An act to amend the Small Business Act to establish a small business computer security and education program, and for other purposes.
PL 98-362 (H.R.3075), enacted 07/16/1984

PUBLIC LAW 98-362—JULY 16, 1984 
98 STAT. 431 
Public Law 98-362 
98th Congress 
An Act 
To amend the Small Business Act to establish a small business computer security 
and education program, and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SHORT TITLE 
SECTION 1. This Act may be cited as the "Small Business Com-
puter Security and Education Act of 1984". 
July 16, 1984 
[H.R. 3075] 
Small Business 
Computer 
Security and 
Education Act of 
1984. 
15 u s e 631 note. 
Congress. 
Science and 
technology. 
15 u s e 633 note, 
Crimes and 
misdemeanors. 
FINDING AND PURPOSES 
SEC. 2. (a) The Congress hereby finds that— 
(1) there is increased dependency on, and proliferation of, 
information technology (including computers, data networks, 
and other communication devices) in the small business commu-
: 
nity; 
(2) such technology has permitted an increase in criminal 
activity against small business; 
(3) small businesses in particular frequently lack the educa-
tion and awareness of computer security techniques and tech-
nologies which would enable them to protect their computer 
systems from unauthorized access and the manipulation or 
I 
destruction of their computer hardware, software, and stored 
data; 
(4) profitmaking organizations have substantial expertise in 
computer technology, communications, and management assist-
ance that is not otherwise available; and 
s 
(5) the use of this expertise in the Small Business Administra-
tion's training delivery system would improve substantially the 
•
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quantity and quality of the agency's management assistance 
programs, 
(b) The purposes of this Act are— 
(1) to improve the management by small businesses of their 
information technology, 
(2) to educate and encourage small businesses to protect such 
•'• technology from intentional or unintentional manipulation or 
destruction; and 
(3) to permit cooperation with profitmaking organizations in 
providing management assistance to small business. 
C O M P U T E R SECURITY A N D E D U C A T I O N ADVISORY COUNCIL 
SEC. 3. Section 4(b) of the Small Business Act (15 U.S.C. 633(b)) is Establishment. 
amended by adding at the end thereof the following: 
"(3)(A) The Administrator shall, not later than ninety days after 
the effective date of the Small Business Computer Security and 
Education Act of 1984, establish an advisory council to be known as Supra. 
STAT. 432 
PUBLIC LAW 98-362—JULY 16, 1984 
the Small Business Computer Security and Education Advisory 
Council (hereinafter referred to as the 'advisory council'). 
"(B) The advisory council shall consist of the following members: 
"(i) an official 
of the Small Business Administration, 
appointed by the Administrator; 
"(ii) an official of the Institute for Computer Sciences and 
Technology of the Department of Commerce, appointed by the 
Secretary of Commerce; 
"(iii) an official of the Department of Justice, appointed by the 
Attorney General, who is knowledgeable about issues of com-
puter security and its protection; 
"(iv) an official of the Department of Defense, appointed by 
the Secretary of Defense, who is knowledgeable about issues of 
computer security; 
"(v) one individual, appointed by the Administrator, who is 
representative of the interests of the manufacturers of com-
puter hardware to small business concerns; 
"(vi) one individual, appointed by the Administrator, who is 
representative of the interests of the manufacturers of com-
puter software to small business concerns; 
"(vii) one individual, appointed by the Administrator, who is 
representative of the interests of the providers of computer 
liability insurance to small business concerns; 
"(viii) one individual, appointed by the Administrator, who is 
representative of the interests of the providers of computer 
security equipment and services to small business concerns; 
"(ix) one individual, appointed by the Administrator, who is 
representative of the interests of associations of small business 
concerns, other than small business concerns engaging in any of 
the activities described in clauses (v) through (viii); and 
"(x) such additional qualified individuals from the private 
sector, appointed by the Administrator, as the Administrator 
determines to be appropriate. 
"(C) It shall be the function of the advisory council to advise the 
Administration on— 
"(i) the nature and scope of computer crimes committed 
against small business concerns; 
"(ii) the effectiveness of Federal and State law in deterring 
computer-related criminal activity or prosecuting computer-
related crimes; 
"(iii) the effectiveness of computer technology and manage-
ment techniques available to small business for increasing their 
computer security; 
"(iv) the development of information and guidelines to be 
made available to the Administrator to assist small business 
concerns in evaluating the security of computer systems; and 
"(v) such other appropriate functions of the small business 
computer security and education program. 
"(D) The Administrator shall designate one of the non-Federal 
members of the advisory council as its chairperson. The advisory 
council shall meet at least annually and at such other times as 
requested by the Administrator. A majority of the members of the 
advisory council shall constitute a quorum. Vacancies on the council 
shall be filled in the same manner as the original appointment. 
"(E) Each member of the advisory council shall serve without 
additional pay, allowances, or benefits by reason of such service. 
Each non-Federal member shall be reimbursed for actual expenses, 
PUBLIC LAW 98-362—JULY 16, 1984 
98 STAT. 433 
Information, 
disclosure. 
Ante, p. 431. 
including travel expenses, as authorized by section 5703 of title 5, 
United States Code. 
"(F) Upon request of the chairperson of the advisory council, the 
Administrator may request directly from any Federal agency infor-
mation necessary to enable the advisory council to carry out its 
functions under the Small Business Computer Security and Educa-
tion Act of 1984. Upon the request of the Administrator, the head of 
such agency shall furnish to the Administrator such information, 
subject to the requirements of section 552 of title 5, United States 
Code.". 
COMPUTER SECURITY AND EDUCATION PROGRAM 
SEC. 4. Section 4(b) of the Small Business Act (15 U.S.C. 633(b)) is Ante, p. 431. 
further amended by adding at the end thereof the following: 
"(4)(A) The Administrator shall establish a small business com-
puter security and education program to— 
"(i) provide small business concerns information regarding— 
"(I) utilization and management of computer technology; 
"(II) computer crimes committed against small business 
concerns; and 
"(III) security for computers owned or utilized by small 
business concerns; 
^ 
"(ii) provide for periodic forums for small business concerns to 
improve their knowledge of the matters described in clause (i); 
and 
"(iii) provide training opportunities to educate small business 
users on computer security techniques. 
"(B) The Administrator, after consultation with the Director of 
the Institute of Computer Sciences and Technology within the 
Department of Commerce, shall develop information and materials 
to carry out the activities described in subparagraph (A) of this 
paragraph.". 
PRIVATE SECTOR COOPERATION 
^ '^ 
SEC. 5. (a) Section 8(b)(1)(A) of the Small Business Act is amended— 
15 use 637. 
(1) by inserting "computer security," after "wage incen-
tives,"; and 
(2) by striking at the end thereof "Administration; and" and 
by inserting the following: "Administration. Such assistance 
also may be provided to small business concerns by the Admin-
istration through cooperation with a profit-making concern 
(hereafter in this paragraph referred to as a "cosponsor") to 
provide training: Provided, That the Administration shall take 
such actions as it deems appropriate to ensure that the coopera-
tion does not constitute or imply an endorsement by the Admin-
istration of the products or services of the cosponsor, to avoid 
unnecessary promotion of the products or services of the cospon-
sor, and to minimize utilization of any one cosponsor in a 
marketing area. Such actions shall include, but not be limited 
Prohibitions. 
to: (i) developing an agreement which specifies the standard 
terms and conditions of the cooperation, the use of which shall 
be mandatory; (ii) prohibiting any fee or charge from being 
imposed upon any small business concern for receiving assist-
ance in excess of a minimal amount to cover the direct costs of 
providing such assistance; (iii) prohibiting the release to the 
cosponsor of any of the Administration's lists of names and 
addresses of small business concerns; and (iv) requiring that all 
31-194 0 - 86 - 16 : QL. 3 Part 1 
98 STAT. 434 
PUBLIC LAW 98-362—JULY 16, 1984 
printed materials which contain the names of both the Adminis-
tration and the cosponsor include a prominent disclaimer that 
the cooperation does not constitute or imply an endorsement by 
the Administration of the products or services of the cosponsor." 
Report. 
(b) Not later than December 1, 1987 the Small Business Adminis-
15 use 637 note, tration shall report to the Committees on Small Business of the 
Senate and the United States House of Representatives on the 
impact of the assistance provided in cooperation with profitmaking 
concerns pursuant to the amendment made by section 5(a)(2) of the 
Ante, p. 433. 
Small Business Computer Security and Education Act of 1984. The 
report shall include information on benefits provided to small busi-
ness concerns assisted by the Administration's cooperation with 
profitmaking concerns and any negative impact upon small busi-
nesses resulting from such cooperation with profitmaking concerns. 
COMPUTER CRIME DEFINITION 
15 use 632. 
SEC. 6. Section 3 of the Small Business Act is amended by adding 
at the end thereof the following— 
"(j) For purposes of this Act— 
"(1) the term 'computer crime' means— 
"(A) any crime committed against a small business con-
cern by means of the use of a computer; and 
"(B) any crime involving the illegal use of, or tampering 
with, a computer owned or utilized by a small business 
concern.". 
EFFECTIVE DATES 
15 use 633 note. 
SEC. 7. (a) This Act shall take effect on October 1,1984. 
(b) The amendments made to section 4(b)(3) of the Small Business 
Act by section 3 of this Act and the amendments made to section 
15 use 633, 637. 8(b)(1)(A) of the Small Business Act by section 5(a)(2) of this Act are 
repealed on October 1, 1988. Nothing in this section shall preclude 
the Administrator from continuing such committee under the 
authority of section 8(b)(3) of the Small Business Act and the 
Federal Advisory Committee Act. 
Approved July 16, 1984. 
LEGISLATIVE HISTORY: H.R. 3075: 
HOUSE REPORT No. 98-423, Pt. 1 (eomm. on Small Business). 
SENATE REPORT No. 98-438 (eomm. on Small Business). 
eONGRESSIONAL REeORD: 
Vol. 129 (1983): Oct. 24, considered and passed House. 
Vol. 130 (1984): May 24, considered and passed Senate, amended. 
June 27, House concurred in Senate amendments with amend-
ments; Senate concurred in House amendments. 
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