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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4929 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 4929

    To amend the Small Business Act to ensure that certain Federal 
 contracts are set aside for small businesses, to enhance services to 
    small businesses that are disadvantaged, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             March 24, 2010

   Mr. Rush introduced the following bill; which was referred to the 
   Committee on Small Business, and in addition to the Committees on 
   Financial Services, Oversight and Government Reform, and Ways and 
 Means, 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 amend the Small Business Act to ensure that certain Federal 
 contracts are set aside for small businesses, to enhance services to 
    small businesses that are disadvantaged, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Expanding 
Opportunities for Main Street Act of 2010''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
          DIVISION A--SMALL BUSINESS ADMINISTRATION PROVISIONS

      TITLE I--CONTRACT OPPORTUNITIES FOR SMALL BUSINESS CONCERNS

Sec. 101. Contract opportunities for small business concerns.
             TITLE II--MINORITY SMALL BUSINESS ENHANCEMENT

Sec. 201. Enhancement of services to small businesses that are 
                            disadvantaged.
Sec. 202. Surety bond guarantees.
Sec. 203. Bundled contracts.
Sec. 204. Federal contracting goals.
Sec. 205. Implementation of subcontracting plans.
Sec. 206. Requirement to consider use of small business concerns owned 
                            and controlled by socially and economically 
                            disadvantaged individuals when considering 
                            past compliance with subcontracting plans.
          TITLE III--EXTENSION OF BUSINESS STABILIZATION LOANS

Sec. 301. Extension of business stabilization loans.
      DIVISION B--MINORITY BUSINESS DEVELOPMENT AGENCY PROVISIONS

          TITLE I--MINORITY BUSINESS DEVELOPMENT IMPROVEMENTS

Sec. 101. Minority Business Development Program.
Sec. 102. Qualified minority business.
Sec. 103. Technical assistance.
Sec. 104. Loan guarantees.
Sec. 105. Set-aside contracting opportunities.
Sec. 106. Termination from the Program.
Sec. 107. Reports.
Sec. 108. Definitions.
        TITLE II--MINORITY BUSINESS DEVELOPMENT AGENCY DATABASE

Sec. 201. Minority Business Development Agency database.
         DIVISION C--COMMUNITY ECONOMIC DEVELOPMENT PROVISIONS

  TITLE I--ENSURING JOB QUALITY AND ACCESS IN THE CONSTRUCTION SECTOR

Sec. 101. Targeted hiring requirement for certain construction jobs.
     TITLE II--2-YEAR EXTENSION OF NEW MARKETS TAX CREDIT NATIONAL 
                               LIMITATION

Sec. 201. 2-year extension of new markets tax credit national 
                            limitation.
          TITLE III--EXTENSION OF EMPOWERMENT ZONE DESIGNATION

Sec. 301. Extension of empowerment zone designation.

          DIVISION A--SMALL BUSINESS ADMINISTRATION PROVISIONS

      TITLE I--CONTRACT OPPORTUNITIES FOR SMALL BUSINESS CONCERNS

SEC. 101. CONTRACT OPPORTUNITIES FOR SMALL BUSINESS CONCERNS.

    (a) In General.--Notwithstanding any other provision of law, a 
Federal department or agency shall, to the extent practicable, award to 
a small business concern each eligible contract of such department or 
agency.
    (b) Sole Source Contracts.--A Federal department or agency may 
award an eligible contract to a small business concern if at least one 
small business concern submits an offer with respect to such contract.
    (c) Award to Small Business Not Practicable.--
            (1) In general.--If a contracting officer of a Federal 
        department or agency determines that awarding an eligible 
        contract to a small business concern under subsection (a) is 
        not practicable, such contracting officer shall make available 
        to the Administrator of the Small Business Administration and 
        the public the following:
                    (A) The determination and reasoning of such officer 
                with respect to such eligible contract.
                    (B) The names of each small business concern that 
                submitted an offer with respect to such eligible 
                contract.
            (2) Review.--The Administrator of the Small Business 
        Administration may review each determination under paragraph 
        (1) and, if the Administrator determines it appropriate, may 
        open such contract opportunity for the submission of additional 
        offers.
    (d) Definitions.--In this Act:
            (1) Eligible contract.--The term ``eligible contract'' 
        means any contract for the acquisition of goods or services 
        that is in an amount (including options) of more than $3,000 
        and less than $500,000.
            (2) Small business concern.--The term ``small business 
        concern'' has the meaning given such term under section 3(a) of 
        the Small Business Act (15 U.S.C. 632(a)).

             TITLE II--MINORITY SMALL BUSINESS ENHANCEMENT

SEC. 201. ENHANCEMENT OF SERVICES TO SMALL BUSINESSES THAT ARE 
              DISADVANTAGED.

    (a) Net Worth.--Section 8(a)(6)(A) of the Small Business Act (15 
U.S.C. 637(a)(6)(A)) is amended by inserting after ``disadvantaged 
individual.'' the following: ``For purposes of eligibility for 
admission as a Program Participant and for continued eligibility after 
admission, the net worth of such individual may be any amount less than 
$1,500,000.''.
    (b) Time Limit on Participation.--Section 7(j)(15) of the Small 
Business Act (15 U.S.C. 636(j)(15)) is amended--
            (1) by redesignating subparagraphs (A) and (B) as clauses 
        (i) and (ii), respectively;
            (2) by inserting ``(A)'' after ``(15)''; and
            (3) by adding at the end the following:
    ``(B) No time limitation relating to the period that a small 
business concern may receive developmental assistance under the Program 
and contracts under section 8(a) shall apply to a small business 
concern that has not completed a contract under section 8(a).''.

SEC. 202. SURETY BOND GUARANTEES.

    Section 508(f) of title V of division A of the American Recovery 
and Reinvestment Act of 2009 (Public Law 111-5; 123 Stat. 159) is 
amended by striking ``amendments made by this section'' and inserting 
``amendment made by subsection (c)''.

SEC. 203. BUNDLED CONTRACTS.

    (a) Definition.--Section 3(o) of the Small Business Act (15 U.S.C. 
632(o)) is amended to read as follows:
    ``(o) Definitions of Bundling of Contract Requirements and Related 
Terms.--For purposes of this Act:
            ``(1) Bundled contract.--
                    ``(A) In general.--The term `bundled contract' 
                means a contract or order that is entered into to meet 
                procurement requirements that are consolidated in a 
                bundling of contract requirements, without regard to 
                its designation by the procuring agency or whether a 
                study of the effects of the solicitation on civilian or 
                military personnel has been made.
                    ``(B) Exceptions.--The term does not include--
                            ``(i) a contract or order with an aggregate 
                        dollar value below the dollar threshold 
                        specified in paragraph (5); or
                            ``(ii) a contract or order that is entered 
                        into to meet procurement requirements, all of 
                        which are exempted requirements under paragraph 
                        (6).
            ``(2) Bundling of contract requirements.--
                    ``(A) In general.--The term `bundling of contract 
                requirements' means the use of any bundling methodology 
                to satisfy 2 or more procurement requirements for goods 
                or services previously supplied or performed under 
                separate smaller contracts or orders, or to satisfy 2 
                or more procurement requirements for construction 
                services of a type historically performed under 
                separate smaller contracts or orders, that is likely to 
                be unsuitable for award to a small business concern due 
                to--
                            ``(i) the diversity, size, or specialized 
                        nature of the elements of the performance 
                        specified;
                            ``(ii) the aggregate dollar value of the 
                        anticipated award;
                            ``(iii) the geographical dispersion of the 
                        contract or order performance sites; or
                            ``(iv) any combination of the factors 
                        described in clauses (i), (ii), and (iii).
                    ``(B) Inclusion of new features or functions.--A 
                combination of contract requirements that would meet 
                the definition of a bundling of contract requirements 
                but for the addition of a procurement requirement with 
                at least one new good or service shall be considered to 
                be a bundling of contract requirements unless the new 
                features or functions substantially transform the goods 
                or services and will provide measurably substantial 
                benefits to the government in terms of quality, 
                performance, or price.
                    ``(C) Exceptions.--The term does not include--
                            ``(i) the use of a bundling methodology for 
                        an anticipated award with an aggregate dollar 
                        value below the dollar threshold specified in 
                        paragraph (5); or
                            ``(ii) the use of a bundling methodology to 
                        meet procurement requirements, all of which are 
                        exempted requirements under paragraph (6).
            ``(3) Bundling methodology.--The term `bundling 
        methodology' means--
                    ``(A) a solicitation to obtain offers for a single 
                contract or order, or a multiple award contract or 
                order; or
                    ``(B) a solicitation of offers for the issuance of 
                a task or a delivery order under an existing single or 
                multiple award contract or order.
            ``(4) Separate smaller contract.--The term `separate 
        smaller contract', with respect to bundling of contract 
        requirements, means a contract or order that has been performed 
        by 1 or more small business concerns or was suitable for award 
        to 1 or more small business concerns.
            ``(5) Dollar threshold.--The term `dollar threshold' means 
        $65,000,000, if solely for construction services, and 
        $5,000,000 with respect to all other circumstances.
            ``(6) Exempted requirements.--The term `exempted 
        requirement' means a procurement requirement solely for items 
        that are not commercial items (as the term `commercial item' is 
        defined in section 4(12) of the Office of Federal Procurement 
        Policy Act (41 U.S.C. 403(12))).
            ``(7) Procurement requirement.--The term `procurement 
        requirement' means a determination by an agency that a 
        specified good or service is needed to satisfy the mission of 
        the agency.''.
    (b) Proposed Procurement Requirements.--Section 15(a) of the Small 
Business Act (15 U.S.C. 644(a)) is amended--
            (1) by striking ``necessary and justified.'' and inserting 
        ``necessary and justified, as well as identifying information 
        on the incumbent contract holders, a description of the 
        industries which might be interested in bidding on the contract 
        requirements, and the number of small businesses listed in the 
        industry categories that could be excluded from future bidding 
        if the contract is combined or packaged.''; and
            (2) by striking the sentence beginning ``Whenever the 
        Administration and the contracting procurement agency fail to 
        agree,'' and inserting the following: ``Whenever the 
        Administration and the contracting procurement agency fail to 
        agree, the Administrator may review the proposed procurement, 
        may delay the solicitation process for not more than 10 days to 
        make recommendations, and the matter shall be submitted to the 
        Director of the Office of Management and Budget to mediate the 
        disagreement.''.

SEC. 204. FEDERAL CONTRACTING GOALS.

    (a) Increase in Certain Goals.--Section 15(g)(1) of the Small 
Business Act (15 U.S.C. 644(g)(1)) is amended--
            (1) by striking ``not less than 23 percent'' and inserting 
        ``not less than 25 percent''; and
            (2) by striking ``not less than 5 percent'' each place it 
        appears and inserting ``not less than 10 percent''.
    (b) Limitation on Number of Categories for Which a Business May 
Qualify.--Section 15(g) of the Small Business Act (15 U.S.C. 644(g)) is 
amended by adding at the end the following:
    ``(3) For purposes of this subsection and subsection (h), with 
respect to each procurement contract a small business concern may not 
qualify as more than 2 specified categories, regardless of whether such 
small business concern satisfies the definition of more than 2 
specified categories. The specified categories are small business 
concerns, small business concerns owned and controlled by service-
disabled veterans, qualified HUBZone small business concerns, small 
business concerns owned and controlled by socially and economically 
disadvantaged individuals, and small business concerns owned and 
controlled by women.''.

SEC. 205. IMPLEMENTATION OF SUBCONTRACTING PLANS.

    Section 8(d) of the Small Business Act (15 U.S.C. 637(d)) is 
amended by adding at the end the following:
    ``(12) In the case of any contract containing a subcontracting plan 
included pursuant to paragraph (4) or (5), the following apply:
            ``(A) The Federal agency awarding the contract shall 
        include in the contract a clause providing for the withholding 
        of not less than (i) $5,000 in the case of a contract in the 
        amount of $100,000 or less, (ii) 3 percent of the contract 
        amount in the case of a contract in an amount of more than 
        $100,000 and less than $5,000,000, and (iii) 5 percent of the 
        contract amount in the case of a contract in an amount of 
        $5,000,000 or more, if the contractor does not achieve the 
        percentage goal for the utilization of small business concerns 
        owned and controlled by socially and economically disadvantaged 
        individuals as set forth in the subcontracting plan.
            ``(B) The Federal agency awarding the contract shall 
        require the contractor to provide written justification to the 
        agency whenever the contractor, in performing the contract, 
        does not enter into a subcontract with, or substitutes another 
        subcontractor for, a specific small business concern identified 
        in the subcontracting plan.
    ``(13) The Administration shall establish a telephone line or other 
electronic means of communication through which any small business 
concern identified in a subcontracting plan by an offeror or bidder may 
communicate to the Administration any concerns regarding major 
deviations by prime contractors from the use of small business concerns 
as subcontractors under the prime contract as described in 
subcontracting plans.''.

SEC. 206. REQUIREMENT TO CONSIDER USE OF SMALL BUSINESS CONCERNS OWNED 
              AND CONTROLLED BY SOCIALLY AND ECONOMICALLY DISADVANTAGED 
              INDIVIDUALS WHEN CONSIDERING PAST COMPLIANCE WITH 
              SUBCONTRACTING PLANS.

    Paragraphs (4)(C) and (5)(B) of section 8(d) of the Small Business 
Act (15 U.S.C. 637(d)) are each amended in the second sentence by 
inserting ``, especially compliance with the goal set forth in such 
plans for the utilization of small business concerns owned and 
controlled by socially and economically disadvantaged individuals,'' 
after ``other such subcontracting plans''.

          TITLE III--EXTENSION OF BUSINESS STABILIZATION LOANS

SEC. 301. EXTENSION OF BUSINESS STABILIZATION LOANS.

    Section 506(j) of title V of division A of the American Recovery 
and Reinvestment Act of 2009 (Public Law 111-5; 123 Stat. 157) is 
amended by striking ``September 30, 2010'' and inserting ``September 
30, 2011''.

      DIVISION B--MINORITY BUSINESS DEVELOPMENT AGENCY PROVISIONS

          TITLE I--MINORITY BUSINESS DEVELOPMENT IMPROVEMENTS

SEC. 101. MINORITY BUSINESS DEVELOPMENT PROGRAM.

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

SEC. 102. 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 5 years and may not be renewed.

SEC. 103. 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.

SEC. 104. LOAN GUARANTEES.

    (a) In General.--Subject to subsection (b), the Director may 
guarantee up to 90 percent of the amount of a loan made to a qualified 
minority business to be used for business purposes, including the 
following:
            (1) Purchasing essential equipment.
            (2) Payroll expenses.
            (3) Purchasing facilities.
            (4) Renovating facilities.
    (b) Terms and Conditions.--
            (1) In general.--The Director may make guarantees under 
        this section for projects on such terms and conditions as the 
        Director determines appropriate, after consultation with the 
        Secretary of the Treasury, in accordance with this section.
            (2) Repayment.--No guarantee shall be made under this 
        section unless the Director determines that there is reasonable 
        prospect of repayment of the principal and interest on the 
        obligation by the borrower.
            (3) Defaults.--
                    (A) Payment by director.--
                            (i) In general.--If a borrower defaults on 
                        the obligation (as defined in regulations 
                        promulgated by the Director and specified in 
                        the guarantee contract), the holder of the 
                        guarantee shall have the right to demand 
                        payment of the unpaid amount from the Director.
                            (ii) Payment required.--Within such period 
                        as may be specified in the guarantee or related 
                        agreements, the Director shall pay to the 
                        holder of the guarantee the unpaid interest on, 
                        and unpaid principal of the obligation as to 
                        which the borrower has defaulted, unless the 
                        Director finds that there was no default by the 
                        borrower in the payment of interest or 
                        principal or that the default has been 
                        remedied.
                            (iii) Forbearance.--Nothing in this 
                        paragraph precludes any forbearance by the 
                        holder of the obligation for the benefit of the 
                        borrower which may be agreed upon by the 
                        parties to the obligation and approved by the 
                        Director.
                    (B) Subrogation.--
                            (i) In general.--If the Director makes a 
                        payment under subparagraph (A), the Director 
                        shall be subrogated to the rights of the 
                        recipient of the payment as specified in the 
                        guarantee or related agreements including, 
                        where appropriate, the authority 
                        (notwithstanding any other provision of law) 
                        to--
                                    (I) complete, maintain, operate, 
                                lease, or otherwise dispose of any 
                                property acquired pursuant to such 
                                guarantee or related agreements; or
                                    (II) permit the borrower, pursuant 
                                to an agreement with the Director, to 
                                continue to pursue the purposes of the 
                                project if the Director determines this 
                                to be in the public interest.
                            (ii) Superiority of rights.--The rights of 
                        the Director, with respect to any property 
                        acquired pursuant to a guarantee or related 
                        agreements, shall be superior to the rights of 
                        any other person with respect to the property.
                            (iii) Terms and conditions.--A guarantee 
                        agreement shall include such detailed terms and 
                        conditions as the Director determines 
                        appropriate to--
                                    (I) protect the interests of the 
                                United States in the case of default; 
                                and
                                    (II) have available all the patents 
                                and technology necessary for any person 
                                selected, including the Director, to 
                                complete and operate the project.
                    (C) Payment of principal and interest by 
                director.--With respect to any obligation guaranteed 
                under this section, the Director may enter into a 
                contract to pay, and pay, holders of the obligation, 
                for and on behalf of the borrower, from funds 
                appropriated for that purpose, the principal and 
                interest payments which become due and payable on the 
                unpaid balance of the obligation if the Director finds 
                that--
                            (i)(I) the borrower is unable to meet the 
                        payments and is not in default;
                            (II) it is in the public interest to permit 
                        the borrower to continue to pursue the purposes 
                        of the project; and
                            (III) the probable net benefit to the 
                        Federal Government in paying the principal and 
                        interest will be greater than that which would 
                        result in the event of a default;
                            (ii) the amount of the payment that the 
                        Director is authorized to pay shall be no 
                        greater than the amount of principal and 
                        interest that the borrower is obligated to pay 
                        under the agreement being guaranteed; and
                            (iii) the borrower agrees to reimburse the 
                        Director for the payment (including interest) 
                        on terms and conditions that are satisfactory 
                        to the Director.
                    (D) Action by attorney general.--
                            (i) Notification.--If the borrower defaults 
                        on an obligation, the Director shall notify the 
                        Attorney General of the default.
                            (ii) Recovery.--On notification, the 
                        Attorney General shall take such action as is 
                        appropriate to recover the unpaid principal and 
                        interest due from--
                                    (I) such assets of the defaulting 
                                borrower as are associated with the 
                                obligation; or
                                    (II) any other security pledged to 
                                secure the obligation.
            (4) Fees.--
                    (A) In general.--The Director shall charge and 
                collect fees for guarantees in amounts the Director 
                determines are sufficient to cover applicable 
                administrative expenses, not to exceed 1 percent of the 
                amount guaranteed.
                    (B) Availability.--Fees collected under this 
                paragraph shall--
                            (i) be deposited by the Director into the 
                        Treasury; and
                            (ii) remain available until expended, 
                        subject to such other conditions as are 
                        contained in annual appropriations Acts.
    (c) Credit Requirements.--To receive a loan guaranteed under this 
section a qualified minority business shall--
            (1) be in good standing with regard to the credit of that 
        business in the determination of the Director;
            (2) have received technical assistance under section 103; 
        and
            (3) submit reports, at such time, in such form, and 
        containing such information as the Director may require 
        regarding the credit of the business.
    (d) Limits on Guarantee Amounts.--
            (1) Maximum amount of guarantee.--The Director may not 
        guarantee more than $450,000 of any loan under this section.
            (2) Maximum gross loan amount.--A loan guaranteed under 
        this section may not be for a gross loan amount in excess of 
        $500,000.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to the Director not more than $500,000,000 to carry out 
this section during fiscal years 2011 through 2016.

SEC. 105. 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.

SEC. 106. TERMINATION FROM THE PROGRAM.

    The Director may terminate a qualified minority business from the 
Program for any violation of a requirement of sections 102 through 105 
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.

SEC. 107. REPORTS.

    (a) Report of the Director.--Not later than October 1, 2011, 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, 
2011, 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.

SEC. 108. 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, 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.

        TITLE II--MINORITY BUSINESS DEVELOPMENT AGENCY DATABASE

SEC. 201. MINORITY BUSINESS DEVELOPMENT AGENCY DATABASE.

    Not later than 90 days after the date of enactment of this Act, the 
National Director of the Minority Business Development Agency shall 
establish a database to assist prime contractors in identifying 
historically disadvantaged firms for subcontracting.

         DIVISION C--COMMUNITY ECONOMIC DEVELOPMENT PROVISIONS

  TITLE I--ENSURING JOB QUALITY AND ACCESS IN THE CONSTRUCTION SECTOR

SEC. 101. TARGETED HIRING REQUIREMENT FOR CERTAIN CONSTRUCTION JOBS.

    (a) Contracts Subject to This Section.--The requirements of this 
section shall apply to all contracts for construction and 
rehabilitation of facilities and infrastructure funded directly by or 
assisted in whole or in part by or through the Federal Government in 
fiscal year 2011.
    (b) Employment of Targeted Workers.--
            (1) Project work hours requirement.--The Secretary of Labor 
        shall establish a minimum percentage of construction work hours 
        to be performed by targeted workers for each contract subject 
        to this section in each labor market area.
            (2) Utilization of apprenticeship programs.--
                    (A) Contractor participation requirements.--Each 
                contractor and subcontractor that seeks to provide 
                construction services on contracts subject to this 
                section shall submit adequate assurances with its bid 
                or proposal that it participates in a qualified 
                apprenticeship program, with a written arrangement with 
                a qualified pre-apprenticeship program, as defined by 
                the Secretary of Labor, for each craft or trade 
                classification of worker that the contractor or 
                subcontractor intends to employ to perform work on the 
                project.
                    (B) Certification of other programs in certain 
                localities.--In the event that the Secretary of Labor 
                certifies that a qualified apprenticeship program (as 
                defined in subparagraph (A)) for a craft or trade 
                classification that a prospective contractor or 
                subcontractor intends to employ, is not operated in the 
                locality where the contract or subcontract will be 
                performed, an apprenticeship or other training program 
                that is not an employee welfare benefit plan (as 
                defined in such section) may be certified by the 
                Secretary as a qualified apprenticeship or other 
                training program provided it is registered with the 
                Department of Labor, Office of Apprenticeship, or a 
                State apprenticeship agency recognized by the Office of 
                Apprenticeship for Federal purposes.
                    (C) Apprentice utilization.--Each contractor and 
                subcontractor performing work on contracts subject to 
                this section shall employ apprentices or trainees 
                enrolled in qualified apprenticeship programs to the 
                maximum extent permitted in the program's written 
                standards, and shall submit adequate assurances that it 
                is not party to contractual agreements that preclude 
                its ability to meet the targeted hiring requirements 
                set forth in paragraph (1).
            (3) Definitions.--For purposes of this section--
                    (A) the term ``labor market area'' has the meaning 
                given such term in section 101(18) of the Workforce 
                Investment Act of 1998 (29 U.S.C. 2801(18));
                    (B) the term ``qualified apprenticeship program'' 
                means an apprenticeship or other training program that 
                qualifies as an ``employee welfare benefit plan'' as 
                defined in section 3(1) of the Employee Retirement 
                Income Security Act of 1974 (29 U.S.C. 1002(1)); and
                    (C) the term ``targeted workers'' means individuals 
                who reside in the same labor market area as the 
                applicable project and who--
                            (i)(I) are members of families that 
                        received a total income, that during the 2-year 
                        period prior to employment on the project or 
                        admission to the pre-apprenticeship program, 
                        did not exceed 200 percent of the Federal 
                        poverty guidelines (exclusive of unemployment 
                        compensation, child support payments, payments 
                        described in 29 United States Code section 
                        2801(25)(A), and old-age and survivors 
                        insurance benefits received under section 202 
                        of the Social Security Act (42 U.S.C. 402); and
                            (II) reside in a census tract in which not 
                        less than 20 percent of the households have 
                        income below the Federal poverty guidelines;
                            (ii) are members of a targeted group, 
                        within the meaning of section 51 of the 
                        Internal Revenue Code of 1986; or
                            (iii) qualify as ``displaced homemakers'' 
                        as such term is defined in section 3(10) of the 
                        Carl D. Perkins Career and Technical Education 
                        Act of 2006 (20 U.S.C. 2302(10)).
    (c) Facilitating Compliance and Project Efficiency.--In order to 
achieve the purposes of this section and to promote prompt completion 
of construction projects undertaken pursuant to this Act, the Secretary 
of Labor may require that contractors and subcontractors performing 
construction work under a contract subject to this section enter into 
an agreement consistent with the standards set forth in section 4 of 
Executive Order 13502 and the requirements of subsection (b)(1) of this 
section.
    (d) Implementation.--
            (1) In general.--No law or regulation governing the 
        operations or activities of any agency responsible for 
        implementing provisions of this section shall be interpreted to 
        prohibit Federal agencies, funding recipients, contractors, or 
        subcontractors, from advancing the purposes of this section 
        through additional project requirements or actions. The 
        Secretary of Labor shall be responsible for ensuring the 
        implementation and enforcement of this section, including 
        investigating noncompliance, and shall, not later than 180 days 
        after the date of enactment of this Act, adopt such rules, 
        regulations, and guidance, and issue such orders as the 
        Secretary determines necessary and appropriate to achieve the 
        purposes of this section.
            (2) Compliance.--In the event of material noncompliance 
        with this section by a recipient, contractor, or subcontractor, 
        the Secretary of Labor shall have the authority to assess and 
        collect penalties from such recipient, contractor, or 
        subcontractor of not more than 5 percent of the contract 
        amount. The Secretary shall allow for reduction or avoidance of 
        penalty assessments for non-compliance with the targeted hiring 
        requirements of subsection (b)(1) only where the entity in 
        question demonstrates that--
                    (A) compliance was impossible because of a shortage 
                of targeted workers in the local labor market; and
                    (B) the employer utilized all specified measures to 
                obtain targeted workers.
        The Secretary may specify measures required to be taken to 
        obtain targeted workers.
    (e) Dedicated Resources for Training and Recruitment.--In order to 
facilitate the objectives of this section, not less than 1 percent of 
any funds authorized and appropriated or otherwise allocated for 
construction for fiscal year 2011 shall be set aside to--
            (1) provide pre-apprenticeship training and other support 
        services through programs that have strong track records of 
        placing targeted workers into sustained employment in the 
        construction trades and that have written agreements with 
        qualified apprenticeship programs;
            (2) provide support to community-based organizations that 
        have written agreements with programs described in subsection 
        (b)(2) to participate in such programs by recruiting targeted 
        workers; or
            (3) provide support to contractors either--
                    (A) that are community-based nonprofit 
                organizations that both--
                            (i) have a governing body in which a 
                        majority the members qualify as targeted 
                        workers; and
                            (ii) have less than one million dollars in 
                        annual revenue from construction work of any 
                        type, or
                    (B) in which such a community-based nonprofit 
                organization has a 100 percent controlling interest for 
                work relating to such Act to meet the cost of 
                participating in apprenticeship programs.
    (f) Sense of Congress Regarding Participation of Socially and 
Economically Disadvantaged Businesses.--It is the sense of Congress 
that each agency responsible for implementing provisions relating to 
construction contracting and subcontracting in fiscal year 2011 should 
ensure that any regulation, policy, or funding disbursement made 
provides for the inclusive participation by socially and economically 
disadvantaged small business concerns, as defined under section 8(a) of 
the Small Business Act (15 U.S.C. 637(a)), including through bidding 
credits, program eligibility standards, and other means.

     TITLE II--2-YEAR EXTENSION OF NEW MARKETS TAX CREDIT NATIONAL 
                               LIMITATION

SEC. 201. 2-YEAR EXTENSION OF NEW MARKETS TAX CREDIT NATIONAL 
              LIMITATION.

    (a) In General.--Subparagraph (F) of section 45D(f)(1) of the 
Internal Revenue Code of 1986 is amended by striking ``2009'' and 
inserting ``2009, 2010, and 2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to investments made after December 31, 2009.

          TITLE III--EXTENSION OF EMPOWERMENT ZONE DESIGNATION

SEC. 301. EXTENSION OF EMPOWERMENT ZONE DESIGNATION.

    (a) In General.--Clause (i) of section 1391(d)(1)(A) of the 
Internal Revenue Code of 1986 is amended by striking ``December 31, 
2009'' and inserting ``December 31, 2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to areas with respect to which a designation under section 1391 of such 
Code is in effect on December 31, 2009.
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