Signed Into Law
Signed May 29, 2025Effective 2025-09-01
SB1173

Regular Session

Relating to the amount of an expenditure made by certain political subdivisions for which a competitive procurement method may be required.

Government Affairs & Regulatory Compliance Analysis

Business Impact

Who SB1173 Affects

Regulatory Priority: moderate

Notable regulatory updates (effective 2025-09-01). Consider how these changes may affect your operations.

Estimated Cost Impact

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Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Immediate Action Plan

Operational Changes Required

Strategic Ambiguities & Considerations

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

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Quick Reference

Frequently Asked Questions

Common questions about SB1173

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What does Texas SB1173 do?

SB1173 doubles the mandatory competitive bidding threshold from $50,000 to $100,000 for Texas local governments (school districts, cities, counties, and special districts), effective September 1, 2025. This legislation allows vendors to secure contracts up to $99,999. 99 via direct negotiation or informal quotes, bypassing lengthy RFP processes, provided aggregate spend limits are monitored.

Q

Who authored SB1173?

SB1173 was authored by Texas Senator Charles Perry during the Regular Session.

Q

When was SB1173 signed into law?

SB1173 was signed into law by Governor Greg Abbott on May 29, 2025.

Q

Which agencies enforce SB1173?

SB1173 is enforced by County Commissioners Courts, Emergency Services District Boards, Municipal Governing Bodies (City Councils), Regional Transit Authorities and School District Boards of Trustees.

Q

How significant are the changes in SB1173?

The regulatory priority for SB1173 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of SB1173?

The cost impact of SB1173 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does SB1173 address?

SB1173 addresses topics including city government, city government--finance, county government, county government--finance and education.

Q

What are the key dates for SB1173?

Key dates for SB1173: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.

Legislative data provided by LegiScanLast updated: January 11, 2026