By: Ogden S.B. No. 514
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the payment and use of a bid guaranty for a state
1-2 highway improvement contract.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subchapter A, Chapter 223, Transportation Code,
1-5 is amended by adding Sections 223.014 and 223.015 to read as
1-6 follows:
1-7 Sec. 223.014. BID GUARANTY. (a) The commission by rule
1-8 shall provide a method by which a bidder may submit a bid guaranty.
1-9 The rules may authorize the use of electronic funds transfer,
1-10 checks, including electronic checks, money orders, escrow accounts,
1-11 including the bidder's retainage escrow account, trust accounts,
1-12 including the bidder's retainage trust account, and credit cards
1-13 issued by a financial institution chartered by a state or the
1-14 United States or by a nationally recognized credit organization
1-15 approved by the department. The department may require the payment
1-16 of a discount or service charge 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 fees the department establishes to
1-20 administer this subsection shall be administered in accordance with
1-21 an agreement approved by the department. The department shall
1-22 deposit each administrative fee to the credit of the state highway
1-23 fund. Money credited to the state highway fund from fees collected
1-24 under this subsection may be appropriated only to the department to
2-1 administer this subsection.
2-2 Sec. 223.015. DEPOSIT AND INVESTMENT OF BID GUARANTY.
2-3 (a) The department may authorize the use of a trust account for
2-4 the purpose of providing a required bid guaranty.
2-5 (b) The guaranty shall be deposited in accordance with a
2-6 trust agreement with a state or nationally chartered financial
2-7 institution 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 this 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 applicable financial institution is responsible for
2-13 all amounts resulting from the deposit of the guaranty until
2-14 released from that responsibility in accordance with the trust
2-15 agreement.
2-16 (f) The bidder shall pay all expenses incident to the
2-17 deposit and all charges imposed by the financial institution for
2-18 custody of the guaranties and forwarding of interest on a bid
2-19 guaranty. The expenses may not be included in the bid and are not
2-20 otherwise the responsibility of the state.
2-21 (g) On the request of a bidder, the financial institution
2-22 may reinvest the guaranty amounts in a certificate of deposit or
2-23 another similar instrument prescribed by the trust agreement. The
2-24 certificate of deposit or other instrument must be issued by a
2-25 state or nationally chartered financial institution domiciled in
2-26 this state.
3-1 (h) On the request of a bidder, the financial institution
3-2 shall certify and verify to the department the amount on deposit.
3-3 The trust agreement must specify the method for providing the
3-4 required information.
3-5 SECTION 2. The importance of this legislation and the
3-6 crowded condition of the calendars in both houses create an
3-7 emergency and an imperative public necessity that the
3-8 constitutional rule requiring bills to be read on three several
3-9 days in each house be suspended, and this rule is hereby suspended,
3-10 and that this Act take effect and be in force from and after its
3-11 passage, and it is so enacted.