The bill, S.B. No. 1173, proposes amendments to various sections of the Education Code and Local Government Code regarding the competitive procurement methods required for certain expenditures by political subdivisions, specifically school districts and municipalities. The key change is the increase in the threshold for requiring competitive procurement from $50,000 to $100,000. This adjustment applies to contracts for the purchase of goods and services by school districts, municipalities, and counties, thereby allowing these entities to engage in less stringent procurement processes for expenditures below the new threshold.

Additionally, the bill stipulates that municipalities must contact at least two 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 are set to take effect on September 1, 2025, and will only apply to purchases made after that date, ensuring that any contracts entered into before the effective 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 (Transportation Code 252, Local Government Code 262, Local Government Code 252, Education Code 44, Local Government Code 304, Local Government Code 271)