HB 875

relating to workers' compensation insurance coverage and bid
bonding requirements for small municipal construction projects.
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.  (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)  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
(c)  For the purpose of determining the contracted amount of
a construction project under Subsection (b), 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
SECTION 3.  This Act takes effect September 1, 2025.