Ruling by the Fifteenth Court of Appeals clears the way for minority-and women-owned businesses to challenge unauthorized Comptroller regulations in Travis County District Court.
AUSTIN, Texas — Texas State Senator Royce West (D-Dallas) released the following statement recently, following a major procedural victory in the litigation surrounding the state’s Historically Underutilized Business (HUB) program.
The Fifteenth Court of Appeals rejected the State’s motion to dismiss the lawsuit, allowing affected business owners and contracting associations to move forward with their legal challenge in Travis County District Court.
The State had sought to dismiss the case after the Comptroller replaced initial emergency rules with final regulations. However, the appellate court ruled that the underlying challenged HUB regulations remained substantively unchanged, allowing the lawsuit to proceed.
“This ruling reinforces a fundamental principle of governance: executive agencies cannot arbitrarily rewrite statutory programs enacted by the Texas Legislature,” said Sen. West. “The HUB program was established by law to ensure fair access, economic opportunity, and equitable competition for minority- and women-owned businesses across Texas. When administrative regulations bypass legislative intent and strip thousands of viable businesses of their certification without statutory authority, the courts must intervene.
“I stand alongside the business owners, contractors, and economic advocacy leaders fighting to preserve the integrity of Texas law. We look forward to seeing this case proceed on its merits in District Court to ensure due process, legislative oversight, and economic fairness prevail.”
The lawsuit, supported by a broad coalition, including the Global Black Economic Forum, trade associations, and civil rights advocates, challenges administrative actions that removed
thousands of minority- and women-owned businesses from the state’s certified contractor directory.
With the appellate court’s denial of the State’s motion to dismiss, plaintiffs will now return to the Travis County District Court to argue the merits of the case.
For decades, Sen. West has been a staunch advocate for economic inclusion, small business development, and legislative transparency in Texas public procurement.
