BILL ANALYSIS

S.B. 1173

By: Perry

Intergovernmental Affairs

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Under current state law, certain governmental entities such as counties, municipalities, and public school districts are required to comply with certain competitive procurement procedures for certain expenditures exceeding $50,000. However, the bill sponsor has informed the committee that inflation and the rising costs of goods and services has made this expenditure threshold outdated, resulting in an inefficient procurement process for small-scale purchases. The bill sponsor has also informed the committee that raising this threshold would modernize procurement standards and reduce administrative burdens without compromising transparency or competition. S.B. 1173 seeks to streamline procurement processes, lower administrative costs, and provide greater flexibility to governmental entities in managing their resources effectively by raising that expenditure threshold.

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

S.B. 1173 amends the Education Code, Local Government Code, and Transportation Code to raise certain expenditure thresholds that trigger the applicability of a competitive procurement method for contracting by a county, municipality, public school district, housing authority, hospital district or authority, or agencies or instrumentalities of certain governmental entities from $50,000 to $100,000. The bill applies only to a purchase made on or after the bill's effective date. A purchase made before the bill's effective date is governed by the law as it existed immediately before the bill's effective date, and that law is continued in effect for that purpose.

EFFECTIVE DATE

September 1, 2025.