The bill, S.B. No. 390, seeks to expand the definition of "historically underutilized business" within the Texas Government Code to include certain veteran-owned businesses for the purposes of state contracting. Specifically, it amends Section 2161.001(2) to add a new category (F), which defines a historically underutilized business as a small business concern that is owned and controlled by veterans and certified as a veteran-owned small business by the United States Small Business Administration.

Additionally, the bill modifies the existing definition by removing the phrase "or" at the end of paragraph (D) and inserting a new paragraph (E) that recognizes supplier contracts involving historically underutilized businesses. This legislative change aims to enhance opportunities for veteran-owned businesses in state contracting, thereby promoting economic growth and inclusion for veterans in the business community. The bill is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Government Code 2161.001 (Government Code 2161)