DEI HUB-bub

Trying not to lose the plot in House Appropriations

You can watch almost every Texas legislative committee hearing online, which is a great way to stay on top of what’s going on at the Capitol. But there’s so much action during the session, it can be hard to know what to watch.

Texas Impact’s YouTube channel, LegeTV, broadcasts clips from legislative hearings and other Capitol events to help you “fast-forward” to the conversations and bills you care about most. We don’t edit the clips, so you can be sure you’re seeing exactly what happened. Nevertheless, sometimes it’s hard to interpret what you’re seeing without a little background information.

That’s the case with this clip, in which the Texas House Appropriations Subcommittee on Articles 6, 7, & 8 had a detailed conversation about hiring practices at the Texas Water Development Board. This legislative exchange has received a lot of attention because the participants referred to “DEI,” which stands for diversity, equity, and inclusion.

DEI is not a specific government program or agency.

But another acronym the committee talked a lot about is “HUB.” That acronym stands for “historically underutilized business,” and it refers to an actual government program. Most states have HUB programs, and so does the federal government. They don’t all work exactly the same, but they are pretty similar.

HUB programs set percent or dollar-value goals for government agencies to choose vendors that are historically underutilized businesses. And, so the agencies can do that, the programs also include a certification process, where they maintain lists of businesses that are certified as HUBs in their jurisdictions.

In Texas, HUB certification requires at least 51 percent of the business be owned, managed, and operated by owner(s) who are minorities, women, or service-disabled-veterans. They have to be based in Texas, and they have to be small businesses as defined by the Small Business Administration. The program is administered by the Texas Comptroller of Public Accounts.

HUB certification takes some work on the part of the small business, and it has well-documented benefits including validation of your business practices and placement on the state’s vendor list—basically free advertising.

HUB programs also are valuable for agencies and businesses that hire vendors. For example, hiring a “HUB” business guarantees you’re helping the local economy; all “HUB” businesses are certified by the state so you know you’re working with a well qualified contractor; and HUB certification with the state is always free so the company you hire didn’t buy their way into the program.

The Texas Legislature established our state’s HUB program in 1991. Studies have shown that it’s effective, and needed to ensure that all small businesses in Texas can have a shot at competing for government contracts.