[105th Congress Public Law 135]
[From the U.S. Government Printing Office]
<DOC>
[DOCID: f:publ135.105]
[[Page 2591]]
SMALL BUSINESS REAUTHORIZATION
ACT OF 1997
[[Page 111 STAT. 2592]]
Public Law 105-135
105th Congress
An Act
To reauthorize the programs of the Small Business Administration, and
for other purposes. <<NOTE: Dec. 2, 1997 - [S. 1139]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in <<NOTE: Small Business Reauthorization Act
of 1997.>> Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
<<NOTE: 15 USC 631 note.>> (a) Short Title.--This Act may be cited
as the ``Small Business Reauthorization Act of 1997''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Effective date.
TITLE I--AUTHORIZATIONS
Sec. 101. Authorizations.
TITLE II--FINANCIAL ASSISTANCE
Subtitle A--Microloan Program
Sec. 201. Microloan program.
Sec. 202. Welfare-to-work microloan initiative.
Subtitle B--Small Business Investment Company Program
Sec. 211. 5-year commitments for SBICs at option of Administrator.
Sec. 212. Underserved areas.
Sec. 213. Private capital.
Sec. 214. Fees.
Sec. 215. Small business investment company program reform.
Sec. 216. Examination fees.
Subtitle C--Certified Development Company Program
Sec. 221. Loans for plant acquisition, construction, conversion, and
expansion.
Sec. 222. Development company debentures.
Sec. 223. Premier certified lenders program.
Subtitle D--Miscellaneous Provisions
Sec. 231. Background check of loan applicants.
Sec. 232. Report on increased lender approval, servicing, foreclosure,
liquidation, and litigation of section 7(a) loans.
Sec. 233. Completion of planning for loan monitoring system.
TITLE III--WOMEN'S BUSINESS ENTERPRISES
Sec. 301. Interagency committee participation.
Sec. 302. Reports.
Sec. 303. Council duties.
Sec. 304. Council membership.
Sec. 305. Authorization of appropriations.
Sec. 306. National Women's Business Council procurement project.
Sec. 307. Studies and other research.
[[Page 111 STAT. 2593]]
Sec. 308. Women's business centers.
TITLE IV--COMPETITIVENESS PROGRAM AND PROCUREMENT OPPORTUNITIES
Subtitle A--Small Business Competitiveness Program
Sec. 401. Program term.
Sec. 402. Monitoring agency performance.
Sec. 403. Reports to Congress.
Sec. 404. Small business participation in dredging.
Sec. 405. Technical amendments.
Subtitle B--Small Business Procurement Opportunities Program
Sec. 411. Contract bundling.
Sec. 412. Definition of contract bundling.
Sec. 413. Assessing proposed contract bundling.
Sec. 414. Reporting of bundled contract opportunities.
Sec. 415. Evaluating subcontract participation in awarding contracts.
Sec. 416. Improved notice of subcontracting opportunities.
Sec. 417. Deadlines for issuance of regulations.
TITLE V--MISCELLANEOUS PROVISIONS
Sec. 501. Small Business Technology Transfer program.
Sec. 502. Small Business Development Centers.
Sec. 503. Pilot preferred surety bond guarantee program extension.
Sec. 504. Extension of cosponsorship authority.
Sec. 505. Asset sales.
Sec. 506. Small business export promotion.
Sec. 507. Defense Loan and Technical Assistance program.
Sec. 508. Very small business concerns.
Sec. 509. Trade assistance program for small business concerns adversely
affected by NAFTA.
TITLE VI--HUBZONE PROGRAM
Sec. 601. Short title.
Sec. 602. Historically underutilized business zones.
Sec. 603. Technical and conforming amendments to the Small Business Act.
Sec. 604. Other technical and conforming amendments.
Sec. 605. Regulations.
Sec. 606. Report.
Sec. 607. Authorization of appropriations.
TITLE VII--SERVICE DISABLED VETERANS
Sec. 701. Purposes.
Sec. 702. Definitions.
Sec. 703. Report by Small Business Administration.
Sec. 704. Information collection.
Sec. 705. State of small business report.
Sec. 706. Loans to veterans.
Sec. 707. Entrepreneurial training, counseling, and management
assistance.
Sec. 708. Grants for eligible veterans' outreach programs.
Sec. 709. Outreach for eligible veterans.
SEC. 2. <<NOTE: 15 USC 631 note.>> DEFINITIONS.
In this Act--
(1) the term ``Administration'' means the Small Business
Administration;
(2) the term ``Administrator'' means the Administrator of
the Small Business Administration;
(3) the term ``Committees'' means the Committees on Small
Business of the House of Representatives and the Senate; and
(4) the term ``small business concern'' has the meaning
given the term in section 3 of the Small Business Act (15 U.S.C.
632).
SEC. 3. EFFECTIVE <<NOTE: 15 USC 631 note.>> DATE.
This Act and the amendments made by this Act shall take effect on
October 1, 1997.
[[Page 111 STAT. 2594]]
TITLE I--AUTHORIZATIONS
SEC. 101. AUTHORIZATIONS.
Section 20 of the Small Business Act (15 U.S.C. 631 note) is amended
by striking subsections (c) through (q) and inserting the following:
``(c) Fiscal Year 1998.--
``(1) Program levels.--The following program levels are
authorized for fiscal year 1998:
``(A) For the programs authorized by this Act, the
Administration is authorized to make--
``(i) $40,000,000 in technical assistance
grants, as provided in section 7(m); and
``(ii) $60,000,000 in direct loans, as
provided in section 7(m).
``(B) For the programs authorized by this Act, the
Administration is authorized to make $16,040,000,000 in
deferred participation loans and other financings. Of
such sum, the Administration is authorized to make--
``(i) $12,000,000,000 in general business
loans as provided in section 7(a);
``(ii) $3,000,000,000 in financings as
provided in section 7(a)(13) of this Act and
section 504 of the Small Business Investment Act
of 1958;
``(iii) $1,000,000,000 in loans as provided in
section 7(a)(21); and
``(iv) $40,000,000 in loans as provided in
section 7(m).
``(C) For the programs authorized by title III of
the Small Business Investment Act of 1958, the
Administration is authorized to make--
``(i) $700,000,000 in purchases of
participating securities; and
``(ii) $600,000,000 in guarantees of
debentures.
``(D) For the programs authorized by part B of title
IV of the Small Business Investment Act of 1958, the
Administration is authorized to enter into guarantees
not to exceed $2,000,000,000, of which not more than
$650,000,000 may be in bonds approved pursuant to
section 411(a)(3) of that Act.
``(E) The Administration is authorized to make
grants or enter into cooperative agreements--
``(i) for the Service Corps of Retired
Executives program authorized by section 8(b)(1),
$4,000,000; and
``(ii) for activities of small business
development centers pursuant to section
21(c)(3)(G), $15,000,000, to remain available
until expended.
``(2) Additional authorizations.--
``(A) There are authorized to be appropriated to the
Administration for fiscal year 1998 such sums as may be
necessary to carry out this Act, including
administrative expenses and necessary loan capital for
disaster loans pursuant to section 7(b), and to carry
out the Small Business Investment Act of 1958, including
salaries and expenses of the Administration.
[[Page 111 STAT. 2595]]
``(B) Notwithstanding subparagraph (A), for fiscal
year 1998--
``(i) no funds are authorized to be provided
to carry out the loan program authorized by
section 7(a)(21) except by transfer from another
Federal department or agency to the
Administration, unless the program level
authorized for general business loans under
paragraph (1)(B)(i) is fully funded; and
``(ii) the Administration may not approve
loans on behalf of the Administration or on behalf
of any other department or agency, by contract or
otherwise, under terms and conditions other than
those specifically authorized under this Act or
the Small Business Investment Act of 1958, except
that it may approve loans under section 7(a)(21)
of this Act in gross amounts of not more than
$1,250,000.
``(d) Fiscal Year 1999.--
``(1) Program levels.--The following program levels are
authorized for fiscal year 1999:
``(A) For the programs authorized by this Act, the
Administration is authorized to make--
``(i) $40,000,000 in technical assistance
grants as provided in section 7(m); and
``(ii) $60,000,000 in direct loans, as
provided in section 7(m).
``(B) For the programs authorized by this Act, the
Administration is authorized to make $17,540,000,000 in
deferred participation loans and other financings. Of
such sum, the Administration is authorized to make--
``(i) $13,000,000,000 in general business
loans as provided in section 7(a);
``(ii) $3,500,000,000 in financings as
provided in section 7(a)(13) of this Act and
section 504 of the Small Business Investment Act
of 1958;
``(iii) $1,000,000,000 in loans as provided in
section 7(a)(21); and
``(iv) $40,000,000 in loans as provided in
section 7(m).
``(C) For the programs authorized by title III of
the Small Business Investment Act of 1958, the
Administration is authorized to make--
``(i) $800,000,000 in purchases of
participating securities; and
``(ii) $700,000,000 in guarantees of
debentures.
``(D) For the programs authorized by part B of title
IV of the Small Business Investment Act of 1958, the
Administration is authorized to enter into guarantees
not to exceed $2,000,000,000, of which not more than
$650,000,000 may be in bonds approved pursuant to
section 411(a)(3) of that Act.
``(E) The Administration is authorized to make
grants or enter cooperative agreements--
``(i) for the Service Corps of Retired
Executives program authorized by section 8(b)(1),
$4,500,000; and
``(ii) for activities of small business
development centers pursuant to section
21(c)(3)(G), not to exceed $15,000,000, to remain
available until expended.
[[Page 111 STAT. 2596]]
``(2) Additional authorizations.--
``(A) There are authorized to be appropriated to the
Administration for fiscal year 1999 such sums as may be
necessary to carry out this Act, including
administrative expenses and necessary loan capital for
disaster loans pursuant to section 7(b), and to carry
out the Small Business Investment Act of 1958, including
salaries and expenses of the Administration.
``(B) Notwithstanding subparagraph (A), for fiscal
year 1999--
``(i) no funds are authorized to be provided
to carry out the loan program authorized by
section 7(a)(21) except by transfer from another
Federal department or agency to the
Administration, unless the program level
authorized for general business loans under
paragraph (1)(B)(i) is fully funded; and
``(ii) the Administration may not approve
loans on behalf of the Administration or on behalf
of any other department or agency, by contract or
otherwise, under terms and conditions other than
those specifically authorized under this Act or
the Small Business Investment Act of 1958, except
that it may approve loans under section 7(a)(21)
of this Act in gross amounts of not more than
$1,250,000.
``(e) Fiscal Year 2000.--
``(1) Program levels.--The following program levels are
authorized for fiscal year 2000:
``(A) For the programs authorized by this Act, the
Administration is authorized to make--
``(i) $40,000,000 in technical assistance
grants as provided in section 7(m); and
``(ii) $60,000,000 in direct loans, as
provided in section 7(m).
``(B) For the programs authorized by this Act, the
Administration is authorized to make $20,040,000,000 in
deferred participation loans and other financings. Of
such sum, the Administration is authorized to make--
``(i) $14,500,000,000 in general business
loans as provided in section 7(a);
``(ii) $4,500,000,000 in financings as
provided in section 7(a)(13) of this Act and
section 504 of the Small Business Investment Act
of 1958;
``(iii) $1,000,000,000 in loans as provided in
section 7(a)(21); and
``(iv) $40,000,000 in loans as provided in
section 7(m).
``(C) For the programs authorized by title III of
the Small Business Investment Act of 1958, the
Administration is authorized to make--
``(i) $900,000,000 in purchases of
participating securities; and
``(ii) $800,000,000 in guarantees of
debentures.
``(D) For the programs authorized by part B of title
IV of the Small Business Investment Act of 1958, the
Administration is authorized to enter into guarantees
not to exceed $2,000,000,000, of which not more than
[[Page 111 STAT. 2597]]
$650,000,000 may be in bonds approved pursuant to
section 411(a)(3) of that Act.
``(E) The Administration is authorized to make
grants or enter cooperative agreements--
``(i) for the Service Corps of Retired
Executives program authorized by section 8(b)(1),
$5,000,000; and
``(ii) for activities of small business
development centers pursuant to section
21(c)(3)(G), not to exceed $15,000,000, to remain
available until expended.
``(2) Additional authorizations.--
``(A) There are authorized to be appropriated to the
Administration for fiscal year 2000 such sums as may be
necessary to carry out this Act, including
administrative expenses and necessary loan capital for
disaster loans pursuant to section 7(b), and to carry
out the Small Business Investment Act of 1958, including
salaries and expenses of the Administration.
``(B) Notwithstanding subparagraph (A), for fiscal
year 2000--
``(i) no funds are authorized to be provided
to carry out the loan program authorized by
section 7(a)(21) except by transfer from another
Federal department or agency to the
Administration, unless the program level
authorized for general business loans under
paragraph (1)(B)(i) is fully funded; and
``(ii) the Administration may not approve
loans on behalf of the Administration or on behalf
of any other department or agency, by contract or
otherwise, under terms and conditions other than
those specifically authorized under this Act or
the Small Business Investment Act of 1958, except
that it may approve loans under section 7(a)(21)
of this Act in gross amounts of not more than
$1,250,000.''.
TITLE II--FINANCIAL ASSISTANCE
Subtitle A--Microloan Program
SEC. 201. MICROLOAN PROGRAM.
(a) Loan Limits.--Section 7(m)(3)(C) of the Small Business Act (15
U.S.C. 636(m)(3)(C)) is amended by striking ``$2,500,000'' and inserting
``$3,500,000''.
(b) Loan Loss Reserve Fund.--Section 7(m)(3)(D) of the Small
Business Act (15 U.S.C. 636(m)(3)(D)) is amended by striking clauses (i)
and (ii), and inserting the following:
``(i) during the initial 5 years of the
intermediary's participation in the program under
this subsection, at a level equal to not more than
15 percent of the outstanding balance of the notes
receivable owed to the intermediary; and
``(ii) in each year of participation
thereafter, at a level equal to not more than the
greater of--
[[Page 111 STAT. 2598]]
``(I) 2 times an amount reflecting
the total losses of the intermediary as
a result of participation in the program
under this subsection, as determined by
the Administrator on a case-by-case
basis; or
``(II) 10 percent of the outstanding
balance of the notes receivable owed to
the intermediary.''.
(c) Authorization of Appropriations.--Section 7(m) of the Small
Business Act (15 U.S.C. 636(m)) is amended--
(1) in the subsection heading, by striking
``Demonstration'';
(2) by striking ``Demonstration'' each place that term
appears;
(3) by striking ``demonstration'' each place that term
appears; and
(4) in paragraph (12), by striking ``during fiscal years
1995 through 1997'' and inserting ``during fiscal years 1998
through 2000''.
(d) Technical Assistance Grants.--Section 7(m) of the Small Business
Act (15 U.S.C. 636(m)) is amended--
(1) in paragraph (4)(E)--
(A) by striking ``Each intermediary'' and inserting
the following:
``(i) In general.--Each intermediary'';
(B) by striking ``15'' and inserting ``25''; and
(C) by adding at the end the following:
``(ii) Technical assistance.--An intermediary
may expend not more than 25 percent of the funds
received under paragraph (1)(B)(ii) to enter into
third party contracts for the provision of
technical assistance.''; and
(2) in paragraph (5)(A)--
(A) by striking ``in each of the 5 years of the
demonstration program established under this
subsection,''; and
(B) by striking ``for terms of up to 5 years'' and
inserting ``annually''.
SEC. 202. WELFARE-TO-WORK MICROLOAN INITIATIVE.
(a) Initiative.--Section 7(m) of the Small Business Act (15 U.S.C.
636(m)) is amended--
(1) in paragraph (1)(A)--
(A) in clause (ii), by striking ``and'' at the end;
(B) in clause (iii), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(iv) to establish a welfare-to-work microloan
initiative, which shall be administered by the
Administration, in order to test the feasibility of
supplementing the technical assistance grants provided
under clauses (ii) and (iii) of subparagraph (B) to
individuals who are receiving assistance under the State
program funded under part A of title IV of the Social
Security Act (42 U.S.C. 601 et seq.), or under any
comparable State funded means tested program of
assistance for low-income individuals, in order to
adequately assist those individuals in--
``(I) establishing small businesses; and
[[Page 111 STAT. 2599]]
``(II) eliminating their dependence on that
assistance.'';
(2) in paragraph (4), by adding at the end the following:
``(F) Supplemental grant.--
``(i) In general.--The Administration may
accept any funds transferred to the Administration
from other departments or agencies of the Federal
Government to make grants in accordance with this
subparagraph and section 202(b) of the Small
Business Reauthorization Act of 1997 to
participating intermediaries and technical
assistance providers under paragraph (5), for use
in accordance with clause (iii) to provide
additional technical assistance and related
services to recipients of assistance under a State
program described in paragraph (1)(A)(iv) at the
time they initially apply for assistance under
this subparagraph.
``(ii) Eligible recipients; grant amounts.--In
making grants under this subparagraph, the
Administration may select, from among
participating intermediaries and technical
assistance providers described in clause (i), not
more than 20 grantees in fiscal year 1998, not
more than 25 grantees in fiscal year 1999, and not
more than 30 grantees in fiscal year 2000, each of
whom may receive a grant under this subparagraph
in an amount not to exceed $200,000 per year.
``(iii) Use of grant amounts.--Grants under
this subparagraph--
``(I) are in addition to other
grants provided under this subsection
and shall not require the contribution
of matching amounts as a condition of
eligibility; and
``(II) may be used by a grantee--
``(aa) to pay or reimburse a
portion of child care and
transportation costs of
recipients of assistance
described in clause (i), to the
extent such costs are not
otherwise paid by State block
grants under the Child Care
Development Block Grant Act of
1990 (42 U.S.C. 9858 et seq.) or
under part A of title IV of the
Social Security Act (42 U.S.C.
601 et seq.); and
``(bb) for marketing,
management, and technical
assistance to recipients of
assistance described in clause
(i).
``(iv) Memorandum of understanding.--Prior to
accepting any transfer of funds under clause (i)
from a department or agency of the Federal
Government, the Administration shall enter into a
Memorandum of Understanding with the department or
agency, which shall--
``(I) specify the terms and
conditions of the grants under this
subparagraph; and
``(II) provide for appropriate
monitoring of expenditures by each
grantee under this subparagraph and each
recipient of assistance described in
clause (i) who receives assistance from
a grantee
[[Page 111 STAT. 2600]]
under this subparagraph, in order to
ensure compliance with this subparagraph
by those grantees and recipients of
assistance.'';
(3) in paragraph (6), by adding at the end the following:
``(E) Establishment of child care or transportation
businesses.--In addition to other eligible small
businesses concerns, borrowers under any program under
this subsection may include individuals who will use the
loan proceeds to establish for-profit or nonprofit child
care establishments or businesses providing for-profit
transportation services.'';
(4) in paragraph (9)--
(A) by striking the paragraph designation and
paragraph heading and inserting the following:
``(9) Grants for management, marketing, technical
assistance, and related services.--''; and
(B) by adding at the end the following:
``(C) Welfare-to-work microloan initiative.--Of
amounts made available to carry out the welfare-to-work
microloan initiative under paragraph (1)(A)(iv) in any
fiscal year, the Administration may use not more than 5
percent to provide technical assistance, either directly
or through contractors, to welfare-to-work microloan
initiative grantees, to ensure that, as grantees, they
have the knowledge, skills, and understanding of
microlending and welfare-to-work transition, and other
related issues, to operate a successful welfare-to-work
microloan initiative.''; and
(5) by adding at the end the following:
``(13) Evaluation of <<NOTE: Reports.>> welfare-to-work
microloan initiative.--On January 31, 1999, and annually
thereafter, the Administration shall submit to the Committees on
Small Business of the House of Representatives and the Senate a
report on any monies distributed pursuant to paragraph
(4)(F).''.
(b) Transfer <<NOTE: 15 USC 636 note.>> of Funds.--
(1) In general.--No funds are authorized to be appropriated
or otherwise provided to carry out the grant program under
section 7(m)(4)(F) of the Small Business Act (15 U.S.C.
636(m)(4)(F)) (as added by this section), except by transfer
from another department or agency of the Federal Government to
the Administration in accordance with this subsection.
(2) Limitation on amounts.--The total amount transferred to
the Administration from other departments and agencies of the
Federal Government to carry out the grant program under section
7(m)(4)(F) of the Small Business Act (15 U.S.C. 636(m)(4)(F))
(as added by this section) shall not exceed--
(A) $3,000,000 for fiscal year 1998;
(B) $4,000,000 for fiscal year 1999; and
(C) $5,000,000 for fiscal year 2000.
Subtitle B--Small Business Investment Company Program
SEC. 211. 5-YEAR COMMITMENTS FOR SBICs AT OPTION OF ADMINISTRATOR.
Section 20(a)(2) of the Small Business Act (15 U.S.C. 631 note) is
amended in the last sentence by striking ``the following fiscal
[[Page 111 STAT. 2601]]
year'' and inserting ``any 1 or more of the 4 subsequent fiscal years''.
SEC. 212. UNDERSERVED AREAS.
Section 301(c)(4)(B) of the Small Business Investment Act of 1958
(15 U.S.C. 681(c)(4)(B)) is amended to read as follows:
``(B) Leverage.--An applicant licensed pursuant to
the exception provided in this paragraph shall not be
eligible to receive leverage as a licensee until the
applicant satisfies the requirements of section 302(a),
unless the applicant--
``(i) files an application for a license not
later than 180 days after the date of enactment of
the Small Business Reauthorization Act of 1997;
``(ii) is located in a State that is not
served by a licensee; and
``(iii) agrees to be limited to 1 tier of
leverage available under section 302(b), until the
applicant meets the requirements of section
302(a).''.
SEC. 213. PRIVATE CAPITAL.
Section 103(9)(B)(iii) of the Small Business Investment Act of 1958
(15 U.S.C. 662(9)(B)(iii)) is amended--
(1) by redesignating subclauses (I) and (II) as subclauses
(II) and (III), respectively; and
(2) by inserting before subclause (II) (as redesignated) the
following:
``(I) funds obtained from the
business revenues (excluding any
governmental appropriation) of any
federally chartered or government-
sponsored corporation established prior
to October 1, 1987;''.
SEC. 214. FEES.
Section 301 of the Small Business Investment Act of 1958 (15 U.S.C.
681) is amended by adding at the end the following:
``(e) Fees.--
``(1) In general.--The Administration may prescribe fees to
be paid by each applicant for a license to operate as a small
business investment company under this Act.
``(2) Use of amounts.--Fees collected under this
subsection--
``(A) shall be deposited in the account for salaries
and expenses of the Administration; and
``(B) are authorized to be appropriated solely to
cover the costs of licensing examinations.''.
SEC. 215. SMALL BUSINESS INVESTMENT COMPANY PROGRAM REFORM.
(a) Bank Investments.--Section 302(b) of the Small Business
Investment Act of 1958 (15 U.S.C. 682(b)) is amended by striking
``1956,'' and all that follows before the period and inserting the
following: ``1956, any national bank, or any member bank of the Federal
Reserve System or nonmember insured bank to the extent permitted under
applicable State law, may invest in any 1 or more small business
investment companies, or in any entity established to invest solely in
small business investment companies, except that in no event shall the
total amount of such investments of any such bank exceed 5 percent of
the capital and surplus of the bank''.
[[Page 111 STAT. 2602]]
(b) Indexing for Leverage.--Section 303 of the Small Business
Investment Act of 1958 (15 U.S.C. 683) is amended--
(1) in subsection (b)--
(A) in paragraph (2), by adding at the end the
following:
``(D)(i) The dollar amounts in subparagraphs (A),
(B), and (C) shall be adjusted annually to reflect
increases in the Consumer Price Index established by the
Bureau of Labor Statistics of the Department of Labor.
``(ii) The initial adjustments made under this
subparagraph after the date of enactment of the Small
Business Reauthorization Act of 1997 shall reflect only
increases from March 31, 1993.''; and
(B) by striking paragraph (4) and inserting the
following:
``(4) Maximum aggregate amount of leverage.--
``(A) In general.--Except as provided in
subparagraph (B), the aggregate amount of outstanding
leverage issued to any company or companies that are
commonly controlled (as determined by the Administrator)
may not exceed $90,000,000, as adjusted annually for
increases in the Consumer Price Index.
``(B) Exceptions.--The Administrator may, on a case-
by-case basis--
``(i) approve an amount of leverage that
exceeds the amount described in subparagraph (A)
for companies under common control; and
``(ii) impose such additional terms and
conditions as the Administrator determines to be
appropriate to minimize the risk of loss to the
Administration in the event of default.
``(C) Applicability of other provisions.--Any
leverage that is issued to a company or companies
commonly controlled in an amount that exceeds
$90,000,000, whether as a result of an increase in the
Consumer Price Index or a decision of the Administrator,
is subject to subsection (d).''; and
(2) by striking subsection (d) and inserting the following:
``(d) Required Certifications.--
``(1) In general.--The Administrator shall require each
licensee, as a condition of approval of an application for
leverage, to certify in writing--
``(A) for licensees with leverage less than or equal
to $90,000,000, that not less than 20 percent of the
licensee's aggregate dollar amount of financings will be
provided to smaller enterprises; and
``(B) for licensees with leverage in excess of
$90,000,000, that, in addition to satisfying the
requirements of subparagraph (A), 100 percent of the
licensee's aggregate dollar amount of financings made in
whole or in part with leverage in excess of $90,000,000
will be provided to smaller enterprises (as defined in
section 103(12)).
``(2) Multiple licensees.--Multiple licensees under common
control (as determined by the Administrator) shall be considered
to be a single licensee for purposes of determining both the
applicability of and compliance with the investment percentage
requirements of this subsection.''.
[[Page 111 STAT. 2603]]
(c) Tax Distributions.--Section 303(g)(8) of the Small Business
Investment Act of 1958 (15 U.S.C. 683(g)(8)) is amended by adding at the
end the following: ``A company may also elect to make a distribution
under this paragraph at the end of any calendar quarter based on a
quarterly estimate of the maximum tax liability. If a company makes 1 or
more quarterly distributions for a calendar year, and the aggregate
amount of those distributions exceeds the maximum amount that the
company could have distributed based on a single annual computation, any
subsequent distribution by the company under this paragraph shall be
reduced by an amount equal to the excess amount distributed.''.
(d) Leverage Fee.--Section 303(i) of the Small Business Investment
Act of 1958 (15 U.S.C. 683(i)) is amended by striking
``, payable upon'' and all that follows before the period and inserting
the following: ``in the following manner: 1 percent upon the date on
which the Administration enters into any commitment for such leverage
with the licensee, and the balance of 2 percent (or 3 percent if no
commitment has been entered into by the Administration) on the date on
which the leverage is drawn by the licensee''.
(e) Periodic Issuance of Guarantees and Trust Certificates.--Section
320 of the Small Business Investment Act of 1958 (15 U.S.C. 687m) is
amended by striking ``three months'' and inserting ``6 months''.
SEC. 216. EXAMINATION FEES.
Section 310(b) of the Small Business Investment Act of 1958 (15
U.S.C. 687b(b)) is amended by inserting after the first sentence the
following: ``Fees collected under this subsection shall be deposited in
the account for salaries and expenses of the Administration, and are
authorized to be appropriated solely to cover the costs of examinations
and other program oversight activities.''.
Subtitle C--Certified Development Company Program
SEC. 221. LOANS FOR PLANT ACQUISITION, CONSTRUCTION, CONVERSION, AND
EXPANSION.
Section 502 of the Small Business Investment Act of 1958 (15 U.S.C.
696) is amended--
(1) by striking paragraph (1) and inserting the following:
``(1) Use of proceeds.--The proceeds of any such loan shall
be used solely by the borrower to assist 1 or more identifiable
small business concerns and for a sound business purpose
approved by the Administration.'';
(2) in paragraph (3), by adding at the end the following:
``(D) Seller financing.--Seller-provided financing
may be used to meet the requirements of subparagraph
(B), if the seller subordinates the interest of the
seller in the property to the debenture guaranteed by
the Administration.
``(E) Collateralization.--The collateral provided by
the small business concern shall generally include a
subordinate lien position on the property being financed
under this title, and is only 1 of the factors to be
evaluated in the credit determination. Additional
collateral shall be required only if the Administration
determines, on a case-
[[Page 111 STAT. 2604]]
by-case basis, that additional security is necessary to
protect the interest of the Government.''; and
(3) by adding at the end the following:
``(5) Limitation on leasing.--In addition to any portion of
the project permitted to be leased under paragraph (4), not to
exceed 20 percent of the project may be leased by the assisted
small business to 1 or more other tenants, if the assisted small
business occupies permanently and uses not less than a total of
60 percent of the space in the project after the execution of
any leases authorized under this section.''.
SEC. 222. DEVELOPMENT COMPANY DEBENTURES.
Section 503 of the Small Business Investment Act of 1958 (15 U.S.C.
697) is amended--
(1) in subsection (b)(7), by striking subparagraph (A) and
inserting the following:
``(A) assesses and collects a fee, which shall be
payable by the borrower, in an amount established
annually by the Administration, which amount shall not
exceed the lesser of--
``(i) 0.9375 percent per year of the
outstanding balance of the loan; and
``(ii) the minimum amount necessary to reduce
the cost (as defined in section 502 of the Federal
Credit Reform Act of 1990) to the Administration
of purchasing and guaranteeing debentures under
this Act to zero; and''; and
(2) in subsection (f), by striking ``1997'' and inserting
``2000''.
SEC. 223. PREMIER CERTIFIED LENDERS PROGRAM.
(a) In General.--Section 508 of the Small Business Investment Act of
1958 (15 U.S.C. 697e) is amended--
(1) in subsection (a), by striking ``not more than 15'';
(2) in subsection (b)--
(A) in paragraph (2)--
(i) in the matter preceding subparagraph (A),
by striking ``if such company'';
(ii) by striking subparagraphs (A) and (B) and
inserting the following:
``(A) if the company is an active certified
development company in good standing and has been an
active participant in the accredited lenders program
during the entire 12-month period preceding the date on
which the company submits an application under paragraph
(1), except that the Administration may waive this
requirement if the company is qualified to participate
in the accredited lenders program;
``(B) if the company has a history of--
``(i) submitting to the Administration
adequately analyzed debenture guarantee
application packages; and
``(ii) of properly closing section 504 loans
and servicing its loan portfolio;'';
(iii) in subparagraph (C)--
(I) by inserting ``if the company''
after ``(C)''; and
(II) by striking the period at the
end and inserting ``; and''; and
[[Page 111 STAT. 2605]]
(iv) by adding at the end the following:
``(D) the Administrator determines, with respect to
the company, that the loss reserve established in
accordance with subsection (c)(2) is sufficient for the
company to meet its obligations to protect the Federal
Government from risk of loss.''; and
(B) by adding at the end the following:
``(3) Applicability of criteria after designation.--The
Administrator may revoke the designation of a certified
development company as a premier certified lender under this
section at any time, if the Administrator determines that the
certified development company does not meet any requirement
described in subparagraphs (A) through (D) of paragraph (2).'';
(3) by striking subsection (c) and inserting the following:
``(c) Loss Reserve.--
``(1) Establishment.--A company designated as a premier
certified lender shall establish a loss reserve for financing
approved pursuant to this section.
``(2) Amount.--The amount of each loss reserve established
under paragraph (1) shall be 10 percent of the amount of the
company's exposure, as determined under subsection (b)(2)(C).
``(3) Assets.--Each loss reserve established under paragraph
(1) shall be comprised of--
``(A) segregated funds on deposit in an account or
accounts with a federally insured depository institution
or institutions selected by the company, subject to a
collateral assignment in favor of, and in a format
acceptable to, the Administration;
``(B) irrevocable letter or letters of credit, with
a collateral assignment in favor of, and a commercially
reasonable format acceptable to, the Administration; or
``(C) any combination of the assets described in
subparagraphs (A) and (B).
``(4) Contributions.--The company shall make contributions
to the loss reserve, either cash or letters of credit as
provided above, in the following amounts and at the following
intervals:
``(A) 50 percent when a debenture is closed.
``(B) 25 percent additional not later than 1 year
after a debenture is closed.
``(C) 25 percent additional not later than 2 years
after a debenture is closed.
``(5) Replenishment.--If a loss has been sustained by the
Administration, any portion of the loss reserve, and other funds
provided by the premier company as necessary, may be used to
reimburse the Administration for the premier company's 10
percent share of the loss as provided in subsection (b)(2)(C).
If the company utilizes the reserve, within 30 days it shall
replace an equivalent amount of funds.
``(6) Disbursements.--The Administration shall allow the
certified development company to withdraw from the loss reserve
amounts attributable to any debenture that has been repaid.'';
(4) in subsection (d)(1), by striking ``to approve loans''
and inserting ``to approve, authorize, close, service,
foreclose, litigate (except that the Administration may monitor
the conduct of
[[Page 111 STAT. 2606]]
any such litigation to which a premier certified lender is a
party), and liquidate loans'';
(5) in subsection (f), by striking ``State or local'' and
inserting ``certified'';
(6) in subsection (g), by striking the subsection heading
and inserting the following:
``(g) Effect of Suspension or Revocation.--'';
(7) by striking subsection (h) and inserting the following:
``(h) Program Goals.--Each certified development company
participating in the program under this section shall establish a goal
of processing a minimum of not less than 50 percent of the loan
applications for assistance under section 504 pursuant to the program
authorized under this section.''; and
(8) in subsection (i), by striking ``other lenders'' and
inserting ``other lenders, specifically comparing default rates
and recovery rates on liquidations''.
(b) Regulations.--The Administrator shall--
(1) not later than 150 days after the date of enactment of
this Act, promulgate regulations to carry out the amendments
made by subsection (a); and
(2) not later than 180 days after the date of enactment of
this Act, issue program guidelines and fully implement the
amendments made by subsection (a).
(c) Program Extension.--Section 217(b) of the Small Business
Reauthorization and Amendments Act of 1994 (15 U.S.C. 697e note) is
amended by striking ``October 1, 1997'' and inserting ``October 1,
2000''.
Subtitle D--Miscellaneous Provisions
SEC. 231. BACKGROUND CHECK OF LOAN APPLICANTS.
Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is
amended--
(1) by striking ``(a) The Administration'' and inserting the
following:
``(a) Loans to Small Business Concerns; Allowable Purposes;
Qualified Business; Restrictions and Limitations.--The Administration'';
and
(2) in paragraph (1)--
(A) by striking ``(1) No financial'' and inserting
the following:
``(1) In general.--
``(A) Credit elsewhere.--No financial''; and
(B) by adding at the end the following:
``(B) Background checks.--Prior to the approval of
any loan made pursuant to this subsection, or section
503 of the Small Business Investment Act of 1958, 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.''.
SEC. 232. REPORT ON INCREASED LENDER APPROVAL, SERVICING, FORECLOSURE,
LIQUIDATION, AND LITIGATION OF SECTION 7(a) LOANS.
(a) In General.--
[[Page 111 STAT. 2607]]
(1) <<NOTE: Reports.>> Submission.--Not later than 6 months
after the date of enactment of this Act, the Administrator shall
submit to the Committees a report on action taken and planned
for future reliance on private sector lender resources to
originate, approve, close, service, liquidate, foreclose, and
litigate loans made under section 7(a) of the Small Business
Act.
(2) Contents.--The report under this subsection shall
address administrative and other steps necessary to achieve the
results described in paragraph (1), including--
(A) streamlining the process for approving lenders
and standardizing requirements;
(B) establishing uniform reporting requirements
using on-line automated capabilities to the maximum
extent feasible;
(C) reducing paperwork through automation,
simplified forms, or incorporation of lender's forms;
(D) providing uniform standards for approval,
closing, servicing, foreclosure, and liquidation;
(E) promulgating new regulations or amending
existing ones;
(F) establishing a timetable for implementing the
plan for reliance on private sector lenders;
(G) implementing organizational changes at SBA; and
(H) estimating the annual savings that would occur
as a result of implementation.
(b) Consultation.--In preparing the report under subsection (a), the
Administrator shall consult with, among others--
(1) borrowers and lenders under section 7(a) of the Small
Business Act;
(2) small businesses that are potential program participants
under section 7(a) of the Small Business Act;
(3) financial institutions that are potential program
lenders under section 7(a) of the Small Business Act; and
(4) representative industry associations.
SEC. 233. COMPLETION <<NOTE: 15 USC 633 note.>> OF PLANNING FOR LOAN
MONITORING SYSTEM.
(a) In General.--The Administrator shall perform and complete the
planning needed to serve as the basis for funding the development and
implementation of the computerized loan monitoring system, including--
(1) fully defining the system requirement using on-line,
automated capabilities to the extent feasible;
(2) identifying all data inputs and outputs necessary for
timely report generation;
(3) benchmark loan monitoring business processes and systems
against comparable industry processes and, if appropriate,
simplify or redefine work processes based on these benchmarks;
(4) determine data quality standards and control systems for
ensuring information accuracy;
(5) identify an acquisition strategy and work increments to
completion;
(6) analyze the benefits and costs of alternatives and use
to demonstrate the advantage of the final project;
(7) ensure that the proposed information system is
consistent with the agency's information architecture; and
[[Page 111 STAT. 2608]]
(8) estimate the cost to system completion, identifying the
essential cost element.
(b) Report.--
(1) In general.--On the date that is 6 months after the date
of enactment of this Act, the Administrator shall submit a
report on the progress of the Administrator in carrying out
subsection (a) to--
(A) the Committees; and
(B) the Comptroller General of the United States.
(2) Evaluation.--Not later than 28 days after receipt of the
report under paragraph (1)(B), the Comptroller General of the
United States shall--
(A) prepare a written evaluation of the report for
compliance with subsection (a); and
(B) submit the evaluation to the Committees.
(3) Limitation.--None of the funds provided for the purchase
of the loan monitoring system may be obligated or expended until
45 days after the date on which the Committees and the
Comptroller General of the United States receive the report
under paragraph (1).
TITLE III--WOMEN'S BUSINESS ENTERPRISES
SEC. 301. INTERAGENCY COMMITTEE PARTICIPATION.
Section 403 of the Women's Business Ownership Act of 1988 (15 U.S.C.
631 note) is amended--
(1) in subsection (a)(2)(A)--
(A) by striking ``and Amendments Act of 1994'' and
inserting ``Act of 1997''; and
(B) by inserting before the final period ``, and who
shall report directly to the head of the agency on the
status of the activities of the Interagency Committee'';
(2) in subsection (a)(2)(B), by inserting before the final
period the following: ``and shall report directly to the
Administrator on the status of the activities on the Interagency
Committee and shall serve as the Interagency Committee Liaison
to the National Women's Business Council established under
section 405''; and
(3) in subsection (b), by striking ``and Amendments Act of
1994'' and inserting ``Act of 1997''.
SEC. 302. REPORTS.
Section 404 of the Women's Business Ownership Act of 1988 (15 U.S.C.
631 note) is amended--
(1) by inserting ``, through the Small Business
Administration,'' after ``transmit'';
(2) by striking paragraph (1) and redesignating paragraphs
(2) through (4) as paragraphs (1) through (3), respectively; and
(3) in paragraph (1), as redesignated, by inserting before
the semicolon the following: ``, including a verbatim report on
the status of progress of the Interagency Committee in meeting
its responsibilities and duties under section 402(a)''.
[[Page 111 STAT. 2609]]
SEC. 303. COUNCIL DUTIES.
Section 406 of the Women's Business Ownership Act of 1988 (15 U.S.C.
631 note) is amended--
(1) in subsection (c), by inserting after ``Administrator''
the following: ``(through the Assistant Administrator of the
Office of Women's Business Ownership)''; and
(2) in subsection (d)--
(A) in paragraph (4), by striking ``and'' at the
end;
(B) in paragraph (5), by striking the period at the
end and inserting a semicolon; and
(C) by adding at the end the following:
``(6) not <<NOTE: Reports.>> later than 90 days after the
last day of each fiscal year, submit to the President and to the
Committee on Small Business of the Senate and the Committee on
Small Business of the House of Representatives, a report
containing--
``(A) a detailed description of the activities of
the council, including a status report on the Council's
progress toward meeting its duties outlined in
subsections (a) and (d) of section 406;
``(B) the findings, conclusions, and recommendations
of the Council; and
``(C) the Council's recommendations for such
legislation and administrative actions as the Council
considers appropriate to promote the development of
small business concerns owned and controlled by women.
``(e) Form of Transmittal.--The information included in each report
under subsection (d) that is described in subparagraphs (A) through (C)
of subsection (d)(6), shall be reported verbatim, together with any
separate additional, concurring, or dissenting views of the
Administrator.''.
SEC. 304. COUNCIL MEMBERSHIP.
Section 407 of the Women's Business Ownership Act of 1988 (15 U.S.C.
631 note) is amended--
(1) in subsection (a), by striking ``and Amendments Act of
1994'' and inserting ``Act of 1997'';
(2) in subsection (b)--
(A) by striking ``and Amendments Act of 1994'' and
inserting ``Act of 1997'';
(B) by inserting after ``the Administrator shall''
the following: ``, after receiving the recommendations
of the Chairman and the Ranking Member of the Committees
on Small Business of the House of Representatives and
the Senate,'';
(C) by striking ``9'' and inserting ``14'';
(D) in paragraph (1), by striking ``2'' and
inserting ``4'';
(E) in paragraph (2), by striking ``2'' and
inserting ``4''; and
(F) in paragraph (3)--
(i) by striking ``5'' and inserting ``6'';
(ii) by striking ``national''; and
(iii) by inserting ``, including
representatives of women's business center sites''
before the period at the end;
(3) in subsection (c), by inserting ``(including both urban
and rural areas)'' after ``geographic'';
[[Page 111 STAT. 2610]]
(4) by striking subsection (d) and inserting the following:
``(d) Terms.--Each member of the Council shall be appointed for a
term of 3 years, except that, of the initial members appointed to the
Council--
``(1) 2 members appointed under subsection (b)(1) shall be
appointed for a term of 1 year;
``(2) 2 members appointed under subsection (b)(2) shall be
appointed for a term of 1 year; and
``(3) each member appointed under subsection (b)(3) shall be
appointed for a term of 2 years.''; and
(5) by striking subsection (f) and inserting the following:
``(f) Vacancies.--
``(1) In general.--A vacancy on the Council shall be filled
not later than 30 days after the date on which the vacancy
occurs, in the manner in which the original appointment was
made, and shall be subject to any conditions that applied to the
original appointment.
``(2) Unexpired term.--An individual chosen to fill a
vacancy shall be appointed for the unexpired term of the member
replaced.''.
SEC. 305. AUTHORIZATION OF APPROPRIATIONS.
Section 409 of the Women's Business Ownership Act of 1988 (15 U.S.C.
631 note) is amended to read as follows:
``SEC. 411. AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--There is authorized to be appropriated to carry
out this title $600,000, for each of fiscal years 1998 through 2000, of
which $200,000 shall be available in each fiscal year to carry out
sections 409 and 410.
``(b) Budget Review.--No amount made available under this section
for any fiscal year may be obligated or expended by the Council before
the date on which the Council reviews and approves the operating budget
of the Council to carry out the responsibilities of the Council for that
fiscal year.''.
SEC. 306. NATIONAL WOMEN'S BUSINESS COUNCIL PROCUREMENT PROJECT.
The Women's Business Ownership Act of 1988 (15 U.S.C. 631 note) is
amended by inserting after section 408 the following:
``SEC. 409. NATIONAL WOMEN'S BUSINESS COUNCIL PROCUREMENT PROJECT.
``(a) Federal Procurement Study.--
``(1) In general.--During the first fiscal year for which
amounts are made available to carry out this section, the
Council shall conduct a study on the award of Federal prime
contracts and subcontracts to women-owned businesses, which
study shall include--
``(A) an analysis of data collected by Federal
agencies on contract awards to women-owned businesses;
``(B) a determination of the degree to which
individual Federal agencies are in compliance with the 5
percent women-owned business procurement goal
established by section 15(g)(1) of the Small Business
Act (15 U.S.C. 644(g)(1));
[[Page 111 STAT. 2611]]
``(C) a determination of the types and amounts of
Federal contracts characteristically awarded to women-
owned businesses; and
``(D) other relevant information relating to
participation of women-owned businesses in Federal
procurement.
``(2) Submission of results.--Not later than 12 months after
initiating the study under paragraph (1), the Council shall
submit to the Committees on Small Business of the House of
Representatives and the Senate, and to the President, the
results of the study conducted under paragraph (1).
``(b) Best Practices Report.--Not later than 18 months after
initiating the study under subsection (a)(1), the Council shall submit
to the Committees on Small Business of the House of Representatives and
the Senate, and to the President, a report, which shall include--
``(1) an analysis of the most successful practices in
attracting women-owned businesses as prime contractors and
subcontractors by--
``(A) Federal agencies (as supported by findings
from the study required under subsection (a)(1)) in
Federal procurement awards; and
``(B) the private sector; and
``(2) recommendations for policy changes in Federal
procurement practices, including an increase in the Federal
procurement goal for women-owned businesses, in order to
maximize the number of women-owned businesses performing Federal
contracts.
``(c) Contract Authority.--In conducting any study or other research
under this section, the Council may contract with 1 or more public or
private entities.''.
SEC. 307. STUDIES AND OTHER RESEARCH.
The Women's Business Ownership Act of 1988 (15 U.S.C. 631 note) is
amended by inserting after section 409 (as added by section 306 of this
title) the following:
``SEC. 410. STUDIES AND OTHER RESEARCH.
``(a) In General.--To the extent that it does not delay submission
of the report under section 409(b), the Council may also conduct such
studies and other research relating to the award of Federal prime
contracts and subcontracts to women-owned businesses, or to issues
relating to access to credit and investment capital by women
entrepreneurs, as the Council determines to be appropriate.
``(b) Contract Authority.--In conducting any study or other research
under this section, the Council may contract with 1 or more public or
private entities.''.
SEC. 308. WOMEN'S BUSINESS CENTERS.
(a) In General.--Section 29 of the Small Business Act (15 U.S.C.
656) is amended to read as follows:
``SEC. 29. WOMEN'S BUSINESS CENTER PROGRAM.
``(a) Definitions.--In this section--
``(1) the term `Assistant Administrator' means the Assistant
Administrator of the Office of Women's Business Ownership
established under subsection (g);
[[Page 111 STAT. 2612]]
``(2) the term `small business concern owned and controlled
by women', either startup or existing, includes any small
business concern--
``(A) that is not less than 51 percent owned by 1 or
more women; and
``(B) the management and daily business operations
of which are controlled by 1 or more women; and
``(3) the term `women's business center site' means the
location of--
``(A) a women's business center; or
``(B) 1 or more women's business centers,
established in conjunction with another women's business
center in another location within a State or region--
``(i) that reach a distinct population that
would otherwise not be served;
``(ii) whose services are targeted to women;
and
``(iii) whose scope, function, and activities
are similar to those of the primary women's
business center or centers in conjunction with
which it was established.
``(b) Authority.--The Administration may provide financial
assistance to private organizations to conduct 5-year projects for the
benefit of small business concerns owned and controlled by women. The
projects shall provide--
``(1) financial assistance, including training and
counseling in how to apply for and secure business credit and
investment capital, preparing and presenting financial
statements, and managing cash flow and other financial
operations of a business concern;
``(2) management assistance, including training and
counseling in how to plan, organize, staff, direct, and control
each major activity and function of a small business concern;
and
``(3) marketing assistance, including training and
counseling in identifying and segmenting domestic and
international market opportunities, preparing and executing
marketing plans, developing pricing strategies, locating
contract opportunities, negotiating contracts, and utilizing
varying public relations and advertising techniques.
``(c) Conditions of Participation.--
``(1) Non-federal contributions.--As a condition of
receiving financial assistance authorized by this section, the
recipient organization shall agree to obtain, after its
application has been approved and notice of award has been
issued, cash contributions from non-Federal sources as follows:
``(A) in the first and second years, 1 non-Federal
dollar for each 2 Federal dollars;
``(B) in the third and fourth years, 1 non-Federal
dollar for each Federal dollar; and
``(C) in the fifth year, 2 non-Federal dollars for
each Federal dollar.
``(2) Form of non-federal contributions.--Not more than one-
half of the non-Federal sector matching assistance may be in the
form of in-kind contributions that are budget line items only,
including office equipment and office space.
``(3) Form of federal contributions.--The financial
assistance authorized pursuant to this section may be made by
grant, contract, or cooperative agreement and may contain such
provision, as necessary, to provide for payments in lump
[[Page 111 STAT. 2613]]
sum or installments, and in advance or by way of reimbursement.
The Administration may disburse up to 25 percent of each year's
Federal share awarded to a recipient organization after notice
of the award has been issued and before the non-Federal sector
matching funds are obtained.
``(4) Failure to obtain non-federal funding.--If any
recipient of assistance fails to obtain the required non-Federal
contribution during any project, it shall not be eligible
thereafter for advance disbursements pursuant to paragraph (3)
during the remainder of that project, or for any other project
for which it is or may be funded by the Administration, and
prior to approving assistance to such organization for any other
projects, the Administration shall specifically determine
whether the Administration believes that the recipient will be
able to obtain the requisite non-Federal funding and enter a
written finding setting forth the reasons for making such
determination.
``(d) Contract Authority.--A women's business center may enter into
a contract with a Federal department or agency to provide specific
assistance to women and other underserved small business concerns.
Performance of such contract should not hinder the women's business
centers in carrying out the terms of the grant received by the women's
business centers from the Administration.
``(e) Submission of 5-Year Plan.--Each applicant organization
initially shall submit a 5-year plan to the Administration on proposed
fundraising and training activities, and a recipient organization may
receive financial assistance under this program for a maximum of 5 years
per women's business center site.
``(f) Criteria.--The Administration shall evaluate and rank
applicants in accordance with predetermined selection criteria that
shall be stated in terms of relative importance. Such criteria and their
relative importance shall be made publicly available and stated in each
solicitation for applications made by the Administration. The criteria
shall include--
``(1) the experience of the applicant in conducting programs
or ongoing efforts designed to impart or upgrade the business
skills of women business owners or potential owners;
``(2) the present ability of the applicant to commence a
project within a minimum amount of time;
``(3) the ability of the applicant to provide training and
services to a representative number of women who are both
socially and economically disadvantaged; and
``(4) the location for the women's business center site
proposed by the applicant.
``(g) Office of Women's Business Ownership.--
``(1) Establishment.--There is established within the
Administration an Office of Women's Business Ownership, which
shall be responsible for the administration of the
Administration's programs for the development of women's
business enterprises (as defined in section 408 of the Women's
Business Ownership Act of 1988 (15 U.S.C. 631 note)). The Office
of Women's Business Ownership shall be administered by an
Assistant Administrator, who shall be appointed by the
Administrator.
``(2) Assistant administrator of the office of women's
business ownership.--
[[Page 111 STAT. 2614]]
``(A) Qualification.--The position of Assistant
Administrator shall be a Senior Executive Service
position under section 3132(a)(2) of title 5, United
States Code. The Assistant Administrator shall serve as
a noncareer appointee (as defined in section 3132(a)(7)
of that title).
``(B) Responsibilities and duties.--
``(i) Responsibilities.--The responsibilities
of the Assistant Administrator shall be to
administer the programs and services of the Office
of Women's Business Ownership established to
assist women entrepreneurs in the areas of--
``(I) starting and operating a small
business;
``(II) development of management and
technical skills;
``(III) seeking Federal procurement
opportunities; and
``(IV) increasing the opportunity
for access to capital.
``(ii) Duties.--The Assistant Administrator
shall--
``(I) administer and manage the
Women's Business Center program;
``(II) recommend the annual
administrative and program budgets for
the Office of Women's Business Ownership
(including the budget for the Women's
Business Center program);
``(III) establish appropriate
funding levels therefore;
``(IV) review the annual budgets
submitted by each applicant for the
Women's Business Center program;
``(V) select applicants to
participate in the program under this
section;
``(VI) implement this section;
``(VII) maintain a clearinghouse to
provide for the dissemination and
exchange of information between women's
business centers;
``(VIII) serve as the vice
chairperson of the Interagency Committee
on Women's Business Enterprise;
``(IX) serve as liaison for the
National Women's Business Council; and
``(X) advise the Administrator on
appointments to the Women's Business
Council.
``(C) Consultation requirements.--In carrying out
the responsibilities and duties described in this
paragraph, the Assistant Administrator shall confer with
and seek the advice of the Administration officials in
areas served by the women's business centers.
``(h) Program Examination.--
``(1) In general.--Not later than 180 days after the date of
enactment of the Small Business Reauthorization Act of 1997, the
Administrator shall develop and implement an annual programmatic
and financial examination of each women's business center
established pursuant to this section.
``(2) Extension of contracts.--In extending or renewing a
contract with a women's business center, the Administrator
[[Page 111 STAT. 2615]]
shall consider the results of the examination conducted under
paragraph (1).
``(i) Contract Authority.--The authority of the Administrator to
enter into contracts shall be in effect for each fiscal year only to the
extent and in the amounts as are provided in advance in appropriations
Acts. After the Administrator has entered into a contract, either as a
grant or a cooperative agreement, with any applicant under this section,
it shall not suspend, terminate, or fail to renew or extend any such
contract unless the Administrator provides the applicant with written
notification setting forth the reasons therefore and affords the
applicant an opportunity for a hearing, appeal, or other administrative
proceeding under chapter 5 of title 5, United States Code.
``(j) Report.--The Administrator shall prepare and submit an annual
report to the Committees on Small Business of the House of
Representatives and the Senate on the effectiveness of all projects
conducted under the authority of this section. Such report shall provide
information concerning--
``(1) the number of individuals receiving assistance;
``(2) the number of startup business concerns formed;
``(3) the gross receipts of assisted concerns;
``(4) increases or decreases in profits of assisted
concerns; and
``(5) the employment increases or decreases of assisted
concerns.
``(k) Authorization of Appropriations.--
``(1) In general.--There is authorized to be appropriated
$8,000,000 for each fiscal year to carry out the projects
authorized under this section, of which, for fiscal year 1998,
not more than 5 percent may be used for administrative expenses
related to the program under this section.
``(2) Use of amounts.--Amounts made available under this
subsection for fiscal year 1999, and each fiscal year
thereafter, may only be used for grant awards and may not be
used for costs incurred by the Administration in connection with
the management and administration of the program under this
section.
``(3) Expedited acquisition.--Notwithstanding any other
provision of law, the Administrator, acting through the
Assistant Administrator, may use such expedited acquisition
methods as the Administrator determines to be appropriate to
carry out this section, except that the Administrator shall
ensure that all small business sources are provided a reasonable
opportunity to submit proposals.''.
(b) <<NOTE: 15 USC 656 note.>> Applicability.--
(1) In general.--Subject to paragraph (2), any organization
conducting a 3-year project under section 29 of the Small
Business Act (15 U.S.C. 656) (as in effect on the day before the
effective date of this Act) on September 30, 1997, may request
an extension of the term of that project to a total term of 5
years. If such an extension is made, the organization shall
receive financial assistance in accordance with section 29(c) of
the Small Business Act (as amended by this section) subject to
procedures established by the Administrator, in coordination
with the Assistant Administrator of the Office of Women's
Business Ownership established under section 29 of the Small
Business Act (15 U.S.C. 656) (as amended by this section).
[[Page 111 STAT. 2616]]
(2) Terms of assistance for certain organizations.--Any
organization operating in the third year of a 3-year project
under section 29 of the Small Business Act (15 U.S.C. 656) (as
in effect on the day before the effective date of this Act) on
September 30, 1997, may request an extension of the term of that
project to a total term of 5 years. If such an extension is
made, during the fourth and fifth years of the project, the
organization shall receive financial assistance in accordance
with section 29(c)(1)(C) of the Small Business Act (as amended
by this section) subject to procedures established by the
Administrator, in coordination with the Assistant Administrator
of the Office of Women's Business Ownership established under
section 29 of the Small Business Act (15 U.S.C. 656) (as amended
by this section).
TITLE IV--COMPETITIVENESS PROGRAM AND PROCUREMENT OPPORTUNITIES
Subtitle A--Small Business Competitiveness Program
SEC. 401. PROGRAM TERM.
Section 711(c) of the Small Business Competitiveness Demonstration
Program Act of 1988 (15 U.S.C. 644 note) is amended by striking ``, and
terminate on September 30, 1997''.
SEC. 402. MONITORING AGENCY PERFORMANCE.
Section 712(d)(1) of the Small Business Competitiveness
Demonstration Program Act of 1988 (15 U.S.C. 644 note) is amended to
read as follows:
``(1) Participating agencies shall monitor the attainment of
their small business participation goals on an annual basis. An
annual review by each participating agency shall be completed
not later than January 31 of each year, based on the data for
the preceding fiscal year, from October 1 through September
30.''.
SEC. 403. REPORTS TO CONGRESS.
Section 716(a) of the Small Business Competitiveness Demonstration
Program Act of 1988 (15 U.S.C. 644 note) is amended--
(1) by striking ``1996'' and inserting ``2000'';
(2) by striking ``for Federal Procurement Policy'' and
inserting ``of the Small Business Administration''; and
(3) by striking ``Government Operations'' and inserting
``Government Reform and Oversight''.
SEC. 404. SMALL BUSINESS PARTICIPATION IN DREDGING.
Section 722(a) of the Small Business Competitiveness Demonstration
Program Act of 1988 (15 U.S.C. 644 note) is amended by striking ``and
terminating on September 30, 1997''.
SEC. 405. TECHNICAL AMENDMENTS.
Section 717 of the Small Business Competitiveness Demonstration
Program Act of 1988 (15 U.S.C. 644 note) is amended--
[[Page 111 STAT. 2617]]
(1) by inserting ``or North American Industrial
Classification Code'' after ``standard industrial classification
code'' each place it appears; and
(2) by inserting ``or North American Industrial
Classification Codes'' after ``standard industrial
classification codes'' each place it appears.
Subtitle B--Small Business Procurement Opportunities Program
SEC. 411. CONTRACT BUNDLING.
Section 2 of the Small Business Act (15 U.S.C. 631) is amended by
adding at the end the following:
``(j) Contract Bundling.--In complying with the statement of
congressional policy expressed in subsection (a), relating to fostering
the participation of small business concerns in the contracting
opportunities of the Government, each Federal agency, to the maximum
extent practicable, shall--
``(1) comply with congressional intent to foster the
participation of small business concerns as prime contractors,
subcontractors, and suppliers;
``(2) structure its contracting requirements to facilitate
competition by and among small business concerns, taking all
reasonable steps to eliminate obstacles to their participation;
and
``(3) avoid unnecessary and unjustified bundling of contract
requirements that precludes small business participation in
procurements as prime contractors.''.
SEC. 412. DEFINITION OF CONTRACT BUNDLING.
Section 3 of the Small Business Act (15 U.S.C. 632) is amended by
adding at the end the following:
``(o) Definitions of Bundling of Contract Requirements and Related
Terms.--In this Act:
``(1) Bundled contract.--The term `bundled contract' means a
contract that is entered into to meet requirements that are
consolidated in a bundling of contract requirements.
``(2) Bundling of contract requirements.--The term `bundling
of contract requirements' means consolidating 2 or more
procurement requirements for goods or services previously
provided or performed under separate smaller contracts into a
solicitation of offers for a single contract that is likely to
be unsuitable for award to a small-business concern due to--
``(A) the diversity, size, or specialized nature of
the elements of the performance specified;
``(B) the aggregate dollar value of the anticipated
award;
``(C) the geographical dispersion of the contract
performance sites; or
``(D) any combination of the factors described in
subparagraphs (A), (B), and (C).
``(3) Separate smaller contract.--The term `separate smaller
contract', with respect to a bundling of contract requirements,
means a contract that has been performed by 1 or more small
business concerns or was suitable for award to 1 or more small
business concerns.''.
[[Page 111 STAT. 2618]]
SEC. 413. ASSESSING PROPOSED CONTRACT BUNDLING.
(a) In General.--Section 15 of the Small Business Act (15 U.S.C.
644) is amended by inserting after subsection (d) the following:
``(e) Procurement Strategies; Contract Bundling.--
``(1) In general.--To the maximum extent practicable,
procurement strategies used by the various agencies having
contracting authority shall facilitate the maximum participation
of small business concerns as prime contractors, subcontractors,
and suppliers.
``(2) Market research.--
``(A) In general.--Before proceeding with an
acquisition strategy that could lead to a contract
containing consolidated procurement requirements, the
head of an agency shall conduct market research to
determine whether consolidation of the requirements is
necessary and justified.
``(B) Factors.--For purposes of subparagraph (A),
consolidation of the requirements may be determined as
being necessary and justified if, as compared to the
benefits that would be derived from contracting to meet
those requirements if not consolidated, the Federal
Government would derive from the consolidation
measurably substantial benefits, including any
combination of benefits that, in combination, are
measurably substantial. Benefits described in the
preceding sentence may include the following:
``(i) Cost savings.
``(ii) Quality improvements.
``(iii) Reduction in acquisition cycle times.
``(iv) Better terms and conditions.
``(v) Any other benefits.
``(C) Reduction of costs not determinative.--The
reduction of administrative or personnel costs alone
shall not be a justification for bundling of contract
requirements unless the cost savings are expected to be
substantial in relation to the dollar value of the
procurement requirements to be consolidated.
``(3) Strategy specifications.--If the head of a contracting
agency determines that a proposed procurement strategy for a
procurement involves a substantial bundling of contract
requirements, the proposed procurement strategy shall--
``(A) identify specifically the benefits anticipated
to be derived from the bundling of contract
requirements;
``(B) set forth an assessment of the specific
impediments to participation by small business concerns
as prime contractors that result from the bundling of
contract requirements and specify actions designed to
maximize small business participation as subcontractors
(including suppliers) at various tiers under the
contract or contracts that are awarded to meet the
requirements; and
``(C) include a specific determination that the
anticipated benefits of the proposed bundled contract
justify its use.
``(4) Contract teaming.--In the case of a solicitation of
offers for a bundled contract that is issued by the head of an
agency, a small-business concern may submit an offer that
provides for use of a particular team of subcontractors for
[[Page 111 STAT. 2619]]
the performance of the contract. The head of the agency shall
evaluate the offer in the same manner as other offers, with due
consideration to the capabilities of all of the proposed
subcontractors. If a small business concern teams under this
paragraph, it shall not affect its status as a small business
concern for any other purpose.''.
(b) Administration Review.--Section 15(a) of the Small Business Act
(15 U.S.C. 644(a)) is amended in the third sentence--
(1) by inserting ``or the solicitation involves an
unnecessary or unjustified bundling of contract requirements, as
determined by the Administration,'' after ``discrete
construction projects,'';
(2) by striking ``or (4)'' and inserting ``(4)''; and
(3) by inserting before the period at the end of the
sentence the following: ``, or (5) why the agency has determined
that the bundled contract (as defined in section 3(o)) is
necessary and justified''.
(c) Responsibilities of Agency Small Business Advocates.--Section
15(k) of the Small Business Act (15 U.S.C. 644(k)) is amended--
(1) by redesignating paragraphs (5) through (9) as
paragraphs (6) through (10), respectively; and
(2) by inserting after paragraph (4) the following:
``(5) identify proposed solicitations that involve
significant bundling of contract requirements, and work with the
agency acquisition officials and the Administration to revise
the procurement strategies for such proposed solicitations where
appropriate to increase the probability of participation by
small businesses as prime contractors, or to facilitate small
business participation as subcontractors and suppliers, if a
solicitation for a bundled contract is to be issued;''.
SEC. 414. <<NOTE: 41 USC 405 note.>> REPORTING OF BUNDLED CONTRACT
OPPORTUNITIES.
(a) Data Collection Required.--The Federal Procurement Data System
described in section 6(d)(4)(A) of the Office of Federal Procurement
Policy Act (41 U.S.C. 405(d)(4)(A)) shall be modified to collect data
regarding bundling of contract requirements when the contracting officer
anticipates that the resulting contract price, including all options, is
expected to exceed $5,000,000. The data shall reflect a determination
made by the contracting officer regarding whether a particular
solicitation constitutes a contract bundling.
(b) Definitions.--In this section, the term ``bundling of contract
requirements'' has the meaning given that term in section 3(o) of the
Small Business Act (15 U.S.C. 632(o)) (as added by section 412 of this
subtitle).
SEC. 415. EVALUATING SUBCONTRACT PARTICIPATION IN AWARDING CONTRACTS.
Section 8(d)(4) of the Small Business Act (15 U.S.C. 637(d)(4)) is
amended by adding at the end the following:
``(G) The following factors shall be designated by the
Federal agency as significant factors for purposes of evaluating
offers for a bundled contract where the head of the agency
determines that the contract offers a significant opportunity
for subcontracting:
``(i) A factor that is based on the rate provided
under the subcontracting plan for small business
participation in the performance of the contract.
[[Page 111 STAT. 2620]]
``(ii) For the evaluation of past performance of an
offeror, a factor that is based on the extent to which
the offeror attained applicable goals for small business
participation in the performance of contracts.''.
SEC. 416. IMPROVED NOTICE OF SUBCONTRACTING OPPORTUNITIES.
(a) Use of the Commerce Business Daily Authorized.--Section 8 of the
Small Business Act (15 U.S.C. 637) is amended by adding at the end the
following:
``(k) Notices of Subcontracting Opportunities.--
``(1) In general.--Notices of subcontracting opportunities
may be submitted for publication in the Commerce Business Daily
by--
``(A) a business concern awarded a contract by an
executive agency subject to subsection (e)(1)(C); and
``(B) a business concern that is a subcontractor or
supplier (at any tier) to such contractor having a
subcontracting opportunity in excess of $10,000.
``(2) Content of notice.--The notice of a subcontracting
opportunity shall include--
``(A) a description of the business opportunity that
is comparable to the description specified in paragraphs
(1), (2), (3), and (4) of subsection (f); and
``(B) the due date for receipt of offers.''.
(b) <<NOTE: 15 USC 637 note.>> Regulations Required.--The Federal
Acquisition Regulation shall be amended to provide uniform
implementation of the amendments made by this section.
(c) Conforming Amendment.--Section 8(e)(1)(C) of the Small Business
Act (15 U.S.C. 637(e)(1)(C)) is amended by striking ``$25,000'' each
place that term appears and inserting ``$100,000''.
SEC. 417. DEADLINES <<NOTE: Publication. 15 USC 631 note.>> FOR
ISSUANCE OF REGULATIONS.
(a) Proposed Regulations.--Proposed amendments to the Federal
Acquisition Regulation or proposed Small Business Administration
regulations under this subtitle and the amendments made by this subtitle
shall be published not later than 120 days after the date of enactment
of this Act for the purpose of obtaining public comment pursuant to
section 22 of the Office of Federal Procurement Policy Act (41 U.S.C.
418b), or chapter 5 of title 5, United States Code, as appropriate. The
public shall be afforded not less than 60 days to submit comments.
(b) Final Regulations.--Final regulations shall be published not
later than 270 days after the date of enactment of this Act. The
effective date for such final <<NOTE: Effective date.>> regulations
shall be not less than 30 days after the date of publication.
TITLE V--MISCELLANEOUS PROVISIONS
SEC. 501. SMALL BUSINESS TECHNOLOGY TRANSFER PROGRAM.
(a) Required Expenditures.--Section 9(n) of the Small Business Act
(15 U.S.C. 638(n)) is amended by striking paragraph (1) and inserting
the following:
``(1) Required expenditure amounts.--With respect to fiscal
years 1998, 1999, 2000, and 2001, each Federal agency that has
an extramural budget for research, or research and development,
in excess of $1,000,000,000 for that fiscal year, is authorized
to expend with small business concerns not less
[[Page 111 STAT. 2621]]
than 0.15 percent of that extramural budget specifically in
connection with STTR programs that meet the requirements of this
section and any policy directives and regulations issued under
this section.''.
(b) Reports and Outreach.--
(1) In general.--Section 9 of the Small Business Act (15
U.S.C. 638) is amended--
(A) in subsection (o)--
(i) by redesignating paragraphs (8) through
(11) as paragraphs (10) through (13),
respectively; and
(ii) by inserting after paragraph (7) the
following:
``(8) include, as part of its annual performance plan as
required by subsections (a) and (b) of section 1115 of title 31,
United States Code, a section on its STTR program, and shall
submit such section to the Committee on Small Business of the
Senate, and the Committee on Science and the Committee on Small
Business of the House of Representatives;
``(9) collect such data from awardees as is necessary to
assess STTR program outputs and outcomes;'';
(B) in subsection (e)(4)(A), by striking ``(ii)'';
and
(C) by adding at the end the following:
``(s) Outreach.--
``(1) Definition of eligible state.--In this subsection, the
term `eligible State' means a State--
``(A) if the total value of contracts awarded to the
State during fiscal year 1995 under this section was
less than $5,000,000; and
``(B) that certifies to the Administration described
in paragraph (2) that the State will, upon receipt of
assistance under this subsection, provide matching funds
from non-Federal sources in an amount that is not less
than 50 percent of the amount provided under this
subsection.
``(2) Program authority.--Of amounts made available to carry
out this section for fiscal year 1998, 1999, 2000, or 2001 the
Administrator may expend with eligible States not more than
$2,000,000 in each such fiscal year in order to increase the
participation of small business concerns located in those States
in the programs under this section.
``(3) Amount of assistance.--The amount of assistance
provided to an eligible State under this subsection in any
fiscal year--
``(A) shall be equal to twice the total amount of
matching funds from non-Federal sources provided by the
State; and
``(B) shall not exceed $100,000.
``(4) Use of assistance.--Assistance provided to an eligible
State under this subsection shall be used by the State, in
consultation with State and local departments and agencies, for
programs and activities to increase the participation of small
business concerns located in the State in the programs under
this section, including--
``(A) the establishment of quantifiable performance
goals, including goals relating to--
``(i) the number of program awards under this
section made to small business concerns in the
State; and
[[Page 111 STAT. 2622]]
``(ii) the total amount of Federal research
and development contracts awarded to small
business concerns in the State;
``(B) the provision of competition outreach support
to small business concerns in the State that are
involved in research and development; and
``(C) the development and dissemination of
educational and promotional information relating to the
programs under this section to small business concerns
in the State.
``(t) Inclusion in Strategic Plans.--Program information relating to
the SBIR and STTR programs shall be included by each Federal agency in
any update or revision required of the Federal agency under section
306(b) of title 5, United States Code.''.
(2) Repeal.--Effective <<NOTE: Effective date.>> October 1,
2001, section 9(s) of the Small Business Act (as added by
paragraph (1) of this subsection) is repealed.
SEC. 502. SMALL BUSINESS DEVELOPMENT CENTERS.
(a) In General.--Section 21(a) of the Small Business Act (15 U.S.C.
648(a)) is amended--
(1) in paragraph (1)--
(A) by inserting ``any women's business center
operating pursuant to section 29,'' after ``credit or
finance corporation,'';
(B) by inserting ``or a women's business center
operating pursuant to section 29'' after ``other than an
institution of higher education''; and
(C) by inserting ``and women's business centers
operating pursuant to section 29'' after ``utilize
institutions of higher education'';
(2) in paragraph (3)--
(A) by striking ``, but with'' and all that follows
through ``parties.'' and inserting the following: ``for
the delivery of programs and services to the small
business community. Such programs and services shall be
jointly developed, negotiated, and agreed upon, with
full participation of both parties, pursuant to an
executed cooperative agreement between the Small
Business Development Center applicant and the
Administration.''; and
(B) by adding at the end the following:
``(C) On an annual basis, the Small Business Development
Center shall review and coordinate public and private
partnerships and cosponsorships with the Administration for the
purpose of more efficiently leveraging available resources on a
National and a State basis.'';
(3) in paragraph (4)(C)--
(A) by striking clause (i) and inserting the
following:
``(i) In general.--
``(I) Grant amount.--Subject to subclauses
(II) and (III), the amount of a grant received by
a State under this section shall be equal to the
greater of $500,000, or the sum of--
``(aa) the State's pro rata share of
the national program, based upon the
population of the State as compared to
the total population of the United
States; and
[[Page 111 STAT. 2623]]
``(bb) $300,000 in fiscal year 1998,
$400,000 in fiscal year 1999, and
$500,000 in each fiscal year thereafter.
``(II) Pro rata reductions.--If the amount
made available to carry out this section for any
fiscal year is insufficient to carry out subclause
(I)(bb), the Administration shall make pro rata
reductions in the amounts otherwise payable to
States under subclause (I)(bb).
``(III) Matching requirement.--The amount of a
grant received by a State under this section shall
not exceed the amount of matching funds from
sources other than the Federal Government provided
by the State under subparagraph (A).''; and
(B) in clause (iii), by striking ``(iii)'' and all
that follows through ``1997.'' and inserting the
following:
``(iii) National program.--There are authorized to
be appropriated to carry out the national program under
this section--
``(I) $85,000,000 for fiscal year 1998;
``(II) $90,000,000 for fiscal year 1999; and
``(III) $95,000,000 for fiscal year 2000 and
each fiscal year thereafter.''; and
(4) in paragraph (6)--
(A) in subparagraph (A), by striking ``and'' at the
end;
(B) in subparagraph (B), by striking the comma at
the end and inserting ``; and''; and
(C) inserting after subparagraph (B) the following:
``(C) with outreach, development, and enhancement of
minority-owned small business startups or expansions,
HUBZone small business concerns, veteran-owned small
business startups or expansions, and women-owned small
business startups or expansions, in communities impacted
by base closings or military or corporate downsizing, or
in rural or underserved communities;''.
(b) SBDC Services.--Section 21(c) of the Small Business Act (15
U.S.C. 648(c)) is amended--
(1) in paragraph (3)--
(A) in subparagraph (A), by striking ``businesses;''
and inserting ``businesses, including--
``(i) working with individuals to increase awareness
of basic credit practices and credit requirements;
``(ii) working with individuals to develop business
plans, financial packages, credit applications, and
contract proposals;
``(iii) working with the Administration to develop
and provide informational tools for use in working with
individuals on pre-business startup planning, existing
business expansion, and export planning; and
``(iv) working with individuals referred by the
local offices of the Administration and Administration
participating lenders;'';
(B) in each of subparagraphs (B), (C), (D), (E),
(F), (G), (M), (N), (O), (Q), and (R) by moving each
margin 2 ems to the left; and
(C) in subparagraph (C), by inserting ``and the
Administration'' after ``Center'';
[[Page 111 STAT. 2624]]
(2) in paragraph (5)--
(A) by moving the margin 2 ems to the right;
(B) by striking ``paragraph (a)(1)'' and inserting
``subsection (a)(1)'';
(C) by striking ``which ever'' and inserting
``whichever''; and
(D) by striking ``last,,'' and inserting ``last,'';
(3) by redesignating paragraphs (4) through (7) as
paragraphs (5) through (8), respectively; and
(4) in paragraph (3), in the undesignated material following
subparagraph (R), by striking ``A small'' and inserting the
following:
``(4) A small''.
(c) Competitive Awards.--Section 21(l) of the Small Business Act (15
U.S.C. 648(l)) is amended by adding at the end the following: ``If any
contract or cooperative agreement under this section with an entity that
is covered by this section is not renewed or extended, any award of a
successor contract or cooperative agreement under this section to
another entity shall be made on a competitive basis.''.
(d) Prohibition on Certain Fees.--Section 21 of the Small Business
Act (15 U.S.C. 648) is amended by adding at the end the following:
``(m) Prohibition on Certain Fees.--A small business development
center shall not impose or otherwise collect a fee or other compensation
in connection with the provision of counseling services under this
section.''.
SEC. 503. PILOT PREFERRED SURETY BOND GUARANTEE PROGRAM EXTENSION.
Section 207 of the Small Business Administration Reauthorization and
Amendment Act of 1988 (15 U.S.C. 694b note) is amended by striking
``September 30, 1997'' and inserting ``September 30, 2000''.
SEC. 504. EXTENSION OF COSPONSORSHIP AUTHORITY.
Section 401(a)(2) of the Small Business Administration
Reauthorization and Amendments Act of 1994 (15 U.S.C. 637 note) is
amended by striking ``September 30, 1997'' and inserting ``September 30,
2000''.
SEC. 505. ASSET <<NOTE: 15 USC 634 note.>> SALES.
In connection with the Administration's implementation of a program
to sell to the private sector loans and other assets held by the
Administration, the Administration shall provide to the Committees a
copy of the draft and final plans describing the sale and the
anticipated benefits resulting from such sale.
SEC. 506. SMALL BUSINESS EXPORT PROMOTION.
(a) In General.--Section 21(c)(3) of the Small Business Act (15
U.S.C. 648(c)(3)) is amended--
(1) in subparagraph (Q), by striking ``and'' at the end;
(2) in subparagraph (R), by striking the period at the end
and inserting ``; and''; and
(3) by inserting after subparagraph (R) the following:
``(S) providing small business owners with access to a wide
variety of export-related information by establishing on-line
computer linkages between small business development centers
[[Page 111 STAT. 2625]]
and an international trade data information network with ties to
the Export Assistance Center program.''.
(b) Authorization of Appropriations.--There is authorized to be
appropriated to carry out section 21(c)(3)(S) of the Small Business Act
(15 U.S.C. 648(c)(3)(S)), as added by this section, $1,500,000 for each
fiscal years 1998 and 1999.
SEC. 507. DEFENSE <<NOTE: 15 USC 636 note.>> LOAN AND TECHNICAL
ASSISTANCE PROGRAM.
(a) DELTA Program Authorized.--
(1) In general.--The Administrator may administer the
Defense Loan and Technical Assistance program in accordance with
the authority and requirements of this section.
(2) Expiration of authority.--The authority of the
Administrator to carry out the DELTA program under paragraph (1)
shall terminate when the funds referred to in subsection (g)(1)
have been expended.
(3) DELTA program defined.--In this section, the terms
``Defense Loan and Technical Assistance program'' and ``DELTA
program'' mean the Defense Loan and Technical Assistance program
that has been established by a memorandum of understanding
entered into by the Administrator and the Secretary of Defense
on June 26, 1995.
(b) Assistance.--
(1) Authority.--Under the DELTA program, the Administrator
may assist small business concerns that are economically
dependent on defense expenditures to acquire dual-use
capabilities.
(2) Forms of assistance.--Forms of assistance authorized
under paragraph (1) are as follows:
(A) Loan guarantees.--Loan guarantees under the
terms and conditions specified under this section and
other applicable law.
(B) Nonfinancial assistance.--Other forms of
assistance that are not financial.
(c) Administration of Program.--In the administration of the DELTA
program under this section, the Administrator shall--
(1) process applications for DELTA program loan guarantees;
(2) guarantee repayment of the resulting loans in accordance
with this section; and
(3) take such other actions as are necessary to administer
the program.
(d) Selection and Eligibility Requirements for DELTA Loan
Guarantees.--
(1) In general.--The selection criteria and eligibility
requirements set forth in this subsection shall be applied in
the selection of small business concerns to receive loan
guarantees under the DELTA program.
(2) Selection criteria.--The criteria used for the selection
of a small business concern to receive a loan guarantee under
this section are as follows:
(A) The selection criteria established under the
memorandum of understanding referred to in subsection
(a)(3).
(B) The extent to which the loans to be guaranteed
would support the retention of defense workers whose
employment would otherwise be permanently or temporarily
terminated as a result of reductions in expenditures
[[Page 111 STAT. 2626]]
by the United States for defense, the termination or
cancellation of a defense contract, the failure to
proceed with an approved major weapon system, the merger
or consolidation of the operations of a defense
contractor, or the closure or realignment of a military
installation.
(C) The extent to which the loans to be guaranteed
would stimulate job creation and new economic activities
in communities most adversely affected by reductions in
expenditures by the United States for defense, the
termination or cancellation of a defense contract, the
failure to proceed with an approved major weapon system,
the merger or consolidation of the operations of a
defense contractor, or the closure or realignment of a
military installation.
(D) The extent to which the loans to be guaranteed
would be used to acquire (or permit the use of other
funds to acquire) capital equipment to modernize or
expand the facilities of the borrower to enable the
borrower to remain in the national technology and
industrial base available to the Department of Defense.
(3) Eligibility requirements.--To be eligible for a loan
guarantee under the DELTA program, a borrower must demonstrate
to the satisfaction of the Administrator that, during any 1 of
the 5 preceding operating years of the borrower, not less than
25 percent of the value of the borrower's sales were derived
from--
(A) contracts with the Department of Defense or the
defense-related activities of the Department of Energy;
or
(B) subcontracts in support of defense-related prime
contracts.
(e) Maximum Amount of Loan Principal.--With respect to each
borrower, the maximum amount of loan principal for which the
Administrator may provide a guarantee under this section during a fiscal
year may not exceed $1,250,000.
(f) Loan Guaranty Rate.--The maximum allowable guarantee percentage
for loans guaranteed under this section may not exceed 80 percent.
(g) Funding.--
(1) In general.--The funds that have been made available for
loan guarantees under the DELTA program and have been
transferred from the Department of Defense to the Small Business
Administration before the date of the enactment of this Act
shall be used for carrying out the DELTA program under this
section.
(2) Continued availability of existing funds.--The funds
made available under the second proviso under the heading
``Research, Development, Test and Evaluation, Defense-Wide'' in
Public Law 103-335 (108 Stat. 2613) shall be available until
expended--
(A) to cover the costs (as defined in section 502(5)
of the Federal Credit Reform Act of 1990 (2 U.S.C.
661a(5))) of loan guarantees issued under this section;
and
(B) to cover the reasonable costs of the
administration of the loan guarantees.
[[Page 111 STAT. 2627]]
SEC. 508. VERY SMALL BUSINESS CONCERNS.
Section 304(i) of the Small Business Administration Reauthorization
and Amendments Act of 1994 (15 U.S.C. 644 note) is amended by striking
``September 30, 1998'' and inserting ``September 30, 2000''.
SEC. 509. TRADE <<NOTE: 15 USC 636 note.>> ASSISTANCE PROGRAM FOR SMALL
BUSINESS CONCERNS ADVERSELY AFFECTED BY NAFTA.
The Administrator shall coordinate Federal assistance in order to
provide counseling to small business concerns adversely affected by the
North American Free Trade Agreement.
TITLE VI--HUBZONE <<NOTE: HUBZone Act of 1997.>> PROGRAM
SEC. 601. SHORT <<NOTE: 15 USC 631 note.>> TITLE.
This title may be cited as the ``HUBZone Act of 1997''.
SEC. 602. HISTORICALLY UNDERUTILIZED BUSINESS ZONES.
(a) Definitions.--Section 3 of the Small Business Act (15 U.S.C.
632) (as amended by section 412 of this Act) is amended by adding at the
end the following:
``(p) Definitions Relating to HUBZones.--In this Act:
``(1) Historically underutilized business zone.--The term
`historically underutilized business zone' means any area
located within 1 or more--
``(A) qualified census tracts;
``(B) qualified nonmetropolitan counties; or
``(C) lands within the external boundaries of an
Indian reservation.
``(2) HUBZone.--The term `HUBZone' means a historically
underutilized business zone.
``(3) HUBZone small business concern.--The term `HUBZone
small business concern' means a small business concern--
``(A) that is owned and controlled by 1 or more
persons, each of whom is a United States citizen; and
``(B) the principal office of which is located in a
HUBZone; or
``(4) Qualified areas.--
``(A) Qualified census tract.--The term `qualified
census tract' has the meaning given that term in section
42(d)(5)(C)(ii)(I) of the Internal Revenue Code of 1986.
``(B) Qualified nonmetropolitan county.--The term
`qualified nonmetropolitan county' means any county--
``(i) that, based on the most recent data
available from the Bureau of the Census of the
Department of Commerce--
``(I) is not located in a
metropolitan statistical area (as
defined in section 143(k)(2)(B) of the
Internal Revenue Code of 1986); and
``(II) in which the median household
income is less than 80 percent of the
nonmetropolitan State median household
income; or
``(ii) that, based on the most recent data
available from the Secretary of Labor, has an
unemployment rate that is not less than 140
percent of the statewide
[[Page 111 STAT. 2628]]
average unemployment rate for the State in which
the county is located.
``(5) Qualified hubzone small business concern.--
``(A) In general.--A HUBZone small business concern
is `qualified', if--
``(i) the small business concern has certified
in writing to the Administrator (or the
Administrator otherwise determines, based on
information submitted to the Administrator by the
small business concern, or based on certification
procedures, which shall be established by the
Administration by regulation) that--
``(I) it is a HUBZone small business
concern;
``(II) not less than 35 percent of
the employees of the small business
concern reside in a HUBZone, and the
small business concern will attempt to
maintain this employment percentage
during the performance of any contract
awarded to the small business concern on
the basis of a preference provided under
section 31(b); and
``(III) with respect to any
subcontract entered into by the small
business concern pursuant to a contract
awarded to the small business concern
under section 31, the small business
concern will ensure that--
``(aa) in the case of a
contract for services (except
construction), not less than 50
percent of the cost of contract
performance incurred for
personnel will be expended for
its employees or for employees
of other HUBZone small business
concerns; and
``(bb) in the case of a
contract for procurement of
supplies (other than procurement
from a regular dealer in such
supplies), not less than 50
percent of the cost of
manufacturing the supplies (not
including the cost of materials)
will be incurred in connection
with the performance of the
contract in a HUBZone by 1 or
more HUBZone small business
concerns; and
``(ii) no certification made or information
provided by the small business concern under
clause (i) has been, in accordance with the
procedures established under section 31(c)(1)--
``(I) successfully challenged by an
interested party; or
``(II) otherwise determined by the
Administrator to be materially false.
``(B) Change in percentages.--The Administrator may
utilize a percentage other than the percentage specified
in item (aa) or (bb) of subparagraph (A)(i)(III), if the
Administrator determines that such action is necessary
to reflect conventional industry practices among small
business concerns that are below the numerical size
standard for businesses in that industry category.
``(C) Construction <<NOTE: Regulations.>> and other
contracts.--The Administrator shall promulgate final
regulations imposing
[[Page 111 STAT. 2629]]
requirements that are similar to those specified in
subclauses (IV) and (V) of subparagraph (A)(i) on
contracts for general and specialty construction, and on
contracts for any other industry category that would not
otherwise be subject to those requirements. The
percentage applicable to any such requirement shall be
determined in accordance with subparagraph (B).
``(D) List of qualified small business concerns.--
The Administrator shall establish and maintain a list of
qualified HUBZone small business concerns, which list
shall, to the extent practicable--
``(i) include the name, address, and type of
business with respect to each such small business
concern;
``(ii) be updated by the Administrator not
less than annually; and
``(iii) be provided upon request to any
Federal agency or other entity.''.
(b) Federal Contracting.--
(1) In general.--The Small Business Act (15 U.S.C. 631 et
seq.) is amended--
(A) by redesignating <<NOTE: 15 USC 631 note.>>
section 31 as section 32; and
(B) by inserting after section 30 the following:
``SEC. 31. HUBZONE <<NOTE: 15 USC 657a.>> PROGRAM.
``(a) In General.--There is established within the Administration a
program to be carried out by the Administrator to provide for Federal
contracting assistance to qualified HUBZone small business concerns in
accordance with this section.
``(b) Eligible Contracts.--
``(1) Definitions.--In this subsection--
``(A) the term `contracting officer' has the meaning
given that term in section 27(f)(5) of the Office of
Federal Procurement Policy Act (41 U.S.C. 423(f)(5));
and
``(B) the term `full and open competition' has the
meaning given that term in section 4 of the Office of
Federal Procurement Policy Act (41 U.S.C. 403).
``(2) Authority of contracting officer.--Notwithstanding any
other provision of law--
``(A) a contracting officer may award sole source
contracts under this section to any qualified HUBZone
small business concern, if--
``(i) the qualified HUBZone small business
concern is determined to be a responsible
contractor with respect to performance of such
contract opportunity, and the contracting officer
does not have a reasonable expectation that 2 or
more qualified HUBZone small business concerns
will submit offers for the contracting
opportunity;
``(ii) the anticipated award price of the
contract (including options) will not exceed--
``(I) $5,000,000, in the case of a
contract opportunity assigned a standard
industrial classification code for
manufacturing; or
``(II) $3,000,000, in the case of
all other contract opportunities; and
[[Page 111 STAT. 2630]]
``(iii) in the estimation of the contracting
officer, the contract award can be made at a fair
and reasonable price;
``(B) a contract opportunity shall be awarded
pursuant to this section on the basis of competition
restricted to qualified HUBZone small business concerns
if the contracting officer has a reasonable expectation
that not less than 2 qualified HUBZone small business
concerns will submit offers and that the award can be
made at a fair market price; and
``(C) not later than 5 days from the date the
Administration is notified of a procurement officer's
decision not to award a contract opportunity under this
section to a qualified HUBZone small business concern,
the Administrator may notify the contracting officer of
the intent to appeal the contracting officer's decision,
and within 15 days of such date the Administrator may
file a written request for reconsideration of the
contracting officer's decision with the Secretary of the
department or agency head.
``(3) Price evaluation preference in full and open
competitions.--In any case in which a contract is to be awarded
on the basis of full and open competition, the price offered by
a qualified HUBZone small business concern shall be deemed as
being lower than the price offered by another offeror (other
than another small business concern), if the price offered by
the qualified HUBZone small business concern is not more than 10
percent higher than the price offered by the otherwise lowest,
responsive, and responsible offeror.
``(4) Relationship to other contracting preferences.--A
procurement may not be made from a source on the basis of a
preference provided in paragraph (2) or (3), if the procurement
would otherwise be made from a different source under section
4124 or 4125 of title 18, United States Code, or the Javits-
Wagner-O'Day Act (41 U.S.C. 46 et seq.).
``(c) Enforcement; Penalties.--
``(1) Verification <<NOTE: Regulations.>> of eligibility.--
In carrying out this section, the Administrator shall establish
procedures relating to--
``(A) the filing, investigation, and disposition by
the Administration of any challenge to the eligibility
of a small business concern to receive assistance under
this section (including a challenge, filed by an
interested party, relating to the veracity of a
certification made or information provided to the
Administration by a small business concern under section
3(p)(5)); and
``(B) verification by the Administrator of the
accuracy of any certification made or information
provided to the Administration by a small business
concern under section 3(p)(5).
``(2) Examinations.--The procedures established under
paragraph (1) may provide for program examinations (including
random program examinations) by the Administrator of any small
business concern making a certification or providing information
to the Administrator under section 3(p)(5).
``(3) Provision of data.--Upon the request of the
Administrator, the Secretary of Labor, the Secretary of Housing
and Urban Development, and the Secretary of the Interior (or the
[[Page 111 STAT. 2631]]
Assistant Secretary for Indian Affairs), shall promptly provide
to the Administrator such information as the Administrator
determines to be necessary to carry out this subsection.
``(4) Penalties.--In addition to the penalties described in
section 16(d), any small business concern that is determined by
the Administrator to have misrepresented the status of that
concern as a `HUBZone small business concern' for purposes of
this section, shall be subject to--
``(A) section 1001 of title 18, United States Code;
and
``(B) sections 3729 through 3733 of title 31, United
States Code.''.
(2) Initial <<NOTE: 15 USC 657a note.>> limited
applicability.--During the period beginning on the date of
enactment of this Act and ending on September 30, 2000, section
31 of the Small Business Act (as added by paragraph (1) of this
subsection) shall apply only to procurements by--
(A) the Department of Defense;
(B) the Department of Agriculture;
(C) the Department of Health and Human Services;
(D) the Department of Transportation;
(E) the Department of Energy;
(F) the Department of Housing and Urban Development;
(G) the Environmental Protection Agency;
(H) the National Aeronautics and Space
Administration;
(I) the General Services Administration; and
(J) the Department of Veterans Affairs.
SEC. 603. TECHNICAL AND CONFORMING AMENDMENTS TO THE SMALL BUSINESS ACT.
(a) Performance of Contracts.--Section 8(d) of the Small Business
Act (15 U.S.C. 637(d)) is amended--
(1) in paragraph (1)--
(A) in the first sentence, by striking ``,, small
business concerns owned and controlled by socially and
economically disadvantaged individuals'' and inserting
``, qualified HUBZone small business concerns, small
business concerns owned and controlled by socially and
economically disadvantaged individuals''; and
(B) in the second sentence, by inserting ``qualified
HUBZone small business concerns,'' after ``small
business concerns,'';
(2) in paragraph (3)--
(A) by inserting ``qualified HUBZone small business
concerns,'' after ``small business concerns,'' each
place that term appears; and
(B) by adding at the end the following:
``(F) In this contract, the term `qualified HUBZone small
business concern' has the meaning given that term in section
3(p) of the Small Business Act.'';
(3) in paragraph (4)(E), by striking ``small business
concerns and'' and inserting ``small business concerns,
qualified HUBZone small business concerns, and'';
(4) in paragraph (6), by inserting ``qualified HUBZone small
business concerns,'' after ``small business concerns,'' each
place that term appears; and
[[Page 111 STAT. 2632]]
(5) in paragraph (10), by inserting ``qualified HUBZone
small business concerns,'' after ``small business concerns,''.
(b) Awards of Contracts.--Section 15 of the Small Business Act (15
U.S.C. 644) is amended--
(1) in subsection (g)(1)--
(A) by inserting ``qualified HUBZone small business
concerns,'' after ``small business concerns,'' each
place that term appears;
(B) in the second sentence, by striking ``20
percent'' and inserting ``23 percent''; and
(C) by inserting after the second sentence the
following: ``The Governmentwide goal for participation
by qualified HUBZone small business concerns shall be
established at not less than 1 percent of the total
value of all prime contract awards for fiscal year 1999,
not less than 1.5 percent of the total value of all
prime contract awards for fiscal year 2000, not less
than 2 percent of the total value of all prime contract
awards for fiscal year 2001, not less than 2.5 percent
of the total value of all prime contract awards for
fiscal year 2002, and not less than 3 percent of the
total value of all prime contract awards for fiscal year
2003 and each fiscal year thereafter.'';
(2) in subsection (g)(2)--
(A) in the first sentence, by striking ``,, by small
business concerns owned and controlled by socially and
economically disadvantaged individuals'' and inserting
``, by qualified HUBZone small business concerns, by
small business concerns owned and controlled by socially
and economically disadvantaged individuals'';
(B) in the second sentence, by inserting ``qualified
HUBZone small business concerns,'' after ``small
business concerns,''; and
(C) in the fourth sentence, by striking ``by small
business concerns owned and controlled by socially and
economically disadvantaged individuals and participation
by small business concerns owned and controlled by
women'' and inserting ``by qualified HUBZone small
business concerns, by small business concerns owned and
controlled by socially and economically disadvantaged
individuals, and by small business concerns owned and
controlled by women''; and
(3) in subsection (h), by inserting ``qualified HUBZone
small business concerns,'' after ``small business concerns,''
each place that term appears.
(c) Offenses and Penalties.--Section 16 of the Small Business Act
(15 U.S.C. 645) is amended--
(1) in subsection (d)(1)--
(A) by inserting ``, a `qualified HUBZone small
business concern','' after `` `small business
concern',''; and
(B) in subparagraph (A), by striking ``section 9 or
15'' and inserting ``section 9, 15, or 31''; and
(2) in subsection (e), by inserting ``, a `HUBZone small
business concern','' after `` `small business concern',''.
SEC. 604. OTHER TECHNICAL AND CONFORMING AMENDMENTS.
(a) Title 10, United States Code.--Section 2323 of title 10, United
States Code, is amended--
[[Page 111 STAT. 2633]]
(1) in subsection (a)(1)(A), by inserting before the
semicolon the following: ``, and qualified HUBZone small
business concerns (as defined in section 3(p) of the Small
Business Act)''; and
(2) in subsection (f)(1), by inserting ``or as a qualified
HUBZone small business concern (as defined in section 3(p) of
the Small Business Act)'' after ``(as described in subsection
(a))''.
(b) Federal Home Loan Bank Act.--Section 21A(b)(13) of the Federal
Home Loan Bank Act (12 U.S.C. 1441a(b)(13)) is amended--
(1) by striking ``concerns and small'' and inserting
``concerns, small''; and
(2) by inserting ``, and qualified HUBZone small business
concerns (as defined in section 3(p) of the Small Business
Act)'' after ``disadvantaged individuals''.
(c) Small Business Economic Policy Act of 1980.--Section 303(e) of
the Small Business Economic Policy Act of 1980 (15 U.S.C. 631b(e)) is
amended--
(1) in paragraph (1), by striking ``and'' at the end;
(2) in paragraph (2), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(3) qualified HUBZone small business concern (as defined
in section 3(p) of the Small Business Act).''.
(d) Small Business Investment Act of 1958.--Section 411(c)(3)(B) of
the Small Business Investment Act of 1958 (15 U.S.C. 694b(c)(3)(B)) is
amended by inserting before the semicolon the following: ``, or to a
qualified HUBZone small business concern (as defined in section 3(p) of
the Small Business Act)''.
(e) Title 31, United States Code.--
(1) Contracts for collection services.--Section 3718(b) of
title 31, United States Code, is amended--
(A) in paragraph (1)(B), by inserting ``and law
firms that are qualified HUBZone small business concerns
(as defined in section 3(p) of the Small Business Act)''
after ``disadvantaged individuals''; and
(B) in paragraph (3)--
(i) in the first sentence, by inserting before
the period ``and law firms that are qualified
HUBZone small business concerns'';
(ii) in subparagraph (A), by striking ``and''
at the end;
(iii) in subparagraph (B), by striking the
period at the end and inserting ``; and''; and
(iv) by adding at the end the following:
``(C) the term `qualified HUBZone small business
concern' has the meaning given that term in section 3(p)
of the Small Business Act.''.
(2) Payments to local governments.--Section 6701(f) of title
31, United States Code, is amended--
(A) in paragraph (1)--
(i) in subparagraph (A), by striking ``and''
at the end;
(ii) in subparagraph (B), by striking the
period at the end and inserting ``; and''; and
(iii) by adding at the end the following:
[[Page 111 STAT. 2634]]
``(C) qualified HUBZone small business concerns.'';
and
(B) in paragraph (3)--
(i) in subparagraph (A), by striking ``and''
at the end;
(ii) in subparagraph (B), by striking the
period at the end and inserting ``; and''; and
(iii) by adding at the end the following:
``(C) the term `qualified HUBZone small business
concern' has the meaning given that term in section 3(p)
of the Small Business Act (15 U.S.C. 632(o)).''.
(3) Regulations.--Section 7505(c) of title 31, United States
Code, is amended by striking ``small business concerns and'' and
inserting ``small business concerns, qualified HUBZone small
business concerns, and''.
(f) Office of Federal Procurement Policy Act.--
(1) Enumeration of included functions.--Section 6(d) of the
Office of Federal Procurement Policy Act (41 U.S.C. 405(d)) is
amended--
(A) in paragraph (11), by inserting ``qualified
HUBZone small business concerns (as defined in section
3(p) of the Small Business Act),'' after ``small
businesses,''; and
(B) in paragraph (12), by inserting ``qualified
HUBZone small business concerns (as defined in section
3(p) of the Small Business Act (15 U.S.C. 632(o)),''
after ``small businesses,''.
(2) Procurement data.--Section 502 of the Women's Business
Ownership Act of 1988 (41 U.S.C. 417a) is amended--
(A) in subsection (a)--
(i) in the first sentence, by inserting ``the
number of qualified HUBZone small business
concerns,'' after ``Procurement Policy''; and
(ii) by inserting a comma after ``women''; and
(B) in subsection (b), by inserting after ``section
204 of this Act'' the following: ``, and the term
`qualified HUBZone small business concern' has the
meaning given that term in section 3(p) of the Small
Business Act (15 U.S.C. 632(o)).''.
(g) Energy Policy Act of 1992.--Section 3021 of the Energy Policy
Act of 1992 (42 U.S.C. 13556) is amended--
(1) in subsection (a)--
(A) in paragraph (2), by striking ``or'';
(B) in paragraph (3), by striking the period and
inserting ``; or''; and
(C) by adding at the end the following:
``(4) qualified HUBZone small business concerns.''; and
(2) in subsection (b), by adding at the end the following:
``(3) The term `qualified HUBZone small business concern'
has the meaning given that term in section 3(p) of the Small
Business Act (15 U.S.C. 632(o)).''.
(h) Title 49, United States Code.--
(1) Project grant application approval conditioned on
assurances about airport operation.--Section 47107(e) of title
49, United States Code, is amended--
(A) in paragraph (1), by inserting before the period
``or qualified HUBZone small business concerns (as
defined in section 3(p) of the Small Business Act)'';
[[Page 111 STAT. 2635]]
(B) in paragraph (4)(B), by inserting before the
period ``or as a qualified HUBZone small business
concern (as defined in section 3(p) of the Small
Business Act)''; and
(C) in paragraph (6), by inserting ``or a qualified
HUBZone small business concern (as defined in section
3(p) of the Small Business Act)'' after ``disadvantaged
individual''.
(2) Minority and disadvantaged business participation.--
Section 47113 of title 49, United States Code, is amended--
(A) in subsection (a)--
(i) in paragraph (1), by striking the period
at the end and inserting a semicolon;
(ii) in paragraph (2), by striking the period
at the end and inserting ``; and''; and
(iii) by adding at the end the following:
``(3) the term `qualified HUBZone small business concern'
has the meaning given that term in section 3(p) of the Small
Business Act (15 U.S.C. 632(o)).''; and
(B) in subsection (b), by inserting before the
period ``or qualified HUBZone small business concerns''.
SEC. 605. <<NOTE: Federal Register, publication. 15 USC 632 note.>>
REGULATIONS.
(a) In General.--Not later than 180 days after the date of enactment
of this Act, the Administrator shall publish in the Federal Register
such final regulations as may be necessary to carry out this title and
the amendments made by this title.
(b) Federal Acquisition Regulation.--Not later than 180 days after
the date on which final regulations are published under subsection (a),
the Federal Acquisition Regulatory Council shall amend the Federal
Acquisition Regulation in order to ensure consistency between the
Federal Acquisition Regulation, this title and the amendments made by
this title, and the final regulations published under subsection (a).
SEC. 606. <<NOTE: 15 USC 657a note.>> REPORT.
Not later than March 1, 2002, the Administrator shall submit to the
Committees a report on the implementation of the HUBZone program
established under section 31 of the Small Business Act (as added by
section 602(b) of this title) and the degree to which the HUBZone
program has resulted in increased employment opportunities and an
increased level of investment in HUBZones (as defined in section 3(p) of
the Small Business Act (15 U.S.C. 632(p)), as added by section 602(a) of
this title).
SEC. 607. AUTHORIZATION OF APPROPRIATIONS.
Section 20 of the Small Business Act (15 U.S.C. 631 note) (as
amended by section 101 of this Act) is amended--
(1) in subsection (c), by adding at the end the following:
``(3) HUBZone program.--There are authorized to be
appropriated to the Administration to carry out the program
under section 31, $5,000,000 for fiscal year 1998.'';
(2) in subsection (d), by adding at the end the following:
``(3) HUBZone program.--There are authorized to be
appropriated to the Administration to carry out the program
under section 31, $5,000,000 for fiscal year 1999.''; and
(3) in subsection (e), by adding at the end the following:
[[Page 111 STAT. 2636]]
``(3) HUBZone program.--There are authorized to be
appropriated to the Administration to carry out the program
under section 31, $5,000,000 for fiscal year 2000.''.
TITLE VII--SERVICE DISABLED VETERANS
SEC. 701. <<NOTE: 15 USC 631 note.>> PURPOSES.
The purposes of this title are--
(1) to foster enhanced entrepreneurship among eligible
veterans by providing increased opportunities;
(2) to vigorously promote the legitimate interests of small
business concerns owned and controlled by eligible veterans; and
(3) to ensure that those concerns receive fair consideration
in purchases made by the Federal Government.
SEC. 702. <<NOTE: 15 USC 631 note.>> DEFINITIONS.
In this title:
(1) Eligible veteran.--The term ``eligible veteran'' means a
disabled veteran (as defined in section 4211(3) of title 38,
United States Code).
(2) Small business concern owned and controlled by eligible
veterans.--The term ``small business concern owned and
controlled by eligible veterans'' means a small business concern
(as defined in section 3 of the Small Business Act)--
(A) that is at least 51 percent owned by 1 or more
eligible veterans, or in the case of a publicly owned
business, at least 51 percent of the stock of which is
owned by 1 or more eligible veterans; and
(B) whose management and daily business operations
are controlled by eligible veterans.
SEC. 703. REPORT <<NOTE: 15 USC 631 note.>> BY SMALL BUSINESS
ADMINISTRATION.
(a) Study and Report.--
(1) In general.--Not later than 9 months after the date of
enactment of this Act, the Administrator shall conduct a
comprehensive study and submit to the Committees a final report
containing findings and recommendations of the Administrator
on--
(A) the needs of small business concerns owned and
controlled by eligible veterans;
(B) the availability and utilization of
Administration programs by small business concerns owned
and controlled by eligible veterans;
(C) the percentage, and dollar value, of Federal
contracts awarded to small business concerns owned and
controlled by eligible veterans in the preceding 5
fiscal years; and
(D) methods to improve Administration and other
agency programs to serve the needs of small business
concerns owned and controlled by eligible veterans.
(2) Contents.--The report under paragraph (1) shall include
recommendations to Congress concerning the need for legislation and
recommendations to the Office of Management and Budget,
[[Page 111 STAT. 2637]]
relevant offices within the Administration, and the Department of
Veterans Affairs.
(b) Conduct of Study.--In carrying out subsection (a), the
Administrator--
(1) may conduct surveys of small business concerns owned and
controlled by eligible veterans and service disabled veterans,
including those who have sought financial assistance or other
services from the Administration;
(2) shall consult with the appropriate committees of
Congress, relevant groups and organizations in the nonprofit
sector, and Federal or State government agencies; and
(3) shall have access to any information within other
Federal agencies that pertains to such veterans and their small
businesses, unless such access is specifically prohibited by
law.
SEC. 704. <<NOTE: 15 USC 631 note.>> INFORMATION COLLECTION.
After the date of issuance of the report required by section 703(a),
the Secretary of Veterans Affairs shall, in consultation with the
Assistant Secretary for Veterans' Employment and Training and the
Administrator, engage in efforts each fiscal year to identify small
business concerns owned and controlled by eligible veterans in the
United States. The Secretary shall inform each small business concern
identified under this section that information on Federal procurement is
available from the Administrator.
SEC. 705. STATE OF SMALL BUSINESS REPORT.
Section 303(b) of the Small Business Economic Policy Act of 1980 (15
U.S.C. 631b(b)) is amended by striking ``and female-owned businesses''
and inserting ``, female-owned, and veteran-owned businesses''.
SEC. 706. LOANS TO VETERANS.
Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is amended
by inserting after paragraph (7) the following:
``(8) The Administration may make loans under this
subsection to small business concerns owned and controlled by
disabled veterans (as defined in section 4211(3) of title 38,
United States Code).''.
SEC. 707. ENTREPRENEURIAL <<NOTE: 15 USC 631 note.>> TRAINING,
COUNSELING, AND MANAGEMENT ASSISTANCE.
The Administrator shall take such actions as may be necessary to
ensure that small business concerns owned and controlled by eligible
veterans have access to programs established under the Small Business
Act that provide entrepreneurial training, business development
assistance, counseling, and management assistance to small business
concerns, including, among others, the Small Business Development Center
program and the Service Corps of Retired Executives (SCORE) program.
SEC. 708. GRANTS FOR ELIGIBLE VETERANS' OUTREACH PROGRAMS.
Section 8(b) of the Small Business Act (15 U.S.C. 637(b)) is
amended--
(1) in paragraph (15), by striking ``and'' at the end;
(2) in the first paragraph designated as paragraph (16), by
striking the period at the end and inserting ``; and''; and
(3) by striking the second paragraph designated as paragraph
(16) and inserting the following:
[[Page 111 STAT. 2638]]
``(17) to make grants to, and enter into contracts and
cooperative agreements with, educational institutions, private
businesses, veterans' nonprofit community-based organizations,
and Federal, State, and local departments and agencies for the
establishment and implementation of outreach programs for
disabled veterans (as defined in section 4211(3) of title 38,
United States Code).''.
SEC. 709. OUTREACH <<NOTE: 15 USC 631 note.>> FOR ELIGIBLE VETERANS.
The Administrator, the Secretary of Veterans Affairs, and the
Assistant Secretary of Labor for Veterans' Employment and Training,
shall develop and implement a program of comprehensive outreach to
assist eligible veterans, which program shall include
business training and management assistance, employment and relocation
counseling, and dissemination of information on veterans' benefits and
veterans' entitlements.
Approved December 2, 1997.
LEGISLATIVE HISTORY--S. 1139 (H.R. 2261):
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HOUSE REPORTS: No. 105-246 accompanying H.R. 2261 (Comm. on Small
Business).
SENATE REPORTS: No. 105-62 (Comm. on Small Business).
CONGRESSIONAL RECORD, Vol. 143 (1997):
Sept. 9, considered and passed Senate.
Sept. 29, considered and passed House, amended, in lieu of
H.R. 2261.
Oct. 31, Senate concurred in House amendment with an
amendment.
Nov. 9, House concurred in Senate amendment.
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