H.B. No. 576
  relating to the bid bond form of bid deposit for certain special
  district construction projects.
         SECTION 1.  Section 49.271(c), Water Code, is amended to
  read as follows:
         (c)  The district may adopt minimum criteria for the
  qualifications of bidders on its construction contracts and for
  sureties issuing payment and performance bonds. For construction
  contracts over $25,000, the district shall require a person who
  bids to submit a certified or cashier's check on a responsible bank
  in the state equal to at least two percent of the total amount of the
  bid, or a bid bond of at least two percent of the total amount of the
  bid issued by a surety legally authorized to do business in this
  state, as a good faith deposit to ensure execution of the contract.
  Notwithstanding any criteria adopted under this subsection, for a
  contract for more than $250,000, the district must accept a bid bond
  in the amount required by the district as a bid deposit if the bid
  bond meets the other requirements of this subsection. If the
  successful bidder fails or refuses to enter into a proper contract
  with the district, or fails or refuses to furnish the payment and
  performance bonds required by law, the bidder forfeits the deposit.
  The payment, performance, and bid bonding requirements of this
  subsection do not apply to a contract for the purchase of equipment,
  materials, or machinery not otherwise incorporated into a
  construction project.
         SECTION 2.  The change in law made by this Act applies only
  to a construction contract deposit made on or after the effective
  date of this Act. A deposit made before the effective date of this
  Act is subject to the law in effect on the date of the deposit, and
  that law is continued in effect for that purpose.
         SECTION 3.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2007.
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
         I certify that H.B. No. 576 was passed by the House on April
  12, 2007, by the following vote:  Yeas 144, Nays 0, 2 present, not
  Chief Clerk of the House   
         I certify that H.B. No. 576 was passed by the Senate on May
  17, 2007, by the following vote:  Yeas 31, Nays 0.
  Secretary of the Senate    
  APPROVED:  _____________________