Women and Minority Equity Investment Act of 2019

Bill: 116-s-1981
Sponsor: full_name: Sen. Cantwell, Maria [D-WA]
Introduced: 2019-06-26
Policy area: Commerce
Subjects: Administrative law and regulatory procedures

Business investment and capital

Minority and disadvantaged businesses

Public contracts and procurement

Small Business Administration

Small business

Women in business
Latest action: action_date: 2019-06-26
text: Read twice and referred to the Committee on Small Business and Entrepreneurship.

Summaries:
action_date: 2019-06-26
action_desc: Introduced in Senate
text: <p><b>Women and Minority Equity Investment Act of 2019</b></p> <p>This bill modifies eligibility requirements for Small Business Administration (SBA) contracting opportunities available to a woman- or minority-owned business.</p> <p>Currently, to be eligible for certain SBA programs, a woman or minority business owner must own an unconditional majority (at least 51%) of their business. However, the bill allows a woman- or minority-owned small business to maintain its contracting eligibility in the event a venture capital or private equity firm purchases an ownership stake in the business, so long as the purchasing enterprise is also owned by either a woman or minority. </p>

tv_txt: II 116th CONGRESS 1st Session S. 1981 IN THE SENATE OF THE UNITED STATES June 26, 2019 Ms. Cantwell (for herself and Mr. Rubio ) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship A BILL To modify the unconditional ownership requirement for women-owned and minority-owned small business concerns for purposes of procurement contracts with the Small Business Administration, and for other purposes.

1. Short title This Act may be cited as the Women and Minority Equity Investment Act of 2019 . 2. Modifying unconditional ownership requirement for women-owned and minority-owned small business concerns (a) In general Section 8 of the Small Business Act ( 15 U.S.C. 637 ) is amended— (1) in subsection (a)(4)— (A) in subparagraph (A), in the matter preceding clause (i), by striking For purposes and inserting Except as provided in subparagraph (C), for purposes ; (B) by redesignating subparagraph (C) as subparagraph (D); and (C) by inserting after subparagraph (B) the following: (C) For purposes of determining eligibility for an award under this subsection, the term socially and economically disadvantaged small concern includes any small business concern that meets the requirements of subparagraph (B) and— (i) for which less than 51 percent is unconditionally owned by 1 or more socially and economically disadvantaged individuals or by an entity described in subclause (II) or (III) of subparagraph (A)(i) because the small business concern— (I) is not more than 50 percent owned and controlled by 1 or more equity investment or venture capital firms; or (II) is not less than 51 percent owned and controlled by 1 or more equity investment or venture capital firms owned by 1 or more socially disadvantaged individuals or by an entity described in subclause (II) or (III) of subparagraph (A)(i); or (ii) in the case of any publicly owned business, for which less than 51 percent of the stock is unconditionally owned by 1 or more socially and economically disadvantaged individuals or by an entity described in subclause (II) or (III) of subparagraph (A)(ii) because the small business concern— (I) is not more than 50 percent owned and controlled by 1 or more equity investment or venture capital firms; or (II) is not less than 51 percent owned and controlled by 1 or more equity investment or venture capital firms owned by 1 or more socially disadvantaged individuals or by an entity described in subclause (II) or (III) of subparagraph (A)(ii); ; and (2) in subsection (m)(1), by striking subparagraph (B) and inserting the following: (B) Small business concern owned and controlled by women (i) In general The term small business concern owned and controlled by women — (I) has the meaning given the term in section 3(n); and (II) includes a small business concern described in subclause (I) for which less than 51 percent is unconditionally owned by 1 or more women because the small business concern— (aa) is not more than 50 percent owned and controlled by 1 or more equity investment or venture capital firms; or (bb) is not less than 51 percent owned and controlled by 1 or more equity investment or venture capital firms owned by women. (ii) Ownership For purposes of clause (i), ownership shall be determined without regard to any community property law. . (b) Regulations Not later than 1 year after the date of enactment of this Act, the Administrator of the Small Business Administration shall promulgate regulations to amend parts 124 and 127 of chapter I of title 13, Code of Federal Regulations, to carry out the amendments made by subsection (a).