Texas § GV.2252.910 - VOIDABLE CONTRACT PROVISION

§ GV.2252.910. VOIDABLE CONTRACT PROVISION

VOIDABLE CONTRACT PROVISION: EXPERIENCE MODIFIER. (a) In this section: (1) "Contract" means a contract awarded by a governmental entity that is: (A) a construction contract, as defined by Section 272.0001 , Business & Commerce Code; or (B) a contract for constructing, altering, or repairing a public building or carrying out or completing any public work. (2) "Contract solicitation" means a request for bids, proposals, qualifications, offers, or other responses from potential contractors under a contract. (3) "Experience modifier" means a factor expressed as a value that: (A) is assigned to an employer seeking to purchase a workers' compensation insurance policy in this state; (B) affects the premium amount for the policy; and (C) is based on the employer's past loss experience. (4) "Governmental entity" means: (A) a department, commission, board, office, or other agency in the executive branch of state government created by the state constitution or a state statute, including an institution of higher education as defined by Section 61.003 , Education Code; or (B) a political subdivision of this state, including a municipality, county, or special purpose district. (b) With respect to a contract: (1) an offer to contract may not contain a term requiring a person to have a specified experience modifier in order to accept the offer; and (2) a contract solicitation may not require a person to have a specified experience modifier in order to submit a response to the contract solicitation. (c) A contract or an agreement collateral to or affecting a contract may not require the contractor to have a specified experience modifier. (d) A contract solicitation, an offer, a contract, or an agreement collateral to or affecting a contract that violates Subsection (b) or (c) is voidable as against public policy. Added by Acts 2023, 88th Leg., R.S., Ch. 389 (H.B. 679 ), Sec. 1, eff. September 1, 2023. Redesignated from Government Code, Section 2252.909 by Acts 2025, 89th Leg., R.S., Ch. 204 (H.B. 1620 ), Sec. 22.001(17), eff. September 1, 2025.