89R2829 RDS-D
By: Middleton S.B. No. 390
A BILL TO BE ENTITLED
AN ACT
relating to including certain veteran-owned businesses within the
definition of a historically underutilized business for purposes of
state contracting.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2161.001(2), Government Code, is amended
to read as follows:
(2) "Historically underutilized business" means an
entity with its principal place of business in this state that is:
(A) a corporation formed for the purpose of
making a profit in which 51 percent or more of all classes of the
shares of stock or other equitable securities are owned by one or
more economically disadvantaged persons who have a proportionate
interest and actively participate in the corporation's control,
operation, and management;
(B) a sole proprietorship created for the purpose
of making a profit that is completely owned, operated, and
controlled by an economically disadvantaged person;
(C) a partnership formed for the purpose of
making a profit in which 51 percent or more of the assets and
interest in the partnership are owned by one or more economically
disadvantaged persons who have a proportionate interest and
actively participate in the partnership's control, operation, and
management;
(D) a joint venture in which each entity in the
venture is a historically underutilized business, as determined
under another paragraph of this subdivision; [or]
(E) a supplier contract between a historically
underutilized business as determined under another paragraph of
this subdivision and a prime contractor under which the
historically underutilized business is directly involved in the
manufacture or distribution of the goods or otherwise warehouses
and ships the goods; or
(F) a small business concern owned and controlled
by veterans that is certified as a veteran-owned small business by
the United States Small Business Administration.
SECTION 2. This Act takes effect September 1, 2025.