By Longoria H.B. No. 2962
77R6978 BDH-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to obtaining bonds and insurance required for certain
1-3 state construction projects.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 2166.258, Government Code, is amended to
1-6 read as follows:
1-7 Sec. 2166.258. COMMON SURETY OR INSURER. (a) The
1-8 commission and each [or an] agency whose project is exempted from
1-9 all or part of this chapter under Section 2166.003 shall jointly or
1-10 separately enter into a competitively bid contract [may negotiate
1-11 an arrangement advantageous to the state] with a surety or an
1-12 insurer, as appropriate, authorized to do business in this state
1-13 and with experience in surety bond support services, under which
1-14 the surety or insurer shall aggressively assist historically
1-15 underutilized businesses and small businesses to obtain the bonds
1-16 or insurance required to qualify for a contract or subcontract on a
1-17 project administered by the commission or other agency [to furnish
1-18 bonds, insurance, or both that a contractor or subcontractor is
1-19 required to execute or carry to receive a contract or subcontract
1-20 on a project administered by the commission or other agency].
1-21 (b) Notwithstanding Section 1, Chapter 87, Acts of the 56th
1-22 Legislature, Regular Session, 1959 (Article 7.19-1, Vernon's Texas
1-23 Insurance Code), the commission and an [or other] agency whose
1-24 project is exempted from all or part of this chapter under Section
2-1 2166.003 shall [may] require a contractor or subcontractor to meet
2-2 part or all of the bonding or insurance requirements for the
2-3 project under the contract entered into under Subsection (a)
2-4 [arrangement negotiated] by the commission or other agency.
2-5 (c) A contract under Subsection (a) must:
2-6 (1) be renewed at least once each state fiscal
2-7 biennium;
2-8 (2) require the surety or insurer to aggressively take
2-9 steps to furnish assistance for obtaining bonds, insurance, or both
2-10 to historically underutilized businesses and small businesses; and
2-11 (3) provide that the surety's or insurer's performance
2-12 under the contract will be evaluated at least in part on the basis
2-13 of the number of historically underutilized businesses, small
2-14 businesses, and other businesses that obtain the required bonds,
2-15 insurance, or both from the contractor.
2-16 (d) The commission or other state agency entering into a
2-17 contract with a surety or insurer under Subsection (a) shall
2-18 conduct annual program audits and performance reviews under the
2-19 contract.
2-20 SECTION 2. This Act takes effect September 1, 2001. The
2-21 change in law made by this Act does not affect a contract entered
2-22 into between a state agency and a surety or an insurer under
2-23 Section 2166.258, Government Code, that is in force on that date
2-24 during the term of the contract, but the renewal of the contract
2-25 must comply with Section 2166.258, Government Code, as amended by
2-26 this Act.