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A BILL TO BE ENTITLED
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AN ACT
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relating to a collateral guarantee program to aid small contractors |
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in participating in public works projects. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2166.259, Government Code, is amended by |
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adding Subsection (b-4) to read as follows: |
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(b-4) As part of the small contractor participation |
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assistance program, the commission shall implement and administer a |
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collateral guarantee program through which the commission may |
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guarantee a working capital loan or surety bond to help enable a |
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small contractor to participate in a public works project. The |
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commission may provide a guarantee under this subsection only if |
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the commission determines that the guarantee will further the |
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development and diversification of the economy of this state or |
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help to eliminate unemployment or underemployment in this state. |
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The commission: |
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(1) shall adopt rules to administer this section; |
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(2) shall manage the collateral guarantee program as a |
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business initiative and economic development tool; |
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(3) shall adopt quality assurance and risk management |
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requirements for the program; |
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(4) may partner with a nonprofit entity to implement |
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this subsection; |
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(5) may establish a collateral guarantee fund and |
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accept gifts, grants, donations, and appropriated money for the |
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fund; and |
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(6) may include a linked deposit interest rate |
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reduction program in the collateral guarantee program. |
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SECTION 2. This Act takes effect September 1, 2009. |