Giving Disadvantaged Businesses Opportunities for Success Act
Bill: H.R.7866 | Sponsor: Rep. Garcia, Jesus G. "Chuy" (D-IL)
Policy area: Commerce

Summary:
Giving Disadvantaged Businesses Opportunities for Success Act
This bill revises the Department of Transportation Disadvantaged Business Enterprise program and Airport Concession Disadvantaged Business Enterprise program. The bill further aligns the size limits for small businesses eligible for the programs with the Small Business Administration's size standards.

To amend title 49, United States Code, and the Small Business Act to 
    direct the Department of Transportation and the Small Business 
    Administration to strengthen and advance certain disadvantaged 
                  businesses, 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.

    This Act may be cited as the ``Giving Disadvantaged Businesses 
Opportunities for Success Act''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Congressional findings on the importance of disadvantaged 
                            businesses.
Sec. 4. Definitions.
Sec. 5. Severability.
                 TITLE I--DEPARTMENT OF TRANSPORTATION

Sec. 101. Inflation adjustment to Department of Transportation net 
                            worth caps.
Sec. 102. Update to Department of Transportation Disadvantaged Business 
                            Enterprise and ACDBE size standards.
Sec. 103. Department of Transportation annual gross receipts timeline.
Sec. 104. Definition of assets under Department of Transportation 
                            personal net worth test.
Sec. 105. Additional funding for Department of Transportation minority 
                            resource center.
Sec. 106. Improvements to Department of Transportation Disadvantaged 
                            Business Enterprise and ACDBE mentor-
                            protege programs.
Sec. 107. Department of Transportation Disadvantaged Business 
                            Enterprise and ACDBE certification 
                            universal recognition.
Sec. 108. Incentives for excellence in Disadvantaged Business 
                            Enterprise programs and ACDBE programs.
Sec. 109. Reporting requirements and standards for waivers and 
                            exemptions.
Sec. 110. Advisory committee on disadvantaged business enterprises and 
                            ACDBEs.
                TITLE II--SMALL BUSINESS ADMINISTRATION

Sec. 201. Update to small business concern disadvantaged business net 
                            worth caps.
Sec. 202. Update to certain size standards under the Small Business 
                            Act.
Sec. 203. Annual gross receipts timeline under the Small Business Act.
Sec. 204. Definition of assets under the Small Business Act.
Sec. 205. Small business development center partnerships with the 
                            Department of Transportation.
Sec. 206. Small business development center partnerships with 
                            nonprofits.

SEC. 3. CONGRESSIONAL FINDINGS ON THE IMPORTANCE OF DISADVANTAGED 
              BUSINESSES.

    Congress finds the following:
            (1) While significant progress has occurred due to the 
        establishment of the Disadvantaged Business Enterprise program 
        of the Department of Transportation under section 11101(e) of 
        the Infrastructure Investment and Jobs Act (Public Law 117-58), 
        the ACDBE program of the Department of Transportation under 
        part 23 of title 49, Code of Federal Regulations, and the 
        Section 8(a) Business Development Program of the Small Business 
        Administration (established under section 8(a) of the Small 
        Business Act (15 U.S.C. 637)), discrimination and related 
        barriers continue to pose significant obstacles for minority- 
        and women-owned businesses seeking to do business in federally 
        assisted transportation markets across the United States and 
        through procurement contracts of Federal agencies.
            (2) The continuing barriers described in paragraph (1) 
        merit the continuation of the Disadvantaged Business Enterprise 
        program, the ACDBE program, and the Section 8(a) Business 
        Development Program.
            (3) Congress has received and reviewed testimony and 
        documentation of race and gender discrimination from numerous 
        sources, including congressional hearings and roundtables, 
        scientific reports, reports issued by public and private 
        agencies, news stories, reports of discrimination by 
        organizations and individuals, and discrimination lawsuits, 
        which show that race- and gender-neutral efforts alone are 
        insufficient to address the problem.
            (4) Some examples of the sources described in paragraph (3) 
        include the following:
                    (A) The hearing of the Committee on Transportation 
                and Infrastructure of the House of Representatives held 
                on September 23, 2020, titled ``Driving Equity: The 
                U.S. Department of Transportation's Disadvantaged 
                Business Enterprise Program''.
                    (B) The hearing of the Subcommittee on Contracting 
                and Infrastructure of the Committee on Small Business 
                of the House of Representatives held on March 2, 2022, 
                titled ``The 8(a) Program: Overview and Next Steps to 
                Promote Small Business Success''.
                    (C) The 2017 Disparity Study of the Illinois 
                Department of Transportation.
                    (D) The 2018 Disparity Study of the City of Denver.
            (5) The testimony and documentation described in paragraphs 
        (3) and (4) demonstrate that discrimination across the United 
        States poses a barrier to full and fair participation of women 
        business owners and minority business owners in federally 
        assisted transportation markets and through procurement 
        contracts of Federal agencies and has impacted the development 
        of such businesses.
            (6) The testimony and documentation described in paragraphs 
        (3) and (4) provide a strong basis that there is a compelling 
        need for the continuation of Disadvantaged Business Enterprise 
        program, the ACDBE program, and the Section 8(a) Business 
        Development Program to address race and gender discrimination 
        in federally assisted transportation markets and through 
        procurement contracts of Federal agencies.

SEC. 4. DEFINITIONS.

    In this Act:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Small Business Administration.
            (2) Airport concession disadvantaged business enterprise.--
        The terms ``Airport Concession Disadvantaged Business 
        Enterprise (ACDBE)'' and ``ACDBE'' have the meaning given the 
        term ``Airport Concession Disadvantaged Business Enterprise 
        (ACDBE)'' in part 23.3 of title 49, Code of Federal 
        Regulations.
            (3) Concerned operating administration.--The term 
        ``concerned operating administration'' has the meaning given 
        such term in part 26.5 of title 49, Code of Federal 
        Regulations.
            (4) Disadvantaged business enterprise.--The term 
        ``Disadvantaged Business Enterprise'' has the meaning given 
        such term in part 26.5 of title 49, Code of Federal 
        Regulations.
            (5) Disadvantaged business enterprise advisory committee.--
        The term ``Disadvantaged Business Enterprise Advisory 
        Committee'' means the committee established in section 110 of 
        this Act.
            (6) Prime contractor.--The term ``prime contractor'' has 
        the meaning given such term in section 8701(5) of title 41, 
        United States Code.
            (7) Recipient.--The term ``recipient'' has the meaning 
        given such term in parts 23.3 and 26.5 of title 49, Code of 
        Federal Regulations.
            (8) Secretary.--The term ``Secretary'' means the Secretary 
        of Transportation.
            (9) Small business development center.--The term ``small 
        business development center'' has the meaning given such term 
        in section 3 of the Small Business Act (15 U.S.C. 632).
            (10) Small business transportation resource center.--The 
        term ``small business transportation resource center'' means an 
        entity funded by the Office of Small and Disadvantaged Business 
        Utilization of the Department of Transportation that provides 
        an array of technical assistance to build the capacity of small 
        disadvantaged transportation businesses.

SEC. 5. SEVERABILITY.

    If any provision of this Act, an amendment made by this Act, or the 
application of such provision or amendment to any person or 
circumstance is held to be unconstitutional, the remainder of this Act 
and the amendments made by this Act, and the application of such 
remainder to any person or circumstance shall not be affected.

                 TITLE I--DEPARTMENT OF TRANSPORTATION

SEC. 101. INFLATION ADJUSTMENT TO DEPARTMENT OF TRANSPORTATION NET 
              WORTH CAPS.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Secretary of Transportation shall issue such 
regulations as are necessary to increase the personal net worth cap 
contained in parts 23 and 26 of title 49, Code of Federal Regulations, 
to account for any inflation that has occurred since the net worth cap 
under such parts was increased in the rule submitted by the Department 
of Transportation issued on January 28, 2011, titled ``Disadvantaged 
Business Enterprise: Program Improvements'' (76 Fed. Reg. 5083).
    (b) Parameters.--In carrying out subsection (a), the Secretary 
shall--
            (1) use the consumer price index published by the Bureau of 
        Labor Statistics as the inflation metric; and
            (2) account for any inflation that occurred in the time 
        period between the final effective date of the rule submitted 
        by the Department of Transportation issued on January 28, 2011, 
        titled ``Disadvantaged Business Enterprise: Program 
        Improvements'' (76 Fed. Reg. 5083) and the final effective date 
        of any rule issued pursuant to subsection (a).
    (c) Additional Inflation Adjustments.--The Secretary of 
Transportation shall issue such regulations as are necessary to update 
parts 23 and 26 of title 49, United States Code, to establish an 
interval in accordance with this section to make additional 
adjustments, after the adjustment under subsection (a), to the net 
worth caps for determining social and economic disadvantage for 
inflation.
    (d) Interval.--The interval for adjusting the net worth caps 
described in subsection (c) shall be the same annual interval that the 
Administrator adjusts the net worth caps for the Small Business 
Administration under section 201(b).
    (e) First Additional Adjustment.--The first additional inflation 
adjustment under subsection (c) shall occur at the same time the 
Administrator carries out the first adjustment under section 201(b)(1).
    (f) Metric.--The Secretary shall use the same inflation metric 
under subsection (c) that the Administrator chooses under section 
201(b).

SEC. 102. UPDATE TO DEPARTMENT OF TRANSPORTATION DISADVANTAGED BUSINESS 
              ENTERPRISE AND ACDBE SIZE STANDARDS.

    (a) Highways and Transit Small Business Concern Definition.--
Section 11101(e)(2)(A) of the Infrastructure Investment and Jobs Act 
(Public Law 117-58) is amended to read as follows:
                    ``(A) Small business concern.--The term `small 
                business concern' has the meaning given the term in 
                section 3 of the Small Business Act (15 U.S.C. 632).''.
    (b) Aviation Small Business Concern Definition.--Section 
47113(a)(1) of title 49, United States Code, is amended to read as 
follows:
            ``(1) `small business concern' has the meaning given the 
        term in section 3 of the Small Business Act (15 U.S.C. 632);''.
    (c) Rulemaking.--Not later than 1 year after the date of the 
enactment of this Act, the Secretary shall issue or amend such rules as 
are necessary to carry out the amendment made by this section.

SEC. 103. DEPARTMENT OF TRANSPORTATION ANNUAL GROSS RECEIPTS TIMELINE.

    (a) FHWA and FTA Gross Receipts Timeline.--Section 
11101(e)(2)(A)(ii) of the Infrastructure Investment and Jobs Act 
(Public Law 117-58) is amended by striking ``during the proceeding 3 
fiscal years'' and inserting ``during the proceeding 7 fiscal years''.
    (b) FAA Gross Receipts Timeline.--The Secretary of Transportation 
shall issue such regulations as are necessary to update the gross 
receipts timeline contained in part 23.33 of title 49, Code of Federal 
Regulations, from 3 years to 7 years for the purposes of a firm being 
certified as an ACDBE.
    (c) Effective Date.--The amendment in subsection (a) shall be 
treated as if such amended was included on the date of enactment of the 
Infrastructure Investment and Jobs Act (Public Law 117-58).
    (d) Rulemaking.--Not later than 1 year after the date of enactment 
of this Act, the Secretary shall issue such regulations as are 
necessary to carry out the amendment made by this section.

SEC. 104. DEFINITION OF ASSETS UNDER DEPARTMENT OF TRANSPORTATION 
              PERSONAL NET WORTH TEST.

    Not later than 1 year after the date of enactment of this Act, the 
Secretary of Transportation shall issue such regulations as are 
necessary to update the assets excluded in the personal net worth test 
contained in parts 23.3 and 26.67 of title 49, Code of Federal 
Regulations, to match the assets excluded in the computation of net 
worth under Section 8(a)(6)(E) of the Small Business Act (15 U.S.C. 
637(a)(6)(E)), as amended by section 204 of this Act.

SEC. 105. ADDITIONAL FUNDING FOR DEPARTMENT OF TRANSPORTATION MINORITY 
              RESOURCE CENTER.

    (a) Improvements to Minority Resource Center.--Section 332 of title 
49, United States Code, is amended--
            (1) in subsection (b)--
                    (A) in paragraph (6) by striking ``and'' at the 
                end;
                    (B) by redesignating paragraph (7) as paragraph 
                (8); and
                    (C) by inserting after paragraph (6) the following:
            ``(7) establish a goal of having a small business 
        transportation resource center in every State; and''; and
            (2) in subsection (e)(2) by striking ``such sums as may be 
        necessary for fiscal years 2005 through 2009'' and inserting 
        ``$25,000,000 for each of fiscal years 2023 through 2027''.
    (b) Use of Funding.--The Secretary shall use any additional funding 
appropriated under section 332 of title 49, United States Code, to--
            (1) establish additional small business transportation 
        resource centers with the goal of having 1 in each State; and
            (2) provide additional funding to existing small business 
        transportation resource centers to augment the activities of 
        the center so the center can reach more disadvantaged 
        businesses.

SEC. 106. IMPROVEMENTS TO DEPARTMENT OF TRANSPORTATION DISADVANTAGED 
              BUSINESS ENTERPRISE AND ACDBE MENTOR-PROTEGE PROGRAMS.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Secretary shall issue such regulations as are 
necessary to update parts 23 and 26.35 of title 49, Code of Federal 
Regulations (or a successor regulation) to require covered large 
recipients with Disadvantaged Business Enterprise programs or ACDBE 
programs to have a mentor-protege program.
    (b) Quality Control Standards.--Not later than 2 years after the 
date of enactment of this Act, the Secretary shall issue or update 
regulations regarding minimum quality standards or certain items that 
shall be included in mentor-protege programs in order for such programs 
to qualify under subsection (a), including--
            (1) ensuring that any mentor-protege program results in the 
        increase or success of a protege in--
                    (A) capital base, including--
                            (i) working capital;
                            (ii) depreciated value of equipment owned 
                        or leased;
                            (iii) payroll;
                            (iv) overhead;
                            (v) material expensed;
                            (vi) overhead expensed;
                            (vii) net profit; and
                            (viii) available credit;
                    (B) bonding limits, by job and in the aggregate;
                    (C) value of current and future work;
                    (D) success in getting profitable work outside any 
                government or other procurement program for small, 
                minority, women, or disadvantaged business enterprises;
                    (E) retention of reliable and productive employees;
                    (F) customer loyalty resulting in repeat business; 
                and
                    (G) any other area determined by the Secretary; and
            (2) ensuring that any mentorship-protege program 
        demonstrates overall success in--
                    (A) higher than average survival rate for proteges;
                    (B) continuous improvement in the financial 
                strength and bonding capacity of proteges;
                    (C) consistent success in meeting the objectives 
                included in each protege's individual business plan;
                    (D) a high rate of successful transition out of the 
                program; and
                    (E) any other area determined by the Secretary.
    (c) Auditing.--
            (1) In general.--The Secretary shall periodically audit the 
        mentor-protege programs of recipients to ensure such programs 
        are meeting the quality control standards set under subsection 
        (c).
            (2) Use of information.--The findings of the audits under 
        paragraph (1) shall inform any updates to the quality control 
        standards that the Secretary issues under this section.
    (d) Compliance.--In carrying out this section, the Secretary shall 
issue such regulations as are necessary to update parts 23 and 26 of 
title 49, Code of Federal Regulations, to make clear that a 
Disadvantaged Business Enterprise program or ACDBE program of a covered 
large recipient is not in compliance with this section unless such 
recipient's Disadvantaged Business Enterprise program or ACDBE program 
has the required mentor-protege program and such program complies with 
all requirements or regulations established by the concerned operating 
administration or Secretary, including any quality control standards 
established under subsection (c).
    (e) Authorization of Appropriations.--There is authorized to carry 
out this section $10,000,000 for each of fiscal years 2023 through 
2027, of which--
            (1) $3,000,000 for each fiscal year shall be for the 
        Secretary to carry out the quality control, auditing, and 
        compliance activities required under this section; and
            (2) $7,000,000 for each fiscal year shall be for the 
        Secretary to assist recipients with setting up, improving, and 
        carrying out mentor-protege programs.
    (f) Covered Large Recipients Defined.--In this section, the term 
``covered large recipients'' means--
            (1) a State department of Transportation;
            (2) large public transportation and regional transportation 
        agencies, as defined by the Secretary;
            (3) any recipient of airport funds authorized under section 
        47101 of title 49, United States Code, that operates a large 
        hub airport (as such term is defined in section 47102(11) of 
        title 49, United States Code); and
            (4) recipients that are similar in size and purpose to 
        recipients described in paragraphs (1) through (3), as 
        determined by the Secretary.

SEC. 107. DEPARTMENT OF TRANSPORTATION DISADVANTAGED BUSINESS 
              ENTERPRISE AND ACDBE CERTIFICATION UNIVERSAL RECOGNITION.

    (a) Universal Certification Recognition.--Not later than 2 years 
after the date of the enactment of this Act, the Secretary shall issue 
such regulations as are necessary to update parts 23 and 26 of title 
49, Code of Federal Regulations, (or a successor regulation) to require 
States and recipients to recognize a certification issued by another 
State to a business recognizing such business as a Disadvantaged 
Business Enterprise or an ACDBE without further procedures.
    (b) Certification Criteria.--In certifying a business as a 
Disadvantaged Business Enterprise or an ACDBE, a State shall meet any 
requirements that the Secretary establishes under section 11101(e)(5) 
of the Infrastructure Investment and Jobs Act (Public Law 117-58).
    (c) Secretary Authority.--The Secretary shall have the authority to 
regulate certain items or issue standards that any recipient's 
Disadvantaged Business Enterprise program or ACDBE program shall meet 
as part of universal certification recognition under this section, 
including--
            (1) the transportation contracts that a Disadvantaged 
        Business Enterprise or ACDBE shall have access to bid on once 
        such business obtains Disadvantaged Business Enterprise or 
        ACDBE certification;
            (2) any differences in the way a State a recipient treats a 
        home state Disadvantaged Business Enterprise or ACDBE versus an 
        out of State Disadvantaged Business Enterprise or ACDBE;
            (3) access to a State or recipient's resources and 
        information that an out of State Disadvantaged Business 
        Enterprise or ACDBE has access to once such business obtains a 
        Disadvantaged Business Enterprise or ACDBE certification; and
            (4) any other area the Secretary determines necessary to 
        ensure the success of universal certification recognition.
    (d) Auditing.--
            (1) In general.--The Secretary shall periodically audit 
        States and recipients to ensure that such States are 
        recognizing a certification issued by another State to a 
        business recognizing such business as a Disadvantaged Business 
        Enterprise or ACDBE without further procedures.
            (2) Use of information.--The findings of the audits under 
        paragraph (1) shall inform any updates to the regulations that 
        the Secretary issues under subsection (c).
    (e) Compliance.--In carrying out this section, the Secretary shall 
issue such regulations as are necessary to update parts 23 and 26 of 
title 49, Code of Federal Regulations, to make clear that a 
Disadvantaged Business Enterprise program or ACDBE program of a 
recipient is not in compliance with this section unless said 
recipient's Disadvantaged Business Enterprise program or ACDBE program 
recognizes a certification issued by another State to a business 
recognizing such business as a Disadvantaged Business Enterprise or 
ACDBE without further procedures and meets any standards established by 
the Secretary under subsection (c).

SEC. 108. INCENTIVES FOR EXCELLENCE IN DISADVANTAGED BUSINESS 
              ENTERPRISE PROGRAMS AND ACDBE PROGRAMS.

    (a) Establishment of Excellence Awards.--Not later than 1 year 
after the date of enactment of this Act, the Secretary shall establish 
an awards program that recognizes recipients that have excellent 
Disadvantaged Business Enterprise programs or ACDBE programs.
    (b) Annual Awards.--The Secretary shall on an annual basis review 
recipients' Disadvantaged Business Enterprise programs or ACDBE 
programs and recognize certain recipients that have excellent 
Disadvantaged Business Enterprise programs or ACDBE programs through 
the awards program under subsection (a).
    (c) Criteria for Awards.--In carrying out the awards program 
established under subsection (a), the Secretary shall consider the 
following criteria:
            (1) How high the Disadvantaged Business Enterprise or ACDBE 
        participation goal of the Disadvantaged Business Enterprise 
        program or ACDBE program is.
            (2) The success of the recipient in meeting and exceeding 
        participation goals described in paragraph (1).
            (3) How much successful growth a Disadvantaged Business 
        Enterprise or ACDBE in the program has.
            (4) To what extent and how well a Disadvantaged Business 
        Enterprise program or ACDBE program welcomes new Disadvantaged 
        Business Enterprises or ACDBEs.
            (5) How well a Disadvantaged Business Enterprise program or 
        ACDBE program assists all socially and economically 
        disadvantaged individuals in overcoming barriers to 
        participation.
            (6) The existence of and the quality of a mentor-protege 
        program.
            (7) Any other criteria the Secretary determines is integral 
        to an excellent Disadvantaged Business Enterprise program or 
        ACDBE program.
    (d) Adjusting Criteria.--The Secretary may adjust the criteria 
under subsection (c) to account for a recipient's size, type of 
business, geographic location, or any other characteristic the 
Secretary determines necessary.
    (e) Discretionary Grant Preference.--The Secretary shall provide 
preferences for discretionary grant funding awards to recipients that 
are recognized under subsections (a) and (b).
    (f) Notice of Funding Opportunities.--Notwithstanding any other 
provision of law or regulation, the Secretary shall ensure that any 
notice of funding opportunity or availability for discretionary grant 
funding issued by the Secretary contains the preferences under 
subsection (e).
    (g) Timing of Requirement.--Subsection (f) shall apply to any 
notice of funding opportunity or availability issued after the date of 
enactment of this Act.
    (h) Additional Incentives.--In addition to the grant preferences 
under subsection (e), the Secretary may provide additional incentives 
to recipients that are recognized under subsections (a) and (b).
    (i) Reporting.--The Secretary shall--
            (1) make available on the Department of Transportation's 
        website a list of recipients being recognized for excellent 
        Disadvantaged Business Enterprise or ACDBE programs under 
        subsection subsections (a) and (b);
            (2) include a rationale for why the Secretary is 
        recognizing the recipients described in paragraph (1);
            (3) provide information regarding the recipients' 
        Disadvantaged Business Enterprise or ACDBE programs, including 
        a link to the recipients' program website; and
            (4) annually update the information required under this 
        subsection.
    (j) Authorization of Appropriations.--There is authorized to carry 
out this section $2,000,000 for each of fiscal years 2023 through 2027.

SEC. 109. REPORTING REQUIREMENTS AND STANDARDS FOR WAIVERS AND 
              EXEMPTIONS.

    (a) Reporting Requirements.--Not later than 1 year after the date 
of enactment of this Act, the Secretary shall update parts 23 and 26 of 
title 49, Code of Federal Regulations, to require each concerned 
operating administration or model agency to annually report to the 
Secretary any waiver or exemption such administration or agency grants 
to a recipient from any requirement under parts 23 and 26 of title 49, 
Code of Federal Regulations.
    (b) Contents of Reports.--The reports under subsection (a) shall 
contain the following information:
            (1) The name of the recipient granted the waiver or 
        exemption.
            (2) The name of the concerned operating administration or 
        model agency that granted the waiver or exemption.
            (3) Any provision that the recipient received a waiver or 
        exemption from.
            (4) The reason the concerned operating administration or 
        model agency granted the waiver.
            (5) A description of the conditions in the recipient's 
        jurisdiction that made the situation appropriate to grant the 
        recipient's program proposal.
            (6) The duration of the waiver.
            (7) The public participation a recipient conducted in 
        developing such recipient's request, including any 
        consultations with the Disadvantaged Business Enterprise and 
        ACDBE communities.
            (8) Any other information the Secretary determines 
        necessary.
    (c) Posting on Website.--Not later than 90 days after the date on 
which a report is required to be filed under subsection (a), the 
Secretary shall in a full-text searchable, sortable, and downloadable 
format for access by the public--
            (1) make the reports submitted to the Secretary under 
        subsection (a) available on the website of the Department of 
        Transportation;
            (2) report the total number of waivers or exemptions that a 
        concerned operating administration or model agency granted that 
        year; and
            (3) report the total number of waivers or exemptions that a 
        recipient applied for or was granted that year.
    (d) Standards for Granting Waivers.--Not later than 2 years after 
the date of enactment of this Act, and every 5 years thereafter, the 
Secretary shall issue such regulations as may be necessary to update 
regulations regarding the standards for granting waivers or exemptions 
to a recipient from any requirement under parts 23 and 26 of title 49, 
Code of Federal Regulations, in order to minimize the improper granting 
of such waivers or exemptions.
    (e) Considerations.--In carrying out subsection (d), the Secretary 
shall consider--
            (1) creating a uniform list of reasons for granting waivers 
        or exemptions;
            (2) creating a uniform list of conditions in jurisdictions 
        that are appropriate for granting waivers or exemptions;
            (3) limiting the number of waivers or exemptions a 
        recipient can receive;
            (4) requiring a recipient to conduct more public hearings 
        and consultations with the Disadvantaged Business Enterprise 
        and ACDBE communities before a proposal for a waiver or 
        exemption can be granted; and
            (5) increasing the level of standard for which a 
        recipient's proposal must meet before concerned operating 
        administration or model agency will grant a waiver or exemption 
        to a recipient.
    (f) Auditing.--
            (1) In general.--The Secretary shall periodically audit 
        concerned operating administrations or model agencies to ensure 
        that such administrations or agencies are minimizing the 
        improper granting of waivers or exemptions to a recipient from 
        any requirement under parts 23 and 26 of title 49, Code of 
        Federal Regulations.
            (2) Use of information.--The findings of the audits under 
        paragraph (1) shall inform any updates to the regulations that 
        the Secretary issues or updates under subsection (d).
    (g) Authorization of Appropriations.--There is authorized to carry 
out this section $3,000,000 for each of fiscal years 2023 through 2027.

SEC. 110. ADVISORY COMMITTEE ON DISADVANTAGED BUSINESS ENTERPRISES AND 
              ACDBES.

    (a) Disadvantaged Business Enterprise and ACDBE Advisory 
Committee.--
            (1) Establishment.--Not later than 180 days after the date 
        of the enactment of this Act, the Secretary shall establish a 
        Disadvantaged Business Enterprise and ACDBE Advisory Committee 
        (in this section referred to as the ``Committee'').
            (2) Duties.--The duties of the Committee shall be to 
        provide a forum for stakeholders to discuss and make policy 
        recommendations to Congress with respect to advancing the 
        success of Disadvantage Business Enterprises and ACDBEs in the 
        transportation, infrastructure, construction, and building 
        industries.
            (3) Membership.--
                    (A) Voting members.--The Committee shall be 
                composed of the following voting members:
                            (i) The Secretary or the Secretary's 
                        designee.
                            (ii) The Administrator or the 
                        Administrator's designee.
                            (iii) A representative of State 
                        governments.
                            (iv) A representative of local governments.
                            (v) A representative of county governments.
                            (vi) A representative of State Departments 
                        of Transportation.
                            (vii) A representative of transit agencies.
                            (viii) A representative of airports.
                            (ix) A representative from the Conference 
                        of Minority Transportation Officials.
                            (x) Two individuals who have experience 
                        advocating for Disadvantaged Business 
                        Enterprises or ACDBEs.
                            (xi) Two or more representatives from 
                        Disadvantaged Business Enterprises or ACDBEs 
                        owned by persons of color.
                            (xii) Two or more representatives from 
                        Disadvantaged Business Enterprises or ACDBEs 
                        owned by women.
                    (B) Appointing authority.--The Secretary shall 
                appoint all members of the Committee, except for the 
                Administrator, who shall have a self-executing 
                appointment.
                    (C) Appointment replacement.--The Secretary shall 
                promptly appoint a replacement for any member whose 
                term has expired or who has resigned from the 
                Committee.
                    (D) Term length.--
                            (i) In general.--Each member, except for 
                        the Secretary or the Administrator, shall serve 
                        for an initial term of 4 years on the 
                        Committee.
                            (ii) Reappointment.--A member whose term 
                        has expired may be reappointed to the Committee 
                        for subsequent terms.
                    (E) Service continuation.--A member whose term has 
                expired may continue to serve until the Secretary has 
                appointed a replacement member.
                    (F) Non-voting members.--The Secretary may allow 
                additional interested stakeholders to attend and 
                participate in the activities of the Committee as non-
                voting members.
            (4) Meetings.--The Committee shall meet not less frequently 
        than--
                    (A) 4 times per year until the report under 
                paragraph (5) is submitted; and
                    (B) 2 times per year after such report is 
                submitted.
            (5) Report.--
                    (A) In general.--Not later than 2 years after the 
                establishment of the Committee, the Committee shall 
                submit to the Committee on Commerce, Science, and 
                Transportation of the Senate, the Committee on 
                Environment and Public Works of the Senate, the 
                Committee on Banking, Housing, and Urban Affairs of the 
                Senate, the Committee on Small Business and 
                Entrepreneurship of the Senate, the Committee on 
                Transportation and Infrastructure of the House of 
                Representatives, and the Committee on Small Business of 
                the House of Representatives a report that contains 
                recommendations, supported by at least a majority of 
                all voting members. Such report shall include 
                recommendations regarding--
                            (i) policy or regulatory changes to help 
                        increase the success of Disadvantaged Business 
                        Enterprises or ACDBEs in the transportation 
                        construction and building industries;
                            (ii) policy or regulatory changes to help 
                        increase the number of prime contractors that 
                        are Disadvantaged Business Enterprises or 
                        ACDBEs;
                            (iii) policy or regulatory changes to 
                        address the penalization that occurs when 
                        businesses owned by women or persons of color 
                        become too large to qualify as Disadvantaged 
                        Business Enterprises or ACDBEs;
                            (iv) policy or regulatory changes to 
                        address the structural and legacy barriers 
                        faced by women and persons of color in 
                        attempting to enter or succeed in the 
                        transportation, construction, and building 
                        industries;
                            (v) policy or regulatory changes to 
                        increase the access of Disadvantaged Business 
                        Enterprises or ACDBEs to financial capital and 
                        other necessary ancillary services to succeed; 
                        and
                            (vi) ways to make existing Federal 
                        technical assistance programs such as small 
                        business transportation resource centers, small 
                        business development centers, minority business 
                        development centers, and procurement technical 
                        assistance centers work better and reach more 
                        Disadvantaged Business Enterprises and ACDBEs.
                    (B) Dissenting views.--The report in subparagraph 
                (A) shall include a section allowing any dissenting 
                views and the dissent's rationale from the majority's 
                recommendations.
            (6) Additional reports.--After the submission of the report 
        under paragraph (5), the Committee shall, from time to time at 
        an appropriate time determined by the Committee, submit to the 
        Secretary and Congress subsequent reports that are consistent 
        with the duties of the Committee described in paragraph (2).
            (7) Compensation.--Members of the Committee shall serve 
        without compensation, but may be allowed travel expenses, 
        including per diem in lieu of subsistence, in accordance with 
        subchapter I of chapter 7 of title 5, United States Code.
            (8) Support.--The Secretary shall use the resources of the 
        Department of Transportation and the Office of the Secretary to 
        provide support to the Committee.
    (b) Termination.--The Committee shall terminate on the date that is 
5 years after the date on which the Committee is established under 
subsection (a).
    (c) Regulations.--The Secretary shall have the authority to issue 
or modify any regulations necessary to carry out subsection (a).
    (d) Conforming Amendment.--Sections 100501, 100502, and 100503 of 
the Infrastructure Investment and Jobs Act (Public Law 117-58) are 
repealed.

                TITLE II--SMALL BUSINESS ADMINISTRATION

SEC. 201. UPDATE TO SMALL BUSINESS CONCERN DISADVANTAGED BUSINESS NET 
              WORTH CAPS.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Administrator shall update part 124 of title 13, Code 
of Federal Regulations, with respect to the maximum net worth of an 
individual claiming economic disadvantage to be equal to the net worth 
cap established by the Secretary of Transportation under section 101.
    (b) Adjustment.--
            (1) Interval.--On the first January 1 that is 2 years after 
        the date the Administrator makes the update described in 
        subsection (a), and annually thereafter, the Administrator 
        shall adjust the maximum net worth described in subsection (a) 
        for inflation using a metric developed by the Administrator.
            (2) Metric.--In developing the metric described in 
        paragraph (1) to account for inflation, the Administrator 
        shall--
                    (A) consider using the Consumer Price Index 
                published by the Bureau of Labor Statistics in such 
                metric;
                    (B) solicit and consider the recommendations of the 
                Secretary of Transportation; and
                    (C) solicit and consider public comment on the 
                appropriate metric to use and whether such metric 
                should take into account regional variations in maximum 
                net worth.
            (3) Final rule on inflation metric.--Not later than 1 year 
        after the Administrator solicits public comment pursuant to 
        paragraph (2), the Administrator shall issue a final rule 
        describing the metric developed under this paragraph.
    (c) Report on Net Worth Variation.--
            (1) In general.--Not later than 2 years after the date of 
        the enactment of this Act, the Administrator shall submit to 
        the Committee on Small Business and Entrepreneurship of the 
        Senate and the Committee on Small Business of the House of 
        Representatives a report examining the feasibility of, and the 
        benefits and drawbacks of adjusting the maximum net worth under 
        subsection (a) for regional variations in maximum net worth.
            (2) Report requirements.--The report required under 
        paragraph (1) shall contain--
                    (A) an analysis of the feasibility of measuring 
                regional variations in maximum net worth;
                    (B) an examination of possible methods to measure 
                regional variations in maximum net worth;
                    (C) an examination of the efforts of other Federal 
                agencies to develop metrics on a regional basis and 
                whether such efforts could be applicable measuring 
                regional variations in maximum net worth;
                    (D) the benefits and costs of measuring regional 
                variations in maximum net worth; and
                    (E) a recommendation on whether or not the Small 
                Business Administration should measure regional 
                variations in maximum net worth.
            (3) Consultation.--In preparing the report required under 
        this paragraph, the Administrator shall consult with interested 
        persons, including--
                    (A) owners of socially and economically 
                disadvantaged small business concerns (as defined in 
                section 8(a)(4)(A) of the Small Business Act (15 U.S.C. 
                637(a)(4)(A)));
                    (B) owners of concern that would that would qualify 
                as a socially and economically disadvantaged small 
                business concern but for the maximum net worth 
                established in part 124 of title 13, Code of Federal 
                Regulations, as in effect on the date of the enactment 
                of this Act;
                    (C) other Federal agencies;
                    (D) State or local chambers of commerce or 
                equivalent organizations; and
                    (E) groups representing or advocating for owners of 
                socially and economically disadvantaged small business 
                concerns.

SEC. 202. UPDATE TO CERTAIN SIZE STANDARDS UNDER THE SMALL BUSINESS 
              ACT.

    (a) Certain Size Standards Review.--Not later than 1 year after the 
date of the enactment of this Act, the Administrator shall conduct a 
detailed review of the size standards for small business concerns 
established under section 3(a) of the Small Business Act (15 U.S.C. 
632(a)) and part 121 of title 13, Code of Federal Regulation (or a 
successor regulation), including a review of the the size standards 
methodology contained in ``Small Business Size Standards: Revised Size 
Standards Methodology'' (84 Fed. Reg. 14587 (April 11, 2019)), for 
concerns assigned a North American Industry Classification System code 
beginning with 23 or 48 and make the appropriate adjustments to the 
size standards for such concerns.
    (b) Consultation.--In carrying out the review described in 
subsection (a), the Administrator shall consult with interested 
persons, including--
            (1) owners of socially and economically disadvantaged small 
        business concerns (as defined in section 8(a)(4)(A) of the 
        Small Business Act (15 U.S.C. 637(a)(4)(A))) assigned a North 
        American Industry Classification System code beginning with 23 
        or 48;
            (2) owners of concerns in the industries assigned a North 
        American Industry Classification System code beginning with 23 
        or 48 that would qualify as a socially and economically 
        disadvantaged small business concern but for the size standards 
        established in part 121 of title 13, Code of Federal 
        Regulations, as in effect on the date of the enactment of this 
        Act;
            (3) the Secretary of Transportation;
            (4) groups representing or advocating for owners of 
        socially and economically disadvantaged small business concerns 
        in the industries covered by subsection (a);
            (5) groups representing construction businesses and 
        transportation and warehousing businesses; and
            (6) State or local chambers of commerce or equivalent 
        organizations.
    (c) Requirements.--In making an adjustment described in subsection 
(a), the Administrator shall--
            (1) presume that market conditions have changed as a result 
        of the increase in infrastructure spending in the 
        Infrastructure Investment and Jobs Act (Public Law 117-58); and
            (2) ensure that the size standards described in subsection 
        (a) are increased by an amount equal to at least 150 percent of 
        such size standards that are in effect on the date of the 
        enactment of this Act, unless the Administrator determines that 
        such action would jeopardize Federal assistance provided to 
        owners of socially and economically disadvantaged small 
        business concerns.
    (d) Report.--Not later than 30 days after the date on which the 
Administrator makes an adjustment under subsection (a), the 
Administrator shall submit to the Committee on Small Business and 
Entrepreneurship of the Senate and the Committee on Small Business of 
the House of Representatives, make publicly available, a report on the 
review, including--
            (1) information on the factors evaluated for each review 
        conducted under subsection (a);
            (2) a description of any adjustment made to each size 
        standard that was reviewed pursuant to subsection (a), 
        including any revisions made to size standard methodology 
        pursuant to subsection (a), and the rationale for that 
        adjustment; and
            (3) if the Administrator makes a determination to not 
        increase a size standard by an amount equal to at least 150 
        percent of such size standards that are in effect on the date 
        of the enactment of this Act (as described in subsection 
        (c)(2)), an explanation of the rationale for such 
        determination.

SEC. 203. ANNUAL GROSS RECEIPTS TIMELINE UNDER THE SMALL BUSINESS ACT.

    (a) Gross Receipts Timeline.--Section 3(a)(2)(C)(ii)(II) of the 
Small Business Act (15 U.S.C. 632(a)(2)(C)(ii)(II)) is amended by 
striking ``5 years'' and inserting ``7 years''.
    (b) Rulemaking.--Not later than 1 year after the date of the 
enactment of this Act, the Administrator shall issue or amend such 
rules as are necessary to carry out the amendment made by subsection 
(a).

SEC. 204. DEFINITION OF ASSETS UNDER THE SMALL BUSINESS ACT.

    (a) Definition of Assets.--Section 8(a)(6)(E) of the Small Business 
Act (15 U.S.C. 637(a)(6)(E)) is amended--
            (1) in clause (i), by striking the period at the end and 
        inserting a semicolon; and
            (2) by adding the following new clauses:
                            ``(iii) retirement savings accounts of 
                        disadvantaged owners;
                            ``(iv) investments in real estate other 
                        than primary personal residences of 
                        disadvantaged owners; and
                            ``(v) equity in businesses that are not 
                        certified under this subsection of 
                        disadvantaged owners.''.
    (b) Rulemaking.--Not later than 1 year after the date of the 
enactment of this Act, the Administrator shall issue or amend such 
rules as are necessary to carry out the amendments made by subsection 
(a).

SEC. 205. SMALL BUSINESS DEVELOPMENT CENTER PARTNERSHIPS WITH THE 
              DEPARTMENT OF TRANSPORTATION.

    (a) Establishment of Partnership.--Section 21(c)(3) of the Small 
Business Act (15 U.S.C. 648(c)(3)) is amended--
            (1) in subparagraph (T), by striking ``and'' at the end;
            (2) in clause (v) of the first subparagraph (U) (relating 
        to succession planning), by striking the period at the end and 
        inserting a semicolon;
            (3) in second subparagraph (U) (relating to training on 
        domestic and international intellectual property protections)--
                    (A) in clause (ii)(II), by striking the period at 
                the end and inserting a semicolon; and
                    (B) by redesignating such subparagraph as 
                subparagraph (V); and
            (4) by adding at the end the following new subparagraph:
                    ``(W) pursuant to a cooperative agreement entered 
                into under section 205 of the Giving Disadvantaged 
                Businesses Opportunities for Success Act, providing 
                assistance to Disadvantaged Business Enterprises (as 
                such term is defined in part 26.5 of title 49, Code of 
                Federal Regulations), Airport Concession Disadvantaged 
                Business Enterprises (as such term is defined in part 
                23.3 of such title 49), and small business concerns in 
                starting or expanding businesses in Federally assisted 
                surface transportation markets and obtaining the 
                necessary capital, financial, and business expertise 
                operate such business.''.
    (b) Cooperative Agreement.--Not later than one year after the date 
of the enactment of this Act, the Secretary and the Administrator shall 
enter into a cooperative agreement to allow Disadvantaged Business 
Enterprises and ACDBEs to have access to small business development 
centers in the State in which a Disadvantaged Business Enterprise or 
ACDBE, respectively, has its principal place of business.
    (c) Terms of Agreement.--The Secretary and Administrator shall 
determine the terms and conditions of the cooperative agreement 
required by subsection (a), which shall include the following:
            (1) The ways in which small business development centers 
        and small business transportation resource centers of the 
        Department of Transportation will formally partner to carry out 
        the cooperative agreement.
            (2) A process by which the Secretary may provide assistance 
        and expertise, including resources controlled by the Secretary 
        and small business transportation resource centers, to small 
        business development centers to carry out the agreement.
            (3) Access for Disadvantaged Business Enterprises to the 
        following assistance from small business development centers:
                    (A) Estimating.
                    (B) Bonding and insurance.
                    (C) Cash flow management.
                    (D) Project management.
                    (E) Assistance with pre-qualification applications 
                to be eligible to bid on contracts.
                    (F) Post contract award management.
                    (G) Any other area determined necessary by the 
                Administrator and Secretary.
            (4) Methods to encourage collaboration between small 
        business development centers and nonprofit organizations with 
        relevant transportation construction or Disadvantaged Business 
        Enterprises expertise.
    (d) DBE and ACDBE Programs.--The Secretary shall require each 
recipient with a Disadvantaged Business Enterprise program or ACDBE 
program certified by the Secretary under section 11101(e)(5)(A) of the 
Infrastructure Investment and Jobs Act (Public Law 117-58) or part 23 
of title 49, Code of Federal Regulations, to--
            (1) educate Disadvantaged Business Enterprises or ACDBEs 
        about available assistance from small business development 
        centers; and
            (2) upon request by the Administrator or a small business 
        development center, provide assistance and expertise to small 
        business development centers located in the same State as the 
        recipient.
    (e) Status Updates.--The Secretary and Administrator shall provide 
updates to the Committee on Transportation and Infrastructure and the 
Committee on Small Business of the House of Representatives and the 
Committee on Commerce, Science, and Transportation and the Committee on 
Small Business and Entrepreneurship of the Senate on the status of the 
cooperative agreement required under subsection (b) every 6 months 
beginning on the date of the enactment of this Act and ending on the 
date on which such agreement is finalized.
    (f) Compliance.--In carrying out the requirements under this 
section, the Secretary shall issue such regulations as are necessary to 
update parts 23 and 26 of title 49, Code of Federal Regulations, to 
clarify that a Disadvantaged Business Enterprise program or ACDBE 
program is not in compliance with this section unless the Disadvantaged 
Business Enterprise program or ACDBE program of such recipient has 
complied with the requirements in subsection (d).
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated, for each of fiscal years 2023 through 2027, to carry out 
the activities under the cooperative agreement required under 
subsection (b)--
            (1) $5,000,000 to the Secretary; and
            (2) $5,000,000 to the Administrator.

SEC. 206. SMALL BUSINESS DEVELOPMENT CENTER PARTNERSHIPS WITH 
              NONPROFITS.

    (a) Nonprofit Eligibility.--Section 21(a)(3) of the Small Business 
Act (15 U.S.C. 648(a)(3)) is amended--
            (1) in subparagraph (C), by inserting ``(including 
        nonprofit organizations)'' after ``private partnerships''; and
            (2) by adding at the end the following new subparagraphs:
            ``(D) Each small business development center shall develop 
        and implement a process under which a nonprofit organization 
        may apply at least once every 2 years to partner with such 
        small business development center to provide services, 
        expertise, or resources to enhance and expand the services of 
        such small business development center.
            ``(E) A small business development center may make a 
        subgrant or subaward of any Federal funds awarded to such small 
        business development center to a partner nonprofit organization 
        (as described in subparagraph (D)) to carry out activities of 
        the small business development center.''.
    (b) Rulemaking.--Not later than 2 years after the date of the 
enactment of this Act, the Administrator shall issue or amend such 
rules as are necessary to carry out the amendments made by subsection 
(a).
                                 <all>