Policy on the Utilization of Historically Underutilized Businesses (HUBs)
In accordance with the Health and Human Services Commission (HHSC) adopted rules, Section 392.100, relating to Historically Underutilized Businesses (HUBs) and Sections 2161.181-182 of the Texas Government Code, state agencies shall make a good faith effort to utilize HUBs in contracts for construction, services, including professional and consulting services and commodity contracts.
HHSC adopted the Texas Comptroller of Public Accounts HUB Rules as its own rules, which encourages the use of HUBs by implementing these policies through race- ethnic- and gender-neutral means. HHSC is committed to promoting full and equal business opportunities for all businesses in state contracting in accordance with the goals specified in the State of Texas Disparity Study:
- *11.2 percent for heavy construction other than building contracts.
- *21.1 percent for all building construction, including general contractors and operative builders contracts.
- 32.7 percent for all special trade construction contracts.
- 23.6 percent for professional services contracts.
- 24.6 percent for all other services contracts.
- 21 percent for commodities contracts.
HHSC and its contractors shall make a good faith effort to meet or exceed these goals and assist HUBs in receiving a portion of the total contract value of all contracts that HHSC expects to award in a fiscal year.
It is the policy of HHSC to accomplish these goals either through contracting directly with HUBs or indirectly through subcontracting opportunities. HHSC’s policy on the utilization of HUBs is related to all contracts with an expected value of $100,000 or more, and whenever practical, in contracts less than $100,000.
Historically Underutilized Businesses (HUBs)
The Texas Government Code defines a HUB as a vendor who is certified by the Texas Comptroller of Public Accounts.
HUB Rules define a HUB as a business formed for the purpose of making a profit in which at least 51 percent of the business is owned, operated and controlled by one or more American Women, Black Americans, Hispanic Americans, Asian Pacific Americans, or Native Americans who are economically disadvantaged and who have been historically underutilized because of their identification as members of these groups. Eligible entities must have their principal place of business and permanent business office located in Texas where the majority HUB owner(s) makes the decisions, controls the daily operations of the organization and participates in the business. The qualifying owners must be residents of the State of Texas.
The Texas Comptroller of Public Accounts will certify those eligible businesses that apply for HUB certification according to the business' definition, structure and defined ownership.
To assist HHSC in receiving HUB Credit for HUB utilization in a state contract, each HUB or minority-owned business should be certified or have applied for certification with the State of Texas through the Texas Comptroller of Public Accounts.