The bill amends various sections of the Texas Education Code, Health and Safety Code, and Local Government Code to increase the threshold for competitive procurement requirements from $50,000 to $200,000 for certain political subdivisions, including school districts, municipalities, and counties. Specifically, it stipulates that contracts for the purchase of goods and services valued at more than $200,000 must be made using competitive bidding or other specified procurement methods. This change aims to streamline the procurement process for larger expenditures while maintaining accountability and transparency in public spending.

Additionally, the bill includes provisions that require municipalities to contact historically underutilized businesses for expenditures exceeding $200,000, ensuring that these businesses have opportunities to participate in government contracts. The amendments clarify that the competitive procurement procedures do not apply to purchases from a single supplier and establish that the new thresholds will only apply to purchases made after the effective date of the Act, which is set for September 1, 2025.

Statutes affected:
Introduced: Education Code 44.031, Health and Safety Code 304.001, Local Government Code 252.021, Local Government Code 252.0215, Local Government Code 262.003, Local Government Code 262.023, Local Government Code 271.024, Local Government Code 271.054, Transportation Code 252.312 (Health and Safety Code 304, Transportation Code 252, Local Government Code 262, Local Government Code 271, Local Government Code 252, Education Code 44)