TX Comptroller Overrides Law to Shut Down Prog for Women & Minority Biz Owners

Acting Comptroller Kelly Hancock just dismantled a program that the Legislature created and Governor Bush signed into law. On December 2, Hancock issued “emergency rules” that revoked the HUB certifications of women and minority business owners across Texas, stripping them from a program established in Texas Government Code Chapter 2161. State Senator Royce West, who co-authored the original legislation, made it clear: “He doesn’t have the authority to do it. It’s a statute. I see nowhere in statute where an interim comptroller has the authority to repeal a statute that the legislature put in effect.” Unless a court strikes down a law or the Legislature repeals it, that law stands. Hancock’s unilateral action violates the separation of powers and undermines the democratic process that created this program 26 years ago. The 2009 State of Texas Disparity Study documented real discrimination in state contracting. That study wasn’t some abstract exercise. It identified statistical disparities by race, ethnicity, and gender in state contract awards and set evidence-based goals: 11.2% for heavy construction contracts, 21.1% for building construction, 32.9% for special trade construction, and 23.7% for professional services. These weren’t quotas. They were aspirational goals based on documented underutilization. The program worked. In 2018, HUB businesses received $2.68 billion in state contracts. By May 2025, roughly 16,000 certified HUBs were receiving 11% of statewide expenditures, about $2 billion annually. The largest beneficiaries were actually Anglo-American women (41% of HUB contract awards), followed by Hispanic Americans (35%). This program helped thousands of qualified Texas business owners compete for work they had been systematically denied. Hancock claims he’s ending discrimination, but he’s actually restoring it. The HUB program didn’t guarantee anyone a contract. It required state agencies to notify qualified businesses about opportunities and make a good faith effort to consider them. Businesses still had to prove they had the qualifications, capability, and capacity to perform. The Legislature must reassert its authority. Pass emergency legislation that explicitly reaffirms the HUB program and clarifies that no executive branch official can unilaterally override statute. Make it clear that 16,000 Texas business owners will not lose their shot at fair consideration because one appointed official decided to ignore the rule of law.