JD Key Consulting Logo
Signed Into Law
Signed June 20, 2025Effective 2025-06-20
HB5308

Regular Session

Relating to certain authorities of the adjutant general for procurement and construction.

Government Affairs & Regulatory Compliance Analysis

HB5308: Government Affairs Overview

HB 5308 fundamentally restructures procurement for the Texas Military Department (TMD) by designating the Adjutant General (AG) as a "body politic and corporate" with independent authority over real estate and construction. This decentralization removes military facility projects from the oversight of the Texas Facilities Commission, requiring general contractors, architects, and real estate developers to engage directly with the AG’s office for all future armory and facility projects.

Rep. Philip Cortez·House Bill·Regular Session

Low
Low Cost
Effective:2025-06-20

Need Help Navigating This Legislation?

JD Key Consulting provides strategic guidance on Texas regulatory compliance and legislative impact for your business.

HB5308
Relating to certain authorities of the adjutant general for procurement and construction.
Low Urgency
Passed with Opposition
House Vote139 - 3
YEA
98% in favor142 voting
Senate Vote30 - 1
YEA
97% in favor31 voting
4
Total Opposition Votes
Cost Impact
Low
Effective
2025-06-20
Enforcing Agencies
Texas Military Department
Primary Author: Rep. Philip Cortez
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: June 20, 2025 (Effective immediately upon signature due to supermajority vote).
  • Compliance Deadline: Immediate. All new solicitations and contract negotiations must recognize the AG's independent authority.
  • Agency Rulemaking: The TMD is not explicitly mandated to create new administrative rules, but the broad grant of "all powers necessary" suggests the AG will issue internal procurement directives. Expect a "regulatory gray zone" for 60-90 days while the TMD establishes its specific procurement protocols separate from standard state processes.

Immediate Action Plan

  • 1. Audit Active Bids: Immediately review any pending proposals for military facilities. Contact the procurement officer to confirm if the solicitation will proceed or be re-issued under the AG's new authority.
  • 2. Update Legal Templates: Revise standard Master Service Agreements (MSAs) to reflect the Adjutant General as the primary counterparty for military projects.
  • 3. Adjust COIs: Notify your insurance broker to prepare to list the Adjutant General as a distinct certificate holder for upcoming awards.
  • 4. Monitor Texas Register: Assign compliance staff to watch for emergency rulemaking from the TMD defining their new procurement processes.

Operational Changes Required

Contracts

  • Counterparty Updates: Future contracts must cite the "Adjutant General of the State of Texas" as the contracting entity under Section 437.054(a), Government Code, rather than the Texas Facilities Commission.
  • Novation Risk: If you hold active multi-year agreements for military facility maintenance managed by TFC, prepare for potential contract novation or administrative transfer to the TMD.
  • Insurance: Update Certificates of Insurance (COI) for new bids. The "Certificate Holder" must specifically name the Adjutant General in their capacity as a public authority to ensure payment processing.

Hiring/Training

  • Bid Monitoring: Direct your business development teams to monitor TMD-specific channels. Reliance on general Electronic State Business Daily (ESBD) filters for "Texas Facilities Commission" will result in missed opportunities for military projects.
  • Proposal Strategy: Retrain proposal writers to address the AG’s specific strategic priorities rather than generic state construction standards.

Reporting & Record-Keeping

  • Vendor Registration: Verify vendor status directly with the TMD. The AG's new corporate status may necessitate agency-specific pre-qualification forms distinct from the Centralized Master Bidders List (CMBL).

Fees & Costs

  • No New Statutory Fees: There are no new state fees.
  • Administrative Overhead: Anticipate a slight increase in administrative costs associated with managing a separate procurement silo (TMD) distinct from the centralized state pool.

Strategic Ambiguities & Considerations

  • Procurement Code Applicability: The statute grants the AG "all powers necessary." It is legally ambiguous whether this exempts the AG from specific chapters of the Texas Government Code regarding competitive bidding thresholds or standard "Best Value" determinations.
  • Dispute Resolution: While the AG is defined as a "body politic," sovereign immunity remains. However, the specific administrative process for bid protests or contract disputes may now diverge from established State Office of Administrative Hearings (SOAH) procedures used by other agencies.

Need Compliance Guidance on This Legislation?

JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.

Schedule a Consultation

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.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Mar 14, 2025
Passed House
May 14, 2025
Passed Senate
May 26, 2025
Signed
Jun 20, 2025
Effective
Jun 20, 2025
TopicsPurchasingPurchasing--stateAdjutant General
03

House Authors

Rep. Philip CortezDemocrat · Primary Author
Joint Authors

Senate Sponsor

Sen. Donna CampbellRepublican · Primary Sponsor

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

Explore more bills from this author and on related topics

More from Rep. Philip Cortez

View all bills by Rep. Philip Cortez

Related by Topic

View more Purchasing legislation
Quick Reference

Frequently Asked Questions

Common questions about HB5308

Q

What does Texas HB5308 do?

HB 5308 fundamentally restructures procurement for the Texas Military Department (TMD) by designating the Adjutant General (AG) as a "body politic and corporate" with independent authority over real estate and construction. This decentralization removes military facility projects from the oversight of the Texas Facilities Commission, requiring general contractors, architects, and real estate developers to engage directly with the AG’s office for all future armory and facility projects.

Q

Who authored HB5308?

HB5308 was authored by Texas Representative Philip Cortez during the Regular Session.

Q

When was HB5308 signed into law?

HB5308 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce HB5308?

HB5308 is enforced by Texas Military Department (Adjutant General).

Q

How significant are the changes in HB5308?

The regulatory priority for HB5308 is rated as "low". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of HB5308?

The cost impact of HB5308 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does HB5308 address?

HB5308 addresses topics including purchasing, purchasing--state and adjutant general.

Q

What are the key dates for HB5308?

Key dates for HB5308: Effective date is 2025-06-20. Consult with legal counsel regarding applicability.

Need Strategic Guidance on This Legislation?

JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026