By: Ogden S.B. No. 487
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to bids for and awards of a state highway improvement
1-3 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 by rule
1-9 shall provide a method by which a bidder may submit a bid guaranty.
1-10 A rule may authorize the use of an electronic funds transfer, a
1-11 check, including an electronic check, a money order, an escrow
1-12 account, a trust account, a credit card issued by a financial
1-13 institution chartered by a state or the United States or by a
1-14 nationally recognized credit organization approved by the
1-15 department, or another method the commission determines to be
1-16 suitable. The department may require the payment of a discount or
1-17 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. Notwithstanding any other
1-23 law and as specified in the agreement, any available accumulated
1-24 interest and other income earned on money in an escrow account
1-25 shall be paid to the bidder or credited to the escrow account.
2-1 (c) The department shall deposit each administrative fee and
2-2 discount and service charge collected under this section to the
2-3 credit of the state highway fund.
2-4 (d) The commission's rules may not prohibit a bidder from
2-5 submitting a bid guaranty by use of a cashier's check, money order,
2-6 or teller's check.
2-7 Sec. 223.015. DEPOSIT AND INVESTMENT OF BID GUARANTY.
2-8 (a) The department may authorize the use of a trust account for
2-9 the purpose of providing a required bid guaranty.
2-10 (b) The guaranty shall be deposited in accordance with a
2-11 trust agreement with a state or nationally chartered financial
2-12 institution that has its main office or a branch office in this
2-13 state and that is selected by the bidder.
2-14 (c) The department shall prescribe a trust agreement that
2-15 protects the interests of this state.
2-16 (d) Interest earned under the trust agreement shall be paid
2-17 to the bidder unless specified otherwise in the trust agreement.
2-18 (e) The applicable financial institution is responsible for
2-19 all amounts resulting from the deposit of the guaranty until
2-20 released from that responsibility in accordance with the trust
2-21 agreement.
2-22 (f) The bidder shall pay all expenses incident to the
2-23 deposit and all charges imposed by the financial institution for
2-24 custody of the guaranties and forwarding of interest on a bid
2-25 guaranty. The expenses may not be included in the bid and are not
2-26 otherwise the responsibility of the state.
3-1 (g) On the request of a bidder, the financial institution
3-2 may reinvest the guaranty amounts in a certificate of deposit or
3-3 another similar instrument prescribed by the trust agreement. The
3-4 certificate of deposit or other instrument must be issued by a
3-5 state or nationally chartered financial institution that has its
3-6 main office or a branch office in this state.
3-7 (h) On request, the financial institution shall certify and
3-8 verify to the department the amount on deposit. The trust
3-9 agreement must specify the method for providing the required
3-10 information.
3-11 SECTION 2. Section 223.0041, Transportation Code, is amended
3-12 by adding Subsection (d) to read as follows:
3-13 (d) Unless by a two-thirds vote of the membership, the
3-14 commission may not award a contract to a bidder that has a total
3-15 amount under contract that equals more than 40 percent of the total
3-16 amount of highway construction under contract in the highway
3-17 district in which the highway project under bid is located.
3-18 SECTION 3. This Act takes effect immediately if it receives
3-19 a vote of two-thirds of all the members elected to each house, as
3-20 provided by Section 39, Article III, Texas Constitution. If this
3-21 Act does not receive the vote necessary for immediate effect, this
3-22 Act takes effect September 1, 2001.
3-23 COMMITTEE AMENDMENT NO. 1
3-24 Amend S.B. 487 by striking SECTION 2 of the bill and
3-25 renumbering the subsequent sections appropriately.
3-26 [SECTION 2. Section 223.0041, Transportation Code, is
4-1 amended by adding Subsection (d) to read as follows:]
4-2 [(d) Unless by a two-thirds vote of the membership, the
4-3 commission may not award a contract to a bidder that has a total
4-4 amount under contract that equals more than 40 percent of the total
4-5 amount of highway construction under contract in the highway
4-6 district in which the highway project under bid is located.]
4-7 Hamric