[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2125 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 2125

     To provide for the termination of the present Small Business 
   Administration and certain of its functions, to establish a Small 
Business Administration in the Department of the Treasury and an Office 
 of Small Business Advocacy in the Executive Office of the President, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 27, 1995

     Mr. Dreier (for himself, Mr. Hefley, Mr. Solomon, Mr. Cox of 
California, Mr. McCollum, Mr. Hilleary, Mr. Rohrabacher, Mr. Royce, Mr. 
  Neumann, Mr. Stockman, and Mr. Baker of California) introduced the 
 following bill; which was referred to the Committee on Small Business

_______________________________________________________________________

                                 A BILL


 
     To provide for the termination of the present Small Business 
   Administration and certain of its functions, to establish a Small 
Business Administration in the Department of the Treasury and an Office 
 of Small Business Advocacy in the Executive Office of the President, 
                        and for other purposes.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business Administration 
Transfer Act''.

          TITLE I--REORGANIZATION OF SMALL BUSINESS FUNCTIONS

SEC. 101. TERMINATION OF PRESENT SMALL BUSINESS ADMINISTRATION.

    (a) In General.--The present Small Business Administration shall 
terminate on September 30, 1996.
    (b) Present Small Business Administration Defined.--In this Act, 
the term ``present Small Business Administration'' means the Small 
Business Administration established by section 4(a) of the Small 
Business Act, as in effect on the day before the effective date of this 
Act.

SEC. 102. ESTABLISHMENT OF SMALL BUSINESS ADMINISTRATION IN DEPARTMENT 
              OF THE TREASURY.

    (a) Establishment.--There is established in the Department of the 
Treasury a Small Business Administration (hereinafter in this section 
referred to as the ``Administration'').
    (b) Appointment of Under Secretary.--The Administration shall be 
headed by an Under Secretary of the Treasury who shall be appointed by 
the President, by and with the advice and consent of the Senate, and 
who shall be compensated at the rate provided for level III of the 
Executive Schedule in section 5314 of title 5, United States Code.
    (c) Appointment of Deputy Under Secretary.--The Secretary of the 
Treasury is authorized to appoint a Deputy Under Secretary who shall 
assist in the exercise of the functions vested in the Administration 
and who shall be compensated at the rate provided for level IV of the 
Executive Schedule in section 5315 of title 5, United States Code.

SEC. 103. ESTABLISHMENT OF OFFICE OF SMALL BUSINESS ADVOCACY IN 
              EXECUTIVE OFFICE OF THE PRESIDENT.

    (a) Establishment.--There is established in the Executive Office of 
the President an Office of Small Business Advocacy (hereinafter in this 
section referred to as the ``Office'').
    (b) Director.--The Office shall be headed by a Director who shall 
be appointed by the President, by and with the advice and consent of 
the Senate, and who shall be compensated at the rate provided for level 
IV of the Executive Schedule in section 5315 of title 5, United States 
Code.
    (c) Functions of the Director.--The Director is authorized to carry 
out any of the functions assigned to the Chief Counsel of Advocacy of 
the Small Business Administration under the Small Business Act, as in 
effect on the day before the effective date of this Act.

SEC. 104. CONFORMING AMENDMENTS TO TITLE 5, UNITED STATES CODE.

    (a) Section 5314.--Section 5314 of title 5, United States Code, is 
amended--
            (1) by striking ``Administrator of the Small Business 
        Administration.''; and
            (2) by striking ``Under Secretaries of the Treasury (3).'' 
        and inserting ``Under Secretaries of the Treasury (4).''.
    (b) Section 5315.--Section 5315 of title 5, United States Code, is 
amended--
            (1) by striking ``Deputy Administrator of the Small 
        Business Administration.'';
            (2) by striking ``Chief Counsel for Advocacy, Small 
        Business Administration.'' and inserting ``Director of the 
        Office of Small Business Advocacy.'';
            (3) by striking ``Inspector General, Small Business 
        Administration.''; and
            (4) by striking ``Deputy Under Secretaries of the Treasury 
        (or Assistant Secretaries of the Treasury) (2).'' and inserting 
        ``Deputy Under Secretaries of the Treasury (or Assistant 
        Secretaries of the Treasury) (3).''.
    (c) Section 5316.--Section 5316 of title 5, United States Code, is 
amended by striking ``Associate Administrators of the Small Business 
Administration (4).''.

 TITLE II--TERMINATION OF CERTAIN AUTHORITIES UNDER SMALL BUSINESS ACT 
               AND SMALL BUSINESS INVESTMENT ACT OF 1958

SEC. 201. REPEAL OF SMALL BUSINESS ACT.

    (a) Repeal.--Except as otherwise provided by this section, the 
Small Business Act is repealed effective September 30, 1995.
    (b) Continued Effectiveness of Certain Functions.--Notwithstanding 
subsection (a), the following provisions of the Small Business Act 
shall remain in effect after September 30, 1995:
            (1) Section 3(a) (relating to the definition of ``small 
        business concern'').
            (2) Section 4(b)(2) (relating to maintenance of a small 
        business economic database).
            (3) Section 5(f) (relating to the authority of lenders to 
        sell the guaranteed portion of certain loans on the secondary 
        market).
            (4) Section 7(a), as amended by this Act (relating to the 
        general business loan program).
            (5) Section 8(b)(1)(B) (relating to the Senior Corps of 
        Retired Executives (SCORE) and the Active Corps of Executives 
        (ACE)).
            (6) Section 15 (relating to the award of Federal contracts 
        to small business concerns).
    (c) Continued Applicability of Certain Provisions.--Notwithstanding 
subsection (a), the following provisions of the Small Business Act 
shall remain in effect after September 30, 1995, insofar as such 
provisions apply to the functions referred to in subsection (b):
            (1) Section 3(h) (relating to the definition of ``credit 
        elsewhere'').
            (2) Section 4(e) (relating to denial of assistance to 
        persons engaged in the production or distribution of obscene 
        products or services).
            (3) Section 4(f) (relating to denial of assistance to 
        persons not in compliance with child support obligations).
            (4) Section 5(b) (relating to general authorities to carry 
        out functions).
            (5) Section 16 (relating to penalties for prohibited acts).

SEC. 202. REPEAL OF SMALL BUSINESS INVESTMENT ACT OF 1958.

    The Small Business Investment Act of 1958 is repealed effective 
September 30, 1996.

     TITLE III--TRANSFERS OF FUNCTIONS TO SECRETARY OF THE TREASURY

SEC. 301. TRANSFER OF GENERAL BUSINESS LOAN PROGRAM.

    (a) In General.--Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)) is amended to read as follows:
    ``(a) General Business Loan Program.--
            ``(1) In general.--The Secretary of the Treasury 
        (hereinafter in this subsection referred to as the `Secretary') 
        is authorized to guarantee banks and other financial 
        institutions against loss of principal and interest on any loan 
        made to a small business concern for plant acquisition, 
        construction, conversion, or expansion, including the 
        acquisition of land, material, supplies, equipment, and working 
        capital.
            ``(2) Terms and conditions.--The authority of the Secretary 
        under paragraph (1) shall be subject to the following terms and 
        conditions:
                    ``(A) Credit elsewhere requirement.--No guarantee 
                may be made under this subsection if the applicant can 
                obtain credit elsewhere.
                    ``(B) Sound value requirement.--No guarantee may be 
                made under this subsection on a loan unless the loan is 
                of such sound value or so secured as reasonably to 
                assure repayment.
                    ``(C) Maximum guarantee percentage.--No guarantee 
                may be made under this subsection extending to more 
                than 75 percent of the balance of the financing 
                outstanding at the time of disbursement.
                    ``(D) Maximum loan amounts.--No guarantee may be 
                made under this subsection if the total amount 
                outstanding and committed to the borrower under this 
                subsection would exceed $750,000.
                    ``(E) Maximum loan term.--No guarantee may be made 
                under this subsection on a loan if the terms of the 
                loan permit repayment more than 25 years after the date 
                of the loan; except that such portion of a loan made 
                for the purpose of acquiring real property or 
                constructing, converting, or expanding facilities may 
                have a maturity of 25 years plus such additional period 
                as is estimated may be required to complete such 
                construction, conversion, or expansion.
                    ``(F) Maximum interest rate.--No guarantee may be 
                made under this subsection on a loan if the rate of 
                interest charged on the loan exceeds such rate as may 
                be prescribed by the Secretary.
            ``(3) Guarantee agreements.--
                    ``(A) In general.--The Secretary shall enter into a 
                guarantee agreement with each financial institution 
                participating in the program established under this 
                subsection.
                    ``(B) Terms and conditions.--A guarantee agreement 
                entered into under subparagraph (A) shall contain such 
                terms and conditions as may be necessary to carry out 
                the objectives of this subsection and to require the 
                financial institution to comply with the requirements 
                of this subsection.
                    ``(C) Tangible assets requirement.--As part of each 
                guarantee agreement entered under this paragraph, a 
                financial institution shall agree to maintain at all 
                times during the period of its participation in the 
                program established under this subsection tangible 
                capital assets in an amount not less than 6 percent of 
                the total assets of the financial institution.
                    ``(D) Authority to make loans.--A guarantee 
                agreement entered into under this paragraph shall 
                delegate to the financial institution--
                            ``(i) complete authority to make and close 
                        loans with a guarantee from the Secretary under 
                        this subsection without obtaining the prior 
                        specific approval of the Secretary; and
                            ``(ii) complete authority to service and 
                        liquidate such loans.
            ``(4) Guarantee fees.--
                    ``(A) Authority to collect.--The Secretary shall 
                collect a guarantee fee equal to 2 percent of the 
                guaranteed amount of any loan made under this 
                subsection other than a loan repayable in 1 year or 
                less. The fee shall be payable by the lender and may be 
                charged to the borrower.
                    ``(B) Adjustment of amount.--The Secretary may 
                increase or decrease the amount of fees collected 
                pursuant to this paragraph if
                 the Secretary determines, after providing notice and 
opportunity for public comment, that such an increase or decrease is 
necessary to cover the Secretary's costs of administration of the 
program under this subsection.
            ``(5) Reduction in guarantees to certain lenders.--The 
        Secretary shall reduce the guaranteed portion of loans made by 
        a financial institution under the program established by this 
        subsection if the Secretary determines that losses on loans 
        made by the financial institution under the program have 
        exceeded average losses on loans made under the program by 
        other financial institutions.
            ``(6) Ability of a financial institution to call loans.--
        Notwithstanding any other provision of this Act, the Secretary 
        shall not limit the ability of a financial institution 
        participating in the program established under this subsection 
        to call a loan guaranteed under this subsection.
            ``(7) Penalty fees.--The Secretary is authorized to permit 
        lenders participating in the program established under this 
        subsection to impose and collect a reasonable penalty fee on 
        late payments of loans guaranteed under this subsection.
            ``(8) Annual compliance review.--
                    ``(A) Requirement.--As a condition of participation 
                in the program established under this subsection, each 
                financial institution shall be subject to an annual 
                review to ensure compliance with the requirements of 
                this subsection. Such review shall be carried out by 
                the Secretary at the expense of the financial 
                institution.
                    ``(B) Insured depository institutions.--In the case 
                of an insured depository institution (as defined by 
                section 3(c)(2) of the Federal Deposit Insurance Act), 
                the review under subparagraph (A) may be conducted as 
                part of an examination conducted by the appropriate 
                Federal banking agency (as defined by section 3(q) of 
                such Act).
                    ``(C) Insured credit unions.--In the case of an 
                insured credit union (as defined by section 101(7) of 
                the Federal Credit Union Act), the review under 
                subparagraph (A) may be conducted as part of an 
                examination conducted by the National Credit Union 
                Administration.''.
    (b) Applicability.--
            (1) General rule.--Except as provided by paragraph (2), the 
        amendment made by subsection (a) shall apply to loans made 
        after September 30, 1995.
            (2) Phase-in period.--The Secretary of the Treasury may 
        phase-in application of the amendment to section 7(a) of the 
        Small Business Act made by subsection (a) of this section to 
        the extent that the Secretary determines that such a phase-in 
        period is necessary to prevent disruption to financial 
        institutions currently participating in the program established 
        under section 7(a) of the Small Business Act.

SEC. 302. TRANSFER OF FINANCIAL OBLIGATIONS OWNED BY SMALL BUSINESS 
              ADMINISTRATION.

    (a) Transfers to Secretary of the Treasury.--There are transferred 
to the Secretary of the Treasury the loans, notes, bonds, debentures, 
securities, and other financial obligations owned by the present Small 
Business Administration, together with all assets or other rights 
(including security interests) incident thereto, and all liabilities 
related thereto, and there are assigned to the Secretary the functions, 
powers, and abilities vested in or delegated to the present Small 
Business Administration to manage, service, collect, sell, dispose of, 
or otherwise realize proceeds on obligations owed to the present Small 
Business Administration under authority of the Small Business Act and 
the Small Business Investment Act of 1958 (including those assets 
purchased from the Federal Financing Bank pursuant to subsection (e) of 
this section). With respect to obligations owned by the present Small 
Business Administration under authority of the Small Business 
Investment Act of 1958, this section shall not take effect until 
September 30, 1996.
    (b) Legal Rights, Obligations, Responsibilities, and Liabilities.--
The Secretary of the Treasury shall succeed to all rights and 
obligations of the present Small Business Administration with respect 
to any and all legal rights, obligations, responsibilities, and 
liabilities arising out of the obligations described in subsections (a) 
and (e) of this section, including any outstanding guarantee of the 
present Small Business Administration and any of its defenses against a 
claim under such guarantee, and shall have the same legal rights, 
obligations, responsibilities, and liabilities as the present Small 
Business Administration had with respect to such obligations, and the 
regulation of brokers and dealers in such obligations.
    (c) Deposit of Amounts Received From Transferred Assets.--All 
amounts received by the Secretary of the Treasury with respect to any 
asset transferred to the Secretary pursuant to subsection (a) or (e) of 
this section shall be deposited in the Treasury as miscellaneous 
receipts.
    (d) Disposition of Assets.--
            (1) In general.--The Secretary of the Treasury is 
        authorized to dispose of any loan, debenture, or other asset 
        acquired by the Secretary pursuant to subsections (a) and (e) 
        of this section (including obligations formerly guaranteed 
        pursuant to the Small Business Act or the Small Business 
        Investment Act of 1958 that will be or have been acquired by 
        the Secretary) in the way, in amounts, at prices (for cash, 
        obligations, property, or combination of cash, obligations, or 
        property), and on such conditions as the Secretary considers 
        advisable and in the public interest.
            (2) Limitation on applicability of certain laws.--Any 
        disposition by the Secretary of the Treasury under this 
        subsection, including a disposition through sale of the Federal 
        Government's interest in an asset or in a pool of assets, shall 
        not be subject to the provisions of the Federal Property and 
        Administrative Services Act of 1949 or the provisions of any 
        Federal or State securities law.
            (3) Prohibition on guarantees.--Any disposition of an asset 
        under this subsection shall be
         without any guarantee of the United States or any agency or 
instrumentality thereof.
            (4) Transfer of information.--Notwithstanding any other 
        provision of law, including the Privacy Act of 1974, the 
        Secretary may transfer to a prospective purchaser or transferee 
        of an asset under this subsection such information as may be 
        incident to the disposition of the asset.
            (5) Limitation on applicability of certain filing 
        requirements.--Notwithstanding any State or local law or 
        regulation to the contrary, no filing or other action shall be 
        required in order to continue the perfected status of any 
        security interest transferred to the Secretary of the Treasury 
        which was held, on the day before the effective date of this 
        Act, by the present Small Business Administration or any 
        representative, transferee, or assignee thereof.
            (6) Continued applicability of certain laws.--Sections 5 
        (b) and (e), 7 (c) (1) and (2), 16, and 17 of the Small 
        Business Act shall remain in effect with respect to the assets 
        and guarantees transferred to the Secretary of the Treasury by 
        this Act as long as the Secretary shall retain any such asset 
        or guarantee.
    (e) Obligations Held By Federal Financing Bank.--The Secretary of 
the Treasury is authorized and directed, subject to funds being 
specifically appropriated for such purpose, to purchase from the 
Federal Financing Bank all notes, bonds, debentures, or other 
obligations held by the Federal Financing Bank that were, on the day 
before the effective date of this Act, guaranteed or otherwise backed 
by the present Small Business Administration. Such purchases are to be 
made at prices determined by the Federal Financing Bank as if the 
obligations were repurchased by the respective obligers consistent with 
the terms of such obligations or such other agreements between the 
present Small Business Administration and the Federal Financing Bank as 
are in effect on the day before the effective date of this Act.
    (f) Regulatory Authorities.--Effective September 30, 1996, there 
are transferred to the Secretary of the Treasury the regulatory 
authorities with respect to small business investment companies and 
minority enterprise small business investment companies conferred by 
the Small Business Investment Act of 1958; except that such regulatory 
authorities shall expire--
            (1) for each loan, debenture, or equity security purchased 
        or guaranteed by the present Small Business Administration, on 
        the date such loan or debenture is disposed of by the Secretary 
        of the Treasury; or
            (2) for each small business investment company or minority 
        enterprise small business investment company whose loans, 
        debentures, or equity securities were purchased or guaranteed 
        by the present Small Business Administration, on the date on 
        which the last such loan, debenture, or equity security of such 
        company is disposed of by the Secretary of the Treasury.

                       TITLE IV--OTHER TRANSFERS

SEC. 401. SIZE STANDARDS FOR SMALL BUSINESS CONCERNS; GOVERNMENT 
              PROCUREMENT PROGRAMS.

    There are transferred to the Director of the Office of Management 
of Budget all of the functions, powers, and duties vested in or 
delegated to the present Small Business Administration under sections 
3(a) and 15 of the Small Business Act.

SEC. 402. MAINTENANCE OF NATIONAL SMALL BUSINESS ECONOMIC INDICES; 
              SCORE AND ACE PROGRAMS.

    There are transferred to the Director of the Office of Small 
Business Advocacy all of the functions, powers, and duties vested in or 
delegated to the present Small Business Administration under sections 
4(b)(2) and 8(b)(1)(B) of the Small Business Act.

               TITLE V--GENERAL ADMINISTRATIVE PROVISIONS

SEC. 501. REFERENCES TO TRANSFERS MADE BY THIS ACT.

    In this Act, any reference to the transfer of a function or any 
other transfer made by this Act shall include transfers made by 
amendments made by this Act.

SEC. 502. TRANSFER OF AUTHORITIES.

    To the extent necessary or appropriate, and consistent with the 
provisions of this Act, in order to perform a function transferred by 
this Act, the head of a department or agency may exercise any authority 
or part thereof which was provided by law to the present Small Business 
Administration or the Administrator of the Small Business 
Administration.

SEC. 503. ORGANIZATIONAL ENTITIES AND OFFICES.

    (a) In General.--With the exception of the Small Business 
Administration established by section 102 of this Act, the head of a 
department or agency is authorized to locate among the officers of the 
department or agency the functions transferred to the department or 
agency, and to establish, consolidate, alter, or discontinue such 
organizational entities or offices within the department or agency as 
may be necessary or appropriate.
    (b) Treatment During Transition.--In accordance with section 601 of 
this Act, and regulations issued thereunder, and until such time as the 
consolidation and termination of the transferred functions is 
completed, the head of a department or agency shall treat the 
organizational entities and functions transferred by this Act to their 
respective departments, as if they remained a part of the present Small 
Business Administration.

SEC. 504. DELEGATION OF FUNCTIONS.

    Except where otherwise expressly provided for by law, the head of a 
department or agency may delegate any of the functions now vested in a 
position transferred pursuant to this Act that relate to such a 
position to any of the officers and employees of the department or 
agency, and may authorize successive redelegation of those functions, 
as appropriate.

SEC. 505. RULES AND REGULATIONS.

    The head of a department or agency is authorized to issue such 
rules and regulations as may be necessary or appropriate to carry out 
the functions, powers, and duties vested or transferred by this Act.

SEC. 506. TRANSFER OF FUND ACCOUNTS.

    Any appropriations or fund accounts established to carry out the 
purposes of this Act shall be deemed to be successor accounts to those 
that existed in the present Small Business Administration prior to the 
date of the enactment of this Act, and the balances of those prior 
accounts may be transferred and merged with any of the successor 
accounts so established.

       TITLE VI--TRANSITIONAL, SAVINGS, AND CONFORMING PROVISIONS

SEC. 601. TRANSFERS.

    So much of the personnel (including Senior Executive Service and 
GS-16, GS-17, and GS-18 positions), positions, assets, liabilities, 
contracts, property, records, and unexpended balance of appropriations, 
authorizations, allocations, and other funds employed, held, used, 
arising from, available to or to be made available in connection with 
any functions or authority transferred by this Act, are transferred to 
the head of the appropriate agency, except that no such unexpended 
balances transferred shall be used for purposes other than those for 
which the appropriation was originally made.

SEC. 602. DIRECTOR OF OFFICE OF MANAGEMENT AND BUDGET.

    The Director of the Office of Management and Budget, in 
consultation with the Administrator of the Small Business 
Administration, the Secretary of the Treasury, and other officials as 
appropriate, shall make such determinations as may be necessary with 
regard to the functions transferred by this Act, assets, liabilities, 
contracts, property, records, and unexpended balances of 
appropriations, authorizations, allocations, and other funds held, 
used, arising from, available to or to be made available in connection 
with the functions transferred by this Act, that the Director considers 
necessary to accomplish the purposes of this Act.

SEC. 603. SAVINGS PROVISIONS.

    (a) Existing Rules, Regulations, and Orders.--All orders, 
determinations, rules, regulations, permits, contracts, certificates, 
licenses, and privileges--
            (1) that have been issued, made, granted, or allowed to 
        become effective by the President, any Federal department or 
        agency, or official thereof, or by a court of competent 
        jurisdiction, in the performance of functions which are 
        transferred by this Act; and
            (2) that are in effect on September 30, 1995, shall 
        continue in effect according to their terms until modified, 
        terminated, superseded, set aside, or revoked in accordance 
        with law by the head of the department or agency to which such 
        function is transferred, or other authorized officials, a court 
        of competent jurisdiction, or by operation of law.
    (b) Administrative Proceedings.--
            (1) Pending proceedings not affected.--The provisions of 
        this Act shall not affect any proceedings or any application 
        for any license, permit, certificate, or financial assistance 
        pending on the effective date of this Act; but such proceedings 
        and applications, to the extent that they relate to functions 
        so transferred, shall be continued.
            (2) Effect of orders.--Orders shall be issued in such a 
        proceeding, appeals shall be taken therefrom, and payments 
        shall be made under such orders, as if this Act had not been 
        enacted, and orders issued in such a proceeding shall continue 
        in effect until modified, terminated, superseded, or revoked by 
        a duly authorized official, by a court of competent 
        jurisdiction, or by operation of law. Nothing in this 
        subsection prohibits the discontinuance or modification of such 
        a proceeding under the same terms and conditions and to the 
        same extent that such a proceeding could have been discontinued 
        or modified if this Act had not been enacted.
            (3) Issuance of regulations providing for transfer.--The 
        head of a department or agency may issue regulations providing 
        for the orderly transfer of such a proceeding to the department 
        or agency.
    (c) Pending Judicial Proceedings.--Except as provided in subsection 
(e) of this section--
            (1) the provisions of this Act do not affect a suit 
        commenced before this Act takes effect; and
            (2) in such a suit, proceedings shall be had, appeals 
        taken, and judgments rendered in the same manner and effect as 
        if this Act had not been enacted.
    (d) Causes of Action.--No suit, action, or other proceeding 
commenced by or against any officer in the officer's official capacity 
as an officer of any department or agency, functions of which are 
transferred by this Act, shall abate by reason of the enactment of this 
Act. No cause of action by or against any department or agency, 
functions of which are transferred by this Act, or by or against any 
officer thereof in the officer's official capacity shall abate by 
reason of the enactment of this Act. The authority to impose sanctions 
and grant waivers with respect to conflicts of interest occurring 
before the effective date of this Act, and the requirement to maintain 
records relating to the consideration of conflicts of interest before 
the effective date of this Act, do not abate by reason of the enactment 
of this Act.
    (e) Parties to a Suit.--If, before the date on which this Act takes 
effect, any department or agency, or any officer thereof in the 
officer's official capacity, is a party to a suit, and under this Act 
any function of that department, agency, or officer is transferred to 
the head of a department or agency, then the suit shall be continued 
with the head of the department or agency substituted.

SEC. 604. COORDINATION OF TRANSFER ACTIVITIES.

    (a) Planning.--The Administrator of the Small Business 
Administration, the Secretary of the Treasury, and other officials as 
appropriate shall, beginning as soon as practicable after the date of 
the enactment of this Act, plan for the orderly transfer of functions 
and personnel pursuant to this Act.
    (b) Use of Personnel.--With the consent of the Administrator of the 
Small Business Administration, the head of each agency to which 
functions are transferred by this Act is authorized to use the services 
of such officers, employees, and other personnel of the present Small 
Business Administration for such period of time as may reasonably be 
needed to facilitate the orderly transfer of functions pursuant to this 
Act.

SEC. 605. REFERENCES.

    With respect to any functions transferred by this Act and exercised 
after the effective date of this Act, reference in any other Federal 
law to any department, commission, or agency or any officer or office 
the functions of which are so transferred shall be considered to refer 
to the official to whom they were transferred.

SEC. 606. TRANSITIONAL PERIOD.

    (a) In General.--During the period from September 30, 1995, until 
September 30, 1996, the present Small Business Administration shall 
remain in existence, and there is authorized to be appropriated such 
sums as may be necessary for the purposes of winding up its affairs and 
advising the Secretary of the Treasury and other appropriate officials, 
insofar as they may request, in the exercise of the functions 
transferred by this Act. During this transitional period, the present 
Small Business Administration may not engage in any program activities 
under the Small Business Act, either with respect to those functions 
that are transferred to other agencies or those that are terminated.
    (b) Exceptions.--Notwithstanding subsection (a), the present Small 
Business Administration--
            (1) may continue to carry out functions under the Small 
        Business Investment Act of 1958 until September 30, 1996; and
            (2) upon request of the Secretary of the Treasury, may 
        continue to carry out functions under section 7(a) of the Small 
        Business Act until September 30, 1996, or the date on which the 
        transfer of such functions is complete, whichever occurs first.

SEC. 607. EFFECTIVE DATE.

    (a) In General.--Unless otherwise indicated, the provisions of this 
Act shall take effect on September 30, 1995.
    (b) Exceptions.--Notwithstanding subsection (a), at any time after 
the date of the enactment of this Act--
            (1) the officers provided for in sections 102 and 103 of 
        this Act may be nominated and appointed, as provided in such 
        sections; and
            (2) the head of a department or agency to whom functions 
        are transferred under this Act may issue regulations under 
        section 505 of this Act.
    (c) Temporary Appointments.--If any officer required by this Act to 
be appointed by and with the advice and consent of the Senate has not 
entered office on the effective date of this Act, the President may 
designate any officer whose appointment was required to be made by and 
with the advice and consent of the Senate, and who was such an officer 
immediately before the effective date of this Act, to act in the office 
until it is filled as provided in this Act. While so acting, such an 
officer shall be compensated at the rate prescribed by this Act for the 
office in which the officer acts.
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