Texas 2023 - 88th Regular

Texas House Bill HB4239

Voted on by House
 
Out of Senate Committee
 
Voted on by Senate
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to property owner liability for personal injury claims arising from insurance restoration projects in which a contractor or subcontractor does not maintain workers' compensation insurance coverage.

Impact

The enactment of HB 4239 would signify a substantial change to existing liability laws under the Civil Practice and Remedies Code. By introducing Section 95.005, the bill specifically articulates that property owners would not be liable for injuries to workers of contractors who lack workers' compensation insurance during restoration projects covered by insurance. The implication is that it may potentially encourage contractors to forgo proper insurance coverage without the risk of exposing property owners to liability, potentially leading to increased hazards for workers in such scenarios.

Summary

House Bill 4239 addresses the liability of property owners for personal injury claims arising from insurance restoration projects when a contractor or subcontractor does not have workers' compensation insurance. The bill seeks to limit property owner liability, thus providing a safeguard for homeowners against potential legal claims. This legislation aims to create a clearer delineation of responsibility when contractors choose to operate without necessary insurance coverage, ensuring that property owners are shielded from being held accountable for injuries sustained by the contractors or their employees in these circumstances.

Sentiment

The sentiment surrounding the bill appears to be cautiously optimistic, with supporters recognizing the need for liability protections for property owners. However, there are concerns from various stakeholders, including lawyers and advocacy groups, regarding the potential for abuse of this liability limitation. The balancing act highlighted in discussions emphasizes the necessity of maintaining protections for homeowners while ensuring that contractors are held accountable for their responsibilities in maintaining the necessary insurance coverage to operate legally.

Contention

Notable points of contention arise from the fear that limiting liability for property owners could incentivize contractors to operate without insurance, thereby compromising worker safety. While the bill has garnered support for its protective intentions, critics, including representatives from the Texas Trial Lawyers Association, have voiced apprehensions that this legislative change might lead to a lack of adequate protections for workers and could create an environment where contractors neglect necessary insurance standards. The ongoing debate indicates that while the objectives of the bill are clear, its implications on worker protection and contractor accountability remain a source of concern.

Texas Constitutional Statutes Affected

Civil Practice And Remedies Code

  • Chapter 95. Property Owner's Liability For Acts Of Independent Contractors And Amount Of Recovery
    • Section: New Section

Labor Code

  • Chapter 406. Workers' Compensation Insurance Coverage
    • Section: New Section

Companion Bills

TX SB2121

Identical Relating to property owner liability for personal injury claims arising from insurance restoration projects in which a contractor or subcontractor does not maintain workers' compensation insurance coverage.

Similar Bills

No similar bills found.