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RULE §20.282Definitions

The following words and terms, when used in this division, shall have the following meanings, unless the context clearly indicates otherwise.

  (1) Applicant--A corporation, sole-proprietorship, partnership, joint venture, limited liability company, or supplier that applies to the comptroller for certification as an historically underutilized business.

  (2) Application--The comptroller's form for applicants to request certification as an historically underutilized business.

  (3) Commodities--Any tangible good provided by a contractor to the state.

  (4) Comptroller--The office of the Texas Comptroller of Public Accounts.

  (5) Contractor--Any vendor or supplier of commodities or services to a state agency under a purchase order contract or other state contract. A prime contractor is the lead contractor under a state contract.

  (6) Directory--The Texas Certified Historically Underutilized Business Directory.

  (7) Disparity study--The State of Texas Disparity Study - 2009, conducted by MGT of America, Inc., dated March 30, 2010, or any updates of the study that are prepared on behalf of the state as provided by Government Code, §2161.002(c).

  (8) Economically disadvantaged person--An eligible HUB owner (as defined in paragraph (19) of this section) whose business has not exceeded the graduation size standards according to the comptroller's graduation procedures in §20.294 of this title (relating to Graduation Procedures).

  (9) Forum--A collaborative effort between state agencies and potential contractors to provide information and training regarding procurement opportunities.

  (10) Graduation--When a certified HUB exceeds the comptroller's size standard for HUB certification.

  (11) Historically Underutilized Business (HUB)--A business outlined in subparagraphs (A) - (F) of this paragraph that is certified by the State of Texas and has not exceeded the size standards established by §20.294 of this title with its principal place of business in Texas (as defined in paragraph (21) of this section):

    (A) a corporation formed for the purpose of making a profit in which at least 51% of all classes of the shares of stock or other equitable securities are owned by one or more persons described by paragraph (19)(C) of this section;

    (B) a sole proprietorship created for the purpose of making a profit that is 100% owned, operated, and controlled by a person described by paragraph (19)(C) of this section;

    (C) a partnership formed for the purpose of making a profit in which 51% of the assets and interest in the partnership is owned by one or more persons who are described by paragraph (19)(C) of this section;

    (D) a joint venture in which each entity in the joint venture is a HUB under this paragraph;

    (E) a supplier contract between a HUB under this paragraph and a prime contractor under which the HUB is directly involved in the manufacture or distribution of the supplies or materials or otherwise warehouses and ships the supplies; or

    (F) a business other than described in subparagraphs (B), (D), and (E) of this paragraph, which is formed for the purpose of making a profit and is otherwise a legally recognized business organization under the laws of the State of Texas, provided that at least 51% of the assets and 51% of any classes of stock and equitable securities are owned by one or more persons described by paragraph (19)(C) of this section.

  (12) Historically Underutilized Business (HUB) coordinator--The staff member designated by state agencies with more than $10 million in biennial budget. The position of coordinator must be at least equal to the procurement director or may be the procurement director.

  (13) HUB report--A fiscal year semi-annual and annual report of the state's total expenditures, contract awards and payments made to certified HUBs.

  (14) HUB business plan--A written plan developed by state agencies for increasing HUB utilization required as part of the state agency's strategic plan, as required by Government Code, §2161.123.

  (15) HUB subcontracting plan--Written documentation regarding the use of subcontractors, which is required to be submitted with all responses to state agency contracts with an expected value of $100,000 or more where subcontracting opportunities have been determined by the state agency to be probable. The HUB subcontracting plan subsequently becomes a provision of the awarded contract, and shall be monitored for compliance by the state agency during the term of the contract.

  (16) Mentor-Protégé Program--A program designed by the comptroller to assist agencies in identifying prime contractors and HUBs to foster long term relationships and for potential long-term contractual relationships. Each state agency required to have a HUB coordinator is required to implement the Mentor-Protégé Program in accordance with §20.298 of this title (relating to Mentor-Protégé Program).

  (17) Non-treasury funds--Funds that are not state funds subject to the custody and control of the comptroller and available for appropriation by the legislature.

  (18) Other services--All services other than construction and professional services, including consulting services subject to Government Code, Chapter 2254, Subchapter B.

  (19) Owner or qualifying owner--A natural person or persons who:

    (A) are residents of the State of Texas as that term is defined in paragraph (23) of this section;

    (B) have a proportionate interest and demonstrate active participation in the control, operation, and management of the entities' affairs; and

    (C) are economically disadvantaged because of their identification as members of the following groups:

      (i) Black Americans, which includes persons having origins in any of the Black racial groups of Africa;

      (ii) Hispanic Americans, which includes persons of Mexican, Puerto Rican, Cuban, Central or South American, or other Spanish or Portuguese culture or origin, regardless of race;

      (iii) American Women, which includes all women of any ethnicity except those specified in clauses (i), (ii), (iv), and (v) of this subparagraph;

      (iv) Asian Pacific Americans, which includes persons whose origins are from Japan, China, Taiwan, Korea, Vietnam, Laos, Cambodia, the Philippines, Samoa, Guam, the U.S. Trust Territories of the Pacific, the Northern Marianas, and Subcontinent Asian Americans which includes persons whose origins are from India, Pakistan, Bangladesh, Sri Lanka, Bhutan or Nepal;

      (v) Native Americans, which includes persons who are American Indians, Eskimos, Aleuts, or Native Hawaiians; and

      (vi) Veterans as defined by 38 U.S.C. §101(2) who have suffered at least a 20% service-connected disability as defined by 38 U.S.C. §101(16) who are not Black Americans, Hispanic Americans, American Women, Asian Pacific Americans, or Native Americans.

  (20) Person or natural person--A human being who is a U.S. citizen, born or naturalized, or a human being who is not a U.S. citizen, but is a veteran as defined by 38 U.S.C. §101(2) who has suffered at least a 20% service-connected disability as defined by 38 U.S.C. §101(16).

  (21) Principal place of business--The location where the qualifying owner or owners (as defined in paragraph (19) of this section) of the business direct, control, and coordinate the business's daily operations and activities.

  (22) Professional services--Services of certain licensed or registered professions that must be purchased by state agencies under Government Code, Chapter 2254, Subchapter A.

  (23) Resident of the State of Texas--Qualifying owners are considered residents of the state if the owners:

    (A) physically reside in the state for a period of not less than 12 consecutive months prior to submitting an application for HUB certification, and list Texas as their residency in their most recent tax return submitted to the U.S. Internal Revenue Service, or;

    (B) have established, to the satisfaction of the comptroller, a Texas domicile for a period of time sufficient to demonstrate their intention to permanently reside in the state consistently over a substantial period of time.

  (24) Respondent--A person that submits a response.

  (25) Response--A submission made in answer to an invitation for bid, request for proposal, or other purchase solicitation document, which may take the form of a bid, proposal, offer, or other applicable expression of interest.

  (26) SBA--The U.S. Small Business Administration.

  (27) Subcontractor--As defined by Government Code, §2251.001, this is a person who contracts with a prime contractor to work or contribute toward completing work for a governmental entity.

  (28) Subcontractor funds--Payments made to any subcontractor by a prime contractor or supplier under contract with the state.

  (29) Size standards--Graduation thresholds established by the HUB program consistent with the comptroller's rules which are based on the U.S. Small Business Administration's size standards, and based on the North American Industry Classification System codes. These may also be used to determine eligibility for HUB registration.

  (30) Term contract--A statewide contract established by the comptroller as a supply source for user entities for specific commodities or services.

  (31) Treasury funds--State funds subject to the custody and control of the comptroller and available for appropriation by the legislature.

  (32) USAS--Uniform Statewide Accounting System for the State of Texas.

  (33) Vendor Identification Number (VID)--A 13-digit identification number used in state government to identify the bidder or business for payment or award of contracts, certification as a HUB, and registration on the bidders list.

  (34) Work--Providing goods or performing services on behalf of a governmental entity pursuant to a contract.

  (35) Working day--Normal business day of a state agency, not including weekends, federal or state holidays, or days the state agency is declared closed by its executive officer.

Source Note: The provisions of this §20.282 adopted to be effective January 24, 2017, 42 TexReg 235

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