HB 4069

relating to the threshold for competitive procurement requirements
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  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 $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
(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
SECTION 3.  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 $67,715,
subject to Section 262.008 [$50,000], the commissioners court of
(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 4.  Section 262.031(b), Local Government Code, is
(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
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.