[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3845 Referred in Senate (RFS)]

  2d Session
                                H. R. 3845


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 20, 2000

  Received; read twice and referred to the Committee on Small Business

_______________________________________________________________________

                                 AN ACT


 
 To make corrections to the Small Business Investment Act of 1958, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business Investment 
Corrections Act of 2000''.

SEC. 2. DEFINITIONS.

    (a) Small Business Concern.--Section 103(5)(A)(i) of the Small 
Business Investment Act of 1958 (15 U.S.C. 662(5)(A)(i)) is amended by 
inserting ``regardless of the allocation of control during the 
investment period under any investment agreement between the business 
concern and the entity making the investment'' before the semicolon at 
the end.
    (b) Long Term.--Section 103 of the Small Business Investment Act of 
1958 (15 U.S.C. 662) is amended--
            (1) in paragraph (15), by striking ``and'' at the end;
            (2) in paragraph (16), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(17) the term `long term', when used in connection with 
        equity capital or loan funds invested in any small business 
        concern or smaller enterprise, means any period of time not 
        less than 1 year.''.

SEC. 3. SUBSIDY FEES.

    (a) Debentures.--Section 303(b) of the Small Business Investment 
Act of 1958 (15 U.S.C. 683(b)) is amended by striking ``plus an 
additional charge of 1 percent per annum which shall be paid to and 
retained by the Administration'' and inserting ``plus, for debentures 
issued after September 30, 2000, an additional charge, in an amount 
established annually by the Administration, of not more than 1 percent 
per year as necessary to reduce to zero the cost (as defined in section 
502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) to the 
Administration of purchasing and guaranteeing debentures under this 
Act, which shall be paid to and retained by the Administration''.
    (b) Participating Securities.--Section 303(g)(2) of the Small 
Business Investment Act of 1958 (15 U.S.C. 683(g)(2)) is amended by 
striking ``plus an additional charge of 1 percent per annum which shall 
be paid to and retained by the Administration'' and inserting ``plus, 
for participating securities issued after September 30, 2000, an 
additional charge, in an amount established annually by the 
Administration, of not more than 1 percent per year as necessary to 
reduce to zero the cost (as defined in section 502 of the Federal 
Credit Reform Act of 1990 (2 U.S.C. 661a)) to the Administration of 
purchasing and guaranteeing participating securities under this Act, 
which shall be paid to and retained by the Administration''.

SEC. 4. DISTRIBUTIONS.

    Section 303(g)(8) of the Small Business Investment Act of 1958 (15 
U.S.C. 683(g)(8)) is amended--
            (1) by striking ``subchapter s corporation'' and inserting 
        ``subchapter S corporation'';
            (2) by striking ``the end of any calendar quarter based on 
        a quarterly'' and inserting ``any time during any calendar 
        quarter based on an''; and
            (3) by striking ``quarterly distributions for a calendar 
        year,'' and inserting ``interim distributions for a calendar 
        year,''.

SEC. 5. CONFORMING AMENDMENT.

    Section 310(c)(4) of the Small Business Investment Act of 1958 (15 
U.S.C. 687b(c)(4)) is amended by striking ``five years'' and inserting 
``1 year''.

            Passed the House of Representatives March 14, 2000.

            Attest:

                                                 JEFF TRANDAHL,

                                                                 Clerk.