19–010

Calendar No. 695

107TH CONGRESS REPORT " SENATE ! 2d Session 107–307

VOCATIONAL AND TECHNICAL ENTREPRENEURSHIP 

DEVELOPMENT ACT OF 2001

OCTOBER 9, 2002.—Ordered to be printed 

Mr. KERRY, from the Committee on Small Business and 

Entrepreneurship, submitted the following 

R E P O R T 

[To accompany H.R. 2666]

The Committee on Small Business and Entrepreneurship to 

which was referred the bill (H.R. 2666) to amend the Small Business Act to direct the Administrator of the Small Business Administration to establish a vocational and technical entrepreneurship 

development program, having considered the same, reports favorably thereon without amendment and recommends that the bill do 

pass. 

On July 24, 2002, the Committee on Small Business and Entrepreneurship, considered H.R. 2666, the ‘‘Vocational and Technical 

Entrepreneurship Development Act of 2001.’’ H.R. 2666 would establish a three-year pilot project providing Small Business Administration (SBA) grants to Small Business Development Centers 

(SBDCs) for technical assistance to secondary schools and post-secondary vocational and technical schools, to develop and implement 

curricula to promote vocational and technical entrepreneurship. 

Having considered H.R. 2666, the Committee reports favorably 

thereon without further amendment and recommends that the bill 

do pass. 

I. INTRODUCTION

Many persons within the United States have technical and vocational skills, but do not have business experience or training to 

help them succeed in the small business community. Presently, 

small businesses employ mechanics, technicians, carpenters, 

plumbers, machinists, and draftsmen. However, H.R. 2666, the 

‘‘Vocational and Technical Entrepreneurship Development Act of 

2001,’’ is needed to provide the essential training and business 

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counseling necessary for these skilled workers to start their own 

businesses, to survive in the business world, and to grow. Many 

who work in the trade sector of construction, plumbing, etc. enter 

these professions with the goal of one day starting a business. Unfortunately, too many aspiring business owners who partake in career training or vocational training in certain trades, fail to obtain 

the necessary business education to develop and grow their newly 

formed business. This initiative would develop a program that allows workers within the trade industries to move towards starting 

a new business. 

The bill establishes, through a business-education partnership, a 

‘‘vocational entrepreneurship development demonstration program,’’

under which the Small Business Administration (SBA) would 

award grants, through Small Business Development Centers 

(SBDCs), to provide technical assistance to high schools and technical career institutes to promote small business development in 

their curricula. The SBDC Program is designed to deliver such upto-date counseling, training and technical assistance in all aspects 

of small business management and is the ideal candidate to provide such a program. 

In establishing these needed services, H.R. 2666 relies upon the 

present infrastructure of the SBDCs, which has proven to deliver 

services that greatly enhance the chances of a small business surviving as compared with those who do not receive such assistance. 

The SBDCs provide a focal point for studies, research, and counseling concerning the managing, financing, and operation of small 

business enterprises, including information retrieval, coordination 

of federal and state government services, and referral to experts. 

Therefore, the Committee believes that the SBDC program can 

serve a greater number of potential entrepreneurs, by working with 

institutions, both at the secondary and post-secondary level, that 

provide vocational and technical education. 

Historically, the SBDCs have focused on counseling entrepreneurs or small business owners that are in a position to either 

start their own business or take it to the next level. However, a 

limited number of centers have begun sharing their knowledge to 

provide vocational students, or ‘‘future entrepreneurs,’’’ the proper 

business tools while learning their trade skills. Thus, these future 

entrepreneurs can begin their own business venture after graduating with their new skills instead of working for someone else, 

perhaps at a large firm. The Committee believes that the centers 

can provide an effective mechanism for dispensing information and 

advice on developing and implementing entrepreneurial curricula. 

Therefore, the Committee believes that a targeted pilot program to 

determine how assistance with entrepreneurial curricula by selected small business development centers will operate is a preferred strategy to generally requiring such assistance be provided 

by all centers throughout the entire SBDC network. 

II. LEGISLATIVE HISTORY

On July 19, 2001, the Subcommittee on Workforce, Empowerment and Government Programs of the House Committee on Small 

Business held a hearing on pending legislation, including H.R. 

2666, the ‘‘Vocational and Technical Entrepreneurship DevelopVerDate 0ct 02 2002 07:14 Oct 13, 2002 Jkt 019010 PO 00000 Frm 00002 Fmt 6659 Sfmt 6602 E:\HR\OC\SR307.XXX SR307
3

ment Act of 2001.’’ The hearing demonstrated a need for expansion 

of the services to other locations. 

On August 1, 2001, the House Committee on Small Business considered H.R. 2666, passed it without amendment and ordered it reported. On October 2, 2001, the full House considered H.R. 2666 

under suspension of the rules. It was subsequently agreed to by 

voice vote. 

During consideration of H.R. 2666 in the Senate Committee on 

Small Business and Entrepreneurship on July 24, 2002, the Senate 

Committee’s Ranking Republican, Senator Christopher S. Bond, 

raised concerns that the Senate Committee had not adequately considered the National Small Business Regulatory Assistance Act. In 

response to these concerns, the Committee Chairman, Senator 

John F. Kerry, proposed holding a roundtable on the legislation to 

alleviate these concerns in order to move forward with the Committee vote. The Ranking Republican agreed and the legislation 

was passed without amendment by the Senate Committee. 

On August 1, 2002, the Senate Committee held a roundtable titled ‘‘Promoting Small Business Regulatory Compliance and Entrepreneurial Education—the Role of the SBDC Network.’’ During this 

roundtable, the Senate Committee received evidence that H.R. 

2666 would provide adequate resources to Small Business Development Centers (SBDCs) so that they may provide technical assistance to secondary schools and post-secondary vocational and technical schools, to develop and implement curricula to promote vocational and technical entrepreneurship. Small business representatives at the roundtable also stressed the need to provide such assistance as an important addition to curricula that is merely skills 

based. 

Small business groups such as the National Small Business 

United support H.R. 2666, as well as leading educational institutions, such as the Wharton School of Business at the University of 

Pennsylvania, and the Association of Small Business Development 

Centers. 

III. ANALYSIS OF H.R. 2666, THE ‘‘VOCATIONAL AND TECHNICAL

ENTREPRENEURSHIP DEVELOPMENT ACT OF 2001.’’

Purpose 

The purpose of H.R. 2666, the ‘‘Vocational and Technical Entrepreneurship Development Act of 2001,’’ is to assist the development 

and implementation of curricula that will encourage skilled persons 

to start their own businesses and to provide needed entrepreneurial training to support the success of such businesses. The Act 

provides the necessary entrepreneurial support to expand the career opportunities for persons receiving vocational training and, 

thus use their newly gained skills to become the successful owners 

of their own business. 

Grant process 

The Administrator of the Small Business Administration (SBA) 

is required to make grants to state Small Business Development 

Centers (SBDCs). The minimum amount of a grant under the pilot 

program is $200,000. 

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Each applicant wishing to apply for a grant must submit an application, as directed by the Administrator, which includes an outline of the applicant’s goals and objectives for the assistance to be 

provided and the educational curricula to be implemented with 

grant funds. 

The Committee expects the Administrator to consider the quality 

of the proposed programs in determining which centers are selected 

to participate in the pilot program provide a baseline by which the 

Administrator and the Congress can evaluate the success of the 

program. 

Grants are to be awarded to state SBDCs to carry out the pilot 

program on a statewide basis. 

It is the desire of the Committee that State small business development centers place particular focus on helping underserved populations in the area of vocational and technical entrepreneurship 

training. 

Reporting requirements 

Those SBDCs receiving grants under the pilot program must report to the SBA within 18 months of receiving the grant monies, 

detailing how all the grant funds were used. In addition, not later 

than March 31, 2004, the SBA must conduct an evaluation of the 

program and report to Congress the results of each such evaluation. 

Role of the Association of Small Business Development Centers 

The Act designates the Association of Small Business Development Centers as a clearinghouse for the collection of information 

and expertise regarding vocational and technical entrepreneurship 

programs. 

The Committee expects the Association of Small Business Development Centers to act as the repository and clearinghouse. 

Authorization level 

The pilot program is authorized for 3 years at $7 million per 

year. The committee does not expect an appropriation for this pilot 

program to reduce the core funding for the regular 4SBDC program. 

IV. COMMITTEE VOTE

In compliance with rule XXVI(7)(b) of the Standing Rules of the 

Senate, the following votes were recorded on July 24, 2002. A motion by Senator Kerry to adopt H.R. 2666, the ‘‘Vocational and 

Technical Entrepreneurship Development Act of 2001,’’ was approved by an 18–1 recorded vote, with the following Senators voting in the affirmative: Kerry, Bond, Levin, Harkin, Lieberman, 

Wellstone, Cleland, Landrieu, Edwards, Cantwell, Carnahan, 

Burns, Bennett, Snowe, Fitzgerald, Crapo, Allen and Ensign. Senator Enzi voted in the negative. 

V. EVALUATION OF REGULATORY IMPACT

In compliance with rule XXVI(11)(b) of the Standing Rules of the 

Senate, it is the opinion of the Committee that no significant additional regulatory impact will be incurred in carrying out the provisions of this legislation. There will be no additional impact on the 

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personal privacy of companies or individuals who make use of the 

services provided. 

VI. CHANGES IN EXISTING LAW

In the opinion of the Committee, it is necessary to dispense with 

the requirement of rule XXVI (12) of the Standing Rules of the 

Senate in order to expedite the business of the Senate. 

VII. COST ESTIMATE

In compliance with rule XXVI(11)(a)(1) of the Standing Rules of 

the Senate, the Committee estimates the cost of the legislation will 

be equal to the amounts indicated by the Congressional Budget Office in the following letter. 

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, July 30, 2002. 

Hon. JOHN F. KERRY, 

Chairman, Committee on Small Business and Entrepreneurship, 

U.S. Senate, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 2666, the Vocational and 

Technical Entrepreneurship Development Act of 2001. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Ken Johnson. 

Sincerely, 

BARRY. B. ANDERSON

(For Dan L. Crippen, Director.) 

Enclosure.

H.R. 2666—Vocational and Technical Entrepreneurship Development Act of 2001

Summary: H.R. 2666 would require the Small Business Administration (SBA) to issue grants to small business development centers 

(SBDCs) so that they can help schools design curricula for teaching 

vocational and technical entrepreneurship. SBDCs are jointly funded by the private sector, schools, and federal, state, and local governments to provide management assistance to current and prospective small business owners. 

H.R. 2666 would authorize the appropriation of $7 million a year 

through 2004 to fund the new program. CBO estimates that implementing the act would cost $14 million over the 2003–2007 period, 

assuming the appropriation of the authorized amounts. The act 

would not affect direct spending or receipts; therefore, pay-as-yougo procedures would not apply. 

H.R. 2666 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA). 

The bill would benefit state, local, or tribal governments receiving 

grants under this bill, and any costs they incur would be voluntary. 

Estimated cost to the Federal Government: The estimated budgetary impact of H.R. 2666 is shown in the following table. The costs 

of this legislation fall within budget function 370 (commerce and 

housing credit). For this estimate, CBO assumes that the authorized amounts will be appropriated each year beginning in 2003, 

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and that outlays will follow historical spending patterns for similar 

SBA programs.

By fiscal year, in millions of dollars—

2003 2004 2005 2006 2007

CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Authorization level ......................................................................................... 7 7 0 0 0

Estimated outlays ......................................................................................... 5 7 2 0 0

Pay-as-you-go considerations: None. 

Intergovernmental and private-sector impact: H.R. 2666 contains 

no intergovernmental or private-sector mandates as defined in 

UMRA. The bill would benefit state, local, or tribal governments receiving grants under this bill, and any costs they incur would be 

voluntary. 

Previous CBO estimate: On August 15, 2001, CBO transmitted 

a cost estimate for H.R. 2666 as ordered reported by the House 

Committee on Small Business on August 1, 2001. The two versions 

of the legislation are very similar. CBO estimated that the prior 

version of H.R. 2666 would cost about $20 million over the 2002– 2006 period, subject to the availability of appropriated funds. The 

higher estimated costs for the House version reflect CBO’s assumption that funds would be appropriated for the program for three 

years (beginning in 2002), rather than our current assumption of 

two years (beginning in 2003). 

Estimate prepared by: Federal cost: Ken Johnson, Impact on 

state, local, and tribal governments: Greg Waring; Impact on the 

private sector: Cecil McPherson. 

Estimate approved by: Peter H. Fontaine, Deputy Assistant Director for Budget Analysis. 

VIII. SECTION-BY-SECTION ANALYSIS

Section 1. Short title 

The section establishes the short title as the ‘‘Vocational and 

Technical Entrepreneurship Development Act of 2001.’’

Section 2. Vocational and Technical Entrepreneurship Development 

Program 

This section amends the Small Business Act by adding a new 

section at the end titled: ‘‘Vocational and Technical Entrepreneurship Development Program.’’ Subsection (a) defines the terms: ‘‘Administrator,’’ ‘‘program,’’’ and ‘‘small business development center.’’ Subsection (b) requires the Administrator to establish a program 

by which the Administrator makes grants to Small Business Development Centers to enable such centers to provide technical assistance to secondary schools, or to post-secondary vocational or technical schools, for the development and implementation of curricula 

designed to promote vocational and technical entrepreneurship. 

Subsection (c) establishes the minimum grant that the Administrator can make with respect to the pilot program as not less than 

$200,000. 

Subsection (d) requires the Administrator to design a grant application that must be completed by any Small Business Development Center seeking a grant. The application shall include inforVerDate 0ct 02 2002 07:14 Oct 13, 2002 Jkt 019010 PO 00000 Frm 00006 Fmt 6659 Sfmt 6602 E:\HR\OC\SR307.XXX SR307
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mation regarding the applicant’s goals and objectives for the educational programs to be funded. 

Subsection (e) requires the Administrator, as a condition of each 

grant under the program, that the grantee shall transmit to the 

Administrator, within 18 months after receipt of grant funds, a report describing how the grant funds were used. 

Subsection (f) permits the Administrator to enter into a cooperative agreement or contract with a small business development center receiving a grant under this section to provide additional assistance that furthers the purposes of the program. 

Subsection (g) requires the Administrator to transmit a report to 

Congress, no later than March 31, 2004, that evaluates the program. 

Subsection (h) requires the Administrator to select an association 

established under section 21(a)(3)(A) of the Small Business Act to 

act as a clearinghouse of information and expertise regarding vocational and technical entrepreneurship education programs. In each 

fiscal year, 2002, 2003, and 2004, the Administrator shall provide 

additional assistance to the association selected to serve as the 

clearinghouse. Subsection (i) authorizes $7,000,000 be appropriated for each of 

the fiscal years 2002, 2003, and 2004. The funds are to remain 

available until expended.

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