Regular Session
Texas Comptroller of Public Accounts (Statewide Procurement Division)
Key implementation requirements and action items for compliance with this legislation
Review existing Master Service Agreements (MSAs) and Term Contracts with the Comptroller’s Statewide Procurement Division. If your contract explicitly lists the 116-inch/280 HP limits in the scope of work (rather than just referencing the statute), you must request a contract amendment to sell newly eligible vehicles.
Update training for government sales teams and bid departments. Staff must stop filtering out inventory based on the old statutory limits. Ensure bid response teams understand that "non-compliant" flags for high-horsepower vehicles are no longer valid for Texas state solicitations.
This law reduces documentation burdens. You are no longer required to file waiver requests or justifications for vehicles exceeding the previous dimensions. Standard federal emissions and safety compliance documentation must still be maintained.
There are no new state fees associated with this change. The primary cost impact is administrative: the internal labor required to update inventory databases and bid templates.
While the *statute* no longer prohibits these vehicles, agency policy may still restrict them. The repeal allows the purchase of larger vehicles, but it does not mandate it. Agencies are still bound by budget constraints and "Best Value" statutes. We expect the Comptroller to pivot toward stricter fuel economy or TCO standards to control costs in the absence of the horsepower cap. Do not assume a shift toward luxury or high-performance fleets without verifying specific agency needs.
Our government affairs experts can walk you through this bill's specific impact on your operations.
Schedule ConsultationInformation 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.
This bill's path through the Texas Legislature
BILL ANALYSIS
| Senate Research Center | S.B. 1364 |
| 89R3925 CS-D | By: Nichols |
| Business & Commerce | |
| 3/13/2025 | |
| As Filed |
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
Section 2158.003 of the Government Code requires all state agencies to purchase passenger vehicles with a wheelbase no longer than 113 inches and no more than 160 net horsepower. Enacted in 2009, these restrictions were designed to prohibit agencies from procuring high performing passenger cars, with exceptions related to law enforcement vehicles, buses, and ambulance.
However, these requirements are no longer compatible with the current market of passenger vehicles. Today's vehicle design standards are bigger and have higher engine outputs compared to vehicles from 15 years ago. For example, a 2024 base model Toyota Corolla has 169 horsepower and a 2024 Ford Escape has 250 horsepower.
This bill would repeal the wheel base and horsepower restrictions found in statute and give agencies more freedom to determine which vehicle best suits their specific needs. With the repeal of this section, agencies will have a larger pool of vehicles to select from and have greater capabilities to select the best value vehicle for the needs of the state.
As proposed, S.B. 1364 amends current law relating to the repeal of wheelbase and horsepower restrictions for the state's passenger vehicle fleet.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Repealer: Section 2158.003 (Wheelbase and Horsepower Restrictions), Government Code.
SECTION 2. Effective date: September 1, 2025.
| S.B. No. 1364 | ||
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| relating to the repeal of wheelbase and horsepower restrictions for | ||
| the state's passenger vehicle fleet. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Section 2158.003, Government Code, is repealed. | ||
| SECTION 2. This Act takes effect September 1, 2025. | ||
| TO: | Honorable Charles Schwertner, Chair, Senate Committee on Business & Commerce |
| FROM: | Jerry McGinty, Director, Legislative Budget Board |
| IN RE: | SB1364 by Nichols (Relating to the repeal of wheelbase and horsepower restrictions for the state's passenger vehicle fleet.), As Introduced |
| Source Agencies: | 304 Comptroller of Public Accounts, 452 Department of Licensing and Regulation, 455 Railroad Commission, 529 Health and Human Services Commission, 582 Commission on Environmental Quality, 601 Department of Transportation, 608 Department of Motor Vehicles, 701 Texas Education Agency, 710 Texas A&M University System Administrative and General Offices, 717 Texas Southern University, 719 Texas State Technical College System Administration, 720 The University of Texas System Administration, 758 Texas State University System, 768 Texas Tech University System Administration, 769 University of North Texas System Administration, 783 University of Houston System Administration, 802 Parks and Wildlife Department |
| LBB Staff: | JMc, RStu, LCO, CSmi |
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Common questions about SB1364
SB1364 repeals Section 2158. 003 of the Government Code, eliminating the statutory wheelbase (116 inches) and horsepower (280 HP) restrictions on passenger vehicles purchased by the state. This deregulatory action immediately expands the catalog of eligible inventory for automotive dealers and fleet management companies selling to the State of Texas, effective for the FY2026 procurement cycle.
SB1364 was authored by Texas Senator Robert Nichols during the Regular Session.
SB1364 was signed into law by Governor Greg Abbott on May 21, 2025.
SB1364 is enforced by Texas Comptroller of Public Accounts (Statewide Procurement Division).
The compliance urgency for SB1364 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
The cost impact of SB1364 is estimated as "low". This may vary based on industry and implementation requirements.
SB1364 addresses topics including purchasing, purchasing--state, state agencies, boards & commissions, vehicles & traffic and vehicles & traffic--general.
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