TX House Supports Bill To Correct 'Entergy' Decision

Houston, TX (CompNewsNetwork) - The Supreme Court of Texas heard the case of Entergy v. John Summers in January 2007 and entered an opinion later that year. 

H.B. 1657 clarifies the definitions of "general contractor" and "subcontractor" for purposes of a contractor's workers' compensation coverage.

It is the Texas's House opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

H.B. 1657 amends the Labor Code to clarify the definition of "general contractor," as that term relates to workers' compensation insurance coverage regarding certain independent contractors, to mean a person who undertakes to procure the performance of work or a service only for the benefit of another and the definition of "subcontractor" to mean a person who contracts with a general contractor to perform all or any part of the work or services that the general contractor has contracted with another party, rather than undertaken, to perform.

With two members absent, the Business and Industry Committee voted 9-0 to send H.B. 1657 to the Calendars Committee to be scheduled for a vote in the full House. Giddings says Business and Industry Committee members are in agreement that the Supreme Court "overreached" in its 6-3 ruling in Entergy.

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