H.B. No. 3573 proposes amendments to the Government Code regarding contracting by governmental entities. It introduces a new section, 2252.911, which prohibits governmental entities from awarding contracts or providing preferential treatment based on race, color, ethnicity, sex, gender identity, or sexual orientation. This change aims to ensure that contracting decisions are made solely on merit and not influenced by these characteristics.

Additionally, the bill repeals Chapter 2161 of the Government Code, which pertains to the state's historically underutilized business program. However, it clarifies that any fund transfers directed by the Legislative Budget Board before the effective date of the Act will still be governed by the previous law. The changes will apply only to contracts entered into on or after the effective date of September 1, 2025, ensuring that existing contracts remain under the law that was in effect at the time they were signed.

Statutes affected:
Introduced: ()