1-1                                   AN ACT
 1-2     relating to a surety bond obtained for a public project and
 1-3     executed by a surety company and to related surety technical
 1-4     assistance services for certain entities.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 2166.258, Government Code, is amended by
 1-7     amending Subsection (b) and adding Subsection (c) to read as
 1-8     follows:
 1-9           (b)  In accordance with [Notwithstanding] Section 1, Chapter
1-10     87, Acts of the 56th Legislature, Regular Session, 1959 (Article
1-11     7.19-1, Vernon's Texas Insurance Code), the commission or other
1-12     agency may not require a contractor or subcontractor for any public
1-13     building or other construction contract to obtain a surety bond
1-14     from any specific insurance or surety company, agent, or broker.
1-15     To the extent consistent with that law, the commission or other
1-16     agency may require a contractor or subcontractor to meet part or
1-17     all of the bonding or insurance requirements for the project under
1-18     the negotiated arrangement [negotiated by the commission or other
1-19     agency].
1-20           (c)  For the purposes of this section, the General Services
1-21     Commission shall establish a program to provide surety technical
1-22     assistance services for the benefit of small businesses and
1-23     historically underutilized businesses.  The commission may contract
1-24     with insurance companies, surety companies, agents, or brokers to
1-25     implement this program.
 2-1           SECTION 2.  Section 2253.021, Government Code, is amended by
 2-2     adding Subsection (f) to read as follows:
 2-3           (f)  A governmental entity may not require a contractor for
 2-4     any public building or other construction contract to obtain a
 2-5     surety bond from any specific insurance or surety company, agent,
 2-6     or broker.
 2-7           SECTION 3.  (a)  This Act takes effect September 1, 2001.
 2-8           (b)  The change in law made by this Act applies only to a
 2-9     contract for a construction project that is made on or after the
2-10     effective date of this Act.  A contract that is made before the
2-11     effective date of this Act is governed by the law in effect at the
2-12     time the contract is made, and that law is continued in effect for
2-13     that purpose.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 1268 passed the Senate on
         April 26, 2001, by a viva-voce vote; and that the Senate concurred
         in House amendments on May 24, 2001, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 1268 passed the House, with
         amendments, on May 18, 2001, by a non-record vote.
                                             _______________________________
                                                Chief Clerk of the House
         Approved:
         _______________________________
                      Date
         _______________________________
                    Governor