AN ACT REQUIRING THAT RESPONSES TO REQUESTS FOR BIDS FOR CONSTRUCTION CONTRACTS WITH STATE AGENCIES INCLUDE BID SECURITY FROM AN INDIVIDUAL AUTHORIZED TO SUBMIT THAT SECURITY, UNIT PRICE, AND A SIGNATURE OF THE INDIVIDUAL AUTHORIZED TO SUBMIT THE BID; AMENDING SECTION 18-2-302, MCA; AND PROVIDING AN APPLICABILITY DATE.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

Section 1. Section 18-2-302, MCA, is amended to read:

"18-2-302. Bid security -- waiver -- authority to submit. (1) Except as provided in subsection (2), each bid must be accompanied by bid security in the amount of 10% of the bid. The security may consist of cash, a cashier's check, a certified check, a bank money order, a certificate of deposit, a money market certificate, or a bank draft. The security must be:

(a) drawn and issued by a federally chartered or state-chartered bank or savings and loan association that is insured by or for which insurance is administered by the federal deposit insurance corporation;

(b) drawn and issued by a credit union insured by the national credit union share insurance fund; or

(c) a bid bond or bonds executed by a surety company authorized to do business in the state of Montana.

(2) The state or other governmental entity may waive the requirements for bid security on building or construction projects, as defined in 18-2-101, that cost less than $25,000.

(3) The bid security must be signed by an individual authorized to submit the security by the corporation or other business entity on whose behalf the security is submitted. If the request for bid or other specifications provided by the state or other governmental entity specify the form or content of the bid security, the security submitted must comply with the requirements of that specification."

Section 2. Construction bids -- minimum requirements -- effect of failure to comply. (1) Each bid communicated to a state agency for the construction of a building must contain or be accompanied by the following items that may not be waived by the state agency:

(a) bid security, as required by 18-2-302;

(b) the unit price for each item required to be bid by unit price; and

(c) the signature of an individual authorized to submit the bid and authorized by that submission to agree to perform the contract if the bid is accepted. If the request for bid or other specifications provided by the state agency specify the individual required to submit the bid, the bid must comply with that requirement.

(2) The unit price must be expressly stated in the bid and may not have to be calculated by the state agency by dividing the total of the unit prices by the number of units specified or required.

(3) A bid that does not include the items required by subsection (1) as part of or along with the bid may not be accepted by the state agency.

(4) The following definitions apply to this section:

(a) "Building" has the meaning provided in 18-2-101.

(b) "Construction" has the meaning provided in 18-2-101.

(c) "State agency" means a department, board, commission, authority, or office of a branch of state government, including the board of regents and the Montana university system.

(d) "Unit price" means the price of lumber, concrete, earth, pipe, or other construction item, activity, or material for which the price is required by the request for bids to be bid on the basis of that item, a linear foot, square foot, square yard, cubic yard, activity an hour or other measurement of time, or other standard unit of measurement for that material, item, or activity.

Section 3. Bids for contracts let by commission to contain security, unit price, and signature. Each bid communicated to the commission in response to a request for bids required by this part must comply with the unit price and signature requirements of [section 2] and the bid security requirements of 60-2-113 in order for the bid to be accepted.

Section 4. Codification instruction. (1) [Section 2] is intended to be codified as an integral part of Title 18, chapter 2, part 3, and the provisions of Title 18, chapter 2, part 3, apply to [section 2].

(2) [Section 3] is intended to be codified as an integral part of Title 60, chapter 2, part 1, and the provisions of Title 60, chapter 2, part 1, apply to [section 3].

Section 5. Applicability. [This act] applies to bids made in response to requests for bids made after October 1, 1999.

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I hereby certify that the within bill,

SB 0471, originated in the Senate.

Secretary of the Senate

President of the Senate

Signed this	day

of	, .

Speaker of the House

Signed this	day

of	, .

SENATE BILL NO. 471

INTRODUCED BY M. COLE

AN ACT REQUIRING THAT RESPONSES TO REQUESTS FOR BIDS FOR CONSTRUCTION CONTRACTS WITH STATE AGENCIES INCLUDE BID SECURITY FROM AN INDIVIDUAL AUTHORIZED TO SUBMIT THAT SECURITY, UNIT PRICE, AND A SIGNATURE OF THE INDIVIDUAL AUTHORIZED TO SUBMIT THE BID; AMENDING SECTION 18-2-302, MCA; AND PROVIDING AN APPLICABILITY DATE.