Bill Text: TX HB679 | 2023-2024 | 88th Legislature | Enrolled
Bill Title: Relating to limitations on the use of workers' compensation insurance experience modifier values in soliciting and awarding public construction contracts.
Spectrum: Moderate Partisan Bill (Republican 5-1)
Status: (Passed) 2023-06-09 - Effective on 9/1/23 [HB679 Detail]
Download: Texas-2023-HB679-Enrolled.html
H.B. No. 679 |
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relating to limitations on the use of workers' compensation | ||
insurance experience modifier values in soliciting and awarding | ||
public construction contracts. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter Z, Chapter 2252, Government Code, is | ||
amended by adding Section 2252.909 to read as follows: | ||
Sec. 2252.909. 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. | ||
SECTION 2. Section 2252.909, Government Code, as added by | ||
this Act, applies only to a contract for which a governmental entity | ||
first advertises or otherwise solicits offers on or after the | ||
effective date of this Act. A contract for which a governmental | ||
entity first advertised or otherwise solicited offers before the | ||
effective date of this Act is governed by the law in effect on the | ||
date the governmental entity first advertised or otherwise | ||
solicited offers, and that law is continued in effect for that | ||
purpose. | ||
SECTION 3. This Act takes effect September 1, 2023. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 679 was passed by the House on April | ||
25, 2023, by the following vote: Yeas 141, Nays 5, 1 present, not | ||
voting; and that the House concurred in Senate amendments to H.B. | ||
No. 679 on May 19, 2023, by the following vote: Yeas 133, Nays 8, 2 | ||
present, not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 679 was passed by the Senate, with | ||
amendments, on May 17, 2023, by the following vote: Yeas 31, Nays | ||
0. | ||
______________________________ | ||
Secretary of the Senate | ||
APPROVED: __________________ | ||
Date | ||
__________________ | ||
Governor |