Up from $100,000, matching the limit for other purchases.
The bill raises the dollar limit on construction contracts where a city may pick a local bidder over a cheaper outside bidder, from under $100,000 to under $500,000, matching the existing limit for other purchases. It touches Texas cities and the businesses that bid on city construction work, letting a local firm win if its bid is within five percent of the lowest outside bid and the city council finds in writing that the local firm offers the best mix of price and local economic benefit. On the ground, cities gain the option to send larger construction jobs to hometown contractors, starting with bids advertised on or after September 1, 2025.
Labels
Labels: ZOMBIE BILL. Died 2 times: 88R HB 3245 (Died in committee) and this bill (Died in committee). Checked against 88R only.BACK FROM THE DEAD. Same text as a bill filed before that died: 88R HB 3245 (Died in committee). Filed in 2 sessions, counting this one. Checked against 88R only.TRY NO. 2. Filed in 2 sessions: 88R and 89R. Checked against 88R only.ACROSS THE AISLE. Joint authors: 2 Republicans, 2 Democrats. Party as the Legislative Reference Library lists it for the 89th Legislature.PENDING FOREVER. Heard by the House Intergovernmental Affairs committee on Apr 8, 2025 and left pending. Never voted out. The bill died.
relating to consideration of the location of a bidder's principal
place of business in certain municipal contracts.
WHAT IT DOES
Up from $100,000, matching the limit for other purchases.
The bill raises the dollar limit on construction contracts where a city may pick a local bidder over a cheaper outside bidder, from under $100,000 to under $500,000, matching the existing limit for other purchases. It touches Texas cities and the businesses that bid on city construction work, letting a local firm win if its bid is within five percent of the lowest outside bid and the city council finds in writing that the local firm offers the best mix of price and local economic benefit. On the ground, cities gain the option to send larger construction jobs to hometown contractors, starting with bids advertised on or after September 1, 2025.
CHARGES
[ ] NONE FOUND
TOTAL
No fiscal implication to the State is anticipated.
Data snapshot Oct 26, 2026 at 4:20 AM CDT. Grades, charges, quotes and corrections follow the published record.
House committee · Intergovernmental Affairs · Final status: Died in committee
Subjects
City Government--General
Purchasing--Local
COMPETITIVE BIDDING
Text
The text as introduced · 313 words
89R2551 CS-D
By: Manuel
H.B. No. 1198
A BILL TO BE ENTITLED
AN ACT
relating to consideration of the location of a bidder's principal
place of business in certain municipal contracts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 271.9051(b), Local Government Code, is
amended to read as follows:
(b) In purchasing under this title any real property,
personal property that is not affixed to real property, or
services, if a municipality receives one or more competitive sealed
bids from a bidder whose principal place of business is in the
municipality and whose bid is within five percent of the lowest bid
price received by the municipality from a bidder who is not a
resident of the municipality, the municipality may enter into a
contract for construction services [ in an amount of less than
$100,000 ] or [ a contract for ] other purchases in an amount of less
than $500,000 with:
(1) the lowest bidder; or
(2) the bidder whose principal place of business is in
the municipality if the governing body of the municipality
determines, in writing, that the local bidder offers the
municipality the best combination of contract price and additional
economic development opportunities for the municipality created by
the contract award, including the employment of residents of the
municipality and increased tax revenues to the municipality.
SECTION 2. The change in law made by this Act applies only
to a contract for which the initial notice soliciting bids is given
on or after the effective date of this Act. A contract for which the
initial notice soliciting bids is given before the effective date
of this Act is governed by the law in effect on the date the initial
notice is given, and the former law is continued in effect for that
purpose.
SECTION 3. This Act takes effect September 1, 2025.