Gov't Code Section 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 (Definition), 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 (Definitions), 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.
(b)A lease between a governmental entity and another person regarding public property must contain lease terms requiring the person to:
(1)include in each contract for the construction, alteration, or repair of an improvement to the leased property a condition that the contractor:
(A)execute a payment bond that conforms to Subchapter I (Bond), Chapter 53 (Mechanic’s, Contractor’s, or Materialman’s Lien), Property Code; and
(B)execute a performance bond in an amount equal to the amount of the contract for the protection of the governmental entity and conditioned on the faithful performance of the contractor’s work in accordance with the plans, specifications, and contract documents; and
(2)provide to the governmental entity a notice of commencement consistent with this section at least 90 days before the date the construction, alteration, or repair of any improvement to the leased property begins.
(c)A notice of commencement under Subsection (b) must:
(1)identify the public property where the work will be performed;
(2)describe the work to be performed;
(3)state the total cost of the work to be performed;
(4)include copies of the performance and payment bonds required under Subsection (b); and
(5)include a written acknowledgment signed by the contractor stating that copies of the required performance and payment bonds will be provided to all subcontractors not later than the fifth day after the date a subcontract is executed.
(d)On or before the 10th day after the date a governmental entity receives a notice of commencement for the construction, alteration, or repair of an improvement to leased property required under Subsection (b)(2), the governmental entity may notify the leaseholder that the construction, alteration, or repair may not proceed.
(e)A person commits an offense if the person materially misrepresents information in a notice of commencement. An offense under this subsection is a Class A misdemeanor.
Section 2252.909 — Voidable Contract Provision: Experience Modifier,
https://statutes.capitol.texas.gov/Docs/GV/htm/GV.2252.htm#2252.909 (accessed Dec. 9, 2023).