According to the Legislative Budget Board (LBB), SB 1364 is not expected to have a significant fiscal impact on the state. The LBB projects that any potential savings or costs resulting from the repeal of the current wheelbase and horsepower restrictions on the state’s passenger vehicle fleet would be insignificant. The lack of a significant fiscal implication suggests that agency-level operational changes related to fleet procurement or management will likely be absorbed within existing budgets.

Additionally, there is no anticipated fiscal impact on local governments, meaning the repeal of these restrictions is not expected to influence municipal or county-level vehicle policies or expenditures. This aligns with the nature of the statute being repealed, which applies specifically to state agency vehicle procurement.

The agencies surveyed in the fiscal analysis include a broad range of state entities—from transportation and environmental regulation to higher education systems—indicating that the change has been evaluated across departments that may manage their own fleets. Their consensus suggests that any operational adjustments will be minor and financially manageable under existing structures.

SB 1364 proposes repealing Section 2158.003 of the Texas Government Code, which imposes outdated restrictions on the wheelbase and horsepower of passenger vehicles purchased by state agencies. Enacted in 2009, these constraints aimed to curb excessive performance in government-owned vehicles. However, modern vehicle design standards have rendered the restrictions obsolete. For example, current base models like the Toyota Corolla and Ford Escape now exceed the statutory horsepower limits—demonstrating the practical misalignment of the law with current market norms.

By removing these specifications, SB 1364 would grant agencies more discretion in selecting vehicles that meet their operational needs and align with contemporary performance and efficiency standards. This expansion of choice could help agencies obtain better value and functionality from their fleets without being constrained by outdated statutory limitations.

Though the Legislative Budget Board finds no significant fiscal impact, and agencies are expected to operate within existing budgets, this repeal removes a structural constraint that previously limited the potential for overspending on fleet vehicles. As such, strong internal controls and clear procurement standards will be vital to ensure taxpayer dollars are used responsibly.

This bill should be accompanied by an expectation that state agencies will not use this repeal to justify unnecessary vehicle purchases or fleet expansions but rather to make better, more cost-effective decisions aligned with operational needs. Fiscal responsibility must remain central to any broader interpretation of the bill's effects.

Therefore, SB 1364 represents a thoughtful modernization effort, and its passage would remove barriers to efficiency and adaptability in the management of the state’s vehicle fleet. As such, Texas Policy Research recommends that lawmakers vote YES on SB 1364.

• Individual Liberty: Although the bill does not directly regulate or free individuals, it promotes a governance model that respects the principle of individual liberty by removing arbitrary, top-down mandates. State agencies, composed of individuals charged with public stewardship, gain more flexibility in decision-making. This signals a broader commitment to reducing state-imposed limitations that serve no compelling public interest.
• Personal Responsibility: The bill enhances the principle of personal responsibility by placing more discretion—and thus more accountability—on state agencies to manage their vehicle fleets wisely. Without statutory horsepower and wheelbase limits, agencies must now ensure their purchases are mission-appropriate and fiscally sound. This shift from prescriptive oversight to delegated responsibility emphasizes careful, accountable decision-making.
• Free Enterprise: By eliminating outdated restrictions, the bill allows more vehicle manufacturers and models to compete for state contracts. This increases market access and reduces regulatory distortions that previously excluded many modern vehicles. It aligns with a free enterprise system where competition, rather than government specifications, determines procurement outcomes—potentially yielding better value and innovation for taxpayers.
• Private Property Rights: While the bill does not directly address private property, it removes a regulation that indirectly constrains the choices of businesses seeking to sell to the state. Broadening procurement eligibility reaffirms the importance of minimizing unnecessary government interference in the private sector and supports the fair use of property in the service of public needs.
• Limited Government: Fundamentally, SB 1364 is a deregulatory measure that shrinks the scope of statutory control over administrative functions. By repealing unnecessary specifications from the Government Code, the bill supports the principle that the government should only regulate where clearly justified. However, this reduction in regulation should be accompanied by internal safeguards to prevent overreach at the agency level, particularly in terms of cost control.