Bill > HB5405

This bill increases the monetary threshold for competitive bidding requirements for municipalities in Texas from $50,000 to $100,000. Specifically, the bill amends two sections of the Local Government Code: first, it raises the expenditure amount that triggers competitive bidding procedures from over $50,000 to over $100,000, requiring municipalities to use competitive sealed bidding, reverse auction procedures, or other specified purchasing methods for contracts exceeding this amount. Second, the bill modifies the requirement for contacting historically underutilized businesses (HUBs), changing the threshold for mandatory HUB engagement from purchases between $3,000 and $50,000 to purchases between $3,000 and $100,000. The changes will apply only to purchases made on or after the bill's effective date of September 1, 2025, meaning purchases before that date will still be governed by the previous $50,000 threshold. By raising this threshold, the bill aims to potentially reduce administrative burden and streamline procurement processes for municipalities while maintaining competitive and fair purchasing practices.