Texas Senate Bill SB2912

Texas 2025 - 89th Regular

• Filed: 3/14/25

Caption

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

Impact

The impact of SB2912 on state laws includes revised protocols for state agencies regarding the categorization and procurement of contracts awarded to HUBs. The legislation stipulates that agencies must develop goals for increasing contract awards to HUBs based on results from disparity studies. By enforcing stricter training requirements and establishing oversight mechanisms, the bill seeks to foster a more equitable environment for HUBs in Texas. Furthermore, the introduction of a criminal offense for false reports regarding contract awards creates a legal basis for penalizing dishonest practices in awarding contracts, enhancing the integrity of the procurement process.

Summary

SB2912 is a bill that aims to enhance the support and compliance mechanisms for historically underutilized businesses (HUBs) within Texas by modifying existing statutes related to the state historically underutilized business program. The legislation introduces a set of requirements that aim to ensure greater accountability and support for HUBs in state contracting processes. It establishes provisions for certification and recertification of disadvantaged business enterprises (DBEs), requiring owners to undergo training to ensure they are adequately prepared to engage in state contracts effectively. Additionally, the bill proposes the establishment of a good faith effort review committee that will closely monitor subcontracting plans for HUBs.

Contention

Notable points of contention surrounding SB2912 focus on the balance between regulation and support for historically underutilized businesses. Some stakeholders argue that additional training and oversight requirements for HUBs may impose undue burdens that could stifle small business participation in state contracts. Critics express concerns that overly stringent measures may inadvertently limit access to opportunities for businesses the bill intends to protect. However, proponents of the bill contend that these measures are necessary to ensure compliance and to foster genuine economic opportunities for historically underutilized communities.

Texas Constitutional Statutes Affected

Government Code

• Chapter 2161. Historically Underutilized Businesses
  • Section: 001
  • Section: 061
  • Section: 121
  • Section: 125
  • Section: 181
  • Section: 182
  • Section: 231
  • Section: 252
  • Section: New Section
  • Section: 253
  • Section: 0015
  • Section: 002
  • Section: 004
  • Section: 064
  • Section: 065
  • Section: 066
  • Section: 122
  • Section: 123