Texas 2015 - 84th Regular

Texas Senate Bill SB1081 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	84R29793 MEW-F
2		-	By: Creighton S.B. No. 1081
3		-	(Huberty)
4		-	Substitute the following for S.B. No. 1081: No.
	1	+	S.B. No. 1081
5	2
6	3
7		-	A BILL TO BE ENTITLED
8	4		AN ACT
9	5		relating to the disclosure of certain information under a
10	6		consolidated insurance program.
11	7		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	8		SECTION 1. Section 151.002, Insurance Code, is amended to
13	9		read as follows:
14	10		Sec. 151.002. RULES. The commissioner shall adopt rules as
15	11		necessary to implement and enforce this subchapter and Subchapter
16	12		B.
17	13		SECTION 2. Subchapter A, Chapter 151, Insurance Code, is
18	14		amended by adding Sections 151.003 through 151.009 to read as
19	15		follows:
20	16		Sec. 151.003. INFORMATION REQUIRED TO BE PROVIDED BY
21	17		PRINCIPAL BEFORE ENTERING CONSTRUCTION CONTRACT. If a construction
22	18		contract requires a person to enroll in a consolidated insurance
23	19		program, not later than the 10th day before the date a principal
24	20		enters into the contract with the person, the principal shall
25	21		provide the following information about the consolidated insurance
26	22		program to the person:
27	23		(1) contact information, including phone number and
28	24		e-mail address, for:
29	25		(A) the program administrator;
30	26		(B) the principal's risk manager; and
31	27		(C) the insurer's contact person for filing a
32	28		claim for each type of insurance coverage provided in the program;
33	29		(2) the criteria for eligibility of enrollment into
34	30		the program;
35	31		(3) a description of the project site covered by the
36	32		program coverages;
37	33		(4) a summary of insurance coverages to be provided to
38	34		the contractor under the program, including:
39	35		(A) the policy form number and issuing
40	36		organization if the policy is a standardized insurance policy or,
41	37		if the policy is not standardized, a sample policy form;
42	38		(B) per occurrence and aggregate limits of
43	39		insurance coverages and any sublimits that may apply;
44	40		(C) term of coverages for each limit and
45	41		sublimit, if any; and
46	42		(D) any material endorsements to the policy
47	43		described under Paragraph (A);
48	44		(5) a summary of insurance coverages to be provided by
49	45		the contractor;
50	46		(6) instructions on how to include or exclude costs of
51	47		insurance provided by the program in the person's proposal for work
52	48		on the construction project;
53	49		(7) a description of the audit or claims procedures
54	50		related to the program that may result in additional cost to a
55	51		contractor, including the method of calculation for any assessment
56	52		charged to a contractor related to the principal's payment of a
57	53		policy deductible and any other specific cost amounts; and
58	54		(8) a description of a contractor's duties related to
59	55		reporting:
60	56		(A) payroll and retention of documentation; and
61	57		(B) claims and participation in safety
62	58		inspections and incident reporting.
63	59		Sec. 151.004. INFORMATION REQUIRED TO BE PROVIDED BY
64	60		CONTRACTOR BEFORE ENTERING CONSTRUCTION CONTRACT. If a
65	61		construction contract requires a person to enroll in a consolidated
66	62		insurance program, not later than the 10th day before the date a
67	63		contractor enters into the contract with the person, the contractor
68	64		must provide to the person, in an accurate form, the information
69	65		listed in Section 151.003 that the contractor received under that
70	66		section.
71	67		Sec. 151.005. RELIANCE ON INFORMATION PROVIDED. The
72	68		information required under Section 151.003 must be accurate, and a
73	69		person who receives the information under Section 151.003 or
74	70		151.004 may justifiably rely on the information to decide whether
75	71		to enter into the construction contract.
76	72		Sec. 151.006. FAILURE TO FURNISH. (a) A person may not be
77	73		required to enter into a construction contract that requires
78	74		enrollment in a consolidated insurance program unless the person is
79	75		provided the information in compliance with Section 151.003 or
80	76		151.004, as applicable. If the information required under Section
81	77		151.003 is not provided to a person within the 10-day period under
82	78		Section 151.003 or 151.004, as applicable, the person may elect not
83	79		to enroll in the consolidated insurance program.
84	80		(b) If a person elects not to enroll in the consolidated
85	81		insurance program under Subsection (a), a principal or contractor
86	82		may provide the person with the information required under Section
87	83		151.003 after the 10-day period under Section 151.003 or 151.004,
88	84		as applicable. The person must elect whether to enroll in the
89	85		consolidated insurance program not later than the 10th day after
90	86		the date that the information is provided under this subsection.
91	87		(c) If a person elects not to enroll in the consolidated
92	88		insurance program under Subsection (a) or (b) and enters into a
93	89		construction contract for the construction project, the person must
94	90		obtain insurance coverage for the person's work on the project that
95	91		substantially complies with the coverage terms and liability limits
96	92		imposed for other persons who work on the construction project but
97	93		who are not insured under the consolidated insurance program.
98	94		(d) The principal or contractor, as applicable, shall
99	95		compensate a person with whom the principal or contractor contracts
100	96		and who obtains insurance coverage under Subsection (c) for the
101	97		actual cost of that insurance coverage.
102	98		Sec. 151.007. REQUEST FOR INSURANCE POLICY; DEADLINE TO
103	99		PROVIDE. (a) A contractor may request in writing from the
104	100		principal, or from the party with which the contractor has a direct
105	101		contractual relationship, a complete copy of the insurance policy
106	102		that provides coverage for the contractor under the consolidated
107	103		insurance program.
108	104		(b) The copy described by Subsection (a) must be provided to
109	105		the requesting contractor not later than the later of:
110	106		(1) the 30th day after the date the request was sent;
111	107		or
112	108		(2) the 60th day after the date the contractor's work
113	109		covered by the consolidated insurance program begins on the
114	110		construction project.
115	111		Sec. 151.008. FAILURE TO PROVIDE INSURANCE POLICY. It is a
116	112		material breach of a contractor's construction contract if a
117	113		complete copy of the insurance policy requested by the contractor
118	114		under Section 151.007 is not provided before the later of:
119	115		(1) the 75th day after the date the request was sent;
120	116		or
121	117		(2) the 90th day after the date the contractor's work
122	118		covered by the consolidated insurance program begins on the
123	119		construction project.
124	120		Sec. 151.009. ELECTRONIC DELIVERY. (a) On a person's
125	121		express request, a principal or contractor shall provide
126	122		information under this subchapter in hard copy written form.
127	123		(b) If a person does not expressly request information be
128	124		provided in hard copy written form, the principal or contractor may
129	125		comply with the requirements of this chapter by:
130	126		(1) transmitting the information by facsimile or
131	127		e-mail; or
132	128		(2) allowing access to the information on the
133	129		principal's, or the principal's agent's, Internet website.
134	130		SECTION 3. The changes in law made by this Act apply only to
135	131		an original construction contract with an owner of an improvement
136	132		or contemplated improvement that is entered into on or after
137	133		January 1, 2016. If a construction contract with an owner of an
138	134		improvement or contemplated improvement is entered into on or after
139	135		January 1, 2016, the changes in law made by this Act apply to a
140	136		related subcontract, purchase order contract, personal property
141	137		lease agreement, consolidated insurance program, and insurance
142	138		policy. If a construction contract with an owner of an improvement
143	139		or contemplated improvement is entered into before January 1, 2016,
144	140		that original construction contract and a related subcontract,
145	141		purchase order contract, personal property lease agreement,
146	142		consolidated insurance program, and insurance policy are governed
147	143		by the law in effect immediately before the effective date of this
148	144		Act, and that law is continued in effect for that purpose.
149	145		SECTION 4. This Act takes effect January 1, 2016.
	146	+	______________________________ ______________________________
	147	+	President of the Senate Speaker of the House
	148	+	I hereby certify that S.B. No. 1081 passed the Senate on
	149	+	April 27, 2015, by the following vote: Yeas 29, Nays 1; and that
	150	+	the Senate concurred in House amendment on May 21, 2015, by the
	151	+	following vote: Yeas 30, Nays 1.
	152	+	______________________________
	153	+	Secretary of the Senate
	154	+	I hereby certify that S.B. No. 1081 passed the House, with
	155	+	amendment, on May 15, 2015, by the following vote: Yeas 136,
	156	+	Nays 3, two present not voting.
	157	+	______________________________
	158	+	Chief Clerk of the House
	159	+	Approved:
	160	+	______________________________
	161	+	Date
	162	+	______________________________
	163	+	Governor