I 
112TH CONGRESS 
1ST SESSION H. R. 2974 
To amend title 49, United States Code, to require that not less than 10 
percent of the amounts made available for certain high-speed rail projects 
be expended through small business concerns owned and controlled by 
socially and economically disadvantaged individuals, and for other pur-
poses. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 20, 2011 
Ms. MOORE (for herself and Ms. LEE of California) introduced the following 
bill; which was referred to the Committee on Transportation and Infra-
structure, and in addition to the Committee on Small Business, for a pe-
riod to be subsequently determined by the Speaker, in each case for con-
sideration of such provisions as fall within the jurisdiction of the com-
mittee concerned 
A BILL 
To amend title 49, United States Code, to require that 
not less than 10 percent of the amounts made available 
for certain high-speed rail projects be expended through 
small business concerns owned and controlled by socially 
and economically disadvantaged individuals, and for 
other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. FINDINGS. 
Congress finds the following: 
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(1) Encouraging the participation in Federal 
contracting of small businesses owned and controlled 
by socially and economically disadvantaged individ-
uals is in the Federal Government’s interest, helps 
spur competition and innovation, and supports com-
munity-level economic revitalization and entrepre-
neurship. 
(2) Small businesses are key engines of eco-
nomic growth, but they have had difficulties access-
ing Federal contracting and procurement opportuni-
ties and participating in federally funded projects, 
particularly in the area of transportation. 
(3) Congress has supported efforts to ensure 
that small businesses owned and controlled by so-
cially and economically disadvantaged individuals are 
regular participants in projects funded by agencies 
throughout the Federal Government. 
(4) The United States Department of Trans-
portation has used Disadvantaged Business Enter-
prise programs to ensure nondiscrimination in the 
award and administration of contracts by entities re-
ceiving funds through the Department’s highway, 
transit, and airport financial assistance programs. 
(5) Congress and the Department have also 
worked to ensure that— 
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(A) Disadvantaged Business Enterprise 
programs are narrowly tailored to provide a 
level playing field on which small businesses 
owned and controlled by socially and economi-
cally disadvantaged individuals can compete 
fairly for contracts awarded by entities receiv-
ing Department assistance; 
(B) only small businesses that meet the eli-
gibility requirements for Disadvantaged Busi-
ness Enterprise programs are permitted to par-
ticipate in such programs; 
(C) Disadvantaged Business Enterprise 
programs assist the development of small busi-
nesses that can compete successfully in the 
marketplace outside of such programs; and 
(D) recipients of Department assistance 
have appropriate flexibility in providing oppor-
tunities for small businesses owned and con-
trolled by socially and economically disadvan-
taged individuals. 
(6) Congress has supported efforts to encourage 
veteran-owned small businesses to participate in 
Federal contracting and procurement opportunities, 
including by creating and strengthening programs 
and institutions for veterans who own or operate 
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small businesses and requiring the President to es-
tablish an annual Government-wide goal of at least 
3 percent for the award of procurement contracts to 
small businesses owned by service-disabled veterans. 
SEC. 2. PARTICIPATION OF DISADVANTAGED BUSINESS EN-
TERPRISES IN HIGH-SPEED RAIL PROJECTS. 
(a) IN GENERAL.—Chapter 261 of title 49, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
‘‘§ 26107. Disadvantaged business enterprises 
‘‘(a) IN GENERAL.—Except as provided in subsection 
(b), not less than 10 percent of the amounts made avail-
able for any project under sections 26101 and 26106 shall 
be expended through small business concerns owned and 
controlled by socially and economically disadvantaged indi-
viduals. 
‘‘(b) EXCEPTION.— 
‘‘(1) DETERMINATION BY SECRETARY.—If the 
Secretary determines that the requirement of sub-
section (a) will prevent the satisfactory completion of 
a project described in such subsection because of a 
lack of competitive bids by small business concerns 
owned and controlled by socially and economically 
disadvantaged individuals, the Secretary may, with 
respect to such project, reduce the percentage stated 
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in such subsection to the extent necessary to ensure 
satisfactory completion of such project. 
‘‘(2) REPORT TO CONGRESS.—If the Secretary 
reduces the percentage as provided in paragraph (1), 
the Secretary shall submit to Congress a report de-
scribing the reduction and how the Secretary deter-
mined that the reduction was necessary to ensure 
satisfactory completion of the project involved. 
‘‘(c) UNIFORM CERTIFICATION CRITERIA.—The Sec-
retary shall establish minimum uniform criteria for a re-
cipient of funds under section 26101 or 26106 to use in 
certifying whether a small business concern qualifies for 
purposes of this section. Such minimum criteria shall in-
clude on-site visits, personal interviews, licenses, analysis 
of stock ownership, listing of equipment, analysis of bond-
ing capacity, listing of work completed, resume of prin-
cipal owners, financial capacity, and type of work pre-
ferred. 
‘‘(d) COMPLIANCE WITH COURT ORDERS.—Nothing 
in this section limits the eligibility of a person to receive 
funds made available under section 26101 or 26106 if the 
person is prevented, in whole or in part, from satisfying 
a requirement of this section because a Federal court 
issues a final order finding that such requirement is un-
constitutional. 
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‘‘(e) DEFINITIONS.—In this section, the following 
definitions apply: 
‘‘(1) SMALL
BUSINESS
CONCERN.—The term 
‘small business concern’ has the meaning given such 
term in section 3(a) of the Small Business Act (15 
U.S.C. 632(a)), except that such term does not in-
clude any concern, or group of concerns controlled 
by the same socially and economically disadvantaged 
individual or individuals, which has gross receipts 
over the preceding 3 fiscal years averaging in excess 
of $19,570,000 per year. The Secretary shall adjust 
annually for inflation the threshold amount in the 
preceding sentence. 
‘‘(2) SOCIALLY AND ECONOMICALLY DISADVAN-
TAGED INDIVIDUALS.—The term ‘socially and eco-
nomically disadvantaged individuals’ has the mean-
ing given such term in section 8(d)(3)(C) of the 
Small Business Act (15 U.S.C. 637(d)(3)(C)) and 
relevant subcontracting regulations issued under 
such Act, except that women shall be presumed to 
be socially and economically disadvantaged individ-
uals.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting 
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