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[House Report 106-47]
[From the U.S. Government Publishing Office]

106th Congress                                                   Report
  1st Session           HOUSE OF REPRESENTATIVES                 106-47

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             WOMEN'S BUSINESS CENTER AMENDMENTS ACT OF 1999

                                _______
                                

 March 10, 1999.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______

    Mr. Talent, from the Committee on Small Business, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 774]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Small Business, to whom was referred the 
bill (H.R. 774) to amend the Small Business Act to change the 
conditions of participation and provide an authorization of 
appropriations for the women's business center program, having 
considered the same, report favorably thereon without amendment 
and recommend that the bill do pass.

                                Purpose

    The purpose of H.R. 774 is to amend the Small Business Act 
to change the conditions of participation in the Women's 
Business Center program and to increase authorization of 
appropriations for the program.
    The Women's Business Center (WBC) program was established 
as a demonstration program by Public Law 100-533, the Women's 
Business Ownership Act of 1988. The statute was modified in 
1991 in Public Law 102-191, the Women's Business development 
Act of 1991, and again in 1994 by Public Law 103-403, the Small 
Business Reauthorization Act. Originally, the Women's Business 
Center Program was a three year program with a non-Federal 
dollar match requirement to obtain Federal funds. After three 
years the centers were considered ``retired'' from receipt of 
federal funds. Public Law 105-135, the Small Business 
Reauthorization Act of 1997, made the program permanent and 
extended the funding to five years. The match requirement, 
established in P.L. 105-135, is as follows:
    In years 1 and 2--1 non-Federal dollar for every 2 Federal 
dollars.
    In years 3 and 4--1 non-Federal dollar for each Federal 
dollar.
    In year 5--2 non-Federal dollars for each Federal dollar.
    H.R. 774 changes the ratio in the fifth year to 1 non-
Federal dollar for each Federal dollar. It will also raise the 
authorization level for the program from $8 million to $11 
million.
    This legislation is meant to apply to Women's Business 
Centers immediately so that the ratio change for the fifth year 
to 1 non-Federal dollar for each Federal dollar is effective 
for centers entering their fifth year of funding as of July 
1999, the date when centers begin a new funding cycle.

                          Need for Legislation

    This bill is a product of the information gathered at the 
hearing on the Women's Business Center Program held on February 
11, 1999. Based on information gathered at the hearing, Members 
on both sides of the aisle and the Administration agreed that a 
comprehensive study of the Women's Business Center Program is 
needed.
    Therefore, the Committee chose a two-step approach to 
address the issues raised at the hearing. The first step is 
H.R. 774, which addresses the two most immediate concerns, the 
funding ratio for Women's Business Centers for their fifth year 
of funding and the authorization of appropriations. The 
majority of Federally funded centers will enter their fifth and 
final year of funding this coming July. Currently they must 
raise 2 non-federal dollars to obtain 1 Federal dollar. This 
ratio creates an immense fundraising burden for Women's 
Business Centers, which will no longer receive Federal funds 
after July 2000. Thus, H.R. 774 changes the ratio in the fifth 
year to 1 non-Federal dollar for each Federal dollar.
    The second step for the Committee entails a hearing to 
follow completion of the GAO study which is currently 
contemplated. It is hoped that the study will improve 
theCommittee's understanding of where and how the program should grow 
as we consider additional legislation later this year.

                            Committee Action

    H.R. 774 was introduced on February 23, 1999. On February 
25, 1999, the Committee on Small Business met for the purpose 
of considering and reporting H.R. 818 and H.R. 774, as well as 
for considering the Committee's Budget Views and Estimates. 
H.R. 774 was introduced, considered as read, and opened for 
amendment. No amendments were offered. Chairman Talent moved to 
pass H.R. 774 and report it to the House. At 11:10 a.m., by 
voice vote, a quorum being present, the Committee passed the 
bill, H.R. 774, and ordered it reported.

                      Section-by-Section Analysis

Section 1. Short title.

    This act may be cited as the ``Women's Business Center 
Amendments Act of 1999''.

Section 2. Conditions of participation.

    This section eliminates subparagraphs (B) and (C) of 
Section 29(c)(1) of the Small Business Act, changing the 
funding ratio in the fifth year to 1 non-Federal dollar for 
each Federal dollar so that in the third, fourth and fifth 
years the ratio is 1:1.
    This bill will be considered effective as of October 1, 
1998.

Section 3. Authorization of appropriations.

    This section increases the authorization of appropriations 
from $8 million to $11 million.

               Congressional Budget Office Cost Estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                 Washington, DC, February 26, 1999.
Hon. James M. Talent,
Chairman, Committee on Small Business, U.S. House of Representatives, 
        Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 774, the Women's 
Business Center Amendments Act of 1999.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Mark Hadley.
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 774--Women's Business Center Amendments Act of 1999

    H.R. 774 would increase the authorization of appropriations 
for the Women's Business Center Program from $8 million to $11 
million for each fiscal year beginning in 1999. Women's 
business centers train and counsel women in the skills 
necessary to launch their own businesses. H.R. 774 also would 
change the requirement that a business center match each $1 of 
federal funds with $2 of private funds in the fifth year that 
the center receives federal support. Under the bill, the 
matching requirement in the fifth year would stay at the 
current third- and fourth-year level, $1 of private funds for 
each dollar of federal funds.
    For the purpose of this estimate, CBO assumes that H.R. 774 
will be enacted by June 30, 1999, and that the authorized 
amount will be appropriated for each year--including a 
supplemental appropriation for 1999. As a result, CBO estimates 
that outlays would increase by $2 million in 1999 and by $3 
million in each year over the 2000-2004 period, relative to the 
currently authorized level. According to the Small Business 
Administration, the Women's Business Center Program received 
the authorized level of $8 million in 1999 from amounts 
appropriated for this year. The costs of this bill fall within 
budget function 370 (commerce and housing credit).
    H.R. 774 would not affect direct spending or receipts; 
therefore, pay-as-you go procedures would not apply. The bill 
contains no intergovernmental or private-sector mandates as 
defined in the Unfunded Mandates Reform Act and would not 
affect the budgets of state, local, or tribal governments.
    The CBO staff contact is Mark Hadley. This estimate was 
approved by Robert A. Sunshine, Deputy Assistant Director for 
Budget Analysis.

                      Committee Estimate of Costs

    Pursuant to the Congressional Budget Act of 1974, the 
Committee estimates that the amendments to Small Business Act 
contained in H.R. 774 will increase appropriations no more than 
$15 million over the next five fiscal years. Furthermore, 
pursuant to clause 3(d)(2)(A) of rule XIII of the Rules of the 
House of Representatives, the Committee estimates that 
implementation of H.R. 774 will not significantly increase 
administrative costs. This concurs with the estimate of the 
Congressional Budget Office.

                           Oversight Findings

    In accordance with clause 4(c)(2) of rule X of the Rules of 
the House of Representatives, the Committee states that no 
oversight findings or recommendations have been made by the 
Committee on Government Reform with respect to the subject 
matter contained in H.R. 774.
    In accordance with clause 2(b)(1) of rule X of the Rules of 
the House of Representatives, the oversight findings and 
recommendations of the Committee on Small Business with respect 
to the subject matter contained in H.R. 774 are incorporated 
into the descriptive portions of this report.

                 Statement of Constitutional Authority

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds the authority for 
this legislation in Article I, Section 8, Clause 18, of the 
Constitution of the United States.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

                  SECTION 29 OF THE SMALL BUSINESS ACT

SEC. 29. WOMEN'S BUSINESS CENTER PROGRAM.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Conditions of Participation.--
          (1) Non-federal contributions.--As a condition of 
        receiving financial assistance authorized by this 
        section, the recipient organization shall agree to 
        obtain, after its application has been approved and 
        notice of award has been issued, cash contributions 
        from non-Federal sources as follows:
                  (A) in the first and second years, 1 non-
                Federal dollar for each 2 Federal dollars; and
                  [(B) in the third and fourth years, 1 non-
                Federal dollar for each Federal dollar; and
                  [(C) in the fifth year, 2 non-Federal dollars 
                for each Federal dollar.]
                  (B) in the third, fourth, and fifth years, 1 
                non-Federal dollar for each Federal dollar.

           *       *       *       *       *       *       *

  (k) Authorization of Appropriations.--
          (1) In general.--There is authorized to be 
        appropriated [$8,000,000] $11,000,000 for each fiscal 
        year to carry out the projects authorized under this 
        section, of which, for fiscal year 1998, not more than 
        5 percent may be used for administrative expenses 
        related to the program under this section.

           *       *       *       *       *       *       *

                                
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