bill adds veteran-owned firms to historically underutilized businesses

The text as introduced · 309 words

89R2829 RDS-D

By: Middleton
S.B. No. 390

A BILL TO BE ENTITLED

AN ACT

relating to including certain veteran-owned businesses within the

definition of 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(2), Government Code, is amended

to read as follows:

(2) "Historically underutilized business" means an

entity with its principal place of business in this state that is:

(A) a corporation formed for the purpose of

making a profit in which 51 percent or more of all classes of the

shares of stock or other equitable securities are owned by one or

more economically disadvantaged persons who have a proportionate

interest and actively participate in the corporation's control,

operation, and management;

(B) a sole proprietorship created for the purpose

of making a profit that is completely owned, operated, and

controlled by an economically disadvantaged person;

(C) a partnership formed for the purpose of

making a profit in which 51 percent or more of the assets and

interest in the partnership are owned by one or more economically

disadvantaged persons who have a proportionate interest and

actively participate in the partnership's control, operation, and

management;

(D) a joint venture in which each entity in the

venture is a historically underutilized business, as determined

under another paragraph of this subdivision; [ or ]

(E) a supplier contract between a historically

underutilized business as determined under another paragraph of

this subdivision and a prime contractor under which the

historically underutilized business is directly involved in the

manufacture or distribution of the goods or otherwise warehouses

and ships the goods ; or

(F) a small business concern owned and controlled

by veterans that is certified as a veteran-owned small business by

the United States Small Business Administration .

SECTION 2. This Act takes effect September 1, 2025.