82R9667 JSC-D
By: Workman H.B. No. 1987
A BILL TO BE ENTITLED
AN ACT
relating to required workers' compensation insurance coverage for
building and construction contractors.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Section 406.096, Labor Code, is
amended to read as follows:
Sec. 406.096. REQUIRED COVERAGE FOR [CERTAIN] BUILDING OR
CONSTRUCTION CONTRACTORS.
SECTION 2. Section 406.096, Labor Code, is amended by
amending Subsections (a), (b), and (c) and adding Subsections
(a-1), (a-2), (a-3), (a-4), and (d-1) to read as follows:
(a) A contractor shall ensure that each employee of the
contractor has workers' compensation insurance coverage for a
project. A subcontractor shall ensure that each employee of the
subcontractor has workers' compensation insurance coverage for a
project.
(a-1) Unless the construction contract is with a
governmental entity for a public project, the workers' compensation
insurance coverage required under this section may be provided:
(1) by any person, including the contractor, the
subcontractor, the owner of the property or premises, or a staff
leasing services company; and
(2) through a group plan or other method.
(a-2) On request of a contractor who enters into a building
or construction contract with a subcontractor, the subcontractor
shall certify in writing that workers' compensation insurance
coverage is provided for:
(1) each employee of the subcontractor employed on the
project; and
(2) if applicable, each person employed on the project
by another subcontractor that entered into a contract with the
subcontractor.
(a-3) On request of a person who enters into a building or
construction contract with the contractor, the contractor shall:
(1) certify in writing that workers' compensation
insurance coverage is provided for each employee of the contractor
employed on the project; and
(2) provide a certificate described by Subdivision (1)
for each subcontractor on the project.
(a-4) A governmental entity that enters into a building or
construction contract shall require the contractor to certify in
writing that the contractor provides workers' compensation
insurance coverage for each employee of the contractor employed on
the public project.
(b) Each subcontractor on a [the] public project shall
certify in writing that the subcontractor provides workers'
compensation insurance coverage for each employee of the
subcontractor employed on the public project. The subcontractor
shall provide the [such a] certificate [relating to coverage of the
subcontractor's employees] to the general contractor, who shall
provide the subcontractor's certificate to the governmental
entity.
(c) A contractor who has a contract with a governmental
entity for a public project or a subcontractor of that contractor
[that requires workers' compensation insurance coverage] may
provide the workers' compensation insurance coverage to employees
employed on the public project through a group plan or other method
satisfactory to the governing body of the governmental entity.
(d-1) This section does not apply to a direct employee of a
property owner performing work on a construction project on the
property owner's property.
SECTION 3. Section 406.096(e), Labor Code, is amended by
adding Subdivision (3) to read as follows:
(3) "Staff leasing services company" has the meaning
assigned by Section 91.001.
SECTION 4. The change in law made by this Act applies only
to a contract for building or construction that is entered into on
or after the effective date of this Act. A contract entered into
before the effective date of this Act is governed by the law in
effect on the date the contract was entered into, and the former law
is continued in effect for that purpose.
SECTION 5. This Act takes effect September 1, 2011.