| 1 | 1 | | 81R11412 BEF-D |
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| 2 | 2 | | By: Lucio S.B. No. 2188 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to a collateral guarantee program to aid small contractors |
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| 8 | 8 | | in participating in public works projects. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 2166.259, Government Code, is amended by |
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| 11 | 11 | | adding Subsection (b-4) to read as follows: |
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| 12 | 12 | | (b-4) As part of the small contractor participation |
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| 13 | 13 | | assistance program, the commission shall implement and administer a |
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| 14 | 14 | | collateral guarantee program through which the commission may |
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| 15 | 15 | | guarantee a working capital loan or surety bond to help enable a |
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| 16 | 16 | | small contractor to participate in a public works project. The |
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| 17 | 17 | | commission may provide a guarantee under this subsection only if |
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| 18 | 18 | | the commission determines that the guarantee will further the |
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| 19 | 19 | | development and diversification of the economy of this state or |
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| 20 | 20 | | help to eliminate unemployment or underemployment in this state. |
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| 21 | 21 | | The commission: |
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| 22 | 22 | | (1) shall adopt rules to administer this section; |
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| 23 | 23 | | (2) shall manage the collateral guarantee program as a |
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| 24 | 24 | | business initiative and economic development tool; |
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| 25 | 25 | | (3) shall adopt quality assurance and risk management |
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| 26 | 26 | | requirements for the program; |
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| 27 | 27 | | (4) may partner with a nonprofit entity to implement |
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| 28 | 28 | | this subsection; |
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| 29 | 29 | | (5) may establish a collateral guarantee fund and |
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| 30 | 30 | | accept gifts, grants, donations, and appropriated money for the |
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| 31 | 31 | | fund; and |
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| 32 | 32 | | (6) may include a linked deposit interest rate |
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| 33 | 33 | | reduction program in the collateral guarantee program. |
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| 34 | 34 | | SECTION 2. This Act takes effect September 1, 2009. |
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