BILL ANALYSIS

H.B. 1132

By: Spiller

County Affairs

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Municipalities are required by state procurement laws to engage in a competitive bidding process for contracts with a value of $50,000 or more. For this process, a municipality must go through a formal solicitation process which takes a large amount of staff time, even if the contracts are for routine items. H.B. 1132 seeks to raise the expenditure threshold that triggers the competitive bidding requirement for municipalities and certain other governmental entities from $50,000 to $100,000. Raising this threshold will allow these governmental entities to procure necessary items and complete projects in a more efficient manner.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 1132 amends the Education Code, Local Government Code, and Transportation Code to raise certain expenditure thresholds that trigger the applicability of competitive bidding requirements for contracting by a county, municipality, public school district, housing authority, or hospital district from $50,000 to $100,000. The bill's provisions apply only to a purchase made on or after the bill's effective date.

EFFECTIVE DATE

September 1, 2023.