SB1173

SB1173 raises specified local-government purchasing thresholds from $50,000 to $100,000. It gives covered entities more room to make smaller purchases without the procurement procedures triggered by those thresholds, but it does not abolish competitive purchasing or other applicable requirements. Filed without the governor’s signature May 29, 2025, it took effect September 1, 2025. The changes apply to purchases made on or after that date; earlier purchases remain under prior law. Final law, sections 1–12; Official history.

Schools and emergency-services districts: School-district goods and services contracts totaling $100,000 or more in each 12-month period must use the applicable method providing best value from the statute’s seven options, subject to existing exceptions. This is not a universal lowest-bid rule; produce and vehicle-fuel purchases remain outside this provision. For emergency-services districts, the competitive-bid trigger becomes more than $100,000 for one item or service, or the same or similar types in a fiscal year, with the existing subsection (i) exception retained. Final law, sections 1–2; School purchasing context; Emergency-services purchasing context.

Cities: The covered municipal-contract trigger becomes more than $100,000, retaining competitive sealed bidding/proposals, reverse auctions and authorized construction-delivery alternatives. Separately, cities must contact at least two historically underutilized businesses on a rotating basis for expenditures over $3,000 but under $100,000, rather than under $50,000. That outreach rule retains its exception when the comptroller’s list identifies no such business in the city’s county. Final law, sections 3–4.

Counties: The general covered purchasing-contract trigger becomes an expenditure exceeding $100,000; competitive bidding/proposals and the existing alternative methods remain. A separate exemption for an item available from only one supplier rises to purchases of $100,000 or less. The general rule’s safeguard against intentionally splitting purchases to evade procurement remains unchanged. For county road-department equipment, materials and supplies under Transportation Code 252.312, purchases of $100,000 or less may be negotiated without advertised bids only if the road engineer recommends it, the commissioners court finds it in the county’s best interest, and the required requisition is approved. The express prohibition against dividing or reducing a road purchase to avoid bidding remains. Final law, sections 5–6 and 9; County purchasing and anti-splitting rule; Road-purchasing context.

Other covered contracts: Local Government Code 271.024 now applies its bidding procedure above $100,000 when another statute already requires competitive bidding for construction, repair or renovation of real-property improvements. Its covered governmental entities include counties, common or independent school districts, hospital districts or authorities, housing authorities and their agencies or instrumentalities; this is not a new mandate for every construction contract. In the Certificate of Obligation Act framework, section 271.054 raises the procurement trigger to an expenditure, obligation or liability over $100,000, retaining authorized alternative project delivery. “Issuer” there means a municipality, county or hospital district established under Health and Safety Code chapter 281. Finally, the small-contract exception to Transportation Code 451.110(a), for covered metropolitan rapid-transit authorities, rises to $100,000 or less; real-property, personal/professional-services and existing-transit-system acquisition exceptions remain. Final law, sections 7–8 and 10; Construction-procedure entities; Certificate-act context; Issuer definition; Rapid-transit definitions; Transit-purchasing context.