Texas 2025 - 89th Regular

Texas Senate Bill SB1173 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Perry, Eckhardt S.B. No. 1173
2		-	Hinojosa of Nueces
3		-
4		-
	1	+	By: Perry, Hinojosa of Nueces S.B. No. 1173
	2	+	(In the Senate - Filed February 7, 2025; February 28, 2025,
	3	+	read first time and referred to Committee on Local Government;
	4	+	March 31, 2025, reported favorably by the following vote: Yeas 5,
	5	+	Nays 0; March 31, 2025, sent to printer.)
	6	+	Click here to see the committee vote
5	7
6	8
7	9		A BILL TO BE ENTITLED
8	10		AN ACT
9	11		relating to the amount of an expenditure made by certain political
10	12		subdivisions for which a competitive procurement method may be
11	13		required.
12	14		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	15		SECTION 1. Section 44.031(a), Education Code, is amended to
14	16		read as follows:
15	17		(a) Except as provided by this subchapter, all school
16	18		district contracts for the purchase of goods and services, except
17	19		contracts for the purchase of produce or vehicle fuel, valued at
18	20		$100,000 [$50,000] or more in the aggregate for each 12-month
19	21		period shall be made by the method, of the following methods, that
20	22		provides the best value for the district:
21	23		(1) competitive bidding for services other than
22	24		construction services;
23	25		(2) competitive sealed proposals for services other
24	26		than construction services;
25	27		(3) a request for proposals, for services other than
26	28		construction services;
27	29		(4) an interlocal contract;
28	30		(5) a method provided by Chapter 2269, Government
29	31		Code, for construction services;
30	32		(6) the reverse auction procedure as defined by
31	33		Section 2155.062(d), Government Code; or
32	34		(7) the formation of a political subdivision
33	35		corporation under Section 304.001, Local Government Code.
34	36		SECTION 2. Section 252.021(a), Local Government Code, is
35	37		amended to read as follows:
36	38		(a) Before a municipality may enter into a contract that
37	39		requires an expenditure of more than $100,000 [$50,000] from one or
38	40		more municipal funds, the municipality must:
39	41		(1) comply with the procedure prescribed by this
40	42		subchapter and Subchapter C for competitive sealed bidding or
41	43		competitive sealed proposals;
42	44		(2) use the reverse auction procedure, as defined by
43	45		Section 2155.062(d), Government Code, for purchasing; or
44	46		(3) comply with a method described by Chapter 2269,
45	47		Government Code.
46	48		SECTION 3. Section 252.0215, Local Government Code, is
47	49		amended to read as follows:
48	50		Sec. 252.0215. COMPETITIVE BIDDING IN RELATION TO
49	51		HISTORICALLY UNDERUTILIZED BUSINESS. A municipality, in making an
50	52		expenditure of more than $3,000 but less than $100,000 [$50,000],
51	53		shall contact at least two historically underutilized businesses on
52	54		a rotating basis, based on information provided by the comptroller
53	55		pursuant to Chapter 2161, Government Code. If the list fails to
54	56		identify a historically underutilized business in the county in
55	57		which the municipality is situated, the municipality is exempt from
56	58		this section.
57	59		SECTION 4. Section 262.003(a), Local Government Code, is
58	60		amended to read as follows:
59	61		(a) Any law that requires a county to follow a competitive
60	62		procurement procedure in making a purchase requiring the
61	63		expenditure of $100,000 [$50,000] or less does not apply to the
62	64		purchase of an item available for purchase from only one supplier.
63	65		SECTION 5. Section 262.023(a), Local Government Code, is
64	66		amended to read as follows:
65	67		(a) Before a county may purchase one or more items under a
66	68		contract that will require an expenditure exceeding $100,000
67	69		[$50,000], the commissioners court of the county must:
68	70		(1) comply with the competitive bidding or competitive
69	71		proposal procedures prescribed by this subchapter;
70	72		(2) use the reverse auction procedure, as defined by
71	73		Section 2155.062(d), Government Code, for purchasing; or
72	74		(3) comply with a method described by Chapter 2269,
73	75		Government Code.
74	76		SECTION 6. Section 271.024, Local Government Code, is
75	77		amended to read as follows:
76	78		Sec. 271.024. COMPETITIVE PROCUREMENT PROCEDURE APPLICABLE
77	79		TO CONTRACT. If a governmental entity is required by statute to
78	80		award a contract for the construction, repair, or renovation of a
79	81		structure, road, highway, or other improvement or addition to real
80	82		property on the basis of competitive bids, and if the contract
81	83		requires the expenditure of more than $100,000 [$50,000] from the
82	84		funds of the entity, the bidding on the contract must be
83	85		accomplished in the manner provided by this subchapter.
84	86		SECTION 7. Section 271.054, Local Government Code, is
85	87		amended to read as follows:
86	88		Sec. 271.054. COMPETITIVE PROCUREMENT REQUIREMENT. Before
87	89		the governing body of an issuer may enter into a contract requiring
88	90		an expenditure by or imposing an obligation or liability on the
89	91		issuer, or on a subdivision of the issuer if the issuer is a county,
90	92		of more than $100,000 [$50,000], the governing body must:
91	93		(1) submit the proposed contract to competitive
92	94		procurement; or
93	95		(2) use an alternate method of project delivery
94	96		authorized by Chapter 2269, Government Code.
95	97		SECTION 8. Sections 252.312(b) and (c), Transportation
96	98		Code, are amended to read as follows:
97	99		(b) If the county road engineer so recommends and the
98	100		commissioners court considers it to be in the best interest of the
99	101		county, a purchase in an amount of $100,000 [$50,000] or less may be
100	102		made through negotiation by the commissioners court or the court's
101	103		authorized representative on requisition to be approved by the
102	104		commissioners court or the county auditor without advertising for
103	105		competitive bids.
104	106		(c) A purchase may not be divided or reduced to avoid the
105	107		competitive bidding requirement on a purchase that would otherwise
106	108		cost more than $100,000 [$50,000].
107	109		SECTION 9. The changes in law made by this Act apply only to
108	110		a purchase made on or after the effective date of this Act. A
109	111		purchase made before the effective date of this Act is governed by
110	112		the law as it existed immediately before the effective date of this
111	113		Act, and that law is continued in effect for that purpose.
112	114		SECTION 10. This Act takes effect September 1, 2025.
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