(a) Money credited to the county road and bridge fund under § 502.198 may not be used to pay the compensation of the county judge or a county commissioner. The money may be used only for the construction and maintenance of lateral roads in the county, under the supervision of the county engineer.
(b) If there is not a county engineer, the commissioners court of the county may require the services of the department’s district engineer or resident engineer to supervise the construction and surveying of lateral roads in the county.

(c) A county may use money allocated to it under this chapter to:
(1) pay obligations issued in the construction or improvement of any roads, including state highways in the county;
(2) improve the roads in the county road system; or
(3) construct new roads.
(d) To the maximum extent possible, contracts for roads constructed by a county using funds provided under this chapter should be awarded by competitive bids.