,i #aafth ,,congress #ast ,session ,h4 ,r4 #adcb ,,in ,,the ,,house ,,of ,,representatives ,february #bh1 #bjai,mr4 ,mc,nerney 7for himself1 ,ms4 ,barragn1 ,ms4 ,judy ,chu of ,california1 ,mr4 ,rush1 and ,mr4 ,young7 introduced the following bill2 which was referred to the ,committee on ,financial ,services1 and in addition to the ,committee on ,small ,business1 for a period to be subsequently determined by the ,speaker1 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 ,commerce1 to clarify the relationship between such ,administration and the ,small ,business ,administration1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,minority ,business ,development ,act of #bjai4 #b4 ,findings and purpose 7a7 ,findings ,the ,congress finds that-- 7#a7 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 economy2 7#b7 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 control2 7#c7 such groups include1 but are not limited to1 ,african ,americans1 ,hispanic ,americans1 ,native ,americans1 ,asian ,pacific ,americans1 ,asian ,indian ,americans1 and other minorities2 7#d7 it is in the national interest to expeditiously ameliorate the conditions of socially and economically disadvantaged groups2 7#e7 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 groups2 7#f7 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 individuals2 7#g7 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 competition2 7#h7 while other ,federal agencies focus on broader demographic and emerging businesses1 ,,mbda focuses exclusively on the unique needs of minority-owned businesses and enhancing the capacity and reach of medium and large scale minority-owned firms2 and 7#i7 ,,mbda's national network of business centers is critical to assisting minority-owned businesses gain access to capital1 contracts1 and new markets through public-private engagement4 ,therefore1 ,congress must continue to invest in the ,,mbda business centers1 as they provide direct services to minority-owned businesses4 7b7 ,purpose ,it is1 therefore1 the purpose of this ,act to-- 7#a7 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 disadvantaged2 and 7#b7 achieve such development through the conduct of programs which will result in increased access to skilled labor1 capital1 management1 and technology by such business4 #c4 ,definitions ,as used in this ,act the following terms have the following meanings3 7#a7 ,the term ,secretary means the ,secretary of ,commerce4 7#b7 ,the terms ,state1 ,states1 and ,united ,states include the several ,states1 the ,district of ,columbia1 the ,commonwealth of ,puerto ,rico1 and the territories of the ,virgin ,islands1 ,guam1 ,american ,samoa1 and the ,commonwealth of the ,northern ,mariana ,islands4 7#c7 ,the terms socially and economically disadvantaged business concerns and disadvantaged business means any for-profit business enterprise which is at least #ea percent owned by one or more socially and economically disadvantaged individuals2 or1 in the case of any publicly owned business1 at least #ea percent of the stock of which is owned by one or more socially and economically disadvantaged individuals2 and whose management and daily business operations are controlled by one or more of such individuals4 7#d7 ,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 qualities4 7#e7 7,a7 ,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 disadvantaged4 7,b7 ,the ,assistant ,secretary shall presume that socially and economically disadvantaged individuals include ,black ,americans1 ,hispanic ,americans1 ,native ,americans1 ,asian ,pacific ,americans1 ,asian ,indian ,americans1 individuals found to be disadvantaged by the ,small ,business ,administration pursuant to section #h7;a7 of the ,small ,business ,act1 other individuals so designated by the ,minority ,business ,development ,agency under section #adjj4a of title #ae of the ,code of ,federal ,regulations 7as in effect on ,october #a1 #aihf71 and other individuals belonging to other minority groups which the ,small ,business ,administration may1 from time to time1 determine to be socially and economically disadvantaged groups pursuant to ,public ,law #ie-ejg4 7#f7 ,the term ,administration means the ,minority ,business ,development ,administration established by this ,act4 7#g7 ,the term ,assistant ,secretary means the ,assistant ,secretary of the ,minority ,business ,development ,administration4 7#h7 ,the term agency means any executive agency as defined in section #aje of title #e1 ,united ,states ,code1 and the military departments as defined by section #ajb of title #e1 ,united ,states ,code4 7#i7 ,the term public sector means any ,state1 ,state agency1 political subdivision of a ,state1 or agency of such a political subdivision4 7#aj7 ,the term private sector means any entity which is not in the public sector excluding the ,federal ,government and its agencies and instrumentalities4 #d4 ,minority business development administration 7a7 ,establishment ,the ,minority ,business ,development ,agency in the ,department of ,commerce is hereby redesignated and established as the ,minority ,business ,development ,administration4 ,the ,administration shall be headed by an ,assistant ,secretary of ,commerce appointed by the ,president1 by and with the advice and consent of the ,senate4 ,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 ,act4 ,this position shall be in addition to the other positions of ,assistant ,secretary which are authorized by law4 7b7 ,,mbda ,business ,centers ,the ,minority ,business ,development ,administration is directed to allocate up to #be percent of its total appropriation toward cooperative agreements1 external awards1 and grants to continue the traditional ,business ,center program and ,specialty ,project ,center program of the ,minority ,business ,development ,administration4 7c7 ,report to ,congress ,within #abj days after the effective date of this subsection1 the ,secretary shall inform appropriate committees of both the ,senate and ,house of ,representatives of-- 7#a7 the organizational structure established within the ,administration2 7#b7 the organizational position of the ,administration within the ,department of ,commerce2 and 7#c7 a description of how the ,administration shall function in relation to the operations of other agencies within the ,department4 ,i ,,market ,,development #aja4 ,private sector development 7a7 ,duties of the administration ,it shall be the duty of the ,administration and it is hereby empowered1 whenever it determines such action is necessary or appropriate-- 7#a7 to assist disadvantaged business concerns penetrate domestic and foreign markets by making available to such concerns1 either directly or in cooperation with private sector organizations1 management1 and technological assistance1 a skilled labor pool1 and financial and marketing services2 and 7#b7 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 business4 7b7 ,joint programs permitted ,for purposes of subsection 7a77#b73 7#a7 ,the ,assistant ,secretary may1 after consultation with the ,attorney ,general and the ,chairman of the ,federal ,trade ,commission1 and with the prior written approval of the ,attorney ,general1 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 ,nation4 ,the ,assistant ,secretary or the ,attorney ,general may at any time withdraw approval of the agreement and the joint program for market development covered thereby1 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 ,nation4 ,a copy of the statement of any such finding and approval intended to be within the coverage of this paragraph1 and a copy of any modification or withdrawal of approval1 shall be published in the ,federal ,register4 ,the authority conferred by this on the ,assistant ,secretary shall not be delegated4 7#b7 ,no act or omission to act1 pursuant to and within the scope of any joint program for market development under an agreement approved by the ,assistant ,secretary under this subsection1 shall be construed to be within the prohibitions of the antitrust laws or the ,federal ,trade ,commission ,act4 ,upon publication in the ,federal ,register of the notice of withdrawal of his approval of the agreement granted under this paragraph1 either by the ,assistant ,secretary or by the ,attorney ,general1 the provisions of this paragraph shall not apply to any subsequent act or omission to act4 7c7 ,requirement of participation of small business concern in joint program ,at least #a party to each agreement for a joint program for market development approved under subsection 7b7 shall be a small business concern1 as defined pursuant to section #c of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcb74 ,if there are more than #b parties to such an agreement1 a majority of the parties shall be small business concerns4 7d7 ,financial assistance ,in order to carry out the purposes of this section1 the ,administration is hereby authorized to provide financial assistance in the form of contracts1 grants1 or cooperative agreements to and with public and private sector organizations1 including any association1 business firm1 trade association1 or business organization4 ,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 7not otherwise established by this ,act7 unless the ,assistant ,secretary obtains the prior concurrence and written approval of the ,small ,business ,administration4 #ajb4 ,public sector development 7a7 ,duties of the administration ,it shall be the duty of the ,administration and it is hereby empowered1 whenever it determines such action is necessary or appropriate-- 7#a7 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 economy1 including1 but not be limited to1 assisting such governments to establish-- 7,a7 procurement programs and goals for the utilization of disadvantaged business2 7,b7 management and technological assistance programs2 7,c7 financial and marketing assistance programs2 7,d7 mobilization activities designed to attract skilled labor for use by disadvantaged firms2 and 7,e7 an informational program designed to inform local disadvantaged business of the availability of programs conducted under the authority of this section2 and 7#b7 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 economy4 7b7 ,financial assistance ,in order to carry out the purposes of subsection 7a7 the ,administration is hereby authorized to provide financial assistance to ,state and local governments in the form of contracts1 grants1 or cooperative agreements4 7c7 ,publications in the federal register 7#a7 ,at least #abj days before the beginning of each fiscal year1 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 grants1 contracts1 and cooperative agreements planned to be awarded pursuant to this section4 ,such publication shall also identify the proposed allocation of funds between the several ,states 7and cities within such ,states7 and the exact methodology used by the ,administration to make such proposed allocations4 7#b7 ,at least #fj days prior to the beginning of each fiscal year1 the ,administration shall publish in the ,federal ,register its response to comments received pursuant to paragraph 7#a7 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 7and cities within such ,states7 for the immediately succeeding fiscal year4 ,,ii ,,capital ,,formation #bja4 ,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 title4 #bjb4 ,mbda study on capital formation alternatives 7a7 ,in general ,the ,administrator shall conduct a study on alternatives for providing capital formation assistance to qualified disadvantaged business concerns4 7b7 ,report ,the ,administrator shall submit a report to ,congress within #f months4 ,,iii ,,management ,,educational ,,development #cja4 ,duties of the administration ,it shall be the duty of the ,administration and it is hereby empowered1 whenever it determines such action is necessary or appropriate to-- 7#a7 promote and assist the education and training of disadvantaged individuals in subjects directly related to business administration and management2 7#b7 join with and encourage accredited colleges and universities1 leaders in business and industry1 or other public or private entities1 particularly for profit entities owned and operated by socially and economically disadvantaged individuals1 to develop programs to offer scholarships and fellowships1 apprenticeships1 internships1 and to sponsor seminars and conferences and similar activities related to business for the benefit of disadvantaged individuals2 7#c7 stimulate and accelerate curriculum design and improvement in support of disadvantaged business development2 and 7#d7 encourage and assist private institutions and organizations and ,state and local government agencies to undertake similar activities4 ,,iv ,,research ,,and ,,information #dja4 ,duties of the administration 7a7 ,report on required productive resources ,not later than #a year after the effective date of this subsection1 the ,administration shall submit to the ,congress a report detailing the types and amounts of productive resources 7both public and private7 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 ,states4 ,the report shall provide separate recommendations for achieving such representation through a phased approach involving short-term and long-term goals and objectives4 7b7 ,powers and duties 7#a7 ,in order to achieve the purposes of this ,act1 the ,administration shall-- 7,a7 collect and analyze data1 including1 but not limited to1 the causes for success or failure of businesses owned by the disadvantaged2 7,b7 perform evaluations of private and public sector programs designed to assist the development of disadvantaged business2 and 7,c7 conduct research1 studies1 and surveys of economic conditions generally and how such conditions particularly affect the development of disadvantaged business4 7#b7 ,the ,administration is hereby authorized to provide financial assistance by contract1 grant1 or cooperative agreement to public and private organizations to assist the ,administration in carrying out the provisions of paragraph 7#a74 7#c7 ,the ,administration is hereby authorized to establish and maintain an information clearinghouse for the collection and dissemination of demographic1 economic1 financial1 managerial1 and technical data pertinent to disadvantaged business and1 to this end1 to take such steps as the ,administration may deem necessary and desirable to search for1 collect1 classify1 coordinate1 integrate1 record1 and catalog such information4 ,v ,,administrative ,,and ,,other ,,powers ,,of ,,the ,,administration2 ,,miscellaneous ,,provisions #eja4 ,administrative powers ,in performing the duties under this ,act1 the ,administration is authorized to-- 7#a7 adopt and use a seal for the ,minority ,business ,development ,administration which shall be judicially noticed2 7#b7 hold hearings1 sit and act1 and take testimony as the ,administration may deem advisable2 7#c7 acquire in any lawful manner any property as the ,administration may deem necessary or appropriate to conduct the activities authorized in this ,act2 7#d7 make advance payments under grants1 contracts1 and cooperative agreements2 7#e7 donate without cost 7except for costs of care and handling7 for use in any ,federal1 ,state1 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 ,act4 ,the ,administration may impose reasonable terms1 conditions1 reservations1 and restrictions upon the use of any property donated under this section2 7#f7 enter into agreements with other ,federal agencies2 7#g7 employ experts and consultants or organizations thereof as authorized by section #caji of title #e1 ,united ,states ,code1 to compensate individuals so employed at rates not in excess of the per diem rate authorized for ,,gs-#ae of the ,general ,schedule1 including travel time1 and allow them travel expenses 7including per diem in lieu of subsistence7 while away from their homes or regular places of business1 as authorized by section #egjc of title #e1 ,united ,states ,code1 for persons in the ,government service employed intermittently1 while so employed2 contracts for such employment may be renewed annually2 7#h7 sue and be sued in any court of record of a ,state having general jurisdiction or in any ,united ,states district court1 and jurisdiction is conferred upon such district court to determine such controversies without regard to the amount in controversy2 but no attachment1 garnishment1 or other similar process1 mesne or final1 shall be issued against the ,administration or its property2 nothing in this ,act shall be construed to except the activities under this ,act from application of sections #ejg7;b71 #eag1 and #bfgi of title #bh1 ,united ,states ,code2 and 7#i7 prescribe such rules1 regulations1 and procedures as the ,administration may deem appropriate to carry out this ,act4 #ejb4 ,audits 7a7 ,recordkeeping requirement ,each recipient of assistance under this ,act shall keep such records as the ,administration shall prescribe1 including records which fully disclose the amount and the disposition by the recipient of the proceeds of such assistance1 the total cost of the undertaking for which such assistance is given or used1 the amount and nature of that portion of the cost of the undertaking supplied by other sources1 and such other records as will facilitate an effective audit4 7b7 ,access by government officials ,the ,assistant ,secretary1 the ,inspector ,general of the ,department of ,commerce1 and the ,comptroller ,general of the ,united ,states1 or any of their duly authorized representatives1 shall have access for the purpose of audit1 investigation1 and examination to any books1 documents1 papers1 records1 and other materials of the recipient which are pertinent to the assistance received under this ,act4 7c7 ,review by comptroller general ,not later than #ah months after the date of the enactment of this ,act1 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 findings1 including therein an evaluation of the effectiveness of the programs authorized to achieve the purpose of this ,act1 a description of any failure to comply with the requirements of this ,act1 and recommendations for corrective legislative or administrative action4 #ejc4 ,annual report ,the ,assistant ,secretary shall1 not later than #abj days after the close of each fiscal year1 submit to the ,president a full report of the ,administration's activities hereunder during the previous fiscal year4 ,further1 the ,assistant ,secretary shall1 from time to time1 submit to the ,president recommendations for legislation or other actions as the ,assistant ,secretary deems desirable to promote the purposes of this ,act4 ,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 ,president4 #ejd4 ,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 invalid1 such judgment shall not affect1 impair1 or invalidate the remainder of this ,act or its application to other persons and circumstances1 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 rendered4 #eje4 ,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 authorized4 #ejf4 ,termination of authority under executive order numbered #aafbe ,beginning on the date of the enactment of this ,act1 the powers and duties of the ,administration shall be determined without regard to ,executive ,order ,numbered #aafbe4