1. State Contracting and the HUB Program

2. Be HUB Certified- Be Ready for Opportunity The goal of the Statewide HUB Program is : to actively involve HUBs in the Texas procurement process and to ensure they receive a fair share of state business. HUB certification is an important step for minority- and woman-owned businesses to introduce their products and services to the state of Texas. In fiscal 2008, Texas awarded more than $1.85 billion in contracts — including more than $743 million in subcontracts — to companies certified as HUBs. In this presentation, we’ll take a look at the Statewide HUB Program and discuss who is eligible and how to become certified.

3. Give Your Business the Advantage of HUB Certification HUB certification is free of charge and good for up to four years. Benefits of HUB certification include increased exposure to state agencies and universities, which are constantly looking to work with businesses certified as HUBs. Only certified HUBs are listed in the online Texas HUB Directory, and state entities can directly contact a business to buy goods and services for purchases of $5,000 or less. More than $41 million of these small-dollar purchases were made in 2007. The Texas HUB Directory is also searched by vendors looking for certified HUBs to include in their subcontracting plans for projects of $100,000 or more. Certified HUBs registered with the state’s Centralized Master Bidders List - the CMBL - are sought by state purchasers looking for potential bidders. State entities are required to search the CMBL for most purchases, and HUB certification is an important search criteria because of purchasers’ efforts to include HUBs in the bidding process.

4. HUB Eligibility- A Respected Standard Criteria I- Ethnicity, U.S. Citizenship and Texas Residency The following individuals are eligible HUB owners: Asian Pacific Americans Including 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. Black Americans Including persons having origins in any of the black racial groups of Africa.

5. HUB Eligibility- A Respected Standard Criteria I- Ethnicity, U.S. Citizenship and Texas Residency Hispanic Americans Including persons of Mexican, Puerto Rican, Cuban, Central or South American or other Spanish or Portuguese culture or origin, regardless of race. Native Americans Including persons who are American Indians, Eskimos, Aleuts or Native Hawaiians. American Women Which includes all women of any ethnicity not specified above. Eligible HUB owners also must be citizens of the United States and Texas residents. Resident Aliens are not eligible for HUB certification.

6. HUB Eligibility- A Respected Standard Criteria II- Ownership The following types of for-profit business entities are eligible for HUB certification if at least 51 percent of the assets and interest of all classes of stock and equitable securities are owned by one or more persons who are eligible HUB owners: Sole Proprietorships Partnerships Corporations Joint Ventures Limited Liability Partnerships, and Limited Liability Companies Sole proprietorships must be 100 percent owned and controlled by an eligible HUB owner. In addition, each entity within a joint venture is required to be HUB certified. Non-profit organizations are not eligible for HUB certification.

7. HUB Eligibility- A Respected Standard Criteria III- Active Participation, Control, and Proportionate Interest Eligible HUB owners must actively participate in the daily operations of the business at a level that is comparable to their ownership. Eligible HUB owners must be able to make independent business decisions - such as administrative duties, personnel management, negotiation and execution of contracts and financial transactions - that guide the future and destiny of the business. Absentee or titular ownership - owners who do not actively control the business - is not consistent with HUB eligibility standards.

8. HUB Eligibility- A Respected Standard Criteria IV- Principal Place Of Business A HUB’s principal place of business must be in Texas. The business must be registered with the appropriate authority in Texas. -Corporations, limited liability partnerships and limited liability companies must be registered with the Texas Secretary of State. -Sole proprietorships and general partnerships must be registered with the county in which they are located.

9. Certification Agreements The Statewide HUB Program has established agreements with certain local governments and non-profit organizations in Texas that certify businesses meeting standards as defined by the Statewide HUB Program. Minority- and woman-owned businesses certified with one of these entities may receive Statewide HUB certification if the certifying entity submits the business’ information to the Statewide HUB Program for approval and inclusion in the Texas HUB Directory.

10. Certification agreements have been established with the following entities: City of Austin City of Houston Central and South Texas Minority Business Council Dallas/Fort Worth Minority Business Council Houston Minority Business Council South Central Texas Regional Certification Agency Texas Department of Transportation Women’s Business Council-Southwest, and Women’s Business Enterprise Alliance

11. Put the Statewide HUB program to work for you! The HUB Certification Application requires general business information. The application must be completed, signed by the eligible applicant or applicants and notarized. Supporting documentation is required to substantiate business structure and HUB eligibility. Upon approval, the certified vendor will receive a HUB certification package, which includes tools and resources for doing business with the state.

12. HUB certification is a smart choice. Texas is rich with opportunities for your business, and we’re committed to making the Statewide HUB Program a success for you and all its members. For more Information, visit: www.Texas4HUBs.org You can reach a program representative by calling us toll-free at (888) 863-5881 or by sending an e- mail to Texas4HUBs@cpa.state.tx.us. Thank you for your interest in the Statewide HUB Program.