[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5878 Introduced in House (IH)]








109th CONGRESS
  2d Session
                                H. R. 5878

    To establish a 2-year pilot program to develop a curriculum at 
   historically Black colleges and universities, Tribal colleges and 
       universities, and Hispanic-serving institutions to foster 
   entrepreneurship and business development in underserved minority 
                              communities.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 25, 2006

     Mr. Cummings (for himself, Mr. Thompson of Mississippi, Mrs. 
Napolitano, Mr. Bishop of Georgia, Mr. Wynn, Ms. Wasserman Schultz, Mr. 
 Scott of Virginia, Mr. Owens, Mr. Cardin, Mr. Al Green of Texas, Mr. 
Meeks of New York, Mr. Rush, Ms. Millender-McDonald, Mr. Grijalva, Mr. 
 Conyers, Mr. Butterfield, Mr. Boyd, Mr. Ross, Mr. Davis of Illinois, 
Mrs. Jones of Ohio, Ms. Linda T. Sanchez of California, Ms. Norton, Ms. 
Kilpatrick of Michigan, Mr. Baca, Mr. Scott of Georgia, Mr. Van Hollen, 
    Ms. Solis, Mr. Payne, Ms. Lee, Mr. Ruppersberger, Mr. Farr, Mr. 
  Clyburn, Mr. Clay, and Mr. Cleaver) introduced the following bill; 
which was referred to the Committee on Education and the Workforce, and 
  in addition to the Committee on Small Business, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
    To establish a 2-year pilot program to develop a curriculum at 
   historically Black colleges and universities, Tribal colleges and 
       universities, and Hispanic-serving institutions to foster 
   entrepreneurship and business development in underserved minority 
                              communities.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Minority Entrepreneurship and 
Innovation Pilot Program of 2006''.

SEC. 2. FINDINGS.

    Congress finds--
            (1) the 2005 ``State of Black America Report'' issued by 
        the National Urban League finds a significant level of 
        ``equality gaps'' between African Americans and Whites, with 
        the median net worth of an African-American family is $6,100, 
        compared with $67,000 for a white family;
            (2) the American Community Survey of Median Income 
        conducted by the Bureau of the Census in 2004 indicates that--
                    (A) African Americans have a median household 
                income that is 62 percent of that of Whites;
                    (B) Native Americans have a median household income 
                that is 65 percent of that of Whites; and
                    (C) Hispanic Americans have a median household 
                income that is 74 percent of that of Whites;
            (3) in 2005, the African American unemployment rate was 9.5 
        percent and the Hispanic unemployment rate was 6 percent, well 
        above the national average of 4.7 percent;
            (4) African Americans account for 12.3 percent of the 
        United States population and only 4 percent of all United 
        States businesses, Hispanic Americans represent 12.5 percent of 
        the United States population and approximately 6 percent of all 
        United States businesses, Native Americans account for 
        approximately 1 percent of the United States population and .9 
        percent of all United States businesses;
            (5) entrepreneurship has proven to be an effective tool for 
        economic growth and viability of all communities;
            (6) fostering minority owned businesses is a key ingredient 
        for economic development in the minority community, an 
        effective tool for creating lasting and higher-paying jobs, and 
        a source of creating wealth in the minority community; and
            (7) between 1987 and 1997, revenue from minority owned 
        businesses rose by 22.5 percent, an increase equivalent to an 
        annual growth rate of 10 percent, and employment opportunities 
        within minority owned firms increased by 23 percent.

SEC. 3. DEFINITIONS.

    In this Act--
            (1) the term ``Administrator'' means the Administrator of 
        the Small Business Administration;
            (2) the term ``Hispanic-serving institutions'' means the 
        institutions that are within the definition given the term 
        ``Hispanic-serving institution'' in section 502 of the Higher 
        Education Act of 1965 (20 U.S.C. 1101a);
            (3) the term ``historically Black colleges and 
        universities'' means the institutions that are within the 
        definition given the term ``part B institution'' in section 322 
        of the Higher Education Act of 1965 (20 U.S.C. 1061);
            (4) the term ``small business concern'' has the same 
        meaning as in section 3 of the Small Business Act (15 U.S.C. 
        632);
            (5) the term ``small business development center'' has the 
        same meaning as in section 21 of the Small Business Act (15 
        U.S.C. 648); and
            (6) the term ``Tribal colleges and universities'' means the 
        institutions that are within the definition given the term 
        ``Tribal College or University'' in section 316(b)(3) of the 
        Higher Education Act of 1965 (20 U.S.C. 1059c)

SEC. 4. MINORITY ENTREPRENEURSHIP AND INNOVATION GRANTS.

    (a) In General.--The Administrator shall make grants to 
historically Black colleges and universities, Tribal colleges and 
universities, and Hispanic-serving institutions, or to any entity 
formed by a combination of such institutions--
            (1) to assist in establishing an entrepreneurship 
        curriculum for undergraduate or graduate studies; and
            (2) for placement of small business development centers on 
        the physical campus of the institution.
    (b) Curriculum Requirement.--An institution of higher education 
receiving a grant under this section shall develop a curriculum that 
includes training in various skill sets needed by successful 
entrepreneurs, including--
            (1) business management and marketing, financial management 
        and accounting, market analysis and competitive analysis, 
        innovation and strategic planning; and
            (2) additional entrepreneurial skill sets specific to the 
        needs of the student population and the surrounding community, 
        as determined by the institution.
    (c) Small Business Development Center Requirement.--Each 
institution receiving a grant under this section shall open a small 
business development center that--
            (1) performs studies, research, and counseling concerning 
        the management, financing, and operation of small business 
        concerns;
            (2) performs management training and technical assistance 
        regarding the participation of small business concerns in 
        international markets, export promotion and technology 
        transfer, and the delivery or distribution of such services and 
        information;
            (3) offers referral services for entrepreneurs and small 
        business concerns to business development, financing, and legal 
        experts; and
            (4) promotes market-specific innovation, niche marketing, 
        capacity building, international trade, and strategic planning 
        as keys to long-term growth for its small business concern and 
        entrepreneur clients.
    (d) Grant Limitations.--A grant under this subsection--
            (1) may not exceed $1,000,000 per fiscal year for any 1 
        institution of higher education;
            (2) may not be used for any purpose other than those 
        associated with the direct costs incurred to develop and 
        implement a curriculum that fosters entrepreneurship and the 
        costs incurred to organize and run a small business development 
        center on the grounds of the institution; and
            (3) may not be used for building expenses, administrative 
        travel budgets, or other expenses not directly related to the 
        implementation of the curriculum or activities authorized by 
        this Act.
    (e) Exception From Small Business Act Requirement.--Subparagraphs 
(A) and (B) of section 21(a)(4) of the Small Business Act (15 U.S.C. 
648(a)(4)) do not apply to assistance made available under this 
section.
    (f) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $24,000,000, to remain available 
until expended, for each of fiscal years 2007 and 2008.
    (g) Report.--Not later than November 1 of each year, the Associate 
Administrator of Entrepreneurial Development of the Small Business 
Administration shall submit to the Committee on Small Business and 
Entrepreneurship of the Senate and the Committee on Small Business of 
the House of Representatives, a report evaluating the award and use of 
grants under this section during the preceding fiscal year, which shall 
include--
            (1) a description of each entrepreneurship program 
        developed with grant funds, the date of the award of such 
        grant, and the number of participants in each such program;
            (2) the number of small business concerns assisted by each 
        small business development center established with a grant 
        under this section; and
            (3) data regarding the economic impact of the small 
        business development center counseling provided under a grant 
        under this section.
    (h) Limitation on Use of Other Funds.--The Administrator shall 
carry out this section only with amounts appropriated in advance 
specifically to carry out this section.
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