The bill amends the definition of "historically underutilized business" in the Texas Government Code to include certain veteran-owned businesses for the purposes of state contracting. Specifically, it adds a new category (F) that defines a historically underutilized business as a small business concern owned and controlled by veterans, provided that it is certified as a veteran-owned small business by the United States Small Business Administration. This inclusion aims to enhance opportunities for veteran entrepreneurs in state contracting.

Additionally, the bill removes the previous provision that allowed for a supplier contract between a historically underutilized business and a prime contractor, which is no longer necessary with the new definition. The changes are set to take effect on September 1, 2025, thereby providing a clear timeline for implementation.

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