Section 1 Short title
This Act may be cited as the “Minority Business Development Act of 2019”.
Minority Business Development Act of 2019
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.
Sec. 2 Findings and purpose
Findings— The Congress finds that—
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;
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;
such groups include, but are not limited to, African Americans, Hispanic Americans, Native Americans, Asian Pacific Americans, Asian Indian Americans, and other minorities;
it is in the national interest to expeditiously ameliorate the conditions of socially and economically disadvantaged groups;
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;
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;
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;
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
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.
Purpose— It is, therefore, the purpose of this Act to—
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
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:
The term Secretary means the Secretary of Commerce.
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.
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.
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.
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.
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.
The term Administration means the Minority Business Development Administration established by this Act.
The term Assistant Secretary means the Assistant Secretary of the Minority Business Development Administration.
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.
The term public sector means any State, State agency, political subdivision of a State, or agency of such a political subdivision.
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
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.
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.
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—
the organizational structure established within the Administration;
the organizational position of the Administration within the Department of Commerce; and
a description of how the Administration shall function in relation to the operations of other agencies within the Department.