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AN ACT
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relating to limitations on the use of workers' compensation |
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insurance experience modifier values in soliciting and awarding |
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public construction contracts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter Z, Chapter 2252, Government Code, is |
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amended by adding Section 2252.909 to read as follows: |
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Sec. 2252.909. VOIDABLE CONTRACT PROVISION: EXPERIENCE |
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MODIFIER. (a) In this section: |
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(1) "Contract" means a contract awarded by a |
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governmental entity that is: |
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(A) a construction contract, as defined by |
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Section 272.0001, Business & Commerce Code; or |
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(B) a contract for constructing, altering, or |
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repairing a public building or carrying out or completing any |
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public work. |
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(2) "Contract solicitation" means a request for bids, |
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proposals, qualifications, offers, or other responses from |
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potential contractors under a contract. |
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(3) "Experience modifier" means a factor expressed as |
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a value that: |
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(A) is assigned to an employer seeking to |
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purchase a workers' compensation insurance policy in this state; |
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(B) affects the premium amount for the policy; |
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and |
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(C) is based on the employer's past loss |
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experience. |
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(4) "Governmental entity" means: |
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(A) a department, commission, board, office, or |
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other agency in the executive branch of state government created by |
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the state constitution or a state statute, including an institution |
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of higher education as defined by Section 61.003, Education Code; |
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or |
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(B) a political subdivision of this state, |
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including a municipality, county, or special purpose district. |
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(b) With respect to a contract: |
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(1) an offer to contract may not contain a term |
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requiring a person to have a specified experience modifier in order |
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to accept the offer; and |
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(2) a contract solicitation may not require a person |
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to have a specified experience modifier in order to submit a |
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response to the contract solicitation. |
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(c) A contract or an agreement collateral to or affecting a |
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contract may not require the contractor to have a specified |
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experience modifier. |
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(d) A contract solicitation, an offer, a contract, or an |
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agreement collateral to or affecting a contract that violates |
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Subsection (b) or (c) is voidable as against public policy. |
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SECTION 2. Section 2252.909, Government Code, as added by |
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this Act, applies only to a contract for which a governmental entity |
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first advertises or otherwise solicits offers on or after the |
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effective date of this Act. A contract for which a governmental |
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entity first advertised or otherwise solicited offers before the |
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effective date of this Act is governed by the law in effect on the |
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date the governmental entity first advertised or otherwise |
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solicited offers, and that law is continued in effect for that |
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purpose. |
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SECTION 3. This Act takes effect September 1, 2023. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 679 was passed by the House on April |
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25, 2023, by the following vote: Yeas 141, Nays 5, 1 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
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No. 679 on May 19, 2023, by the following vote: Yeas 133, Nays 8, 2 |
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present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 679 was passed by the Senate, with |
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amendments, on May 17, 2023, by the following vote: Yeas 31, Nays |
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0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |