González Bill Widens Who Counts As Economically Disadvantaged In State Contracting

The text as introduced · 582 words

89R827 SCP-D

By: González of Dallas
H.B. No. 1204

A BILL TO BE ENTITLED

AN ACT

relating to the consideration of ownership interests of certain

persons in determining whether a business is a historically

underutilized business for purposes of state contracting.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 2161.001(3), Government Code, is amended

to read as follows:

(3) "Economically disadvantaged person" means a

person who:

(A) is economically disadvantaged because of the

person's identification as a member of a certain group, including:

(i) Black Americans;

(ii) Hispanic Americans;

(iii) women;

(iv) Asian Pacific Americans;

(v) Native Americans; [ and ]

(vi) veterans as defined by 38 U.S.C.

Section 101(2) who have suffered at least a 20 percent

service-connected disability as defined by 38 U.S.C. Section

101(16);

(vii) persons with a disability as defined

by 42 U.S.C. Section 12102; and

(viii) persons who identify as one or more

of the following sexual orientations or gender identities:

(a) gay;

(b) lesbian;

(c) bisexual;

(d) transgender;

(e) queer;

(f) intersex; or

(g) asexual; and

(B) has suffered the effects of discriminatory

practices or other similar insidious circumstances over which the

person has no control.

SECTION 2. Section 2161.002, Government Code, is amended by

adding Subsection (e) to read as follows:

(e) The comptroller shall adopt rules to provide goals for

increasing the contract awards for the purchase of goods or

services by the comptroller and other state agencies to businesses

that qualify as a historically underutilized business because the

business is at least 51 percent owned or is owned, operated, and

controlled, as required by Section 2161.001(2), by one or more

persons with a disability as defined by 42 U.S.C. Section 12102 or

one or more persons who identify as one or more of the sexual

orientations or gender identities described by Section

2161.001(3)(A)(viii). The goals established under this subsection

are in addition to the goals established under Subsections (c) and

(d), and the goals established under Subsections (c) and (d) may not

be reduced as a result of the establishment of goals under this

subsection.

SECTION 3. Section 2161.061, Government Code, is amended by

adding Subsection (f) to read as follows:

(f) To be certified by the comptroller as a historically

underutilized business, a business owned by one or more persons who

qualify as economically disadvantaged solely based on being a

person with a disability as defined by 42 U.S.C. Section 12102 must

submit to the comptroller an affidavit from a physician licensed to

practice medicine in this state for each owner claiming a

disability verifying that owner's disability.

SECTION 4. Section 2161.125, Government Code, is amended to

read as follows:

Sec. 2161.125. CATEGORIZATION OF HISTORICALLY

UNDERUTILIZED BUSINESSES. The comptroller, in cooperation with

each state agency reporting under this subchapter, shall categorize

each historically underutilized business included in a report under

this subchapter by sex, race, and ethnicity and by whether the

business qualifies as a historically underutilized business

because it is owned or owned, operated, and controlled, as

applicable, wholly or partly by one or more persons with a

disability as defined by 42 U.S.C. Section 12102, one or more

persons who identify as one or more of the sexual orientations or

gender identities described by Section 2161.001(3)(A)(viii), or

one or more veterans as defined by 38 U.S.C. Section 101(2) who have

suffered at least a 20 percent service-connected disability as

defined by 38 U.S.C. Section 101(16).

SECTION 5. This Act takes effect September 1, 2025.