I 112th CONGRESS 1st Session H. R. 1902 IN THE HOUSE OF REPRESENTATIVES May 13, 2011 Mr. Rush (for himself, Mr. Cleaver, Mr. Clay, Ms. Richardson, and Ms. Clarke of New York) introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on Oversight and Government Reform, 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 in the Department of Commerce the Minority Business Development Program to provide qualified minority businesses with technical assistance and contracting opportunities, and for other purposes.

1.

Short title

This Act may be cited as the Minority Business Development Improvements Act of 2011.

2.

Minority Business Development Program

The Director of the Minority Business Development Agency shall establish the Minority Business Development Program (hereinafter in this Act referred to as the Program) to assist qualified minority businesses. The Program shall provide to such businesses the following: (1)Technical assistance. (2)Contract procurement assistance.

3.

Qualified minority business

(a)

Certification

For purposes of the Program, the Director may certify as a qualified minority business any entity that satisfies each of the following: (1)Not less than 51 percent of the entity is directly and unconditionally owned or controlled by historically disadvantaged individuals. (2)Each officer or other individual who exercises control over the regular operations of the entity is a historically disadvantaged individual. (3)The net worth of each principal of the entity is not greater than $2,000,000. (The equity of a disadvantaged owner in a primary personal residence shall be considered in this calculation.) (4)The principal place of business of the entity is in the United States. (5)Each principal of the entity maintains good character in the determination of the Director. (6)The entity engages in competitive and bona fide commercial business operations in not less than one sector of industry that has a North American Industry Classification System code. (7)The entity submits reports to the Director at such time, in such form, and containing such information as the Director may require. (8)Any additional requirements that the Director determines appropriate. (b)

Term of certification

A certification under this section shall be for a term of 10 years and may not be renewed.

4.

Technical assistance

(a)

In general

In carrying out the Program, the Director may provide to qualified minority businesses technical assistance with regard to the following: (1)Writing business plans. (2)Marketing. (3)Management. (4)Securing sufficient financing for business operations. (b)

Contract authority

The Director may enter into agreements with persons to provide technical assistance under this section. (c)

Authorization of appropriations

There are authorized to be appropriated $200,000,000 to the Director to carry out this section. Such sums shall remain available until expended.

5.

Set-aside contracting opportunities

(a)

In general

The Director may enter into agreements with the United States Government and any department, agency, or officer thereof having procurement powers for purposes of providing for the fulfillment of procurement contracts and providing opportunities for qualified minority businesses with regard to such contracts. (b)

Qualifications on participation

The Director shall by rule establish requirements for participation under this section by a qualified minority business in a contract. (c)

Annual limit on number of contracts per qualified minority business

A qualified minority business may not participate under this section in contracts in an amount that exceeds $10,000,000 for goods and services each fiscal year. (d)

Limits on contract amounts

(1)

Goods and services

Except as provided in paragraph (2), a contract for goods and services under this section may not exceed $6,000,000. (2)

Manufacturing and construction

A contract for manufacturing and construction services under this section may not exceed $10,000,000.

6.

Termination from the Program

The Director may terminate a qualified minority business from the Program for any violation of a requirement of sections 3 through 6 of this Act by that qualified minority business, including the following: (1)Conduct by a principal of the qualified minority business that indicates a lack of business integrity. (2)Willful failure to comply with applicable labor standards and obligations. (3)Consistent failure to tender adequate performance with regard to contracts under the Program. (4)Failure to obtain and maintain relevant certifications. (5)Failure to pay outstanding obligations owed to the Federal Government.

7.

Reports

(a)

Report of the Director

Not later than October 1, 2013, and annually thereafter, the Director shall submit to the Committee on Energy and Commerce of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a report describing the activities of the Director during the preceding year with respect to the Program. (b)

Report of the Secretary of Commerce

Not later than October 1, 2013, and annually thereafter, the Secretary of Commerce shall submit to the Committee on Energy and Commerce of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a report describing the activities the Secretary engaged in during the preceding year to build wealth among historically disadvantaged individuals, and evaluating whether such activities have been successful at creating jobs in the United States and recommending whether or not they should be continued.

8.

Definitions

In this Act: (1)The term historically disadvantaged individual means any individual who is a member of a group that is designated as eligible to receive assistance under section 1400.1 of title 15 of the Code of Federal Regulations, as in effect on January 1, 2009. (2)The term principal means any person that the Director determines to exercise significant control over the regular operations of a business entity.