| 5 | 3 | | |
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| 6 | 4 | | |
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| 7 | 5 | | A BILL TO BE ENTITLED |
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| 8 | 6 | | AN ACT |
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| 9 | 7 | | relating to including certain veteran-owned businesses within the |
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| 10 | 8 | | definition of a historically underutilized business for purposes of |
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| 11 | 9 | | state contracting. |
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| 12 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 11 | | SECTION 1. Section 2161.001(2), Government Code, is amended |
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| 14 | 12 | | to read as follows: |
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| 15 | 13 | | (2) "Historically underutilized business" means an |
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| 16 | 14 | | entity with its principal place of business in this state that is: |
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| 17 | 15 | | (A) a corporation formed for the purpose of |
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| 18 | 16 | | making a profit in which 51 percent or more of all classes of the |
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| 19 | 17 | | shares of stock or other equitable securities are owned by one or |
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| 20 | 18 | | more economically disadvantaged persons who have a proportionate |
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| 21 | 19 | | interest and actively participate in the corporation's control, |
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| 22 | 20 | | operation, and management; |
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| 23 | 21 | | (B) a sole proprietorship created for the purpose |
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| 24 | 22 | | of making a profit that is completely owned, operated, and |
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| 25 | 23 | | controlled by an economically disadvantaged person; |
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| 26 | 24 | | (C) a partnership formed for the purpose of |
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| 27 | 25 | | making a profit in which 51 percent or more of the assets and |
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| 28 | 26 | | interest in the partnership are owned by one or more economically |
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| 29 | 27 | | disadvantaged persons who have a proportionate interest and |
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| 30 | 28 | | actively participate in the partnership's control, operation, and |
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| 31 | 29 | | management; |
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| 32 | 30 | | (D) a joint venture in which each entity in the |
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| 33 | 31 | | venture is a historically underutilized business, as determined |
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| 34 | 32 | | under another paragraph of this subdivision; [or] |
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| 35 | 33 | | (E) a supplier contract between a historically |
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| 36 | 34 | | underutilized business as determined under another paragraph of |
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| 37 | 35 | | this subdivision and a prime contractor under which the |
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| 38 | 36 | | historically underutilized business is directly involved in the |
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| 39 | 37 | | manufacture or distribution of the goods or otherwise warehouses |
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| 40 | 38 | | and ships the goods; or |
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| 41 | 39 | | (F) a small business concern owned and controlled |
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| 42 | 40 | | by veterans that is certified as a veteran-owned small business by |
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| 43 | 41 | | the United States Small Business Administration. |
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| 44 | 42 | | SECTION 2. This Act takes effect September 1, 2025. |
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