I 
116TH CONGRESS 
1ST SESSION H. R. 1432 
To establish a Minority Business Development Administration in the Depart-
ment of Commerce, to clarify the relationship between such Administra-
tion and the Small Business Administration, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 28, 2019 
Mr. MCNERNEY (for himself, Ms. BARRAGA´N, Ms. JUDY CHU of California, 
Mr. RUSH, and Mr. YOUNG) introduced the following bill; which was re-
ferred to the Committee on Financial Services, and in addition to the 
Committee on Small Business, 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 a Minority Business Development Administra-
tion in the Department of Commerce, to clarify the rela-
tionship between such Administration and the Small 
Business Administration, 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. SHORT TITLE. 
This Act may be cited as the ‘‘Minority Business De-
velopment Act of 2019’’. 
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SEC. 2. FINDINGS AND PURPOSE. 
(a) FINDINGS.—The Congress finds that— 
(1) 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 individ-
uals and improve the functioning of our national 
economy; 
(2) many such individuals are socially disadvan-
taged because of their identification as members of 
certain groups that have suffered the effects of dis-
criminatory practices or similar invidious cir-
cumstances over which they have no control; 
(3) such groups include, but are not limited to, 
African Americans, Hispanic Americans, Native 
Americans, Asian Pacific Americans, Asian Indian 
Americans, and other minorities; 
(4) it is in the national interest to expeditiously 
ameliorate the conditions of socially and economi-
cally disadvantaged groups; 
(5) such conditions can be improved by pro-
viding the maximum practicable opportunity for the 
development of business concerns owned by members 
of socially and economically disadvantaged groups; 
(6) such opportunity cannot be fully realized 
unless the Federal Government secures the partici-
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pation and cooperation of the private sector in a 
joint effort to promote the development of business 
owned by disadvantaged individuals; 
(7) such effort will result in a more equitable 
share of productive resources being devoted to busi-
ness owned by the disadvantaged and will promote 
a balanced economy and increased competition; 
(8) 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 capac-
ity and reach of medium and large scale minority- 
owned firms; and 
(9) MBDA’s national network of business cen-
ters is critical to assisting minority-owned businesses 
gain access to capital, contracts, and new markets 
through public-private engagement. Therefore, Con-
gress must continue to invest in the MBDA business 
centers, as they provide direct services to minority- 
owned businesses. 
(b) PURPOSE.—It is, therefore, the purpose of this 
Act to— 
(1) establish an Administration within the De-
partment of Commerce which will promote and ad-
minister programs in the private and public sectors 
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to assist the development of business owned by the 
disadvantaged; and 
(2) achieve such development through the con-
duct of programs which will result in increased ac-
cess to skilled labor, capital, management, and tech-
nology by such business. 
SEC. 3. DEFINITIONS. 
As used in this Act the following terms have the fol-
lowing meanings: 
(1) The term ‘‘Secretary’’ means the Secretary 
of Commerce. 
(2) 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, Amer-
ican Samoa, and the Commonwealth of the Northern 
Mariana Islands. 
(3) The terms ‘‘socially and economically dis-
advantaged 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 
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individuals; and whose management and daily busi-
ness operations are controlled by one or more of 
such individuals. 
(4) The term ‘‘socially disadvantaged individ-
uals’’ 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. 
(5)(A) The term ‘‘economically disadvantaged 
individuals’’ means those socially disadvantaged indi-
viduals whose ability to compete in the free enter-
prise system has been impaired due to diminished 
capital and credit opportunities as compared to oth-
ers in the same business area that are not socially 
disadvantaged. 
(B) The Assistant Secretary shall presume that 
socially and economically disadvantaged individuals 
include Black Americans, Hispanic Americans, Na-
tive Americans, Asian Pacific Americans, Asian In-
dian Americans, individuals found to be disadvan-
taged by the Small Business Administration pursu-
ant 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 
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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. 
(6) The term ‘‘Administration’’ means the Mi-
nority Business Development Administration estab-
lished by this Act. 
(7) The term ‘‘Assistant Secretary’’ means the 
Assistant Secretary of the Minority Business Devel-
opment Administration. 
(8) The term ‘‘agency’’ means any executive 
agency as defined in section 105 of title 5, United 
States Code, and the military departments as de-
fined by section 102 of title 5, United States Code. 
(9) The term ‘‘public sector’’ means any State, 
State agency, political subdivision of a State, or 
agency of such a political subdivision. 
(10) The term ‘‘private sector’’ means any enti-
ty which is not in the public sector excluding the 
Federal Government and its agencies and instru-
mentalities. 
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SEC. 4. MINORITY BUSINESS DEVELOPMENT ADMINISTRA-
TION. 
(a) ESTABLISHMENT.—The Minority Business Devel-
opment 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 ap-
pointed by the President, by and with the advice and con-
sent of the Senate. The Assistant Secretary shall be com-
pensated 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. 
(b) MBDA BUSINESS
CENTERS.—The Minority 
Business Development Administration is directed to allo-
cate 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 Busi-
ness Development Administration. 
(c) 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— 
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(1) the organizational structure established 
within the Administration; 
(2) the organizational position of the Adminis-
tration within the Department of Commerce; and 
(3) a description of how the Administration 
shall function in relation to the operations of other 
agencies within the Department. 
TITLE I—MARKET 
DEVELOPMENT 
SEC. 101. PRIVATE SECTOR DEVELOPMENT. 
(a) DUTIES OF THE ADMINISTRATION.—It shall be 
the duty of the Administration and it is hereby empow-
ered, whenever it determines such action is necessary or 
appropriate— 
(1) to assist disadvantaged business concerns 
penetrate domestic and foreign markets by making 
available to such concerns, either directly or in co-
operation with private sector organizations, manage-
ment, and technological assistance, a skilled labor 
pool, and financial and marketing services; and 
(2) to encourage disadvantaged firms to estab-
lish joint ventures and projects either among them-
selves or in cooperation with public or private sector 
organizations for the purpose of increasing the share 
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of any market activity now being performed by dis-
advantaged business. 
(b) JOINT PROGRAMS PERMITTED.—For purposes of 
subsection (a)(2): 
(1) The Assistant Secretary may, after con-
sultation with the Attorney General and the Chair-
man of the Federal Trade Commission, and with the 
prior written approval of the Attorney General, ap-
prove any agreement between such disadvantaged 
firms or public or private sector organizations pro-
viding for a joint program for market development 
if the Assistant Secretary finds that the joint pro-
gram proposed will maintain and strengthen the free 
enterprise system and the economy of the Nation. 
The Assistant Secretary or the Attorney General 
may at any time withdraw approval of the agree-
ment and the joint program for market development 
covered thereby, 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 enter-
prise system and the economy of the Nation. A copy 
of the statement of any such finding and approval 
intended to be within the coverage of this paragraph, 
and a copy of any modification or withdrawal of ap-
proval, shall be published in the Federal Register. 
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The authority conferred by this on the Assistant 
Secretary shall not be delegated. 
(2) No act or omission to act, pursuant to and 
within the scope of any joint program for market de-
velopment under an agreement approved by the As-
sistant Secretary under this subsection, shall be con-
strued to be within the prohibitions of the antitrust 
laws or the Federal Trade Commission Act. Upon 
publication in the Federal Register of the notice of 
withdrawal of his approval of the agreement granted 
under this paragraph, either by the Assistant Sec-
retary or by the Attorney General, the provisions of 
this paragraph shall not apply to any subsequent act 
or omission to act. 
(c) REQUIREMENT
OF PARTICIPATION
OF SMALL 
BUSINESS CONCERN IN JOINT PROGRAM.—At least 1 
party to each agreement for a joint program for market 
development approved under subsection (b) shall be a 
small business concern, as defined pursuant to section 3 
of the Small Business Act (15 U.S.C. 632). If there are 
more than 2 parties to such an agreement, a majority of 
the parties shall be small business concerns. 
(d) FINANCIAL ASSISTANCE.—In order to carry out 
the purposes of this section, the Administration is hereby 
authorized to provide financial assistance in the form of 
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contracts, grants, or cooperative agreements to and with 
public and private sector organizations, including any as-
sociation, business firm, trade association, or business or-
ganization. No assistance may be provided under the au-
thority of this subsection if such assistance is primarily 
intended to facilitate the use by disadvantaged business 
of federally administered programs (not otherwise estab-
lished by this Act) unless the Assistant Secretary obtains 
the prior concurrence and written approval of the Small 
Business Administration. 
SEC. 102. PUBLIC SECTOR DEVELOPMENT. 
(a) DUTIES OF THE ADMINISTRATION.—It shall be 
the duty of the Administration and it is hereby empow-
ered, whenever it determines such action is necessary or 
appropriate— 
(1) 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 economy, including, but not be 
limited to, assisting such governments to establish— 
(A) procurement programs and goals for 
the utilization of disadvantaged business; 
(B) management and technological assist-
ance programs; 
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(C) financial and marketing assistance pro-
grams; 
(D) mobilization activities designed to at-
tract skilled labor for use by disadvantaged 
firms; and 
(E) an informational program designed to 
inform local disadvantaged business of the 
availability of programs conducted under the 
authority of this section; and 
(2) to convene meetings with leaders and offi-
cials of State and local governments for the purpose 
of recommending and promoting local administrative 
and legislative initiatives needed to advance the posi-
tion of disadvantaged business in the local economy. 
(b) FINANCIAL ASSISTANCE.—In order to carry out 
the purposes of subsection (a) the Administration is here-
by authorized to provide financial assistance to State and 
local governments in the form of contracts, grants, or co-
operative agreements. 
(c) PUBLICATIONS IN THE FEDERAL REGISTER.— 
(1) At least 120 days before the beginning of 
each fiscal year, 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 suc-
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ceeding fiscal year for grants, contracts, and cooper-
ative agreements planned to be awarded pursuant to 
this section. Such publication shall also identify the 
proposed allocation of funds between the several 
States (and cities within such States) and the exact 
methodology used by the Administration to make 
such proposed allocations. 
(2) At least 60 days prior to the beginning of 
each fiscal year, the Administration shall publish in 
the Federal Register its response to comments re-
ceived pursuant to paragraph (1) 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 (and cities within 
such States) for the immediately succeeding fiscal 
year. 
TITLE II—CAPITAL FORMATION 
SEC. 201. ACCESS TO EQUITY CAPITAL. 
The Securities and Exchange Commission shall con-
sult and cooperate with the Administration in an effort 
to promote access by disadvantaged business to securities 
markets and otherwise achieve the purposes of this title. 
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