[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4407 Reported in House (RH)]

<DOC>





                                                 Union Calendar No. 192
116th CONGRESS
  1st Session
                                H. R. 4407

                          [Report No. 116-241]

 To amend the Small Business Act to reauthorize the SCORE program, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 19, 2019

 Mr. Kevin Hern of Oklahoma (for himself and Ms. Craig) introduced the 
 following bill; which was referred to the Committee on Small Business

                            October 17, 2019

     Additional sponsors: Mr. Hagedorn, Mr. Evans, and Ms. Houlahan

                            October 17, 2019

Committed to the Committee of the Whole House on the State of the Union 
                       and ordered to be printed

_______________________________________________________________________

                                 A BILL


 
 To amend the Small Business Act to reauthorize the SCORE program, and 
                          for other purposes.


 


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

SECTION 1. SHORT TITLE.

    This title may be cited as the ``SCORE for Small Business Act of 
2019''.

SEC. 2. SCORE PROGRAM PROVISIONS AND REQUIREMENTS.

    Section 8 of the Small Business Act (15 U.S.C. 637) is amended--
            (1) in subsection (b)(1)(B)--
                    (A) by striking ``a Service Corps of Retired 
                Executives (SCORE)'' and inserting ``the SCORE program 
                described in subsection (c)''; and
                    (B) by striking ``SCORE may'' and inserting ``the 
                SCORE Association (as defined in subsection (c)) may''; 
                and
            (2) by striking subsection (c) and inserting the following:
    ``(c) SCORE Program.--
            ``(1) Definitions.--In this subsection:
                    ``(A) SCORE association.--The term `SCORE 
                Association' means the Service Corps of Retired 
                Executives Association or any successor or other 
                organization that enters into a cooperative agreement 
                (as described under paragraph (2)) with the 
                Administrator to operate the SCORE program.
                    ``(B) SCORE foundation.--The term `SCORE 
                Foundation' means an organization with a mission to 
                support the SCORE Association and volunteers of the 
                SCORE program.
                    ``(C) SCORE program.--The term `SCORE program' 
                means the SCORE program authorized by subsection 
                (b)(1)(B).
            ``(2) Cooperative agreement.--The Administrator shall enter 
        into a cooperative agreement with the SCORE Association to 
        carry out the SCORE program, which shall include the following 
        requirements:
                    ``(A) Administrator duties.--The Administrator 
                shall--
                            ``(i) conduct an annual financial 
                        examination of the SCORE Association to ensure 
                        that any costs paid for with Federal funds are 
                        allowable, allocable, and reasonable;
                            ``(ii) for contracts entered into by the 
                        SCORE Association to provide goods or services 
                        for the SCORE program of a value greater than 
                        an amount determined by the Administrator, 
                        review and approve such contracts;
                            ``(iii) establish a system through which 
                        the SCORE Association can provide documentation 
                        relating to such contracts; and
                            ``(iv) within 30 days of the receipt of a 
                        quarterly report on the achievements of the 
                        SCORE program submitted by the SCORE 
                        Association, reconcile and differences between 
                        such report and the performance results of the 
                        SCORE program reported in a management 
                        information system of the Office of 
                        Entrepreneurial Development.
                    ``(B) SCORE association duties.--The SCORE 
                Association shall--
                            ``(i) manage nationwide chapters of the 
                        SCORE program;
                            ``(ii) develop guidance and provide annual 
                        training to employees of the SCORE Association 
                        on generating and using program income from the 
                        SCORE program;
                            ``(iii) submit documentation to the 
                        Administrator verifying such annual training is 
                        completed;
                            ``(iv) separate funds donated to the SCORE 
                        Association from program income and funds 
                        received pursuant to a cooperative agreement; 
                        and
                            ``(v) establish requirements for volunteers 
                        participating in the SCORE program, including 
                        requirements that each such volunteer shall--
                                    ``(I) based on the business 
                                experience and knowledge of the 
                                volunteer--
                                            ``(aa) provide personal 
                                        counseling, mentoring, and 
                                        coaching on the process of 
                                        starting, expanding, managing, 
                                        buying, and selling a business 
                                        at no cost to individuals who 
                                        own, or aspire to own, small 
                                        business concerns; and
                                            ``(bb) facilitate free or 
                                        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.
                    ``(C) Joint duties.--The Administrator, in 
                consultation with the SCORE Association, shall ensure 
                that the SCORE program and each chapter of the SCORE 
                program--
                            ``(i) develop and implement plans and goals 
                        to more effectively and efficiently provide 
                        services to individuals in rural areas, 
                        economically disadvantaged communities, or 
                        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; and
                            ``(ii) reinforce an inclusive culture by 
                        recruiting diverse volunteers for the chapters 
                        of the SCORE program.
            ``(3) 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.
            ``(4) Accounting.--Not later than 6 months after the date 
        of the enactment of this subsection, the SCORE Association 
        shall--
                    ``(A) centralize all accounting and finance systems 
                of each chapter of the SCORE program and develop a 
                uniform policy and procedures to manage Federal funds; 
                and
                    ``(B) designate an employee of the SCORE 
                Association to serve as a compliance officer to ensure 
                expenditures of the SCORE program are fully compliant 
                with any law, regulation, or cooperative agreement 
                relating to the SCORE program.
            ``(5) Compensation.--
                    ``(A) Salaries.--The salary of an employee of the 
                SCORE Association may not exceed the equivalent of the 
                maximum rate of pay allowable for an individual in the 
                career Senior Executive Service employed at the Small 
                Business Administration.
                    ``(B) Performance awards.--The SCORE Association 
                may spend up to 1.5 percent of the aggregate salaries 
                of employees of the SCORE Association on individual 
                performance awards to employees of the SCORE 
                Association, to be disbursed before the last day of the 
                fiscal year, if not later than 60 days before 
                disbursement the SCORE Association submits to the 
                Administrator a report on the number and amount of such 
                awards to be disbursed.
                    ``(C) SCORE foundation.--A member of the Board of 
                Directors of the SCORE Association or an employee of 
                the SCORE Association may not simultaneously serve on 
                the Board of Directors of, or receive compensation 
                from, the SCORE Foundation without written approval 
                from the Administrator.
            ``(6) Whistleblower protection requirements.--The SCORE 
        Association shall--
                    ``(A) annually update all manuals or other 
                documents applicable to employees and volunteers of the 
                SCORE Association or the SCORE program to include 
                requirements relating to reporting procedures and 
                protectors for whistleblowers; and
                    ``(B) conduct an annual training for employees and 
                volunteers of the SCORE Association or the SCORE 
                program on the requirements described in paragraph (1) 
                and emphasize the use of the hotline established by the 
                Office of the Inspector General of the Small Business 
                Administration to submit whistleblower reports.
            ``(7) Published materials.--The SCORE Association shall 
        ensure all published materials include written acknowledgment 
        of Small Business Administration support of the SCORE program 
        if such materials are paid for in whole or in part by Federal 
        funds.
            ``(8) 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 SCORE program activity data; 
                        or
                            ``(ii) prevent the Administrator from using 
                        SCORE program client information to conduct 
                        client surveys.
                    ``(C) Standards.--
                            ``(i) In general.--The Administrator shall, 
                        after the opportunity for notice and comment, 
                        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 
                        standards issued under this subparagraph shall, 
                        to the extent practicable, provide for the 
                        maximum amount of privacy protection.
            ``(9) Annual report.--Not later than 180 days after the 
        date of the enactment of this subsection and annually 
        thereafter, the Administrator 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 on the performance and effectiveness of the SCORE 
        program, which may be included as part of another report 
        submitted to such Committees by the Administrator, and which 
        shall include--
                    ``(A) the number of individuals counseled or 
                trained under the SCORE program;
                    ``(B) the number of hours of counseling provided 
                under the SCORE program;
                    ``(C) the number of local workshops;
                    ``(D) the number of clients attending online and 
                local workshops;
                    ``(E) the number of unique clients served;
                    ``(F) to the extent practicable, the demographics 
                of SCORE program participants and volunteers, which 
                shall include the gender, race, and age of each such 
                participant or volunteer;
                    ``(G) the cost to create a job, the cost to create 
                a business, and return on investment;
                    ``(H) the number of referrals to other resources 
                and programs of the Administration;
                    ``(I) the number of participants in the SCORE 
                program receiving financial assistance, including the 
                type and dollar amount, under loan programs of the 
                Administration;
                    ``(J) the results of SCORE program participant 
                satisfactory surveys, including a summary of any 
                comments received from such participants;
                    ``(K) the number of new businesses started up by 
                SCORE program participants;
                    ``(L) the number of such new businesses realizing 
                revenue growth;
                    ``(M) to the extent practicable, the number of jobs 
                created with assistance from the SCORE program;
                    ``(N) the total cost of the SCORE program;
                    ``(O) any recommendations of the Administrator to 
                improve the SCORE program; and
                    ``(P) an explanation of how the SCORE program has 
                been integrated with other resource partners and 
                related resources of the Administration.''.

SEC. 3. AUTHORIZATION OF APPROPRIATIONS FOR THE SCORE PROGRAM.

    Section 20 of the Small Business Act (15 U.S.C. 631 note) is 
amended by adding at the end the following new subsection:
    ``(h) 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 $11,700,000 in each of fiscal years 2020, 2021, and 2022.''.

SEC. 4. REPORTING REQUIREMENTS.

    (a) Study and Report on the Future Role of the SCORE Program.--
            (1) 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 meet the needs of small 
        business concerns during the 5-year period beginning on the 
        date of the enactment of this Act, with specific objectives for 
        the first, third, and fifth years of the 5-year period.
            (2) 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 submit to the Committee on Small Business of 
        the House of Representatives and the Committee on Small 
        Business and Entrepreneurship of the Senate a report 
        containing--
                    (A) all findings and determination made in carrying 
                out the study required under paragraph (1);
                    (B) the strategic plan developed under paragraph 
                (1); and
                    (C) an explanation of how the SCORE Association 
                plans to achieve the strategic plan, assuming both 
                stagnant and increased funding levels.
    (b) Administrator Report on Leased Space.--The Administrator of the 
Small Business Administration shall submit to the Committee on Small 
Business of the House of Representatives and the Committee on Small 
Business and Entrepreneurship of the Senate a report containing an 
assessment of the cost of leased space that is donated to the SCORE 
Association.
    (c) Online Component Report.--Before the last day of fiscal year 
2020, the SCORE Association shall submit to the Committee on Small 
Business of the House of Representatives and the Committee on Small 
Business and Entrepreneurship of the Senate a report on the 
effectiveness of the online counseling and webinars required under 
paragraph (3) of section 8(c) of the Small Business Act, as added by 
section 2 of this Act, including a description of--
            (1) 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;
            (2) the internal controls that are used and a summary of 
        the topics covered by the webinars; and
            (3) 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.

SEC. 5. 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 (15 U.S.C. 636)--
                    (A) in subsection (b)(12)--
                            (i) in the paragraph heading, by inserting 
                        ``program'' after ``SCORE''; and
                            (ii) in subparagraph (A), by striking 
                        ``Service Corps of Retired Executives'' and 
                        inserting ``SCORE program''; and
                    (B) in subsection (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) Small business reauthorization act of 1997.--Section 
        707 of the Small Business Reauthorization Act of 1997 (15 
        U.S.C. 631 note) is amended by striking ``Service Corps of 
        Retired Executives (SCORE) program'' and inserting ``SCORE 
        program (as defined in section 8(c)(1) of the Small Business 
        Act)''.
            (2) Veterans entrepreneurship and small business 
        development act of 1999.--Section 301 of the Veterans 
        Entrepreneurship and Small Business Development Act of 1999 (15 
        U.S.C. 657b note) is amended by striking ``Service Core of 
        Retired Executives'' and inserting ``SCORE program''.
            (3) Military reservist and veteran small business 
        reauthorization and opportunity act of 2008.--Section 3(5) of 
        the Military Reservist and Veteran Small Business 
        Reauthorization and Opportunity Act of 2008 (15 U.S.C. 636 
        note) is amended by striking ``the Service Corps of Retired 
        Executives'' and inserting ``the SCORE program''.
            (4) Children's health insurance program reauthorization act 
        of 2009.--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''.
            (5) Energy policy and conservation act.--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''.

SEC. 6. DEFINITIONS.

    In this Act:
            (1) Administration; administrator.--The terms 
        ``Administration'' and ``Administrator'' mean, respectively, 
        the Small Business Administration and the Administrator 
        thereof.
            (2) SCORE association; score program.--The terms ``SCORE 
        Association'' and ``SCORE program'' have the meaning given 
        those terms, respectively, under section 8(c)(1) of the Small 
        Business Act, as added by section 2 of this Act.
                                                 Union Calendar No. 192

116th CONGRESS

  1st Session

                               H. R. 4407

                          [Report No. 116-241]

_______________________________________________________________________

                                 A BILL

 To amend the Small Business Act to reauthorize the SCORE program, and 
                          for other purposes.

_______________________________________________________________________

                            October 17, 2019

Committed to the Committee of the Whole House on the State of the Union 
                       and ordered to be printed