Relating to prohibiting certain criteria in a local governmental agency contractor selection process.

89th Legislature, 1st Called Session (2025) Introduced by Cecil Bell

HB 219 limits Texas local procurements to legally required or objective cost/quality/reliability criteria, bans ESG biases, and requires public disclosure of selection criteria.

Filed

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Summary of HB 219 (Session 891, Texas)

Purpose and intent

HB 219 seeks to restrict the criteria that local governmental agencies in Texas may use when procuring goods or services through competitive bidding or procurement processes. The bill aims to ensure that selection criteria are limited to legally required factors or objective, measurable factors directly related to cost, quality, reliability, or legal compliance, and to prohibit preferences based on environmental, social, or governance (ESG) criteria that do not directly tie to those core factors.

Key provisions and changes

New statute added: Section 271.909 to Subchapter Z, Chapter 271, Local Government Code.

Prohibited criteria (Subsection (b)):

Agencies may not consider factors beyond:
(A) Factors required by law; or
(B) Objective, measurable factors directly related to cost, quality, reliability, or legal compliance of the good or service.
No preference allowed for bids based on ESG criteria not directly related to cost, quality, reliability, or legal compliance.

Mandatory disclosure (Subsection (c)):

Agencies must provide written contract selection criteria in all publicly available bid specifications.
Agencies must include written contract selection criteria in the solicitation documents at the time of vendor solicitation.

Enforcement and remedies (Subsections (d)-(g)):

Individuals may report suspected violations to the Texas Attorney General.
If a violation is found:
During ongoing procurement (no contract awarded): AG directs removal of prohibited criteria in writing.
After a contract has been awarded but before execution or complete performance: AG directs termination within 10 days of notice, with written proof of termination provided to the AG.
If the agency fails to terminate or provide proof within the prescribed period, the contract is void.
The Attorney General may seek injunctive or declaratory relief to enforce compliance.

Who is affected

Local governmental agencies in Texas that conduct competitive procurements for goods or services.

Vendors and bidders participating in these procurement processes.

The Texas Attorney General’s office as the enforcement authority.

Procedural and timeline aspects

Application scope: Applies to contract selections initiated on or after the act’s effective date.

Effective date: The act takes effect on the 91st day after the last day of the legislative session.

Enforcement timeline: Clear timelines for AG-directed removal of prohibited criteria, or termination of ongoing contracts, with specific notice and proof requirements.

Compliance burden: Agencies must publicly disclose criteria and ensure selection criteria are limited to legally mandated or objective, measurable factors directly tied to cost, quality, reliability, or legal compliance.

Notes

The bill emphasizes transparency in procurement by requiring written criteria in public bid specs and solicitation documents.

It establishes a mechanism for enforcing compliance and potential contract termination if prohibited criteria are used.