Senate Bill No. 1184 proposes to amend the current law regarding sealed bidding requirements for municipal contracts. Specifically, the bill increases the threshold for contracts or purchases that municipalities can exempt from sealed bidding from $25,000 to $35,000. This change allows municipalities to establish ordinances that set competitive bidding requirements while providing flexibility in the bidding process for lower-value contracts. The bill maintains that municipalities can still enter into contracts as per existing statutes, and it does not invalidate any prior ordinances enacted before October 1, 1989.

The bill is set to take effect on October 1, 2025, and is expected to yield potential savings for municipalities by reducing administrative and advertising costs associated with sealed bidding. The fiscal impact is anticipated to vary based on each municipality's contracting processes, particularly for those that currently advertise formal sealed bids. Overall, the legislation aims to streamline municipal procurement processes while allowing for increased efficiency in managing lower-value contracts.