The bill amends the Local Government Code to increase the threshold for competitive bidding requirements for 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, increasing the threshold from $50,000 to $100,000 for expenditures that necessitate outreach to these businesses.

The changes outlined in the bill will take effect on September 1, 2025, and will only apply to purchases made on or after that date. Purchases made prior to the effective date will continue to be governed by the existing law, ensuring a smooth transition to the new regulations.

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