The bill, H.B. No. 480, amends Section 406.096 of the Labor Code to establish clearer requirements for workers' compensation insurance coverage for employees of building and construction contractors and subcontractors. It mandates that both contractors and subcontractors provide workers' compensation insurance for each of their employees. Additionally, governmental entities entering into building or construction contracts must require contractors to certify in writing that they provide such coverage for their employees and obtain similar certification from any subcontractors involved in the public project.

The bill also specifies that subcontractors must provide a certificate of insurance coverage to the general contractor, who will then relay this information to the governmental entity. Furthermore, it allows contractors and subcontractors to obtain coverage through various methods, including group plans or owner-controlled consolidated insurance programs, as long as the coverage is satisfactory to the governing body of the governmental entity. The changes will apply only to contracts entered into on or after the effective date of the Act, which is set for September 1, 2025.

Statutes affected:
Introduced: Labor Code 406.096 (Labor Code 406)