H.B. No. 1998 amends various sections of the Education Code and Local Government Code to increase the threshold for competitive procurement methods required by political subdivisions, specifically school districts and municipalities. The bill raises the expenditure limit from $50,000 to $100,000 for contracts related to the purchase of goods and services, thereby requiring competitive bidding or other procurement methods only for contracts valued at $100,000 or more. This change applies to school districts, municipalities, and counties, affecting how they handle contracts for construction, repair, or renovation projects.

Additionally, the bill stipulates that municipalities must contact at least two historically underutilized businesses for expenditures between $3,000 and $100,000, while also clarifying that certain procurement procedures do not apply to purchases from a single supplier. The changes will take effect on September 1, 2025, and will only apply to purchases made after that date, ensuring that any contracts entered into before this date will follow 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 (Local Government Code 304, Local Government Code 262, Local Government Code 252, Local Government Code 271, Transportation Code 252, Education Code 44)