[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2538 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 2538

 To amend the Small Business Act to expand and improve the assistance 
provided by Small Business Development Centers to Indian tribe members, 
                 Native Alaskans, and Native Hawaiians.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 17, 2001

   Mr. Udall of New Mexico introduced the following bill; which was 
              referred to the Committee on Small Business

_______________________________________________________________________

                                 A BILL


 
 To amend the Small Business Act to expand and improve the assistance 
provided by Small Business Development Centers to Indian tribe members, 
                 Native Alaskans, and Native Hawaiians.

    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 ``Native American Small Business 
Development Act''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds the following:
            (1) Approximately 60 percent of Indian tribe members and 
        Native Alaskans live on or adjacent to Indian lands, which 
        suffer from an average unemployment rate of 45 percent.
            (2) Indian tribe members and Native Alaskans own more than 
        197,000 businesses and generate more than $34,000,000,000 in 
        revenues. The service industry accounted for 17 percent of 
        these businesses (of which 40 percent were engaged in business 
        and personal services) and 15.1 percent of their total 
        receipts. The next largest was the construction industry (13.9 
        percent and 15.7 percent, respectively). The third largest was 
        the retail trade industry (7.5 percent and 13.4 percent, 
        respectively).
            (3) The number of businesses owned by Indian tribe members 
        and Native Alaskans grew by 84 percent from 1992 to 1997, and 
        their gross receipts grew by 179 percent in that period. This 
        is compared to all businesses which grew by 7 percent, and 
        their total gross receipts grew by 40 percent, in that period.
            (4) The Small Business Development Center program is cost 
        effective. Clients receiving long-term counseling under the 
        program in 1998 generated additional tax revenues of 
        $468,000,000, roughly 6 times the cost of the program to the 
        Federal Government.
            (5) Using the existing infrastructure of the Small Business 
        Development Center program, small businesses owned by Indian 
        tribe members, Native Alaskans, and Native Hawaiians receiving 
        services under the program will have a higher survival rate 
        than the average small business not receiving such services.
            (6) Business counseling and technical assistance is 
        critical on Indian lands where similar services are scarce and 
        expensive.
            (7) Increased assistance through counseling under the Small 
        Business Development Center program has been shown to reduce 
        the default rate associated with lending programs of the Small 
        Business Administration.
    (b) Purposes.--The purposes of this Act are as follows:
            (1) To stimulate economies on Indian lands.
            (2) To foster economic development on Indian lands.
            (3) To assist in the creation of new small businesses owned 
        by Indian tribe members, Native Alaskans, and Native Hawaiians 
        and expand existing ones.
            (4) To provide management, technical, and research 
        assistance to small businesses owned by Indian tribe members, 
        Native Alaskans, and Native Hawaiians.
            (5) To seek the advice of local Tribal Councils on where 
        small business development assistance is most needed.
            (6) To ensure that Indian tribe members, Native Alaskans, 
        and Native Hawaiians have full access to existing business 
        counseling and technical assistance available through the Small 
        Business Development Center program.

SEC. 3. SMALL BUSINESS DEVELOPMENT CENTER ASSISTANCE TO INDIAN TRIBE 
              MEMBERS, NATIVE ALASKANS, AND NATIVE HAWAIIANS.

    (a) In General.--Section 21(a) of the Small Business Act (15 U.S.C. 
648(a)) is amended by adding at the end the following:
            ``(7) Additional grant to assist indian tribe members, 
        native alaskans, and native hawaiians.--
                    ``(A) In general.--Any applicant in an eligible 
                State that is funded by the Administration as a Small 
                Business Development Center may apply for an additional 
                grant to be used solely to provide services described 
                in subsection (c)(3) to assist with outreach, 
                development, and enhancement on Indian lands of small 
                business startups and expansions owned by Indian tribe 
                members, Native Alaskans, and Native Hawaiians.
                    ``(B) Eligible states.--For purposes of 
                subparagraph (A), an eligible State is a State that has 
                a combined population of Indian tribe members, Natives 
                Alaskans, and Native Hawaiians that comprises at least 
                1 percent of the State's total population, as shown by 
                the latest available census.
                    ``(C) Grant applications.--An applicant for a grant 
                under subparagraph (A) shall submit to the Associate 
                Administrator an application that is in such form as 
                the Associate Administrator may require. The 
                application shall include information regarding the 
                applicant's goals and objectives for the services to be 
                provided using the grant, including--
                            ``(i) the capability of the applicant to 
                        provide training and services to a 
                        representative number of Indian tribe members, 
                        Native Alaskans, and Native Hawaiians;
                            ``(ii) the location of the Small Business 
                        Development Center site proposed by the 
                        applicant;
                            ``(iii) the required amount of grant 
                        funding needed by the applicant to implement 
                        the program; and
                            ``(iv) the extent to which the applicant 
                        has consulted with local Tribal Councils.
                    ``(D) Applicability of grant requirements.--An 
                applicant for a grant under subparagraph (A) shall 
                comply with all of the requirements of this section, 
                except that the matching funds requirements of 
                paragraph (4)(A) shall not apply.
                    ``(E) Maximum amount of grants.--No applicant may 
                receive more than $300,000 in grants under this 
                paragraph in a fiscal year.
                    ``(F) Regulations.--After providing notice and an 
                opportunity for comment and after consulting with the 
                Association recognized by the Administration pursuant 
                to paragraph (3)(A) (but not later than 180 days after 
                the date of enactment of this paragraph), the 
Administrator shall issue final regulations to carry out this 
paragraph, including regulations that establish--
                            ``(i) standards relating to educational, 
                        technical, and support services to be provided 
                        by Small Business Development Centers receiving 
                        assistance under this paragraph; and
                            ``(ii) standards relating to any work plan 
                        that the Associate Administrator may require a 
                        Small Business Development Center receiving 
                        assistance under this paragraph to develop.
                    ``(G) Definitions.--In this paragraph, the 
                following definitions apply:
                            ``(i) Associate administrator.--The term 
                        `Associate Administrator' means the Associate 
                        Administrator for Small Business Development 
                        Centers.
                            ``(ii) Indian lands.--The term `Indian 
                        lands' has the meaning given the term `Indian 
                        country' in section 1151 of title 18, United 
                        States Code, the meaning given the term `Indian 
                        reservation' in section 151.2 of title 25, Code 
                        of Federal Regulations (as in effect on the 
                        date of enactment of this paragraph), and the 
                        meaning given the term `reservation' in section 
                        4 of the Indian Child Welfare Act of 1978 (25 
                        U.S.C. 1903).
                            ``(iii) Indian tribe.--The term `Indian 
                        tribe' has the meaning given such term in 
                        section 8(a)(13).
                            ``(iv) Indian tribe member.--The term 
                        `Indian tribe member' means a member of an 
                        Indian tribe (other than a Native Alaskan).
                            ``(v) Native alaskan.--The term `Native 
                        Alaskan' has the meaning given the term 
                        `Native' in section 3(b) of the Alaska Native 
                        Claims Settlement Act (43 U.S.C. 1602(b)).
                            ``(vi) Native hawaiian.--The term `Native 
                        Hawaiian' means any individual who is a 
                        descendant of the aboriginal people, who prior 
                        to 1778, occupied and exercised sovereignty in 
                        the area that now constitutes the State of 
                        Hawaii.
                    ``(H) Authorization of appropriations.--There is 
                authorized to be appropriated to carry out this 
                paragraph $7,000,000 for each of fiscal years 2002 
                through 2004.
                    ``(I) Funding limitations.--
                            ``(i) Nonapplicability of certain 
                        limitations.--Funding under this paragraph 
                        shall be in addition to the dollar program 
                        limitations specified in paragraph (4).
                            ``(ii) Limitation on use of funds.--The 
                        Administration may carry out this paragraph 
                        only with amounts appropriated in advance 
                        specifically to carry out this paragraph.''.

SEC. 4. STATE CONSULTATION WITH LOCAL TRIBAL COUNCILS.

    Section 21(c) of the Small Business Act (15 U.S.C. 648(c)) is 
amended by adding at the end the following:
            ``(9) Advice of local tribal counsels.--A State receiving 
        grants under this section shall request the advice of local 
        Tribal Councils on how best to provide assistance to Indian 
        tribe members, Native Alaskans, and Native Hawaiians and where 
        to locate satellite centers to provide such assistance.''.
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