HBA-NLM C.S.H.B. 3133 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 3133
By: Chisum
County Affairs
3/27/1999
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Currently, a political subdivision is required to extend workers'
compensation benefits to its employees by becoming a self-insurer,
providing insurance under a workers' compensation insurance policy, or by
entering into an interlocal agreement with other political subdivisions
providing for self-insurance. The Stratford Hospital District operates
without being a subscriber to the worker's compensation insurance program
and has covered employee benefits from district resources.  The cost to the
district has been estimated to be less than one-tenth the cost of the
insurance program. There is concern that the costs of subscription are
prohibitive and may endanger the ability of the hospital district to
continue a viable nursing facility. C.S.H.B. 3133 provides that contracts
for construction or purchases involving the expenditure of more than
$5,000, rather than $2,000, may be made only after advertising.  This bill
requires for the provisions of Chapter 2253 (Public Work Performance and
Payment Bonds), Government Code, to apply to construction contracts let by
the district. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 10, Chapter 470, Acts of the 61st Legislature,
Regular Session, 1969, as follows: 

Sec. 10.  Provides that contracts for construction or purchases involving
the expenditure of more than $15,000, rather than $2,000, may be made only
after advertising in the manner provided by Chapter 252 (Purchasing and
Contracting Authority of Municipalities), Local Government Code, rather
than Chapter 163, Acts of the 42nd Legislature, Regular Session, 1931, as
amended by Article 2368a (Bond and Warrant Law of 1931), V.T.C.S.  Requires
the provisions of Chapter 2253 (Public Work Performance and Payment Bonds),
Government Code, rather than Article 5160 (Contractors Performance and
Payment Bonds), V.T.C.S., apply to construction contracts let by the
district. 

SECTION 2.  Effective date: September 1, 1999.

SECTION 3.  Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 3133 modifies the original by deleting proposed SECTION 2, which
provided that the district is exempt from Section 504.011 (Method of
Providing Coverage), Labor Code, to the extent that the section requires
the district to provide worker's compensation benefits to its employees. 

C.S.H.B. 3133 modifies the original by redesignating proposed SECTIONS 3
and 4 to SECTIONS 2 and 3.