Texas 2025 - 89th Regular

Texas House Bill HB3573

Voted on by House
 
Out of Senate Committee
 
Voted on by Senate
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to certain prohibited considerations in contracting by governmental entities and the elimination of the state's historically underutilized business program.

Impact

A significant aspect of HB3573 is the repeal of Chapter 2161 of the Government Code, which previously governed the state's historically underutilized business program. Supporters believe that this repeal will eliminate systemic biases in awarding contracts, thereby reinforcing a merit-based approach. The bill's supporters argue that removing race and gender considerations from the contracting process will streamline procurement, reduce litigation related to discriminatory practices, and encourage fair competition among businesses.

Summary

House Bill 3573 seeks to amend regulations surrounding contracting by governmental entities in Texas. The essence of the bill is to prohibit governmental bodies from awarding contracts based on specific social criteria, including race, color, ethnicity, sex, gender identity, or sexual orientation. By introducing Section 2252.911 to the Government Code, this legislation aims to ensure that all bidders are given equal footing, promoting what proponents argue is a more equitable contracting environment.

Contention

Opponents of HB3573 raise concerns that this bill undermines efforts to promote diversity and inclusion within state contracting practices. By eliminating consideration of these social factors, critics contend that the bill may inadvertently perpetuate inequalities that have historically affected marginalized communities. Additionally, there are worries that without protections in place, the dynamics of market competition may not rectify existing disparities, potentially sidelining businesses owned by disadvantaged groups from key state contracting opportunities.

Companion Bills

No companion bills found.

Previously Filed As

TX HB251

Relating to prohibited considerations in governmental entity contracting and elimination of the state's historically underutilized business program.

TX HB167

Relating to the implementation of diversity, equity, and inclusion initiatives and certain prohibited considerations in contracting by governmental entities.

TX SB222

Relating to the creation of a revolving loan program to fund the purchase by historically underutilized businesses of certain bonds required for public work contracts.

TX SB390

Relating to including certain veteran-owned businesses within the definition of a historically underutilized business for purposes of state contracting.

TX HB4790

Relating to including certain veteran-owned businesses within the definition of a historically underutilized business for purposes of state contracting.

TX SB2912

Relating to the state historically underutilized business program; creating a criminal offense.

TX HB1204

Relating to the consideration of ownership interests of certain persons in determining whether a business is a historically underutilized business for purposes of state contracting.

TX SB366

Relating to the consideration of ownership interests of certain persons in determining whether a business is a historically underutilized business for purposes of state contracting.

TX SB232

State Procurement - Preferences - Historically Underutilized Business Zone Businesses

TX HB4235

Relating to postsecondary degree requirements in hiring and contracting by governmental entities.

Similar Bills

No similar bills found.