HUB Elimination Notice

Notice on Elimination of HUB Office and Statutory Changes

NOTICE REGARDING STATUTORY REPEAL OF HISTORICALLY UNDERUTILIZED BUSINESSES (HUB) AUTHORITIES AND RELATED PROCUREMENT REQUIREMENTS

On July 7, 2026, the General Assembly enacted Session Law 2026-41, thereby repealing several provisions of the North Carolina General Statutes, including but not limited to G.S. 63A-19, G.S. 116D-4, G.S. 143-48.4, G.S. 143-128.2, G.S. 143-128.3, G.S. 143-128.4, and G.S. 143-131(b). These repeals collectively eliminate statutory authority for the Historically Underutilized Business (HUB) Office and remove references to minority business participation requirements across state procurement laws.

In addition to these repeals, Session Law 2026-41 transfers administration of the North Carolina Small Business Enterprise (NCSBE) Program to the Department of Administration, Purchase & Contract (P&C), thereby consolidating procurement oversight functions. The Division of Purchase & Contract issues the following guidance, effective immediately, pursuant to its authority under G.S. 143-48, G.S. 143-49, G.S. 143-52, G.S. 143-53, G.S. 143-54, and G.S. 143-55, which govern procurement administration, competitive bidding, ethics compliance, and delegation of authority to state agencies.

I. PRIOR HUB GOALS AND EXECUTIVE ORDER 25

Executive Order 25 (2017) encouraged state agencies to endeavor to expend ten percent (10%) of available purchasing funds on HUB-certified suppliers. In light of the statutory repeals described herein, this requirement is no longer enforceable.

II. GUIDANCE FOR PROCUREMENTS IN PROCESS

A. Solicitation Drafts Not Yet Approved: State agencies preparing solicitations must remove all references to HUB goals and participation requirements prior to submission for P&C review.

If the request has been submitted to P&C for review and approval, P&C will strike the language.

B. Solicitations Issued but Not Awarded: Agencies shall issue an addendum rescinding HUB-related requirements consistent with procurement modification authority under G.S. 143-129 and G.S. 143-135.8.

C. Vendor-Executed Solicitations Pending State Signature: Prior to contract execution, the contracting agency shall issue a Best and Final Offer (BAFO) amending the solicitation to remove HUB references.

III. EXISTING CONTRACTS

For contracts currently in performance, agencies must execute amendments removing HUB-related reporting, compliance obligations, and participation goals.