HR10216-118

1. Short title This Act may be cited as the Ending Racism in Government Contracting Act.

2. Ending preferences for disadvantaged individuals and businesses in Government contracts The Small Business Act (15 U.S.C. 631 et seq.) is amended— in section 2 (15 U.S.C. 631)— by repealing subsection (f); and in subsection (h)(1)(H), by striking while not adversely affecting the rights of socially and economically disadvantaged individuals; in section 7 (15 U.S.C. 636)— in subsection (a)— in paragraph (15)(E)— in clause (i), by striking including the number of loans and all that follows through the end of the clause and inserting the following: including the number of loans made to cooperatives;; and in clause (ii), by striking including the number of financings and all that follows through the end of the clause and inserting the following: including the number of financings made to cooperatives; and; and in paragraph (36)(P)(iv), by striking small business concerns owned and controlled by socially and economically disadvantaged individuals (as defined in section 8(d)(3)(C)),; and in subsection (j)— in paragraph (11)(I)(iii), by striking and a distribution of concerns across all industry and all that follows through has been limited in the second sentence; and in paragraph (16)(B)(iii), by striking owned and controlled by other than socially and economically disadvantaged individuals; in section 8 (15 U.S.C. 637)— in subsection (a)— in paragraph (1)— in subparagraph (A), by inserting and after the semicolon at the end; by striking subparagraphs (B) and (C); and by redesignating subparagraph (D) as subparagraph (B); by repealing paragraphs (4) through (8); in paragraph (9)(B)— by striking clause (i); and by redesignating clauses (ii), (iii), and (iv) as clauses (i), (ii), and (iii), respectively; in paragraph (10), in the second sentence, by striking and from small disadvantaged business concerns in industry categories that have not substantially participated in the award of contracts let under the authority of this subsection; and in paragraph (12)— in subparagraph (A), by striking and Disadvantaged; in subparagraph (C), in the first sentence, by striking , including those owned and controlled by socially and economically disadvantaged individuals,; and in subparagraph (D)(i), by striking and Disadvantaged; in subsection (d)— in paragraph (1), by striking small business concerns owned and controlled by socially and economically disadvantaged individuals, each place that term appears; in paragraph (3)— in subparagraph (A), by striking small business concerns owned and controlled by socially and economically disadvantaged individuals, each place that term appears; by amending subparagraph (C) to read as follows: As used in this contract, the term small business concern shall mean a small business as defined pursuant to section 3 of the Small Business Act and relevant regulations promulgated pursuant thereto. in subparagraph (F), by striking a small business concern owned and controlled by socially and economically disadvantaged individuals,; in paragraph (4)— in subparagraph (D), by striking small business concerns owned and controlled by socially and economically disadvantaged individuals,; and in subparagraph (E), by striking small business concerns owned and controlled by the socially and economically disadvantaged individuals as defined in paragraph (3) of this subsection and for; in paragraph (6), by striking small business concerns owned and controlled by socially and economically disadvantaged individuals, each place that term appears; in paragraph (11)(B), by striking small business concerns owned and controlled by socially and economically disadvantaged individuals,; and in paragraph (13)(E)(i), by striking and Disadvantaged; and in subsection (m), by striking paragraphs (7) and (8); in section 9(j)(2)(F) (15 U.S.C. 638(j)(2)(F)), by striking socially and economically disadvantaged small business concerns, as defined in section 8(a)(4), and the participation of; in section 15 (15 U.S.C. 644)— in subsection (e)(1)(B), by striking and Disadvantaged; in subsection (g)— in paragraph (1)(A)— in the matter preceding clause (i), by striking small business concerns owned and controlled by socially and economically disadvantaged individuals,; by striking clause (iv); and by redesignating clause (v) as clause (iv); and in paragraph (2)— in subparagraph (A), by striking by small business concerns owned and controlled by socially and economically disadvantaged individuals,; in subparagraph (B), by striking small business concerns owned and controlled by socially and economically disadvantaged individuals,; in subparagraph (D), by striking small business concerns owned and controlled by socially and economically disadvantaged individuals,; and in subparagraph (F)(ii), by striking and Disadvantaged; in subsection (h)(2)(E)— by striking clause (iv); and by redesignating clauses (v) through (viii) as clauses (iv) through (vii), respectively; in subsection (k)— in the matter preceding paragraph (1), by striking and Disadvantaged; in paragraph (1), by striking and Disadvantaged; and in paragraph (2), by striking and Disadvantaged; in subsection (l)(2)(G), by striking and Disadvantaged; in subsection (s)(2)(A), by striking and Disadvantaged; and in subsection (y)— in paragraph (2), by striking small business concerns owned and controlled by socially and economically disadvantaged individuals, each place that term appears; in paragraph (3)(B), by striking small business concerns owned and controlled by socially and economically disadvantaged individuals,; and in paragraph (4), by striking subparagraph (D); in section 16 (15 U.S.C. 645)— in subsection (d)(1), in the matter preceding subparagraph (A), by striking a small business concern owned and controlled by socially and economically disadvantaged individuals,; in subsection (e), by striking a small business concern owned and controlled by socially and economically disadvantaged individuals,; and in subsection (g)(2), by striking and Disadvantaged; in section 21(a)(5)(D) (15 U.S.C. 648(a)(5)(D)), by striking small business, woman-owned business, or socially and economically disadvantaged business and inserting small business or woman-owned business; in section 22(l) (15 U.S.C. 649(l))— in paragraph (1)— in subparagraph (C), by inserting and at the end; by striking subparagraph (D); and by redesignating subparagraph (E) as subparagraph (D); and in paragraph (3)(B)(ii)— by striking subclause (I); and by redesignating subclauses (II) and (III) as subclauses (I) and (II), respectively; and in section 45(c)(1)(B) (15 U.S.C. 657r(c)(1)(B))— in clause (iii), by inserting or after the semicolon at the end; by striking clause (iv); and by redesignating clause (v) as clause (iv). The American Rescue Plan Act of 2021 (Public Law 117–2) is amended— in section 5003(c)(3)(A) (15 U.S.C. 9009c(c)(3)(A)), in the first sentence, by striking , small business concerns owned and controlled by veterans and all that follows through the period at the end and inserting the following: or small business concerns owned and controlled by veterans (as defined in section 3(q) of that Act (15 U.S.C. 632(q))).; and in section 5004(a) (15 U.S.C. 9013(a)), by amending paragraph (5) to read as follows: The term eligible business means any small business concern, with priority for small business concerns owned and controlled by women (as defined in section 3(n) of the Small Business Act (15 U.S.C. 632(n))) and small business concerns owned and controlled by veterans (as defined in section 3(q) of that Act (15 U.S.C. 632(q))). Section 155 of the Small Business Reauthorization and Manufacturing Assistance Act of 2004 (15 U.S.C. 657g) is repealed. Section 7104 of the Federal Acquisition Streamlining Act of 1994 (15 U.S.C. 644a) is amended— in subsection (b)(3), by striking and Disadvantaged; and in subsection (c)(3), by striking and Disadvantaged. The Minority Business Development Act of 2021 (15 U.S.C. 9521 et seq.) is repealed. Section 303(e) of the Small Business Economic Policy Act of 1980 (15 U.S.C. 631b(e)) is amended— by striking paragraph (1); and by redesignating paragraph (2), the first paragraph (3) (relating to qualified HUBZone small business concerns), and the second paragraph (3) (relating to small business concerns owned and controlled by veterans) as paragraphs (1), (2), and (3), respectively. Section 411(c)(3)(B) of the Small Business Investment Act of 1958 (15 U.S.C. 694b(c)(3)(B)) is amended by striking a small business concern owned and controlled by socially and economically disadvantaged individuals as defined by section 8(d) of the Small Business Act, or to. Section 6001(h) of the American Recovery and Reinvestment Act of 2009 (47 U.S.C. 1305(h)) is amended— in paragraph (1), by inserting and after the semicolon; in paragraph (2)(D), by striking ; and and inserting a period; and by striking paragraph (3). Title I of the CARES Act (15 U.S.C. 9001 et seq.) is amended— in section 1107(a) (15 U.S.C. 9006(a)), by repealing paragraph (5); and by repealing section 1108 (15 U.S.C. 9007). Section 3021 of the Energy Policy Act of 1992 (42 U.S.C. 13556) is amended— in subsection (a)— by striking paragraph (1); and by redesignating paragraphs (2), (3), and (4) as paragraphs (1), (2), and (3), respectively; and in subsection (b)— by striking paragraph (2); and by redesignating paragraph (3) as paragraph (2). Section 1003(a)(1) of the Energy Policy Act of 2005 (42 U.S.C. 16393(a)(1)) is amended by striking , including socially and economically disadvantaged small business concerns (as defined in section 8(a)(4) of the Small Business Act (15 U.S.C. 637(a)(4))),. The Export-Import Bank Act of 1945 (12 U.S.C. 635 et seq.) is amended— in section 2(b)(1)(E)(iii)(II) (12 U.S.C. 635(b)(1)(E)(iii)(II)), by striking to socially and economically disadvantaged small business concerns (as defined in section 8(a)(4) of the Small Business Act), small business concerns (as defined in section 3(a) of the Small Business Act) owned by women, and and inserting the following: to small business concerns (as defined in section 3(a) of the Small Business Act (15 U.S.C. 632(a))) owned by women and; in section 3(i)(1) (12 U.S.C. 635a(i)(1)), by striking socially and economically disadvantaged small business concerns (as defined in section 8(a)(4) of the Small Business Act) and; and in section 8 (12 U.S.C. 635g)— in subsection (e), by striking socially and economically disadvantaged small business concerns (as defined in section 8(a)(4) of the Small Business Act), small business concerns (as defined in section 3(a) of the Small Business Act) owned by women, and and inserting small business concerns small business concerns (as defined in section 3(a) of the Small Business Act (15 U.S.C. 632(a))) owned by women and; and in subsection (f)(4), by striking socially and economically disadvantaged small business concerns (defined in section 8(a)(4) of the Small Business Act) and. Section 7104(c) of the Federal Acquisition Streamlining Act of 1994 (15 U.S.C. 644a(c)) is amended— by striking paragraph (2); and by redesignating paragraph (3) as paragraph (2). Section 7(j) of the Small Business Act (15 U.S.C. 636(j)) is amended— in paragraph (10)(D)(i), by striking and shall be designed to result in the Program Participant eliminating the conditions or circumstances upon which the Administration determined eligibility pursuant to section 8(a)(6); and in paragraph (11)— by striking subparagraph (B); by redesignating subparagraphs (C) through (I) as subparagraphs (B) through (H), respectively; in subparagraph (C), as so redesignated, by striking (as defined pursuant to section 8(a)(4)); and in subparagraph (E), as so redesignated— by striking clause (i); and by redesignating clauses (ii) through (viii) as clauses (i) through (vii), respectively. Title III of the Small Business Jobs Act of 2010 (12 U.S.C. 5701 et seq.) is amended— in section 3002 (12 U.S.C. 5701)— by striking paragraph (18); and by redesignating paragraph (19) as paragraph (18); in section 3003 (12 U.S.C. 5702), by repealing subsections (d) and (e); and in section 3009(e) (12 U.S.C. 5708(e))— in paragraph (1)— in the matter preceding subparagraph (A), by striking business enterprises owned and controlled by socially and economically disadvantaged individuals, to very small businesses and business enterprises owned and controlled by socially and economically disadvantaged individuals and inserting very small businesses; and in subparagraph (B), by adding and after the semicolon at the end; by striking paragraph (2); by redesignating paragraph (3) as paragraph (2); and in paragraph (2), as so redesignated— by striking (with priority given to business enterprises owned and controlled by socially and economically disadvantaged individuals),; and by striking to provide technical assistance to business enterprises owned and controlled by socially and economically disadvantaged individuals and inserting to provide technical assistance to business enterprises. Section 30304 of title 51, United States Code, is repealed. (C)As used in this contract, the term small business concern shall mean a small business as defined pursuant to section 3 of the Small Business Act and relevant regulations promulgated pursuant thereto.; and (5)Eligible businessThe term eligible business means any small business concern, with priority for small business concerns owned and controlled by women (as defined in section 3(n) of the Small Business Act (15 U.S.C. 632(n))) and small business concerns owned and controlled by veterans (as defined in section 3(q) of that Act (15 U.S.C. 632(q)))..

3. Ending racial and ethnic participation goals for Department of Transportation financial assistance programs Section 47107(e) of title 49, United States Code, is amended— in paragraph (1)— by striking 10 percent and inserting 5 percent; and by striking small business concerns and all that follows through the period at the end and inserting disadvantaged business concerns (as defined in section 47113(a) of this title).; in paragraph (4)(B), in the second sentence, by striking small business concern and all that follows through the period at the end and inserting disadvantaged business concern (as defined in section 47113(a) of this title).; and in paragraph (6), by striking small business concern and all that follows through Small Business Act) and inserting disadvantaged business concern (as defined in section 47113(a) of this title). Section 47113 of title 49, United States Code, is amended— in subsection (a)— by striking paragraph (2); and by inserting the following: disadvantaged business concern and disadvantaged business enterprise mean a concern owned and controlled by women or a qualified HUBZone small business concern; and by striking subsection (b); in subsection (d), by striking small business concerns referred to in subsection (b) of this section and inserting disadvantaged business concerns; and by striking subsection (e). The matter under the heading Administrative Provisions under the heading Environmental Protection Agency under the heading Independent Agencies in title III of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1993, (42 U.S.C. 4370d) is amended by striking the first paragraph. (2)disadvantaged business concern and disadvantaged business enterprise mean a concern owned and controlled by women or a qualified HUBZone small business concern; and;

4. Ending racial and ethnic contracting goals in other government programs Section 1713 of title 41, United States Code, is amended— in subsection (a)— by striking paragraph (2); and by redesignating paragraph (3) as paragraph (2); and in the first sentence of subsection (b), by striking , the number of small businesses owned and controlled by women, and the number and all that follows through the period at the end and inserting and the number of small businesses owned and controlled by women.. Section 3021 of the Energy Policy Act of 1992 (42 U.S.C. 13556) is repealed. The table of contents in section 1(b) of the Energy Policy Act of 1992 (Public Law 102–486; 106 Stat. 2782) is amended by striking the item relating to section 3021.

5. Ending all racial and ethnic discrimination in government contracting and awards Chapter 47 of title 41, United States Code, is amended by adding at the end the following new section: The head of an executive agency may not— take into consideration the race or ethnicity of individuals owning, controlling, or managing businesses or other entities when granting contracts or awards; or place requirements on contractors or grantees that require or encourage them to take into consideration the race or ethnicity of individuals to whom they award contracts, subcontracts, or awards. The table of sections at the beginning of chapter 47 of title 41, United States Code, is amended by inserting after the item relating to section 4714 the following new item: Chapter 363 of title 10, United States Code, is amended by adding at the end the following new section: The head of an agency may not— take into consideration the race or ethnicity of individuals owning, controlling, or managing businesses or other entities when granting contracts or awards; or place requirements on contractors or grantees that require or encourage them to take into consideration the race or ethnicity of individuals to whom they award contracts, subcontracts, or awards. The table of sections at the beginning of chapter 363 of title 10, United States Code, is amended by inserting after the item relating to section 4662 the following new item: Not later than 60 days after the date of the enactment of this Act, the head of each executive agency that has rules or regulations requiring or encouraging consideration of the racial or ethnic status of individuals to whom they grant contracts or awards shall submit a proposed rulemaking removing all such references. The agency shall complete the rulemaking within 180 days after the date of the enactment of this Act. Not later than 60 days after the date of the enactment of this Act, the head of each executive agency that has guidance documents, directives, or notices requiring or encouraging consideration of the racial or ethnic status of individuals to whom they grant contracts or awards shall submit new guidance, directives, or notices removing all such references. In this section, the term executive agency has the meaning given the term in section 133 of title 41, United States Code. 4715.Prohibition on racial and ethnic preferences in government contracts and awardsThe head of an executive agency may not—(1)take into consideration the race or ethnicity of individuals owning, controlling, or managing businesses or other entities when granting contracts or awards; or(2)place requirements on contractors or grantees that require or encourage them to take into consideration the race or ethnicity of individuals to whom they award contracts, subcontracts, or awards.. 4715. Prohibition on racial and ethnic preferences in government contracts and awards.. 4663.Prohibition on racial and ethnic preferences in defense contracts and awardsThe head of an agency may not—(1)take into consideration the race or ethnicity of individuals owning, controlling, or managing businesses or other entities when granting contracts or awards; or(2)place requirements on contractors or grantees that require or encourage them to take into consideration the race or ethnicity of individuals to whom they award contracts, subcontracts, or awards.. 4663. Prohibition on racial and ethnic preferences in defense contracts and awards..

4715. Prohibition on racial and ethnic preferences in government contracts and awards The head of an executive agency may not— take into consideration the race or ethnicity of individuals owning, controlling, or managing businesses or other entities when granting contracts or awards; or place requirements on contractors or grantees that require or encourage them to take into consideration the race or ethnicity of individuals to whom they award contracts, subcontracts, or awards.

4663. Prohibition on racial and ethnic preferences in defense contracts and awards The head of an agency may not— take into consideration the race or ethnicity of individuals owning, controlling, or managing businesses or other entities when granting contracts or awards; or place requirements on contractors or grantees that require or encourage them to take into consideration the race or ethnicity of individuals to whom they award contracts, subcontracts, or awards.