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dispute mechanism under NAFTA had not yet been
finalized, but more than a year after such mecha-
nism has been put in place, the claim has still not
been put forward by the United States Trade Rep-
resentative.
(b) SENSE OF CONGRESS.—It is the sense of the
Congress that—
(1) the provincial sales tax levied by the Cana-
dian province of New Brunswick on Canadian citi-
zens of that province who purchase goods in the
United States—
(A) raises questions about a possible viola-
tion of the North American Free Trade Agree-
ment in the discriminatory application of the
tax to cross-border trade with the United
States; and
(B) damages good relations between the
United States and Canada; and
(2) the United States Trade Representative
should move forward without further delay in seek-
ing redress under the dispute resolution process in
chapter 20 of the North American Free Trade
Agreement for the violation.
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SEC. 656. IMPROVEMENTS IN IDENTIFICATION-RELATED
DOCUMENTS.
(a) BIRTH CERTIFICATES.—
(1) STANDARDS FOR ACCEPTANCE BY FEDERAL
AGENCIES.—
(A) IN GENERAL.—
(i) 
GENERAL
RULE.—Subject 
to
clause (ii), a Federal agency may not ac-
cept for any official purpose a certificate of
birth, unless the certificate—
(I) is a birth certificate (as de-
fined in paragraph (3)); and
(II) conforms to the standards
set forth in the regulation promul-
gated under subparagraph (B).
(ii) APPLICABILITY.—Clause (i) shall
apply only to a certificate of birth issued
after the day that is 3 years after the date
of the promulgation of a final regulation
under subparagraph (B). Clause (i) shall
not be construed to prevent a Federal
agency from accepting for official purposes
any certificate of birth issued on or before
such day.
(B) REGULATION.—
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(i) CONSULTATION
WITH
GOVERN-
MENT AGENCIES.—The President shall se-
lect 1 or more Federal agencies to consult
with State vital statistics offices, and with
other appropriate Federal agencies des-
ignated by the President, for the purpose
of developing appropriate standards for
birth certificates that may be accepted for
official purposes by Federal agencies, as
provided in subparagraph (A).
(ii) SELECTION OF LEAD AGENCY.—
Of the Federal agencies selected under
clause (i), the President shall select 1
agency to promulgate, upon the conclusion
of the consultation conducted under such
clause, a regulation establishing standards
of the type described in such clause.
(iii) DEADLINE.—The agency selected
under clause (ii) shall promulgate a final
regulation under such clause not later than
the date that is 1 year after the date of the
enactment of this Act.
(iv) MINIMUM
REQUIREMENTS.—The
standards established under this subpara-
graph—
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(I) at a minimum, shall require
certification of the birth certificate by
the State or local custodian of record
that issued the certificate, and shall
require the use of safety paper, the
seal of the issuing custodian of record,
and other features designed to limit
tampering, 
counterfeiting, 
and
photocopying, or otherwise duplicat-
ing, the birth certificate for fraudu-
lent purposes;
(II) may not require a single de-
sign to which birth certificates issued
by all States must conform; and
(III) shall accommodate the dif-
ferences between the States in the
manner and form in which birth
records are stored and birth certifi-
cates are produced from such records.
(2) GRANTS TO STATES.—
(A) ASSISTANCE
IN
MEETING
FEDERAL
STANDARDS.—
(i) IN GENERAL.—Beginning on the
date a final regulation is promulgated
under paragraph (1)(B), the Secretary of
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Health 
and 
Human 
Services, 
acting
through the Director of the National Cen-
ter for Health Statistics and after consult-
ing with the head of any other agency des-
ignated by the President, shall make
grants to States to assist them in issuing
birth certificates that conform to the
standards set forth in the regulation.
(ii) ALLOCATION
OF
GRANTS.—The
Secretary shall provide grants to States
under this subparagraph in proportion to
the populations of the States applying to
receive a grant and in an amount needed
to provide a substantial incentive for
States to issue birth certificates that con-
form to the standards described in clause
(i).
(B) ASSISTANCE IN MATCHING BIRTH AND
DEATH RECORDS.—
(i) IN
GENERAL.—The Secretary of
Health 
and 
Human 
Services, 
acting
through the Director of the National Cen-
ter for Health Statistics and after consult-
ing with the head of any other agency des-
ignated by the President, shall make
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grants to States to assist them in develop-
ing the capability to match birth and death
records, within each State and among the
States, and to note the fact of death on the
birth certificates of deceased persons. In
developing the capability described in the
preceding sentence, a State that receives a
grant under this subparagraph shall focus
first on individuals born after 1950.
(ii) ALLOCATION
AND
AMOUNT
OF
GRANTS.—The Secretary shall provide
grants to States under this subparagraph
in proportion to the populations of the
States applying to receive a grant and in
an amount needed to provide a substantial
incentive for States to develop the capabil-
ity described in clause (i).
(C) 
DEMONSTRATION
PROJECTS.—The
Secretary of Health and Human Services, act-
ing through the Director of the National Center
for Health Statistics, shall make grants to
States for a project in each of 5 States to dem-
onstrate the feasibility of a system under which
persons otherwise required to report the death
of individuals to a State would be required to
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provide to the State’s office of vital statistics
sufficient information to establish the fact of
death of every individual dying in the State
within 24 hours of acquiring the information.
(3) BIRTH CERTIFICATE.—As used in this sub-
section, the term ‘‘birth certificate’’ means a certifi-
cate of birth—
(A) of—
(i) an individual born in the United
States; or
(ii) an individual born abroad—
(I) who is a citizen or national of
the United States at birth; and
(II) whose birth is registered in
the United States; and
(B) that—
(i) is a copy, issued by a State or local
authorized custodian of record, of an origi-
nal certificate of birth issued by such cus-
todian of record; or
(ii) was issued by a State or local au-
thorized custodian of record and was pro-
duced from birth records maintained by
such custodian of record.
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(b) STATE-ISSUED DRIVERS LICENSES AND COM-
PARABLE IDENTIFICATION DOCUMENTS.—
(1) STANDARDS FOR ACCEPTANCE BY FEDERAL
AGENCIES.—
(A) IN GENERAL.—A Federal agency may
not accept for any identification-related purpose
a driver’s license, or other comparable identi-
fication document, issued by a State, unless the
license or document satisfies the following re-
quirements:
(i) APPLICATION PROCESS.—The ap-
plication process for the license or docu-
ment shall include the presentation of such
evidence of identity as is required by regu-
lations promulgated by the Secretary of
Transportation after consultation with the
American Association of Motor Vehicle Ad-
ministrators.
(ii) SOCIAL SECURITY NUMBER.—Ex-
cept as provided in subparagraph (B), the
license or document shall contain a social
security account number that can be read
visually or by electronic means.
(iii) FORM.—The license or document
otherwise shall be in a form consistent
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with requirements set forth in regulations
promulgated by the Secretary of Transpor-
tation after consultation with the American
Association of Motor Vehicle Administra-
tors. The form shall contain security fea-
tures designed to limit tampering, counter-
feiting, photocopying, or otherwise dupli-
cating, the license or document for fraudu-
lent purposes and to limit use of the li-
cense or document by impostors.
(B) EXCEPTION.—The requirement in sub-
paragraph (A)(ii) shall not apply with respect
to a driver’s license or other comparable identi-
fication document issued by a State, if the
State—
(i) does not require the license or doc-
ument to contain a social security account
number; and
(ii) requires—
(I) every applicant for a driver’s
license, or other comparable identi-
fication document, to submit the ap-
plicant’s social security account num-
ber; and
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(II) an agency of the State to
verify with the Social Security Admin-
istration that such account number is
valid.
(C) DEADLINE.—The Secretary of Trans-
portation shall promulgate the regulations re-
ferred to in clauses (i) and (iii) of subparagraph
(A) not later than 1 year after the date of the
enactment of this Act.
(2) GRANTS
TO
STATES.—Beginning on the
date final regulations are promulgated under para-
graph (1), the Secretary of Transportation shall
make grants to States to assist them in issuing driv-
er’s licenses and other comparable identification doc-
uments that satisfy the requirements under such
paragraph.
(3) EFFECTIVE DATES.—
(A) IN
GENERAL.—Except as otherwise
provided in this paragraph, this subsection shall
take effect on the date of the enactment of this
Act.
(B) PROHIBITION
ON
FEDERAL
AGEN-
CIES.—Subparagraphs (A) and (B) of para-
graph (1) shall take effect beginning on October
1, 2000, but shall apply only to licenses or doc-
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uments issued to an individual for the first time
and to replacement or renewal licenses or docu-
ments issued according to State law.
(c) REPORT.—Not later than 1 year after the date
of the enactment of this Act, the Secretary of Health and
Human Services shall submit a report to the Congress on
ways to reduce the fraudulent obtaining and the fraudu-
lent use of birth certificates, including any such use to
obtain a social security account number or a State or Fed-
eral document related to identification or immigration.
(d) FEDERAL AGENCY DEFINED.—For purposes of
this section, the term ‘‘Federal agency’’ means any of the
following:
(1) An Executive agency (as defined in section
105 of title 5, United States Code).
(2) A military department (as defined in section
102 of such title).
(3) An agency in the legislative branch of the
Government of the United States.
(4) An agency in the judicial branch of the Gov-
ernment of the United States.
SEC. 657. DEVELOPMENT OF PROTOTYPE OF COUNTER-
FEIT-RESISTANT SOCIAL SECURITY CARD.
(a) DEVELOPMENT.—
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(1) IN GENERAL.—The Commissioner of Social
Security (in this section referred to as the ‘‘Commis-
sioner’’) shall, in accordance with the provisions of
this section, develop a prototype of a counterfeit-re-
sistant social security card. Such prototype card—
(A) shall be made of a durable, tamper-re-
sistant material such as plastic or polyester;
(B) shall employ technologies that provide
security features, such as magnetic stripes,
holograms, and integrated circuits; and
(C) shall be developed so as to provide in-
dividuals with reliable proof of citizenship or
legal resident alien status.
(2) ASSISTANCE BY ATTORNEY GENERAL.—The
Attorney General shall provide such information and
assistance as the Commissioner deems necessary to
achieve the purposes of this section.
(b) STUDIES AND REPORTS.—
(1) IN
GENERAL.—The Comptroller General
and the Commissioner of Social Security shall each
conduct a study, and issue a report to the Congress,
that examines different methods of improving the so-
cial security card application process.
(2) ELEMENTS OF STUDIES.—The studies shall
include evaluations of the cost and work load impli-
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cations of issuing a counterfeit-resistant social secu-
rity card for all individuals over a 3, 5, and 10 year
period. The studies shall also evaluate the feasibility
and cost implications of imposing a user fee for re-
placement cards and cards issued to individuals who
apply for such a card prior to the scheduled 3, 5,
and 10 year phase-in options.
(3) DISTRIBUTION OF REPORTS.—Copies of the
reports described in this subsection, along with fac-
similes of the prototype cards as described in sub-
section (a), shall be submitted to the Committees on
Ways and Means and Judiciary of the House of
Representatives and the Committees on Finance and
Judiciary of the Senate not later than 1 year after
the date of the enactment of this Act.
SEC. 658. BORDER PATROL MUSEUM.
(a) AUTHORITY.—Notwithstanding section 203 of the
Federal Property and Administrative Services Act of 1949
(40 U.S.C. 484) or any other provision of law, the Attor-
ney General is authorized to transfer and convey to the
Border Patrol Museum and Memorial Library Founda-
tion, incorporated in the State of Texas, such equipment,
artifacts, and memorabilia held by the Immigration and
Naturalization Service as the Attorney General may deter-
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mine is necessary to further the purposes of the Museum
and Foundation.
(b) TECHNICAL ASSISTANCE.—The Attorney General
is authorized to provide technical assistance, through the
detail of personnel of the Immigration and Naturalization
Service, to the Border Patrol Museum and Memorial Li-
brary Foundation for the purpose of demonstrating the
use of the items transferred under subsection (a).
SEC. 659. SENSE OF THE CONGRESS REGARDING THE MIS-
SION OF THE IMMIGRATION AND NATU-
RALIZATION SERVICE.
It is the sense of the Congress that the mission state-
ment of the Immigration and Naturalization Service
should include a statement that it is the responsibility of
the Service to detect, apprehend, and remove those aliens
unlawfully present in the United States, particularly those
aliens involved in drug trafficking or other criminal activ-
ity.
SEC. 660. AUTHORITY FOR NATIONAL GUARD TO ASSIST IN
TRANSPORTATION OF CERTAIN ALIENS.
Section 112(d)(1) of title 32, United States Code, is
amended by adding at the end the following new sentence:
‘‘The plan as approved by the Secretary may provide for
the use of personnel and equipment of the National Guard
of that State to assist the Immigration and Naturalization
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Service in the transportation of aliens who have violated
a Federal or State law prohibiting or regulating the pos-
session, use, or distribution of a controlled substance.’’.
Subtitle E—Technical Corrections
SEC. 671. MISCELLANEOUS TECHNICAL CORRECTIONS.
(a) AMENDMENTS RELATING TO PUBLIC LAW 103–
322 (VIOLENT CRIME CONTROL AND LAW ENFORCEMENT
ACT OF 1994).—
(1) Section 60024(1)(F) of the Violent Crime
Control and Law Enforcement Act of 1994 (Public
Law 103–322) (in this subsection referred to as
‘‘VCCLEA’’) is amended by inserting ‘‘United
States Code,’’ after ‘‘title 18,’’.
(2) Section 130003(b)(3) of VCCLEA is
amended by striking ‘‘Naturalization’’ and inserting
‘‘Nationality’’.
(3)(A) Section 214 (8 U.S.C. 1184) is amended
by redesignating the subsection (j), added by section
130003(b)(2) of VCCLEA (108 Stat. 2025), and the
subsection (k), as amended by section 622(c) of this
division, as subsections (k) and (l), respectively.
(B) 
Section 
101(a)(15)(S) 
(8 
U.S.C.
1101(a)(15)(S)) is amended by striking ‘‘214(j)’’
and inserting ‘‘214(k)’’.
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(4)(A) Section 245 (8 U.S.C. 1255) is amended
by redesignating the subsection (i) added by section
130003(c)(1) of VCCLEA as subsection (j).
(B) 
Section 
241(a)(2)(A)(i)(I) 
(8 
U.S.C.
1251(a)(2)(A)(i)(I)), 
as 
amended 
by 
section
130003(d) of VCCLEA and before redesignation by
section 305(a)(2) of this division, is amended by
striking ‘‘245(i)’’ and inserting ‘‘245(j)’’.
(5) Section 245(j)(3), as added by section
130003(c)(1) of VCCLEA and as redesignated by
paragraph (4)(A), is amended by striking ‘‘para-
graphs (1) or (2)’’ and inserting ‘‘paragraph (1) or
(2)’’.
(6) Section 130007(a) of VCCLEA is amended
by striking ‘‘242A(d)’’ and inserting ‘‘242A(a)(3)’’.
(7) The amendments made by this subsection
shall be effective as if included in the enactment of
the VCCLEA.
(b) AMENDMENTS RELATING TO IMMIGRATION AND
NATIONALITY TECHNICAL CORRECTIONS ACT OF 1994.—
(1) Section 101(d) of the Immigration and Na-
tionality Technical Corrections Act of 1994 (Public
Law 103–416) (in this subsection referred to as
‘‘INTCA’’) is amended—
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(4) Section 207(2) of INTCA is amended by in-
serting a comma after ‘‘specified’’.
(5) Section 101(a)(43) (8 U.S.C. 1101(a)(43))
is amended in subparagraph (K)(ii), by striking the
comma after ‘‘1588’’.
(6) Section 273(b) (8 U.S.C. 1323(b)), as
amended by section 209(a) of INTCA, is amended
by striking ‘‘remain’’ and inserting ‘‘remains’’.
(7) Section 209(a)(1) of INTCA is amended by
striking ‘‘$3000’’ and inserting ‘‘$3,000’’.
(8) Section 209(b) of INTCA is amended by
striking ‘‘subsection’’ and inserting ‘‘section’’.
(9) Section 219(cc) of INTCA is amended by
striking ‘‘ ‘year 1993 the first place it appears’ ’’
and inserting ‘‘ ‘year 1993’ the first place it ap-
pears’’.
(10) Section 219(ee) of INTCA is amended by
adding at the end the following:
‘‘(3) The amendments made by this subsection shall
take effect on the date of the enactment of this Act.’’.
(11) Paragraphs (4) and (6) of section 286(r)
(8 U.S.C. 1356(r)) are amended by inserting ‘‘the’’
before ‘‘Fund’’ each place it appears.
(12) Section 221 of INTCA is amended—
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(A) by striking each semicolon and insert-
ing a comma,
(B) by striking ‘‘disasters.’’ and inserting
‘‘disasters,’’; and
(C) by striking ‘‘The official’’ and inserting
‘‘the official’’.
(13) Section 242A (8 U.S.C. 1252a), as added
by section 224(a) of INTCA and before redesigna-
tion as section 238 by section 308(b)(5) of this divi-
sion, is amended by redesignating subsection (d) as
subsection (c).
(14) Except as otherwise provided in this sub-
section, the amendments made by this subsection
shall take effect as if included in the enactment of
INTCA.
(c) AMENDMENTS RELATING TO PUBLIC LAW 104–
132 (ANTITERRORISM AND EFFECTIVE DEATH PENALTY
ACT OF 1996).—
(1) Section 219 (8 U.S.C. 1189), as added by
section 302(a) of Antiterrorism and Effective Death
Penalty Act of 1996 (Public Law 104–132) (in this
subsection referred to as ‘‘AEDPA’’), is amended by
striking the heading and all that follows through
‘‘(a)’’ and inserting the following:
‘‘DESIGNATION OF FOREIGN TERRORIST ORGANIZATIONS
‘‘SEC. 219. (a)’’.
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(2) Section 302(b) of AEDPA is amended by
striking ‘‘, relating to terrorism,’’.
(3) Section 106(a) (8 U.S.C. 1105a(a)), as
amended by sections 401(e) and 440(a) of AEDPA,
is amended—
(A) by striking ‘‘and’’ at the end of para-
graph (8);
(B) by striking the period at the end of
paragraph (9) and inserting ‘‘; and’’; and
(C) in paragraph (10), by striking ‘‘Any’’
and inserting ‘‘any’’.
(4) Section 440(a) of the AEDPA is amended
by striking ‘‘Section 106 of the Immigration and
Nationality Act (8 U.S.C. 1105a(a)(10)) is amended
to read as follows:’’ and inserting ‘‘Section 106(a) of
the Immigration and Nationality Act (8 U.S.C.
1105a(a)) is amended by adding at the end the fol-
lowing:’’.
(5) Section 440(g)(1)(A) of AEDPA is amend-
ed—
(A) by striking ‘‘of this title’’; and
(B) 
by 
striking 
the 
period 
after
‘‘241(a)(2)(A)(i)’’.
(6) Section 440(g) of AEDPA is amended by
striking paragraph (2).
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(7) The amendments made by this subsection
shall take effect as if included in the enactment of
subtitle A of title IV of AEPDA.
(d) STRIKING REFERENCES TO SECTION 210A.—
(1)(A) 
Section 
201(b)(1)(C) 
(8 
U.S.C.
1151(b)(1)(C)) is amended by striking ‘‘, 210A,’’.
(B) 
Section 
274B(a)(3)(B) 
(8 
U.S.C.
1324b(a)(3)(B)) 
is 
amended 
by 
striking 
‘‘,
210A(a),’’.
(C) Section 241(a)(1) (8 U.S.C. 1251(a)(1)),
before redesignation by section 305(a)(2) of this di-
vision, is amended by striking subparagraph (F).
(2) Sections 204(c)(1)(D)(i) and 204(j)(4) of
Immigration Reform and Control Act of 1986 are
each amended by striking ‘‘, 210A,’’.
(e) MISCELLANEOUS CHANGES IN THE IMMIGRATION
AND NATIONALITY ACT.—
(1) Before being amended by section 308(a)(2)
of this division, the item in the table of contents re-
lating to section 242A is amended to read as follows:
‘‘Sec. 242A. Expedited deportation of aliens convicted of committing aggra-
vated felonies.’’.
(2) Section 101(c)(1) (8 U.S.C. 1101(c)(1)) is
amended by striking ‘‘, 321, and 322’’ and inserting
‘‘and 321’’.
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(3) Section 212(d)(11) (8 U.S.C. 1182(d)(11))
is amended by inserting a comma after ‘‘(4) there-
of)’’.
(4) Pursuant to section 6(b) of Public Law
103–272 (108 Stat. 1378)—
(A) 
section 
214(f)(1) 
(8 
U.S.C.
1184(f)(1)) is amended by striking ‘‘section
101(3) of the Federal Aviation Act of 1958’’
and inserting ‘‘section 40102(a)(2) of title 49,
United States Code’’; and
(B) 
section 
258(b)(2) 
(8 
U.S.C.
1288(b)(2)) is amended by striking ‘‘section
105 or 106 of the Hazardous Materials Trans-
portation Act (49 U.S.C. App. 1804, 1805)’’
and inserting ‘‘section 5103(b), 5104, 5106,
5107, or 5110 of title 49, United States Code’’.
(5) 
Section 
286(h)(1)(A) 
(8 
U.S.C.
1356(h)(1)(A)) is amended by inserting a period
after ‘‘expended’’.
(6) 
Section 
286(h)(2)(A) 
(8 
U.S.C.
1356(h)(2)(A)) is amended—
(A) by striking ‘‘and’’ at the end of clause
(iv);
(B) by moving clauses (v) and (vi) 2 ems
to the left;
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(C) by striking ‘‘; and’’ in clauses (v) and
(vi) and inserting ‘‘and for’’;
(D) by striking the colons in clauses (v)
and (vi); and
(E) by striking the period at the end of
clause (v) and inserting ‘‘; and’’.
(7) Section 412(b) (8 U.S.C. 1522(b)) is
amended by striking the comma after ‘‘is author-
ized’’ in paragraph (3) and after ‘‘The Secretary’’ in
paragraph (4).
(f) MISCELLANEOUS CHANGE IN THE IMMIGRATION
ACT OF 1990.—Section 161(c)(3) of the Immigration Act
of 1990 is amended by striking ‘‘an an’’ and inserting ‘‘of
an’’.
(g) MISCELLANEOUS CHANGES IN OTHER ACTS.—
(1) Section 506(a) of the Intelligence Author-
ization Act, Fiscal Year 1990 (Public Law 101–193)
is amended by striking ‘‘this section’’ and inserting
‘‘such section’’.
(2) Section 140 of the Foreign Relations Au-
thorization Act, Fiscal Years 1994 and 1995, as
amended by section 505(2) of Public Law 103–317,
is amended—
(A) by moving the indentation of sub-
sections (f) and (g) 2 ems to the left; and
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(B) in subsection (g), by striking ‘‘(g)’’
and all that follows through ‘‘shall’’ and insert-
ing ‘‘(g) Subsections (d) and (e) shall’’.
DIVISION D—SMALL BUSINESS
PROGRAMS IMPROVEMENT ACT
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This division may be cited as
the ‘‘Small Business Programs Improvement Act of
1996’’.
(b) TABLE OF CONTENTS.—
Sec. 1. Short title; table of contents.
Sec. 2. Administrator defined.
Sec. 3. Effective date.
TITLE I—AMENDMENTS TO SMALL BUSINESS ACT
Sec. 101. References.
Sec. 102. Risk management database.
Sec. 103. Section 7(a) loan program.
Sec. 104. Disaster loans.
Sec. 105. Microloan demonstration program.
Sec. 106. Small business development center program.
Sec. 107. Miscellaneous authorities to provide loans and other financial assist-
ance.
Sec. 108. Small business competitiveness demonstration program.
Sec. 109. Amendment to Small Business Guaranteed Credit Enhancement Act
of 1993.
Sec. 110. STTR program extension.
Sec. 111. Level of participation for export working capital loans.
TITLE II—AMENDMENTS TO SMALL BUSINESS INVESTMENT ACT
Sec. 201. References.
Sec. 202. Modifications to development company debenture program.
Sec. 203. Required actions upon default.
Sec. 204. Loan liquidation pilot program.
Sec. 205. Registration of certificates.
Sec. 206. Preferred surety bond guarantee program.
Sec. 207. Sense of the Congress.
Sec. 208. Small business investment company improvements.
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SEC. 2. ADMINISTRATOR DEFINED.
For purposes of this Act, the term ‘‘Adminis-
trator’’ means the Administrator of the Small Business
Administration.
SEC. 3. EFFECTIVE DATE.
Except as otherwise expressly provided, this Act
and the amendments made by this Act shall take effect
on October 1, 1996.
TITLE I—AMENDMENTS TO
SMALL BUSINESS ACT
SEC. 101. REFERENCES.
Except as otherwise expressly provided, whenever
in this title an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or
other provision, the reference shall be considered to be
made to a section or other provision of the Small Busi-
ness Act (15 U.S.C. 631 et seq.).
SEC. 102. RISK MANAGEMENT DATABASE.
Section 4(b) (15 U.S.C. 633) is amended by in-
serting after paragraph (2) the following:
‘‘(3) RISK MANAGEMENT DATABASE.—
‘‘(A) ESTABLISHMENT.—The Administra-
tion shall establish, within the management sys-
tem for the loan programs authorized by sub-
sections (a) and (b) of section 7 of this Act and
title V of the Small Business Investment Act of
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1958, a management information system that
will generate a database capable of providing
timely and accurate information in order to
identify loan underwriting, collections, recovery,
and liquidation problems.
‘‘(B) INFORMATION TO BE MAINTAINED.—
In addition to such other information as the
Administration 
considers 
appropriate, 
the
database established under subparagraph (A)
shall, with respect to each loan program de-
scribed in subparagraph (A), include informa-
tion relating to—
‘‘(i) the identity of the institution
making the guaranteed loan or issuing the
debenture;
‘‘(ii) the identity of the borrower;
‘‘(iii) the total dollar amount of the
loan or debenture;
‘‘(iv) the total dollar amount of gov-
ernment exposure in each loan;
‘‘(v) the district of the Administration
in which the borrower has its principal of-
fice;
‘‘(vi) the principal line of business of
the borrower, as identified by Standard In-
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dustrial Classification Code (or any succes-
sor to that system);
‘‘(vii) the delinquency rate for each
program (including number of instances
and days overdue);
‘‘(viii) the number and amount of re-
purchases, losses, and recoveries in each
program;
‘‘(ix) the number of deferrals or
forbearances in each program (including
days and number of instances);
‘‘(x) comparisons on the basis of loan
program, lender, Administration district
and region, for all the data elements main-
tained; and
‘‘(xi) underwriting characteristics of
each loan that has entered into default, in-
cluding term, amount and type of collat-
eral, loan-to-value and other actual and
projected ratios, line of business, credit
history, and type of loan.
‘‘(C) DEADLINE FOR OPERATIONAL CAPA-
BILITY.—The database established under sub-
paragraph (A) shall—
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‘‘(i) be operational not later than
June 30, 1997; and
‘‘(ii) capture data beginning on the
first day of the second quarter of fiscal
year 1997 beginning after such date and
thereafter.’’.
SEC. 103. SECTION 7(A) LOAN PROGRAM.
(a) SERVICING AND LIQUIDATION OF LOANS BY
PREFERRED LENDERS.—Section 7(a)(2)(C)(ii)(II) (15
U.S.C. 636(a)(2)(C)(ii)(II)) is amended to read as fol-
lows:
‘‘(II) complete authority to serv-
ice and liquidate such loans without
obtaining the prior specific approval
of the Administration for routine serv-
icing and liquidation activities, but
shall not take any actions creating an
actual or apparent conflict of inter-
est.’’.
(b) CERTIFIED
LENDERS
PROGRAM.—Section
7(a)(19) (15 U.S.C. 636(a)(19)) is amended by adding at
the end the following new subparagraph:
‘‘(C) Authority to liquidate loans.—
‘‘(i) IN GENERAL.—The Administrator
may permit lenders participating in the
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Certified Lenders Program to liquidate
loans made with a guarantee from the Ad-
ministration pursuant to a liquidation plan
approved by the Administrator.
‘‘(ii) Automatic approval.—If the Ad-
ministrator does not approve or deny a re-
quest for approval of a liquidation plan
within 10 business days of the date on
which the request is made (or with respect
to any routine liquidation activity under
such a plan, within 5 business days) such
request shall be deemed to be approved.’’.
(c) 
LIMITATION
ON
CONDUCTING
PILOT
PROJECTS.—Section 7(a) (15 U.S.C. 636(a)) is amended
by adding at the end the following new paragraph:
‘‘(25) LIMITATION
ON
CONDUCTING
PILOT
PROJECTS.—
‘‘(A) IN
GENERAL.—Not more than 10
percent of the total number of loans guaranteed
in any fiscal year under this subsection may be
awarded as part of a pilot program which is
commenced by the Administrator on or after
October 1, 1996.
‘‘(B) PILOT PROGRAM DEFINED.—In this
paragraph, the term ‘pilot program’ means any
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lending program initiative, project, innovation,
or other activity not specifically authorized by
law.
‘‘(C) LOW
DOCUMENTATION
LOAN
PRO-
GRAM.—The Administrator may carry out the
low documentation loan program for loans of
$100,000 or less only through lenders with sig-
nificant experience in making small business
loans. Not later than 90 days after the date of
enactment of this subsection, the Administrator
shall promulgate regulations defining the expe-
rience necessary for participation as a lender in
the low documentation loan program.’’.
(d) CALCULATION
OF SUBSIDY RATE.—Section
7(a) (15 U.S.C. 636(a)) is amended by adding at the end
the following new paragraph:
‘‘(26) CALCULATION
OF
SUBSIDY
RATE.—All
fees, interest, and profits received and retained by
the Administration under this subsection shall be in-
cluded in the calculations made by the Director of
the Office of Management and Budget to offset the
cost (as that term is defined in section 502 of the
Federal Credit Reform Act of 1990) to the Adminis-
tration of purchasing and guaranteeing loans under
this Act.’’.
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(e) SALE OF UNGUARANTEED PORTIONS OF SBA
LOANS.—Section 5(f)(3) (15 U.S.C. 634(f)(3)) is amend-
ed by adding at the end the following: ‘‘Beginning on
March 31, 1997, the sale of the unguaranteed portion of
any loan made under section 7(a) shall not be permitted
until a final regulation that applies uniformly to both de-
pository institutions and other lenders is promulgated by
the Administration setting forth the terms and conditions
under which such sales can be permitted, including main-
tenance of appropriate reserve requirements and other
safeguards to protect the safety and soundness of the
program.’’.
(f) CONDITIONS ON PURCHASE OF LOANS.—Sec-
tion 7(a)(4) (15 U.S.C. 636(a)(4)) is amended—
(1) by striking ‘‘(4) Notwithstanding’’ and in-
serting the following:
‘‘(4) INTEREST RATES AND FEES.—
‘‘(A) 
INTEREST
RATES.—Notwithstand-
ing’’; and
(2) by adding at the end the following new sub-
paragraph:
‘‘(B) PAYMENT OF ACCRUED INTEREST.—
‘‘(i) IN GENERAL.—Any bank or other
lending institution making a claim for pay-
ment on the guaranteed portion of a loan
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Act of 1988 (15 U.S.C. 644 note; 102 Stat. 3893)
is amended—
(A) in subsection (a), by striking ‘‘fiscal
year 1991 and 1995’’ and inserting ‘‘each of
fiscal years 1991 through 1996’’;
(B) in subsection (b), by striking ‘‘results’’
and inserting ‘‘cumulative results’’; and
(C) in subsection (c), by striking ‘‘1996’’
and inserting ‘‘1997’’.
(2) CUMULATIVE
REPORT
THROUGH
FISCAL
YEAR 1995.—A cumulative report of the results of
the Small Business Competitiveness Demonstration
Program for fiscal years 1991 through 1995 shall be
submitted not later than February 28, 1997 pursu-
ant to section 716(a) of the Small Business Com-
petitiveness Demonstration Program Act of 1988
(15 U.S.C. 644 note; 102 Stat. 3893), as amended
by paragraph (1) of this subsection.
SEC. 109. AMENDMENT TO SMALL BUSINESS GUARANTEED
CREDIT ENHANCEMENT ACT OF 1993.
(a) IN GENERAL.—Section 7 of the Small Busi-
ness Guaranteed Credit Enhancement Act of 1993 (Pub-
lic Law 103–81; 15 U.S.C. 634 note) is repealed effective
September 29, 1996.