The fiscal note for SB 925, as prepared by the Legislative Budget Board (LBB), states that the bill is not expected to have any fiscal implications for the state. The bill primarily focuses on regulating public work contracts by prohibiting government entities from requiring or discouraging union agreements. Since it does not mandate new expenditures, create new programs, or require additional administrative oversight, no direct costs or savings are projected for state agencies.

For local governments, the LBB anticipates no significant fiscal impact. The bill does not alter funding mechanisms for public contracts or impose new financial burdens on local entities. Instead, it standardizes contracting procedures by preventing union-related preferences, ensuring that all qualified contractors—union or non-union—have equal access to public projects. Agencies such as the Texas Facilities Commission, Comptroller of Public Accounts, Howard College, and San Jacinto College reviewed the bill and did not identify any financial concerns related to compliance or implementation.

Overall, SB 925 is fiscally neutral, meaning neither additional costs nor savings are expected at the state or local levels. Its impact is policy-driven rather than budget-driven, aiming to enhance competition and neutrality in the public contracting process without affecting public expenditures.

SB 925 aims to prohibit discrimination or preferential treatment in public work contracts based on collective bargaining agreements. While current law already restricts state-funded contracts from imposing union-related conditions, this bill extends those protections to locally funded projects, including those financed through local tax dollars, ratepayer money, user fees, and federal financial assistance programs. This expansion ensures that government entities cannot require or discourage union participation as a condition of receiving public work contracts, thereby fostering a more competitive and open market for contractors, regardless of union affiliation.

By eliminating government-imposed labor agreement conditions, SB 925 strengthens free enterprise and individual liberty by allowing businesses to compete solely on merit, cost-effectiveness, and capability, rather than union status. It also upholds limited government principles by reducing state and local government intervention in private business decisions and ensuring neutrality in contract awards. Additionally, the fiscal analysis confirms that the bill has no significant financial impact on state or local governments, making it a policy-driven rather than budget-driven reform.

Given its strong alignment with free-market principles, reduced government overreach, and protection of individual business choices, SB 925 represents a positive step toward fairness and efficiency in public contracting. It ensures that taxpayer-funded projects prioritize cost-effectiveness and quality labor over political or union affiliations. For these reasons, Texas Policy Research recommends that lawmakers vote YES on SB 925.

• HB 1951 (Same As)