The proposed bill, H.B. No. 76, seeks to amend the Local Government Code by adding Section 271.909, which establishes specific prohibitions regarding the criteria that local governmental agencies can use in their contractor selection processes. Under this new section, governmental agencies are restricted from considering any factors in procurement processes that are not legally required or that do not directly relate to the cost, quality, reliability, or legal compliance of the goods or services being procured. Additionally, the bill prohibits giving preference to bids based on environmental, social, and governance criteria that do not meet these direct relevance requirements.

The bill also mandates that governmental agencies provide written contract selection criteria in publicly available bid specifications and solicitation documents. If a violation of this section is suspected, individuals can report it to the attorney general, who has the authority to direct agencies to remove prohibited criteria or terminate contracts if necessary. Failure to comply with these directives would render the contract void. The provisions of this bill will apply only to contractor selection processes initiated after the bill's effective date, which is set for 91 days following the end of the legislative session.

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