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RULE §20.23Graduation Procedures
Repealed Date:01/24/2017

(a) A HUB shall be graduated from being used to fulfill HUB procurement utilization goals when it has maintained gross receipts or total employment levels during four consecutive years which exceed the SBA size standards set forth in 13 CFR, §121.201 for the following categories:

  (1) heavy construction other than building construction;

  (2) building construction, including general contractors and operative builders;

  (3) special trade construction;

  (4) medical, financial, and accounting services;

  (5) architectural, engineering and surveying services;

  (6) other services including legal services;

  (7) commodities wholesale; and

  (8) commodities manufacturers.

(b) Firms that achieve the size standards identified in subsection (a) of this section will be assumed to have reached a competitive status in overcoming the effects of discrimination. The comptroller shall review, as part of the certification or recertification process, the financial revenue or relevant data of firms to determine whether the size standards identified in subsection (a) of this section have been achieved.

(c) Businesses that have graduated from the HUB program in accordance with this section, or that have been decertified in accordance with §§20.17 - 20.22 of this title, may not be included in meeting agency HUB goals.

(d) The comptroller shall review the SBA size standards each fiscal year to determine the need to reassess HUB graduation size standards and make any appropriate changes needed.

(e) A HUB that has graduated pursuant to this section or does not qualify as a HUB under §20.11(11) and (19) of this title (relating to Definitions), shall be eligible to reapply for HUB certification only after demonstrating that they meet the qualifications for HUB, including the graduation size standards.

(f) If a HUB is mentoring two or more protégé businesses when it reaches the graduation size standards set forth in subsection (a) of this section, it may petition the director of the TPASS division of the comptroller for a one-year extension of HUB status. The granting of such extension shall be solely at the discretion of the director.

Source Note: The provisions of this §20.23 adopted to be effective September 14, 2011, 36 TexReg 5926

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