Bill > HB4314

This bill establishes new rules for how local governmental agencies in Texas must conduct competitive procurement processes when purchasing goods or services. Specifically, agencies are prohibited from considering any factors in their selection process except those that are legally required or are objective, measurable, and directly related to the cost, quality, reliability, or legal compliance of the item being procured. The bill also bars agencies from giving preference to bids based on environmental, social, and governance (ESG) criteria that do not directly relate to the item's core characteristics. Agencies must provide written selection criteria in all bid specifications and solicitation documents, and anyone can report suspected violations to the Texas Attorney General. If a violation is found, the Attorney General can direct the agency to remove prohibited criteria from an ongoing procurement process, terminate a contract that has not yet been executed, or seek injunctive relief. If an agency fails to terminate a contract as directed, the contract becomes void. The new rules will apply only to contractor selection processes initiated on or after September 1, 2025, giving agencies time to adjust their procurement practices to comply with the new requirements.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB4314