| 2 | 4 | | |
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| 3 | 5 | | |
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| 4 | 6 | | A BILL TO BE ENTITLED |
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| 5 | 7 | | AN ACT |
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| 6 | 8 | | relating to the amount of an expenditure made by a |
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| 7 | 9 | | municipality for which competitive bidding is required. |
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| 8 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 11 | | SECTION 1. Section 252.021(a), Local Government Code, is |
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| 10 | 12 | | amended to read as follows: |
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| 11 | 13 | | (a) Before a municipality may enter into a contract that |
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| 12 | 14 | | requires an expenditure of more than $100,000 [$50,000] from one or |
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| 13 | 15 | | more municipal funds, the municipality must: |
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| 14 | 16 | | (1) comply with the procedure prescribed by this |
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| 15 | 17 | | subchapter and Subchapter C for competitive sealed bidding or |
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| 16 | 18 | | competitive sealed proposals; |
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| 17 | 19 | | (2) use the reverse auction procedure, as defined by |
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| 18 | 20 | | Section 2155.062(d), Government Code, for purchasing; or |
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| 19 | 21 | | (3) comply with a method described by Chapter 2269, |
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| 20 | 22 | | Government Code. |
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| 21 | 23 | | SECTION 2. Section 252.0215, Local Government Code, is |
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| 22 | 24 | | amended to read as follows: |
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| 23 | 25 | | Sec. 252.0215. COMPETITIVE BIDDING IN RELATION TO |
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| 24 | 26 | | HISTORICALLY UNDERUTILIZED BUSINESS. A municipality, in making an |
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| 25 | 27 | | expenditure of more than $3,000 but less than $100,000 [$50,000], |
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| 26 | 28 | | shall contact at least two historically underutilized businesses on |
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| 27 | 29 | | a rotating basis, based on information provided by the comptroller |
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| 28 | 30 | | pursuant to Chapter 2161, Government Code. If the list fails to |
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| 29 | 31 | | identify a historically underutilized business in the county in |
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| 30 | 32 | | which the municipality is situated, the municipality is exempt from |
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| 31 | 33 | | this section. |
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| 32 | 34 | | SECTION 3. The changes in law made by this Act apply only to |
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| 33 | 35 | | a purchase made on or after the effective date of this Act. A |
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| 34 | 36 | | purchase made before the effective date of this Act is governed by |
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| 35 | 37 | | the law as it existed immediately before the effective date of this |
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| 36 | 38 | | Act, and that law is continued in effect for that purpose. |
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| 37 | 39 | | SECTION 4. This Act takes effect September 1, 2025. |
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