TX HB1198

Removes the $100,000 cap on construction services contracts where municipalities can give preference to local bidders whose bids are within 5% of the lowest non-resident bid

Maintains the $500,000 threshold for other purchases (real property, personal property, and services) where local bidder preference may apply

Allows municipalities to award contracts to local bidders instead of the lowest bidder if the governing body determines in writing that the local bidder offers the best combination of price and economic development benefits, including local employment and increased tax revenues

Applies only to contracts where the initial bid solicitation notice is given on or after September 1, 2025