By Ogden S.B. No. 487
77R4838 DWS-F
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 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
2-1 shall be paid to the bidder or credited to the escrow account.
2-2 (c) The department shall deposit each administrative fee and
2-3 discount and service charge collected under this section to the
2-4 credit of the state highway fund.
2-5 (d) The commission's rules may not prohibit a bidder from
2-6 submitting a bid guaranty by use of a cashier's check, money order,
2-7 or teller's check.
2-8 Sec. 223.015. DEPOSIT AND INVESTMENT OF BID GUARANTY. (a)
2-9 The department may authorize the use of a trust account for the
2-10 purpose of providing a required bid guaranty.
2-11 (b) The guaranty shall be deposited in accordance with a
2-12 trust agreement with a state or nationally chartered financial
2-13 institution that has its main office or a branch office in this
2-14 state and that is selected by the bidder.
2-15 (c) The department shall prescribe a trust agreement that
2-16 protects the interests of this state.
2-17 (d) Interest earned under the trust agreement shall be paid
2-18 to the bidder unless specified otherwise in the trust agreement.
2-19 (e) The applicable financial institution is responsible for
2-20 all amounts resulting from the deposit of the guaranty until
2-21 released from that responsibility in accordance with the trust
2-22 agreement.
2-23 (f) The bidder shall pay all expenses incident to the
2-24 deposit and all charges imposed by the financial institution for
2-25 custody of the guaranties and forwarding of interest on a bid
2-26 guaranty. The expenses may not be included in the bid and are not
2-27 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. This Act takes effect immediately if it receives
3-12 a vote of two-thirds of all the members elected to each house, as
3-13 provided by Section 39, Article III, Texas Constitution. If this
3-14 Act does not receive the vote necessary for immediate effect, this
3-15 Act takes effect September 1, 2001.