Texas State Legislature has introduced Senate Bill 390, a significant legislative measure aimed at expanding opportunities for veteran-owned businesses in state contracting. Proposed by Senator Middleton on November 19, 2024, the bill seeks to amend the definition of "historically underutilized business" (HUB) to include small businesses owned and controlled by veterans, certified by the United States Small Business Administration.

The primary goal of Senate Bill 390 is to enhance the economic landscape for veteran entrepreneurs by ensuring they have access to state contracts, which can be crucial for business growth and sustainability. By recognizing veteran-owned businesses as historically underutilized, the bill aims to level the playing field in state procurement processes, addressing the challenges these businesses often face in securing contracts.

Key provisions of the bill include the explicit inclusion of veteran-owned small businesses in the HUB definition, thereby allowing them to benefit from state contracting opportunities designed to support economically disadvantaged entities. This move is expected to foster a more inclusive business environment and stimulate economic growth within the veteran community.

The bill has sparked discussions among lawmakers and stakeholders, with proponents highlighting the importance of supporting veterans who have served the country and are now seeking to establish their businesses. Critics, however, may raise concerns about the potential implications for existing HUBs and the overall impact on state contracting dynamics.

If passed, Senate Bill 390 will take effect on September 1, 2025, marking a pivotal step towards empowering veteran entrepreneurs in Texas. The bill's passage could lead to increased competition in state contracting, ultimately benefiting the economy and enhancing the support network for veterans transitioning to civilian business ownership. As the legislative process unfolds, the focus will remain on how this bill can reshape the landscape for veteran-owned businesses in Texas.