Texas Senate Bill SB2002

Texas 2021 - 87th Regular

Caption

Relating to the state historically underutilized business program; creating a criminal offense.

Impact

The enactment of SB2002 would significantly impact state laws governing the procurement process for historically underutilized businesses. It mandates that the comptroller will verify compliance with training requirements for HUBs and outlines the expected procedures to ensure continual compliance. Furthermore, state agencies will be required to prepare plans that significantly increase opportunities for HUBs in their procurement activities, directly influencing how state contracts are awarded and executed.

Summary

SB2002 aims to fortify the state program supporting historically underutilized businesses (HUBs) by introducing comprehensive regulatory reforms. The bill amends various sections of the Government Code to enhance transparency and accountability in programs designed for HUBs. It includes provisions for training requirements, mentorship programs, and compliance tracking, emphasizing the implementation of a mentor-protege program to foster long-term relationships between prime contractors and HUBs, which will ultimately facilitate greater access to state contracts for these businesses.

Contention

Debate around SB2002 may arise from the scope of the proposed accountability measures and the new criminal offense for making false reports about contracts awarded to HUBs. Critics might argue that while the intention is to strengthen HUB access to state contracts, the additional administrative and regulatory burdens could deter businesses from participating. Moreover, the bill could incite concerns around the fairness of imposing criminal penalties in contexts where compliance might be difficult due to misunderstanding or misinterpretation of the rules amongst small business owners.