ADDITIONAL BUSINESS OWNERS JOIN LANDMARK LAWSUIT, ADD NEW DEFENDANT AND EXPANDED CLAIMS, ASKING COURT TO IMMEDIATELY BLOCK TEXAS STATE COMPTROLLER
ADDITIONAL BUSINESS OWNERS JOIN LANDMARK LAWSUIT, ADD NEW DEFENDANT AND EXPANDED CLAIMS, ASKING COURT TO IMMEDIATELY BLOCK TEXAS STATE COMPTROLLER AND STATE AGENCIES FROM DISMANTLING THE HISTORICALLY UNDERUTILIZED BUSINESS (HUB) PROGRAM
Expanded lawsuit challenges both emergency and newly proposed rules proposed by Comptroller; plaintiffs warn of escalating harm to small businesses across Texas
AUSTIN, Texas (March 23, 2026) — A group of businesses owned by women and people of color and a statewide trade association filed a new and updated complaint in Travis County state court, escalating their legal challenge to Acting Texas Comptroller Kelly Hancock’s ongoing efforts to dismantle the State’s Historically Underutilized Business (HUB) program.
The lawsuit expands the claims to include additional plaintiffs, an additional defendant, and a challenge not only to the Comptroller’s December 2025 emergency rule but also to newly proposed regulations issued in March 2026 that attempt to implement the same unlawful sweeping changes permanently. The plaintiffs are seeking immediate court intervention to halt both actions and restore their HUB certifications while the case proceeds.
“This lawsuit is not just about one illegal action — it is about a series of disturbing and unconscionable attempts to override the law,” said Alphonso David, civil rights attorney, President & CEO of the Global Black Economic Forum, and co-lead counsel for the plaintiffs. “The Legislature created the HUB program, and the Comptroller is now trying — not once but at least twice — to dismantle it without authority. First, through an emergency rule, and now through proposed regulations that do the same thing. The courts must step in to protect the rule of law.”
“This updated filing makes clear that the Comptroller did not stop at the initial emergency rule—he doubled down,” said Adam Schuman of Petrillo Klein + Boxer and co-lead counsel for the plaintiffs. “The State cannot sidestep the Legislature and then entrench those actions through a misguided rulemaking process. We are asking the court to stop both efforts before more businesses are irreparably harmed.”
EXPANDED LEGAL CHALLENGE
The updated complaint names Acting Comptroller Kelly Hancock; the Office of the Texas Comptroller of Public Accounts; Adriana Cruz, Executive Director of the Texas Economic Development & Tourism Office; Marc D. Williams, Executive Director of the Texas Department of Transportation; Stephanie Muth, Executive Commissioner of Health and Human Services; and Will Mckerall, Executive Director of the Texas Facilities Commission. The newly added defendant is Cruz, whose office is statutorily charged with serving as a focal point for small and historically underutilized businesses.
This expansion reflects the plaintiffs’ position that the harm is not limited to a single office, but is being carried out across multiple agencies that are disregarding statutory HUB obligations.
The complaint outlines a broader pattern of unlawful conduct, arguing that the defendants:
Exceeded their authority by rewriting the statutory definition of HUB eligibility
Violated the Texas Administrative Procedure Act by bypassing required rulemaking processes, including public notice and comment
Deprived businesses of due process by canceling certifications without adequate notice or opportunity to respond
Undermined the Texas Constitution’s separation of powers by acting in place of the Legislature and courts
The filing further alleges that multiple state agencies have already begun disregarding statutory HUB requirements. EDT has stopped providing statutorily required assistance to HUB certified businesses owned by women and people of color, while TxDOT, HHSC, and TFC have stopped complying with HUB-related reporting, planning, good-faith, forum, and subcontracting obligations required by law.
A PROGRAM EFFECTIVELY GUTTED
The Comptroller’s actions reduced the number of HUB-certified businesses in Texas from approximately 16,000 to about 500—drastically shrinking access to billions in state contracting opportunities and fundamentally altering the purpose of the program.
The impact has been immediate and severe. Businesses report contracts canceled or negotiations terminated without warning, the loss of significant expected revenue, and diminished ability to compete for future state work. For many, the loss of HUB certification threatens long-standing client relationships and raises the risk of layoffs or closure.
The HUB program has operated for decades as intended by the Legislature—not to guarantee contracts, but to ensure fair access to compete. The Comptroller’s actions upend that framework entirely.
REQUEST FOR IMMEDIATE COURT ACTION
Plaintiffs are asking the court to:
Issue a temporary injunction blocking both the emergency and proposed rules
Reinstate HUB certifications for affected businesses during litigation
Require state agencies to comply with existing HUB law
Ultimately, permanently restore the HUB program as enacted by the Legislature
“The law is clear, and the harm is ongoing,” David added. “Every day these rules remain in effect, more businesses are pushed out of opportunity and closer to shutting their doors.”
EXPANDED GROUP OF TEXAS BUSINESS OWNER PLAINTIFFS
The updated complaint also expands the group of plaintiffs, adding two Dallas-based businesses that help show how widely the Comptroller’s actions are reaching across industries.
New plaintiff Globe Express Trucking Inc., a mail-delivery business founded in 2020 by Marie-Pascale Ruberandinda, held HUB certification for three years before being decertified in January. The company had been preparing bids for HUB-related opportunities with TxDOT and the Texas Department of Criminal Justice totaling more than $1 million.
New plaintiff Kirstins Care LLC, founded in 2014 by Kirstin Green, operates a 24-hour childcare center and provides staffed childcare services for employers, conferences, and events across Texas. Kirstins Care was in the final stages of negotiating a five-year contract with Parkland Health worth millions when those negotiations were terminated after the emergency rule.
The full plaintiff group now includes Globe Express Trucking Inc.; Kirstins Care LLC; Ipsum General Contractors, LLC; Mpulse Healthcare & Technology, LLC; Williams Professional Water Restoration Service LLC; Houston WiFi, Ltd. Co. d/b/a Houston Construction Services; and NAMC, Inc. Greater Houston Chapter.
Together, the plaintiffs reflect the breadth of the HUB program itself: construction firms, restoration specialists, healthcare and technology suppliers, childcare providers, transportation businesses, and a trade association representing more than 150 minority- and women-owned contractors. This growing list of plaintiffs underscores a simple point: the damage is spreading, and it is not confined to one sector or one region of Texas.
HEARING DATE ANNOUNCED
The case, Globe Express Trucking Inc., et al. v. Kelly Hancock, Acting Texas Comptroller of Public Accounts, et al. (No. D-1-GN-26-001941), is scheduled to be heard in Travis County District Court (1700 Guadalupe St, Austin, TX 78701) on Monday, March 30, 2026, at 9:00 AM CT.
The plaintiffs now include an expanded group of minority- and women-owned Texas businesses and a nonprofit trade association representing minority contractors. Together, they hold millions of dollars in HUB-related contracts and have relied on the program for years to compete for state work.
The Global Black Economic Forum, Freedom Economy and the American Pride Rises are supporting the litigation alongside a coalition of business and civil rights organizations.
A press conference will be held in the Senate Press Room at the Texas State Capitol in Austin on Monday, March 2, 2026, at 1:00 PM CT. A livestream link will be available.
Media Contact:
Ellisa Brown
The Shearer Group
Rob Shearer
The Shearer Group
214-882-5787 cell
Michael Franklin
