| 1 | 1 | | 89R2551 CS-D |
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| 2 | 2 | | By: Manuel H.B. No. 1198 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to consideration of the location of a bidder's principal |
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| 10 | 10 | | place of business in certain municipal contracts. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 271.9051(b), Local Government Code, is |
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| 13 | 13 | | amended to read as follows: |
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| 14 | 14 | | (b) In purchasing under this title any real property, |
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| 15 | 15 | | personal property that is not affixed to real property, or |
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| 16 | 16 | | services, if a municipality receives one or more competitive sealed |
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| 17 | 17 | | bids from a bidder whose principal place of business is in the |
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| 18 | 18 | | municipality and whose bid is within five percent of the lowest bid |
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| 19 | 19 | | price received by the municipality from a bidder who is not a |
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| 20 | 20 | | resident of the municipality, the municipality may enter into a |
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| 21 | 21 | | contract for construction services [in an amount of less than |
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| 22 | 22 | | $100,000] or [a contract for] other purchases in an amount of less |
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| 23 | 23 | | than $500,000 with: |
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| 24 | 24 | | (1) the lowest bidder; or |
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| 25 | 25 | | (2) the bidder whose principal place of business is in |
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| 26 | 26 | | the municipality if the governing body of the municipality |
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| 27 | 27 | | determines, in writing, that the local bidder offers the |
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| 28 | 28 | | municipality the best combination of contract price and additional |
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| 29 | 29 | | economic development opportunities for the municipality created by |
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| 30 | 30 | | the contract award, including the employment of residents of the |
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| 31 | 31 | | municipality and increased tax revenues to the municipality. |
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| 32 | 32 | | SECTION 2. The change in law made by this Act applies only |
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| 33 | 33 | | to a contract for which the initial notice soliciting bids is given |
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| 34 | 34 | | on or after the effective date of this Act. A contract for which the |
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| 35 | 35 | | initial notice soliciting bids is given before the effective date |
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| 36 | 36 | | of this Act is governed by the law in effect on the date the initial |
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| 37 | 37 | | notice is given, and the former law is continued in effect for that |
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| 38 | 38 | | purpose. |
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| 39 | 39 | | SECTION 3. This Act takes effect September 1, 2025. |
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