Monitoring the Session

HB 5405

Bernal Bill Raises City Bidding Threshold From $50K To $100K

Died in committee

Verdict: No flags

No flagsInitial review
Rep. Diego M. BernalDHouse 123

Initial review · graded Oct 20, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

relating to the amount of an expenditure made by a municipality for which competitive bidding is required.

Caption from analyzed text · version I.

Summary

More mid-sized contracts skip formal bidding. More buys, $3K to $100K, trigger outreach to historically underutilized businesses.

The bill raises the dollar line at which a Texas city must use competitive bidding or a similar formal process for a contract, from $50,000 to $100,000. It also widens the range of purchases, now from $3,000 up to $100,000, for which a city must contact at least two historically underutilized businesses on a rotating basis. Starting September 1, 2025, cities can award more mid-sized contracts without formal bidding, while more of those purchases trigger the outreach duty.

Labels

Labels: ZOMBIE BILL. Died 2 times: 88R HB 4942 (Died in committee) and this bill (Died in committee). Checked against 88R only.DO-OVER. Reworked text of a bill filed before that died: 88R HB 4942 (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.NEVER GOT A HEARING. Filed Mar 14, 2025 and referred to the House Intergovernmental Affairs committee. No public hearing. The bill died.

Receipt

The receipt

89R-HB5405 · 2025-03-14

SOLD BY

ITEM

relating to the amount of an expenditure made by a municipality for which competitive bidding is required.

WHAT IT DOES

More mid-sized contracts skip formal bidding. More buys, $3K to $100K, trigger outreach to historically underutilized businesses.

The bill raises the dollar line at which a Texas city must use competitive bidding or a similar formal process for a contract, from $50,000 to $100,000. It also widens the range of purchases, now from $3,000 up to $100,000, for which a city must contact at least two historically underutilized businesses on a rotating basis. Starting September 1, 2025, cities can award more mid-sized contracts without formal bidding, while more of those purchases trigger the outreach duty.

CHARGES

[ ] NONE FOUND

TOTAL

No fiscal note in the loaded record.

HISTORY

  1. Filed
  2. Read first time
  3. Referred to Intergovernmental Affairs
FILED UNDER

DEI BY ANOTHER NAME

THE TEXT

…“shall contact at least two historically underutilized businesses on”…

Bill text, introduced version (I)

The bill widens the dollar range of city purchases that must include outreach to state-listed historically underutilized businesses, from under $50,000 to under $100,000.

No flags

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

Donors

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Jul 2, 2024 to Jun 11, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Texas Trial Lawyers Association PAC$10,000.00

Texas Trial Lawyers Association PAC

$10,000.00

Cash
$10,000.00
Paid by others
$0.00
Total
$10,000.00

Also funds 137 other sitting lawmakers.

Derived recipient stock · Jul 24, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Dec 13, 2024 to Feb 24, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100987101, 101032904, 101060248.

Texas Sands PAC$8,000.00

Texas Sands PAC

$8,000.00

Cash
$8,000.00
Paid by others
$0.00
Total
$8,000.00

Also funds 121 other sitting lawmakers.

Derived recipient stock · Jul 3, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Sep 18, 2024 to Dec 10, 2024. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100987101.

Texas HDCC$7,000.00

Texas HDCC

$7,000.00

Cash
$7,000.00
Paid by others
$0.00
Total
$7,000.00

Also funds 2 other sitting lawmakers.

Derived recipient stock · Nov 3, 2024 to May 12, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · on Apr 30, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101060248.

Money

Missing data does not establish zero giving. Display amounts are rounded.

×

Texas Trial Lawyers Association PAC

$10,000.00

Cash
$10,000.00
Paid by others
$0.00
Total
$10,000.00

Also funds 137 other sitting lawmakers.

Derived recipient stock · Jul 24, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Dec 13, 2024 to Feb 24, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100987101, 101032904, 101060248.

×

Texas Sands PAC

$8,000.00

Cash
$8,000.00
Paid by others
$0.00
Total
$8,000.00

Also funds 121 other sitting lawmakers.

Derived recipient stock · Jul 3, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Sep 18, 2024 to Dec 10, 2024. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100987101.

×

Texas HDCC

$7,000.00

Cash
$7,000.00
Paid by others
$0.00
Total
$7,000.00

Also funds 2 other sitting lawmakers.

Derived recipient stock · Nov 3, 2024 to May 12, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · on Apr 30, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101060248.

Votes

No floor vote loaded for this bill.

Fiscal

No fiscal note in the loaded record.

How this was graded

Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.

FILED BEFORE

Filed 2 times: 88R and 89R. Checked against 88R only.

88R HB 4942

by Rep. Bernal, same lead author · Died in committee · reworked

Introduced text

Last action, Mar 23, 2023: Referred to Urban Affairs

Relating to the amount of an expenditure made by a municipality for which competitive bidding is required.

Caption, 88R bill history

Sources

Texas House · Filed Mar 14, 2025

04/07/2025 H Referred to Intergovernmental Affairs: Apr 7 2025 5:28PM

Texas Legislature Online · Introduced

Data snapshot Oct 26, 2026 at 4:19 AM CDT. Grades, charges, quotes and corrections follow the published record.

House committee · Intergovernmental Affairs · Final status: Died in committee

Companion

SB 830 by Parker (very similar)

HB 4084 by Little (duplicate)

Subjects

City Government--Finance

Purchasing--Local

COMPETITIVE BIDDING

HISTORICALLY UNDERUTILIZED BUSINESSES

Text

The text as introduced · 290 words

By: Bernal
H.B. No. 5405

A BILL TO BE ENTITLED

AN ACT

relating to the amount of an expenditure made by a

municipality for which competitive bidding is required.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 252.021(a), Local Government Code, is

amended to read as follows:

(a) Before a municipality may enter into a contract that

requires an expenditure of more than $100,000 [ $50,000 ] from one or

more municipal funds, the municipality must:

(1) comply with the procedure prescribed by this

subchapter and Subchapter C for competitive sealed bidding or

competitive sealed proposals;

(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 2. Section 252.0215, Local Government Code, is

amended to read as follows:

Sec. 252.0215. COMPETITIVE BIDDING IN RELATION TO

HISTORICALLY UNDERUTILIZED BUSINESS. A municipality, in making an

expenditure of more than $3,000 but less than $100,000 [ $50,000 ],

shall contact at least two historically underutilized businesses on

a rotating basis, based on information provided by the comptroller

pursuant to Chapter 2161, Government Code. If the list fails to

identify a historically underutilized business in the county in

which the municipality is situated, the municipality is exempt from

this section.

SECTION 3. The changes in law made by this Act apply only to

a purchase made on or after the effective date of this Act. A

purchase made before the effective date of this Act is governed by

the law as it existed immediately before the effective date of this

Act, and that law is continued in effect for that purpose.

SECTION 4. This Act takes effect September 1, 2025.