II 109th CONGRESS 2d Session S. 3691 IN THE SENATE OF THE UNITED STATES July 19, 2006 Mr. Kerry (for himself, Ms. Snowe, Mr. Akaka, and Mr. Talent) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship A BILL To amend the Small Business Act, to reform and reauthorize the National Veterans Business Development Corporation, and for other purposes.

1.

Short title

This Act may be cited as the Veterans Corporation Reauthorization Act of 2006.

2.

Purposes of the Corporation

(a)

Purposes

Section 33(b) of the Small Business Act (15 U.S.C. 657c(b)) is amended— (1)by striking paragraph (1) and inserting the following: (1)to establish and maintain a national network of information and assistance centers for use by veterans and the public by— (A)providing information regarding small business oriented employment or development programs; (B)providing access to studies and research concerning the management, financing, and operation of small business enterprises, small business participation in international markets, export promotion, and technology transfer; (C)providing referrals to business analysts who can provide direct counseling to veteran small business owners regarding the subjects described in this section; (D)serving as an information clearinghouse for business development and entrepreneurial assistance materials, as well as other veteran assistance materials, as deemed necessary, that are provided by Federal, State and local governments; and (E)providing assistance to veterans and service-disabled veterans in efforts to gain access to Federal prime contracts and subcontracts; and ; and (2)in paragraph (2), by striking including service-disabled veterans and inserting particularly service-disabled veterans.

3.

Management of the Corporation

(a)

Appointments to the board

Section 33(c)(2) of the Small Business Act (15 U.S.C. 657c(c)(2)) is amended to read as follows: (2)

Appointment of voting members

(A)

In general

The President shall, after considering recommendations proposed under subparagraph (B), appoint the 9 voting members of the Board, all of whom shall be United States citizens, and not more than 5 of whom shall be members of the same political party. (B)

Recommendations

Recommendations shall be submitted to the President for appointments under this paragraph by the chairman or ranking member (or both) of the Committee on Small Business and Entrepreneurship or the Committee on Veterans Affairs (or both) of the Senate or the Committee on Small Business or the Committee on Veterans Affairs (or both) of the House of Representatives. (C)

Consultation with veteran organizations

Recommendations under subparagraph (B) shall be made after consultation with such veteran service organizations as are determined appropriate by the member of Congress making the recommendation. (D)

Considerations

Consideration for eligibility for membership on the Board shall include business experience, knowledge of veterans’ issues, and ability to raise funds for the Corporation. (E)

Limitation on internal recommendations

No member of the Board may recommend an individual for appointment to another position on the Board. . (b)

Terms

Section 33(c)(6) of the Small Business Act (15 U.S.C. 657c(c)(6)) is amended to read as follows: (6)

Terms of appointed members

(A)

In general

Each member of the Board of Directors appointed under paragraph (2) shall serve for a term of 4 years. (B)

Unexpired terms

Any member of the Board of Directors appointed to fill a vacancy occurring before the expiration of the term for which the member's predecessor was appointed shall be appointed only for the remainder of the term. A member of the Board of Directors may not serve beyond the expiration of the term for which the member is appointed. . (c)

Removal of board members

Section 33(c) of the Small Business Act (15 U.S.C. 657c(c)) is amended by adding at the end the following: (12)

Removal of members

With the approval of a majority of the Board of Directors and the approval of the chairmen and ranking members of the Committee on Small Business and Entrepreneurship and the Committee on Veterans Affairs of the Senate, the Corporation may remove a member of the Board of Directors that is deemed unable to fulfill his or her duties, as established under this section. .

4.

Timing of transfer of Advisory Committee duties

Section 33(h) of the Small Business Act (15 U.S.C. 657c(h)) is amended by striking October 1, 2006 and inserting October 1, 2009.

5.

Authorization of appropriations

Section 33(k) of the Small Business Act (15 U.S.C. 657c(k)(1)) is amended— (1)in paragraph (1)— (A)by inserting , through the Office of Veteran's Business Development of the Administration, after to the Corporation; and (B)by striking subparagraphs (A) through (D) and inserting the following: (A)$2,000,000 for fiscal year 2007; (B)$2,000,000 for fiscal year 2008; and (C)$2,000,000 for fiscal year 2009. ; (2)by striking paragraph (2) and inserting the following: (2)

Matching requirements

(A)

In general

The Administration shall require, as a condition of any grant (or amendment or modification thereto) made to the Corporation under this section, that a matching amount (excluding any fees collected from recipients of such assistance) equal to the amount of such grant be provided from sources other than the Federal Government. (B)

Limitation

Not more than 33 percent of the total revenue of the Corporation, including the funds raised for use at the Veteran’s Business Resource Centers, may be acquired from fee-for-service tools or direct charge to the veteran receiving services, as described in this section, except that the amount of any such fee or charge may not exceed the amount of such fee or charge in effect on the date of enactment of the Veterans Corporation Reauthorization Act of 2006. (C)

Mission-related limitation

The Corporation may not engage in revenue producing programs, services, or related business ventures that are not intended to carry out the mission and activities described in section (b). (D)

Return to treasury

Funds appropriated under this section that have not been expended at the end of the fiscal year for which they were appropriated shall revert back to the Treasury. ; and (3)by striking paragraph (3).

6.

Privatization

Section 33 of the Small Business Act (15 U.S.C. 657c) is amended— (1)by striking subsections (f) and (i); and (2)by redesignating subsections (g), (h), (j), and (k) as subsections (f) through (i), respectively; and (3)by adding at the end the following: (j)

Privatization

(1)

Development of plan

Not later than 6 months after the date of enactment of the Veterans Corporation Reauthorization Act of 2006, the Corporation shall develop, institute, and implement a plan to raise private funds and become a self-sustaining corporation. (2)

GAO audit and report

(A)

Audit

The Comptroller General of the United States shall conduct an audit of the Corporation, in accordance with generally accepted accounting principles and generally accepted audit standards. (B)

Inclusions

The audit required by this paragraph shall include— (i)an evaluation of the efficacy of the Corporation in carrying out the purposes under section (b); and (ii)an analysis of the feasibility of the sustainability plan developed by the Corporation. (C)

Report

Not later than 1 year after the date of enactment of the Veterans Corporation Reauthorization Act of 2006, the Comptroller General shall submit a report on the audit conducted under this paragraph to the Committee on Small Business and Entrepreneurship and the Committee on Veterans Affairs of the Senate and to the Committee on Small Business and the Committee on Veterans Affairs of the House of Representatives. .