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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1907 Introduced in Senate (IS)]

109th CONGRESS
  1st Session
                                S. 1907

To promote the development of Native American small business concerns, 
                        and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            October 21, 2005

  Mr. Johnson (for himself, Ms. Cantwell, Mr. Dorgan, Mr. Inouye, Mr. 
    Kerry, Mrs. Murray, Mr. Smith, and Ms. Stabenow) introduced the 
 following bill; which was read twice and referred to the Committee on 
                  Small Business and Entrepreneurship

_______________________________________________________________________

                                 A BILL

 
To promote the development of Native American small business concerns, 
                        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 ``Native American Small Business 
Development Act of 2005''.

SEC. 2. NATIVE AMERICAN SMALL BUSINESS DEVELOPMENT PROGRAM.

    The Small Business Act (15 U.S.C. 631 et seq.) is amended--
            (1) by redesignating section 37 as section 38; and
            (2) by inserting after section 36 the following:

``SEC. 37. NATIVE AMERICAN SMALL BUSINESS DEVELOPMENT PROGRAM.

    ``(a) Definitions.--As used in this section--
            ``(1) the term `Alaska Native' has the same meaning as the 
        term `Native' in section 3(b) of the Alaska Native Claims 
        Settlement Act (43 U.S.C. 1602(b));
            ``(2) the term `Alaska Native corporation' has the same 
        meaning as the term `Native Corporation' in section 3(m) of the 
        Alaska Native Claims Settlement Act (43 U.S.C. 1602(m));
            ``(3) the term `Assistant Administrator' means the 
        Assistant Administrator of the Office of Native American 
        Affairs established under subsection (b);
            ``(4) the terms `center' and `Native American business 
        center' mean a center established under subsection (c);
            ``(5) the term `Native American business development 
        center' means an entity providing business development 
        assistance to federally recognized tribes and Native Americans 
        under a grant from the Minority Business Development Agency of 
        the Department of Commerce;
            ``(6) the term `Native American small business concern' 
        means a small business concern that is owned and controlled 
        by--
                    ``(A) a member of an Indian tribe or tribal 
                government;
                    ``(B) an Alaska Native or Alaska Native 
                corporation; or
                    ``(C) a Native Hawaiian or Native Hawaiian 
                organization;
            ``(7) the term `Native Hawaiian' has the same meaning as in 
        section 625 of the Older Americans Act of 1965 (42 U.S.C. 
        3057k);
            ``(8) the term `Native Hawaiian organization' has the same 
        meaning as in section 8(a)(15);
            ``(9) the term `tribal college' has the same meaning as the 
        term `tribally controlled college or university' has in section 
        2(a)(4) of the Tribally Controlled Community College Assistance 
        Act of 1978 (25 U.S.C. 1801(a)(4));
            ``(10) the term `tribal government' has the same meaning as 
        the term `Indian tribe' has in section 7501(a)(9) of title 31, 
        United States Code; and
            ``(11) the term `tribal lands' means all lands within the 
        exterior boundaries of any Indian reservation.
    ``(b) Office of Native American Affairs.--
            ``(1) Establishment.--There is established within the 
        Administration the Office of Native American Affairs, which, 
        under the direction of the Assistant Administrator, shall 
        implement the Administration's programs for the development of 
        business enterprises by Native Americans.
            ``(2) Purpose.--The purpose of the Office of Native 
        American Affairs is to assist Native American entrepreneurs 
        to--
                    ``(A) start, operate, and grow small business 
                concerns;
                    ``(B) develop management and technical skills;
                    ``(C) seek Federal procurement opportunities;
                    ``(D) increase employment opportunities for Native 
                Americans through the start and expansion of small 
                business concerns; and
                    ``(E) increase the access of Native Americans to 
                capital markets.
            ``(3) Assistant administrator.--
                    ``(A) Appointment.--The Administrator shall appoint 
                a qualified individual to serve as Assistant 
                Administrator of the Office of Native American Affairs 
                in accordance with this paragraph.
                    ``(B) Qualifications.--The Assistant Administrator 
                appointed under subparagraph (A) shall have--
                            ``(i) knowledge of the Native American 
                        culture; and
                            ``(ii) experience providing culturally 
                        tailored small business development assistance 
                        to Native Americans.
                    ``(C) Employment status.--The Assistant 
                Administrator shall be a Senior Executive Service 
                position under section 3132(a)(2) of title 5, United 
                States Code, and shall serve as a noncareer appointee, 
                as defined in section 3132(a)(7) of title 5, United 
                States Code.
                    ``(D) Responsibilities and duties.--The Assistant 
                Administrator shall--
                            ``(i) administer and manage the Native 
                        American Small Business Development program 
                        established under this section;
                            ``(ii) recommend the annual administrative 
                        and program budgets for the Office of Native 
                        American Affairs;
                            ``(iii) consult with Native American 
                        business centers in carrying out the program 
                        established under this section;
                            ``(iv) recommend appropriate funding 
                        levels;
                            ``(v) review the annual budgets submitted 
                        by each applicant for the Native American Small 
                        Business Development program;
                            ``(vi) select applicants to participate in 
                        the program under this section;
                            ``(vii) implement this section; and
                            ``(viii) maintain a clearinghouse to 
                        provide for the dissemination and exchange of 
                        information between Native American business 
                        centers.
                    ``(E) Consultation requirements.--In carrying out 
                the responsibilities and duties described in this 
                paragraph, the Assistant Administrator shall confer 
                with and seek the advice of--
                            ``(i) Administration officials working in 
                        areas served by Native American business 
                        centers and Native American business 
                        development centers;
                            ``(ii) the Bureau of Indian Affairs of the 
                        Department of the Interior;
                            ``(iii) tribal governments;
                            ``(iv) tribal colleges;
                            ``(v) Alaska Native corporations; and
                            ``(vi) Native Hawaiian organizations.
    ``(c) Native American Small Business Development Program.--
            ``(1) Authorization.--
                    ``(A) In general.--The Administration, through the 
                Office of Native American Affairs, shall provide 
                financial assistance to tribal governments, tribal 
                colleges, Native Hawaiian organizations, and Alaska 
                Native corporations to create Native American business 
                centers in accordance with this section.
                    ``(B) Use of funds.--The financial and resource 
                assistance provided under this subsection shall be used 
                to overcome obstacles impeding the creation, 
                development, and expansion of small business concerns, 
                in accordance with this section, by--
                            ``(i) reservation-based American Indians;
                            ``(ii) Alaska Natives; and
                            ``(iii) Native Hawaiians.
            ``(2) 5-year projects.--
                    ``(A) In general.--Each Native American business 
                center that receives assistance under paragraph (1)(A) 
                shall conduct 5-year projects that offer culturally 
                tailored business development assistance in the form 
                of--
                            ``(i) financial education, including 
                        training and counseling in--
                                    ``(I) applying for and securing 
                                business credit and investment capital;
                                    ``(II) preparing and presenting 
                                financial statements; and
                                    ``(III) managing cash flow and 
                                other financial operations of a 
                                business concern;
                            ``(ii) management education, including 
                        training and counseling in planning, 
                        organizing, staffing, directing, and 
                        controlling each major activity and function of 
                        a small business concern; and
                            ``(iii) marketing education, including 
                        training and counseling in--
                                    ``(I) identifying and segmenting 
                                domestic and international market 
                                opportunities;
                                    ``(II) preparing and executing 
                                marketing plans;
                                    ``(III) developing pricing 
                                strategies;
                                    ``(IV) locating contract 
                                opportunities;
                                    ``(V) negotiating contracts; and
                                    ``(VI) utilizing varying public 
                                relations and advertising techniques.
                    ``(B) Business development assistance recipients.--
                The business development assistance under subparagraph 
                (A) shall be offered to prospective and current owners 
                of small business concerns that are owned by--
                            ``(i) American Indians or tribal 
                        governments, and located on or near tribal 
                        lands;
                            ``(ii) Alaska Natives or Alaska Native 
                        corporations; or
                            ``(iii) Native Hawaiians or Native Hawaiian 
                        organizations.
            ``(3) Form of federal financial assistance.--
                    ``(A) Documentation.--
                            ``(i) In general.--The financial assistance 
                        to Native American business centers authorized 
                        under this subsection may be made by grant, 
                        contract, or cooperative agreement.
                            ``(ii) Exception.--Financial assistance 
                        under this subsection to Alaska Native 
                        corporations or Native Hawaiian organizations 
                        may only be made by grant.
                    ``(B) Payments.--
                            ``(i) Timing.--Payments made under this 
                        subsection may be disbursed in an annual lump 
                        sum or in periodic installments, at the request 
                        of the recipient.
                            ``(ii) Advance.--The Administration may 
                        disburse not more than 25 percent of the annual 
                        amount of Federal financial assistance awarded 
                        to a Native American small business center 
                        after notice of the award has been issued.
                            ``(iii) No matching requirement.--The 
                        Administration shall not require a grant 
                        recipient to match grant funding received under 
                        this subsection with non-Federal resources as a 
                        condition of receiving the grant.
            ``(4) Contract and cooperative agreement authority.--A 
        Native American business center may enter into a contract or 
        cooperative agreement with a Federal department or agency to 
        provide specific assistance to Native American and other under-
        served small business concerns located on or near tribal lands, 
        to the extent that such contract or cooperative agreement is 
        consistent with the terms of any assistance received by the 
        Native American business center from the Administration.
            ``(5) Application process.--
                    ``(A) Submission of a 5-year plan.--Each applicant 
                for assistance under paragraph (1) shall submit a 5-
                year plan to the Administration on proposed assistance 
                and training activities.
                    ``(B) Criteria.--
                            ``(i) In general.--The Administration shall 
                        evaluate and rank applicants in accordance with 
                        predetermined selection criteria that shall be 
                        stated in terms of relative importance.
                            ``(ii) Public notice.--The criteria 
                        required by this paragraph and their relative 
                        importance shall be made publicly available, 
                        within a reasonable time, and stated in each 
                        solicitation for applications made by the 
                        Administration.
                            ``(iii) Considerations.--The criteria 
                        required by this paragraph shall include--
                                    ``(I) the experience of the 
                                applicant in conducting programs or 
                                ongoing efforts designed to impart or 
                                upgrade the business skills of current 
                                or potential owners of Native American 
                                small business concerns;
                                    ``(II) the ability of the applicant 
                                to commence a project within a minimum 
                                amount of time;
                                    ``(III) the ability of the 
                                applicant to provide quality training 
                                and services to a significant number of 
                                Native Americans;
                                    ``(IV) previous assistance from the 
                                Small Business Administration to 
                                provide services in Native American 
                                communities; and
                                    ``(V) the proposed location for the 
                                Native American business center site, 
                                with priority given based on the 
                                proximity of the center to the 
                                population being served and to achieve 
                                a broad geographic dispersion of the 
                                centers.
            ``(6) Program examination.--
                    ``(A) In general.--Each Native American business 
                center established pursuant to this subsection shall 
                annually provide the Administration with an itemized 
                cost breakdown of actual expenditures incurred during 
                the preceding year.
                    ``(B) Administration action.--Based on information 
                received under subparagraph (A), the Administration 
                shall--
                            ``(i) develop and implement an annual 
                        programmatic and financial examination of each 
                        Native American business center assisted 
                        pursuant to this subsection; and
                            ``(ii) analyze the results of each 
                        examination conducted under clause (i) to 
                        determine the programmatic and financial 
                        viability of each Native American business 
                        center.
                    ``(C) Conditions for continued funding.--In 
                determining whether to renew a grant, contract, or 
                cooperative agreement with a Native American business 
                center, the Administration--
                            ``(i) shall consider the results of the 
                        most recent examination of the center under 
                        subparagraph (B), and, to a lesser extent, 
                        previous examinations; and
                            ``(ii) may withhold such renewal, if the 
                        Administration determines that--
                                    ``(I) the center has failed to 
                                provide adequate information required 
                                to be provided under subparagraph (A), 
                                or the information provided by the 
                                center is inadequate; or
                                    ``(II) the center has failed to 
                                provide adequate information required 
                                to be provided by the center for 
                                purposes of the report of the 
                                Administration under subparagraph (E).
                    ``(D) Continuing contract and cooperative agreement 
                authority.--
                            ``(i) In general.--The authority of the 
                        Administrator to enter into contracts or 
                        cooperative agreements in accordance with this 
                        subsection shall be in effect for each fiscal 
                        year only to the extent and in the amounts as 
                        are provided in advance in appropriations Acts.
                            ``(ii) Renewal.--After the Administrator 
                        has entered into a contract or cooperative 
                        agreement with any Native American business 
                        center under this subsection, it shall not 
                        suspend, terminate, or fail to renew or extend 
                        any such contract or cooperative agreement 
                        unless the Administrator provides the center 
                        with written notification setting forth the 
                        reasons therefore and affords the center an 
                        opportunity for a hearing, appeal, or other 
                        administrative proceeding under chapter 5 of 
                        title 5, United States Code.
                    ``(E) Management report.--
                            ``(i) In general.--The Administration shall 
                        prepare and submit to the Committee on Small 
                        Business and Entrepreneurship of the Senate and 
                        the Committee on Small Business of the House of 
                        Representatives an annual report on the 
                        effectiveness of all projects conducted by 
                        Native American business centers under this 
                        subsection and any pilot programs administered 
                        by the Office of Native American Affairs.
                            ``(ii) Contents.--Each report submitted 
                        under clause (i) shall include, with respect to 
                        each Native American business center receiving 
                        financial assistance under this subsection--
                                    ``(I) the number of individuals 
                                receiving assistance from the Native 
                                American business center;
                                    ``(II) the number of startup 
                                business concerns created;
                                    ``(III) the number of existing 
                                businesses seeking to expand 
                                employment;
                                    ``(IV) jobs created or maintained, 
                                on an annual basis, by Native American 
                                small business concerns assisted by the 
                                center since receiving funding under 
                                this Act;
                                    ``(V) to the maximum extent 
                                practicable, the capital investment and 
                                loan financing utilized by emerging and 
                                expanding businesses that were assisted 
                                by a Native American business center; 
                                and
                                    ``(VI) the most recent examination, 
                                as required under subparagraph (B), and 
                                the subsequent determination made by 
                                the Administration under that 
                                subparagraph.
            ``(7) Annual report.--Each entity receiving financial 
        assistance under this subsection shall annually report to the 
        Administration on the services provided with such financial 
        assistance, including--
                    ``(A) the number of individuals assisted, 
                categorized by ethnicity;
                    ``(B) the number of hours spent providing 
                counseling and training for those individuals;
                    ``(C) the number of startup small business concerns 
                created or maintained;
                    ``(D) the gross receipts of assisted small business 
                concerns;
                    ``(E) the number of jobs created or maintained at 
                assisted small business concerns; and
                    ``(F) the number of Native American jobs created or 
                maintained at assisted small business concerns.
            ``(8) Record retention.--
                    ``(A) Applications.--The Administration shall 
                maintain a copy of each application submitted under 
                this subsection for not less than 7 years.
                    ``(B) Annual reports.--The Administration shall 
                maintain copies of the information collected under 
                paragraph (6)(A) indefinitely.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated $5,000,000 for each of the fiscal years 2006 through 2010, 
to carry out the Native American Small Business Development Program, 
authorized under subsection (c).''.

SEC. 3. PILOT PROGRAMS.

    (a) Definitions.--In this section, the following definitions shall 
apply:
            (1) Incorporation by reference.--The terms defined in 
        section 37(a) of the Small Business Act (as added by this Act) 
        have the same meanings as in that section 37(a) when used in 
        this section.
            (2) Joint project.--The term ``joint project'' means the 
        combined resources and expertise of 2 or more distinct entities 
        at a physical location dedicated to assisting the Native 
        American community.
    (b) Native American Development Grant Pilot Program.--
            (1) Authorization.--
                    (A) In general.--There is established a 4-year 
                pilot program under which the Administration is 
                authorized to award Native American development grants 
                to provide culturally tailored business development 
                training and related services to Native Americans and 
                Native American small business concerns.
                    (B) Eligible organizations.--The grants authorized 
                under subparagraph (A) may be awarded to--
                            (i) any small business development center; 
                        or
                            (ii) any private, nonprofit organization 
                        that--
                                    (I) has members of an Indian tribe 
                                comprising a majority of its board of 
                                directors;
                                    (II) is a Native Hawaiian 
                                organization; or
                                    (III) is an Alaska Native 
                                corporation.
                    (C) Amounts.--The Administration shall not award a 
                grant under this subsection in an amount which exceeds 
                $100,000 for each year of the project.
                    (D) Grant duration.--Each grant under this 
                subsection shall be awarded for not less than a 2-year 
                period and not more than a 4-year period.
            (2) Conditions for participation.--Each entity desiring a 
        grant under this subsection shall submit an application to the 
        Administration that contains--
                    (A) a certification that the applicant--
                            (i) is a small business development center 
                        or a private, nonprofit organization under 
                        paragraph (1)(B)(i);
                            (ii) employs an executive director or 
                        program manager to manage the facility; and
                            (iii) agrees--
                                    (I) to a site visit as part of the 
                                final selection process;
                                    (II) to an annual programmatic and 
                                financial examination; and
                                    (III) 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, 
                including cultural needs, of the Native Americans to be 
                served by the grant;
                    (C) information relating to proposed assistance 
                that the grant will provide, including--
                            (i) the number of individuals to be 
                        assisted; and
                            (ii) the number of hours of counseling, 
                        training, and workshops to be provided;
                    (D) information demonstrating the effective 
                experience of the applicant in--
                            (i) conducting financial, management, and 
                        marketing assistance programs designed to 
                        impart or upgrade the business skills of 
                        current or prospective Native American business 
                        owners;
                            (ii) providing training and services to a 
                        representative number of Native Americans;
                            (iii) using resource partners of the 
                        Administration and other entities, including 
                        universities, tribal governments, or tribal 
                        colleges; and
                            (iv) the prudent management of finances and 
                        staffing;
                    (E) the location where the applicant will provide 
                training and services to Native Americans; and
                    (F) a multiyear plan, corresponding to the length 
                of the grant, that describes--
                            (i) the number of Native Americans and 
                        Native American small business concerns to be 
                        served by the grant;
                            (ii) in the continental United States, the 
                        number of Native Americans to be served by the 
                        grant; and
                            (iii) the training and services to be 
                        provided to a representative number of Native 
                        Americans.
            (3) Review of applications.--The Administration shall--
                    (A) evaluate and rank applicants under paragraph 
                (2) in accordance with predetermined selection criteria 
                that is stated in terms of relative importance;
                    (B) include such criteria in each solicitation 
                under this subsection and make such information 
                available to the public; and
                    (C) approve or disapprove each completed 
                application submitted under this subsection not more 
                than 60 days after submission.
            (4) Annual report.--Each recipient of a Native American 
        development grant under this subsection shall annually report 
        to the Administration on the impact of the grant funding, 
        including--
                    (A) the number of individuals assisted, categorized 
                by ethnicity;
                    (B) the number of hours spent providing counseling 
                and training for those individuals;
                    (C) the number of startup small business concerns 
                created or maintained with assistance from a Native 
                American business center;
                    (D) the gross receipts of assisted small business 
                concerns;
                    (E) the number of jobs created or maintained at 
                assisted small business concerns; and
                    (F) the number of Native American jobs created or 
                maintained at assisted small business concerns.
            (5) Record retention.--
                    (A) Applications.--The Administration shall 
                maintain a copy of each application submitted under 
                this subsection for not less than 7 years.
                    (B) Annual reports.--The Administration shall 
                maintain copies of the information collected under 
                paragraph (4) indefinitely.
    (c) American Indian Tribal Assistance Center Grant Pilot Program.--
            (1) Authorization.--
                    (A) In general.--There is established a 4-year 
                pilot program, under which the Administration shall 
                award not less than 3 American Indian Tribal Assistance 
                Center grants to establish joint projects to provide 
                culturally tailored business development assistance to 
                prospective and current owners of small business 
                concerns located on or near tribal lands.
                    (B) Eligible organizations.--
                            (i) Class 1.--Not fewer than 1 grant shall 
                        be awarded to a joint project performed by a 
                        Native American business center, a Native 
                        American business development center, and a 
                        small business development center.
                            (ii) Class 2.--Not fewer than 2 grants 
                        shall be awarded to joint projects performed by 
                        a Native American business center and a Native 
                        American business development center.
                    (C) Amounts.--The Administration shall not award a 
                grant under this subsection in an amount which exceeds 
                $200,000 for each year of the project.
                    (D) Grant duration.--Each grant under this 
                subsection shall be awarded for a 3-year period.
            (2) Conditions for participation.--Each entity desiring a 
        grant under this subsection shall submit to the Administration 
        a joint application that contains--
                    (A) a certification that each participant of the 
                joint application--
                            (i) is either a Native American business 
                        center, a Native American business development 
                        center, or a small business development center;
                            (ii) employs an executive director or 
                        program manager to manage the center; and
                            (iii) as a condition of receiving the 
                        American Indian Tribal Assistance Center grant, 
                        agrees--
                                    (I) to an annual programmatic and 
                                financial examination; and
                                    (II) to the maximum extent 
                                practicable, to remedy any problems 
                                identified pursuant to that 
                                examination;
                    (B) information demonstrating an historic 
                commitment to providing assistance to Native 
                Americans--
                            (i) residing on or near tribal lands; or
                            (ii) operating a small business concern on 
                        or near tribal lands;
                    (C) information demonstrating that each participant 
                of the joint application has the ability and resources 
                to meet the needs, including the cultural needs of the 
                Native Americans to be served by the grant;
                    (D) information relating to proposed assistance 
                that the grant will provide, including--
                            (i) the number of individuals to be 
                        assisted; and
                            (ii) the number of hours of counseling, 
                        training, and workshops to be provided;
                    (E) information demonstrating the effective 
                experience of each participant of the joint application 
                in--
                            (i) conducting financial, management, and 
                        marketing assistance programs, as described 
                        above, designed to impart or upgrade the 
                        business skills of current or prospective 
                        Native American business owners; and
                            (ii) the prudent management of finances and 
                        staffing; and
                    (F) a plan for the length of the grant, that 
                describes--
                            (i) the number of Native Americans and 
                        Native American small business concerns to be 
                        served by the grant; and
                            (ii) the training and services to be 
                        provided.
            (3) Review of applications.--The Administration shall--
                    (A) evaluate and rank applicants under paragraph 
                (2) in accordance with predetermined selection criteria 
                that is stated in terms of relative importance;
                    (B) include such criteria in each solicitation 
                under this subsection and make such information 
                available to the public; and
                    (C) approve or disapprove each application 
                submitted under this subsection not more than 60 days 
                after submission.
            (4) Annual report.--Each recipient of an American Indian 
        tribal assistance center grant under this subsection shall 
        annually report to the Administration on the impact of the 
        grant funding received during the reporting year, and the 
        cumulative impact of the grant funding received since the 
        initiation of the grant, including--
                    (A) the number of individuals assisted, categorized 
                by ethnicity;
                    (B) the number of hours of counseling and training 
                provided and workshops conducted;
                    (C) the number of startup business concerns created 
                or maintained with assistance from a Native American 
                business center;
                    (D) the gross receipts of assisted small business 
                concerns;
                    (E) the number of jobs created or maintained at 
                assisted small business concerns; and
                    (F) the number of Native American jobs created or 
                maintained at assisted small business concerns.
            (5) Record retention.--
                    (A) Applications.--The Administration shall 
                maintain a copy of each application submitted under 
                this subsection for not less than 7 years.
                    (B) Annual reports.--The Administration shall 
                maintain copies of the information collected under 
                paragraph (4) indefinitely.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated--
            (1) $1,000,000 for each of the fiscal years 2006 through 
        2009, to carry out the Native American Development Grant Pilot 
        Program, authorized under subsection (b); and
            (2) $1,000,000 for each of the fiscal years 2006 through 
        2009, to carry out the American Indian Tribal Assistance Center 
        Grant Pilot Program, authorized under subsection (c).
                                 <all>
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