Amend CSSB 370 by striking SECTION 1.22.  (committee
printing, page 10, line 26) and substitute a new SECTION 1.22 to
read as follows:
      SECTION 1.22.  Section 223.041, Transportation Code is
amended to read as follows:
      Sec. 223.041.  ENGINEERING AND DESIGN CONTRACTS.  (a)  The
department shall use private sector engineering-related services to
assist in accomplishing its activities in providing transportation
projects.  For the purpose of this section, engineering related
services means engineering, land surveying, environmental,
transportation feasibility/financial, architectural, real estate
appraisal, and materials laboratory services.  These
engineering-related services are for highway improvements,
right-of-way acquisition and aviation improvements <The
department's policy regarding the regular use of private sector
professional services for preliminary and construction engineering
and engineering design shall achieve a balance between the use of
department employees and the use of private contractors if the
costs are equivalent>.
      (b)  The department, in setting the level of expenditures in
these engineering-related activities that will be paid to the
private sector providers, will index the level of expenditures from
the amount set by Rider in the General Appropriations Act, 75th
Legislative Session, expressed as a percentage of the total funds
appropriated in Strategy A.1.1. Plan/Design/Manage <The office of
the state auditor shall determine relevant costs to be considered
under Subsection (a)>.
      (c)  Beginning in fiscal year 2000, the department will
increase its expenditures to private sector providers for
engineering-related services at least one percentage point per year
until the expenditure level in all strategies paid to private
sector providers for all department engineering-related services
for transportation projects reaches a goal of thirty-five percent
of funds appropriated in Strategy A.1.1. Plan/Design/Manage of the
General Appropriations Act.
      (d)  The commission may provide for hearings at which private
sector complaints relating to the selection process are heard.