Texas 2025 - 89th Regular

Texas House Bill HB1998

Filed
1/22/25  
Out of Senate Committee
 
Voted on by Senate
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to the amount of an expenditure made by certain political subdivisions for which a competitive procurement method may be required.

Impact

The implications of HB 1998 on state law are significant, as it seeks to streamline purchasing procedures and reduce bureaucratic delays for local governments. This change could potentially foster quicker procurement practices and enhance the efficiency of local agencies in servicing their communities. The raised threshold is projected to alleviate some administrative burdens, allowing for faster execution of contracts related to essential services and supplies, thereby improving operational efficiency in public sector purchasing.

Summary

House Bill 1998 aims to modify the expenditure thresholds for which political subdivisions are required to use competitive procurement methods when making purchases. The bill revises the existing limit of $50,000 to $100,000 for required competitive bidding in various contexts, including local government and education sectors. This adjustment is intended to ease the procurement process for local agencies and school districts, allowing them more flexibility in purchasing goods and services without the need for prolonged bidding processes, particularly for lower-value contracts.

Sentiment

Discussions surrounding the bill reflect a generally favorable sentiment among those advocating for government efficiency and reduced bureaucratic hurdles. Proponents argue that the revised thresholds will modernize purchasing practices and provide necessary support to local entities operating on limited budgets. In contrast, some critics express concerns about transparency and accountability in public spending. They argue that increasing the threshold might lead to less rigorous oversight and a potential increase in concerns over mismanagement or favoritism in contract awards.

Contention

Notable points of contention involve the balance between operational efficiency and the integrity of public procurement processes. Critics caution that raising the expenditure limit could diminish the opportunities for participation by smaller vendors and historically underutilized businesses. They worry that without competitive procurement, the quality of goods and services procured may suffer, and public funds could be at risk of misallocation. These discussions highlight a key tension in policymaking: ensuring efficiency while maintaining accountability and fairness in government spending.

Texas Constitutional Statutes Affected

Education Code

  • Chapter 44. Fiscal Management
    • Section: New Section
    • Section: New Section
    • Section: New Section

Local Government Code

  • Chapter 252. Purchasing And Contracting Authority Of Municipalities
    • Section: 021
    • Section: 0215
    • Section: 021
    • Section: 0215
    • Section: 021
    • Section: 0215
  • Chapter 262. Purchasing And Contracting Authority Of Counties
    • Section: New Section
    • Section: New Section
    • Section: 023
    • Section: New Section
    • Section: 023
  • Chapter 271. Purchasing And Contracting Authority Of Municipalities, Counties, And Certain Other Local Governments
    • Section: 024
    • Section: 054
    • Section: 024
    • Section: 054
    • Section: 024
    • Section: 054

Transportation Code

  • Chapter 252. Systems Of County Road Administration
    • Section: 312
    • Section: 312
    • Section: 312

Health And Safety Code

  • Chapter 775. Emergency Services Districts
    • Section: 084
    • Section: 084

Companion Bills

TX SB1173

Identical Relating to the amount of an expenditure made by certain political subdivisions for which a competitive procurement method may be required.

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