89R3264 SCL-D
By: Perry S.B. No. 1890
A BILL TO BE ENTITLED
AN ACT
relating to workers' compensation insurance coverage and bid
bonding requirements for small municipal construction projects.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter Z, Chapter 271, Local Government
Code, is amended by adding Section 271.909 to read as follows:
Sec. 271.909. WORKERS' COMPENSATION AND BID BONDING
REQUIREMENTS FOR SMALL MUNICIPAL CONSTRUCTION PROJECTS. (a) In
this section, "project" includes all work to be completed on a
construction project for a municipality at one location within 12
months of the date the work begins.
(b) Notwithstanding any other law, for a construction
project contracted for an amount that is less than one percent of
the total amount of a municipality's most recently adopted budget,
the municipality is not required to:
(1) ensure that the contractor is covered by workers'
compensation insurance coverage; or
(2) require the contractor to obtain a performance
bond.
(c) For the purpose of determining the contracted amount of
a construction project under Subsection (b), a municipality may not
aggregate work from more than one project.
SECTION 2. The change in law made by this Act applies only
to a contract entered into on or after the effective date of this
Act.
SECTION 3. This Act takes effect September 1, 2025.