Text: S.1139 — 105th Congress (1997-1998)All Information (Except Text)

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Public Law No: 105-135 (12/02/1997)

 
[105th Congress Public Law 135]
[From the U.S. Government Printing Office]


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[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):
---------------------------------------------------------------------------

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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