| TO: | Honorable Garnet Coleman, Chair, House Committee on County Affairs |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | HB78 by Flynn (Relating to the amount of a county expenditure for which competitive bidding is required.), As Introduced |
The bill would amend the Local Government Code to raise the minimum purchase expenditure from $25,000 to $50,000 for when a competitive bidding procedure is required to be used by a local government entity for certain purchases. The minimum expenditure amount for a contract for construction, repair, or renovation of a structure, road, highway, or other improvement or addition to real property would remain at $25,000 for a governmental entity other than a county, but would change to $50,000 for a county. The proposed changes in statute would apply only to contracts awarded on or after the effective date of the bill, which would be September 1, 2009.
Raising the minimum amount for when a competitive bidding procedure is required would provide greater flexibility in the purchasing process and reduce some of the expenses involved for purchases that fall within the expanded range.
| Source Agencies: |
| LBB Staff: | JOB, DB
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