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89(R) HB 875 - House Committee Report version - Bill Text
89R26571 SCL-D
By: Spiller
H.B. No. 875
Substitute the following for H.B. No. 875:
By: Button
C.S.H.B. No. 875
A BILL TO BE ENTITLED
AN ACT
relating to workers' compensation insurance coverage and bid
bonding requirements for small municipal construction projects for
certain municipalities.
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 FOR CERTAIN
MUNICIPALITIES. (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)
This section applies only to a municipality with a
population of less than 20,000.
(c)
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.
(d)
For the purpose of determining the contracted amount of
a construction project under Subsection (c), 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.