Title: Minority Business Resiliency Act of 2020
Policy area: Commerce

Summary:
Minority Business Resiliency Act of 2020
This bill permanently authorizes the Minority Business Development Agency and provides funding for the agency to assist minority businesses affected by COVID-19 (i.e., coronavirus disease 2019).
The agency shall award grants to certain private, nonprofit organizations that (1) primarily provide services to minority businesses (e.g., education or making grants), and (2) are unable to pay financial obligations such as payroll. Such organizations must also be unable to engage in the same level of fundraising as the preceding year due to effects of COVID-19 . The agency must give priority to recipients that will use grant funds for purposes that include (1) providing paid sick leave to employees unable to work because of COVID-19, (2) making payroll payments to retain employees, or (3) repaying obligations they cannot satisfy because of revenue losses due to COVID-19.
The agency must also conduct outreach to its business center network to provide guidance regarding other federal programs that are available to support minority businesses. The head of the agency shall be a member of the interagency Small Business Procurement Advisory Council.
The agency must report on its activity and make recommendations for actions to promote its purposes, and the Government Accountability Office must review and report on the effectiveness of agency programs, any failure by a grant recipient to comply with its requirements, and recommendations for program improvement.
The amounts provided by the bill are designated as an emergency requirement pursuant to the Statutory Pay-As-You-Go Act of 2010 (PAYGO) and the Senate PAYGO rule.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6869 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 6869

To establish the Minority Business Development Agency of the Department 
of Commerce and to support the economic resilience of minority business 
          enterprises during and after the COVID-19 outbreak.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 14, 2020

Mr. Green of Texas introduced the following bill; which was referred to 
the Committee on Financial Services, and in addition to the Committees 
  on the Budget, and 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 the Minority Business Development Agency of the Department 
of Commerce and to support the economic resilience of minority business 
          enterprises during and after the COVID-19 outbreak.

    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 ``Minority Business Resiliency Act of 
2020''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Agency.--The term ``Agency'' means the Minority 
        Business Development Agency of the Department of Commerce.
            (2) Assistant secretary.--The term ``Assistant Secretary'' 
        means the Assistant Secretary of Commerce for Minority Business 
        Development.
            (3) Covered entity.--The term ``covered entity'' means a 
        private nonprofit organization that--
                    (A) is described in section 501(c)(3) of the 
                Internal Revenue Code of 1986 and exempt from tax under 
                section 501(a) of such Code;
                    (B) can demonstrate to the Agency that--
                            (i) the primary mission of the organization 
                        is to provide services to minority business 
                        enterprises, whether through education, making 
                        grants, or other similar activities; and
                            (ii) the organization is unable to pay 
                        financial obligations incurred by the 
                        organization, including payroll obligations; 
                        and
                    (C) due to the effects of COVID-19, is unable to 
                engage in the same level of fundraising in the year in 
                which this Act is enacted, as compared with the year 
                preceding the year in which this Act is enacted, 
                including through events or the collection of fees.
            (4) Minority business development center.--The term 
        ``minority business development center'' means a Business 
        Center of the Agency, including its Specialty Center Program.
            (5) Minority business enterprise.--The term ``minority 
        business enterprise'' means a for-profit business enterprise--
                    (A) that is not less than 51 percent-owned by 1 or 
                more socially disadvantaged individuals; and
                    (B) the management and daily business operations of 
                which are controlled by 1 or more socially 
                disadvantaged individuals.
            (6) Socially disadvantaged individual.--
                    (A) In general.--The term ``socially disadvantaged 
                individual'' means an individual who has been subjected 
                to racial or ethnic prejudice or cultural bias because 
                of the identity of the individual as a member of a 
                group, without regard to any individual quality of the 
                individual that is unrelated to that identity.
                    (B) Presumption.--In carrying out this Act, the 
                Agency shall presume that the term ``socially 
                disadvantaged individual'' includes any individual who 
                is--
                            (i) Black or African American;
                            (ii) Hispanic or Latino;
                            (iii) American Indian or Alaska Native;
                            (iv) Asian;
                            (v) Native Hawaiian or other Pacific 
                        Islander; or
                            (vi) a member of a group that the Agency 
                        determines under part 1400 of title 15, Code of 
                        Federal Regulations, as in effect on November 
                        23, 1984, is a socially disadvantaged group 
                        eligible to receive assistance.

SEC. 3. MINORITY BUSINESS DEVELOPMENT AGENCY.

    (a) Establishment.--The Minority Business Development Agency in the 
Department of Commerce is hereby established.
    (b) Assistant Secretary.--
            (1) Appointment and duties.--The Agency shall be headed by 
        an Assistant Secretary of Commerce for Minority Business 
        Development, who shall be--
                    (A) appointed by the President, by and with the 
                advice and consent of the Senate; and
                    (B) except as otherwise expressly provided, 
                responsible for the administration of this Act.
            (2) Compensation.--The Assistant Secretary shall be 
        compensated at an annual rate of basic pay prescribed for level 
        IV of the Executive Schedule under section 5315 of title 5, 
        United States Code.
    (c) Report to Congress.--Not later than 120 days after the date of 
enactment of this Act, the Secretary shall submit to Congress a report 
that describes--
            (1) the organizational structure of the Agency;
            (2) the organizational position of the Agency in the 
        Department of Commerce; and
            (3) a description of how the Agency shall function in 
        relation to the operations carried out by each other component 
        of the Department of Commerce.
    (d) Administrative Powers and Other Powers of the Agency; 
Miscellaneous Provisions.--
            (1) In general.--In carrying out the duties and the 
        responsibilities of the Agency, the Assistant Secretary may--
                    (A) adopt and use a seal for the Agency, which 
                shall be judicially noticed;
                    (B) hold hearings, sit and act, and take testimony 
                as the Assistant Secretary may determine to be 
                necessary or appropriate;
                    (C) acquire, in any lawful manner, any property 
                that the Assistant Secretary may determine to be 
                necessary or appropriate;
                    (D) make advance payments under grants, contracts, 
                and cooperative agreements awarded by the Agency;
                    (E) enter into agreements with other Federal 
                agencies;
                    (F) coordinate with the heads of the Offices of 
                Small and Disadvantaged Business Utilization of Federal 
                agencies;
                    (G) require a coordinated review of all training 
                and technical assistance activities that are proposed 
                to be carried out by Federal agencies in direct support 
                of the development of minority business enterprises 
                to--
                            (i) assure consistency with the purposes of 
                        this Act; and
                            (ii) avoid duplication of existing efforts; 
                        and
                    (H) prescribe such rules, regulations, and 
                procedures as the Agency may determine to be necessary 
                or appropriate.
            (2) Employment of certain experts and consultants.--
                    (A) In general.--The Assistant Secretary may employ 
                experts and consultants or organizations that are 
                composed of experts or consultants, as authorized under 
                section 3109 of title 5, United States Code.
                    (B) Renewal of contracts.--The Assistant Secretary 
                may annually renew a contract for employment of an 
                individual employed under subparagraph (A).
            (3) Donation of property.--
                    (A) In general.--Subject to subparagraph (B), the 
                Assistant Secretary may, without cost (except for costs 
                of care and handling), donate for use by any public 
                sector entity, or by any recipient nonprofit 
                organization, for the purpose of the development of 
                minority business enterprises, any real or tangible 
                personal property acquired by the Agency.
                    (B) Terms, conditions, reservations, and 
                restrictions.--The Assistant Secretary may impose 
                reasonable terms, conditions, reservations, and 
                restrictions upon the use of any property donated under 
                subparagraph (A).

SEC. 4. EMERGENCY GRANTS TO NONPROFITS THAT SUPPORT MINORITY BUSINESS 
              ENTERPRISES.

    (a) Purpose.--The purpose of this section is to make grants to 
covered entities in order to help those covered entities continue the 
necessary work of supporting minority business enterprises.
    (b) Establishment.--Not later than 15 days after the date of 
enactment of this Act, the Agency shall establish a grant program for 
covered entities in accordance with the requirements of this section, 
under which the Agency shall make grants to covered entities as 
expeditiously as possible.
    (c) Application.--
            (1) In general.--A covered entity desiring a grant under 
        this section shall submit to the Agency an application at such 
        time, in such manner, and containing such information as the 
        Agency may require.
            (2) Priority.--The Agency shall--
                    (A) establish selection criteria to ensure that, if 
                the amounts made available to carry out this section 
                are not sufficient to make a grant under this section 
                to every covered entity that submits an application 
                under paragraph (1), the covered entities that are the 
                most severely affected by the effects of COVID-19 
                receive priority with respect to those grants; and
                    (B) give priority with respect to the grants made 
                under this section to a covered entity that proposes to 
                use the grant funds for--
                            (i) providing paid sick leave to employees 
                        of the covered entity who are unable to work 
                        due to the direct effects of COVID-19;
                            (ii) continuing to make payroll payments in 
                        order to retain employees of the covered entity 
                        during an economic disruption with respect to 
                        COVID-19;
                            (iii) making rent or mortgage payments with 
                        respect to obligations of the covered entity; 
                        or
                            (iv) repaying non-Federal obligations that 
                        the covered entity cannot satisfy because of 
                        revenue losses that are attributable to the 
                        effects of COVID-19.
    (d) Amount of Grant.--
            (1) In general.--A grant made under this section shall be 
        in an amount that is not more than $300,000.
            (2) Single award.--No covered entity may receive, or 
        directly benefit from, more than 1 grant made under this 
        section.
    (e) Use of Funds.--A covered entity that receives a grant under 
this section may use the grant funds to address the effects of COVID-19 
on the covered entity, including by making payroll payments, making a 
transition to the provision of online services, and addressing issues 
raised by an inability to raise funds.
    (f) Procedures.--The Agency shall establish procedures to 
discourage and prevent waste, fraud, and abuse by applicants for, and 
recipients of, grants made under this section.
    (g) Penalties for Fraud and Misapplication of Funds.--An applicant 
for, or recipient of, a grant made under this section shall be subject 
to all applicable provisions of Federal law, including section 1001 of 
title 18, United States Code.
    (h) Non-duplication.--The Agency shall ensure that covered entities 
do not receive grants under both this section and section 1108 of the 
Coronavirus Aid, Relief, and Economic Security Act.
    (i) Inspector General Audit.--Not later than 180 days after the 
date on which the Agency begins making grants under this section, the 
Inspector General of the Department of Commerce shall--
            (1) conduct an audit of grants made under this section, 
        which shall seek to identify any discrepancies or 
        irregularities with respect to the grants; and
            (2) submit to Congress a report regarding the audit 
        conducted under paragraph (1).
    (j) Updates to Congress.--Not later than 30 days after the date of 
enactment of this Act, and once every 30 days thereafter until the date 
described in subsection (k), the Agency shall submit to Congress a 
report that contains--
            (1) the number of grants made under this section during the 
        period covered by the report; and
            (2) with respect to the grants described in paragraph (1), 
        the geographic distribution of those grants by State and 
        county.
    (k) Termination.--The authority to make grants under this section 
shall terminate on September 30, 2021.

SEC. 5. OUTREACH TO BUSINESS CENTERS.

    (a) In General.--Not later than 10 days after the date of enactment 
of this Act, the Agency shall conduct outreach to the business center 
network of the Agency to provide guidance to those centers regarding 
other Federal programs that are available to provide support to 
minority business enterprises, including programs at the Department of 
the Treasury, the Small Business Administration, and the Economic 
Development Administration of the Department of Commerce.
    (b) Additional Staff.--The Agency may hire additional staff to 
carry out the responsibilities of the Agency under subsection (a).
    (c) Outreach to Native Communities.--
            (1) In general.--In carrying out this section, the Agency 
        shall ensure that outreach is conducted in American Indian, 
        Alaska Native, and Native Hawaiian communities.
            (2) Direct outreach to certain minority business 
        enterprises.--If the Assistant Secretary determines that a 
        particular American Indian, Alaska Native, or Native Hawaiian 
        community does not receive sufficient grant amounts under 
        section 4 of this Act or section 1108 of the CARES Act, the 
        Assistant Secretary shall carry out additional outreach 
        directly to minority business enterprises located in that 
        community to provide guidance regarding Federal programs that 
        are available to provide support to minority business 
        enterprises.
    (d) Use of Appropriated Funds.--If, after carrying out this 
section, there are remaining funds made available to carry out this 
section from the amount appropriated under section 6, the Agency may 
use those remaining funds to carry out other responsibilities of the 
Agency under section 4.

SEC. 6. DIRECT APPROPRIATION.

    (a) In General.--There is appropriated to the Agency, in additional 
to any other amounts previously appropriated for the Agency and out of 
amounts in the Treasury not otherwise appropriated, for the fiscal year 
ending September 30, 2020, to remain available until September 30, 
2021, $60,000,000, of which--
            (1) $10,000,000 shall be for carrying out section 4 of this 
        Act;
            (2) $5,000,000 shall be for carrying out section 5 of this 
        Act; and
            (3) $10,000,000 shall be allocated to the White House 
        Initiative on Asian Americans and Pacific Islanders.
    (b) Emergency Designation.--
            (1) In general.--The amounts provided by this Act are 
        designated as an emergency requirement pursuant to section 4(g) 
        of the Statutory Pay-As-You-Go Act of 2010 (2 U.S.C. 933(g)).
            (2) Designation in senate.--In the Senate, this Act is 
        designated as an emergency requirement pursuant to section 
        4112(a) of H. Con. Res. 71 (115th Congress), the concurrent 
        resolution on the budget for fiscal year 2018.

SEC. 7. AUDITS.

    (a) Recordkeeping Requirement.--Each recipient of assistance under 
this Act shall keep such records as the Assistant Secretary shall 
prescribe, including records that fully disclose, with respect to the 
assistance received by the recipient under this Act--
            (1) the amount and nature of that assistance;
            (2) the disposition by the recipient of the proceeds of 
        that assistance;
            (3) the total cost of the undertaking for which the 
        assistance is given or used;
            (4) the amount and nature of the portion of the cost of the 
        undertaking described in paragraph (3) that is supplied by a 
        source other than the Agency; and
            (5) any other records that will facilitate an effective 
        audit of the assistance.
    (b) Access by Government Officials.--The Assistant Secretary, the 
Inspector General of the Department of Commerce, and the Comptroller 
General of the United States, or any duly authorized representative of 
any such individual, shall have access, for the purpose of audit, 
investigation, and examination, to any book, document, paper, record, 
or other material of a recipient of assistance.

SEC. 8. REVIEW AND REPORT BY COMPTROLLER GENERAL.

    Not later than 4 years after the date of enactment of this Act, the 
Comptroller General of the United States shall--
            (1) conduct a thorough review of the programs carried out 
        under this Act; and
            (2) submit to Congress a detailed report of the findings of 
        the Comptroller General of the United States under the review 
        carried out under paragraph (1), which shall include--
                    (A) an evaluation of the effectiveness of the 
                programs in achieving the purposes of this Act;
                    (B) a description of any failure by any recipient 
                of assistance under this Act to comply with the 
                requirements under this Act; and
                    (C) recommendations for any legislative or 
                administrative action that should be taken to improve 
                the achievement of the purposes of this Act.

SEC. 9. ANNUAL REPORTS; RECOMMENDATIONS.

    (a) Annual Report.--Not later than 90 days after the last day of 
each fiscal year, the Assistant Secretary shall submit to Congress, and 
publish on the website of the Agency, a report of each activity of the 
Agency carried out under this Act during the fiscal year preceding the 
date on which the report is submitted.
    (b) Recommendations.--The Assistant Secretary shall periodically 
submit to Congress and the President recommendations for legislation or 
other actions that the Assistant Secretary determines to be necessary 
or appropriate to promote the purposes of this Act.

SEC. 10. EXECUTIVE ORDER 11625.

    The powers and duties of the Agency shall be determined--
            (1) in accordance with this Act and the requirements of 
        this Act; and
            (2) without regard to Executive Order 11625 (36 Fed. Reg. 
        19967; relating to prescribing additional arrangements for 
        developing and coordinating a national program for minority 
        business enterprise).

SEC. 11. AMENDMENT TO THE FEDERAL ACQUISITION STREAMLINING ACT OF 1994.

    Section 7104(c) of the Federal Acquisition Streamlining Act of 1994 
(15 U.S.C. 644a(c)) is amended by striking paragraph (2) and inserting 
the following:
            ``(2) The Assistant Secretary of Commerce for Minority 
        Business Development.''.
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