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eXpendit

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Contract Expenditures
Historically Underutilized Businesses

The Statewide Procurement Division (SPD) of the Comptroller’s office is authorized to adopt rules on historically underutilized businesses. Those rules must be based on the results of the disparity study. SPD must revise the rules in response to the findings of any updates of the study prepared on behalf of the State.

Definitions:

Disparity study
The State of Texas Disparity Study, A Report to the Texas Legislature as Mandated by House Bill No. 2626, 73rd Legislature, Dec. 1994, which was prepared by National Economic Research Associates, Inc. Act of May 24, 1993, 73rd Leg., R.S., Ch. 684, Section 65(c), 1993 General and Special Laws of the State of Texas 2537, 2558.
Historically underutilized business
An entity with its principal place of business in this state that does not exceed any size standard established by SPD and that is:
  • A corporation formed for the purpose of making a profit in which at least 51 percent 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.
  • A sole proprietorship created for the purpose of making a profit that is completely owned, operated and controlled by an economically disadvantaged person.
  • A partnership formed for the purpose of making a profit in which at least 51 percent 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.
  • A joint venture in which each entity in the venture is a historically underutilized business, as determined under another bullet of this definition.

Sources [+]

Texas Government Code Sections 2151.002, Sections 2161.001(1)–(3), Section 2161.0011 (transferring to the Comptroller's office the powers and duties provided under Chapter 2161, Government Code, and providing a reference to the commission in that chapter means the Comptroller), Sections 2161.0015, 2161.002(a)(2), (c), 2161.064(a), (e), 2161.181–2161.182, 2161.251–2161.252, Section 2161.253; Code Construction Act, Texas Government Code Section 311.005(2). 1 Texas Administrative Code Sections 111.13–111.16, 111.18, 111.21–111.22, 111.24 (2003); 28 Tex. Reg. 811-4 (2003), adopted 28 Tex. Reg. 3711 (2003) (to be codified at 1 Texas Administrative Code Sections 111.11–111.12, 111.17, 111.19–111.20, 111.23, 111.25).