AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

 

S.B. 116 relates to the consideration of ownership interests of disabled veterans in determining whether a business is a historically underutilized business (HUB) for purposes of state contracting. A HUB is a business that is at least 51 percent owned by an Asian Pacific American, African American, Hispanic American, Native American, and/or woman. A HUB is a for-profit entity that has not exceeded the size standards prescribed by Title 34, Section 20.23, Texas Administrative Code, has its principle place of business in Texas, and has an owner residing in Texas with proportionate interest who actively participates in the control, operations, and management of the entity's affairs. Each state agency is required to make a good faith effort to utilize HUBs in contracts for construction, services (including professional and consulting services), and commodities purchases. This bill amends Section 2161.003(3) (defining "economically disadvantaged person"), Government Code, to include veterans as defined by 38 U.S.C. Section 101(2) who have a service-connected disability (an injury or illness that was incurred or aggravated during active military service) as defined by 38 U.S.C. Section 110(16).

 

As proposed, S.B. 116 amends current law relating to the consideration of ownership interests of disabled veterans in determining whether a business is a historically underutilized business for purposes of state contracting.

 

RULEMAKING AUTHORITY

 

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

 

SECTION BY SECTION ANALYSIS

 

SECTION 1. Amends Section 2161.001(3), Government Code, to redefine "economically disadvantaged person."

 

SECTION 2. Effective date: September 1, 2013.