Texas House Bill HB147

Texas 2025 - 89th 2nd C.S.

• Filed: 8/15/25

Caption

Relating to prohibited considerations in governmental entity contracting and elimination of the state's historically underutilized business program.

Impact

Should HB147 be enacted, its implications would be significant in reshaping the framework of state procurement policies. By streamlining the contracting process to focus solely on the qualifications and capabilities of submitting businesses, the bill aims to reduce bureaucracy and promote fairness in state contracting decisions. This change could potentially increase competition for government contracts, thereby impacting local economies positively by providing more opportunities for a diverse range of businesses to bid on contracts.

Summary

House Bill 147 seeks to address considerations prohibited in governmental entity contracting, primarily aimed at eliminating the state's historically underutilized business program. This bill's primary focus is to revise how governmental contracts are awarded, with particular emphasis on preventing discrimination based on racial or gender identity. The bill intends to promote a more equitable bidding process in state contracts, ensuring that all businesses have equal opportunities without preferences based on classifications deemed historical or social constructs.

Contention

However, the bill has generated significant contention among various stakeholders. Proponents argue that eliminating the historically underutilized business program is necessary to ensure a truly merit-based contracting environment. In contrast, detractors, including minority business advocates, contend that the removal of such programs may hinder efforts to level the playing field for businesses owned by underrepresented groups. They emphasize the need for targeted initiatives that foster diversity in government contracting rather than withdrawing support mechanisms entirely.

Texas Constitutional Statutes Affected

Government Code

• Chapter 2252. Contracts With Governmental Entity
  • Section: New Section

• Chapter 2161. Historically Underutilized Businesses
  • Section: New Section