The HUB Case
CASE OVERVIEW
Jurisdiction: Travis County District Court, State of Texas
Case Style: Globe Express Trucking Inc., et al. v. Kelly Hancock, Acting Texas Comptroller of Public Accounts, et al.
Case Number: D-1-GN-26-001941
Initial Filing Date: March 2, 2026
Updated Filing Date: March 13, 2026
Hearing Date: March 30, 2026, 9:00 AM CT
Type of Action: Verified Original Petition and Application for Declaratory and Injunctive Relief
Relief Sought: Temporary Injunction, Permanent Injunction, Declaratory Judgment
PLAINTIFFS
Globe Express Trucking Inc. – Dallas, TX (mail delivery; founded by Black American woman Marie-Pascale Ruberandinda)
Kirstins Care LLC – Dallas, TX (childcare services; founded by Black American woman Kirstin Green)
Ipsum General Contractors, LLC – Houston, TX (general contractor; founded by Hispanic American Ruben Mercado Jr.)
Mpulse Healthcare & Technology, LLC – Sugar Land, TX (medical technology distributor; owned by Black American Tyrone Dixon)
Williams Professional Water Restoration Service LLC – Burleson, TX (restoration services; owned by Black American woman Cortena Williams)
Houston WiFi, Ltd. Co. d/b/a Houston Construction Services – Houston, TX (general contractor; owned by Hispanic American Ray Gutierrez)
NAMC, Inc. – Greater Houston Chapter – Houston, TX (nonprofit trade association representing 150+ minority- and women-owned contractors)
DEFENDANTS
Kelly Hancock, Acting Texas Comptroller of Public Accounts (official capacity)
Adriana Cruz, Executive Director, Texas Economic Development & Tourism Office (official capacity)
Marc D. Williams, Executive Director, Texas Department of Transportation (official capacity)
Stephanie Muth, Executive Commissioner, Texas Health and Human Services Commission (official capacity)
Will Mckerall, Executive Director, Texas Facilities Commission (official capacity)
BACKGROUND
The Texas Historically Underutilized Business (HUB) Program, codified under Tex. Gov’t Code Chapter 2161, was enacted in the 1990s to remedy documented discrimination in state contracting and expand access to economic opportunity.
The statute defines HUBs as small businesses majority-owned by economically disadvantaged individuals, including Black Americans, Hispanic Americans, women, Asian Pacific Americans, Native Americans, and disabled veterans.
On December 2, 2025, Acting Comptroller Hancock issued emergency regulations restructuring the program exclusively for service-disabled veteran-owned businesses and renaming it “VetHUB.”
On January 6, 2026, the Comptroller decertified thousands of minority- and women-owned businesses.
In March 2026, the Comptroller introduced proposed rules that mirror the emergency regulation—seeking to make these changes permanent despite ongoing litigation.
LEGAL ARGUMENT
The plaintiffs advance four core legal claims.
1. Ultra Vires Action (Exceeding Authority):
The Comptroller exceeded his statutory authority under Tex. Gov’t Code Chapter 2161 by attempting to rewrite and narrow the definition of HUB eligibility—power reserved to the Legislature.
2. Procedural Violations:
Both the emergency rule and proposed regulations fail to comply with the Texas Administrative Procedure Act, including requirements for notice, justification, and public participation.
3. Constitutional Violations (Due Process & Equal Protection):
The mass decertification of businesses without notice or opportunity to be heard deprived plaintiffs of a state-created property interest in violation of the Texas Constitution.
4. Separation of Powers:
The Comptroller’s actions usurp legislative authority and undermine the constitutional structure of Texas government.
The Legislature’s rejection of House Bill 167 in the 2025 session—legislation that would have implemented similar changes—further underscores that these actions bypass the lawful legislative process.
KEY FACTS & FIGURES
Approximately 16,000+ HUB-certified businesses existed prior to January 2026; fewer than 500 remain after decertification
Remaining certified businesses are almost exclusively service-disabled veteran-owned
In FY2024, HUB-certified businesses received approximately $4.1 billion in state contracts
In the first half of FY2025, TxDOT, HHSC, and TFC alone spent more than $1.6 billion on HUB-related contracts
State agencies have begun disregarding statutory HUB requirements, including assistance, subcontracting plans, and good-faith participation obligations
The challenged rules threaten millions in contracts, ongoing negotiations, and business viability across multiple industries
RELIEF SOUGHT
Declaration that the emergency and proposed regulations are null and void
Temporary and permanent injunction blocking enforcement of both rules
Reinstatement of plaintiffs’ HUB certifications
Order requiring state agencies to comply with statutory HUB obligations
Attorney’s fees and costs under Tex. Civ. Prac. & Rem. Code §§ 37.009, 106.002(b)
ATTORNEYS
Co-Lead Counsel: Alphonso David, Global Black Economic Forum.
Co-Lead Counsel: Adam Schuman, David Hoffman, Shanice Hinckson, Petrillo Klein + Boxer LLP.
Local Counsel: Chad W. Dunn, Brazil & Dunn LLP.
BACKGROUND
The Texas Historically Underutilized Business (HUB) Program, codified under Tex. Gov’t Code Chapter 2161, was enacted in the 1990s to remedy documented discrimination in state contracting and expand access to economic opportunity.
The statute defines HUBs as small businesses majority-owned by economically disadvantaged individuals, including Black Americans, Hispanic Americans, women, Asian Pacific Americans, Native Americans, and disabled veterans.
On December 2, 2025, Acting Comptroller Hancock issued emergency regulations restructuring the program exclusively for service-disabled veteran-owned businesses and renaming it “VetHUB.”
On January 6, 2026, the Comptroller decertified thousands of minority- and women-owned businesses.
In March 2026, the Comptroller introduced proposed rules that mirror the emergency regulation—seeking to make these changes permanent despite ongoing litigation.
LEGAL ARGUMENT
The plaintiffs advance four core legal claims.
1. Ultra Vires Action (Exceeding Authority):
The Comptroller exceeded his statutory authority under Tex. Gov’t Code Chapter 2161 by attempting to rewrite and narrow the definition of HUB eligibility—power reserved to the Legislature.
2. Procedural Violations:
Both the emergency rule and proposed regulations fail to comply with the Texas Administrative Procedure Act, including requirements for notice, justification, and public participation.
3. Constitutional Violations (Due Process & Equal Protection):
The mass decertification of businesses without notice or opportunity to be heard deprived plaintiffs of a state-created property interest in violation of the Texas Constitution.
4. Separation of Powers:
The Comptroller’s actions usurp legislative authority and undermine the constitutional structure of Texas government.
The Legislature’s rejection of House Bill 167 in the 2025 session—legislation that would have implemented similar changes—further underscores that these actions bypass the lawful legislative process.
KEY FACTS & FIGURES
Approximately 16,000+ HUB-certified businesses existed prior to January 2026; fewer than 500 remain after decertification
Remaining certified businesses are almost exclusively service-disabled veteran-owned
In FY2024, HUB-certified businesses received approximately $4.1 billion in state contracts
In the first half of FY2025, TxDOT, HHSC, and TFC alone spent more than $1.6 billion on HUB-related contracts
State agencies have begun disregarding statutory HUB requirements, including assistance, subcontracting plans, and good-faith participation obligations
The challenged rules threaten millions in contracts, ongoing negotiations, and business viability across multiple industries
RELIEF SOUGHT
Declaration that the emergency and proposed regulations are null and void
Temporary and permanent injunction blocking enforcement of both rules
Reinstatement of plaintiffs’ HUB certifications
Order requiring state agencies to comply with statutory HUB obligations
Attorney’s fees and costs under Tex. Civ. Prac. & Rem. Code §§ 37.009, 106.002(b)
ATTORNEYS
Co-Lead Counsel: Alphonso David, Global Black Economic Forum.
Co-Lead Counsel: Adam Schuman, David Hoffman, Shanice Hinckson, Petrillo Klein + Boxer LLP.
Local Counsel: Chad W. Dunn, Brazil & Dunn LLP.
Join Us In Action
Become part of our global community working to make economic justice a reality for all.
© 2025 Global Black Economic Forum. All Rights Reserved.
Join Us In Action
Become part of our global community working to make economic justice a reality for all.
© 2025 Global Black Economic Forum.
All Rights Reserved.