HB1998 - Relating to the amount of an expenditure made by certain political subdivisions for which a competitive procurement method may be required.

  89R20373 JBD-D     By: Spiller, Leo Wilson, Landgraf, et al. H.B. No. 1998     Substitute the following for H.B. No. 1998:     By:  Bell of Montgomery C.S.H.B. No. 1998       A BILL TO BE ENTITLED   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.  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 11.  This Act takes effect September 1, 2025.