The bill amends the Local Government Code to increase the threshold for competitive bidding by municipalities. Specifically, it raises the expenditure limit from $50,000 to $100,000, meaning that municipalities will now be required to engage in competitive bidding for contracts exceeding $100,000. Additionally, the bill modifies the requirement for contacting historically underutilized businesses, raising the threshold for this requirement from $50,000 to $100,000 as well. This means that municipalities will need to reach out to at least two historically underutilized businesses for expenditures over $3,000 but less than $100,000.

The changes introduced by this bill will take effect on September 1, 2025, and will only apply to purchases made on or after that date. Any purchases made prior to the effective date will continue to be governed by the previous law. This legislative change aims to streamline the procurement process for municipalities while also promoting engagement with historically underutilized businesses within the new expenditure limits.

Statutes affected:
Introduced: Local Government Code 252.021, Local Government Code 252.0215 (Local Government Code 252)