Senate Bill No. 1173, introduced by Perry and Hinojosa, amends various sections of the Education Code and Local Government Code to increase the threshold for competitive procurement methods required by political subdivisions. Specifically, the bill raises the expenditure limit from $50,000 to $100,000 for school districts and municipalities before they must engage in competitive bidding or other procurement methods. This change applies to contracts for goods and services, as well as construction-related contracts, ensuring that any expenditure exceeding $100,000 must follow the prescribed competitive procurement procedures.

The bill also includes provisions for 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 will only apply to purchases made after that date, allowing existing contracts to remain 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 (Local Government Code 262, Local Government Code 271, Local Government Code 304, Education Code 44, Local Government Code 252, Transportation Code 252)
Senate Committee Report: 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 262, Local Government Code 271, Local Government Code 304, Education Code 44, Local Government Code 252, Transportation Code 252)
Engrossed: 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 262, Local Government Code 271, Local Government Code 304, Education Code 44, Local Government Code 252, Transportation Code 252)