The Texas Association of Mexican American Chambers of Commerce (TAMACC) strongly opposes Acting Texas Comptroller Kelly Hancock’s suspension of new certifications under the Historically Underutilized Business (HUB) program. We are working closely with business owners, lawmakers, and our membership to advocate for the full reinstatement of this critical program.
Background
On October 28, 2025, the Comptroller’s office halted new HUB certifications, citing Executive Order GA-55, which prohibits awarding contracts based on race, ethnicity, or sex. While equal treatment under the law is vital, this suspension raises legal and constitutional concerns,
Texas’ HUB program:
- Is not race-based and does not impose set-asides.
- Has consistently addressed disparities, showing that minority- and women-owned businesses receive disproportionately fewer state contracts.
- Currently, only 11% of the state’s budget goes to HUB-certified firms, despite efforts to level the playing field.
What is the HUB Program?
Under Texas Government Code Chapter 2161, HUBs include:
- Minority-owned businesses
- Women-owned businesses
- Service-disabled veteran–owned businesses
- Other economically disadvantaged individuals
The HUB program ensures fairness in state contracting, fosters innovation, strengthens the economy, and allows historically underrepresented businesses to thrive. Independent studies in 1994 and 2009 confirmed that these businesses were significantly underutilized despite being fully capable.
Why the Suspension is Problematic
- Statutory Mandate: Texas law (Gov’t Code §2161.061(a)) requires the Comptroller to certify HUBs. Using “shall” makes this mandatory.
- Executive Orders vs. Statute: Executive orders cannot override existing laws; the HUB program remains legally binding.
- Judicial Authority: Constitutionality is determined by the courts, not the executive branch.
- APA Compliance: Any program changes require public notice and comment under the Texas Administrative Procedure Act—this step was not followed.
- Program Misunderstanding: HUB certifications ensure fair access, not preferential treatment. Contracts are awarded competitively, not based on quotas.
TAMACC Position
Suspending HUB certifications violates legislative mandate and undermines proven, data-driven efforts to create economic opportunity for all Texans. We call for the immediate reinstatement of HUB certifications or a clear legal explanation for the suspension.
TAMACC remains committed to supporting minority-, women-, and veteran-owned businesses and ensuring Texas remains a competitive, inclusive, and fair marketplace for all.
We need your voice!
Since the Acting State Comptroller suspended new HUB certifications, TAMACC has received a high volume of inquiries from concerned members. Please know that TAMACC is actively engaged in addressing this issue, and we will keep you informed about next steps and opportunities for your involvement.
If you are a HUB-certified business and want to help preserve this vital program, please email your contact information to [email protected].
