Historically Underutilized Business (HUB) Program
A "Historically Underutilized Business"…
- is a for-profit entity that has not exceeded the size standards prescribed by 34 TAC §20.23, and has its principal place of business in Texas, and
- is at least 51% owned by an Asian Pacific American, Black American, Hispanic American, Native American, American woman and/or Service Disabled Veteran, who reside in Texas and actively participate in the control, operations and management of the entity's affairs.
The statewide HUB Program facilitates the use of HUBs in state procurement and provides them with information on the state's procurement process.
In accordance with 34 TAC §20.13, each state agency shall make a good faith effort to utilize HUBs in contracts for construction, services (including professional and consulting services) and commodities purchases.
Vendors seeking certification as a HUB are required to submit a completed HUB certification application and supporting documentation to the statewide HUB Program, affirming under penalty of perjury that their business qualifies as a HUB*.
Benefits of HUB Certification
- HUB certification is free of charge.
- Certification is valid for 4 years, provided that business continues to meet the eligibility requirements*.
- Business is registered on the Comptroller’s Web-based HUB Directory. State agencies use the HUB Directory in conjunction with the Comptroller’s Centralized Master Bidders List (CMBL) to solicit bids from certified HUBs for state purchasing and public works contracts. Prime contractors also use the HUB Directory to identify HUBs to whom they will send notification of their subcontracting opportunities.
- Increased exposure to the general public, as well as, other entities who have a supplier diversity program and are searching for minority and woman-owned businesses.
* Vendors may also receive HUB certification by way of a certification memorandum of agreement the Statewide HUB Program has entered into with other local governments or nonprofit organizations. View more about HUB Certification Agreements
Vendors can now apply online for HUB certification via the MyCPA Secure Login Portal.
IMPORTANT: It is vital to be truthful in all documents provided for HUB certification. It is a state jail felony under Texas Penal Code §37.10 to knowingly provide false information in an application for HUB certification. It is a third degree felony under Texas Government Code §2161.231 to apply for a state contract as a HUB vendor knowing you are not actually a HUB.
If the felony conduct prohibited under Texas Government Code §2161.231 results in the awarding of a state contract, then the act of knowingly acquiring funds derived from that felony conduct may be prosecuted under Texas Penal Code §34.02. An offense under this section is punishable as a felony regardless of the amount of funds derived from the illegal conduct. First degree felony punishment applicable if the value of the funds is $200,000 or more.
- A first degree felony is punishable by 5-99 years or life in prison, and a fine up to $10,000.
- A third degree felony is punishable by 2-10 years in prison, and a fine up to $10,000.
- A state jail felony is punishable by 180 days to 2 years in the state jail, and a fine up to $10,000.
The Comptroller's office helps companies by:
- Providing education and outreach to minority and woman-owned businesses regarding the Statewide HUB Program and its initiatives (read the Fiscal 2012 HUB Education and Outreach report (PDF, 2.7MB))
- Administering the certification and compliance functions for the Statewide HUB Program,
- Assisting state agencies and institutions of higher education with training, planning, and implementing HUB education and outreach efforts,
- Developing and administering HUB rules and statute to ensure full and equal access to state procurement opportunities for minority and woman-owned businesses, and
- Compiling and reporting, to the Legislature, the State's HUB expenditures and contract awards semi-annually.