HB4069 - Relating to the threshold for competitive procurement requirements for counties.

  89R10137 DNC-D     By: Leo Wilson H.B. No. 4069       A BILL TO BE ENTITLED   AN ACT   relating to the threshold for competitive procurement requirements   for counties.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  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 $67,715 [ $50,000 ] or less , subject to Section   262.008, does not apply to the purchase of an item available for   purchase from only one supplier.          SECTION 2.  Subchapter A, Chapter 262, Local Government   Code, is amended by adding Section 262.008 to read as follows:           Sec.   262.008.     INFLATION ADJUSTMENT FOR COMPETITIVE   PROCUREMENT REQUIREMENTS. (a)   The comptroller shall compute and   publish a dollar amount to reflect inflation for:                 (1)     the amount of an expenditure for which a   competitive procurement process is required under this chapter;                   (2)     the amount of change in contract cost that an   employee may be authorized to approve under Section 262.031(b);                 (3)     the value of a contract for which a performance   bond may be required under Section 262.032(b); or                 (4)     the maximum value of a contract for which   completion is required before payment under Section 262.032(c).             (b)     In making the computation under Subsection (a), the   comptroller shall consider the Consumer Price Index for All Urban   Consumers, or its successor in function, published by the United   States Bureau of Labor Statistics.             (c)     The comptroller shall use 2025 as the base year and   adjust the dollar amount, effective on February 1 of each year   ending in the numeral 5, to reflect inflation for the preceding 10   years.             (d)     The comptroller shall make available to the public   information regarding adjustments made under this section.           (e)     The comptroller may adopt rules as necessary to   administer this section.          SECTION 3.  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 $67,715,   subject to Section 262.008 [ $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 4.  Section 262.031(b), Local Government Code, is   amended to read as follows:          (b)  If a change order involves an increase or decrease in   cost of $67,715 [ $50,000 ] or less, subject to Section 262.008, the   commissioners court may grant general authority to an employee to   approve the change orders.  However, the original contract price   may not be increased by more than 25 percent unless the change order   is necessary to comply with a federal or state statute, rule,   regulation, or judicial decision enacted, adopted, or rendered   after the contract was made.  The original contract price may not be   decreased by 18 percent or more without the consent of the   contractor.          SECTION 5.  Sections 262.032(b) and (c), Local Government   Code, are amended to read as follows:          (b)  Within 30 days after the date of the signing of a   contract or issuance of a purchase order following the acceptance   of a bid or proposal and prior to commencement of the actual work,   the bidder or proposal offeror shall furnish a performance bond to   the county, if required by the county, for the full amount of the   contract if that contract exceeds $67,715, subject to Section   262.008 [ $50,000 ]. This subsection does not apply to a performance   bond required to be furnished by Chapter 2253, Government Code.          (c)  If the contract is for $67,715 [ $50,000 ] or less,   subject to Section 262.008, the county may provide in the bid notice   or request for proposals that no money will be paid to the   contractor until completion and acceptance of the work or the   fulfillment of the purchase obligation to the county.          SECTION 6.  This Act takes effect September 1, 2025.