I

104TH CONGRESS

1ST SESSION H. R. 2125

To provide for the termination of the present Small Business Administration

and certain of its functions, to establish a Small Business Administration

in the Department of the Treasury and an Office of Small Business

Advocacy in the Executive Office of the President, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JULY 27, 1995

Mr. DREIER (for himself, Mr. HEFLEY, Mr. SOLOMON, Mr. COX of California,

Mr. MCCOLLUM, Mr. HILLEARY, Mr. ROHRABACHER, Mr. ROYCE, Mr.

NEUMANN, Mr. STOCKMAN, and Mr. BAKER of California) introduced the

following bill; which was referred to the Committee on Small Business

A BILL

To provide for the termination of the present Small Business

Administration and certain of its functions, to establish

a Small Business Administration in the Department of

the Treasury and an Office of Small Business Advocacy

in the Executive Office of the President, and for other

purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Small Business Admin5 istration Transfer Act’’.
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1 TITLE I—REORGANIZATION OF

2 SMALL BUSINESS FUNCTIONS

3 SEC. 101. TERMINATION OF PRESENT SMALL BUSINESS AD4 MINISTRATION.

5 (a) IN GENERAL.—The present Small Business Ad6 ministration shall terminate on September 30, 1996.

7 (b) PRESENT SMALL BUSINESS ADMINISTRATION

8 DEFINED.—In this Act, the term ‘‘present Small Business

9 Administration’’ means the Small Business Administra10 tion established by section 4(a) of the Small Business Act,

11 as in effect on the day before the effective date of this

12 Act.

13 SEC. 102. ESTABLISHMENT OF SMALL BUSINESS ADMINIS14 TRATION IN DEPARTMENT OF THE TREAS15 URY.

16 (a) ESTABLISHMENT.—There is established in the

17 Department of the Treasury a Small Business Adminis18 tration (hereinafter in this section referred to as the ‘‘Ad19 ministration’’).

20 (b) APPOINTMENT OF UNDER SECRETARY.—The Ad21 ministration shall be headed by an Under Secretary of the

22 Treasury who shall be appointed by the President, by and

23 with the advice and consent of the Senate, and who shall

24 be compensated at the rate provided for level III of the
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1 Executive Schedule in section 5314 of title 5, United

2 States Code.

3 (c) APPOINTMENT OF DEPUTY UNDER SEC4 RETARY.—The Secretary of the Treasury is authorized to

5 appoint a Deputy Under Secretary who shall assist in the

6 exercise of the functions vested in the Administration and

7 who shall be compensated at the rate provided for level

8 IV of the Executive Schedule in section 5315 of title 5,

9 United States Code.

10 SEC. 103. ESTABLISHMENT OF OFFICE OF SMALL BUSINESS

11 ADVOCACY IN EXECUTIVE OFFICE OF THE

12 PRESIDENT.

13 (a) ESTABLISHMENT.—There is established in the

14 Executive Office of the President an Office of Small Busi15 ness Advocacy (hereinafter in this section referred to as

16 the ‘‘Office’’).

17 (b) DIRECTOR.—The Office shall be headed by a Di18 rector who shall be appointed by the President, by and

19 with the advice and consent of the Senate, and who shall

20 be compensated at the rate provided for level IV of the

21 Executive Schedule in section 5315 of title 5, United

22 States Code.

23 (c) FUNCTIONS OF THE DIRECTOR.—The Director is

24 authorized to carry out any of the functions assigned to

25 the Chief Counsel of Advocacy of the Small Business Ad-
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1 ministration under the Small Business Act, as in effect

2 on the day before the effective date of this Act.

3 SEC. 104. CONFORMING AMENDMENTS TO TITLE 5, UNITED

4 STATES CODE.

5 (a) SECTION 5314.—Section 5314 of title 5, United

6 States Code, is amended—

7 (1) by striking ‘‘Administrator of the Small

8 Business Administration.’’; and

9 (2) by striking ‘‘Under Secretaries of the

10 Treasury (3).’’ and inserting ‘‘Under Secretaries of

11 the Treasury (4).’’.

12 (b) SECTION 5315.—Section 5315 of title 5, United

13 States Code, is amended—

14 (1) by striking ‘‘Deputy Administrator of the

15 Small Business Administration.’’;

16 (2) by striking ‘‘Chief Counsel for Advocacy,

17 Small Business Administration.’’ and inserting ‘‘Di18 rector of the Office of Small Business Advocacy.’’;

19 (3) by striking ‘‘Inspector General, Small Busi20 ness Administration.’’; and

21 (4) by striking ‘‘Deputy Under Secretaries of

22 the Treasury (or Assistant Secretaries of the Treas23 ury) (2).’’ and inserting ‘‘Deputy Under Secretaries

24 of the Treasury (or Assistant Secretaries of the

25 Treasury) (3).’’.
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1 (c) SECTION 5316.—Section 5316 of title 5, United

2 States Code, is amended by striking ‘‘Associate Adminis3 trators of the Small Business Administration (4).’’.

4 TITLE II—TERMINATION OF CER5 TAIN AUTHORITIES UNDER

6 SMALL BUSINESS ACT AND

7 SMALL BUSINESS INVEST8 MENT ACT OF 1958

9 SEC. 201. REPEAL OF SMALL BUSINESS ACT.

10 (a) REPEAL.—Except as otherwise provided by this

11 section, the Small Business Act is repealed effective Sep12 tember 30, 1995.

13 (b) CONTINUED EFFECTIVENESS OF CERTAIN FUNC14 TIONS.—Notwithstanding subsection (a), the following

15 provisions of the Small Business Act shall remain in effect

16 after September 30, 1995:

17 (1) Section 3(a) (relating to the definition of

18 ‘‘small business concern’’).

19 (2) Section 4(b)(2) (relating to maintenance of

20 a small business economic database).

21 (3) Section 5(f) (relating to the authority of

22 lenders to sell the guaranteed portion of certain

23 loans on the secondary market).

24 (4) Section 7(a), as amended by this Act (relat25 ing to the general business loan program).
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1 (5) Section 8(b)(1)(B) (relating to the Senior

2 Corps of Retired Executives (SCORE) and the Ac3 tive Corps of Executives (ACE)).

4 (6) Section 15 (relating to the award of Federal

5 contracts to small business concerns).

6 (c) CONTINUED APPLICABILITY OF CERTAIN PROVI7 SIONS.—Notwithstanding subsection (a), the following

8 provisions of the Small Business Act shall remain in effect

9 after September 30, 1995, insofar as such provisions apply

10 to the functions referred to in subsection (b):

11 (1) Section 3(h) (relating to the definition of

12 ‘‘credit elsewhere’’).

13 (2) Section 4(e) (relating to denial of assistance

14 to persons engaged in the production or distribution

15 of obscene products or services).

16 (3) Section 4(f) (relating to denial of assistance

17 to persons not in compliance with child support obli18 gations).

19 (4) Section 5(b) (relating to general authorities

20 to carry out functions).

21 (5) Section 16 (relating to penalties for prohib22 ited acts).
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1 SEC. 202. REPEAL OF SMALL BUSINESS INVESTMENT ACT

2 OF 1958.

3 The Small Business Investment Act of 1958 is re4 pealed effective September 30, 1996.

5 TITLE III—TRANSFERS OF FUNC6 TIONS TO SECRETARY OF THE

7 TREASURY

8 SEC. 301. TRANSFER OF GENERAL BUSINESS LOAN PRO9 GRAM.

10 (a) IN GENERAL.—Section 7(a) of the Small Busi11 ness Act (15 U.S.C. 636(a)) is amended to read as follows:

12 ‘‘(a) GENERAL BUSINESS LOAN PROGRAM.—

13 ‘‘(1) IN GENERAL.—The Secretary of the

14 Treasury (hereinafter in this subsection referred to

15 as the ‘Secretary’) is authorized to guarantee banks

16 and other financial institutions against loss of prin17 cipal and interest on any loan made to a small busi18 ness concern for plant acquisition, construction, con19 version, or expansion, including the acquisition of

20 land, material, supplies, equipment, and working

21 capital.

22 ‘‘(2) TERMS AND CONDITIONS.—The authority

23 of the Secretary under paragraph (1) shall be sub24 ject to the following terms and conditions:

25 ‘‘(A) CREDIT ELSEWHERE REQUIRE26 MENT.—No guarantee may be made under this
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1 subsection if the applicant can obtain credit

2 elsewhere.

3 ‘‘(B) SOUND VALUE REQUIREMENT.—No

4 guarantee may be made under this subsection

5 on a loan unless the loan is of such sound value

6 or so secured as reasonably to assure repay7 ment.

8 ‘‘(C) MAXIMUM GUARANTEE PERCENT9 AGE.—No guarantee may be made under this

10 subsection extending to more than 75 percent

11 of the balance of the financing outstanding at

12 the time of disbursement.

13 ‘‘(D) MAXIMUM LOAN AMOUNTS.—No

14 guarantee may be made under this subsection if

15 the total amount outstanding and committed to

16 the borrower under this subsection would ex17 ceed $750,000.

18 ‘‘(E) MAXIMUM LOAN TERM.—No guaran19 tee may be made under this subsection on a

20 loan if the terms of the loan permit repayment

21 more than 25 years after the date of the loan;

22 except that such portion of a loan made for the

23 purpose of acquiring real property or construct24 ing, converting, or expanding facilities may

25 have a maturity of 25 years plus such addi-
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1 tional period as is estimated may be required to

2 complete such construction, conversion, or ex3 pansion.

4 ‘‘(F) MAXIMUM INTEREST RATE.—No

5 guarantee may be made under this subsection

6 on a loan if the rate of interest charged on the

7 loan exceeds such rate as may be prescribed by

8 the Secretary.

9 ‘‘(3) GUARANTEE AGREEMENTS.—

10 ‘‘(A) IN GENERAL.—The Secretary shall

11 enter into a guarantee agreement with each fi12 nancial institution participating in the program

13 established under this subsection.

14 ‘‘(B) TERMS AND CONDITIONS.—A guar15 antee agreement entered into under subpara16 graph (A) shall contain such terms and condi17 tions as may be necessary to carry out the ob18 jectives of this subsection and to require the fi19 nancial institution to comply with the require20 ments of this subsection.

21 ‘‘(C) TANGIBLE ASSETS REQUIREMENT.—

22 As part of each guarantee agreement entered

23 under this paragraph, a financial institution

24 shall agree to maintain at all times during the

25 period of its participation in the program estab-
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1 lished under this subsection tangible capital as2 sets in an amount not less than 6 percent of

3 the total assets of the financial institution.

4 ‘‘(D) AUTHORITY TO MAKE LOANS.—A

5 guarantee agreement entered into under this

6 paragraph shall delegate to the financial insti7 tution—

8 ‘‘(i) complete authority to make and

9 close loans with a guarantee from the Sec10 retary under this subsection without ob11 taining the prior specific approval of the

12 Secretary; and

13 ‘‘(ii) complete authority to service and

14 liquidate such loans.

15 ‘‘(4) GUARANTEE FEES.—

16 ‘‘(A) AUTHORITY TO COLLECT.—The Sec17 retary shall collect a guarantee fee equal to 2

18 percent of the guaranteed amount of any loan

19 made under this subsection other than a loan

20 repayable in 1 year or less. The fee shall be

21 payable by the lender and may be charged to

22 the borrower.

23 ‘‘(B) ADJUSTMENT OF AMOUNT.—The

24 Secretary may increase or decrease the amount

25 of fees collected pursuant to this paragraph if
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1 the Secretary determines, after providing notice

2 and opportunity for public comment, that such

3 an increase or decrease is necessary to cover the

4 Secretary’s costs of administration of the pro5 gram under this subsection.

6 ‘‘(5) REDUCTION IN GUARANTEES TO CERTAIN

7 LENDERS.—The Secretary shall reduce the guaran8 teed portion of loans made by a financial institution

9 under the program established by this subsection if

10 the Secretary determines that losses on loans made

11 by the financial institution under the program have

12 exceeded average losses on loans made under the

13 program by other financial institutions.

14 ‘‘(6) ABILITY OF A FINANCIAL INSTITUTION TO

15 CALL LOANS.—Notwithstanding any other provision

16 of this Act, the Secretary shall not limit the ability

17 of a financial institution participating in the pro18 gram established under this subsection to call a loan

19 guaranteed under this subsection.

20 ‘‘(7) PENALTY FEES.—The Secretary is author21 ized to permit lenders participating in the program

22 established under this subsection to impose and col23 lect a reasonable penalty fee on late payments of

24 loans guaranteed under this subsection.

25 ‘‘(8) ANNUAL COMPLIANCE REVIEW.—
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1 ‘‘(A) REQUIREMENT.—As a condition of

2 participation in the program established under

3 this subsection, each financial institution shall

4 be subject to an annual review to ensure com5 pliance with the requirements of this sub6 section. Such review shall be carried out by the

7 Secretary at the expense of the financial insti8 tution.

9 ‘‘(B) INSURED DEPOSITORY INSTITU10 TIONS.—In the case of an insured depository

11 institution (as defined by section 3(c)(2) of the

12 Federal Deposit Insurance Act), the review

13 under subparagraph (A) may be conducted as

14 part of an examination conducted by the appro15 priate Federal banking agency (as defined by

16 section 3(q) of such Act).

17 ‘‘(C) INSURED CREDIT UNIONS.—In the

18 case of an insured credit union (as defined by

19 section 101(7) of the Federal Credit Union

20 Act), the review under subparagraph (A) may

21 be conducted as part of an examination con22 ducted by the National Credit Union Adminis23 tration.’’.

24 (b) APPLICABILITY.—
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1 (1) GENERAL RULE.—Except as provided by

2 paragraph (2), the amendment made by subsection

3 (a) shall apply to loans made after September 30,

4 1995.

5 (2) PHASE-IN PERIOD.—The Secretary of the

6 Treasury may phase-in application of the amend7 ment to section 7(a) of the Small Business Act made

8 by subsection (a) of this section to the extent that

9 the Secretary determines that such a phase-in period

10 is necessary to prevent disruption to financial insti11 tutions currently participating in the program estab12 lished under section 7(a) of the Small Business Act.

13 SEC. 302. TRANSFER OF FINANCIAL OBLIGATIONS OWNED

14 BY SMALL BUSINESS ADMINISTRATION.

15 (a) TRANSFERS TO SECRETARY OF THE TREAS16 URY.—There are transferred to the Secretary of the

17 Treasury the loans, notes, bonds, debentures, securities,

18 and other financial obligations owned by the present Small

19 Business Administration, together with all assets or other

20 rights (including security interests) incident thereto, and

21 all liabilities related thereto, and there are assigned to the

22 Secretary the functions, powers, and abilities vested in or

23 delegated to the present Small Business Administration

24 to manage, service, collect, sell, dispose of, or otherwise

25 realize proceeds on obligations owed to the present Small
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1 Business Administration under authority of the Small

2 Business Act and the Small Business Investment Act of

3 1958 (including those assets purchased from the Federal

4 Financing Bank pursuant to subsection (e) of this sec5 tion). With respect to obligations owned by the present

6 Small Business Administration under authority of the

7 Small Business Investment Act of 1958, this section shall

8 not take effect until September 30, 1996.

9 (b) LEGAL RIGHTS, OBLIGATIONS, RESPONSIBIL10 ITIES, AND LIABILITIES.—The Secretary of the Treasury

11 shall succeed to all rights and obligations of the present

12 Small Business Administration with respect to any and

13 all legal rights, obligations, responsibilities, and liabilities

14 arising out of the obligations described in subsections (a)

15 and (e) of this section, including any outstanding guaran16 tee of the present Small Business Administration and any

17 of its defenses against a claim under such guarantee, and

18 shall have the same legal rights, obligations, responsibil19 ities, and liabilities as the present Small Business Admin20 istration had with respect to such obligations, and the reg21 ulation of brokers and dealers in such obligations.

22 (c) DEPOSIT OF AMOUNTS RECEIVED FROM TRANS23 FERRED ASSETS.—All amounts received by the Secretary

24 of the Treasury with respect to any asset transferred to

25 the Secretary pursuant to subsection (a) or (e) of this sec-
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1 tion shall be deposited in the Treasury as miscellaneous

2 receipts.

3 (d) DISPOSITION OF ASSETS.—

4 (1) IN GENERAL.—The Secretary of the Treas5 ury is authorized to dispose of any loan, debenture,

6 or other asset acquired by the Secretary pursuant to

7 subsections (a) and (e) of this section (including ob8 ligations formerly guaranteed pursuant to the Small

9 Business Act or the Small Business Investment Act

10 of 1958 that will be or have been acquired by the

11 Secretary) in the way, in amounts, at prices (for

12 cash, obligations, property, or combination of cash,

13 obligations, or property), and on such conditions as

14 the Secretary considers advisable and in the public

15 interest.

16 (2) LIMITATION ON APPLICABILITY OF CERTAIN

17 LAWS.—Any disposition by the Secretary of the

18 Treasury under this subsection, including a disposi19 tion through sale of the Federal Government’s inter20 est in an asset or in a pool of assets, shall not be

21 subject to the provisions of the Federal Property

22 and Administrative Services Act of 1949 or the pro23 visions of any Federal or State securities law.

24 (3) PROHIBITION ON GUARANTEES.—Any dis25 position of an asset under this subsection shall be
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1 without any guarantee of the United States or any

2 agency or instrumentality thereof.

3 (4) TRANSFER OF INFORMATION.—Notwith4 standing any other provision of law, including the

5 Privacy Act of 1974, the Secretary may transfer to

6 a prospective purchaser or transferee of an asset

7 under this subsection such information as may be in8 cident to the disposition of the asset.

9 (5) LIMITATION ON APPLICABILITY OF CERTAIN

10 FILING REQUIREMENTS.—Notwithstanding any

11 State or local law or regulation to the contrary, no

12 filing or other action shall be required in order to

13 continue the perfected status of any security interest

14 transferred to the Secretary of the Treasury which

15 was held, on the day before the effective date of this

16 Act, by the present Small Business Administration

17 or any representative, transferee, or assignee there18 of.

19 (6) CONTINUED APPLICABILITY OF CERTAIN

20 LAWS.—Sections 5 (b) and (e), 7 (c) (1) and (2), 16,

21 and 17 of the Small Business Act shall remain in ef22 fect with respect to the assets and guarantees trans23 ferred to the Secretary of the Treasury by this Act

24 as long as the Secretary shall retain any such asset

25 or guarantee.
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1 (e) OBLIGATIONS HELD BY FEDERAL FINANCING

2 BANK.—The Secretary of the Treasury is authorized and

3 directed, subject to funds being specifically appropriated

4 for such purpose, to purchase from the Federal Financing

5 Bank all notes, bonds, debentures, or other obligations

6 held by the Federal Financing Bank that were, on the day

7 before the effective date of this Act, guaranteed or other8 wise backed by the present Small Business Administra9 tion. Such purchases are to be made at prices determined

10 by the Federal Financing Bank as if the obligations were

11 repurchased by the respective obligers consistent with the

12 terms of such obligations or such other agreements be13 tween the present Small Business Administration and the

14 Federal Financing Bank as are in effect on the day before

15 the effective date of this Act.

16 (f) REGULATORY AUTHORITIES.—Effective Septem17 ber 30, 1996, there are transferred to the Secretary of

18 the Treasury the regulatory authorities with respect to

19 small business investment companies and minority enter20 prise small business investment companies conferred by

21 the Small Business Investment Act of 1958; except that

22 such regulatory authorities shall expire—

23 (1) for each loan, debenture, or equity security

24 purchased or guaranteed by the present Small Busi25 ness Administration, on the date such loan or deben-
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1 ture is disposed of by the Secretary of the Treasury;

2 or

3 (2) for each small business investment company

4 or minority enterprise small business investment

5 company whose loans, debentures, or equity securi6 ties were purchased or guaranteed by the present

7 Small Business Administration, on the date on

8 which the last such loan, debenture, or equity secu9 rity of such company is disposed of by the Secretary

10 of the Treasury.

11 TITLE IV—OTHER TRANSFERS

12 SEC. 401. SIZE STANDARDS FOR SMALL BUSINESS CON13 CERNS; GOVERNMENT PROCUREMENT PRO14 GRAMS.

15 There are transferred to the Director of the Office

16 of Management of Budget all of the functions, powers, and

17 duties vested in or delegated to the present Small Business

18 Administration under sections 3(a) and 15 of the Small

19 Business Act.

20 SEC. 402. MAINTENANCE OF NATIONAL SMALL BUSINESS

21 ECONOMIC INDICES; SCORE AND ACE PRO22 GRAMS.

23 There are transferred to the Director of the Office

24 of Small Business Advocacy all of the functions, powers,

25 and duties vested in or delegated to the present Small
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1 Business Administration under sections 4(b)(2) and

2 8(b)(1)(B) of the Small Business Act.

3 TITLE V—GENERAL

4 ADMINISTRATIVE PROVISIONS

5 SEC. 501. REFERENCES TO TRANSFERS MADE BY THIS ACT.

6 In this Act, any reference to the transfer of a func7 tion or any other transfer made by this Act shall include

8 transfers made by amendments made by this Act.

9 SEC. 502. TRANSFER OF AUTHORITIES.

10 To the extent necessary or appropriate, and consist11 ent with the provisions of this Act, in order to perform

12 a function transferred by this Act, the head of a depart13 ment or agency may exercise any authority or part thereof

14 which was provided by law to the present Small Business

15 Administration or the Administrator of the Small Busi16 ness Administration.

17 SEC. 503. ORGANIZATIONAL ENTITIES AND OFFICES.

18 (a) IN GENERAL.—With the exception of the Small

19 Business Administration established by section 102 of this

20 Act, the head of a department or agency is authorized to

21 locate among the officers of the department or agency the

22 functions transferred to the department or agency, and

23 to establish, consolidate, alter, or discontinue such organi24 zational entities or offices within the department or agency

25 as may be necessary or appropriate.
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1 (b) TREATMENT DURING TRANSITION.—In accord2 ance with section 601 of this Act, and regulations issued

3 thereunder, and until such time as the consolidation and

4 termination of the transferred functions is completed, the

5 head of a department or agency shall treat the organiza6 tional entities and functions transferred by this Act to

7 their respective departments, as if they remained a part

8 of the present Small Business Administration.

9 SEC. 504. DELEGATION OF FUNCTIONS.

10 Except where otherwise expressly provided for by law,

11 the head of a department or agency may delegate any of

12 the functions now vested in a position transferred pursu13 ant to this Act that relate to such a position to any of

14 the officers and employees of the department or agency,

15 and may authorize successive redelegation of those func16 tions, as appropriate.

17 SEC. 505. RULES AND REGULATIONS.

18 The head of a department or agency is authorized

19 to issue such rules and regulations as may be necessary

20 or appropriate to carry out the functions, powers, and du21 ties vested or transferred by this Act.

22 SEC. 506. TRANSFER OF FUND ACCOUNTS.

23 Any appropriations or fund accounts established to

24 carry out the purposes of this Act shall be deemed to be

25 successor accounts to those that existed in the present
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1 Small Business Administration prior to the date of the en2 actment of this Act, and the balances of those prior ac3 counts may be transferred and merged with any of the

4 successor accounts so established.

5 TITLE VI—TRANSITIONAL, SAV6 INGS, AND CONFORMING

7 PROVISIONS

8 SEC. 601. TRANSFERS.

9 So much of the personnel (including Senior Executive

10 Service and GS–16, GS–17, and GS–18 positions), posi11 tions, assets, liabilities, contracts, property, records, and

12 unexpended balance of appropriations, authorizations, al13 locations, and other funds employed, held, used, arising

14 from, available to or to be made available in connection

15 with any functions or authority transferred by this Act,

16 are transferred to the head of the appropriate agency, ex17 cept that no such unexpended balances transferred shall

18 be used for purposes other than those for which the appro19 priation was originally made.

20 SEC. 602. DIRECTOR OF OFFICE OF MANAGEMENT AND

21 BUDGET.

22 The Director of the Office of Management and Budg23 et, in consultation with the Administrator of the Small

24 Business Administration, the Secretary of the Treasury,

25 and other officials as appropriate, shall make such deter-
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1 minations as may be necessary with regard to the func2 tions transferred by this Act, assets, liabilities, contracts,

3 property, records, and unexpended balances of appropria4 tions, authorizations, allocations, and other funds held,

5 used, arising from, available to or to be made available

6 in connection with the functions transferred by this Act,

7 that the Director considers necessary to accomplish the

8 purposes of this Act.

9 SEC. 603. SAVINGS PROVISIONS.

10 (a) EXISTING RULES, REGULATIONS, AND OR11 DERS.—All orders, determinations, rules, regulations, per12 mits, contracts, certificates, licenses, and privileges—

13 (1) that have been issued, made, granted, or al14 lowed to become effective by the President, any Fed15 eral department or agency, or official thereof, or by

16 a court of competent jurisdiction, in the performance

17 of functions which are transferred by this Act; and

18 (2) that are in effect on September 30, 1995,

19 shall continue in effect according to their terms until

20 modified, terminated, superseded, set aside, or re21 voked in accordance with law by the head of the de22 partment or agency to which such function is trans23 ferred, or other authorized officials, a court of com24 petent jurisdiction, or by operation of law.

25 (b) ADMINISTRATIVE PROCEEDINGS.—
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1 (1) PENDING PROCEEDINGS NOT AFFECTED.—

2 The provisions of this Act shall not affect any pro3 ceedings or any application for any license, permit,

4 certificate, or financial assistance pending on the ef5 fective date of this Act; but such proceedings and

6 applications, to the extent that they relate to func7 tions so transferred, shall be continued.

8 (2) EFFECT OF ORDERS.—Orders shall be is9 sued in such a proceeding, appeals shall be taken

10 therefrom, and payments shall be made under such

11 orders, as if this Act had not been enacted, and or12 ders issued in such a proceeding shall continue in ef13 fect until modified, terminated, superseded, or re14 voked by a duly authorized official, by a court of

15 competent jurisdiction, or by operation of law. Noth16 ing in this subsection prohibits the discontinuance or

17 modification of such a proceeding under the same

18 terms and conditions and to the same extent that

19 such a proceeding could have been discontinued or

20 modified if this Act had not been enacted.

21 (3) ISSUANCE OF REGULATIONS PROVIDING FOR

22 TRANSFER.—The head of a department or agency

23 may issue regulations providing for the orderly

24 transfer of such a proceeding to the department or

25 agency.
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1 (c) PENDING JUDICIAL PROCEEDINGS.—Except as

2 provided in subsection (e) of this section—

3 (1) the provisions of this Act do not affect a

4 suit commenced before this Act takes effect; and

5 (2) in such a suit, proceedings shall be had, ap6 peals taken, and judgments rendered in the same

7 manner and effect as if this Act had not been en8 acted.

9 (d) CAUSES OF ACTION.—No suit, action, or other

10 proceeding commenced by or against any officer in the of11 ficer’s official capacity as an officer of any department or

12 agency, functions of which are transferred by this Act,

13 shall abate by reason of the enactment of this Act. No

14 cause of action by or against any department or agency,

15 functions of which are transferred by this Act, or by or

16 against any officer thereof in the officer’s official capacity

17 shall abate by reason of the enactment of this Act. The

18 authority to impose sanctions and grant waivers with re19 spect to conflicts of interest occurring before the effective

20 date of this Act, and the requirement to maintain records

21 relating to the consideration of conflicts of interest before

22 the effective date of this Act, do not abate by reason of

23 the enactment of this Act.

24 (e) PARTIES TO A SUIT.—If, before the date on which

25 this Act takes effect, any department or agency, or any
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1 officer thereof in the officer’s official capacity, is a party

2 to a suit, and under this Act any function of that depart3 ment, agency, or officer is transferred to the head of a

4 department or agency, then the suit shall be continued

5 with the head of the department or agency substituted.

6 SEC. 604. COORDINATION OF TRANSFER ACTIVITIES.

7 (a) PLANNING.—The Administrator of the Small

8 Business Administration, the Secretary of the Treasury,

9 and other officials as appropriate shall, beginning as soon

10 as practicable after the date of the enactment of this Act,

11 plan for the orderly transfer of functions and personnel

12 pursuant to this Act.

13 (b) USE OF PERSONNEL.—With the consent of the

14 Administrator of the Small Business Administration, the

15 head of each agency to which functions are transferred

16 by this Act is authorized to use the services of such offi17 cers, employees, and other personnel of the present Small

18 Business Administration for such period of time as may

19 reasonably be needed to facilitate the orderly transfer of

20 functions pursuant to this Act.

21 SEC. 605. REFERENCES.

22 With respect to any functions transferred by this Act

23 and exercised after the effective date of this Act, reference

24 in any other Federal law to any department, commission,

25 or agency or any officer or office the functions of which
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1 are so transferred shall be considered to refer to the offi2 cial to whom they were transferred.

3 SEC. 606. TRANSITIONAL PERIOD.

4 (a) IN GENERAL.—During the period from Septem5 ber 30, 1995, until September 30, 1996, the present Small

6 Business Administration shall remain in existence, and

7 there is authorized to be appropriated such sums as may

8 be necessary for the purposes of winding up its affairs and

9 advising the Secretary of the Treasury and other appro10 priate officials, insofar as they may request, in the exercise

11 of the functions transferred by this Act. During this tran12 sitional period, the present Small Business Administration

13 may not engage in any program activities under the Small

14 Business Act, either with respect to those functions that

15 are transferred to other agencies or those that are termi16 nated.

17 (b) EXCEPTIONS.—Notwithstanding subsection (a),

18 the present Small Business Administration—

19 (1) may continue to carry out functions under

20 the Small Business Investment Act of 1958 until

21 September 30, 1996; and

22 (2) upon request of the Secretary of the Treas23 ury, may continue to carry out functions under sec24 tion 7(a) of the Small Business Act until September
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1 30, 1996, or the date on which the transfer of such

2 functions is complete, whichever occurs first.

3 SEC. 607. EFFECTIVE DATE.

4 (a) IN GENERAL.—Unless otherwise indicated, the

5 provisions of this Act shall take effect on September 30,

6 1995.

7 (b) EXCEPTIONS.—Notwithstanding subsection (a),

8 at any time after the date of the enactment of this Act—

9 (1) the officers provided for in sections 102 and

10 103 of this Act may be nominated and appointed, as

11 provided in such sections; and

12 (2) the head of a department or agency to

13 whom functions are transferred under this Act may

14 issue regulations under section 505 of this Act.

15 (c) TEMPORARY APPOINTMENTS.—If any officer re16 quired by this Act to be appointed by and with the advice

17 and consent of the Senate has not entered office on the

18 effective date of this Act, the President may designate any

19 officer whose appointment was required to be made by and

20 with the advice and consent of the Senate, and who was

21 such an officer immediately before the effective date of

22 this Act, to act in the office until it is filled as provided

23 in this Act. While so acting, such an officer shall be com-
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1 pensated at the rate prescribed by this Act for the office

2 in which the officer acts.

Æ

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