Sec. 201.704.  CONTRACT FOR REPAIR OR MAINTENANCE OF EQUIPMENT.  (a)  The department shall contract with a private entity for the repair or maintenance of highway equipment and passenger cars used by the department if the department determines that the private entity can:
(1)  provide maintenance and repair services that are of sufficient quality and in sufficient quantity;  and
(2)  perform those services for a charge that is less than 90 percent of the total cost for the department to provide equivalent services.
(b)  During a fiscal year the department shall spend for all contracts under this section not less than 35 percent of the total amount it spends for vehicle repair and maintenance in that year.
(c)  In determining the total cost of providing maintenance and repair services for the purpose of Subsection (a)(2), the department shall consider direct and indirect costs of providing those services.
(d)  In this section:
(1)  "Highway equipment" means machinery or equipment, other than a passenger car, that is used by the department for the construction, reconstruction, maintenance, or repair of a road or highway.
(2)  "Passenger car" has the meaning assigned that term by Section 502.001.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.  Amended by Acts 1999, 76th Leg., ch. 600, Sec. 1, eff. June 18, 1999.