BILL ANALYSIS Senate Research Center S.B. 2046 89R15366 CS-D By: Bettencourt Local Government 4/4/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT Concerns have been raised by those involved in the Elevate Strategies case and others about the current penalties involving the competitive bidding process within the Local Government Code. S.B. 2046 enhances the initial criminal penalty by one degree and creates a tiered penalty system based on the contract amount for each penalty enhancement that follows. By strengthening the penalties associated with the competitive bidding process, we can ensure that this process is followed in all bids made by local governments and taxpayer funds are spent fairly. As proposed, S.B. 2046 amends current law relating to penalties for certain offenses involving county competitive bidding requirements and increases criminal penalties. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 262.034, Local Government Code, as follows: Sec. 262.034. CRIMINAL PENALTIES. (a) Provides that an offense under this subsection is a Class A, rather than Class B, misdemeanor, except that the offense is a state jail felony if purchases structured to avoid competition bidding requirements have an aggregated value of over $1 million but less than $5 million and a felony of the third degree if the purchases have an aggregated value of $5 million or more. (b) Redesignates existing Subsection (c) as Subsection (b). Provides that an offense under this subsection is a Class B, rather than Class C, misdemeanor, except that the offense is a Class A misdemeanor if the conduct involves a contract that has a value of over $1 million but less than $5 million and a state jail felony if the conduct involves a contract that has a value of $5 million or more. SECTION 2. Makes application of this Act prospective. SECTION 3. Effective date: September 1, 2025.
BILL ANALYSIS
Senate Research Center S.B. 2046
89R15366 CS-D By: Bettencourt
Local Government
4/4/2025
As Filed
Senate Research Center
S.B. 2046
89R15366 CS-D
By: Bettencourt
Local Government
4/4/2025
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
Concerns have been raised by those involved in the Elevate Strategies case and others about the current penalties involving the competitive bidding process within the Local Government Code. S.B. 2046 enhances the initial criminal penalty by one degree and creates a tiered penalty system based on the contract amount for each penalty enhancement that follows. By strengthening the penalties associated with the competitive bidding process, we can ensure that this process is followed in all bids made by local governments and taxpayer funds are spent fairly.
As proposed, S.B. 2046 amends current law relating to penalties for certain offenses involving county competitive bidding requirements and increases criminal penalties.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 262.034, Local Government Code, as follows:
Sec. 262.034. CRIMINAL PENALTIES. (a) Provides that an offense under this subsection is a Class A, rather than Class B, misdemeanor, except that the offense is a state jail felony if purchases structured to avoid competition bidding requirements have an aggregated value of over $1 million but less than $5 million and a felony of the third degree if the purchases have an aggregated value of $5 million or more.
(b) Redesignates existing Subsection (c) as Subsection (b). Provides that an offense under this subsection is a Class B, rather than Class C, misdemeanor, except that the offense is a Class A misdemeanor if the conduct involves a contract that has a value of over $1 million but less than $5 million and a state jail felony if the conduct involves a contract that has a value of $5 million or more.
SECTION 2. Makes application of this Act prospective.
SECTION 3. Effective date: September 1, 2025.