In the Senate of the United States,

October 31, 1997.

Resolved, That the Senate agree to the amendment of

the House of Representatives to the bill (S. 1139) entitled

‘‘An Act to reauthorize the programs of the Small Business

Administration, and for other purposes.’’ with the following

SENATE AMENDMENT TO HOUSE AMENDMENT:

In lieu of the matter proposed to be inserted by the

House amendment to the text of the bill, insert:

1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

3 ‘‘Small Business Reauthorization Act of 1997’’.

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

5 this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Definitions.

Sec. 3. Effective date.

TITLE I—AUTHORIZATIONS

Sec. 101. Authorizations.
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TITLE II—FINANCIAL ASSISTANCE

Subtitle A—Microloan Program

Sec. 201. Microloan program.

Sec. 202. Welfare-to-work microloan initiative.

Subtitle B—Small Business Investment Company Program

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

Sec. 212. Underserved areas.

Sec. 213. Private capital.

Sec. 214. Fees.

Sec. 215. Small business investment company program reform.

Sec. 216. 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.

Subtitle D—Miscellaneous Provisions

Sec. 231. Background check of loan applicants.

Sec. 232. Report on increased lender approval, servicing, foreclosure, liquidation,

and litigation of section 7(a) loans.

Sec. 233. Completion of planning for loan monitoring system.

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. National Women’s Business Council procurement project.

Sec. 307. Studies and other research.

Sec. 308. Women’s business centers.

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.

Sec. 405. Technical amendments.

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.

Sec. 415. Evaluating subcontract participation in awarding contracts.

Sec. 416. Improved notice of subcontracting opportunities.
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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.

Sec. 508. Very small business concerns.

Sec. 509. Trade assistance program for small business concerns adversely affected

by NAFTA.

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.

TITLE VII—SERVICE DISABLED VETERANS

Sec. 701. Purposes.

Sec. 702. Definitions.

Sec. 703. Report by Small Business Administration.

Sec. 704. Information collection.

Sec. 705. State of small business report.

Sec. 706. Loans to veterans.

Sec. 707. Entrepreneurial training, counseling, and management assistance.

Sec. 708. Grants for eligible veterans’ outreach programs.

Sec. 709. Outreach for eligible veterans.

1 SEC. 2. DEFINITIONS.

2 In this Act—

3 (1) the term ‘‘Administration’’ means the Small

4 Business Administration;

5 (2) the term ‘‘Administrator’’ means the Admin6 istrator of the Small Business Administration;

7 (3) the term ‘‘Committees’’ means the Commit8 tees on Small Business of the House of Representa9 tives and the Senate; and
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1 (4) the term ‘‘small business concern’’ has the

2 meaning given the term in section 3 of the Small

3 Business Act (15 U.S.C. 632).

4 SEC. 3. EFFECTIVE DATE.

5 This Act and the amendments made by this Act shall

6 take effect on October 1, 1997.

7 TITLE I—AUTHORIZATIONS

8 SEC. 101. AUTHORIZATIONS.

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

10 note) is amended by striking subsections (c) through (q) and

11 inserting the following:

12 ‘‘(c) FISCAL YEAR 1998.—

13 ‘‘(1) PROGRAM LEVELS.—The following program

14 levels are authorized for fiscal year 1998:

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

16 Act, the Administration is authorized to make—

17 ‘‘(i) $40,000,000 in technical assist18 ance grants, as provided in section 7(m);

19 and

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

21 provided in section 7(m).

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

23 Act, the Administration is authorized to make

24 $16,040,000,000 in deferred participation loans
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1 and other financings. Of such sum, the Adminis2 tration is authorized to make—

3 ‘‘(i) $12,000,000,000 in general busi4 ness loans as provided in section 7(a);

5 ‘‘(ii) $3,000,000,000 in financings as

6 provided in section 7(a)(13) of this Act and

7 section 504 of the Small Business Invest8 ment Act of 1958;

9 ‘‘(iii) $1,000,000,000 in loans as pro10 vided in section 7(a)(21); and

11 ‘‘(iv) $40,000,000 in loans as provided

12 in section 7(m).

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

14 III of the Small Business Investment Act of

15 1958, the Administration is authorized to

16 make—

17 ‘‘(i) $700,000,000 in purchases of par18 ticipating securities; and

19 ‘‘(ii) $600,000,000 in guarantees of de20 bentures.

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

22 B of title IV of the Small Business Investment

23 Act of 1958, the Administration is authorized to

24 enter into guarantees not to exceed

25 $2,000,000,000, of which not more than
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1 $650,000,000 may be in bonds approved pursu2 ant to section 411(a)(3) of that Act.

3 ‘‘(E) The Administration is authorized to

4 make grants or enter into cooperative agree5 ments—

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

7 Executives program authorized by section

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

9 ‘‘(ii) for activities of small business de10 velopment centers pursuant to section

11 21(c)(3)(G), $15,000,000, to remain avail12 able until expended.

13 ‘‘(2) ADDITIONAL AUTHORIZATIONS.—

14 ‘‘(A) There are authorized to be appro15 priated to the Administration for fiscal year

16 1998 such sums as may be necessary to carry out

17 this Act, including administrative expenses and

18 necessary loan capital for disaster loans pursu19 ant to section 7(b), and to carry out the Small

20 Business Investment Act of 1958, including sala21 ries and expenses of the Administration.

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

23 for fiscal year 1998—

24 ‘‘(i) no funds are authorized to be pro25 vided to carry out the loan program author-
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1 ized by section 7(a)(21) except by transfer

2 from another Federal department or agency

3 to the Administration, unless the program

4 level authorized for general business loans

5 under paragraph (1)(B)(i) is fully funded;

6 and

7 ‘‘(ii) the Administration may not ap8 prove loans on behalf of the Administration

9 or on behalf of any other department or

10 agency, by contract or otherwise, under

11 terms and conditions other than those spe12 cifically authorized under this Act or the

13 Small Business Investment Act of 1958, ex14 cept that it may approve loans under sec15 tion 7(a)(21) of this Act in gross amounts

16 of not more than $1,250,000.

17 ‘‘(d) FISCAL YEAR 1999.—

18 ‘‘(1) PROGRAM LEVELS.—The following program

19 levels are authorized for fiscal year 1999:

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

21 Act, the Administration is authorized to make—

22 ‘‘(i) $40,000,000 in technical assist23 ance grants as provided in section 7(m);

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

2 provided in section 7(m).

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

4 Act, the Administration is authorized to make

5 $17,540,000,000 in deferred participation loans

6 and other financings. Of such sum, the Adminis7 tration is authorized to make—

8 ‘‘(i) $13,000,000,000 in general busi9 ness loans as provided in section 7(a);

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

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

12 section 504 of the Small Business Invest13 ment Act of 1958;

14 ‘‘(iii) $1,000,000,000 in loans as pro15 vided in section 7(a)(21); and

16 ‘‘(iv) $40,000,000 in loans as provided

17 in section 7(m).

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

19 III of the Small Business Investment Act of

20 1958, the Administration is authorized to

21 make—

22 ‘‘(i) $800,000,000 in purchases of par23 ticipating securities; and

24 ‘‘(ii) $700,000,000 in guarantees of de25 bentures.
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1 ‘‘(D) For the programs authorized by part

2 B of title IV of the Small Business Investment

3 Act of 1958, the Administration is authorized to

4 enter into guarantees not to exceed

5 $2,000,000,000, of which not more than

6 $650,000,000 may be in bonds approved pursu7 ant to section 411(a)(3) of that Act.

8 ‘‘(E) The Administration is authorized to

9 make grants or enter cooperative agreements—

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

11 Executives program authorized by section

12 8(b)(1), $4,500,000; and

13 ‘‘(ii) for activities of small business de14 velopment centers pursuant to section

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

16 remain available until expended.

17 ‘‘(2) ADDITIONAL AUTHORIZATIONS.—

18 ‘‘(A) There are authorized to be appro19 priated to the Administration for fiscal year

20 1999 such sums as may be necessary to carry out

21 this Act, including administrative expenses and

22 necessary loan capital for disaster loans pursu23 ant to section 7(b), and to carry out the Small

24 Business Investment Act of 1958, including sala25 ries and expenses of the Administration.
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1 ‘‘(B) Notwithstanding subparagraph (A),

2 for fiscal year 1999—

3 ‘‘(i) no funds are authorized to be pro4 vided to carry out the loan program author5 ized by section 7(a)(21) except by transfer

6 from another Federal department or agency

7 to the Administration, unless the program

8 level authorized for general business loans

9 under paragraph (1)(B)(i) is fully funded;

10 and

11 ‘‘(ii) the Administration may not ap12 prove loans on behalf of the Administration

13 or on behalf of any other department or

14 agency, by contract or otherwise, under

15 terms and conditions other than those spe16 cifically authorized under this Act or the

17 Small Business Investment Act of 1958, ex18 cept that it may approve loans under sec19 tion 7(a)(21) of this Act in gross amounts

20 of not more than $1,250,000.

21 ‘‘(e) FISCAL YEAR 2000.—

22 ‘‘(1) PROGRAM LEVELS.—The following program

23 levels are authorized for fiscal year 2000:

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

25 Act, the Administration is authorized to make—
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1 ‘‘(i) $40,000,000 in technical assist2 ance grants as provided in section 7(m);

3 and

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

5 provided in section 7(m).

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

7 Act, the Administration is authorized to make

8 $20,040,000,000 in deferred participation loans

9 and other financings. Of such sum, the Adminis10 tration is authorized to make—

11 ‘‘(i) $14,500,000,000 in general busi12 ness loans as provided in section 7(a);

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

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

15 section 504 of the Small Business Invest16 ment 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 provided

20 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) $900,000,000 in purchases of par2 ticipating securities; and

3 ‘‘(ii) $800,000,000 in guarantees of de4 bentures.

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 to

8 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 cooperative agreements—

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

15 Executives program authorized by section

16 8(b)(1), $5,000,000; and

17 ‘‘(ii) for activities of small business de18 velopment centers pursuant to section

19 21(c)(3)(G), not to exceed $15,000,000, to

20 remain available until expended.

21 ‘‘(2) ADDITIONAL AUTHORIZATIONS.—

22 ‘‘(A) There are authorized to be appro23 priated to the Administration for fiscal year

24 2000 such sums as may be necessary to carry out

25 this Act, including administrative expenses and
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1 necessary loan capital for disaster loans pursu2 ant to section 7(b), and to carry out the Small

3 Business Investment Act of 1958, including sala4 ries and expenses of the Administration.

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

6 for fiscal year 2000—

7 ‘‘(i) no funds are authorized to be pro8 vided to carry out the loan program author9 ized by section 7(a)(21) except by transfer

10 from another Federal department or agency

11 to the Administration, unless the program

12 level authorized for general business loans

13 under paragraph (1)(B)(i) is fully funded;

14 and

15 ‘‘(ii) the Administration may not ap16 prove loans on behalf of the Administration

17 or on behalf of any other department or

18 agency, by contract or otherwise, under

19 terms and conditions other than those spe20 cifically authorized under this Act or the

21 Small Business Investment Act of 1958, ex22 cept that it may approve loans under sec23 tion 7(a)(21) of this Act in gross amounts

24 of not more than $1,250,000.’’.
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1 TITLE II—FINANCIAL

2 ASSISTANCE

3 Subtitle A—Microloan Program

4 SEC. 201. MICROLOAN PROGRAM.

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

6 Business Act (15 U.S.C. 636(m)(3)(C)) is amended by strik7 ing ‘‘$2,500,000’’ and inserting ‘‘$3,500,000’’.

8 (b) LOAN LOSS RESERVE FUND.—Section 7(m)(3)(D)

9 of the Small Business Act (15 U.S.C. 636(m)(3)(D)) is

10 amended by striking clauses (i) and (ii), and inserting the

11 following:

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

13 intermediary’s participation in the pro14 gram under this subsection, at a level equal

15 to not more than 15 percent of the outstand16 ing balance of the notes receivable owed to

17 the intermediary; and

18 ‘‘(ii) in each year of participation

19 thereafter, at a level equal to not more than

20 the greater of—

21 ‘‘(I) 2 times an amount reflecting

22 the total losses of the intermediary as

23 a result of participation in the pro24 gram under this subsection, as deter-
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1 mined by the Administrator on a case2 by-case basis; or

3 ‘‘(II) 10 percent of the outstand4 ing balance of the notes receivable owed

5 to the intermediary.’’.

6 (c) AUTHORIZATION OF APPROPRIATIONS.—Section

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

8 amended—

9 (1) in the subsection heading, by striking ‘‘DEM10 ONSTRATION’’;

11 (2) by striking ‘‘Demonstration’’ each place that

12 term appears;

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

14 term appears; and

15 (4) in paragraph (12), by striking ‘‘during fiscal

16 years 1995 through 1997’’ and inserting ‘‘during fis17 cal years 1998 through 2000’’.

18 (d) TECHNICAL ASSISTANCE GRANTS.—Section 7(m)

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

20 (1) in paragraph (4)(E)—

21 (A) by striking ‘‘Each intermediary’’ and

22 inserting the following:

23 ‘‘(i) IN GENERAL.—Each

24 intermediary’’;
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1 (B) by striking ‘‘15’’ and inserting ‘‘25’’;

2 and

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

4 ‘‘(ii) TECHNICAL ASSISTANCE.—An

5 intermediary may expend not more than 25

6 percent of the funds received under para7 graph (1)(B)(ii) to enter into third party

8 contracts for the provision of technical as9 sistance.’’; and

10 (2) in paragraph (5)(A)—

11 (A) by striking ‘‘in each of the 5 years of

12 the demonstration program established under

13 this subsection,’’; and

14 (B) by striking ‘‘for terms of up to 5 years’’

15 and inserting ‘‘annually’’.

16 SEC. 202. WELFARE-TO-WORK MICROLOAN INITIATIVE.

17 (a) INITIATIVE.—Section 7(m) of the Small Business

18 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 initiative, which shall be administered

3 by the Administration, in order to test the fea4 sibility of supplementing the technical assistance

5 grants provided under clauses (ii) and (iii) of

6 subparagraph (B) to individuals who are receiv7 ing assistance under the State program funded

8 under part A of title IV of the Social Security

9 Act (42 U.S.C. 601 et seq.), or under any com10 parable State funded means tested program of

11 assistance for low-income individuals, in order

12 to adequately assist those individuals in—

13 ‘‘(I) establishing small businesses; and

14 ‘‘(II) eliminating their dependence on

15 that assistance.’’;

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

17 following:

18 ‘‘(F) SUPPLEMENTAL GRANT.—

19 ‘‘(i) IN GENERAL.—The Administra20 tion may accept any funds transferred to

21 the Administration from other departments

22 or agencies of the Federal Government to

23 make grants in accordance with this sub24 paragraph and section 202(b) of the Small

25 Business Reauthorization Act of 1997 to
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1 participating intermediaries and technical

2 assistance providers under paragraph (5),

3 for use in accordance with clause (iii) to

4 provide additional technical assistance and

5 related services to recipients of assistance

6 under a State program described in para7 graph (1)(A)(iv) at the time they initially

8 apply for assistance under this subpara9 graph.

10 ‘‘(ii) ELIGIBLE RECIPIENTS; GRANT

11 AMOUNTS.—In making grants under this

12 subparagraph, the Administration may se13 lect, from among participating

14 intermediaries and technical assistance pro15 viders described in clause (i), not more than

16 20 grantees in fiscal year 1998, not more

17 than 25 grantees in fiscal year 1999, and

18 not more than 30 grantees in fiscal year

19 2000, each of whom may receive a grant

20 under this subparagraph in an amount not

21 to exceed $200,000 per year.

22 ‘‘(iii) USE OF GRANT AMOUNTS.—

23 Grants under this subparagraph—

24 ‘‘(I) are in addition to other

25 grants provided under this subsection
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1 and shall not require the contribution

2 of matching amounts as a condition of

3 eligibility; and

4 ‘‘(II) may be used by a grantee—

5 ‘‘(aa) to pay or reimburse a

6 portion of child care and trans7 portation costs of recipients of as8 sistance described in clause (i), to

9 the extent such costs are not other10 wise paid by State block grants

11 under the Child Care Development

12 Block Grant Act of 1990 (42

13 U.S.C. 9858 et seq.) or under part

14 A of title IV of the Social Security

15 Act (42 U.S.C. 601 et seq.); and

16 ‘‘(bb) for marketing, manage17 ment, and technical assistance to

18 recipients of assistance described

19 in clause (i).

20 ‘‘(iv) MEMORANDUM OF UNDERSTAND21 ING.—Prior to accepting any transfer of

22 funds under clause (i) from a department or

23 agency of the Federal Government, the Ad24 ministration shall enter into a Memoran-
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1 dum of Understanding with the department

2 or agency, which shall—

3 ‘‘(I) specify the terms and condi4 tions of the grants under this subpara5 graph; and

6 ‘‘(II) provide for appropriate

7 monitoring of expenditures by each

8 grantee under this subparagraph and

9 each recipient of assistance described

10 in clause (i) who receives assistance

11 from a grantee under this subpara12 graph, in order to ensure compliance

13 with this subparagraph by those grant14 ees and recipients of assistance.’’;

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

16 following:

17 ‘‘(E) ESTABLISHMENT OF CHILD CARE OR

18 TRANSPORTATION BUSINESSES.—In addition to

19 other eligible small businesses concerns, borrow20 ers under any program under this subsection

21 may include individuals who will use the loan

22 proceeds to establish for-profit or nonprofit child

23 care establishments or businesses providing for24 profit transportation services.’’;

25 (4) in paragraph (9)—
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1 (A) by striking the paragraph designation

2 and paragraph heading and inserting the follow3 ing:

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

5 TECHNICAL ASSISTANCE, AND RELATED SERVICES.—’’;

6 and

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

8 ‘‘(C) WELFARE-TO-WORK MICROLOAN INI9 TIATIVE.—Of amounts made available to carry

10 out the welfare-to-work microloan initiative

11 under paragraph (1)(A)(iv) in any fiscal year,

12 the Administration may use not more than 5

13 percent to provide technical assistance, either di14 rectly or through contractors, to welfare-to-work

15 microloan initiative grantees, to ensure that, as

16 grantees, they have the knowledge, skills, and un17 derstanding of microlending and welfare-to-work

18 transition, and other related issues, to operate a

19 successful welfare-to-work microloan initiative.’’;

20 and

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

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

23 MICROLOAN INITIATIVE.—On January 31, 1999, and

24 annually thereafter, the Administration shall submit

25 to the Committees on Small Business of the House of
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1 Representatives and the Senate a report on any mon2 ies distributed pursuant to paragraph (4)(F).’’.

3 (b) TRANSFER OF FUNDS.—

4 (1) IN GENERAL.—No funds are authorized to be

5 appropriated or otherwise provided to carry out the

6 grant program under section 7(m)(4)(F) of the Small

7 Business Act (15 U.S.C. 636(m)(4)(F)) (as added by

8 this section), except by transfer from another depart9 ment or agency of the Federal Government to the Ad10 ministration in accordance with this subsection.

11 (2) LIMITATION ON AMOUNTS.—The total

12 amount transferred to the Administration from other

13 departments and agencies of the Federal Government

14 to carry out the grant program under section

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

16 636(m)(4)(F)) (as added by this section) shall not ex17 ceed—

18 (A) $3,000,000 for fiscal year 1998;

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

20 (C) $5,000,000 for fiscal year 2000.
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1 Subtitle B—Small Business

2 Investment Company Program

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

4 ADMINISTRATOR.

5 Section 20(a)(2) of the Small Business Act (15 U.S.C.

6 631 note) is amended in the last sentence by striking ‘‘the

7 following fiscal year’’ and inserting ‘‘any 1 or more of the

8 4 subsequent fiscal years’’.

9 SEC. 212. UNDERSERVED AREAS.

10 Section 301(c)(4)(B) of the Small Business Investment

11 Act of 1958 (15 U.S.C. 681(c)(4)(B)) is amended to read

12 as follows:

13 ‘‘(B) LEVERAGE.—An applicant licensed

14 pursuant to the exception provided in this para15 graph shall not be eligible to receive leverage as

16 a licensee until the applicant satisfies the re17 quirements of section 302(a), unless the appli18 cant—

19 ‘‘(i) files an application for a license

20 not later than 180 days after the date of en21 actment of the Small Business Reauthoriza22 tion Act of 1997;

23 ‘‘(ii) is located in a State that is not

24 served by a licensee; and
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1 ‘‘(iii) agrees to be limited to 1 tier of

2 leverage available under section 302(b),

3 until the applicant meets the requirements

4 of section 302(a).’’.

5 SEC. 213. PRIVATE CAPITAL.

6 Section 103(9)(B)(iii) of the Small Business Invest7 ment Act of 1958 (15 U.S.C. 662(9)(B)(iii)) is amended—

8 (1) by redesignating subclauses (I) and (II) as

9 subclauses (II) and (III), respectively; and

10 (2) by inserting before subclause (II) (as redesig11 nated) the following:

12 ‘‘(I) funds obtained from the busi13 ness revenues (excluding any govern14 mental appropriation) of any federally

15 chartered or government-sponsored cor16 poration established prior to October 1,

17 1987;’’.

18 SEC. 214. FEES.

19 Section 301 of the Small Business Investment Act of

20 1958 (15 U.S.C. 681) is amended by adding at the end the

21 following:

22 ‘‘(e) FEES.—

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

24 prescribe fees to be paid by each applicant for a li-
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1 cense to operate as a small business investment com2 pany under this Act.

3 ‘‘(2) USE OF AMOUNTS.—Fees collected under

4 this subsection—

5 ‘‘(A) shall be deposited in the account for

6 salaries and expenses of the Administration; and

7 ‘‘(B) are authorized to be appropriated sole8 ly to cover the costs of licensing examinations.’’.

9 SEC. 215. SMALL BUSINESS INVESTMENT COMPANY PRO10 GRAM REFORM.

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

12 Business Investment Act of 1958 (15 U.S.C. 682(b)) is

13 amended by striking ‘‘1956,’’ and all that follows before the

14 period and inserting the following: ‘‘1956, any national

15 bank, or any member bank of the Federal Reserve System

16 or nonmember insured bank to the extent permitted under

17 applicable State law, may invest in any 1 or more small

18 business investment companies, or in any entity established

19 to invest solely in small business investment companies, ex20 cept that in no event shall the total amount of such invest21 ments of any such bank exceed 5 percent of the capital and

22 surplus of the bank’’.

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

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

25 amended—
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1 (1) in subsection (b)—

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

3 the following:

4 ‘‘(D)(i) The dollar amounts in subpara5 graphs (A), (B), and (C) shall be adjusted annu6 ally to reflect increases in the Consumer Price

7 Index established by the Bureau of Labor Statis8 tics of the Department of Labor.

9 ‘‘(ii) The initial adjustments made under

10 this subparagraph after the date of enactment of

11 the Small Business Reauthorization Act of 1997

12 shall reflect only increases from March 31,

13 1993.’’; and

14 (B) by striking paragraph (4) and inserting

15 the following:

16 ‘‘(4) MAXIMUM AGGREGATE AMOUNT OF LEVER17 AGE.—

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

19 subparagraph (B), the aggregate amount of out20 standing leverage issued to any company or com21 panies that are commonly controlled (as deter22 mined by the Administrator) may not exceed

23 $90,000,000, as adjusted annually for increases

24 in the Consumer Price Index.
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1 ‘‘(B) EXCEPTIONS.—The Administrator

2 may, on a case-by-case basis—

3 ‘‘(i) approve an amount of leverage

4 that exceeds the amount described in sub5 paragraph (A) for companies under com6 mon control; and

7 ‘‘(ii) impose such additional terms and

8 conditions as the Administrator determines

9 to be appropriate to minimize the risk of

10 loss to the Administration in the event of

11 default.

12 ‘‘(C) APPLICABILITY OF OTHER PROVI13 SIONS.—Any leverage that is issued to a com14 pany or companies commonly controlled in an

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

16 result of an increase in the Consumer Price

17 Index or a decision of the Administrator, is sub18 ject to subsection (d).’’; and

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

20 following:

21 ‘‘(d) REQUIRED CERTIFICATIONS.—

22 ‘‘(1) IN GENERAL.—The Administrator shall re23 quire each licensee, as a condition of approval of an

24 application for leverage, to certify in writing—
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1 ‘‘(A) for licensees with leverage less than or

2 equal to $90,000,000, that not less than 20 per3 cent of the licensee’s aggregate dollar amount of

4 financings will be provided to smaller enter5 prises; and

6 ‘‘(B) for licensees with leverage in excess of

7 $90,000,000, that, in addition to satisfying the

8 requirements of subparagraph (A), 100 percent

9 of the licensee’s aggregate dollar amount of

10 financings made in whole or in part with lever11 age in excess of $90,000,000 will be provided to

12 smaller enterprises (as defined in section

13 103(12)).

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

15 under common control (as determined by the Admin16 istrator) shall be considered to be a single licensee for

17 purposes of determining both the applicability of and

18 compliance with the investment percentage require19 ments of this subsection.’’.

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

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

22 683(g)(8)) is amended by adding at the end the following:

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

24 this paragraph at the end of any calendar quarter based

25 on a quarterly estimate of the maximum tax liability. If
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1 a company makes 1 or more quarterly distributions for a

2 calendar year, and the aggregate amount of those distribu3 tions exceeds the maximum amount that the company could

4 have distributed based on a single annual computation, any

5 subsequent distribution by the company under this para6 graph shall be reduced by an amount equal to the excess

7 amount distributed.’’.

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

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

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

11 before the period and inserting the following: ‘‘in the follow12 ing manner: 1 percent upon the date on which the Adminis13 tration enters into any commitment for such leverage with

14 the licensee, and the balance of 2 percent (or 3 percent if

15 no commitment has been entered into by the Administra16 tion) on the date on which the leverage is drawn by the

17 licensee’’.

18 (e) PERIODIC ISSUANCE OF GUARANTEES AND TRUST

19 CERTIFICATES.—Section 320 of the Small Business Invest20 ment Act of 1958 (15 U.S.C. 687m) is amended by striking

21 ‘‘three months’’ and inserting ‘‘6 months’’.

22 SEC. 216. EXAMINATION FEES.

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

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

25 the first sentence the following: ‘‘Fees collected under this
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1 subsection shall be deposited in the account for salaries and

2 expenses of the Administration, and are authorized to be

3 appropriated solely to cover the costs of examinations and

4 other program oversight activities.’’.

5 Subtitle C—Certified Development

6 Company Program

7 SEC. 221. LOANS FOR PLANT ACQUISITION, CONSTRUC8 TION, CONVERSION, AND EXPANSION.

9 Section 502 of the Small Business Investment Act of

10 1958 (15 U.S.C. 696) is amended—

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

12 following:

13 ‘‘(1) USE OF PROCEEDS.—The proceeds of any

14 such loan shall be used solely by the borrower to assist

15 1 or more identifiable small business concerns and for

16 a sound business purpose approved by the Adminis17 tration.’’;

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

19 following:

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

21 financing may be used to meet the requirements

22 of subparagraph (B), if the seller subordinates

23 the interest of the seller in the property to the de24 benture guaranteed by the Administration.
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1 ‘‘(E) COLLATERALIZATION.—The collateral

2 provided by the small business concern shall gen3 erally include a subordinate lien position on the

4 property being financed under this title, and is

5 only 1 of the factors to be evaluated in the credit

6 determination. Additional collateral shall be re7 quired only if the Administration determines, on

8 a case by case basis, that additional security is

9 necessary to protect the interest of the Govern10 ment.’’; and

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

12 ‘‘(5) LIMITATION ON LEASING.—In addition to

13 any portion of the project permitted to be leased

14 under paragraph (4), not to exceed 20 percent of the

15 project may be leased by the assisted small business

16 to 1 or more other tenants, if the assisted small busi17 ness occupies permanently and uses not less than a

18 total of 60 percent of the space in the project after the

19 execution of any leases authorized under this sec20 tion.’’.

21 SEC. 222. DEVELOPMENT COMPANY DEBENTURES.

22 Section 503 of the Small Business Investment Act of

23 1958 (15 U.S.C. 697) is amended—

24 (1) in subsection (b)(7), by striking subpara25 graph (A) and inserting the following:
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1 ‘‘(A) assesses and collects a fee, which shall

2 be payable by the borrower, in an amount estab3 lished annually by the Administration, which

4 amount shall not exceed the lesser of—

5 ‘‘(i) 0.9375 percent per year of the out6 standing balance of the loan; and

7 ‘‘(ii) the minimum amount necessary

8 to reduce the cost (as defined in section 502

9 of the Federal Credit Reform Act of 1990)

10 to the Administration of purchasing and

11 guaranteeing debentures under this Act to

12 zero; and’’; and

13 (2) in subsection (f), by striking ‘‘1997’’ and in14 serting ‘‘2000’’.

15 SEC. 223. PREMIER CERTIFIED LENDERS PROGRAM.

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

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

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

19 15’’;

20 (2) in subsection (b)—

21 (A) in paragraph (2)—

22 (i) in the matter preceding subpara23 graph (A), by striking ‘‘if such company’’;

24 (ii) by striking subparagraphs (A) and

25 (B) and inserting the following:
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1 ‘‘(A) if the company is an active certified

2 development company in good standing and has

3 been an active participant in the accredited

4 lenders program during the entire 12-month pe5 riod preceding the date on which the company

6 submits an application under paragraph (1), ex7 cept that the Administration may waive this re8 quirement if the company is qualified to partici9 pate in the accredited lenders program;

10 ‘‘(B) if the company has a history of—

11 ‘‘(i) submitting to the Administration

12 adequately analyzed debenture guarantee

13 application packages; and

14 ‘‘(ii) of properly closing section 504

15 loans and servicing its loan portfolio;’’;

16 (iii) in subparagraph (C)—

17 (I) by inserting ‘‘if the company’’

18 after ‘‘(C)’’; and

19 (II) by striking the period at the

20 end and inserting ‘‘; and’’; and

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

22 ‘‘(D) the Administrator determines, with re23 spect to the company, that the loss reserve estab24 lished in accordance with subsection (c)(2) is

25 sufficient for the company to meet its obligations
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1 to protect the Federal Government from risk of

2 loss.’’; and

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

4 ‘‘(3) APPLICABILITY OF CRITERIA AFTER DES5 IGNATION.—The Administrator may revoke the des6 ignation of a certified development company as a pre7 mier certified lender under this section at any time,

8 if the Administrator determines that the certified de9 velopment company does not meet any requirement

10 described in subparagraphs (A) through (D) of para11 graph (2).’’;

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

13 following:

14 ‘‘(c) LOSS RESERVE.—

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

16 as a premier certified lender shall establish a loss re17 serve for financing approved pursuant to this section.

18 ‘‘(2) AMOUNT.—The amount of each loss reserve

19 established under paragraph (1) shall be 10 percent of

20 the amount of the company’s exposure, as determined

21 under subsection (b)(2)(C).

22 ‘‘(3) ASSETS.—Each loss reserve established

23 under paragraph (1) shall be comprised of—

24 ‘‘(A) segregated funds on deposit in an ac25 count or accounts with a federally insured depos-
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1 itory institution or institutions selected by the

2 company, subject to a collateral assignment in

3 favor of, and in a format acceptable to, the Ad4 ministration;

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

6 with a collateral assignment in favor of, and a

7 commercially reasonable format acceptable to,

8 the Administration; or

9 ‘‘(C) any combination of the assets described

10 in subparagraphs (A) and (B).

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

12 contributions to the loss reserve, either cash or letters

13 of credit as provided above, in the following amounts

14 and at the following intervals:

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

16 ‘‘(B) 25 percent additional not later than 1

17 year after a debenture is closed.

18 ‘‘(C) 25 percent additional not later than 2

19 years after a debenture is closed.

20 ‘‘(5) REPLENISHMENT.—If a loss has been sus21 tained by the Administration, any portion of the loss

22 reserve, and other funds provided by the premier com23 pany as necessary, may be used to reimburse the Ad24 ministration for the premier company’s 10 percent

25 share of the loss as provided in subsection (b)(2)(C).
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1 If the company utilizes the reserve, within 30 days it

2 shall replace an equivalent amount of funds.

3 ‘‘(6) DISBURSEMENTS.—The Administration

4 shall allow the certified development company to

5 withdraw from the loss reserve amounts attributable

6 to any debenture that has been repaid.’’;

7 (4) in subsection (d)(1), by striking ‘‘to approve

8 loans’’ and inserting ‘‘to approve, authorize, close,

9 service, foreclose, litigate (except that the Administra10 tion may monitor the conduct of any such litigation

11 to which a premier certified lender is a party), and

12 liquidate loans’’;

13 (5) in subsection (f), by striking ‘‘State or local’’

14 and inserting ‘‘certified’’;

15 (6) in subsection (g), by striking the subsection

16 heading and inserting the following:

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

18 (7) by striking subsection (h) and inserting the

19 following:

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

21 company participating in the program under this section

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

23 than 50 percent of the loan applications for assistance

24 under section 504 pursuant to the program authorized

25 under this section.’’; and
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1 (8) in subsection (i), by striking ‘‘other lenders’’

2 and inserting ‘‘other lenders, specifically comparing

3 default rates and recovery rates on liquidations’’.

4 (b) REGULATIONS.—The Administrator shall—

5 (1) not later than 150 days after the date of en6 actment of this Act, promulgate regulations to carry

7 out the amendments made by subsection (a); and

8 (2) not later than 180 days after the date of en9 actment of this Act, issue program guidelines and

10 fully implement the amendments made by subsection

11 (a).

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

13 Small Business Reauthorization and Amendments Act of

14 1994 (15 U.S.C. 697e note) is amended by striking ‘‘October

15 1, 1997’’ and inserting ‘‘October 1, 2000’’.

16 Subtitle D—Miscellaneous

17 Provisions

18 SEC. 231. BACKGROUND CHECK OF LOAN APPLICANTS.

19 Section 7(a) of the Small Business Act (15 U.S.C.

20 636(a)) is amended—

21 (1) by striking ‘‘(a) The Administration’’ and

22 inserting the following:

23 ‘‘(a) LOANS TO SMALL BUSINESS CONCERNS; ALLOW24 ABLE PURPOSES; QUALIFIED BUSINESS; RESTRICTIONS

25 AND LIMITATIONS.—The Administration’’; and
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1 (2) in paragraph (1)—

2 (A) by striking ‘‘(1) No financial’’ and in3 serting the following:

4 ‘‘(1) IN GENERAL.—

5 ‘‘(A) CREDIT ELSEWHERE.—No financial’’;

6 and

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

8 ‘‘(B) BACKGROUND CHECKS.—Prior to the

9 approval of any loan made pursuant to this sub10 section, or section 503 of the Small Business In11 vestment Act of 1958, the Administrator may

12 verify the applicant’s criminal background, or

13 lack thereof, through the best available means,

14 including, if possible, use of the National Crime

15 Information Center computer system at the Fed16 eral Bureau of Investigation.’’.

17 SEC. 232. REPORT ON INCREASED LENDER APPROVAL,

18 SERVICING, FORECLOSURE, LIQUIDATION,

19 AND LITIGATION OF SECTION 7(a) LOANS.

20 (a) IN GENERAL.—

21 (1) SUBMISSION.—Not later than 6 months after

22 the date of enactment of this Act, the Administrator

23 shall submit to the Committees a report on action

24 taken and planned for future reliance on private sec25 tor lender resources to originate, approve, close, serv-
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1 ice, liquidate, foreclose, and litigate loans made under

2 section 7(a) of the Small Business Act.

3 (2) CONTENTS.—The report under this subsection

4 shall address administrative and other steps necessary

5 to achieve the results described in paragraph (1), in6 cluding—

7 (A) streamlining the process for approving

8 lenders and standardizing requirements;

9 (B) establishing uniform reporting require10 ments using on-line automated capabilities to

11 the maximum extent feasible;

12 (C) reducing paperwork through automa13 tion, simplified forms, or incorporation of lend14 er’s forms;

15 (D) providing uniform standards for ap16 proval, closing, servicing, foreclosure, and liq17 uidation;

18 (E) promulgating new regulations or

19 amending existing ones;

20 (F) establishing a timetable for implement21 ing the plan for reliance on private sector lend22 ers;

23 (G) implementing organizational changes at

24 SBA; and
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1 (H) estimating the annual savings that

2 would occur as a result of implementation.

3 (b) CONSULTATION.—In preparing the report under

4 subsection (a), the Administrator shall consult with, among

5 others—

6 (1) borrowers and lenders under section 7(a) of

7 the Small Business Act;

8 (2) small businesses that are potential program

9 participants under section 7(a) of the Small Business

10 Act;

11 (3) financial institutions that are potential pro12 gram lenders under section 7(a) of the Small Business

13 Act; and

14 (4) representative industry associations.

15 SEC. 233. COMPLETION OF PLANNING FOR LOAN MONITOR16 ING SYSTEM.

17 (a) IN GENERAL.—The Administrator shall perform

18 and complete the planning needed to serve as the basis for

19 funding the development and implementation of the com20 puterized loan monitoring system, including—

21 (1) fully defining the system requirement using

22 on-line, automated capabilities to the extent feasible;

23 (2) identifying all data inputs and outputs nec24 essary for timely report generation;
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1 (3) benchmark loan monitoring business proc2 esses and systems against comparable industry proc3 esses and, if appropriate, simplify or redefine work

4 processes based on these benchmarks;

5 (4) determine data quality standards and control

6 systems for ensuring information accuracy;

7 (5) identify an acquisition strategy and work in8 crements to completion;

9 (6) analyze the benefits and costs of alternatives

10 and use to demonstrate the advantage of the final

11 project;

12 (7) ensure that the proposed information system

13 is consistent with the agency’s information architec14 ture; and

15 (8) estimate the cost to system completion, iden16 tifying the essential cost element.

17 (b) REPORT.—

18 (1) IN GENERAL.—On the date that is 6 months

19 after the date of enactment of this Act, the Adminis20 trator shall submit a report on the progress of the Ad21 ministrator in carrying out subsection (a) to—

22 (A) the Committees; and

23 (B) the Comptroller General of the United

24 States.
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1 (2) EVALUATION.—Not later than 28 days after

2 receipt of the report under paragraph (1)(B), the

3 Comptroller General of the United States shall—

4 (A) prepare a written evaluation of the re5 port for compliance with subsection (a); and

6 (B) submit the evaluation to the Commit7 tees.

8 (3) LIMITATION.—None of the funds provided for

9 the purchase of the loan monitoring system may be

10 obligated or expended until 45 days after the date on

11 which the Committees and the Comptroller General of

12 the United States receive the report under paragraph

13 (1).

14 TITLE III—WOMEN’S BUSINESS

15 ENTERPRISES

16 SEC. 301. INTERAGENCY COMMITTEE PARTICIPATION.

17 Section 403 of the Women’s Business Ownership Act

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

19 (1) in subsection (a)(2)(A)—

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

21 1994’’ and inserting ‘‘Act of 1997’’; and

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

23 and who shall report directly to the head of the

24 agency on the status of the activities of the Inter25 agency Committee’’;
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1 (2) in subsection (a)(2)(B), by inserting before

2 the final period the following: ‘‘and shall report di3 rectly to the Administrator on the status of the activi4 ties on the Interagency Committee and shall serve as

5 the Interagency Committee Liaison to the National

6 Women’s Business Council established under section

7 405’’; and

8 (3) in subsection (b), by striking ‘‘and Amend9 ments Act of 1994’’ and inserting ‘‘Act of 1997’’.

10 SEC. 302. REPORTS.

11 Section 404 of the Women’s Business Ownership Act

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

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

14 Administration,’’ after ‘‘transmit’’;

15 (2) by striking paragraph (1) and redesignating

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

17 through (3), respectively; and

18 (3) in paragraph (1), as redesignated, by insert19 ing before the semicolon the following: ‘‘, including a

20 verbatim report on the status of progress of the Inter21 agency Committee in meeting its responsibilities and

22 duties under section 402(a)’’.

23 SEC. 303. COUNCIL DUTIES.

24 Section 406 of the Women’s Business Ownership Act

25 of 1988 (15 U.S.C. 631 note) is amended—
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1 (1) in subsection (c), by inserting after ‘‘Admin2 istrator’’ the following: ‘‘(through the Assistant Ad3 ministrator of the Office of Women’s Business Owner4 ship)’’; and

5 (2) in subsection (d)—

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

7 the end;

8 (B) in paragraph (5), by striking the period

9 at the end and inserting a semicolon; and

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

11 ‘‘(6) not later than 90 days after the last day of

12 each fiscal year, submit to the President and to the

13 Committee on Small Business of the Senate and the

14 Committee on Small Business of the House of Rep15 resentatives, a report containing—

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

17 of the council, including a status report on the

18 Council’s progress toward meeting its duties out19 lined in subsections (a) and (d) of section 406;

20 ‘‘(B) the findings, conclusions, and rec21 ommendations of the Council; and

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

23 such legislation and administrative actions as

24 the Council considers appropriate to promote the
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1 development of small business concerns owned

2 and controlled by women.

3 ‘‘(e) FORM OF TRANSMITTAL.—The information in4 cluded in each report under subsection (d) that is described

5 in subparagraphs (A) through (C) of subsection (d)(6), shall

6 be reported verbatim, together with any separate additional,

7 concurring, or dissenting views of the Administrator.’’.

8 SEC. 304. COUNCIL MEMBERSHIP.

9 Section 407 of the Women’s Business Ownership Act

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

11 (1) in subsection (a), by striking ‘‘and Amend12 ments Act of 1994’’ and inserting ‘‘Act of 1997’’;

13 (2) in subsection (b)—

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

15 1994’’ and inserting ‘‘Act of 1997’’;

16 (B) by inserting after ‘‘the Administrator

17 shall’’ the following: ‘‘, after receiving the rec18 ommendations of the Chairman and the Ranking

19 Member of the Committees on Small Business of

20 the House of Representatives and the Senate,’’;

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

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

23 inserting ‘‘4’’;

24 (E) in paragraph (2), by striking ‘‘2’’ and

25 inserting ‘‘4’’; and
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1 (F) in paragraph (3)—

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

3 (ii) by striking ‘‘national’’; and

4 (iii) by inserting ‘‘, including rep5 resentatives of women’s business center

6 sites’’ before the period at the end;

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

8 both urban and rural areas)’’ after ‘‘geographic’’;

9 (4) by striking subsection (d) and inserting the

10 following:

11 ‘‘(d) TERMS.—Each member of the Council shall be

12 appointed for a term of 3 years, except that, of the initial

13 members appointed to the Council—

14 ‘‘(1) 2 members appointed under subsection

15 (b)(1) shall be appointed for a term of 1 year;

16 ‘‘(2) 2 members appointed under subsection

17 (b)(2) shall be appointed for a term of 1 year; and

18 ‘‘(3) each member appointed under subsection

19 (b)(3) shall be appointed for a term of 2 years.’’; and

20 (5) by striking subsection (f) and inserting the

21 following:

22 ‘‘(f) VACANCIES.—

23 ‘‘(1) IN GENERAL.—A vacancy on the Council

24 shall be filled not later than 30 days after the date

25 on which the vacancy occurs, in the manner in which
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1 the original appointment was made, and shall be sub2 ject to any conditions that applied to the original ap3 pointment.

4 ‘‘(2) UNEXPIRED TERM.—An individual chosen

5 to fill a vacancy shall be appointed for the unexpired

6 term of the member replaced.’’.

7 SEC. 305. AUTHORIZATION OF APPROPRIATIONS.

8 Section 409 of the Women’s Business Ownership Act

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

10 ‘‘SEC. 411. AUTHORIZATION OF APPROPRIATIONS.

11 ‘‘(a) IN GENERAL.—There is authorized to be appro12 priated to carry out this title $600,000, for each of fiscal

13 years 1998 through 2000, of which $200,000 shall be avail14 able in each fiscal year to carry out sections 409 and 410.

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

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

17 expended by the Council before the date on which the Coun18 cil reviews and approves the operating budget of the Council

19 to carry out the responsibilities of the Council for that fiscal

20 year.’’.

21 SEC. 306. NATIONAL WOMEN’S BUSINESS COUNCIL PRO22 CUREMENT PROJECT.

23 The Women’s Business Ownership Act of 1988 (15

24 U.S.C. 631 note) is amended by inserting after section 408

25 the following:
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1 ‘‘SEC. 409. NATIONAL WOMEN’S BUSINESS COUNCIL PRO2 CUREMENT PROJECT.

3 ‘‘(a) FEDERAL PROCUREMENT STUDY.—

4 ‘‘(1) IN GENERAL.—During the first fiscal year

5 for which amounts are made available to carry out

6 this section, the Council shall conduct a study on the

7 award of Federal prime contracts and subcontracts to

8 women-owned businesses, which study shall include—

9 ‘‘(A) an analysis of data collected by Fed10 eral agencies on contract awards to women11 owned businesses;

12 ‘‘(B) a determination of the degree to which

13 individual Federal agencies are in compliance

14 with the 5 percent women-owned business pro15 curement goal established by section 15(g)(1) of

16 the Small Business Act (15 U.S.C. 644(g)(1));

17 ‘‘(C) a determination of the types and

18 amounts of Federal contracts characteristically

19 awarded to women-owned businesses; and

20 ‘‘(D) other relevant information relating to

21 participation of women-owned businesses in Fed22 eral procurement.

23 ‘‘(2) SUBMISSION OF RESULTS.—Not later than

24 12 months after initiating the study under paragraph

25 (1), the Council shall submit to the Committees on

26 Small Business of the House of Representatives and
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1 the Senate, and to the President, the results of the

2 study conducted under paragraph (1).

3 ‘‘(b) BEST PRACTICES REPORT.—Not later than 18

4 months after initiating the study under subsection (a)(1),

5 the Council shall submit to the Committees on Small Busi6 ness of the House of Representatives and the Senate, and

7 to the President, a report, which shall include—

8 ‘‘(1) an analysis of the most successful practices

9 in attracting women-owned businesses as prime con10 tractors and subcontractors by—

11 ‘‘(A) Federal agencies (as supported by

12 findings from the study required under sub13 section (a)(1)) in Federal procurement awards;

14 and

15 ‘‘(B) the private sector; and

16 ‘‘(2) recommendations for policy changes in Fed17 eral procurement practices, including an increase in

18 the Federal procurement goal for women-owned busi19 nesses, in order to maximize the number of women20 owned businesses performing Federal contracts.

21 ‘‘(c) CONTRACT AUTHORITY.—In conducting any

22 study or other research under this section, the Council may

23 contract with 1 or more public or private entities.’’.
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1 SEC. 307. STUDIES AND OTHER RESEARCH.

2 The Women’s Business Ownership Act of 1988 (15

3 U.S.C. 631 note) is amended by inserting after section 409

4 (as added by section 306 of this title) the following:

5 ‘‘SEC. 410. STUDIES AND OTHER RESEARCH.

6 ‘‘(a) IN GENERAL.—To the extent that it does not

7 delay submission of the report under section 409(b), the

8 Council may also conduct such studies and other research

9 relating to the award of Federal prime contracts and sub10 contracts to women-owned businesses, or to issues relating

11 to access to credit and investment capital by women entre12 preneurs, as the Council determines to be appropriate.

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

14 study or other research under this section, the Council may

15 contract with 1 or more public or private entities.’’.

16 SEC. 308. WOMEN’S BUSINESS CENTERS.

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

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

19 ‘‘SEC. 29. WOMEN’S BUSINESS CENTER PROGRAM.

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

21 ‘‘(1) the term ‘Assistant Administrator’ means

22 the Assistant Administrator of the Office of Women’s

23 Business Ownership established under subsection (g);

24 ‘‘(2) the term ‘small business concern owned and

25 controlled by women’, either startup or existing, in26 cludes any small business concern—
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1 ‘‘(A) that is not less than 51 percent owned

2 by 1 or more women; and

3 ‘‘(B) the management and daily business

4 operations of which are controlled by 1 or more

5 women; and

6 ‘‘(3) the term ‘women’s business center site’

7 means the location of—

8 ‘‘(A) a women’s business center; or

9 ‘‘(B) 1 or more women’s business centers, es10 tablished in conjunction with another women’s

11 business center in another location within a

12 State or region—

13 ‘‘(i) that reach a distinct population

14 that would otherwise not be served;

15 ‘‘(ii) whose services are targeted to

16 women; and

17 ‘‘(iii) whose scope, function, and ac18 tivities are similar to those of the primary

19 women’s business center or centers in con20 junction with which it was established.

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

22 financial assistance to private organizations to conduct 5-

23 year projects for the benefit of small business concerns

24 owned and controlled by women. The projects shall pro25 vide—
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1 ‘‘(1) financial assistance, including training and

2 counseling in how to apply for and secure business

3 credit and investment capital, preparing and present4 ing financial statements, and managing cash flow

5 and other financial operations of a business concern;

6 ‘‘(2) management assistance, including training

7 and counseling in how to plan, organize, staff, direct,

8 and control each major activity and function of a

9 small business concern; and

10 ‘‘(3) marketing assistance, including training

11 and counseling in identifying and segmenting domes12 tic and international market opportunities, preparing

13 and executing marketing plans, developing pricing

14 strategies, locating contract opportunities, negotiating

15 contracts, and utilizing varying public relations and

16 advertising techniques.

17 ‘‘(c) CONDITIONS OF PARTICIPATION.—

18 ‘‘(1) NON-FEDERAL CONTRIBUTIONS.—As a con19 dition of receiving financial assistance authorized by

20 this section, the recipient organization shall agree to

21 obtain, after its application has been approved and

22 notice of award has been issued, cash contributions

23 from non-Federal sources as follows:

24 ‘‘(A) in the first and second years, 1 non25 Federal dollar for each 2 Federal dollars;
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1 ‘‘(B) in the third and fourth years, 1 non2 Federal dollar for each Federal dollar; and

3 ‘‘(C) in the fifth year, 2 non-Federal dollars

4 for each Federal dollar.

5 ‘‘(2) FORM OF NON-FEDERAL CONTRIBUTIONS.—

6 Not more than one-half of the non-Federal sector

7 matching assistance may be in the form of in-kind

8 contributions that are budget line items only, includ9 ing office equipment and office space.

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

11 financial assistance authorized pursuant to this sec12 tion may be made by grant, contract, or cooperative

13 agreement and may contain such provision, as nec14 essary, to provide for payments in lump sum or in15 stallments, and in advance or by way of reimburse16 ment. The Administration may disburse up to 25 per17 cent of each year’s Federal share awarded to a recipi18 ent organization after notice of the award has been is19 sued and before the non-Federal sector matching funds

20 are obtained.

21 ‘‘(4) FAILURE TO OBTAIN NON-FEDERAL FUND22 ING.—If any recipient of assistance fails to obtain the

23 required non-Federal contribution during any project,

24 it shall not be eligible thereafter for advance disburse25 ments pursuant to paragraph (3) during the remain-
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1 der of that project, or for any other project for which

2 it is or may be funded by the Administration, and

3 prior to approving assistance to such organization for

4 any other projects, the Administration shall specifi5 cally determine whether the Administration believes

6 that the recipient will be able to obtain the requisite

7 non-Federal funding and enter a written finding set8 ting forth the reasons for making such determination.

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

10 center may enter into a contract with a Federal department

11 or agency to provide specific assistance to women and other

12 underserved small business concerns. Performance of such

13 contract should not hinder the women’s business centers in

14 carrying out the terms of the grant received by the women’s

15 business centers from the Administration.

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

17 organization initially shall submit a 5-year plan to the Ad18 ministration on proposed fundraising and training activi19 ties, and a recipient organization may receive financial as20 sistance under this program for a maximum of 5 years per

21 women’s business center site.

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

23 and rank applicants in accordance with predetermined se24 lection criteria that shall be stated in terms of relative im25 portance. Such criteria and their relative importance shall
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1 be made publicly available and stated in each solicitation

2 for applications made by the Administration. The criteria

3 shall include—

4 ‘‘(1) the experience of the applicant in conduct5 ing programs or ongoing efforts designed to impart or

6 upgrade the business skills of women business owners

7 or potential owners;

8 ‘‘(2) the present ability of the applicant to com9 mence a project within a minimum amount of time;

10 ‘‘(3) the ability of the applicant to provide train11 ing and services to a representative number of women

12 who are both socially and economically disadvan13 taged; and

14 ‘‘(4) the location for the women’s business center

15 site proposed by the applicant.

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

17 ‘‘(1) ESTABLISHMENT.—There is established

18 within the Administration an Office of Women’s

19 Business Ownership, which shall be responsible for the

20 administration of the Administration’s programs for

21 the development of women’s business enterprises (as

22 defined in section 408 of the Women’s Business Own23 ership Act of 1988 (15 U.S.C. 631 note)). The Office

24 of Women’s Business Ownership shall be administered
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1 by an Assistant Administrator, who shall be ap2 pointed by the Administrator.

3 ‘‘(2) ASSISTANT ADMINISTRATOR OF THE OFFICE

4 OF WOMEN’S BUSINESS OWNERSHIP.—

5 ‘‘(A) QUALIFICATION.—The position of As6 sistant Administrator shall be a Senior Execu7 tive Service position under section 3132(a)(2) of

8 title 5, United States Code. The Assistant Ad9 ministrator shall serve as a noncareer appointee

10 (as defined in section 3132(a)(7) of that title).

11 ‘‘(B) RESPONSIBILITIES AND DUTIES.—

12 ‘‘(i) RESPONSIBILITIES.—The respon13 sibilities of the Assistant Administrator

14 shall be to administer the programs and

15 services of the Office of Women’s Business

16 Ownership established to assist women en17 trepreneurs in the areas of—

18 ‘‘(I) starting and operating a

19 small business;

20 ‘‘(II) development of management

21 and technical skills;

22 ‘‘(III) seeking Federal procure23 ment opportunities; and

24 ‘‘(IV) increasing the opportunity

25 for access to capital.
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1 ‘‘(ii) DUTIES.—The Assistant Admin2 istrator shall—

3 ‘‘(I) administer and manage the

4 Women’s Business Center program;

5 ‘‘(II) recommend the annual ad6 ministrative and program budgets for

7 the Office of Women’s Business Owner8 ship (including the budget for the

9 Women’s Business Center program);

10 ‘‘(III) establish appropriate fund11 ing levels therefore;

12 ‘‘(IV) review the annual budgets

13 submitted by each applicant for the

14 Women’s Business Center program;

15 ‘‘(V) select applicants to partici16 pate in the program under this section;

17 ‘‘(VI) implement this section;

18 ‘‘(VII) maintain a clearinghouse

19 to provide for the dissemination and

20 exchange of information between wom21 en’s business centers;

22 ‘‘(VIII) serve as the vice chair23 person of the Interagency Committee

24 on Women’s Business Enterprise;
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1 ‘‘(IX) serve as liaison for the Na2 tional Women’s Business Council; and

3 ‘‘(X) advise the Administrator on

4 appointments to the Women’s Business

5 Council.

6 ‘‘(C) CONSULTATION REQUIREMENTS.—In

7 carrying out the responsibilities and duties de8 scribed in this paragraph, the Assistant Admin9 istrator shall confer with and seek the advice of

10 the Administration officials in areas served by

11 the women’s business centers.

12 ‘‘(h) PROGRAM EXAMINATION.—

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

14 after the date of enactment of the Small Business Re15 authorization Act of 1997, the Administrator shall de16 velop and implement an annual programmatic and

17 financial examination of each women’s business cen18 ter established pursuant to this section.

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

20 or renewing a contract with a women’s business cen21 ter, the Administrator shall consider the results of the

22 examination conducted under paragraph (1).

23 ‘‘(i) CONTRACT AUTHORITY.—The authority of the Ad24 ministrator to enter into contracts shall be in effect for each

25 fiscal year only to the extent and in the amounts as are
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1 provided in advance in appropriations Acts. After the Ad2 ministrator has entered into a contract, either as a grant

3 or a cooperative agreement, with any applicant under this

4 section, it shall not suspend, terminate, or fail to renew or

5 extend any such contract unless the Administrator provides

6 the applicant with written notification setting forth the rea7 sons therefore and affords the applicant an opportunity for

8 a hearing, appeal, or other administrative proceeding under

9 chapter 5 of title 5, United States Code.

10 ‘‘(j) REPORT.—The Administrator shall prepare and

11 submit an annual report to the Committees on Small Busi12 ness of the House of Representatives and the Senate on the

13 effectiveness of all projects conducted under the authority

14 of this section. Such report shall provide information con15 cerning—

16 ‘‘(1) the number of individuals receiving assist17 ance;

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

19 formed;

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

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

22 concerns; and

23 ‘‘(5) the employment increases or decreases of as24 sisted concerns.

25 ‘‘(k) AUTHORIZATION OF APPROPRIATIONS.—
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1 ‘‘(1) IN GENERAL.—There is authorized to be ap2 propriated $8,000,000 for each fiscal year to carry

3 out the projects authorized under this section, of

4 which, for fiscal year 1998, not more than 5 percent

5 may be used for administrative expenses related to the

6 program under this section.

7 ‘‘(2) USE OF AMOUNTS.—Amounts made avail8 able under this subsection for fiscal year 1999, and

9 each fiscal year thereafter, may only be used for grant

10 awards and may not be used for costs incurred by the

11 Administration in connection with the management

12 and administration of the program under this section.

13 ‘‘(3) EXPEDITED ACQUISITION.—Notwithstand14 ing any other provision of law, the Administrator,

15 acting through the Assistant Administrator, may use

16 such expedited acquisition methods as the Adminis17 trator determines to be appropriate to carry out this

18 section, except that the Administrator shall ensure

19 that all small business sources are provided a reason20 able opportunity to submit proposals.’’.

21 (b) APPLICABILITY.—

22 (1) IN GENERAL.—Subject to paragraph (2), any

23 organization conducting a 3-year project under sec24 tion 29 of the Small Business Act (15 U.S.C. 656) (as

25 in effect on the day before the effective date of this
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1 Act) on September 30, 1997, may request an exten2 sion of the term of that project to a total term of 5

3 years. If such an extension is made, the organization

4 shall receive financial assistance in accordance with

5 section 29(c) of the Small Business Act (as amended

6 by this section) subject to procedures established by

7 the Administrator, in coordination with the Assistant

8 Administrator of the Office of Women’s Business

9 Ownership established under section 29 of the Small

10 Business Act (15 U.S.C. 656) (as amended by this

11 section).

12 (2) TERMS OF ASSISTANCE FOR CERTAIN ORGA13 NIZATIONS.—Any organization operating in the third

14 year of a 3-year project under section 29 of the Small

15 Business Act (15 U.S.C. 656) (as in effect on the day

16 before the effective date of this Act) on September 30,

17 1997, may request an extension of the term of that

18 project to a total term of 5 years. If such an extension

19 is made, during the fourth and fifth years of the

20 project, the organization shall receive financial assist21 ance in accordance with section 29(c)(1)(C) of the

22 Small Business Act (as amended by this section) sub23 ject to procedures established by the Administrator, in

24 coordination with the Assistant Administrator of the

25 Office of Women’s Business Ownership established
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1 under section 29 of the Small Business Act (15 U.S.C.

2 656) (as amended by this section).

3 TITLE IV—COMPETITIVENESS

4 PROGRAM AND PROCURE5 MENT OPPORTUNITIES

6 Subtitle A—Small Business

7 Competitiveness Program

8 SEC. 401. PROGRAM TERM.

9 Section 711(c) of the Small Business Competitiveness

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

11 is amended by striking ‘‘, and terminate on September 30,

12 1997’’.

13 SEC. 402. MONITORING AGENCY PERFORMANCE.

14 Section 712(d)(1) of the Small Business Competitive15 ness Demonstration Program Act of 1988 (15 U.S.C. 644

16 note) is amended to read as follows:

17 ‘‘(1) Participating agencies shall monitor the at18 tainment of their small business participation goals

19 on an annual basis. An annual review by each par20 ticipating agency shall be completed not later than

21 January 31 of each year, based on the data for the

22 preceding fiscal year, from October 1 through Septem23 ber 30.’’.
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1 SEC. 403. REPORTS TO CONGRESS.

2 Section 716(a) of the Small Business Competitiveness

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

4 is amended—

5 (1) by striking ‘‘1996’’ and inserting ‘‘2000’’;

6 (2) by striking ‘‘for Federal Procurement Policy’’

7 and inserting ‘‘of the Small Business Administra8 tion’’; and

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

10 inserting ‘‘Government Reform and Oversight’’.

11 SEC. 404. SMALL BUSINESS PARTICIPATION IN DREDGING.

12 Section 722(a) of the Small Business Competitiveness

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

14 is amended by striking ‘‘and terminating on September 30,

15 1997’’.

16 SEC. 405. TECHNICAL AMENDMENTS.

17 Section 717 of the Small Business Competitiveness

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

19 is amended—

20 (1) by inserting ‘‘or North American Industrial

21 Classification Code’’ after ‘‘standard industrial classi22 fication code’’ each place it appears; and

23 (2) by inserting ‘‘or North American Industrial

24 Classification Codes’’ after ‘‘standard industrial clas25 sification codes’’ each place it appears.
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1 Subtitle B—Small Business Pro2 curement Opportunities Pro3 gram

4 SEC. 411. CONTRACT BUNDLING.

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

6 is amended by adding at the end the following:

7 ‘‘(j) CONTRACT BUNDLING.—In complying with the

8 statement of congressional policy expressed in subsection

9 (a), relating to fostering the participation of small business

10 concerns in the contracting opportunities of the Govern11 ment, each Federal agency, to the maximum extent prac12 ticable, shall—

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

14 the participation of small business concerns as prime

15 contractors, subcontractors, and suppliers;

16 ‘‘(2) structure its contracting requirements to fa17 cilitate competition by and among small business

18 concerns, taking all reasonable steps to eliminate ob19 stacles to their participation; and

20 ‘‘(3) avoid unnecessary and unjustified bundling

21 of contract requirements that precludes small business

22 participation in procurements as prime contractors.’’.

23 SEC. 412. DEFINITION OF CONTRACT BUNDLING.

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

25 is amended by adding at the end the following:
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1 ‘‘(o) DEFINITIONS OF BUNDLING OF CONTRACT RE2 QUIREMENTS AND RELATED TERMS.—In this Act:

3 ‘‘(1) BUNDLED CONTRACT.—The term ‘bundled

4 contract’ means a contract that is entered into to

5 meet requirements that are consolidated in a bundling

6 of contract requirements.

7 ‘‘(2) BUNDLING OF CONTRACT REQUIREMENTS.—

8 The term ‘bundling of contract requirements’ means

9 consolidating 2 or more procurement requirements for

10 goods or services previously provided or performed

11 under separate smaller contracts into a solicitation of

12 offers for a single contract that is likely to be unsuit13 able for award to a small-business concern due to—

14 ‘‘(A) the diversity, size, or specialized na15 ture of the elements of the performance specified;

16 ‘‘(B) the aggregate dollar value of the an17 ticipated award;

18 ‘‘(C) the geographical dispersion of the con19 tract performance sites; or

20 ‘‘(D) any combination of the factors de21 scribed in subparagraphs (A), (B), and (C).

22 ‘‘(3) SEPARATE SMALLER CONTRACT.—The term

23 ‘separate smaller contract’, with respect to a bundling

24 of contract requirements, means a contract that has

25 been performed by 1 or more small business concerns
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1 or was suitable for award to 1 or more small business

2 concerns.’’.

3 SEC. 413. ASSESSING PROPOSED CONTRACT BUNDLING.

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

5 Act (15 U.S.C. 644) is amended by inserting after sub6 section (d) the following:

7 ‘‘(e) PROCUREMENT STRATEGIES; CONTRACT BUN8 DLING.—

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

10 practicable, procurement strategies used by the var11 ious agencies having contracting authority shall fa12 cilitate the maximum participation of small business

13 concerns as prime contractors, subcontractors, and

14 suppliers.

15 ‘‘(2) MARKET RESEARCH.—

16 ‘‘(A) IN GENERAL.—Before proceeding with

17 an acquisition strategy that could lead to a con18 tract containing consolidated procurement re19 quirements, the head of an agency shall conduct

20 market research to determine whether consolida21 tion of the requirements is necessary and justi22 fied.

23 ‘‘(B) FACTORS.—For purposes of subpara24 graph (A), consolidation of the requirements may

25 be determined as being necessary and justified if,
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1 as compared to the benefits that would be derived

2 from contracting to meet those requirements if

3 not consolidated, the Federal Government would

4 derive from the consolidation measurably sub5 stantial benefits, including any combination of

6 benefits that, in combination, are measurably

7 substantial. Benefits described in the preceding

8 sentence may include the following:

9 ‘‘(i) Cost savings.

10 ‘‘(ii) Quality improvements.

11 ‘‘(iii) Reduction in acquisition cycle

12 times.

13 ‘‘(iv) Better terms and conditions.

14 ‘‘(v) Any other benefits.

15 ‘‘(C) REDUCTION OF COSTS NOT DETER16 MINATIVE.—The reduction of administrative or

17 personnel costs alone shall not be a justification

18 for bundling of contract requirements unless the

19 cost savings are expected to be substantial in re20 lation to the dollar value of the procurement re21 quirements to be consolidated.

22 ‘‘(3) STRATEGY SPECIFICATIONS.—If the head of

23 a contracting agency determines that a proposed pro24 curement strategy for a procurement involves a sub-
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1 stantial bundling of contract requirements, the pro2 posed procurement strategy shall—

3 ‘‘(A) identify specifically the benefits antici4 pated to be derived from the bundling of contract

5 requirements;

6 ‘‘(B) set forth an assessment of the specific

7 impediments to participation by small business

8 concerns as prime contractors that result from

9 the bundling of contract requirements and speci10 fy actions designed to maximize small business

11 participation as subcontractors (including sup12 pliers) at various tiers under the contract or con13 tracts that are awarded to meet the requirements;

14 and

15 ‘‘(C) include a specific determination that

16 the anticipated benefits of the proposed bundled

17 contract justify its use.

18 ‘‘(4) CONTRACT TEAMING.—In the case of a solic19 itation of offers for a bundled contract that is issued

20 by the head of an agency, a small-business concern

21 may submit an offer that provides for use of a par22 ticular team of subcontractors for the performance of

23 the contract. The head of the agency shall evaluate the

24 offer in the same manner as other offers, with due

25 consideration to the capabilities of all of the proposed
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1 subcontractors. If a small business concern teams

2 under this paragraph, it shall not affect its status as

3 a small business concern for any other purpose.’’.

4 (b) ADMINISTRATION REVIEW.—Section 15(a) of the

5 Small Business Act (15 U.S.C. 644(a)) is amended in the

6 third sentence—

7 (1) by inserting ‘‘or the solicitation involves an

8 unnecessary or unjustified bundling of contract re9 quirements, as determined by the Administration,’’

10 after ‘‘discrete construction projects,’’;

11 (2) by striking ‘‘or (4)’’ and inserting ‘‘(4)’’; and

12 (3) by inserting before the period at the end of

13 the sentence the following: ‘‘, or (5) why the agency

14 has determined that the bundled contract (as defined

15 in section 3(o)) is necessary and justified’’.

16 (c) RESPONSIBILITIES OF AGENCY SMALL BUSINESS

17 ADVOCATES.—Section 15(k) of the Small Business Act (15

18 U.S.C. 644(k)) is amended—

19 (1) by redesignating paragraphs (5) through (9)

20 as paragraphs (6) through (10), respectively; and

21 (2) by inserting after paragraph (4) the follow22 ing:

23 ‘‘(5) identify proposed solicitations that involve

24 significant bundling of contract requirements, and

25 work with the agency acquisition officials and the Ad-
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1 ministration to revise the procurement strategies for

2 such proposed solicitations where appropriate to in3 crease the probability of participation by small busi4 nesses as prime contractors, or to facilitate small

5 business participation as subcontractors and suppli6 ers, if a solicitation for a bundled contract is to be

7 issued;’’.

8 SEC. 414. REPORTING OF BUNDLED CONTRACT OPPORTU9 NITIES.

10 (a) DATA COLLECTION REQUIRED.—The Federal Pro11 curement Data System described in section 6(d)(4)(A) of

12 the Office of Federal Procurement Policy Act (41 U.S.C.

13 405(d)(4)(A)) shall be modified to collect data regarding

14 bundling of contract requirements when the contracting offi15 cer anticipates that the resulting contract price, including

16 all options, is expected to exceed $5,000,000. The data shall

17 reflect a determination made by the contracting officer re18 garding whether a particular solicitation constitutes a con19 tract bundling.

20 (b) DEFINITIONS.—In this section, the term ‘‘bundling

21 of contract requirements’’ has the meaning given that term

22 in section 3(o) of the Small Business Act (15 U.S.C. 632(o))

23 (as added by section 412 of this subtitle).
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1 SEC. 415. EVALUATING SUBCONTRACT PARTICIPATION IN

2 AWARDING CONTRACTS.

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

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

5 ‘‘(G) The following factors shall be designated by

6 the Federal agency as significant factors for purposes

7 of evaluating offers for a bundled contract where the

8 head of the agency determines that the contract offers

9 a significant opportunity for subcontracting:

10 ‘‘(i) A factor that is based on the rate pro11 vided under the subcontracting plan for small

12 business participation in the performance of the

13 contract.

14 ‘‘(ii) For the evaluation of past performance

15 of an offeror, a factor that is based on the extent

16 to which the offeror attained applicable goals for

17 small business participation in the performance

18 of contracts.’’.

19 SEC. 416. IMPROVED NOTICE OF SUBCONTRACTING OPPOR20 TUNITIES.

21 (a) USE OF THE COMMERCE BUSINESS DAILY AU22 THORIZED.—Section 8 of the Small Business Act (15

23 U.S.C. 637) is amended by adding at the end the following:

24 ‘‘(k) NOTICES OF SUBCONTRACTING OPPORTUNI25 TIES.—
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1 ‘‘(1) IN GENERAL.—Notices of subcontracting op2 portunities may be submitted for publication in the

3 Commerce Business Daily by—

4 ‘‘(A) a business concern awarded a contract

5 by an executive agency subject to subsection

6 (e)(1)(C); and

7 ‘‘(B) a business concern that is a sub8 contractor or supplier (at any tier) to such con9 tractor having a subcontracting opportunity in

10 excess of $10,000.

11 ‘‘(2) CONTENT OF NOTICE.—The notice of a sub12 contracting opportunity shall include—

13 ‘‘(A) a description of the business oppor14 tunity that is comparable to the description spec15 ified in paragraphs (1), (2), (3), and (4) of sub16 section (f); and

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

18 (b) REGULATIONS REQUIRED.—The Federal Acquisi19 tion Regulation shall be amended to provide uniform imple20 mentation of the amendments made by this section.

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

22 the Small Business Act (15 U.S.C. 637(e)(1)(C)) is amend23 ed by striking ‘‘$25,000’’ each place that term appears and

24 inserting ‘‘$100,000’’.
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1 SEC. 417. DEADLINES FOR ISSUANCE OF REGULATIONS.

2 (a) PROPOSED REGULATIONS.—Proposed amendments

3 to the Federal Acquisition Regulation or proposed Small

4 Business Administration regulations under this subtitle

5 and the amendments made by this subtitle shall be pub6 lished not later than 120 days after the date of enactment

7 of this Act for the purpose of obtaining public comment pur8 suant to section 22 of the Office of Federal Procurement

9 Policy Act (41 U.S.C. 418b), or chapter 5 of title 5, United

10 States Code, as appropriate. The public shall be afforded

11 not less than 60 days to submit comments.

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

13 published not later than 270 days after the date of enact14 ment of this Act. The effective date for such final regulations

15 shall be not less than 30 days after the date of publication.

16 TITLE V—MISCELLANEOUS

17 PROVISIONS

18 SEC. 501. SMALL BUSINESS TECHNOLOGY TRANSFER PRO19 GRAM.

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

21 Small Business Act (15 U.S.C. 638(n)) is amended by strik22 ing paragraph (1) and inserting the following:

23 ‘‘(1) REQUIRED EXPENDITURE AMOUNTS.—With

24 respect to fiscal years 1998, 1999, 2000, and 2001,

25 each Federal agency that has an extramural budget

26 for research, or research and development, in excess of
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1 $1,000,000,000 for that fiscal year, is authorized to

2 expend with small business concerns not less than

3 0.15 percent of that extramural budget specifically in

4 connection with STTR programs that meet the re5 quirements of this section and any policy directives

6 and regulations issued under this section.’’.

7 (b) REPORTS AND OUTREACH.—

8 (1) IN GENERAL.—Section 9 of the Small Busi9 ness Act (15 U.S.C. 638) is amended—

10 (A) in subsection (o)—

11 (i) by redesignating paragraphs (8)

12 through (11) as paragraphs (10) through

13 (13), respectively; and

14 (ii) by inserting after paragraph (7)

15 the following:

16 ‘‘(8) include, as part of its annual performance

17 plan as required by subsections (a) and (b) of section

18 1115 of title 31, United States Code, a section on its

19 STTR program, and shall submit such section to the

20 Committee on Small Business of the Senate, and the

21 Committee on Science and the Committee on Small

22 Business of the House of Representatives;

23 ‘‘(9) collect such data from awardees as is nec24 essary to assess STTR program outputs and out25 comes;’’;
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1 (B) in subsection (e)(4)(A), by striking

2 ‘‘(ii)’’; and

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

4 ‘‘(s) OUTREACH.—

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

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

7 ‘‘(A) if the total value of contracts awarded

8 to the State during fiscal year 1995 under this

9 section was less than $5,000,000; and

10 ‘‘(B) that certifies to the Administration de11 scribed in paragraph (2) that the State will,

12 upon receipt of assistance under this subsection,

13 provide matching funds from non-Federal

14 sources in an amount that is not less than 50

15 percent of the amount provided under this sub16 section.

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

18 available to carry out this section for fiscal year

19 1998, 1999, 2000, or 2001 the Administrator may ex20 pend with eligible States not more than $2,000,000 in

21 each such fiscal year in order to increase the partici22 pation of small business concerns located in those

23 States in the programs under this section.
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1 ‘‘(3) AMOUNT OF ASSISTANCE.—The amount of

2 assistance provided to an eligible State under this

3 subsection in any fiscal year—

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

5 amount of matching funds from non-Federal

6 sources provided by the State; and

7 ‘‘(B) shall not exceed $100,000.

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

9 to an eligible State under this subsection shall be used

10 by the State, in consultation with State and local de11 partments and agencies, for programs and activities

12 to increase the participation of small business con13 cerns located in the State in the programs under this

14 section, including—

15 ‘‘(A) the establishment of quantifiable per16 formance goals, including goals relating to—

17 ‘‘(i) the number of program awards

18 under this section made to small business

19 concerns in the State; and

20 ‘‘(ii) the total amount of Federal re21 search and development contracts awarded

22 to small business concerns in the State;

23 ‘‘(B) the provision of competition outreach

24 support to small business concerns in the State
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1 that are involved in research and development;

2 and

3 ‘‘(C) the development and dissemination of

4 educational and promotional information relat5 ing to the programs under this section to small

6 business concerns in the State.

7 ‘‘(t) INCLUSION IN STRATEGIC PLANS.—Program in8 formation relating to the SBIR and STTR programs shall

9 be included by each Federal agency in any update or revi10 sion required of the Federal agency under section 306(b)

11 of title 5, United States Code.’’.

12 (2) REPEAL.—Effective October 1, 2001, section

13 9(s) of the Small Business Act (as added by para14 graph (1) of this subsection) is repealed.

15 SEC. 502. SMALL BUSINESS DEVELOPMENT CENTERS.

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

17 Act (15 U.S.C. 648(a)) is amended—

18 (1) in paragraph (1)—

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

20 center operating pursuant to section 29,’’ after

21 ‘‘credit or finance corporation,’’;

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

23 center operating pursuant to section 29’’ after

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

25 and
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1 (C) by inserting ‘‘and women’s business

2 centers operating pursuant to section 29’’ after

3 ‘‘utilize institutions of higher education’’;

4 (2) in paragraph (3)—

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

6 follows through ‘‘parties.’’ and inserting the fol7 lowing: ‘‘for the delivery of programs and serv8 ices to the small business community. Such pro9 grams and services shall be jointly developed, ne10 gotiated, and agreed upon, with full participa11 tion of both parties, pursuant to an executed co12 operative agreement between the Small Business

13 Development Center applicant and the Adminis14 tration.’’; and

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

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

17 Development Center shall review and coordinate pub18 lic and private partnerships and cosponsorships with

19 the Administration for the purpose of more efficiently

20 leveraging available resources on a National and a

21 State basis.’’;

22 (3) in paragraph (4)(C)—

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

24 following:

25 ‘‘(i) IN GENERAL.—
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1 ‘‘(I) GRANT AMOUNT.—Subject to sub2 clauses (II) and (III), the amount of a

3 grant received by a State under this section

4 shall be equal to the greater of $500,000, or

5 the sum of—

6 ‘‘(aa) the State’s pro rata share of

7 the national program, based upon the

8 population of the State as compared to

9 the total population of the United

10 States; and

11 ‘‘(bb) $300,000 in fiscal year

12 1998, $400,000 in fiscal year 1999,

13 and $500,000 in each fiscal year there14 after.

15 ‘‘(II) PRO RATA REDUCTIONS.—If the

16 amount made available to carry out this

17 section for any fiscal year is insufficient to

18 carry out subclause (I)(bb), the Administra19 tion shall make pro rata reductions in the

20 amounts otherwise payable to States under

21 subclause (I)(bb).

22 ‘‘(III) MATCHING REQUIREMENT.—The

23 amount of a grant received by a State

24 under this section shall not exceed the

25 amount of matching funds from sources
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1 other than the Federal Government provided

2 by the State under subparagraph (A).’’; and

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

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

5 the following:

6 ‘‘(iii) NATIONAL PROGRAM.—There are au7 thorized to be appropriated to carry out the na8 tional program under this section—

9 ‘‘(I) $85,000,000 for fiscal year 1998;

10 ‘‘(II) $90,000,000 for fiscal year 1999;

11 and

12 ‘‘(III) $95,000,000 for fiscal year 2000

13 and each fiscal year thereafter.’’; and

14 (4) in paragraph (6)—

15 (A) in subparagraph (A), by striking ‘‘and’’

16 at the end;

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

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

19 (C) inserting after subparagraph (B) the

20 following:

21 ‘‘(C) with outreach, development, and en22 hancement of minority-owned small business

23 startups or expansions, HUBZone small business

24 concerns, veteran-owned small business startups

25 or expansions, and women-owned small business
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1 startups or expansions, in communities impacted

2 by base closings or military or corporate

3 downsizing, or in rural or underserved commu4 nities;’’.

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

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

7 (1) in paragraph (3)—

8 (A) in subparagraph (A), by striking ‘‘busi9 nesses;’’ and inserting ‘‘businesses, including—

10 ‘‘(i) working with individuals to increase

11 awareness of basic credit practices and credit re12 quirements;

13 ‘‘(ii) working with individuals to develop14 ment business plans, financial packages, credit

15 applications, and contract proposals;

16 ‘‘(iii) working with the Administration to

17 develop and provide informational tools for use

18 in working with individuals on pre-business

19 startup planning, existing business expansion,

20 and export planning; and

21 ‘‘(iv) working with individuals referred by

22 the local offices of the Administration and Ad23 ministration participating lenders;’’;
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1 (B) in each of subparagraphs (B), (C), (D),

2 (E), (F), (G), (M), (N), (O), (Q), and (R) by

3 moving each margin 2 ems to the left; and

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

5 the Administration’’ after ‘‘Center’’;

6 (2) in paragraph (5)—

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

8 right;

9 (B) by striking ‘‘paragraph (a)(1)’’ and in10 serting ‘‘subsection (a)(1)’’;

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

12 ‘‘whichever’’; and

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

14 ‘‘last,’’;

15 (3) by redesignating paragraphs (4) through (7)

16 as paragraphs (5) through (8), respectively; and

17 (4) in paragraph (3), in the undesignated mate18 rial following subparagraph (R), by striking ‘‘A

19 small’’ and inserting the following:

20 ‘‘(4) A small’’.

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

22 Business Act (15 U.S.C. 648(l)) is amended by adding at

23 the end the following: ‘‘If any contract or cooperative agree24 ment under this section with an entity that is covered by

25 this section is not renewed or extended, any award of a
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1 successor contract or cooperative agreement under this sec2 tion to another entity shall be made on a competitive

3 basis.’’.

4 (d) PROHIBITION ON CERTAIN FEES.—Section 21 of

5 the Small Business Act (15 U.S.C. 648) is amended by add6 ing at the end the following:

7 ‘‘(m) PROHIBITION ON CERTAIN FEES.—A small busi8 ness development center shall not impose or otherwise collect

9 a fee or other compensation in connection with the provi10 sion of counseling services under this section.’’.

11 SEC. 503. PILOT PREFERRED SURETY BOND GUARANTEE

12 PROGRAM EXTENSION.

13 Section 207 of the Small Business Administration Re14 authorization and Amendment Act of 1988 (15 U.S.C. 694b

15 note) is amended by striking ‘‘September 30, 1997’’ and in16 serting ‘‘September 30, 2000’’.

17 SEC. 504. EXTENSION OF COSPONSORSHIP AUTHORITY.

18 Section 401(a)(2) of the Small Business Administra19 tion Reauthorization and Amendments Act of 1994 (15

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

21 1997’’ and inserting ‘‘September 30, 2000’’.

22 SEC. 505. ASSET SALES.

23 In connection with the Administration’s implementa24 tion of a program to sell to the private sector loans and

25 other assets held by the Administration, the Administration
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1 shall provide to the Committees a copy of the draft and

2 final plans describing the sale and the anticipated benefits

3 resulting from such sale.

4 SEC. 506. SMALL BUSINESS EXPORT PROMOTION.

5 (a) IN GENERAL.—Section 21(c)(3) of the Small Busi6 ness Act (15 U.S.C. 648(c)(3)) is amended—

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

8 the end;

9 (2) in subparagraph (R), by striking the period

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

11 (3) by inserting after subparagraph (R) the fol12 lowing:

13 ‘‘(S) providing small business owners with access

14 to a wide variety of export-related information by es15 tablishing on-line computer linkages between small

16 business development centers and an international

17 trade data information network with ties to the Ex18 port Assistance Center program.’’.

19 (b) AUTHORIZATION OF APPROPRIATIONS.—There is

20 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 each

23 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 may ad5 minister the Defense Loan and Technical Assistance

6 program in accordance with the authority and re7 quirements of this section.

8 (2) EXPIRATION OF AUTHORITY.—The authority

9 of the Administrator to carry out the DELTA pro10 gram under paragraph (1) shall terminate when the

11 funds referred to in subsection (g)(1) have been ex12 pended.

13 (3) DELTA PROGRAM DEFINED.—In this sec14 tion, the terms ‘‘Defense Loan and Technical Assist15 ance program’’ and ‘‘DELTA program’’ mean the De16 fense Loan and Technical Assistance program that

17 has been established by a memorandum of under18 standing entered into by the Administrator and the

19 Secretary of Defense on June 26, 1995.

20 (b) ASSISTANCE.—

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

22 the Administrator may assist small business concerns

23 that are economically dependent on defense expendi24 tures to acquire dual-use capabilities.

25 (2) FORMS OF ASSISTANCE.—Forms of assistance

26 authorized under paragraph (1) are as follows:
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1 (A) LOAN GUARANTEES.—Loan guarantees

2 under the terms and conditions specified under

3 this section and other applicable law.

4 (B) NONFINANCIAL ASSISTANCE.—Other

5 forms of assistance that are not financial.

6 (c) ADMINISTRATION OF PROGRAM.—In the adminis7 tration of the DELTA program under this section, the Ad8 ministrator shall—

9 (1) process applications for DELTA program

10 loan guarantees;

11 (2) guarantee repayment of the resulting loans

12 in accordance with this section; and

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

14 administer the program.

15 (d) SELECTION AND ELIGIBILITY REQUIREMENTS FOR

16 DELTA LOAN GUARANTEES.—

17 (1) IN GENERAL.—The selection criteria and eli18 gibility requirements set forth in this subsection shall

19 be applied in the selection of small business concerns

20 to receive loan guarantees under the DELTA pro21 gram.

22 (2) SELECTION CRITERIA.—The criteria used for

23 the selection of a small business concern to receive a

24 loan guarantee under this section are as follows:
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1 (A) The selection criteria established under

2 the memorandum of understanding referred to in

3 subsection (a)(3).

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

5 guaranteed would support the retention of de6 fense workers whose employment would otherwise

7 be permanently or temporarily terminated as a

8 result of reductions in expenditures by the Unit9 ed States for defense, the termination or can10 cellation of a defense contract, the failure to pro11 ceed with an approved major weapon system, the

12 merger or consolidation of the operations of a de13 fense contractor, or the closure or realignment of

14 a military installation.

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

16 guaranteed would stimulate job creation and

17 new economic activities in communities most ad18 versely affected by reductions in expenditures by

19 the United States for defense, the termination or

20 cancellation of a defense contract, the failure to

21 proceed with an approved major weapon system,

22 the merger or consolidation of the operations of

23 a defense contractor, or the closure or realign24 ment of a military installation.
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1 (D) The extent to which the loans to be

2 guaranteed would be used to acquire (or permit

3 the use of other funds to acquire) capital equip4 ment to modernize or expand the facilities of the

5 borrower to enable the borrower to remain in the

6 national technology and industrial base avail7 able to the Department of Defense.

8 (3) ELIGIBILITY REQUIREMENTS.—To be eligible

9 for a loan guarantee under the DELTA program, a

10 borrower must demonstrate to the satisfaction of the

11 Administrator that, during any 1 of the 5 preceding

12 operating years of the borrower, not less than 25 per13 cent of the value of the borrower’s sales were derived

14 from—

15 (A) contracts with the Department of De16 fense or the defense-related activities of the De17 partment of Energy; or

18 (B) subcontracts in support of defense-relat19 ed prime contracts.

20 (e) MAXIMUM AMOUNT OF LOAN PRINCIPAL.—With re21 spect to each borrower, the maximum amount of loan prin22 cipal for which the Administrator may provide a guarantee

23 under this section during a fiscal year may not exceed

24 $1,250,000.
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1 (f) LOAN GUARANTY RATE.—The maximum allowable

2 guarantee percentage for loans guaranteed under this sec3 tion 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 DELTA

7 program and have been transferred from the Depart8 ment of Defense to the Small Business Administration

9 before the date of the enactment of this Act shall be

10 used for carrying out the DELTA program under this

11 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 section

19 502(5) of the Federal Credit Reform Act of 1990

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

21 under this section; and

22 (B) to cover the reasonable costs of the ad23 ministration of the loan guarantees.
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1 SEC. 508. VERY SMALL BUSINESS CONCERNS.

2 Section 304(i) of the Small Business Administration

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

4 644 note) is amended by striking ‘‘September 30, 1998’’ and

5 inserting ‘‘September 30, 2000’’.

6 SEC. 509. TRADE ASSISTANCE PROGRAM FOR SMALL BUSI7 NESS CONCERNS ADVERSELY AFFECTED BY

8 NAFTA.

9 The Administrator shall coordinate Federal assistance

10 in order to provide counseling to small business concerns

11 adversely affected by the North American Free Trade Agree12 ment.

13 TITLE VI—HUBZONE PROGRAM

14 SEC. 601. SHORT TITLE.

15 This title may be cited as the ‘‘HUBZone Act of 1997’’.

16 SEC. 602. HISTORICALLY UNDERUTILIZED BUSINESS

17 ZONES.

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

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

20 is amended by adding at the end the following:

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

22 this Act:

23 ‘‘(1) HISTORICALLY UNDERUTILIZED BUSINESS

24 ZONE.—The term ‘historically underutilized business

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

26 ‘‘(A) qualified census tracts;
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1 ‘‘(B) qualified nonmetropolitan counties; or

2 ‘‘(C) lands within the external boundaries of

3 an Indian reservation.

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

5 historically underutilized business zone.

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

7 The term ‘HUBZone small business concern’ means a

8 small business concern—

9 ‘‘(A) that is owned and controlled by 1 or

10 more persons, each of whom is a United States

11 citizen; and

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

13 in a HUBZone; or

14 ‘‘(4) QUALIFIED AREAS.—

15 ‘‘(A) QUALIFIED CENSUS TRACT.—The term

16 ‘qualified census tract’ has the meaning given

17 that term in section 42(d)(5)(C)(ii)(I) of the In18 ternal Revenue Code of 1986.

19 ‘‘(B) QUALIFIED NONMETROPOLITAN COUN20 TY.—The term ‘qualified nonmetropolitan coun21 ty’ means any county—

22 ‘‘(i) that, based on the most recent data

23 available from the Bureau of the Census of

24 the Department of Commerce—
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1 ‘‘(I) is not located in a metropoli2 tan statistical area (as defined in sec3 tion 143(k)(2)(B) of the Internal Reve4 nue Code of 1986); and

5 ‘‘(II) in which the median house6 hold income is less than 80 percent of

7 the nonmetropolitan State median

8 household income; or

9 ‘‘(ii) that, based on the most recent

10 data available from the Secretary of Labor,

11 has an unemployment rate that is not less

12 than 140 percent of the statewide average

13 unemployment rate for the State in which

14 the county is located.

15 ‘‘(5) QUALIFIED HUBZONE SMALL BUSINESS

16 CONCERN.—

17 ‘‘(A) IN GENERAL.—A HUBZone small

18 business concern is ‘qualified’, if—

19 ‘‘(i) the small business concern has cer20 tified in writing to the Administrator (or

21 the Administrator otherwise determines,

22 based on information submitted to the Ad23 ministrator by the small business concern,

24 or based on certification procedures, which
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1 shall be established by the Administration

2 by regulation) that—

3 ‘‘(I) it is a HUBZone small busi4 ness concern;

5 ‘‘(II) not less than 35 percent of

6 the employees of the small business

7 concern reside in a HUBZone, and the

8 small business concern will attempt to

9 maintain this employment percentage

10 during the performance of any contract

11 awarded to the small business concern

12 on the basis of a preference provided

13 under section 31(b); and

14 ‘‘(III) with respect to any sub15 contract entered into by the small busi16 ness concern pursuant to a contract

17 awarded to the small business concern

18 under section 31, the small business

19 concern will ensure that—

20 ‘‘(aa) in the case of a con21 tract for services (except construc22 tion), not less than 50 percent of

23 the cost of contract performance

24 incurred for personnel will be ex25 pended for its employees or for
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1 employees of other HUBZone

2 small business concerns; and

3 ‘‘(bb) in the case of a con4 tract for procurement of supplies

5 (other than procurement from a

6 regular dealer in such supplies),

7 not less than 50 percent of the cost

8 of manufacturing the supplies

9 (not including the cost of mate10 rials) will be incurred in connec11 tion with the performance of the

12 contract in a HUBZone by 1 or

13 more HUBZone small business

14 concerns; and

15 ‘‘(ii) no certification made or informa16 tion provided by the small business concern

17 under clause (i) has been, in accordance

18 with the procedures established under sec19 tion 31(c)(1)—

20 ‘‘(I) successfully challenged by an

21 interested party; or

22 ‘‘(II) otherwise determined by the

23 Administrator to be materially false.

24 ‘‘(B) CHANGE IN PERCENTAGES.—The Ad25 ministrator may utilize a percentage other than
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1 the percentage specified in under item (aa) or

2 (bb) of subparagraph (A)(i)(III), if the Adminis3 trator determines that such action is necessary to

4 reflect conventional industry practices among

5 small business concerns that are below the nu6 merical size standard for businesses in that in7 dustry category.

8 ‘‘(C) CONSTRUCTION AND OTHER CON9 TRACTS.—The Administrator shall promulgate

10 final regulations imposing requirements that are

11 similar to those specified in subclauses (IV) and

12 (V) of subparagraph (A)(i) on contracts for gen13 eral and specialty construction, and on contracts

14 for any other industry category that would not

15 otherwise be subject to those requirements. The

16 percentage applicable to any such requirement

17 shall be determined in accordance with subpara18 graph (B).

19 ‘‘(D) LIST OF QUALIFIED SMALL BUSINESS

20 CONCERNS.—The Administrator shall establish

21 and maintain a list of qualified HUBZone small

22 business concerns, which list shall, to the extent

23 practicable—
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1 ‘‘(i) include the name, address, and

2 type of business with respect to each such

3 small business concern;

4 ‘‘(ii) be updated by the Administrator

5 not less than annually; and

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

7 Federal agency or other entity.’’.

8 (b) FEDERAL CONTRACTING.—

9 (1) IN GENERAL.—The Small Business Act (15

10 U.S.C. 631 et seq.) is amended—

11 (A) by redesignating section 31 as section

12 32; and

13 (B) by inserting after section 30 the follow14 ing:

15 ‘‘SEC. 31. HUBZONE PROGRAM.

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

17 Administration a program to be carried out by the Admin18 istrator to provide for Federal contracting assistance to

19 qualified HUBZone small business concerns in accordance

20 with this section.

21 ‘‘(b) ELIGIBLE CONTRACTS.—

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

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

24 meaning given that term in section 27(f)(5) of
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1 the Office of Federal Procurement Policy Act (41

2 U.S.C. 423(f)(5)); and

3 ‘‘(B) the term ‘full and open competition’

4 has the meaning given that term in section 4 of

5 the Office of Federal Procurement Policy Act (41

6 U.S.C. 403).

7 ‘‘(2) AUTHORITY OF CONTRACTING OFFICER.—

8 Notwithstanding any other provision of law—

9 ‘‘(A) a contracting officer may award sole

10 source contracts under this section to any quali11 fied HUBZone small business concern, if—

12 ‘‘(i) the qualified HUBZone small

13 business concern is determined to be a re14 sponsible contractor with respect to per15 formance of such contract opportunity, and

16 the contracting officer does not have a rea17 sonable expectation that 2 or more qualified

18 HUBZone small business concerns will sub19 mit offers for the contracting opportunity;

20 ‘‘(ii) the anticipated award price of the

21 contract (including options) will not

22 exceed—

23 ‘‘(I) $5,000,000, in the case of a

24 contract opportunity assigned a stand-
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1 ard industrial classification code for

2 manufacturing; or

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

4 other contract opportunities; and

5 ‘‘(iii) in the estimation of the contract6 ing officer, the contract award can be made

7 at a fair and reasonable price;

8 ‘‘(B) a contract opportunity shall be award9 ed pursuant to this section on the basis of com10 petition restricted to qualified HUBZone small

11 business concerns if the contracting officer has a

12 reasonable expectation that not less than 2 quali13 fied HUBZone small business concerns will sub14 mit offers and that the award can be made at a

15 fair market price; and

16 ‘‘(C) not later than 5 days from the date the

17 Administration is notified of a procurement offi18 cer’s decision not to award a contract oppor19 tunity under this section to a qualified

20 HUBZone small business concern, the Adminis21 trator may notify the contracting officer of the

22 intent to appeal the contracting officer’s deci23 sion, and within 15 days of such date the Ad24 ministrator may file a written request for recon25 sideration of the contracting officer’s decision
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1 with the Secretary of the department or agency

2 head.

3 ‘‘(3) PRICE EVALUATION PREFERENCE IN FULL

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

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

6 open competition, the price offered by a qualified

7 HUBZone small business concern shall be deemed as

8 being lower than the price offered by another offeror

9 (other than another small business concern), if the

10 price offered by the qualified HUBZone small busi11 ness concern is not more than 10 percent higher than

12 the price offered by the otherwise lowest, responsive,

13 and responsible offeror.

14 ‘‘(4) RELATIONSHIP TO OTHER CONTRACTING

15 PREFERENCES.—A procurement may not be made

16 from a source on the basis of a preference provided in

17 paragraph (2) or (3), if the procurement would other18 wise be made from a different source under section

19 4124 or 4125 of title 18, United States Code, or the

20 Javits-Wagner-O’Day Act (41 U.S.C. 46 et seq.).

21 ‘‘(c) ENFORCEMENT; PENALTIES.—

22 ‘‘(1) VERIFICATION OF ELIGIBILITY.—In carry23 ing out this section, the Administrator shall establish

24 procedures relating to—
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1 ‘‘(A) the filing, investigation, and disposi2 tion by the Administration of any challenge to

3 the eligibility of a small business concern to re4 ceive assistance under this section (including a

5 challenge, filed by an interested party, relating

6 to the veracity of a certification made or infor7 mation provided to the Administration by a

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

9 and

10 ‘‘(B) verification by the Administrator of

11 the accuracy of any certification made or infor12 mation provided to the Administration by a

13 small business concern under section 3(p)(5).

14 ‘‘(2) EXAMINATIONS.—The procedures established

15 under paragraph (1) may provide for program ex16 aminations (including random program examina17 tions) by the Administrator of any small business

18 concern making a certification or providing informa19 tion to the Administrator under section 3(p)(5).

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

21 the Administrator, the Secretary of Labor, the Sec22 retary of Housing and Urban Development, and the

23 Secretary of the Interior (or the Assistant Secretary

24 for Indian Affairs), shall promptly provide to the Ad25 ministrator such information as the Administrator
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1 determines to be necessary to carry out this sub2 section.

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

4 described in section 16(d), any small business concern

5 that is determined by the Administrator to have mis6 represented the status of that concern as a ‘HUBZone

7 small business concern’ for purposes of this section,

8 shall be subject to—

9 ‘‘(A) section 1001 of title 18, United States

10 Code; and

11 ‘‘(B) sections 3729 through 3733 of title 31,

12 United States Code.’’.

13 (2) INITIAL LIMITED APPLICABILITY.—During

14 the period beginning on the date of enactment of this

15 Act and ending on September 30, 2000, section 31 of

16 the Small Business Act (as added by paragraph (1)

17 of this subsection) shall apply only to procurements

18 by—

19 (A) the Department of Defense;

20 (B) the Department of Agriculture;

21 (C) the Department of Health and Human

22 Services;

23 (D) the Department of Transportation;

24 (E) the Department of Energy;
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1 (F) the Department of Housing and Urban

2 Development;

3 (G) the Environmental Protection Agency;

4 (H) the National Aeronautics and Space

5 Administration;

6 (I) the General Services Administration;

7 and

8 (J) the Department of Veterans Affairs.

9 SEC. 603. TECHNICAL AND CONFORMING AMENDMENTS TO

10 THE SMALL BUSINESS ACT.

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

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

13 (1) in paragraph (1)—

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

15 small business concerns owned and controlled by

16 socially and economically disadvantaged indi17 viduals’’ and inserting ‘‘, qualified HUBZone

18 small business concerns, small business concerns

19 owned and controlled by socially and economi20 cally disadvantaged individuals’’; and

21 (B) in the second sentence, by inserting

22 ‘‘qualified HUBZone small business concerns,’’

23 after ‘‘small business concerns,’’;

24 (2) in paragraph (3)—
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1 (A) by inserting ‘‘qualified HUBZone small

2 business concerns,’’ after ‘‘small business con3 cerns,’’ each place that term appears; and

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

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

6 HUBZone small business concern’ has the meaning

7 given that term in section 3(p) of the Small Business

8 Act.’’;

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

10 business concerns and’’ and inserting ‘‘small business

11 concerns, qualified HUBZone small business concerns,

12 and’’;

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

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

15 business concerns,’’ each place that term appears; and

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

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

18 business concerns,’’.

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

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

21 (1) in subsection (g)(1)—

22 (A) by inserting ‘‘qualified HUBZone small

23 business concerns,’’ after ‘‘small business con24 cerns,’’ each place that term appears;
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1 (B) in the second sentence, by striking ‘‘20

2 percent’’ and inserting ‘‘23 percent’’; and

3 (C) by inserting after the second sentence

4 the following: ‘‘The Governmentwide goal for

5 participation by qualified HUBZone small busi6 ness concerns shall be established at not less than

7 1 percent of the total value of all prime contract

8 awards for fiscal year 1999, not less than 1.5

9 percent of the total value of all prime contract

10 awards for fiscal year 2000, not less than 2 per11 cent of the total value of all prime contract

12 awards for fiscal year 2001, not less than 2.5

13 percent of the total value of all prime contract

14 awards for fiscal year 2002, and not less than 3

15 percent of the total value of all prime contract

16 awards for fiscal year 2003 and each fiscal year

17 thereafter.’’;

18 (2) in subsection (g)(2)—

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

20 small business concerns owned and controlled by

21 socially and economically disadvantaged indi22 viduals’’ and inserting ‘‘, by qualified HUBZone

23 small business concerns, by small business con24 cerns owned and controlled by socially and eco25 nomically disadvantaged individuals’’;
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1 (B) in the second sentence, by inserting

2 ‘‘qualified HUBZone small business concerns,’’

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

4 (C) in the fourth sentence, by striking ‘‘by

5 small business concerns owned and controlled by

6 socially and economically disadvantaged indi7 viduals and participation by small business con8 cerns owned and controlled by women’’ and in9 serting ‘‘by qualified HUBZone small business

10 concerns, by small business concerns owned and

11 controlled by socially and economically dis12 advantaged individuals, and by small business

13 concerns owned and controlled by women’’; and

14 (3) in subsection (h), by inserting ‘‘qualified

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

16 business concerns,’’ each place that term appears.

17 (c) OFFENSES AND PENALTIES.—Section 16 of the

18 Small Business Act (15 U.S.C. 645) is amended—

19 (1) in subsection (d)(1)—

20 (A) by inserting ‘‘, a ‘qualified HUBZone

21 small business concern’,’’ after ‘‘ ‘small business

22 concern’,’’; and

23 (B) in subparagraph (A), by striking ‘‘sec24 tion 9 or 15’’ and inserting ‘‘section 9, 15, or

25 31’’; and
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1 (2) in subsection (e), by inserting ‘‘, a

2 ‘HUBZone small business concern’,’’ after ‘‘ ‘small

3 business concern’,’’.

4 SEC. 604. OTHER TECHNICAL AND CONFORMING AMEND5 MENTS.

6 (a) TITLE 10, UNITED STATES CODE.—Section 2323

7 of title 10, United States Code, is amended—

8 (1) in subsection (a)(1)(A), by inserting before

9 the semicolon the following: ‘‘, and qualified

10 HUBZone small business concerns (as defined in sec11 tion 3(p) of the Small Business Act)’’; and

12 (2) in subsection (f)(1), by inserting ‘‘or as a

13 qualified HUBZone small business concern (as de14 fined in section 3(p) of the Small Business Act)’’ after

15 ‘‘(as described in subsection (a))’’.

16 (b) FEDERAL HOME LOAN BANK ACT.—Section

17 21A(b)(13) of the Federal Home Loan Bank Act (12 U.S.C.

18 1441a(b)(13)) is amended—

19 (1) by striking ‘‘concerns and small’’ and insert20 ing ‘‘concerns, small’’; and

21 (2) by inserting ‘‘, and qualified HUBZone

22 small business concerns (as defined in section 3(p) of

23 the Small Business Act)’’ after ‘‘disadvantaged indi24 viduals’’.
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1 (c) SMALL BUSINESS ECONOMIC POLICY ACT OF

2 1980.—Section 303(e) of the Small Business Economic Pol3 icy Act of 1980 (15 U.S.C. 631b(e)) is amended—

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

5 end;

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

7 the end and inserting ‘‘; and’’; and

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

9 ‘‘(3) qualified HUBZone small business concern

10 (as defined in section 3(p) of the Small Business

11 Act).’’.

12 (d) SMALL BUSINESS INVESTMENT ACT OF 1958.—

13 Section 411(c)(3)(B) of the Small Business Investment Act

14 of 1958 (15 U.S.C. 694b(c)(3)(B)) is amended by inserting

15 before the semicolon the following: ‘‘, or to a qualified

16 HUBZone small business concern (as defined in section

17 3(p) of the Small Business Act)’’.

18 (e) TITLE 31, UNITED STATES CODE.—

19 (1) CONTRACTS FOR COLLECTION SERVICES.—

20 Section 3718(b) of title 31, United States Code, is

21 amended—

22 (A) in paragraph (1)(B), by inserting ‘‘and

23 law firms that are qualified HUBZone small

24 business concerns (as defined in section 3(p) of
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1 the Small Business Act)’’ after ‘‘disadvantaged

2 individuals’’; and

3 (B) in paragraph (3)—

4 (i) in the first sentence, by inserting

5 before the period ‘‘and law firms that are

6 qualified HUBZone small business con7 cerns’’;

8 (ii) in subparagraph (A), by striking

9 ‘‘and’’ at the end;

10 (iii) in subparagraph (B), by striking

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

12 and

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

14 ‘‘(C) the term ‘qualified HUBZone small

15 business concern’ has the meaning given that

16 term in section 3(p) of the Small Business Act.’’.

17 (2) PAYMENTS TO LOCAL GOVERNMENTS.—Sec18 tion 6701(f) of title 31, United States Code, is amend19 ed—

20 (A) in paragraph (1)—

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 ‘‘; and’’;

25 and
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1 (iii) by adding at the end the follow2 ing:

3 ‘‘(C) qualified HUBZone small business

4 concerns.’’; and

5 (B) in paragraph (3)—

6 (i) in subparagraph (A), by striking

7 ‘‘and’’ at the end;

8 (ii) in subparagraph (B), by striking

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

10 and

11 (iii) by adding at the end the follow12 ing:

13 ‘‘(C) the term ‘qualified HUBZone small

14 business concern’ has the meaning given that

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

16 (15 U.S.C. 632(o)).’’.

17 (3) REGULATIONS.—Section 7505(c) of title 31,

18 United States Code, is amended by striking ‘‘small

19 business concerns and’’ and inserting ‘‘small business

20 concerns, qualified HUBZone small business concerns,

21 and’’.

22 (f) OFFICE OF FEDERAL PROCUREMENT POLICY

23 ACT.—
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1 (1) ENUMERATION OF INCLUDED FUNCTIONS.—

2 Section 6(d) of the Office of Federal Procurement Pol3 icy Act (41 U.S.C. 405(d)) is amended—

4 (A) in paragraph (11), by inserting ‘‘quali5 fied HUBZone small business concerns (as de6 fined in section 3(p) of the Small Business

7 Act),’’ after ‘‘small businesses,’’; and

8 (B) in paragraph (12), by inserting ‘‘quali9 fied HUBZone small business concerns (as de10 fined in section 3(p) of the Small Business Act

11 (15 U.S.C. 632(o)),’’ after ‘‘small businesses,’’.

12 (2) PROCUREMENT DATA.—Section 502 of the

13 Women’s Business Ownership Act of 1988 (41 U.S.C.

14 417a) is amended—

15 (A) in subsection (a)—

16 (i) in the first sentence, by inserting

17 ‘‘the number of qualified HUBZone small

18 business concerns,’’ after ‘‘Procurement Pol19 icy’’; and

20 (ii) by inserting a comma after

21 ‘‘women’’; and

22 (B) in subsection (b), by inserting after

23 ‘‘section 204 of this Act’’ the following: ‘‘, and

24 the term ‘qualified HUBZone small business con25 cern’ has the meaning given that term in section
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1 3(p) of the Small Business Act (15 U.S.C.

2 632(o)).’’.

3 (g) ENERGY POLICY ACT OF 1992.—Section 3021 of

4 the Energy Policy Act of 1992 (42 U.S.C. 13556) is amend5 ed—

6 (1) in subsection (a)—

7 (A) in paragraph (2), by striking ‘‘or’’;

8 (B) in paragraph (3), by striking the period

9 and inserting ‘‘; or’’; and

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

11 ‘‘(4) qualified HUBZone small business con12 cerns.’’; and

13 (2) in subsection (b), by adding at the end the

14 following:

15 ‘‘(3) The term ‘qualified HUBZone small busi16 ness concern’ has the meaning given that term in sec17 tion 3(p) of the Small Business Act (15 U.S.C.

18 632(o)).’’.

19 (h) TITLE 49, UNITED STATES CODE.—

20 (1) PROJECT GRANT APPLICATION APPROVAL

21 CONDITIONED ON ASSURANCES ABOUT AIRPORT OPER22 ATION.—Section 47107(e) of title 49, United States

23 Code, is amended—

24 (A) in paragraph (1), by inserting before

25 the period ‘‘or qualified HUBZone small busi-
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1 ness concerns (as defined in section 3(p) of the

2 Small Business Act)’’;

3 (B) in paragraph (4)(B), by inserting be4 fore the period ‘‘or as a qualified HUBZone

5 small business concern (as defined in section

6 3(p) of the Small Business Act)’’; and

7 (C) in paragraph (6), by inserting ‘‘or a

8 qualified HUBZone small business concern (as

9 defined in section 3(p) of the Small Business

10 Act)’’ after ‘‘disadvantaged individual’’.

11 (2) MINORITY AND DISADVANTAGED BUSINESS

12 PARTICIPATION.—Section 47113 of title 49, United

13 States Code, is amended—

14 (A) in subsection (a)—

15 (i) in paragraph (1), by striking the

16 period at the end and inserting a semicolon;

17 (ii) in paragraph (2), by striking the

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

19 and

20 (iii) by adding at the end the follow21 ing:

22 ‘‘(3) the term ‘qualified HUBZone small business

23 concern’ has the meaning given that term in section

24 3(p) of the Small Business Act (15 U.S.C. 632(o)).’’;

25 and
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1 (B) in subsection (b), by inserting before the

2 period ‘‘or qualified HUBZone small business

3 concerns’’.

4 SEC. 605. REGULATIONS.

5 (a) IN GENERAL.—Not later than 180 days after the

6 date of enactment of this Act, the Administrator shall pub7 lish in the Federal Register such final regulations as may

8 be necessary to carry out this title and the amendments

9 made by this title.

10 (b) FEDERAL ACQUISITION REGULATION.—Not later

11 than 180 days after the date on which final regulations are

12 published under subsection (a), the Federal Acquisition

13 Regulatory Council shall amend the Federal Acquisition

14 Regulation in order to ensure consistency between the Fed15 eral Acquisition Regulation, this title and the amendments

16 made by this title, and the final regulations published under

17 subsection (a).

18 SEC. 606. REPORT.

19 Not later than March 1, 2002, the Administrator shall

20 submit to the Committees a report on the implementation

21 of the HUBZone program established under section 31 of

22 the Small Business Act (as added by section 602(b) of this

23 title) and the degree to which the HUBZone program has

24 resulted in increased employment opportunities and an in25 creased level of investment in HUBZones (as defined in sec-
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1 tion 3(p) of the Small Business Act (15 U.S.C. 632(p)),

2 as added by section 602(a) of this title).

3 SEC. 607. AUTHORIZATION OF APPROPRIATIONS.

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

5 note) (as amended by section 101 of this Act) is amended—

6 (1) in subsection (c), by adding at the end the

7 following:

8 ‘‘(3) HUBZONE PROGRAM.—There are author9 ized to be appropriated to the Administration to

10 carry out the program under section 31, $5,000,000

11 for fiscal year 1998.’’;

12 (2) in subsection (d), by adding at the end the

13 following:

14 ‘‘(3) HUBZONE PROGRAM.—There are author15 ized to be appropriated to the Administration to

16 carry out the program under section 31, $5,000,000

17 for fiscal year 1999.’’; and

18 (3) in subsection (e), by adding at the end the

19 following:

20 ‘‘(3) HUBZONE PROGRAM.—There are author21 ized to be appropriated to the Administration to

22 carry out the program under section 31, $5,000,000

23 for fiscal year 2000.’’.
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1 TITLE VII—SERVICE DISABLED

2 VETERANS

3 SEC. 701. PURPOSES.

4 The purposes of this title are—

5 (1) to foster enhanced entrepreneurship among

6 eligible veterans by providing increased opportunities;

7 (2) to vigorously promote the legitimate interests

8 of small business concerns owned and controlled by el9 igible veterans; and

10 (3) to ensure that those concerns receive fair con11 sideration in purchases made by the Federal Govern12 ment.

13 SEC. 702. DEFINITIONS.

14 In this title:

15 (1) ELIGIBLE VETERAN.—The term ‘‘eligible vet16 eran’’ means a disabled veteran (as defined in section

17 4211(3) of title 38, United States Code).

18 (2) SMALL BUSINESS CONCERN OWNED AND CON19 TROLLED BY ELIGIBLE VETERANS.—The term ‘‘small

20 business concern owned and controlled by eligible vet21 erans’’ means a small business concern (as defined in

22 section 3 of the Small Business Act)—

23 (A) that is at least 51 percent owned by 1

24 or more eligible veterans, or in the case of a pub25 licly owned business, at least 51 percent of the
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1 stock of which is owned by 1 or more eligible vet2 erans; and

3 (B) whose management and daily business

4 operations are controlled by eligible veterans.

5 SEC. 703. REPORT BY SMALL BUSINESS ADMINISTRATION.

6 (a) STUDY AND REPORT.—

7 (1) IN GENERAL.—Not later than 9 months after

8 the date of enactment of this Act, the Administrator

9 shall conduct a comprehensive study and submit to

10 the Committees a final report containing findings

11 and recommendations of the Administrator on—

12 (A) the needs of small business concerns

13 owned and controlled by eligible veterans;

14 (B) the availability and utilization of Ad15 ministration programs by small business con16 cerns owned and controlled by eligible veterans;

17 (C) the percentage, and dollar value, of Fed18 eral contracts awarded to small business con19 cerns owned and controlled by eligible veterans

20 in the preceding 5 fiscal years; and

21 (D) methods to improve Administration

22 and other agency programs to serve the needs of

23 small business concerns owned and controlled by

24 eligible veterans.
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1 (2) CONTENTS.—The report under paragraph (1) shall

2 include recommendations to Congress concerning the need

3 for legislation and recommendations to the Office of Man4 agement and Budget, relevant offices within the Adminis5 tration, and the Department of Veterans Affairs.

6 (b) CONDUCT OF STUDY.—In carrying out subsection

7 (a), the Administrator—

8 (1) may conduct surveys of small business con9 cerns owned and controlled by eligible veterans and

10 service disabled veterans, including those who have

11 sought financial assistance or other services from the

12 Administration;

13 (2) shall consult with the appropriate committees

14 of Congress, relevant groups and organizations in the

15 nonprofit sector, and Federal or State government

16 agencies; and

17 (3) shall have access to any information within

18 other Federal agencies that pertains to such veterans

19 and their small businesses, unless such access is spe20 cifically prohibited by law.

21 SEC. 704. INFORMATION COLLECTION.

22 After the date of issuance of the report required by sec23 tion 703(a), the Secretary of Veterans Affairs shall, in con24 sultation with the Assistant Secretary for Veterans’ Em25 ployment and Training and the Administrator, engage in
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1 efforts each fiscal year to identify small business concerns

2 owned and controlled by eligible veterans in the United

3 States. The Secretary shall inform each small business con4 cern identified under this section that information on Fed5 eral procurement is available from the Administrator.

6 SEC. 705. STATE OF SMALL BUSINESS REPORT.

7 Section 303(b) of the Small Business Economic Policy

8 Act of 1980 (15 U.S.C. 631b(b)) is amended by striking

9 ‘‘and female-owned businesses’’ and inserting ‘‘, female10 owned, and veteran-owned businesses’’.

11 SEC. 706. LOANS TO VETERANS.

12 Section 7(a) of the Small Business Act (15 U.S.C.

13 636(a)) is amended by inserting after paragraph (7) the

14 following:

15 ‘‘(8) The Administration may make loans under

16 this subsection to small business concerns owned and

17 controlled by disabled veterans (as defined in section

18 4211(3) of title 38, United States Code).’’.

19 SEC. 707. ENTREPRENEURIAL TRAINING, COUNSELING, AND

20 MANAGEMENT ASSISTANCE.

21 The Administrator shall take such actions as may be

22 necessary to ensure that small business concerns owned and

23 controlled by eligible veterans have access to programs es24 tablished under the Small Business Act that provide entre25 preneurial training, business development assistance, coun-
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1 seling, and management assistance to small business con2 cerns, including, among others, the Small Business Develop3 ment Center program and the Service Corps of Retired Ex4 ecutives (SCORE) program.

5 SEC. 708. GRANTS FOR ELIGIBLE VETERANS’ OUTREACH

6 PROGRAMS.

7 Section 8(b) of the Small Business Act (15 U.S.C.

8 637(b)) is amended—

9 (1) in paragraph (15), by striking ‘‘and’’ at the

10 end;

11 (2) in the first paragraph designated as para12 graph (16), by striking the period at the end and in13 serting ‘‘; and’’; and

14 (3) by striking the second paragraph designated

15 as paragraph (16) and inserting the following:

16 ‘‘(17) to make grants to, and enter into contracts

17 and cooperative agreements with, educational institu18 tions, private businesses, veterans’ nonprofit commu19 nity-based organizations, and Federal, State, and

20 local departments and agencies for the establishment

21 and implementation of outreach programs for dis22 abled veterans (as defined in section 4211(3) of title

23 38, United States Code).’’.
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1 SEC. 709. OUTREACH FOR ELIGIBLE VETERANS.

2 The Administrator, the Secretary of Veterans Affairs,

3 and the Assistant Secretary of Labor for Veterans’ Employ4 ment and Training, shall develop and implement a pro5 gram of comprehensive outreach to assist eligible veterans,

6 which program shall include business training and man7 agement assistance, employment and relocation counseling,

8 and dissemination of information on veterans’ benefits and

9 veterans’ entitlements.

Attest:

Secretary.
105TH CONGRESS

1ST SESSION S. 1139

SENATE AMENDMENT TO

HOUSE AMENDMENT