HB 4105

relating to the authority of certain counties to consider a
prospective contractor's principal place of business when awarding
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Subchapter Z, Chapter 271, Local Government
Code, is amended by adding Section 271.909 to read as follows:
Sec. 271.909.  CONSIDERATION OF LOCATION OF BIDDER'S
PRINCIPAL PLACE OF BUSINESS FOR AWARDING CERTAIN COUNTY CONTRACTS.
(a)  This section applies only to a county with a population of more
(b)  A county may award a contract for services or for the
construction,  repair, or renovation of a structure, road, highway,
or other improvement or addition to real property to a bidder whose
principal place of business is in the county or in a contiguous
(1)  the bid or proposed price submitted by the bidder
is within three percent of the lowest bid or proposed price received
by the county from a bidder with the ability to perform the contract
that does not have a principal place of business in the county or in
(2)  the commissioners court determines, in writing,
that the bid or proposal of the bidder offers the county the best
combination of contract price, ability to perform the contract,
and additional economic development opportunities for the county
created by the contract award, including the employment of
residents of the county and increased tax revenues to the county.
(c)  A county may not award a contract to a bidder under this
section if a person that would approve the contract:
(1)  is related to the bidder within the third degree by
consanguinity or within the second degree by affinity, as described
by Subchapter B, Chapter 573, Government Code; or
(2)  has financial ties to the bidder.
(d)  This section does not prohibit a county from rejecting
(e)  This section does not apply to a contract for
professional services governed by Subchapter A, Chapter 2254,
SECTION 2.  The change in law made by this Act applies only
to a contract for which a county first advertises or otherwise
solicits bids, proposals, offers, or qualifications or makes a
similar solicitation on or after the effective date of this Act.
SECTION 3.  This Act takes effect September 1, 2025.