89R10137 DNC-D
 
  By: Leo Wilson H.B. No. 4069
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the threshold for competitive procurement requirements
  for counties.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 262.003(a), Local Government Code, is
  amended to read as follows:
         (a)  Any law that requires a county to follow a competitive
  procurement procedure in making a purchase requiring the
  expenditure of $67,715 [$50,000] or less, subject to Section
  262.008, does not apply to the purchase of an item available for
  purchase from only one supplier.
         SECTION 2.  Subchapter A, Chapter 262, Local Government
  Code, is amended by adding Section 262.008 to read as follows:
         Sec. 262.008.  INFLATION ADJUSTMENT FOR COMPETITIVE
  PROCUREMENT REQUIREMENTS. (a)  The comptroller shall compute and
  publish a dollar amount to reflect inflation for:
               (1)  the amount of an expenditure for which a
  competitive procurement process is required under this chapter; 
               (2)  the amount of change in contract cost that an
  employee may be authorized to approve under Section 262.031(b);
               (3)  the value of a contract for which a performance
  bond may be required under Section 262.032(b); or
               (4)  the maximum value of a contract for which
  completion is required before payment under Section 262.032(c). 
         (b)  In making the computation under Subsection (a), the
  comptroller shall consider the Consumer Price Index for All Urban
  Consumers, or its successor in function, published by the United
  States Bureau of Labor Statistics. 
         (c)  The comptroller shall use 2025 as the base year and
  adjust the dollar amount, effective on February 1 of each year
  ending in the numeral 5, to reflect inflation for the preceding 10
  years. 
         (d)  The comptroller shall make available to the public
  information regarding adjustments made under this section.
         (e)  The comptroller may adopt rules as necessary to
  administer this section.
         SECTION 3.  Section 262.023(a), Local Government Code, is
  amended to read as follows:
         (a)  Before a county may purchase one or more items under a
  contract that will require an expenditure exceeding $67,715,
  subject to Section 262.008 [$50,000], the commissioners court of
  the county must:
               (1)  comply with the competitive bidding or competitive
  proposal procedures prescribed by this subchapter;
               (2)  use the reverse auction procedure, as defined by
  Section 2155.062(d), Government Code, for purchasing; or
               (3)  comply with a method described by Chapter 2269,
  Government Code.
         SECTION 4.  Section 262.031(b), Local Government Code, is
  amended to read as follows:
         (b)  If a change order involves an increase or decrease in
  cost of $67,715 [$50,000] or less, subject to Section 262.008, the
  commissioners court may grant general authority to an employee to
  approve the change orders.  However, the original contract price
  may not be increased by more than 25 percent unless the change order
  is necessary to comply with a federal or state statute, rule,
  regulation, or judicial decision enacted, adopted, or rendered
  after the contract was made.  The original contract price may not be
  decreased by 18 percent or more without the consent of the
  contractor.
         SECTION 5.  Sections 262.032(b) and (c), Local Government
  Code, are amended to read as follows:
         (b)  Within 30 days after the date of the signing of a
  contract or issuance of a purchase order following the acceptance
  of a bid or proposal and prior to commencement of the actual work,
  the bidder or proposal offeror shall furnish a performance bond to
  the county, if required by the county, for the full amount of the
  contract if that contract exceeds $67,715, subject to Section
  262.008 [$50,000]. This subsection does not apply to a performance
  bond required to be furnished by Chapter 2253, Government Code.
         (c)  If the contract is for $67,715 [$50,000] or less,
  subject to Section 262.008, the county may provide in the bid notice
  or request for proposals that no money will be paid to the
  contractor until completion and acceptance of the work or the
  fulfillment of the purchase obligation to the county.
         SECTION 6.  This Act takes effect September 1, 2025.