The bill, H.B. No. 76, introduces new regulations regarding the contractor selection process for local governmental agencies in Texas. It adds Section 271.909 to the Local Government Code, which prohibits these agencies from considering any procurement factors 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 specifically disallows preferences based on environmental, social, and governance criteria that do not meet these standards. It mandates that governmental agencies provide written contract selection criteria in publicly available bid specifications and solicitation documents.

Furthermore, the bill establishes a mechanism for enforcement, allowing individuals to report suspected violations to the attorney general. If a violation is confirmed, the attorney general can direct the agency to remove prohibited criteria or terminate contracts that have been improperly awarded. Failure to comply with these directives will render the contract void. The provisions of this bill will apply only to contractor selection processes initiated after its effective date, which is set for the 91st day following the end of the legislative session.

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