S.B. No. 573




AN ACT

relating to the award of certain highway maintenance contracts by 
the Texas Department of Transportation and to local matching funds 
requirements for highway projects.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subsection (c), Section 223.0041, 
Transportation Code, is amended to read as follows:
	(c)  For a maintenance contract involving an amount less than 
$300,000 [$100,000], if the lowest bidder withdraws its bid prior 
to contract award or fails to execute the contract, the director may 
recommend to the commission that the contract be awarded to the 
second lowest bidder.  The commission may award the maintenance 
contract to the second lowest bidder if the second lowest bidder 
agrees to accept the unit bid prices of the lowest bidder.  The 
commission shall adopt rules governing the conditions under which 
the department will allow the withdrawal of the bid of the lowest 
bidder and consider awarding a maintenance contract to the second 
lowest bidder.
	SECTION 2.  Section 222.053, Transportation Code, is amended 
by adding Subsections (f), (g), and (h) to read as follows:
	(f)  The commission shall certify a county as an economically 
disadvantaged county on an annual basis as soon as possible after 
the comptroller reports on the economic indicators listed under 
Subsection (a).  A county certified under this section is eligible 
for an adjustment under Subsection (c)(2).
	(g)  The commission shall determine whether to make an 
adjustment under Subsection (c)(2) at the time a political 
subdivision that consists of all or a portion of an economically 
disadvantaged county submits a proposal to construct, maintain, or 
extend a highway or for another type of highway project.
	(h)  The commission may delegate any of its duties or powers 
under this section to the director or the director's designee.
	SECTION 3.  (a)  The changes in law made by this Act to the 
Texas Department of Transportation's contract procedures apply 
only to a highway project for which the department first solicits 
bids on or after September 1, 2005.
	(b)  A highway project for which the Texas Department of 
Transportation first solicited bids before September 1, 2005, is 
governed by the law as it existed immediately before the effective 
date of this Act, and that law is continued in effect for that 
purpose.
	SECTION 4.  This Act takes effect September 1, 2005.                           

                                                                              




______________________________    ______________________________
President of the Senate             Speaker of the House
	I hereby certify that S.B. No. 573 passed the Senate on 
March 31, 2005, by the following vote:  Yeas 30, Nays 0; and that 
the Senate concurred in House amendment on May 27, 2005, by the 
following vote:  Yeas 29, Nays 0.




______________________________ 
   Secretary of the Senate             
	I hereby certify that S.B. No. 573 passed the House, with 
amendment, on May 25, 2005, by a non-record vote.




______________________________ 
   Chief Clerk of the House            



Approved:


______________________________ 
            Date



______________________________ 
          Governor