H.B. No. 1204 aims to expand the definition of "economically disadvantaged person" within the Government Code to include additional groups for the purpose of determining eligibility as a historically underutilized business (HUB) in state contracting. The bill introduces new categories, specifically adding persons with disabilities and individuals identifying as part of various sexual orientations or gender identities, while removing the previous mention of veterans as a standalone category. The updated definition now encompasses persons with disabilities as defined by federal law and includes those who identify as gay, lesbian, bisexual, transgender, queer, intersex, or asexual.

Furthermore, the bill mandates the comptroller to establish goals for increasing contract awards to businesses that qualify as HUBs based on ownership by individuals with disabilities or those identifying with the newly included sexual orientations or gender identities. It also requires businesses seeking certification as HUBs based solely on disability to provide a physician's affidavit verifying the owner's disability. Additionally, the comptroller is tasked with categorizing HUBs by various demographics, including those owned by individuals with disabilities or from the newly recognized sexual orientation and gender identity groups. The provisions of this act are 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)