Women's Business Centers Sustainability Act of 1999

Summary: (Sec. 3) Requires each business center established under the Act to provide to the SBA, as part of an annual SBA programmatic and financial examination of such center: (1) an itemized cost breakdown of actual expenditures; and (2) documentation regarding the amount of matching assistance from non-Federal sources obtained and expended by such center in order to meet matching-funds requirements. Directs the Administrator, after analyzing such information, to determine the programmatic and financial viability of each center. Authorizes the SBA to withhold grant extensions or renewals if the centers do not provide required information, if such information is inadequate, or if examination results are poor. Directs the SBA to report to the small business committees on the effectiveness of all women's business center projects conducted.
(Sec. 4) Establishes a four-year pilot program under which the SBA may award grants on a competitive basis for an additional five-year project to any private nonprofit organization that has received financial assistance under the Act and: (1) is in the final year of a five-year project; or (2) has completed a project financed under the Act and continues to provide assistance to women entrepreneurs. Outlines grant application requirements, including: (1) agreeing to a site visit and an annual programmatic and financial examination; (2) providing information demonstrating appropriate experience in providing assistance to women business owners or potential owners; and (3) providing a five-year plan to serve women business owners and to provide training and services to women who are both socially and economically disadvantaged. Requires participating organizations to: (1) collect and maintain information concerning the assistance provided; and (2) agree to obtain matching cash and in-kind contributions from non-Federal sources for each year of additional program participation.
Authorizes appropriations for FY 2000 through 2003 for the women's business center program, earmarking specified amounts for: (1) selection panel costs, certain post-award costs, and costs related to program monitoring and oversight; and (2) funding sustainability grants under the program (including provisions for the use of unobligated grant funds).
(Sec. 5) Expresses the sense of the Senate that the U.S. Comptroller General should: (1) audit the Federal procurement system regarding Federal contracting involving women-owned small businesses for the preceding three fiscal years; (2) solicit suggestions for increasing the number of Federal contracts awarded to women-owned small businesses; and (3) report to Congress on audit results.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Women's Business Centers 
Sustainability Act of 1999''.
SEC. 2. PRIVATE NONPROFIT ORGANIZATIONS.
    Section 29 of the Small Business Act (15 U.S.C. 656) is amended--
        (1) in subsection (a)--
            (A) by redesignating paragraphs (2) and (3) as paragraphs 
        (3) and (4), respectively; and
            (B) by inserting after paragraph (1) the following:
        ``(2) the term `private nonprofit organization' means an entity 
    that is described in section 501(c) of the Internal Revenue Code of 
    1986 and exempt from taxation under section 501(a) of such Code;''; 
    and
        (2) in subsection (b), by inserting ``nonprofit'' after 
    ``private''.
SEC. 3. INCREASED MANAGEMENT OVERSIGHT AND REVIEW OF WOMEN'S BUSINESS 
CENTERS.
    Section 29 of the Small Business Act (15 U.S.C. 656) is amended--
        (1) by striking subsection (h) and inserting the following:
    ``(h) Program Examination.--
        ``(1) In general.--The Administration shall--
            ``(A) develop and implement an annual programmatic and 
        financial examination of each women's business center 
        established pursuant to this section, pursuant to which each 
        such center shall provide to the Administration--
                ``(i) an itemized cost breakdown of actual expenditures 
            for costs incurred during the preceding year; and
                ``(ii) documentation regarding the amount of matching 
            assistance from non-Federal sources obtained and expended 
            by the center during the preceding year in order to meet 
            the requirements of subsection (c) and, with respect to any 
            in-kind contributions described in subsection (c)(2) that 
            were used to satisfy the requirements of subsection (c), 
            verification of the existence and valuation of those 
            contributions; and
            ``(B) analyze the results of each such examination and, 
        based on that analysis, make a determination regarding the 
        programmatic and financial viability of each women's business 
        center.
        ``(2) Conditions for continued funding.--In determining whether 
    to award a contract (as a sustainability grant) under subsection 
    (l) or to renew a contract (either as a grant or cooperative 
    agreement) under this section with a women's business center, the 
    Administration--
            ``(A) shall consider the results of the most recent 
        examination of the center under paragraph (1); and
            ``(B) may withhold such award or renewal, if the 
        Administration determines that--
                ``(i) the center has failed to provide any information 
            required to be provided under clause (i) or (ii) of 
            paragraph (1)(A), or the information provided by the center 
            is inadequate; or
                ``(ii) the center has failed to provide any information 
            required to be provided by the center for purposes of the 
            report of the Administration under subsection (j), or the 
            information provided by the center is inadequate.''; and
        (2) by striking subsection (j) and inserting the following:
    ``(j) Management Report.--
        ``(1) In general.--The Administration shall prepare and submit 
    to the Committees on Small Business of the House of Representatives 
    and the Senate a report on the effectiveness of all projects 
    conducted under this section.
        ``(2) Contents.--Each report submitted under paragraph (1) 
    shall include information concerning, with respect to each women's 
    business center established pursuant to this section--
            ``(A) the number of individuals receiving assistance;
            ``(B) the number of startup business concerns formed;
            ``(C) the gross receipts of assisted concerns;
            ``(D) the employment increases or decreases of assisted 
        concerns;
            ``(E) to the maximum extent practicable, increases or 
        decreases in profits of assisted concerns; and
            ``(F) the most recent analysis, as required under 
        subsection (h)(1)(B), and the subsequent determination made by 
        the Administration under that subsection.''.
SEC. 4. WOMEN'S BUSINESS CENTERS SUSTAINABILITY PILOT PROGRAM.
    (a) In General.--Section 29 of the Small Business Act (15 U.S.C. 
656) is amended by adding at the end the following:
    ``(l) Sustainability Pilot Program.--
        ``(1) In general.--There is established a 4-year pilot program 
    under which the Administration is authorized to award grants 
    (referred to in this section as `sustainability grants') on a 
    competitive basis for an additional 5-year project under this 
    section to any private nonprofit organization (or a division 
    thereof)--
            ``(A) that has received financial assistance under this 
        section pursuant to a grant, contract, or cooperative 
        agreement; and
            ``(B) that--
                ``(i) is in the final year of a 5-year project; or
                ``(ii) has completed a project financed under this 
            section (or any predecessor to this section) and continues 
            to provide assistance to women entrepreneurs.
        ``(2) Conditions for participation.--In order to receive a 
    sustainability grant, an organization described in paragraph (1) 
    shall submit to the Administration an application, which shall 
    include--
            ``(A) a certification that the applicant--
                ``(i) is a private nonprofit organization;
                ``(ii) employs a full-time executive director or 
            program manager to manage the center; and
                ``(iii) as a condition of receiving a sustainability 
            grant, agrees--

                    ``(I) to a site visit as part of the final 
                selection process and to an annual programmatic and 
                financial examination; and
                    ``(II) to the maximum extent practicable, to remedy 
                any problems identified pursuant to that site visit or 
                examination;

            ``(B) information demonstrating that the applicant has the 
        ability and resources to meet the needs of the market to be 
        served by the women's business center site for which a 
        sustainability grant is sought, including the ability to 
        fundraise;
            ``(C) information relating to assistance provided by the 
        women's business center site for which a sustainability grant 
        is sought in the area in which the site is located, including--
                ``(i) the number of individuals assisted;
                ``(ii) the number of hours of counseling, training, and 
            workshops provided; and
                ``(iii) the number of startup business concerns formed;
            ``(D) information demonstrating the effective experience of 
        the applicant in--
                ``(i) conducting financial, management, and marketing 
            assistance programs, as described in paragraphs (1), (2), 
            and (3) of subsection (b), designed to impart or upgrade 
            the business skills of women business owners or potential 
            owners;
                ``(ii) providing training and services to a 
            representative number of women who are both socially and 
            economically disadvantaged;
                ``(iii) using resource partners of the Administration 
            and other entities, such as universities;
                ``(iv) complying with the cooperative agreement of the 
            applicant; and
                ``(v) the prudent management of finances and staffing, 
            including the manner in which the performance of the 
            applicant compared to the business plan of the applicant 
            and the manner in which grant funds awarded under 
            subsection (b) were used by the applicant; and
            ``(E) a 5-year plan that projects the ability of the 
        women's business center site for which a sustainability grant 
        is sought--
                ``(i) to serve women business owners or potential 
            owners in the future by improving fundraising and training 
            activities; and
                ``(ii) to provide training and services to a 
            representative number of women who are both socially and 
            economically disadvantaged.
        ``(3) Review of applications.--
            ``(A) In general.--The Administration shall--
                ``(i) review each application submitted under paragraph 
            (2) based on the information provided in subparagraphs (D) 
            and (E) of that paragraph, and the criteria set forth in 
            subsection (f);
                ``(ii) as part of the final selection process, conduct 
            a site visit at each women's business center for which a 
            sustainability grant is sought; and
                ``(iii) approve or disapprove applications for 
            sustainability grants simultaneously with applications for 
            grants under subsection (b).
            ``(B) Data collection.--Consistent with the annual report 
        to Congress under subsection (j), each women's business center 
        site that is awarded a sustainability grant shall, to the 
        maximum extent practicable, collect information relating to--
                ``(i) the number of individuals assisted;
                ``(ii) the number of hours of counseling and training 
            provided and workshops conducted;
                ``(iii) the number of startup business concerns formed;
                ``(iv) any available gross receipts of assisted 
            concerns; and
                ``(v) the number of jobs created, maintained, or lost 
            at assisted concerns.
            ``(C) Record retention.--The Administration shall maintain 
        a copy of each application submitted under this subsection for 
        not less than 10 years.
        ``(4) Non-federal contribution.--
            ``(A) In general.--Notwithstanding any other provision of 
        this section, as a condition of receiving a sustainability 
        grant, an organization described in paragraph (1) shall agree 
        to obtain, after its application has been approved under 
        paragraph (3) and notice of award has been issued, cash and in-
        kind contributions from non-Federal sources for each year of 
        additional program participation in an amount equal to 1 non-
        Federal dollar for each Federal dollar.
            ``(B) Form of non-federal contributions.--Not more than 50 
        percent of the non-Federal assistance obtained for purposes of 
        subparagraph (A) may be in the form of in-kind contributions 
        that are budget line items only, including office equipment and 
        office space.
        ``(5) Timing of requests for proposals.--In carrying out this 
    subsection, the Administration shall issue requests for proposals 
    for women's business centers applying for the pilot program under 
    this subsection simultaneously with requests for proposals for 
    grants under subsection (b).''.
    (b) Authorization of Appropriations.--Section 29(k) of the Small 
Business Act (15 U.S.C. 656(k)) is amended--
        (1) by striking paragraph (1) and inserting the following:
        ``(1) In general.--There is authorized to be appropriated, to 
    remain available until the expiration of the pilot program under 
    subsection (l)--
            ``(A) $12,000,000 for fiscal year 2000;
            ``(B) $12,800,000 for fiscal year 2001;
            ``(C) $13,700,000 for fiscal year 2002; and
            ``(D) $14,500,000 for fiscal year 2003.'';
        (2) in paragraph (2)--
            (A) by striking ``Amounts made'' and inserting the 
        following:
            ``(A) In general.--Except as provided in subparagraph (B), 
        amounts made''; and
            (B) by adding at the end the following:
            ``(B) Exceptions.--Of the amount made available under this 
        subsection for a fiscal year, the following amounts shall be 
        available for selection panel costs, post-award conference 
        costs, and costs related to monitoring and oversight:
                ``(i) For fiscal year 2000, 2 percent.
                ``(ii) For fiscal year 2001, 1.9 percent.
                ``(iii) For fiscal year 2002, 1.9 percent.
                ``(iv) For fiscal year 2003, 1.6 percent.''; and
        (3) by adding at the end the following:
        ``(4) Reservation of funds for sustainability pilot program.--
            ``(A) In general.--Subject to subparagraph (B), of the 
        total amount made available under this subsection for a fiscal 
        year, the following amounts shall be reserved for 
        sustainability grants under subsection (l):
                ``(i) For fiscal year 2000, 17 percent.
                ``(ii) For fiscal year 2001, 18.8 percent.
                ``(iii) For fiscal year 2002, 30.2 percent.
                ``(iv) For fiscal year 2003, 30.2 percent.
            ``(B) Use of unawarded funds for sustainability pilot 
        program grants.--If the amount reserved under subparagraph (A) 
        for any fiscal year is not fully awarded to private nonprofit 
        organizations described in subsection (l)(1)(B), the 
        Administration is authorized to use the unawarded amount to 
        fund additional women's business center sites or to increase 
        funding of existing women's business center sites under 
        subsection (b).''.
    (c) Guidelines.--Not later than 30 days after the date of enactment 
of this Act, the Administrator of the Small Business Administration 
shall issue guidelines to implement the amendments made by this 
section.
SEC. 5. SENSE OF THE SENATE REGARDING GOVERNMENT PROCUREMENT ACCESS FOR 
WOMEN-OWNED SMALL BUSINESSES.
    (a) Findings.--The Senate finds that--
        (1) women-owned small businesses are a powerful force in the 
    economy;
        (2) between 1987 and 1996--
            (A) the number of women-owned small businesses in the 
        United States increased by 78 percent, almost twice the rate of 
        increase of all businesses in the United States;
            (B) the number of women-owned small businesses increased in 
        every State;
            (C) total sales by women-owned small businesses in the 
        United States increased by 236 percent;
            (D) employment provided by women-owned small businesses in 
        the United States increased by 183 percent; and
            (E) the rates of growth for women-owned small businesses in 
        the United States for the fastest growing industries were--
                (i) 171 percent in construction;
                (ii) 157 percent in wholesale trade;
                (iii) 140 percent in transportation and communications;
                (iv) 130 percent in agriculture; and
                (v) 112 percent in manufacturing;
        (3) approximately 8,000,000 women-owned small businesses in the 
    United States provide jobs for 15,500,000 individuals and generate 
    almost $1,400,000,000,000 in sales each year;
        (4) the participation of women-owned small businesses in the 
    United States in the procurement market of the Federal Government 
    is limited;
        (5) the Federal Government is the largest purchaser of goods 
    and services in the United States, spending more than 
    $200,000,000,000 each year;
        (6) the majority of Federal Government purchases are for items 
    that cost $25,000 or less; and
        (7) the rate of Federal procurement for women-owned small 
    businesses is 2.2 percent.
    (b) Sense of the Senate.--It is the sense of the Senate that, not 
later than 1 year after the date of enactment of this Act, the 
Comptroller General of the United States should--
        (1) conduct an audit of the Federal procurement system 
    regarding Federal contracting involving women-owned small 
    businesses for the 3 preceding fiscal years;
        (2) solicit from Federal employees involved in the Federal 
    procurement system any suggestions regarding how to increase the 
    number of Federal contracts awarded to women-owned small 
    businesses; and
        (3) submit to Congress a report on the results of that audit, 
    which report shall include--
            (A) an analysis of any identified trends in Federal 
        contracting with respect to women-owned small businesses;
            (B) any recommended means to increase the number of Federal 
        contracts awarded to women-owned small businesses that the 
        Comptroller General considers to be appropriate, after taking 
        into consideration any suggestions received pursuant to a 
        solicitation described in paragraph (2), including any such 
        means that incorporate the concepts of teaming or partnering; 
        and
            (C) a discussion of any barriers to the receipt of Federal 
        contracts by women-owned small businesses and other small 
        businesses that are created by legal or regulatory procurement 
        requirements or practices.

SEC. 6. EFFECTIVE DATE.

    This Act and the amendments made by this Act shall take effect on 
October 1, 1999.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.