Texas Senate Bill SB1890

Texas 2025 - 89th Regular

• Filed: 3/4/25

Caption

Relating to workers' compensation insurance coverage and bid bonding requirements for small municipal construction projects.

Impact

The implementation of SB1890 is set to take effect on September 1, 2025, and will apply only to contracts entered into after that date. This legislation is anticipated to ease the administrative burden on municipalities when managing smaller construction contracts. By eliminating the requirement for workers' compensation insurance and performance bonds for certain small projects, the bill may encourage local governments to contract with smaller businesses that may struggle with the more stringent requirements typically associated with larger projects.

Summary

Senate Bill 1890 aims to amend regulations surrounding workers' compensation insurance coverage and bid bonding requirements for small municipal construction projects. The bill specifies that for construction contracts costing less than one percent of a municipality's most recent budget, the municipality is not required to ensure that the contractor has workers' compensation insurance or to require a performance bond. This change is significant as it lowers the threshold at which municipalities must adhere to these regulations, potentially facilitating easier access for small contractors to municipal projects.

Contention

Despite its benefits to small contractors, there are points of contention surrounding the bill. Critics may argue that removing these requirements could lead to increased risk for municipalities should contractors fail to deliver on projects or cause workplace injuries without coverage. The lack of a performance bond could also leave municipalities vulnerable financially. Thus, while the bill is designed to promote small business engagement, concerns regarding public safety and fiscal responsibility remain central to discussions about this legislation.

Texas Constitutional Statutes Affected

Local Government Code

• Chapter 271. Purchasing And Contracting Authority Of Municipalities, Counties, And Certain Other Local Governments
  • Section: New Section