Bill Text: TX HB1198 | 2025-2026 | 89th Legislature | Introduced

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Bill Title: Relating to consideration of the location of a bidder's principal place of business in certain municipal contracts.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-11-12 - Filed [HB1198 Detail]

Download: Texas-2025-HB1198-Introduced.html

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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.