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.

HB 1204 amends Texas law to expand eligibility for historically underutilized business (HUB) status in state contracting. It adds people with disabilities (as defined by federal law) and individuals identifying with specific sexual orientations or gender identities (including transgender, gay, lesbian, bisexual, queer, intersex, or asexual) to the criteria for being considered "economically disadvantaged." Businesses owned by at least 51% by qualifying individuals must now submit a physician's affidavit verifying disability claims for HUB certification. The bill requires the comptroller to establish new contracting goals for these businesses, which will be in addition to existing goals and cannot reduce current ones.