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.