By Denny                                               H.B. No. 902
       74R1346 JRD-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the privatization of highway maintenance work by the
    1-3  Texas Department of Transportation.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 2, Article 6674g, Revised Statutes, is
    1-6  amended to read as follows:
    1-7        Sec. 2.  Privatization of Maintenance Contracts.  (a)  <Not
    1-8  less than 30 percent of the dollar amount of expenditures from the
    1-9  fiscal year ending August 31, 1992, by the department for
   1-10  maintenance projects shall be expended through contracts awarded by
   1-11  the competitive bidding process.>
   1-12        <(b)  Not less than 35 percent of the dollar amount of
   1-13  expenditures from the fiscal year ending August 31, 1993, by the
   1-14  department for maintenance projects shall be expended through
   1-15  contracts awarded by the competitive bidding process.>
   1-16        <(c)  Not less than 40 percent of the dollar amount of
   1-17  expenditures from the fiscal year ending August 31, 1994, by the
   1-18  department for maintenance projects shall be expended through
   1-19  contracts awarded by the competitive bidding process.>
   1-20        <(d)  Not less than 45 percent of the dollar amount of
   1-21  expenditures from the fiscal year ending August 31, 1995, by the
   1-22  department for maintenance projects shall be expended through
   1-23  contracts awarded by the competitive bidding process.>
   1-24        <(e)>  Not less than 50 percent of the dollar amount of
    2-1  expenditures by the department for maintenance projects for the
    2-2  fiscal year ending August 31, 1996, and for all subsequent fiscal
    2-3  years shall be expended through contracts awarded by the
    2-4  competitive bidding process to in-state or out-of-state bidders.
    2-5        (b) <(f)>  Funds expended for maintenance projects to which
    2-6  this article does not apply are included when computing the dollar
    2-7  amount of expenditures for maintenance projects in a fiscal year.
    2-8        (c)  The <(g)  A> requirement of a minimum dollar amount of
    2-9  expenditures by the department for maintenance projects within a
   2-10  fiscal year as provided in this section applies <shall not apply>
   2-11  unless the department determines after a public hearing that a
   2-12  function of comparable quality and quantity cannot <can> be
   2-13  purchased or performed at a savings through utilization of private
   2-14  sector contracts.
   2-15        (d) <(h)>  The department shall consider all of its direct
   2-16  and indirect costs in determining the cost of providing the
   2-17  services.  The department shall use <the> cost-accounting
   2-18  procedures and instructions developed by or in cooperation with the
   2-19  State Council on Competitive Government <the state auditor> under
   2-20  Article 15 <Section 13.04(a)>, State Purchasing and General
   2-21  Services Act (Article 601b, Vernon's Texas Civil Statutes), in
   2-22  determining its cost.  The council may <On request, the state
   2-23  auditor shall> provide technical assistance to the department about
   2-24  the cost-accounting procedures and instructions and may prescribe
   2-25  cost-accounting procedures and instructions for the department.
   2-26        SECTION 2.  This Act takes effect September 1, 1995.
   2-27        SECTION 3.   The importance of this legislation and the
    3-1  crowded condition of the calendars in both houses create an
    3-2  emergency and an imperative public necessity that the
    3-3  constitutional rule requiring bills to be read on three several
    3-4  days in each house be suspended, and this rule is hereby suspended.