Chapter 2161 of the Texas Government Code defines a “historicallyunderutilized business” (“HUB”) as a for-profit entity with itsprincipal place of business in Texas that is at least 51% owned byeconomically disadvantaged persons who actively participate in thecontrol, operations and management of the entity. The currentdefinition of an “economically disadvantaged person” includesindividuals from the following groups: Black Americans; HispanicAmericans; women; Asian Pacific Americans; and NativeAmericans.1 State Representative Ryan Guillen (D-Rio Grande City)recently introduced House Bill 888 which seeks to include disabledveterans as an additional class of economically disadvantagedpersons.
The Statewide Historically Underutilized Business Program (“HUBProgram”), administered by the Texas Comptroller’s Office, isdesigned to increase the share of state government construction andprocurement contracts that are awarded to certified HUBs. Stateagencies have an obligation to make a good faith effort to increasetheir award of contracts to HUBs during each fiscal year.2 In FY2010, Texas state agencies awarded more than $2.1 Billion incontracts to HUBs, a figure representing approximately 16% of thestate’s total spending.
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