HB3623

Regular Session

Relating to the manner of solicitation of bids for certain purchases by the comptroller of public accounts and state agencies.

LowStandard timeline

Low Cost

Effective:2025-09-01

Enforcing Agencies

Comptroller of Public Accounts • State Agencies (purchasing departments)

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: September 1, 2025
Compliance Deadline: August 31, 2025 (Complete all CMBL profile updates before the law takes effect).
Agency Rulemaking: No formal rulemaking is mandated. However, state agencies will update internal procurement manuals immediately. Do not expect a "grace period" for legacy communication methods.

Immediate Action Plan

Audit CMBL Profile: Log in to the Comptroller’s portal and remove any legacy contact methods (fax/telex) by August 31, 2025.
Update IT Whitelists: Ensure your email servers are configured to accept "online electronic transmissions" from all relevant state agency domains to prevent bid invitations from landing in spam folders.
Amend Standard Terms: Update your organization's standard government contract templates to remove references to telegraphic notice.

Operational Changes Required

Contracts

Review Notice Provisions: Audit existing Master Service Agreements (MSAs) and vendor contracts with state agencies. If your "Notices" or "Solicitation" clauses reference "telegraph" or rely on vague statutory references, execute an amendment to align language with the amended Section 2156.063.
Define "Online": Ensure future contracts specify that "online electronic transmission" constitutes a direct notification (email) rather than a passive posting on a portal.

Hiring/Training

Bid Capture Protocols: Instruct sales and compliance teams that the state is statutorily narrowing acceptable communication channels. Teams monitoring physical mail or fax lines must shift focus to digital portals.

Reporting & Record-Keeping

CMBL Data Audit: You must log into the CMBL and TxSmartBuy systems to verify that your "Solicitation Contact" is an active, monitored email address, not a generic inbox or a fax number.
Digital Verification: Implement internal logging for receipt of digital solicitations to establish a timeline for potential bid protests.

Fees & Costs

None: There are no new fees associated with this legislation.

Strategic Ambiguities & Considerations

"Push" vs. "Pull" Notification:

The statute changes "on-line" to "online electronic transmission" but does not explicitly define the mechanics of that transmission.

The Risk: An agency may interpret this to mean posting a bid to a proprietary portal (requiring you to "pull" the data) satisfies the requirement, without sending an affirmative email notification (a "push").
The Watch Item: Monitor the Comptroller’s guidance. Until clarified, assume the burden is on the vendor to check the Electronic State Business Daily (ESBD) actively, rather than waiting for an email.

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Legislative Timeline

This bill's path through the Texas Legislature

TopicsPurchasing Purchasing--state State Agencies, Boards & Commissions Competitive Bidding Comptroller of Public Accounts

Official Analysis

View HRO Analysis View All Bill Documents

BILL ANALYSIS

H.B. 3623

By: McQueeney

Delivery of Government Efficiency

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Current law requires the comptroller and each state agency making a purchase using the open market purchasing procedure to solicit bids by direct mail, telephone, telegraph, facsimile transmission, or online electronic transmission. The author has informed the committee that the telegraph is not an available or practical means of soliciting bids because it is an obsolete system that is no longer used as a communication method. H.B. 3623 seeks to reform that provision in current law by removing the telegraph as an authorized means of soliciting bids.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 3623 amends the Government Code to remove the use of telegraph from the authorized methods by which the comptroller of public accounts and each state agency making an open market purchase is required to solicit bids under the State Purchasing and General Services Act.

EFFECTIVE DATE

September 1, 2025.

House Authors

Rep. John McQueeneyRepublican · Primary Author

Senate Sponsor

Sen. Judith ZaffiriniDemocrat · Primary Sponsor

Bill Text(with markup)

H.B. No. 3623

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	relating to the manner of solicitation of bids for certain
	purchases by the comptroller of public accounts and state agencies.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Section 2156.063, Government Code, is amended to
	read as follows:
	Sec. 2156.063. SOLICITATION OF BIDS. The comptroller and
	each state agency making a purchase shall solicit bids under this
	subchapter by:
	(1) direct mail;
	(2) telephone;
	(3) [~~telegraph;~~
	[~~(4)~~] facsimile transmission; or
	(4) online [~~(5) on-line~~] electronic transmission.
	SECTION 2. This Act takes effect September 1, 2025.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


March 31, 2025

TO:	Honorable Giovanni Capriglione, Chair, House Committee on Delivery of Government Efficiency

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	HB3623 by McQueeney (Relating to the manner of solicitation of bids for certain purchases by the comptroller of public accounts and state agencies.), As Introduced

No significant fiscal implication to the State is anticipated.

It is assumed that any costs associated with the bill could be absorbed using existing resources.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

304 Comptroller of Public Accounts

LBB Staff:

JMc, RStu, CSmi

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Frequently Asked Questions

Common questions about HB3623

What does Texas HB3623 do?

HB 3623 formally eliminates "telegraph" as a lawful method for state bid solicitation and standardizes the definition of "online electronic transmission," effective September 1, 2025. While a technical cleanup, this legislation signals the Comptroller’s strict enforcement of digital-first procurement; vendors must ensure their Centralized Master Bidders List (CMBL) profiles prioritize digital reception to avoid missed solicitations. Implementation Timeline Effective Date: September 1, 2025 Compliance Deadline: August 31, 2025 (Complete all CMBL profile updates before the law takes effect).

Who authored HB3623?

HB3623 was authored by Texas Representative John McQueeney during the Regular Session.

When was HB3623 signed into law?

HB3623 was signed into law by Governor Greg Abbott on June 20, 2025.

Which agencies enforce HB3623?

HB3623 is enforced by Comptroller of Public Accounts and State Agencies (purchasing departments).

How urgent is compliance with HB3623?

The compliance urgency for HB3623 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of HB3623?

The cost impact of HB3623 is estimated as "low". This may vary based on industry and implementation requirements.

What topics does HB3623 address?

HB3623 addresses topics including purchasing, purchasing--state, state agencies, boards & commissions, competitive bidding and comptroller of public accounts.

Legislative data provided by LegiScanLast updated: November 25, 2025

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