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 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 previous law. This bill aims to streamline the procurement process for municipalities while still ensuring some level of competitive bidding and outreach to historically underutilized businesses.

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