| 1 | 1 | | 89R125 KKR-F |
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| 2 | 2 | | By: Eckhardt S.B. No. 338 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to required provision of workers' compensation insurance |
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| 10 | 10 | | coverage for employees of building and construction contractors and |
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| 11 | 11 | | subcontractors. |
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| 12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 13 | | SECTION 1. The heading to Section 406.096, Labor Code, is |
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| 14 | 14 | | amended to read as follows: |
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| 15 | 15 | | Sec. 406.096. REQUIRED PROVISION OF COVERAGE FOR EMPLOYEES |
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| 16 | 16 | | OF [CERTAIN] BUILDING OR CONSTRUCTION CONTRACTORS AND |
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| 17 | 17 | | SUBCONTRACTORS. |
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| 18 | 18 | | SECTION 2. Section 406.096, Labor Code, is amended by |
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| 19 | 19 | | amending Subsections (a), (b), and (c) and adding Subsection (a-1) |
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| 20 | 20 | | to read as follows: |
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| 21 | 21 | | (a) A contractor shall provide workers' compensation |
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| 22 | 22 | | insurance coverage for each employee of the contractor. A |
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| 23 | 23 | | subcontractor shall provide workers' compensation insurance |
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| 24 | 24 | | coverage for each employee of the subcontractor. |
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| 25 | 25 | | (a-1) A governmental entity that enters into a building or |
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| 26 | 26 | | construction contract shall require the contractor to: |
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| 27 | 27 | | (1) certify in writing that the contractor provides |
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| 28 | 28 | | workers' compensation insurance coverage for each employee of the |
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| 29 | 29 | | contractor employed on the public project; and |
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| 30 | 30 | | (2) if the contractor uses a subcontractor on the |
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| 31 | 31 | | public project, provide a written certificate, submitted by each |
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| 32 | 32 | | subcontractor, that the subcontractor provides workers' |
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| 33 | 33 | | compensation insurance coverage for each employee of the |
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| 34 | 34 | | subcontractor employed on the public project. |
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| 35 | 35 | | (b) Each subcontractor on a [the] public project shall |
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| 36 | 36 | | provide the [such a] certificate described by Subsection (a-1)(2) |
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| 37 | 37 | | [relating to coverage of the subcontractor's employees] to the |
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| 38 | 38 | | general contractor, who shall provide the subcontractor's |
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| 39 | 39 | | certificate to the governmental entity. |
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| 40 | 40 | | (c) A contractor or subcontractor may provide [who has a |
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| 41 | 41 | | contract that requires] workers' compensation insurance coverage |
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| 42 | 42 | | [may provide the coverage] through a group plan, an |
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| 43 | 43 | | owner-controlled consolidated insurance program created under |
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| 44 | 44 | | Chapter 151, Insurance Code, or another [other] method. If the |
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| 45 | 45 | | contractor enters into a contract with a governmental entity for a |
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| 46 | 46 | | public project, the coverage provided by the contractor and, if |
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| 47 | 47 | | applicable, by each subcontractor must be satisfactory to the |
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| 48 | 48 | | governing body of the governmental entity. |
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| 49 | 49 | | SECTION 3. The change in law made by this Act applies only |
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| 50 | 50 | | to a contract for building or construction that is entered into on |
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| 51 | 51 | | or after the effective date of this Act. A contract entered into |
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| 52 | 52 | | before the effective date of this Act is governed by the law in |
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| 53 | 53 | | effect on the date the contract was entered into, and the former law |
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| 54 | 54 | | is continued in effect for that purpose. |
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| 55 | 55 | | SECTION 4. This Act takes effect September 1, 2025. |
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