S. 791

One Hundred Sixth Congress

of the

United States of America

AT THE FIRST SESSION

Begun and held at the City of Washington on Wednesday,

the sixth day of January, one thousand nine hundred and ninety-nine

An Act

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

program.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

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

Sustainability Act of 1999’’.

SEC. 2. PRIVATE NONPROFIT ORGANIZATIONS.

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

amended—

(1) in subsection (a)—

(A) by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively; and

(B) by inserting after paragraph (1) the following:

‘‘(2) the term ‘private nonprofit organization’ means an

entity that is described in section 501(c) of the Internal Revenue

Code of 1986 and exempt from taxation under section 501(a)

of such Code;’’; and

(2) in subsection (b), by inserting ‘‘nonprofit’’ after ‘‘private’’.

SEC. 3. INCREASED MANAGEMENT OVERSIGHT AND REVIEW OF

WOMEN’S BUSINESS CENTERS.

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

amended—

(1) by striking subsection (h) and inserting the following:

‘‘(h) PROGRAM EXAMINATION.— ‘‘(1) IN GENERAL.—The Administration shall—

‘‘(A) develop and implement an annual programmatic

and financial examination of each women’s business center

established pursuant to this section, pursuant to which

each such center shall provide to the Administration—

‘‘(i) an itemized cost breakdown of actual expenditures for costs incurred during the preceding year;

and

‘‘(ii) documentation regarding the amount of

matching assistance from non-Federal sources obtained

and expended by the center during the preceding year

in order to meet the requirements of subsection (c)

and, with respect to any in-kind contributions

described in subsection (c)(2) that were used to satisfy

the requirements of subsection (c), verification of the

existence and valuation of those contributions; and
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‘‘(B) analyze the results of each such examination and,

based on that analysis, make a determination regarding

the programmatic and financial viability of each women’s

business center.

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

whether to award a contract (as a sustainability grant) under

subsection (l) or to renew a contract (either as a grant or

cooperative agreement) under this section with a women’s business center, the Administration—

‘‘(A) shall consider the results of the most recent examination of the center under paragraph (1); and

‘‘(B) may withhold such award or renewal, if the

Administration determines that—

‘‘(i) the center has failed to provide any information

required to be provided under clause (i) or (ii) of paragraph (1)(A), or the information provided by the center

is inadequate; or

‘‘(ii) the center has failed to provide any information required to be provided by the center for purposes

of the report of the Administration under subsection

(j), or the information provided by the center is inadequate.’’; and

(2) by striking subsection (j) and inserting the following:

‘‘(j) MANAGEMENT REPORT.—

‘‘(1) IN GENERAL.—The Administration shall prepare and

submit to the Committees on Small Business of the House

of Representatives and the Senate a report on the effectiveness

of all projects conducted under this section.

‘‘(2) CONTENTS.—Each report submitted under paragraph

(1) shall include information concerning, with respect to each

women’s business center established pursuant to this section—

‘‘(A) the number of individuals receiving assistance;

‘‘(B) the number of startup business concerns formed;

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

‘‘(D) the employment increases or decreases of assisted

concerns;

‘‘(E) to the maximum extent practicable, increases or

decreases in profits of assisted concerns; and

‘‘(F) the most recent analysis, as required under subsection (h)(1)(B), and the subsequent determination made

by the Administration under that subsection.’’.

SEC. 4. WOMEN’S BUSINESS CENTERS SUSTAINABILITY PILOT PROGRAM.

(a) IN GENERAL.—Section 29 of the Small Business Act (15

U.S.C. 656) is amended by adding at the end the following:

‘‘(l) SUSTAINABILITY PILOT PROGRAM.—

‘‘(1) IN GENERAL.—There is established a 4-year pilot program under which the Administration is authorized to award

grants (referred to in this section as ‘sustainability grants’)

on a competitive basis for an additional 5-year project under

this section to any private nonprofit organization (or a division

thereof)—

‘‘(A) that has received financial assistance under this

section pursuant to a grant, contract, or cooperative agreement; and

‘‘(B) that—
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‘‘(i) is in the final year of a 5-year project; or

‘‘(ii) has completed a project financed under this

section (or any predecessor to this section) and continues to provide assistance to women entrepreneurs.

‘‘(2) CONDITIONS FOR PARTICIPATION.—In order to receive

a sustainability grant, an organization described in paragraph

(1) shall submit to the Administration an application, which

shall include—

‘‘(A) a certification that the applicant—

‘‘(i) is a private nonprofit organization;

‘‘(ii) employs a full-time executive director or program manager to manage the center; and

‘‘(iii) as a condition of receiving a sustainability

grant, agrees—

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

process and to an annual programmatic and financial examination; and

‘‘(II) to the maximum extent practicable, to

remedy any problems identified pursuant to that

site visit or examination;

‘‘(B) information demonstrating that the applicant has

the ability and resources to meet the needs of the market

to be served by the women’s business center site for which

a sustainability grant is sought, including the ability to

fundraise;

‘‘(C) information relating to assistance provided by the

women’s business center site for which a sustainability

grant is sought in the area in which the site is located,

including—

‘‘(i) the number of individuals assisted;

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

and workshops provided; and

‘‘(iii) the number of startup business concerns

formed;

‘‘(D) information demonstrating the effective experience

of the applicant in—

‘‘(i) conducting financial, management, and marketing assistance programs, as described in paragraphs

(1), (2), and (3) of subsection (b), designed to impart

or upgrade the business skills of women business

owners or potential owners;

‘‘(ii) providing training and services to a representative number of women who are both socially and

economically disadvantaged;

‘‘(iii) using resource partners of the Administration

and other entities, such as universities;

‘‘(iv) complying with the cooperative agreement of

the applicant; and

‘‘(v) the prudent management of finances and

staffing, including the manner in which the performance of the applicant compared to the business plan

of the applicant and the manner in which grant funds

awarded under subsection (b) were used by the

applicant; and

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

women’s business center site for which a sustainability

grant is sought—
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‘‘(i) to serve women business owners or potential

owners in the future by improving fundraising and

training activities; and

‘‘(ii) to provide training and services to a representative number of women who are both socially and

economically disadvantaged.

‘‘(3) REVIEW OF APPLICATIONS.—

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

‘‘(i) review each application submitted under paragraph (2) based on the information provided in subparagraphs (D) and (E) of that paragraph, and the

criteria set forth in subsection (f);

‘‘(ii) as part of the final selection process, conduct

a site visit at each women’s business center for which

a sustainability grant is sought; and

‘‘(iii) approve or disapprove applications for

sustainability grants simultaneously with applications

for grants under subsection (b).

‘‘(B) DATA COLLECTION.—Consistent with the annual

report to Congress under subsection (j), each women’s business center site that is awarded a sustainability grant

shall, to the maximum extent practicable, collect information relating to—

‘‘(i) the number of individuals assisted;

‘‘(ii) the number of hours of counseling and training

provided and workshops conducted;

‘‘(iii) the number of startup business concerns

formed;

‘‘(iv) any available gross receipts of assisted concerns; and

‘‘(v) the number of jobs created, maintained, or

lost at assisted concerns.

‘‘(C) RECORD RETENTION.—The Administration shall

maintain a copy of each application submitted under this

subsection for not less than 10 years.

‘‘(4) NON-FEDERAL CONTRIBUTION.— ‘‘(A) IN GENERAL.—Notwithstanding any other provision of this section, as a condition of receiving a sustainability grant, an organization described in paragraph (1)

shall agree to obtain, after its application has been

approved under paragraph (3) and notice of award has

been issued, cash and in-kind contributions from non-Federal sources for each year of additional program participation in an amount equal to 1 non-Federal dollar for each

Federal dollar.

‘‘(B) FORM OF NON-FEDERAL CONTRIBUTIONS.—Not more

than 50 percent of the non-Federal assistance obtained

for purposes of subparagraph (A) may be in the form of

in-kind contributions that are budget line items only,

including office equipment and office space.

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

this subsection, the Administration shall issue requests for

proposals for women’s business centers applying for the pilot

program under this subsection simultaneously with requests

for proposals for grants under subsection (b).’’.

(b) AUTHORIZATION OF APPROPRIATIONS.—Section 29(k) of the

Small Business Act (15 U.S.C. 656(k)) is amended—
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(1) by striking paragraph (1) and inserting the following:

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

to remain available until the expiration of the pilot program

under subsection (l)—

‘‘(A) $12,000,000 for fiscal year 2000;

‘‘(B) $12,800,000 for fiscal year 2001;

‘‘(C) $13,700,000 for fiscal year 2002; and

‘‘(D) $14,500,000 for fiscal year 2003.’’;

(2) in paragraph (2)—

(A) by striking ‘‘Amounts made’’ and inserting the following:

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

(B), amounts made’’; and

(B) by adding at the end the following:

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

under this subsection for a fiscal year, the following

amounts shall be available for selection panel costs, postaward conference costs, and costs related to monitoring

and oversight:

‘‘(i) For fiscal year 2000, 2 percent.

‘‘(ii) For fiscal year 2001, 1.9 percent.

‘‘(iii) For fiscal year 2002, 1.9 percent.

‘‘(iv) For fiscal year 2003, 1.6 percent.’’; and

(3) by adding at the end the following:

‘‘(4) RESERVATION OF FUNDS FOR SUSTAINABILITY PILOT PROGRAM.—

‘‘(A) IN GENERAL.—Subject to subparagraph (B), of the

total amount made available under this subsection for a

fiscal year, the following amounts shall be reserved for

sustainability grants under subsection (l):

‘‘(i) For fiscal year 2000, 17 percent.

‘‘(ii) For fiscal year 2001, 18.8 percent.

‘‘(iii) For fiscal year 2002, 30.2 percent.

‘‘(iv) For fiscal year 2003, 30.2 percent.

‘‘(B) USE OF UNAWARDED FUNDS FOR SUSTAINABILITY

PILOT PROGRAM GRANTS.—If the amount reserved under

subparagraph (A) for any fiscal year is not fully awarded

to private nonprofit organizations described in subsection

(l)(1)(B), the Administration is authorized to use the

unawarded amount to fund additional women’s business

center sites or to increase funding of existing women’s

business center sites under subsection (b).’’.

(c) GUIDELINES.—Not later than 30 days after the date of enactment of this Act, the Administrator of the Small Business Administration shall issue guidelines to implement the amendments made

by this section.

SEC. 5. SENSE OF THE SENATE REGARDING GOVERNMENT PROCUREMENT ACCESS FOR WOMEN-OWNED SMALL BUSINESSES.

(a) FINDINGS.—The Senate finds that—

(1) women-owned small businesses are a powerful force

in the economy;

(2) between 1987 and 1996—

(A) the number of women-owned small businesses in

the United States increased by 78 percent, almost twice

the rate of increase of all businesses in the United States;
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(B) the number of women-owned small businesses

increased in every State;

(C) total sales by women-owned small businesses in

the United States increased by 236 percent;

(D) employment provided by women-owned small

businesses in the United States increased by 183 percent;

and

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

businesses in the United States for the fastest growing

industries were—

(i) 171 percent in construction;

(ii) 157 percent in wholesale trade;

(iii) 140 percent in transportation and communications;

(iv) 130 percent in agriculture; and

(v) 112 percent in manufacturing;

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

in the United States provide jobs for 15,500,000 individuals

and generate almost $1,400,000,000,000 in sales each year;

(4) the participation of women-owned small businesses in

the United States in the procurement market of the Federal

Government is limited;

(5) the Federal Government is the largest purchaser of

goods and services in the United States, spending more than

$200,000,000,000 each year;

(6) the majority of Federal Government purchases are for

items that cost $25,000 or less; and

(7) the rate of Federal procurement for women-owned small

businesses is 2.2 percent.

(b) SENSE OF THE SENATE.—It is the sense of the Senate that,

not later than 1 year after the date of enactment of this Act,

the Comptroller General of the United States should—

(1) conduct an audit of the Federal procurement system

regarding Federal contracting involving women-owned small

businesses for the 3 preceding fiscal years;

(2) solicit from Federal employees involved in the Federal

procurement system any suggestions regarding how to increase

the number of Federal contracts awarded to women-owned

small businesses; and

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

audit, which report shall include—

(A) an analysis of any identified trends in Federal

contracting with respect to women-owned small businesses;

(B) any recommended means to increase the number

of Federal contracts awarded to women-owned small

businesses that the Comptroller General considers to be

appropriate, after taking into consideration any suggestions

received pursuant to a solicitation described in paragraph

(2), including any such means that incorporate the concepts

of teaming or partnering; and

(C) a discussion of any barriers to the receipt of Federal

contracts by women-owned small businesses and other

small businesses that are created by legal or regulatory

procurement requirements or practices.
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SEC. 6. EFFECTIVE DATE.

This Act and the amendments made by this Act shall take

effect on October 1, 1999.

Speaker of the House of Representatives.

Vice President of the United States and

President of the Senate.