Bill Summary
This legislation aims to strengthen and advance certain disadvantaged businesses by amending title 49, United States Code and the Small Business Act. It includes updates to size standards, funding for minority resource centers, and improvements to mentor-protege programs. The legislation also establishes an advisory committee and provides incentives for excellence in disadvantaged business enterprise programs. It also includes a table of contents and severability clause. Section 110 establishes an Advisory Committee on Disadvantaged Business Enterprises and ACDBEs, and Section 201 requires updates to regulations regarding maximum net worth for economic disadvantage. Section 202 requires a review of size standards for small businesses, and Section 203 extends the timeline for annual gross receipts. Section 110 also outlines requirements and an agreement between Small Business Development Centers and the Department of Transportation.
Possible Impacts
1) Disadvantaged business owners will have a higher net worth cap and updated size standards, allowing them more opportunities for success in the transportation industry. 2) Recipients of the Secretary's Excellence in Disadvantaged Business Enterprise program awards will receive preferences for discretionary grant funding. 3) The establishment of an Advisory Committee on Disadvantaged Business Enterprises and ACDBEs will provide a platform for stakeholder input and recommendations to Congress on advancing the success of disadvantaged businesses.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7866 Introduced in House (IH)]
<DOC>
117th CONGRESS
2d Session
H. R. 7866
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.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 24, 2022
Mr. Garcia of Illinois (for himself and Mr. Johnson of Georgia)
introduced the following bill; which was referred to the Committee on
Small Business, and in addition to the Committee on Transportation and
Infrastructure, 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 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).
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