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A Look at Contract, Procurement and HUB Legislation

Bills relating to competitive bidding, contract validity, exempting certain contracts and reporting requirements are currently making their way through the state’s Legislature.

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Several bills related to contracting, procurement and historically underutilized businesses (HUB) have been highlighted on theDepartment of Information Resources (DIR) list of legislation to watch.

HB 1132, proposed by Rep. David Spiller (R-68), would raise the expenditure threshold that triggers competitive bidding requirements for municipalities and other governmental entities from $50,000 to $100,000, allowing government entities to procure necessary items more efficiently. Also in the bill are several amendments relating to expenditures made by political subdivisions.

HB 1817, proposed by Rep. Giovanni Capriglione (R-98), looks to amend current laws relating to the validity of a contract in which a disclosure of interested parties is required. For context, the Legislature enacted a bill in 2015 requiring governmental entities to file a disclosure of interested parties, otherwise known as Form 1295, with the Texas Ethics Commission. Fast forward to 2022, a development company, Legacy Hutto LLC, sued the city of Hutto for breach of contract. The judge presiding over the case found the city had not verified whether a Form 1295 was submitted, deeming it noncompliant with state transparency laws. HB 1817 aims to prevent this type of situation by updating the disclosure of interested parties statute to allow a cure period of 10 business days if a Form 1295 is not on file.

HB 3013, proposed by Rep. Shelby Slawson (R-59), would exempt certain contracts from procurement notice requirements. More specifically, the legislation would require state agencies to notify interested parties at least two months before an agency issues a solicitation for procurement unless it is for a contract entered into by the state comptroller under Section 2155.061 or for a contract for services necessary to respond to a natural disaster.

HB 4553, proposed by Rep. Oscar Longoria (D-35), would expand and align the list of eligible customers for DIR’s services. State law establishes which entities are eligible customers, however, these lists aren't uniform, making it difficult to understand which entities qualify. As a result, the bill would create a singular, organized list of eligible entities to remedy this.

SB 987, proposed by Sen. Lois Kolkhorst (R-18), will eliminate requirements to forward consultant reports to oversight agencies. Instead, the comptroller’s office will summarize all audit activity into one comprehensive report, which will be submitted to the governor, state auditor’s office and Legislative Budget Board by Feb. 1 every year.
Katya Maruri is an Orlando-based e.Republic staff writer. She has a bachelor’s degree in journalism and a master’s degree in global strategic communications from Florida International University.