Texas Senate Bill SB1738

Texas 2017 - 85th Regular

Caption

Relating to historically underutilized businesses.

Impact

The impact of SB1738 on state laws revolves around increased accountability for state agencies regarding their engagement with HUBs. The bill proposes revisions to the Government Code, stipulating that contracts valued at $50,000 or more must include provisions for evaluating subcontracting opportunities for HUBs. This shift is anticipated to create a more equitable environment in which smaller and historically marginalized businesses can compete against larger entities for state contracts, ultimately contributing to economic inclusivity.

Summary

SB1738 aims to enhance the participation of historically underutilized businesses (HUBs) in state contracting processes by amending existing laws to establish a more structured mentoring and monitoring program. The bill mandates the creation of a mentor-protege program intended to foster long-term relationships between larger prime contractors and HUBs. This initiative is designed to improve HUBs' capability to secure contracts with state agencies, thereby increasing their visibility and opportunities within government procurement processes.

Contention

While proponents of SB1738 praise it as a significant step towards fostering diversity and inclusion in state contracting, there are concerns regarding the feasibility of implementation. Critics argue that enforcing compliance and ensuring that agencies genuinely engage with HUBs could be challenging. Furthermore, questions have been raised about whether the additional requirements may discourage larger firms from participating in state contracts, thus potentially limiting opportunities for HUBs instead of enhancing them.