AN ACT
 1-1     relating to the award of state highway improvement contracts.
 1-2           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-3           SECTION 1.  Subchapter A, Chapter 223, Transportation Code,
 1-4     is amended by adding Section 223.0041 to read as follows:
 1-5           Sec. 223.0041.  AWARD OF CONTRACTS.  (a)  Except as provided
 1-6     by Section 223.005, all bids received and not rejected by the
 1-7     department shall be tabulated and forwarded to the commission.
 1-8           (b)  The commission may accept or reject the bids.  Except as
 1-9     provided in Subsection (c), if the bids are accepted, the
1-10     commission shall award the contract to the lowest bidder, subject
1-11     to Section 223.045.
1-12           (c)  For a maintenance contract involving an amount less than
1-13     $100,000, if the lowest bidder withdraws its bid prior to contract
1-14     award or fails to execute the contract, the director may recommend
1-15     to the commission that the contract be awarded to the second lowest
1-16     bidder.  The commission may award the maintenance contract to the
1-17     second lowest bidder if the second lowest bidder agrees to accept
1-18     the unit bid prices of the lowest bidder.  The commission shall
1-19     adopt rules governing the conditions under which the department
1-20     will allow the withdrawal of the bid of the lowest bidder and
1-21     consider awarding a maintenance contract to the second lowest
1-22     bidder.
1-23           SECTION 2.  Subsections (b), (c), and (d), Section 223.005,
1-24     Transportation Code, are amended to read as follows:
 2-1           (b)  [Except as provided by Subsection (d), all bids received
 2-2     under this section and not rejected by the department shall be
 2-3     tabulated and forwarded to the commission and may be accepted or
 2-4     rejected by the commission.]
 2-5           [(c)  If the bids are accepted, the commission shall award
 2-6     the contract to the lowest bidder, subject to Section 223.045.]
 2-7           [(d)]  The commission may delegate to the director or the
 2-8     director's designee the right to:
 2-9                 (1)  accept or reject bids received, subject to Section
2-10     223.045; and
2-11                 (2)  award a contract to the lowest bidder.
2-12           SECTION 3.  The importance of this legislation and the
2-13     crowded condition of the calendars in both houses create an
2-14     emergency and an imperative public necessity that the
2-15     constitutional rule requiring bills to be read on three several
2-16     days in each house be suspended, and this rule is hereby suspended,
2-17     and that this Act take effect and be in force from and after its
2-18     passage, and it is so enacted.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 555 passed the Senate on
         April 19, 1999, by the following vote:  Yeas 30, Nays 0.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 555 passed the House on
         April 28, 1999, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
         Approved:
         _______________________________
                     Date
         _______________________________
                   Governor