HB 3573
AN ACT relating to certain prohibited considerations in contracting by
89th Regular Session
Jan 14, 2025 - Jun 2, 2025 • Session ended
Awaiting Committee Assignment
Bill filed, pending referral to House committee
Committee
Not yet assigned
Fiscal Note
Not available
What This Bill Does
Prohibits governmental entities from awarding contracts or providing preferential treatment based on race, color, ethnicity, sex, gender identity, or sexual orientation. It effectively eliminates Texas's Historically Underutilized Business (HUB) program, which previously aimed to increase diversity in state contracting. The law will apply to all new government contracts entered into on or after September 1, 2025, potentially impacting how state and local entities select contractors and vendors.
Subject Areas
Bill Text
relating to certain prohibited considerations in contracting by governmental entities and the elimination of the state's historically underutilized business program. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter Z, Chapter 2252, Government Code, is amended by adding Section 2252.911 to read as follows: Sec. 2252.911. PROHIBITED CONSIDERATIONS IN CONTRACTING. (a) In this section, "governmental entity" has the meaning (b) Notwithstanding any other law, a governmental entity may not award a contract or provide preferential treatment to a person submitting a bid for a contract on the basis of race, color, ethnicity, sex, gender identity, or sexual orientation. SECTION 2. Chapter 2161, Government Code, is repealed. SECTION 3. The repeal by this Act of Chapter 2161, Government Code, does not apply to a transfer of funds directed by the Legislative Budget Board under Section 2161.005, Government Code, before the effective date of this Act. A transfer of funds directed by the Legislative Budget Board before the effective date of this Act is governed by that section as it existed immediately before the effective date of this Act, and the former law is continued in effect for that purpose. SECTION 4. The changes in law made by this Act apply only to a contract entered into on or after the effective date of this Act. A contract entered into before that date is governed by the law in effect on the date the contract was entered into, and the former law is continued in effect for that purpose. SECTION 5. This Act takes effect September 1, 2025.
Bill History
Bill filed: AN ACT relating to certain prohibited considerations in contracting by
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