Bill > SB830

This bill amends the Local Government Code to increase the threshold for competitive bidding and historically underutilized business (HUB) procurement requirements for municipalities from $50,000 to $100,000. Specifically, municipalities will now be required to use competitive sealed bidding, competitive sealed proposals, reverse auction procedures, or other specified purchasing methods for expenditures exceeding $100,000, instead of the previous $50,000 threshold. Additionally, for purchases between $3,000 and $100,000, municipalities must contact at least two historically underutilized businesses on a rotating basis, using lists provided by the comptroller. The changes will apply only to purchases made on or after the effective date of September 1, 2025, with previous purchases still governed by the existing law at that time. By raising the competitive bidding threshold, the bill aims to provide municipalities with more flexibility in procurement while still maintaining competitive and inclusive purchasing practices.