Bill > SB1173

This bill amends multiple sections of Texas law to raise the threshold for when political subdivisions like school districts, municipalities, counties, and transit authorities must use competitive procurement methods from $50,000 to $100,000. Specifically, the bill changes requirements for purchasing goods and services, entering into contracts, and making expenditures, mandating that competitive bidding, sealed proposals, reverse auction procedures, or other specified procurement methods must be used for purchases exceeding $100,000. The bill also updates related provisions, such as the requirement for municipalities to contact historically underutilized businesses for purchases between $3,000 and $100,000. Additionally, the bill includes a provision that these changes only apply to purchases made on or after the effective date, which is September 1, 2025, meaning purchases made before that date will still be governed by the previous $50,000 threshold. The purpose appears to be providing more flexibility for local government entities in their purchasing and contracting processes by raising the competitive procurement threshold.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB1173