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.