Texas Attorney General Ken Paxton has expanded statewide enforcement efforts across transportation and supply chain-related industries through separate actions targeting commercial driver training schools and corporate supplier diversity programs. This move comes as Texas and federal officials increase scrutiny of issues ranging from commercial driver qualification standards and English-language proficiency enforcement to Diversity, Equity and Inclusion practices tied to supply chain contracting.
The attorney general's office announced that it sent a warning letter to CVS Health regarding the company's supplier diversity practices tied to procurement and supply chain operations. According to the attorney general's office, CVS reserves a portion of its contracts for suppliers meeting certain demographic criteria, including minority-owned, women-owned and LGBTQ-owned businesses.
Paxton's office said such programs 'may violate state and federal civil rights laws' and could expose the company to liability under the Texas Health Care Program Fraud Prevention Act because CVS participates as a Medicaid pharmacy provider. The warning letter gives CVS 14 days to inform the state about steps it has taken to comply with state and federal anti-discrimination laws.
CVS Health operates a supply chain network with more than 22 distribution centers and a fleet of 2,500 delivery vehicles across the U.S. supporting more than 9,000 retail stores, pharmacy services and e-commerce platforms.
A 2016 report indicated CVS Health's supplier diversity initiatives supported more than 21,145 jobs within its supply chain at that time. This highlights the significant impact of such programs on employment opportunities for underrepresented groups.
The CVS action follows a separate statewide investigation launched April 28 into several truck driving schools amid allegations that some commercial drivers may be obtaining commercial driver's licenses without meeting federal safety requirements, including English-language proficiency standards.
Federal regulations require CDL holders to 'read and speak the English language sufficiently to converse with the general public, understand highway traffic signs and signals in English, respond to official inquiries, and make entries on reports and records,' according to Paxton's office. The investigation targets several schools operating in major Texas freight markets, including El Paso, Odessa, San Antonio, Garland and Arlington.
State investigators allege some schools may have disregarded those requirements by advertising programs to non-English speakers, offering accelerated training timelines and falsely claiming certification status. This raises concerns about the fairness and accessibility of these training programs for all individuals.
The increased scrutiny highlights the importance of adhering to federal regulations and ensuring equal access to training programs for all individuals. It also underscores the need for transparency and accountability in the trucking industry, particularly when it comes to English-language proficiency standards.
The increased scrutiny highlights the importance of adhering to federal regulations and ensuring equal access to training programs for all individuals.
