H.B. No. 1998 amends various sections of the Education Code, Health and Safety Code, and Local Government Code to increase the threshold for competitive procurement requirements from $50,000 to $100,000 for certain political subdivisions, including school districts, municipalities, and counties. Specifically, the bill modifies the procurement procedures for contracts related to the purchase of goods and services, requiring competitive bidding or proposals for expenditures exceeding the new threshold. This change aims to streamline the procurement process and reduce the administrative burden on local governments while ensuring that larger expenditures still undergo competitive scrutiny.

The bill also includes provisions that maintain the requirement for municipalities and counties to contact historically underutilized businesses for expenditures over $3,000 but less than $100,000. Additionally, it clarifies that competitive procurement procedures do not apply to purchases from a single supplier when the expenditure is $100,000 or less. The changes will take effect on September 1, 2025, and will only apply to purchases made after that date, ensuring that existing contracts are governed by the previous law.

Statutes affected:
Introduced: Education Code 44.031, Local Government Code 304.001, 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 (Education Code 44, Local Government Code 262, Local Government Code 271, Transportation Code 252, Local Government Code 304, Local Government Code 252)
House Committee Report: 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, Education Code 44, Local Government Code 262, Local Government Code 271, Transportation Code 252, Local Government Code 304, Local Government Code 252)