By:  Truan, West                                       S.B. No. 157
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the form of a proposal guaranty for a contract of the
 1-3     Texas Department of Transportation.
 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 Section 223.014 to read as follows:
 1-7           Sec. 223.014.  FORM OF PROPOSAL GUARANTY.  (a)  If the
 1-8     department by rule requires a proposal guaranty as a condition of
 1-9     bidding for a contract, the guaranty may be in the form of:
1-10                 (1)  a cashier's check or money order drawn on a
1-11     financial entity specified by the department;
1-12                 (2)  a bid bond issued by a surety authorized to do
1-13     business in this state; or
1-14                 (3)  any other method determined to be suitable by the
1-15     department.
1-16           SECTION 2.  This Act takes effect January 1, 2002.