H.B. No. 4084 amends the Local Government Code to increase the threshold for competitive bidding requirements by municipalities. Specifically, the bill raises the expenditure limit from $50,000 to $100,000 for contracts that necessitate competitive bidding. This change is reflected in Section 252.021(a), which now stipulates that municipalities must follow competitive bidding procedures for expenditures exceeding $100,000. Additionally, Section 252.0215 is amended to require municipalities to contact at least two historically underutilized businesses for expenditures over $3,000 but less than $100,000, also raising the previous threshold from $50,000.

The bill clarifies that these changes will only apply to purchases made on or after the effective date of September 1, 2025, ensuring that any purchases made prior to this date will continue to be governed by the existing law. This legislative update aims to streamline the procurement process for municipalities while promoting engagement with historically underutilized businesses.

Statutes affected:
Introduced: Local Government Code 252.021, Local Government Code 252.0215 (Local Government Code 252)