Monitoring the Session

HB 3573

McLaughlin Bill Ends The State’s HUB Contracting Program

Died in committee

Verdict: No flags

No flagsInitial review
Rep. Don McLaughlinRHouse 80

Initial review · graded Oct 20, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

relating to certain prohibited considerations in contracting by governmental entities and the elimination of the state's historically underutilized business program.

Caption from analyzed text · version I.

Summary

Bidders get no edge for race, sex or sexual orientation. Old contracts keep old rules.

The bill bars state and local governments from awarding a contract or giving preferential treatment to a bidder based on race, color, ethnicity, sex, gender identity, or sexual orientation. It also repeals the chapter of state law that runs the historically underutilized business (HUB) program, which touches state agencies, local governments, and contractors who held or sought HUB status. Starting September 1, 2025, new government contracts cannot use those traits in awards, and the HUB program ends, with older contracts and past budget transfers left under the old rules.

Labels

Labels: NEVER GOT A HEARING. Filed Mar 3, 2025 and referred to the House State Affairs committee. No public hearing. The bill died.

Receipt

The receipt

89R-HB3573 · 2025-03-03

SOLD BY

Rep. Don McLaughlinRHouse 80

ITEM

relating to certain prohibited considerations in contracting by governmental entities and the elimination of the state's historically underutilized business program.

WHAT IT DOES

Bidders get no edge for race, sex or sexual orientation. Old contracts keep old rules.

The bill bars state and local governments from awarding a contract or giving preferential treatment to a bidder based on race, color, ethnicity, sex, gender identity, or sexual orientation. It also repeals the chapter of state law that runs the historically underutilized business (HUB) program, which touches state agencies, local governments, and contractors who held or sought HUB status. Starting September 1, 2025, new government contracts cannot use those traits in awards, and the HUB program ends, with older contracts and past budget transfers left under the old rules.

CHARGES

[ ] NONE FOUND

TOTAL

No fiscal note in the loaded record.

HISTORY

  1. Filed
  2. Read first time
  3. Referred to State Affairs
FILED UNDER

DEI BY ANOTHER NAME

THE TEXT

…“a governmental entity may not award a contract or provide preferential treatment to a person submitting a bid for a contract on the basis of race, color, ethnicity, sex, gender identity, or sexual orientation”

Bill text, introduced version (I)

The bill bans identity-based contracting preferences and repeals the state's HUB program outright instead of renaming or exempting it.

No flags

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

Don McLaughlin

Donors

Texans for Lawsuit Reform PAC$588KTexas Conservative Majority PAC$239KGreg Abbott Campaign$38K

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Oct 27, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Texans for Lawsuit Reform PAC$588,242.35

Texans for Lawsuit Reform PAC

$588,242.35

Cash
$162,000.00
Paid by others
$426,242.35
Total
$588,242.35
advertising $397,182.00polling $29,060.35

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Oct 29, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100978254, 101012305, 101024467, 101055468, 101070410, 101072400.

Texas Conservative Majority PAC$238,750.00

Texas Conservative Majority PAC

$238,750.00

Cash
$150,000.00
Paid by others
$88,750.00
Total
$238,750.00
canvassing $80,000.00polling $8,750.00

Also funds 42 other sitting lawmakers.

Derived recipient stock · Jan 23, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Sep 4, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101070410, 101072400.

Greg Abbott Campaign$38,115.79

Greg Abbott Campaign

$38,115.79

Cash
$0.00
Paid by others
$38,115.79
Total
$38,115.79
canvassing $31,811.05texting $5,739.94travel $564.80

Also funds 9 other sitting lawmakers.

Derived recipient stock · Oct 29, 2024 to Sep 2, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Team
Sources

Derived itemized flow · Oct 29, 2024 to Nov 13, 2024. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100978254.

Money

Missing data does not establish zero giving. Display amounts are rounded.

×

Texans for Lawsuit Reform PAC

$588,242.35

Cash
$162,000.00
Paid by others
$426,242.35
Total
$588,242.35
advertising $397,182.00polling $29,060.35

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Oct 29, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100978254, 101012305, 101024467, 101055468, 101070410, 101072400.

×

Texas Conservative Majority PAC

$238,750.00

Cash
$150,000.00
Paid by others
$88,750.00
Total
$238,750.00
canvassing $80,000.00polling $8,750.00

Also funds 42 other sitting lawmakers.

Derived recipient stock · Jan 23, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Sep 4, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101070410, 101072400.

×

Greg Abbott Campaign

$38,115.79

Cash
$0.00
Paid by others
$38,115.79
Total
$38,115.79
canvassing $31,811.05texting $5,739.94travel $564.80

Also funds 9 other sitting lawmakers.

Derived recipient stock · Oct 29, 2024 to Sep 2, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Team
Sources

Derived itemized flow · Oct 29, 2024 to Nov 13, 2024. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100978254.

Votes

No floor vote loaded for this bill.

Fiscal

No fiscal note in the loaded record.

How this was graded

Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.

Sources

Texas House · Filed Mar 3, 2025

03/25/2025 H Referred to State Affairs: Mar 25 2025 3:26PM

Texas Legislature Online · Introduced

Data snapshot Oct 26, 2026 at 4:19 AM CDT. Grades, charges, quotes and corrections follow the published record.

House committee · State Affairs · Final status: Died in committee

Subjects

Human Relations

Purchasing--State

HISTORICALLY UNDERUTILIZED BUSINESSES

LEGISLATIVE BUDGET BOARD

Text

The text as introduced · 279 words

89R13057 RDS-D

By: McLaughlin
H.B. No. 3573

A BILL TO BE ENTITLED

AN ACT

relating to certain prohibited considerations in contracting by

governmental entities and the elimination of the state's

historically underutilized business program.

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

SECTION 1. Subchapter Z, Chapter 2252, Government Code, is

amended by adding Section 2252.911 to read as follows:

Sec. 2252.911. PROHIBITED CONSIDERATIONS IN CONTRACTING.

(a) In this section, "governmental entity" has the meaning

assigned by Section 2252.001.

(b) Notwithstanding any other law, a governmental entity

may not award a contract or provide preferential treatment to a

person submitting a bid for a contract on the basis of race, color,

ethnicity, sex, gender identity, or sexual orientation.

SECTION 2. Chapter 2161, Government Code, is repealed.

SECTION 3. The repeal by this Act of Chapter 2161,

Government Code, does not apply to a transfer of funds directed by

the Legislative Budget Board under Section 2161.005, Government

Code, before the effective date of this Act. A transfer of funds

directed by the Legislative Budget Board before the effective date

of this Act is governed by that section as it existed immediately

before the effective date of this Act, and the former law is

continued in effect for that purpose.

SECTION 4. The changes in law made by this Act apply only to

a contract entered into on or after the effective date of this Act.

A contract entered into before that date is governed by the law in

effect on the date the contract was entered into, and the former law

is continued in effect for that purpose.

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