BILL ANALYSIS

 

 

Senate Research Center                                                                                                        S.B. 621

80R5064 JTS-D                                                                                                                By: Carona

                                                                                                 Transportation & Homeland Security

                                                                                                                                              3/2/2007

                                                                                                                                              As Filed

 

 

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

 

Currently, the Texas Department of Transportation is statutorily required to pay bidders for their work proposals for a roadway project, even if they are not awarded the bid.   These payments, sometimes called "work-product" or "consolation" stipends, although intended to encourage a more competitive field of bidders, cost the state substantial sums of money.

 

As proposed, S.B. 621 eliminates consolation stipends for bidders who do not ultimately win a transportation project.

 

RULEMAKING AUTHORITY

 

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

 

SECTION BY SECTION ANALYSIS

 

SECTION 1.  Repealer:  Section 223.203(m), Transportation Code (regarding a requirement that the Texas Department of Transportation pay an unsuccessful private entity that submits a proposal for a roadway project a stipulated amount for the work product stated in the proposal and the rights to that product).

 

SECTION 2.  Effective date: upon passage or September 1, 2007.