(a) The following words and terms, when used in this
rule, shall have the following meanings, unless the context clearly
indicates otherwise. Terms not defined in this rule shall have the
meaning defined in the Texas Labor Code, if so defined.
(1) Certificate of coverage (certificate)--A copy of
a certificate of insurance, a certificate of authority to self-insure
issued by the division, or a workers' compensation coverage agreement
(DWC Form-81, DWC Form-82, DWC Form-83, or DWC Form-84), showing statutory
workers' compensation insurance coverage for the person's or entity's
employees (including those subject to a coverage agreement) providing
services on a project, for the duration of the project.
(2) Building or construction--Has the meaning defined
in the Texas Labor Code, §406.096(e)(1).
(3) Contractor--A person bidding for or awarded a building
or construction project by a governmental entity.
(4) Coverage--Workers' compensation insurance meeting
the statutory requirements of the Texas Labor Code, §401.011(44).
(5) Coverage agreement--A written agreement on DWC
Form-81, DWC Form-82, DWC Form-83, or DWC Form-84, filed with the
Division of Workers' Compensation which establishes a relationship
between the parties for purposes of the Texas Workers' Compensation
Act, pursuant to the Texas Labor Code, Chapter 406, Subchapters F
and G, as one of employer/employee and establishes who will be responsible
for providing workers' compensation coverage for persons providing
services on the project.
(6) Duration of the project--Includes the time from
the beginning of work on the project until the work on the project
has been completed and accepted by the governmental entity.
(7) Persons providing services on the project ("subcontractor"
in §406.096 of the Act)--With the exception of persons excluded
under subsections (h) and (i) of this section, includes all persons
or entities performing all or part of the services the contractor
has undertaken to perform on the project, regardless of whether that
person contracted directly with the contractor and regardless of whether
that person has employees. This includes but is not limited to independent
contractors, subcontractors, leasing companies, motor carriers, owner-operators,
employees of any such entity, or employees of any entity furnishing
persons to perform services on the project. "Services" includes but
is not limited to providing, hauling, or delivering equipment or materials,
or providing labor, transportation, or other service related to a
project. "Services" does not include activities unrelated to the project,
such as food/beverage vendors, office supply deliveries, and delivery
of portable toilets.
(8) Project--Includes the provision of all services
related to a building or construction contract for a governmental
entity.
(b) Providing or causing to be provided a certificate
of coverage pursuant to this rule is a representation by the insured
that all employees of the insured who are providing services on the
project are covered by workers' compensation coverage, that the coverage
is based on proper reporting of classification codes and payroll amounts,
and that all coverage agreements have been filed with the appropriate
insurance carrier or, in the case of a self-insured, with the division.
Providing false or misleading certificates of coverage, or failing
to provide or maintain required coverage, or failing to report any
change that materially affects the provision of coverage may subject
the contractor or other person providing services on the project to
administrative penalties, criminal penalties, civil penalties, or
other civil actions.
(c) A governmental entity that enters into a building
or construction contract on a project shall:
(1) include in the bid specifications, all the provisions
of paragraph (7) of this subsection, using the language required by
paragraph (7) of this subsection;
(2) as part of the contract, using the language required
by paragraph (7) of this subsection, require the contractor to perform
as required in subsection (d) of this section;
(3) obtain from the contractor a certificate of coverage
for each person providing services on the project, prior to that person
beginning work on the project;
(4) obtain from the contractor a new certificate of
coverage showing extension of coverage:
(A) before the end of the current coverage period,
if the contractor's current certificate of coverage shows that the
coverage period ends during the duration of the project; and
(B) no later than seven days after the expiration of
the coverage for each other person providing services on the project
whose current certificate shows that the coverage period ends during
the duration of the project;
(5) retain certificates of coverage on file for the
duration of the project and for three years thereafter;
(6) provide a copy of the certificates of coverage
to the division upon request and to any person entitled to them by
law; and
(7) use the language contained in the following figure
for bid specifications and contracts, without any additional words
or changes, except those required to accommodate the specific document
in which they are contained or to impose stricter standards of documentation:
Attached Graphic
(d) A contractor shall:
(1) provide coverage for its employees providing services
on a project, for the duration of the project based on proper reporting
of classification codes and payroll amounts and filing of any coverage
agreements;
(2) provide a certificate of coverage showing workers'
compensation coverage to the governmental entity prior to beginning
work on the project;
(3) provide the governmental entity, prior to the end
of the coverage period, a new certificate of coverage showing extension
of coverage, if the coverage period shown on the contractor's current
certificate of coverage ends during the duration of the project;
(4) obtain from each person providing services on a
project, and provide to the governmental entity:
(A) a certificate of coverage, prior to that person
beginning work on the project, so the governmental entity will have
on file certificates of coverage showing coverage for all persons
providing services on the project; and
(B) no later than seven days after receipt by the contractor,
a new certificate of coverage showing extension of coverage, if the
coverage period shown on the current certificate of coverage ends
during the duration of the project;
(5) retain all required certificates of coverage on
file for the duration of the project and for one year thereafter;
(6) notify the governmental entity in writing by certified
mail or personal delivery, within ten days after the contractor knew
or should have known, of any change that materially affects the provision
of coverage of any person providing services on the project;
(7) post a notice on each project site informing all
persons providing services on the project that they are required to
be covered, and stating how a person may verify current coverage and
report failure to provide coverage. This notice does not satisfy other
posting requirements imposed by the Act or other division rules. This
notice must be printed with a title in at least 30 point bold type
and text in at least 19 point normal type, and shall be in both English
and Spanish and any other language common to the worker population.
The text for the notices shall be the following text provided by the
division on the sample notice, without any additional words or changes:
Attached Graphic
(8) contractually require each person with whom it
contracts to provide services on a project to:
(A) provide coverage based on proper reporting of classification
codes and payroll amounts and filing of any coverage agreements for
all of its employees providing services on the project, for the duration
of the project;
(B) provide a certificate of coverage to the contractor
prior to that person beginning work on the project;
(C) include in all contracts to provide services on
the project the language in subsection (e)(3) of this section;
(D) provide the contractor, prior to the end of the
coverage period, a new certificate of coverage showing extension of
coverage, if the coverage period shown on the current certificate
of coverage ends during the duration of the project;
(E) obtain from each other person with whom it contracts,
and provide to the contractor:
(i) a certificate of coverage, prior to the other person
beginning work on the project; and
Cont'd... |