[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1432 Introduced in House (IH)]
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116th CONGRESS
1st Session
H. R. 1432
To establish a Minority Business Development Administration in the
Department of Commerce, to clarify the relationship between such
Administration and the Small Business Administration, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 28, 2019
Mr. McNerney (for himself, Ms. Barragan, Ms. Judy Chu of California,
Mr. Rush, and Mr. Young) introduced the following bill; which was
referred to the Committee on Financial Services, 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 Minority Business Development Administration in the
Department of Commerce, to clarify the relationship between such
Administration and the Small Business Administration, and for other
purposes.
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 Business Development Act of
2019''.
SEC. 2. FINDINGS AND PURPOSE.
(a) Findings.--The Congress finds that--
(1) the opportunity for full participation in our free
enterprise system by socially and economically disadvantaged
individuals is essential if we are to obtain social and
economic equality for such individuals and improve the
functioning of our national economy;
(2) many such individuals are socially disadvantaged
because of their identification as members of certain groups
that have suffered the effects of discriminatory practices or
similar invidious circumstances over which they have no
control;
(3) such groups include, but are not limited to, African
Americans, Hispanic Americans, Native Americans, Asian Pacific
Americans, Asian Indian Americans, and other minorities;
(4) it is in the national interest to expeditiously
ameliorate the conditions of socially and economically
disadvantaged groups;
(5) such conditions can be improved by providing the
maximum practicable opportunity for the development of business
concerns owned by members of socially and economically
disadvantaged groups;
(6) such opportunity cannot be fully realized unless the
Federal Government secures the participation and cooperation of
the private sector in a joint effort to promote the development
of business owned by disadvantaged individuals;
(7) such effort will result in a more equitable share of
productive resources being devoted to business owned by the
disadvantaged and will promote a balanced economy and increased
competition;
(8) while other Federal agencies focus on broader
demographic and emerging businesses, MBDA focuses exclusively
on the unique needs of minority-owned businesses and enhancing
the capacity and reach of medium and large scale minority-owned
firms; and
(9) MBDA's national network of business centers is critical
to assisting minority-owned businesses gain access to capital,
contracts, and new markets through public-private engagement.
Therefore, Congress must continue to invest in the MBDA
business centers, as they provide direct services to minority-
owned businesses.
(b) Purpose.--It is, therefore, the purpose of this Act to--
(1) establish an Administration within the Department of
Commerce which will promote and administer programs in the
private and public sectors to assist the development of
business owned by the disadvantaged; and
(2) achieve such development through the conduct of
programs which will result in increased access to skilled
labor, capital, management, and technology by such business.
SEC. 3. DEFINITIONS.
As used in this Act the following terms have the following
meanings:
(1) The term ``Secretary'' means the Secretary of Commerce.
(2) The terms ``State'', ``States'', and ``United States''
include the several States, the District of Columbia, the
Commonwealth of Puerto Rico, and the territories of the Virgin
Islands, Guam, American Samoa, and the Commonwealth of the
Northern Mariana Islands.
(3) The terms ``socially and economically disadvantaged
business concerns'' and ``disadvantaged business'' means any
for-profit business enterprise which is at least 51 percent
owned by one or more socially and economically disadvantaged
individuals; or, in the case of any publicly owned business, at
least 51 percent of the stock of which is owned by one or more
socially and economically disadvantaged individuals; and whose
management and daily business operations are controlled by one
or more of such individuals.
(4) The term ``socially disadvantaged individuals'' means
those who have been subjected to racial or ethnic prejudice or
cultural bias because of their identity as a member of a group
without regard to their individual qualities.
(5)(A) The term ``economically disadvantaged individuals''
means those socially disadvantaged individuals whose ability to
compete in the free enterprise system has been impaired due to
diminished capital and credit opportunities as compared to
others in the same business area that are not socially
disadvantaged.
(B) The Assistant Secretary shall presume that socially and
economically disadvantaged individuals include Black Americans,
Hispanic Americans, Native Americans, Asian Pacific Americans,
Asian Indian Americans, individuals found to be disadvantaged
by the Small Business Administration pursuant to section 8(a)
of the Small Business Act, other individuals so designated by
the Minority Business Development Agency under section 1400.1
of title 15 of the Code of Federal Regulations (as in effect on
October 1, 1986), and other individuals belonging to other
minority groups which the Small Business Administration may,
from time to time, determine to be socially and economically
disadvantaged groups pursuant to Public Law 95-507.
(6) The term ``Administration'' means the Minority Business
Development Administration established by this Act.
(7) The term ``Assistant Secretary'' means the Assistant
Secretary of the Minority Business Development Administration.
(8) The term ``agency'' means any executive agency as
defined in section 105 of title 5, United States Code, and the
military departments as defined by section 102 of title 5,
United States Code.
(9) The term ``public sector'' means any State, State
agency, political subdivision of a State, or agency of such a
political subdivision.
(10) The term ``private sector'' means any entity which is
not in the public sector excluding the Federal Government and
its agencies and instrumentalities.
SEC. 4. MINORITY BUSINESS DEVELOPMENT ADMINISTRATION.
(a) Establishment.--The Minority Business Development Agency in the
Department of Commerce is hereby redesignated and established as the
``Minority Business Development Administration''. The Administration
shall be headed by an Assistant Secretary of Commerce appointed by the
President, by and with the advice and consent of the Senate. The
Assistant Secretary shall be compensated at the rate now or hereafter
provided for level IV of the Executive Schedule and shall have
responsibility for the administration of this Act. This position shall
be in addition to the other positions of Assistant Secretary which are
authorized by law.
(b) MBDA Business Centers.--The Minority Business Development
Administration is directed to allocate up to 25 percent of its total
appropriation toward cooperative agreements, external awards, and
grants to continue the traditional Business Center program and
Specialty Project Center program of the Minority Business Development
Administration.
(c) Report to Congress.--Within 120 days after the effective date
of this subsection, the Secretary shall inform appropriate committees
of both the Senate and House of Representatives of--
(1) the organizational structure established within the
Administration;
(2) the organizational position of the Administration
within the Department of Commerce; and
(3) a description of how the Administration shall function
in relation to the operations of other agencies within the
Department.
TITLE I--MARKET DEVELOPMENT
SEC. 101. PRIVATE SECTOR DEVELOPMENT.
(a) Duties of the Administration.--It shall be the duty of the
Administration and it is hereby empowered, whenever it determines such
action is necessary or appropriate--
(1) to assist disadvantaged business concerns penetrate
domestic and foreign markets by making available to such
concerns, either directly or in cooperation with private sector
organizations, management, and technological assistance, a
skilled labor pool, and financial and marketing services; and
(2) to encourage disadvantaged firms to establish joint
ventures and projects either among themselves or in cooperation
with public or private sector organizations for the purpose of
increasing the share of any market activity now being performed
by disadvantaged business.
(b) Joint Programs Permitted.--For purposes of subsection (a)(2):
(1) The Assistant Secretary may, after consultation with
the Attorney General and the Chairman of the Federal Trade
Commission, and with the prior written approval of the Attorney
General, approve any agreement between such disadvantaged firms
or public or private sector organizations providing for a joint
program for market development if the Assistant Secretary finds
that the joint program proposed will maintain and strengthen
the free enterprise system and the economy of the Nation. The
Assistant Secretary or the Attorney General may at any time
withdraw approval of the agreement and the joint program for
market development covered thereby, if either finds that the
agreement or the joint program carried on under it is no longer
in the best interests of the competitive free enterprise system
and the economy of the Nation. A copy of the statement of any
such finding and approval intended to be within the coverage of
this paragraph, and a copy of any modification or withdrawal of
approval, shall be published in the Federal Register. The
authority conferred by this on the Assistant Secretary shall
not be delegated.
(2) No act or omission to act, pursuant to and within the
scope of any joint program for market development under an
agreement approved by the Assistant Secretary under this
subsection, shall be construed to be within the prohibitions of
the antitrust laws or the Federal Trade Commission Act. Upon
publication in the Federal Register of the notice of withdrawal
of his approval of the agreement granted under this paragraph,
either by the Assistant Secretary or by the Attorney General,
the provisions of this paragraph shall not apply to any
subsequent act or omission to act.
(c) Requirement of Participation of Small Business Concern in Joint
Program.--At least 1 party to each agreement for a joint program for
market development approved under subsection (b) shall be a small
business concern, as defined pursuant to section 3 of the Small
Business Act (15 U.S.C. 632). If there are more than 2 parties to such
an agreement, a majority of the parties shall be small business
concerns.
(d) Financial Assistance.--In order to carry out the purposes of
this section, the Administration is hereby authorized to provide
financial assistance in the form of contracts, grants, or cooperative
agreements to and with public and private sector organizations,
including any association, business firm, trade association, or
business organization. No assistance may be provided under the
authority of this subsection if such assistance is primarily intended
to facilitate the use by disadvantaged business of federally
administered programs (not otherwise established by this Act) unless
the Assistant Secretary obtains the prior concurrence and written
approval of the Small Business Administration.
SEC. 102. PUBLIC SECTOR DEVELOPMENT.
(a) Duties of the Administration.--It shall be the duty of the
Administration and it is hereby empowered, whenever it determines such
action is necessary or appropriate--
(1) to consult and cooperate with State and local
governments for the purpose of leveraging local resources to
promote the position of disadvantaged business in the local
economy, including, but not be limited to, assisting such
governments to establish--
(A) procurement programs and goals for the
utilization of disadvantaged business;
(B) management and technological assistance
programs;
(C) financial and marketing assistance programs;
(D) mobilization activities designed to attract
skilled labor for use by disadvantaged firms; and
(E) an informational program designed to inform
local disadvantaged business of the availability of
programs conducted under the authority of this section;
and
(2) to convene meetings with leaders and officials of State
and local governments for the purpose of recommending and
promoting local administrative and legislative initiatives
needed to advance the position of disadvantaged business in the
local economy.
(b) Financial Assistance.--In order to carry out the purposes of
subsection (a) the Administration is hereby authorized to provide
financial assistance to State and local governments in the form of
contracts, grants, or cooperative agreements.
(c) Publications in the Federal Register.--
(1) At least 120 days before the beginning of each fiscal
year, the Administration shall publish for public comment in
the Federal Register the actual or anticipated amount of
financial assistance that will or may be available in the
immediately succeeding fiscal year for grants, contracts, and
cooperative agreements planned to be awarded pursuant to this
section. Such publication shall also identify the proposed
allocation of funds between the several States (and cities
within such States) and the exact methodology used by the
Administration to make such proposed allocations.
(2) At least 60 days prior to the beginning of each fiscal
year, the Administration shall publish in the Federal Register
its response to comments received pursuant to paragraph (1) and
any change in the allocation methodology which may be adopted
as a result thereof including its effect on the allocation of
funds on the several States (and cities within such States) for
the immediately succeeding fiscal year.
TITLE II--CAPITAL FORMATION
SEC. 201. ACCESS TO EQUITY CAPITAL.
The Securities and Exchange Commission shall consult and cooperate
with the Administration in an effort to promote access by disadvantaged
business to securities markets and otherwise achieve the purposes of
this title.
SEC. 202. MBDA STUDY ON CAPITAL FORMATION ALTERNATIVES.
(a) In General.--The Administrator shall conduct a study on
alternatives for providing capital formation assistance to qualified
disadvantaged business concerns.
(b) Report.--The Administrator shall submit a report to Congress
within 6 months.
TITLE III--MANAGEMENT EDUCATIONAL DEVELOPMENT
SEC. 301. DUTIES OF THE ADMINISTRATION.
It shall be the duty of the Administration and it is hereby
empowered, whenever it determines such action is necessary or
appropriate to--
(1) promote and assist the education and training of
disadvantaged individuals in subjects directly related to
business administration and management;
(2) join with and encourage accredited colleges and
universities, leaders in business and industry, or other public
or private entities, particularly for profit entities owned and
operated by socially and economically disadvantaged
individuals, to develop programs to offer scholarships and
fellowships, apprenticeships, internships, and to sponsor
seminars and conferences and similar activities related to
business for the benefit of disadvantaged individuals;
(3) stimulate and accelerate curriculum design and
improvement in support of disadvantaged business development;
and
(4) encourage and assist private institutions and
organizations and State and local government agencies to
undertake similar activities.
TITLE IV--RESEARCH AND INFORMATION
SEC. 401. DUTIES OF THE ADMINISTRATION.
(a) Report on Required Productive Resources.--Not later than 1 year
after the effective date of this subsection, the Administration shall
submit to the Congress a report detailing the types and amounts of
productive resources (both public and private) needed to advance and
represent disadvantaged business at all phases and levels of the
economic system in numbers representative of the relative population of
disadvantaged individuals in the United States. The report shall
provide separate recommendations for achieving such representation
through a phased approach involving short-term and long-term goals and
objectives.
(b) Powers and Duties.--
(1) In order to achieve the purposes of this Act, the
Administration shall--
(A) collect and analyze data, including, but not
limited to, the causes for success or failure of
businesses owned by the disadvantaged;
(B) perform evaluations of private and public
sector programs designed to assist the development of
disadvantaged business; and
(C) conduct research, studies, and surveys of
economic conditions generally and how such conditions
particularly affect the development of disadvantaged
business.
(2) The Administration is hereby authorized to provide
financial assistance by contract, grant, or cooperative
agreement to public and private organizations to assist the
Administration in carrying out the provisions of paragraph (1).
(3) The Administration is hereby authorized to establish
and maintain an information clearinghouse for the collection
and dissemination of demographic, economic, financial,
managerial, and technical data pertinent to disadvantaged
business and, to this end, to take such steps as the
Administration may deem necessary and desirable to search for,
collect, classify, coordinate, integrate, record, and catalog
such information.
TITLE V--ADMINISTRATIVE AND OTHER POWERS OF THE ADMINISTRATION;
MISCELLANEOUS PROVISIONS
SEC. 501. ADMINISTRATIVE POWERS.
In performing the duties under this Act, the Administration is
authorized to--
(1) adopt and use a seal for the Minority Business
Development Administration which shall be judicially noticed;
(2) hold hearings, sit and act, and take testimony as the
Administration may deem advisable;
(3) acquire in any lawful manner any property as the
Administration may deem necessary or appropriate to conduct the
activities authorized in this Act;
(4) make advance payments under grants, contracts, and
cooperative agreements;
(5) donate without cost (except for costs of care and
handling) for use in any Federal, State, or local government or
in any recipient nonprofit organization for purposes of the
development of disadvantaged business any real or tangible
personal property acquired by the Administration under this
Act. The Administration may impose reasonable terms,
conditions, reservations, and restrictions upon the use of any
property donated under this section;
(6) enter into agreements with other Federal agencies;
(7) employ experts and consultants or organizations thereof
as authorized by section 3109 of title 5, United States Code,
to compensate individuals so employed at rates not in excess of
the per diem rate authorized for GS-15 of the General Schedule,
including travel time, and allow them travel expenses
(including per diem in lieu of subsistence) while away from
their homes or regular places of business, as authorized by
section 5703 of title 5, United States Code, for persons in the
Government service employed intermittently, while so employed;
contracts for such employment may be renewed annually;
(8) sue and be sued in any court of record of a State
having general jurisdiction or in any United States district
court, and jurisdiction is conferred upon such district court
to determine such controversies without regard to the amount in
controversy; but no attachment, garnishment, or other similar
process, mesne or final, shall be issued against the
Administration or its property; nothing in this Act shall be
construed to except the activities under this Act from
application of sections 507(b), 517, and 2679 of title 28,
United States Code; and
(9) prescribe such rules, regulations, and procedures as
the Administration may deem appropriate to carry out this Act.
SEC. 502. AUDITS.
(a) Recordkeeping Requirement.--Each recipient of assistance under
this Act shall keep such records as the Administration shall prescribe,
including records which fully disclose the amount and the disposition
by the recipient of the proceeds of such assistance, the total cost of
the undertaking for which such assistance is given or used, the amount
and nature of that portion of the cost of the undertaking supplied by
other sources, and such other records as will facilitate an effective
audit.
(b) Access by Government Officials.--The Assistant Secretary, the
Inspector General of the Department of Commerce, and the Comptroller
General of the United States, or any of their duly authorized
representatives, shall have access for the purpose of audit,
investigation, and examination to any books, documents, papers,
records, and other materials of the recipient which are pertinent to
the assistance received under this Act.
(c) Review by Comptroller General.--Not later than 18 months after
the date of the enactment of this Act, the Comptroller General of the
United States shall conduct a thorough review of the programs
authorized by this Act and shall transmit to the Congress a detailed
report of the Comptroller's findings, including therein an evaluation
of the effectiveness of the programs authorized to achieve the purpose
of this Act, a description of any failure to comply with the
requirements of this Act, and recommendations for corrective
legislative or administrative action.
SEC. 503. ANNUAL REPORT.
The Assistant Secretary shall, not later than 120 days after the
close of each fiscal year, submit to the President a full report of the
Administration's activities hereunder during the previous fiscal year.
Further, the Assistant Secretary shall, from time to time, submit to
the President recommendations for legislation or other actions as the
Assistant Secretary deems desirable to promote the purposes of this
Act. Each Federal agency shall consult with the Assistant Secretary on
a timely basis so that the Assistant Secretary may consider them for
the Assistant Secretary's report and recommendations to the President.
SEC. 504. SEPARABILITY.
If any provision of this Act or the application thereof to any
persons or circumstances shall be adjudged by any court of competent
jurisdiction to be invalid, such judgment shall not affect, impair, or
invalidate the remainder of this Act or its application to other
persons and circumstances, but shall be confined in its operation to
the provision of this Act or the application thereof to the persons and
circumstances directly involved in the controversy in which such
judgment shall have been rendered.
SEC. 505. AUTHORIZATION FOR APPROPRIATIONS.
There are hereby authorized to be appropriated such sums as may be
necessary and appropriate to carry out the provisions and purposes of
this Act other than those for which appropriations may from time to
time be specifically authorized.
SEC. 506. TERMINATION OF AUTHORITY UNDER EXECUTIVE ORDER NUMBERED
11625.
Beginning on the date of the enactment of this Act, the powers and
duties of the Administration shall be determined without regard to
Executive Order Numbered 11625.
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