Business Opportunity Development Reform Act Technical Corrections Act
PL 101-37 (S.767), enacted 06/15/1989

103 STAT. 70 
PUBLIC LAW 101-37—JUNE 15, 1989 
Public Law 101-37 
101st Congress 
An Act 
June 15, 1989 
[S. 767] 
Business 
Opportunity 
Development 
Reform Act 
Technical 
Corrections Act. 
15 u s e 631 note. 
15 u s e 636 note. 
To make technical corrections to the Business Opportunity Development Reform 
Act of 1988. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the "Business Opportunity Development 
Reform Act Technical Corrections Act". 
SEC. 2. TABLE OF CONTENTS. 
The table of contents of the Business Opportunity Development 
Reform Act of 1988 (hereinafter referred to as "the Act") is 
amended— 
(1) in item 713, by striking "Procurements" and inserting 
"Procurement"; and 
(2) in item 722, by striking "participating" and inserting 
"participation". 
SEC. 3. DEFINITIONS. 
Section 2 of the Act is amended— 
(1) by redesignating paragraphs (3) through (7) as paragraphs 
(4) through (8), respectively; 
' 
(2) by inserting after paragraph (2) the following new para-
graph: 
"(3) the term 'Business Opportunity Specialist' means the 
Administration employee responsible for providing business 
development assistance to Program Participants pursuant to 
sections 70') and 8(a) of the Small Business Act (15 U.S.C. 636(j), 
637(a));"; and 
(3) in paragraph (6), as redesignated— 
(A) by striking "Small Business" and inserting "Minority 
Small Business", and 
(B) by inserting before the semicolon the following: ", 
unless otherwise indicated". 
SEC. 4. PROGRAM ELIGIBILITV. 
Section 70')(11) of the Small Business Act (15 U.S.C. 6360X11)) is 
amended— 
(1) by striking subparagraph (B) and inserting the following: 
(BXi) Except as provided in clause (iii), no individual who 
was determined pursuant to section 8(a) to be socially and 
economically disadvantaged before the effective date of this 
subparagraph shall be permitted to assert such disadvan-
tage with respect to any other concern making application 
for certification after such effective date. 
"(ii) Except as provided in clause (iii), any individual upon 
whom eligibility is based pursuant to section 8(a)(4) shall be 
PUBLIC LAW 101-37—JUNE 15, 1989 
103 STAT. 71 
permitted to assert such eligibility for only one small busi-
ness concern. 
"(iii) A socially and economically disadvantaged Indian 
tribe may own more than one small business concern eli-
gible for assistance pursuant to section 7(jX10) and section 
8(a) if— 
"(I) the Indian tribe does not own another firm in the 
same industry which has been determined to be eligible 
to receive contracts under this program, and 
"(II) the individuals responsible for the management 
and dailv operations of the concern do not manage 
more than two Program Participants."; 
(2) in the first sentence of subparagraph (E), by striking 
"Office of the Associate Administrator for Minority Small Busi-
ness" and inserting "Office of Minority Small Business"; 
(3) in the second sentence of subparagraph (E), by striking 
"such Associate Administrator" and inserting "the Associate 
Administrator for Minority Small Business and Capital Owner-
ship Development"; 
(4) in subparagraph (F)(v), by striking "with the Associate 
Administrator" and inserting "to the Associate Administrator"; 
(5) in subparagraph (F), by striking clause (vi) and inserting: 
"(vi) make 
recommendations 
to the 
Associate 
Administrator for Minority Small Business and Capital 
Ownership Development concerning protests 
from 
applicants that have been denied program admission;"; 
(6) in subparagraph (F)(viii), by striking "subparagraph (H)" 
and inserting "subparagraph (I)"; 
(7) in subparagraph (G)(ii), by striking "participants" and 
inserting "Participants"; 
(8) by redesignating subparagraph (H) as subparagraph (I); 
and 
(9) by inserting after subparagraph (G) the following: 
"(H) Not later than 90 days after receipt of a completed 
application 
for 
Program 
certification, 
the 
Associate 
Administrator for Minority Small Business and Capital 
Ownership Development shall certify a small business con-
cern as a Program Participant or shall deny such applica-
tion.". 
SEC. 5. BUSINESS PLANS. 
(a) IN GENERAL.—Section 7(j)(10)(A)(i) of the Small Business Act 
(15 U.S.C. 636(j)(10)(A)(i)) is amended by striking "which sets forth" 
and inserting "which set forth". 
(b) CONTENTS OF PLAN.—Section 7(j)(10)(D) of the Small Business 
Act (15 U.S.C. 636(j)(10)(D)) is amended— 
(1) in the first sentence of clause (i), by striking "business 
opportunity specialist" and inserting "Business Opportunity 
Specialist"; 
(2) in clause (ii)(II), by striking "small business concerns" and 
inserting "the small business concern"; 
(3) in clause (iii), by inserting before the end period the 
following: "relating to attaining business activity from sources 
other than contracts awarded pursuant to section 8(a)"; 
(4) in clause (iv), by striking "contact awards" and inserting 
"contract awards"; and 
Indians. 
103 STAT. 72 
PUBLIC LAW 101-37—JUNE 15, 1989 
(5) in clause (iv)(I), by inserting before the second comma the 
following: "relating to attaining business activity from sources 
other than contracts awarded pursuant to section 8(a)". 
SEC. 6. ELIGIBILITY REVIEWS AND ELIGIBILITY OF NATIVE HAWAIIANS. 
(a) ELIGIBILITY REVIEW.—Section 7(j)(10XJ)(i) of the Small Business 
Act (15 U.S.C. 636(jX10XJ)(i)) is amended by striking "suspended or 
terminated" and inserting "suspended". 
(b) EuGiBiLiTY OF NATIVE HAWAIIANS.—Section 8(a)(15) of the 
Small Business Act (15 U.S.C. 637(aX15)) is amended by striking 
"organizations" and inserting "Organization". 
15 use 631. 
(c) Section 207(b) of the Act is amended by striking "(15 U.S.C. 
631(eX2XC))" and inserting "(15 U.S.C. 631(eXl)(C))". 
(d) DEFINITION OF "SOCIALLY AND ECONOMICALLY DISADVANTAGED 
SMALL BUSINESS CONCERN".—Section 8(aX4)(A) of the Small Busi-
ness Act (15 U.S.C. 637(aX4XA)) is amended— 
(1) in clause (i), by inserting "unconditionally" after "per 
centum"; and 
(2) in clause (ii), by inserting "unconditionally" before "owned 
by". 
SEC. 7. TERMINATION AND GRADUATION STANDARDS. 
(a) IN GENERAL.—Section 70'XIO) of the Small Business Act (15 
U.S.C. 636(jX10)) is amended— 
(1) by striking subparagraph (E)(ii) and inserting: 
"(ii) completes the period of Program participation as 
prescribed by paragraph (15);"; 
(2) by striking the first subparagraph (F); and 
(3) in subparagraph (F), by striking the first sentence and 
inserting the following: "For purposes of this section and section 
8(a), the term 'terminated' and the term 'termination' means 
the total denial or suspension of assistance under this para-
graph or under section 8(a) prior to the graduation of the 
participating small business concern or prior to the expiration 
of the maximum program participation term.". 
(b) ECONOMIC DISADVANTAGE.—Section 8(aX6)(CXiii) of the Small 
Business Act (15 U.S.C. 637(a)(6)(C)(iii)) is amended by striking out 
"section 7(jX10XH)" and inserting "section 7(jX10XG)". 
SEC. 8. STAGES OF PROGRAM PARTICIPATION. 
(a) IN GENERAL.—Section 7(jX12) of the Small Business Act (15 
U.S.C. 636(jX12)) is amended^ 
(1) in subparagraph (A), by striking "development" and 
inserting "developmental"; and 
(2) in subparagraph (B), by inserting "in its effort" after "to 
assist the concern". 
(b) DEVELOPMENTAL STAGE.—Section 7(jX13)(E) of the Small Busi-
ness Act (15 U.S.C. 636(jX13XE)) is amended by striking the second 
sentence and inserting the following: "Such assistance may be made 
without regard to section 18(a). Assistance may be made by direct 
payment to the training provider or by reimbursing the Program 
Participant or the Participant's employee, if such reimbursement is 
found to be reasonable and appropriate.". 
PUBLIC LAW 101-37—JUNE 15, 1989 
103 STAT. 73 
SEC. 9. LOANS. 
Section 7(aX20) of the Small Business Act (15 U.S.C. 636(a)(20)) is 
amended in subparagraph (CXiv), by inserting "is" before "amor-
tized". 
SEC. 
1
0
. 
CONTRACTUAL 
ASSISTANCE. 
(a) CITATION.—Section 303(a) of the Act is amended by striking "15 15 USC 636. 
U.S.C. 363(jX10)" and inserting "15 U.S.C. 636(jX10)". 
(b) COMPETITIVE BUSINESS MIX.—Section 7(jX10) of the Small Busi-
ness Act (15 U.S.C. 636(jX10)) is amended by striking "(i) During the 
developmental stage" and inserting "(IXi) During the developmental 
.stj.Ko". 
(c) COMPETITIVE THRESHOLDS.—Section 8(aXlXDXi) of the Small 
Business Act (15 U.S.C. 687(aXlXDXi)) is amended by striking "pro-
gram participants" and inserting "Program Participants". 
(d) OPTIONS.—Section 303(f)(2) of the Act is amended by inserting 
15 USC 637 note, 
"active" before "contracts previously awarded". 
(e) NON-MANUFACTURER RULE.—Section 8(aX17)(B) of the Small 
Business Act (15 U.S.C. 637(aX17XB)) is amended— 
(1) by redesignating clauses (ii) and (iii) as clauses (iii) and (iv), 
respectively, and 
(2) by inserting after clause (i) the following: 
.* 
"(ii) be a small business concern under the numerical 
size standard for the Standard Industrial Classification 
Code assigned to the contract solicitation on which the 
offer is being made;". 
SEC. 11. STATUS OF THE ASSOCIATE ADMINISTRATOR FOR MINORITY 
SMALL BUSINESS AND CAPITAL OWNERSHIP DEVELOPMENT. 
(a) IN GENERAL.—Section 401(a) of the Act is amended by striking 
15 USC 633. 
"In Section" and inserting "Section". 
(b) CAREER POSITION.—Section 401(b) of the Act is amended by 15 USC 633 note, 
striking "of the Act" and inserting "of the Small Business Act'. 
SEC. 12. PROHIBITED ACTIONS AND EMPLOYEE RESPONSIBILITIES. 
Section 8(aX18XA) of the Small Business Act (15 U.S.C. 
637(aX18)(A)) is amended by striking "certified". 
SEC. 13. POLITICALLY MOTIVATED ACTIVITIES. 
Section 
8(aX19)(B) of the Small Business Act (15 U.S.C. 
637(a)(19)(B)) is amended by striking ", imposed by the Adminis-
trator,". 
SEC. 
1
4
. 
REPORTS 
BY 
PROGRAM 
PARTICIPANTS. 
Section 
8(aX20XA) of the Small Business Act (15 U.S.C. 
"' 
- 
• 
637(aX20)(A)) is amended by striking "business opportunity special-
ist" and inserting "Business Opportunity Specialist". 
SEC. 15. CONGRESSIONALLY REQUESTED INVESTIGATIONS. 
Section 10(eX2) of the Small Business Act (15 U.S.C. 639(eX2)) is 
amended by striking "of the disposition of the matter" and inserting 
", of the disposition of the request". 
SEC. 16. CONTRACT PERFORMANCE. 
Section 8(a)(21) of the Small Business Act (15 U.S.C. 637(aX21)) is 
amended— 
(1) in subparagraph (B), by striking "The Administrator may, 
as a matter of discretion and on a nondelegable basis, waive the 
103 STAT. 74 
PUBLIC LAW 101-37—JUNE 15, 1989 
requirements of subparagraph (A) if requested to do so prior to 
the actual relinquishment of ownership or control. In addition 
to the requirement of the preceding sentence, a waiver may be 
given only if any of the following conditions exist:" and insert-
ing the following: "The Administrator may, on a nondelegable 
basis, waive the requirements of subparagraph (A) only if one of 
the following conditions exist:"; and 
(2) by redesignating subparagraphs (C) and (D) as subpara-
graphs (D) and (E), respectively, and by inserting after subpara-
graph (B) the following: 
"(C) The Administrator may waive the requirements of 
subparagraph (A) if— 
"(i) in the case of subparagraph (B) (i), (ii) and (iv), he 
is requested to do so prior to the actual relinquishment 
of ownership or control; and 
' ' 
"(ii) in the case of subparagraph (BXiii), he is 
requested to do so as soon as possible after the incapac-
ity or death occurs.". 
SEC. 17. DUE PROCESS RIGHTS. 
Section 8(aX9) of the Small Business Act (15 U.S.C. 637(a)(9)) is 
amended— 
(1) in subparagraph (A), by striking "Administrator" and 
inserting "Administration"; 
(2) in subparagraph (BXiii), bv striking "section 7(jX10)(H)" 
and inserting "section 7(iX10)(G) ; and 
(3) in subparagraph (C), by striking "Administrator's" and 
inserting "Administration's". 
V? 
SEC. 18. EMPLOYEE TRAINING AND EVALUATION. 
15 use 636 note. 
Section 410 of the Act is amended— 
(1) in subsection (a), by striking "Training Requirements for 
' Business Specialists" and inserting "Training Requirements for 
Business Opportunity Specialists"; and 
(2) in subsection (c)(2), by striking "subsection (a)" and insert-
ing "subsection (b)". 
SEC. 19. PRESIDENTIAL REPORT ON CONTRACTING GOALS. 
Section 
15(hX2XA) of the Small Business Act (15 U.S.C. 
644(hX2XA)) is amended by inserting "individuals" after "economi-
cally disadvantaged". 
SEC. 20. COMMISSION ON MINORITY BUSINESS DEVELOPMENT. 
15 use 636 note. 
Section 505 of the Act is amended— 
(1) in subsection (bXlXBXii), by striking "program partici-
pants" each place it appears and inserting "Program Partici-
) 
pants"; 
(2) in subsection Cb)(lXC), by striking "subparagraph (B)" and 
inserting "subparagraph (A)"; 
(3) in subsection (bX2)(C), by striking "each such subpara-
graph" and inserting "paragraph (1)"; 
(4) in subsection (c)(3), by striking "such subparagraphs" and 
inserting "subparagraphs (B), (C), and (D)"; 
(5) in subsection (cX6XB), by striking "paragraph 2" and 
inserting "subsection (bX2)"; 
(6) in subsection (dXlXB), by striking "531(b)" and inserting 
"5311(b)"; 
PUBLIC LAW 101-37—JUNE 15, 1989 
103 STAT. 75 
(7) by adding at the end of subsection (d) the following: 
' >
• 
"(C) To facilitate the expeditious initiation of the Commis-
sion's activities, the Administrator of the Small Business 
Administration shall designate an Executive Secretary and pro-
vide such additional interim staff and support services as the 
Administrator deems appropriate until the time of the Commis- 
.^it 
"' -M'J I i 
^ 
sion's organizational meeting and the designation of its Execu-
tive Director, or such longer time as may be agreed upon by the 
Administrator and the Chairperson of the Commission."; 
(8) in subsection (f), by striking "cease to exist on" and 
inserting "cease to exist within 90 days after"; and 
(9) in subsection (g), by striking authorized in the section" 
and inserting "authorized in this section". 
SEC. 21. RELATIONSHIP WITH OTHER PROCUREMENT PROGRAMS. 
Section 15(m)(lXA) of the Small Business Act (15 U.S.C. 
644(m)(l)(A)) is amended by striking "procedure" and inserting 
"procedures". 
SEC. 22. INDIAN TRIBE EXEMPTIONS. 
Section 602 of the Act is amended— 
15 USC 637 note. 
(1) in subsection (a), by striking "Section 8(a)(16) of the Small 
Business Act" and inserting "Section 8(a)(1)(D) of the Small 
Business Act,"; 
, . -. 
(2) in subsection (b)(2)(B), by inserting after "reservation" "or 
former reservation of such tribe as determined by the Secretary 
of the Interior"; 
(3) in subsection 03)(2)(C), by inserting ", or such former 
reservation" before the semicolon; and 
(4) by striking subsection (d) and redesignating subsection (e) 
as subsection (d). 
SEC. 23. SMALL BUSINESS COMPETITIVENESS DEMONSTRATION PRO-
GRAM. 
Section 711(a) of the Act is amended by inserting "in this title" 
i5 USC 644 note. 
after "referred to". 
SEC. 24. ENHANCED SMALL BUSINESS PARTICIPATION GOALS. 
Section 712(bXl) of the Act is amended by striking "section 718" 
15 USC 644 note. 
and inserting "section 717". 
SEC. 25. PROCUREMENT PROCEDURES AND REPORTING. 
(a) PROCUREMENT PROCEDURES.—Section 713(a) of the Act is 
15 USC 644 note. 
amended by striking "$25,000 or more" and inserting "more than 
$25,000". 
(b) REPORTING.—Section 714(c)(2) of the Act is amended by striking 
"section 712(d)" and inserting "section 712(c)". 
SEC. 26. DESIGNATED INDUSTRY GROUPS. 
Section 717(b)(2) of the Act is amended to read as follows: 
15 USC 644 note. 
"(2) Major Group 16 (Heavy Construction Other Than Build-
ing Construction—Contractors) (excluding dredging);". 
SEC. 27. DEFINITION OF PARTICIPATING AGENCY. 
Section 718(c) of the Act is amended— 
15 usC 644 note. 
(1) by redesignating paragraphs (5) through (9) as paragraphs 
(6) through (10), respectively, and by inserting after paragraph 
(4) the following new paragraph: 
103 STAT. 76 
PUBLIC LAW 101-37—JUNE 15, 1989 
"(5) the Department of the Interior,"; and 
(2) in paragraph (8), as redesignated, by inserting "with" 
before "the Public Building Service". 
SEC. 28. 
ALTERNATIVE 
PROGRAM FOR 
CLOTHING 
AND 
TEXTILES. 
15 use 644 note. 
Section 721 of the Act is amended— 
(1) by inserting "(10 U.S.C. 2301 note)" after "Fiscal Year 
*
^ 
1987" in subsection (aX2XB); and 
(2) by adding at the end thereof the following: 
"(c) PROGRAM TERM.—The Program shall commence on January 1, 
1989, and terminate on September 30,1992. 
"(d) REPORT.—The Secretary of Defense shall issue reports to the 
CJongress on the operations of the program established pursuant to 
this section. Such reports shall detail the effects of the program on 
the mobilization base and on small business concerns and small 
business concerns owned and controlled by socially and economi-
cally disadvantaged individuals. Interim reports shall be submitted 
every 6 months during the term of the program to the Committees 
on Armed Services and Small Business of the House of Representa-
tives and the Senate.". 
SEC. 29. EXPANDING SMALL BUSINESS PARTICIPATION IN DREDGING. 
15 use 644 note. 
Section 722 of the Act is amended— 
(1) in subsection (a), by adding before the end period the 
following: "solicited on or after January 1,1989"; 
(2) in subsection (dXlXB), by inserting "foster" before "joint 
ventures"; 
(3) in subsection (dXlXC), by inserting "foster" before "sub-
contracting through"; and 
(4) in subsection (f), by inserting ", regarding compliance with 
this section" at the end of paragraph (1), and by striking 
paragraph (3). 
SEC. 30. REGULATIONS. 
15 use 636 note. 
Section 801(3) of the Act is amended by striking "two hundred and 
ten days" and inserting "270 days". 
SEC. 31. AMENDMENTS TO EFFECTIVE DATES. 
15 use 631 note. 
Section 803 of the Act is amended— 
(1) in subsection (bX3XB), by striking "Sections 302 and" and 
inserting "Section"; 
(2) in subsection (b), by redesignating paragraphs (2) and (3) as 
paragraphs (3) and (4), respectively, and by inserting after 
paragraph (1) the following new paragraph: 
"(2) Section 302 shall take effect on June 1, 1989."; and 
PUBLIC LAW 101-37—JUNE 15, 1989 
103 STAT. 77 
(3) in paragraph (1) of subsection (b), by striking "June 1, 
1989" and inserting "August 15,1989". 
SEC. 32. EFFECTIVE DATES OF THIS ACT. 
15 USC 631 note. 
The amendments made by this Act shall apply as if included in 
the Business Opportunity Development Reform Act of 1988. 
Approved June 15, 1989. 
LEGISLATIVE HISTORY—S. 767 (H.R. 1764): 
HOUSE REPORTS: No. 101-74 accompanying H.R. 1764 (Comm. on Small Business). 
CONGRESSIONAL RECORD, Vol. 135 (1989): 
Apr. 19, considered and passed Senate. 
June 6, considered and passed House.