Relating to the amount of an expenditure made by certain political subdivisions for which a competitive procurement method may be required, the official text

S.B. No. 1173

AN ACT

relating to the amount of an expenditure made by certain political

subdivisions for which a competitive procurement method may be

required.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 44.031(a), Education Code, is amended to

read as follows:

(a) Except as provided by this subchapter, all school

district contracts for the purchase of goods and services, except

contracts for the purchase of produce or vehicle fuel, valued at

$100,000 [$50,000] or more in the aggregate for each 12-month

period shall be made by the method, of the following methods, that

provides the best value for the district:

(1) competitive bidding for services other than

construction services;

(2) competitive sealed proposals for services other

than construction services;

(3) a request for proposals, for services other than

construction services;

(4) an interlocal contract;

(5) a method provided by Chapter 2269, Government

Code, for construction services;

(6) the reverse auction procedure as defined by

Section 2155.062(d), Government Code; or

(7) the formation of a political subdivision

corporation under Section 304.001, Local Government Code.

SECTION 2. Section 775.084(a), Health and Safety Code, is

amended to read as follows:

(a) Except as provided by Subsection (i), the board must

submit to competitive bids an expenditure of more than $100,000

[$50,000] for:

(1) one item or service; or

(2) more than one of the same or a similar type of item

or service in a fiscal year.

SECTION 3. Section 252.021(a), Local Government Code, is

amended to read as follows:

(a) Before a municipality may enter into a contract that

requires an expenditure of more than $100,000 [$50,000] from one or

more municipal funds, the municipality must:

(1) comply with the procedure prescribed by this

subchapter and Subchapter C for competitive sealed bidding or

competitive sealed proposals;

(2) use the reverse auction procedure, as defined by

Section 2155.062(d), Government Code, for purchasing; or

(3) comply with a method described by Chapter 2269,

Government Code.

SECTION 4. Section 252.0215, Local Government Code, is

amended to read as follows:

Sec. 252.0215. COMPETITIVE BIDDING IN RELATION TO

HISTORICALLY UNDERUTILIZED BUSINESS. A municipality, in making an

expenditure of more than $3,000 but less than $100,000 [$50,000],

shall contact at least two historically underutilized businesses on

a rotating basis, based on information provided by the comptroller

pursuant to Chapter 2161, Government Code. If the list fails to

identify a historically underutilized business in the county in

which the municipality is situated, the municipality is exempt from

this section.

SECTION 5. Section 262.003(a), Local Government Code, is

amended to read as follows:

(a) Any law that requires a county to follow a competitive

procurement procedure in making a purchase requiring the

expenditure of $100,000 [$50,000] or less does not apply to the

purchase of an item available for purchase from only one supplier.

SECTION 6. Section 262.023(a), Local Government Code, is

amended to read as follows:

(a) Before a county may purchase one or more items under a

contract that will require an expenditure exceeding $100,000

[$50,000], the commissioners court of the county must:

(1) comply with the competitive bidding or competitive

proposal procedures prescribed by this subchapter;

(2) use the reverse auction procedure, as defined by

Section 2155.062(d), Government Code, for purchasing; or

(3) comply with a method described by Chapter 2269,

Government Code.

SECTION 7. Section 271.024, Local Government Code, is

amended to read as follows:

Sec. 271.024. COMPETITIVE PROCUREMENT PROCEDURE APPLICABLE

TO CONTRACT. If a governmental entity is required by statute to

award a contract for the construction, repair, or renovation of a

structure, road, highway, or other improvement or addition to real

property on the basis of competitive bids, and if the contract

requires the expenditure of more than $100,000 [$50,000] from the

funds of the entity, the bidding on the contract must be

accomplished in the manner provided by this subchapter.

SECTION 8. Section 271.054, Local Government Code, is

amended to read as follows:

Sec. 271.054. COMPETITIVE PROCUREMENT REQUIREMENT. Before

the governing body of an issuer may enter into a contract requiring

an expenditure by or imposing an obligation or liability on the

issuer, or on a subdivision of the issuer if the issuer is a county,

of more than $100,000 [$50,000], the governing body must:

(1) submit the proposed contract to competitive

procurement; or

(2) use an alternate method of project delivery

authorized by Chapter 2269, Government Code.

SECTION 9. Sections 252.312(b) and (c), Transportation

Code, are amended to read as follows:

(b) If the county road engineer so recommends and the

commissioners court considers it to be in the best interest of the

county, a purchase in an amount of $100,000 [$50,000] or less may be

made through negotiation by the commissioners court or the court's

authorized representative on requisition to be approved by the

commissioners court or the county auditor without advertising for

competitive bids.

(c) A purchase may not be divided or reduced to avoid the

competitive bidding requirement on a purchase that would otherwise

cost more than $100,000 [$50,000].

SECTION 10. Section 451.110(c), Transportation Code, is

amended to read as follows:

(c) Subsection (a) does not apply to a contract for:

(1) $100,000 [$50,000] or less;

(2) the purchase of real property;

(3) personal or professional services; or

(4) the acquisition of an existing transit system.

SECTION 11. The changes in law made by this Act apply only

to a purchase made on or after the effective date of this Act. A

purchase made before the effective date of this Act is governed by

the law as it existed immediately before the effective date of this

Act, and that law is continued in effect for that purpose.

SECTION 12. This Act takes effect September 1, 2025.

______________________________
______________________________

President of the Senate
Speaker of the House

I hereby certify that S.B. No. 1173 passed the Senate on

April 10, 2025, by the following vote: Yeas 29, Nays 1; and that

the Senate concurred in House amendment on May 20, 2025, by the

following vote: Yeas 29, Nays 2.

______________________________

Secretary of the Senate

I hereby certify that S.B. No. 1173 passed the House, with

amendment, on May 15, 2025, by the following vote: Yeas 103,

Nays 38, two present not voting.

______________________________

Chief Clerk of the House

Approved:

______________________________

Date

______________________________

Governor