II 109th CONGRESS 2d Session S. 3659 IN THE SENATE OF THE UNITED STATES July 13, 2006 Ms. Snowe (for herself and Mr. Kerry) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship A BILL To reauthorize and improve the women's small business ownership programs of the Small Business Administration, and for other purposes.

1.

Short title; table of contents

(a)

Short title

This Act may be cited as the Women's Small Business Ownership Programs Act of 2006. (b)

Table of contents

The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Sec. 2. Office of Women’s Business Ownership. Sec. 3. Women’s Business Center Program. Sec. 4. National Women’s Business Council. Sec. 5. Interagency Committee on Women’s Business Enterprise. Sec. 6. Preserving the independence of the National Women’s Business Council.

2.

Office of Women’s Business Ownership

Section 29(g) of the Small Business Act (15 U.S.C. 656(g)) is amended— (1)in paragraph (2)— (A)in subparagraph (B)(i), by striking “in the areas” and all that follows through the end of subclause (I), and inserting the following: “to address issues concerning management, operations, manufacturing, technology, finance, retail and product sales, international trade, and other disciplines required for— (I)starting, operating, and growing a small business concern; ; and (B)in subparagraph (C), by inserting before the period at the end the following: , the National Women’s Business Council, and any association of women’s business centers ; and (2)by adding at the end the following: (3)

Programs and services for women-owned small businesses

The Assistant Administrator, in consultation with the National Women’s Business Council, the Interagency Committee on Women’s Business Enterprise, and 1 or more associations of women’s business centers, shall develop programs and services for women-owned businesses (as defined in section 408 of the Women’s Business Ownership Act of 1988 (15 U.S.C. 631 note)) in business areas, which may include— (A)manufacturing; (B)technology; (C)professional services; (D)retail and product sales; (E)travel and tourism; (F)international trade; and (G)Federal Government contract business development. (4)

Training

The Administrator shall provide annual programmatic and financial oversight training for women’s business ownership representatives and district office technical representatives of the Administration to enable representatives to carry out their responsibilities under this section. (5)

Grant program improvement

The Administrator shall improve the women’s business center grant proposal process and the programmatic and financial oversight process by— (A)providing notice to the public of each women’s business center grant announcement for an initial and renewal grant, not later than 6 months before awarding such grant; (B)providing notice to grant applicants and recipients of program evaluation criteria, not later than 12 months before any such evaluation; (C)reducing paperwork and reporting requirements for grant applicants and recipients; (D)standardizing the oversight and review process of the Administration; and (E)providing to each women’s business center, not later than 30 days after the completion of a site visit at that center, a copy of site visit reports and evaluation reports prepared by district office technical representatives or Administration officials. .

3.

Women’s Business Center Program

(a)

Women’s Business Center Grants Program

Section 29 of the Small Business Act (15 U.S.C. 656) is amended— (1)in subsection (a)— (A)by redesignating paragraphs (2), (3), and (4), as paragraphs (3), (4), and (5), respectively; and (B)by inserting after paragraph (1) the following: (2)the term association of women’s business centers means an organization that represents not fewer than 30 percent of the women’s business centers that are participating in a program under this section, and whose primary purpose is to represent women’s business centers; ; and (2)by striking subsections (b) through (f) and inserting the following: (b)

Grants Authorized

(1)

In general

(A)

Issuance

The Administrator may award initial and renewal grants of not more than $150,000 per year, which shall be known as women’s business center grants, to private nonprofit organizations to conduct projects for the benefit of small business concerns owned and controlled by women. (B)

Renewals

At the end of the initial 4-year grant period, and every 3 years thereafter, the grant recipient may apply to renew the grant in accordance with this subsection and subsection (e)(2). (C)

Equal allocations

In the event that the Administration has insufficient funds to provide grants of $150,000 for each eligible women’s business center, available funds shall be allocated equally to eligible centers, unless any center requests a lower amount than the allocable amount. (2)

Cooperative agreement authority

(A)

In general

The Administrator may enter into Federal cooperative agreements with grant recipients under this subsection to perform the services described under paragraph (3), only to the extent and in the amount provided by appropriated funds. (B)

Termination

(i)

In general

If any grant recipient under this subsection does not fulfill its grant obligations, after advanced notification, during the period of the grant, the Administrator may terminate the grant. (ii)

Exception

Notwithstanding a violation by a grant recipient of a grant obligation under this subsection, the Administrator may continue to fund the grant, if the grant recipient is making a good faith effort to comply with such obligation. (3)

Use of funds

Grants awarded under this subsection may be used to provide training and counseling in the areas of— (A)pre-business, business startup, and business operations; (B)financial planning assistance; (C)procurement assistance; (D)management assistance; (E)marketing assistance; and (F)international trade. (4)

Matching requirement

(A)

Women’s business center grants

As a condition of receiving financial assistance under this subsection, the grant recipient 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: (i)In the first and second years, 1 non-Federal dollar for each 2 Federal dollars provided under the 4-year grant. (ii)In the third and fourth years, 1 non-Federal dollar for each Federal dollar provided under the 4-year grant. (iii)In each renewal period, 1 non-Federal dollar for each Federal dollar provided under the 3-year grant. (B)

Form of non-federal contributions

Not more than 1/2 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. (C)

Failure to obtain non-federal funding

(i)

Advance disbursements

If any grant recipient fails to obtain the required non-Federal contribution during any project year, it shall not be eligible for advance disbursements under subparagraph (D) during the remainder of that project year. (ii)

Ability to obtain non-federal funding

Before approving assistance to a grant recipient that has failed to obtain the required non-Federal contribution for any other projects under this Act, the Administrator shall require the grant recipient to certify that it will be able to obtain the requisite non-Federal funding and enter a written finding setting forth the reasons for making such determination. (D)

Form of federal contributions

The financial assistance authorized under this subsection may be made by grant or cooperative agreement and may contain such provisions, as necessary, to provide for payments in lump sum or installments, and in advance or by way of reimbursement. The Administrator may disburse not more than 25 percent of the Federal share awarded to a grant recipient for each year after notice of the award has been issued and before the non-Federal sector matching funds are obtained. (5)

Application for an initial grant

Each organization desiring an initial grant under this subsection, shall submit to the Administrator an application that contains— (A)a certification that the applicant— (i)is a private nonprofit organization; (ii)has designated an executive director or program manager, who may be compensated from grant funds or other sources, to manage the center; and (iii)as a condition of receiving a grant under this subsection, agrees— (I)to receive a site visit as part of the final selection process; (II)to undergo an annual programmatic and financial examination; and (III)to the maximum extent practicable, to remedy any problems identified pursuant to the site visit or examination under subclauses (I) and (II); (B)information demonstrating that the applicant has the ability and resources to meet the needs of the market to be served by the women’s business center site for which an initial grant is sought, including the ability to comply with the matching requirement under paragraph (4); (C)information relating to assistance to be provided by the women’s business center site for which an initial grant is sought in the area in which the site is located; (D)information demonstrating the effective experience of the applicant in— (i)conducting financial, management, and marketing assistance programs, as described under paragraph (3), which are designed to teach or upgrade the business skills of women who are business owners or potential business owners; (ii)providing training and services to a representative number of women who are both socially and economically disadvantaged; and (iii)using resource partners of the Administration and other entities, such as universities; (E)a 4-year plan that projects the ability of the women’s business center site for which an initial grant is sought— (i)to serve women who are business owners or potential owners in the future by improving training and counseling activities; and (ii)to provide training and services to a representative number of women who are both socially and economically disadvantaged; and (F)any additional information that the Administrator may reasonably require. (6)

Review and approval of applications for an initial grant

(A)

In general

The Administrator shall— (i)review each application submitted under paragraph (5), based on the information described in such paragraph and the criteria set forth under subparagraph (B) of this paragraph; and (ii)as part of the final selection process, conduct a site visit at each women’s business center for which an initial grant is sought. (B)

Selection criteria

(i)

In general

The Administrator shall evaluate 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 Administrator. (ii)

Required criteria

The selection criteria for an initial grant under clause (i) shall include— (I)the experience of the applicant in conducting programs or ongoing efforts designed to teach or upgrade the business skills of women who are business owners or potential owners; (II)the ability of the applicant to commence a project within a minimum amount of time; (III)the ability of the applicant to provide training and services to a representative number of women who are both socially and economically disadvantaged; and (IV)the location for the women’s business center site proposed by the applicant. (C)

Record retention

The Administrator shall maintain a copy of each application submitted under this paragraph for not less than 7 years. (7)

Application for a renewal grant

Each organization desiring a renewal grant under this subsection, shall submit to the Administrator, not later than 3 months before the expiration of an existing grant under this subsection, an application that contains— (A)a certification that the applicant— (i)is a private nonprofit organization; (ii)has designated an executive director or program manager to manage the center; and (iii)as a condition of receiving a grant under this subsection, agrees— (I)to receive a site visit as part of the final selection process; (II)to submit, for the preceding 2 years, annual programmatic and financial examination reports or certified copies of the applicant’s compliance supplemental audits under OMB Circular A–133; and (III)to the maximum extent practicable, to remedy any problems identified pursuant to the site visit or examination under subclauses (I) and (II); (B)information demonstrating that the applicant has the ability and resources to meet the needs of the market to be served by the women’s business center site for which a renewal grant is sought, including the ability to comply with the matching requirement under paragraph (4); (C)information relating to assistance to be provided by the women’s business center site for which a renewal grant is sought in the area in which the site is located; (D)information demonstrating the utilization of resource partners of the Administration and other entities; (E)a 3-year plan that projects the ability of the women’s business center site for which a renewal grant is sought— (i)to serve women who are business owners or potential owners in the future by improving training and counseling activities; and (ii)to provide training and services to a representative number of women who are both socially and economically disadvantaged; and (F)any additional information that the Administrator may reasonably require. (8)

Review and approval of applications for a renewal grant

(A)

In general

The Administrator shall— (i)review each application submitted under paragraph (7), based on the information described in such paragraph and the criteria set forth under subparagraph (B) of this paragraph; and (ii)as part of the final selection process, conduct a site visit at each women’s business center for which a renewal grant is sought. (B)

Selection criteria

The Administrator shall evaluate 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 Administrator. (C)

Conditions for continued funding

In determining whether to renew a grant or cooperative agreement with a women’s business center, the Administrator— (i)shall consider the results of the most recent evaluation of the center, and, to a lesser extent, previous evaluations; and (ii)may withhold such renewal, if the Administrator determines that the center has failed to provide the information required to be provided under this subsection, or the information provided by the center is inadequate. (D)

Continuing grant and cooperative agreement authority

(i)

In general

The authority of the Administrator to enter into grants or cooperative agreements under this subsection shall be in effect for each fiscal year only to the extent and in the amounts as are provided in advance in appropriations Acts. (ii)

Renewal

After the Administrator has entered into a grant or cooperative agreement with any women’s business center under this subsection, the Administrator shall not suspend, terminate, or fail to renew or extend any such grant or cooperative agreement, unless the Administrator provides the center with written notification setting forth the reasons therefore and affords the center an opportunity for a hearing, appeal, or other administrative proceeding under chapter 5 of title 5, United States Code. (E)

Record retention

The Administrator shall maintain a copy of each application submitted under this paragraph for not less than 7 years. (9)

Data collection

Consistent with the annual report to Congress under subsection (g), each women’s business center site that is awarded an initial or renewal grant under this subsection shall collect information relating to— (A)the number of individuals counseled or trained; (B)the number of hours of counseling provided; (C)the number of workshops conducted; (D)the number of startup small business concerns formed; and (E)the number of jobs created or maintained at assisted small business concerns. (10)

Privacy requirements

(A)

In general

A women’s business center may not disclose the name, address, or telephone number of any individual or small business concern receiving assistance under this subsection without the consent of such individual or small business concern, unless— (i)the Administrator is ordered to make such a disclosure by a court in any civil or criminal enforcement action initiated by a Federal or State agency; or (ii)the Administrator considers such a disclosure to be necessary for the purpose of conducting a financial audit of a women’s business center, but a disclosure under this clause shall be limited to the information necessary for such audit. (B)

Administration use of information

This subsection shall not— (i)restrict Administration access to program activity data; or (ii)prevent the Administration from using client information (other than the information described in subparagraph (A)) to conduct client surveys. (C)

Regulations

The Administrator shall issue regulations to establish standards for requiring disclosures during a financial audit under subparagraph (A)(ii). (11)

Transition rules

(A)

In general

Notwithstanding any other provision of law, a grant or cooperative agreement that was awarded as an eligible sustainability grant, from amounts appropriated for fiscal year 2006, to operate a women’s business center, shall remain in full force and effect under the terms, and for the duration, of such agreement, subject to the grant limitation in paragraph (1). (B)

Extension

If the sustainability grant under subparagraph (A) is scheduled to expire not later than June 30, 2007, a 1-year extension shall be granted without any interruption of funding, subject to the grant limitation in paragraph (1). (C)

Effect on certain existing projects and renewal authority

A project being conducted by a women’s business center under this subsection on the day before the date of enactment of the Women's Small Business Ownership Programs Act of 2006— (i)as a 5-year project, shall remain in full force and effect under the terms and for the duration of that agreement; and (ii)shall be eligible to apply for a 3-year renewal grant funded at a level equal to not more than $150,000 per year. (12)

Coordination of services

Small business development centers and women's business centers shall, to the extent possible, coordinate services to avoid duplication of programmatic efforts. (c)

Associations of Women’s Business Centers

(1)

Recognition

The Administrator shall recognize the existence and activities of any association of women’s business centers established to address matters of common concern. (2)

Consultation

The Administrator shall consult with each association of women’s business centers to develop— (A)a training program for the staff of the women’s business centers and the Administration; and (B)recommendations to improve the policies and procedures for governing the general operations and administration of the Women’s Business Center Program, including grant program improvements under subsection (e)(5). . (b)

Conforming Amendments

Section 29 of the Small Business Act (15 U.S.C. 656) is amended— (1)by redesignating subsections (g), (h), (i), (j), and (k) as subsections (d), (e), (f), (g), and (h), respectively; (2)in subsection (e)(2), as redesignated by paragraph (1) of this subsection, by striking to award a contract (as a sustainability grant) under subsection (l) or; (3)in subsection (g)(1), as redesignated by paragraph (1) of this subsection, by striking The Administration and inserting Not later than November 1st of each year, the Administrator; (4)in subsection (h), as redesignated by paragraph (1) of this subsection— (A)by striking paragraphs (1) and (2) and inserting the following: (1)

In general

There are authorized to be appropriated to the Administration to carry out this section, to remain available until expended— (A)$16,500,000 for fiscal year 2007, of which $500,000 may be used to provide supplemental sustainability grants to women’s business centers, except that no such center may receive more than a total of $125,000 in grant funding for the grant period beginning on July 1, 2006 and ending on June 30, 2007; (B)$17,000,000 for fiscal year 2008; and (C)$17,500,000 for fiscal year 2009. (2)

Use of amounts

Amounts made available under this subsection 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. ; and (B)by striking paragraph (4); and (5)by striking subsection (l).

4.

National Women’s Business Council

(a)

Cosponsorship Authority

Section 406 of the Women’s Business Ownership Act of 1988 (15 U.S.C. 7106) is amended by adding at the end the following: (f)

Cosponsorship Authority

The Council is authorized to enter into agreements as a cosponsor with public and private entities, in the same manner as is provided in section 8(b)(1)(A) of the Small Business Act (15 U.S.C. 637(b)(1)(A)), to carry out its duties under this section. . (b)

Membership

Section 407(f) of the Women’s Business Ownership Act of 1988 (15 U.S.C. 7107(f)) is amended by adding at the end the following: (3)

Representation of member organizations

Notwithstanding subsection (b), a national women’s business organization or small business concern that is represented on the Council may, in consultation with the chairperson of the Council, replace its representative member on the Council at any time during the service term to which that member was appointed. . (c)

Establishment of Committees

Title IV of the Women’s Business Ownership Act of 1988 (15 U.S.C. 7101 et seq.) is amended by inserting after section 410, the following new section:

411.

Committees

(a)

Establishment

There are established within the Council— (1)the Committee on Manufacturing, Technology, and Training and Professional Services; (2)the Committee on Travel, Tourism, Product and Retail Sales, and International Trade; and (3)the Committee on Federal Procurement and Contracting. (b)

Duties

The Committees established under subsection (a) shall perform such duties as the chairperson shall direct.

. (d)

Clearinghouse for Historical Documents

Section 409 of the Women’s Business Ownership Act of 1988 (15 U.S.C. 7109) is amended by adding at the end the following: (c)

Clearinghouse for Historical Documents

The Council shall serve as a clearinghouse for information on small businesses owned and controlled by women, including research conducted by other organizations and individuals relating to ownership by women of small business concerns in the United States. . (e)

Authorization of Appropriations

Section 410(a) of the Women’s Business Ownership Act of 1988 (15 U.S.C. 7110(a)) is amended by striking 2001 through 2003, of which $550,000 and inserting 2007 through 2009, of which not less than 30 percent.

5.

Interagency Committee on Women’s Business Enterprise

(a)

Chairperson

Section 403(b) of the Women’s Business Ownership Act of 1988 (15 U.S.C. 7103(b)) is amended— (1)by striking Not later and inserting the following: (1)

In general

Not later ; and (2)by adding at the end the following: (2)

Vacancy

In the event that a chairperson is not appointed under paragraph (1), the Deputy Administrator of the Small Business Administration shall serve as acting chairperson of the Interagency Committee until a chairperson is appointed under paragraph (1). . (b)

Policy Advisory Group

Section 401 of the Women’s Business Ownership Act of 1988 (15 U.S.C. 7101) is amended— (1)by striking There and inserting the following: (a)

In General

There ; and (2)by adding at the end the following: (b)

Policy Advisory Group

(1)

Establishment

There is established a Policy Advisory Group to assist the chairperson in developing policies and programs under this Act. (2)

Membership

The Policy Advisory Group shall be composed of 7 policy making officials, of whom— (A)1 shall be a representative of the Small Business Administration; (B)1 shall be a representative of the Department of Commerce; (C)1 shall be a representative of the Department of Labor; (D)1 shall be a representative of the Department of Defense; (E)1 shall be a representative of the Department of the Treasury; and (F)2 shall be representatives of the Council. . (c)

Establishment of Subcommittees

Section 401 of the Women’s Business Ownership Act of 1988 (15 U.S.C. 7101), as amended by subsection (b), is amended by adding at the end the following: (c)

Subcommittees

(1)

Establishment

There are established— (A)the Subcommittee on Manufacturing, Technology, and Training and Professional Services; (B)the Subcommittee on Travel, Tourism, Product and Retail Sales, and International Trade; and (C)the Subcommittee on Federal Procurement and Contracting. (2)

Duties

The Subcommittees established under paragraph (1) shall perform such duties as the chairperson shall direct. (3)

Meetings

The Subcommittees established under paragraph (1) shall meet not less frequently than 3 times each year to— (A)plan activities for the new fiscal year; (B)track year-to-date agency contracting goals; and (C)evaluate the progress during the fiscal year and prepare an annual report. .

6.

Preserving the independence of the National Women’s Business Council

(a)

Findings

Congress finds the following: (1)The National Women’s Business Council provides an independent source of advice and policy recommendations regarding women’s business development and the needs of women entrepreneurs in the United States to— (A)the President; (B)Congress; (C)the Interagency Committee on Women’s Business Enterprise; and (D)the Administrator. (2)The members of the National Women’s Business Council are small business owners, representatives of business organizations, and representatives of women’s business centers. (3)The chair and ranking member of the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives make recommendations to the Administrator to fill 8 of the positions on the National Women’s Business Council. Four of the positions are reserved for small business owners who are affiliated with the political party of the President and 4 of the positions are reserved for small business owners who are not affiliated with the political party of the President. This method of appointment ensures that the National Women’s Business Council will provide Congress with nonpartisan, balanced, and independent advice. (4)In order to maintain the independence of the National Women’s Business Council and to ensure that the Council continues to provide Congress with advice on a nonpartisan basis, it is essential that the Council maintain the bipartisan balance established under section 407 of the Women’s Business Ownership Act of 1988 (15 U.S.C. 7107). (b)

Maintenance of Partisan Balance

Section 407(f) of the Women’s Business Ownership Act of 1988 (15 U.S.C. 7107(f)), as amended by this Act, is amended by adding at the end the following: (4)

Partisan balance

When filling vacancies under paragraph (1), the Administrator shall, to the extent practicable, ensure that there are an equal number of members on the Council from each of the 2 major political parties. (5)

Accountability

If a vacancy is not filled within the 30-day period required under paragraph (1), or if there exists an imbalance of party-affiliated members on the Council for a period exceeding 30 days, the Administrator shall submit a report, not later than 10 days after the expiration of either such 30-day deadline, to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives, that explains why the respective deadline was not met and provides an estimated date on which any vacancies will be filled, as applicable. .