By Hamric H.B. No. 2267
76R7376 E
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the payment and use of a bid guaranty for a state
1-3 highway improvement contract.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter A, Chapter 223, Transportation Code,
1-6 is amended by adding Sections 223.014 and 223.015 to read as
1-7 follows:
1-8 Sec. 223.014. BID GUARANTY. (a) The commission shall adopt
1-9 rules on the method by which a bidder may submit a bid guaranty.
1-10 The rules may authorize the use of electronic funds transfer,
1-11 checks, including electronic checks, money orders, escrow accounts,
1-12 trust accounts, and credit cards issued by a financial institution
1-13 chartered by a state or the United States or by a nationally
1-14 recognized credit organization approved by the department. The
1-15 department may require the payment of a discount or service charge
1-16 for the use of a credit card.
1-17 (b) The department may establish one or more escrow accounts
1-18 in the state highway fund for the prepayment of bid guaranties.
1-19 The bid guaranties and any administrative fees established by the
1-20 department for the administration of this subsection shall be
1-21 administered in accordance with an agreement containing terms and
1-22 conditions agreeable to the department. The department shall
1-23 deposit each administrative fee to the credit of the state highway
1-24 fund. The fees may be appropriated only to the department for
2-1 purposes of the administration of this subsection.
2-2 Sec. 223.015. DEPOSIT AND INVESTMENT OF BID GUARANTY. (a)
2-3 The department may authorize the use of a trust account for the
2-4 purpose of providing a required bid guaranty.
2-5 (b) The guaranty shall be deposited pursuant to a trust
2-6 agreement with a state or nationally chartered institution
2-7 domiciled in this state and selected by the bidder.
2-8 (c) The department shall prescribe a trust agreement that
2-9 protects the interests of the state.
2-10 (d) Interest earned under the trust agreement shall be paid
2-11 to the bidder unless specified otherwise in the trust agreement.
2-12 (e) The financial institution is responsible for all amounts
2-13 resulting from the deposit of the guaranty amounts until released
2-14 from that responsibility under the trust agreement.
2-15 (f) The bidder shall pay for expenses incident to the
2-16 deposit and all charges made by the financial institution for
2-17 custody of the guaranties and forwarding of interest on those
2-18 guaranties. Those expenses may not be included in any way in the
2-19 bid or otherwise be the responsibility of the state.
2-20 (g) The financial institution upon instruction by the bidder
2-21 may reinvest the guaranty amounts in a certificate of deposit or
2-22 other similar investment prescribed by the trust agreement. These
2-23 instruments must be issued by a state or nationally chartered
2-24 financial institution domiciled in this state.
2-25 (h) The financial institution must upon request by the
2-26 bidder provide certification and verification of the amount on
2-27 deposit to the department. The trust agreement shall specify the
3-1 method for providing the required information.
3-2 SECTION 2. The importance of this legislation and the
3-3 crowded condition of the calendars in both houses create an
3-4 emergency and an imperative public necessity that the
3-5 constitutional rule requiring bills to be read on three several
3-6 days in each house be suspended, and this rule is hereby suspended,
3-7 and that this Act take effect and be in force from and after its
3-8 passage, and it is so enacted.