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A BILL TO BE ENTITLED
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AN ACT
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relating to including certain veteran-owned businesses within the |
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definition of a historically underutilized business for purposes of |
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state contracting. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2161.001(2), Government Code, is amended |
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to read as follows: |
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(2) "Historically underutilized business" means an |
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entity with its principal place of business in this state that is: |
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(A) a corporation formed for the purpose of |
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making a profit in which 51 percent or more of all classes of the |
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shares of stock or other equitable securities are owned by one or |
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more economically disadvantaged persons who have a proportionate |
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interest and actively participate in the corporation's control, |
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operation, and management; |
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(B) a sole proprietorship created for the purpose |
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of making a profit that is completely owned, operated, and |
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controlled by an economically disadvantaged person; |
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(C) a partnership formed for the purpose of |
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making a profit in which 51 percent or more of the assets and |
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interest in the partnership are owned by one or more economically |
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disadvantaged persons who have a proportionate interest and |
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actively participate in the partnership's control, operation, and |
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management; |
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(D) a joint venture in which each entity in the |
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venture is a historically underutilized business, as determined |
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under another paragraph of this subdivision; [or] |
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(E) a supplier contract between a historically |
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underutilized business as determined under another paragraph of |
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this subdivision and a prime contractor under which the |
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historically underutilized business is directly involved in the |
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manufacture or distribution of the goods or otherwise warehouses |
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and ships the goods; or |
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(F) a small business concern owned and controlled |
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by veterans that is certified as a veteran-owned small business by |
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the United States Small Business Administration. |
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SECTION 2. This Act takes effect September 1, 2025. |