Texas Comptroller of Public Accounts Statewide Historically Underutilized Business (HUB) Program

HUB CERTIFICATION APPLICATION

Presenter: Charlene Danel-RendonHUB Compliance AnalystPhone 512-463-3371e-mail charlene.rendon@cpa.state.tx.us

What is a “HUB”?

A “HUB” is a minority or woman owned business operating in the state of Texas that is certified with the State Comptroller of Public Accounts (CPA) as a Historically Underutilized Business.

HB 3560 (80th Legislative Session)

HB 3560 of the 80th Legislative Session abolished the Texas Building and Procurement Commission (TBPC) and transferred the state facilities duties to the new Texas Facilities Commission and ALL the state procurement services to the Comptroller of Public Accounts (CPA).

This transfer of duties includes the Statewide HUB Program and its certification responsibilities to the CPA.

The Statewide HUB Program

Mission

The mission of the Statewide HUB Program is to facilitate the use of HUBs in state procurement, and to effectively provide education and training to minority and woman-owned businesses on the state’s procurement processes.

BENEFITS of HUB Certification

Your HUB certification:

Increases the business exposure to state agencies and universities; Free of charge;Valid for 4 years;Provides a business listing in the State’s HUB Directory;Allows state agencies and universities to provide a “good faith effort” in their HUB expenditure awards. These efforts allow them to set HUB participation measurement goals that gauge their progress and performance in awarding HUBs more procurement contracts.

HUB Eligibility RequirementsCriteria IEthnicity, U.S. Citizenship, and Texas Residency

Ethnicity:Black Americans, Asian Pacific Americans, Hispanic Americans, Native Americans, orAn American woman

U.S Citizen born or naturalizedResident of the State of Texas.

Criteria IIOwnership

For Profit Business,51% or more ownership and active participation, andTexas Resident owned.

HUB Eligibility Requirements, Cont.

Criteria IIIActive Participation, Control and Proportionate Interest

Must demonstrate active participation in the daily operations ofthe business, andControl of independent business decisions in regards to its future.

Criteria IVPrincipal Place of Business

The principal place of business must be within the State of Texas.

HUB Certification Application

The State of Texas Application for Certification as a Historically Underutilized Business (HUB) is used to certify qualifying businesses.

The following are documentation is necessary for the Statewide HUB Program to determine certification eligibility.

1. Federal Employer’s Identification Number (EIN).2. Business Structure:

Sole ProprietorshipPartnershipCorporationJoint VentureLimited Liability PartnershipLimited Liability Corporation

HUB Certification Application, cont.

3. Business Name, Mailing Address and Physical Address Information

4. Internet Web Page/URL Address (if applicable)5. Email (if applicable)6. Business Phone and Fax number7. Major Credit Card Acceptance8. Resident Bidder

In accordance with Texas Government Code 2006.001, refers to a person whose principal place of business is in the State of Texas.

HUB Certification Application, cont.

9. Small Business – in accordance with the Government Code 2006.001(2) is identified as:

A legal entity, (including a sole proprietorship, partnership, corporation, limited liability partnership and limited liability corporation);Form as a for profit business;Is independently owned and operatedHas less than 100 employees or less than $1 million in annual gross receipts

This classification is to assist agencies in identifying their useof small businesses.

HUB Certification Application, cont.

10) Bid Informationa) Business Category Description

b) Principal Line of Businessc) Class and Item Codes and Purchasing Districts

http://www.window.state.tx.us/procurement/tools/comm-book/

http://www.window.state.tx.us/procurement/tools/proc_forms/bid_districts/

(01)-Heavy Construction other than Building Construction

(06)-Other Services including Legal Services

(02) -Building Construction, including General Contractors and Operative Builders

(07)-Commodities Wholesale

(03)-Special Trade Construction (08)-Commodities Manufacturers

(04)-Financial and Accounting Services (09)-Medical

(05)-Architectural/Engineering and Surveying Services

HUB Certification Application, cont.

11) Ownership – Information on all individuals and business entities have an ownership interest

NameTitleSSN or EINPercent of OwnershipEthnic Group Code or Gender CodeNumber of Hours Other Employment Other Business Ownership

HUB Certification Application, cont.

12) Business Responsibilities – The name and title of the individual(s) ultimately responsible for the functions identified below

Negotiate and Sign Financial ContractsNegotiate and Sign Bids/ProposalsHiring and Firing of Management Personnel Supervision of Day-to-Day Operations

HUB Certification Application, cont.

13) Minority/Women/Disadvantage Business Certification – Has your business been denied Certification as Minority Business Enterprise or Disadvantaged Business Enterprise

14) Debarment – In accordance with the Texas Administrative Code (TAC), Title 34, Part 1, Chapter 20, Subchapter B, Section 20.20. www.window.state.tx.us/procurement/prog/vendor_performance/debarred

15) Required Documentation to Substantiate HUB Eligibility – needs your support worksheet and documentation.

13) Affidavit of Eligibility – signature needed.

Required Documentation

For All Structures

Proof of U.S. citizenship and ethnicity for the eligible applicant(s).Official Photo Identification for the eligible applicant(s).Proof of Texas Residency for the eligible applicant(s)

Required Documentation, cont.

For All StructuresMost recent Federal Income Tax Return

If the business is new and have filed a Federal Income tax return an Affidavit of Ownership and Business Balance Sheet is required

Employer’s quarterly reports (if applicable)Current Bank signature card or a signed letter form the business’ banking identifying;

1) Business name2) Primary checking account number3) All individuals who are recognized as authorized

signatures on the account

Required Documentation, cont.

For All StructuresThree canceled checks that have cleared the business’ primary checking account number within the last 6 months and were signed by the eligible applicant(s)Current signed business loan agreements and promissory notes (if applicable)Current State of Texas Sales and Use Tax Permit (if applicable)

Required Documentation, cont.

For All StructuresCurrent professional licenses and permits (if applicable)Current signed Business site lease agreement, including amendments and renewals

Required Documentation, cont.

Sole Proprietorship

Assumed Name Certificate of an Unincorporated Business verifying that your business is registered with the County

Required Documentation, cont.

Partnership

Assumed Name Certificate of an Unincorporated Business verifying that your business is registered with the CountyCurrent partnership agreement, including amendmentsProof of purchaser of ownership interest

Required Documentation, cont.

Corporation

Articles of Incorporation, including amendments verifying that your business is registered with the Secretary of StateCertificate of Incorporation, including amendments issued to thebusiness from the Secretary of StateAll stock certificates currently issued to all owners/shareholdersCurrent Stock Issuance/Transfer LedgerProof of purchase of stockSigned minutes of the Board of Directors organization/initial meeting and the Shareholders organizational/initial meetingSigned minutes of all the Board of Directors meetings and all the Shareholders meeting held within the last 12 monthsSigned Corporate Bylaws, including all amendmentsSigned Shareholders Agreement, including all amendments

Required Documentation, cont.

Limited (Liability) Partnership

Articles of Organization, including amendments verifying that your business is registered with the Secretary of StateCertificate of Organization, including amendments issued to the business from the Secretary of StateCurrent partnership agreement, including amendmentsProof of purchaser of ownership interest

Required Documentation, cont.

Limited (Liability) Company

Articles of Organization, including amendmentsSecretary of State business registration verificationCertificate of Organization, including amendments as issued by the Secretary of StateAll membership (stock) interest certificates currently issued to all owners (if applicable)Current Membership (Stock) Issuance/Transfer LedgerProof of purchase of membership (stock) interestSigned Board of Directors (Managers) minutes of organizational/initial meeting and the Members (Shareholders) organizational/initial meetingSigned Board of Directors meeting minutes and all the Shareholders meeting held within the last 12 monthsSigned Company Regulations, including all amendmentsSigned Membership (Shareholders) Agreement, including all amendments (if applicable)

TIPS: Doing Business with State of Texas

Centralized Master Bidders List (CMBL) RegistrationEnsure that the information you provided is currentMarket your BusinessFamiliarize yourself with the purchasing needs of the various state entitiesUpon receiving bids, read each document thoroughlyMaintain a good reputation for the goods and services you provide

CONTACT: Statewide HUB Program Staff

Maya Garcia Ingram Interim Program Manager(512) 475-2414Paul Gibson Certification/Compliance Supervisor(512) 305-9071 Suzette Ballenger Program Supervisor(512) 463-3364Rachel Snell Marketing Coordinator(512) 463-6958HUB HELP Desk (512) 463/5872HUB Toll Free (888) 863-5881HUB Fax (512) 236-6175