Relating to prohibited considerations in governmental entity contracting and elimination of the state's historically underutilized business program.

HB 251 prohibits Texas governmental entities from considering factors like race, gender, sexual orientation, or diversity programs when awarding contracts. Instead, contracts must be awarded based solely on merit-based criteria such as price, qualifications, and other non-discriminatory standards. The bill also eliminates the state's Historically Underutilized Business (HUB) program, which previously provided support for certain businesses. These changes apply only to contracts entered into after the bill's effective date, leaving existing contracts unaffected.