AUSTIN, Texas — An Austin district judge on Monday issued a temporary injunction blocking the state’s removal of women- and minority-owned businesses from Texas’ Historically Underutilized Business program, restoring certifications while a lawsuit proceeds.
The order from Amy Meachum prevents the enforcement of emergency rules issued by the office of acting state Comptroller Kelly Hancock that had eliminated women- and minority-owned firms from the program and stripped existing certifications.
The ruling came after four businesses and a trade association filed suit on March 2 against the State of Texas and several agency officials. Plaintiffs include companies based in Houston, Sugar Land, and Burleson, as well as a Houston-area chapter of the National Association of Minority Contractors.
The Historically Underutilized Business program, known as HUB, was created in the 1990s to increase participation of minority- and women-owned businesses in state contracting. It does not impose quotas but sets participation goals for state agencies.
Under Hancock’s emergency changes, eligibility for the program was limited primarily to service-disabled veteran-owned businesses, reducing participation from more than 15,000 firms to fewer than 500, according to court records cited in the case.
State agencies including the Texas Department of Transportation, the Texas Health and Human Services Commission, and the Texas Facilities Commission implemented the changes.
Plaintiffs argued that the comptroller exceeded his authority by altering a program established by the Legislature and that the changes caused them to lose access to state contracts. They requested restoration of the program and reinstatement of certifications.
State Sen. Royce West, who co-authored the 1999 law establishing the program, said changes to the program must be made by the Legislature.
A trial in the case is scheduled for Nov. 9 in Travis County district court.