HB 5405

relating to the amount of an expenditure made by a
municipality for which competitive bidding is required.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  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 2.  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 3.  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 4.  This Act takes effect September 1, 2025.