BILL ANALYSIS
Senate Research Center S.B. 621
80R5064 JTS-D By: Carona
Transportation & Homeland Security
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.