Judge Temporarily Reinstates Texas HUB Program for Women and Minority Businesses
An Austin district judge has ordered the temporary reinstatement of Texas’s Historically Underutilized Business (HUB) program rules, allowing women- and minority-owned businesses to qualify for state contracts again. This ruling follows a lawsuit filed in March by four business owners and a trade association against the state of Texas and Acting Comptroller Kelly Hancock. The plaintiffs challenged emergency rules implemented in December that stripped HUB certifications from women and minorities, limiting eligibility exclusively to service-disabled veteran-owned businesses. The judge directed state agencies to notify decertified businesses of the ruling and reinstated six specific plaintiffs. The HUB program, established in the 1990s, aims to support diverse businesses in securing government contracts without setting strict quotas. Comptroller Hancock had justified the changes by arguing for a performance-based system free of race or sex considerations, a move critics argued overstepped executive authority. State Senator Royce West emphasized that only the Legislature can alter the program. A trial date has been set for November 9, marking a significant development in the ongoing debate over diversity initiatives in government contracting.
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Judge Temporarily Reinstates Texas HUB Program for Women and Minority Businesses
An Austin district judge has ordered the temporary reinstatement of Texas’s Historically Underutilized Business (HUB) program rules, allowing women- and minority-owned businesses to qualify for state contracts again. This ruling follows a lawsuit filed in March by four business owners and a trade association against the state of Texas and Acting Comptroller Kelly Hancock. The plaintiffs challenged emergency rules implemented in December that stripped HUB certifications from women and minorities, limiting eligibility exclusively to service-disabled veteran-owned businesses. The judge directed state agencies to notify decertified businesses of the ruling and reinstated six specific plaintiffs. The HUB program, established in the 1990s, aims to support diverse businesses in securing government contracts without setting strict quotas. Comptroller Hancock had justified the changes by arguing for a performance-based system free of race or sex considerations, a move critics argued overstepped executive authority. State Senator Royce West emphasized that only the Legislature can alter the program. A trial date has been set for November 9, marking a significant development in the ongoing debate over diversity initiatives in government contracting.
AP News