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 stipulates that contracts for the purchase of goods and services valued at $100,000 or more must be procured through methods that provide the best value, such as competitive bidding or sealed proposals. This change applies to expenditures made by school districts, health boards, municipalities, and counties, thereby standardizing the procurement process across these entities.

Additionally, the bill includes provisions that require municipalities to contact historically underutilized businesses for expenditures between $3,000 and $100,000, and it clarifies that competitive procurement procedures do not apply to purchases from a single supplier. The changes will take effect on September 1, 2025, and any purchases made before this date will be governed by the previous law. Overall, the bill aims to streamline procurement processes while promoting fair competition and opportunities for historically underutilized businesses.

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 (Transportation Code 252, Local Government Code 262, Education Code 44, Local Government Code 304, Local Government Code 271, 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 (Transportation Code 252, Health and Safety Code 304, Local Government Code 262, Education Code 44, Local Government Code 304, Local Government Code 271, Local Government Code 252)