Bill > HB1998

This bill amends multiple sections of Texas state law to raise the threshold for competitive procurement requirements from $50,000 to $100,000 across various governmental entities, including school districts, municipalities, counties, and other local government bodies. The changes affect how these entities must handle purchases and contracts, requiring competitive bidding, sealed proposals, reverse auction procedures, or other prescribed procurement methods when the expenditure exceeds $100,000, instead of the previous $50,000 limit. This adjustment means that smaller purchases under $100,000 will have more flexibility in procurement, potentially reducing administrative burden for local governments while still maintaining competitive practices for larger expenditures. The bill specifically modifies sections in the Education Code, Health and Safety Code, Local Government Code, and Transportation Code to standardize this procurement threshold. Importantly, these changes will only apply to purchases made on or after the bill's effective date of September 1, 2025, ensuring that existing contracts and purchases are not retroactively affected.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB1998