[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 3953 Introduced in Senate (IS)]








109th CONGRESS
  2d Session
                                S. 3953

     To foster the development of minority-owned small businesses.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 27, 2006

   Mr. Kerry introduced the following bill; which was read twice and 
    referred to the Committee on Small Business and Entrepreneurship

_______________________________________________________________________

                                 A BILL


 
     To foster the development of minority-owned small businesses.

    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 
Development Act of 2006''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) in 2005, the African American unemployment rate was 9.5 
        percent and the Hispanic American unemployment rate was 6 
        percent, well above the national average of 4.7 percent;
            (2) Hispanic Americans represent 12.5 percent of the United 
        States population and approximately 6 percent of all United 
        States businesses;
            (3) African Americans account for 12.3 percent of the 
        population and only 4 percent of all United States businesses;
            (4) Native Americans account for approximately 1 percent of 
        the 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) minority-owned businesses are a key ingredient for 
        economic development in the community, an effective tool for 
        creating lasting and higher-paying jobs, and a source of wealth 
        in the minority community; and
            (7) between 1987 and 1997, revenue from minority-owned 
        firms 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 terms ``Administration'' and ``Administrator'' mean 
        the Small Business Administration and the Administrator 
        thereof, respectively;
            (2) the term ``eligible association or organization'' means 
        an association or organization that--
                    (A) is--
                            (i) a national minority business 
                        association organized in accordance with 
                        section 501(c)(6) of the Internal Revenue Code 
                        of 1986; or
                            (ii) a foundation of national minority 
                        business associations organized in accordance 
                        with section 501(c)(3) of the Internal Revenue 
                        Code of 1986;
                    (B) has a well established national network of 
                local chapters, or a proven national membership; and
                    (C) has been in existence for at least the 10-year 
                period before the date of awarding a grant under 
                section 6;
            (3) the term ``eligible educational institution'' means an 
        institution that is--
                    (A) a public or private institution of higher 
                education (including any land-grant college or 
                university, any college or school of business, 
                engineering, commerce, or agriculture, or community 
                college or junior college) or any entity formed by 2 or 
                more institutions of higher education; and
                    (B) a--
                            (i) historically Black college;
                            (ii) Hispanic-serving institution; or
                            (iii) tribal college;
            (4) the term ``historically Black college'' means a part B 
        institution, as that term is defined in section 322 of the 
        Higher Education Act of 1965 (20 U.S.C. 1061);
            (5) the term ``Hispanic-serving institution'' has the 
        meaning given that term in section 502 of the Higher Education 
        Act of 1965 (20 U.S.C. 1101a);
            (6) the term ``institution of higher education'' has the 
        meaning given that term in section 101 of the Higher Education 
        Act of 1965 (20 U.S.C. 1101)
            (7) the term ``small business concern'' has the meaning 
        given that term in section 3 of the Small Business Act (15 
        U.S.C. 532);
            (8) the term ``small business development center'' has the 
        meaning given that term in section 21 of the Small Business Act 
        (15 U.S.C. 648); and
            (9) the term ``tribal college'' has the same meaning as the 
        term ``tribally controlled college or university'' under 
        section 2(a)(4) of the Tribally Controlled Community College 
        Assistance Act of 1978 (25 U.S.C. 1801(a)(4)).

SEC. 4. MINORITY SMALL BUSINESS DEVELOPMENT.

    (a) In General.--The Small Business Act (15 U.S.C. 631 et seq.) is 
amended--
            (1) by redesignating section 37 as section 38; and
            (2) by inserting after section 36 the following:

``SEC. 37. MINORITY SMALL BUSINESS DEVELOPMENT.

    ``(a) Office of Minority Small Business Development.--There is 
established in the Administration an Office of Minority Small Business 
Development, which shall be administered by the Associate Administrator 
for Minority Small Business Development appointed under section 4(b)(1) 
(in this section referred to as the `Associate Administrator').
    ``(b) Associate Administrator for Minority Small Business 
Development.--The Associate Administrator shall--
            ``(1) be--
                    ``(A) an appointee in the Senior Executive Service 
                who is a career appointee; or
                    ``(B) an employee in the competitive service;
            ``(2) be responsible for the formulation, execution, and 
        promotion of policies and programs of the Administration that 
        provide assistance to small business concerns owned and 
        controlled by minorities;
            ``(3) act as an ombudsman for full consideration of 
        minorities in all programs of the Administration (including 
        those under section 7(j) and 8(a));
            ``(4) work with the Associate Deputy Administrator for 
        Capital Access of the Administration to increase the proportion 
        of loans and loan dollars, and investments and investment 
        dollars, going to minorities through the finance programs under 
        this Act and the Small Business Investment Act of 1958 
        (including subsections (a), (b), and (m) of section 7 of this 
        Act and the programs under title V and parts A and B of title 
        III of the Small Business Investment Act of 1958);
            ``(5) work with the Associate Deputy Administrator for 
        Entrepreneurial Development of the Administration to increase 
        the proportion of counseling and training that goes to 
        minorities through the entrepreneurial development programs of 
        the Administration;
            ``(6) work with the Associate Deputy Administrator for 
        Government Contracting and Minority Enterprise Development of 
        the Administration to increase the proportion of contracts, 
        including through the Small Business Innovation Research 
        Program and the Small Business Technology Transfer Program, to 
        minorities;
            ``(7) work with the partners of the Administration, trade 
        associations, and business groups to identify and carry out 
        policies and procedures to more effectively market the 
        resources of the Administration to minorities;
            ``(8) work with the Office of Field Operations of the 
        Administration to ensure that district offices and regional 
        offices have adequate staff, funding, and other resources to 
        market the programs of the Administration to meet the 
        objectives described in paragraphs (4) through (7); and
            ``(9) report to and be responsible directly to the 
        Administrator.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            ``(1) $5,000,000 for fiscal year 2007;
            ``(2) $5,000,000 for fiscal year 2008; and
            ``(3) $5,000,000 for fiscal year 2009.''.
    (b) Conforming Amendments.--Section 4(b)(1) of the Small Business 
Act (15 U.S.C. 633(b)(1)) is amended in the sixth sentence, by striking 
``Minority Small Business and Capital Ownership Development'' and all 
that follows through the end of the sentence and inserting ``Minority 
Small Business Development.''.

SEC. 5. MINORITY ENTREPRENEURSHIP AND INNOVATION PILOT PROGRAM OF 2006.

    (a) In General.--The Administrator may make grants to eligible 
educational institutions--
            (1) to assist in establishing an entrepreneurship 
        curriculum for undergraduate or graduate studies; and
            (2) for placement of a small business development center on 
        the physical campus of the institution.
    (b) Use of Funds.--
            (1) Curriculum requirement.--
                    (A) In general.--An eligible educational 
                institution receiving a grant under this section shall 
                develop a curriculum that includes training in various 
                skill sets needed by successful entrepreneurs, 
                including--
                            (i) business management and marketing, 
                        financial management and accounting, market 
                        analysis and competitive analysis, and 
                        innovation and strategic planning; and
                            (ii) additional entrepreneurial skill sets 
                        specific to the needs of the student population 
                        and the surrounding community, as determined by 
                        the institution.
                    (B) Focus.--The focus of the curriculum developed 
                under this paragraph shall be to help students in non-
                business majors develop the tools necessary to use 
                their area of expertise as entrepreneurs.
            (2) Small business development center requirement.--Each 
        eligible educational institution receiving a grant under this 
        section shall open a small business development center that--
                    (A) performs studies, research, and counseling 
                concerning the managing, financing, and operation of 
                small business concerns;
                    (B) performs management training and provides 
                technical assistance regarding small business concern 
                participation in international markets, export 
                promotion and technology transfer, and the delivery or 
                distribution of such services and information;
                    (C) offers referral services for entrepreneurs and 
                small business concerns to business development, 
                financing, and legal experts; and
                    (D) 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.
    (c) Grant Awards.--
            (1) In general.--The Administrator may not award a grant 
        under this section to a single eligible educational 
        institution--
                    (A) in excess of $1,000,000 in any fiscal year; or
                    (B) for a term of more than 2 years.
            (2) Limitation on use of funds.--Funds made available under 
        this section may not be used for--
                    (A) any purpose other than those associated with 
                the direct costs incurred by the eligible educational 
                institution to--
                            (i) develop and implement the curriculum 
                        described in subsection (b)(1); or
                            (ii) organize and operate a small business 
                        development center, as described in subsection 
                        (b)(2); or
                    (B) building expenses, administrative travel 
                budgets, or other expenses not directly related to the 
                costs described in subparagraph (A).
    (d) Matching Not Required.--Subparagraphs (A) and (B) of section 
21(a)(4) of the Small Business Act (15 U.S.C. 648(a)(4)) shall not 
apply to a grant made under this section.
    (e) Report.--
            (1) In general.--Not later than November 1 of each year in 
        which funds are made available for grants under this section, 
        the Associate Administrator of Entrepreneurial Development of 
        the 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 success of the program under this section during 
        the preceding fiscal year.
            (2) Contents.--Each report under paragraph (1) shall 
        include--
                    (A) a description of each entrepreneurship program 
                developed with grant funds, the date of the award, and 
                the number of participants in each such program;
                    (B) the number of small business assisted through 
                the small business development center with grant funds; 
                and
                    (C) data regarding the economic impact of the small 
                business development center counseling provided with 
                grant funds.
    (f) Authorization of Appropriation.--There are authorized to be 
appropriated to carry out this section $24,000,000 for each of fiscal 
years 2007 through 2009, to remain available until expended.
    (g) 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.

SEC. 6. MINORITY ACCESS TO INFORMATION DISTANCE LEARNING PILOT PROGRAM 
              OF 2006.

    (a) In General.--The Administrator may make grants to eligible 
associations and organizations to--
            (1) assist in establishing the technical capacity to 
        provide online or distance learning for businesses seeking to 
        contract with the Federal Government;
            (2) develop curriculum for seminars that will provide 
        businesses with the technical expertise to contract with the 
        Federal government; and
            (3) provide training and technical expertise through 
        distance learning at low cost, or no cost, to participant 
        business owners and other interested parties.
    (b) Use of Funds.--An eligible association or organization 
receiving a grant under this section shall develop a curriculum that 
includes training in various areas needed by the owners of small 
business concerns to successfully contract with the Federal Government, 
which may include training in accounting, marketing to the Federal 
Government, applying for Federal certifications, use of offices of 
small and disadvantaged businesses, procurement conferences, the scope 
of Federal procurement contracts, and General Services Administration 
schedules.
    (c) Grant Awards.--
            (1) In general.--The Administrator may not award a grant 
        under this section to a single eligible association or 
        organization--
                    (A) in excess of $250,000 in any fiscal year; or
                    (B) for a term of more than 2 years.
            (2) Limitation on use of funds.--Funds made available under 
        this section may not be used--
                    (A) for any purpose other than those associated 
                with the direct costs incurred by the eligible 
                association or organization to develop the curriculum 
                described in subsection (b); or
                    (B) for building expenses, administrative travel 
                budgets, or other expenses not directly related to the 
                costs described in subparagraph (A).
    (d) Matching Not Required.--Subparagraphs (A) and (B) of section 
21(a)(4) of the Small Business Act (15 U.S.C. 648(a)(4)) shall not 
apply to a grant made under this section.
    (e) Report.--
            (1) In general.--Not later than November 1 of each year, 
        the Associate Administrator of Entrepreneurial Development of 
        the 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 success of the program under this section during 
        the preceding fiscal year.
            (2) Contents.--Each report under paragraph (1) shall 
        include--
                    (A) a description of each distance learning program 
                developed with grant funds under this section, the date 
                of the award, and the number of participants in each 
                program; and
                    (B) data regarding the economic impact of the 
                distance learning technical assistance provided with 
                such grant funds.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $4,000,000 for each of fiscal 
years 2007 through 2009, to remain available until expended.
    (g) 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.

SEC. 7. EXTENSION OF SOCIALLY AND ECONOMICALLY DISADVANTAGED BUSINESS 
              PROGRAM.

    (a) In General.--Section 7102(c) of the Federal Acquisition 
Streamlining Act of 1994 (15 U.S.C. 644 note) is amended by striking 
``September 30, 2003'' and inserting ``September 30, 2009''.
    (b) Effective Date.--The amendment made by this section shall take 
effect 30 days after the date of enactment of this Act.
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