Calendar No. 145

105TH CONGRESS

1ST SESSION S. 1139

[Report No. 105–62]

A BILL

To reauthorize the programs of the Small Business

Administration, and for other purposes.

AUGUST 19, 1997

Reported under the authority of July 31, 1997 and

placed on the calendar
II

Calendar No. 145

105TH CONGRESS

1ST SESSION S. 1139

[Report No. 105–62]

To reauthorize the programs of the Small Business Administration, and

for other purposes.

IN THE SENATE OF THE UNITED STATES

AUGUST 19, 1997

Mr. BOND, from the Committee on Small Business, reported under the authority of July 31, 1997 the following original bill; which was read twice

and placed on the calendar

A BILL

To reauthorize the programs of the Small Business

Administration, and for other purposes.

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

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

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

7 this Act is as follows:

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

TITLE I—AUTHORIZATIONS

Sec. 101. Authorizations.

TITLE II—FINANCIAL ASSISTANCE

Subtitle A—Microloan Program

Sec. 201. Microloan program.

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

Subtitle B—Small Business Investment Company Program

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

Sec. 212. Fees.

Sec. 213. Small business investment company program reform.

Sec. 214. Examination fees.

Subtitle C—Certified Development Company Program

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

Sec. 222. Development company debentures.

Sec. 223. Premier certified lenders program.

TITLE III—WOMEN’S BUSINESS ENTERPRISES

Sec. 301. Interagency committee participation.

Sec. 302. Reports.

Sec. 303. Council duties.

Sec. 304. Council membership.

Sec. 305. Authorization of appropriations.

Sec. 306. Women’s business centers.

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

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

TITLE IV—COMPETITIVENESS PROGRAM AND PROCUREMENT

OPPORTUNITIES

Subtitle A—Small Business Competitiveness Program

Sec. 401. Program term.

Sec. 402. Monitoring agency performance.

Sec. 403. Reports to Congress.

Sec. 404. Small Business participation in dredging.

Subtitle B—Small Business Procurement Opportunities Program

Sec. 411. Contract bundling.

Sec. 412. Definition of contract bundling.

Sec. 413. Assessing proposed contract bundling.

Sec. 414. Fostering contractor teaming.

Sec. 415. Reporting of bundled contract opportunities.

Sec. 416. Evaluating subcontract participation in awarding contracts.

Sec. 417. Improved notice of subcontracting opportunities.

Sec. 418. Deadlines for issuance of regulations.

TITLE V—MISCELLANEOUS PROVISIONS
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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.

TITLE VI—HUBZONE PROGRAM

Sec. 601. Short title.

Sec. 602. Historically underutilized business zones.

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

Sec. 604. Other technical and conforming amendments.

Sec. 605. Regulations.

Sec. 606. Report.

Sec. 607. Authorization of appropriations.

1 SEC. 2. EFFECTIVE DATE.

2 This Act and the amendments made by this Act shall

3 take effect on October 1, 1997.

4 TITLE I—AUTHORIZATIONS

5 SEC. 101. AUTHORIZATIONS.

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

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

8 and inserting the following:

9 ‘‘(c) FISCAL YEAR 1998.—

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

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

13 Act, the Administration is authorized to

14 make—

15 ‘‘(i) $28,000,000 in technical assist16 ance grants, as provided in section 7(m);

17 and

18 ‘‘(ii) $60,000,000 in loans, as pro19 vided in section 7(m).
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1 ‘‘(B) For the programs authorized by this

2 Act, the Administration is authorized to make

3 $17,040,000,000 in deferred participation loans

4 and other financings. Of such sum, the Admin5 istration is authorized to make—

6 ‘‘(i) $13,000,000,000 in general busi7 ness loans as provided in section 7(a);

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

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

10 and section 504 of the Small Business In11 vestment Act of 1958;

12 ‘‘(iii) $1,000,000,000 in loans as pro13 vided in section 7(a)(21); and

14 ‘‘(iv) $40,000,000 in loans as pro15 vided in section 7(m).

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

17 III of the Small Business Investment Act of

18 1958, the Administration is authorized to

19 make—

20 ‘‘(i) $600,000,000 in purchases of

21 participating securities; and

22 ‘‘(ii) $500,000,000 in guarantees of

23 debentures.

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

25 B of title IV of the Small Business Investment
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1 Act of 1958, the Administration is authorized

2 to enter into guarantees not to exceed

3 $2,000,000,000, of which not more than

4 $650,000,000 may be in bonds approved pursu5 ant to section 411(a)(3) of that Act.

6 ‘‘(E) The Administration is authorized to

7 make grants or enter into cooperative agree8 ments—

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

10 Executives program authorized by section

11 8(b)(1), $4,000,000; and

12 ‘‘(ii) for activities of small business

13 development centers pursuant to section

14 21(c)(3)(G), $15,000,000, to remain avail15 able until expended.

16 ‘‘(2) ADDITIONAL AUTHORIZATIONS.—

17 ‘‘(A) There are authorized to be appro18 priated to the Administration for fiscal year

19 1998 such sums as may be necessary to carry

20 out this Act, including administrative expenses

21 and necessary loan capital for disaster loans

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

23 Small Business Investment Act of 1958, includ24 ing salaries and expenses of the Administration.
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1 ‘‘(B) Notwithstanding subparagraph (A),

2 for fiscal year 1998—

3 ‘‘(i) no funds are authorized to be

4 provided to carry out the loan program au5 thorized by section 7(a)(21) except by

6 transfer from another Federal department

7 or agency to the Administration, unless the

8 program level authorized for general busi9 ness loans under subsection (l)(2)(A) is

10 fully funded; and

11 ‘‘(ii) the Administration may not ap12 prove loans on behalf of the Administra13 tion or on behalf of any other department

14 or 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,

18 except that it may approve loans under

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

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

21 ‘‘(d) FISCAL YEAR 1999.—

22 ‘‘(1) PROGRAM LEVELS.—The following pro23 gram levels are authorized for fiscal year 1999:
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1 ‘‘(A) For the programs authorized by this

2 Act, the Administration is authorized to

3 make—

4 ‘‘(i) $28,000,000 in technical assist5 ance grants as provided in section 7(m);

6 and

7 ‘‘(ii) $60,000,000 in loans, as pro8 vided in section 7(m).

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

10 Act, the Administration is authorized to make

11 $18,540,000,000 in deferred participation loans

12 and other financings. Of such sum, the Admin13 istration is authorized to make—

14 ‘‘(i) $14,000,000,000 in general busi15 ness loans as provided in section 7(a);

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

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

18 and section 504 of the Small Business In19 vestment Act of 1958;

20 ‘‘(iii) $1,000,000,000 in loans as pro21 vided in section 7(a)(21); and

22 ‘‘(iv) $40,000,000 in loans as pro23 vided in section 7(m).

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

25 III of the Small Business Investment Act of
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1 1958, the Administration is authorized to

2 make—

3 ‘‘(i) $700,000,000 in purchases of

4 participating securities; and

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

6 debentures.

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

8 B of title IV of the Small Business Investment

9 Act of 1958, the Administration is authorized

10 to enter into guarantees not to exceed

11 $2,000,000,000, of which not more than

12 $650,000,000 may be in bonds approved pursu13 ant to section 411(a)(3) of that Act.

14 ‘‘(E) The Administration is authorized to

15 make grants or enter cooperative agreements—

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

17 Executives program authorized by section

18 8(b)(1), $4,500,000; and

19 ‘‘(ii) for activities of small business

20 development centers pursuant to section

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

22 remain available until expended.

23 ‘‘(2) ADDITIONAL AUTHORIZATIONS.—

24 ‘‘(A) There are authorized to be appro25 priated to the Administration for fiscal year
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1 1999 such sums as may be necessary to carry

2 out this Act, including administrative expenses

3 and necessary loan capital for disaster loans

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

5 Small Business Investment Act of 1958, includ6 ing salaries and expenses of the Administration.

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

8 for fiscal year 1999—

9 ‘‘(i) no funds are authorized to be

10 provided to carry out the loan program au11 thorized by section 7(a)(21) except by

12 transfer from another Federal department

13 or agency to the Administration, unless the

14 program level authorized for general busi15 ness loans under subsection (n)(2)(A) is

16 fully funded; and

17 ‘‘(ii) the Administration may not ap18 prove loans on behalf of the Administra19 tion or on behalf of any other department

20 or agency, by contract or otherwise, under

21 terms and conditions other than those spe22 cifically authorized under this Act or the

23 Small Business Investment Act of 1958,

24 except that it may approve loans under
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1 section 7(a)(21) of this Act in gross

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

3 ‘‘(e) FISCAL YEAR 2000.—

4 ‘‘(1) PROGRAM LEVELS.—The following pro5 gram levels are authorized for fiscal year 2000:

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

7 Act, the Administration is authorized to

8 make—

9 ‘‘(i) $28,000,000 in technical assist10 ance grants as provided in section 7(m);

11 and

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

13 provided in section 7(m).

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

15 Act, the Administration is authorized to make

16 $21,040,000,000 in deferred participation loans

17 and other financings. Of such sum, the Admin18 istration is authorized to make—

19 ‘‘(i) $15,500,000,000 in general busi20 ness loans as provided in section 7(a);

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

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

23 and section 504 of the Small Business In24 vestment Act of 1958;
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1 ‘‘(iii) $1,000,000,000 in loans as pro2 vided in section 7(a)(21); and

3 ‘‘(iv) $40,000,000 in loans as pro4 vided in section 7(m).

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

6 III of the Small Business Investment Act of

7 1958, the Administration is authorized to

8 make—

9 ‘‘(i) $850,000,000 in purchases of

10 participating securities; and

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

12 debentures.

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

14 B of title IV of the Small Business Investment

15 Act of 1958, the Administration is authorized

16 to enter into guarantees not to exceed

17 $2,000,000,000, of which not more than

18 $650,000,000 may be in bonds approved pursu19 ant to section 411(a)(3) of that Act.

20 ‘‘(E) The Administration is authorized to

21 make grants or enter cooperative agreements—

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

23 Executives program authorized by section

24 8(b)(1), $5,000,000; and
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1 ‘‘(ii) for activities of small business

2 development centers pursuant to section

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

4 remain available until expended.

5 ‘‘(2) ADDITIONAL AUTHORIZATIONS.—

6 ‘‘(A) There are authorized to be appro7 priated to the Administration for fiscal year

8 2000 such sums as may be necessary to carry

9 out this Act, including administrative expenses

10 and necessary loan capital for disaster loans

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

12 Small Business Investment Act of 1958, includ13 ing salaries and expenses of the Administration.

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

15 for fiscal year 2000—

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

17 provided to carry out the loan program au18 thorized by section 7(a)(21) except by

19 transfer from another Federal department

20 or agency to the Administration, unless the

21 program level authorized for general busi22 ness loans under subsection (p)(2)(A) is

23 fully funded; and

24 ‘‘(ii) the Administration may not ap25 prove loans on behalf of the Administra-
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1 tion or on behalf of any other department

2 or agency, by contract or otherwise, under

3 terms and conditions other than those spe4 cifically authorized under this Act or the

5 Small Business Investment Act of 1958,

6 except that it may approve loans under

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

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

9 TITLE II—FINANCIAL

10 ASSISTANCE

11 Subtitle A—Microloan Program

12 SEC. 201. MICROLOAN PROGRAM.

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

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

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

16 (b) LOAN LOSS RESERVE FUND.—Section

17 7(m)(3)(D) of the Small Business Act (15 U.S.C.

18 636(m)(3)(D)) is amended by striking clauses (i) and (ii),

19 and inserting the following:

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

21 intermediary’s participation in the program

22 under this subsection, at a level equal to

23 not more than 15 percent of the outstand24 ing balance of the notes receivable owed to

25 the intermediary; and
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1 ‘‘(ii) in each year of participation

2 thereafter, at a level equal to not more

3 than the greater of—

4 ‘‘(I) 2 times an amount reflecting

5 the total losses of the intermediary as

6 a result of participation in the pro7 gram under this subsection, as deter8 mined by the Administrator on a case9 by-case basis; or

10 ‘‘(II) 10 percent of the outstand11 ing balance of the notes receivable

12 owed to the intermediary.’’.

13 (c) AUTHORIZATION OF APPROPRIATIONS.—Section

14 7(m) of the Small Business Act (15 U.S.C. 636(m)) is

15 amended—

16 (1) in the subsection heading, by striking

17 ‘‘DEMONSTRATION’’;

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

19 that term appears;

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

21 term appears; and

22 (4) in paragraph (12), by striking ‘‘during fis23 cal years 1995 through 1997’’ and inserting ‘‘during

24 fiscal years 1998 through 2000’’.
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1 SEC. 202. WELFARE-TO-WORK MICROLOAN PILOT PRO2 GRAM.

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

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

5 (1) in paragraph (1)(A)—

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

7 end;

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

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

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

11 ‘‘(iv) to establish a welfare-to-work

12 microloan pilot program, which shall be ad13 ministered by the Administration, in order

14 to—

15 ‘‘(I) test the feasibility of

16 supplementing the technical assistance

17 grants provided under clauses (ii) and

18 (iii) of subparagraph (B) to individ19 uals who are receiving assistance

20 under the State program funded

21 under part A of title IV of the Social

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

23 or under any comparable State-funded

24 means-tested program of assistance

25 for low-income individuals, in order to
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1 adequately assist those individuals

2 in—

3 ‘‘(aa) establishing small

4 businesses; and

5 ‘‘(bb) eliminating their de6 pendence on that assistance;

7 ‘‘(II) permit the grants described

8 in subclause (I) to be used to pay or

9 reimburse a portion of child care and

10 transportation costs of individuals de11 scribed in subclause (I) who become

12 microborrowers;

13 ‘‘(III) eliminate barriers to

14 microborrowers in establishing child

15 care businesses; and

16 ‘‘(IV) evaluate the effectiveness

17 of assistance provided under this

18 clause in helping individuals described

19 in subclause (I) to eliminate their de20 pendence on assistance described in

21 that subclause and become employed

22 in their own business;’’;

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

24 following:

25 ‘‘(F) SUPPLEMENTAL GRANTS.—
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1 ‘‘(i) IN GENERAL.—In addition to

2 grants under subparagraphs (A) and (C)

3 and paragraph (5), the Administration

4 may select from participating

5 intermediaries and recipients of grants

6 under paragraph (5), not more than 20 en7 tities in fiscal year 1998, 25 entities in fis8 cal year 1999, and 30 entities in fiscal

9 year 2000, each of whom may receive an10 nually a supplemental grant in an amount

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

12 providing additional technical assistance

13 and related services to borrowers who are

14 receiving assistance described in paragraph

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

16 apply for assistance under the program.

17 ‘‘(ii) INAPPLICABILITY OF CONTRIBU18 TION REQUIREMENTS.—The contribution

19 requirements of subparagraphs (B) and

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

21 under this subparagraph.

22 ‘‘(iii) CHILD CARE AND TRANSPOR23 TATION COSTS.—Any grant made under

24 this subparagraph may be used to pay or

25 reimburse a portion of the costs of child
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1 care and transportation incurred by a bor2 rower under the welfare-to-work microloan

3 pilot program under paragraph

4 (1)(A)(iv).’’;

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

6 following:

7 ‘‘(E) ESTABLISHMENT OF CHILD CARE ES8 TABLISHMENTS.—In addition to other eligible

9 small business concerns, borrowers under any

10 program under this subsection may include in11 dividuals who will use the loan proceeds to es12 tablish for-profit or nonprofit child care estab13 lishments.’’;

14 (4) in paragraph (9)—

15 (A) by striking the paragraph designation

16 and paragraph heading and inserting the fol17 lowing:

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

19 TECHNICAL ASSISTANCE, AND RELATED SERVICES.—

20 ’’; and

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

22 ‘‘(C) WELFARE-TO-WORK MICROLOAN

23 PILOT PROGRAM.—Of amounts made available

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

25 program under paragraph (1)(A)(iv) in any fis-
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1 cal year, the Administration may use not more

2 than 5 percent to provide technical assistance,

3 either directly or through contractors, to wel4 fare-to-work microloan pilot program grantees,

5 to ensure that, as grantees, they have the

6 knowledge, skills, and understanding of micro7 lending and welfare-to-work transition, and

8 other related issues, to operate a successful wel9 fare-to-work microloan pilot program.’’; and

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

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

12 MICROLOAN PILOT PROGRAM.—On January 31,

13 1999, and annually thereafter, the Administration

14 shall submit to the Committees on Small Business

15 of the House of Representatives and the Senate a

16 report on the welfare-to-work microloan pilot pro17 gram authorized under paragraph (1)(A)(iv), which

18 report shall include, with respect to the preceding

19 fiscal year, an analysis of the progress and effective20 ness of the program during that fiscal year, and

21 data relating to—

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

23 grantee under the program;

24 ‘‘(B) the amount of each grant;
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1 ‘‘(C) the number of individuals who re2 ceived assistance under each grant, including

3 separate data relating to—

4 ‘‘(i) the number of individuals who re5 ceived training;

6 ‘‘(ii) the number of individuals who

7 received transportation assistance; and

8 ‘‘(iii) the number of individuals who

9 received child care assistance (including

10 the number of children assisted);

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

12 grant assistance received by borrowers under

13 the program;

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

15 started with assistance provided under the pro16 gram that are operational and the number of

17 jobs created by each business;

18 ‘‘(F) the number of individuals receiving

19 training under the program who, after receiving

20 assistance under the program—

21 ‘‘(i) are employed in their own busi22 nesses; and

23 ‘‘(ii) are not receiving public assist24 ance for themselves or their children;
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1 ‘‘(G) whether and to what extent each

2 grant was used to defray the transportation and

3 child care costs of borrowers; and

4 ‘‘(H) any recommendations for legislative

5 changes to improve program operations.’’.

6 (c) AUTHORIZATION OF APPROPRIATIONS.—There

7 are authorized to be appropriated to carry out the welfare8 to-work microloan pilot program under section

9 7(m)(1)(A)(iv) of the Small Business Act (as added by

10 this section)—

11 (1) $3,000,000 for fiscal year 1998;

12 (2) $4,000,000 for fiscal year 1999; and

13 (3) $5,000,000 for fiscal year 2000.

14 Subtitle B—Small Business

15 Investment Company Program

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

17 ADMINISTRATOR.

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

19 U.S.C. 631 note) is amended in the last sentence by strik20 ing ‘‘the following fiscal year’’ and inserting ‘‘any 1 or

21 more of the 4 subsequent fiscal years’’.

22 SEC. 212. FEES.

23 Section 301 of the Small Business Investment Act

24 of 1958 (15 U.S.C. 681) is amended by adding the follow25 ing:
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1 ‘‘(e) FEES.—

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

3 prescribe fees to be paid by each applicant for a li4 cense to operate as a small business investment com5 pany under this Act.

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

7 pursuant to this subsection shall be—

8 ‘‘(A) deposited in the account for salaries

9 and expenses of the Administration; and

10 ‘‘(B) available without further appropria11 tion solely to cover contracting and other ad12 ministrative costs related to licensing.’’.

13 SEC. 213. SMALL BUSINESS INVESTMENT COMPANY PRO14 GRAM REFORM.

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

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

17 682(b)) is amended by striking ‘‘1956,’’ and all that fol18 lows before the period and inserting the following: ‘‘1956,

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

20 Reserve System or nonmember insured bank to the extent

21 permitted under applicable State law, may invest in any

22 1 or more small business investment companies, or in any

23 entity established to invest solely in small business invest24 ment companies, except that in no event shall the total
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1 amount of such investments of any such bank exceed 5

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

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

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

5 is amended—

6 (1) in subsection (b)—

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

8 the following:

9 ‘‘(D)(i) The dollar amounts in subpara10 graphs (A), (B), and (C) shall be adjusted an11 nually to reflect increases in the Consumer

12 Price Index established by the Bureau of Labor

13 Statistics of the Department of Labor.

14 ‘‘(ii) The initial adjustments made under

15 this subparagraph after the date of enactment

16 of the Small Business Reauthorization Act of

17 1997 shall reflect only increases from March

18 31, 1993.’’; and

19 (B) by striking paragraph (4) and insert20 ing the following:

21 ‘‘(4) MAXIMUM AGGREGATE AMOUNT OF LE22 VERAGE.—

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

24 subparagraph (B), the aggregate amount of

25 outstanding leverage issued to any company or
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1 companies that are commonly controlled (as de2 termined by the Administrator) may not exceed

3 $90,000,000, as adjusted annually for increases

4 in the Consumer Price Index.

5 ‘‘(B) EXCEPTIONS.—The Administrator

6 may, on a case-by-case basis—

7 ‘‘(i) approve an amount of leverage

8 that exceeds the amount described in sub9 paragraph (A) for companies under com10 mon control; and

11 ‘‘(ii) impose such additional terms and

12 conditions as the Administrator determines

13 to be appropriate to minimize the risk of

14 loss to the Administration in the event of

15 default.

16 ‘‘(C) APPLICABILITY OF OTHER PROVI17 SIONS.—Any leverage that is issued to a com18 pany or companies commonly controlled in an

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

20 result of an increase in the Consumer Price

21 Index or a decision of the Administrator, is sub22 ject to subsection (d).’’; and

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

24 following:

25 ‘‘(d) REQUIRED CERTIFICATIONS.—
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1 ‘‘(1) IN GENERAL.—The Administrator shall re2 quire each licensee, as a condition of approval of an

3 application for leverage, to certify in writing—

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

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

6 percent of the licensee’s aggregate dollar

7 amount of financings will be provided to smaller

8 enterprises; and

9 ‘‘(B) for licensees with leverage in excess

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

11 the requirements of subparagraph (A), 100 per12 cent of the licensee’s aggregate dollar amount

13 of financings made in whole or in part with le14 verage in excess of $90,000,000 will be provided

15 to smaller enterprises as defined in section

16 103(12).

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

18 under common control (as determined by the Admin19 istrator) shall be considered to be a single licensee

20 for purposes of determining both the applicability of

21 and compliance with the investment percentage re22 quirements of this subsection.’’.

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

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

25 683(g)(8)) is amended by adding at the end the following:
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1 ‘‘A company may also elect to make a distribution under

2 this paragraph at the end of any calendar quarter based

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

4 a company makes 1 or more quarterly distributions for

5 a calendar year, and the aggregate amount of those dis6 tributions exceeds the maximum amount that the company

7 could have distributed based on a single annual computa8 tion, any subsequent distribution by the company under

9 this paragraph shall be reduced by an amount equal to

10 the excess amount distributed.’’.

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

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

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

14 before the period and inserting the following: ‘‘in the fol15 lowing manner: 1 percent upon the date on which the Ad16 ministration enters into any commitment for such leverage

17 with the licensee, and the balance of 2 percent (or 3 per18 cent if no commitment has been entered into by the Ad19 ministration) on the date on which the leverage is drawn

20 by the licensee’’.

21 (e) PERIODIC ISSUANCE OF GUARANTEES AND

22 TRUST CERTIFICATES.—Section 320 of the Small Busi23 ness Investment Act of 1958 (15 U.S.C. 687m) is amend24 ed by striking ‘‘three months’’ and inserting ‘‘6 months’’.
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1 SEC. 214. EXAMINATION FEES.

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

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

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

5 subsection shall be deposited in the account for salaries

6 and expenses of the Administration, and shall be available

7 without further appropriation solely to cover the costs of

8 examinations and other program oversight activities.’’.

9 Subtitle C—Certified Development

10 Company Program

11 SEC. 221. LOANS FOR PLANT ACQUISITION, CONSTRUC12 TION, CONVERSION, AND EXPANSION.

13 Section 502 of the Small Business Investment Act

14 of 1958 (15 U.S.C. 696) is amended—

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

16 following:

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

18 used solely by the borrower to assist 1 or more iden19 tifiable small business concerns and for a sound

20 business purpose approved by the Administration.’’;

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

22 following:

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

24 financing may be used to meet the requirements

25 of subparagraph (B), if the seller subordinates

26 the interest of the seller in the property to the
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1 debenture guaranteed by the Administration.’’;

2 and

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

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

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

6 the assisted small business, if—

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

8 to occupy permanently and use not less than 75

9 percent of the space in the project after the

10 execution of any leases authorized in this para11 graph; and

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

13 that enhances the operations of the assisted

14 small business.’’.

15 SEC. 222. DEVELOPMENT COMPANY DEBENTURES.

16 Section 503 of the Small Business Investment Act

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

18 (1) in subsection (b)(7), by striking subpara19 graph (A) and inserting the following:

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

21 shall be payable by the borrower, in an amount

22 established annually by the Administration,

23 which amount shall not exceed the lesser of—

24 ‘‘(i) 0.9375 percent per year of the

25 outstanding balance of the loan; and
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1 ‘‘(ii) the minimum amount necessary

2 to reduce the cost (as that term is defined

3 in section 502 of the Federal Credit Re4 form Act of 1990) to the Administration of

5 purchasing and guaranteeing debentures

6 under this Act to zero; and’’; and

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

8 inserting ‘‘2000’’.

9 SEC. 223. PREMIER CERTIFIED LENDERS PROGRAM.

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

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

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

13 than 15’’;

14 (2) in subsection (b)(2), by striking subpara15 graphs (A) and (B) and inserting the following:

16 ‘‘(A) is an active certified development

17 company in good standing and has been an ac18 tive participant in the accredited lenders pro19 gram during the entire 12-month period preced20 ing the date on which the company submits an

21 application under paragraph (1), except that

22 the Administration may waive this requirement

23 if the company is qualified to participate in the

24 accredited lenders program;

25 ‘‘(B) has a history of—
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1 ‘‘(i) submitting to the Administration

2 adequately analyzed debenture guarantee

3 application packages; and

4 ‘‘(ii) of properly closing section 504

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

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

7 following:

8 ‘‘(c) LOSS RESERVE.—

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

10 as a premier certified lender shall establish a loss re11 serve for financing approved pursuant to this sec12 tion.

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

14 shall be based upon the greater of—

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

16 issued by such company; or

17 ‘‘(B) 10 percent of the amount of the com18 pany’s exposure as determined under subsection

19 (b)(2)(C).

20 ‘‘(3) ASSETS.—The loss reserve shall be com21 prised of any combination of the following types of

22 assets:

23 ‘‘(A) segregated funds on deposit in an ac24 count or accounts with a federally insured de25 pository institution or institutions selected by
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1 the company, subject to a collateral assignment

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

3 Administration; or

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

5 with a collateral assignment in favor of, and a

6 commercially reasonable format acceptable to,

7 the Administration.

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

9 make contributions to the loss reserve, either cash or

10 letters of credit as provided above, in the following

11 amounts and at the following intervals:

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

13 closed;

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

15 1 year after a debenture is closed; and

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

17 2 years after a debenture is closed.

18 ‘‘(5) REPLENISHMENT.—If a loss has been sus19 tained by the Administration, any portion of the loss

20 reserve, and other funds provided by the premier

21 company as necessary, may be used to reimburse the

22 Administration for the company’s 10 percent share

23 of the loss as provided in subsection (b)(2)(C). If the

24 company utilizes the reserve, within 30 days it shall

25 replace an equivalent amount of funds.
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1 ‘‘(6) DISBURSEMENTS.—The Administration

2 shall allow the certified development company to

3 withdraw from the loss reserve amounts attributable

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

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

6 local’’ and inserting ‘‘certified’’;

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

8 heading and inserting the following:

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

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

11 following:

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

13 company participating in the program under this section

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

15 than 50 percent of the loan applications for assistance

16 under section 504 pursuant to the program authorized

17 under this section.’’; and

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

19 and inserting ‘‘other lenders, specifically comparing

20 default rates and recovery rates on liquidations’’.

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

22 Business Administration shall—

23 (1) not later than 120 days after the date of

24 enactment of this Act, promulgate regulations to
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1 carry out the amendments made by subsection (a);

2 and

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

4 enactment of this Act, issue program guidelines and

5 fully implement the amendments made by subsection

6 (a).

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

8 Small Business Reauthorization and Amendments Act of

9 1994 (15 U.S.C. 697e note) is amended by striking ‘‘Octo10 ber 1, 1997’’ and inserting ‘‘October 1, 2000’’.

11 TITLE III—WOMEN’S BUSINESS

12 ENTERPRISES

13 SEC. 301. INTERAGENCY COMMITTEE PARTICIPATION.

14 Section 403 of the Women’s Business Ownership Act

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

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

17 the following:

18 ‘‘(K) The Department of Education.

19 ‘‘(L) The Environmental Protection Agen20 cy.

21 ‘‘(M) The Department of Energy.

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

23 Procurement Policy.

24 ‘‘(O) The National Aeronautics and Space

25 Administration.’’;
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1 (2) in subsection (a)(2)(A)—

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

3 1994’’ and inserting ‘‘Act of 1997’’; and

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

5 and who shall report directly to the head of the

6 agency on the status of the activities of the

7 Interagency Committee’’;

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

9 the final period the following: ‘‘and shall report di10 rectly to the Administrator on the status of the ac11 tivities on the Interagency Committee and shall

12 serve as the Interagency Committee Liaison to the

13 National Women’s Business Council established

14 under section 405’’; and

15 (4) in subsection (b), by striking ‘‘and Amend16 ments Act of 1994’’ and inserting ‘‘Act of 1997’’.

17 SEC. 302. REPORTS.

18 Section 404 of the Women’s Business Ownership Act

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

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

21 Administration,’’ after ‘‘transmit’’;

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

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

24 through (3), respectively; and
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1 (3) in paragraph (1), as redesignated, by insert2 ing before the semicolon the following: ‘‘, including

3 a status report on the progress of the Interagency

4 Committee in meeting its responsibilities and duties

5 under section 402(a)’’.

6 SEC. 303. COUNCIL DUTIES.

7 Section 406 of the Women’s Business Ownership Act

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

9 (1) in subsection (c), by inserting after ‘‘Ad10 ministrator’’ the following: ‘‘(through the Assistant

11 Administrator for the Office of Women’s Business

12 Ownership)’’; and

13 (2) in subsection (d)—

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

15 the end;

16 (B) in paragraph (5), by striking the pe17 riod at the end and inserting a semicolon; and

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

19 ‘‘(6) submit to the President and to the Com20 mittee on Small Business of the Senate and the

21 Committee on Small Business of the House of Rep22 resentatives, an annual report containing—

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

24 of the council, including a status report on the

25 Council’s progress toward meeting its duties
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1 outlined in subsections (a) and (d) of section

2 406;

3 ‘‘(B) the findings, conclusions, and rec4 ommendations of the Council; and

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

6 such legislation and administrative actions as

7 the Council considers appropriate to promote

8 the development of small business concerns

9 owned and controlled by women.

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

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

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

13 SEC. 304. COUNCIL MEMBERSHIP.

14 Section 407 of the Women’s Business Ownership Act

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

16 (1) in subsection (a), by striking ‘‘and Amend17 ments Act of 1994’’ and inserting ‘‘Act of 1997’’;

18 (2) in subsection (b)—

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

20 1994’’ and inserting ‘‘Act of 1997’’;

21 (B) by inserting after ‘‘the Administrator

22 shall’’ the following: ‘‘, after receiving the rec23 ommendations of the Chair and the Ranking

24 Member of the Minority of the Committees on
37

•S 1139 PCS

1 Small Business of the House of Representatives

2 and the Senate, ’’;

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

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

5 inserting ‘‘3’’;

6 (E) in paragraph (2)—

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

8 and

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

10 (F) in paragraph (3)—

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

12 (ii) by striking ‘‘national’’; and

13 (iii) by striking the period at the end

14 and inserting the following: ‘‘, including

15 representatives of Women’s Business Cen16 ter sites; and’’; and

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

18 ‘‘(4) 2 shall be representatives of businesses or

19 educational institutions having an interest in wom20 en’s entrepreneurship.’’; and

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

22 both urban and rural areas)’’ after ‘‘geographic’’.

23 SEC. 305. AUTHORIZATION OF APPROPRIATIONS.

24 Section 409 of the Women’s Business Ownership Act

25 of 1988 (15 U.S.C. 631 note) is amended—
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1 (1) by striking ‘‘1995 through 1997’’ and in2 serting ‘‘1998 through 2000’’; and

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

4 ‘‘$400,000’’.

5 SEC. 306. WOMEN’S BUSINESS CENTERS.

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

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

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

9 ‘‘(a) DEFINITIONS.—In this section—

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

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

12 includes any small business concern—

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

14 owned by 1 or more women; and

15 ‘‘(B) the management and daily business

16 operations of which are controlled by 1 or more

17 women; and

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

19 means the location of—

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

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

22 established in conjunction with another wom23 en’s business center in another location within

24 a State or region—
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1 ‘‘(i) that reach a distinct population

2 that would otherwise not be served;

3 ‘‘(ii) whose services are targeted to

4 women; and

5 ‘‘(iii) whose scope, function, and ac6 tivities are similar to those of the primary

7 women’s business center or centers in con8 junction with which it was established.

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

10 financial assistance to private organizations to conduct 5-

11 year projects for the benefit of small business concerns

12 owned and controlled by women. The projects shall pro13 vide—

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

15 counseling in how to apply for and secure business

16 credit and investment capital, preparing and pre17 senting financial statements, and managing cash

18 flow and other financial operations of a business

19 concern;

20 ‘‘(2) management assistance, including training

21 and counseling in how to plan, organize, staff, di22 rect, and control each major activity and function of

23 a small business concern; and

24 ‘‘(3) marketing assistance, including training

25 and counseling in identifying and segmenting domes-
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1 tic and international market opportunities, preparing

2 and executing marketing plans, developing pricing

3 strategies, locating contract opportunities, negotiat4 ing contracts, and utilizing varying public relations

5 and advertising techniques.

6 ‘‘(c) CONDITIONS OF PARTICIPATION.—

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

8 condition of receiving financial assistance authorized

9 by this section, the recipient organization shall agree

10 to obtain, after its application has been approved

11 and notice of award has been issued, cash contribu12 tions from non-Federal sources as follows:

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

14 1 non-Federal dollar for each 2 Federal dollars;

15 ‘‘(B) in the fourth year, 1 non-Federal dol16 lar for each Federal dollar; and

17 ‘‘(C) in the fifth year, 2 non-Federal dol18 lars for each Federal dollar.

19 ‘‘(2) FORM OF NON-FEDERAL CONTRIBU20 TIONS.—Not more than one-half of the non-Federal

21 sector matching assistance may be in the form of in22 kind contributions which are budget line items only,

23 including but not limited to office equipment and of24 fice space.
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1 ‘‘(3) FORM OF FEDERAL CONTRIBUTIONS.—The

2 financial assistance authorized pursuant to this sec3 tion may be made by grant, contract, or cooperative

4 agreement and may contain such provision, as nec5 essary, to provide for payments in lump sum or in6 stallments, and in advance or by way of reimburse7 ment. The Administration may disburse up to 25

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

9 recipient organization after notice of the award has

10 been issued and before the non-Federal sector

11 matching funds are obtained.

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

13 If any recipient of assistance fails to obtain the re14 quired non-Federal contribution during any project,

15 it shall not be eligible thereafter for advance dis16 bursements pursuant to paragraph (3) during the

17 remainder of that project, or for any other project

18 for which it is or may be funded by the Administra19 tion, and prior to approving assistance to such orga20 nization for any other projects, the Administration

21 shall specifically determine whether the Administra22 tion believes that the recipient will be able to obtain

23 the requisite non-Federal funding and enter a writ24 ten finding setting forth the reasons for making

25 such determination.
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1 ‘‘(d) CONTRACT AUTHORITY.—A women’s business

2 center may enter into a contract with a Federal depart3 ment or agency to provide specific assistance to women

4 and other underserved small business concerns. Perform5 ance of such contract should not hinder the women’s busi6 ness centers in carrying out the terms of the grant re7 ceived by the women’s business centers from the Adminis8 tration.

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

10 organization initially shall submit a 5-year plan to the Ad11 ministration on proposed fundraising and training activi12 ties, and a recipient organization may receive financial as13 sistance under this program for a maximum of 5 years

14 per women’s business center site.

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

16 and rank applicants in accordance with predetermined se17 lection criteria that shall be stated in terms of relative im18 portance. Such criteria and their relative importance shall

19 be made publicly available and stated in each solicitation

20 for applications made by the Administration. The criteria

21 shall include—

22 ‘‘(1) the experience of the applicant in conduct23 ing programs or ongoing efforts designed to impart

24 or upgrade the business skills of women business

25 owners or potential owners;
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1 ‘‘(2) the present ability of the applicant to com2 mence a project within a minimum amount of time;

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

4 training and services to a representative number of

5 women who are both socially and economically dis6 advantaged; and

7 ‘‘(4) the location for the women’s business cen8 ter site proposed by the applicant.

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

10 There is established within the Administration an Office

11 of Women’s Business Ownership, which shall be respon12 sible for the administration of the Administration’s pro13 grams for the development of women’s business enter14 prises (as that term is defined in section 408 of the Wom15 en’s Business Ownership Act of 1988). The Office of

16 Women’s Business Ownership shall be administered by an

17 Assistant Administrator, who shall be appointed by the

18 Administrator.

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

20 submit an annual report to the Committees on Small Busi21 ness of the House of Representatives and the Senate on

22 the effectiveness of all projects conducted under the au23 thority of this section. Such report shall provide informa24 tion concerning—
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•S 1139 PCS

1 ‘‘(1) the number of individuals receiving assist2 ance;

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

4 formed;

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

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

7 concerns; and

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

9 assisted concerns.

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

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

12 carry out the projects authorized by this section. Amounts

13 appropriated pursuant to this subsection are to be used

14 exclusively for grant awards and not for costs incurred by

15 the Administration for the management and administra16 tion of the program. Notwithstanding any other provision

17 of law, the Administration may use such expedited acquisi18 tion methods as it deems appropriate, through the Assist19 ant Administrator of the Office of Women’s Business

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

21 that the Administration shall ensure that all eligible

22 sources are provided a reasonable opportunity to submit

23 proposals.’’.

24 (b) APPLICABILITY.—Any organization conducting a

25 3-year project under section 29 of the Small Business Act
45

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1 (15 U.S.C. 656) on the day before the date of enactment

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

3 term of 5 years and receive financial assistance in accord4 ance with section 29(c) of the Small Business Act (as

5 amended by this title) subject to procedures established

6 by the Administrator in coordination with the Office of

7 Women’s Business Ownership established under section

8 29 of the Small Business Act (15 U.S.C. 656) (as amend9 ed by this title).

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

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

12 is amended by adding at the end the following:

13 ‘‘(i) ASSISTANT ADMINISTRATOR FOR THE OFFICE

14 OF WOMEN’S BUSINESS OWNERSHIP.—

15 ‘‘(1) QUALIFICATION.—The Assistant Adminis16 trator for the Office of Women’s Business Owner17 ship (hereafter in this section referred to as the ‘As18 sistant Administrator’) shall serve without regard to

19 the provisions of title 5, United States Code, govern20 ing appointments in the competitive service, and

21 without regard to chapter 51 and subchapter III of

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

23 to classification and General Schedule pay rates, but

24 at a rate of pay not to exceed the maximum of pay
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1 payable for a position at GS–17 of the General

2 Schedule.

3 ‘‘(2) RESPONSIBILITIES AND DUTIES.—

4 ‘‘(A) RESPONSIBILITIES.—The responsibil5 ities of the Assistant Administrator shall be to

6 administer the programs and services of the Of7 fice of Women’s Business Ownership estab8 lished to assist women entrepreneurs in the

9 areas of—

10 ‘‘(i) starting and operating a small

11 business;

12 ‘‘(ii) development of management and

13 technical skills;

14 ‘‘(iii) seeking Federal procurement op15 portunities; and

16 ‘‘(iv) increasing the opportunity for

17 access to capital.

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

19 the Assistant Administrator shall include—

20 ‘‘(i) administering and managing the

21 Women’s Business Centers program;

22 ‘‘(ii) recommending the annual admin23 istrative and program budgets for the Of24 fice of Women’s Business Ownership (in-
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1 cluding the budget for the Women’s Busi2 ness Centers);

3 ‘‘(iii) establishing appropriate funding

4 levels therefore;

5 ‘‘(iv) reviewing the annual budgets

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

8 ‘‘(v) selecting applicants to participate

9 in this program;

10 ‘‘(vi) implementing this section;

11 ‘‘(vii) maintaining a clearinghouse to

12 provide for the dissemination and exchange

13 of information between Women’s Business

14 Centers;

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

18 ‘‘(ix) serving as the vice chairperson

19 of the Interagency Committee on Women’s

20 Business Enterprise;

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

23 ‘‘(xi) advising the Administrator on

24 appointments to the Women’s Business

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

3 this subsection, the Assistant Administrator shall

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

7 ‘‘(j) PROGRAM EXAMINATION.—

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

9 after the date of enactment of this subsection, the

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

12 each Women’s Business Center established pursuant

13 to this section.

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

15 or renewing a contract with a Women’s Business

16 Center, the Administration shall consider the results

17 of the examination conducted pursuant to paragraph

18 (1).

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

20 Administration to enter into contracts shall be in effect

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

22 as are provided in advance in appropriations Acts. After

23 the Administration has entered a contract, either as a

24 grant or a cooperative agreement, with any applicant

25 under this section, it shall not suspend, terminate, or fail
49

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1 to renew or extend any such contract unless the Adminis2 tration provides the applicant with written notification set3 ting forth the reasons therefore and affording the appli4 cant an opportunity for a hearing, appeal, or other admin5 istrative proceeding under chapter 5 of title 5, United

6 States Code.’’.

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

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

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

14 ‘‘(a) PROCUREMENT PROJECT.—

15 ‘‘(1) FEDERAL PROCUREMENT STUDY.—

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

18 contracts and subcontracts to women-owned

19 businesses, which study shall include—

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

21 Federal agencies on contract awards to

22 women-owned businesses;

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

24 which individual Federal agencies are in

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

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

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

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

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

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

12 than October 1, 1999, the Council shall submit

13 to the Committees on Small Business of the

14 House of Representatives and the Senate, and

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

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

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

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

21 report, which shall include—

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

23 practices in attracting women-owned businesses

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

2 findings from the study required under

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

4 awards; and

5 ‘‘(ii) the private sector; and

6 ‘‘(B) recommendations for policy changes

7 in Federal procurement practices, including an

8 increase in the Federal procurement goal for

9 women-owned businesses, in order to maximize

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

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

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

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

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

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

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

2 PROGRAM AND PROCURE3 MENT OPPORTUNITIES

4 Subtitle A—Small Business

5 Competitiveness Program

6 SEC. 401. PROGRAM TERM.

7 Section 711(c) of the Small Business Competitiveness

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

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

10 SEC. 402. MONITORING AGENCY PERFORMANCE.

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

13 note) is amended to read as follows:

14 ‘‘(1) Participating agencies shall monitor the

15 attainment of their small business participation

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

17 participating agency shall be completed not later

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

19 the preceding fiscal year, from October 1 through

20 September 30.’’.

21 SEC. 403. REPORTS TO CONGRESS.

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

24 note) is amended—

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

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

5 inserting ‘‘Government Reform and Oversight’’.

6 SEC. 404. SMALL BUSINESS PARTICIPATION IN DREDGING.

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

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

10 ‘‘2000’’.

11 Subtitle B—Small Business Pro12 curement Opportunities Pro13 gram

14 SEC. 411. CONTRACT BUNDLING.

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

16 is amended by adding at the end the following:

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

18 policy expressed in subsection (a)(2)(B), relating to foster19 ing the participation of small business concerns in the con20 tracting opportunities of the Government, each Federal

21 agency, to the maximum extent practicable, shall—

22 ‘‘(1) comply with the provisions of this Act, in23 cluding section 15, expressing congressional intent

24 to foster the participation of small business concerns

25 as prime contractors;
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1 ‘‘(2) structure its contracting requirements to

2 facilitate competition by and among small business

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

5 ‘‘(3) avoid the bundling of contract require6 ments that preclude small business participation as

7 prime contractors; and

8 ‘‘(4) comply with the provisions of this Act ex9 pressing congressional intent to foster the participa10 tion of small business concerns as subcontractors

11 (including suppliers), especially section 8(d).’’.

12 SEC. 412. DEFINITION OF CONTRACT BUNDLING.

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

14 is amended by adding at the end the following:

15 ‘‘(o) CONTRACT BUNDLING.—In this Act—

16 ‘‘(1) the terms ‘contract bundling’ and ‘bun17 dling of contract requirements’ mean the practice of

18 consolidating 2 or more procurement requirements

19 of a type that were previously solicited and awarded

20 as separate smaller contracts into a single contract

21 solicitation likely to be unsuitable for award to a

22 small business concern due to—

23 ‘‘(A) the diversity and size of the elements

24 of performance specified;
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1 ‘‘(B) the aggregate dollar value of the an2 ticipated award;

3 ‘‘(C) the geographical dispersion of the

4 contract performance sites; or

5 ‘‘(D) any combination of the factors de6 scribed in subparagraphs (A), (B), and (C); and

7 ‘‘(2) the term ‘bundled contract’ means a con8 tract that is entered into to meet requirements that

9 are consolidated in a bundling of contract require10 ments.

11 SEC. 413. ASSESSING PROPOSED CONTRACT BUNDLING.

12 (a) IN GENERAL.—Section 15(b) of the Small Busi13 ness Act (15 U.S.C. 644(b)) is amended to read as follows:

14 ‘‘(b) PROCUREMENT STRATEGIES; CONTRACT BUN15 DLING.—

16 ‘‘(1) MAXIMUM PARTICIPATION BY SMALL BUSI17 NESSES.—

18 ‘‘(A) IN GENERAL.—To the maximum ex19 tent practicable, procurement strategies used by

20 the various agencies having contracting author21 ity shall facilitate the maximum participation of

22 small business concerns as prime contractors.

23 ‘‘(B) STRATEGY SPECIFICATIONS.—If a

24 proposed procurement strategy for a procure25 ment involves a bundling of contract require-
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1 ments, the proposed procurement strategy

2 shall—

3 ‘‘(i) identify specifically the benefits

4 anticipated from the bundling of contract

5 requirements;

6 ‘‘(ii) contain an assessment of the spe7 cific impediments to participation by small

8 business concerns as prime contractors and

9 specify actions designed to maximize small

10 business participation as subcontractors

11 (including suppliers) at various tiers; and

12 ‘‘(iii) include a specific determination

13 that the anticipated benefits of the pro14 posed bundled contract justify its use.

15 ‘‘(2) ADMINISTRATION REVIEW.—

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

17 acting through 1 of its Procurement Center

18 Representatives (or such other employee of the

19 Administration as may be designated), may re20 view, for a period of not more than 30 days, a

21 proposed solicitation for compliance with the re22 quirements of this subsection and subsection

23 (a). A review under this subparagraph shall

24 occur concurrently with other required reviews

25 prior to the issuance of the solicitation.
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1 ‘‘(B) PROCEDURES.—Not later than 15

2 days after receipt from a procurement activity

3 of a Federal agency of any proposed contract

4 solicitation that in the opinion of the Adminis5 tration’s representative would constitute a bun6 dling of contract requirements, the Administra7 tion’s representative shall—

8 ‘‘(i) request the head of the procure9 ment activity to furnish recommendations

10 to modify the procurement strategy and

11 the proposed solicitation for the purpose of

12 increasing the probability of participation

13 by small businesses as prime contractors;

14 or

15 ‘‘(ii) recommend to the procurement

16 activity an alternative procurement strat17 egy that would increase the probability of

18 participation by small businesses as prime

19 contractors.

20 ‘‘(C) DISPUTE RESOLUTION.—Whenever

21 the Administration’s representative and the

22 head of the procurement activity fail to agree to

23 a revision of the procurement strategy (or the

24 proposed solicitation) under subparagraph (B),

25 the matter may be submitted by the Adminis-
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1 trator to the head of the Federal agency for de2 termination.

3 ‘‘(D) SUPPORTING INFORMATION.—Any

4 determination by an agency head to issue a con5 tract solicitation with no revision of the pro6 curement strategy (or the proposed solicitation)

7 shall be supported by findings and an assess8 ment addressing the matters described in sub9 paragraph (E). Such determination and find10 ings shall be submitted to the Administrator.

11 ‘‘(E) SPECIFIC FINDINGS.—The findings

12 made by an agency head to accompany a deter13 mination described in subparagraph (D), shall

14 include—

15 ‘‘(i) the estimated benefits of the pro16 posed bundling of contract requirements,

17 including improved performance of pro18 grammatic objectives to be met by the con19 tract, savings in terms of acquisition costs

20 and contract administration costs, and how

21 such estimated benefits were calculated;

22 ‘‘(ii) specific adverse impacts of the

23 bundling of contract requirements on the

24 participation of small business concerns as

25 prime contractors, especially small business
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1 concerns that are performing (or have pre2 viously performed) contracts of the type

3 that are proposed for inclusion in the solic4 itation for the bundled contract;

5 ‘‘(iii) specific actions to foster the par6 ticipation of small business concerns in the

7 performance of the bundled contract as

8 subcontractors (including suppliers) at var9 ious tiers; and

10 ‘‘(iv) such other matters as the agency

11 head considers appropriate.

12 ‘‘(F) TIMING.—Unless otherwise author13 ized by the head of the agency for urgent and

14 compelling reasons, the solicitation shall not be

15 issued until the determination under subpara16 graph (D) has been made by such agency head

17 and submitted to the Administrator.’’.

18 (b) RESPONSIBILITIES OF AGENCY SMALL BUSINESS

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

20 (15 U.S.C. 644(k)) is amended—

21 (1) by redesignating paragraphs (5) through

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

23 and

24 (2) by inserting after paragraph (4) the follow25 ing:
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1 ‘‘(5) identify and report on proposed solicita2 tions that involve bundling of contract requirements,

3 and work with the agency acquisition officials and

4 the Administration to revise the procurement strate5 gies for such proposed solicitations to increase the

6 probability of participation by small businesses as

7 prime contractors, or to facilitate small business

8 participation as subcontractors and suppliers, if a

9 solicitation for a bundled contract is to be issued;’’.

10 SEC. 414. FOSTERING CONTRACTOR TEAMING.

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

12 644(b)) (as amended by section 413 of this title) is

13 amended by adding at the end the following:

14 ‘‘(3) CONTRACT TEAMING.—

15 ‘‘(A) IN GENERAL.—A small business con16 cern intending to submit an offer for bundled

17 contract requirements may propose to the Ad18 ministration for approval a team of subcontrac19 tors meeting the requirements of subparagraph

20 (B) without regard to the requirements of sub21 section (o) or the regulations of the Administra22 tion regarding findings of affiliation or control,

23 either direct or indirect.
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1 ‘‘(B) TEAM COMPOSITION.—A subcontract2 ing team proposed for a contract under sub3 paragraph (A) may include—

4 ‘‘(i) other small business concerns;

5 and

6 ‘‘(ii) business concerns other than

7 small business concerns, whose aggregate

8 participation may not represent more than

9 25 percent of the anticipated total value of

10 the contract.

11 ‘‘(C) OTHER REQUIREMENTS.—Any sub12 contracting team proposed under subparagraph

13 (A) and approved by the Administrator shall be

14 subject to such alternative requirements regard15 ing subcontracting and affiliation or control as

16 may be specified by the Administrator.’’.

17 SEC. 415. REPORTING OF BUNDLED CONTRACT OPPORTU18 NITIES.

19 (a) DATA COLLECTION REQUIRED.—

20 (1) IN GENERAL.—The Federal Procurement

21 Data System described in section 6(d)(4)(A) of the

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

23 405(d)(4)(A)) shall be modified to collect data re24 garding contract bundling.
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1 (2) DETERMINATION.—The data collected

2 under paragraph (1) shall reflect the determination

3 made by the employee of the Small Business Admin4 istration exercising the responsibilities of section

5 15(b) of the Small Business Act (15 U.S.C. 644(b))

6 (as amended by section 413(a) of this title) regard7 ing whether a particular solicitation constitutes con8 tract bundling.

9 (b) DEFINITIONS.—In this section, the term ‘‘con10 tract bundling’’ has the meaning given that term in sec11 tion 3(o) of the Small Business Act (15 U.S.C. 632(o))

12 (as added by section 412 of this title).

13 SEC. 416. EVALUATING SUBCONTRACT PARTICIPATION IN

14 AWARDING CONTRACTS.

15 (a) IN GENERAL.—Section 8(d)(4) of the Small Busi16 ness Act (15 U.S.C. 637(d)(4)) is amended by striking

17 ‘‘(4)(A)’’ and all that follows through the end of subpara18 graph (D) and inserting the following:

19 ‘‘(4)(A) Each solicitation for the award of a contract

20 (or subcontract) with an anticipated value which may ex21 ceed $1,000,000, in the case of a contract for construction

22 (including repair, alteration, or demolition of existing con23 struction) or which may exceed $500,000, in the case of

24 a contract for all other types of services or supplies, that

25 can reasonably be expected to offer opportunities for sub-
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1 contracting in the business judgment of the contracting

2 officer, shall—

3 ‘‘(i) in the case of a contract to be awarded

4 using competitive procedures, include solicitation

5 provisions described in subparagraph (B);

6 ‘‘(ii) in the case of a contract to be awarded

7 using procedures other than competitive procedures,

8 require submission and acceptance of a subcontract9 ing plan pursuant to subparagraph (C); and

10 ‘‘(iii) in the case of a subcontract award, re11 quire submission and acceptance of a subcontracting

12 plan pursuant to subparagraph (D).

13 ‘‘(B) With respect to subcontract participation by the

14 various types of small business concerns listed in para15 graph (1), the solicitation shall—

16 ‘‘(i) specify, whenever practicable, minimum

17 percentages for subcontract participation by the var18 ious types of small business concerns listed in para19 graph (1), determined in the exercise of business

20 judgment by the contracting officer considering the

21 matters described in subparagraph (F)(iii), that

22 must be met for an offer to be considered respon23 sive;

24 ‘‘(ii) assign a weight of not less than the nu25 merical equivalent of 5 percent of the total of all
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1 evaluation factors to a contract award evaluation

2 factor that recognizes incrementally higher rates for

3 participation by small business concerns in sub4 contracts in excess of the minimum percentages, if

5 any;

6 ‘‘(iii) require the successful offeror to submit a

7 subcontracting plan that incorporates the informa8 tion prescribed in paragraph (6); and

9 ‘‘(iv) in the evaluation of past performance by

10 an offeror, assign a significant weight to the

11 offeror’s attainment of subcontract participation

12 goals.

13 ‘‘(C)(i) The apparent successful offeror for a contract

14 to be awarded using procedures other than competitive

15 procedures shall negotiate with the contracting officer—

16 ‘‘(I) separate goals for subcontract participation

17 by the various types of small business concerns list18 ed in paragraph (1); and

19 ‘‘(II) a plan for the attainment of the goals that

20 incorporates the information prescribed in paragraph

21 (6).

22 ‘‘(ii) The goals and plan shall reflect the maximum

23 practicable opportunity for participation of small business

24 concerns in the performance of the contract, considering

25 the matters described in subparagraph (F)(iii). If, within
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1 the time limits, prescribed in the Federal Acquisition Reg2 ulation, the apparent successful offeror fails to negotiate

3 such goals and subcontracting plan, the offeror shall be

4 ineligible for award of the contract.

5 ‘‘(D) An apparent subcontract awardee shall nego6 tiate with the prime contractor (or higher-tier subcontrac7 tor) a goal for the participation of the various types of

8 small business concerns listed in paragraph (1) in the per9 formance of the subcontract, and a plan for the attain10 ment of those goals which incorporates the information

11 prescribed in paragraph (6). The goals and plan shall pro12 vide for the maximum practicable opportunity for the par13 ticipation of such small business concerns in the perform14 ance of the subcontract, considering the matters described

15 in subparagraph (F)(iii).’’.

16 (b) CONFORMING AMENDMENTS.—Section 8(d) of

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

18 (1) by striking paragraph (5) and inserting the

19 following:

20 ‘‘(5) [Reserved.]’’;

21 (2) in paragraph (6)—

22 (A) in the matter preceding subparagraph

23 (A), by striking ‘‘or (5)’’; and

24 (B) in subparagraph (D), by striking ‘‘or

25 (5)’’;
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1 (3) in paragraph (7), by striking ‘‘(4), (5),’’

2 and inserting ‘‘(4)’’; and

3 (4) in paragraph (10)—

4 (A) in the matter preceding subparagraph

5 (A), by striking ‘‘(4), (5),’’ and inserting ‘‘(4)’’;

6 and

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

8 ‘‘paragraphs (4) and (5)’’ and inserting ‘‘para9 graph (4)’’.

10 SEC. 417. IMPROVED NOTICE OF SUBCONTRACTING OPPOR11 TUNITIES.

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

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

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

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

19 opportunities may be submitted for publication in

20 the Commerce Business Daily by—

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

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

2 excess of $10,000.

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

4 subcontracting opportunity shall include—

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

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

8 subsection (f); and

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

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

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

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

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

17 SEC. 418. DEADLINES FOR ISSUANCE OF REGULATIONS.

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

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

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

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

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

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

9 TITLE V—MISCELLANEOUS

10 PROVISIONS

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

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

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

15 striking paragraph (1) and inserting the following:

16 ‘‘(1) REQUIRED EXPENDITURE AMOUNTS.—

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

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

21 year, is authorized to expend with small business

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

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

2 under this section.’’.

3 (b) PILOT PROGRAM.—

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

6 the end the following:

7 ‘‘(s) PILOT PROGRAM.—

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

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

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

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

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

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

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

18 50 percent of the amount provided under this

19 subsection.

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

21 available to carry out this section for fiscal year

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

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

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

2 States in the programs under this section.

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

4 assistance provided to an eligible State under this

5 subsection in any fiscal year—

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

7 amount of matching funds from non-Federal

8 sources provided by the State; and

9 ‘‘(B) shall not exceed $100,000.

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

11 to an eligible State under this subsection shall be

12 used by the State, in consultation with State and

13 local departments and agencies, for programs and

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

16 under this section, including—

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

19 ‘‘(i) the number of program awards

20 under this section made to small business

21 concerns in the State; and

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

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

2 support to small business concerns in the State

3 that are involved in research and development;

4 and

5 ‘‘(C) the development and dissemination of

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

8 business concerns in the State.’’.

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

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

12 SEC. 502. SMALL BUSINESS DEVELOPMENT CENTERS.

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

15 (1) in paragraph (1)—

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

17 center operating pursuant to section 29,’’ after

18 ‘‘credit or finance corporation,’’;

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

20 center operating pursuant to section 29’’ after

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

22 and

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

24 centers operating pursuant to section 29’’ after

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

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

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

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

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

10 Business Development Center applicant and the

11 Administration.’’; and

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

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

14 Development Center shall review and coordinate

15 public and private partnerships and cosponsorships

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

18 and a State basis.’’;

19 (3) in paragraph (4)(C)—

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

21 following:

22 ‘‘(i) IN GENERAL.—

23 ‘‘(I) GRANT AMOUNT.—Subject to

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

2 sum of—

3 ‘‘(aa) the State’s pro rata share

4 of the national program, based upon

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

7 United States; and

8 ‘‘(bb) $300,000 in fiscal year

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

10 and $500,000 in each fiscal year

11 thereafter.

12 ‘‘(II) PRO RATA REDUCTIONS.—If the

13 amount made available to carry out this

14 section for any fiscal year is insufficient to

15 carry out subclause (I), the Administration

16 shall make pro rata reductions in the

17 amounts otherwise payable to States under

18 this clause.’’; and

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

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

21 the following:

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

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

2 ‘‘(II) $90,000,000 for fiscal year

3 1999; and

4 ‘‘(III) $95,000,000 for fiscal year

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

6 (4) in paragraph (6)—

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

8 ‘‘and’’ at the end;

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

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

11 (C) inserting after subparagraph (B) the

12 following:

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

15 startups or expansions, veteran-owned small

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

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

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

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

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

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

4 ‘‘(i) working with individuals to increase

5 awareness of basic credit practices and credit

6 requirements;

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

9 applications, and contract proposals;

10 ‘‘(iii) working with the Administration to

11 develop and provide informational tools for use

12 in working with individuals on pre-business

13 startup planning, existing business expansion,

14 and export planning; and

15 ‘‘(iv) working with individuals referred by

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

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

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

20 by moving each margin two ems to the right;

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

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

23 (D) by striking subparagraph (H), and in24 serting the following:
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1 ‘‘(H) working with the Administration to notify

2 small businesses through outreach programs of regu3 lations that affect small businesses and making

4 counseling, conferences, and materials available on

5 methods of compliance;’’;

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

7 ‘‘and’’ at the end;

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

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

10 (G) by inserting after subparagraph (R)

11 the following:

12 ‘‘(S) providing counseling and technology devel13 opment when necessary to help small businesses find

14 solutions for complying with environmental, energy,

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

16 regulations.’’;

17 (2) in paragraph (5)—

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

19 right;

20 (B) by striking ‘‘paragraph (a)(1)’’ and in21 serting ‘‘subsection (a)(1)’’;

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

23 ‘‘whichever’’; and

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

25 ‘‘last,’’;
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1 (3) by redesignating paragraphs (4) through

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

3 (4) in paragraph (3), in the undesignated mate4 rial following subparagraph (S) (as added by this

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

6 following:

7 ‘‘(4) A small’’.

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

9 Small Business Act (15 U.S.C. 648(l)) is amended by add10 ing at the end the following: ‘‘If any contract under this

11 section with an entity that is in compliance with this sec12 tion is not renewed or extended, any award of a contract

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

14 competitive basis.’’.

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

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

17 adding at the end the following:

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

19 business development center shall not impose or otherwise

20 collect a fee or other compensation in connection with the

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

22 SEC. 503. PILOT PREFERRED SURETY BOND GUARANTEE

23 PROGRAM EXTENSION.

24 Section 207 of the Small Business Administration

25 Reauthorization and Amendment Act of 1988 (15 U.S.C.
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1 694b note) is amended by striking ‘‘September 30, 1997’’

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

3 SEC. 504. EXTENSION OF COSPONSORSHIP AUTHORITY.

4 Section 401(a)(2) of the Small Business Administra5 tion Reauthorization and Amendments Act of 1994 (15

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

7 1997’’ and inserting ‘‘September 30, 2000’’.

8 TITLE VI—HUBZONE PROGRAM

9 SEC. 601. SHORT TITLE.

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

11 1997’’.

12 SEC. 602. HISTORICALLY UNDERUTILIZED BUSINESS

13 ZONES.

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

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

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

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

18 this Act:

19 ‘‘(1) HISTORICALLY UNDERUTILIZED BUSINESS

20 ZONE.—The term ‘historically underutilized business

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

22 ‘‘(A) qualified census tracts;

23 ‘‘(B) qualified nonmetropolitan counties; or

24 ‘‘(C) lands within the external boundaries

25 of an Indian reservation.
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1 ‘‘(2) HUBZONE.—The term ‘HUBZone’ means

2 a historically underutilized business zone.

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

4 The term ‘HUBZone small business concern’ means

5 a small business concern—

6 ‘‘(A) that is owned and controlled by 1 or

7 more persons, each of whom is a United States

8 citizen; and

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

10 in a HUBZone; or

11 ‘‘(4) QUALIFIED AREAS.—

12 ‘‘(A) QUALIFIED CENSUS TRACT.—The

13 term ‘qualified census tract’ has the meaning

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

15 the Internal Revenue Code of 1986.

16 ‘‘(B) QUALIFIED NONMETROPOLITAN

17 COUNTY.—The term ‘qualified nonmetropolitan

18 county’ means any county—

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

20 data available from the Bureau of the Cen21 sus of the Department of Commerce—

22 ‘‘(I) is not located in a metropoli23 tan statistical area (as that term is

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

25 Internal Revenue Code of 1986); and
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1 ‘‘(II) in which the median house2 hold income is less than 80 percent of

3 the nonmetropolitan State median

4 household income; or

5 ‘‘(ii) that, based on the most recent

6 data available from the Secretary of Labor,

7 has an unemployment rate that is not less

8 than 140 percent of the statewide average

9 unemployment rate for the State in which

10 the county is located.

11 ‘‘(5) QUALIFIED HUBZONE SMALL BUSINESS

12 CONCERN.—

13 ‘‘(A) IN GENERAL.—A HUBZone small

14 business concern is ‘qualified’, if—

15 ‘‘(i) the small business concern has

16 certified in writing to the Administrator

17 (or the Administrator otherwise deter18 mines, based on information submitted to

19 the Administrator by the small business

20 concern, or based on certification proce21 dures, which shall be established by the

22 Administration by regulation) that—

23 ‘‘(I) it is a HUBZone small busi24 ness concern;
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1 ‘‘(II) not less than 35 percent of

2 the employees of the small business

3 concern reside in a HUBZone, and

4 the small business concern will at5 tempt to maintain this employment

6 percentage during the performance of

7 any contract awarded to the small

8 business concern on the basis of a

9 preference provided under section

10 31(b); and

11 ‘‘(III) with respect to any sub12 contract entered into by the small

13 business concern pursuant to a con14 tract awarded to the small business

15 concern under section 31, the small

16 business concern will ensure that—

17 ‘‘(aa) in the case of a con18 tract for services (except con19 struction), not less than 50 per20 cent of the cost of contract per21 formance incurred for personnel

22 will be expended for its employ23 ees or for employees of other

24 HUBZone small business con25 cerns; and
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1 ‘‘(bb) in the case of a con2 tract for procurement of supplies

3 (other than procurement from a

4 regular dealer in such supplies),

5 not less than 50 percent of the

6 cost of manufacturing the sup7 plies (not including the cost of

8 materials) will be incurred in

9 connection with the performance

10 of the contract in a HUBZone by

11 1 or more HUBZone small busi12 ness concerns; and

13 ‘‘(ii) no certification made or informa14 tion provided by the small business concern

15 under clause (i) has been, in accordance

16 with the procedures established under sec17 tion 31(c)(1)—

18 ‘‘(I) successfully challenged by an

19 interested party; or

20 ‘‘(II) otherwise determined by the

21 Administrator to be materially false.

22 ‘‘(B) CHANGE IN PERCENTAGES.—The Ad23 ministrator may utilize a percentage other than

24 the percentage specified in under subclause (IV)

25 or (V) of subparagraph (A)(i), if the Adminis-
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1 trator determines that such action is necessary

2 to reflect conventional industry practices among

3 small business concerns that are below the nu4 merical size standard for businesses in that in5 dustry category.

6 ‘‘(C) CONSTRUCTION AND OTHER CON7 TRACTS.—The Administrator shall promulgate

8 final regulations imposing requirements that

9 are similar to those specified in subclauses (IV)

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

11 general and specialty construction, and on con12 tracts for any other industry category that

13 would not otherwise be subject to those require14 ments. The percentage applicable to any such

15 requirement shall be determined in accordance

16 with subparagraph (B).

17 ‘‘(D) LIST OF QUALIFIED SMALL BUSINESS

18 CONCERNS.—The Administrator shall establish

19 and maintain a list of qualified HUBZone small

20 business concerns, which list shall, to the extent

21 practicable—

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

23 type of business with respect to each such

24 small business concern;
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1 ‘‘(ii) be updated by the Administrator

2 not less than annually; and

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

4 Federal agency or other entity.’’.

5 (b) FEDERAL CONTRACTING.—

6 (1) IN GENERAL.—The Small Business Act (15

7 U.S.C. 631 et seq.) is amended—

8 (A) by redesignating section 31 as section

9 32; and

10 (B) by inserting after section 30 the fol11 lowing:

12 ‘‘SEC. 31. HUBZONE PROGRAM.

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

14 Administration a program to be carried out by the Admin15 istrator to provide for Federal contracting assistance to

16 qualified HUBZone small business concerns in accordance

17 with this section.

18 ‘‘(b) ELIGIBLE CONTRACTS.—

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

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

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

22 the Office of Federal Procurement Policy Act

23 (41 U.S.C. 423(f)(5)); and

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

25 and open competition’ have the meanings given
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1 such terms in section 4 of the Office of Federal

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

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

4 (3), a contract opportunity offered for award pursu5 ant to this section shall be awarded on the basis of

6 competition restricted to qualified HUBZone small

7 business concerns, if there is a reasonable expecta8 tion that not less than 2 qualified HUBZone small

9 business concerns will submit offers and that award

10 can be made at a fair market price.

11 ‘‘(3) ALTERNATE AUTHORITY.—Notwithstand12 ing any other provision of law, a contracting officer

13 may award sole source contracts under this section

14 to any qualified HUBZone small business concern,

15 if—

16 ‘‘(A) the qualified HUBZone small busi17 ness concern is determined to be a responsible

18 contractor with respect to performance of such

19 contract opportunity;

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

21 contract (including options) will not exceed—

22 ‘‘(i) $5,000,000, in the case of a con23 tract opportunity assigned a standard in24 dustrial classification code for manufactur25 ing; or
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1 ‘‘(ii) $3,000,000, in the case of all

2 other contract opportunities; and

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

4 officer, the contract award can be made at a

5 fair and reasonable price.

6 ‘‘(4) PRICE EVALUATION PREFERENCE IN FULL

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

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

9 open competition, the price offered by a small busi10 ness concern shall be deemed as being lower than

11 the price offered by another offeror (other than an12 other small business concern), if the price offered by

13 the qualified HUBZone small business concern is

14 not more than 10 percent higher than the price of15 fered by the otherwise lowest, responsive, and re16 sponsible offeror.

17 ‘‘(5) RELATIONSHIP TO OTHER CONTRACTING

18 PREFERENCES.—

19 ‘‘(A) SUBORDINATE RELATIONSHIP.—A

20 procurement may not be made from a source on

21 the basis of a preference provided in paragraph

22 (2), (3), or (4), if the procurement would other23 wise be made from a different source under sec24 tion 4124 or 4125 of title 18, United States

25 Code, or the Javits-Wagner-O’Day Act.
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1 ‘‘(B) PARITY RELATIONSHIP.—The provi2 sions of paragraphs (2), (3), and (4) shall not

3 limit the discretion of a contracting officer to

4 let any procurement contract to the Administra5 tion under section 8(a). Notwithstanding sec6 tion 8(a), the Administration may not appeal

7 an adverse decision of any contracting officer

8 declining to let a procurement contract to the

9 Administration, if the procurement is made to

10 a qualified HUBZone small business concern on

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

12 (3), or (4).

13 ‘‘(c) ENFORCEMENT; PENALTIES.—

14 ‘‘(1) VERIFICATION OF ELIGIBILITY.—In carry15 ing out this section, the Administrator shall estab16 lish procedures relating to—

17 ‘‘(A) the filing, investigation, and disposi18 tion by the Administration of any challenge to

19 the eligibility of a small business concern to re20 ceive assistance under this section (including a

21 challenge, filed by an interested party, relating

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

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

25 and
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1 ‘‘(B) verification by the Administrator of

2 the accuracy of any certification made or infor3 mation provided to the Administration by a

4 small business concern under section 3(p)(5).

5 ‘‘(2) EXAMINATIONS.—The procedures estab6 lished under paragraph (1) may provide for program

7 examinations (including random program examina8 tions) by the Administrator of any small business

9 concern making a certification or providing informa10 tion to the Administrator under section 3(p)(5).

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

12 of the Administrator, the Secretary of Labor, the

13 Secretary of Housing and Urban Development, and

14 the Secretary of the Interior (or the Assistant Sec15 retary for Indian Affairs), shall promptly provide to

16 the Administrator such information as the Adminis17 trator determines to be necessary to carry out this

18 subsection.

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

20 described in section 16(d), any small business con21 cern that is determined by the Administrator to have

22 misrepresented the status of that concern as a

23 ‘HUBZone small business concern’ for purposes of

24 this section, shall be subject to—
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1 ‘‘(A) section 1001 of title 18, United

2 States Code; and

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

4 31, United States Code.’’.

5 (2) INITIAL LIMITED APPLICABILITY.—During

6 the period beginning on the date of enactment of

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

8 31 of the Small Business Act (as added by para9 graph (1) of this subsection) shall apply only to pro10 curements by—

11 (A) the Department of Defense;

12 (B) the Department of Agriculture;

13 (C) the Department of Health and Human

14 Services;

15 (D) the Department of Transportation;

16 (E) the Department of Energy;

17 (F) the Department of Housing and Urban

18 Development;

19 (G) the Environmental Protection Agency;

20 (H) the National Aeronautics and Space

21 Administration;

22 (I) the General Services Administration;

23 and

24 (J) the Department of Veterans Affairs.
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1 SEC. 603. TECHNICAL AND CONFORMING AMENDMENTS TO

2 THE SMALL BUSINESS ACT.

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

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

5 (1) in paragraph (1)—

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

7 small business concerns owned and controlled

8 by socially and economically disadvantaged indi9 viduals’’ and inserting ‘‘, qualified HUBZone

10 small business concerns, small business con11 cerns owned and controlled by socially and eco12 nomically disadvantaged individuals’’; and

13 (B) in the second sentence, by inserting

14 ‘‘qualified HUBZone small business concerns,’’

15 after ‘‘small business concerns,’’;

16 (2) in paragraph (3)—

17 (A) by inserting ‘‘qualified HUBZone

18 small business concerns,’’ after ‘‘small business

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

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

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

22 HUBZone small business concern’ has the meaning

23 given that term in section 3(p) of the Small Busi24 ness Act.’’;

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

26 business concerns and’’ and inserting ‘‘small busi-
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1 ness concerns, qualified HUBZone small business

2 concerns, and’’;

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

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

5 business concerns,’’ each place that term appears;

6 and

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

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

9 business concerns,’’.

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

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

12 (1) in subsection (g)(1)—

13 (A) by inserting ‘‘qualified HUBZone

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

15 concerns,’’ each place that term appears;

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

17 percent’’ and inserting ‘‘23 percent’’; and

18 (C) by inserting after the second sentence

19 the following: ‘‘The Governmentwide goal for

20 participation by qualified HUBZone small busi21 ness concerns shall be established at not less

22 than 1 percent of the total value of all prime

23 contract awards for fiscal year 1999, not less

24 than 1.5 percent of the total value of all prime

25 contract awards for fiscal year 2000, not less
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1 than 2 percent of the total value of all prime

2 contract awards for fiscal year 2001, not less

3 than 2.5 percent of the total value of all prime

4 contract awards for fiscal year 2002, and not

5 less than 3 percent of the total value of all

6 prime contract awards for fiscal year 2003 and

7 each fiscal year thereafter.’’;

8 (2) in subsection (g)(2)—

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

10 small business concerns owned and controlled

11 by socially and economically disadvantaged indi12 viduals’’ and inserting ‘‘, by qualified HUBZone

13 small business concerns, by small business con14 cerns owned and controlled by socially and eco15 nomically disadvantaged individuals’’;

16 (B) in the second sentence, by inserting

17 ‘‘qualified HUBZone small business concerns,’’

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

19 (C) in the fourth sentence, by striking ‘‘by

20 small business concerns owned and controlled

21 by socially and economically disadvantaged indi22 viduals and participation by small business con23 cerns owned and controlled by women’’ and in24 serting ‘‘by qualified HUBZone small business

25 concerns, by small business concerns owned and
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1 controlled by socially and economically dis2 advantaged individuals, and by small business

3 concerns owned and controlled by women’’; and

4 (3) in subsection (h), by inserting ‘‘qualified

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

6 business concerns,’’ each place that term appears.

7 (c) OFFENSES AND PENALTIES.—Section 16 of the

8 Small Business Act (15 U.S.C. 645) is amended—

9 (1) in subsection (d)(1)—

10 (A) by inserting ‘‘, a ‘qualified HUBZone

11 small business concern’,’’ after ‘‘ ‘small business

12 concern’,’’; and

13 (B) in subparagraph (A), by striking ‘‘sec14 tion 9 or 15’’ and inserting ‘‘section 9, 15, or

15 31’’; and

16 (2) in subsection (e), by inserting ‘‘, a

17 ‘HUBZone small business concern’,’’ after ‘‘ ‘small

18 business concern’,’’.

19 SEC. 604. OTHER TECHNICAL AND CONFORMING AMEND20 MENTS.

21 (a) TITLE 10, UNITED STATES CODE.—Section 2323

22 of title 10, United States Code, is amended—

23 (1) in subsection (a)(1)(A), by inserting before

24 the semicolon the following: ‘‘, and qualified

25 HUBZone small business concerns (as that term is
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1 defined in section 3(p) of the Small Business Act)’’;

2 and

3 (2) in subsection (f)(1), by inserting ‘‘or as a

4 qualified HUBZone small business concern (as that

5 term is defined in section 3(p) of the Small Business

6 Act)’’ after ‘‘(as described in subsection (a))’’.

7 (b) FEDERAL HOME LOAN BANK ACT.—Section

8 21A(b)(13) of the Federal Home Loan Bank Act (12

9 U.S.C. 1441a(b)(13)) is amended—

10 (1) by striking ‘‘concerns and small’’ and in11 serting ‘‘concerns, small’’; and

12 (2) by inserting ‘‘, and qualified HUBZone

13 small business concerns (as that term is defined in

14 section 3(p) of the Small Business Act)’’ after ‘‘dis15 advantaged individuals’’.

16 (c) SMALL BUSINESS ECONOMIC POLICY ACT OF

17 1980.—Section 303(e) of the Small Business Economic

18 Policy Act of 1980 (15 U.S.C. 631b(e)) is amended—

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

20 end;

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

22 the end and inserting ‘‘; and’’; and

23 (3) by adding at the end the following:
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1 ‘‘(3) qualified HUBZone small business concern

2 (as that term is defined in section 3(p) of the Small

3 Business Act).’’.

4 (d) SMALL BUSINESS INVESTMENT ACT OF 1958.—

5 Section 411(c)(3)(B) of the Small Business Investment

6 Act of 1958 (15 U.S.C. 694b(c)(3)(B)) is amended by in7 serting before the semicolon the following: ‘‘, or to a quali8 fied HUBZone small business concern, as that term is de9 fined in section 3(p) of the Small Business Act’’.

10 (e) TITLE 31, UNITED STATES CODE.—

11 (1) CONTRACTS FOR COLLECTION SERVICES.—

12 Section 3718(b) of title 31, United States Code, is

13 amended—

14 (A) in paragraph (1)(B), by inserting ‘‘and

15 law firms that are qualified HUBZone small

16 business concerns (as that term is defined in

17 section 3(p) of the Small Business Act)’’ after

18 ‘‘disadvantaged individuals’’; and

19 (B) in paragraph (3)—

20 (i) in the first sentence, by inserting

21 before the period ‘‘and law firms that are

22 qualified HUBZone small business con23 cerns’’;

24 (ii) in subparagraph (A), by striking

25 ‘‘and’’ at the end;
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1 (iii) in subparagraph (B), by striking

2 the period at the end and inserting ‘‘;

3 and’’; and

4 (iv) by adding at the end the follow5 ing:

6 ‘‘(C) the term ‘qualified HUBZone small

7 business concern’ has the meaning given that

8 term in section 3(p) of the Small Business

9 Act.’’.

10 (2) PAYMENTS TO LOCAL GOVERNMENTS.—Sec11 tion 6701(f) of title 31, United States Code, is

12 amended—

13 (A) in paragraph (1)—

14 (i) in subparagraph (A), by striking

15 ‘‘and’’ at the end;

16 (ii) in subparagraph (B), by striking

17 the period at the end and inserting ‘‘;

18 and’’; and

19 (iii) by adding at the end the follow20 ing:

21 ‘‘(C) qualified HUBZone small business

22 concerns.’’; and

23 (B) in paragraph (3)—

24 (i) in subparagraph (A), by striking

25 ‘‘and’’ at the end;
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1 (ii) in subparagraph (B), by striking

2 the period at the end and inserting ‘‘;

3 and’’; and

4 (iii) by adding at the end the follow5 ing:

6 ‘‘(C) the term ‘qualified HUBZone small

7 business concern’ has the meaning given that

8 term in section 3(p) of the Small Business Act

9 (15 U.S.C. 632(o)).’’.

10 (3) REGULATIONS.—Section 7505(c) of title 31,

11 United States Code, is amended by striking ‘‘small

12 business concerns and’’ and inserting ‘‘small busi13 ness concerns, qualified HUBZone small business

14 concerns, and’’.

15 (f) OFFICE OF FEDERAL PROCUREMENT POLICY

16 ACT.—

17 (1) ENUMERATION OF INCLUDED FUNC18 TIONS.—Section 6(d) of the Office of Federal Pro19 curement Policy Act (41 U.S.C. 405(d)) is amend20 ed—

21 (A) in paragraph (11), by inserting ‘‘quali22 fied HUBZone small business concerns (as that

23 term is defined in section 3(p) of the Small

24 Business Act),’’ after ‘‘small businesses,’’; and
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1 (B) in paragraph (12), by inserting ‘‘quali2 fied HUBZone small business concerns (as that

3 term is defined in section 3(p) of the Small

4 Business Act (15 U.S.C. 632(o)),’’ after ‘‘small

5 businesses,’’.

6 (2) PROCUREMENT DATA.—Section 502 of the

7 Women’s Business Ownership Act of 1988 (41

8 U.S.C. 417a) is amended—

9 (A) in subsection (a)—

10 (i) in the first sentence, by inserting

11 ‘‘the number of qualified HUBZone small

12 business concerns,’’ after ‘‘Procurement

13 Policy’’; and

14 (ii) by inserting a comma after

15 ‘‘women’’; and

16 (B) in subsection (b), by inserting after

17 ‘‘section 204 of this Act’’ the following: ‘‘, and

18 the term ‘qualified HUBZone small business

19 concern’ has the meaning given that term in

20 section 3(p) of the Small Business Act (15

21 U.S.C. 632(o)).’’.

22 (g) ENERGY POLICY ACT OF 1992.—Section 3021 of

23 the Energy Policy Act of 1992 (42 U.S.C. 13556) is

24 amended—

25 (1) in subsection (a)—
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1 (A) in paragraph (2), by striking ‘‘or’’;

2 (B) in paragraph (3), by striking the pe3 riod and inserting ‘‘; or’’; and

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

5 ‘‘(4) qualified HUBZone small business con6 cerns.’’; and

7 (2) in subsection (b), by adding at the end the

8 following:

9 ‘‘(3) The term ‘qualified HUBZone small busi10 ness concern’ has the meaning given that term in

11 section 3(p) of the Small Business Act (15 U.S.C.

12 632(o)).’’.

13 (h) TITLE 49, UNITED STATES CODE.—

14 (1) PROJECT GRANT APPLICATION APPROVAL

15 CONDITIONED ON ASSURANCES ABOUT AIRPORT OP16 ERATION.—Section 47107(e) of title 49, United

17 States Code, is amended—

18 (A) in paragraph (1), by inserting before

19 the period ‘‘or qualified HUBZone small busi20 ness concerns (as that term is defined in section

21 3(p) of the Small Business Act)’’;

22 (B) in paragraph (4)(B), by inserting be23 fore the period ‘‘or as a qualified HUBZone

24 small business concern (as that term is defined
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1 in section 3(p) of the Small Business Act)’’;

2 and

3 (C) in paragraph (6), by inserting ‘‘or a

4 qualified HUBZone small business concern (as

5 that term is defined in section 3(p) of the Small

6 Business Act)’’ after ‘‘disadvantaged individ7 ual’’.

8 (2) MINORITY AND DISADVANTAGED BUSINESS

9 PARTICIPATION.—Section 47113 of title 49, United

10 States Code, is amended—

11 (A) in subsection (a)—

12 (i) in paragraph (1), by striking the

13 period at the end and inserting a semi14 colon;

15 (ii) in paragraph (2), by striking the

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

17 and

18 (iii) by adding at the end the follow19 ing:

20 ‘‘(3) the term ‘qualified HUBZone small busi21 ness concern’ has the meaning given that term in

22 section 3(p) of the Small Business Act (15 U.S.C.

23 632(o)).’’; and
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1 (B) in subsection (b), by inserting before

2 the period ‘‘or qualified HUBZone small busi3 ness 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 of the

7 Small Business Administration shall publish in the Fed8 eral Register such final regulations as may be necessary

9 to carry out this title and the amendments made by this

10 title.

11 (b) FEDERAL ACQUISITION REGULATION.—Not later

12 than 180 days after the date on which final regulations

13 are published under subsection (a), the Federal Acquisi14 tion Regulatory Council shall amend the Federal Acquisi15 tion Regulation in order to ensure consistency between the

16 Federal Acquisition Regulation, this title and the amend17 ments made by this title, and the final regulations pub18 lished under subsection (a).

19 SEC. 606. REPORT.

20 Not later than March 1, 2000, the Administrator of

21 the Small Business Administration shall submit to the

22 Committees on Small Business of the House of Represent23 atives and the Senate a report on the implementation of

24 the HUBZone program established under section 31 of the

25 Small Business Act (as amended by this title) and the de-
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1 gree to which the HUBZone program has resulted in in2 creased employment opportunities and an increased level

3 of investment in HUBZones (as that term is defined in

4 section 3(p) of the Small Business Act, as added by this

5 title).

6 SEC. 607. AUTHORIZATION OF APPROPRIATIONS.

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

8 note) (as amended by section 101 of this Act) is amend9 ed—

10 (1) in subsection (c), by adding at the end the

11 following:

12 ‘‘(3) HUBZONE PROGRAM.—There are author13 ized to be appropriated to the Administration to

14 carry out the program under section 31, $5,000,000

15 for fiscal year 1998.’’;

16 (2) in subsection (d), by adding at the end the

17 following:

18 ‘‘(3) HUBZONE PROGRAM.—There are author19 ized to be appropriated to the Administration to

20 carry out the program under section 31, $5,000,000

21 for fiscal year 1999.’’; and

22 (3) in subsection (e), by adding at the end the

23 following:

24 ‘‘(3) HUBZONE PROGRAM.—There are author25 ized to be appropriated to the Administration to
103

•S 1139 PCS

1 carry out the program under section 31, $5,000,000

2 for fiscal year 2000.’’.