|Quoting DesertJets (Reply 3):|
Typically most state and federal definitions of "economically disadvantaged" is based soley on income. Never seen a racial/ethnic dimension added to it, nor do I think there should be.
In Texas, they're called HUB Vendors which stands for Historically Underutilized Business. A business can register as a HUB if it is owned by anyone who is from a non-white ethnic group including Hispanics or is female. State agencies are required by law to do a certain percentage of their business with HUB vendors but some agencies require 100% (or as close to it as possible) of business be done with HUB vendors even if it means higher costs, poor service, and even causes serious safety problems. (A division in the agency I work for was using a HUB for vehicle repair and the business was doing very poor work and nearly cost one employee their life. After that we've been allowed to use whichever repair shop we think is the best.) The agency I work for buys Dells for its computer needs but we can't buy them directly through Dell. We have to go through a middle man because Dell isn't a HUB and the middle man is. It adds about 10%-15% to the price of each computer.
The stupid thing is most HUB vendors are not "historically underutilized" but simply put in the wife's, mother's, or daughter's name and thus is a "HUB Vendor" and get state business.