amended by adding Section 2166.2527 to read as follows:
Sec. 2166.2527. HEALTH BENEFITS COVERAGE REQUIRED FOR LARGE
CONTRACTS. (a) In this section:
(1) "Covered employee" means an employee of the
contractor or a subcontractor, including a contract laborer, who:
(A) is 18 years of age or older;
(B) works at least 30 hours per week; and
(C) works any amount of time on the project that
is the subject of a major construction contract.
(2) "Major construction contract" means a
construction contract with a value of $1 million or more.
(b) A contractor who enters into a major construction
contract with the commission must:
(1) provide health benefits coverage that is at least
equivalent to basic coverage provided under the state employees
group benefits program provided under Chapter 1551, Insurance Code,
to each covered employee; or
(2) contribute to the Texas health opportunity pool
trust fund under Subchapter N, Chapter 531, $1 for every hour worked
by a covered employee on the project that is the subject of the
major construction contract.
(c) If a contractor provides health benefits coverage under
Subsection (b)(1), the contractor must pay not less than $150 per
month for the health insurance premiums for each covered employee
and the employee's contribution for the cost of the health benefits
coverage may not exceed 50 percent of the cost of the premiums.
(d) A subcontractor of the contractor under a major
construction contract must comply with the requirements of
Subsection (b).
(e) The commission may perform monthly audits of a
contractor to ensure compliance with the requirements of this
section.
(f) A major construction contract must include terms that
allow the commission to terminate the contract if the contractor,
or a subcontractor of the contractor, at any time during the life of
the contract fails to comply with the requirements of this section.
SECTION 2. Section 2166.2527, Government Code, as added by
this Act, applies only to a building construction contract for
which the solicitation of bids or proposals, request for proposals,
or similar required notification as to the project is published on
or after September 1, 2011. A building construction contract for
which the solicitation of bids or proposals, request for proposals,
or similar required notification as to the project is published
before September 1, 2011, is governed by the law in effect at the
time the solicitation, request, or notification is published, and
that law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2011.