Committee hears testimony on bill to expand HUB certification to veteran-owned businesses

Senate Bill 3 90, which would amend the Texas Government Code to add U.S. Small Business Administration–certified veteran-owned businesses to the state’s Historically Underutilized Business (HUB) definition and remove a current 20% disability requirement for HUB eligibility, drew broad support from veterans’ business groups on Wednesday but was left pending by the Committee on Veteran Affairs.

Supporters said the change would open contracting opportunities to more veteran entrepreneurs while critics on the panel cautioned that a broader definition could complicate the statutory disparity-study requirement that underpins HUB set‑asides.

Senator John Menendez, explaining the bill on behalf of Senator Todd Middleton, said the measure would “include veteran owned businesses certified by the United States Small Business Administration in the definition of historically underutilized businesses for contracting in the state,” and that it would “open up this designation to all veteran owned businesses regardless of disability percentage.” The author framed the proposal as a way to increase participation of veteran-owned firms in state procurement and strengthen the supply chain.

Dave Weaver, president of the Houston Regional Veterans Chamber of Commerce, testified in support and said, “We strongly support Senate Bill 3 90.” John Kakleys, executive vice president of the same organization, cited a U.S. House report and testified that veterans received about 0.8% of HUB awards in 2024 and urged the committee to “remove the limiting language and truly level this playing field.” Amy Schicki, government affairs task force chair for the Houston Regional Veterans Chamber, described operational and financing barriers veterans face when starting businesses.

Jim Brennan, legislative director for the Texas Coalition of Veterans Organizations, provided historical context and warned committee members that HUB eligibility in Texas has required disparity or underutilization evidence in prior proceedings. Senator Eckhart asked whether broadening the category to “veterans generally” might fail to meet the disparity-study hurdle, noting past local studies that found disparities had closed and could therefore change eligibility outcomes. Brennan said the issue of study cost and proof was a significant consideration historically and expressed willingness to work with the committee on tailored language.

Other veteran business owners and advocates — including Troy Skeen and Jeff Hahn — said the change would translate military training into economic opportunity and help retain veterans in Texas.

After roughly an hour of testimony and follow-up questions, committee members closed public testimony and left Senate Bill 3 90 pending for further consideration.

The committee did not take a final vote on the bill; the chair said the bill would be held to allow further review and possible redrafting to address concerns about disparity-study requirements and program scope.