1. (a) Before a municipality may enter into a contract that requires an expenditure of more than $100,000 from one or more municipal funds, the municipality must:

   1. (1) comply with the procedure prescribed by this subchapter and Subchapter C for competitive sealed bidding or competitive sealed proposals;
   2. (2) use the reverse auction procedure, as defined by Section 2155.062(d), Government Code, for purchasing; or
   3. (3) comply with a method described by Chapter 2269, Government Code.
2. (b) A municipality may use the competitive sealed proposal procedure for the purchase of goods or services, including high technology items and insurance.
3. (c) The governing body of a municipality that is considering using a method other than competitive sealed bidding must determine before notice is given the method of purchase that provides the best value for the municipality. The governing body may delegate, as appropriate, its authority under this subsection to a designated representative. If the competitive sealed proposals requirement applies to the contract, the municipality shall consider the criteria described by Section 252.043(b) and the discussions conducted under Section 252.042 to determine the best value for the municipality.
4. (d) This chapter does not apply to the expenditure of municipal funds that are derived from an appropriation, loan, or grant received by a municipality from the federal or state government for conducting a community development program established under Chapter 373 if under the program items are purchased under the request-for-proposal process described by Section 252.042. A municipality using a request-for-proposal process under this subsection shall also comply with the requirements of Section 252.0215.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Amended by Acts 1989, 71st Leg., ch. 1, Sec. 56(b), eff. Aug. 28, 1989;

Acts 1993, 73rd Leg., ch. 749, Sec. 1, eff. Sept. 1, 1993;

Acts 1993, 73rd Leg., ch. 757, Sec. 11, eff. Sept. 1, 1993;

Acts 1995, 74th Leg., ch. 45, Sec. 1, eff. May 5, 1995;

Acts 1997, 75th Leg., ch. 790, Sec. 1, eff. June 17, 1997;

Acts 1999, 76th Leg., ch. 571, Sec. 1, eff. June 18, 1999;

Acts 2001, 77th Leg., ch. 115, Sec. 1, eff. Sept. 1, 2001;

Acts 2001, 77th Leg., ch. 436, Sec. 2, eff. May 28, 2001;

Acts 2001, 77th Leg., ch. 436, Sec. 3, eff. May 28, 2001;

Acts 2001, 77th Leg., ch. 1409, Sec. 1, eff. Sept. 1, 2001;

Acts 2003, 78th Leg., ch. 217, Sec. 1, eff. June 18, 2003;

Acts 2003, 78th Leg., ch. 1276, Sec. 12.003, eff. Sept. 1, 2003.

Acts 2007, 80th Leg., R.S., Ch. 434 (S.B. 1765), Sec. 1, eff. September 1, 2007.

Acts 2007, 80th Leg., R.S., Ch. 1213 (H.B. 1886), Sec. 1, eff. September 1, 2007.

Acts 2007, 80th Leg., R.S., Ch. 1272 (H.B. 3517), Sec. 1, eff. September 1, 2007.

Acts 2007, 80th Leg., R.S., Ch. 1272 (H.B. 3517), Sec. 2, eff. September 1, 2007.

Acts 2011, 82nd Leg., R.S., Ch. 1129 (H.B. 628), Sec. 4.01, eff. September 1, 2011.

Acts 2013, 83rd Leg., R.S., Ch. 161 (S.B. 1093), Sec. 22.002(20), eff. September 1, 2013.

Acts 2025, 89th Leg., R.S., Ch. 256 (S.B. 1173), Sec. 3, eff. September 1, 2025.