S.B. No. 1173 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 Section 44.031(a) of the Education Code, Section 775.084(a) of the Health and Safety Code, and several sections of the Local Government Code (Sections 252.021(a), 252.0215, 262.003(a), 262.023(a), 271.024, and 271.054) to reflect this new threshold. The bill also clarifies that competitive procurement procedures are not required for purchases from a single supplier or for certain types of contracts.

The changes will take effect on September 1, 2025, and will apply only to purchases made on or after that date. Purchases made before the effective date will continue to be governed by the previous law. This legislation aims to streamline procurement processes for political subdivisions by raising the expenditure limit that necessitates competitive bidding, thereby potentially reducing administrative burdens and costs associated with smaller contracts.

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 271, Local Government Code 252, Education Code 44, Local Government Code 262, Local Government Code 304, 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 271, Local Government Code 252, Education Code 44, Local Government Code 262, Local Government Code 304, 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 271, Local Government Code 252, Education Code 44, Local Government Code 262, Local Government Code 304, Transportation Code 252)
House 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 271, Local Government Code 252, Education Code 44, Local Government Code 262, Local Government Code 304, Transportation Code 252)
Enrolled: 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 451.110 (Local Government Code 271, Local Government Code 252, Education Code 44, Local Government Code 262, Local Government Code 304, Health and Safety Code 304, Transportation Code 252, Transportation Code 451)