H.R.11318 - A bill to amend the Small Business Act and the Small Business Investment Act of 1958.95th Congress (1977-1978)
|Sponsor:||Rep. Addabbo, Joseph P. [D-NY-7] (Introduced 03/07/1978)|
|Committees:||House - Government Operations; Small Business | Senate - Small Business; Governmental Affairs|
|Committee Reports:||H.Rept 95-949; S.Rept 95-1070; S.Rept 95-1140; H.Rept 95-1714|
|Latest Action:||10/24/1978 Public Law 95-507. (All Actions)|
This bill has the status Became Law
Here are the steps for Status of Legislation:
- Passed House
- Passed Senate
- Resolving Differences
- To President
- Became Law
Summary: H.R.11318 — 95th Congress (1977-1978)All Information (Except Text)
(Conference report filed in House, H. Rept. 95-1714)
Conference report filed in House (10/04/1978)
=Title I: Amendments to the Small Business Investment Act of 1958= - Amends the Small Business Investment Act of 1958 to authorize the Small Business Administration (SBA) to purchase the preferred securities of a minority enterprise small business investment company (MESBIC) in the following amounts: (1) for an MESBIC licensed on or before October 13, 1971, 200 percent of its private paid-in capital and paid-in surplus; (2) for an MESBIC licensed after October 13, 1971, with private paid-in capital of less than $500,000, 100 percent of such capital and surplus; and (3) for an MESBIC licensed after October 13, 1971, with private paid-in capital of $500,000 or more, 200 percent of such capital and surplus. Prohibits the amount of such securities purchased by the SBA in excess of 100 percent of an MEBIC's private capital and surplus from exceeding the amount of its funds invested in or legally committed to be invested in equity securities. Defines "equity securities" to include: (1) stock of any class; (2) limited partnership interests; (3) shares in any form of joint venture for profit; and (4) subordinated, unsecured debt instruments.
Authorizes small business investment companies (SBICs) to invest funds in certificates of deposit or savings accounts in institutions whose accounts are insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation.
Rescinds SBA authority to require differential payment on dividends or debentures. Raises to $500,000 the required combined private paid-in capital and paid-in surplus of any SBIC licensed on or after October 1, 1979.
Permits MESBICs to form as limited partnerships.
Redefines "surety" to include an agent, independent agent, underwriter, or any other company or individual empowered to act on behalf of such person. Sets specific standards under which the SBA can deny liability on a bond in its surety bond guarantee program. Authorizes the SBA to set performance standards for and further regulate sureties in such program. Authorizes the SBA to indemnify a surety against a loss sustained by such surety in attempting to avoid a breach of the terms of a bond guaranteed by the SBA. Provides that such indemnities shall be: (1) paid only upon a SBA determination that breach of the bond agreement was imminent; (2) limited to ten percent of the contract price unless the SBA finds that additional expenses were necessary; and (3) authorized to be paid for the two years following enactment of this Act.
Authorizes the SBA to make loans to State or local development companies whose capital is derived in whole or in part from: (1) State or local governments; (2) banks or other financial institutions; (3) foundations or other nonprofit institutions; and (4) small business concerns receiving assistance under this Title.
=Title II: Amendments to the Small Business Act= - Amends the Small Business Act to authorize the SBA to let subcontracts or to arrange for the performance of its own government contracts to socially and economically disadvantaged small business concerns for construction work, services, and the manufacture, supply or assembly of articles. Defines socially and economically disadvantaged small business concerns for purposes of this Act. Exempts small businesses receiving such subcontracts from performance bond requirements under specified circumstances.
Amends the Small Business Act to require the SBA to extend financial, management, technical, and other services to specified socially and economically disadvantaged small businesses. Directs the SBA to encourage major businesses to subcontract with and help train specified eligible small businesses. Creates an advisory committee to facilitate such subcontracting and training. Directs the General Accounting Office (GAO) to evaluate and report on the progress of such report on the progress of such SBA activities.
Establishes within the SBA a small business and capital development program to provide specified assistance exclusively for specified eligible socially and economically disadvantaged small businesses. Makes the Associate Administrator for Minority Business responsible for coordinating and formulating policies relating to Federal assistance to eligible small businesses and changes the title of such office to the Associate Administrator for Minority Small Business and Capital Ownership Development.
Requires each public contract to be performed in the United States which exceeds $10,000 in amount to include a clause requiring that small business concerns owned and controlled by socially and economically disadvantaged individuals be given the maximum practicable opportunity to participate in such contracts. Defines such ownership and control as: (1) at least 51 percent ownership by disadvantaged individuals; and (2) management of such concerns by one or more disadvantaged individuals. Establishes a presumption that the following are disadvantaged indiviudals: (1) Black Americans; (2) Hispanic Americans; (3) Native Americans; (4) other minorities; and (5) other individuals determined by the SBA pursuant to the Small Business Act.
Requires every Federal agency soliciting offers or bids for specified contracts to notify potential offering or bidding companies of the requirements of this Act. Requires each potentially successful offering or lowest bidding company to submit a subcontracting plan with its offer. Conditions the award of a negotiated contract to an apparently successful offering company upon a determination by the procurement authority that the final subcontracting plan affords maximum practicable opportunity for participation by small businesses owned and controlled by disadvantaged individuals of a contract to a low bidder upon the submission of a subcontracting plan.
Sets forth the information to be included in final subcontracting plans.
Authorizes every Federal agency to provide incentives to encourage subcontracting opportunities for small businesses owned or controlled by disadvantaged individuals under contracts let pursuant to the negotiated method of procurement.
Exempts offerors or bidders who are small businesses from the requirements of this Title relating to subcontracting.
Authorizes the SBA to assist Federal agencies and businesses in complying with such requirements. Directs the SBA to report each fiscal year to the Senate Select Committee on Small Business and the Committee on Small Business of the House of Representatives those agencies awarding contracts which the SBA determines did not afford the maximum practicable subcontracting opportunities for small businesses and small business concerns owned and controlled by disadvantaged individuals.
Requires all Federal agency heads to establish goals for small business participation in specified Federal procurement contracts and to consult with and report to the SBA about such goals and their realization.
Authorizes each agency to develop small business set-asides for procurements of research, development, test and evaluation.
Requires, with certain exceptions, each agency to reserve specified procurement contracts exclusively for small businesses.
Establishes an Office of Small and Disadvantaged Business Utilization in each agency having procurement powers.
Directs the Administrator of the Office of Federal Procurement Policy to promulgate a single, simplified, uniform Federal procurement regulation and to establish appropriate procedures for compliance by all Federal agencies and departments. Authorizes the Administrator to analyze the impact of revised procurement regulations on small businesses and to incorporate simplified contract procedures into such regulations.
Sets forth information Federal agencies must provide to small businesses upon request concerning contract opportunities.
Exempts the United States Postal Service and the General Accounting Office from the provisions of the Small Business Act.
Authorizes the SBA to make loans to small businesses 100 percent owned and controlled by Indian tribes as defined in the Indian Self-Determination and Education Assistance Act.
Extends for one year the authority of Federal agenices to give priority in awarding contracts to small businesses operating in areas with surplus labor. Requires the President to submit a report by October 1, 1979, to the Small Business and Armed Services Committees of both Houses of Congress on the labor surplus procurement program.