In its latest effort to align its policies with the current administration’s, the Texas comptroller of public accounts has announced that the Historically Underutilized Business (HUB) program has been restructured into the Veteran Heroes United in Business (VetHUB), focusing exclusively on veteran small business owners and operators. The program is effective immediately
The restructuring was enacted under emergency rules, removing women- and minority-owned businesses from the original state program. As the state’s priorities shift with the nation’s drive to remove DEI-related policies, only veterans with a 20% or higher service-connected disability will be eligible for the VetHUB program.
The announcement is the first major move for the program since an administrative freeze halted HUB operations in October. The comptroller announced that the state would execute an agency legal review in the context of ending DEI quotas in government procurement.
As a result of the new guidelines, any businesses previously certified as HUBs based on race, ethnicity and sex will no longer be eligible for VetHUB benefits unless they are owned by a qualifying veteran. Texas will immediately begin working to revoke outdated certifications and issue VettHUB certifications.
While these standards will be the status quo moving forward, the Office of the Comptroller has stated that contracts with agencies that existed prior to the effective date of the new rules will be unaffected.
State agencies will have the prerogative for setting statewide utilization percentage goals, allowing them to establish their own benchmarks for increasing partnership agreements with VetHUB businesses and upholding equal protection guarantees.
The emergency rules have been posted on the Texas Register. While the rules are temporary, the comptroller has expressed the agency’s intent to amend the Texas Administrative Code accordingly to make them a permanent fixture.
Photo by Tim Mossholder from Pexels
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