Relating to workers' compensation insurance coverage and bid bonding requirements for small municipal construction projects.

SB 1890 exempts Texas municipalities from requiring workers' compensation insurance coverage and performance bonds for construction projects under 1% of their most recent budget. This applies directly to small municipal construction projects (defined as work at one location within 12 months) and affects contractors working on such projects. The bill prohibits municipalities from aggregating multiple projects to circumvent the exemption, ensuring the 1% threshold applies to each individual project. The law takes effect September 1, 2025, applying only to contracts entered into on or after that date.