Title: Puerto Rico Task Force Economic Empowerment Act of 2017
Policy area: Government Operations and Politics

Summary:
Puerto Rico Task Force Economic Empowerment Act of 2017
Puerto Rico Opportunity, Small Business Prosperity, and Economic Revitalization Act of 2017
This bill amends the Small Business Act to modify requirements for the microloan program for Puerto Rico small businesses and increase access to capital for such program.
The Small Business Administration shall establish: (1) a Veteran Business Outreach Center in Puerto Rico, and (2) a temporary Federal and State Technology (FAST) grant program to provide assistance to Puerto Rico businesses.
The bill amends the Investment Company Act of 1940 to apply the oversight requirements of that Act to investment companies in U.S. territories.
The bill includes Puerto Rico in the Department of Labor reemployment demonstration projects grant program.
For FY2018, Labor may transfer funding to the Bureau of Labor Statistics for feasibility studies of the Puerto Rico economy.
The bill amends Social Security Act provisions affecting hospitals in Puerto Rico and health care and prescription drug coverage in U.S. territories.
The Office of National Drug Control Policy shall develop a publicly available Caribbean Border Counternarcotics Strategy, with emphasis on the borders of Puerto Rico and the U.S. Virgin Islands.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2429 Introduced in House (IH)]

<DOC>






115th CONGRESS
  1st Session
                                H. R. 2429

To support businesses in Puerto Rico, improve health funding for Puerto 
   Rico, and promote security in Puerto Rico, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 16, 2017

  Mr. MacArthur (for himself, Miss Gonzalez-Colon of Puerto Rico, Mr. 
  Duffy, and Ms. Velazquez) introduced the following bill; which was 
  referred to the Committee on Small Business, and in addition to the 
Committees on Financial Services, Ways and Means, Energy and Commerce, 
   the Judiciary, Oversight and Government Reform, Education and the 
    Workforce, and Appropriations, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To support businesses in Puerto Rico, improve health funding for Puerto 
   Rico, and promote security in Puerto Rico, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Puerto Rico Task 
Force Economic Empowerment Act of 2017''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
                          TITLE I--EMPLOYMENT

       Subtitle A--Flexibility for Puerto Rico in Small Business 
                        Administration Programs

Sec. 1101. Short title.
Sec. 1102. Definitions.
                            Part I--Lending

Sec. 1111. Microloan program for Puerto Rico small business concerns.
Sec. 1112. Fee reductions.
Sec. 1113. Economic stimulus lending program for small businesses.
Sec. 1114. Contribution percentages for 504 projects.
Sec. 1115. Independent subsidy calculation.
                          Part II--Procurement

Sec. 1121. Contracting preference for Puerto Rico businesses.
Sec. 1122. Priority for surplus property transfers.
Sec. 1123. Subcontracting incentives for protege firms that are Puerto 
                            Rico businesses.
Sec. 1124. Additional mentor-protege relationships for protege firms 
                            that are Puerto Rico businesses.
                 Part III--Entrepreneurial Development

Sec. 1131. Veteran Business Outreach Center in Puerto Rico.
Sec. 1132. FAST grant program for Puerto Rico.
            Part IV--Small Business Administration Oversight

Sec. 1141. Requirement for the District Director of Puerto Rico.
                Part V--Disaster Loan Program Expansion

Sec. 1151. Amendment to definition of disaster for 7(b) loans.
        Part VI--Amendment to the Investment Company Act of 1940

Sec. 1161. Termination of exemption for companies in territories of the 
                            United States.
                Subtitle B--Unemployment Pilot Programs

Sec. 1201. Reemployment through demonstration projects.
Sec. 1202. Evaluation of demonstration projects.
                     Subtitle C--Federal Statistics

Sec. 1301. Authority to transfer Department of Labor appropriations, to 
                            include Puerto Rico in reports of the 
                            Bureau of Labor Statistics.
Sec. 1302. Annual report by principal Federal statistical agencies on 
                            Puerto Rico.
                            TITLE II--HEALTH

             Subtitle A--Improved Prescription Drug Funding

Sec. 2101. Increasing levels of pharmacy assistance.
Sec. 2102. Treatment of prescription drug assistance to all part D 
                            eligibles as medical assistance; no 
                            territory match required.
                   Subtitle B--Additional Provisions

Sec. 2201. Calculation of Medicare DSH payments for IPPS hospitals in 
                            Puerto Rico.
Sec. 2202. Administrative flexibility with respect to the territories.
Sec. 2203. Sense of Congress regarding Federal health programs in 
                            territories of the United States.
                          TITLE III--SECURITY

Sec. 3101. Caribbean border counternarcotics strategy.

                          TITLE I--EMPLOYMENT

       Subtitle A--Flexibility for Puerto Rico in Small Business 
                        Administration Programs

SEC. 1101. SHORT TITLE.

    This subtitle may be cited as the ``Puerto Rico Opportunity, Small 
Business Prosperity, and Economic Revitalization Act of 2017''.

SEC. 1102. DEFINITIONS.

    (a) In General.--In this subtitle:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Small Business Administration.
            (2) Oversight board termination date.--The term ``Oversight 
        Board termination date'' means the date on which the Oversight 
        Board established under section 101 of the Puerto Rico 
        Oversight, Management, and Economic Stability Act (48 U.S.C. 
        2121) terminates.
            (3) Puerto rico.--The term ``Puerto Rico'' means the 
        Commonwealth of Puerto Rico.
            (4) Puerto rico business.--The term ``Puerto Rico 
        business'' means a small business concern that has its 
        principal office located in the Commonwealth of Puerto Rico.
            (5) Small business concern.--The term ``small business 
        concern'' has the meaning given such term under section 3 of 
        the Small Business Act (15 U.S.C. 632).
    (b) Small Business Act.--Section 3 of the Small Business Act (15 
U.S.C. 632) is amended by adding at the end the following:
    ``(ee) Puerto Rico Business.--In this Act, the term `Puerto Rico 
business' means a small business concern that has its principal office 
located in the Commonwealth of Puerto Rico.''.

                            PART I--LENDING

SEC. 1111. MICROLOAN PROGRAM FOR PUERTO RICO SMALL BUSINESS CONCERNS.

    (a) Increase in Access to Capital for Certain Intermediaries.--
Section 7(m)(3)(C) of the Small Business Act (15 U.S.C. 636(m)(3)(C)) 
is amended--
            (1) by inserting ``and except as provided in clause (ii)'' 
        after ``subsection (a)(3)'';
            (2) by striking ``Notwithstanding'' and inserting the 
        following:
                            ``(i) In general.--Notwithstanding''; and
            (3) by adding at the end the following:
                            ``(ii) Exception for certain puerto rico 
                        businesses.--
                                    ``(I) In general.--No loan shall be 
                                made under this subsection if the total 
                                amount outstanding and committed to 1 
                                covered intermediary (excluding 
                                outstanding grants) from the business 
                                loan and investment fund established by 
                                this Act would, as a result of such 
                                loan, exceed $6,000,000 in the 
                                remaining years of the covered 
                                intermediary's participation in the 
                                program.
                                    ``(II) Definition.--In this clause, 
                                the term `covered intermediary' means 
                                an intermediary that--
                                            ``(aa) is participating in 
                                        the program; and
                                            ``(bb) submits to the 
                                        Administrator a certification 
                                        that not less than 20 percent 
                                        of the microloans made by the 
                                        intermediary under this 
                                        subsection, during such period 
                                        as the Administrator may 
                                        specify, will be made to Puerto 
                                        Rico businesses.''.
    (b) Waiver of 25/75 Rule for Microloans to Puerto Rico Small 
Business Concerns.--
            (1) Waiver authorized.--Section 7(m)(4)(E) of the Small 
        Business Act (15 U.S.C. 636(m)(4)(E)) is amended--
                    (A) in clause (i), by striking ``Each'' and 
                inserting ``Except as provided in clause (iii), each''; 
                and
                    (B) by adding at the end the following:
                            ``(iii) Exception for certain 
                        intermediaries.--The Administrator shall waive 
                        the requirements of clause (i) for an 
                        intermediary for which not less than 25 percent 
                        of the loans made by the intermediary are made 
                        to Puerto Rico businesses.''.
            (2) Study.--Not later than 18 months after the date of 
        enactment of this Act, the Administrator shall submit to 
        Congress a report on the impact of waiving the requirements of 
        section 7(m)(4)(E)(i) of the Small Business Act for all 
        intermediaries receiving grant funds under section 
        7(m)(1)(B)(ii) of the Small Business Act, which shall include 
        an analysis of the effectiveness and feasibility of expanding 
        the waiver to small business concerns nationwide.
    (c) Prospective Repeal.--Effective on the Oversight Board 
termination date--
            (1) section 7(m)(3)(C) of the Small Business Act (15 U.S.C. 
        636(m)(3)(C)), as amended by subsection (a), is amended--
                    (A) by striking ``limits.--'' and all that follows 
                through ``as provided in clause (ii)'' and inserting 
                ``limits.--Notwithstanding subsection (a)(3)''; and
                    (B) by striking clause (ii); and
            (2) section 7(m)(4)(E) of the Small Business Act (15 U.S.C. 
        636(m)(4)(E)), as amended by subsection (a), is amended--
                    (A) in clause (i), by striking ``Except as provided 
                in clause (iii), each'' and inserting ``Each''; and
                    (B) by striking clause (iii).
    (d) GAO Study.--Not later than 180 days after the date of enactment 
of this Act, the Comptroller General of the United States shall 
complete a study and submit to the Committee on Small Business and 
Entrepreneurship of the Senate and the Committee on Small Business of 
the House of Representatives a report on the following:
            (1) The operations (including services provided, structure, 
        size, and area of operation) of a representative sample of--
                    (A) intermediaries that are eligible for 
                participation in the microloan program under section 
                7(m) of the Small Business Act (15 U.S.C. 636(m)) and 
                that participate in the microloan program; and
                    (B) intermediaries (including those operated for 
                profit, operated as nonprofit organizations, and 
                affiliated with a United States institution of higher 
                learning (as defined in section 3452 of title 38, 
                United States Code)) that are so eligible and that do 
                not participate in the microloan program.
            (2) The reasons why intermediaries described in paragraph 
        (1)(B) choose not to participate in the microloan program.
            (3) Recommendations on how to encourage increased 
        participation in the microloan program by intermediaries 
        described in paragraph (1)(B).
            (4) Recommendations for increasing the number of 
        intermediaries located in the territories of the United States 
        or in economically distressed areas (as defined in section 
        7(m)(11)(D) of the Small Business Act (15 U.S.C. 
        636(m)(11)(D))) that are eligible for participation in the 
        microloan program under section 7(m) of such Act.
            (5) Recommendations on how to decrease the costs associated 
        with participation in the microloan program for eligible 
        intermediaries.

SEC. 1112. FEE REDUCTIONS.

    (a) Administrative Provisions for the Small Business 
Administration.--
            (1) Definition.--In this subsection, the term ``covered 
        business loan'' means a loan--
                    (A) of not more than $2,000,000;
                    (B) that is guaranteed by the Administrator under 
                section 7(a) of the Small Business Act (15 U.S.C. 
                636(a));
                    (C) for which the application is approved on or 
                after the date of enactment of this Act; and
                    (D) that is made to a Puerto Rico business.
            (2) Fees.--During the period beginning on the date of 
        enactment of this Act and ending on the Oversight Board 
        termination date, and to the extent that the cost of such 
        elimination or reduction of fees is offset by appropriations, 
        with respect to each covered business loan, the Administrator 
        shall--
                    (A) in lieu of the fee otherwise applicable under 
                section 7(a)(23)(A) of the Small Business Act, collect 
                no fee or reduce fees to the maximum extent possible; 
                and
                    (B) in lieu of the fee otherwise applicable under 
                section 7(a)(18)(A) of the Small Business Act, collect 
                no fee or reduce fees to the maximum extent possible.
    (b) Temporary Fee Elimination for the 504 Loan Program.--
            (1) In general.--During the period beginning on the date of 
        enactment of this Act and ending on the Oversight Board 
        termination date, and to the extent the cost of such 
        elimination in fees is offset by appropriations, with respect 
        to each loan of not more than $2,000,000 guaranteed by the 
        Administrator under title V of the Small Business Investment 
        Act of 1958 (15 U.S.C. 695 et seq.) with respect to a 
        development company that has its principal office located in 
        Puerto Rico and for which an application is approved or pending 
        approval on or after the date of enactment of this Act--
                    (A) the Administrator shall, in lieu of the fee 
                otherwise applicable under section 503(d)(2) of the 
                Small Business Investment Act of 1958 (15 U.S.C. 
                697(d)(2)), collect no fee; and
                    (B) a development company shall, in lieu of the 
                processing fee under section 120.971(a)(1) of title 13, 
                Code of Federal Regulations (relating to fees paid by 
                borrowers), or any successor thereto, collect no fee.
            (2) Reimbursement for waived fees.--
                    (A) In general.--To the extent that the cost of 
                such payments is offset by appropriations, the 
                Administrator shall reimburse each development company 
                that does not collect a processing fee under paragraph 
                (1)(B).
                    (B) Amount.--The reimbursement to a development 
                company under subparagraph (A) shall be in an amount 
                equal to 1.5 percent of the net debenture proceeds for 
                which the development company does not collect a 
                processing fee under paragraph (1)(B).
    (c) Application of Fee Eliminations.--To the extent that amounts 
are made available to the Administrator for the purpose of fee 
eliminations or reductions under subsection (a), the Administrator 
shall--
            (1) first use any amounts provided to eliminate or reduce 
        fees paid by borrowers under clauses (i), (ii), and (iii) of 
        section 7(a)(18)(A) of the Small Business Act (15 U.S.C. 
        636(a)(18)(A)), to the maximum extent possible;
            (2) to the extent amounts provided remain after use in 
        accordance with paragraph (1), use any amounts provided to 
        eliminate or reduce fees under section 7(a)(23)(A) of the Small 
        Business Act (15 U.S.C. 636(a)(23)(A)) paid by lenders with 
        assets of not more than $1,000,000,000, as of the date of 
        enactment of this Act; and
            (3) to the extent amounts provided remain after use in 
        accordance with paragraphs (1) and (2), use any remaining 
        amounts provided to reduce fees under section 7(a)(23)(A) of 
        the Small Business Act paid by lenders other than those 
        described under paragraph (2).

SEC. 1113. ECONOMIC STIMULUS LENDING PROGRAM FOR SMALL BUSINESSES.

    (a) Authority.--Notwithstanding section 7(a) of the Small Business 
Act (15 U.S.C. 636(a)), for a qualifying small business loan the 
Administrator may guarantee not more than 90 percent of the balance of 
the financing outstanding at the time of disbursement of the loan, if 
such balance is less than or equal to $2,000,000.
    (b) Qualifying Small Business Loan Defined.--For purposes of this 
section, the term ``qualifying small business loan'' means any loan to 
a Puerto Rico business made pursuant to section 7(a) of the Small 
Business Act (15 U.S.C. 636(a)), except for such loans made under 
section 7(a)(31) of such Act (15 U.S.C. 636(a)(31)).
    (c) Qualified Borrowers.--
            (1) Aliens unlawfully present in the united states.--The 
        Administrator may not guarantee a loan made under this section 
        to a small business concern if an individual who is an alien 
        unlawfully present in the United States--
                    (A) has an ownership interest in that concern; or
                    (B) has an ownership interest in another concern 
                that itself has an ownership interest in that concern.
            (2) Firms in violation of immigration laws.--The 
        Administrator may not guarantee a loan made under this section 
        to any entity, based on a determination by the Secretary of 
        Homeland Security or the Attorney General, found to have 
        engaged in a pattern or practice of hiring, recruiting, or 
        referring for a fee for employment in the United States an 
        alien, if such entity knows that the person is an unauthorized 
        alien.
    (d) Criminal Background Checks.--Prior to guaranteeing a loan made 
under this section, the Administrator may verify the applicant's 
criminal background, or lack thereof, through the best available means, 
including, if possible, use of the National Crime Information Center 
computer system at the Federal Bureau of Investigation.
    (e) Application of Other Law.--Nothing in this section shall be 
construed to exempt any activity of the Administrator under this 
section from the Federal Credit Reform Act of 1990.
    (f) Small Business Act Provisions.--The provisions of the Small 
Business Act applicable to loan guarantees under section 7 of that Act 
and regulations promulgated thereunder as of the date of enactment of 
this Act shall apply to loan guarantees under this section except as 
otherwise provided in this section.
    (g) Sunset.--The Administrator may not guarantee a loan made under 
this section after the Oversight Board termination date.

SEC. 1114. CONTRIBUTION PERCENTAGES FOR 504 PROJECTS.

    Notwithstanding section 502(3) of the Small Business Investment Act 
of 1958 (15 U.S.C. 696(3)), during the period beginning on the date of 
enactment of this Act and ending on the Oversight Board termination 
date, the Administrator may guarantee a debenture issued by a 
development company that has its principal office located in Puerto 
Rico if, of the total cost of the project financed--
            (1) 50 percent is derived from a loan from a private sector 
        lender;
            (2) 45 percent is derived from a loan made from the 
        proceeds of such debenture issued by the development company; 
        and
            (3) 5 percent is provided by the borrower of such loans.

SEC. 1115. INDEPENDENT SUBSIDY CALCULATION.

    In making calculations under section 7(a)(26) of the Small Business 
Act (15 U.S.C. 636(a)(26)) or section 503(g) of the Small Business 
Investment Act of 1958 (15 U.S.C. 697(g)), the Director of the Office 
of Management and Budget shall make such calculations separately for 
loans purchased or guaranteed under the authority under section 1112, 
1113, or 1114 of this Act.

                          PART II--PROCUREMENT

SEC. 1121. CONTRACTING PREFERENCE FOR PUERTO RICO BUSINESSES.

    Section 15 of the Small Business Act (15 U.S.C. 644) is amended by 
adding at the end the following:
    ``(u) Contracting Preference for Puerto Rico Businesses.--
            ``(1) Contracting preference.--An agency shall provide a 
        contracting preference for a Puerto Rico business during the 
        period beginning on the date of enactment of this subsection 
        and ending on the date on which the Oversight Board established 
        under section 101 of the Puerto Rico Oversight, Management, and 
        Economic Stability Act (48 U.S.C. 2121) terminates. The 
        preference under this subsection shall take priority over any 
        preference for purchasing from the procurement list established 
        pursuant to section 8503 of title 41, United States Code, or 
        the Federal Prison Industries catalog described under section 
        4124(d) of title 18, United States Code.
            ``(2) Credit for meeting contracting goals.--If an agency 
        awards a contract to a Puerto Rico business as described in 
        paragraph (1), the value of the contract shall be doubled for 
        purposes of determining compliance with the goals for 
        procurement contracts under subsection (g)(1)(A).''.

SEC. 1122. PRIORITY FOR SURPLUS PROPERTY TRANSFERS.

    Section 7(j)(13)(F) of the Small Business Act (15 U.S.C. 
636(j)(13)(F)) is amended by adding at the end the following:
            ``(iii)(I) In this clause, the term `covered period' means 
        the period beginning on the date of enactment of this clause 
        and ending on the date on which the Oversight Board established 
        under section 101 of the Puerto Rico Oversight, Management, and 
        Economic Stability Act (48 U.S.C. 2121) terminates.
            ``(II) The Administrator may transfer technology or surplus 
        property under clause (i) on a priority basis to a Puerto Rico 
        business if the Puerto Rico business meets the requirements for 
        such a transfer, without regard to whether the Puerto Rico 
        business is a Program Participant.''.

SEC. 1123. SUBCONTRACTING INCENTIVES FOR PROTEGE FIRMS THAT ARE PUERTO 
              RICO BUSINESSES.

    Section 45(a) of the Small Business Act (15 U.S.C. 657r(a)) is 
amended by adding at the end the following:
            ``(3) Puerto rico small business concerns.--
                    ``(A) In general.--During the period beginning on 
                the date of enactment of this paragraph and ending on 
                the date on which the Oversight Board established under 
                section 101 of the Puerto Rico Oversight, Management, 
                and Economic Stability Act (48 U.S.C. 2121) terminates, 
                the Administrator shall provide additional incentives 
                to covered mentors, including providing additional 
                credit for subcontracts awarded to covered proteges and 
                costs incurred for providing training to covered 
                proteges.
                    ``(B) Definitions.--In this paragraph--
                            ``(i) the term `covered mentor' means a 
                        mentor that enters into an agreement under this 
                        Act, or under any mentor-protege program 
                        approved under subsection (b)(1), with a 
                        covered protege; and
                            ``(ii) the term `covered protege' means a 
                        protege--
                                    ``(I) of a covered mentor; and
                                    ``(II) that has its principal 
                                office located in the Commonwealth of 
                                Puerto Rico.''.

SEC. 1124. ADDITIONAL MENTOR-PROTEGE RELATIONSHIPS FOR PROTEGE FIRMS 
              THAT ARE PUERTO RICO BUSINESSES.

    Section 45(b)(3)(A) of the Small Business Act (15 U.S.C. 
657r(b)(3)(A)) is amended by inserting ``, except that such 
restrictions shall not apply to a relationship that was entered into 
before the date on which the Oversight Board established under section 
101 of the Puerto Rico Oversight, Management, and Economic Stability 
Act (48 U.S.C. 2121) terminates and in which the principal office of 
the protege is located in the Commonwealth of Puerto Rico'' after 
``each participant''.

                 PART III--ENTREPRENEURIAL DEVELOPMENT

SEC. 1131. VETERAN BUSINESS OUTREACH CENTER IN PUERTO RICO.

    (a) In General.--Section 32 of the Small Business Act (15 U.S.C. 
657b) is amended--
            (1) by redesignating subsection (f) as subsection (g); and
            (2) by inserting after subsection (e) the following:
    ``(f) Veteran Business Outreach Center in Puerto Rico.--The 
Administrator shall partner with an organization to establish a Veteran 
Business Outreach Center in the Commonwealth of Puerto Rico to provide 
entrepreneurial development services to small business concerns owned 
and controlled by service-disabled veterans and small business concerns 
owned and controlled by veterans located in the Commonwealth of Puerto 
Rico. If the Administrator cannot partner with an organization, the 
Administrator shall use amounts appropriated to carry out this 
subsection to provide such services to veterans who own or are 
considering starting a Puerto Rico business.''.
    (b) Prospective Repeal.--Effective on the Oversight Board 
termination date, section 32 of the Small Business Act (15 U.S.C. 
657b), as amended by subsection (a), is amended--
            (1) by striking subsection (f); and
            (2) by redesignating subsection (g) as subsection (f).

SEC. 1132. FAST GRANT PROGRAM FOR PUERTO RICO.

    (a) In General.--Section 34 of the Small Business Act (15 U.S.C. 
657d) is amended by adding at the end the following:
    ``(j) FAST Grant Program for Puerto Rico.--
            ``(1) Establishment.--The Administrator shall establish a 
        program that shall be part of the FAST program to make awards 
        to, or enter into cooperative agreements with, a Puerto Rico 
        business.
            ``(2) Technical assistance.--If no applicant is selected to 
        receive assistance under this subsection, the Administrator 
        shall use amounts appropriated to carry out this subsection to 
        provide business advice and counseling to a Puerto Rico 
        business.
            ``(3) Waiver of matching requirements.--The Administrator 
        may, upon application, waive the matching requirements under 
        subsection (e)(2) for an applicant that receives an award or 
        has in effect a cooperative agreement under this subsection.
            ``(4) Funding.--There is authorized to be appropriated 
        $100,000 for fiscal year 2018, and each fiscal year thereafter, 
        to carry out this subsection.''.
    (b) Prospective Repeal.--Effective on the Oversight Board 
termination date, section 34 of the Small Business Act (15 U.S.C. 
657d), as amended by subsection (a), is amended by striking subsection 
(j).

            PART IV--SMALL BUSINESS ADMINISTRATION OVERSIGHT

SEC. 1141. REQUIREMENT FOR THE DISTRICT DIRECTOR OF PUERTO RICO.

    (a) In General.--During the period beginning on the date of 
enactment of this Act and ending on the Oversight Board termination 
date, the director of the district office of the Small Business 
Administration located in Puerto Rico shall submit directly to Congress 
and the Administrator an annual report on the activities of the Small 
Business Administration in Puerto Rico.
    (b) Coordination.--In preparing each report described in subsection 
(a), the director described in such subsection shall consult with other 
Federal agencies to collect data on grants, programs, and outreach 
activities carried out by such agencies that affect any Puerto Rico 
business.

                PART V--DISASTER LOAN PROGRAM EXPANSION

SEC. 1151. AMENDMENT TO DEFINITION OF DISASTER FOR 7(B) LOANS.

    (a) In General.--Section 3(k)(2) of the Small Business Act (15 
U.S.C. 632(k)(2)) is amended--
            (1) in subparagraph (B), by striking ``and'' at the end;
            (2) in subparagraph (C), striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following:
            ``(D) communicable diseases for which the Federal 
        Government issues a travel alert or travel warning.''.
    (b) Applicability.--The amendment made by subsection (a) shall 
apply to a communicable disease--
            (1) for which the Federal Government issues a travel alert 
        or travel warning before, on, or after the date of enactment of 
        this Act; and
            (2) the effects of which are experienced on or after the 
        date of enactment of this Act.

        PART VI--AMENDMENT TO THE INVESTMENT COMPANY ACT OF 1940

SEC. 1161. TERMINATION OF EXEMPTION FOR COMPANIES IN TERRITORIES OF THE 
              UNITED STATES.

    (a) In General.--Section 6(a) of the Investment Company Act of 1940 
(15 U.S.C. 80a-6(a)) is amended--
            (1) by striking paragraph (1); and
            (2) by redesignating paragraphs (2) through (5) as 
        paragraphs (1) through (4), respectively.
    (b) Effective Date and Safe Harbor.--
            (1) Effective date.--Except as provided in paragraph (2), 
        the amendment made by subsection (a) shall take effect on the 
        date of enactment of this Act.
            (2) Safe harbor.--With respect to a company that is exempt 
        under section 6(a)(1) of the Investment Company Act of 1940 (15 
        U.S.C. 80a-6(a)(1)), as in effect on the day before the date of 
        enactment of this Act, the amendment made by subsection (a) 
        shall take effect on the date that is 3 years after the date of 
        enactment of this Act.
            (3) Extension of safe harbor.--The Securities and Exchange 
        Commission, by rule and regulation upon its own motion, or by 
        order upon application, may conditionally or unconditionally, 
        under section 6(c) of the Investment Company Act of 1940 (15 
        U.S.C. 80a-6(c)), may further delay the effective date for a 
        company described in paragraph (2) to be not later than the 
        date that is 6 years after the date of enactment of this Act 
        if, before the end of the initial 3-year period, the Commission 
        determines that such a rule, regulation, motion, or order is 
        necessary or appropriate in the public interest and for the 
        protection of investors.

                Subtitle B--Unemployment Pilot Programs

SEC. 1201. REEMPLOYMENT THROUGH DEMONSTRATION PROJECTS.

    (a) Modification of Numerical Limitation.--Subsection (a) of 
section 305 of the Social Security Act (42 U.S.C. 505) is amended by 
inserting ``per year'' after ``10 States''.
    (b) Clarification of Application Requirements.--Subsection (b) of 
such section 305 is amended--
            (1) by inserting ``or his or her designee'' after ``The 
        Governor of any State''; and
            (2) by striking paragraph (2) and inserting the following:
            ``(2) for any waiver requested under subsection (c), a 
        statement describing--
                    ``(A) the specific provision or provisions of law 
                for which such waiver is requested; and
                    ``(B) the specific aspects of the project to which 
                such waiver would apply and the reasons why it is 
                needed;''.
    (c) Extension of Eligible Time Period.--Subsection (d) of such 
section 305 is amended--
            (1) in paragraph (2), by striking ``may not be approved'' 
        and inserting ``may not be conducted''; and
            (2) in paragraph (3), by inserting ``, or in the case of 
        Puerto Rico, December 31, 2020'' after ``December 31, 2015''.
    (d) Clarification of Demonstration Activities.--Subsection (e) of 
such section 305 is amended--
            (1) in paragraph (1), by striking ``for employer-provided 
        training, such as'' and inserting ``to employers or claimants 
        for employer-provided training or''; and
            (2) in paragraph (2), by striking ``receiving unemployment 
        compensation'' and all that follows through ``prior benefit 
        level'' and inserting ``receiving unemployment compensation, 
        including disbursements used to retain individual employees, 
        not to exceed the weekly benefit amount for each such 
        individual''.
    (e) Termination of Demonstration Projects.--Subsection (g) of such 
section 305 is amended to read as follows:
    ``(g) The Secretary of Labor may terminate a demonstration project 
under this section if the Secretary--
            ``(1) determines that the State has violated the 
        substantive terms or conditions of the project;
            ``(2) notifies the State in writing with sufficient detail 
        describing the violation; and
            ``(3) determines that the State has not taken action to 
        correct the violation within 90 days after the notification.''.
    (f) Effective Date; Transition Rule.--
            (1) Effective date.--The amendments made by this section 
        shall take effect on the date of the enactment of this Act.
            (2) Transition rule.--
                    (A) In general.--Nothing in this Act shall be 
                considered to terminate or otherwise affect any 
                demonstration project approved under section 305 of the 
                Social Security Act before the date of the enactment of 
                this Act.
                    (B) Original conditions continue to apply.--A 
                demonstration project described in subparagraph (A) 
                shall be conducted in the same manner as if subsections 
                (a) through (f) had not been enacted.

SEC. 1202. EVALUATION OF DEMONSTRATION PROJECTS.

    (a) In General.--Section 305 of the Social Security Act (42 U.S.C. 
505) is amended by adding at the end the following:
    ``(i) The Secretary of Labor shall conduct an impact evaluation of 
each demonstration project conducted under this section, using existing 
data sources to the extent possible and methodology appropriate to 
determine the effects of the demonstration project, including on 
individual skill levels, earnings, and employment retention.''.
    (b) Cooperation by State.--Section 305(b) of the Social Security 
Act (42 U.S.C. 505(b)), as amended by section 1201(b) of this Act, is 
further amended by striking paragraphs (5) and (6) and inserting the 
following:
            ``(5) a description of the manner in which the State will 
        determine the extent to which the goals and outcomes described 
        in paragraph (3) were achieved;
            ``(6) assurances that the State will cooperate, in a timely 
        manner, with the Secretary of Labor with respect to the impact 
        evaluation conducted under subsection (i); and''.
    (c) Reporting.--Not later than 90 days after the end of fiscal year 
2019 and each fiscal year thereafter, until the completion of the last 
evaluation under section 305(i) of the Social Security Act, the 
Secretary shall submit to the Committee on Ways and Means of the House 
of Representatives and the Committee on Finance of the Senate, a report 
that includes a description of--
            (1) the status of each demonstration project being carried 
        out under this section;
            (2) the results of the evaluation completed during the 
        previous fiscal year; and
            (3) the Secretary's plan for--
                    (A) disseminating the findings of the report to 
                appropriate State agencies; and
                    (B) incorporating the components of successful 
                demonstration projects that reduced benefit duration 
                and increased employment into Federal unemployment law.
    (d) Public Dissemination.--In addition to the reporting 
requirements under subparagraph (c), evaluation results shall be shared 
broadly to inform policymakers, service providers, other partners, and 
the public in order to promote wide use of successful strategies, 
including by posting evaluation results on the Internet website of the 
Department of Labor.

                     Subtitle C--Federal Statistics

SEC. 1301. AUTHORITY TO TRANSFER DEPARTMENT OF LABOR APPROPRIATIONS, TO 
              INCLUDE PUERTO RICO IN REPORTS OF THE BUREAU OF LABOR 
              STATISTICS.

    (a) In General.--For fiscal year 2018, in addition to any other 
authority to transfer an amount appropriated to an account of the 
Department of Labor, the Secretary of Labor may transfer not more than 
$1,800,000 to any account of the Bureau of Labor Statistics from an 
amount appropriated to any other account of the Department of Labor.
    (b) Use of Funds.--Any amount transferred under subsection (a) 
shall be used solely to study--
            (1) the feasibility of expanding the Current Population 
        Survey to produce estimates for Puerto Rico, which would 
        provide data on the labor force, employment, and unemployment 
        from a monthly household survey; and
            (2) the feasibility of expanding the Consumer Price Index 
        program to include data from Puerto Rico.

SEC. 1302. ANNUAL REPORT BY PRINCIPAL FEDERAL STATISTICAL AGENCIES ON 
              PUERTO RICO.

    Each principal Federal statistical agency, as defined in the most 
recent report by the Office of Management and Budget entitled 
``Statistical Programs of the United States Government'', shall provide 
a written report on its current and planned activities to include 
Puerto Rico in its Federal statistical programs, including progress 
toward efficiently including Puerto Rico in Federal statistical reports 
to date, to the Committees on Appropriations of the House of 
Representatives and the Senate and the House Committee on Natural 
Resources and the Senate Committee on Energy and Natural Resources, not 
later than 1 year after the date of the enactment of this Act and 
annually thereafter.

                            TITLE II--HEALTH

             Subtitle A--Improved Prescription Drug Funding

SEC. 2101. INCREASING LEVELS OF PHARMACY ASSISTANCE.

    Section 1935(e)(3)(B) of the Social Security Act (42 U.S.C. 1396u-
5(e)(3)(B)) is amended--
            (1) in clause (ii), by striking ``or'';
            (2) in clause (iii)--
                    (A) by striking ``a subsequent year'' and inserting 
                ``each of fiscal years 2008 through 2016''; and
                    (B) by striking the period at the end and inserting 
                a semicolon; and
            (3) by adding at the end the following clauses:
                            ``(iv) fiscal year 2018, is equal to 
                        $100,000,000; or
                            ``(v) each fiscal year after 2018, is equal 
                        to the aggregate amount specified in this 
                        subparagraph for the previous year increased by 
                        the annual percentage increase specified in 
                        section 1860D-2(b)(6) for the year involved.''.

SEC. 2102. TREATMENT OF PRESCRIPTION DRUG ASSISTANCE TO ALL PART D 
              ELIGIBLES AS MEDICAL ASSISTANCE; NO TERRITORY MATCH 
              REQUIRED.

    (a) In General.--Section 1935(e) of the Social Security Act (42 
U.S.C. 1396u-5(e)) is amended--
            (1) by redesignating paragraph (4) as paragraph (6); and
            (2) by inserting after paragraph (3) the following new 
        paragraphs:
            ``(4) Treatment of prescription drug assistance furnished 
        to part d eligibles.--Notwithstanding any other provision of 
        this title, financial assistance for prescription drug expenses 
        furnished under a plan established under this subsection to a 
        part D eligible individual who would qualify as a subsidy 
        eligible individual under section 1860D-14(a)(3) if the 
        individual resided in one of the 50 States or the District of 
        Columbia shall be treated as medical assistance provided by the 
        State plan for purposes of section 1903, without regard to 
        whether such individual otherwise qualifies for medical 
        assistance under this title.
            ``(5) No territory match required.--Notwithstanding section 
        1905(b), with respect to medical assistance furnished to an 
        individual by a State under a plan established under this 
        subsection, the Federal medical assistance percentage shall be 
        equal to 100 percent.''.
    (b) Conforming Amendment.--Section 1905(b) of the Social Security 
Act (42 U.S.C. 1396d(b)) is amended in the first sentence by striking 
``and section 1933(d)'' and inserting ``, section 1933(d), and section 
1935(e)(5)''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2018.

                   Subtitle B--Additional Provisions

SEC. 2201. CALCULATION OF MEDICARE DSH PAYMENTS FOR IPPS HOSPITALS IN 
              PUERTO RICO.

    Section 1886(d)(9)(D)(iii) of the Social Security Act (42 U.S.C. 
1395ww(d)(9)(D)(iii)) is amended to read as follows:
            ``(iii) Subparagraph (F) (relating to disproportionate 
        share payments), including application of subsection (r), 
        except that for this purpose--
                    ``(I) the sum described in clause (ii) of this 
                subparagraph shall be substituted for the sum referred 
                to in paragraph (5)(F)(ii)(I); and
                    ``(II) for discharges occurring on or after October 
                1, 2018, subclause (I) of paragraph (5)(F)(vi) shall be 
                applied by substituting for the numerator described in 
                such subclause a factor determined appropriate by the 
                Secretary.''.

SEC. 2202. ADMINISTRATIVE FLEXIBILITY WITH RESPECT TO THE TERRITORIES.

    (a) In General.--Section 1108 of the Social Security Act (42 U.S.C. 
1308) is amended by adding at the end the following:
    ``(h) Administrative Flexibility With Respect to the Territories.--
Notwithstanding any other provision of this Act, with respect to the 
applicability to Puerto Rico, the United States Virgin Islands, Guam, 
the Northern Mariana Islands, and American Samoa of payment formulas 
under titles XVIII and XIX, the Secretary shall do the following:
            ``(1) Determine the availability of data for payment 
        calculation factors required or authorized by respective 
        payment formulas under such titles.
            ``(2) Determine the sufficiency, relevance and reliability 
        of available data for payment calculation factors to adequately 
        account for variations in standard benefits under programs 
        established under this Act, variations in program penetration, 
        and variations in the cost of delivering care that are unique 
        to such territories.
            ``(3) Determine whether the inclusion of payment 
        calculation factors or certain data sources thereunder, whether 
        prescribed by the respective titles or ordinarily used by the 
        Secretary, disproportionately impact the resulting payment 
        calculation with respect to each such territory, either 
        generally or relative to the States.
            ``(4) Insofar as the Secretary determines in accordance 
        with paragraph (1), (2), or (3) that data are not available, 
        that available data is insufficient to reliably and adequately 
        account for variations in standard benefits under programs 
        established under this Act, variations in program penetration, 
        and variations in the cost of delivering care that are unique 
        to such territories, or to the extent that disproportionate 
        impact to such territories would otherwise occur--
                    ``(A) establish and apply a proxy for payment 
                calculation factors or substitute data sources where 
                data sources are determined unavailable, or as 
                determined necessary to adequately reflect variations 
                in standard benefits under programs established under 
                this Act and in the cost of delivering care that are 
                unique to such territories; or
                    ``(B) to the extent the inclusion of payment 
                calculation factors or certain data sources thereunder 
                disproportionately impacts the resulting payment 
                calculation with respect to each such territory, either 
                generally or relative to the States, disregard the 
                factor or data source or devise and apply an 
                appropriate adjustment factor.
            ``(5) For purposes of extending the full benefits of 
        payments to such territories intended under the respective 
        titles, ensure that the application of payment calculation 
        factors with respect to such territories occurs in a manner 
        that takes into account the geographic and demographic 
        differences, abnormalities in the cost of delivering care in 
        such territories, and the potential disproportionate impact to 
        each such territory, either generally or relative to the 
        States.''.
    (b) Implementation.--The Secretary of Health and Human Services 
shall determine and apply the payment calculation adjustments 
authorized under section 1108(h) of the Social Security Act (42 U.S.C. 
1308(h)), as added by subsection (a), as soon as practicable after the 
date of enactment of this Act in order to allow for the application of 
appropriate payment calculation factors to Puerto Rico, the United 
States Virgin Islands, Guam, the Northern Mariana Islands, and American 
Samoa under titles XVIII and XIX of the Social Security Act (42 U.S.C. 
1395 et seq., 1396 et seq.) at the earliest feasible opportunity.

SEC. 2203. SENSE OF CONGRESS REGARDING FEDERAL HEALTH PROGRAMS IN 
              TERRITORIES OF THE UNITED STATES.

    It is the sense of Congress that--
            (1) the territories of the United States should receive 
        more equitable and sustainable treatment under Federal health 
        policies and programs, including the Medicare and Medicaid 
        programs, in a fiscally responsible manner; and
            (2) the treatment of the territories of the United States 
        under Federal health programs, with appropriate Federal 
        oversight, should aim to--
                    (A) improve patient outcomes and strengthen health 
                care systems in the territories;
                    (B) mitigate against migration from the territories 
                to the States and the costs to the State and Federal 
                governments which are associated with such migration; 
                and
                    (C) stabilize and strengthen the fiscal condition 
                of the governments of the territories.

                          TITLE III--SECURITY

SEC. 3101. CARIBBEAN BORDER COUNTERNARCOTICS STRATEGY.

    (a) Caribbean Border Counternarcotics Strategy.--Not later than 6 
months after the date of enactment of this Act, and every 2 years 
thereafter, the Office of National Drug Control Policy shall develop a 
Caribbean Border Counternarcotics Strategy, that is made available to 
the public, with emphasis on the borders of Puerto Rico and the Virgin 
Islands of the United States, on terms substantially equivalent to the 
existing Southwest Border Counternarcotics Strategy and the Northern 
Border Counternarcotics Strategy.
    (b) Amendments.--The Office of National Drug Control Policy 
Reauthorization Act of 1998 (21 U.S.C. 1701 et seq.) is amended--
            (1) in section 702 (21 U.S.C. 1701)--
                    (A) by redesignating paragraphs (10) through (13) 
                as paragraphs (11) through (14), respectively;
                    (B) by inserting after paragraph (9) the following 
                new paragraph:
            ``(10) State.--The term `State' means the several States, 
        the District of Columbia, Puerto Rico, the Virgin Islands of 
        the United States, American Samoa, Guam, and the Commonwealth 
        of the Northern Mariana Islands.''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(15) United states.--The term `United States' when used 
        in the geographic sense, means the several States, the District 
        of Columbia, Puerto Rico, the Virgin Islands of the United 
        States, American Samoa, Guam, the Commonwealth of the Northern 
        Mariana Islands, and all other territories and possessions of 
        the United States, and any waters within the jurisdiction of 
        the United States.''; and
            (2) in section 704(b)(13)(B) (21 U.S.C. 1703(b)(13)(B)), by 
        inserting ``the borders of Puerto Rico and the Virgin Islands 
        of the United States and'' after ``in particular''.
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