Texas lawmakers are considering a bill that would ban the use of experience modifiers when awarding contracts for public construction projects.
HB 679, introduced Tuesday, addresses such ratings — known as “experience mods” — that are calculated by taking into account a company’s workplace safety and loss prevention history.
Experience models assigned to employers when purchasing workers’ compensation coverage, which affects premiums, have been taken into account when a project is awarded to a contractor. This bill would end the common practice in Texas.
The bill states that an offer of a contract on a project may not require a specific mod to accept the offer and that the contract solicitation may not require a contractor to have a specified mod of experience when bidding.
In other news, the Texas Division of Workers̵7; Compensation announced Wednesday that the National Council on Compensation Insurance is proposing changes to its experience rating methodology that it says would make the calculations more accurate.