105TH CONGRESS

1ST SESSION S. 1139

AN ACT

To reauthorize the programs of the Small Business

Administration, 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 1997’’.
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1 (b) TABLE OF CONTENTS.—The table of contents for

2 this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Effective date.

TITLE I—AUTHORIZATIONS

Sec. 101. Authorizations.

TITLE II—FINANCIAL ASSISTANCE

Subtitle A—Microloan Program

Sec. 201. Microloan program.

Sec. 202. Welfare-to-work microloan pilot program.

Subtitle B—Small Business Investment Company Program

Sec. 211. 5-year commitments for SBICs at option of Administrator.

Sec. 212. Fees.

Sec. 213. Small business investment company program reform.

Sec. 214. Examination fees.

Subtitle C—Certified Development Company Program

Sec. 221. Loans for plant acquisition, construction, conversion, and expansion.

Sec. 222. Development company debentures.

Sec. 223. Premier certified lenders program.

TITLE III—WOMEN’S BUSINESS ENTERPRISES

Sec. 301. Interagency committee participation.

Sec. 302. Reports.

Sec. 303. Council duties.

Sec. 304. Council membership.

Sec. 305. Authorization of appropriations.

Sec. 306. Women’s business centers.

Sec. 307. Office of women’s business ownership.

Sec. 308. National Women’s Business Council procurement project.

TITLE IV—COMPETITIVENESS PROGRAM AND PROCUREMENT

OPPORTUNITIES

Subtitle A—Small Business Competitiveness Program

Sec. 401. Program term.

Sec. 402. Monitoring agency performance.

Sec. 403. Reports to Congress.

Sec. 404. Small business participation in dredging.

Subtitle B—Small Business Procurement Opportunities Program

Sec. 411. Contract bundling.

Sec. 412. Definition of contract bundling.

Sec. 413. Assessing proposed contract bundling.

Sec. 414. Reporting of bundled contract opportunities.
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Sec. 415. Evaluating subcontract participation in awarding contracts.

Sec. 416. Improved notice of subcontracting opportunities.

Sec. 417. Deadlines for issuance of regulations.

TITLE V—MISCELLANEOUS PROVISIONS

Sec. 501. Small business technology transfer program.

Sec. 502. Small business development centers.

Sec. 503. Pilot preferred surety bond guarantee program extension.

Sec. 504. Extension of cosponsorship authority.

Sec. 505. Asset sales.

Sec. 506. Small business export promotion.

Sec. 507. Defense Loan and Technical Assistance program.

TITLE VI—HUBZONE PROGRAM

Sec. 601. Short title.

Sec. 602. Historically underutilized business zones.

Sec. 603. Technical and conforming amendments to the Small Business Act.

Sec. 604. Other technical and conforming amendments.

Sec. 605. Regulations.

Sec. 606. Report.

Sec. 607. Authorization of appropriations.

1 SEC. 2. EFFECTIVE DATE.

2 This Act and the amendments made by this Act shall

3 take effect on October 1, 1997.

4 TITLE I—AUTHORIZATIONS

5 SEC. 101. AUTHORIZATIONS.

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

7 note) is amended by striking subsections (c) through (q)

8 and inserting the following:

9 ‘‘(c) FISCAL YEAR 1998.—

10 ‘‘(1) PROGRAM LEVELS.—The following pro11 gram levels are authorized for fiscal year 1998:

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

13 Act, the Administration is authorized to

14 make—
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1 ‘‘(i) $28,000,000 in technical assist2 ance grants, as provided in section 7(m);

3 and

4 ‘‘(ii) $60,000,000 in loans, as pro5 vided in section 7(m).

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

7 Act, the Administration is authorized to make

8 $17,040,000,000 in deferred participation loans

9 and other financings. Of such sum, the Admin10 istration is authorized to make—

11 ‘‘(i) $13,000,000,000 in general busi12 ness loans as provided in section 7(a);

13 ‘‘(ii) $3,000,000,000 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) $1,000,000,000 in loans as pro18 vided in section 7(a)(21); and

19 ‘‘(iv) $40,000,000 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—
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1 ‘‘(i) $600,000,000 in purchases of

2 participating securities; and

3 ‘‘(ii) $500,000,000 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 $2,000,000,000, of which not more than

10 $650,000,000 may be in bonds approved pursu11 ant to section 411(a)(3) of that Act.

12 ‘‘(E) The Administration is authorized to

13 make grants or enter into cooperative agree14 ments—

15 ‘‘(i) for the Service Corps of Retired

16 Executives program authorized by section

17 8(b)(1), $4,000,000; and

18 ‘‘(ii) for activities of small business

19 development centers pursuant to section

20 21(c)(3)(G), $15,000,000, to remain avail21 able until expended.

22 ‘‘(2) ADDITIONAL AUTHORIZATIONS.—

23 ‘‘(A) There are authorized to be appro24 priated to the Administration for fiscal year

25 1998 such sums as may be necessary to carry
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1 out this Act, including administrative expenses

2 and necessary loan capital for disaster loans

3 pursuant to section 7(b), and to carry out the

4 Small Business Investment Act of 1958, includ5 ing salaries and expenses of the Administration.

6 ‘‘(B) Notwithstanding subparagraph (A),

7 for fiscal year 1998—

8 ‘‘(i) no funds are authorized to be

9 provided to carry out the loan program au10 thorized by section 7(a)(21) except by

11 transfer from another Federal department

12 or agency to the Administration, unless the

13 program level authorized for general busi14 ness loans under subsection (l)(2)(A) is

15 fully funded; and

16 ‘‘(ii) the Administration may not ap17 prove loans on behalf of the Administra18 tion or on behalf of any other department

19 or agency, by contract or otherwise, under

20 terms and conditions other than those spe21 cifically authorized under this Act or the

22 Small Business Investment Act of 1958,

23 except that it may approve loans under

24 section 7(a)(21) of this Act in gross

25 amounts of not more than $1,250,000.
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1 ‘‘(d) FISCAL YEAR 1999.—

2 ‘‘(1) PROGRAM LEVELS.—The following pro3 gram levels are authorized for fiscal year 1999:

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

5 Act, the Administration is authorized to

6 make—

7 ‘‘(i) $28,000,000 in technical assist8 ance grants as provided in section 7(m);

9 and

10 ‘‘(ii) $60,000,000 in loans, as pro11 vided in section 7(m).

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

13 Act, the Administration is authorized to make

14 $18,540,000,000 in deferred participation loans

15 and other financings. Of such sum, the Admin16 istration is authorized to make—

17 ‘‘(i) $14,000,000,000 in general busi18 ness loans as provided in section 7(a);

19 ‘‘(ii) $3,500,000,000 in financings as

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

21 and section 504 of the Small Business In22 vestment Act of 1958;

23 ‘‘(iii) $1,000,000,000 in loans as pro24 vided in section 7(a)(21); and
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1 ‘‘(iv) $40,000,000 in loans as pro2 vided in section 7(m).

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

4 III of the Small Business Investment Act of

5 1958, the Administration is authorized to

6 make—

7 ‘‘(i) $700,000,000 in purchases of

8 participating securities; and

9 ‘‘(ii) $650,000,000 in guarantees of

10 debentures.

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

12 B of title IV of the Small Business Investment

13 Act of 1958, the Administration is authorized

14 to enter into guarantees not to exceed

15 $2,000,000,000, of which not more than

16 $650,000,000 may be in bonds approved pursu17 ant to section 411(a)(3) of that Act.

18 ‘‘(E) The Administration is authorized to

19 make grants or enter cooperative agreements—

20 ‘‘(i) for the Service Corps of Retired

21 Executives program authorized by section

22 8(b)(1), $4,500,000; and

23 ‘‘(ii) for activities of small business

24 development centers pursuant to section
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1 21(c)(3)(G), not to exceed $15,000,000, to

2 remain available until expended.

3 ‘‘(2) ADDITIONAL AUTHORIZATIONS.—

4 ‘‘(A) There are authorized to be appro5 priated to the Administration for fiscal year

6 1999 such sums as may be necessary to carry

7 out this Act, including administrative expenses

8 and necessary loan capital for disaster loans

9 pursuant to section 7(b), and to carry out the

10 Small Business Investment Act of 1958, includ11 ing salaries and expenses of the Administration.

12 ‘‘(B) Notwithstanding subparagraph (A),

13 for fiscal year 1999—

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

15 provided to carry out the loan program au16 thorized by section 7(a)(21) except by

17 transfer from another Federal department

18 or agency to the Administration, unless the

19 program level authorized for general busi20 ness loans under subsection (n)(2)(A) is

21 fully funded; and

22 ‘‘(ii) the Administration may not ap23 prove loans on behalf of the Administra24 tion or on behalf of any other department

25 or agency, by contract or otherwise, under
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1 terms and conditions other than those spe2 cifically authorized under this Act or the

3 Small Business Investment Act of 1958,

4 except that it may approve loans under

5 section 7(a)(21) of this Act in gross

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

7 ‘‘(e) FISCAL YEAR 2000.—

8 ‘‘(1) PROGRAM LEVELS.—The following pro9 gram levels are authorized for fiscal year 2000:

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

11 Act, the Administration is authorized to

12 make—

13 ‘‘(i) $28,000,000 in technical assist14 ance grants as provided in section 7(m);

15 and

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

17 provided in section 7(m).

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

19 Act, the Administration is authorized to make

20 $21,040,000,000 in deferred participation loans

21 and other financings. Of such sum, the Admin22 istration is authorized to make—

23 ‘‘(i) $15,500,000,000 in general busi24 ness loans as provided in section 7(a);
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1 ‘‘(ii) $4,500,000,000 in financings as

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

3 and section 504 of the Small Business In4 vestment Act of 1958;

5 ‘‘(iii) $1,000,000,000 in loans as pro6 vided in section 7(a)(21); and

7 ‘‘(iv) $40,000,000 in loans as pro8 vided in section 7(m).

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

10 III of the Small Business Investment Act of

11 1958, the Administration is authorized to

12 make—

13 ‘‘(i) $850,000,000 in purchases of

14 participating securities; and

15 ‘‘(ii) $700,000,000 in guarantees of

16 debentures.

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

18 B of title IV of the Small Business Investment

19 Act of 1958, the Administration is authorized

20 to enter into guarantees not to exceed

21 $2,000,000,000, of which not more than

22 $650,000,000 may be in bonds approved pursu23 ant to section 411(a)(3) of that Act.

24 ‘‘(E) The Administration is authorized to

25 make grants or enter cooperative agreements—
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1 ‘‘(i) for the Service Corps of Retired

2 Executives program authorized by section

3 8(b)(1), $5,000,000; and

4 ‘‘(ii) for activities of small business

5 development centers pursuant to section

6 21(c)(3)(G), not to exceed $15,000,000, to

7 remain available until expended.

8 ‘‘(2) ADDITIONAL AUTHORIZATIONS.—

9 ‘‘(A) There are authorized to be appro10 priated to the Administration for fiscal year

11 2000 such sums as may be necessary to carry

12 out this Act, including administrative expenses

13 and necessary loan capital for disaster loans

14 pursuant to section 7(b), and to carry out the

15 Small Business Investment Act of 1958, includ16 ing salaries and expenses of the Administration.

17 ‘‘(B) Notwithstanding subparagraph (A),

18 for fiscal year 2000—

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

20 provided to carry out the loan program au21 thorized by section 7(a)(21) except by

22 transfer from another Federal department

23 or agency to the Administration, unless the

24 program level authorized for general busi-
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1 ness loans under subsection (p)(2)(A) is

2 fully funded; and

3 ‘‘(ii) the Administration may not ap4 prove loans on behalf of the Administra5 tion or on behalf of any other department

6 or agency, by contract or otherwise, under

7 terms and conditions other than those spe8 cifically authorized under this Act or the

9 Small Business Investment Act of 1958,

10 except that it may approve loans under

11 section 7(a)(21) of this Act in gross

12 amounts of not more than $1,250,000.’’.

13 TITLE II—FINANCIAL

14 ASSISTANCE

15 Subtitle A—Microloan Program

16 SEC. 201. MICROLOAN PROGRAM.

17 (a) LOAN LIMITS.—Section 7(m)(3)(C) of the Small

18 Business Act (15 U.S.C. 636(m)(3)(C)) is amended by

19 striking ‘‘$2,500,000’’ and inserting ‘‘$3,500,000’’.

20 (b) LOAN LOSS RESERVE FUND.—Section

21 7(m)(3)(D) of the Small Business Act (15 U.S.C.

22 636(m)(3)(D)) is amended by striking clauses (i) and (ii),

23 and inserting the following:

24 ‘‘(i) during the initial 5 years of the

25 intermediary’s participation in the program
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1 under this subsection, at a level equal to

2 not more than 15 percent of the outstand3 ing balance of the notes receivable owed to

4 the intermediary; and

5 ‘‘(ii) in each year of participation

6 thereafter, at a level equal to not more

7 than the greater of—

8 ‘‘(I) 2 times an amount reflecting

9 the total losses of the intermediary as

10 a result of participation in the pro11 gram under this subsection, as deter12 mined by the Administrator on a case13 by-case basis; or

14 ‘‘(II) 10 percent of the outstand15 ing balance of the notes receivable

16 owed to the intermediary.’’.

17 (c) AUTHORIZATION OF APPROPRIATIONS.—Section

18 7(m) of the Small Business Act (15 U.S.C. 636(m)) is

19 amended—

20 (1) in the subsection heading, by striking

21 ‘‘DEMONSTRATION’’;

22 (2) by striking ‘‘Demonstration’’ each place

23 that term appears;

24 (3) by striking ‘‘demonstration’’ each place that

25 term appears; and
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1 (4) in paragraph (12), by striking ‘‘during fis2 cal years 1995 through 1997’’ and inserting ‘‘during

3 fiscal years 1998 through 2000’’.

4 (d) TECHNICAL ASSISTANCE GRANTS.—Section

5 7(m)(4)(E) of the Small Business Act (15 U.S.C.

6 636(m)(4)(E)) is amended—

7 (1) by inserting ‘‘(i)’’ before ‘‘Each

8 intermediary’’;

9 (2) by striking ‘‘15’’ and inserting ‘‘25’’;

10 (3) by adding at the end of the paragraph ‘‘(ii)

11 The intermediary may expend up to 25 percent of

12 the funds received under paragraph (1)(B)(ii) to

13 enter into third party contracts for the provision of

14 technical assistance’’.

15 SEC. 202. WELFARE-TO-WORK MICROLOAN PILOT PRO16 GRAM.

17 (a) PROGRAM ESTABLISHMENT.—Section 7(m) of

18 the Small Business Act (15 U.S.C. 636(m)) is amended—

19 (1) in paragraph (1)(A)—

20 (A) in clause (ii), by striking ‘‘and’’ at the

21 end;

22 (B) in clause (iii), by striking the period at

23 the end and inserting ‘‘; and’’; and

24 (C) by adding at the end the following:
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1 ‘‘(iv) to establish a welfare-to-work

2 microloan pilot program, which shall be ad3 ministered by the Administration, in order

4 to—

5 ‘‘(I) test the feasibility of

6 supplementing the technical assistance

7 grants provided under clauses (ii) and

8 (iii) of subparagraph (B) to individ9 uals who are receiving assistance

10 under the State program funded

11 under part A of title IV of the Social

12 Security Act (42 U.S.C. 601 et seq.),

13 or under any comparable State-funded

14 means-tested program of assistance

15 for low-income individuals, in order to

16 adequately assist those individuals

17 in—

18 ‘‘(aa) establishing small

19 businesses; and

20 ‘‘(bb) eliminating their de21 pendence on that assistance;

22 ‘‘(II) permit the grants described

23 in subclause (I) to be used to provide

24 intensive management, marketing and

25 technical assistance as well as to pay
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1 or reimburse a portion of child care

2 and transportation costs of individuals

3 described in subclause (I) who become

4 microborrowers;

5 ‘‘(III) eliminate barriers to

6 microborrowers in establishing child

7 care businesses; and

8 ‘‘(IV) evaluate the effectiveness

9 of assistance provided under this

10 clause in helping individuals described

11 in subclause (I) to eliminate their de12 pendence on assistance described in

13 that subclause and become employed

14 in their own business;’’;

15 (2) in paragraph (4), by adding at the end the

16 following:

17 ‘‘(F) SUPPLEMENTAL GRANTS.—

18 ‘‘(i) IN GENERAL.—In addition to

19 grants under subparagraphs (A) and (C)

20 and paragraph (5), the Administration

21 may select from participating

22 intermediaries and recipients of grants

23 under paragraph (5), not more than 20 en24 tities in fiscal year 1998, 25 entities in fis25 cal year 1999, and 30 entities in fiscal
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1 year 2000, each of whom may receive an2 nually a supplemental grant in an amount

3 not to exceed $200,000 for the purpose of

4 providing additional technical assistance

5 and related services to borrowers who are

6 receiving assistance described in paragraph

7 (1)(A)(iv)(I) at the time they initially

8 apply for assistance under the program.

9 ‘‘(ii) INAPPLICABILITY OF CONTRIBU10 TION REQUIREMENTS.—The contribution

11 requirements of subparagraphs (B) and

12 (C)(i)(II) do not apply to any grant made

13 under this subparagraph.

14 ‘‘(iii) CHILD CARE AND TRANSPOR15 TATION COSTS.—Any grant made under

16 this subparagraph may be used to pay or

17 reimburse a portion of the costs of child

18 care and transportation incurred by a bor19 rower under the welfare-to-work microloan

20 pilot program under paragraph

21 (1)(A)(iv).’’;

22 (3) in paragraph (6), by adding at the end the

23 following:

24 ‘‘(E) ESTABLISHMENT OF CHILD CARE ES25 TABLISHMENTS.—In addition to other eligible
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1 small business concerns, borrowers under any

2 program under this subsection may include in3 dividuals who will use the loan proceeds to es4 tablish for-profit or nonprofit child care estab5 lishments.’’;

6 (4) in paragraph (9)—

7 (A) by striking the paragraph designation

8 and paragraph heading and inserting the fol9 lowing:

10 ‘‘(9) GRANTS FOR MANAGEMENT, MARKETING,

11 TECHNICAL ASSISTANCE, AND RELATED SERV12 ICES.—’’; and

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

14 ‘‘(C) WELFARE-TO-WORK MICROLOAN

15 PILOT PROGRAM.—Of amounts made available

16 to carry out the welfare-to-work microloan pilot

17 program under paragraph (1)(A)(iv) in any fis18 cal year, the Administration may use not more

19 than 5 percent to provide technical assistance,

20 either directly or through contractors, to wel21 fare-to-work microloan pilot program grantees,

22 to ensure that, as grantees, they have the

23 knowledge, skills, and understanding of micro24 lending and welfare-to-work transition, and
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1 other related issues, to operate a successful wel2 fare-to-work microloan pilot program.’’; and

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

4 ‘‘(13) EVALUATION OF WELFARE-TO-WORK

5 MICROLOAN PILOT PROGRAM.—On January 31,

6 1999, and annually thereafter, the Administration

7 shall submit to the Committees on Small Business

8 of the House of Representatives and the Senate a

9 report on the welfare-to-work microloan pilot pro10 gram authorized under paragraph (1)(A)(iv), which

11 report shall include, with respect to the preceding

12 fiscal year, an analysis of the progress and effective13 ness of the program during that fiscal year, and

14 data relating to—

15 ‘‘(A) the number and location of each

16 grantee under the program;

17 ‘‘(B) the amount of each grant;

18 ‘‘(C) the number of individuals who re19 ceived assistance under each grant, including

20 separate data relating to—

21 ‘‘(i) the number of individuals who re22 ceived training;

23 ‘‘(ii) the number of individuals who

24 received transportation assistance; and
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1 ‘‘(iii) the number of individuals who

2 received child care assistance (including

3 the number of children assisted);

4 ‘‘(D) the type and amount of loan and

5 grant assistance received by borrowers under

6 the program;

7 ‘‘(E) the number of businesses that were

8 started with assistance provided under the pro9 gram that are operational and the number of

10 jobs created by each business;

11 ‘‘(F) the number of individuals receiving

12 training under the program who, after receiving

13 assistance under the program—

14 ‘‘(i) are employed in their own busi15 nesses; and

16 ‘‘(ii) are not receiving public assist17 ance for themselves or their children;

18 ‘‘(G) whether and to what extent each

19 grant was used to defray the transportation and

20 child care costs of borrowers; and

21 ‘‘(H) any recommendations for legislative

22 changes to improve program operations.’’.

23 (c) AUTHORIZATION OF APPROPRIATIONS.—There

24 are authorized to be appropriated to carry out the welfare25 to-work microloan pilot program under section
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1 7(m)(1)(A)(iv) of the Small Business Act (as added by

2 this section)—

3 (1) $3,000,000 for fiscal year 1998;

4 (2) $4,000,000 for fiscal year 1999; and

5 (3) $5,000,000 for fiscal year 2000.

6 Subtitle B—Small Business

7 Investment Company Program

8 SEC. 211. 5-YEAR COMMITMENTS FOR SBICs AT OPTION OF

9 ADMINISTRATOR.

10 Section 20(a)(2) of the Small Business Act (15

11 U.S.C. 631 note) is amended in the last sentence by strik12 ing ‘‘the following fiscal year’’ and inserting ‘‘any 1 or

13 more of the 4 subsequent fiscal years’’.

14 SEC. 212. FEES.

15 Section 301 of the Small Business Investment Act

16 of 1958 (15 U.S.C. 681) is amended by adding the follow17 ing:

18 ‘‘(e) FEES.—

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

20 prescribe fees to be paid by each applicant for a li21 cense to operate as a small business investment com22 pany under this Act.

23 ‘‘(2) USE OF AMOUNTS.—Amounts collected

24 pursuant to this subsection shall be—
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1 ‘‘(A) deposited in the account for salaries

2 and expenses of the Administration; and

3 ‘‘(B) available without further appropria4 tion solely to cover contracting and other ad5 ministrative costs related to licensing.’’.

6 SEC. 213. SMALL BUSINESS INVESTMENT COMPANY PRO7 GRAM REFORM.

8 (a) BANK INVESTMENTS.—Section 302(b) of the

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

10 682(b)) is amended by striking ‘‘1956,’’ and all that fol11 lows before the period and inserting the following: ‘‘1956,

12 any national bank, or any member bank of the Federal

13 Reserve System or nonmember insured bank to the extent

14 permitted under applicable State law, may invest in any

15 1 or more small business investment companies, or in any

16 entity established to invest solely in small business invest17 ment companies, except that in no event shall the total

18 amount of such investments of any such bank exceed 5

19 percent of the capital and surplus of the bank’’.

20 (b) INDEXING FOR LEVERAGE.—Section 303 of the

21 Small Business Investment Act of 1958 (15 U.S.C. 683)

22 is amended—

23 (1) in subsection (b)—

24 (A) in paragraph (2), by adding at the end

25 the following:
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1 ‘‘(D)(i) The dollar amounts in subpara2 graphs (A), (B), and (C) shall be adjusted an3 nually to reflect increases in the Consumer

4 Price Index established by the Bureau of Labor

5 Statistics of the Department of Labor.

6 ‘‘(ii) The initial adjustments made under

7 this subparagraph after the date of enactment

8 of the Small Business Reauthorization Act of

9 1997 shall reflect only increases from March

10 31, 1993.’’; and

11 (B) by striking paragraph (4) and insert12 ing the following:

13 ‘‘(4) MAXIMUM AGGREGATE AMOUNT OF LE14 VERAGE.—

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

16 subparagraph (B), the aggregate amount of

17 outstanding leverage issued to any company or

18 companies that are commonly controlled (as de19 termined by the Administrator) may not exceed

20 $90,000,000, as adjusted annually for increases

21 in the Consumer Price Index.

22 ‘‘(B) EXCEPTIONS.—The Administrator

23 may, on a case-by-case basis—

24 ‘‘(i) approve an amount of leverage

25 that exceeds the amount described in sub-
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1 paragraph (A) for companies under com2 mon control; and

3 ‘‘(ii) impose such additional terms and

4 conditions as the Administrator determines

5 to be appropriate to minimize the risk of

6 loss to the Administration in the event of

7 default.

8 ‘‘(C) APPLICABILITY OF OTHER PROVI9 SIONS.—Any leverage that is issued to a com10 pany or companies commonly controlled in an

11 amount that exceeds $90,000,000, whether as a

12 result of an increase in the Consumer Price

13 Index or a decision of the Administrator, is sub14 ject to subsection (d).’’; and

15 (2) by striking subsection (d) and inserting the

16 following:

17 ‘‘(d) REQUIRED CERTIFICATIONS.—

18 ‘‘(1) IN GENERAL.—The Administrator shall re19 quire each licensee, as a condition of approval of an

20 application for leverage, to certify in writing—

21 ‘‘(A) for licensees with leverage less than

22 or equal to $90,000,000, that not less than 20

23 percent of the licensee’s aggregate dollar

24 amount of financings will be provided to smaller

25 enterprises; and
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1 ‘‘(B) for licensees with leverage in excess

2 of $90,000,000, that, in addition to satisfying

3 the requirements of subparagraph (A), 100 per4 cent of the licensee’s aggregate dollar amount

5 of financings made in whole or in part with le6 verage in excess of $90,000,000 will be provided

7 to smaller enterprises as defined in section

8 103(12).

9 ‘‘(2) MULTIPLE LICENSEES.—Multiple licensees

10 under common control (as determined by the Admin11 istrator) shall be considered to be a single licensee

12 for purposes of determining both the applicability of

13 and compliance with the investment percentage re14 quirements of this subsection.’’.

15 (c) TAX DISTRIBUTIONS.—Section 303(g)(8) of the

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

17 683(g)(8)) is amended by adding at the end the following:

18 ‘‘A company may also elect to make a distribution under

19 this paragraph at the end of any calendar quarter based

20 on a quarterly estimate of the maximum tax liability. If

21 a company makes 1 or more quarterly distributions for

22 a calendar year, and the aggregate amount of those dis23 tributions exceeds the maximum amount that the company

24 could have distributed based on a single annual computa25 tion, any subsequent distribution by the company under
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1 this paragraph shall be reduced by an amount equal to

2 the excess amount distributed.’’.

3 (d) LEVERAGE FEE.—Section 303(i) of the Small

4 Business Investment Act of 1958 (15 U.S.C. 683(i)) is

5 amended by striking ‘‘, payable upon’’ and all that follows

6 before the period and inserting the following: ‘‘in the fol7 lowing manner: 1 percent upon the date on which the Ad8 ministration enters into any commitment for such leverage

9 with the licensee, and the balance of 2 percent (or 3 per10 cent if no commitment has been entered into by the Ad11 ministration) on the date on which the leverage is drawn

12 by the licensee’’.

13 (e) PERIODIC ISSUANCE OF GUARANTEES AND

14 TRUST CERTIFICATES.—Section 320 of the Small Busi15 ness Investment Act of 1958 (15 U.S.C. 687m) is amend16 ed by striking ‘‘three months’’ and inserting ‘‘6 months’’.

17 SEC. 214. EXAMINATION FEES.

18 Section 310(b) of the Small Business Investment Act

19 of 1958 (15 U.S.C. 687b(b)) is amended by inserting after

20 the first sentence the following: ‘‘Fees collected under this

21 subsection shall be deposited in the account for salaries

22 and expenses of the Administration, and shall be available

23 without further appropriation solely to cover the costs of

24 examinations and other program oversight activities.’’.
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1 Subtitle C—Certified Development

2 Company Program

3 SEC. 221. LOANS FOR PLANT ACQUISITION, CONSTRUC4 TION, CONVERSION, AND EXPANSION.

5 Section 502 of the Small Business Investment Act

6 of 1958 (15 U.S.C. 696) is amended—

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

8 following:

9 ‘‘(1) The proceeds of any such loan shall be

10 used solely by the borrower to assist 1 or more iden11 tifiable small business concerns and for a sound

12 business purpose approved by the Administration.’’;

13 (2) in paragraph (3), by adding at the end the

14 following:

15 ‘‘(D) SELLER FINANCING.—Seller-provided

16 financing may be used to meet the requirements

17 of subparagraph (B), if the seller subordinates

18 the interest of the seller in the property to the

19 debenture guaranteed by the Administration.

20 ‘‘(E) COLLATERAL REQUIREMENTS.—Ade21 quacy of collateral provided by the small busi22 ness shall be one factor evaluated in the credit

23 determination. Collateral provided by the small

24 business concern generally will include a subor25 dinate lien position on the property being fi-
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1 nanced, and additional collateral may be re2 quired in a case-by-case basis, as determined by

3 the Administration.’’; and

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

5 ‘‘(5) Except as provided in paragraph (4), not

6 to exceed 25 percent of the project may be leased by

7 the assisted small business, if—

8 ‘‘(A) the assisted small business is required

9 to occupy permanently and use not less than 75

10 percent of the space in the project after the

11 execution of any leases authorized in this para12 graph; and

13 ‘‘(B) each tenant is engaged a business

14 that enhances the operations of the assisted

15 small business.’’.

16 SEC. 222. DEVELOPMENT COMPANY DEBENTURES.

17 Section 503 of the Small Business Investment Act

18 of 1958 (15 U.S.C. 697) is amended—

19 (1) in subsection (b)(7), by striking subpara20 graph (A) and inserting the following:

21 ‘‘(A) assesses and collects a fee, which

22 shall be payable by the borrower, in an amount

23 established annually by the Administration,

24 which amount shall not exceed the lesser of—
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1 ‘‘(i) 0.9375 percent per year of the

2 outstanding balance of the loan; and

3 ‘‘(ii) the minimum amount necessary

4 to reduce the cost (as that term is defined

5 in section 502 of the Federal Credit Re6 form Act of 1990) to the Administration of

7 purchasing and guaranteeing debentures

8 under this Act to zero; and’’; and

9 (2) in subsection (f), by striking ‘‘1997’’ and

10 inserting ‘‘2000’’.

11 SEC. 223. PREMIER CERTIFIED LENDERS PROGRAM.

12 (a) IN GENERAL.—Section 508 of the Small Business

13 Investment Act of 1958 (15 U.S.C. 697e) is amended—

14 (1) in subsection (a), by striking ‘‘not more

15 than 15’’;

16 (2) in subsection (b)(2), by striking subpara17 graphs (A) and (B) and inserting the following:

18 ‘‘(A) is an active certified development

19 company in good standing and has been an ac20 tive participant in the accredited lenders pro21 gram during the entire 12-month period preced22 ing the date on which the company submits an

23 application under paragraph (1), except that

24 the Administration may waive this requirement
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1 if the company is qualified to participate in the

2 accredited lenders program;

3 ‘‘(B) has a history of—

4 ‘‘(i) submitting to the Administration

5 adequately analyzed debenture guarantee

6 application packages; and

7 ‘‘(ii) of properly closing section 504

8 loans and servicing its loan portfolio; and’’;

9 (3) by striking subsection (c) and inserting the

10 following:

11 ‘‘(c) LOSS RESERVE.—

12 ‘‘(1) ESTABLISHMENT.—A company designated

13 as a premier certified lender shall establish a loss re14 serve for financing approved pursuant to this sec15 tion.

16 ‘‘(2) AMOUNT.—The amount of the loss reserve

17 shall be based upon the greater of—

18 ‘‘(A) the historic loss rate on debentures

19 issued by such company; or

20 ‘‘(B) 10 percent of the amount of the com21 pany’s exposure as determined under subsection

22 (b)(2)(C).

23 ‘‘(3) ASSETS.—The loss reserve shall be com24 prised of any combination of the following types of

25 assets:
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1 ‘‘(A) segregated funds on deposit in an ac2 count or accounts with a federally insured de3 pository institution or institutions selected by

4 the company, subject to a collateral assignment

5 in favor of, and in a format acceptable to, the

6 Administration; or

7 ‘‘(B) irrevocable letter or letters of credit,

8 with a collateral assignment in favor of, and a

9 commercially reasonable format acceptable to,

10 the Administration.

11 ‘‘(4) CONTRIBUTIONS.—The company shall

12 make contributions to the loss reserve, either cash or

13 letters of credit as provided above, in the following

14 amounts and at the following intervals:

15 ‘‘(A) 50 percent when a debenture is

16 closed;

17 ‘‘(B) 25 percent additional not later than

18 1 year after a debenture is closed; and

19 ‘‘(C) 25 percent additional not later than

20 2 years after a debenture is closed.

21 ‘‘(5) REPLENISHMENT.—If a loss has been sus22 tained by the Administration, any portion of the loss

23 reserve, and other funds provided by the premier

24 company as necessary, may be used to reimburse the

25 Administration for the company’s 10 percent share
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1 of the loss as provided in subsection (b)(2)(C). If the

2 company utilizes the reserve, within 30 days it shall

3 replace an equivalent amount of funds.

4 ‘‘(6) DISBURSEMENTS.—The Administration

5 shall allow the certified development company to

6 withdraw from the loss reserve amounts attributable

7 to any debenture which has been repaid.’’;

8 (4) in subsection (f), by striking ‘‘State or

9 local’’ and inserting ‘‘certified’’;

10 (5) in subsection (g), by striking the subsection

11 heading and inserting the following:

12 ‘‘(g) EFFECT OF SUSPENSION OR REVOCATION.—’’;

13 (6) by striking subsection (h) and inserting the

14 following:

15 ‘‘(h) PROGRAM GOALS.—Each certified development

16 company participating in the program under this section

17 shall establish a goal of processing a minimum of not less

18 than 50 percent of the loan applications for assistance

19 under section 504 pursuant to the program authorized

20 under this section.’’; and

21 (7) in subsection (i), by striking ‘‘other lenders’’

22 and inserting ‘‘other lenders, specifically comparing

23 default rates and recovery rates on liquidations’’.

24 (b) REGULATIONS.—The Administrator of the Small

25 Business Administration shall—
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1 (1) not later than 120 days after the date of

2 enactment of this Act, promulgate regulations to

3 carry out the amendments made by subsection (a);

4 and

5 (2) not later than 150 days after the date of

6 enactment of this Act, issue program guidelines and

7 fully implement the amendments made by subsection

8 (a).

9 (c) PROGRAM EXTENSION.—Section 217(b) of the

10 Small Business Reauthorization and Amendments Act of

11 1994 (15 U.S.C. 697e note) is amended by striking ‘‘Octo12 ber 1, 1997’’ and inserting ‘‘October 1, 2000’’.

13 TITLE III—WOMEN’S BUSINESS

14 ENTERPRISES

15 SEC. 301. INTERAGENCY COMMITTEE PARTICIPATION.

16 Section 403 of the Women’s Business Ownership Act

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

18 (1) in subsection (a)(1), by adding at the end

19 the following:

20 ‘‘(K) The Department of Education.

21 ‘‘(L) The Environmental Protection Agen22 cy.

23 ‘‘(M) The Department of Energy.

24 ‘‘(N) The Administrator of the Office of

25 Procurement Policy.
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1 ‘‘(O) The National Aeronautics and Space

2 Administration.’’;

3 (2) in subsection (a)(2)(A)—

4 (A) by striking ‘‘and Amendments Act of

5 1994’’ and inserting ‘‘Act of 1997’’; and

6 (B) by inserting before the final period ‘‘,

7 and who shall report directly to the head of the

8 agency on the status of the activities of the

9 Interagency Committee’’;

10 (3) in subsection (a)(2)(B), by inserting before

11 the final period the following: ‘‘and shall report di12 rectly to the Administrator on the status of the ac13 tivities on the Interagency Committee and shall

14 serve as the Interagency Committee Liaison to the

15 National Women’s Business Council established

16 under section 405’’; and

17 (4) in subsection (b), by striking ‘‘and Amend18 ments Act of 1994’’ and inserting ‘‘Act of 1997’’.

19 SEC. 302. REPORTS.

20 Section 404 of the Women’s Business Ownership Act

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

22 (1) by inserting ‘‘, through the Small Business

23 Administration,’’ after ‘‘transmit’’;
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1 (2) by striking paragraph (1) and redesignating

2 paragraphs (2) through (4) as paragraphs (1)

3 through (3), respectively; and

4 (3) in paragraph (1), as redesignated, by insert5 ing before the semicolon the following: ‘‘, including

6 a status report on the progress of the Interagency

7 Committee in meeting its responsibilities and duties

8 under section 402(a)’’.

9 SEC. 303. COUNCIL DUTIES.

10 Section 406 of the Women’s Business Ownership Act

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

12 (1) in subsection (c), by inserting after ‘‘Ad13 ministrator’’ the following: ‘‘(through the Assistant

14 Administrator for the Office of Women’s Business

15 Ownership)’’; and

16 (2) in subsection (d)—

17 (A) in paragraph (4), by striking ‘‘and’’ at

18 the end;

19 (B) in paragraph (5), by striking the pe20 riod at the end and inserting a semicolon; and

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

22 ‘‘(6) submit to the President and to the Com23 mittee on Small Business of the Senate and the

24 Committee on Small Business of the House of Rep25 resentatives, an annual report containing—
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1 ‘‘(A) a detailed description of the activities

2 of the council, including a status report on the

3 Council’s progress toward meeting its duties

4 outlined in subsections (a) and (d) of section

5 406;

6 ‘‘(B) the findings, conclusions, and rec7 ommendations of the Council; and

8 ‘‘(C) the Council’s recommendations for

9 such legislation and administrative actions as

10 the Council considers appropriate to promote

11 the development of small business concerns

12 owned and controlled by women.

13 ‘‘(e) SUBMISSION OF REPORTS.—The annual report

14 required by subsection (d) shall be submitted not later

15 than 90 days after the end of each fiscal year.’’.

16 SEC. 304. COUNCIL MEMBERSHIP.

17 Section 407 of the Women’s Business Ownership Act

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

19 (1) in subsection (a), by striking ‘‘and Amend20 ments Act of 1994’’ and inserting ‘‘Act of 1997’’;

21 (2) in subsection (b)—

22 (A) by striking ‘‘and Amendments Act of

23 1994’’ and inserting ‘‘Act of 1997’’;

24 (B) by inserting after ‘‘the Administrator

25 shall’’ the following: ‘‘, after receiving the rec-
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1 ommendations of the Chair and the Ranking

2 Member of the Minority of the Committees on

3 Small Business of the House of Representatives

4 and the Senate, ’’;

5 (C) by striking ‘‘9’’ and inserting ‘‘14’’;

6 (D) in paragraph (1), by striking ‘‘2’’ and

7 inserting ‘‘3’’;

8 (E) in paragraph (2)—

9 (i) by striking ‘‘2’’ and inserting ‘‘3’’;

10 and

11 (ii) by striking ‘‘and’’ at the end;

12 (F) in paragraph (3)—

13 (i) by striking ‘‘5’’ and inserting ‘‘6’’;

14 (ii) by striking ‘‘national’’; and

15 (iii) by striking the period at the end

16 and inserting the following: ‘‘, including

17 representatives of Women’s Business Cen18 ter sites; and’’; and

19 (G) by adding at the end the following:

20 ‘‘(4) 2 shall be representatives of businesses or

21 educational institutions having an interest in wom22 en’s entrepreneurship.’’; and

23 (3) in subsection (c), by inserting ‘‘(including

24 both urban and rural areas)’’ after ‘‘geographic’’.
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1 SEC. 305. AUTHORIZATION OF APPROPRIATIONS.

2 Section 409 of the Women’s Business Ownership Act

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

4 (1) by striking ‘‘1995 through 1997’’ and in5 serting ‘‘1998 through 2000’’; and

6 (2) by striking ‘‘$350,000’’ and inserting

7 ‘‘$400,000’’.

8 SEC. 306. WOMEN’S BUSINESS CENTERS.

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

10 Act (15 U.S.C. 656) is amended to read as follows:

11 ‘‘SEC. 29. WOMEN’S BUSINESS CENTERS.

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

13 ‘‘(1) the term ‘small business concern owned

14 and controlled by women’, either startup or existing,

15 includes any small business concern—

16 ‘‘(A) that is not less than 51 percent

17 owned by 1 or more women; and

18 ‘‘(B) the management and daily business

19 operations of which are controlled by 1 or more

20 women; and

21 ‘‘(2) the term ‘women’s business center site’

22 means the location of—

23 ‘‘(A) a women’s business center; or

24 ‘‘(B) 1 or more women’s business centers,

25 established in conjunction with another wom-
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1 en’s business center in another location within

2 a State or region—

3 ‘‘(i) that reach a distinct population

4 that would otherwise not be served;

5 ‘‘(ii) whose services are targeted to

6 women; and

7 ‘‘(iii) whose scope, function, and ac8 tivities are similar to those of the primary

9 women’s business center or centers in con10 junction with which it was established.

11 ‘‘(b) AUTHORITY.—The Administration may provide

12 financial assistance to private organizations to conduct 5-

13 year projects for the benefit of small business concerns

14 owned and controlled by women. The projects shall pro15 vide—

16 ‘‘(1) financial assistance, including training and

17 counseling in how to apply for and secure business

18 credit and investment capital, preparing and pre19 senting financial statements, and managing cash

20 flow and other financial operations of a business

21 concern;

22 ‘‘(2) management assistance, including training

23 and counseling in how to plan, organize, staff, di24 rect, and control each major activity and function of

25 a small business concern; and
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1 ‘‘(3) marketing assistance, including training

2 and counseling in identifying and segmenting domes3 tic and international market opportunities, preparing

4 and executing marketing plans, developing pricing

5 strategies, locating contract opportunities, negotiat6 ing contracts, and utilizing varying public relations

7 and advertising techniques.

8 ‘‘(c) CONDITIONS OF PARTICIPATION.—

9 ‘‘(1) NON-FEDERAL CONTRIBUTIONS.—As a

10 condition of receiving financial assistance authorized

11 by this section, the recipient organization shall agree

12 to obtain, after its application has been approved

13 and notice of award has been issued, cash contribu14 tions from non-Federal sources as follows:

15 ‘‘(A) in the first, second, and third years,

16 1 non-Federal dollar for each 2 Federal dollars;

17 ‘‘(B) in the fourth year, 1 non-Federal dol18 lar for each Federal dollar; and

19 ‘‘(C) in the fifth year, 2 non-Federal dol20 lars for each Federal dollar.

21 ‘‘(2) FORM OF NON-FEDERAL CONTRIBU22 TIONS.—Not more than one-half of the non-Federal

23 sector matching assistance may be in the form of in24 kind contributions which are budget line items only,
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1 including but not limited to office equipment and of2 fice space.

3 ‘‘(3) FORM OF FEDERAL CONTRIBUTIONS.—The

4 financial assistance authorized pursuant to this sec5 tion may be made by grant, contract, or cooperative

6 agreement and may contain such provision, as nec7 essary, to provide for payments in lump sum or in8 stallments, and in advance or by way of reimburse9 ment. The Administration may disburse up to 25

10 percent of each year’s Federal share awarded to a

11 recipient organization after notice of the award has

12 been issued and before the non-Federal sector

13 matching funds are obtained.

14 ‘‘(4) FAILURE TO OBTAIN PRIVATE FUNDING.—

15 If any recipient of assistance fails to obtain the re16 quired non-Federal contribution during any project,

17 it shall not be eligible thereafter for advance dis18 bursements pursuant to paragraph (3) during the

19 remainder of that project, or for any other project

20 for which it is or may be funded by the Administra21 tion, and prior to approving assistance to such orga22 nization for any other projects, the Administration

23 shall specifically determine whether the Administra24 tion believes that the recipient will be able to obtain

25 the requisite non-Federal funding and enter a writ-
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1 ten finding setting forth the reasons for making

2 such determination.

3 ‘‘(d) CONTRACT AUTHORITY.—A women’s business

4 center may enter into a contract with a Federal depart5 ment or agency to provide specific assistance to women

6 and other underserved small business concerns. Perform7 ance of such contract should not hinder the women’s busi8 ness centers in carrying out the terms of the grant re9 ceived by the women’s business centers from the Adminis10 tration.

11 ‘‘(e) SUBMISSION OF 5-YEAR PLAN.—Each applicant

12 organization initially shall submit a 5-year plan to the Ad13 ministration on proposed fundraising and training activi14 ties, and a recipient organization may receive financial as15 sistance under this program for a maximum of 5 years

16 per women’s business center site.

17 ‘‘(f) CRITERIA.—The Administration shall evaluate

18 and rank applicants in accordance with predetermined se19 lection criteria that shall be stated in terms of relative im20 portance. Such criteria and their relative importance shall

21 be made publicly available and stated in each solicitation

22 for applications made by the Administration. The criteria

23 shall include—

24 ‘‘(1) the experience of the applicant in conduct25 ing programs or ongoing efforts designed to impart
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1 or upgrade the business skills of women business

2 owners or potential owners;

3 ‘‘(2) the present ability of the applicant to com4 mence a project within a minimum amount of time;

5 ‘‘(3) the ability of the applicant to provide

6 training and services to a representative number of

7 women who are both socially and economically dis8 advantaged; and

9 ‘‘(4) the location for the women’s business cen10 ter site proposed by the applicant.

11 ‘‘(g) OFFICE OF WOMEN’S BUSINESS OWNERSHIP.—

12 There is established within the Administration an Office

13 of Women’s Business Ownership, which shall be respon14 sible for the administration of the Administration’s pro15 grams for the development of women’s business enter16 prises (as that term is defined in section 408 of the Wom17 en’s Business Ownership Act of 1988). The Office of

18 Women’s Business Ownership shall be administered by an

19 Assistant Administrator, who shall be appointed by the

20 Administrator.

21 ‘‘(h) REPORT.—The Administrator shall prepare and

22 submit an annual report to the Committees on Small Busi23 ness of the House of Representatives and the Senate on

24 the effectiveness of all projects conducted under the au-
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1 thority of this section. Such report shall provide informa2 tion concerning—

3 ‘‘(1) the number of individuals receiving assist4 ance;

5 ‘‘(2) the number of startup business concerns

6 formed;

7 ‘‘(3) the gross receipts of assisted concerns;

8 ‘‘(4) increases or decreases in profits of assisted

9 concerns; and

10 ‘‘(5) the employment increases or decreases of

11 assisted concerns.

12 ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There

13 are authorized to be appropriated $8,000,000 per year to

14 carry out the projects authorized by this section. Amounts

15 appropriated pursuant to this subsection are to be used

16 exclusively for grant awards and not for costs incurred by

17 the Administration for the management and administra18 tion of the program. Notwithstanding any other provision

19 of law, the Administration may use such expedited acquisi20 tion methods as it deems appropriate, through the Assist21 ant Administrator of the Office of Women’s Business

22 Ownership, to achieve the purposes of this section, except

23 that the Administration shall ensure that all eligible

24 sources are provided a reasonable opportunity to submit

25 proposals.’’.
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1 (b) APPLICABILITY.—Any organization conducting a

2 3-year project under section 29 of the Small Business Act

3 (15 U.S.C. 656) on the day before the date of enactment

4 of this Act, may extend the term of that project to a total

5 term of 5 years and receive financial assistance in accord6 ance with section 29(c) of the Small Business Act (as

7 amended by this title) subject to procedures established

8 by the Administrator in coordination with the Office of

9 Women’s Business Ownership established under section

10 29 of the Small Business Act (15 U.S.C. 656) (as amend11 ed by this title).

12 SEC. 307. OFFICE OF WOMEN’S BUSINESS OWNERSHIP.

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

14 is amended by adding at the end the following:

15 ‘‘(i) ASSISTANT ADMINISTRATOR FOR THE OFFICE

16 OF WOMEN’S BUSINESS OWNERSHIP.—

17 ‘‘(1) QUALIFICATION.—The Assistant Adminis18 trator for the Office of Women’s Business Owner19 ship (hereafter in this section referred to as the ‘As20 sistant Administrator’) shall serve without regard to

21 the provisions of title 5, United States Code, govern22 ing appointments in the competitive service, and

23 without regard to chapter 51 and subchapter III of

24 chapter 53 of title 5, United States Code, relating

25 to classification and General Schedule pay rates, but
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1 at a rate of pay not to exceed the maximum of pay

2 payable for a position at GS–17 of the General

3 Schedule.

4 ‘‘(2) RESPONSIBILITIES AND DUTIES.—

5 ‘‘(A) RESPONSIBILITIES.—The responsibil6 ities of the Assistant Administrator shall be to

7 administer the programs and services of the Of8 fice of Women’s Business Ownership estab9 lished to assist women entrepreneurs in the

10 areas of—

11 ‘‘(i) starting and operating a small

12 business;

13 ‘‘(ii) development of management and

14 technical skills;

15 ‘‘(iii) seeking Federal procurement op16 portunities; and

17 ‘‘(iv) increasing the opportunity for

18 access to capital.

19 ‘‘(B) DUTIES.—Duties of the position of

20 the Assistant Administrator shall include—

21 ‘‘(i) administering and managing the

22 Women’s Business Centers program;

23 ‘‘(ii) recommending the annual admin24 istrative and program budgets for the Of25 fice of Women’s Business Ownership (in-
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1 cluding the budget for the Women’s Busi2 ness Centers);

3 ‘‘(iii) establishing appropriate funding

4 levels therefore;

5 ‘‘(iv) reviewing the annual budgets

6 submitted by each applicant for the Wom7 en’s Business Center program;

8 ‘‘(v) selecting applicants to participate

9 in this program;

10 ‘‘(vi) implementing this section;

11 ‘‘(vii) maintaining a clearinghouse to

12 provide for the dissemination and exchange

13 of information between Women’s Business

14 Centers;

15 ‘‘(viii) conducting program examina16 tions of recipients of grants under this sec17 tion;

18 ‘‘(ix) serving as the vice chairperson

19 of the Interagency Committee on Women’s

20 Business Enterprise;

21 ‘‘(x) serving as liaison for the Na22 tional Women’s Business Council; and

23 ‘‘(xi) advising the Administrator on

24 appointments to the Women’s Business

25 Council.
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1 ‘‘(3) CONSULTATION REQUIREMENTS.—In car2 rying out the responsibilities and duties described in

3 this subsection, the Assistant Administrator shall

4 confer with and seek the advice of the Administra5 tion officials in areas served by the Women’s Busi6 ness Centers.

7 ‘‘(j) PROGRAM EXAMINATION.—

8 ‘‘(1) IN GENERAL.—Not later than 180 days

9 after the date of enactment of this subsection, the

10 Administration shall develop and implement an an11 nual programmatic and financial examination of

12 each Women’s Business Center established pursuant

13 to this section.

14 ‘‘(2) EXTENSION OF CONTRACTS.—In extending

15 or renewing a contract with a Women’s Business

16 Center, the Administration shall consider the results

17 of the examination conducted pursuant to paragraph

18 (1).

19 ‘‘(k) CONTRACT AUTHORITY.—The authority of the

20 Administration to enter into contracts shall be in effect

21 for each fiscal year only to the extent and in the amounts

22 as are provided in advance in appropriations Acts. After

23 the Administration has entered a contract, either as a

24 grant or a cooperative agreement, with any applicant

25 under this section, it shall not suspend, terminate, or fail
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1 to renew or extend any such contract unless the Adminis2 tration provides the applicant with written notification set3 ting forth the reasons therefore and affording the appli4 cant an opportunity for a hearing, appeal, or other admin5 istrative proceeding under chapter 5 of title 5, United

6 States Code.’’.

7 SEC. 308. NATIONAL WOMEN’S BUSINESS COUNCIL PRO8 CUREMENT PROJECT.

9 (a) IN GENERAL.—The Women’s Business Owner10 ship Act of 1988 (15 U.S.C. 631 note) is amended by add11 ing at the end the following:

12 ‘‘SEC. 410. NATIONAL WOMEN’S BUSINESS COUNCIL PRO13 CUREMENT PROJECT.

14 ‘‘(a) PROCUREMENT PROJECT.—

15 ‘‘(1) FEDERAL PROCUREMENT STUDY.—

16 ‘‘(A) IN GENERAL.—The Council shall con17 duct a study on the award of Federal prime

18 contracts and subcontracts to women-owned

19 businesses, which study shall include—

20 ‘‘(i) an analysis of data collected by

21 Federal agencies on contract awards to

22 women-owned businesses;

23 ‘‘(ii) a determination of the degree to

24 which individual Federal agencies are in

25 compliance with the 5 percent women-
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1 owned business procurement goal estab2 lished by section 15(g)(1) of the Small

3 Business Act (15 U.S.C. 644(g)(1));

4 ‘‘(iii) a determination of the types and

5 amounts of Federal contracts characteris6 tically awarded to women-owned busi7 nesses; and

8 ‘‘(iv) other relevant information relat9 ing to participation of women-owned busi10 nesses in Federal procurement.

11 ‘‘(B) SUBMISSION OF RESULTS.—Not later

12 than October 1, 1999, the Council shall submit

13 to the Committees on Small Business of the

14 House of Representatives and the Senate, and

15 to the President, the results of the study con16 ducted under subparagraph (A).

17 ‘‘(2) BEST PRACTICES REPORT.—Not later than

18 March 1, 2000, the Council shall submit to the

19 Committees on Small Business of the House of Rep20 resentatives and the Senate, and to the President, a

21 report, which shall include—

22 ‘‘(A) an analysis of the most successful

23 practices in attracting women-owned businesses

24 as prime contractors and subcontractors by—
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1 ‘‘(i) Federal agencies (as supported by

2 findings from the study required under

3 subsection (a)(1)) in Federal procurement

4 awards; and

5 ‘‘(ii) the private sector; and

6 ‘‘(B) recommendations for policy changes

7 in Federal procurement practices, including an

8 increase in the Federal procurement goal for

9 women-owned businesses, in order to maximize

10 the number of women-owned businesses per11 forming Federal contracts.

12 ‘‘(b) CONTRACTING AUTHORITY.—In carrying out

13 this section, the Council may contract with 1 or more pub14 lic or private entities.

15 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There

16 is authorized to be appropriated to carry out this section,

17 not to exceed $200,000, to remain available until expended

18 through fiscal year 2000.’’.
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1 TITLE IV—COMPETITIVENESS

2 PROGRAM AND PROCURE3 MENT OPPORTUNITIES

4 Subtitle A—Small Business

5 Competitiveness Program

6 SEC. 401. PROGRAM TERM.

7 Section 711(c) of the Small Business Competitiveness

8 Demonstration Program Act of 1988 (15 U.S.C. 644 note)

9 is amended by striking ‘‘1997’’ and inserting ‘‘2000’’.

10 SEC. 402. MONITORING AGENCY PERFORMANCE.

11 Section 712(d)(1) of the Small Business Competitive12 ness Demonstration Program Act of 1988 (15 U.S.C. 644

13 note) is amended to read as follows:

14 ‘‘(1) Participating agencies shall monitor the

15 attainment of their small business participation

16 goals on an annual basis. An annual review by each

17 participating agency shall be completed not later

18 than January 31 of each year, based on the data for

19 the preceding fiscal year, from October 1 through

20 September 30.’’.

21 SEC. 403. REPORTS TO CONGRESS.

22 Section 716(a) of the Small Business Competitive23 ness Demonstration Program Act of 1988 (15 U.S.C. 644

24 note) is amended—

25 (1) by striking ‘‘1996’’ and inserting ‘‘2000’’;
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1 (2) by striking ‘‘for Federal Procurement Pol2 icy’’ and inserting ‘‘of the Small Business Adminis3 tration’’; and

4 (3) by striking ‘‘Government Operations’’ and

5 inserting ‘‘Government Reform and Oversight’’.

6 SEC. 404. SMALL BUSINESS PARTICIPATION IN DREDGING.

7 Section 722(a) of the Small Business Competitive8 ness Demonstration Program Act of 1988 (15 U.S.C. 644

9 note) is amended by striking ‘‘1996’’ and inserting

10 ‘‘2000’’.

11 Subtitle B—Small Business Pro12 curement Opportunities Pro13 gram

14 SEC. 411. CONTRACT BUNDLING.

15 Section 2 of the Small Business Act (15 U.S.C. 631)

16 is amended by adding at the end the following:

17 ‘‘(j) In complying with the statement of congressional

18 policy expressed in subsection (a), relating to fostering the

19 participation of small business concerns in the contracting

20 opportunities of the Government, each Federal agency, to

21 the maximum extent practicable, shall—

22 ‘‘(1) comply with congressional intent to foster

23 the participation of small business concerns as prime

24 contractors, subcontractors, and suppliers;
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1 ‘‘(2) structure its contracting requirements to

2 facilitate competition by and among small business

3 concerns, taking all reasonable steps to eliminate ob4 stacles to their participation; and

5 ‘‘(3) avoid unnecessary and unjustified bundling

6 of contract requirements that precludes small busi7 ness participation in procurements as prime contrac8 tors.’’.

9 SEC. 412. DEFINITION OF CONTRACT BUNDLING.

10 Section 3 of the Small Business Act (15 U.S.C. 632)

11 is amended by adding at the end the following:

12 ‘‘(o) DEFINITIONS OF BUNDLING OF CONTRACT RE13 QUIREMENTS AND RELATED TERMS.—In this Act—

14 ‘‘(1) The term ‘bundling of contract require15 ments’ means consolidating two or more procure16 ment requirements for goods or services previously

17 provided or performed under separate smaller con18 tracts into a solicitation of offers for a single con19 tract that is likely to be unsuitable for award to a

20 small-business concern due to—

21 ‘‘(A) the diversity, size, or specialized na22 ture of the elements of the performance speci23 fied;

24 ‘‘(B) the aggregate dollar value of the an25 ticipated award;
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1 ‘‘(C) the geographical dispersion of the

2 contract performance sites; or

3 ‘‘(D) any combination of the factors de4 scribed in subparagraphs (A), (B), and (C).

5 ‘‘(2) The term ‘separate smaller contract’, with

6 respect to a bundling of contract requirements,

7 means a contract that has been performed by one or

8 more small business concerns or was suitable for

9 award to one or more small business concerns.

10 ‘‘(3) The term ‘bundled contract’ means a con11 tract that is entered into to meet requirements that

12 are consolidated in a bundling of contract require13 ments.’’.

14 SEC. 413. ASSESSING PROPOSED CONTRACT BUNDLING.

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

16 Act (15 U.S.C. 644) is amended by inserting after sub17 section (d) the following new subsection (e):

18 ‘‘(e) PROCUREMENT STRATEGIES; CONTRACT BUN19 DLING.—

20 ‘‘(1) IN GENERAL.—To the maximum extent

21 practicable, procurement strategies used by the var22 ious agencies having contracting authority shall fa23 cilitate the maximum participation of small business

24 concerns as prime contractors, subcontractors, and

25 suppliers.
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1 ‘‘(2) MARKET RESEARCH.—

2 ‘‘(A) IN GENERAL.—Before proceeding

3 with an acquisition strategy that could lead to

4 a contract containing consolidated procurement

5 requirements, the head of an agency shall con6 duct market research to determine whether con7 solidation of the requirements is necessary and

8 justified.

9 ‘‘(B) FACTORS.—For purposes of subpara10 graph (A), consolidation of the requirements

11 may be determined as being necessary and jus12 tified if, as compared to the benefits that would

13 be derived from contracting to meet those re14 quirements if not consolidated, the Federal

15 Government would derive from the consolidation

16 measurably substantial benefits, including any

17 combination of benefits that, in combination,

18 are measurably substantial. Benefits described

19 in the preceding sentence may include the fol20 lowing:

21 ‘‘(i) Cost savings.

22 ‘‘(ii) Quality improvements.

23 ‘‘(iii) Reduction in acquisition cycle

24 times.

25 ‘‘(iv) Better terms and conditions.
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1 ‘‘(v) Any other benefits.

2 ‘‘(C) REDUCTION OF COSTS NOT DETER3 MINATIVE.—The reduction of administrative or

4 personnel costs alone shall not be a justification

5 for bundling of contract requirements unless

6 the cost savings are expected to be substantial

7 in relation to the dollar value of the procure8 ment requirements to be consolidated.

9 ‘‘(3) STRATEGY SPECIFICATIONS.—If the head

10 of a contracting agency determines that a proposed

11 procurement strategy for a procurement involves a

12 substantial bundling of contract requirements, the

13 proposed procurement strategy shall—

14 ‘‘(A) identify specifically the benefits an15 ticipated to be derived from the bundling of

16 contract requirements;

17 ‘‘(B) set forth an assessment of the spe18 cific impediments to participation by small busi19 ness concerns as prime contractors that result

20 from the bundling of contract requirements and

21 specify actions designed to maximize small busi22 ness participation as subcontractors (including

23 suppliers) at various tiers under the contract or

24 contracts that are awarded to meet the require25 ments; and
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1 ‘‘(C) include a specific determination that

2 the anticipated benefits of the proposed bundled

3 contract justify its use.

4 ‘‘(4) CONTRACT TEAMING.—In the case of a so5 licitation of offers for a bundled contract that is is6 sued by the head of an agency, a small-business con7 cern may submit an offer that provides for use of a

8 particular team of subcontractors for the perform9 ance of the contract. The head of the agency shall

10 evaluate the offer in the same manner as other of11 fers, with due consideration to the capabilities of all

12 of the proposed subcontractors. When a small busi13 ness concern teams under this paragraph, it shall

14 not affect its status as a small business concern for

15 any other purpose.’’.

16 (b) ADMINISTRATION REVIEW.—The third sentence

17 of subsection (a) of such section is amended—

18 (1) by inserting after ‘‘discrete construction

19 projects,’’ the following: ‘‘or the solicitation involves

20 an unnecessary or unjustified bundling of contract

21 requirements, as determined by the Administra22 tion,’’;

23 (2) by striking out ‘‘or (4)’’ and inserting in

24 lieu thereof ‘‘(4)’’; and
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1 (3) by inserting before the period at the end the

2 following: ‘‘, or (5) why the agency has determined

3 that the bundled contract (as defined in section

4 3(o)) is necessary and justified’’.

5 (c) RESPONSIBILITIES OF AGENCY SMALL BUSINESS

6 ADVOCATES.—Subsection (k) of such section is amend7 ed—

8 (1) by redesignating paragraphs (5) through

9 (9) as paragraphs (6) through (10), respectively;

10 and

11 (2) by inserting after paragraph (4) the follow12 ing:

13 ‘‘(5) identify proposed solicitations that involve

14 significant bundling of contract requirements, and

15 work with the agency acquisition officials and the

16 Administration to revise the procurement strategies

17 for such proposed solicitations where appropriate to

18 increase the probability of participation by small

19 businesses as prime contractors, or to facilitate

20 small business participation as subcontractors and

21 suppliers, if a solicitation for a bundled contract is

22 to be issued;’’.
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1 SEC. 414. REPORTING OF BUNDLED CONTRACT OPPORTU2 NITIES.

3 (a) DATA COLLECTION REQUIRED.—The Federal

4 Procurement Data System described in section 6(d)(4)(A)

5 of the Office of Federal Procurement Policy Act (41

6 U.S.C. 405(d)(4)(A)) shall be modified to collect data re7 garding bundling of contract requirements when the con8 tracting officer anticipates that the resulting contract

9 price, including all options, is expected to exceed

10 $5,000,000. The data shall reflect a determination made

11 by the contracting officer regarding whether a particular

12 solicitation constitutes a contract bundling.

13 (b) DEFINITIONS.—In this section, the term ‘‘bun14 dling of contract requirements’’ has the meaning given

15 that term in section 3(o) of the Small Business Act (15

16 U.S.C. 632(o)) (as added by section 412 of this title).

17 SEC. 415. EVALUATING SUBCONTRACT PARTICIPATION IN

18 AWARDING CONTRACTS.

19 Section 8(d)(4) of the Small Business Act (15 U.S.C.

20 637(d)(4)) is amended by adding at the end the following:

21 ‘‘(G) The following factors shall be designated

22 by the Federal agency as significant factors for pur23 poses of evaluating offers for a bundled contract

24 where the head of the agency determines that the

25 contract offers a significant opportunity for sub26 contracting:
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1 ‘‘(i) A factor that is based on the rate pro2 vided under the subcontracting plan for small

3 business participation in the performance of the

4 contract.

5 ‘‘(ii) For the evaluation of past perform6 ance of an offeror, a factor that is based on the

7 extent to which the offeror attained applicable

8 goals for small business participation in the

9 performance of contracts.’’.

10 SEC. 416. IMPROVED NOTICE OF SUBCONTRACTING OPPOR11 TUNITIES.

12 (a) USE OF THE COMMERCE BUSINESS DAILY AU13 THORIZED.—Section 8 of the Small Business Act (15

14 U.S.C. 637) is amended by adding at the end the follow15 ing:

16 ‘‘(k) NOTICES OF SUBCONTRACTING OPPORTUNI17 TIES.—

18 ‘‘(1) IN GENERAL.—Notices of subcontracting

19 opportunities may be submitted for publication in

20 the Commerce Business Daily by—

21 ‘‘(A) a business concern awarded a con22 tract by an executive agency subject to sub23 section (e)(1)(C); and

24 ‘‘(B) a business concern which is a sub25 contractor or supplier (at any tier) to such con-
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1 tractor having a subcontracting opportunity in

2 excess of $10,000.

3 ‘‘(2) CONTENT OF NOTICE.—The notice of a

4 subcontracting opportunity shall include—

5 ‘‘(A) a description of the business oppor6 tunity that is comparable to the description

7 specified in paragraphs (1), (2), (3), and (4) of

8 subsection (f); and

9 ‘‘(B) the due date for receipt of offers.’’.

10 (b) REGULATIONS REQUIRED.—The Federal Acquisi11 tion Regulation shall be amended to provide uniform im12 plementation of the amendments made by this section.

13 (c) CONFORMING AMENDMENT.—Section 8(e)(1)(C)

14 of the Small Business Act (15 U.S.C. 637(e)(1)(C)) is

15 amended by striking ‘‘$25,000’’ each place that term ap16 pears and inserting ‘‘$100,000’’.

17 SEC. 417. DEADLINES FOR ISSUANCE OF REGULATIONS.

18 (a) PROPOSED REGULATIONS.—Proposed amend19 ments to the Federal Acquisition Regulation or proposed

20 Small Business Administration regulations under this sub21 title and the amendments made by this subtitle shall be

22 published not later than 120 days after the date of enact23 ment of this Act for the purpose of obtaining public com24 ment pursuant to section 22 of the Office of Federal Pro25 curement Policy Act (41 U.S.C. 418b), or chapter 5 of
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1 title 5, United States Code, as appropriate. The public

2 shall be afforded not less than 60 days to submit com3 ments.

4 (b) FINAL REGULATIONS.—Final regulations shall be

5 published not later than 270 days after the date of enact6 ment of this Act. The effective date for such final regula7 tions shall be not less than 30 days after the date of publi8 cation.

9 TITLE V—MISCELLANEOUS

10 PROVISIONS

11 SEC. 501. SMALL BUSINESS TECHNOLOGY TRANSFER PRO12 GRAM.

13 (a) REQUIRED EXPENDITURES.—Section 9(n) of the

14 Small Business Act (15 U.S.C. 638(n)) is amended by

15 striking paragraph (1) and inserting the following:

16 ‘‘(1) REQUIRED EXPENDITURE AMOUNTS.—

17 With respect to fiscal years 1998, 1999, 2000, 2001,

18 2002, or 2003, each Federal agency that has an ex19 tramural budget for research, or research and devel20 opment, in excess of $1,000,000,000 for that fiscal

21 year, is authorized to expend with small business

22 concerns not less than 0.15 percent of that extra23 mural budget specifically in connection with STTR

24 programs that meet the requirements of this section
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1 and any policy directives and regulations issued

2 under this section.’’.

3 (b) PILOT PROGRAM.—

4 (1) IN GENERAL.—Section 9 of the Small Busi5 ness Act (15 U.S.C. 638) is amended by adding at

6 the end the following:

7 ‘‘(s) PILOT PROGRAM.—

8 ‘‘(1) DEFINITION OF ELIGIBLE STATE.—In this

9 subsection, the term ‘eligible State’ means a State—

10 ‘‘(A) if the total value of contracts award11 ed to the State during fiscal year 1995 under

12 this section was less than $5,000,000; and

13 ‘‘(B) that certifies to the Federal agency

14 described in paragraph (2) that the State will,

15 upon receipt of assistance under this sub16 section, provide matching funds from non-Fed17 eral sources in an amount that is not less than

18 50 percent of the amount provided under this

19 subsection.

20 ‘‘(2) PROGRAM AUTHORITY.—Of amounts made

21 available to carry out this section for fiscal year

22 1998, 1999, or 2000, the Administrator may expend

23 with eligible States not more than $2,000,000 in

24 each such fiscal year in order to increase the partici-
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1 pation of small business concerns located in those

2 States in the programs under this section.

3 ‘‘(3) AMOUNT OF ASSISTANCE.—The amount of

4 assistance provided to an eligible State under this

5 subsection in any fiscal year—

6 ‘‘(A) shall be equal to twice the total

7 amount of matching funds from non-Federal

8 sources provided by the State; and

9 ‘‘(B) shall not exceed $100,000.

10 ‘‘(4) USE OF ASSISTANCE.—Assistance provided

11 to an eligible State under this subsection shall be

12 used by the State, in consultation with State and

13 local departments and agencies, for programs and

14 activities to increase the participation of small busi15 ness concerns located in the State in the programs

16 under this section, including—

17 ‘‘(A) the establishment of quantifiable per18 formance goals, including goals relating to—

19 ‘‘(i) the number of program awards

20 under this section made to small business

21 concerns in the State; and

22 ‘‘(ii) the total amount of Federal re23 search and development contracts awarded

24 to small business concerns in the State;
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1 ‘‘(B) the provision of competition outreach

2 support to small business concerns in the State

3 that are involved in research and development;

4 and

5 ‘‘(C) the development and dissemination of

6 educational and promotional information relat7 ing to the programs under this section to small

8 business concerns in the State.’’.

9 (2) REPEAL.—Effective October 1, 2000, sec10 tion 9(s) of the Small Business Act (as added by

11 paragraph (1) of this subsection) is repealed.

12 SEC. 502. SMALL BUSINESS DEVELOPMENT CENTERS.

13 (a) IN GENERAL.—Section 21(a) of the Small Busi14 ness Act (15 U.S.C. 648(a)) is amended—

15 (1) in paragraph (1)—

16 (A) by inserting ‘‘any women’s business

17 center operating pursuant to section 29,’’ after

18 ‘‘credit or finance corporation,’’;

19 (B) by inserting ‘‘or a women’s business

20 center operating pursuant to section 29’’ after

21 ‘‘other than an institution of higher education’’;

22 and

23 (C) by inserting ‘‘and women’s business

24 centers operating pursuant to section 29’’ after

25 ‘‘utilize institutions of higher education’’;
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1 (2) in paragraph (3)—

2 (A) by striking ‘‘, but with’’ and all that

3 follows through ‘‘parties.’’ and inserting the fol4 lowing: ‘‘for the delivery of programs and serv5 ices to the Small Business community. Such

6 programs and services shall be jointly devel7 oped, negotiated, and agreed upon, with full

8 participation of both parties, pursuant to an ex9 ecuted cooperative agreement between the Small

10 Business Development Center applicant and the

11 Administration.’’; and

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

13 ‘‘(C) On an annual basis, the Small Business

14 Development Center shall review and coordinate

15 public and private partnerships and cosponsorships

16 with the Administration for the purpose of more effi17 ciently leveraging available resources on a National

18 and a State basis.’’;

19 (3) in paragraph (4)(C)—

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

21 following:

22 ‘‘(i) IN GENERAL.—

23 ‘‘(I) GRANT AMOUNT.—Subject to

24 subclause (II), the amount of a grant re25 ceived by a State under this section shall
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1 be equal to the greater of $500,000, or the

2 sum of—

3 ‘‘(aa) the State’s pro rata share

4 of the national program, based upon

5 the population of the State as com6 pared to the total population of the

7 United States; and

8 ‘‘(bb) $300,000 in fiscal year

9 1998, $400,000 in fiscal year 1999,

10 and $500,000 in each fiscal year

11 thereafter.

12 ‘‘(II) PRO RATA REDUCTIONS.—If the

13 amount made available to carry out this

14 section for any fiscal year is insufficient to

15 carry out subclause (I), the Administration

16 shall make pro rata reductions in the

17 amounts otherwise payable to States under

18 this clause.’’; and

19 (B) in clause (iii), by striking ‘‘(iii)’’ and

20 all that follows through ‘‘1997.’’ and inserting

21 the following:

22 ‘‘(iii) AUTHORIZATION OF APPROPRIA23 TIONS.—There are authorized to be appro24 priated to carry out the national program under

25 this section—
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1 ‘‘(I) $85,000,000 for fiscal year 1998;

2 ‘‘(II) $90,000,000 for fiscal year

3 1999; and

4 ‘‘(III) $95,000,000 for fiscal year

5 2000 and each fiscal year thereafter.’’; and

6 (4) in paragraph (6)—

7 (A) in subparagraph (A), by striking

8 ‘‘and’’ at the end;

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

10 comma at the end and inserting ‘‘; and’’; and

11 (C) inserting after subparagraph (B) the

12 following:

13 ‘‘(C) with outreach, development, and en14 hancement of minority-owned small business

15 startups or expansions, veteran-owned small

16 business startups or expansions, and women17 owned small business startups or expansions, in

18 communities impacted by base closings or mili19 tary or corporate downsizing, or in rural or un20 derserved communities;’’.

21 (b) SBDC SERVICES.—Section 21(c) of the Small

22 Business Act (15 U.S.C. 648(c)) is amended—

23 (1) in paragraph (3)—
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1 (A) in subparagraph (A), by striking

2 ‘‘businesses;’’ and inserting ‘‘businesses, includ3 ing—

4 ‘‘(i) working with individuals to increase

5 awareness of basic credit practices and credit

6 requirements;

7 ‘‘(ii) working with individuals to develop8 ment business plans, financial packages, credit

9 applications, and contract proposals;

10 ‘‘(iii) working with the Administration to

11 develop and provide informational tools for use

12 in working with individuals on pre-business

13 startup planning, existing business expansion,

14 and export planning; and

15 ‘‘(iv) working with individuals referred by

16 the local offices of the Administration and Ad17 ministration participating lenders;’’;

18 (B) in each of subparagraphs (B), (C),

19 (D), (E), (F), (G), (M), (N), (O), (Q), and (R)

20 by moving each margin two ems to the right;

21 (C) in subparagraph (C), by inserting ‘‘and

22 the Administration’’ after ‘‘Center’’;

23 (D) by striking subparagraph (H), and in24 serting the following:
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1 ‘‘(H) working with the technical and environ2 mental compliance assistance programs established

3 in each State under section 507 of the Clean Air Act

4 Amendments of 1970, or State pollution prevention

5 programs to notify small businesses through out6 reach programs of regulations that affect small busi7 nesses and making counseling, conferences, and ma8 terials available on methods of compliance;’’;

9 (E) in subparagraph (Q), by striking

10 ‘‘and’’ at the end;

11 (F) in subparagraph (R), by striking the

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

13 (G) by inserting after subparagraph (R)

14 the following:

15 ‘‘(S) providing counseling and technology devel16 opment when necessary to help small businesses find

17 solutions for complying with environmental, energy,

18 health, safety, and other Federal, State, and local

19 regulation including cooperating with the technical

20 and environmental compliance assistance programs

21 established in each State under section 507 of the

22 Clean Air Act Amendments of 1970 or State pollu23 tion prevention programs in the provision of counsel24 ing and technology development to help small busi-
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1 nesses find solutions for complying with environ2 mental regulations.’’;

3 (2) in paragraph (5)—

4 (A) by moving the margin 2 ems to the

5 right;

6 (B) by striking ‘‘paragraph (a)(1)’’ and in7 serting ‘‘subsection (a)(1)’’;

8 (C) by striking ‘‘which ever’’ and inserting

9 ‘‘whichever’’; and

10 (D) by striking ‘‘last,,’’ and inserting

11 ‘‘last,’’;

12 (3) by redesignating paragraphs (4) through

13 (7) as paragraphs (5) through (8), respectively; and

14 (4) in paragraph (3), in the undesignated mate15 rial following subparagraph (S) (as added by this

16 subsection), by striking ‘‘A small’’ and inserting the

17 following:

18 ‘‘(4) A small’’.

19 (c) COMPETITIVE AWARDS.—Section 21(l) of the

20 Small Business Act (15 U.S.C. 648(l)) is amended by add21 ing at the end the following: ‘‘If any contract under this

22 section with an entity that is in compliance with this sec23 tion is not renewed or extended, any award of a contract

24 under this section to another entity shall be made on a

25 competitive basis.’’.
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1 (d) PROHIBITION ON CERTAIN FEES.—Section 21 of

2 the Small Business Act (15 U.S.C. 648) is amended by

3 adding at the end the following:

4 ‘‘(m) PROHIBITION ON CERTAIN FEES.—A small

5 business development center shall not impose or otherwise

6 collect a fee or other compensation in connection with the

7 provision of counseling services under this section.’’.

8 SEC. 503. PILOT PREFERRED SURETY BOND GUARANTEE

9 PROGRAM EXTENSION.

10 Section 207 of the Small Business Administration

11 Reauthorization and Amendment Act of 1988 (15 U.S.C.

12 694b note) is amended by striking ‘‘September 30, 1997’’

13 and inserting ‘‘September 30, 2000’’.

14 SEC. 504. EXTENSION OF COSPONSORSHIP AUTHORITY.

15 Section 401(a)(2) of the Small Business Administra16 tion Reauthorization and Amendments Act of 1994 (15

17 U.S.C. 637 note) is amended by striking ‘‘September 30,

18 1997’’ and inserting ‘‘September 30, 2000’’.

19 SEC. 505. ASSET SALES.

20 In connection with the Administration’s implementa21 tion of a program to sell to the private sector loans and

22 other assets held by the Administration, the Administra23 tion shall provide to the Committees on Small Business

24 in the Senate and House of Representatives a copy of the
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1 draft and final plans describing the sale and the antici2 pated benefits resulting from such sale.

3 SEC. 506. SMALL BUSINESS EXPORT PROMOTION.

4 (a) IN GENERAL.—Section 21(c)(3) of the Small

5 Business Act (15 U.S.C. 648(c)(3)) is amended—

6 (1) in subparagraph (Q), by striking ‘‘and’’ at

7 the end;

8 (2) in subparagraph (B), by striking the period

9 at the end and inserting ‘‘; and’’; and

10 (3) by inserting after subparagraph (R) the fol11 lowing:

12 ‘‘(S) providing small business owners with

13 access to a wide variety of export-related infor14 mation by establishing on-line computer link15 ages between small business development cen16 ters and an international trade data informa17 tion network with ties to the Export Assistance

18 Center program.’’.

19 (b) AUTHORIZATION OF APPROPRIATIONS.—There

20 are authorized to be appropriated to carry out section

21 21(c)(3)(S) of the Small Business Act (15 U.S.C.

22 648(c)(3)(S)), as added by this section, $1,500,000 for

23 each fiscal years 1998 and 1999.
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1 SEC. 507. DEFENSE LOAN AND TECHNICAL ASSISTANCE

2 PROGRAM.

3 (a) DELTA PROGRAM AUTHORIZED.—

4 (1) IN GENERAL.—The Administrator of the

5 Small Business Administration may administer the

6 Defense Loan and Technical Assistance program in

7 accordance with the authority and requirements of

8 this section.

9 (2) EXPIRATION OF AUTHORITY.—The author10 ity of the Administrator to carry out the DELTA

11 program under paragraph (1) shall terminate when

12 the funds referred to in subsection (g)(1) have been

13 expended.

14 (3) DELTA PROGRAM DEFINED.—In this sec15 tion, the terms ‘‘Defense Loan and Technical Assist16 ance program’’ and ‘‘DELTA program’’ mean the

17 Defense Loan and Technical Assistance program

18 that has been established by a memorandum of un19 derstanding entered into by the Administrator and

20 the Secretary of Defense on June 26, 1995.

21 (b) ASSISTANCE.—

22 (1) AUTHORITY.—Under the DELTA program,

23 the Administrator may assist small business con24 cerns that are economically dependent on defense ex25 penditures to acquire dual-use capabilities.
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1 (2) FORMS OF ASSISTANCE.—Forms of assist2 ance authorized under paragraph (1) are as follows:

3 (A) LOAN GUARANTEES.—Loan guaran4 tees under the terms and conditions specified

5 under this section and other applicable law.

6 (B) NONFINANCIAL ASSISTANCE.—Other

7 forms of assistance that are not financial.

8 (c) ADMINISTRATION OF PROGRAM.—In the adminis9 tration of the DELTA program under this section, the Ad10 ministrator shall—

11 (1) process applications for DELTA program

12 loan guarantees;

13 (2) guarantee repayment of the resulting loans

14 in accordance with this section; and

15 (3) take such other actions as are necessary to

16 administer the program.

17 (d) SELECTION AND ELIGIBILITY REQUIREMENTS

18 FOR DELTA LOAN GUARANTEES.—

19 (1) IN GENERAL.—The selection criteria and

20 eligibility requirements set forth in this subsection

21 shall be applied in the selection of small business

22 concerns to receive loan guarantees under the

23 DELTA program.

24 (2) SELECTION CRITERIA.—The criteria used

25 for the selection of a small business concern to re-
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1 ceive a loan guarantee under this section are as fol2 lows:

3 (A) The selection criteria established under

4 the memorandum of understanding referred to

5 in subsection (a)(3).

6 (B) The extent to which the loans to be

7 guaranteed would support the retention of de8 fense workers whose employment would other9 wise be permanently or temporarily terminated

10 as a result of reductions in expenditures by the

11 United States for defense, the termination or

12 cancellation of a defense contract, the failure to

13 proceed with an approved major weapon sys14 tem, the merger or consolidation of the oper15 ations of a defense contractor, or the closure or

16 realignment of a military installation.

17 (C) The extent to which the loans to be

18 guaranteed would stimulate job creation and

19 new economic activities in communities most

20 adversely affected by reductions in expenditures

21 by the United States for defense, the termi22 nation or cancellation of a defense contract, the

23 failure to proceed with an approved major

24 weapon system, the merger or consolidation of
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1 the operations of a defense contractor, or the

2 closure or realignment of a military installation.

3 (D) The extent to which the loans to be

4 guaranteed would be used to acquire (or permit

5 the use of other funds to acquire) capital equip6 ment to modernize or expand the facilities of

7 the borrower to enable the borrower to remain

8 in the national technology and industrial base

9 available to the Department of Defense.

10 (3) ELIGIBILITY REQUIREMENTS.—To be eligi11 ble for a loan guarantee under the DELTA pro12 gram, a borrower must demonstrate to the satisfac13 tion of the Administrator that, during any 1 of the

14 5 preceding operating years of the borrower, not less

15 than 25 percent of the value of the borrower’s sales

16 were derived from—

17 (A) contracts with the Department of De18 fense or the defense-related activities of the De19 partment of Energy; or

20 (B) subcontracts in support of defense-re21 lated prime contracts.

22 (e) MAXIMUM AMOUNT OF LOAN PRINCIPAL.—The

23 maximum amount of loan principal for which the Adminis24 trator may provide a guarantee under this section during

25 a fiscal year may not exceed $1,250,000.
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1 (f) LOAN GUARANTY RATE.—The maximum allow2 able guarantee percentage for loans guaranteed under this

3 section may not exceed 80 percent.

4 (g) FUNDING.—

5 (1) IN GENERAL.—The funds that have been

6 made available for loan guarantees under the

7 DELTA program and have been transferred from

8 the Department of Defense to the Small Business

9 Administration before the date of the enactment of

10 this Act shall be used for carrying out the DELTA

11 program under this section.

12 (2) CONTINUED AVAILABILITY OF EXISTING

13 FUNDS.—The funds made available under the second

14 proviso under the heading ‘‘RESEARCH, DEVELOP15 MENT, TEST AND EVALUATION, DEFENSE-WIDE’’ in

16 Public Law 103–335 (108 Stat. 2613) shall be avail17 able until expended—

18 (A) to cover the costs (as defined in sec19 tion 502(5) of the Federal Credit Reform Act

20 of 1990 (2 U.S.C. 661a(5))) of loan guarantees

21 issued under this section; and

22 (B) to cover the reasonable costs of the ad23 ministration of the loan guarantees.
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1 TITLE VI—HUBZONE PROGRAM

2 SEC. 601. SHORT TITLE.

3 This title may be cited as the ‘‘HUBZone Act of

4 1997’’.

5 SEC. 602. HISTORICALLY UNDERUTILIZED BUSINESS

6 ZONES.

7 (a) DEFINITIONS.—Section 3 of the Small Business

8 Act (15 U.S.C. 632) (as amended by section 412 of this

9 Act) is amended by adding at the end the following:

10 ‘‘(p) DEFINITIONS RELATING TO HUBZONES.—In

11 this Act:

12 ‘‘(1) HISTORICALLY UNDERUTILIZED BUSINESS

13 ZONE.—The term ‘historically underutilized business

14 zone’ means any area located within 1 or more—

15 ‘‘(A) qualified census tracts;

16 ‘‘(B) qualified nonmetropolitan counties; or

17 ‘‘(C) lands within the external boundaries

18 of an Indian reservation.

19 ‘‘(2) HUBZONE.—The term ‘HUBZone’ means

20 a historically underutilized business zone.

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

22 The term ‘HUBZone small business concern’ means

23 a small business concern—
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1 ‘‘(A) that is owned and controlled by 1 or

2 more persons, each of whom is a United States

3 citizen; and

4 ‘‘(B) the principal office of which is located

5 in a HUBZone; or

6 ‘‘(4) QUALIFIED AREAS.—

7 ‘‘(A) QUALIFIED CENSUS TRACT.—The

8 term ‘qualified census tract’ has the meaning

9 given that term in section 42(d)(5)(C)(i)(I) of

10 the Internal Revenue Code of 1986.

11 ‘‘(B) QUALIFIED NONMETROPOLITAN

12 COUNTY.—The term ‘qualified nonmetropolitan

13 county’ means any county—

14 ‘‘(i) that, based on the most recent

15 data available from the Bureau of the Cen16 sus of the Department of Commerce—

17 ‘‘(I) is not located in a metropoli18 tan statistical area (as that term is

19 defined in section 143(k)(2)(B) of the

20 Internal Revenue Code of 1986); and

21 ‘‘(II) in which the median house22 hold income is less than 80 percent of

23 the nonmetropolitan State median

24 household income; or
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1 ‘‘(ii) that, based on the most recent

2 data available from the Secretary of Labor,

3 has an unemployment rate that is not less

4 than 140 percent of the statewide average

5 unemployment rate for the State in which

6 the county is located.

7 ‘‘(5) QUALIFIED HUBZONE SMALL BUSINESS

8 CONCERN.—

9 ‘‘(A) IN GENERAL.—A HUBZone small

10 business concern is ‘qualified’, if—

11 ‘‘(i) the small business concern has

12 certified in writing to the Administrator

13 (or the Administrator otherwise deter14 mines, based on information submitted to

15 the Administrator by the small business

16 concern, or based on certification proce17 dures, which shall be established by the

18 Administration by regulation) that—

19 ‘‘(I) it is a HUBZone small busi20 ness concern;

21 ‘‘(II) not less than 35 percent of

22 the employees of the small business

23 concern reside in a HUBZone, and

24 the small business concern will at25 tempt to maintain this employment
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1 percentage during the performance of

2 any contract awarded to the small

3 business concern on the basis of a

4 preference provided under section

5 31(b); and

6 ‘‘(III) with respect to any sub7 contract entered into by the small

8 business concern pursuant to a con9 tract awarded to the small business

10 concern under section 31, the small

11 business concern will ensure that—

12 ‘‘(aa) in the case of a con13 tract for services (except con14 struction), not less than 50 per15 cent of the cost of contract per16 formance incurred for personnel

17 will be expended for its employ18 ees or for employees of other

19 HUBZone small business con20 cerns; and

21 ‘‘(bb) in the case of a con22 tract for procurement of supplies

23 (other than procurement from a

24 regular dealer in such supplies),

25 not less than 50 percent of the
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1 cost of manufacturing the sup2 plies (not including the cost of

3 materials) will be incurred in

4 connection with the performance

5 of the contract in a HUBZone by

6 1 or more HUBZone small busi7 ness concerns; and

8 ‘‘(ii) no certification made or informa9 tion provided by the small business concern

10 under clause (i) has been, in accordance

11 with the procedures established under sec12 tion 31(c)(1)—

13 ‘‘(I) successfully challenged by an

14 interested party; or

15 ‘‘(II) otherwise determined by the

16 Administrator to be materially false.

17 ‘‘(B) CHANGE IN PERCENTAGES.—The Ad18 ministrator may utilize a percentage other than

19 the percentage specified in under subclause (IV)

20 or (V) of subparagraph (A)(i), if the Adminis21 trator determines that such action is necessary

22 to reflect conventional industry practices among

23 small business concerns that are below the nu24 merical size standard for businesses in that in25 dustry category.
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1 ‘‘(C) CONSTRUCTION AND OTHER CON2 TRACTS.—The Administrator shall promulgate

3 final regulations imposing requirements that

4 are similar to those specified in subclauses (IV)

5 and (V) of subparagraph (A)(i) on contracts for

6 general and specialty construction, and on con7 tracts for any other industry category that

8 would not otherwise be subject to those require9 ments. The percentage applicable to any such

10 requirement shall be determined in accordance

11 with subparagraph (B).

12 ‘‘(D) LIST OF QUALIFIED SMALL BUSINESS

13 CONCERNS.—The Administrator shall establish

14 and maintain a list of qualified HUBZone small

15 business concerns, which list shall, to the extent

16 practicable—

17 ‘‘(i) include the name, address, and

18 type of business with respect to each such

19 small business concern;

20 ‘‘(ii) be updated by the Administrator

21 not less than annually; and

22 ‘‘(iii) be provided upon request to any

23 Federal agency or other entity.’’.

24 (b) FEDERAL CONTRACTING.—
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1 (1) IN GENERAL.—The Small Business Act (15

2 U.S.C. 631 et seq.) is amended—

3 (A) by redesignating section 31 as section

4 32; and

5 (B) by inserting after section 30 the fol6 lowing:

7 ‘‘SEC. 31. HUBZONE PROGRAM.

8 ‘‘(a) IN GENERAL.—There is established within the

9 Administration a program to be carried out by the Admin10 istrator to provide for Federal contracting assistance to

11 qualified HUBZone small business concerns in accordance

12 with this section.

13 ‘‘(b) ELIGIBLE CONTRACTS.—

14 ‘‘(1) DEFINITIONS.—In this subsection—

15 ‘‘(A) the term ‘contracting officer’ has the

16 meaning given that term in section 27(f)(5) of

17 the Office of Federal Procurement Policy Act

18 (41 U.S.C. 423(f)(5)); and

19 ‘‘(B) the terms ‘executive agency’ and ‘full

20 and open competition’ have the meanings given

21 such terms in section 4 of the Office of Federal

22 Procurement Policy Act (41 U.S.C. 403).

23 ‘‘(2) REQUIREMENTS.—Subject to paragraph

24 (3), a contract opportunity offered for award pursu25 ant to this section shall be awarded on the basis of
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1 competition restricted to qualified HUBZone small

2 business concerns, if there is a reasonable expecta3 tion that not less than 2 qualified HUBZone small

4 business concerns will submit offers and that award

5 can be made at a fair market price.

6 ‘‘(3) ALTERNATE AUTHORITY.—Notwithstand7 ing any other provision of law, a contracting officer

8 may award sole source contracts under this section

9 to any qualified HUBZone small business concern,

10 if—

11 ‘‘(A) the qualified HUBZone small busi12 ness concern is determined to be a responsible

13 contractor with respect to performance of such

14 contract opportunity;

15 ‘‘(B) the anticipated award price of the

16 contract (including options) will not exceed—

17 ‘‘(i) $5,000,000, in the case of a con18 tract opportunity assigned a standard in19 dustrial classification code for manufactur20 ing; or

21 ‘‘(ii) $3,000,000, in the case of all

22 other contract opportunities; and

23 ‘‘(C) in the estimation of the contracting

24 officer, the contract award can be made at a

25 fair and reasonable price.
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1 ‘‘(4) PRICE EVALUATION PREFERENCE IN FULL

2 AND OPEN COMPETITIONS.—In any case in which a

3 contract is to be awarded on the basis of full and

4 open competition, the price offered by a small busi5 ness concern shall be deemed as being lower than

6 the price offered by another offeror (other than an7 other small business concern), if the price offered by

8 the qualified HUBZone small business concern is

9 not more than 10 percent higher than the price of10 fered by the otherwise lowest, responsive, and re11 sponsible offeror.

12 ‘‘(5) RELATIONSHIP TO OTHER CONTRACTING

13 PREFERENCES.—

14 ‘‘(A) SUBORDINATE RELATIONSHIP.—A

15 procurement may not be made from a source on

16 the basis of a preference provided in paragraph

17 (2), (3), or (4), if the procurement would other18 wise be made from a different source under sec19 tion 4124 or 4125 of title 18, United States

20 Code, or the Javits-Wagner-O’Day Act.

21 ‘‘(B) PARITY RELATIONSHIP.—The provi22 sions of paragraphs (2), (3), and (4) shall not

23 limit the discretion of a contracting officer to

24 let any procurement contract to the Administra25 tion under section 8(a). Notwithstanding sec-
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1 tion 8(a), the Administration may not appeal

2 an adverse decision of any contracting officer

3 declining to let a procurement contract to the

4 Administration, if the procurement is made to

5 a qualified HUBZone small business concern on

6 the basis of a preference under paragraph (2),

7 (3), or (4).

8 ‘‘(c) ENFORCEMENT; PENALTIES.—

9 ‘‘(1) VERIFICATION OF ELIGIBILITY.—In carry10 ing out this section, the Administrator shall estab11 lish procedures relating to—

12 ‘‘(A) the filing, investigation, and disposi13 tion by the Administration of any challenge to

14 the eligibility of a small business concern to re15 ceive assistance under this section (including a

16 challenge, filed by an interested party, relating

17 to the veracity of a certification made or infor18 mation provided to the Administration by a

19 small business concern under section 3(p)(5));

20 and

21 ‘‘(B) verification by the Administrator of

22 the accuracy of any certification made or infor23 mation provided to the Administration by a

24 small business concern under section 3(p)(5).
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1 ‘‘(2) EXAMINATIONS.—The procedures estab2 lished under paragraph (1) may provide for program

3 examinations (including random program examina4 tions) by the Administrator of any small business

5 concern making a certification or providing informa6 tion to the Administrator under section 3(p)(5).

7 ‘‘(3) PROVISION OF DATA.—Upon the request

8 of the Administrator, the Secretary of Labor, the

9 Secretary of Housing and Urban Development, and

10 the Secretary of the Interior (or the Assistant Sec11 retary for Indian Affairs), shall promptly provide to

12 the Administrator such information as the Adminis13 trator determines to be necessary to carry out this

14 subsection.

15 ‘‘(4) PENALTIES.—In addition to the penalties

16 described in section 16(d), any small business con17 cern that is determined by the Administrator to have

18 misrepresented the status of that concern as a

19 ‘HUBZone small business concern’ for purposes of

20 this section, shall be subject to—

21 ‘‘(A) section 1001 of title 18, United

22 States Code; and

23 ‘‘(B) sections 3729 through 3733 of title

24 31, United States Code.’’.
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1 (2) INITIAL LIMITED APPLICABILITY.—During

2 the period beginning on the date of enactment of

3 this Act and ending on September 30, 2000, section

4 31 of the Small Business Act (as added by para5 graph (1) of this subsection) shall apply only to pro6 curements by—

7 (A) the Department of Defense;

8 (B) the Department of Agriculture;

9 (C) the Department of Health and Human

10 Services;

11 (D) the Department of Transportation;

12 (E) the Department of Energy;

13 (F) the Department of Housing and Urban

14 Development;

15 (G) the Environmental Protection Agency;

16 (H) the National Aeronautics and Space

17 Administration;

18 (I) the General Services Administration;

19 and

20 (J) the Department of Veterans Affairs.

21 SEC. 603. TECHNICAL AND CONFORMING AMENDMENTS TO

22 THE SMALL BUSINESS ACT.

23 (a) PERFORMANCE OF CONTRACTS.—Section 8(d) of

24 the Small Business Act (15 U.S.C. 637(d)) is amended—

25 (1) in paragraph (1)—
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1 (A) in the first sentence, by striking ‘‘,,

2 small business concerns owned and controlled

3 by socially and economically disadvantaged indi4 viduals’’ and inserting ‘‘, qualified HUBZone

5 small business concerns, small business con6 cerns owned and controlled by socially and eco7 nomically disadvantaged individuals’’; and

8 (B) in the second sentence, by inserting

9 ‘‘qualified HUBZone small business concerns,’’

10 after ‘‘small business concerns,’’;

11 (2) in paragraph (3)—

12 (A) by inserting ‘‘qualified HUBZone

13 small business concerns,’’ after ‘‘small business

14 concerns,’’ each place that term appears; and

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

16 ‘‘(F) In this contract, the term ‘qualified

17 HUBZone small business concern’ has the meaning

18 given that term in section 3(p) of the Small Busi19 ness Act.’’;

20 (3) in paragraph (4)(E), by striking ‘‘small

21 business concerns and’’ and inserting ‘‘small busi22 ness concerns, qualified HUBZone small business

23 concerns, and’’;

24 (4) in paragraph (6), by inserting ‘‘qualified

25 HUBZone small business concerns,’’ after ‘‘small
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1 business concerns,’’ each place that term appears;

2 and

3 (5) in paragraph (10), by inserting ‘‘qualified

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

5 business concerns,’’.

6 (b) AWARDS OF CONTRACTS.—Section 15 of the

7 Small Business Act (15 U.S.C. 644) is amended—

8 (1) in subsection (g)(1)—

9 (A) by inserting ‘‘qualified HUBZone

10 small business concerns,’’ after ‘‘small business

11 concerns,’’ each place that term appears;

12 (B) in the second sentence, by striking ‘‘20

13 percent’’ and inserting ‘‘23 percent’’; and

14 (C) by inserting after the second sentence

15 the following: ‘‘The Governmentwide goal for

16 participation by qualified HUBZone small busi17 ness concerns shall be established at not less

18 than 1 percent of the total value of all prime

19 contract awards for fiscal year 1999, not less

20 than 1.5 percent of the total value of all prime

21 contract awards for fiscal year 2000, not less

22 than 2 percent of the total value of all prime

23 contract awards for fiscal year 2001, not less

24 than 2.5 percent of the total value of all prime

25 contract awards for fiscal year 2002, and not
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1 less than 3 percent of the total value of all

2 prime contract awards for fiscal year 2003 and

3 each fiscal year thereafter.’’;

4 (2) in subsection (g)(2)—

5 (A) in the first sentence, by striking ‘‘,, by

6 small business concerns owned and controlled

7 by socially and economically disadvantaged indi8 viduals’’ and inserting ‘‘, by qualified HUBZone

9 small business concerns, by small business con10 cerns owned and controlled by socially and eco11 nomically disadvantaged individuals’’;

12 (B) in the second sentence, by inserting

13 ‘‘qualified HUBZone small business concerns,’’

14 after ‘‘small business concerns,’’; and

15 (C) in the fourth sentence, by striking ‘‘by

16 small business concerns owned and controlled

17 by socially and economically disadvantaged indi18 viduals and participation by small business con19 cerns owned and controlled by women’’ and in20 serting ‘‘by qualified HUBZone small business

21 concerns, by small business concerns owned and

22 controlled by socially and economically dis23 advantaged individuals, and by small business

24 concerns owned and controlled by women’’; and
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1 (3) in subsection (h), by inserting ‘‘qualified

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

3 business concerns,’’ each place that term appears.

4 (c) OFFENSES AND PENALTIES.—Section 16 of the

5 Small Business Act (15 U.S.C. 645) is amended—

6 (1) in subsection (d)(1)—

7 (A) by inserting ‘‘, a ‘qualified HUBZone

8 small business concern’,’’ after ‘‘ ‘small business

9 concern’,’’; and

10 (B) in subparagraph (A), by striking ‘‘sec11 tion 9 or 15’’ and inserting ‘‘section 9, 15, or

12 31’’; and

13 (2) in subsection (e), by inserting ‘‘, a

14 ‘HUBZone small business concern’,’’ after ‘‘ ‘small

15 business concern’,’’.

16 SEC. 604. OTHER TECHNICAL AND CONFORMING AMEND17 MENTS.

18 (a) TITLE 10, UNITED STATES CODE.—Section 2323

19 of title 10, United States Code, is amended—

20 (1) in subsection (a)(1)(A), by inserting before

21 the semicolon the following: ‘‘, and qualified

22 HUBZone small business concerns (as that term is

23 defined in section 3(p) of the Small Business Act)’’;

24 and
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1 (2) in subsection (f)(1), by inserting ‘‘or as a

2 qualified HUBZone small business concern (as that

3 term is defined in section 3(p) of the Small Business

4 Act)’’ after ‘‘(as described in subsection (a))’’.

5 (b) FEDERAL HOME LOAN BANK ACT.—Section

6 21A(b)(13) of the Federal Home Loan Bank Act (12

7 U.S.C. 1441a(b)(13)) is amended—

8 (1) by striking ‘‘concerns and small’’ and in9 serting ‘‘concerns, small’’; and

10 (2) by inserting ‘‘, and qualified HUBZone

11 small business concerns (as that term is defined in

12 section 3(p) of the Small Business Act)’’ after ‘‘dis13 advantaged individuals’’.

14 (c) SMALL BUSINESS ECONOMIC POLICY ACT OF

15 1980.—Section 303(e) of the Small Business Economic

16 Policy Act of 1980 (15 U.S.C. 631b(e)) is amended—

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

18 end;

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

20 the end and inserting ‘‘; and’’; and

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

22 ‘‘(3) qualified HUBZone small business concern

23 (as that term is defined in section 3(p) of the Small

24 Business Act).’’.
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1 (d) SMALL BUSINESS INVESTMENT ACT OF 1958.—

2 Section 411(c)(3)(B) of the Small Business Investment

3 Act of 1958 (15 U.S.C. 694b(c)(3)(B)) is amended by in4 serting before the semicolon the following: ‘‘, or to a quali5 fied HUBZone small business concern, as that term is de6 fined in section 3(p) of the Small Business Act’’.

7 (e) TITLE 31, UNITED STATES CODE.—

8 (1) CONTRACTS FOR COLLECTION SERVICES.—

9 Section 3718(b) of title 31, United States Code, is

10 amended—

11 (A) in paragraph (1)(B), by inserting ‘‘and

12 law firms that are qualified HUBZone small

13 business concerns (as that term is defined in

14 section 3(p) of the Small Business Act)’’ after

15 ‘‘disadvantaged individuals’’; and

16 (B) in paragraph (3)—

17 (i) in the first sentence, by inserting

18 before the period ‘‘and law firms that are

19 qualified HUBZone small business con20 cerns’’;

21 (ii) in subparagraph (A), by striking

22 ‘‘and’’ at the end;

23 (iii) in subparagraph (B), by striking

24 the period at the end and inserting ‘‘;

25 and’’; and
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1 (iv) by adding at the end the follow2 ing:

3 ‘‘(C) the term ‘qualified HUBZone small

4 business concern’ has the meaning given that

5 term in section 3(p) of the Small Business

6 Act.’’.

7 (2) PAYMENTS TO LOCAL GOVERNMENTS.—Sec8 tion 6701(f) of title 31, United States Code, is

9 amended—

10 (A) in paragraph (1)—

11 (i) in subparagraph (A), by striking

12 ‘‘and’’ at the end;

13 (ii) in subparagraph (B), by striking

14 the period at the end and inserting ‘‘;

15 and’’; and

16 (iii) by adding at the end the follow17 ing:

18 ‘‘(C) qualified HUBZone small business

19 concerns.’’; and

20 (B) in paragraph (3)—

21 (i) in subparagraph (A), by striking

22 ‘‘and’’ at the end;

23 (ii) in subparagraph (B), by striking

24 the period at the end and inserting ‘‘;

25 and’’; and
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1 (iii) by adding at the end the follow2 ing:

3 ‘‘(C) the term ‘qualified HUBZone small

4 business concern’ has the meaning given that

5 term in section 3(p) of the Small Business Act

6 (15 U.S.C. 632(o)).’’.

7 (3) REGULATIONS.—Section 7505(c) of title 31,

8 United States Code, is amended by striking ‘‘small

9 business concerns and’’ and inserting ‘‘small busi10 ness concerns, qualified HUBZone small business

11 concerns, and’’.

12 (f) OFFICE OF FEDERAL PROCUREMENT POLICY

13 ACT.—

14 (1) ENUMERATION OF INCLUDED FUNC15 TIONS.—Section 6(d) of the Office of Federal Pro16 curement Policy Act (41 U.S.C. 405(d)) is amend17 ed—

18 (A) in paragraph (11), by inserting ‘‘quali19 fied HUBZone small business concerns (as that

20 term is defined in section 3(p) of the Small

21 Business Act),’’ after ‘‘small businesses,’’; and

22 (B) in paragraph (12), by inserting ‘‘quali23 fied HUBZone small business concerns (as that

24 term is defined in section 3(p) of the Small
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1 Business Act (15 U.S.C. 632(o)),’’ after ‘‘small

2 businesses,’’.

3 (2) PROCUREMENT DATA.—Section 502 of the

4 Women’s Business Ownership Act of 1988 (41

5 U.S.C. 417a) is amended—

6 (A) in subsection (a)—

7 (i) in the first sentence, by inserting

8 ‘‘the number of qualified HUBZone small

9 business concerns,’’ after ‘‘Procurement

10 Policy’’; and

11 (ii) by inserting a comma after

12 ‘‘women’’; and

13 (B) in subsection (b), by inserting after

14 ‘‘section 204 of this Act’’ the following: ‘‘, and

15 the term ‘qualified HUBZone small business

16 concern’ has the meaning given that term in

17 section 3(p) of the Small Business Act (15

18 U.S.C. 632(o)).’’.

19 (g) ENERGY POLICY ACT OF 1992.—Section 3021 of

20 the Energy Policy Act of 1992 (42 U.S.C. 13556) is

21 amended—

22 (1) in subsection (a)—

23 (A) in paragraph (2), by striking ‘‘or’’;

24 (B) in paragraph (3), by striking the pe25 riod and inserting ‘‘; or’’; and
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1 (C) by adding at the end the following:

2 ‘‘(4) qualified HUBZone small business con3 cerns.’’; and

4 (2) in subsection (b), by adding at the end the

5 following:

6 ‘‘(3) The term ‘qualified HUBZone small busi7 ness concern’ has the meaning given that term in

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

9 632(o)).’’.

10 (h) TITLE 49, UNITED STATES CODE.—

11 (1) PROJECT GRANT APPLICATION APPROVAL

12 CONDITIONED ON ASSURANCES ABOUT AIRPORT OP13 ERATION.—Section 47107(e) of title 49, United

14 States Code, is amended—

15 (A) in paragraph (1), by inserting before

16 the period ‘‘or qualified HUBZone small busi17 ness concerns (as that term is defined in section

18 3(p) of the Small Business Act)’’;

19 (B) in paragraph (4)(B), by inserting be20 fore the period ‘‘or as a qualified HUBZone

21 small business concern (as that term is defined

22 in section 3(p) of the Small Business Act)’’;

23 and

24 (C) in paragraph (6), by inserting ‘‘or a

25 qualified HUBZone small business concern (as
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1 that term is defined in section 3(p) of the Small

2 Business Act)’’ after ‘‘disadvantaged individ3 ual’’.

4 (2) MINORITY AND DISADVANTAGED BUSINESS

5 PARTICIPATION.—Section 47113 of title 49, United

6 States Code, is amended—

7 (A) in subsection (a)—

8 (i) in paragraph (1), by striking the

9 period at the end and inserting a semi10 colon;

11 (ii) in paragraph (2), by striking the

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

13 and

14 (iii) by adding at the end the follow15 ing:

16 ‘‘(3) the term ‘qualified HUBZone small busi17 ness concern’ has the meaning given that term in

18 section 3(p) of the Small Business Act (15 U.S.C.

19 632(o)).’’; and

20 (B) in subsection (b), by inserting before

21 the period ‘‘or qualified HUBZone small busi22 ness concerns’’.

23 SEC. 605. REGULATIONS.

24 (a) IN GENERAL.—Not later than 180 days after the

25 date of enactment of this Act, the Administrator of the
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1 Small Business Administration shall publish in the Fed2 eral Register such final regulations as may be necessary

3 to carry out this title and the amendments made by this

4 title.

5 (b) FEDERAL ACQUISITION REGULATION.—Not later

6 than 180 days after the date on which final regulations

7 are published under subsection (a), the Federal Acquisi8 tion Regulatory Council shall amend the Federal Acquisi9 tion Regulation in order to ensure consistency between the

10 Federal Acquisition Regulation, this title and the amend11 ments made by this title, and the final regulations pub12 lished under subsection (a).

13 SEC. 606. REPORT.

14 Not later than March 1, 2000, the Administrator of

15 the Small Business Administration shall submit to the

16 Committees on Small Business of the House of Represent17 atives and the Senate a report on the implementation of

18 the HUBZone program established under section 31 of the

19 Small Business Act (as amended by this title) and the de20 gree to which the HUBZone program has resulted in in21 creased employment opportunities and an increased level

22 of investment in HUBZones (as that term is defined in

23 section 3(p) of the Small Business Act, as added by this

24 title).
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1 SEC. 607. AUTHORIZATION OF APPROPRIATIONS.

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

3 note) (as amended by section 101 of this Act) is amend4 ed—

5 (1) in subsection (c), by adding at the end the

6 following:

7 ‘‘(3) HUBZONE PROGRAM.—There are author8 ized to be appropriated to the Administration to

9 carry out the program under section 31, $5,000,000

10 for fiscal year 1998.’’;

11 (2) in subsection (d), by adding at the end the

12 following:

13 ‘‘(3) HUBZONE PROGRAM.—There are author14 ized to be appropriated to the Administration to

15 carry out the program under section 31, $5,000,000

16 for fiscal year 1999.’’; and

17 (3) in subsection (e), by adding at the end the

18 following:

19 ‘‘(3) HUBZONE PROGRAM.—There are author20 ized to be appropriated to the Administration to
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1 carry out the program under section 31, $5,000,000

2 for fiscal year 2000.’’.

Passed the Senate September 9, 1997.

Attest:

Secretary.
105TH CONGRESS

1ST SESSION S. 1139

AN ACT

To reauthorize the programs of the Small Business

Administration, and for other purposes.