BILL ANALYSIS

H.B. 1096

By: Farias

Defense & Veterans' Affairs

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Currently, historically underutilized businesses (HUBs) are defined as those businesses owned by economically disadvantaged persons, including women and members of certain racial and ethnic groups, who have suffered the effects of discriminatory practices or other similar circumstances over which they have no control. However, the definition does not include service disabled veterans among those groups of economically disadvantaged persons. H.B. 1096 seeks to recognize a service disabled veteran-owned business as a HUB for purposes of state contracting.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 1096 amends the Government Code to redefine "economically disadvantaged person," for the purpose of determining whether a business is a historically underutilized business under state contracting law, to include a disabled veteran as defined by federal law.  The bill requires the categorization of historically underutilized businesses by the comptroller of public accounts to include whether a business qualifies as a historically underutilized business because it is owned or owned, operated, and controlled, as applicable, wholly or partly by one or more disabled veterans as defined by federal law.  The bill makes a conforming change.

EFFECTIVE DATE

September 1, 2011.