bill raising the county bidding threshold to $67,715

The text as introduced · 674 words

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.