Bill > HB3573

This bill prohibits governmental entities in Texas from awarding contracts or providing preferential treatment based on an individual's race, color, ethnicity, sex, gender identity, or sexual orientation. The bill effectively eliminates the state's Historically Underutilized Business (HUB) program by repealing Chapter 2161 of the Government Code, which previously governed minority and women-owned business participation in state contracts. The new provision (Section 2252.911) broadly prevents any discrimination or preference in contract awards based on personal characteristics. The bill will apply only to contracts entered into on or after September 1, 2025, meaning existing contracts will not be immediately impacted. Additionally, the bill includes a provision ensuring that any fund transfers previously directed by the Legislative Budget Board under the old HUB program rules will remain valid. This legislation represents a significant change in how Texas governmental entities approach diversity and inclusion in contracting, effectively removing race and gender-based considerations from the procurement process.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB3573