By Ogden S.B. No. 514
Substitute the following for S.B. No. 514:
By Alexander C.S.S.B. No. 514
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 including the bidder's retainage escrow account, trust accounts,
1-13 including the bidder's retainage trust account, and credit cards
1-14 issued by a financial institution chartered by a state or the
1-15 United States or by a nationally recognized credit organization
1-16 approved by the department. The department may require the payment
1-17 of a discount or service charge for the use of a credit card.
1-18 (b) The department may establish one or more escrow accounts
1-19 in the state highway fund for the prepayment of bid guaranties.
1-20 The bid guaranties and any fees the department establishes to
1-21 administer this subsection shall be administered in accordance with
1-22 an agreement approved by the department.
1-23 (c) The department shall deposit each administrative fee and
2-1 discount or service charge collected under this section in the
2-2 state treasury to the credit of the state highway fund.
2-3 (d) In the commission adopted rules, the bidder shall not be
2-4 precluded from submitting a bid guaranty to the department payable
2-5 by cashier's check, money order, or teller's check.
2-6 Sec. 223.015. DEPOSIT AND INVESTMENT OF BID GUARANTY.
2-7 (a) The department may authorize the use of a trust account for
2-8 the purpose of providing a required bid guaranty.
2-9 (b) The guaranty shall be deposited in accordance with a
2-10 trust agreement with a state or nationally chartered financial
2-11 institution that has its main office or a branch office in this
2-12 state and that is selected by the bidder.
2-13 (c) The department shall prescribe a trust agreement that
2-14 protects the interests of this state.
2-15 (d) Interest earned under the trust agreement shall be paid
2-16 to the bidder unless specified otherwise in the trust agreement.
2-17 (e) The applicable financial institution is responsible for
2-18 all amounts resulting from the deposit of the guaranty until
2-19 released from that responsibility in accordance with the trust
2-20 agreement.
2-21 (f) The bidder shall pay all expenses incident to the
2-22 deposit and all charges imposed by the financial institution for
2-23 custody of the guaranties and forwarding of interest on a bid
2-24 guaranty. The expenses may not be included in the bid and are not
2-25 otherwise the responsibility of the state.
2-26 (g) On the request of a bidder, the financial institution
2-27 may reinvest the guaranty amounts in a certificate of deposit or
3-1 another similar instrument prescribed by the trust agreement. The
3-2 certificate of deposit or other instrument must be issued by a
3-3 state or nationally chartered financial institution that has its
3-4 main office or a branch office in this state.
3-5 (h) On the request of a bidder, the financial institution
3-6 shall certify and verify to the department the amount on deposit.
3-7 The trust agreement must specify the method for providing the
3-8 required information.
3-9 SECTION 2. The importance of this legislation and the
3-10 crowded condition of the calendars in both houses create an
3-11 emergency and an imperative public necessity that the
3-12 constitutional rule requiring bills to be read on three several
3-13 days in each house be suspended, and this rule is hereby suspended,
3-14 and that this Act take effect and be in force from and after its
3-15 passage, and it is so enacted.