| 1 | 1 | | 88R11687 SCL-D |
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| 2 | 2 | | By: Spiller H.B. No. 3406 |
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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 workers' compensation insurance coverage and bid |
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| 8 | 8 | | bonding requirements for small municipal construction projects. |
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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 Z, Chapter 271, Local Government |
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| 11 | 11 | | Code, is amended by adding Section 271.909 to read as follows: |
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| 12 | 12 | | Sec. 271.909. WORKERS' COMPENSATION AND BID BONDING |
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| 13 | 13 | | REQUIREMENTS FOR SMALL MUNICIPAL CONSTRUCTION PROJECTS. (a) In |
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| 14 | 14 | | this section, "project" includes all work to be completed on a |
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| 15 | 15 | | construction project for a municipality at one location within 12 |
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| 16 | 16 | | months of the date the work begins. |
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| 17 | 17 | | (b) Notwithstanding any other law, for a construction |
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| 18 | 18 | | project contracted for an amount that is less than one percent of |
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| 19 | 19 | | the total amount of a municipality's most recently adopted budget, |
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| 20 | 20 | | the municipality is not required to: |
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| 21 | 21 | | (1) ensure that the contractor is covered by workers' |
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| 22 | 22 | | compensation insurance coverage; or |
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| 23 | 23 | | (2) require the contractor to obtain a performance |
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| 24 | 24 | | bond. |
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| 25 | 25 | | (c) For the purpose of determining the contracted amount of |
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| 26 | 26 | | a construction project under Subsection (b), a municipality may not |
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| 27 | 27 | | aggregate work from more than one project. |
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| 28 | 28 | | SECTION 2. The change in law made by this Act applies only |
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| 29 | 29 | | to a contract entered into on or after the effective date of this |
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| 30 | 30 | | Act. |
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| 31 | 31 | | SECTION 3. This Act takes effect September 1, 2023. |
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