HB 1998

relating to the amount of an expenditure made by certain political
subdivisions for which a competitive procurement method may be
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 44.031(a), Education Code, is amended to
(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
(2)  competitive sealed proposals for services other
(3)  a request for proposals, for services other than
(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 252.021(a), Local Government Code, is
(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
(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,
SECTION 3.  Section 252.0215, Local Government Code, is
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
SECTION 4.  Section 262.003(a), Local Government Code, is
(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 5.  Section 262.023(a), Local Government Code, is
(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,
SECTION 6.  Section 271.024, Local Government Code, is
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 7.  Section 271.054, Local Government Code, is
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
(2)  use an alternate method of project delivery
authorized by Chapter 2269, Government Code.
SECTION 8.  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
(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 9.  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 10.  This Act takes effect September 1, 2025.