Latest Changes and Looking Ahead
When the Texas Legislature meets, there are always changes that impact procurement. By this time, your county should have incorporated the changes from the 89th Legislative Session into your Purchasing Policy and Procedures Manual and Specifications. When you search the Texas statutes, these changes are now incorporated into the existing laws. If you search the individual bills, you will more easily see the changes that were made. The following summarizes important changes from the 89th Legislative Session:
The Big Change!
SB 1173: Increased the formal bid limit for counties from $50,000 to $100,000. The law still states that purchases may not be broken into separate purchases to avoid the purchasing limit. This applies to categories of like purchases, such as law enforcement vehicles. If the purchases for the fiscal year will exceed the $100,000 limit, the formal bid process, advertising, and formal award must be completed for all the purchases in that category.
Additional Changes That Impact Procurement and May Require Changes in Your Policy and Procedures Manual and Specifications
HB 206: A county may not require a cash bond as a condition of approval for the construction of a pipeline in the county’s boundaries.
HB 1261: The procedures for notification and publication of abandoned or unclaimed property were modified to include using the internet website and social networking website of the law enforcement agency that seized the property. See the bill for details that must be included in the notifications and other requirements.
HB 1500: Reauthorization of the Department of Information Resources (DIR) included changes to mandatory training requirements for governmental entities.
HB 1922: Provided procedures for a cause of action for a claim for damages asserted by a governmental entity for certain claims for damages caused by an alleged construction defect. Details for the claim are described.
HB 2960: Stated when a contract may be void as against public policy and the extent that a venue provision in a contract is void.
HB 3005: Related to the payment of funds under certain construction contracts.
HB 5331: Related to the enforceability of certain state agency and local government contract language regarding required security incident notifications.
SB 480: Allowed a local government to contract with another local government, the state, or the federal government to jointly participate in research or planning activities related to water resources.
SB 687: Related to liability for land surveying to which a governmental entity is a party. This legislation is very specific about the required contract wording.
SB 1062: Provided that in lieu of publishing a notice in a newspaper, a governmental entity may publish a notice in a digital newspaper if that digital newspaper meets very specific requirements.
Public Information and Open Meetings Changes
HB 3112: Allows governmental bodies to discuss cybersecurity measures for critical infrastructure in private meetings and exempts related information from public disclosure. Protected details include cybersecurity policies, insurance coverage, reported incidents, and technical data that could pose security risks if shared. However, confidential information may be disclosed if required by law or court order.
HB 4219: Related to a governmental body’s response to a request for public information. Possible penalties are described.
SB 765: Related to the confidentiality of fraud detection and deterrence information under the public information law. Fraud detection information is defined.
Cybersecurity and Artificial Intelligence (AI)
HB 150: Related to the establishment of the Texas Cyber Command (TCC) and the transfer of certain powers and duties of the Department of Information Resources. Requires annual training for all officials and employees of local governmental entities and reporting to the TCC. Access to information resources may be denied if training is not completed.
HB 2818: Established an Artificial Intelligence Division within the Department of Information Resources. Provides administrative authority, including contracting.
HB 3512: Related to AI training programs for certain employees and officials of state agencies and local governments. Among other things, it provides that local government employees and elected and appointed officials who have access to a local government computer system or database and the use of a computer to perform at least 25 percent of the employee’s or official’s required duties must complete a certified AI training program, in addition to other requirements.
SB 1964: Related to the regulation and use of AI systems and the management of data by governmental entities. Among other things, it requires a code of ethics and disclosures by vendors.
What Can We Expect in the 90th Legislative Session?
Prefiling of legislation began on Nov. 9. When the session begins on Jan. 12, we will know some of the proposed legislation that will be considered. Typically, there are approximately 150-200 bills that may have an impact on county procurement. There will be bills that will directly impact our county purchasing law and related state laws, and changes to open records requirements, cybersecurity, and AI.
Perhaps the biggest change in procurement relates to the use of AI in the preparation of solicitation packets by counties and the responses that will be provided by vendors. It is expected that there will be more guardrails proposed in the 90th Legislative Session. These are some concerns that could be addressed:
Use of AI by Procurement Staff and by Vendors
- How to ensure that solicitations comply with current Texas law.
- Accuracy of product or service descriptions that meet the needs of your entity.
- Protection of entity data used in AI tools.
- Knowledge of the appropriate use of AI by electronic bid providers.
- Accuracy of vendor responses to county solicitations.
- Ethical use of AI tools.