[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 207 Reported in House (RH)]

<DOC>





                                                 Union Calendar No. 406
114th CONGRESS
  2d Session
                                H. R. 207

                          [Report No. 114-526]

 To amend the Small Business Act to provide for improvements to small 
                     business development centers.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 8, 2015

Ms. Velazquez introduced the following bill; which was referred to the 
                      Committee on Small Business

                             April 26, 2016

     Additional sponsors: Mr. Jeffries, Mrs. Kirkpatrick, and Mrs. 
                               Napolitano

                             April 26, 2016

Reported with amendments, committed to the Committee of the Whole House 
          on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
[For text of introduced bill, see copy of bill as introduced on January 
                                8, 2015]


_______________________________________________________________________

                                 A BILL


 
 To amend the Small Business Act to provide for improvements to small 
                     business development centers.


 


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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Developing the 
Next Generation of Small Businesses Act of 2016''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.

        TITLE I--SMALL BUSINESS DEVELOPMENT CENTERS IMPROVEMENTS

Sec. 101. Short title.
Sec. 102. Use of authorized entrepreneurial development programs.
Sec. 103. Marketing of services.
Sec. 104. Data collection.
Sec. 105. Fees from private partnerships and cosponsorships.
Sec. 106. Equity for small business development centers.
Sec. 107. Confidentiality requirements.
Sec. 108. Limitation on award of grants to small business development 
                            centers.

        TITLE II--WOMEN'S BUSINESS CENTERS PROGRAM IMPROVEMENTS

Sec. 201. Short title.
Sec. 202. Office of Women's Business Ownership.
Sec. 203. Women's Business Center Program.
Sec. 204. Matching requirements under Women's Business Center Program.

                TITLE III--SCORE PROGRAM REAUTHORIZATION

Sec. 301. Short title.
Sec. 302. SCORE Reauthorization.
Sec. 303. SCORE program.
Sec. 304. Online component.
Sec. 305. Study and report on the future role of the SCORE program.
Sec. 306. Technical and conforming amendments.

        TITLE I--SMALL BUSINESS DEVELOPMENT CENTERS IMPROVEMENTS

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Small Business Development Centers 
Improvement Act of 2016''.

SEC. 102. USE OF AUTHORIZED ENTREPRENEURIAL DEVELOPMENT PROGRAMS.

    The Small Business Act (15 U.S.C. 631 et seq.) is amended by adding 
at the end the following:

``SEC. 48. USE OF AUTHORIZED ENTREPRENEURIAL DEVELOPMENT PROGRAMS.

    ``(a) Expanded Support for Entrepreneurs.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, the Administrator shall only use the programs authorized 
        in sections 7(j), 7(m), 8(a), 8(b)(1), 21, 22, 29, and 32 of 
        this Act, and sections 358 and 389 of the Small Business 
        Investment Act to deliver entrepreneurial development services, 
        entrepreneurial education, support for the development and 
        maintenance of clusters, or business training.
            ``(2) Exception.--This section shall not apply to services 
        provided to assist small business concerns owned by an Indian 
        tribe (as such term is defined in section 8(a)(13)).
    ``(b) Annual Report.--Beginning on the first December 1 after the 
date of enactment of this subsection, the Administrator shall annually 
report to the Committee on Small Business of the House of 
Representatives and the Committee on Small Business and 
Entrepreneurship of the Senate on all entrepreneurial development 
activities undertaken in the current fiscal year. This report shall 
include--
            ``(1) a description and operating details for each program 
        and activity;
            ``(2) operating circulars, manuals, and standard operating 
        procedures for each program and activity;
            ``(3) a description of the process used to award grants 
        under each program and activity;
            ``(4) a list of all awardees, contractors, and vendors 
        (including organization name and location) and the amount of 
        awards for the current fiscal year for each program and 
        activity;
            ``(5) the amount of funding obligated for the current 
        fiscal year for each program and activity; and
            ``(6) the names and titles for those individuals 
        responsible for each program and activity.''.

SEC. 103. MARKETING OF SERVICES.

    Section 21 of the Small Business Act (15 U.S.C. 648) is amended by 
adding at the end the following:
    ``(o) No Prohibition of Marketing of Services.--The Administrator 
shall not prohibit applicants receiving grants under this section from 
marketing and advertising their services to individuals and small 
business concerns.''.

SEC. 104. DATA COLLECTION.

    (a) In General.--Section 21(a)(3)(A) of the Small Business Act (15 
U.S.C. 648(a)(3)(A)) is amended--
            (1) by striking ``as provided in this section and'' and 
        inserting ``as provided in this section,''; and
            (2) by inserting before the period at the end the 
        following: ``, and (iv) governing data collection activities 
        related to applicants receiving grants under this section''.
    (b) Annual Report on Data Collection.--Section 21 of the Small 
Business Act (15 U.S.C. 648), as amended by section 103 of this Act, is 
further amended by adding at the end the following:
    ``(p) Annual Report on Data Collection.--The Administrator shall 
report annually to the Committee on Small Business of the House of 
Representatives and the Committee on Small Business and 
Entrepreneurship of the Senate on any data collection activities 
related to the Small Business Development Center program.''.
    (c) Working Group to Improve Data Collection.--
            (1) Establishment and study.--The Administrator of the 
        Small Business Administration shall establish a Data Collection 
        Working Group consisting of members from entrepreneurial 
        development grant recipients associations and organizations and 
        Administration officials, to carry out a study to determine the 
        best way to capture data collection and create or revise 
        existing systems dedicated to data collection.
            (2) Report.--Not later than the end of the 180-day period 
        beginning on the date of the enactment of this Act, the Data 
        Collection Working Group shall issue a report to the Committee 
        on Small Business of the House of Representatives and the 
        Committee on Small Business and Entrepreneurship of the Senate 
        containing the findings and determinations made in carrying out 
        the study required under paragraph (1), including--
                    (A) recommendations for revising existing data 
                collection practices; and
                    (B) a proposed plan for the Small Business 
                Administration to implement such recommendations.

SEC. 105. FEES FROM PRIVATE PARTNERSHIPS AND COSPONSORSHIPS.

    Section 21(a)(3) of the Small Business Act (15 U.S.C. 
648(a)(3)(C)), as amended by section 104, is further amended by adding 
at the end the following:
    ``(D) Fees From Private Partnerships and Cosponsorships.--
Participation in private partnerships and cosponsorships with the 
Administration shall not limit small business development centers from 
collecting fees or other income related to the operation of such 
private partnerships and cosponsorships.''.

SEC. 106. EQUITY FOR SMALL BUSINESS DEVELOPMENT CENTERS.

    Subclause (I) of section 21(a)(4)(C)(v) of the Small Business Act 
(15 U.S.C. 648(a)(4)(C)(v)) is amended to read as follows:
                            ``(I) In general.--Of the amounts made 
                        available in any fiscal year to carry out this 
                        section not more than $600,000 may be used by 
                        the Administration to pay expenses enumerated 
                        in subparagraphs (B) through (D) of section 
                        20(a)(1).''.

SEC. 107. CONFIDENTIALITY REQUIREMENTS.

    Section 21(a)(7)(A) of the Small Business Act (15 U.S.C. 
648(a)(7)(A)) is amended by inserting after ``under this section'' the 
following: ``to any State, local or Federal agency, or third party''.

SEC. 108. LIMITATION ON AWARD OF GRANTS TO SMALL BUSINESS DEVELOPMENT 
              CENTERS.

    (a) In General.--Section 21 of the Small Business Act (15 U.S.C. 
648), as amended by section 104, is further amended--
            (1) in subsection (a)(1), by striking ``any women's 
        business center operating pursuant to section 29,'';
            (2) by adding at the end the following:
    ``(q) Limitation on Award of Grants.--Except for not-for-profit 
institutions of higher education, and notwithstanding any other 
provision of law, the Administrator may not award grants (including 
contracts and cooperative agreements) under this section to any entity 
other than those that received grants (including contracts and 
cooperative agreements) under this section prior to the date of the 
enactment of this subsection, and that seek to renew such grants 
(including contracts and cooperative agreements) after such date.''.
    (b) Rule of Construction.--The amendments made by this section may 
not be construed as prohibiting a women's business center from 
receiving a subgrant from an entity receiving a grant under section 21 
of the Small Business Act (15 U.S.C. 648).

        TITLE II--WOMEN'S BUSINESS CENTERS PROGRAM IMPROVEMENTS

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Women's Business Centers 
Improvements Act of 2016''.

SEC. 202. 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), by striking subparagraphs (B) and (C) 
        and inserting the following:
                    ``(B) Responsibilities.--The responsibilities of 
                the Assistant Administrator shall be to administer the 
                programs and services of the Office of Women's Business 
                Ownership.
                    ``(C) Duties.--The Assistant Administrator shall 
                perform the following functions with respect to the 
                Office of Women's Business Ownership:
                            ``(i) Recommend the annual administrative 
                        and program budgets of the Office and eligible 
                        entities receiving a grant under the Women's 
                        Business Center Program.
                            ``(ii) Review the annual budgets submitted 
                        by each eligible entity receiving a grant under 
                        the Women's Business Center Program.
                            ``(iii) Select applicants to receive grants 
                        to operate a women's business center after 
                        reviewing information required by this section, 
                        including the budget of each applicant.
                            ``(iv) Collaborate with other Federal 
                        departments and agencies, State and local 
                        governments, not-for-profit organizations, and 
                        for-profit enterprises to maximize utilization 
                        of taxpayer dollars and reduce (or eliminate) 
                        any duplication among the programs overseen by 
                        the Office of Women's Business Ownership and 
                        those of other entities that provide similar 
                        services to women entrepreneurs.
                            ``(v) Maintain a clearinghouse to provide 
                        for the dissemination and exchange of 
                        information between women's business centers.
                            ``(vi) Serve as the vice chairperson of the 
                        Interagency Committee on Women's Business 
                        Enterprise and as the liaison for the National 
                        Women's Business Council.''; and
            (2) by adding at the end the following:
            ``(3) Mission.--The mission of the Office of Women's 
        Business Ownership shall be to assist women entrepreneurs to 
        start, grow, and compete in global markets by providing quality 
        support with access to capital, access to markets, job 
        creation, growth, and counseling by--
                    ``(A) fostering participation of women 
                entrepreneurs in the economy by overseeing a network of 
                women's business centers throughout States and 
                territories;
                    ``(B) creating public-private partnerships to 
                support women entrepreneurs and conduct outreach and 
                education to startup and existing small business 
                concerns owned and controlled by women; and
                    ``(C) working with other programs overseen by the 
                Administrator to ensure women are well-represented and 
                being served and to identify gaps where participation 
                by women could be increased.
            ``(4) Accreditation program.--
                    ``(A) Establishment.--Not later than 270 days after 
                the date of enactment of this paragraph, the 
                Administrator shall establish standards for an 
                accreditation program for accrediting eligible entities 
                receiving a grant under this section, after notice and 
                the opportunity for public comment of no less than 60 
                days.
                    ``(B) Transition provision.--Before the date on 
                which standards are established under subparagraph (A), 
                the Administrator may not terminate a grant under this 
                section absent evidence of fraud or other criminal 
                misconduct by the recipient.
                    ``(C) Contracting authority.--The Administrator may 
                provide financial assistance, by contract or otherwise, 
                to a relevant national women's business center 
                representative association to provide assistance in 
                establishing the standards required under subparagraph 
                (A) or for carrying out an accreditation program 
                pursuant to such standards.''.

SEC. 203. WOMEN'S BUSINESS CENTER PROGRAM.

    (a) Definitions.--Section 29(a) of the Small Business Act (15 
U.S.C. 656(a)) is amended--
            (1) by striking paragraph (4);
            (2) by redesignating paragraphs (2) and (3) as paragraphs 
        (3) and (4), respectively;
            (3) by inserting after paragraph (1) the following:
            ``(2) the term `eligible entity' means--
                    ``(A) an organization described in section 501(c) 
                of the Internal Revenue Code of 1986 and exempt from 
                taxation under section 501(a) of such Code;
                    ``(B) a State, regional, or local economic 
                development organization, so long as the organization 
                certifies that grant funds received under this section 
                will not be co-mingled with other funds;
                    ``(C) an institution of higher education, unless 
                such institution is currently receiving a grant under 
                section 21;
                    ``(D) a development, credit, or finance corporation 
                chartered by a State, so long as the corporation 
                certifies that grant funds received under this section 
                will not be co-mingled with other funds; or
                    ``(E) any combination of entities listed in 
                subparagraphs (A) through (D);''; and
            (4) by adding at the end the following:
            ``(5) the term `women's business center' means the location 
        at which counseling and training on the management, operations 
        (including manufacturing, services, and retail), access to 
        capital, international trade, Government procurement 
        opportunities, and any other matter is needed to start, 
        maintain, or expand a small business concern owned and 
        controlled by women.''.
    (b) Authority.--Section 29(b) of the Small Business Act (15 U.S.C. 
656(b)) is amended--
            (1) by redesignating paragraphs (1), (2), and (3) as 
        subparagraphs (A), (B), and (C), respectively, and adjusting 
        the margins accordingly;
            (2) by striking ``The Administration'' and all that follows 
        through ``5-year projects'' and inserting the following:
            ``(1) In general.--There is established a Women's Business 
        Center Program under which the Administrator may provide a 
        grant to any eligible entity to operate one or more women's 
        business centers'';
            (3) by striking ``The projects shall'' and inserting the 
        following:
            ``(2) Use of funds.--The women's business centers shall be 
        designed to provide counseling and training that meets the 
        needs of women, especially socially or economically 
        disadvantaged women, and shall''; and
            (4) by adding at the end the following:
            ``(3) Amount of grants.--
                    ``(A) In general.--The amount of a grant provided 
                under this subsection to an eligible entity per project 
                year shall be not more than $185,000 (as such amount is 
                annually adjusted by the Administrator to reflect the 
                change in inflation).
                    ``(B) Additional grants.--
                            ``(i) In general.--Notwithstanding 
                        subparagraph (A), with respect to an eligible 
                        entity that has received $185,000 in grants 
                        under this subsection in a project year, the 
                        Administrator may award an additional grant 
                        under this subsection of up to $65,000 during 
                        such project year if the Administrator 
                        determines that the eligible entity--
                                    ``(I) agrees to obtain, after its 
                                application has been approved and 
                                notice of award has been issued, cash 
                                contributions from non-Federal sources 
                                of 1 non-Federal dollar for each 
                                Federal dollar;
                                    ``(II) is in good standing with the 
                                Women's Business Center Program; and
                                    ``(III) has met performance goals 
                                for the previous project year, if 
                                applicable.
                            ``(ii) Limitations.--The Administrator may 
                        only award additional grants under clause (i)--
                                    ``(I) during the 3rd and 4th 
                                quarters of the fiscal year; and
                                    ``(II) from unobligated amounts 
                                made available to the Administrator to 
                                carry out this section.
            ``(4) Notice and comment required.--The Administrator may 
        only make a change to the standards by which an eligible entity 
        obtains or maintains grants under this section, the standards 
        for accreditation, or any other requirement for the operation 
        of a women's business center if the Administrator first 
        provides notice and the opportunity for public comment, as set 
        forth in section 553(b) of title 5, United States Code, without 
        regard to any exceptions provided for under such section.''.
    (c) Conditions of Participation.--Section 29(c) of the Small 
Business Act (15 U.S.C. 656(c)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``the recipient organization'' and 
                inserting ``an eligible entity''; and
                    (B) by striking ``financial assistance'' and 
                inserting ``a grant'';
            (2) in paragraph (3)--
                    (A) by striking ``financial assistance authorized 
                pursuant to this section may be made by grant, 
                contract, or cooperative agreement and'' and inserting 
                ``grants authorized pursuant to this section''; and
                    (B) in the second sentence, by striking ``a 
                recipient organization'' and inserting ``an eligible 
                entity'';
            (3) in paragraph (4)--
                    (A) by striking ``recipient of assistance'' and 
                inserting ``eligible entity'';
                    (B) by striking ``during any project, it shall not 
                be eligible thereafter'' and inserting ``during any 
                project for 2 consecutive years, the eligible entity 
                shall not be eligible at any time after that 2-year 
                period'';
                    (C) by striking ``such organization'' and inserting 
                ``the eligible entity''; and
                    (D) by striking ``the recipient'' and inserting 
                ``the eligible entity''; and
            (4) by adding at end the following:
            ``(5) Separation of project and funds.--An eligible entity 
        shall--
                    ``(A) carry out a project under this section 
                separately from other projects, if any, of the eligible 
                entity; and
                    ``(B) separately maintain and account for any 
                grants under this section.
            ``(6) Examination of eligible entities.--
                    ``(A) Required site visit.--Each applicant, prior 
                to receiving a grant under this section, shall have a 
                site visit by an employee of the Administration, in 
                order to ensure that the applicant has sufficient 
                resources to provide the services for which the grant 
                is being provided.
                    ``(B) Annual review.--An employee of the 
                Administration shall--
                            ``(i) conduct an annual review of the 
                        compliance of each eligible entity receiving a 
                        grant under this section with the grant 
                        agreement, including a financial examination; 
                        and
                            ``(ii) provide such review to the eligible 
                        entity as required under subsection (l).
            ``(7) Remediation of problems.--
                    ``(A) Plan of action.--If a review of an eligible 
                entity under paragraph (6)(B) identifies any problems, 
                the eligible entity shall, within 45 calendar days of 
                receiving such review, provide the Assistant 
                Administrator with a plan of action, including specific 
                milestones, for correcting such problems.
                    ``(B) Plan of action review by the assistant 
                administrator.--The Assistant Administrator shall 
                review each plan of action submitted under subparagraph 
                (A) within 30 calendar days of receiving such plan 
                and--
                            ``(i) if the Assistant Administrator 
                        determines that such plan will bring the 
                        eligible entity into compliance with all the 
                        terms of the grant agreement, approve such 
                        plan;
                            ``(ii) if the Assistant Administrator 
                        determines that such plan is inadequate to 
                        remedy the problems identified in the annual 
                        review to which the plan of action relates, the 
                        Assistant Administrator shall set forth such 
                        reasons in writing and provide such 
                        determination to the eligible entity within 15 
                        calendar days of such determination.
                    ``(C) Amendment to plan of action.--An eligible 
                entity receiving a determination under subparagraph 
                (B)(ii) shall have 30 calendar days from the receipt of 
                the determination to amend the plan of action to 
                satisfy the problems identified by the Assistant 
                Administrator and resubmit such plan to the Assistant 
                Administrator.
                    ``(D) Amended plan review by the assistant 
                administrator.--Within 15 calendar days of the receipt 
                of an amended plan of action under subparagraph (C), 
                the Assistant Administrator shall either approve or 
                reject such plan and provide such approval or rejection 
                in writing to the eligible entity.
                    ``(E) Appeal of assistant administrator 
                determination.--
                            ``(i) In general.--If the Assistant 
                        Administrator rejects an amended plan under 
                        subparagraph (D), the eligible entity shall 
                        have the opportunity to appeal such decision to 
                        the Administrator, who may delegate such appeal 
                        to an appropriate officer of the 
                        Administration.
                            ``(ii) Opportunity for explanation.--Any 
                        appeal described under clause (i) shall provide 
                        an opportunity for the eligible entity to 
                        provide, in writing, an explanation of why the 
                        eligible entity's plan remedies the problems 
                        identified in the annual review.
                            ``(iii) Notice of determination.--The 
                        determination of the appeal shall be provided 
                        to the eligible entity, in writing, within 15 
                        calendar days from the eligible entity's filing 
                        of the appeal.
                            ``(iv) Effect of failure to act.--If the 
                        Administrator fails to act on an appeal made 
                        under this subparagraph within the 15 calendar 
                        day period specified under clause (iii), the 
                        eligible entity's amended plan of action 
                        submitted under subparagraph (C) shall be 
                        deemed to be approved.
            ``(8) Termination of grant.--
                    ``(A) In general.--The Administrator shall issue 
                regulations (after providing an opportunity for notice 
                and comment) to provide that, if an eligible entity 
                fails to comply with a plan of action approved by the 
                Assistant Administrator under paragraph (7)(B)(i) or an 
                amended plan of action approved by the Assistant 
                Administrator under paragraph (7)(D) or approved on 
                appeal under paragraph (7)(E), the Assistant 
                Administrator shall terminate the grant provided to the 
                eligible entity under this section.
                    ``(B) Appeal of termination.--An eligible entity 
                that has a grant terminated under subparagraph (A) 
                shall have the opportunity to challenge the termination 
                on the record and after an opportunity for a hearing.
                    ``(C) Final agency action.--The determination made 
                pursuant to subparagraph (B) shall be considered final 
                agency action for the purposes of chapter 7, title 5, 
                United States Code.''.
    (d) Submission of 5-year Plan.--Section 29(e) of the Small Business 
Act (15 U.S.C. 656(e)) is amended--
            (1) by striking ``applicant organization'' and inserting 
        ``eligible entity'';
            (2) by striking ``a recipient organization'' and inserting 
        ``an eligible entity'';
            (3) by striking ``financial assistance'' and inserting 
        ``grants''; and
            (4) by striking ``site''.
    (e) Applications and Criteria for Initial Grant.--Subsection (f) of 
section 29 of the Small Business Act (15 U.S.C. 656) is amended to read 
as follows:
    ``(f) Applications and Criteria for Initial Grant.--
            ``(1) Application.--Each eligible entity desiring a grant 
        under subsection (b) shall submit to the Administrator an 
        application that contains--
                    ``(A) a certification that the eligible entity--
                            ``(i) has designated an executive director 
                        or program manager, who may be compensated 
                        using grant funds under subsection (b) or other 
                        sources, to manage the women's business center 
                        for which a grant under subsection (b) is 
                        sought;
                            ``(ii) meets the accounting and reporting 
                        requirements established by the Director of the 
                        Office of Management and Budget;
                    ``(B) information demonstrating that the eligible 
                entity has the ability and resources to meet the needs 
                of the market to be served by the women's business 
                center, including the ability to obtain the non-Federal 
                contribution required under subsection (c);
                    ``(C) information relating to the assistance to be 
                provided by the women's business center in the area in 
                which the women's business center is located;
                    ``(D) information demonstrating the experience and 
                effectiveness of the eligible entity in--
                            ``(i) conducting the services described 
                        under subsection (a)(5);
                            ``(ii) providing training and services to a 
                        representative number of women who are socially 
                        or economically disadvantaged; and
                            ``(iii) working with resource partners of 
                        the Administration and other entities, such as 
                        universities; and
                    ``(E) a 5-year plan that describes the ability of 
                the eligible entity to provide the services described 
                under subsection (a)(3), including to a representative 
                number of women who are socially or economically 
                disadvantaged.
            ``(2) Review and approval of applications for initial 
        grants.--
                    ``(A) Review and selection of eligible entities.--
                            ``(i) In general.--The Administrator shall 
                        review applications to determine whether the 
                        applicant can meet obligations to perform the 
                        activities required by a grant under this 
                        section, including--
                                    ``(I) the experience of the 
                                applicant in conducting activities 
                                required by this section;
                                    ``(II) the amount of time needed 
                                for the applicant to commence 
                                operations should it be awarded a 
                                grant;
                                    ``(III) the capacity of the 
                                applicant to meet the accreditation 
                                standards established by the 
                                Administrator in a timely manner;
                                    ``(IV) the ability of the applicant 
                                to sustain operations for more than 5 
                                years (including its ability to obtain 
                                sufficient non-Federal funds for that 
                                period);
                                    ``(V) the location of the women's 
                                business center and its proximity to 
                                other grant recipients under this 
                                section; and
                                    ``(VI) the population density of 
                                the area to be served by the women's 
                                business center.
                            ``(ii) Selection criteria.--
                                    ``(I) Rulemaking.--The 
                                Administrator shall issue regulations 
                                (after providing an opportunity for 
                                notice and comment) to specify the 
                                criteria for review and selection of 
                                applicants under this subsection.
                                    ``(II) Modifications prohibited 
                                after announcement.--With respect to a 
                                public announcement of any opportunity 
                                to be awarded a grant under this 
                                section made by the Administrator 
                                pursuant to subsection (l)(1), the 
                                Administrator may not modify 
                                regulations issued pursuant to 
                                subclause (I) with respect to such 
                                opportunity unless required to do so by 
                                an Act of Congress or an order of a 
                                Federal court.
                                    ``(III) Rule of construction.--
                                Nothing in this clause may be construed 
                                as prohibiting the Administrator from 
                                modifying the regulations issued 
                                pursuant to subclause (I) (after 
                                providing an opportunity for notice and 
                                comment) as such regulations apply to 
                                an opportunity to be awarded a grant 
                                under this section that the 
                                Administrator has not yet publicly 
                                announced pursuant to subsection 
                                (l)(1).
                    ``(B) Record retention.--
                            ``(i) In general.--The Administrator shall 
                        maintain a copy of each application submitted 
                        under this subsection for not less than 5 
                        years.
                            ``(ii) Paperwork reduction.--The 
                        Administrator shall take steps to reduce, to 
                        the maximum extent practicable, the paperwork 
                        burden associated with carrying out clause 
                        (i).''.
    (f) Notification Requirements Under the Women's Business Center 
Program.--Section 29 of the Small Business Act (15 U.S.C. 656) is 
amended by inserting after subsection (k) the following:
    ``(l) Notification Requirements Under the Women's Business Center 
Program.--The Administrator shall provide--
            ``(1) a public announcement of any opportunity to be 
        awarded grants under this section, and such announcement shall 
        include the standards by which such award will be made, 
        including the regulations issued pursuant to subsection 
        (f)(2)(A)(ii);
            ``(2) the opportunity for any applicant for a grant under 
        this section that failed to obtain such a grant a debriefing 
        with the Assistant Administrator to review the reasons for the 
        applicant's failure; and
            ``(3) with respect to any site visit or evaluation of an 
        eligible entity receiving a grant under this section that is 
        carried out by an officer or employee of the Administration 
        (other than the Inspector General), a copy of the site visit 
        report or evaluation, as applicable, within 30 calendar days of 
        the completion of such vision or evaluation.''.
    (g) Continued Funding for Centers.--Section 29(m) of the Small 
Business Act (15 U.S.C. 656(m)) is amended--
            (1) by striking paragraph (3) and inserting the following:
            ``(3) Application and approval for continuation grants.--
                    ``(A) Solicitation of applications.--The 
                Administrator shall solicit applications and award 
                continuation grants under this subsection for the first 
                fiscal year beginning after the date of enactment of 
                this paragraph, and every third fiscal year thereafter.
                    ``(B) Contents of application.--Each eligible 
                entity desiring a grant under this subsection shall 
                submit to the Administrator an application that 
                contains--
                            ``(i) a certification that the applicant--
                                    ``(I) is an eligible entity;
                                    ``(II) has designated an executive 
                                director or program manager to manage 
                                the women's business center operated by 
                                the applicant; and
                                    ``(III) as a condition of receiving 
                                a grant under this subsection, agrees--
                                            ``(aa) to receive a site 
                                        visit as part of the final 
                                        selection process, at the 
                                        discretion of the 
                                        Administrator; and
                                            ``(bb) to remedy any 
                                        problem identified pursuant to 
                                        the site visit under item (aa);
                            ``(ii) 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 for which a grant under 
                        this subsection is sought, including the 
                        ability to obtain the non-Federal contribution 
                        required under paragraph (4)(C);
                            ``(iii) information relating to assistance 
                        to be provided by the women's business center 
                        in the geographic area served by the women's 
                        business center for which a grant under this 
                        subsection is sought;
                            ``(iv) information demonstrating that the 
                        applicant has worked with resource partners of 
                        the Administration and other entities;
                            ``(v) a 3-year plan that describes the 
                        services provided by the women's business 
                        center for which a grant under this subsection 
                        is sought--
                                    ``(I) to serve women who are 
                                business owners or potential business 
                                owners by conducting training and 
                                counseling activities; and
                                    ``(II) to provide training and 
                                services to a representative number of 
                                women who are socially or economically 
                                disadvantaged; and
                            ``(vi) any additional information that the 
                        Administrator may reasonably require.
                    ``(C) Review and approval of applications for 
                grants.--
                            ``(i) In general.--The Administrator--
                                    ``(I) shall review each application 
                                submitted under subparagraph (B), based 
                                on the information described in such 
                                subparagraph and the criteria set forth 
                                under clause (ii) of this subparagraph; 
                                and
                                    ``(II) as part of the final 
                                selection process, may, at the 
                                discretion of the Administrator, 
                                conduct a site visit to each women's 
                                business center for which a grant under 
                                this subsection is sought, in 
                                particular to evaluate the women's 
                                business center using the selection 
                                criteria described in clause (ii)(II).
                            ``(ii) Selection criteria.--
                                    ``(I) In general.--The 
                                Administrator shall evaluate applicants 
                                for grants under this subsection in 
                                accordance with selection criteria that 
                                are--
                                            ``(aa) established before 
                                        the date on which applicants 
                                        are required to submit the 
                                        applications;
                                            ``(bb) stated in terms of 
                                        relative importance; and
                                            ``(cc) publicly available 
                                        and stated in each solicitation 
                                        for applications for grants 
                                        under this subsection made by 
                                        the Administrator.
                                    ``(II) Required criteria.--The 
                                selection criteria for a grant under 
                                this subsection shall include--
                                            ``(aa) the total number of 
                                        entrepreneurs served by the 
                                        applicant;
                                            ``(bb) the total number of 
                                        new startup companies assisted 
                                        by the applicant;
                                            ``(cc) the percentage of 
                                        clients of the applicant that 
                                        are socially or economically 
                                        disadvantaged;
                                            ``(dd) the percentage of 
                                        individuals in the community 
                                        served by the applicant who are 
                                        socially or economically 
                                        disadvantaged;
                                            ``(ee) the successful 
                                        accreditation of the applicant 
                                        under the accreditation program 
                                        developed under subsection 
                                        (g)(5); and
                                            ``(ff) any additional 
                                        criteria that the Administrator 
                                        may reasonably require.
                            ``(iii) Conditions for continued funding.--
                        In determining whether to make a grant under 
                        this subsection, the Administrator--
                                    ``(I) shall consider the results of 
                                the most recent evaluation of the 
                                women's business center for which a 
                                grant under this subsection is sought, 
                                and, to a lesser extent, previous 
                                evaluations; and
                                    ``(II) may withhold a grant under 
                                this subsection, if the Administrator 
                                determines that the applicant has 
                                failed to provide the information 
                                required to be provided under this 
                                paragraph, or the information provided 
                                by the applicant is inadequate.
                    ``(D) Notification.--Not later than 60 calendar 
                days after the date of each deadline to submit 
                applications under this paragraph, the Administrator 
                shall approve or deny each submitted application and 
                notify the applicant for each such application of the 
                approval or denial.
                    ``(E) Record retention.--
                            ``(i) In general.--The Administrator shall 
                        maintain a copy of each application submitted 
                        under this paragraph for not less than 5 years.
                            ``(ii) Paperwork reduction.--The 
                        Administrator shall take steps to reduce, to 
                        the maximum extent practicable, the paperwork 
                        burden associated with carrying out clause 
                        (i).''; and
            (2) by striking paragraph (5) and inserting the following:
            ``(5) Award to previous recipients.--There shall be no 
        limitation on the number of times the Administrator may award a 
        grant to an applicant under this subsection.''.
    (h) Technical and Conforming Amendments.--Section 29 of the Small 
Business Act (15 U.S.C. 656) is amended--
            (1) in subsection (h)(2), by striking ``to award a contract 
        (as a sustainability grant) under subsection (l) or'';
            (2) in subsection (j)(1), by striking ``The 
        Administration'' and inserting ``Not later than November 1 of 
        each year, the Administrator'';
            (3) in subsection (k)--
                    (A) by striking paragraphs (1) and (4);
                    (B) by inserting before paragraph (2) the 
                following:
            ``(1) In general.--There are authorized to be appropriated 
        to the Administration to carry out this section, to remain 
        available until expended, $21,750,000 for each of fiscal years 
        2017 through 2020.''; and
                    (D) in paragraph (2), by striking subparagraph (B) 
                and inserting the following:
                    ``(B) Exceptions.--Of the amount made available 
                under this subsection for a fiscal year, the following 
                amounts shall be available for selection panel costs, 
                costs associated with maintaining an accreditation 
                program, and post-award conference costs:
                            ``(i) For the first fiscal year beginning 
                        after the date of the enactment of this 
                        subparagraph, 2.65 percent.
                            ``(ii) For the second fiscal year beginning 
                        after the date of the enactment of this 
                        subparagraph and each fiscal year thereafter 
                        through fiscal year 2020, 2.5 percent.''; and
            (4) in subsection (m)--
                    (A) in paragraph (2), by striking ``subsection (b) 
                or (l)'' and inserting ``this subsection or subsection 
                (b)''; and
                    (B) in paragraph (4)(D), by striking ``or 
                subsection (l)''.
    (i) Effect on Existing Grants.--
            (1) Terms and conditions.--A nonprofit organization 
        receiving a grant under section 29(m) of the Small Business Act 
        (15 U.S.C. 656(m)), as in effect on the day before the date of 
        enactment of this Act, shall continue to receive the grant 
        under the terms and conditions in effect for the grant on the 
        day before the date of enactment of this Act, except that the 
        nonprofit organization may not apply for a continuation of the 
        grant under section 29(m)(5) of the Small Business Act (15 
        U.S.C. 656(m)(5)), as in effect on the day before the date of 
        enactment of this Act.
            (2) Length of continuation grant.--The Administrator of the 
        Small Business Administration may award a grant under section 
        29(m) of the Small Business Act to a nonprofit organization 
        receiving a grant under section 29(m) of the Small Business Act 
        (15 U.S.C. 656(m)), as in effect on the day before the date of 
        enactment of this Act, for the period--
                    (A) beginning on the day after the last day of the 
                grant agreement under such section 29(m); and
                    (B) ending at the end of the third fiscal year 
                beginning after the date of enactment of this Act.

SEC. 204. MATCHING REQUIREMENTS UNDER WOMEN'S BUSINESS CENTER PROGRAM.

    (a) In General.--Section 29(c) of the Small Business Act (15 U.S.C. 
656(c)), as amended by section 204 of this Act, is amended--
            (1) in paragraph (1), by striking ``As a condition'' and 
        inserting ``Subject to paragraph (6), as a condition''; and
            (2) by adding at the end the following:
            ``(9) Waiver of non-federal share.--
                    ``(A) In general.--Upon request by an eligible 
                entity, and in accordance with this paragraph, the 
                Administrator may waive, in whole or in part, the 
                requirement to obtain non-Federal funds under this 
                subsection for counseling and training activities of 
                the eligible entity carried out using a grant under 
                this section for a fiscal year. The Administrator may 
                not waive the requirement for an eligible entity to 
                obtain non-Federal funds under this paragraph for more 
                than a total of 2 consecutive fiscal years.
                    ``(B) Considerations.--In determining whether to 
                waive the requirement to obtain non-Federal funds under 
                this paragraph, the Administrator shall consider--
                            ``(i) the economic conditions affecting the 
                        eligible entity;
                            ``(ii) the impact a waiver under this 
                        paragraph would have on the credibility of the 
                        Women's Business Center Program under this 
                        section;
                            ``(iii) the demonstrated ability of the 
                        eligible entity to raise non-Federal funds; and
                            ``(iv) the performance of the eligible 
                        entity.
                    ``(C) Limitation.--The Administrator may not waive 
                the requirement to obtain non-Federal funds under this 
                paragraph if granting the waiver would undermine the 
                credibility of the Women's Business Center Program.
            ``(10) Solicitation.--Notwithstanding any other provision 
        of law, eligible entity may--
                    ``(A) solicit cash and in-kind contributions from 
                private individuals and entities to be used to carry 
                out the activities of the eligible entity under the 
                project conducted under this section; and
                    ``(B) use amounts made available by the 
                Administrator under this section for the cost of such 
                solicitation and management of the contributions 
                received.
            ``(11) Excess non-federal dollars.--The amount of non-
        Federal dollars obtained by an eligible entity that is above 
        the amount that is required to be obtained by the eligible 
        entity under this subsection shall not be subject to the 
        requirements of part 200 of title 2, Code of Federal 
        Regulations, or any successor thereto, if such amount of non-
        Federal dollars--
                    ``(A) is not used as matching funds for purposes of 
                implementing the Women's Business Center Program; and
                    ``(B) was not obtained using funds from the Women's 
                Business Center Program.''.
    (b) Regulations.--
            (1) In general.--The Administrator of Small Business 
        Administration shall--
                    (A) except as provided in paragraph (2), and not 
                later than 270 days after the date of enactment of this 
                Act, publish in the Federal Register proposed 
                regulations by the Administrator to carry out the 
                amendments made to section 29 of the Small Business Act 
                (15 U.S.C. 656) by this title; and
                    (B) accept public comments on such proposed 
                regulations for not less than 60 days.
            (2) Existing proposed regulations.--Paragraph (1)(A) shall 
        not apply to the extent proposed regulations by the 
        Administrator have been published on the date of enactment of 
        this Act that are sufficient to carry out the amendments made 
        to section 29 of the Small Business Act (15 U.S.C. 656) by this 
        title.

                TITLE III--SCORE PROGRAM REAUTHORIZATION

SEC. 301. SHORT TITLE.

    This title may be cited as the ``SCORE for Small Business Act of 
2016''.

SEC. 302. SCORE REAUTHORIZATION.

    Section 20 of the Small Business Act (15 U.S.C. 631 note) is 
amended--
            (1) by redesignating subsection (j) as subsection (f); and
            (2) by adding at the end the following:
    ``(g) SCORE Program.--There are authorized to be appropriated to 
the Administrator to carry out the SCORE program authorized by section 
8(b)(1) such sums as are necessary for the Administrator to make grants 
or enter into cooperative agreements in a total amount that does not 
exceed $10,500,000 in each of fiscal years 2017 and 2018.''.

SEC. 303. SCORE PROGRAM.

    Section 8 of the Small Business Act (15 U.S.C. 637) is amended--
            (1) in subsection (b)(1)(B), by striking ``a Service Corps 
        of Retired Executives (SCORE)'' and inserting ``the SCORE 
        program described in subsection (c)''; and
            (2) by striking subsection (c) and inserting the following:
    ``(c) SCORE Program.--
            ``(1) Definition.--In this subsection:
                    ``(A) SCORE association.--The term `SCORE 
                Association' means the Service Corps of Retired 
                Executives Association or any successor or other 
                organization who receives a grant from the 
                Administrator to operate the SCORE program under 
                paragraph (2)(A).
                    ``(B) SCORE program.--The term `SCORE program' 
                means the SCORE program authorized by subsection 
                (b)(1)(B).
            ``(2) Management and volunteers.--
                    ``(A) In general.--The Administrator shall provide 
                a grant to the SCORE Association to manage the SCORE 
                program.
                    ``(B) Volunteers.--A volunteer participating in the 
                SCORE program shall--
                            ``(i) based on the business experience and 
                        knowledge of the volunteer--
                                    ``(I) provide at no cost to 
                                individuals who own, or aspire to own, 
                                small business concerns personal 
                                counseling, mentoring, and coaching 
                                relating to the process of starting, 
                                expanding, managing, buying, and 
                                selling a business; and
                                    ``(II) facilitate low-cost 
                                education workshops for individuals who 
                                own, or aspire to own, small business 
                                concerns; and
                            ``(ii) as appropriate, use tools, 
                        resources, and expertise of other organizations 
                        to carry out the SCORE program.
            ``(3) Plans and goals.--The Administrator, in consultation 
        with the SCORE Association, shall ensure that the SCORE program 
        and each chapter of the SCORE program develop and implement 
        plans and goals to more effectively and efficiently provide 
        services to individuals in rural areas, economically 
        disadvantaged communities, and other traditionally underserved 
        communities, including plans for electronic initiatives, web-
        based initiatives, chapter expansion, partnerships, and the 
        development of new skills by volunteers participating in the 
        SCORE program.
            ``(4) Annual report.--The SCORE Association shall submit to 
        the Administrator an annual report that contains--
                    ``(A) the number of individuals counseled or 
                trained under the SCORE program;
                    ``(B) the number of hours of counseling provided 
                under the SCORE program; and
                    ``(C) to the extent possible--
                            ``(i) the number of small business concerns 
                        formed with assistance from the SCORE program;
                            ``(ii) the number of small business 
                        concerns expanded with assistance from the 
                        SCORE program; and
                            ``(iii) the number of jobs created with 
                        assistance from the SCORE program.
            ``(5) Privacy requirements.--
                    ``(A) In general.--Neither the Administrator nor 
                the SCORE Association may disclose the name, address, 
                or telephone number of any individual or small business 
                concern receiving assistance from the SCORE Association 
                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 determines such a 
                        disclosure to be necessary for the purpose of 
                        conducting a financial audit of the SCORE 
                        program, in which case disclosure shall be 
                        limited to the information necessary for the 
                        audit.
                    ``(B) Administrator use of information.--This 
                paragraph shall not--
                            ``(i) restrict the access of the 
                        Administrator to program activity data; or
                            ``(ii) prevent the Administrator from using 
                        client information to conduct client surveys.
                    ``(C) Regulations.--
                            ``(i) In general.--The Administrator shall 
                        issue regulations to establish standards for--
                                    ``(I) disclosures with respect to 
                                financial audits under subparagraph 
                                (A)(ii); and
                                    ``(II) conducting client surveys, 
                                including standards for oversight of 
                                the surveys and for dissemination and 
                                use of client information.
                            ``(ii) Maximum privacy protection.--The 
                        regulations issued under this subparagraph 
                        shall, to the extent practicable, provide for 
                        the maximum amount of privacy protection.''.

SEC. 304. ONLINE COMPONENT.

    (a) In General.--Section 8(c) of the Small Business Act, as added 
by section 303, is further amended by adding at the end the following:
            ``(6) Online component.--In carrying out this subsection, 
        the SCORE Association shall make use of online counseling, 
        including by developing and implementing webinars and an 
        electronic mentoring platform to expand access to services 
        provided under this subsection and to further support 
        entrepreneurs.''.
    (b) Online Component Report.--
            (1) In general.--At the end of fiscal year 2018, the SCORE 
        Association shall issue a report to the Committee on Small 
        Business of the House of Representatives and the Committee on 
        Small Business and Entrepreneurship of the Senate on the 
        effectiveness of the online counseling and webinars required as 
        part of the SCORE program, including--
                    (A) how the SCORE Association determines electronic 
                mentoring and webinar needs, develops training for 
                electronic mentoring, establishes webinar criteria 
                curricula, and evaluates webinar and electronic 
                mentoring results;
                    (B) describing the internal controls that are used 
                and a summary of the topics covered by the webinars; 
                and
                    (C) performance metrics, including the number of 
                small business concerns counseled by, the number of 
                small business concerns created by, the number of jobs 
                created and retained by, and the funding amounts 
                directed towards such online counseling and webinars.
            (2) Definitions.--For purposes of this subsection, the 
        terms ``SCORE Association'' and ``SCORE program'' have the 
        meaning given those terms, respectively, under section 8(c)(1) 
        of the Small Business Act (15 U.S.C. 637(c)(1)).

SEC. 305. STUDY AND REPORT ON THE FUTURE ROLE OF THE SCORE PROGRAM.

    (a) Study.--The SCORE Association shall carry out a study on the 
future role of the SCORE program and develop a strategic plan for how 
the SCORE program will evolve to meet the needs of America's 
entrepreneurs over the course of the next 5 years, with markers and 
specific objectives for year 1, year 3, and year 5.
    (b) Report.--Not later than the end of the 6-month period beginning 
on the date of the enactment of this Act, the SCORE Association shall 
issue a report to the Committee on Small Business of the House of 
Representatives and the Committee on Small Business and 
Entrepreneurship of the Senate containing--
            (1) all findings and determination made in carrying out the 
        study required under subsection (a);
            (2) the strategic plan developed under subsection (a);
            (3) an explanation of how the SCORE Association plans to 
        achieve the strategic plan, assuming both stagnant and 
        increased funding levels.
    (c) Definitions.--For purposes of this section, the terms ``SCORE 
Association'' and ``SCORE program'' have the meaning given those terms, 
respectively, under section 8(c)(1) of the Small Business Act (15 
U.S.C. 637(c)(1)).

SEC. 306. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Small Business Act.--The Small Business Act (15 U.S.C. 631 et 
seq.) is amended--
            (1) in section 7(m)(3)(A)(i)(VIII) (15 U.S.C. 
        636(m)(3)(A)(i)(VIII)), by striking ``Service Corps of Retired 
        Executives'' and inserting ``SCORE program''; and
            (2) in section 22 (15 U.S.C. 649)--
                    (A) in subsection (b)--
                            (i) in paragraph (1), by striking ``Service 
                        Corps of Retired Executives'' and inserting 
                        ``SCORE program''; and
                            (ii) in paragraph (3), by striking 
                        ``Service Corps of Retired Executives'' and 
                        inserting ``SCORE program''; and
                    (B) in subsection (c)(12), by striking ``Service 
                Corps of Retired Executives'' and inserting ``SCORE 
                program''.
    (b) Other Laws.--
            (1) Section 621 of the Children's Health Insurance Program 
        Reauthorization Act of 2009 (15 U.S.C. 657p) is amended--
                    (A) in subsection (a), by striking paragraph (4) 
                and inserting the following:
            ``(4) the term `SCORE program' means the SCORE program 
        authorized by section 8(b)(1)(B) of the Small Business Act (15 
        U.S.C. 637(b)(1)(B));''; and
                    (B) in subsection (b)(4)(A)(iv), by striking 
                ``Service Corps of Retired Executives'' and inserting 
                ``SCORE program''.
            (2) Section 337(d)(2)(A) of the Energy Policy and 
        Conservation Act (42 U.S.C. 6307(d)(2)(A)) is amended by 
        striking ``Service Corps of Retired Executives (SCORE)'' and 
        inserting ``SCORE program''.
            Amend the title so as to read: ``A bill to make 
        improvements to Small Business Development Centers, to 
        reauthorize the Women's Business Center Program, to reauthorize 
        the SCORE Program, and for other purposes.''.
                                                 Union Calendar No. 406

114th CONGRESS

  2d Session

                               H. R. 207

                          [Report No. 114-526]

_______________________________________________________________________

                                 A BILL

 To amend the Small Business Act to provide for improvements to small 
                     business development centers.

_______________________________________________________________________

                             April 26, 2016

Reported with amendments, committed to the Committee of the Whole House 
          on the State of the Union, and ordered to be printed