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The Texas Comptroller of Public Accounts has adopted amended Veteran Heroes United in Business (VetHUB) program rules at 34 Texas Administrative Code (TAC) Sections 281-298. The new rules take effect May 12.
Through the regular rulemaking process, the Comptroller's office fully considered all public comments received regarding the proposed program changes. The rule changes are similar to the emergency rules in effect since Dec. 2, 2025. Included in the amended rules are substantive changes to 34 TAC 20.285 revising the subcontracting plan methods. No comments were received about this section.
The subcontracting plan has been simplified and narrowed to two methods: self-performing or good faith effort. Accounting for the narrower focus of the VetHUB program, prime contractors that will subcontract any work must now notify two certified vendors of each subcontracting opportunity. The requirement to notify trade/development centers has been removed. The seven business days notification and response period for potential subcontractors is unchanged. For self-performing vendors, the subcontracting plan can be completed on one page.
Under the amended 20.285.2(b)(1), state agency contract developers and agency coordinators should identify the probability of subcontracting opportunities for historically underutilized businesses for contracts with an expected value of $100,000 or more. If no certified VetHUBs can be identified to fulfill subcontracting opportunities — rendering the good faith effort ineffective — the agency should document that and not require a subcontracting plan.
The new subcontracting plan form has been posted to the Comptroller’s website and may be downloaded by agencies preparing upcoming solicitations. Agencies may, but are not required to, amend existing solicitations closing on or after May 12 to incorporate the new subcontracting plan.
The Texas Procurement and Contract Management Guide will be updated to reflect the rule changes in version 4.1. Questions about the VetHUB Program may be emailed to VetHUBProgram@cpa.texas.gov.
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