Regular Session
Government Affairs & Regulatory Compliance Analysis
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.
Sen. Robert Nichols·Senate Bill·Regular Session
Texas Comptroller of Public Accounts (Statewide Procurement Division)
This legislation has regulatory implications for the following Texas businesses and organizations:
Standard regulatory changes (effective 2025-09-01). Review during normal business planning.
Affected business types:
lowMinimal cost impact anticipated.
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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 Ensure bid response teams understand that "non-compliant" flags for high-horsepower vehicles are no longer valid for Texas state solicitations.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.
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 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
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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 regulatory priority for SB1364 is rated as "low". Businesses and organizations should review the legislation to understand potential impacts.
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.
Key dates for SB1364: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.
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.
