```

[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3985 Reported in House (RH)]

                                                 Union Calendar No. 526
112th CONGRESS
  2d Session
                                H. R. 3985

                          [Report No. 112-723]

    To amend the Small Business Act with respect to mentor-protege 
                   programs, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            February 8, 2012

Mr. Schilling (for himself and Ms. Chu) introduced the following bill; 
         which was referred to the Committee on Small Business

                           December 21, 2012

Additional sponsors: Mr. Chabot, Mr. Graves of Missouri, Mr. Mulvaney, 
   Mr. Walsh of Illinois, Mr. Hanna, Mr. West, Mrs. Ellmers, and Mr. 
                               Cicilline

                           December 21, 2012

Reported with amendments, committed to the Committee of the Whole House 
          on the State of the Union, and ordered to be printed
  [Omit the part struck through and insert the part printed in italic]

_______________________________________________________________________

                                 A BILL

 
    To amend the Small Business Act with respect to mentor-protege 
                   programs, 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 ``Building Better Business 
Partnerships Act of 2012''.

SEC. 2. MENTOR-PROTEGE PROGRAMS.

    The Small Business Act (15 U.S.C. 631 et seq.) is amended--
            (1) by redesignating section 45 as section 46; and
            (2) by inserting after section 44 the following:

``SEC. 45. MENTOR-PROTEGE PROGRAMS.

    ``(a) Administration Program.--
            ``(1) Authority.--The Administrator is authorized to 
        establish a mentor-protege program for all small business 
        concerns.
            ``(2) Model for program.--The mentor-protege program 
        established under paragraph (1) shall be identical to the 
        mentor-protege program of the Administration for small business 
        concerns that participate in the program under section 8(a) of 
        this Act (as in effect on the date of enactment of the Building 
        Better Business Partnerships Act of 2012), except that the 
        Administrator may modify the program to the extent necessary 
        given the types of small business concerns included as 
        proteges.
    ``(b) Programs of Other Agencies.--
            ``(1) Approval required.--Except as provided in this 
        subsection, a Federal department or agency may not carry out a 
        mentor-protege program for small business concerns unless--
                    ``(A) the head of the department or agency submits 
                a plan to the Administrator for the program; and
                    ``(B) the Administrator approves such plan.
            ``(2) Basis for approval.--The Administrator shall approve 
        or disapprove a plan submitted under paragraph (1) based on 
        whether the program proposed--
                    ``(A) will assist proteges to compete for Federal 
                prime contracts and subcontracts; and
                    ``(B) complies with the regulations issued under 
                paragraph (3).
            ``(3) Regulations.--Not later than 270 days after the date 
        of enactment of the Building Better Business Partnerships Act 
        of 2012, the Administrator shall issue, subject to notice and 
        comment, regulations with respect to mentor-protege programs, 
        which shall ensure that such programs improve the ability of 
        proteges to compete for Federal prime contracts and 
        subcontracts and which shall address, at a minimum, the 
        following:
                    ``(A) Eligibility criteria for program 
                participants, including any restrictions on the number 
                of mentor-protege relationships permitted for each 
                participant.
                    ``(B) The types of developmental assistance to be 
                provided by mentors, including how the assistance 
                provided shall improve the competitive viability of the 
                proteges.
                    ``(C) Whether any developmental assistance provided 
                by a mentor may affect the status of a program 
                participant as a small business concern due to 
                affiliation.
                    ``(D) The length of mentor-protege relationships.
                    ``(E) The effect of mentor-protege relationships on 
                contracting.
                    ``(F) Benefits that may accrue to a mentor as a 
                result of program participation.
                    ``(G) Reporting requirements during program 
                participation.
                    ``(H) Postparticipation reporting requirements.
                    ``(I) The need for a mentor-protege pair, if 
                accepted to participate as a pair in a mentor-protege 
                program of any Federal department or agency, to be 
                accepted to participate as a pair in all Federal 
                mentor-protege programs.
                    ``(J) Actions to be taken to ensure benefits for 
                proteges<DELETED>.</DELETED>, and to protect proteges 
                against actions by the mentor that--
                            ``(i) may adversely affect the proteges 
                        status as a small business; or
                            ``(ii) provide disproportionate economic 
                        benefits to the mentor relative to those 
                        provided the protege.
            ``(4) Limitation on applicability.--Notwithstanding the 
        provisions of subsection (b)(1), the provisions of subsection 
        (b)(1) shall apply to the following:
                    ``(A) Any mentor-protege program of the Department 
                of Defense in effect on the date of enactment of the 
                Building Better Business Partnerships Act of 2012.
                    ``(B) Any mentoring assistance provided under a 
                Small Business Innovation Research Program or a Small 
                Business Technology Transfer Program.
                    ``(C) Until the date that is 1 year after the date 
                on which the Administrator issues regulations under 
                paragraph (3), any Federal department or agency 
                operating a mentor-protege program in effect on the 
                date of enactment of the Building Better Business 
                Partnerships Act of 2012.
    ``(c) Reporting.--
            ``(1) In general.--Not later than 2 years after the date of 
        enactment of the Building Better Business Partnerships Act of 
        2012, and annually thereafter, the Administrator shall submit 
        to the Committee on Small Business of the House of 
        Representatives and the Committee on Small Business and 
        Entrepreneurship of the Senate a report that--
                    ``(A) identifies each Federal mentor-protege 
                program;
                    ``(B) specifies the number of participants in each 
                such program, including the number of participants that 
                are--
                            ``(i) small business concerns;
                            ``(ii) small business concerns owned and 
                        controlled by service-disabled veterans;
                            ``(iii) qualified HUBZone small business 
                        concerns;
                            ``(iv) small business concerns owned and 
                        controlled by socially and economically 
                        disadvantaged individuals; or
                            ``(v) small business concerns owned and 
                        controlled by women;
                    ``(C) describes the type of assistance provided to 
                proteges under each such program;
                    ``(D) describes the benefits provided to mentors 
                under each such program; and
                    ``(E) describes the progress of proteges under each 
                such program with respect to competing for Federal 
                prime contracts and subcontracts.
            ``(2) Provision of information.--The head of each Federal 
        department or agency carrying out a mentor-protege program 
        shall provide to the Administrator, upon request, the 
        information necessary for the Administrator to submit a report 
        required under paragraph (1).
    ``(d) Definitions.--In this section, the following definitions 
apply:
            ``(1) Mentor.--The term `mentor' means a for-profit 
        business concern, of any size, that--
                    ``(A) has the ability to assist and commits to 
                assisting a protege to compete for Federal prime 
                contracts and subcontracts; and
                    ``(B) satisfies any other requirements imposed by 
                the Administrator.
            ``(2) Mentor-protege program.--The term `mentor-protege 
        program' means a program that pairs a mentor with a protege for 
        the purpose of assisting the protege to compete for Federal 
        prime contracts and subcontracts.
            ``(3) Protege.--The term `protege' means a small business 
        concern that--
                    ``(A) is eligible to enter into Federal prime 
                contracts and subcontracts; and
                    ``(B) satisfies any other requirements imposed by 
                the Administrator.
    ``(e) Current Mentor Protege Agreements.--Mentors and proteges with 
approved agreement in a program operating pursuant to subsection 
(b)(4)(C) shall be permitted to continue their relationship according 
to the terms specified in their agreement until the expiration date 
specified in the agreement.
    ``(f) Submission of Agency Plans.--Agencies operating mentor 
protege programs pursuant to subsection (b)(4)(C) must submit the plans 
specified in subsection (b)(1)(A) to the Administrator within 6 months 
of the promulgation of rules required by subsection (b)(3). The 
Administrator shall provide initial comments on each plan within 60 
days of receipt, and final approval or denial of each plan with 180 
days of receipt.''.

SEC. 3. GOVERNMENT ACCOUNTABILITY OFFICE REPORT.

    Not later than the date that is 2 years after the agencies 
operating subject to section 45(b)(4)(C) of the Small Business Act have 
their plans approved or denied by the Administrator, the Comptroller 
General of the United States shall conduct a study to--
            (1) update the study required by section 1345 of the Small 
        Business Jobs Act of 2010 (Pub. Law 111-240);
            (2) examine whether potential affiliation issues between 
        mentors and proteges under the prior programs have been 
        resolved by enactment of this Act; and
            (3) examine whether the regulations issued pursuant to 
        section 45(b)(3)(I) of the Small Business Act have increased 
        opportunities for mentor-protege pairs, and if they have 
        decreased the paperwork required for such pairs participating 
        in programs at multiple agencies.
                                                 Union Calendar No. 526

112th CONGRESS

  2d Session

                               H. R. 3985

                          [Report No. 112-723]

_______________________________________________________________________

                                 A BILL

    To amend the Small Business Act with respect to mentor-protege 
                   programs, and for other purposes.

_______________________________________________________________________

                           December 21, 2012

Reported with amendments, committed to the Committee of the Whole House 
          on the State of the Union, and ordered to be printed
```