Texas HB875 exempts small municipal construction projects from workers' compensation and bid bonding requirements.

Texas HB875 amends the Local Government Code to exempt certain small municipal construction projects from workers' compensation insurance and bid bonding requirements. Specifically, for projects contracted for less than one percent of a municipality's most recently adopted budget, municipalities are not required to ensure contractors have workers' compensation insurance or obtain a performance bond. The bill defines a project as all work completed at one location within 12 months. The changes apply to contracts entered into after the bill's effective date of September 1, 2025.

Texas HB875 exempts small municipal construction projects from workers' compensation and bid bonding requirements.

Texas HB875 amends the Local Government Code to exempt certain small municipal construction projects from workers' compensation insurance and bid bonding requirements. Specifically, for projects contracted for less than one percent of a municipality's most recently adopted budget, municipalities are not required to ensure contractors have workers' compensation insurance or obtain a performance bond. The bill defines a project as all work completed at one location within 12 months. The changes apply to contracts entered into after the bill's effective date of September 1, 2025.