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

HB 3573 prohibits Texas governmental entities from awarding contracts or providing preferential treatment based on race, color, ethnicity, sex, gender identity, or sexual orientation. It eliminates the state's historically underutilized business program by repealing Chapter 2161 of the Government Code. The law applies only to contracts entered into on or after September 1, 2025, with existing contracts governed by prior law. This bill directly affects state and local agencies that issue contracts, removing specific criteria they could previously consider in vendor selection.