I 

112TH CONGRESS 

1ST SESSION H. R. 1902 

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. 

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 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Minority Business De5 velopment Improvements Act of 2011’’. 


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1 SEC. 2. MINORITY BUSINESS DEVELOPMENT PROGRAM. 

2 The Director of the Minority Business Development 

3 Agency shall establish the Minority Business Development 

4 Program (hereinafter in this Act referred to as the ‘‘Pro5 gram’’) to assist qualified minority businesses. The Pro6 gram shall provide to such businesses the following: 

7 (1) Technical assistance. 

8 (2) Contract procurement assistance. 

9 SEC. 3. QUALIFIED MINORITY BUSINESS. 

10 (a) CERTIFICATION.—For purposes of the Program, 

11 the Director may certify as a qualified minority business 

12 any entity that satisfies each of the following: 

13 (1) Not less than 51 percent of the entity is di14 rectly and unconditionally owned or controlled by 

15 historically disadvantaged individuals. 

16 (2) Each officer or other individual who exer17 cises control over the regular operations of the entity 

18 is a historically disadvantaged individual. 

19 (3) The net worth of each principal of the enti20 ty is not greater than $2,000,000. (The equity of a 

21 disadvantaged owner in a primary personal residence 

22 shall be considered in this calculation.) 

23 (4) The principal place of business of the entity 

24 is in the United States. 

25 (5) Each principal of the entity maintains good 

26 character in the determination of the Director. 


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1 (6) The entity engages in competitive and bona 

2 fide commercial business operations in not less than 

3 one sector of industry that has a North American 

4 Industry Classification System code. 

5 (7) The entity submits reports to the Director 

6 at such time, in such form, and containing such in7 formation as the Director may require. 

8 (8) Any additional requirements that the Direc9 tor determines appropriate. 

10 (b) TERM OF CERTIFICATION.—A certification under 

11 this section shall be for a term of 10 years and may not 

12 be renewed. 

13 SEC. 4. TECHNICAL ASSISTANCE. 

14 (a) IN GENERAL.—In carrying out the Program, the 

15 Director may provide to qualified minority businesses 

16 technical assistance with regard to the following: 

17 (1) Writing business plans. 

18 (2) Marketing. 

19 (3) Management. 

20 (4) Securing sufficient financing for business 

21 operations. 

22 (b) CONTRACT AUTHORITY.—The Director may enter 

23 into agreements with persons to provide technical assist24 ance under this section. 


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1 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

2 are authorized to be appropriated $200,000,000 to the Di3 rector to carry out this section. Such sums shall remain 

4 available until expended. 

5 SEC. 5. SET-ASIDE CONTRACTING OPPORTUNITIES. 

6 (a) IN GENERAL.—The Director may enter into 

7 agreements with the United States Government and any 

8 department, agency, or officer thereof having procurement 

9 powers for purposes of providing for the fulfillment of pro10 curement contracts and providing opportunities for quali11 fied minority businesses with regard to such contracts. 

12 (b) QUALIFICATIONS ON PARTICIPATION.—The Di13 rector shall by rule establish requirements for participa14 tion under this section by a qualified minority business 

15 in a contract. 

16 (c) ANNUAL LIMIT ON NUMBER OF CONTRACTS PER

17 QUALIFIED MINORITY BUSINESS.—A qualified minority 

18 business may not participate under this section in con19 tracts in an amount that exceeds $10,000,000 for goods 

20 and services each fiscal year. 

21 (d) LIMITS ON CONTRACT AMOUNTS.— 

22 (1) GOODS AND SERVICES.—Except as provided 

23 in paragraph (2), a contract for goods and services 

24 under this section may not exceed $6,000,000. 


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1 (2) MANUFACTURING AND CONSTRUCTION.—A 

2 contract for manufacturing and construction services 

3 under this section may not exceed $10,000,000. 

4 SEC. 6. TERMINATION FROM THE PROGRAM. 

5 The Director may terminate a qualified minority 

6 business from the Program for any violation of a require7 ment of sections 3 through 6 of this Act by that qualified 

8 minority business, including the following: 

9 (1) Conduct by a principal of the qualified mi10 nority business that indicates a lack of business in11 tegrity. 

12 (2) Willful failure to comply with applicable 

13 labor standards and obligations. 

14 (3) Consistent failure to tender adequate per15 formance with regard to contracts under the Pro16 gram. 

17 (4) Failure to obtain and maintain relevant cer18 tifications. 

19 (5) Failure to pay outstanding obligations owed 

20 to the Federal Government. 

21 SEC. 7. REPORTS. 

22 (a) REPORT OF THE DIRECTOR.—Not later than Oc23 tober 1, 2013, and annually thereafter, the Director shall 

24 submit to the Committee on Energy and Commerce of the 

25 House of Representatives and the Committee on ComVerDate Mar 15 2010 19:17 May 24, 2011 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1902.IH H1902

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1 merce, Science, and Transportation of the Senate a report 

2 describing the activities of the Director during the pre3 ceding year with respect to the Program. 

4 (b) REPORT OF THE SECRETARY OF COMMERCE.— 

5 Not later than October 1, 2013, and annually thereafter, 

6 the Secretary of Commerce shall submit to the Committee 

7 on Energy and Commerce of the House of Representatives 

8 and the Committee on Commerce, Science, and Transpor9 tation of the Senate a report describing the activities the 

10 Secretary engaged in during the preceding year to build 

11 wealth among historically disadvantaged individuals, and 

12 evaluating whether such activities have been successful at 

13 creating jobs in the United States and recommending 

14 whether or not they should be continued. 

15 SEC. 8. DEFINITIONS. 

16 In this Act: 

17 (1) The term ‘‘historically disadvantaged indi18 vidual’’ means any individual who is a member of a 

19 group that is designated as eligible to receive assist20 ance under section 1400.1 of title 15 of the Code of 

21 Federal Regulations, as in effect on January 1, 

22 2009. 

23 (2) The term ‘‘principal’’ means any person 

24 that the Director determines to exercise significant 


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1 control over the regular operations of a business en2 tity. 

Æ 


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