[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1139 Enrolled Bill (ENR)]

        S.1139

                       One Hundred Fifth Congress

                                 of the

                        United States of America


                          AT THE FIRST SESSION

          Begun and held at the City of Washington on Tuesday,
 the seventh day of January, one thousand nine hundred and ninety-seven


                                 An Act


 
 To reauthorize the programs of the Small Business Administration, 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; TABLE OF CONTENTS.

    (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.
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. 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 DATE.

    This Act and the amendments made by this Act shall take effect on 
October 1, 1997.

                        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.
            ``(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.
        ``(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 $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--

                    ``(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
                ``(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 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 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 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 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''.
    (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.''.
    (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-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

                (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 
    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.--
        (1) 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 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
        (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)''.

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 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'';
        (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));
            ``(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);
        ``(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 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.--
            ``(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 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) 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).
        (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--
        (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.''.

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 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. 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.
            ``(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) 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 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 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 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
                ``(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 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
                    ``(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'';
        (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 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 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 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 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.

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 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 PROGRAM

SEC. 601. SHORT 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 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 and other contracts.--The Administrator 
        shall promulgate final regulations imposing 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 section 31 as section 32; and
            (B) by inserting after section 30 the following:

``SEC. 31. HUBZONE 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

                ``(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 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 
    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 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
        (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--
        (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:
            ``(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)'';
            (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. 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. 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:
        ``(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. 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. 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 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, 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. 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 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:
        ``(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 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.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.