Harris County Joins Legal Fight Supporting Restoration of Texas Historically Underutilized Business Program

Houston, Texas – Harris County filed an amicus brief supporting plaintiffs in Ipsum General Contractors, LLC, et al. v. Kelly Hancock, et al., urging the court to restore the State of Texas’s Historically Underutilized Business (HUB) Program and halt recent changes by the Texas Comptroller of Public Accounts that removed minority- and women-owned businesses from eligibility. 

The HUB program, established in the 1990s, was designed to ensure minority- and women-owned businesses have a fair opportunity to participate in the state’s contracting process. Late last year, interim Comptroller Kelly Hancock unilaterally slashed the program to limit eligibility, removing minority and women owned businesses from eligibility. Harris County’s amicus brief argues the action is unlawful and violates the Texas Constitution’s separation-of-powers protections. 

Harris County relies on the State’s HUB certification as a key component of its own Minority- and Women-Owned Business Enterprise (MWBE) program, adopted in 2020 following a comprehensive disparity study documenting ongoing barriers to equal opportunity in public contracting. Since the program’s adoption, the County has more than doubled its spending with MWBEs and established an aspirational goal of awarding 30 percent of contract spending to certified businesses. 

“The State’s Historically Underutilized Business Program plays a critical role in ensuring fair access to public contracting and supporting the stability of local procurement systems,” said Harris County Attorney Jonathan Fombonne. “The Comptroller’s unilateral decision to dismantle long-standing eligibility standards not only harms small businesses and local economies, but it also raises serious constitutional concerns by attempting to override the will of the legislature.” 

“Minority- and women-owned businesses should not lose decades of hard-fought opportunity because one state official decided he could rewrite the law on his own. When these pathways to prosperity are stripped away, the damage ripples through small businesses, workers, families, and entire local economies. I’ve spent decades fighting to make public contracting fairer and more accessible, including by establishing the Equity in Enterprise program to support small businesses across Precinct One. I’m proud that Harris County is standing up to defend equal opportunity and the rule of law,” said Harris County Commissioner Rodney Ellis. 

“The state’s elimination of the Historically Underutilized Business Program signed into law 1999 will hurt our economy, and we must fight to reinstate it. Eliminating minority- and women-owned business eligibility jeopardizes current contracts and limits opportunities for the future. Because of the Comptroller’s decision, it’s now easier for the big guys to get bigger, and it shuts out historically underutilized businesses that aspire to grow. I am proud that Harris County is fighting back and that the original petitioner, IPSUM General Contractors, LLC, is located in Harris County Precinct 2,” said Harris County Commissioner Adrian Garcia. 

“The Comptroller’s decision to dismantle the HUB program is not only unlawful, but it is also an unjust attack against hardworking entrepreneurs,” said Commissioner Lesley Briones, Harris County Precinct 4. “This change negatively impacts over 15,000 Texas businesses and undermines decades of bipartisan work to expand opportunity. In Precinct 4, we are creating opportunities through initiatives like our Small Business Accelerator and buyers convenings. We will not let them undermine decades of progress. Harris County is fighting to deliver the justice, economic opportunity, and prosperity Texans deserve.” 

The changes made by the state disrupt the County’s procurement processes, narrow the pool of qualified bidders, threaten businesses that have built operations around HUB certification, and damage the County’s local economy. The County is asking the court to allow the State’s HUB program to continue operating as originally enacted so that local governments can maintain procurement stability and advance equal opportunity in public contracting. 

The state of Texas is accepting public comments on this change and the impacts to businesses and community by April 12 by submitting a public comment by email to Gerard.MacCrossan@cpa.texas.gov or by mail to Gerard MacCrossan, P.O. Box 13528, Austin, TX 78711. A virtual public session on the proposed changes will also be held on Tuesday, April 7 at 7 a.m. CT. To sign up to speak, contact Gerard MacCrossan by Monday, April 6 at the above email.