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A BILL TO BE ENTITLED
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AN ACT
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relating to the threshold for competitive procurement requirements |
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for counties. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. 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 $67,715 [$50,000] or less, subject to Section |
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262.008, does not apply to the purchase of an item available for |
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purchase from only one supplier. |
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SECTION 2. Subchapter A, Chapter 262, Local Government |
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Code, is amended by adding Section 262.008 to read as follows: |
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Sec. 262.008. INFLATION ADJUSTMENT FOR COMPETITIVE |
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PROCUREMENT REQUIREMENTS. (a) The comptroller shall compute and |
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publish a dollar amount to reflect inflation for: |
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(1) the amount of an expenditure for which a |
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competitive procurement process is required under this chapter; |
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(2) the amount of change in contract cost that an |
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employee may be authorized to approve under Section 262.031(b); |
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(3) the value of a contract for which a performance |
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bond may be required under Section 262.032(b); or |
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(4) the maximum value of a contract for which |
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completion is required before payment under Section 262.032(c). |
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(b) In making the computation under Subsection (a), the |
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comptroller shall consider the Consumer Price Index for All Urban |
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Consumers, or its successor in function, published by the United |
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States Bureau of Labor Statistics. |
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(c) The comptroller shall use 2025 as the base year and |
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adjust the dollar amount, effective on February 1 of each year |
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ending in the numeral 5, to reflect inflation for the preceding 10 |
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years. |
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(d) The comptroller shall make available to the public |
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information regarding adjustments made under this section. |
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(e) The comptroller may adopt rules as necessary to |
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administer this section. |
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SECTION 3. 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 $67,715, |
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subject to Section 262.008 [$50,000], the commissioners court of |
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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 4. Section 262.031(b), Local Government Code, is |
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amended to read as follows: |
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(b) If a change order involves an increase or decrease in |
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cost of $67,715 [$50,000] or less, subject to Section 262.008, the |
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commissioners court may grant general authority to an employee to |
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approve the change orders. However, the original contract price |
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may not be increased by more than 25 percent unless the change order |
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is necessary to comply with a federal or state statute, rule, |
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regulation, or judicial decision enacted, adopted, or rendered |
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after the contract was made. The original contract price may not be |
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decreased by 18 percent or more without the consent of the |
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contractor. |
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SECTION 5. Sections 262.032(b) and (c), Local Government |
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Code, are amended to read as follows: |
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(b) Within 30 days after the date of the signing of a |
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contract or issuance of a purchase order following the acceptance |
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of a bid or proposal and prior to commencement of the actual work, |
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the bidder or proposal offeror shall furnish a performance bond to |
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the county, if required by the county, for the full amount of the |
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contract if that contract exceeds $67,715, subject to Section |
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262.008 [$50,000]. This subsection does not apply to a performance |
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bond required to be furnished by Chapter 2253, Government Code. |
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(c) If the contract is for $67,715 [$50,000] or less, |
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subject to Section 262.008, the county may provide in the bid notice |
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or request for proposals that no money will be paid to the |
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contractor until completion and acceptance of the work or the |
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fulfillment of the purchase obligation to the county. |
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SECTION 6. This Act takes effect September 1, 2025. |