HB 1198
AN ACT relating to consideration of the location of a bidder's principal
89th Regular Session
Jan 14, 2025 - Jun 2, 2025 • Session ended
Awaiting Committee Assignment
Bill filed, pending referral to House committee
Committee
Not yet assigned
Fiscal Note
Not available
What This Bill Does
Allows municipalities to prefer local businesses when awarding contracts by giving a slight bidding advantage to companies with their principal place of business in the same municipality. If a local bidder's price is within 5% of the lowest bid from a non-local company, the municipality can choose the local bidder if they determine the local business provides better overall economic benefits, such as local job creation and increased tax revenues. The law applies to future contract bids issued on or after September 1, 2025, potentially helping local businesses compete more effectively for municipal contracts.
Subject Areas
Bill Text
relating to consideration of the location of a bidder's principal place of business in certain municipal contracts. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 271.9051(b), Local Government Code, is (b) In purchasing under this title any real property, personal property that is not affixed to real property, or services, if a municipality receives one or more competitive sealed bids from a bidder whose principal place of business is in the municipality and whose bid is within five percent of the lowest bid price received by the municipality from a bidder who is not a resident of the municipality, the municipality may enter into a contract for construction services [in an amount of less than $100,000] or [a contract for] other purchases in an amount of less (2) the bidder whose principal place of business is in the municipality if the governing body of the municipality determines, in writing, that the local bidder offers the municipality the best combination of contract price and additional economic development opportunities for the municipality created by the contract award, including the employment of residents of the municipality and increased tax revenues to the municipality. SECTION 2. The change in law made by this Act applies only to a contract for which the initial notice soliciting bids is given on or after the effective date of this Act. A contract for which the initial notice soliciting bids is given before the effective date of this Act is governed by the law in effect on the date the initial notice is given, and the former law is continued in effect for that SECTION 3. This Act takes effect September 1, 2025.
Bill Sponsors
Legislators who authored or co-sponsored this bill.
Bill History
Bill filed: AN ACT relating to consideration of the location of a bidder's principal
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