Texas SB 338: Relating to required provision of workers' compensation insurance coverage for employees of building and construction contractors and subcontractors.

Bill Text

By:AAEckhardt S.B.ANo.A338
A BILL TO BE ENTITLED
AN ACT
relating to required provision of workers’ compensation insurance
coverage for employees of building and construction contractors and
subcontractors.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTIONA1.AAThe heading to Section 406.096, Labor Code, is
amended to read as follows:
Sec.A406.096.AAREQUIRED PROVISION OF COVERAGE FOR EMPLOYEES
OF [CERTAIN] BUILDING OR CONSTRUCTION CONTRACTORS AND
SUBCONTRACTORS.
SECTIONA2.AASection 406.096, Labor Code, is amended by
amending Subsections (a), (b), and (c) and adding Subsection (a-1)
to read as follows:
(a)AAA contractor shall provide workers’ compensation
insurance coverage for each employee of the contractor. A
subcontractor shall provide workers’ compensation insurance
coverage for each employee of the subcontractor.
(a-1)AAA governmental entity that enters into a building or
construction contract shall require the contractor to:
(1)AAcertify in writing that the contractor provides
workers’ compensation insurance coverage for each employee of the
contractor employed on the public project; and
(2)AAif the contractor uses a subcontractor on the
public project, provide a written certificate, submitted by each
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subcontractor, that the subcontractor provides workers’
compensation insurance coverage for each employee of the
subcontractor employed on the public project.
(b)AAEach subcontractor on a [the] public project shall
provide the [such a] certificate described by Subsection (a-1)(2)
[relating to coverage of the subcontractor’s employees] to the
general contractor, who shall provide the subcontractor’s
certificate to the governmental entity.
(c)AAA contractor or subcontractor may provide [who has a
contract that requires] workers’ compensation insurance coverage
[may provide the coverage] through a group plan, an
owner-controlled consolidated insurance program created under
Chapter 151, Insurance Code, or another [other] method. If the
contractor enters into a contract with a governmental entity for a
public project, the coverage provided by the contractor and, if
applicable, by each subcontractor must be satisfactory to the
governing body of the governmental entity.
SECTIONA3.AAThe change in law made by this Act applies only
to a contract for building or construction that is entered into on
or after the effective date of this Act. A contract entered into
before the effective date of this Act is governed by the law in
effect on the date the contract was entered into, and the former law
is continued in effect for that purpose.
SECTIONA4.AAThis Act takes effect September 1, 2025.
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S.B.ANo.A338
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