The bill amends the Local Government Code to increase the threshold for competitive bidding requirements by municipalities. Specifically, it raises the expenditure limit from $50,000 to $100,000 for contracts that necessitate competitive bidding. This change is reflected in Section 252.021(a), which now states that municipalities must comply with competitive bidding procedures for expenditures exceeding $100,000. Additionally, Section 252.0215 is amended to adjust the requirement for contacting historically underutilized businesses, raising the threshold from $50,000 to $100,000 for expenditures between $3,000 and $100,000.

The bill stipulates that these changes will only apply to purchases made on or after the effective date of September 1, 2025, ensuring that any purchases made prior to this date will continue to be governed by the previous law. This legislative update aims to streamline the procurement process for municipalities by reducing the frequency of competitive bidding for smaller contracts, potentially allowing for more efficient use of municipal resources.

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