Texas Senate Bill SB731

Texas 2011 - 82nd Regular

• Out of Senate Committee: 3/28/11
• Voted on by Senate: 3/31/11
• Out of House Committee: 4/26/11
• Voted on by House: 5/24/11
• Governor Action: 6/17/11
• Refer: 4/4/11
• Enrolled: 5/27/11
• Passed: 6/17/11

Caption

Relating to the attorney general's legal sufficiency review of a comprehensive development agreement.

Impact

The bill's implementation will standardize the legal review process for toll projects across Texas. By requiring an official analysis from the attorney general, the bill aims to protect public interest by ensuring that such agreements meet legal standards. The examination fee, however, raises the issue of additional costs for public entities looking to enter comprehensive development agreements. Advocates believe this will enhance accountability and transparency in major public infrastructure projects, while critics may argue that it could deter smaller entities from engaging due to the financial burden imposed by the examination fee.

Summary

SB731 relates to the attorney general's review of comprehensive development agreements involving toll project entities. The bill amends Section 371.051 of the Transportation Code to establish a requirement for the attorney general to conduct a legal sufficiency review of proposed agreements before they can proceed. It introduces a nonrefundable examination fee that toll project entities must pay, alongside submitting a complete transcript of the proceedings related to the proposed agreement. This legal review process is intended to ensure compliance with state laws before significant financial commitments are made in toll projects.

Contention

Key points of contention regarding SB731 revolve around the financial implications of the attorney general's legal sufficiency review. Proponents assert that requiring an examination process mitigates risks associated with poorly constructed agreements, thereby averting potential financial losses for the state. Conversely, those against the bill may feel that placing an additional fee on public entities complicates the procurement process, particularly in a challenging economic environment. The amendment also reflects a broader dialogue about the role of state oversight in local economic development projects.