81R11412 BEF-D
By: Lucio III H.B. No. 4646
A BILL TO BE ENTITLED
AN ACT
relating to a collateral guarantee program to aid small contractors
in participating in public works projects.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2166.259, Government Code, is amended by
adding Subsection (b-4) to read as follows:
(b-4) As part of the small contractor participation
assistance program, the commission shall implement and administer a
collateral guarantee program through which the commission may
guarantee a working capital loan or surety bond to help enable a
small contractor to participate in a public works project. The
commission may provide a guarantee under this subsection only if
the commission determines that the guarantee will further the
development and diversification of the economy of this state or
help to eliminate unemployment or underemployment in this state.
The commission:
(1) shall adopt rules to administer this section;
(2) shall manage the collateral guarantee program as a
business initiative and economic development tool;
(3) shall adopt quality assurance and risk management
requirements for the program;
(4) may partner with a nonprofit entity to implement
this subsection;
(5) may establish a collateral guarantee fund and
accept gifts, grants, donations, and appropriated money for the
fund; and
(6) may include a linked deposit interest rate
reduction program in the collateral guarantee program.
SECTION 2. This Act takes effect September 1, 2009.