49 U.S.C. § 47113 — Minority and disadvantaged business

Page 1618 TITLE 49—TRANSPORTATION § 47113 1303; Pub. L. 112–95, title I, § 139, Feb. 14, 2012, 126 Stat. 26; Pub. L. 115–254, div. B, title I, § 135, Oct. 5, 2018, 132 Stat. 3209.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 47112(a) ...... 49 App.:2214(a). Sept. 3, 1982, Pub. L. 97–248, § 515, 96 Stat. 691. 47112(b) ...... 49 App.:2214(b). 47112(c) ...... 49 App.:2214(c). In this section, the words ‘‘for an airport develop- ment project carried out under a grant agreement under this subchapter’’ are substituted for ‘‘on any project for airport development contained in an ap- proved project grant application submitted in accord- ance with this chapter’’ in 49 App.:2214(a), ‘‘on projects for airport development approved under this chapter’’ in 49 App.:2214(b), and ‘‘under project grants for airport development approved under this chapter’’ in 49 App.:2214(c) for clarity and consistency in this section. See H.R. Rept. No. 97–760, 97th Cong., 2d Sess., p. 715 (1982). In subsection (a), the words ‘‘or sponsors’’ are omit- ted because of 1:1. In subsection (b), the words ‘‘must require contrac- tors to pay labor minimum wage rates’’ are substituted for ‘‘shall contain provisions establishing minimum rates of wages . . . which contractors shall pay to skilled and unskilled labor’’ to eliminate unnecessary words. The word ‘‘proposals’’ is omitted as included in ‘‘bids’’. Subsection (c)(1)(A) is substituted for ‘‘a disabled vet- eran is an individual described in section 2108(2) of title 5’’ for consistency in the revised title and with other ti- tles of the Code. In subsection (c)(1)(B), the words ‘‘after August 4, 1964, and before May 8, 1975’’ are substituted for ‘‘during the period beginning August 5, 1964, and ending May 7, 1975’’ for consistency in the revised title and with other titles of the United States Code and to eliminate un- necessary words. In subsection (c)(2), the words ‘‘must require that’’ are substituted for ‘‘shall contain such provisions as are necessary to insure that’’, and the words ‘‘when they are available and qualified for the employment’’ are substituted for ‘‘However, this preference shall apply only where the individuals are available and qualified to perform the work to which the employ- ment relates’’, to eliminate unnecessary words. Editorial Notes AMENDMENTS 2018—Subsec. (c)(1)(C). Pub. L. 115–254 substituted ‘‘Operation New Dawn, Operation Inherent Resolve, Op- eration Freedom’s Sentinel, or any successor contin- gency operation to such operations for more’’ for ‘‘or Operation New Dawn for more’’ and ‘‘Operation New Dawn, Operation Inherent Resolve, Operation Free- dom’s Sentinel, or any successor contingency operation to such operations (whichever is later)’’ for ‘‘or Oper- ation New Dawn (whichever is later)’’. 2012—Subsec. (c)(1)(B). Pub. L. 112–95, § 139(1)(A), sub- stituted ‘‘discharged or released from active duty in’’ for ‘‘separated from’’. Subsec. (c)(1)(C), (D). Pub. L. 112–95, § 139(1)(B), added subpars. (C) and (D). Subsec. (c)(2). Pub. L. 112–95, § 139(2), substituted ‘‘Vietnam-era veterans, Persian Gulf veterans, Afghani- stan-Iraq war veterans, disabled veterans, and small business concerns (as defined in section 3 of the Small Business Act (15 U.S.C. 632)) owned and controlled by disabled veterans’’ for ‘‘Vietnam-era veterans and dis- abled veterans’’. 2002—Subsec. (b). Pub. L. 107–217 substituted ‘‘sec- tions 3141–3144, 3146, and 3147 of title 40’’ for ‘‘the Act of March 3, 1931 (known as the Davis-Bacon Act) (40 U.S.C. 276a—276a–5)’’. Statutory Notes and Related Subsidiaries PRIORITY REVIEW OF CONSTRUCTION PROJECTS IN COLD WEATHER STATES Pub. L. 115–254, div. B, title I, § 156(a), Oct. 5, 2018, 132 Stat. 3217, as amended by Pub. L. 118–63, title II, § 218(n)(1), May 16, 2024, 138 Stat. 1057, provided that: ‘‘The Administrator of the Federal Aviation Adminis- tration, to the extent practicable, shall schedule the Administrator’s review of construction projects so that projects to be carried out in the States in which the weather during a typical calendar year prevents major construction projects from being carried out before May 1 are reviewed as early as possible.’’ Pub. L. 112–95, title I, § 154, Feb. 14, 2012, 126 Stat. 35, which provided that the Administrator of the Federal Aviation Administration review as early as possible construction projects in States in which the weather prevents major projects from being carried out before May 1, was repealed by Pub. L. 115–254, div. B, title I, § 156(b), formerly § 156(c), Oct. 5, 2018, 132 Stat. 3218; re- numbered § 156(b), Pub. L. 118–63, title II, § 218(n)(2), May 16, 2024, 138 Stat. 1057. § 47113. Minority and disadvantaged business participation (a) DEFINITIONS.—In this section— (1) ‘‘small business concern’’— (A) has the meaning given the term in sec- tion 3 of the Small Business Act (15 U.S.C. 632); but (B) in the case of a concern in the con- struction industry, a concern shall be con- sidered a small business concern if the con- cern meets the size standard for the North American Industry Classification System Code 237310, as adjusted by the Small Busi- ness Administration; (2) ‘‘socially and economically disadvan- taged individual’’ has the same meaning given that term in section 8(d) of the Act (15 U.S.C. 637(d)) and relevant subcontracting regula- tions prescribed under section 8(d), except that women are presumed to be socially and eco- nomically disadvantaged; and (3) the term ‘‘qualified HUBZone small busi- ness concern’’ has the meaning given that term in section 31(b) of the Small Business Act. (b) GENERAL REQUIREMENT.—Except to the ex- tent the Secretary decides otherwise, at least 10 percent of amounts available in a fiscal year under section 48103 of this title shall be ex- pended with small business concerns owned and controlled by socially and economically dis- advantaged individuals or qualified HUBZone small business concerns. (c) UNIFORM CRITERIA.—The Secretary shall es- tablish minimum uniform criteria for State gov- ernments and airport sponsors to use in certi- fying whether a small business concern qualifies under this section. The criteria shall include on- site visits, personal interviews, licenses, anal- yses of stock ownership and bonding capacity, listings of equipment and work completed, re- sumes of principal owners, financial capacity, and type of work preferred. (d) SURVEYS AND LISTS.—Each State or airport sponsor annually shall survey and compile a list of small business concerns referred to in sub- section (b) of this section and the location of each concern in the State. Page 1619 TITLE 49—TRANSPORTATION § 47113 (e) MANDATORY TRAINING PROGRAM.— (1) IN GENERAL.—Not later than 1 year after the date of enactment of this subsection, the Secretary shall establish a mandatory train- ing program for persons described in para- graph (3) to provide streamlined training on certifying whether a small business concern qualifies as a small business concern owned and controlled by socially and economically disadvantaged individuals under this section and section 47107(e). (2) IMPLEMENTATION.—The training program may be implemented by one or more private entities approved by the Secretary. (3) PARTICIPANTS.—A person referred to in paragraph (1) is an official or agent of an air- port sponsor— (A) who is required to provide a written as- surance under this section or section 47107(e) that the airport owner or operator will meet the percentage goal of subsection (b) of this section or section 47107(e)(1), as the case may be; or (B) who is responsible for determining whether or not a small business concern qualifies as a small business concern owned and controlled by socially and economically disadvantaged individuals under this section or section 47107(e). (f) SUPPORTIVE SERVICES.— (1) IN GENERAL.—The Secretary, in coordina- tion with the Administrator of the Federal Aviation Administration, may, at the request of an airport sponsor, provide assistance under a grant issued under this subchapter to de- velop, conduct, and administer training pro- grams and assistance programs in connection with any airport improvement project subject to part 26 of title 49, Code of Federal Regula- tions, for small business concerns referred to in subsection (b) to achieve proficiency to compete, on an equal basis for contracts and subcontracts related to such projects. (2) ELIGIBLE ENTITIES.—An entity eligible to receive assistance under this section is— (A) a State; (B) a political subdivision of a State or local government; (C) a Tribal government; (D) an airport sponsor; (E) a metropolitan planning organization; (F) a group of entities described in sub- paragraphs (A) through (E); or (G) any other organization considered ap- propriate by the Secretary. (Pub. L. 103–272, § 1(e), July 5, 1994, 108 Stat. 1268; Pub. L. 103–429, § 6(65), Oct. 31, 1994, 108 Stat. 4386; Pub. L. 105–135, title VI, § 604(h)(2), Dec. 2, 1997, 111 Stat. 2635; Pub. L. 112–95, title I, § 140(b), Feb. 14, 2012, 126 Stat. 27; Pub. L. 115–91, div. A, title XVII, § 1701(a)(4)(G)(ii), Dec. 12, 2017, 131 Stat. 1796; Pub. L. 115–254, div. B, title I, § 150, title V, § 539(o), Oct. 5, 2018, 132 Stat. 3215, 3371; Pub. L. 118–63, title VII, § 730(b), May 16, 2024, 138 Stat. 1272.) HISTORICAL AND REVISION NOTES PUB. L. 103–272 Revised Section Source (U.S. Code) Source (Statutes at Large) 47113(a) ...... 49 App.:2204(d)(2). Sept. 3, 1982, Pub. L. 97–248, 96 Stat. 324, § 505(d); added Dec. 30, 1987, Pub. L. 100–223, § 105(f), 101 Stat. 1493; Oct. 31, 1992, Pub. L. 102–581, § 117(c), 106 Stat. 4883. 47113(b) ...... 49 App.:2204(d)(1). 47113(c) ...... 49 App.:2204(d)(4). 47113(d) ...... 49 App.:2204(d)(3). In subsection (a)(1)(B), the words ‘‘or individuals’’ are omitted because of 1:1. In subsection (a)(2), the reference is to section 8(c) of the Act because 15:637(d) was redesignated as 15:637(c) by section 3 of the Women’s Business Development Act of 1991 (Public Law 102–191, 105 Stat. 1591). In subsection (b), the words ‘‘beginning after Sep- tember 30, 1987’’ are omitted as obsolete. PUB. L. 103–429 This amends 49:47113(a)(2) to correct erroneous cross- references. Editorial Notes REFERENCES IN TEXT Section 31(b) of the Small Business Act, referred to in subsec. (a)(3), is classified to section 657a(b) of Title 15, Commerce and Trade. The date of enactment of this subsection, referred to in subsec. (e)(1), is the date of enactment of Pub. L. 112–95, which was approved Feb. 14, 2012. AMENDMENTS 2024—Subsec. (f). Pub. L. 118–63 added subsec. (f). 2018—Subsec. (a)(1). Pub. L. 115–254, § 150, amended par. (1) generally. Prior to amendment, par. (1) read as follows: ‘‘ ‘small business concern’— ‘‘(A) has the same meaning given that term in sec- tion 3 of the Small Business Act (15 U.S.C. 632); but ‘‘(B) does not include a concern, or group of con- cerns controlled by the same socially and economi- cally disadvantaged individual, that has average an- nual gross receipts over the prior 3 fiscal years of more than $16,015,000, as adjusted by the Secretary of Transportation for inflation;’’. Subsec. (a)(3). Pub. L. 115–254, § 539(o), substituted ‘‘(15 U.S.C. 632(p))’’ for ‘‘(15 U.S.C. 632(o))’’. 2017—Subsec. (a)(3). Pub. L. 115–91 substituted ‘‘sec- tion 31(b) of the Small Business Act’’ for ‘‘section 3(p) of the Small Business Act (15 U.S.C. 632(o))’’. 2012—Subsec. (e). Pub. L. 112–95 added subsec. (e). 1997—Subsec. (a). Pub. L. 105–135, § 604(h)(2)(A), sub- stituted semicolon for period at end of par. (1), sub- stituted ‘‘; and’’ for period at end of par. (2), and added par. (3). Subsec. (b). Pub. L. 105–135, § 604(h)(2)(B), inserted ‘‘or qualified HUBZone small business concerns’’ before pe- riod at end. 1994—Subsec. (a)(2). Pub. L. 103–429 substituted ‘‘8(d)’’ for ‘‘8(c)’’ in two places and ‘‘637(d))’’ for ‘‘637(c))’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2017 AMENDMENT Amendment by Pub. L. 115–91 effective Jan. 1, 2020, see section 1701(j) of Pub. L. 115–91, set out as a note under section 657a of Title 15, Commerce and Trade. EFFECTIVE DATE OF 1997 AMENDMENT Amendment by Pub. L. 105–135 effective Oct. 1, 1997, see section 3 of Pub. L. 105–135, set out as a note under section 631 of Title 15, Commerce and Trade. Page 1620 TITLE 49—TRANSPORTATION § 47114 EFFECTIVE DATE OF 1994 AMENDMENT Amendment by Pub. L. 103–429 effective July 5, 1994, see section 9 of Pub. L. 103–429, set out as a note under section 321 of this title. DISADVANTAGED BUSINESS ENTERPRISE PROGRAM Pub. L. 115–254, div. B, title I, § 157, Oct. 5, 2018, 132 Stat. 3218, as amended by Pub. L. 118–63, title VII, § 751, May 16, 2024, 138 Stat. 1284, provided that: ‘‘(a) FINDINGS.—Congress finds the following: ‘‘(1) While significant progress has occurred due to the establishment of the airport disadvantaged busi- ness enterprise program (sections 47107(e) and 47113 of title 49, United States Code), discrimination and re- lated barriers continue to pose significant obstacles for minority- and women-owned businesses seeking to do business in airport-related markets across the Na- tion. These continuing barriers merit the continu- ation of the airport disadvantaged business enterprise program. ‘‘(2) Congress has received and reviewed testimony and documentation of race and gender discrimination from numerous sources, including congressional hear- ings and roundtables, scientific reports, reports issued by public and private agencies, news stories, reports of discrimination by organizations and indi- viduals, and discrimination lawsuits. This testimony and documentation shows that race- and gender-neu- tral efforts alone are insufficient to address the prob- lem. ‘‘(3) This testimony and documentation dem- onstrates that discrimination across the Nation poses a barrier to full and fair participation in airport-re- lated businesses of women business owners and mi- nority business owners in the racial groups detailed in parts 23 and 26 of title 49, Code of Federal Regula- tions, and has impacted firm development and many aspects of airport-related business in the public and private markets. ‘‘(4) This testimony and documentation provides a strong basis that there is a compelling need for the continuation of the airport disadvantaged business enterprise [‘‘DBE’’] program and the airport conces- sions disadvantaged business enterprise [‘‘ACDBE’’] program to address race and gender discrimination in airport-related business. ‘‘(b) PROMPT PAYMENTS.— ‘‘(1) REPORTING OF COMPLAINTS.—Not later than 120 days after the date of enactment of this Act [Oct. 5, 2018], the Administrator of the Federal Aviation Ad- ministration shall ensure that each airport that par- ticipates in the Program tracks, and reports to the Administrator, the number of covered complaints made in relation to activities at that airport. ‘‘(2) IMPROVING COMPLIANCE.— ‘‘(A) IN GENERAL.—The Administrator shall take actions to assess and improve compliance with prompt payment requirements under part 26 of title 49, Code of Federal Regulations. ‘‘(B) CONTENTS OF ASSESSMENT.—In carrying out subparagraph (A), the Administrator shall assess— ‘‘(i) whether requirements relating to the inclu- sion of prompt payment language in contracts are being satisfied; ‘‘(ii) whether and how airports are enforcing prompt payment requirements; ‘‘(iii) the processes by which covered com- plaints are received and resolved by airports; ‘‘(iv) whether improvements need to be made to— ‘‘(I) better track covered complaints received by airports; and ‘‘(II) assist the resolution of covered com- plaints in a timely manner; ‘‘(v) whether changes to prime contractor speci- fications need to be made to ensure prompt pay- ments to subcontractors; and, ‘‘(vi) whether changes to prime contractor spec- ifications need to be made to ensure prompt pay- ment of retainage to subcontractors. ‘‘(C) REPORTING.—The Administrator shall make available to the public on an appropriate website operated by the Administrator a report describing the results of the assessment completed under this paragraph, including a plan to respond to such re- sults. ‘‘(D) PUBLISHING DATA.—The Secretary of Trans- portation shall report on a publicly accessible website the uniform report of DBE awards/commit- ments and payments specified in part 26 of title 49, Code of Federal Regulations, and the uniform re- port of ACDBE Participation for non-car rental and car rental concessions, for each airport sponsor be- ginning with fiscal year 2025. ‘‘(3) DEFINITIONS.—In this subsection, the following definitions apply: ‘‘(A) COVERED COMPLAINT.—The term ‘covered complaint’ means a complaint relating to an al- leged failure to satisfy a prompt payment require- ment under part 26 of title 49, Code of Federal Reg- ulations. ‘‘(B) PROGRAM.—The term ‘Program’ means the airport disadvantaged business enterprise program referenced in subsection (a)(1) [probably means sec- tion 140(a)(1)] of the FAA Modernization and Re- form Act of 2012 [Pub. L. 112–95] (49 U.S.C. 47113 note).’’ Pub. L. 112–95, title I, § 140(a), Feb. 14, 2012, 126 Stat. 27, provided that: ‘‘Congress finds the following: ‘‘(1) While significant progress has occurred due to the establishment of the airport disadvantaged busi- ness enterprise program (49 U.S.C. 47107(e) and 47113), discrimination and related barriers continue to pose significant obstacles for minority- and women-owned businesses seeking to do business in airport-related markets across the Nation. These continuing barriers merit the continuation of the airport disadvantaged business enterprise program. ‘‘(2) Congress has received and reviewed testimony and documentation of race and gender discrimination from numerous sources, including congressional hear- ings and roundtables, scientific reports, reports issued by public and private agencies, news stories, reports of discrimination by organizations and indi- viduals, and discrimination lawsuits. This testimony and documentation shows that race- and gender-neu- tral efforts alone are insufficient to address the prob- lem. ‘‘(3) This testimony and documentation dem- onstrates that discrimination across the Nation poses a barrier to full and fair participation in airport-re- lated businesses of women business owners and mi- nority business owners in the racial groups detailed in parts 23 and 26 of title 49, Code of Federal Regula- tions, and has impacted firm development and many aspects of airport-related business in the public and private markets. ‘‘(4) This testimony and documentation provides a strong basis that there is a compelling need for the continuation of the airport disadvantaged business enterprise program and the airport concessions dis- advantaged business enterprise program to address race and gender discrimination in airport-related business.’’ § 47114. Apportionments (a) DEFINITION.—In this section, ‘‘amount sub- ject to apportionment’’ means the amount newly made available under section 48103 of this title for a fiscal year. (b) APPORTIONMENT DATE.—On the first day of each fiscal year, the Secretary of Transpor- tation shall apportion the amount subject to ap- portionment for that fiscal year as provided in this section. (c) AMOUNTS APPORTIONED TO SPONSORS.— (1) PRIMARY AND COMMERCIAL SERVICE AIR- PORTS.—