| 1 | 1 | | 89R827 SCP-D |
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| 2 | 2 | | By: González of Dallas H.B. No. 1204 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the consideration of ownership interests of certain |
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| 10 | 10 | | persons in determining whether a business is a historically |
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| 11 | 11 | | underutilized business for purposes of state contracting. |
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| 12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 13 | | SECTION 1. Section 2161.001(3), Government Code, is amended |
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| 14 | 14 | | to read as follows: |
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| 15 | 15 | | (3) "Economically disadvantaged person" means a |
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| 16 | 16 | | person who: |
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| 17 | 17 | | (A) is economically disadvantaged because of the |
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| 18 | 18 | | person's identification as a member of a certain group, including: |
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| 19 | 19 | | (i) Black Americans; |
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| 20 | 20 | | (ii) Hispanic Americans; |
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| 21 | 21 | | (iii) women; |
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| 22 | 22 | | (iv) Asian Pacific Americans; |
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| 23 | 23 | | (v) Native Americans; [and] |
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| 24 | 24 | | (vi) veterans as defined by 38 U.S.C. |
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| 25 | 25 | | Section 101(2) who have suffered at least a 20 percent |
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| 26 | 26 | | service-connected disability as defined by 38 U.S.C. Section |
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| 27 | 27 | | 101(16); |
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| 28 | 28 | | (vii) persons with a disability as defined |
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| 29 | 29 | | by 42 U.S.C. Section 12102; and |
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| 30 | 30 | | (viii) persons who identify as one or more |
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| 31 | 31 | | of the following sexual orientations or gender identities: |
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| 32 | 32 | | (a) gay; |
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| 33 | 33 | | (b) lesbian; |
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| 34 | 34 | | (c) bisexual; |
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| 35 | 35 | | (d) transgender; |
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| 36 | 36 | | (e) queer; |
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| 37 | 37 | | (f) intersex; or |
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| 38 | 38 | | (g) asexual; and |
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| 39 | 39 | | (B) has suffered the effects of discriminatory |
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| 40 | 40 | | practices or other similar insidious circumstances over which the |
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| 41 | 41 | | person has no control. |
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| 42 | 42 | | SECTION 2. Section 2161.002, Government Code, is amended by |
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| 43 | 43 | | adding Subsection (e) to read as follows: |
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| 44 | 44 | | (e) The comptroller shall adopt rules to provide goals for |
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| 45 | 45 | | increasing the contract awards for the purchase of goods or |
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| 46 | 46 | | services by the comptroller and other state agencies to businesses |
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| 47 | 47 | | that qualify as a historically underutilized business because the |
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| 48 | 48 | | business is at least 51 percent owned or is owned, operated, and |
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| 49 | 49 | | controlled, as required by Section 2161.001(2), by one or more |
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| 50 | 50 | | persons with a disability as defined by 42 U.S.C. Section 12102 or |
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| 51 | 51 | | one or more persons who identify as one or more of the sexual |
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| 52 | 52 | | orientations or gender identities described by Section |
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| 53 | 53 | | 2161.001(3)(A)(viii). The goals established under this subsection |
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| 54 | 54 | | are in addition to the goals established under Subsections (c) and |
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| 55 | 55 | | (d), and the goals established under Subsections (c) and (d) may not |
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| 56 | 56 | | be reduced as a result of the establishment of goals under this |
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| 57 | 57 | | subsection. |
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| 58 | 58 | | SECTION 3. Section 2161.061, Government Code, is amended by |
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| 59 | 59 | | adding Subsection (f) to read as follows: |
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| 60 | 60 | | (f) To be certified by the comptroller as a historically |
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| 61 | 61 | | underutilized business, a business owned by one or more persons who |
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| 62 | 62 | | qualify as economically disadvantaged solely based on being a |
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| 63 | 63 | | person with a disability as defined by 42 U.S.C. Section 12102 must |
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| 64 | 64 | | submit to the comptroller an affidavit from a physician licensed to |
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| 65 | 65 | | practice medicine in this state for each owner claiming a |
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| 66 | 66 | | disability verifying that owner's disability. |
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| 67 | 67 | | SECTION 4. Section 2161.125, Government Code, is amended to |
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| 68 | 68 | | read as follows: |
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| 69 | 69 | | Sec. 2161.125. CATEGORIZATION OF HISTORICALLY |
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| 70 | 70 | | UNDERUTILIZED BUSINESSES. The comptroller, in cooperation with |
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| 71 | 71 | | each state agency reporting under this subchapter, shall categorize |
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| 72 | 72 | | each historically underutilized business included in a report under |
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| 73 | 73 | | this subchapter by sex, race, and ethnicity and by whether the |
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| 74 | 74 | | business qualifies as a historically underutilized business |
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| 75 | 75 | | because it is owned or owned, operated, and controlled, as |
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| 76 | 76 | | applicable, wholly or partly by one or more persons with a |
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| 77 | 77 | | disability as defined by 42 U.S.C. Section 12102, one or more |
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| 78 | 78 | | persons who identify as one or more of the sexual orientations or |
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| 79 | 79 | | gender identities described by Section 2161.001(3)(A)(viii), or |
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| 80 | 80 | | one or more veterans as defined by 38 U.S.C. Section 101(2) who have |
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| 81 | 81 | | suffered at least a 20 percent service-connected disability as |
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| 82 | 82 | | defined by 38 U.S.C. Section 101(16). |
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| 83 | 83 | | SECTION 5. This Act takes effect September 1, 2025. |
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