The bill amends the Government Code to expand the definition of "economically disadvantaged person" and to enhance the criteria for businesses to qualify as historically underutilized businesses (HUBs) for state contracting purposes. Specifically, it adds new categories of individuals who are considered economically disadvantaged, including persons with disabilities and those who identify as part of various sexual orientations or gender identities. The bill also mandates that the comptroller establish goals for increasing contract awards to businesses that are at least 51% owned or controlled by these newly defined groups.

Additionally, the bill requires businesses seeking certification as HUBs based solely on disability to provide a physician's affidavit verifying the owner's disability. It also stipulates that the comptroller must categorize historically underutilized businesses by sex, race, ethnicity, and the specific criteria under which they qualify, including ownership by persons with disabilities or those identifying with certain sexual orientations or gender identities. The changes aim to promote inclusivity and ensure that state contracting opportunities are accessible to a broader range of disadvantaged groups. 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)