Relating to prohibiting certain preferences in a political subdivision contractor selection process.

SB 2236 prohibits Texas political subdivisions (like cities or counties) from disqualifying contractors in selection processes based on their connection to fossil fuel industries. Specifically, it bans excluding vendors that explore, produce, transport, sell, or manufacture fossil fuel-based energy, or that invest in or do business with such companies. The law applies only to contractor selections initiated on or after September 1, 2025, and defines "company" broadly to include corporations, partnerships, and affiliates. This directly affects local governments and contractors during procurement decisions, removing a specific barrier for businesses in the energy sector.