Texas House Bill HB1204

Texas 2025 - 89th Regular

• Filed: 11/12/24

Caption

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.

Impact

If enacted, HB 1204 would establish clearer guidelines for state agencies in evaluating businesses that qualify as historically underutilized. Specifically, it sets goals for increasing contract awards to HUBs that are at least 51% owned or controlled by persons with disabilities or individuals from the LGBTQ+ community. Through this change, the bill intends to promote equitable access to state contracts, providing opportunities for historically marginalized groups and thereby enhancing the economic environment for these businesses.

Summary

House Bill 1204 seeks to amend existing legislation concerning the definition and categorization of historically underutilized businesses (HUBs) for state contracting. The bill broadens the scope of what constitutes an economically disadvantaged person, explicitly including individuals with disabilities and those identifying as part of various sexual orientations or gender identities. This legislative effort aims to enhance the representation of diverse ownership in state contracts by recognizing the unique challenges faced by these groups.

Contention

The introduction of HB 1204 reflects ongoing discussions about inclusion and representation within state contracting processes. Supporters of the bill argue that it is a necessary step towards rectifying systemic discrimination that has historically hindered the participation of certain groups in business opportunities. Critics may argue, however, that this focus on specific identity categories could lead to complications in classification and enforcement, raising concerns about how these definitions may be interpreted across different state agencies.

Texas Constitutional Statutes Affected

Government Code

• Chapter 2161. Historically Underutilized Businesses
  • Section: 001
  • Section: 002
  • Section: 061
  • Section: 125