HB 1204

relating to the consideration of ownership interests of certain
persons in determining whether a business is 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(3), Government Code, is amended
(3)  "Economically disadvantaged person" means a
(A)  is economically disadvantaged because of the
person's identification as a member of a certain group, including:
(vi)  veterans as defined by 38 U.S.C.
Section 101(2) who have suffered at least a 20 percent
service-connected disability as defined by 38 U.S.C. Section
(vii)  persons with a disability as defined
by 42 U.S.C. Section 12102; and
(viii)  persons who identify as one or more
of the following sexual orientations or gender identities:
(B)  has suffered the effects of discriminatory
practices or other similar insidious circumstances over which the
SECTION 2.  Section 2161.002, Government Code, is amended by
adding Subsection (e) to read as follows:
(e)  The comptroller shall adopt rules to provide goals for
increasing the contract awards for the purchase of goods or
services by the comptroller and other state agencies to businesses
that qualify as a historically underutilized business because the
business is at least 51 percent owned or is owned, operated, and
controlled, as required by Section 2161.001(2), by one or more
persons with a disability as defined by 42 U.S.C. Section 12102 or
one or more persons who identify as one or more of the sexual
orientations or gender identities described by Section
2161.001(3)(A)(viii).  The goals established under this subsection
are in addition to the goals established under Subsections (c) and
(d), and the goals established under Subsections (c) and (d) may not
be reduced as a result of the establishment of goals under this
SECTION 3.  Section 2161.061, Government Code, is amended by
adding Subsection (f) to read as follows:
(f)  To be certified by the comptroller as a historically
underutilized business, a business owned by one or more persons who
qualify as economically disadvantaged solely based on being a
person with a disability as defined by 42 U.S.C. Section 12102 must
submit to the comptroller an affidavit from a physician licensed to
practice medicine in this state for each owner claiming a
disability verifying that owner's disability.
SECTION 4.  Section 2161.125, Government Code, is amended to
Sec. 2161.125.  CATEGORIZATION OF HISTORICALLY
UNDERUTILIZED BUSINESSES.  The comptroller, in cooperation with
each state agency reporting under this subchapter, shall categorize
each historically underutilized business included in a report under
this subchapter by sex, race, and ethnicity and by whether the
business qualifies as a historically underutilized business
because it is owned or owned, operated, and controlled, as
applicable, wholly or partly by one or more persons with a
disability as defined by 42 U.S.C. Section 12102, one or more
persons who identify as one or more of the sexual orientations or
gender identities described by Section 2161.001(3)(A)(viii), or
one or more veterans as defined by 38 U.S.C. Section 101(2) who have
suffered at least a 20 percent service-connected disability as
defined by 38 U.S.C. Section 101(16).
SECTION 5.  This Act takes effect September 1, 2025.