I 111th CONGRESS 2d Session H. R. 5832 IN THE HOUSE OF REPRESENTATIVES July 22, 2010 Mrs. Dahlkemper introduced the following bill; which was referred to the Committee on Small Business A BILL To amend the Small Business Act to improve the Office of International Trade, and for other purposes.

1.

Short title

This Act may be cited as the Small Business Export Enhancement Act of 2010.

2.

Definitions

(a)

Definitions

In this Act— (1)the terms Administration and Administrator mean the Small Business Administration and the Administrator thereof, respectively; (2)the term Associate Administrator means the Associate Administrator for International Trade appointed under section 22(a)(2) of the Small Business Act, as amended by this Act; (3)the term Export Assistance Center means a one-stop shop referred to in section 2301(b)(8) of the Omnibus Trade and Competitiveness Act of 1988 (15 U.S.C. 4721(b)(8)); (4)the term rural small business concern means a small business concern located in a rural area, as that term is defined in section 1393(a)(2) of the Internal Revenue Code of 1986; and (5)the term small business concern has the meaning given that term under section 3 of the Small Business Act (15 U.S.C. 632). (b)

Technical and conforming amendments

(1)

Definitions

Section 3 of the Small Business Act (15 U.S.C. 632) is amended by adding at the end the following: (t)

Small business development center

In this Act, the term small business development center means a small business development center described in section 21. (u)

Region of the Administration

In this Act, the term region of the Administration means the geographic area served by a regional office of the Administration established under section 4(a). . (2)

Conforming amendment

Section 4(b)(3)(B)(x) of the Small Business Act (15 U.S.C. 633(b)(3)(B)(x)) is amended by striking Administration district and region and inserting district and region of the Administration.

3.

Office of International Trade

(a)

Establishment

Section 22 of the Small Business Act (15 U.S.C. 649) is amended— (1)by striking Sec. 22. (a) There and inserting the following:

22.

Office of International Trade

(a)

Establishment

(1)

Office

There

; and (2)in subsection (a)— (A)in paragraph (1), as so designated, by striking the period and inserting “for the primary purposes of increasing— (A)the number of small business concerns that export; and (B)the volume of exports by small business concerns. ; and (B)by adding at the end the following: (2)

Associate Administrator

The head of the Office shall be the Associate Administrator for International Trade, who shall be responsible to the Administrator. . (b)

Authority for Additional Associate Administrator

Section 4(b)(1) of the Small Business Act (15 U.S.C. 633(b)(1)) is amended— (1)in the fifth sentence, by striking five Associate Administrators and inserting Associate Administrators; and (2)by adding at the end the following: One such Associate Administrator shall be the Associate Administrator for International Trade, who shall be the head of the Office of International Trade established under section 22.. (c)

Discharge of International Trade Responsibilities of Administration

Section 22 of the Small Business Act (15 U.S.C. 649) is amended by adding at the end the following: (h)

Discharge of International Trade Responsibilities of Administration

The Administrator shall ensure that— (1)the responsibilities of the Administration regarding international trade are carried out by the Associate Administrator; (2)the Associate Administrator has sufficient resources to carry out such responsibilities; and (3)the Associate Administrator has direct supervision and control over— (A)the staff of the Office; and (B)any employee of the Administration whose principal duty station is an Export Assistance Center, or any successor entity. . (d)

Role of Associate Administrator in carrying out international trade policy

Section 2(b)(1) of the Small Business Act (15 U.S.C. 631(b)(1)) is amended in the matter preceding subparagraph (A)— (1)by inserting the Administrator of before the Small Business Administration; and (2)by inserting through the Associate Administrator for International Trade, and before in cooperation with. (e)

Implementation date

Not later than 90 days after the date of enactment of this Act, the Administrator of the Small Business Administration shall appoint an Associate Administrator for International Trade under section 22(a) of the Small Business Act (15 U.S.C. 649(a)), as added by this section.

4.

Duties of the Office of International Trade

(a)

Amendments to section 22

Section 22 of the Small Business Act (15 U.S.C. 649) is amended— (1)by striking subsection (b) and inserting the following: (b)

Trade distribution network

The Associate Administrator, working in close cooperation with the Secretary of Commerce, the United States Trade Representative, the Export-Import Bank of the United States, the Overseas Private Investment Corporation, and other relevant Federal agencies, small business development centers engaged in export promotion efforts, Export Assistance Centers, regional and district offices of the Administration, the small business community, and relevant State and local export promotion programs, shall— (1)maintain a distribution network, using regional and district offices of the Administration, the small business development center network, networks of women's business centers, the Service Corps of Retired Executives authorized by section 8(b)(1), and Export Assistance Centers, for programs relating to— (A)trade promotion; (B)trade finance; (C)trade adjustment assistance; (D)trade remedy assistance; and (E)trade data collection; (2)aggressively market the programs described in paragraph (1) and disseminate information, including computerized marketing data, to small business concerns on exporting trends, market-specific growth, industry trends, and international prospects for exports; (3)promote export assistance programs through the district and regional offices of the Administration, the small business development center network, Export Assistance Centers, the network of women's business centers, chapters of the Service Corps of Retired Executives, State and local export promotion programs, and partners in the private sector; and (4)give preference in hiring or approving the transfer of any employee into the Office or to a position described in subsection (c)(9) to otherwise qualified applicants who are fluent in a language in addition to English, to— (A)accompany small business concerns on foreign trade missions; and (B)translate documents, interpret conversations, and facilitate multilingual transactions, including by providing referral lists for translation services, if required. ; (2)in subsection (c)— (A)by striking (c) The Office and inserting the following: (c)

Promotion of sales opportunities

The Associate Administrator ; (B)by redesignating paragraphs (1) through (8) as paragraphs (2) through (9), respectively; (C)by inserting before paragraph (2), as so redesignated, the following: (1)establish annual goals for the Office relating to— (A)enhancing the exporting capability of small business concerns and small manufacturers; (B)facilitating technology transfers; (C)enhancing programs and services to assist small business concerns and small manufacturers to compete effectively and efficiently against foreign entities; (D)increasing the ability of small business concerns to access capital; (E)disseminating information concerning Federal, State, and private programs and initiatives; and (F)ensuring that the interests of small business concerns are adequately represented in trade negotiations; ; (D)in paragraph (2), as so redesignated, by striking mechanism for and all that follows through (D) assisting and inserting the following: mechanism for—(A)identifying subsectors of the small business community with strong export potential; (B)identifying areas of demand in foreign markets; (C)prescreening foreign buyers for commercial and credit purposes; and (D)assisting ; (E)in paragraph (3), as so redesignated, by striking assist small businesses in the formation and utilization of and inserting assist small business concerns in forming and using; (F)in paragraph (4), as so redesignated— (i)by striking local and inserting district; (ii)by striking existing; (iii)by striking Small Business Development Center network and inserting small business development center network; and (iv)by striking Small Business Development Center Program and inserting small business development center program; (G)in paragraph (5), as so redesignated— (i)in subparagraph (A), by striking Gross State Produce and inserting Gross State Product; (ii)in subparagraph (B), by striking SIC each place it appears and inserting North American Industry Classification System; and (iii)in subparagraph (C), by striking small businesses and inserting small business concerns; (H)in paragraph (6), as so redesignated, by striking the period at the end and inserting a semicolon; (I)in paragraph (7), as so redesignated— (i)in the matter preceding subparagraph (A)— (I)by inserting concerns after small business; and (II)by striking current and inserting up to date; (ii)in subparagraph (A), by striking Administration's regional offices and inserting regional and district offices of the Administration; (iii)in subparagraph (B) by striking current; (iv)in subparagraph (C), by striking current; and (v)by striking small businesses each place that term appears and inserting small business concerns; (J)in paragraph (8), as so redesignated, by striking and at the end; (K)in paragraph (9), as so redesignated— (i)in the matter preceding subparagraph (A)— (I)by striking full-time export development specialists to each Administration regional office and assigning; and (II)by striking person in each district office. Such specialists and inserting individual in each district office and providing each Administration regional office with a full-time export development specialist, who; (ii)in subparagraph (B)— (I)by striking current; and (II)by striking with and inserting in; (iii)in subparagraph (D)— (I)by striking Administration personnel involved in granting and inserting personnel of the Administration involved in making; and (II)by striking and at the end; (iv)in subparagraph (E)— (I)by striking small businesses' needs and inserting the needs of small business concerns; and (II)by striking the period at the end and inserting a semicolon; (v)by adding at the end the following: (F)participate, jointly with employees of the Office, in an annual training program that focuses on current small business needs for exporting; and (G)develop and conduct training programs for exporters and lenders, in cooperation with the Export Assistance Centers, the Department of Commerce, small business development centers, women's business centers, the Export-Import Bank of the United States, the Overseas Private Investment Corporation, and other relevant Federal agencies; ; and (vi)by striking small businesses each place that term appears and inserting small business concerns; and (L)by adding at the end the following: (10)make available on the website of the Administration the name and contact information of each individual described in paragraph (9); (11)carry out a nationwide marketing effort using technology, online resources, training, and other strategies to promote exporting as a business development opportunity for small business concerns; (12)disseminate information to the small business community through regional and district offices of the Administration, the small business development center network, Export Assistance Centers, the network of women's business centers, chapters of the Service Corps of Retired Executives authorized by section 8(b)(1), State and local export promotion programs, and partners in the private sector regarding exporting trends, market-specific growth, industry trends, and prospects for exporting; and (13)establish and carry out training programs for the staff of the regional and district offices of the Administration and resource partners of the Administration on export promotion and providing assistance relating to exports. ; (3)in subsection (d)— (A)by redesignating paragraphs (1) through (5) as clauses (i) through (v), respectively, and adjusting the margins accordingly; (B)by striking (d) The Office and inserting the following: (d)

Export financing programs

(1)

In general

The Associate Administrator ; and (C)by striking To accomplish this goal, the Office shall work and inserting the following: (2)

Trade finance specialist

To accomplish the goal established under paragraph (1), the Associate Administrator shall— (A)designate at least 1 individual within the Administration as a trade finance specialist to oversee international loan programs and assist Administration employees with trade finance issues; and (B)work ; (4)in subsection (e), by striking (e) The Office and inserting the following: (e)

Trade Remedies

The Associate Administrator ; (5)by amending subsection (f) to read as follows: (f)

Reporting requirement

The Associate Administrator shall submit an annual report to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives that contains— (1)a description of the progress of the Office in implementing the requirements of this section; (2)a detailed account of the results of export growth activities of the Administration, including the activities of each district and regional office of the Administration, based on the performance measures described in subsection (i); (3)an estimate of the total number of jobs created or retained as a result of export assistance provided by the Administration and resource partners of the Administration; (4)for any travel by the staff of the Office, the destination of such travel and the benefits to the Administration and to small business concerns resulting from such travel; and (5)a description of the participation by the Office in trade negotiations. ; (6)in subsection (g), by striking (g) The Office and inserting the following: (g)

Studies

The Associate Administrator ; and (7)by adding after subsection (h), as added by section 3 of this Act, the following: (i)

Export and trade counseling

(1)

Definition

In this subsection— (A)the term lead small business development center means a small business development center that has received a grant from the Administration; and (B)the term lead women's business center means a women's business center that has received a grant from the Administration. (2)

Certification program

The Administrator shall establish an export and trade counseling certification program to certify employees of lead small business development centers and lead women's business centers in providing export assistance to small business concerns. (3)

Number of certified employees

The Administrator shall ensure that the number of employees of each lead small business development center who are certified in providing export assistance is not less than the lesser of— (A)5; or (B)10 percent of the total number of employees of the lead small business development center. (4)

Reimbursement for certification

(A)

In general

Subject to the availability of appropriations, the Administrator shall reimburse a lead small business development center or a lead women's business center for costs relating to the certification of an employee of the lead small business center or lead women's business center in providing export assistance under the program established under paragraph (2). (B)

Limitation

The total amount reimbursed by the Administrator under subparagraph (A) may not exceed $350,000 in any fiscal year. (j)

Performance measures

(1)

In general

The Associate Administrator shall develop performance measures for the Administration to support export growth goals for the activities of the Office under this section that include— (A)the number of small business concerns that— (i)receive assistance from the Administration; (ii)had not exported goods or services before receiving the assistance described in clause (i); and (iii)export goods or services; (B)the number of small business concerns receiving assistance from the Administration that export goods or services to a market outside the United States into which the small business concern did not export before receiving the assistance; (C)export revenues by small business concerns assisted by programs of the Administration; (D)the number of small business concerns referred to an Export Assistance Center or a small business development center by the staff of the Office; (E)the number of small business concerns referred to the Administration by an Export Assistance Center or a small business development center; and (F)the number of small business concerns referred to the Export-Import Bank of the United States or to the Overseas Private Investment Corporation by the staff of the Office, an Export Assistance Center, or a small business development center. (2)

Consistency of tracking

The Associate Administrator, in coordination with the departments and agencies that are represented on the Trade Promotion Coordinating Committee established under section 2312 of the Export Enhancement Act of 1988 (15 U.S.C. 4727) and the small business development center network, shall develop a system to track exports by small business concerns, including information relating to the performance measures developed under paragraph (1), that is consistent with systems used by the departments and agencies and the network. . (b)

Trade disputes

The Administrator shall carry out a comprehensive program to provide technical assistance, counseling, and reference materials to small business concerns relating to resources, procedures, and requirements for mechanisms to resolve international trade disputes or address unfair international trade practices under international trade agreements or Federal law, including— (1)directing the district offices of the Administration to provide referrals, information, and other services to small business concerns relating to the mechanisms; (2)entering agreements and partnerships with providers of legal services relating to the mechanisms, to ensure small business concerns may affordably use the mechanisms; and (3)in consultation with the Director of the United States Patent and Trademark Office and the Register of Copyrights, designing counseling services and materials for small business concerns regarding intellectual property protection in other countries. (c)

Report

Not later than 60 days after the date of enactment of this Act, the Administrator shall submit a report to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives on any travel by the staff of the Office of International Trade of the Administration, during the period beginning on October 1, 2004, and ending on the date of enactment of the Act, including the destination of such travel and the benefits to the Administration and to small business concerns resulting from such travel.

5.

Export assistance centers

(a)

Export assistance centers

Section 22 of the Small Business Act (15 U.S.C. 649), as amended by this Act, is amended by adding at the end the following: (k)

Export assistance centers

(1)

Export finance specialists

(A)

Minimum number of export finance specialists

On and after January 1, 2011, the Administrator, in coordination with the Secretary of Commerce, shall ensure that the number of export finance specialists is not less than the number of such employees so assigned on January 1, 2003. (B)

Export finance specialists assigned to each region of the Administration

On and after the date that is 2 years after the date of enactment of this subsection, the Administrator, in coordination with the Secretary of Commerce, shall ensure that there are not fewer than 3 export finance specialists in each region of the Administration. (2)

Placement of export finance specialists

(A)

Priority

The Administrator shall give priority, to the maximum extent practicable, to placing employees of the Administration at any Export Assistance Center that— (i)had an Administration employee assigned to the Export Assistance Center before January 2003; and (ii)has not had an Administration employee assigned to the Export Assistance Center during the period beginning January 2003, and ending on the date of enactment of this subsection, either through retirement or reassignment. (B)

Needs of exporters

The Administrator shall, to the maximum extent practicable, strategically assign Administration employees to Export Assistance Centers, based on the needs of exporters. (C)

Rule of construction

Nothing in this subsection may be construed to require the Administrator to reassign or remove an export finance specialist who is assigned to an Export Assistance Center on the date of enactment of this subsection. (3)

Goals

The Associate Administrator shall work with the Department of Commerce, the Export-Import Bank of the United States, and the Overseas Private Investment Corporation to establish shared annual goals for the Export Assistance Centers. (4)

Oversight

The Associate Administrator shall designate an individual within the Administration to oversee all activities conducted by Administration employees assigned to Export Assistance Centers. (l)

Definitions

In this section— (1)the term Associate Administrator means the Associate Administrator for International Trade described in subsection (a)(2); (2)the term Export Assistance Center means a one-stop shop for United States exporters established by the United States and Foreign Commercial Service of the Department of Commerce pursuant to section 2301(b)(8) of the Omnibus Trade and Competitiveness Act of 1988 (15 U.S.C. 4721(b)(8)); (3)the term export finance specialist means a full-time equivalent employee of the Office assigned to an Export Assistance Center to carry out the duties described in subsection (e); and (4)the term Office means the Office of International Trade established under subsection (a)(1). . (b)

Study and report on filling gaps in high-and-Low-Export volume areas

(1)

Study and report

Not later than 6 months after the date of enactment of this Act, and every 2 years thereafter, the Administrator shall— (A)conduct a study of— (i)the volume of exports for each State; (ii)the availability of export finance specialists in each State; (iii)the number of exporters in each State that are small business concerns; (iv)the percentage of exporters in each State that are small business concerns; (v)the change, if any, in the number of exporters that are small business concerns in each State— (I)for the first study conducted under this subparagraph, during the 10-year period ending on the date of enactment of this Act; and (II)for each subsequent study, during the 10-year period ending on the date the study is commenced; (vi)the total value of the exports in each State by small business concerns; (vii)the percentage of the total volume of exports in each State that is attributable to small business concerns; and (viii)the change, if any, in the percentage of the total volume of exports in each State that is attributable to small business concerns— (I)for the first study conducted under this subparagraph, during the 10-year period ending on the date of enactment of this Act; and (II)for each subsequent study, during the 10-year period ending on the date the study is commenced; and (B)submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report containing— (i)the results of the study under subparagraph (A); (ii)to the extent practicable, a recommendation regarding how to eliminate gaps between the supply of and demand for export finance specialists in the 15 States that have the greatest volume of exports, based upon the most recent data available from the Department of Commerce; (iii)to the extent practicable, a recommendation regarding how to eliminate gaps between the supply of and demand for export finance specialists in the 15 States that have the lowest volume of exports, based upon the most recent data available from the Department of Commerce; and (iv)such additional information as the Administrator determines is appropriate. (2)

Definition

In this subsection, the term export finance specialist has the meaning given that term in section 22(l) of the Small Business Act, as added by this Act.

6.

Rural export promotion

Not later than 6 months after the date of enactment of this Act, the Administrator, in consultation with the Secretary of Agriculture and the Secretary of Commerce, shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report that contains— (1)a description of each program of the Administration that promotes exports by rural small business concerns, including— (A)the number of rural small business concerns served by the program; (B)the change, if any, in the number of rural small business concerns as a result of participation in the program during the 10-year period ending on the date of enactment of this Act; (C)the volume of exports by rural small business concerns that participate in the program; and (D)the change, if any, in the volume of exports by rural small businesses that participate in the program during the 10-year period ending on the date of enactment of this Act; (2)a description of the coordination between programs of the Administration and other Federal programs that promote exports by rural small business concerns; (3)recommendations, if any, for improving the coordination described in paragraph (2); (4)a description of any plan by the Administration to market the international trade financing programs of the Administration through lenders that— (A)serve rural small business concerns; and (B)are associated with financing programs of the Department of Agriculture; (5)recommendations, if any, for improving coordination between the counseling programs and export financing programs of the Administration, in order to increase the volume of exports by rural small business concerns; and (6)any additional information the Administrator determines is necessary.

7.

International trade cooperation by small business development centers

Section 21(a) of the Small Business Act (15 U.S.C. 648(a)) is amended— (1)by striking (2) The Small Business Development Centers and inserting the following: (2)

Cooperation to provide international trade services

(A)

Information and services

The small business development centers ; and (2)in paragraph (2)— (A)in subparagraph (A), as so designated, by inserting (including State trade agencies), after local agencies; and (B)by adding at the end the following: (B)

Cooperation with State trade agencies and Export Assistance Centers

A small business development center that counsels a small business concern on issues relating to international trade shall— (i)consult with State trade agencies and Export Assistance Centers to provide appropriate services to the small business concern; and (ii)as necessary, refer the small business concern to a State trade agency or an Export Assistance Center for further counseling or assistance. (C)

Definition

In this paragraph, the term Export Assistance Center has the same meaning as in section 22. .