II

Calendar No. 838

106TH CONGRESS

2D SESSION S. 3121

[Report No. 106–422]

To reauthorize programs to assist small business concerns, and for other

purposes.

IN THE SENATE OF THE UNITED STATES

SEPTEMBER 27 (legislative day, SEPTEMBER 22), 2000

Mr. BOND, from the Committee on Small Business, reported the following

original bill; which was read twice and placed on the calendar

A BILL

To reauthorize programs to assist small business concerns,

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; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Small Business Reauthorization Act of 2000’’.

6 (b) TABLE OF CONTENTS.—The table of contents for

7 this Act is as follows:

Sec. 1. Short title; table of contents.
2

•S 3121 RS

TITLE I—REAUTHORIZATION OF SMALL BUSINESS PROGRAMS

Sec. 101. Authorizations of appropriations.

TITLE II—QUADRENNIAL SMALL BUSINESS SUMMIT

Sec. 201. Short title.

Sec. 202. Definitions.

Sec. 203. National and State Quadrennial Summits on Small Business.

Sec. 204. Purposes of Quadrennial Summits.

Sec. 205. Summit participants.

Sec. 206. Quadrennial Commission on Small Business.

Sec. 207. Authorization of appropriations; availability of funds.

TITLE III—SMALL BUSINESS INVOLVEMENT IN GOVERNMENT

REGULATION

Sec. 301. Short title.

Sec. 302. Findings and purposes.

Sec. 303. Ensuring full analysis of potential impacts on small entities of rules

proposed by certain agencies.

Sec. 304. Definitions.

Sec. 305. Collection of information requirement.

Sec. 306. Effective date.

TITLE IV—OFFICE OF ADVOCACY OF THE SMALL BUSINESS

ADMINISTRATION

Sec. 401. Short title.

Sec. 402. Findings.

Sec. 403. Purposes.

Sec. 404. Office of Advocacy.

TITLE V—CREDIT PROGRAMS

Sec. 501. Section 7(a) program.

Sec. 502. Small business investment companies.

Sec. 503. Microloan program.

Sec. 504. Small business lending company fees.

Sec. 505. Surety bonds.

Sec. 506. Development company debentures.

TITLE VI—HUBZONE PROGRAM

Subtitle A—HUBZones in Native America

Sec. 601. Short title.

Sec. 602. HUBZone small business concern.

Sec. 603. Qualified HUBZone small business concern.

Sec. 604. Other definitions.

Subtitle B—Other HUBZone Provisions

Sec. 611. Definitions.

Sec. 612. Eligible contracts.

Sec. 613. Correction of HUBZone reference.

Sec. 614. Community development.

Sec. 615. Reference correction.
3

•S 3121 RS

TITLE VII—NATIONAL WOMEN’S BUSINESS COUNCIL

REAUTHORIZATION

Sec. 701. Short title.

Sec. 702. Duties of the Council.

Sec. 703. Membership of the Council.

Sec. 704. Repeal of procurement project; State and local economic networks.

Sec. 705. Studies and other research.

Sec. 706. Authorization of appropriations.

TITLE VIII—MISCELLANEOUS PROVISIONS

Sec. 801. Native American small business development centers.

Sec. 802. Cosponsorship.

Sec. 803. Fraud and false statements.

Sec. 804. Financial institution civil penalties.

Sec. 805. Very small business program.

Sec. 806. SDB.

Sec. 807. Subcontracting preference for veterans.

Sec. 808. Size standards.

Sec. 809. Drug-free workplace program.

1 TITLE I—REAUTHORIZATION OF

2 SMALL BUSINESS PROGRAMS

3 SEC. 101. AUTHORIZATIONS OF APPROPRIATIONS.

4 Section 20 of the Small Business Act (15 U.S.C. 631

5 note) is amended by striking subsections (c), (d), and (e)

6 and inserting the following:

7 ‘‘(c) FISCAL YEAR 2001.—

8 ‘‘(1) PROGRAM LEVELS.—The following pro9 gram levels are authorized for fiscal year 2001:

10 ‘‘(A) For the programs authorized by this

11 Act, the Administration is authorized to

12 make—

13 ‘‘(i) $45,000,000 in technical assist14 ance grants, as provided in section 7(m);

15 and
4

•S 3121 RS

1 ‘‘(ii) $60,000,000 in direct loans, as

2 provided in section 7(m).

3 ‘‘(B) For the programs authorized by this

4 Act, the Administration is authorized to make

5 $19,050,000,000 in deferred participation loans

6 and other financings, of which, the Administra7 tion is authorized to make—

8 ‘‘(i) $14,500,000,000 in general busi9 ness loans, as provided in section 7(a);

10 ‘‘(ii) $4,000,000,000 in financings, as

11 provided in section 7(a)(13) of this Act

12 and section 504 of the Small Business In13 vestment Act of 1958;

14 ‘‘(iii) $500,000,000 in loans, as pro15 vided in section 7(a)(21); and

16 ‘‘(iv) $50,000,000 in loans, as pro17 vided in section 7(m).

18 ‘‘(C) For the programs authorized by title

19 III of the Small Business Investment Act of

20 1958, the Administration is authorized to

21 make—

22 ‘‘(i) $2,500,000,000 in purchases of

23 participating securities; and

24 ‘‘(ii) $1,500,000,000 in guarantees of

25 debentures.
5

•S 3121 RS

1 ‘‘(D) For the programs authorized by part

2 B of title IV of the Small Business Investment

3 Act of 1958, the Administration is authorized

4 to enter into guarantees not to exceed

5 $4,000,000,000, of which not more than 50

6 percent may be in bonds approved pursuant to

7 section 411(a)(3) of that Act.

8 ‘‘(E) The Administration is authorized to

9 make grants or enter into cooperative

10 agreements—

11 ‘‘(i) for a total amount of $5,000,000

12 for the Service Corps of Retired Executives

13 program authorized by section 8(b)(1); and

14 ‘‘(ii) for a total amount not to exceed

15 $125,000,000 (to remain available until

16 expended) for the activities of small busi17 ness development centers pursuant to sec18 tion 21.

19 ‘‘(2) ADDITIONAL AUTHORIZATIONS.—

20 ‘‘(A) There are authorized to be appro21 priated to the Administration for fiscal year

22 2001, such sums as may be necessary to carry

23 out the provisions of this Act not elsewhere pro24 vided for, including administrative expenses and

25 necessary loan capital for disaster loans pursu-
6

•S 3121 RS

1 ant to section 7(b), and to carry out title IV of

2 the Small Business Investment Act of 1958, in3 cluding salaries and expenses of the Adminis4 tration.

5 ‘‘(B) Notwithstanding any other provision

6 of this paragraph, for fiscal year 2001—

7 ‘‘(i) no funds are authorized to be

8 used as loan capital for the loan program

9 authorized by section 7(a)(21), except by

10 transfer from another Federal department

11 or agency to the Administration, unless the

12 program level authorized for general busi13 ness loans under paragraph (1)(B)(i) is

14 fully funded; and

15 ‘‘(ii) the Administration may not ap16 prove loans on its own behalf or on behalf

17 of any other Federal department or agen18 cy, by contract or otherwise, under terms

19 and conditions other than those specifically

20 authorized under this Act or the Small

21 Business Investment Act of 1958, except

22 that the Administration may approve loans

23 under section 7(a)(21) of this Act in gross

24 amounts of not more than $1,250,000.
7

•S 3121 RS

1 ‘‘(C) There are authorized to be appro2 priated to the Administration to carry out the

3 program under section 31, $7,500,000 for fiscal

4 year 2001.

5 ‘‘(d) FISCAL YEAR 2002.—

6 ‘‘(1) PROGRAM LEVELS.—The following pro7 gram levels are authorized for fiscal year 2002:

8 ‘‘(A) For the programs authorized by this

9 Act, the Administration is authorized to

10 make—

11 ‘‘(i) $60,000,000 in technical assist12 ance grants, as provided in section 7(m);

13 and

14 ‘‘(ii) $80,000,000 in direct loans, as

15 provided in section 7(m).

16 ‘‘(B) For the programs authorized by this

17 Act, the Administration is authorized to make

18 $20,050,000,000 in deferred participation loans

19 and other financings, of which, the Administra20 tion is authorized to make—

21 ‘‘(i) $15,000,000,000 in general busi22 ness loans, as provided in section 7(a);

23 ‘‘(ii) $4,500,000,000 in financings, as

24 provided in section 7(a)(13) of this Act
8

•S 3121 RS

1 and section 504 of the Small Business In2 vestment Act of 1958;

3 ‘‘(iii) $500,000,000 in loans, as pro4 vided in section 7(a)(21); and

5 ‘‘(iv) $50,000,000 in loans, as pro6 vided in section 7(m).

7 ‘‘(C) For the programs authorized by title

8 III of the Small Business Investment Act of

9 1958, the Administration is authorized to

10 make—

11 ‘‘(i) $3,500,000,000 in purchases of

12 participating securities; and

13 ‘‘(ii) $2,500,000,000 in guarantees of

14 debentures.

15 ‘‘(D) For the programs authorized by part

16 B of title IV of the Small Business Investment

17 Act of 1958, the Administration is authorized

18 to enter into guarantees not to exceed

19 $5,000,000,000, of which not more than 50

20 percent may be in bonds approved pursuant to

21 section 411(a)(3) of that Act.

22 ‘‘(E) The Administration is authorized to

23 make grants or enter into cooperative

24 agreements—
9

•S 3121 RS

1 ‘‘(i) for a total amount of $6,000,000

2 for the Service Corps of Retired Executives

3 program authorized by section 8(b)(1); and

4 ‘‘(ii) for a total amount not to exceed

5 $125,000,000 (to remain available until

6 expended) for the activities of small busi7 ness development centers pursuant to sec8 tion 21.

9 ‘‘(2) ADDITIONAL AUTHORIZATIONS.—

10 ‘‘(A) There are authorized to be appro11 priated to the Administration for fiscal year

12 2002, such sums as may be necessary to carry

13 out the provisions of this Act not elsewhere pro14 vided for, including administrative expenses and

15 necessary loan capital for disaster loans pursu16 ant to section 7(b), and to carry out title IV of

17 the Small Business Investment Act of 1958, in18 cluding salaries and expenses of the Adminis19 tration.

20 ‘‘(B) Notwithstanding any other provision

21 of this paragraph, for fiscal year 2002—

22 ‘‘(i) no funds are authorized to be

23 used as loan capital for the loan program

24 authorized by section 7(a)(21), except by

25 transfer from another Federal department
10

•S 3121 RS

1 or agency to the Administration, unless the

2 program level authorized for general busi3 ness loans under paragraph (1)(B)(i) is

4 fully funded; and

5 ‘‘(ii) the Administration may not ap6 prove loans on its own behalf or on behalf

7 of any other Federal department or agen8 cy, by contract or otherwise, under terms

9 and conditions other than those specifically

10 authorized under this Act or the Small

11 Business Investment Act of 1958, except

12 that the Administration may approve loans

13 under section 7(a)(21) of this Act in gross

14 amounts of not more than $1,250,000.

15 ‘‘(C) There are authorized to be appro16 priated to the Administration to carry out the

17 program under section 31, $7,500,000 for fiscal

18 year 2002.

19 ‘‘(e) FISCAL YEAR 2003.—

20 ‘‘(1) PROGRAM LEVELS.—The following pro21 gram levels are authorized for fiscal year 2003:

22 ‘‘(A) For the programs authorized by this

23 Act, the Administration is authorized to

24 make—
11

•S 3121 RS

1 ‘‘(i) $70,000,000 in technical assist2 ance grants, as provided in section 7(m);

3 and

4 ‘‘(ii) $100,000,000 in direct loans, as

5 provided in section 7(m).

6 ‘‘(B) For the programs authorized by this

7 Act, the Administration is authorized to make

8 $21,550,000,000 in deferred participation loans

9 and other financings, of which, the Administra10 tion is authorized to make—

11 ‘‘(i) $16,000,000,000 in general busi12 ness loans, as provided in section 7(a);

13 ‘‘(ii) $5,000,000,000 in financings, as

14 provided in section 7(a)(13) of this Act

15 and section 504 of the Small Business In16 vestment Act of 1958;

17 ‘‘(iii) $500,000,000 in loans, as pro18 vided in section 7(a)(21); and

19 ‘‘(iv) $50,000,000 in loans, as pro20 vided in section 7(m).

21 ‘‘(C) For the programs authorized by title

22 III of the Small Business Investment Act of

23 1958, the Administration is authorized to

24 make—
12

•S 3121 RS

1 ‘‘(i) $4,000,000,000 in purchases of

2 participating securities; and

3 ‘‘(ii) $3,000,000,000 in guarantees of

4 debentures.

5 ‘‘(D) For the programs authorized by part

6 B of title IV of the Small Business Investment

7 Act of 1958, the Administration is authorized

8 to enter into guarantees not to exceed

9 $6,000,000,000, of which not more than 50

10 percent may be in bonds approved pursuant to

11 section 411(a)(3) of that Act.

12 ‘‘(E) The Administration is authorized to

13 make grants or enter into cooperative

14 agreements—

15 ‘‘(i) for a total amount of $7,000,000

16 for the Service Corps of Retired Executives

17 program authorized by section 8(b)(1); and

18 ‘‘(ii) for a total amount not to exceed

19 $125,000,000 (to remain available until

20 expended) for the activities of small busi21 ness development centers pursuant to sec22 tion 21.

23 ‘‘(2) ADDITIONAL AUTHORIZATIONS.—

24 ‘‘(A) There are authorized to be appro25 priated to the Administration for fiscal year
13

•S 3121 RS

1 2003, such sums as may be necessary to carry

2 out the provisions of this Act not elsewhere pro3 vided for, including administrative expenses and

4 necessary loan capital for disaster loans pursu5 ant to section 7(b), and to carry out title IV of

6 the Small Business Investment Act of 1958, in7 cluding salaries and expenses of the Adminis8 tration.

9 ‘‘(B) Notwithstanding any other provision

10 of this paragraph, for fiscal year 2003—

11 ‘‘(i) no funds are authorized to be

12 used as loan capital for the loan program

13 authorized by section 7(a)(21), except by

14 transfer from another Federal department

15 or agency to the Administration, unless the

16 program level authorized for general busi17 ness loans under paragraph (1)(B)(i) is

18 fully funded; and

19 ‘‘(ii) the Administration may not ap20 prove loans on its own behalf or on behalf

21 of any other Federal department or agen22 cy, by contract or otherwise, under terms

23 and conditions other than those specifically

24 authorized under this Act or the Small

25 Business Investment Act of 1958, except
14

•S 3121 RS

1 that the Administration may approve loans

2 under section 7(a)(21) of this Act in gross

3 amounts of not more than $1,250,000.

4 ‘‘(C) There are authorized to be appro5 priated to the Administration to carry out the

6 program under section 31, $7,500,000 for fiscal

7 year 2003.’’.

8 TITLE II—QUADRENNIAL SMALL

9 BUSINESS SUMMIT

10 SEC. 201. SHORT TITLE.

11 This title may be cited as the ‘‘Quadrennial Small

12 Business Summit Act of 2000’’.

13 SEC. 202. DEFINITIONS.

14 In this title—

15 (1) the term ‘‘Administrator’’ means the Ad16 ministrator of the Small Business Administration;

17 (2) the term ‘‘Chief Counsel’’ means the Chief

18 Counsel for Advocacy of the Small Business Admin19 istration;

20 (3) the term ‘‘Quadrennial Commission’’ means

21 the national Quadrennial Commission on Small

22 Business established under section 206;

23 (4) the term ‘‘Quadrennial Summit’’—
15

•S 3121 RS

1 (A) means the Quadrennial Summit on

2 Small Business conducted under section 203(a);

3 and

4 (B) includes the last White House Con5 ference on Small Business occurring before

6 2002;

7 (5) the term ‘‘small business’’ has the meaning

8 given the term ‘‘small business concern’’ in section

9 3 of the Small Business Act;

10 (6) the term ‘‘State’’ means any of the 50

11 States of the United States, the District of Colum12 bia, the Commonwealth of Puerto Rico, and the

13 United States Virgin Islands; and

14 (7) the term ‘‘State Summit’’ means a State

15 Summit on Small Business conducted under section

16 203(b).

17 SEC. 203. NATIONAL AND STATE QUADRENNIAL SUMMITS

18 ON SMALL BUSINESS.

19 (a) QUADRENNIAL SUMMITS.—There shall be a na20 tional Quadrennial Summit on Small Business once every

21 4 years, to be held during the second year following each

22 Presidential election, to carry out the purposes set forth

23 in section 204.

24 (b) STATE SUMMITS.—Each Quadrennial Summit re25 ferred to in subsection (a) shall be preceded by a State
16

•S 3121 RS

1 Summit on Small Business, with not fewer than 1 such

2 summit held in each State, and with not fewer than 2 such

3 summits held in any State having a population of more

4 than 10,000,000.

5 SEC. 204. PURPOSES OF QUADRENNIAL SUMMITS.

6 The purposes of each Quadrennial Summit shall be—

7 (1) to increase public awareness of the con8 tribution of small business to the national economy;

9 (2) to identify the problems of small business;

10 (3) to examine the status of minorities and

11 women as small business owners;

12 (4) to assist small business in carrying out its

13 role as the Nation’s job creator;

14 (5) to assemble small businesses to develop

15 such specific and comprehensive recommendations

16 for legislative and regulatory action as may be ap17 propriate for maintaining and encouraging the eco18 nomic viability of small business and thereby, the

19 Nation; and

20 (6) to review the status of recommendations

21 adopted at the immediately preceding Quadrennial

22 Summit on Small Business.

23 SEC. 205. SUMMIT PARTICIPANTS.

24 (a) IN GENERAL.—To carry out the purposes set

25 forth in section 204, the Quadrennial Commission shall
17

•S 3121 RS

1 conduct Quadrennial Summits and State Summits to

2 bring together individuals concerned with issues relating

3 to small business.

4 (b) SUMMIT DELEGATES.—

5 (1) QUALIFICATION.—Only individuals who are

6 owners or officers of a small business shall be eligi7 ble for appointment or election as delegates (or al8 ternates) to the Quadrennial Summit, or be eligible

9 to vote in the selection of delegates at the State

10 Summits pursuant to this subsection.

11 (2) APPOINTED DELEGATES.—Two months be12 fore the date of the first State Summit, there shall

13 be—

14 (A) 1 delegate (and 1 alternate) appointed

15 by the Governor of each State;

16 (B) 1 delegate (and 1 alternate) appointed

17 by each Member of the House of Representa18 tives, from the congressional district of that

19 Member;

20 (C) 1 delegate (and 1 alternate) appointed

21 by each Member of the Senate from the home

22 State of that Member; and

23 (D) 53 delegates (and 53 alternates) ap24 pointed by the President, 1 from each State.
18

•S 3121 RS

1 (3) ELECTED DELEGATES.—The participants at

2 each State Summit shall elect 3 delegates and 3 al3 ternates to the Quadrennial Summit for each con4 gressional district within the State, or part of the

5 State represented at the Summit, or not fewer than

6 9 delegates, pursuant to rules developed by the

7 Quadrennial Commission.

8 (4) POWERS AND DUTIES.—Delegates to each

9 Quadrennial Summit shall—

10 (A) attend the State summits in his or her

11 respective State;

12 (B) elect a delegation chairperson, vice

13 chairperson, and other leadership as may be

14 necessary;

15 (C) conduct meetings and other activities

16 at the State level before the date of the Quad17 rennial Summit, subject to the approval of the

18 Quadrennial Commission; and

19 (D) direct such State level summits, meet20 ings, and activities toward the consideration of

21 the purposes set forth in section 204, in order

22 to prepare for the next Quadrennial Summit.

23 (5) ALTERNATES.—Alternates shall serve dur24 ing the absence or unavailability of the delegate.
19

•S 3121 RS

1 (c) ROLE OF THE CHIEF COUNSEL.—The Chief

2 Counsel shall, after consultation and in coordination with

3 the Quadrennial Commission, assist in carrying out the

4 Quadrennial Summits and State Summits required by this

5 title by—

6 (1) preparing and providing background infor7 mation and administrative materials for use by par8 ticipants in the summits;

9 (2) distributing issue information and adminis10 trative communications, electronically where possible

11 through an Internet web site and e-mail, and in

12 printed form if requested;

13 (3) maintaining an Internet web site and reg14 ular e-mail communications after each Quadrennial

15 Summit to inform delegates and the public of the

16 status of recommendations and related governmental

17 activity; and

18 (4) maintaining, between summits, an active in19 terim organization of delegate representatives from

20 each region of the Administration, to advise the

21 Chief Counsel on each of the major small business

22 issue areas, and monitor the progress of the Sum23 mits’ recommendations.

24 (d) EXPENSES.—Each delegate (and alternate) to

25 each Quadrennial Summit and State Summit—
20

•S 3121 RS

1 (1) shall be responsible for the expenses of that

2 delegate related to attending the summits; and

3 (2) shall not be reimbursed either from funds

4 appropriated pursuant to this section or the Small

5 Business Act.

6 (e) ADVISORY COMMITTEE.—

7 (1) IN GENERAL.—The Quadrennial Commis8 sion shall appoint a Summit Advisory Committee,

9 which shall be composed of 10 individuals who were

10 participants at the most recently preceding Quadren11 nial Summit, to advise the Quadrennial Commission

12 on the organization, rules, and processes of the

13 Summits.

14 (2) PREFERENCE.—Preference for appointment

15 under this subsection shall be given to individuals

16 who have been active participants in the implemen17 tation process following the most recently preceding

18 Quadrennial Summit.

19 (f) PUBLIC PARTICIPATION.—Quadrennial Summits

20 and State Summits shall be open to the public, and no

21 fee or charge may be imposed on any attendee, other than

22 an amount necessary to cover the cost of any meal pro23 vided, plus a registration fee to defray the expense of

24 meeting rooms and materials of not to exceed $15 per per25 son.
21

•S 3121 RS

1 SEC. 206. QUADRENNIAL COMMISSION ON SMALL BUSI2 NESS.

3 (a) ESTABLISHMENT.—There is established the

4 Quadrennial Commission on Small Business.

5 (b) MEMBERSHIP.—

6 (1) APPOINTMENT.—The Quadrennial Commis7 sion shall be composed of 9 members, including—

8 (A) the Chief Counsel;

9 (B) 4 members appointed by the President;

10 (C) 1 member appointed by the Majority

11 Leader of the Senate;

12 (D) 1 member appointed by the Minority

13 Leader of the Senate;

14 (E) 1 member appointed by the Majority

15 Leader of the House of Representatives; and

16 (F) 1 member appointed by the Minority

17 Leader of the House of Representatives.

18 (2) SELECTION.—Members of the Quadrennial

19 Commission described in subparagraphs (B) through

20 (F) of paragraph (1) shall be selected from among

21 distinguished individuals noted for their knowledge

22 and experience in fields relevant to the issue of small

23 business and the purposes set forth in section 204.

24 (3) TIME OF APPOINTMENT.—The appoint25 ments required by paragraph (1)—
22

•S 3121 RS

1 (A) shall be made not later than 18

2 months before the opening date of each Quad3 rennial Summit; and

4 (B) shall expire 6 months after the date on

5 which each Quadrennial Summit is convened.

6 (c) ELECTION OF CHAIRPERSON.—At the first meet7 ing of the Quadrennial Commission, a majority of the

8 members present and voting shall elect a member of the

9 Quadrennial Commission to serve as the Chairperson.

10 (d) POWERS AND DUTIES OF COMMISSION.—The

11 Quadrennial Commission—

12 (1) may enter into contracts with public agen13 cies, private organizations, and academic institutions

14 to carry out this title;

15 (2) shall consult, coordinate, and contract with

16 an independent, nonpartisan organization that—

17 (A) has both substantive and logistical ex18 perience in developing and organizing con19 ferences and forums throughout the Nation

20 with elected officials and other government and

21 business leaders;

22 (B) has experience in generating private

23 resources from multiple States in the form of

24 event sponsorships; and
23

•S 3121 RS

1 (C) can demonstrate evidence of a working

2 relationship with Members of Congress from the

3 majority and minority parties, and at least 1

4 Federal agency; and

5 (3) shall prescribe such financial controls and

6 accounting procedures as needed for the handling of

7 funds from fees and charges and the payment of au8 thorized meal, facility, travel, and other related ex9 penses.

10 (e) PLANNING AND ADMINISTRATION OF SUMMITS.—

11 In carrying out the Quadrennial Summits and State Sum12 mits, the Quadrennial Commission shall consult with—

13 (1) the Chief Counsel;

14 (2) Congress; and

15 (3) such other Federal agencies as the Quad16 rennial Commission determines to be appropriate.

17 (f) REPORTS REQUIRED.—Not later than 6 months

18 after the date on which each Quadrennial Summit is con19 vened, the Quadrennial Commission shall submit to the

20 President and to the Chairpersons and Ranking Members

21 of the Committees on Small Business of the Senate and

22 the House of Representatives a final report, which shall—

23 (1) include the findings and recommendations

24 of the Quadrennial Summit and any proposals for
24

•S 3121 RS

1 legislative action necessary to implement those rec2 ommendations; and

3 (2) be made available to the public.

4 (g) QUORUM.—Four voting members of the Quadren5 nial Commission shall constitute a quorum for purposes

6 of transacting business.

7 (h) MEETINGS.—The Quadrennial Commission shall

8 meet not later than 20 calendar days after the appoint9 ment of the initial members of the Quadrennial Commis10 sion, and not less frequently than every 30 calendar days

11 thereafter.

12 (i) VACANCIES.—Any vacancy on the Quadrennial

13 Commission shall not affect its powers, but shall be filled

14 in the manner in which the original appointment was

15 made.

16 (j) EXECUTIVE DIRECTOR AND STAFF.—The Quad17 rennial Commission may appoint and compensate an Ex18 ecutive Director and such other personnel to conduct the

19 Quadrennial Summits and State Summits as the Quadren20 nial Commission may determine to be advisable, without

21 regard to title 5, United States Code, governing appoint22 ments in the competitive service, and without regard to

23 chapter 51 and subchapter III of chapter 53 of such title,

24 relating to classification and General Schedule pay rates,

25 except that the rate of pay for the Executive Director and
25

•S 3121 RS

1 other personnel may not exceed the rate payable for level

2 V of the Executive Schedule under section 5316 of such

3 title.

4 (k) FUNDING.—Members of the Quadrennial Com5 mission shall be allowed travel expenses, including per

6 diem in lieu of subsistence at rates authorized for employ7 ees of agencies under subchapter I of chapter 57 of title

8 5, United States Code, while away from their homes or

9 regular places of business in the performance of services

10 for the Quadrennial Commission.

11 SEC. 207. AUTHORIZATION OF APPROPRIATIONS; AVAIL12 ABILITY OF FUNDS.

13 (a) AUTHORIZATION OF APPROPRIATIONS.—There is

14 authorized to be appropriated to carry out each Quadren15 nial Summit and the State Summits required by this title,

16 $5,000,000, which shall remain available until expended.

17 New spending authority or authority to enter contracts as

18 provided in this title shall be effective only to such extent

19 and in such amounts as are provided in advance in appro20 priations Acts.

21 (b) SPECIFIC EARMARK.—No amount made available

22 to the Small Business Administration may be made avail23 able to carry out this title, other than amounts made avail24 able specifically for the purpose of conducting the Quad25 rennial Summits and State Summits.
26

•S 3121 RS

1 TITLE III—SMALL BUSINESS IN2 VOLVEMENT IN GOVERN3 MENT REGULATION

4 SEC. 301. SHORT TITLE.

5 This title may be cited as the ‘‘Small Business Advo6 cacy Review Panel Technical Amendments Act of 2000’’.

7 SEC. 302. FINDINGS AND PURPOSES.

8 (a) FINDINGS.—Congress finds that—

9 (1) a vibrant and growing small business sector

10 is critical to creating jobs in a dynamic economy;

11 (2) small businesses bear a disproportionate

12 share of regulatory costs and burdens;

13 (3) Federal agencies must consider the impact

14 of their regulations on small businesses early in the

15 rulemaking process; and

16 (4) the Small Business Advocacy Review Panel

17 process established by the Small Business Regu18 latory Enforcement Fairness Act of 1996 has been

19 effective in allowing small businesses to participate

20 in rules that are being developed by the Environ21 mental Protection Agency and the Occupational

22 Safety and Health Administration.

23 (b) PURPOSES.—The purposes of this title are—
27

•S 3121 RS

1 (1) to provide a forum for the effective partici2 pation of small businesses in the Federal regulatory

3 process;

4 (2) to clarify and strengthen the Small Busi5 ness Advocacy Review Panel process; and

6 (3) to expand the number of Federal agencies

7 that are required to convene Small Business Advo8 cacy Review Panels.

9 SEC. 303. ENSURING FULL ANALYSIS OF POTENTIAL IM10 PACTS ON SMALL ENTITIES OF RULES PRO11 POSED BY CERTAIN AGENCIES.

12 Section 609(b) of title 5, United States Code, is

13 amended to read as follows:

14 ‘‘(b)(1) Before the publication of an initial regulatory

15 flexibility analysis that a covered agency is required to

16 conduct under this chapter, the head of the covered agency

17 shall—

18 ‘‘(A) notify the Chief Counsel for Advocacy of

19 the Small Business Administration (referred to in

20 this subsection as the ‘Chief Counsel’) in writing;

21 ‘‘(B) provide the Chief Counsel with informa22 tion on the potential impacts of the proposed rule on

23 small entities and the type of small entities that

24 might be affected; and
28

•S 3121 RS

1 ‘‘(C) not later than 30 days after complying

2 with subparagraphs (A) and (B)—

3 ‘‘(i) in consultation with the Chief Counsel,

4 identify affected small entity representatives;

5 and

6 ‘‘(ii) transmit to the identified small entity

7 representatives a detailed summary of the infor8 mation referred to in subparagraph (B) or the

9 information in full, if so requested by the small

10 entity representative, for the purposes of ob11 taining advice and recommendations about the

12 potential impacts of the draft proposed rule.

13 ‘‘(2)(A) Not earlier than 30 days after the covered

14 agency transmits information under paragraph (1)(C)(ii),

15 the head of the covered agency shall convene a review

16 panel for the draft proposed rule. The review panel shall

17 consist solely of full-time Federal employees of the office

18 within the covered agency that will be responsible for car19 rying out the proposed rule, the Office of Information and

20 Regulatory Affairs of the Office of Management and

21 Budget, and the Chief Counsel.

22 ‘‘(B) The review panel shall—

23 ‘‘(i) review any material that the covered agen24 cy has prepared in connection with this chapter, in25 cluding any draft proposed rule;
29

•S 3121 RS

1 ‘‘(ii) collect advice and recommendations from

2 the small entity representatives identified under

3 paragraph (1)(C)(i) on issues related to paragraphs

4 (3), (4), and (5) of section 603(b) and section

5 603(c); and

6 ‘‘(iii) allow any small entity representative iden7 tified under paragraph (1)(C)(i) to make an oral

8 presentation to the review panel, if requested.

9 ‘‘(C) Not later than 60 days after the date a covered

10 agency convenes a review panel under this paragraph, the

11 review panel shall report to the head of the covered agency

12 on—

13 ‘‘(i) the comments received from the small enti14 ty representatives identified under paragraph

15 (1)(C)(i); and

16 ‘‘(ii) the findings of the review panel regarding

17 issues related to paragraphs (3), (4), and (5) of sec18 tion 603(b) and section 603(c).

19 ‘‘(3)(A) Except as provided in subparagraph (B), the

20 head of the covered agency shall print in the Federal Reg21 ister the report of the review panel under paragraph

22 (2)(C), including any written comments submitted by the

23 small entity representatives and any appendices cited in

24 the report, as soon as practicable, but not later than—
30

•S 3121 RS

1 ‘‘(i) 180 days after the date on which the head

2 of the covered agency receives the report; or

3 ‘‘(ii) the date of the publication of the notice of

4 proposed rulemaking for the proposed rule.

5 ‘‘(B) The report of the review panel printed in the

6 Federal Register shall not include any confidential busi7 ness information submitted by any small entity represent8 ative.

9 ‘‘(4) If appropriate, the covered agency shall modify

10 the draft proposed rule, the initial regulatory flexibility

11 analysis for the draft proposed rule, or the decision on

12 whether an initial regulatory flexibility analysis is required

13 for the draft proposed rule.’’.

14 SEC. 304. DEFINITIONS.

15 Section 609(d) of title 5, United States Code, is

16 amended to read as follows:

17 ‘‘(d) In this section—

18 ‘‘(1) the term ‘covered agency’ means the Envi19 ronmental Protection Agency, the Occupational

20 Safety and Health Administration of the Depart21 ment of Labor, and the Internal Revenue Service of

22 the Department of the Treasury; and

23 ‘‘(2) the term ‘small entity representative’

24 means a small entity, or an individual or organiza-
31

•S 3121 RS

1 tion that primarily represents the interests of 1 or

2 more small entities.’’.

3 SEC. 305. COLLECTION OF INFORMATION REQUIREMENT.

4 (a) DEFINITION.—Section 601 of title 5, United

5 States Code, is amended—

6 (1) in paragraph (5) by inserting ‘‘and’’ after

7 the semicolon;

8 (2) in paragraph (6) by striking ‘‘; and’’ and in9 serting a period; and

10 (3) by striking paragraphs (7) and (8).

11 (b) INITIAL REGULATORY FLEXIBILITY ANALYSIS.—

12 The fifth sentence of section 603 of title 5, United States

13 Code, is amended to read as follows: ‘‘In the case of an

14 interpretative rule involving the internal revenue laws of

15 the United States, this chapter applies to interpretative

16 rules (including proposed, temporary, and final regula17 tions) published in the Federal Register for codification

18 in the Code of Federal Regulations.’’.

19 SEC. 306. EFFECTIVE DATE.

20 This title and the amendments made by this title

21 shall take effect 90 days after the date of enactment of

22 this Act.
32

•S 3121 RS

1 TITLE IV—OFFICE OF ADVOCACY

2 OF THE SMALL BUSINESS AD3 MINISTRATION

4 SEC. 401. SHORT TITLE.

5 This title may be cited as the ‘‘Independent Office

6 of Advocacy Act’’.

7 SEC. 402. FINDINGS.

8 Congress finds that—

9 (1) excessive regulations continue to burden the

10 Nation’s small businesses;

11 (2) Federal agencies are reluctant to comply

12 with the requirements of chapter 6 of title 5, United

13 States Code, and continue to propose regulations

14 that impose disproportionate burdens on small busi15 nesses;

16 (3) the Office of Advocacy of the Small Busi17 ness Administration (referred to in this title as the

18 ‘‘Office’’) is an effective advocate for small busi19 nesses that can help to ensure that agencies are re20 sponsive to small businesses and that agencies com21 ply with their statutory obligations under chapter 6

22 of title 5, United States Code, and under the Small

23 Business Regulatory Enforcement Fairness Act of

24 1996 (Public Law 104–121; 106 Stat. 4249 et seq.);
33

•S 3121 RS

1 (4) the independence of the Office is essential

2 to ensure that it can serve as an effective advocate

3 for small businesses, without being restricted by the

4 views or policies of the Small Business Administra5 tion or any other executive branch agency;

6 (5) the Office needs sufficient resources to con7 duct the research required to assess effectively the

8 impact of regulations on small businesses; and

9 (6) the research, information, and expertise of

10 the Office make it a valuable adviser to Congress, as

11 well as the executive branch agencies with which the

12 Office works on behalf of small businesses.

13 SEC. 403. PURPOSES.

14 The purposes of this title are—

15 (1) to ensure that the Office has the statutory

16 independence and adequate financial resources to

17 advocate for and on behalf of small businesses;

18 (2) to require that the Office report to the

19 Chairmen and Ranking Members of the Committees

20 on Small Business of the Senate and the House of

21 Representatives and the Administrator of the Small

22 Business Administration in order to keep them fully

23 and currently informed about issues and regulations

24 affecting small businesses and the necessity for cor25 rective action by the regulatory agency or Congress;
34

•S 3121 RS

1 (3) to provide a separate authorization for ap2 propriations for the Office;

3 (4) to authorize the Office to report to the

4 President and to Congress regarding agency compli5 ance with chapter 6 of title 5, United States Code;

6 and

7 (5) to enhance the role of the Office pursuant

8 to chapter 6 of title 5, United States Code.

9 SEC. 404. OFFICE OF ADVOCACY.

10 (a) IN GENERAL.—The Small Business Act (15

11 U.S.C. 631 et seq.) is amended—

12 (1) by redesignating sections 32 through 34 as

13 sections 33 through 35, respectively; and

14 (2) by inserting after section 31 the following:

15 ‘‘SEC. 32. OFFICE OF ADVOCACY.

16 ‘‘(a) DEFINITIONS.—In this section—

17 ‘‘(1) the term ‘Chief Counsel’ means the Chief

18 Counsel for Advocacy appointed under subsection

19 (b); and

20 ‘‘(2) the term ‘Office’ means the Office of Ad21 vocacy established under subsection (b).

22 ‘‘(b) ESTABLISHMENT.—

23 ‘‘(1) IN GENERAL.—There is established in the

24 Administration an Office of Advocacy.

25 ‘‘(2) CHIEF COUNSEL FOR ADVOCACY.—
35

•S 3121 RS

1 ‘‘(A) IN GENERAL.—The management of

2 the Office shall be vested in a Chief Counsel for

3 Advocacy, who shall be appointed from civilian

4 life by the President, by and with the advice

5 and consent of the Senate, without regard to

6 political affiliation and solely on the ground of

7 fitness to perform the duties of the office.

8 ‘‘(B) EMPLOYMENT RESTRICTION.—The

9 individual appointed to the office of Chief

10 Counsel may not serve as an officer or employee

11 of the Administration during the 5-year period

12 preceding the date of appointment.

13 ‘‘(C) REMOVAL.—The Chief Counsel may

14 be removed from office by the President, and

15 the President shall notify Congress of any such

16 intent to remove the Chief Counsel not later

17 than 30 days before the removal.

18 ‘‘(3) APPROPRIATION REQUEST.—Each appro19 priation request prepared and submitted by the Ad20 ministration under section 1108 of title 31, United

21 States Code, shall include a separate request relat22 ing to the Office.

23 ‘‘(c) PRIMARY FUNCTIONS.—The Office shall—

24 ‘‘(1) examine the role of small business con25 cerns in the economy of the United States and the
36

•S 3121 RS

1 contribution that small business concerns can make

2 in improving competition, encouraging economic and

3 social mobility for all citizens, restraining inflation,

4 spurring production, expanding employment oppor5 tunities, increasing productivity, promoting exports,

6 stimulating innovation and entrepreneurship, and

7 providing the means by which new and untested

8 products and services can be brought to the market9 place;

10 ‘‘(2) assess the effectiveness of Federal subsidy

11 and assistance programs for small business concerns

12 and the desirability of reducing the emphasis on

13 those programs and increasing the emphasis on gen14 eral assistance programs designed to benefit all

15 small business concerns;

16 ‘‘(3) measure the direct costs and other effects

17 of government regulation of small business concerns,

18 and make legislative, regulatory, and nonlegislative

19 proposals for eliminating the excessive or unneces20 sary regulation of small business concerns;

21 ‘‘(4) determine the impact of the tax structure

22 on small business concerns and make legislative, reg23 ulatory, and other proposals for altering the tax

24 structure to enable all small business concerns to re-
37

•S 3121 RS

1 alize their potential for contributing to the improve2 ment of the Nation’s economic well-being;

3 ‘‘(5) study the ability of financial markets and

4 institutions to meet small business concerns credit

5 needs and determine the impact of government de6 mands on credit for small business concerns;

7 ‘‘(6) determine financial resource availability

8 and recommend methods for—

9 ‘‘(A) delivery of financial assistance to mi10 nority and women-owned small business con11 cerns, including methods for securing equity

12 capital;

13 ‘‘(B) generating markets for goods and

14 services;

15 ‘‘(C) providing effective business education,

16 more effective management and technical assist17 ance, and training; and

18 ‘‘(D) assistance in complying with Federal,

19 State, and local laws;

20 ‘‘(7) evaluate the efforts of Federal agencies

21 and the private sector to assist minority and women22 owned small business concerns;

23 ‘‘(8) make such recommendations as may be

24 appropriate to assist the development and strength-
38

•S 3121 RS

1 ening of minority, women-owned, and other small

2 business concerns;

3 ‘‘(9) recommend specific measures for creating

4 an environment in which all businesses will have the

5 opportunity to—

6 ‘‘(A) compete effectively and expand to

7 their full potential; and

8 ‘‘(B) ascertain any common reasons for

9 small business successes and failures;

10 ‘‘(10) determine the desirability of developing a

11 set of rational, objective criteria to be used to define

12 small business, and to develop such criteria, if ap13 propriate; and

14 ‘‘(11) make recommendations and submit re15 ports to the Chairmen and Ranking Members of the

16 Committees on Small Business of the Senate and

17 the House of Representatives and the Administrator

18 with respect to issues and regulations affecting small

19 business concerns and the necessity for corrective

20 action by the Administrator, any Federal depart21 ment or agency, or Congress.

22 ‘‘(d) ADDITIONAL FUNCTIONS.—The Office shall, on

23 a continuing basis—

24 ‘‘(1) serve as a focal point for the receipt of

25 complaints, criticisms, and suggestions concerning
39

•S 3121 RS

1 the policies and activities of the Administration and

2 any other department or agency of the Federal Gov3 ernment that affects small business concerns;

4 ‘‘(2) counsel small business concerns on the

5 means by which to resolve questions and problems

6 concerning the relationship between small business

7 concerns and the Federal Government;

8 ‘‘(3) develop proposals for changes in the poli9 cies and activities of departments and agencies of

10 the Federal Government that, in the determination

11 of the Office, will better fulfill the purposes of this

12 section and communicate such proposals to the ap13 propriate departments and agencies of the Federal

14 Government;

15 ‘‘(4) represent the views and interests of small

16 business concerns before other departments and

17 agencies of the Federal Government, the policies and

18 activities of which may affect small business;

19 ‘‘(5) enlist the cooperation and assistance of

20 public and private agencies, business concerns, and

21 other organizations in disseminating information

22 about the programs and services provided by the

23 Federal Government that are of benefit to small

24 business concerns, and information on the means by
40

•S 3121 RS

1 which small business concerns can participate in or

2 make use of those programs and services; and

3 ‘‘(6) carry out the responsibilities of the Office

4 under chapter 6 of title 5, United States Code.

5 ‘‘(e) STAFF AND POWERS.—

6 ‘‘(1) STAFF.—

7 ‘‘(A) IN GENERAL.—The Chief Counsel

8 may, without regard to the civil service laws

9 and regulations, appoint and terminate such ad10 ditional personnel as may be necessary to en11 able the Chief Counsel to perform the duties of

12 the Chief Counsel under this section.

13 ‘‘(B) COMPENSATION.—The Chief Counsel

14 may fix the compensation of personnel ap15 pointed under this paragraph without regard to

16 the provisions of chapter 51 and subchapter III

17 of chapter 53 of title 5, United States Code, re18 lating to classification of positions and General

19 Schedule pay rates, but at rates not to exceed

20 the minimum rate payable for a position at GS–

21 15 of the General Schedule, except that not

22 more than 14 employees of the Office at any

23 one time may be compensated at a rate not to

24 exceed the maximum rate payable for a position

25 at GS–15 of the General Schedule.
41

•S 3121 RS

1 ‘‘(2) POWERS.—In carrying out this section, the

2 Chief Counsel may—

3 ‘‘(A) procure temporary and intermittent

4 services to the same extent as is authorized by

5 section 3109 of title 5, United States Code;

6 ‘‘(B) consult with—

7 ‘‘(i) experts and authorities in the

8 fields of small business investment, venture

9 capital, investment and commercial bank10 ing, and other comparable financial institu11 tions involved in the financing of business;

12 and

13 ‘‘(ii) individuals with regulatory, legal,

14 economic, or financial expertise, including

15 members of the academic community, and

16 individuals who generally represent the

17 public interest;

18 ‘‘(C) use the services of the National Advi19 sory Council established under section 8(b) and,

20 in accordance with that section, appoint such

21 other advisory boards or committees as the

22 Chief Counsel determines to be reasonably nec23 essary and appropriate to carry out this section;

24 and
42

•S 3121 RS

1 ‘‘(D) hold hearings and sit and act at such

2 times and places as the Chief Counsel deter3 mines to be appropriate.

4 ‘‘(f) OVERHEAD AND ADMINISTRATIVE SUPPORT.—

5 The Administrator shall—

6 ‘‘(1) provide the Office with appropriate and

7 adequate office space at central and field office loca8 tions of the Administration, together with such

9 equipment, office supplies, and communications fa10 cilities and services as may be necessary for the op11 eration of such offices; and

12 ‘‘(2) provide necessary maintenance services for

13 those offices, equipment, and facilities.

14 ‘‘(g) INFORMATION FROM FEDERAL AGENCIES.—

15 The Chief Counsel may secure directly from any depart16 ment or agency of the Federal Government such informa17 tion as the Chief Counsel considers to be necessary to

18 carry out this section. Upon request of the Chief Counsel,

19 the head of such department or agency shall furnish such

20 information to the Office.

21 ‘‘(h) REPORTS.—

22 ‘‘(1) ANNUAL REPORTS.—Not less than annu23 ally, the Chief Counsel shall submit to the President

24 and to the Committees on Small Business of the

25 Senate and the House of Representatives, the Com-
43

•S 3121 RS

1 mittee on Governmental Affairs of the Senate, the

2 Committee on Government Reform of the House of

3 Representatives, and the Committees on the Judici4 ary of the Senate and the House of Representatives,

5 a report on agency compliance with chapter 6 of title

6 5, United States Code.

7 ‘‘(2) ADDITIONAL REPORTS.—In addition to the

8 reports required under paragraph (1) of this sub9 section and subsection (c)(11), the Chief Counsel

10 may prepare and publish such reports as the Chief

11 Counsel determines to be appropriate.

12 ‘‘(3) PROHIBITION.—No report under this sec13 tion shall be submitted to the Office of Management

14 and Budget or to any other department or agency

15 of the Federal Government for any purpose before

16 submission of the report to the President and to

17 Congress.

18 ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—

19 ‘‘(1) IN GENERAL.—There are authorized to be

20 appropriated to the Office to carry out this section

21 such sums as may be necessary for each fiscal year.

22 ‘‘(2) AVAILABILITY.—Any sums appropriated

23 under paragraph (1) shall remain available, without

24 fiscal year limitation, until expended.’’.
44

•S 3121 RS

1 (b) REPEAL.—Title II of Public Law 94–305 (15

2 U.S.C. 634a et seq.) is repealed.

3 (c) INCUMBENT CHIEF COUNSEL FOR ADVOCACY.—

4 The individual serving as the Chief Counsel for Advocacy

5 of the Small Business Administration on the date of enact6 ment of this Act shall continue to serve in that position

7 after such date in accordance with section 32 of the Small

8 Business Act, as amended by this section.

9 TITLE V—CREDIT PROGRAMS

10 SEC. 501. SECTION 7(a) PROGRAM.

11 (a) LEVELS OF PARTICIPATION.—Section 7(a)(2)(A)

12 of the Small Business Act (15 U.S.C. 636(a)(2)(A)) is

13 amended by striking clauses (i) and (ii) and inserting the

14 following:

15 ‘‘(i) 75 percent of the balance of the

16 financing outstanding at the time of dis17 bursement of the loan, if the balance is

18 equal to more than $150,000; or

19 ‘‘(ii) 85 percent of the balance of the

20 financing outstanding at the time of dis21 bursement of the loan, if the balance is not

22 more than $150,000.’’.

23 (b) LOAN AMOUNTS.—Section 7(a)(3)(A) of the

24 Small Business Act (15 U.S.C. 636(a)(3)(A)) is amended
45

•S 3121 RS

1 by striking ‘‘$750,000,’’ and inserting, ‘‘$1,000,000 (or

2 if the gross loan amount would exceed $2,000,000),’’.

3 (c) INTEREST ON DEFAULTED LOANS.—Section

4 7(a)(4)(B) of the Small Business Act (15 U.S.C.

5 636(a)(4)(B)) is amended by adding at the end the fol6 lowing:

7 ‘‘(iii) APPLICABILITY.—Clauses (i)

8 and (ii) shall not apply to any loan made

9 on or after October 1, 2000.’’.

10 (d) PREPAYMENT OF LOANS.—Section 7(a)(4) of the

11 Small Business Act (15 U.S.C. 636(a)(4)) is amended—

12 (1) by striking ‘‘(4) INTEREST RATES AND

13 FEES.—’’ and inserting ‘‘(4) INTEREST RATES AND

14 PREPAYMENT CHARGES.—’’; and

15 (2) by adding at the end the following:

16 ‘‘(C) PREPAYMENT CHARGES.—

17 ‘‘(i) IN GENERAL.—A borrower who

18 prepays any loan guaranteed under this

19 subsection shall remit to the Administra20 tion a subsidy recoupment fee calculated in

21 accordance with clause (ii), if—

22 ‘‘(I) the loan is for a term of not

23 less than 15 years;

24 ‘‘(II) the prepayment is vol25 untary;
46

•S 3121 RS

1 ‘‘(III) the amount of prepayment

2 in any calendar year is more than 25

3 percent of the outstanding balance of

4 the loan; and

5 ‘‘(IV) the prepayment is made

6 within the first 3 years after disburse7 ment of the loan proceeds.

8 ‘‘(ii) SUBSIDY RECOUPMENT FEE.—

9 The subsidy recoupment fee charged under

10 clause (i) shall be—

11 ‘‘(I) 5 percent of the amount of

12 prepayment, if the borrower prepays

13 during the first year after disburse14 ment;

15 ‘‘(II) 3 percent of the amount of

16 prepayment, if the borrower prepays

17 during the second year after disburse18 ment; and

19 ‘‘(III) 1 percent of the amount of

20 prepayment, if the borrower prepays

21 during the third year after disburse22 ment.’’.

23 (e) GUARANTEE FEES.—Section 7(a)(18) of the

24 Small Business Act (15 U.S.C. 636(a)(18)) is amended

25 to read as follows:
47

•S 3121 RS

1 ‘‘(18) GUARANTEE FEES.—

2 ‘‘(A) IN GENERAL.—With respect to each

3 loan guaranteed under this subsection (other

4 than a loan that is repayable in 1 year or less),

5 the Administration shall collect a guarantee fee,

6 which shall be payable by the participating

7 lender, and may be charged to the borrower, as

8 follows:

9 ‘‘(i) A guarantee fee equal to 2 per10 cent of the deferred participation share of

11 a total loan amount that is not more than

12 $150,000.

13 ‘‘(ii) A guarantee fee equal to 3 per14 cent of the deferred participation share of

15 a total loan amount that is more than

16 $150,000, but less than $700,000.

17 ‘‘(iii) A guarantee fee equal to 3.5

18 percent of the deferred participation share

19 of a total loan amount that is more than

20 $700,000.

21 ‘‘(B) RETENTION OF CERTAIN FEES.—

22 Lenders participating in the programs estab23 lished under this subsection may retain not

24 more than 25 percent of a fee collected under

25 subparagraph (A)(i).’’.
48

•S 3121 RS

1 (f) LEASE TERMS.—Section 7(a) of the Small Busi2 ness Act (15 U.S.C. 636(a)) is amended by adding at the

3 end the following:

4 ‘‘(28) LEASING.—In addition to such other

5 lease arrangements as may be authorized by the Ad6 ministration, a borrower may permanently lease to 1

7 or more tenants not more than 20 percent of any

8 property constructed with the proceeds of a loan

9 guaranteed under this subsection, if the borrower

10 permanently occupies and uses not less than 60 per11 cent of the total business space in the property.’’.

12 (g) BACKGROUND CHECKS.—Section 7(a)(1)(B) of

13 the Small Business Act (15 U.S.C. 636(a)(1)(B)) is

14 amended to read as follows:

15 ‘‘(B) BACKGROUND CHECKS.—

16 ‘‘(i) IN GENERAL.—For the purpose

17 of any loan made pursuant to this sub18 section, or section 503 of the Small Busi19 ness Investment Act of 1958, the Adminis20 trator may—

21 ‘‘(I) conduct a criminal back22 ground check of any applicant, loan

23 packager, lender service provider, re24 ferral agent, or a principal thereof,

25 through the National Crime Informa-
49

•S 3121 RS

1 tion Center computer system at the

2 Federal Bureau of Investigation, and

3 other appropriate sources; and

4 ‘‘(II) require any person or entity

5 described in subclause (I) to provide

6 identifying information (including a

7 social security account number) need8 ed to perform such criminal back9 ground check.

10 ‘‘(ii) COOPERATION.—The Director of

11 the Federal Bureau of Investigation shall,

12 upon request of the Administrator, make

13 available to the Administrator use of the

14 National Crime Information Center com15 puter system for purposes of clause (i).’’.

16 SEC. 502. SMALL BUSINESS INVESTMENT COMPANIES.

17 (a) CAPITAL REQUIREMENTS.—Section 302(b) of the

18 Small Business Investment Act of 1958 (15 U.S.C.

19 682(b)) is amended—

20 (1) by striking ‘‘(b) Notwithstanding’’ and in21 serting the following:

22 ‘‘(b) FINANCIAL INSTITUTION INVESTMENTS.—

23 ‘‘(1) CERTAIN BANKS.—Notwithstanding’’; and

24 (2) by adding at the end the following:
50

•S 3121 RS

1 ‘‘(2) CERTAIN SAVINGS ASSOCIATIONS.—Not2 withstanding any other provision of law, any Federal

3 savings association may invest in any 1 or more

4 small business investment companies, or in any enti5 ty established to invest solely in small business in6 vestment companies, except that in no event may the

7 total amount of such investments by any such Fed8 eral savings association exceed 5 percent of the cap9 ital and surplus of the Federal savings association.’’.

10 (b) TECHNICAL AMENDMENT.—Section 303(b) of the

11 Small Business Investment Act of 1958 (15 U.S.C.

12 683(b)) is amended in the material immediately following

13 paragraph (4)(C), by striking ‘‘For purposes’’ and all that

14 follows through ‘‘equity financing.’’.

15 (c) ENFORCEMENT PROVISIONS.—Section 311 of the

16 Small Business Investment Act of 1958 (15 U.S.C. 687c)

17 is amended—

18 (1) by striking the section heading and insert19 ing the following:

20 ‘‘INJUNCTIONS, OTHER ORDERS, AND STATUTES OF

21 LIMITATIONS’’; and

22 (2) by adding at the end the following:

23 ‘‘(d) STATUTES OF LIMITATIONS.—Notwithstanding

24 any contractual provision to the contrary, the applicable

25 statute of limitations with regard to any action brought
51

•S 3121 RS

1 by the Administration based on a claim formerly held by

2 a current or former licensee shall be the longer of—

3 ‘‘(1) the periods provided for in sections 2415

4 and 2416 of title 28, United States Code; or

5 ‘‘(2) the expiration of 6 years (for contract

6 claims) or 3 years (for tort claims) following the

7 date on which such claim is assigned to the Adminis8 tration.

9 ‘‘(e) STATE LAW.—

10 ‘‘(1) IN GENERAL.—In the case of any tort

11 claim described in paragraph (2) for which the stat12 ute of limitations applicable under State law with re13 spect to such claim has expired not more than 5

14 years before the assignment of such claim to the Ad15 ministration, the Administration may bring an ac16 tion on such claim without regard to the expiration

17 of the statute of limitations applicable under that

18 State law.

19 ‘‘(2) DEFINITION.—A tort claim described in

20 this paragraph is a claim arising from fraud, inten21 tional misconduct resulting in unjust enrichment, or

22 intentional misconduct that causes actual damages

23 of $100,000 or more.’’.
52

•S 3121 RS

1 (d) DISCIPLINARY ACTIONS.—Section 313 of the

2 Small Business Investment Act of 1958 (15 U.S.C. 687e)

3 is amended—

4 (1) by striking the section heading and insert5 ing the following:

6 ‘‘REMOVAL OR SUSPENSION OF OFFICERS, DIRECTORS,

7 EMPLOYEES, AGENTS, OR PARTICIPANTS’’;

8 (2) by striking ‘‘director or officer of a li9 censee’’ each place that term appears and inserting

10 ‘‘covered person’’;

11 (3) by striking ‘‘director or officer’’ each place

12 that term appears and inserting ‘‘covered person’’;

13 and

14 (4) by adding at the end the following:

15 ‘‘(g) COVERED PERSON.—In this section, the term

16 ‘covered person’ means an officer, director, employee,

17 agent, or other participant in the management or conduct

18 of the affairs of a licensee.’’.

19 (e) CORRECTIONS.—

20 (1) DEFINITIONS.—

21 (A) SMALL BUSINESS CONCERN.—Section

22 103(5)(A) of the Small Business Investment

23 Act of 1958 (15 U.S.C. 662(5)(A)) is

24 amended—

25 (i) in clause (i), by inserting before

26 the semicolon ‘‘, regardless of the alloca-
53

•S 3121 RS

1 tion of control during the investment pe2 riod under any investment agreement be3 tween the business concern and the entity

4 making the investment’’; and

5 (ii) in clause (iii), by striking the pe6 riod at the end and inserting ‘‘; and’’.

7 (B) LONG TERM.—Section 103 of the

8 Small Business Investment Act of 1958 (15

9 U.S.C. 662) is amended—

10 (i) in paragraph (15), by striking

11 ‘‘and’’ at the end;

12 (ii) in paragraph (16), by striking the

13 period at the end and inserting ‘‘; and’’;

14 and

15 (iii) by adding at the end the fol16 lowing:

17 ‘‘(17) the term ‘long term’, when used in con18 nection with equity capital or loan funds invested in

19 any small business concern or smaller enterprise,

20 means any period of time of not less than 1 year.’’.

21 (2) SUBSIDY FEES.—

22 (A) DEBENTURES.—Section 303(b) of the

23 Small Business Investment Act of 1958 (15

24 U.S.C. 683(b)) is amended in the fifth sen25 tence, by striking ‘‘plus an additional charge of
54

•S 3121 RS

1 1 percent per annum which shall be paid to and

2 retained by the Administration’’ and inserting

3 ‘‘plus an additional charge, which shall be paid

4 to and retained by the Administration, in an

5 amount established annually by the Administra6 tion, which amount shall not exceed the lesser

7 of 1 percent per year or the minimum amount

8 necessary to reduce the cost (as defined in sec9 tion 502 of the Federal Credit Reform Act of

10 1990 (2 U.S.C. 661a)) to the Administration of

11 purchasing and guaranteeing debentures under

12 this Act to zero’’.

13 (B) PARTICIPATING SECURITIES.—Section

14 303(g)(2) of the Small Business Investment Act

15 of 1958 (15 U.S.C. 683(g)(2)) is amended by

16 striking ‘‘plus an additional charge of 1 percent

17 per annum which shall be paid to and retained

18 by the Administration’’ and inserting ‘‘plus an

19 additional charge, which shall be paid to and

20 retained by the Administration, in an amount

21 established annually by the Administration,

22 which amount shall not exceed the lesser of 1

23 percent per year or the minimum amount nec24 essary to reduce the cost (as defined in section

25 502 of the Federal Credit Reform Act of 1990
55

•S 3121 RS

1 (2 U.S.C. 661a)) to the Administration of pur2 chasing and guaranteeing participating securi3 ties under this Act to zero’’.

4 (3) DISTRIBUTIONS.—Section 303(g)(8) of the

5 Small Business Investment Act of 1958 (15 U.S.C.

6 683(g)(8)) is amended—

7 (A) in the first sentence, by striking ‘‘sub8 chapter s corporation’’ and inserting ‘‘sub9 chapter S corporation’’;

10 (B) in the fourth sentence, by striking

11 ‘‘the end of any calendar quarter based on a

12 quarterly’’ and inserting ‘‘any time during any

13 calendar quarter, based on an’’; and

14 (C) in the fifth sentence, by striking

15 ‘‘quarterly distributions for a calendar year,’’

16 and inserting ‘‘interim distributions for a cal17 endar year,’’.

18 (4) CONFORMING AMENDMENT.—Section

19 310(c)(4) of the Small Business Investment Act of

20 1958 (15 U.S.C. 687b(c)(4)) is amended by striking

21 ‘‘five years’’ and inserting ‘‘1 year’’.

22 SEC. 503. MICROLOAN PROGRAM.

23 (a) IN GENERAL.—Section 7(m) of the Small Busi24 ness Act (15 U.S.C. 636(m)) is amended—
56

•S 3121 RS

1 (1) in paragraphs (1)(B)(iii) and (3)(E), by

2 striking ‘‘$25,000’’ each place it appears and insert3 ing ‘‘$35,000’’;

4 (2) in paragraphs (1)(A)(iii)(I), (3)(A)(ii), and

5 (4)(C)(i)(II), by striking ‘‘$7,500’’ each place it ap6 pears and inserting ‘‘$10,000’’;

7 (3) in paragraph (1)(B)(i), by striking ‘‘short8 term,’’;

9 (4) in paragraph (2)(B), by inserting before the

10 period ‘‘, or equivalent experience, as determined by

11 the Administration’’;

12 (5) in paragraph (3)(E), by striking ‘‘$15,000’’

13 and inserting ‘‘$20,000’’;

14 (6) in paragraph (4)(E)—

15 (A) by striking clause (i) and inserting the

16 following:

17 ‘‘(i) IN GENERAL.—Each intermediary

18 may expend the grant funds received under

19 the program authorized by this subsection

20 to provide or arrange for loan technical as21 sistance to small business concerns that

22 are borrowers or prospective borrowers

23 under this subsection.’’; and

24 (B) in clause (ii), by striking ‘‘25’’ and in25 serting ‘‘35’’;
57

•S 3121 RS

1 (7) in paragraph (5)(A)—

2 (A) by striking ‘‘25 grants’’ and inserting

3 ‘‘55 grants’’; and

4 (B) by striking ‘‘$125,000’’ and inserting

5 ‘‘$200,000’’;

6 (8) in paragraph (6)(B), by striking ‘‘$10,000’’

7 and inserting ‘‘$15,000’’;

8 (9) in paragraph (7), by striking subparagraph

9 (A) and inserting the following:

10 ‘‘(A) NUMBER OF PARTICIPANTS.—Under

11 the program authorized by this subsection, the

12 Administration may fund, on a competitive

13 basis, not more than—

14 ‘‘(i) 250 intermediaries in fiscal year

15 2001;

16 ‘‘(ii) 300 intermediaries in fiscal year

17 2002; and

18 ‘‘(iii) 350 intermediaries in fiscal year

19 2003.’’; and

20 (10) in paragraph (9), by adding at the end the

21 following:

22 ‘‘(D) PEER-TO-PEER CAPACITY BUILDING

23 AND TRAINING.—The Administrator may use

24 not more than $1,000,000 of the annual appro25 priation to the Administration for technical as-
58

•S 3121 RS

1 sistance grants to subcontract with 1 or more

2 national trade associations of eligible inter3 mediaries under this subsection to provide peer4 to-peer capacity building and training to lenders

5 under this subsection and organizations seeking

6 to become lenders under this subsection.’’.

7 (b) CONFORMING AMENDMENTS.—Section

8 7(n)(11)(B) of the Small Business Act (15 U.S.C.

9 636(n)(11)(B)) is amended—

10 (1) by striking ‘‘$25,000’’ and inserting

11 ‘‘$35,000’’; and

12 (2) by striking ‘‘short-term,’’.

13 SEC. 504. SMALL BUSINESS LENDING COMPANY FEES.

14 Section 5(b) of the Small Business Act (15 U.S.C.

15 634(b)) is amended—

16 (1) in paragraph (12), by striking ‘‘and’’ at the

17 end;

18 (2) in paragraph (13), by striking the period at

19 the end and inserting ‘‘; and’’; and

20 (3) by adding at the end the following:

21 ‘‘(14) effective in fiscal year 2001, require a

22 small business lending company to pay the costs of

23 any examination by the Administration, including

24 compensation of the examiners, such amounts to be

25 deposited in the account for salaries and expenses of
59

•S 3121 RS

1 the Administration and made available solely to

2 cover costs of examinations and other program over3 sight activities.’’.

4 SEC. 505. SURETY BONDS.

5 (a) CONTRACT AMOUNTS.—Section 411 of the Small

6 Business Investment Act of 1958 (15 U.S.C. 694b) is

7 amended—

8 (1) in subsection (a)(1), by striking

9 ‘‘$1,250,000’’ and inserting ‘‘$2,000,000’’; and

10 (2) in subsection (e)(2), by striking

11 ‘‘$1,250,000’’ and inserting ‘‘$2,000,000’’.

12 (b) EXTENSION OF CERTAIN AUTHORITY.—Section

13 207 of the Small Business Administration Reauthorization

14 and Amendment Act of 1988 (15 U.S.C. 694b note) is

15 amended by striking ‘‘2000’’ and inserting ‘‘2003’’.

16 SEC. 506. DEVELOPMENT COMPANY DEBENTURES.

17 Section 503(b)(3) of the Small Business Investment

18 Act of 1958 (15 U.S.C. 697(b)(3)) is amended to read

19 as follows:

20 ‘‘(3) the interest rate on such debenture is not

21 less than the rate of interest that is acceptable to

22 the Secretary of the Treasury;’’.
60

•S 3121 RS

1 TITLE VI—HUBZONE PROGRAM

2 Subtitle A—HUBZones in Native

3 America

4 SEC. 601. SHORT TITLE.

5 This subtitle may be cited as the ‘‘HUBZones in Na6 tive America Act of 2000’’.

7 SEC. 602. HUBZONE SMALL BUSINESS CONCERN.

8 Section 3(p)(3) of the Small Business Act (15 U.S.C.

9 632(p)(3)) is amended to read as follows:

10 ‘‘(3) HUBZONE SMALL BUSINESS CONCERN.—

11 The term ‘HUBZone small business concern’

12 means—

13 ‘‘(A) a small business concern that is

14 owned and controlled by 1 or more persons,

15 each of whom is a United States citizen;

16 ‘‘(B) a small business concern that is

17 owned and controlled by an Alaska Native Cor18 poration, if that Alaska Native Corporation is—

19 ‘‘(i) a corporation owned and con20 trolled by Natives (as determined pursuant

21 to section 29(e)(1) of the Alaska Native

22 Claims Settlement Act (43 U.S.C.

23 1626(e)(1))); or

24 ‘‘(ii) a direct or indirect subsidiary

25 corporation, joint venture, or partnership
61

•S 3121 RS

1 that is owned and controlled by Natives (as

2 determined pursuant to section 29(e)(2) of

3 the Alaska Native Claims Settlement Act

4 (43 U.S.C. 1626(e)(2))); or

5 ‘‘(C) a small business concern that is

6 owned in whole or in part by 1 or more Indian

7 tribal governments, or by a corporation that is

8 wholly owned by 1 or more Indian tribal gov9 ernments.’’.

10 SEC. 603. QUALIFIED HUBZONE SMALL BUSINESS CON11 CERN.

12 (a) IN GENERAL.—Section 3(p)(5)(A)(i) of the Small

13 Business Act (15 U.S.C. 632(p)(5)(A)(i)) is amended by

14 striking subclauses (I) and (II) and inserting the fol15 lowing:

16 ‘‘(I) it is a HUBZone small busi17 ness concern—

18 ‘‘(aa) pursuant to paragraph

19 (3)(A), and that its principal of20 fice is located in a HUBZone and

21 not fewer than 35 percent of its

22 employees reside in a HUBZone;

23 ‘‘(bb) pursuant to paragraph

24 (3)(B), and that its principal of25 fice is located in a HUBZone lo-
62

•S 3121 RS

1 cated within the State of Alaska,

2 not fewer than 35 percent of its

3 employees engaged in performing

4 a contract awarded to it on the

5 basis of a preference provided

6 under section 31(b) perform their

7 work in any HUBZone located

8 within the State of Alaska, or not

9 fewer than 35 percent of its em10 ployees reside in a HUBZone lo11 cated within the State of Alaska

12 or within any Alaska Native Vil13 lage; or

14 ‘‘(cc) pursuant to paragraph

15 (3)(C), and not fewer than 35

16 percent of its employees engaged

17 in performing a contract awarded

18 to the small business concern on

19 the basis of a preference provided

20 under section 31(b) reside within

21 any Indian reservation governed

22 by 1 or more of the tribal govern23 ment owners, or reside within

24 any HUBZone adjacent to any

25 such Indian reservation;
63

•S 3121 RS

1 ‘‘(II) it will attempt to maintain

2 the applicable employment percentage

3 under subclause (I) during the per4 formance of any contract awarded to

5 the small business concern on the

6 basis of a preference provided under

7 section 31(b); and’’.

8 (b) HUBZONE PILOT PROGRAM FOR SPARSELY POP9 ULATED AREAS.—Section 3(p)(5) of the Small Business

10 Act (15 U.S.C. 632(p)(5)) is amended by adding at the

11 end the following:

12 ‘‘(E) HUBZONE PILOT PROGRAM FOR

13 SPARSELY POPULATED AREAS.—

14 ‘‘(i) IN GENERAL.—Notwithstanding

15 subparagraph (A)(i)(I)(aa), during the pe16 riod beginning on the date of enactment of

17 the Small Business Reauthorization Act of

18 2000 and ending on September 30, 2003,

19 a small business concern, the principal of20 fice of which is located in the State of

21 Alaska, shall be considered to be a quali22 fied HUBZone small business concern if—

23 ‘‘(I) its principal office is located

24 within a HUBZone within the State

25 of Alaska;
64

•S 3121 RS

1 ‘‘(II) not fewer than 35 percent

2 of its employees engaged in per3 forming a contract awarded to it on

4 the basis of a preference provided

5 under section 31(b) perform their

6 work in any HUBZone located within

7 the State of Alaska; or

8 ‘‘(III) not fewer than 35 percent

9 of its employees reside in a HUBZone

10 located within the State of Alaska.

11 ‘‘(ii) EXCEPTION.—Clause (i) does not

12 apply in any fiscal year following a fiscal

13 year in which the total amount of contract

14 dollars awarded in furtherance of the con15 tracting goals established under section

16 15(g)(1) to small business concerns located

17 within the State of Alaska is equal to more

18 than 1.5 percent of the total amount of

19 such contract dollars awarded to all small

20 business concerns.’’.

21 (c) CONFORMING AMENDMENT.—Section

22 3(p)(5)(D)(i) of the Small Business Act (15 U.S.C.

23 632(p)(5)(D)(i)) is amended by inserting ‘‘once the Ad24 ministrator has received the certification required by sub25 paragraph (A)(i) from a qualified HUBZone small busi-
65

•S 3121 RS

1 ness concern and has determined that subparagraph

2 (A)(ii) does not apply to that concern,’’ before ‘‘include’’.

3 SEC. 604. OTHER DEFINITIONS.

4 Section 3(p) of the Small Business Act (15 U.S.C.

5 632(p)) is amended by adding at the end the following:

6 ‘‘(6) NATIVE AMERICAN SMALL BUSINESS CON7 CERNS.—

8 ‘‘(A) ALASKA NATIVE CORPORATION.—The

9 term ‘Alaska Native Corporation’ has the same

10 meaning as the term ‘Native Corporation’ in

11 section 3 of the Alaska Native Claims Settle12 ment Act (43 U.S.C. 1602).

13 ‘‘(B) ALASKA NATIVE VILLAGE.—The term

14 ‘Alaska Native village’ has the same meaning as

15 the term ‘Native village’ in section 3 of the

16 Alaska Native Claims Settlement Act (43

17 U.S.C. 1602).

18 ‘‘(C) INDIAN RESERVATION.—The term

19 ‘Indian reservation’ means—

20 ‘‘(i) all land within the limits of any

21 Indian reservation under the jurisdiction of

22 the United States Government, notwith23 standing the issuance of any patent, and

24 including rights-of-way running through

25 the reservation;
66

•S 3121 RS

1 ‘‘(ii) all dependent Indian commu2 nities within the borders of the United

3 States, whether within the original or sub4 sequently acquired territory thereof, and

5 whether within or outside of the limits of

6 a State; and

7 ‘‘(iii) lands within the State of Okla8 homa that—

9 ‘‘(I) are within the jurisdictional

10 areas of an Oklahoma Indian tribe (as

11 determined by the Secretary of the In12 terior); and

13 ‘‘(II) are recognized by the Sec14 retary of the Interior as eligible for

15 trust land status under part 151 of

16 title 25, Code of Federal Regulations

17 (as in effect on the date of enactment

18 of this paragraph).’’.

19 Subtitle B—Other HUBZone

20 Provisions

21 SEC. 611. DEFINITIONS.

22 (a) QUALIFIED CENSUS TRACT.—Section 3(p)(4)(A)

23 of the Small Business Act (15 U.S.C. 632(p)(4)(A)) is

24 amended by striking ‘‘(I)’’.
67

•S 3121 RS

1 (b) QUALIFIED NONMETROPOLITAN COUNTY.—Sec2 tion 3(p)(4) of the Small Business Act (15 U.S.C.

3 632(p)(4)) is amended by striking subparagraph (B) and

4 inserting the following:

5 ‘‘(B) QUALIFIED NONMETROPOLITAN

6 COUNTY.—The term ‘qualified nonmetropolitan

7 county’ means any county—

8 ‘‘(i) that was not located in a metro9 politan statistical area (as defined in sec10 tion 143(k)(2)(B) of the Internal Revenue

11 Code of 1986) at the time of the most re12 cent census taken for purposes of selecting

13 qualified census tracts under section

14 42(d)(5)(C)(ii) of the Internal Revenue

15 Code of 1986; and

16 ‘‘(ii) in which—

17 ‘‘(I) the median household in18 come is less than 80 percent of the

19 nonmetropolitan State median house20 hold income, based on the most recent

21 data available from the Bureau of the

22 Census of the Department of Com23 merce; or

24 ‘‘(II) for any 3 of the preceding

25 5 years, the unemployment rate has
68

•S 3121 RS

1 been not less than 140 percent of the

2 Statewide average unemployment rate

3 for the State in which the county is

4 located, based on the most recent data

5 available from the Secretary of Labor.

6 ‘‘(C) EXCLUSIONS.—Notwithstanding sub7 paragraph (B)—

8 ‘‘(i) a firm that is certified as a quali9 fied HUBZone small business concern on

10 September 30, 2000 (or that has applied

11 for such certification on or before Sep12 tember 30, 2000, and is later so certified)

13 and that was located in a qualified non14 metropolitan county, as defined on the day

15 before the date of enactment of the Small

16 Business Reauthorization Act of 2000,

17 shall be considered to be a qualified

18 HUBZone small business concern until

19 September 30, 2001, and such firm may

20 perform any contract awarded to it on the

21 basis of a preference provided under sec22 tion 31(b), if such award is made on or be23 fore September 30, 2001; and

24 ‘‘(ii) if release of new statistical infor25 mation by the Department of Labor results
69

•S 3121 RS

1 in disqualification of an area that was a

2 qualified nonmetropolitan county before

3 that release, any firm that is certified as a

4 qualified HUBZone small business concern

5 on the date of that release (or that has ap6 plied for such certification on or before

7 that date of release, and is later so cer8 tified) shall be considered to be a qualified

9 HUBZone small business concern during

10 the 1-year period beginning on that date of

11 release, and such firm may perform any

12 contract awarded to it on the basis of a

13 preference provided under section 31(b), if

14 such award is made on or before the expi15 ration of that 1-year period.’’.

16 SEC. 612. ELIGIBLE CONTRACTS.

17 Section 31(b) of the Small Business Act (15 U.S.C.

18 657a(b)) is amended—

19 (1) in paragraph (3)—

20 (A) by striking ‘‘In any’’ and inserting the

21 following:

22 ‘‘(A) IN GENERAL.—Subject to subpara23 graph (B), in any’’; and

24 (B) by adding at the end the following:
70

•S 3121 RS

1 ‘‘(B) PROCUREMENT OF COMMODITIES.—

2 The 10 percent price evaluation preference

3 under subparagraph (A) does not apply to the

4 quantity of a commodity being purchased under

5 full and open competition in a particular

6 tender—

7 ‘‘(i) if—

8 ‘‘(I) the contracting officer sets

9 aside not less than 10 percent of the

10 tender for—

11 ‘‘(aa) competition restricted

12 to small business concerns that

13 are eligible to be awarded a con14 tract under section 8(a)(1)(D)(i)

15 or other socially and economically

16 disadvantaged small business

17 concerns (as defined in section

18 8(a)(4)(A));

19 ‘‘(bb) sole source contracts

20 for small business concerns that

21 are eligible to be awarded a con22 tract under section 8(a)(3), or

23 other socially and economically

24 disadvantaged small business
71

•S 3121 RS

1 concerns (as defined in section

2 8(a)(4)(A)); or

3 ‘‘(cc) competition restricted

4 to small business concerns in

5 general; and

6 ‘‘(II) the contracting officer pro7 vides for a set-aside under paragraph

8 (2)(B), or a sole-source contract

9 under paragraph (2)(A), of not less

10 than an additional 10 percent of the

11 quantity of commodity to be pur12 chased in that tender; or

13 ‘‘(ii) if the contracting officer allocates

14 not less than 20 percent of the tender for

15 a set-aside under paragraph (2)(B) or a

16 sole-source contract under paragraph

17 (2)(A), in the absence of any other small

18 business program set-asides or sole source

19 contract under this Act.’’;

20 (2) in paragraph (4), by striking ‘‘paragraph

21 (2) or (3)’’ and inserting ‘‘this subsection’’; and

22 (3) by adding at the end the following:

23 ‘‘(5) PREFERENCE FOR CERTAIN SMALL BUSI24 NESSES.—
72

•S 3121 RS

1 ‘‘(A) IN GENERAL.—Except as provided in

2 paragraph (4), a contracting officer shall give

3 preference in awarding contracts under sub4 paragraph (A) or (B) of paragraph (2) to quali5 fied HUBZone small business concerns that are

6 also eligible to be awarded contracts under sec7 tion 8(a).

8 ‘‘(B) REGULATORY LIMITATION.—No rule,

9 regulation, or order of the Administration or

10 the Federal Acquisition Regulatory Council may

11 require a contracting officer, in awarding

12 contracts—

13 ‘‘(i) to give preferential treatment to a

14 qualified HUBZone small business concern

15 relative to a small business concern that is

16 eligible to be awarded a contract under

17 section 8(a); or

18 ‘‘(ii) to give preferential treatment to

19 a small business concern that is eligible to

20 be awarded a contract under section 8(a)

21 relative to a qualified HUBZone small

22 business concern.’’.

23 SEC. 613. CORRECTION OF HUBZONE REFERENCE.

24 Section 8(d)(4)(D) of the Small Business Act (15

25 U.S.C. 637(d)(4)(D)) is amended by inserting ‘‘qualified
73

•S 3121 RS

1 HUBZone small business concerns,’’ after ‘‘small business

2 concerns,’’.

3 SEC. 614. COMMUNITY DEVELOPMENT.

4 Section 3(p) of the Small Business Act (15 U.S.C.

5 632(p)), as amended by this Act, is amended—

6 (1) in paragraph (3)—

7 (A) in subparagraph (B), by striking ‘‘or’’

8 at the end;

9 (B) in subparagraph (C), by striking the

10 period at the end and inserting ‘‘; or’’; and

11 (C) by adding at the end the following:

12 ‘‘(D) a community development corpora13 tion that has received financial assistance under

14 Part 1 of Subchapter A of the Community Eco15 nomic Development Act of 1981 (42 U.S.C.

16 9805 et seq.).’’; and

17 (2) in paragraph (5)(A)(i)(I)(aa), as amended

18 by this Act, by striking ‘‘paragraph (3)(A)’’ and in19 serting ‘‘subparagraph (A) or (D) of paragraph

20 (3)’’.

21 SEC. 615. REFERENCE CORRECTION.

22 Section 3(p)(5)(C) of the Small Business Act (15

23 U.S.C. 632(p)(5)(C)) is amended by striking ‘‘subclause

24 (IV) and (V) of subparagraph (A)(i)’’ and inserting ‘‘items

25 (aa) and (bb) of subparagraph (A)(i)(III)’’.
74

•S 3121 RS

1 TITLE VII—NATIONAL WOMEN’S

2 BUSINESS COUNCIL REAU3 THORIZATION

4 SEC. 701. SHORT TITLE.

5 This title may be cited as the ‘‘National Women’s

6 Business Council Reauthorization Act of 2000’’.

7 SEC. 702. DUTIES OF THE COUNCIL.

8 Section 406 of the Women’s Business Ownership Act

9 of 1988 (15 U.S.C. 631 note) is amended to read as fol10 lows:

11 ‘‘SEC. 406. DUTIES OF THE COUNCIL.

12 ‘‘(a) IN GENERAL.—The Council shall—

13 ‘‘(1) provide advice and counsel to the Presi14 dent and to the Congress on economic matters of

15 importance to women business owners;

16 ‘‘(2) promote initiatives designed to increase ac17 cess to capital and to markets, training and tech18 nical assistance, research, resources, and leadership

19 opportunities for and about women business owners;

20 ‘‘(3) provide a source of information and a cat21 alyst for action to support women’s business devel22 opment;

23 ‘‘(4) promote the implementation of the policy

24 agenda, initiatives and recommendations issued at
75

•S 3121 RS

1 Summit ’98, the National Women’s Economic

2 Forum;

3 ‘‘(5) review, coordinate, and monitor plans and

4 programs developed in the public and private sectors

5 that affect the ability of women-owned small busi6 ness concerns to obtain capital and credit;

7 ‘‘(6) work with—

8 ‘‘(A) the Federal agencies for the purpose

9 of assisting them in meeting the 5 percent

10 women’s procurement goal established under

11 section 15(g) of the Small Business Act; and

12 ‘‘(B) the private sector in increasing con13 tracting opportunities for women-owned small

14 business concerns;

15 ‘‘(7) promote and assist in the development of

16 a women’s business census and other statistical sur17 veys of women-owned small business concerns;

18 ‘‘(8) support new and ongoing research on

19 women-owned small business concerns;

20 ‘‘(9) monitor and promote the plans, programs,

21 and operations of the departments and agencies of

22 the Federal Government that may contribute to the

23 establishment and growth of women’s business en24 terprise;
76

•S 3121 RS

1 ‘‘(10) develop and promote new initiatives, poli2 cies, programs, and plans designed to foster women’s

3 business enterprise; and

4 ‘‘(11) advise and consult with State and local

5 leaders to develop and implement programs and poli6 cies that promote women’s business ownership.

7 ‘‘(b) INTERACTION WITH THE INTERAGENCY COM8 MITTEE ON WOMEN’S BUSINESS ENTERPRISE.—The

9 Council shall—

10 ‘‘(1) advise the Interagency Committee on

11 Women’s Business Enterprise (in this section re12 ferred to as the ‘Committee’) on matters relating to

13 the activities, functions, and policies of the Com14 mittee, as provided in this title; and

15 ‘‘(2) meet jointly with the Committee at the dis16 cretion of the chairperson of the Council and the

17 chairperson of the Committee, but not less fre18 quently than biannually.

19 ‘‘(c) MEETINGS.—The Council shall meet separately

20 at such times as the Council deems necessary. A majority

21 of the members of the Council shall constitute a quorum

22 for the approval of recommendations or reports issued

23 pursuant to this section.

24 ‘‘(d) RECOMMENDATIONS AND REPORTS.—
77

•S 3121 RS

1 ‘‘(1) IN GENERAL.—Not later than 90 days

2 after the last day of each fiscal year, the Council

3 shall—

4 ‘‘(A) make recommendations for consider5 ation by the Committee; and

6 ‘‘(B) submit a report to the President, the

7 Committee, the Administrator, the Committee

8 on Small Business of the Senate, and the Com9 mittee on Small Business of the House of Rep10 resentatives, as described in paragraph (2).

11 ‘‘(2) CONTENTS OF REPORTS.—The reports re12 quired by paragraph (1) shall contain—

13 ‘‘(A) a detailed description of the activities

14 of the Council during the preceding fiscal year,

15 including a status report on the progress of the

16 Council toward meeting its duties under sub17 sections (a);

18 ‘‘(B) the findings, conclusions, and rec19 ommendations of the Council; and

20 ‘‘(C) the recommendations of the Council

21 for such legislation and administrative actions

22 as the Council considers appropriate to promote

23 the development of small business concerns

24 owned and controlled by women.
78

•S 3121 RS

1 ‘‘(e) SEPARATE SUBMISSIONS.—The Administrator

2 shall submit any additional, concurring, or dissenting

3 views or recommendations to the President, the Com4 mittee, and the Congress separately from any rec5 ommendations or report submitted by the Council under

6 this section.’’.

7 SEC. 703. MEMBERSHIP OF THE COUNCIL.

8 Section 407 of the Women’s Business Ownership Act

9 of 1988 (15 U.S.C. 631 note) is amended—

10 (1) in subsection (a), by striking ‘‘Not later’’

11 and all that follows through ‘‘the President’’ and in12 serting ‘‘The President’’;

13 (2) in subsection (b)—

14 (A) by striking ‘‘Not later’’ and all that

15 follows through ‘‘the Administrator’’ and insert16 ing ‘‘The Administrator’’; and

17 (B) by striking ‘‘the Assistant Adminis18 trator of the Office of Women’s Business Own19 ership and’’;

20 (3) in subsection (d), by striking ‘‘, except

21 that’’ and all that follows through the end of the

22 subsection and inserting a period; and

23 (4) in subsection (h), by striking ‘‘Not later’’

24 and all that follows through ‘‘the Administrator’’

25 and inserting ‘‘The Administrator’’.
79

•S 3121 RS

1 SEC. 704. REPEAL OF PROCUREMENT PROJECT; STATE AND

2 LOCAL ECONOMIC NETWORKS.

3 Section 409 of the Women’s Business Ownership Act

4 of 1988 (15 U.S.C. 631 note) is amended to read as fol5 lows:

6 ‘‘SEC. 409. STATE AND LOCAL ECONOMIC NETWORKS.

7 ‘‘The Council shall work with State and local officials

8 and business leaders to develop the infrastructure for

9 women’s business enterprise for the purpose of increasing

10 women’s effectiveness in shaping the economic agendas of

11 their States and communities.’’.

12 SEC. 705. STUDIES AND OTHER RESEARCH.

13 Section 410 of the Women’s Business Ownership Act

14 of 1988 (15 U.S.C. 631 note) is amended to read as fol15 lows:

16 ‘‘SEC. 410. STUDIES, OTHER RESEARCH, AND ISSUE INITIA17 TIVES.

18 ‘‘(a) IN GENERAL.—

19 ‘‘(1) AUTHORITY.—The Council may, as it de20 termines to be appropriate, conduct such studies, re21 search, and issue initiatives relating to—

22 ‘‘(A) the award of Federal, State, local,

23 and private sector prime contracts and sub24 contracts to women-owned businesses; and

25 ‘‘(B) access to credit and investment cap26 ital by women entrepreneurs and business de-
80

•S 3121 RS

1 velopment assistance programs, including the

2 identification of best practices.

3 ‘‘(2) PURPOSES.—Studies, research, and issue

4 initiatives may be conducted under paragraph (1)

5 for purposes including—

6 ‘‘(A) identification of several focused out7 reach initiatives in nontraditional industry sec8 tors for the purpose of increasing contract

9 awards to women in those areas;

10 ‘‘(B) supporting the growth and prolifera11 tion of programs designed to prepare women to

12 successfully access the equity capital markets;

13 ‘‘(C) continuing to identify and report on

14 financial best practices that have worked to in15 crease credit and capital availability to women

16 business owners; and

17 ‘‘(D) working with Women’s Business Cen18 ters to develop programs and coordinate activi19 ties.

20 ‘‘(b) CONTRACT AUTHORITY.—In conducting any

21 study or other research under this section, the Council

22 may contract with 1 or more public or private entities.’’.
81

•S 3121 RS

1 SEC. 706. AUTHORIZATION OF APPROPRIATIONS.

2 Section 411 of the Women’s Business Ownership Act

3 of 1988 (15 U.S.C. 631 note) is amended to read as fol4 lows:

5 ‘‘SEC. 411. AUTHORIZATION OF APPROPRIATIONS.

6 ‘‘(a) IN GENERAL.—There is authorized to be appro7 priated to carry out this title $1,000,000, for each of fiscal

8 years 2001 through 2003, of which $550,000 shall be

9 available in each such fiscal year to carry out sections 409

10 and 410.

11 ‘‘(b) BUDGET REVIEW.—No amount made available

12 under this section for any fiscal year may be obligated or

13 expended by the Council before the date on which the

14 Council reviews and approves the operating budget of the

15 Council to carry out the responsibilities of the Council for

16 that fiscal year.’’.

17 TITLE VIII—MISCELLANEOUS

18 PROVISIONS

19 SEC. 801. NATIVE AMERICAN SMALL BUSINESS DEVELOP20 MENT CENTERS.

21 The Small Business Act (15 U.S.C. 631 et seq.) is

22 amended by inserting after section 21A the following:

23 ‘‘SEC. 21B. NATIVE AMERICAN SMALL BUSINESS DEVELOP24 MENT CENTER NETWORK.

25 ‘‘(a) DEFINITIONS.—In this section—
82

•S 3121 RS

1 ‘‘(1) the term ‘Alaska Native’ means a Native

2 (as such term is defined in section 3(b) of the Alas3 ka Native Claims Settlement Act (43 U.S.C.

4 1602(b)));

5 ‘‘(2) the term ‘Indian tribe’ has the same mean6 ing as in section 8(a)(13);

7 ‘‘(3) the terms ‘Native American Small Busi8 ness Development Center Network’ and ‘Network’

9 mean 1 lead center small business development cen10 ter with satellite locations located on reservations;

11 ‘‘(4) the terms ‘Native Hawaiian’ and ‘Native

12 Hawaiian Organization’ have the same meanings as

13 in paragraphs (1) and (3), respectively, of section

14 9212 of the Native Hawaiian Education Act (20

15 U.S.C. 7912) and section 8(a)(15) of this Act;

16 ‘‘(5) the term ‘reservation’ means—

17 ‘‘(A) the geographically defined area over

18 which a tribal organization exercises govern19 mental jurisdiction; or

20 ‘‘(B) a geographic area with a substantial

21 proportion of Alaska Natives, members of 1 or

22 more Indian tribes, or Native Hawaiians, as

23 designated by the Administration;

24 ‘‘(6) the term ‘Tribal Business Information

25 Center’ means a business information center estab-
83

•S 3121 RS

1 lished by the Administration and a tribal organiza2 tion on a reservation, as authorized by this section;

3 ‘‘(7) the terms ‘Tribal Electronic Commerce

4 Small Business Resource Center’ and ‘Resource

5 Center’ mean an information sharing system and re6 source center providing research and resources to

7 the Network, as authorized by this section; and

8 ‘‘(8) the term ‘tribal organization’ has the same

9 meaning as in section 4(1) of the Indian Self-Deter10 mination and Education Assistance Act (25 U.S.C.

11 450b(1)), except for the proviso contained in that

12 paragraph, and includes Native Hawaiian Organiza13 tions and organizations of Alaska Natives.

14 ‘‘(b) AUTHORITY FOR NETWORK.—

15 ‘‘(1) IN GENERAL.—The Administration may

16 establish a Native American Small Business Devel17 opment Center Network and a Tribal Electronic

18 Commerce Small Business Resource Center.

19 ‘‘(2) PURPOSE.—The purpose of the Network

20 shall be to stimulate reservation economies through

21 the creation and expansion of small businesses.

22 ‘‘(3) ESTABLISHMENT.—The Administration

23 may provide 1 or more contracts, grants, and coop24 erative agreements to any established tribal organi25 zation to establish the Network and the Resource
84

•S 3121 RS

1 Center. Awards made under this section may be sub2 granted.

3 ‘‘(c) USES OF ASSISTANCE.—Services provided by the

4 Network shall include—

5 ‘‘(1) providing current business management

6 and technical assistance in a cost-effective and cul7 turally tailored manner that primarily serves Alaska

8 Natives, members of Indian tribes, and Native Ha9 waiians;

10 ‘‘(2) providing Tribal Business Information

11 Centers with current electronic commerce informa12 tion, training, and other forms of technical assist13 ance;

14 ‘‘(3) supporting the Resource Center; and

15 ‘‘(4) providing any of the services that a small

16 business development center may provide under sec17 tion 21.

18 ‘‘(d) GRANT AND COOPERATIVE AGREEMENT

19 MATCHING REQUIREMENT.—

20 ‘‘(1) IN GENERAL.—As a condition for receiving

21 a contract, grant, or cooperative agreement author22 ized by this section, the recipient organization shall

23 agree to obtain, after its application has been ap24 proved and notice of award has been issued, cash or
85

•S 3121 RS

1 in kind contributions from non-Federal sources as

2 follows:

3 ‘‘(A) One non-Federal dollar for each 4

4 Federal dollars in the first and second years of

5 the term of the assistance.

6 ‘‘(B) One non-Federal dollar for each 3

7 Federal dollars in the third and fourth years of

8 the term of the assistance.

9 ‘‘(C) One non-Federal dollar for each Fed10 eral dollar in the fifth and succeeding years of

11 the term of the assistance.

12 ‘‘(2) WAIVER.—The Administration may waive

13 or reduce the matching funds requirements in para14 graph (1) with respect to a recipient organization if

15 the Administration determines that such action is

16 consistent with the purposes of this section and in

17 the best interests of the program authorized by this

18 section.

19 ‘‘(3) EXCEPTION.—The matching funds re20 quirement of paragraph (1) does not apply to con21 tracts, grants, or cooperative agreements made to a

22 tribal organization for the Resource Center.

23 ‘‘(e) AUTHORIZATION.—There is authorized to be

24 appropriated—
86

•S 3121 RS

1 ‘‘(1) to carry out this section, $3,000,000 for

2 fiscal year 2001 and each subsequent fiscal year;

3 and

4 ‘‘(2) to fund the establishment and implementa5 tion of one Resource Center under the authority of

6 this section, $500,000 for fiscal year 2001 and each

7 subsequent fiscal year.’’.

8 SEC. 802. COSPONSORSHIP.

9 Section 8(b)(1)(A) of the Small Business Act (15

10 U.S.C. 637(b)(1)(A)) is amended to read as follows:

11 ‘‘(1)(A) to provide—

12 ‘‘(i) technical, managerial, and informa13 tional aids to small business concerns—

14 ‘‘(I) by advising and counseling on

15 matters in connection with Government

16 procurement and policies, principles, and

17 practices of good management;

18 ‘‘(II) by cooperating and advising

19 with—

20 ‘‘(aa) voluntary business, profes21 sional, educational, and other non22 profit organizations, associations, and

23 institutions (except that the Adminis24 tration shall take such actions as it

25 determines necessary to ensure that
87

•S 3121 RS

1 such cooperation does not constitute

2 or imply an endorsement by the Ad3 ministration of the organization or its

4 products or services, and shall ensure

5 that it receives appropriate recogni6 tion in all printed materials); and

7 ‘‘(bb) other Federal and State

8 agencies;

9 ‘‘(III) by maintaining a clearinghouse

10 for information on managing, financing,

11 and operating small business enterprises;

12 and

13 ‘‘(IV) by disseminating such informa14 tion, including through recognition events,

15 and by other activities that the Adminis16 tration determines to be appropriate; and

17 ‘‘(ii) through cooperation with a profit18 making concern (referred to in this paragraph

19 as a ‘cosponsor’), training, information, and

20 education to small business concerns, except

21 that the Administration shall—

22 ‘‘(I) take such actions as it deter23 mines to be appropriate to ensure that—

24 ‘‘(aa) the Administration receives

25 appropriate recognition and publicity;
88

•S 3121 RS

1 ‘‘(bb) the cooperation does not

2 constitute or imply an endorsement by

3 the Administration of any product or

4 service of the cosponsor;

5 ‘‘(cc) unnecessary promotion of

6 the products or services of the cospon7 sor is avoided; and

8 ‘‘(dd) utilization of any 1 cospon9 sor in a marketing area is minimized;

10 and

11 ‘‘(II) develop an agreement, executed

12 on behalf of the Administration by an em13 ployee of the Administration in Wash14 ington, the District of Columbia, that pro15 vides, at a minimum, that—

16 ‘‘(aa) any printed material to an17 nounce the cosponsorship or to be dis18 tributed at the cosponsored activity,

19 shall be approved in advance by the

20 Administration;

21 ‘‘(bb) the terms and conditions of

22 the cooperation shall be specified;

23 ‘‘(cc) only minimal charges may

24 be imposed on any small business con-
89

•S 3121 RS

1 cern to cover the direct costs of pro2 viding the assistance;

3 ‘‘(dd) the Administration may

4 provide to the cosponsorship mailing

5 labels, but not lists of names and ad6 dresses of small business concerns

7 compiled by the Administration;

8 ‘‘(ee) all printed materials con9 taining the names of both the Admin10 istration and the cosponsor shall in11 clude a prominent disclaimer that the

12 cooperation does not constitute or

13 imply an endorsement by the Adminis14 tration of any product or service of

15 the cosponsor; and

16 ‘‘(ff) the Administration shall en17 sure that it receives appropriate rec18 ognition in all cosponsorship printed

19 materials.’’.

20 SEC. 803. FRAUD AND FALSE STATEMENTS.

21 Section 1014 of title 18, United States Code, is

22 amended by striking ‘‘a small business investment com23 pany’’ and inserting ‘‘the Small Business Administration

24 or a small business investment company as to actions

25 taken under the Small Business Investment Act of 1958’’.
90

•S 3121 RS

1 SEC. 804. FINANCIAL INSTITUTION CIVIL PENALTIES.

2 Section 951(c) of the Financial Institutions Reform

3 Recovery and Enforcement Act of 1989 (12 U.S.C.

4 1833a(c)(1)) is amended—

5 (1) in paragraph (1), by striking ‘‘or’’ at the

6 end;

7 (2) in paragraph (2), by striking the period at

8 the end and inserting ‘‘, Federal lending agency, or

9 Federal guarantor; or’’; and

10 (3) by adding at the end the following:

11 ‘‘(3) section 16(a) of the Small Business Act.’’.

12 SEC. 805. VERY SMALL BUSINESS PROGRAM.

13 Section 304(i) of the Small Business Administration

14 Reauthorization and Amendments Act of 1994 (15 U.S.C.

15 644 note) is amended by striking ‘‘September 30, 2000’’

16 and inserting ‘‘September 30, 2003.’’.

17 SEC. 806. SDB.

18 Section 7102(c) of the Federal Acquisition Stream19 lining Act of 1994 (15 U.S.C. 644 note) is amended by

20 striking ‘‘September 30, 2000’’ and inserting ‘‘September

21 30, 2005’’.

22 SEC. 807. SUBCONTRACTING PREFERENCE FOR VETERANS.

23 Section 8(d) of the Small Business Act (15 U.S.C.

24 637(d)) is amended—

25 (1) in paragraph (1), by inserting ‘‘small busi26 ness concerns owned and controlled by veterans,’’
91

•S 3121 RS

1 after ‘‘small business concerns,’’ the first place that

2 term appears in each of the first and second sen3 tences;

4 (2) in paragraph (3)—

5 (A) in subparagraph (A), by inserting

6 ‘‘small business concerns owned and controlled

7 by service-disabled veterans,’’ after ‘‘small busi8 ness concerns owned and controlled by vet9 erans,’’ in each of the first and second sen10 tences; and

11 (B) in subparagraph (F), by inserting

12 ‘‘small business concern owned and controlled

13 by service-disabled veterans,’’ after ‘‘small busi14 ness concern owned and controlled by vet15 erans,’’; and

16 (3) in each of paragraphs (4)(D), (4)(E),

17 (6)(A), (6)(C), (6)(F), and (10)(B), by inserting

18 ‘‘small business concern owned and controlled by

19 service-disabled veterans,’’ after ‘‘small business con20 cerns owned and controlled by veterans,’’.

21 SEC. 808. SIZE STANDARDS.

22 (a) INDUSTRY CLASSIFICATIONS.—Section 15(a) of

23 the Small Business Act (15 U.S.C. 644(a)) is amended

24 in the eighth sentence, by striking ‘‘four-digit standard’’

25 and all that follows through ‘‘published’’ and inserting
92

•S 3121 RS

1 ‘‘definition of a ‘United States industry’ under the North

2 American Industry Classification System, as established’’.

3 (b) ANNUAL RECEIPTS.—Section 3(a)(1) of the

4 Small Business Act (15 U.S.C. 632(a)(1)) is amended by

5 striking ‘‘$500,000’’ and inserting ‘‘$750,000’’.

6 (c) CERTAIN PACKING HOUSES.—

7 (1) IN GENERAL.—Section 3(a)(1) of the Small

8 Business Act (15 U.S.C. 632(a)(1)) is amended by

9 inserting before the period ‘‘and, in the case of an

10 enterprise that is a fresh fruit and vegetable packing

11 house, has not more than 200 employees’’.

12 (2) EFFECTIVE DATE.—The amendment made

13 by paragraph (1) shall apply to any application to

14 the Small Business Administration for emergency or

15 disaster loan assistance that was pending on or after

16 April 1, 1999.

17 (d) PUBLIC COMMENT.—Section 3(a)(2)(C)(i) of the

18 Small Business Act (15 U.S.C. 632 (a)(2)(C)(i)) is

19 amended to read as follows:

20 ‘‘(i) is published as a notice of pro21 posed rulemaking for public comment;’’.

22 SEC. 809. DRUG-FREE WORKPLACE PROGRAM.

23 Section 27(g)(1) of the Small Business Act (15

24 U.S.C. 654(g)(1)) is amended by striking ‘‘1999 and

25 2000’’ and inserting ‘‘2001 and 2002’’.

Calendar No. 838

106TH CONGRESS

2D SESSION S. 3121

[Report No. 106–422]

A BILL

To reauthorize programs to assist small business

concerns, and for other purposes.

SEPTEMBER 27 (legislative day, SEPTEMBER 22), 2000

Read twice and placed on the calendar