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SB 366

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.

89th Legislature (2025) Introduced by Sarah Eckhardt

SB 366 changes how Texas counts ownership stakes when determining if businesses qualify as historically underutilized for state contracting preferences.

Referred to Business & Commerce
#comptrollerofpublicaccounts(v2608) #historicallyunderutilizedbusinesses(s0076) #purchasing--state(i0643)
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Bill Summary · SB 366

Legislative bill overview

SB 366 modifies how Texas determines whether a business qualifies as a "historically underutilized business" (HUB) for state contracting purposes by changing how ownership interests of certain persons are counted. The bill appears to adjust the calculation methodology for ownership stakes when determining HUB eligibility, potentially affecting which minority-owned or women-owned businesses qualify for HUB contracting set-asides and preferences.

Why is this important

HUB certifications directly influence access to state contracts worth billions of dollars annually. Changes to ownership calculation rules can either expand or restrict which businesses qualify for preferential contracting opportunities, affecting entrepreneurship and economic opportunity in underrepresented communities. This has tangible consequences for business growth, employment, and procurement equity in Texas government spending.

Potential points of contention

  • Definitional ambiguity: The bill doesn't specify which "certain persons" have their interests calculated differently or why, leaving unclear who benefits or loses HUB eligibility
  • Equity concerns: Depending on implementation, changes could either strengthen minority business participation or create loopholes that undermine HUB program protections
  • Administrative impact: State agencies and businesses may need new compliance procedures and certification reviews, creating implementation costs and potential delays

Compiled from official sources — confirm details with the bill’s official record.

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