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Proceduree 3-15: Historically Underutilized Business Program

"Historically Underutilized Business" means a business enterprise, of a category defined below, with its principal place of business in Texas and that does not exceed specified size standards, that is formed for the purpose of making a profit.The business enterprise must be majority-owned by one or more persons who: (a) are members of Economically Disadvantaged Groups who suffer the effects of discriminatory practices due to their identification as members of such groups, and (b) have a proportionate interest and demonstrate active participation in the control, operation, and management of the enterprise's affairs.

"Economically Disadvantaged Groups" mean and include:

  1. Black Americans - includes persons having origins in any of the Black racial groups of Africa;
  2. Hispanic Americans - includes persons of Mexican, Puerto Rican, Cuban, Central or South American, or other Spanish or Portuguese culture or origin, regardless of race;
  3. American Women - includes all women of any ethnicity except American Women specified in (a), (b), (d), and (e) of this subparagraph;
  4. Asian Pacific Americans - includes persons whose origins are in 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; and
  5. Native Americans - includes persons who are American Indians, Eskimos, Aleuts, or Native Hawaiians.

"Categories of Historically Underutilized Business Enterprises" mean and include:

  1. A corporation 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 above;
  2. A sole proprietorship that is 100% owned by a person described above;
  3. A partnership in which at least 51% of the assets and interests in the partnership are owned by one or more persons described above;
  4. A joint venture in which each entity in the joint venture is an historically underutilized business;
  5. A supplier contract between an historically underutilized business and a prime contractor under which the historically underutilized business is directly involved in the manufacture or distribution of the supplies or materials or otherwise warehouses and ships the supplies; or
  6. A business, other than described in subparagraphs (a) through (e) above, which is a legally recognized business organization under the laws of the State of Texas, provided that at least 51% of the assets and interest and 51% of any classes of stock and equitable securities are owned by one or more persons described above.


Procedure #:


Procedure Name:

 Historically Underutilized Business Program



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Effective Date:


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