The bill, S.B. No. 390, aims to expand the definition of "historically underutilized business" within the Texas Government Code to include certain veteran-owned businesses for state contracting purposes. 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 replacing it with a new insertion that includes the criteria for veteran-owned businesses. This change is intended to ensure that veteran-owned businesses are recognized and included in state contracting opportunities, thereby promoting economic participation among veterans in Texas. The bill is set to take effect on September 1, 2025.

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