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A BILL TO BE ENTITLED
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AN ACT
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relating to the amount of an expenditure made by certain political |
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subdivisions for which a competitive procurement method may be |
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required to be used. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 44.031(a), Education Code, is amended to |
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read as follows: |
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(a) Except as provided by this subchapter, all school |
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district contracts for the purchase of goods and services, except |
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contracts for the purchase of produce or vehicle fuel, valued at |
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[$50,000 or] more than $200,000 in the aggregate for each 12-month |
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period shall be made by the method, of the following methods, that |
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provides the best value for the district: |
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(1) competitive bidding for services other than |
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construction services; |
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(2) competitive sealed proposals for services other |
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than construction services; |
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(3) a request for proposals, for services other than |
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construction services; |
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(4) an interlocal contract; |
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(5) a method provided by Chapter 2269, Government |
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Code, for construction services; |
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(6) the reverse auction procedure as defined by |
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Section 2155.062(d), Government Code; or |
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(7) the formation of a political subdivision |
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corporation under Section 304.001, Local Government Code. |
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SECTION 2. Section 775.084(a), Health and Safety Code, is |
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amended to read as follows: |
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(a) Except as provided by Subsection (i), the board must |
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submit to competitive bids an expenditure of more than $200,000 |
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[$50,000] for: |
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(1) one item or service; or |
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(2) more than one of the same or a similar type of item |
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or service in a fiscal year. |
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SECTION 3. Section 252.021(a), Local Government Code, is |
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amended to read as follows: |
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(a) Before a municipality may enter into a contract that |
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requires an expenditure of more than $200,000 [$50,000] from one or |
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more municipal funds, the municipality must: |
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(1) comply with the procedure prescribed by this |
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subchapter and Subchapter C for competitive sealed bidding or |
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competitive sealed proposals; |
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(2) use the reverse auction procedure, as defined by |
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Section 2155.062(d), Government Code, for purchasing; or |
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(3) comply with a method described by Chapter 2269, |
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Government Code. |
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SECTION 4. Section 252.0215, Local Government Code, is |
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amended to read as follows: |
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Sec. 252.0215. COMPETITIVE BIDDING IN RELATION TO |
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HISTORICALLY UNDERUTILIZED BUSINESS. A municipality, in making an |
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expenditure of more than $3,000 but not more [less] than $200,000 |
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[$50,000], shall contact at least two historically underutilized |
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businesses on a rotating basis, based on information provided by |
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the comptroller pursuant to Chapter 2161, Government Code. If the |
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list fails to identify a historically underutilized business in the |
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county in which the municipality is situated, the municipality is |
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exempt from this section. |
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SECTION 5. Section 262.003(a), Local Government Code, is |
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amended to read as follows: |
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(a) Any law that requires a county to follow a competitive |
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procurement procedure in making a purchase requiring the |
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expenditure of $200,000 [$50,000] or less does not apply to the |
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purchase of an item available for purchase from only one supplier. |
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SECTION 6. Section 262.023(a), Local Government Code, is |
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amended to read as follows: |
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(a) Before a county may purchase one or more items under a |
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contract that will require an expenditure exceeding $200,000 |
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[$50,000], the commissioners court of the county must: |
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(1) comply with the competitive bidding or competitive |
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proposal procedures prescribed by this subchapter; |
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(2) use the reverse auction procedure, as defined by |
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Section 2155.062(d), Government Code, for purchasing; or |
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(3) comply with a method described by Chapter 2269, |
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Government Code. |
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SECTION 7. Section 271.024, Local Government Code, is |
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amended to read as follows: |
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Sec. 271.024. COMPETITIVE PROCUREMENT PROCEDURE APPLICABLE |
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TO CONTRACT. If a governmental entity is required by statute to |
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award a contract for the construction, repair, or renovation of a |
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structure, road, highway, or other improvement or addition to real |
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property on the basis of competitive bids, and if the contract |
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requires the expenditure of more than $200,000 [$50,000] from the |
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funds of the entity, the bidding on the contract must be |
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accomplished in the manner provided by this subchapter. |
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SECTION 8. Section 271.054, Local Government Code, is |
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amended to read as follows: |
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Sec. 271.054. COMPETITIVE PROCUREMENT REQUIREMENT. Before |
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the governing body of an issuer may enter into a contract requiring |
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an expenditure by or imposing an obligation or liability on the |
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issuer, or on a subdivision of the issuer if the issuer is a county, |
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of more than $200,000 [$50,000], the governing body must: |
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(1) submit the proposed contract to competitive |
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procurement; or |
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(2) use an alternate method of project delivery |
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authorized by Chapter 2269, Government Code. |
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SECTION 9. Sections 252.312(b) and (c), Transportation |
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Code, are amended to read as follows: |
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(b) If the county road engineer so recommends and the |
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commissioners court considers it to be in the best interest of the |
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county, a purchase in an amount of $200,000 [$50,000] or less may be |
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made through negotiation by the commissioners court or the court's |
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authorized representative on requisition to be approved by the |
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commissioners court or the county auditor without advertising for |
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competitive bids. |
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(c) A purchase may not be divided or reduced to avoid the |
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competitive bidding requirement on a purchase that would otherwise |
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cost more than $200,000 [$50,000]. |
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SECTION 10. The changes in law made by this Act apply only |
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to a purchase made on or after the effective date of this Act. A |
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purchase made before the effective date of this Act is governed by |
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the law as it existed immediately before the effective date of this |
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Act, and that law is continued in effect for that purpose. |
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SECTION 11. This Act takes effect September 1, 2025. |