GOVERNMENT CODE

TITLE 10. GENERAL GOVERNMENT

SUBTITLE D. STATE PURCHASING AND GENERAL SERVICES

CHAPTER 2161. HISTORICALLY UNDERUTILIZED BUSINESSES

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 2161.001.  DEFINITIONS.  In this chapter:
(1)  "Goods" means supplies, materials, or equipment.
(2)  "Historically underutilized business" means an entity with its principal place of business in this state that is:
(A)  a corporation formed for the purpose of making a profit in which 51 percent or more of all classes of the shares of stock or other equitable securities are owned by one or more economically disadvantaged persons who have a proportionate interest and actively participate in the corporation's control, operation, and management;
(B)  a sole proprietorship created for the purpose of making a profit that is completely owned, operated, and controlled by an economically disadvantaged person;
(C)  a partnership formed for the purpose of making a profit in which 51 percent or more of the assets and interest in the partnership are owned by one or more economically disadvantaged persons who have a proportionate interest and actively participate in the partnership's control, operation, and management;
(D)  a joint venture in which each entity in the venture is a historically underutilized business, as determined under another paragraph of this subdivision;  or
(E)  a supplier contract between a historically underutilized business as determined under another paragraph of this subdivision and a prime contractor under which the historically underutilized business is directly involved in the manufacture or distribution of the goods or otherwise warehouses and ships the goods.
(3)  "Economically disadvantaged person" means a person who:
(A)  is economically disadvantaged because of the person's identification as a member of a certain group, including:
(i)  Black Americans;
(ii) Hispanic Americans;
(iii) women;
(iv) Asian Pacific Americans;
(v) Native Americans; and
(vi)  veterans as defined by 38 U.S.C. Section 101(2) who have suffered at least a 20 percent service-connected disability as defined by 38 U.S.C. Section 101(16); and
(B)  has suffered the effects of discriminatory practices or other similar insidious circumstances over which the person has no control.
(4)  "Contract" includes an arrangement under which a state agency receives professional or investment brokerage services.
Added by Acts 1995, 74th Leg., ch. 41, Sec. 1, eff. Sept. 1, 1995.  Amended by Acts 1999, 76th Leg., ch. 1499, Sec. 1.21, eff. Sept. 1, 1999;  Acts 2003, 78th Leg., ch. 1261, Sec. 1, eff. Sept. 1, 2003.
Amended by: 
Acts 2013, 83rd Leg., R.S., Ch. 1255 (H.B. 194), Sec. 1, eff. September 1, 2013.