1-1 AN ACT
1-2 relating to bids for a state 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 A rule may authorize the use of an electronic funds transfer, a
1-10 check, including an electronic check, a money order, an escrow
1-11 account, a trust account, a credit card issued by a financial
1-12 institution chartered by a state or the United States or by a
1-13 nationally recognized credit organization approved by the
1-14 department, or another method the commission determines to be
1-15 suitable. The department may require the payment of a discount or
1-16 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. Notwithstanding any other
1-22 law and as specified in the agreement, any available accumulated
1-23 interest and other income earned on money in an escrow account
1-24 shall be paid to the bidder or credited to the escrow account.
1-25 (c) The department shall deposit each administrative fee and
2-1 discount and service charge collected under this section to the
2-2 credit of the state highway fund.
2-3 (d) The commission's rules may not prohibit a bidder from
2-4 submitting a bid guaranty by use of a cashier's check, money order,
2-5 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
3-1 may reinvest the guaranty amounts in a certificate of deposit or
3-2 another similar instrument prescribed by the trust agreement. The
3-3 certificate of deposit or other instrument must be issued by a
3-4 state or nationally chartered financial institution that has its
3-5 main office or a branch office in this state.
3-6 (h) On request, the financial institution shall certify and
3-7 verify to the department the amount on deposit. The trust
3-8 agreement must specify the method for providing the required
3-9 information.
3-10 SECTION 2. This Act takes effect immediately if it receives
3-11 a vote of two-thirds of all the members elected to each house, as
3-12 provided by Section 39, Article III, Texas Constitution. If this
3-13 Act does not receive the vote necessary for immediate effect, this
3-14 Act takes effect September 1, 2001.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 487 passed the Senate on
March 20, 2001, by the following vote: Yeas 29, Nays 1, one
present, not voting; and that the Senate concurred in House
amendment on April 25, 2001, by the following vote: Yeas 30,
Nays 0, one present, not voting.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 487 passed the House, with
amendment, on April 20, 2001, by the following vote: Yeas 142,
Nays 0, two present, not voting.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor