Texas House Bill HB2182

Texas 2023 - 88th Regular

• Filed: 2/10/23

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

The implications of HB2182 are significant for state contracting processes, as it seeks to establish goals for increasing the contract awards to businesses that are at least 51 percent owned or controlled by individuals who fit the newly defined categories of economic disadvantage. By adopting such measures, the bill is poised to enhance opportunities for underrepresented groups within the business community, thereby fostering a more equitable economic environment. This could shift the landscape of state procurement policies and incentivize agencies to prioritize contracts with these businesses.

Summary

House Bill 2182 focuses on redefining the parameters that determine what qualifies as a historically underutilized business (HUB) in the state of Texas for the purposes of state contracting. The bill amends existing laws, specifically the Government Code, to explicitly include ownership interests of certain individuals, including those with disabilities and individuals identifying with various sexual orientations and gender identities. This change is aimed at broadening the inclusivity of economically disadvantaged groups eligible for state contracts, thereby promoting diversity within state-funded projects.

Sentiment

The sentiment surrounding HB2182 has been generally supportive, particularly among advocacy groups focused on equality and representation in government contracting. Proponents argue that the bill is a necessary step toward addressing historical inequities faced by marginalized communities, expanding the definition of those considered economically disadvantaged in a meaningful way. However, there may also be concerns among some stakeholders regarding the implementation of these definitions and the complexity they may introduce into the contracting processes.

Contention

Notably, there are discussions around the potential challenges in verifying ownership and control based on the new criteria outlined in the bill, especially concerning individuals with disabilities. Questions regarding the ability of the Comptroller to effectively administer these standards and the implications for businesses that may struggle to meet these new definitions are points of contention that could arise as the bill progresses through legislative scrutiny.

Texas Constitutional Statutes Affected

Government Code

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