Bill Text: TX SB338 | 2025-2026 | 89th Legislature | Introduced

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Bill Title: Relating to required provision of workers' compensation insurance coverage for employees of building and construction contractors and subcontractors.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-11-13 - Filed [SB338 Detail]

Download: Texas-2025-SB338-Introduced.html

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89R125 KKR-F
By: Eckhardt S.B. No. 338

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:
SECTION 1. The heading to Section 406.096, Labor Code, is
amended to read as follows:
Sec. 406.096. REQUIRED PROVISION OF COVERAGE FOR EMPLOYEES
OF [CERTAIN] BUILDING OR CONSTRUCTION CONTRACTORS AND
SUBCONTRACTORS.
SECTION 2. Section 406.096, Labor Code, is amended by
amending Subsections (a), (b), and (c) and adding Subsection (a-1)
to read as follows:
(a) A 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) A governmental entity that enters into a building or
construction contract shall require the contractor to:
(1) certify in writing that the contractor provides
workers' compensation insurance coverage for each employee of the
contractor employed on the public project; and
(2) if the contractor uses a subcontractor on the
public project, provide a written certificate, submitted by each
subcontractor, that the subcontractor provides workers'
compensation insurance coverage for each employee of the
subcontractor employed on the public project.
(b) Each 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) A 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.
SECTION 3. The 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.
SECTION 4. This Act takes effect September 1, 2025.