House Bill 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. Additionally, it modifies the requirement for municipalities making expenditures between $3,000 and $50,000 to now contact at least two historically underutilized businesses on a rotating basis, with the upper limit also increased to $100,000. The changes introduced by this bill will only apply to purchases made on or after its effective date of September 1, 2025. Any purchases made prior to this date will continue to be governed by the previous law. This legislation 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)