H.B. No. 1204 aims to expand the definition of "economically disadvantaged person" within the Government Code to include additional groups. The bill amends Section 2161.001(3) to add persons with disabilities, as defined by 42 U.S.C. Section 12102, and individuals who identify as part of various sexual orientations or gender identities, including gay, lesbian, bisexual, transgender, queer, intersex, or asexual. This amendment replaces the previous language that only included veterans with service-connected disabilities.

Furthermore, the bill introduces new provisions to enhance the support for historically underutilized businesses (HUBs). It mandates the comptroller to establish goals for increasing contract awards to businesses that are at least 51% owned or controlled by individuals with disabilities or those identifying with the specified sexual orientations or gender identities. Additionally, to be certified as a HUB, businesses owned by persons with disabilities must provide a physician's affidavit verifying the disability. The comptroller is also required to categorize HUBs based on ownership by these newly included groups, ensuring a more inclusive approach to state contracting. The act is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Government Code 2161.001, Government Code 2161.002, Government Code 2161.061, Government Code 2161.125 (Government Code 2161)