The bill, H.B. No. 251, introduces new regulations regarding contracting by governmental entities in Texas. It adds Section 2252.911 to the Government Code, which stipulates that governmental entities may only consider merit-based criteria, specifically those outlined in Section 2155.074, when awarding contracts. Furthermore, the bill prohibits awarding contracts or providing preferential treatment based on race, color, ethnicity, sex, gender identity, sexual orientation, or any criteria associated with diversity, equity, and inclusion practices.

Additionally, the bill repeals Chapter 2161 of the Government Code, which pertains to the state's historically underutilized business program. However, it clarifies that this repeal does not affect any fund transfers directed by the Legislative Budget Board prior to the bill's effective date. The changes will only apply to contracts entered into after the bill's effective date, ensuring that existing contracts remain governed by the previous law. The bill is set to take effect 91 days after the conclusion of the legislative session.

Statutes affected:
Introduced: ()