Calendar No. 372

106TH CONGRESS

1ST SESSION S. 791

[Report No. 106–214]

A BILL

To amend the Small Business Act with respect to

the women’s business center program.

NOVEMBER 2, 1999

Reported with an amendment
II

Calendar No. 372

106TH CONGRESS

1ST SESSION S. 791

[Report No. 106–214]

To amend the Small Business Act with respect to the women’s business

center program.

IN THE SENATE OF THE UNITED STATES

APRIL 14, 1999

Mr. KERRY (for himself, Mr. BOND, Mr. HARKIN, Mr. BINGAMAN, Mr. LEVIN,

Mr. ENZI, Mr. KENNEDY, Mr. DOMENICI, Mr. ABRAHAM, Mr. SARBANES,

Mr. AKAKA, Mr. EDWARDS, Mrs. FEINSTEIN, Ms. LANDRIEU, Mrs.

BOXER, Mr. CLELAND, Mr. KOHL, Mr. WELLSTONE, Mr. BURNS, Mr.

LEAHY, Ms. SNOWE, Mrs. HUTCHISON, Mr. DURBIN, Mr. SANTORUM,

Mrs. MURRAY, Ms. MIKULSKI, Mr. INOUYE, Mr. JEFFORDS, Mr.

LIEBERMAN, and Mr. BENNETT) introduced the following bill; which was

read twice and referred to the Committee on Small Business

NOVEMBER 2, 1999

Reported by Mr. BOND, with an amendment

[Strike out all after the enacting clause and insert the part printed in italic]

A BILL

To amend the Small Business Act with respect to the

women’s business center program.

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

2 This Act may be cited as the ‘‘Women’s Business

3 Centers Sustainability Act of 1999’’.

4 SEC. 2. WOMEN’S BUSINESS CENTER PROGRAM.

5 (a) IN GENERAL.—Section 29 of the Small Business

6 Act (15 U.S.C. 656) is amended by adding at the end the

7 following:

8 ‘‘(l) ELIGIBILITY FOR ADDITIONAL ASSISTANCE.—

9 ‘‘(1) IN GENERAL.—Subject to paragraph (2), a

10 private organization that has received financial as11 sistance under this section pursuant to a grant, con12 tract, or cooperative agreement, and that is in the

13 final year of a 5-year project or that has completed

14 a project financed under this section (or any prede15 cessor to this section), may apply for financial as16 sistance for an additional 5-year project under this

17 section.

18 ‘‘(2) CONDITIONS FOR PARTICIPATION.—Not19 withstanding any other provision of this section, as

20 a condition of receiving financial assistance author21 ized by this subsection, an organization described in

22 paragraph (1)—

23 ‘‘(A) shall meet such requirements as the

24 Administration shall establish to promote the

25 viability and success of the program under this
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1 section, in addition to the requirements set

2 forth in this section; and

3 ‘‘(B) shall agree to obtain, after its appli4 cation has been approved and notice of award

5 has been issued, cash contributions from non6 Federal sources for each year of additional pro7 gram participation in an amount equal to 1

8 non-Federal dollar for each Federal dollar.’’.

9 (b) AUTHORIZATION OF APPROPRIATIONS.—Section

10 29(k) of the Small Business Act (15 U.S.C. 656(k)) is

11 amended by striking paragraph (1) and inserting the fol12 lowing:

13 ‘‘(1) IN GENERAL.—There is authorized to be

14 appropriated $12,000,000 for each of fiscal years

15 2000 and 2001 to carry out the projects authorized

16 under this section, of which, in each fiscal year, not

17 more than 40 percent may be used to carry out

18 projects funded under subsection (l).’’.

19 SECTION 1. SHORT TITLE.

20 This Act may be cited as the ‘‘Women’s Business Cen21 ters Sustainability Act of 1999’’.

22 SEC. 2. PRIVATE NONPROFIT ORGANIZATIONS.

23 Section 29 of the Small Business Act (15 U.S.C. 656)

24 is amended—

25 (1) in subsection (a)—
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1 (A) by redesignating paragraphs (2) and

2 (3) as paragraphs (3) and (4), respectively; and

3 (B) by inserting after paragraph (1) the fol4 lowing:

5 ‘‘(2) the term ‘private nonprofit organization’

6 means an entity that is described in section 501(c) of

7 the Internal Revenue Code of 1986 and exempt from

8 taxation under section 501(a) of such Code;’’; and

9 (2) in subsection (b), by inserting ‘‘nonprofit’’

10 after ‘‘private’’.

11 SEC. 3. INCREASED MANAGEMENT OVERSIGHT AND REVIEW

12 OF WOMEN’S BUSINESS CENTERS.

13 Section 29 of the Small Business Act (15 U.S.C. 656)

14 is amended—

15 (1) by striking subsection (h) and inserting the

16 following:

17 ‘‘(h) PROGRAM EXAMINATION.—

18 ‘‘(1) IN GENERAL.—The Administration shall—

19 ‘‘(A) develop and implement an annual

20 programmatic and financial examination of

21 each women’s business center established pursu22 ant to this section, pursuant to which each such

23 center shall provide to the Administration—
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1 ‘‘(i) an itemized cost breakdown of ac2 tual expenditures for costs incurred during

3 the preceding year; and

4 ‘‘(ii) documentation regarding the

5 amount of matching assistance from non6 Federal sources obtained and expended by

7 the center during the preceding year in

8 order to meet the requirements of subsection

9 (c) and, with respect to any in-kind con10 tributions described in subsection (c)(2) that

11 were used to satisfy the requirements of sub12 section (c), verification of the existence and

13 valuation of those contributions; and

14 ‘‘(B) analyze the results of each such exam15 ination and, based on that analysis, make a de16 termination regarding the programmatic and fi17 nancial viability of each women’s business cen18 ter.

19 ‘‘(2) CONDITIONS FOR CONTINUED FUNDING.—In

20 determining whether to award a contract (as a sus21 tainability grant) under subsection (l) or to renew a

22 contract (either as a grant or cooperative agreement)

23 under this section with a women’s business center, the

24 Administration—
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1 ‘‘(A) shall consider the results of the most

2 recent examination of the center under para3 graph (1); and

4 ‘‘(B) may withhold such award or renewal,

5 if the Administration determines that—

6 ‘‘(i) the center has failed to provide

7 any information required to be provided

8 under clause (i) or (ii) of paragraph (1)(A),

9 or the information provided by the center is

10 inadequate; or

11 ‘‘(ii) the center has failed to provide

12 any information required to be provided by

13 the center for purposes of the report of the

14 Administration under subsection (j), or the

15 information provided by the center is inad16 equate.’’; and

17 (2) by striking subsection (j) and inserting the

18 following:

19 ‘‘(j) MANAGEMENT REPORT.—

20 ‘‘(1) IN GENERAL.—The Administration shall

21 prepare and submit to the Committees on Small

22 Business of the House of Representatives and the Sen23 ate a report on the effectiveness of all projects con24 ducted under this section.
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1 ‘‘(2) CONTENTS.—Each report submitted under

2 paragraph (1) shall include information concerning,

3 with respect to each women’s business center estab4 lished pursuant to this section—

5 ‘‘(A) the number of individuals receiving

6 assistance;

7 ‘‘(B) the number of startup business con8 cerns formed;

9 ‘‘(C) the gross receipts of assisted concerns;

10 ‘‘(D) the employment increases or decreases

11 of assisted concerns;

12 ‘‘(E) to the maximum extent practicable,

13 increases or decreases in profits of assisted con14 cerns; and

15 ‘‘(F) the most recent analysis, as required

16 under subsection (h)(1)(B), and the subsequent

17 determination made by the Administration

18 under that subsection.’’.

19 SEC. 4. WOMEN’S BUSINESS CENTERS SUSTAINABILITY

20 PILOT PROGRAM.

21 (a) IN GENERAL.—Section 29 of the Small Business

22 Act (15 U.S.C. 656) is amended by adding at the end the

23 following:

24 ‘‘(l) SUSTAINABILITY PILOT PROGRAM.—
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1 ‘‘(1) IN GENERAL.—There is established a 4-year

2 pilot program under which the Administration is au3 thorized to award grants (referred to in this section

4 as ‘sustainability grants’) on a competitive basis for

5 an additional 5-year project under this section to any

6 private nonprofit organization (or a division there7 of)—

8 ‘‘(A) that has received financial assistance

9 under this section pursuant to a grant, contract,

10 or cooperative agreement; and

11 ‘‘(B) that—

12 ‘‘(i) is in the final year of a 5-year

13 project; or

14 ‘‘(ii) to the extent that amounts are

15 available for such purpose under subsection

16 (k)(4)(B), has completed a project financed

17 under this section (or any predecessor to

18 this section) and continues to provide as19 sistance to women entrepreneurs.

20 ‘‘(2) CONDITIONS FOR PARTICIPATION.—In order

21 to receive a sustainability grant, an organization de22 scribed in paragraph (1) shall submit to the Adminis23 tration an application, which shall include—

24 ‘‘(A) a certification that the applicant—
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1 ‘‘(i) is a private nonprofit organiza2 tion;

3 ‘‘(ii) employs a full-time executive di4 rector or program manager to manage the

5 center; and

6 ‘‘(iii) as a condition of receiving a sus7 tainability grant, agrees—

8 ‘‘(I) to a site visit as part of the

9 final selection process and to an an10 nual programmatic and financial ex11 amination; and

12 ‘‘(II) to the maximum extent

13 practicable, to remedy any problems

14 identified pursuant to that site visit or

15 examination;

16 ‘‘(B) information demonstrating that the

17 applicant has the ability and resources to meet

18 the needs of the market to be served by the wom19 en’s business center site for which a sustain20 ability grant is sought, including the ability to

21 fundraise;

22 ‘‘(C) information relating to assistance pro23 vided by the women’s business center site for

24 which a sustainability grant is sought in the

25 area in which the site is located, including—
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1 ‘‘(i) the number of individuals assisted;

2 ‘‘(ii) the number of hours of counseling,

3 training, and workshops provided; and

4 ‘‘(iii) the number of startup business

5 concerns formed;

6 ‘‘(D) information demonstrating the effec7 tive experience of the applicant in—

8 ‘‘(i) conducting financial, manage9 ment, and marketing assistance programs,

10 as described in paragraphs (1), (2), and (3)

11 of subsection (b), designed to impart or up12 grade the business skills of women business

13 owners or potential owners;

14 ‘‘(ii) providing training and services

15 to a representative number of women who

16 are both socially and economically dis17 advantaged;

18 ‘‘(iii) using resource partners of the

19 Administration and other entities, such as

20 universities;

21 ‘‘(iv) complying with the cooperative

22 agreement of the applicant; and

23 ‘‘(v) the prudent management of fi24 nances and staffing, including the manner

25 in which the performance of the applicant
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1 compared to the business plan of the appli2 cant and the manner in which grant funds

3 awarded under subsection (b) were used by

4 the applicant; and

5 ‘‘(E) a 5-year plan that projects the ability

6 of the women’s business center site for which a

7 sustainability grant is sought—

8 ‘‘(i) to serve women business owners or

9 potential owners in the future by improving

10 fundraising and training activities; and

11 ‘‘(ii) to provide training and services

12 to a representative number of women who

13 are both socially and economically dis14 advantaged.

15 ‘‘(3) REVIEW OF APPLICATIONS.—

16 ‘‘(A) IN GENERAL.—The Administration

17 shall—

18 ‘‘(i) review each application submitted

19 under paragraph (2) based on the informa20 tion provided under in subparagraphs (D)

21 and (E) of that paragraph, and the criteria

22 set forth in subsection (f);

23 ‘‘(ii) as part of the final selection proc24 ess, conduct a site visit at each women’s
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1 business center for which a sustainability

2 grant is sought; and

3 ‘‘(iii) approve or disapprove applica4 tions for sustainability grants simulta5 neously with applications for grants under

6 subsection (b).

7 ‘‘(B) DATA COLLECTION.—Consistent with

8 the annual report to Congress under subsection

9 (j), each women’s business center site that is

10 awarded a sustainability grant shall, to the

11 maximum extent practicable, collect information

12 relating to—

13 ‘‘(i) the number of individuals assisted;

14 ‘‘(ii) the number of hours of counseling

15 and training provided and workshops con16 ducted;

17 ‘‘(iii) the number of startup business

18 concerns formed;

19 ‘‘(iv) any available gross receipts of as20 sisted concerns; and

21 ‘‘(v) the number of jobs created, main22 tained, or lost at assisted concerns.

23 ‘‘(C) RECORD RETENTION.—The Adminis24 tration shall maintain a copy of each applica-
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1 tion submitted under this subsection for not less

2 than 10 years.

3 ‘‘(4) NON-FEDERAL CONTRIBUTION.—

4 ‘‘(A) IN GENERAL.—Notwithstanding any

5 other provision of this section, as a condition of

6 receiving a sustainability grant, an organization

7 described in paragraph (1) shall agree to obtain,

8 after its application has been approved under

9 paragraph (3) and notice of award has been

10 issued, cash and in-kind contributions from non11 Federal sources for each year of additional pro12 gram participation in an amount equal to 1

13 non-Federal dollar for each Federal dollar.

14 ‘‘(B) FORM OF NON-FEDERAL CONTRIBU15 TIONS.—Not more than 50 percent of the non16 Federal assistance obtained for purposes of sub17 paragraph (A) may be in the form of in-kind

18 contributions that are budget line items only, in19 cluding office equipment and office space.

20 ‘‘(5) TIMING OF REQUESTS FOR PROPOSALS.—In

21 carrying out this subsection, the Administration shall

22 issue requests for proposals for women’s business cen23 ters applying for the pilot program under this sub24 section simultaneously with requests for proposals for

25 grants under subsection (b).’’.
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1 (b) AUTHORIZATION OF APPROPRIATIONS.—Section

2 29(k) of the Small Business Act (15 U.S.C. 656(k)) is

3 amended—

4 (1) by striking paragraph (1) and inserting the

5 following:

6 ‘‘(1) IN GENERAL.—There is authorized to be ap7 propriated, to remain available until the expiration

8 of the pilot program under subsection (l)—

9 ‘‘(A) $13,000,000 for fiscal year 2000;

10 ‘‘(B) $14,300,000 for fiscal year 2001;

11 ‘‘(C) $15,600,000 for fiscal year 2002; and

12 ‘‘(D) $17,000,000 for fiscal year 2003.’’;

13 (2) in paragraph (2)—

14 (A) by striking ‘‘Amounts made’’ and in15 serting the following:

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

17 subparagraph (B), amounts made’’; and

18 (B) by adding at the end the following:

19 ‘‘(B) EXCEPTIONS.—Of the amount made

20 available under this subsection for a fiscal year,

21 the following amounts shall be available for selec22 tion panel costs, post-award conference costs, and

23 costs related to monitoring and oversight:

24 ‘‘(i) For fiscal year 2000, 2.5 percent.

25 ‘‘(ii) For fiscal year 2001, 2.3 percent.
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1 ‘‘(iii) For fiscal year 2002, 2.3 percent.

2 ‘‘(iv) For fiscal year 2003, 1.9 per3 cent.’’; and

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

5 ‘‘(4) RESERVATION OF FUNDS FOR SUSTAIN6 ABILITY PILOT PROGRAM.—

7 ‘‘(A) IN GENERAL.—Subject to subpara8 graph (B), of the total amount made available

9 under this subsection for a fiscal year, the fol10 lowing amounts shall be reserved for sustain11 ability grants under subsection (l):

12 ‘‘(i) For fiscal year 2000, 19.4 percent.

13 ‘‘(ii) For fiscal year 2001, 21.9 per14 cent.

15 ‘‘(iii) For fiscal year 2002, 32 percent.

16 ‘‘(iv) For fiscal year 2003, 35 percent.

17 ‘‘(B) USE OF UNAWARDED FUNDS FOR SUS18 TAINABILITY PILOT PROGRAM GRANTS.—If the

19 amount reserved under subparagraph (A) for

20 any fiscal year is not fully awarded to private

21 nonprofit organizations described in subsection

22 (l)(1)(B)(i), the unawarded amount—

23 ‘‘(i) shall first be made available for

24 sustainability grant awards under sub25 section (l) to private nonprofit organiza-
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1 tions described in subsection (l)(1)(B)(ii);

2 and

3 ‘‘(ii) any remaining unawarded

4 amount shall be made available to fund ad5 ditional women’s business center sites or to

6 increase funding of existing women’s busi7 ness center sites under subsection (b).’’.

8 (c) GUIDELINES.—Not later than 30 days after the

9 date of enactment of this Act, the Administrator of the

10 Small Business Administration shall issue guidelines to im11 plement the amendments made by this section.

12 SEC. 5. SENSE OF THE SENATE REGARDING GOVERNMENT

13 PROCUREMENT ACCESS FOR WOMEN-OWNED

14 SMALL BUSINESSES.

15 (a) FINDINGS.—The Senate finds that—

16 (1) women-owned small businesses are a power17 ful force in the economy;

18 (2) between 1987 and 1996—

19 (A) the number of women-owned small busi20 nesses in the United States increased by 78 per21 cent, almost twice the rate of increase of all busi22 nesses in the United States;

23 (B) the number of women-owned small busi24 nesses increased in every State;
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1 (C) total sales by women-owned small busi2 nesses in the United States increased by 236 per3 cent;

4 (D) employment provided by women-owned

5 small businesses in the United States increased

6 by 183 percent; and

7 (E) the rates of growth for women-owned

8 small businesses in the United States for the fast9 est growing industries were—

10 (i) 171 percent in construction;

11 (ii) 157 percent in wholesale trade;

12 (iii) 140 percent in transportation and

13 communications;

14 (iv) 130 percent in agriculture; and

15 (v) 112 percent in manufacturing;

16 (3) approximately 8,000,000 women-owned small

17 businesses in the United States provide jobs for

18 15,500,000 individuals and generate almost

19 $1,400,000,000,000 in sales each year;

20 (4) the participation of women-owned small

21 businesses in the United States in the procurement

22 market of the Federal Government is limited;

23 (5) the Federal Government is the largest pur24 chaser of goods and services in the United States,

25 spending more than $200,000,000,000 each year;
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1 (6) the majority of Federal Government pur2 chases are for items that cost $25,000 or less; and

3 (7) the rate of Federal procurement for women4 owned small businesses is 2.2 percent.

5 (b) SENSE OF THE SENATE.—It is the sense of the Sen6 ate that, not later than 1 year after the date of enactment

7 of this Act, the Comptroller General of the United States

8 should—

9 (1) conduct an audit of the Federal procurement

10 system regarding Federal contracting involving

11 women-owned small businesses for the 3 preceding fis12 cal years;

13 (2) solicit from Federal employees involved in

14 the Federal procurement system any suggestions re15 garding how to increase the number of Federal con16 tracts awarded to women-owned small businesses; and

17 (3) submit to Congress a report on the results of

18 that audit, which report shall include—

19 (A) an analysis of any identified trends in

20 Federal contracting with respect to women21 owned small businesses;

22 (B) any recommended means to increase the

23 number of Federal contracts awarded to women24 owned small businesses that the Comptroller

25 General considers to be appropriate, after taking
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1 into consideration any suggestions received pur2 suant to a solicitation described in paragraph

3 (2), including any such means that incorporate

4 the concepts of teaming or partnering; and

5 (C) a discussion of any barriers to the re6 ceipt of Federal contracts by women-owned small

7 businesses and other small businesses that are

8 created by legal or regulatory procurement re9 quirements or practices.

10 SEC. 6. EFFECTIVE DATE.

11 This Act and the amendments made by this Act shall

12 take effect on October 1, 1999.