TX HB4314

Prohibits local governmental agencies from considering any factors in competitive procurement processes other than those required by law or that are objective, measurable, and directly related to cost, quality, reliability, or legal compliance of the good or service

Bans preferences for bids based on environmental, social, and governance (ESG) criteria that do not directly relate to cost, quality, reliability, or legal compliance

Requires governmental agencies to provide written contract selection criteria in all publicly available bid specifications and solicitation documents

Allows any person to report suspected violations to the attorney general, who can direct agencies to remove prohibited criteria from ongoing procurements or terminate awarded contracts within 10 days

Contracts that are not terminated as directed by the attorney general automatically become void, and the attorney general may bring legal action for injunctive or declaratory relief to enforce compliance

Takes effect September 1, 2025, and applies only to contractor selection processes initiated on or after that date