[Congressional Record Volume 143, Number 132 (Monday, September 29, 1997)]
[House]
[Pages H8102-H8113]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   SMALL BUSINESS PROGRAMS REAUTHORIZATION AND AMENDMENTS ACT OF 1997

  The SPEAKER pro tempore. The pending business is the question de novo 
of suspending the rules and passing the bill, H.R. 2261, as amended.
  The Clerk read the title of the bill.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Missouri [Mr. Talent] that the House suspend the rules 
and pass the bill, H.R. 2261, as amended.
  The question was taken.


                             Recorded Vote

  Ms. JACKSON-LEE of Texas. Mr. Speaker, I demand a recorded vote.
  A recorded vote was ordered.
  The SPEAKER pro tempore. This will be a 5-minute vote.
  The vote was taken by electronic device, and there were--ayes 397, 
noes 17, not voting 19, as follows:

                             [Roll No. 463]

                               AYES--397

     Abercrombie
     Ackerman
     Aderholt
     Allen
     Andrews
     Archer
     Armey
     Bachus
     Baesler
     Baker
     Baldacci
     Ballenger
     Barcia
     Barrett (NE)
     Barrett (WI)
     Bartlett
     Barton
     Bass
     Bateman
     Becerra
     Bentsen
     Bereuter
     Berman
     Berry
     Bilbray
     Bilirakis
     Bishop
     Blagojevich
     Bliley
     Blumenauer
     Blunt
     Boehlert
     Boehner
     Bonilla
     Bonior
     Bono
     Borski
     Boswell
     Boucher
     Boyd
     Brady
     Brown (CA)
     Brown (FL)
     Brown (OH)
     Bryant
     Bunning
     Burr
     Burton
     Buyer
     Callahan
     Calvert
     Camp
     Cannon
     Capps
     Cardin
     Carson
     Castle
     Chabot
     Chambliss
     Chenoweth
     Christensen
     Clay
     Clayton
     Clement
     Clyburn
     Coble
     Coburn
     Collins
     Combest
     Condit
     Cook
     Costello
     Coyne
     Cramer
     Crane
     Crapo
     Cubin
     Cummings
     Cunningham
     Danner
     Davis (FL)
     Davis (IL)
     Davis (VA)
     Deal
     DeFazio
     DeGette
     Delahunt
     DeLauro
     DeLay
     Dellums
     Deutsch
     Diaz-Balart
     Dickey
     Dicks
     Dingell
     Dixon
     Doggett
     Dooley
     Doolittle
     Doyle
     Duncan
     Dunn
     Edwards
     Ehlers
     Ehrlich
     Emerson
     Engel
     English
     Ensign
     Eshoo
     Etheridge
     Evans
     Everett
     Ewing
     Farr
     Fawell
     Fazio
     Filner
     Forbes
     Ford
     Fowler
     Fox
     Franks (NJ)
     Frelinghuysen
     Frost
     Furse
     Gallegly
     Ganske
     Gejdenson
     Gekas
     Gibbons
     Gilchrest
     Gillmor
     Gilman
     Goode
     Goodlatte
     Goodling
     Gordon
     Goss
     Graham
     Granger
     Green
     Greenwood
     Gutierrez
     Gutknecht
     Hall (OH)
     Hall (TX)
     Hamilton
     Hansen
     Hastert
     Hastings (FL)
     Hayworth
     Hefley
     Herger
     Hill
     Hilleary
     Hilliard
     Hinojosa
     Hobson
     Hoekstra
     Holden
     Hooley
     Horn
     Houghton
     Hoyer
     Hulshof
     Hunter
     Hutchinson
     Hyde
     Inglis
     Istook
     Jackson (IL)
     Jackson-Lee (TX)
     Jefferson
     Jenkins
     John
     Johnson (CT)
     Johnson (WI)
     Johnson, E. B.
     Johnson, Sam
     Kanjorski
     Kaptur
     Kasich
     Kelly
     Kennedy (MA)
     Kennedy (RI)
     Kennelly
     Kildee
     Kilpatrick
     Kim
     Kind (WI)
     King (NY)
     Kingston
     Kleczka
     Klink
     Klug
     Knollenberg
     Kolbe
     Kucinich
     LaFalce
     LaHood
     Lampson
     Lantos
     Largent
     Latham
     LaTourette
     Lazio
     Leach
     Levin
     Lewis (CA)
     Lewis (GA)
     Lewis (KY)
     Linder
     Lipinski
     Livingston
     LoBiondo
     Lofgren
     Lowey
     Lucas
     Luther
     Maloney (CT)
     Maloney (NY)
     Manton
     Manzullo
     Markey
     Martinez
     Mascara
     Matsui
     McCarthy (MO)
     McCarthy (NY)
     McCollum
     McCrery
     McDade
     McDermott
     McGovern
     McHale
     McHugh
     McInnis
     McIntyre
     McKeon
     McKinney
     McNulty
     Meehan
     Meek
     Menendez
     Metcalf
     Mica
     Millender-McDonald
     Miller (CA)
     Minge
     Mink
     Moakley
     Mollohan
     Moran (KS)
     Moran (VA)
     Morella
     Murtha
     Myrick
     Nadler
     Nethercutt
     Ney
     Northup
     Norwood
     Nussle
     Oberstar
     Obey
     Olver
     Ortiz
     Owens
     Oxley
     Packard
     Pallone
     Pappas
     Parker
     Pascrell
     Pastor
     Paxon
     Payne
     Pease
     Pelosi
     Peterson (MN)
     Peterson (PA)
     Petri
     Pickering
     Pickett
     Pitts

[[Page H8103]]


     Pombo
     Pomeroy
     Porter
     Portman
     Poshard
     Price (NC)
     Pryce (OH)
     Radanovich
     Rahall
     Ramstad
     Redmond
     Regula
     Reyes
     Riggs
     Riley
     Rivers
     Rodriguez
     Roemer
     Rogan
     Rogers
     Ros-Lehtinen
     Rothman
     Roybal-Allard
     Rush
     Ryun
     Sabo
     Salmon
     Sanchez
     Sanders
     Sandlin
     Sawyer
     Saxton
     Scarborough
     Schaefer, Dan
     Schaffer, Bob
     Schumer
     Scott
     Sensenbrenner
     Serrano
     Sessions
     Shadegg
     Shaw
     Shays
     Sherman
     Shimkus
     Shuster
     Sisisky
     Skaggs
     Skeen
     Skelton
     Slaughter
     Smith (MI)
     Smith (NJ)
     Smith (OR)
     Smith (TX)
     Smith, Adam
     Smith, Linda
     Snowbarger
     Snyder
     Solomon
     Souder
     Spence
     Spratt
     Stabenow
     Stark
     Stearns
     Stokes
     Strickland
     Stupak
     Sununu
     Talent
     Tanner
     Tauscher
     Tauzin
     Taylor (MS)
     Taylor (NC)
     Thomas
     Thompson
     Thornberry
     Thune
     Thurman
     Tiahrt
     Tierney
     Torres
     Towns
     Traficant
     Turner
     Upton
     Velazquez
     Vento
     Visclosky
     Walsh
     Wamp
     Waters
     Watt (NC)
     Watts (OK)
     Waxman
     Weldon (FL)
     Weldon (PA)
     Weller
     Wexler
     Weygand
     White
     Whitfield
     Wicker
     Wise
     Wolf
     Woolsey
     Wynn
     Yates
     Young (AK)

                                NOES--17

     Barr
     Campbell
     Canady
     Cox
     Dreier
     Hastings (WA)
     Hostettler
     Jones
     McIntosh
     Miller (FL)
     Neumann
     Paul
     Rohrabacher
     Roukema
     Royce
     Sanford
     Stump

                             NOT VOTING--19

     Conyers
     Cooksey
     Fattah
     Flake
     Foglietta
     Foley
     Frank (MA)
     Gephardt
     Gonzalez
     Harman
     Hefner
     Hinchey
     Neal
     Quinn
     Rangel
     Schiff
     Stenholm
     Watkins
     Young (FL)

                              {time}  1840

  So (two-thirds having voted in favor thereof) the rules were 
suspended and the bill, as amended, was passed.
  The result of the vote was announced as above recorded.
  A motion to reconsider was laid upon the table.
  Mr. TALENT. Mr. Speaker, I ask unanimous consent to take from the 
Speaker's table the Senate bill (S. 1139) to reauthorize the programs 
of the Small Business Administration, and for other purposes, and ask 
for its immediate consideration in the House.
  The Clerk read the title of the Senate bill.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Missouri?
  There was no objection.
  The Clerk read the Senate bill as follows:

                                S. 1139

       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 ``Small 
     Business Reauthorization Act of 1997''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Effective date.

                        TITLE I--AUTHORIZATIONS

Sec. 101. Authorizations.

                     TITLE II--FINANCIAL ASSISTANCE

                     Subtitle A--Microloan Program

Sec. 201. Microloan program.
Sec. 202. Welfare-to-work microloan pilot program.

         Subtitle B--Small Business Investment Company Program

Sec. 211. 5-year commitments for SBICs at option of Administrator.
Sec. 212. Fees.
Sec. 213. Small business investment company program reform.
Sec. 214. Examination fees.

           Subtitle C--Certified Development Company Program

Sec. 221. Loans for plant acquisition, construction, conversion, and 
              expansion.
Sec. 222. Development company debentures.
Sec. 223. Premier certified lenders program.

                TITLE III--WOMEN'S BUSINESS ENTERPRISES

Sec. 301. Interagency committee participation.
Sec. 302. Reports.
Sec. 303. Council duties.
Sec. 304. Council membership.
Sec. 305. Authorization of appropriations.
Sec. 306. Women's business centers.
Sec. 307. Office of women's business ownership.
Sec. 308. National Women's Business Council procurement project.

    TITLE IV--COMPETITIVENESS PROGRAM AND PROCUREMENT OPPORTUNITIES

           Subtitle A--Small Business Competitiveness Program

Sec. 401. Program term.
Sec. 402. Monitoring agency performance.
Sec. 403. Reports to Congress.
Sec. 404. Small business participation in dredging.

      Subtitle B--Small Business Procurement Opportunities Program

Sec. 411. Contract bundling.
Sec. 412. Definition of contract bundling.
Sec. 413. Assessing proposed contract bundling.
Sec. 414. Reporting of bundled contract opportunities.
Sec. 415. Evaluating subcontract participation in awarding contracts.
Sec. 416. Improved notice of subcontracting opportunities.
Sec. 417. Deadlines for issuance of regulations.

                   TITLE V--MISCELLANEOUS PROVISIONS

Sec. 501. Small business technology transfer program.
Sec. 502. Small business development centers.
Sec. 503. Pilot preferred surety bond guarantee program extension.
Sec. 504. Extension of cosponsorship authority.
Sec. 505. Asset sales.
Sec. 506. Small business export promotion.
Sec. 507. Defense Loan and Technical Assistance program.

                       TITLE VI--HUBZONE PROGRAM

Sec. 601. Short title.
Sec. 602. Historically underutilized business zones.
Sec. 603. Technical and conforming amendments to the Small Business 
              Act.
Sec. 604. Other technical and conforming amendments.
Sec. 605. Regulations.
Sec. 606. Report.
Sec. 607. Authorization of appropriations.

     SEC. 2. EFFECTIVE DATE.

       This Act and the amendments made by this Act shall take 
     effect on October 1, 1997.
                        TITLE I--AUTHORIZATIONS

     SEC. 101. AUTHORIZATIONS.

       Section 20 of the Small Business Act (15 U.S.C. 631 note) 
     is amended by striking subsections (c) through (q) and 
     inserting the following:
       ``(c) Fiscal Year 1998.--
       ``(1) Program levels.--The following program levels are 
     authorized for fiscal year 1998:
       ``(A) For the programs authorized by this Act, the 
     Administration is authorized to make--
       ``(i) $28,000,000 in technical assistance grants, as 
     provided in section 7(m); and
       ``(ii) $60,000,000 in loans, as provided in section 7(m).
       ``(B) For the programs authorized by this Act, the 
     Administration is authorized to make $17,040,000,000 in 
     deferred participation loans and other financings. Of such 
     sum, the Administration is authorized to make--
       ``(i) $13,000,000,000 in general business loans as provided 
     in section 7(a);
       ``(ii) $3,000,000,000 in financings as provided in section 
     7(a)(13) of this Act and section 504 of the Small Business 
     Investment Act of 1958;
       ``(iii) $1,000,000,000 in loans as provided in section 
     7(a)(21); and
       ``(iv) $40,000,000 in loans as provided in section 7(m).
       ``(C) For the programs authorized by title III of the Small 
     Business Investment Act of 1958, the Administration is 
     authorized to make--
       ``(i) $600,000,000 in purchases of participating 
     securities; and
       ``(ii) $500,000,000 in guarantees of debentures.
       ``(D) For the programs authorized by part B of title IV of 
     the Small Business Investment Act of 1958, the Administration 
     is authorized to enter into guarantees not to exceed 
     $2,000,000,000, of which not more than $650,000,000 may be in 
     bonds approved pursuant to section 411(a)(3) of that Act.
       ``(E) The Administration is authorized to make grants or 
     enter into cooperative agreements--
       ``(i) for the Service Corps of Retired Executives program 
     authorized by section 8(b)(1), $4,000,000; and
       ``(ii) for activities of small business development centers 
     pursuant to section 21(c)(3)(G), $15,000,000, to remain 
     available until expended.
       ``(2) Additional authorizations.--
       ``(A) There are authorized to be appropriated to the 
     Administration for fiscal year 1998 such sums as may be 
     necessary to carry out this Act, including administrative 
     expenses and necessary loan capital for disaster loans 
     pursuant to section 7(b), and to carry out the Small Business 
     Investment Act of 1958, including salaries and expenses of 
     the Administration.
       ``(B) Notwithstanding subparagraph (A), for fiscal year 
     1998--
       ``(i) no funds are authorized to be provided to carry out 
     the loan program authorized by section 7(a)(21) except by 
     transfer from another Federal department or agency to the 
     Administration, unless the program level authorized for 
     general business loans under subsection (l)(2)(A) is fully 
     funded; and
       ``(ii) the Administration may not approve loans on behalf 
     of the Administration or on behalf of any other department or 
     agency, by contract or otherwise, under terms and conditions 
     other than those specifically authorized under this Act or 
     the Small Business Investment Act of 1958, except that it may 
     approve loans under section 7(a)(21) of this Act in gross 
     amounts of not more than $1,250,000.

[[Page H8104]]

       ``(d) Fiscal Year 1999.--
       ``(1) Program levels.--The following program levels are 
     authorized for fiscal year 1999:
       ``(A) For the programs authorized by this Act, the 
     Administration is authorized to make--
       ``(i) $28,000,000 in technical assistance grants as 
     provided in section 7(m); and
       ``(ii) $60,000,000 in loans, as provided in section 7(m).
       ``(B) For the programs authorized by this Act, the 
     Administration is authorized to make $18,540,000,000 in 
     deferred participation loans and other financings. Of such 
     sum, the Administration is authorized to make--
       ``(i) $14,000,000,000 in general business loans as provided 
     in section 7(a);
       ``(ii) $3,500,000,000 in financings as provided in section 
     7(a)(13) of this Act and section 504 of the Small Business 
     Investment Act of 1958;
       ``(iii) $1,000,000,000 in loans as provided in section 
     7(a)(21); and
       ``(iv) $40,000,000 in loans as provided in section 7(m).
       ``(C) For the programs authorized by title III of the Small 
     Business Investment Act of 1958, the Administration is 
     authorized to make--
       ``(i) $700,000,000 in purchases of participating 
     securities; and
       ``(ii) $650,000,000 in guarantees of debentures.
       ``(D) For the programs authorized by part B of title IV of 
     the Small Business Investment Act of 1958, the Administration 
     is authorized to enter into guarantees not to exceed 
     $2,000,000,000, of which not more than $650,000,000 may be in 
     bonds approved pursuant to section 411(a)(3) of that Act.
       ``(E) The Administration is authorized to make grants or 
     enter cooperative agreements--
       ``(i) for the Service Corps of Retired Executives program 
     authorized by section 8(b)(1), $4,500,000; and
       ``(ii) for activities of small business development centers 
     pursuant to section 21(c)(3)(G), not to exceed $15,000,000, 
     to remain available until expended.
       ``(2) Additional authorizations.--
       ``(A) There are authorized to be appropriated to the 
     Administration for fiscal year 1999 such sums as may be 
     necessary to carry out this Act, including administrative 
     expenses and necessary loan capital for disaster loans 
     pursuant to section 7(b), and to carry out the Small Business 
     Investment Act of 1958, including salaries and expenses of 
     the Administration.
       ``(B) Notwithstanding subparagraph (A), for fiscal year 
     1999--
       ``(i) no funds are authorized to be provided to carry out 
     the loan program authorized by section 7(a)(21) except by 
     transfer from another Federal department or agency to the 
     Administration, unless the program level authorized for 
     general business loans under subsection (n)(2)(A) is fully 
     funded; and
       ``(ii) the Administration may not approve loans on behalf 
     of the Administration or on behalf of any other department or 
     agency, by contract or otherwise, under terms and conditions 
     other than those specifically authorized under this Act or 
     the Small Business Investment Act of 1958, except that it may 
     approve loans under section 7(a)(21) of this Act in gross 
     amounts of not more than $1,250,000.
       ``(e) Fiscal Year 2000.--
       ``(1) Program levels.--The following program levels are 
     authorized for fiscal year 2000:
       ``(A) For the programs authorized by this Act, the 
     Administration is authorized to make--
       ``(i) $28,000,000 in technical assistance grants as 
     provided in section 7(m); and
       ``(ii) $60,000,000 in direct loans, as provided in section 
     7(m).
       ``(B) For the programs authorized by this Act, the 
     Administration is authorized to make $21,040,000,000 in 
     deferred participation loans and other financings. Of such 
     sum, the Administration is authorized to make--
       ``(i) $15,500,000,000 in general business loans as provided 
     in section 7(a);
       ``(ii) $4,500,000,000 in financings as provided in section 
     7(a)(13) of this Act and section 504 of the Small Business 
     Investment Act of 1958;
       ``(iii) $1,000,000,000 in loans as provided in section 
     7(a)(21); and
       ``(iv) $40,000,000 in loans as provided in section 7(m).
       ``(C) For the programs authorized by title III of the Small 
     Business Investment Act of 1958, the Administration is 
     authorized to make--
       ``(i) $850,000,000 in purchases of participating 
     securities; and
       ``(ii) $700,000,000 in guarantees of debentures.
       ``(D) For the programs authorized by part B of title IV of 
     the Small Business Investment Act of 1958, the Administration 
     is authorized to enter into guarantees not to exceed 
     $2,000,000,000, of which not more than $650,000,000 may be in 
     bonds approved pursuant to section 411(a)(3) of that Act.
       ``(E) The Administration is authorized to make grants or 
     enter cooperative agreements--
       ``(i) for the Service Corps of Retired Executives program 
     authorized by section 8(b)(1), $5,000,000; and
       ``(ii) for activities of small business development centers 
     pursuant to section 21(c)(3)(G), not to exceed $15,000,000, 
     to remain available until expended.
       ``(2) Additional authorizations.--
       ``(A) There are authorized to be appropriated to the 
     Administration for fiscal year 2000 such sums as may be 
     necessary to carry out this Act, including administrative 
     expenses and necessary loan capital for disaster loans 
     pursuant to section 7(b), and to carry out the Small Business 
     Investment Act of 1958, including salaries and expenses of 
     the Administration.
       ``(B) Notwithstanding subparagraph (A), for fiscal year 
     2000--
       ``(i) no funds are authorized to be provided to carry out 
     the loan program authorized by section 7(a)(21) except by 
     transfer from another Federal department or agency to the 
     Administration, unless the program level authorized for 
     general business loans under subsection (p)(2)(A) is fully 
     funded; and
       ``(ii) the Administration may not approve loans on behalf 
     of the Administration or on behalf of any other department or 
     agency, by contract or otherwise, under terms and conditions 
     other than those specifically authorized under this Act or 
     the Small Business Investment Act of 1958, except that it may 
     approve loans under section 7(a)(21) of this Act in gross 
     amounts of not more than $1,250,000.''.
                     TITLE II--FINANCIAL ASSISTANCE
                     Subtitle A--Microloan Program

     SEC. 201. MICROLOAN PROGRAM.

       (a) Loan Limits.--Section 7(m)(3)(C) of the Small Business 
     Act (15 U.S.C. 636(m)(3)(C)) is amended by striking 
     ``$2,500,000'' and inserting ``$3,500,000''.
       (b) Loan Loss Reserve Fund.--Section 7(m)(3)(D) of the 
     Small Business Act (15 U.S.C. 636(m)(3)(D)) is amended by 
     striking clauses (i) and (ii), and inserting the following:
       ``(i) during the initial 5 years of the intermediary's 
     participation in the program under this subsection, at a 
     level equal to not more than 15 percent of the outstanding 
     balance of the notes receivable owed to the intermediary; and
       ``(ii) in each year of participation thereafter, at a level 
     equal to not more than the greater of--

       ``(I) 2 times an amount reflecting the total losses of the 
     intermediary as a result of participation in the program 
     under this subsection, as determined by the Administrator on 
     a case-by-case basis; or
       ``(II) 10 percent of the outstanding balance of the notes 
     receivable owed to the intermediary.''.

       (c) Authorization of Appropriations.--Section 7(m) of the 
     Small Business Act (15 U.S.C. 636(m)) is amended--
       (1) in the subsection heading, by striking 
     ``Demonstration'';
       (2) by striking ``Demonstration'' each place that term 
     appears;
       (3) by striking ``demonstration'' each place that term 
     appears; and
       (4) in paragraph (12), by striking ``during fiscal years 
     1995 through 1997'' and inserting ``during fiscal years 1998 
     through 2000''.
       (d) Technical Assistance Grants.--Section 7(m)(4)(E) of the 
     Small Business Act (15 U.S.C. 636(m)(4)(E)) is amended--
       (1) by inserting ``(i)'' before ``Each intermediary'';
       (2) by striking ``15'' and inserting ``25'';
       (3) by adding at the end of the paragraph ``(ii) The 
     intermediary may expend up to 25 percent of the funds 
     received under paragraph (1)(B)(ii) to enter into third party 
     contracts for the provision of technical assistance''.

     SEC. 202. WELFARE-TO-WORK MICROLOAN PILOT PROGRAM.

       (a) Program Establishment.--Section 7(m) of the Small 
     Business Act (15 U.S.C. 636(m)) is amended--
       (1) in paragraph (1)(A)--
       (A) in clause (ii), by striking ``and'' at the end;
       (B) in clause (iii), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(iv) to establish a welfare-to-work microloan pilot 
     program, which shall be administered by the Administration, 
     in order to--

       ``(I) test the feasibility of supplementing the technical 
     assistance grants provided under clauses (ii) and (iii) of 
     subparagraph (B) to individuals who are receiving assistance 
     under the State program funded under part A of title IV of 
     the Social Security Act (42 U.S.C. 601 et seq.), or under any 
     comparable State-funded means-tested program of assistance 
     for low-income individuals, in order to adequately assist 
     those individuals in--

       ``(aa) establishing small businesses; and
       ``(bb) eliminating their dependence on that assistance;

       ``(II) permit the grants described in subclause (I) to be 
     used to provide intensive management, marketing and technical 
     assistance as well as to pay or reimburse a portion of child 
     care and transportation costs of individuals described in 
     subclause (I) who become microborrowers;
       ``(III) eliminate barriers to microborrowers in 
     establishing child care businesses; and
       ``(IV) evaluate the effectiveness of assistance provided 
     under this clause in helping individuals described in 
     subclause (I) to eliminate their dependence on assistance 
     described in that subclause and become employed in their own 
     business;'';

       (2) in paragraph (4), by adding at the end the following:
       ``(F) Supplemental grants.--
       ``(i) In general.--In addition to grants under 
     subparagraphs (A) and (C) and paragraph (5), the 
     Administration may select

[[Page H8105]]

     from participating intermediaries and recipients of grants 
     under paragraph (5), not more than 20 entities in fiscal year 
     1998, 25 entities in fiscal year 1999, and 30 entities in 
     fiscal year 2000, each of whom may receive annually a 
     supplemental grant in an amount not to exceed $200,000 for 
     the purpose of providing additional technical assistance and 
     related services to borrowers who are receiving assistance 
     described in paragraph (1)(A)(iv)(I) at the time they 
     initially apply for assistance under the program.
       ``(ii) Inapplicability of contribution requirements.--The 
     contribution requirements of subparagraphs (B) and (C)(i)(II) 
     do not apply to any grant made under this subparagraph.
       ``(iii) Child care and transportation costs.--Any grant 
     made under this subparagraph may be used to pay or reimburse 
     a portion of the costs of child care and transportation 
     incurred by a borrower under the welfare-to-work microloan 
     pilot program under paragraph (1)(A)(iv).'';
       (3) in paragraph (6), by adding at the end the following:
       ``(E) Establishment of child care establishments.--In 
     addition to other eligible small business concerns, borrowers 
     under any program under this subsection may include 
     individuals who will use the loan proceeds to establish for-
     profit or nonprofit child care establishments.'';
       (4) in paragraph (9)--
       (A) by striking the paragraph designation and paragraph 
     heading and inserting the following:
       ``(9) Grants  for  management,  marketing,  technical  
     assistance,  and  related  services.--''; and
       (B) by adding at the end the following:
       ``(C) Welfare-to-work microloan pilot program.--Of amounts 
     made available to carry out the welfare-to-work microloan 
     pilot program under paragraph (1)(A)(iv) in any fiscal year, 
     the Administration may use not more than 5 percent to provide 
     technical assistance, either directly or through contractors, 
     to welfare-to-work microloan pilot program grantees, to 
     ensure that, as grantees, they have the knowledge, skills, 
     and understanding of microlending and welfare-to-work 
     transition, and other related issues, to operate a successful 
     welfare-to-work microloan pilot program.''; and
       (5) by adding at the end the following:
       ``(13) Evaluation of welfare-to-work microloan pilot 
     program.--On January 31, 1999, and annually thereafter, the 
     Administration shall submit to the Committees on Small 
     Business of the House of Representatives and the Senate a 
     report on the welfare-to-work microloan pilot program 
     authorized under paragraph (1)(A)(iv), which report shall 
     include, with respect to the preceding fiscal year, an 
     analysis of the progress and effectiveness of the program 
     during that fiscal year, and data relating to--
       ``(A) the number and location of each grantee under the 
     program;
       ``(B) the amount of each grant;
       ``(C) the number of individuals who received assistance 
     under each grant, including separate data relating to--
       ``(i) the number of individuals who received training;
       ``(ii) the number of individuals who received 
     transportation assistance; and
       ``(iii) the number of individuals who received child care 
     assistance (including the number of children assisted);
       ``(D) the type and amount of loan and grant assistance 
     received by borrowers under the program;
       ``(E) the number of businesses that were started with 
     assistance provided under the program that are operational 
     and the number of jobs created by each business;
       ``(F) the number of individuals receiving training under 
     the program who, after receiving assistance under the 
     program--
       ``(i) are employed in their own businesses; and
       ``(ii) are not receiving public assistance for themselves 
     or their children;
       ``(G) whether and to what extent each grant was used to 
     defray the transportation and child care costs of borrowers; 
     and
       ``(H) any recommendations for legislative changes to 
     improve program operations.''.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out the welfare-to-work microloan 
     pilot program under section 7(m)(1)(A)(iv) of the Small 
     Business Act (as added by this section)--
       (1) $3,000,000 for fiscal year 1998;
       (2) $4,000,000 for fiscal year 1999; and
       (3) $5,000,000 for fiscal year 2000.
         Subtitle B--Small Business Investment Company Program

     SEC. 211. 5-YEAR COMMITMENTS FOR SBICS AT OPTION OF 
                   ADMINISTRATOR.

       Section 20(a)(2) of the Small Business Act (15 U.S.C. 631 
     note) is amended in the last sentence by striking ``the 
     following fiscal year'' and inserting ``any 1 or more of the 
     4 subsequent fiscal years''.

     SEC. 212. FEES.

       Section 301 of the Small Business Investment Act of 1958 
     (15 U.S.C. 681) is amended by adding the following:
       ``(e) Fees.--
       ``(1) In general.--The Administration may prescribe fees to 
     be paid by each applicant for a license to operate as a small 
     business investment company under this Act.
       ``(2) Use of amounts.--Amounts collected pursuant to this 
     subsection shall be--
       ``(A) deposited in the account for salaries and expenses of 
     the Administration; and
       ``(B) available without further appropriation solely to 
     cover contracting and other administrative costs related to 
     licensing.''.

     SEC. 213. SMALL BUSINESS INVESTMENT COMPANY PROGRAM REFORM.

       (a) Bank Investments.--Section 302(b) of the Small Business 
     Investment Act of 1958 (15 U.S.C. 682(b)) is amended by 
     striking ``1956,'' and all that follows before the period and 
     inserting the following: ``1956, any national bank, or any 
     member bank of the Federal Reserve System or nonmember 
     insured bank to the extent permitted under applicable State 
     law, may invest in any 1 or more small business investment 
     companies, or in any entity established to invest solely in 
     small business investment companies, except that in no event 
     shall the total amount of such investments of any such bank 
     exceed 5 percent of the capital and surplus of the bank''.
       (b) Indexing for Leverage.--Section 303 of the Small 
     Business Investment Act of 1958 (15 U.S.C. 683) is amended--
       (1) in subsection (b)--
       (A) in paragraph (2), by adding at the end the following:
       ``(D)(i) The dollar amounts in subparagraphs (A), (B), and 
     (C) shall be adjusted annually to reflect increases in the 
     Consumer Price Index established by the Bureau of Labor 
     Statistics of the Department of Labor.
       ``(ii) The initial adjustments made under this subparagraph 
     after the date of enactment of the Small Business 
     Reauthorization Act of 1997 shall reflect only increases from 
     March 31, 1993.''; and
       (B) by striking paragraph (4) and inserting the following:
       ``(4) Maximum aggregate amount of leverage.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the aggregate amount of outstanding leverage issued to any 
     company or companies that are commonly controlled (as 
     determined by the Administrator) may not exceed $90,000,000, 
     as adjusted annually for increases in the Consumer Price 
     Index.
       ``(B) Exceptions.--The Administrator may, on a case-by-case 
     basis--
       ``(i) approve an amount of leverage that exceeds the amount 
     described in subparagraph (A) for companies under common 
     control; and
       ``(ii) impose such additional terms and conditions as the 
     Administrator determines to be appropriate to minimize the 
     risk of loss to the Administration in the event of default.
       ``(C) Applicability of other provisions.--Any leverage that 
     is issued to a company or companies commonly controlled in an 
     amount that exceeds $90,000,000, whether as a result of an 
     increase in the Consumer Price Index or a decision of the 
     Administrator, is subject to subsection (d).''; and
       (2) by striking subsection (d) and inserting the following:
       ``(d) Required Certifications.--
       ``(1) In general.--The Administrator shall require each 
     licensee, as a condition of approval of an application for 
     leverage, to certify in writing--
       ``(A) for licensees with leverage less than or equal to 
     $90,000,000, that not less than 20 percent of the licensee's 
     aggregate dollar amount of financings will be provided to 
     smaller enterprises; and
       ``(B) for licensees with leverage in excess of $90,000,000, 
     that, in addition to satisfying the requirements of 
     subparagraph (A), 100 percent of the licensee's aggregate 
     dollar amount of financings made in whole or in part with 
     leverage in excess of $90,000,000 will be provided to smaller 
     enterprises as defined in section 103(12).
       ``(2) Multiple licensees.--Multiple licensees under common 
     control (as determined by the Administrator) shall be 
     considered to be a single licensee for purposes of 
     determining both the applicability of and compliance with the 
     investment percentage requirements of this subsection.''.
       (c) Tax Distributions.--Section 303(g)(8) of the Small 
     Business Investment Act of 1958 (15 U.S.C. 683(g)(8)) is 
     amended by adding at the end the following: ``A company may 
     also elect to make a distribution under this paragraph at the 
     end of any calendar quarter based on a quarterly estimate of 
     the maximum tax liability. If a company makes 1 or more 
     quarterly distributions for a calendar year, and the 
     aggregate amount of those distributions exceeds the maximum 
     amount that the company could have distributed based on a 
     single annual computation, any subsequent distribution by the 
     company under this paragraph shall be reduced by an amount 
     equal to the excess amount distributed.''.
       (d) Leverage Fee.--Section 303(i) of the Small Business 
     Investment Act of 1958 (15 U.S.C. 683(i)) is amended by 
     striking ``, payable upon'' and all that follows before the 
     period and inserting the following: ``in the following 
     manner: 1 percent upon the date on which the Administration 
     enters into any commitment for such leverage with the 
     licensee, and the balance of 2 percent (or 3 percent if no 
     commitment has been entered into by the Administration) on 
     the date on which the leverage is drawn by the licensee''.
       (e) Periodic Issuance of Guarantees and Trust 
     Certificates.--Section 320 of the Small Business Investment 
     Act of 1958 (15 U.S.C. 687m) is amended by striking ``three 
     months'' and inserting ``6 months''.

     SEC. 214. EXAMINATION FEES.

       Section 310(b) of the Small Business Investment Act of 1958 
     (15 U.S.C. 687b(b)) is amended by inserting after the first 
     sentence the following: ``Fees collected under this

[[Page H8106]]

     subsection shall be deposited in the account for salaries and 
     expenses of the Administration, and shall be available 
     without further appropriation solely to cover the costs of 
     examinations and other program oversight activities.''.
           Subtitle C--Certified Development Company Program

     SEC. 221. LOANS FOR PLANT ACQUISITION, CONSTRUCTION, 
                   CONVERSION, AND EXPANSION.

       Section 502 of the Small Business Investment Act of 1958 
     (15 U.S.C. 696) is amended--
       (1) by striking paragraph (1) and inserting the following:
       ``(1) The proceeds of any such loan shall be used solely by 
     the borrower to assist 1 or more identifiable small business 
     concerns and for a sound business purpose approved by the 
     Administration.'';
       (2) in paragraph (3), by adding at the end the following:
       ``(D) Seller financing.--Seller-provided financing may be 
     used to meet the requirements of subparagraph (B), if the 
     seller subordinates the interest of the seller in the 
     property to the debenture guaranteed by the Administration.
       ``(E) Collateral requirements.--Adequacy of collateral 
     provided by the small business shall be one factor evaluated 
     in the credit determination. Collateral provided by the small 
     business concern generally will include a subordinate lien 
     position on the property being financed, and additional 
     collateral may be required in a case-by-case basis, as 
     determined by the Administration.''; and
       (3) by adding at the end the following:
       ``(5) Except as provided in paragraph (4), not to exceed 25 
     percent of the project may be leased by the assisted small 
     business, if--
       ``(A) the assisted small business is required to occupy 
     permanently and use not less than 75 percent of the space in 
     the project after the execution of any leases authorized in 
     this paragraph; and
       ``(B) each tenant is engaged a business that enhances the 
     operations of the assisted small business.''.

     SEC. 222. DEVELOPMENT COMPANY DEBENTURES.

       Section 503 of the Small Business Investment Act of 1958 
     (15 U.S.C. 697) is amended--
       (1) in subsection (b)(7), by striking subparagraph (A) and 
     inserting the following:
       ``(A) assesses and collects a fee, which shall be payable 
     by the borrower, in an amount established annually by the 
     Administration, which amount shall not exceed the lesser of--
       ``(i) 0.9375 percent per year of the outstanding balance of 
     the loan; and
       ``(ii) the minimum amount necessary to reduce the cost (as 
     that term is defined in section 502 of the Federal Credit 
     Reform Act of 1990) to the Administration of purchasing and 
     guaranteeing debentures under this Act to zero; and''; and
       (2) in subsection (f), by striking ``1997'' and inserting 
     ``2000''.

     SEC. 223. PREMIER CERTIFIED LENDERS PROGRAM.

       (a) In General.--Section 508 of the Small Business 
     Investment Act of 1958 (15 U.S.C. 697e) is amended--
       (1) in subsection (a), by striking ``not more than 15'';
       (2) in subsection (b)(2), by striking subparagraphs (A) and 
     (B) and inserting the following:
       ``(A) is an active certified development company in good 
     standing and has been an active participant in the accredited 
     lenders program during the entire 12-month period preceding 
     the date on which the company submits an application under 
     paragraph (1), except that the Administration may waive this 
     requirement if the company is qualified to participate in the 
     accredited lenders program;
       ``(B) has a history of--
       ``(i) submitting to the Administration adequately analyzed 
     debenture guarantee application packages; and
       ``(ii) of properly closing section 504 loans and servicing 
     its loan portfolio; and'';
       (3) by striking subsection (c) and inserting the following:
       ``(c) Loss Reserve.--
       ``(1) Establishment.--A company designated as a premier 
     certified lender shall establish a loss reserve for financing 
     approved pursuant to this section.
       ``(2) Amount.--The amount of the loss reserve shall be 
     based upon the greater of--
       ``(A) the historic loss rate on debentures issued by such 
     company; or
       ``(B) 10 percent of the amount of the company's exposure as 
     determined under subsection (b)(2)(C).
       ``(3) Assets.--The loss reserve shall be comprised of any 
     combination of the following types of assets:
       ``(A) segregated funds on deposit in an account or accounts 
     with a federally insured depository institution or 
     institutions selected by the company, subject to a collateral 
     assignment in favor of, and in a format acceptable to, the 
     Administration; or
       ``(B) irrevocable letter or letters of credit, with a 
     collateral assignment in favor of, and a commercially 
     reasonable format acceptable to, the Administration.
       ``(4) Contributions.--The company shall make contributions 
     to the loss reserve, either cash or letters of credit as 
     provided above, in the following amounts and at the following 
     intervals:
       ``(A) 50 percent when a debenture is closed;
       ``(B) 25 percent additional not later than 1 year after a 
     debenture is closed; and
       ``(C) 25 percent additional not later than 2 years after a 
     debenture is closed.
       ``(5) Replenishment.--If a loss has been sustained by the 
     Administration, any portion of the loss reserve, and other 
     funds provided by the premier company as necessary, may be 
     used to reimburse the Administration for the company's 10 
     percent share of the loss as provided in subsection 
     (b)(2)(C). If the company utilizes the reserve, within 30 
     days it shall replace an equivalent amount of funds.
       ``(6) Disbursements.--The Administration shall allow the 
     certified development company to withdraw from the loss 
     reserve amounts attributable to any debenture which has been 
     repaid.'';
       (4) in subsection (f), by striking ``State or local'' and 
     inserting ``certified'';
       (5) in subsection (g), by striking the subsection heading 
     and inserting the following:
       ``(g) Effect of Suspension or Revocation.--'';
       (6) by striking subsection (h) and inserting the following:
       ``(h) Program Goals.--Each certified development company 
     participating in the program under this section shall 
     establish a goal of processing a minimum of not less than 50 
     percent of the loan applications for assistance under section 
     504 pursuant to the program authorized under this section.''; 
     and
       (7) in subsection (i), by striking ``other lenders'' and 
     inserting ``other lenders, specifically comparing default 
     rates and recovery rates on liquidations''.
       (b) Regulations.--The Administrator of the Small Business 
     Administration shall--
       (1) not later than 120 days after the date of enactment of 
     this Act, promulgate regulations to carry out the amendments 
     made by subsection (a); and
       (2) not later than 150 days after the date of enactment of 
     this Act, issue program guidelines and fully implement the 
     amendments made by subsection (a).
       (c) Program Extension.--Section 217(b) of the Small 
     Business Reauthorization and Amendments Act of 1994 (15 
     U.S.C. 697e note) is amended by striking ``October 1, 1997'' 
     and inserting ``October 1, 2000''.
                TITLE III--WOMEN'S BUSINESS ENTERPRISES

     SEC. 301. INTERAGENCY COMMITTEE PARTICIPATION.

       Section 403 of the Women's Business Ownership Act of 1988 
     (15 U.S.C. 631 note) is amended--
       (1) in subsection (a)(1), by adding at the end the 
     following:
       ``(K) The Department of Education.
       ``(L) The Environmental Protection Agency.
       ``(M) The Department of Energy.
       ``(N) The Administrator of the Office of Procurement 
     Policy.
       ``(O) The National Aeronautics and Space Administration.'';
       (2) in subsection (a)(2)(A)--
       (A) by striking ``and Amendments Act of 1994'' and 
     inserting ``Act of 1997''; and
       (B) by inserting before the final period ``, and who shall 
     report directly to the head of the agency on the status of 
     the activities of the Interagency Committee'';
       (3) in subsection (a)(2)(B), by inserting before the final 
     period the following: ``and shall report directly to the 
     Administrator on the status of the activities on the 
     Interagency Committee and shall serve as the Interagency 
     Committee Liaison to the National Women's Business Council 
     established under section 405''; and
       (4) in subsection (b), by striking ``and Amendments Act of 
     1994'' and inserting ``Act of 1997''.

     SEC. 302. REPORTS.

       Section 404 of the Women's Business Ownership Act of 1988 
     (15 U.S.C. 631 note) is amended--
       (1) by inserting ``, through the Small Business 
     Administration,'' after ``transmit'';
       (2) by striking paragraph (1) and redesignating paragraphs 
     (2) through (4) as paragraphs (1) through (3), respectively; 
     and
       (3) in paragraph (1), as redesignated, by inserting before 
     the semicolon the following: ``, including a status report on 
     the progress of the Interagency Committee in meeting its 
     responsibilities and duties under section 402(a)''.

     SEC. 303. COUNCIL DUTIES.

       Section 406 of the Women's Business Ownership Act of 1988 
     (15 U.S.C. 631 note) is amended--
       (1) in subsection (c), by inserting after ``Administrator'' 
     the following: ``(through the Assistant Administrator for the 
     Office of Women's Business Ownership)''; and
       (2) in subsection (d)--
       (A) in paragraph (4), by striking ``and'' at the end;
       (B) in paragraph (5), by striking the period at the end and 
     inserting a semicolon; and
       (C) by adding at the end the following:
       ``(6) submit to the President and to the Committee on Small 
     Business of the Senate and the Committee on Small Business of 
     the House of Representatives, an annual report containing--
       ``(A) a detailed description of the activities of the 
     council, including a status report on the Council's progress 
     toward meeting its duties outlined in subsections (a) and (d) 
     of section 406;
       ``(B) the findings, conclusions, and recommendations of the 
     Council; and
       ``(C) the Council's recommendations for such legislation 
     and administrative actions

[[Page H8107]]

     as the Council considers appropriate to promote the 
     development of small business concerns owned and controlled 
     by women.
       ``(e) Submission of Reports.--The annual report required by 
     subsection (d) shall be submitted not later than 90 days 
     after the end of each fiscal year.''.

     SEC. 304. COUNCIL MEMBERSHIP.

       Section 407 of the Women's Business Ownership Act of 1988 
     (15 U.S.C. 631 note) is amended--
       (1) in subsection (a), by striking ``and Amendments Act of 
     1994'' and inserting ``Act of 1997'';
       (2) in subsection (b)--
       (A) by striking ``and Amendments Act of 1994'' and 
     inserting ``Act of 1997'';
       (B) by inserting after ``the Administrator shall'' the 
     following: ``, after receiving the recommendations of the 
     Chair and the Ranking Member of the Minority of the 
     Committees on Small Business of the House of Representatives 
     and the Senate, '';
       (C) by striking ``9'' and inserting ``14'';
       (D) in paragraph (1), by striking ``2'' and inserting 
     ``3'';
       (E) in paragraph (2)--
       (i) by striking ``2'' and inserting ``3''; and
       (ii) by striking ``and'' at the end;
       (F) in paragraph (3)--
       (i) by striking ``5'' and inserting ``6'';
       (ii) by striking ``national''; and
       (iii) by striking the period at the end and inserting the 
     following: ``, including representatives of Women's Business 
     Center sites; and''; and
       (G) by adding at the end the following:
       ``(4) 2 shall be representatives of businesses or 
     educational institutions having an interest in women's 
     entrepreneurship.''; and
       (3) in subsection (c), by inserting ``(including both urban 
     and rural areas)'' after ``geographic''.

     SEC. 305. AUTHORIZATION OF APPROPRIATIONS.

       Section 409 of the Women's Business Ownership Act of 1988 
     (15 U.S.C. 631 note) is amended--
       (1) by striking ``1995 through 1997'' and inserting ``1998 
     through 2000''; and
       (2) by striking ``$350,000'' and inserting ``$400,000''.

     SEC. 306. WOMEN'S BUSINESS CENTERS.

       (a) In General.--Section 29 of the Small Business Act (15 
     U.S.C. 656) is amended to read as follows:

     ``SEC. 29. WOMEN'S BUSINESS CENTERS.

       ``(a) Definitions.--In this section--
       ``(1) the term `small business concern owned and controlled 
     by women', either startup or existing, includes any small 
     business concern--
       ``(A) that is not less than 51 percent owned by 1 or more 
     women; and
       ``(B) the management and daily business operations of which 
     are controlled by 1 or more women; and
       ``(2) the term `women's business center site' means the 
     location of--
       ``(A) a women's business center; or
       ``(B) 1 or more women's business centers, established in 
     conjunction with another women's business center in another 
     location within a State or region--
       ``(i) that reach a distinct population that would otherwise 
     not be served;
       ``(ii) whose services are targeted to women; and
       ``(iii) whose scope, function, and activities are similar 
     to those of the primary women's business center or centers in 
     conjunction with which it was established.
       ``(b) Authority.--The Administration may provide financial 
     assistance to private organizations to conduct 5-year 
     projects for the benefit of small business concerns owned and 
     controlled by women. The projects shall provide--
       ``(1) financial assistance, including training and 
     counseling in how to apply for and secure business credit and 
     investment capital, preparing and presenting financial 
     statements, and managing cash flow and other financial 
     operations of a business concern;
       ``(2) management assistance, including training and 
     counseling in how to plan, organize, staff, direct, and 
     control each major activity and function of a small business 
     concern; and
       ``(3) marketing assistance, including training and 
     counseling in identifying and segmenting domestic and 
     international market opportunities, preparing and executing 
     marketing plans, developing pricing strategies, locating 
     contract opportunities, negotiating contracts, and utilizing 
     varying public relations and advertising techniques.
       ``(c) Conditions of Participation.--
       ``(1) Non-federal contributions.--As a condition of 
     receiving financial assistance authorized by this section, 
     the recipient organization shall agree to obtain, after its 
     application has been approved and notice of award has been 
     issued, cash contributions from non-Federal sources as 
     follows:
       ``(A) in the first, second, and third years, 1 non-Federal 
     dollar for each 2 Federal dollars;
       ``(B) in the fourth year, 1 non-Federal dollar for each 
     Federal dollar; and
       ``(C) in the fifth year, 2 non-Federal dollars for each 
     Federal dollar.
       ``(2) Form of non-federal contributions.--Not more than 
     one-half of the non-Federal sector matching assistance may be 
     in the form of in-kind contributions which are budget line 
     items only, including but not limited to office equipment and 
     office space.
       ``(3) Form of federal contributions.--The financial 
     assistance authorized pursuant to this section may be made by 
     grant, contract, or cooperative agreement and may contain 
     such provision, as necessary, to provide for payments in lump 
     sum or installments, and in advance or by way of 
     reimbursement. The Administration may disburse up to 25 
     percent of each year's Federal share awarded to a recipient 
     organization after notice of the award has been issued and 
     before the non-Federal sector matching funds are obtained.
       ``(4) Failure to obtain private funding.--If any recipient 
     of assistance fails to obtain the required non-Federal 
     contribution during any project, it shall not be eligible 
     thereafter for advance disbursements pursuant to paragraph 
     (3) during the remainder of that project, or for any other 
     project for which it is or may be funded by the 
     Administration, and prior to approving assistance to such 
     organization for any other projects, the Administration shall 
     specifically determine whether the Administration believes 
     that the recipient will be able to obtain the requisite non-
     Federal funding and enter a written finding setting forth the 
     reasons for making such determination.
       ``(d) Contract Authority.--A women's business center may 
     enter into a contract with a Federal department or agency to 
     provide specific assistance to women and other underserved 
     small business concerns. Performance of such contract should 
     not hinder the women's business centers in carrying out the 
     terms of the grant received by the women's business centers 
     from the Administration.
       ``(e) Submission of 5-Year Plan.--Each applicant 
     organization initially shall submit a 5-year plan to the 
     Administration on proposed fundraising and training 
     activities, and a recipient organization may receive 
     financial assistance under this program for a maximum of 5 
     years per women's business center site.
       ``(f) Criteria.--The Administration shall evaluate and rank 
     applicants in accordance with predetermined selection 
     criteria that shall be stated in terms of relative 
     importance. Such criteria and their relative importance shall 
     be made publicly available and stated in each solicitation 
     for applications made by the Administration. The criteria 
     shall include--
       ``(1) the experience of the applicant in conducting 
     programs or ongoing efforts designed to impart or upgrade the 
     business skills of women business owners or potential owners;
       ``(2) the present ability of the applicant to commence a 
     project within a minimum amount of time;
       ``(3) the ability of the applicant to provide training and 
     services to a representative number of women who are both 
     socially and economically disadvantaged; and
       ``(4) the location for the women's business center site 
     proposed by the applicant.
       ``(g) Office of Women's Business Ownership.--There is 
     established within the Administration an Office of Women's 
     Business Ownership, which shall be responsible for the 
     administration of the Administration's programs for the 
     development of women's business enterprises (as that term is 
     defined in section 408 of the Women's Business Ownership Act 
     of 1988). The Office of Women's Business Ownership shall be 
     administered by an Assistant Administrator, who shall be 
     appointed by the Administrator.
       ``(h) Report.--The Administrator shall prepare and submit 
     an annual report to the Committees on Small Business of the 
     House of Representatives and the Senate on the effectiveness 
     of all projects conducted under the authority of this 
     section. Such report shall provide information concerning--
       ``(1) the number of individuals receiving assistance;
       ``(2) the number of startup business concerns formed;
       ``(3) the gross receipts of assisted concerns;
       ``(4) increases or decreases in profits of assisted 
     concerns; and
       ``(5) the employment increases or decreases of assisted 
     concerns.
       ``(i) Authorization of Appropriations.--There are 
     authorized to be appropriated $8,000,000 per year to carry 
     out the projects authorized by this section. Amounts 
     appropriated pursuant to this subsection are to be used 
     exclusively for grant awards and not for costs incurred by 
     the Administration for the management and administration of 
     the program. Notwithstanding any other provision of law, the 
     Administration may use such expedited acquisition methods as 
     it deems appropriate, through the Assistant Administrator of 
     the Office of Women's Business Ownership, to achieve the 
     purposes of this section, except that the Administration 
     shall ensure that all eligible sources are provided a 
     reasonable opportunity to submit proposals.''.
       (b) Applicability.--Any organization conducting a 3-year 
     project under section 29 of the Small Business Act (15 U.S.C. 
     656) on the day before the date of enactment of this Act, may 
     extend the term of that project to a total term of 5 years 
     and receive financial assistance in accordance with section 
     29(c) of the Small Business Act (as amended by this title) 
     subject to procedures established by the Administrator in 
     coordination with the Office of Women's Business Ownership 
     established under section 29 of the Small Business Act (15 
     U.S.C. 656) (as amended by this title).

     SEC. 307. OFFICE OF WOMEN'S BUSINESS OWNERSHIP.

       Section 29 of the Small Business Act (15 U.S.C. 656) is 
     amended by adding at the end the following:
       ``(i) Assistant Administrator for the Office of Women's 
     Business Ownership.--
       ``(1) Qualification.--The Assistant Administrator for the 
     Office of Women's Business

[[Page H8108]]

     Ownership (hereafter in this section referred to as the 
     `Assistant Administrator') shall serve without regard to the 
     provisions of title 5, United States Code, governing 
     appointments in the competitive service, and without regard 
     to chapter 51 and subchapter III of chapter 53 of title 5, 
     United States Code, relating to classification and General 
     Schedule pay rates, but at a rate of pay not to exceed the 
     maximum of pay payable for a position at GS-17 of the General 
     Schedule.
       ``(2) Responsibilities and duties.--
       ``(A) Responsibilities.--The responsibilities of the 
     Assistant Administrator shall be to administer the programs 
     and services of the Office of Women's Business Ownership 
     established to assist women entrepreneurs in the areas of--
       ``(i) starting and operating a small business;
       ``(ii) development of management and technical skills;
       ``(iii) seeking Federal procurement opportunities; and
       ``(iv) increasing the opportunity for access to capital.
       ``(B) Duties.--Duties of the position of the Assistant 
     Administrator shall include--
       ``(i) administering and managing the Women's Business 
     Centers program;
       ``(ii) recommending the annual administrative and program 
     budgets for the Office of Women's Business Ownership 
     (including the budget for the Women's Business Centers);
       ``(iii) establishing appropriate funding levels therefore;
       ``(iv) reviewing the annual budgets submitted by each 
     applicant for the Women's Business Center program;
       ``(v) selecting applicants to participate in this program;
       ``(vi) implementing this section;
       ``(vii) maintaining a clearinghouse to provide for the 
     dissemination and exchange of information between Women's 
     Business Centers;
       ``(viii) conducting program examinations of recipients of 
     grants under this section;
       ``(ix) serving as the vice chairperson of the Interagency 
     Committee on Women's Business Enterprise;
       ``(x) serving as liaison for the National Women's Business 
     Council; and
       ``(xi) advising the Administrator on appointments to the 
     Women's Business Council.
       ``(3) Consultation requirements.--In carrying out the 
     responsibilities and duties described in this subsection, the 
     Assistant Administrator shall confer with and seek the advice 
     of the Administration officials in areas served by the 
     Women's Business Centers.
       ``(j) Program Examination.--
       ``(1) In general.--Not later than 180 days after the date 
     of enactment of this subsection, the Administration shall 
     develop and implement an annual programmatic and financial 
     examination of each Women's Business Center established 
     pursuant to this section.
       ``(2) Extension of contracts.--In extending or renewing a 
     contract with a Women's Business Center, the Administration 
     shall consider the results of the examination conducted 
     pursuant to paragraph (1).
       ``(k) Contract Authority.--The authority of the 
     Administration to enter into contracts shall be in effect for 
     each fiscal year only to the extent and in the amounts as are 
     provided in advance in appropriations Acts. After the 
     Administration has entered a contract, either as a grant or a 
     cooperative agreement, with any applicant under this section, 
     it shall not suspend, terminate, or fail to renew or extend 
     any such contract unless the Administration provides the 
     applicant with written notification setting forth the reasons 
     therefore and affording the applicant an opportunity for a 
     hearing, appeal, or other administrative proceeding under 
     chapter 5 of title 5, United States Code.''.

     SEC. 308. NATIONAL WOMEN'S BUSINESS COUNCIL PROCUREMENT 
                   PROJECT.

       (a) In General.--The Women's Business Ownership Act of 1988 
     (15 U.S.C. 631 note) is amended by adding at the end the 
     following:

     ``SEC. 410. NATIONAL WOMEN'S BUSINESS COUNCIL PROCUREMENT 
                   PROJECT.

       ``(a) Procurement Project.--
       ``(1) Federal procurement study.--
       ``(A) In general.--The Council shall conduct a study on the 
     award of Federal prime contracts and subcontracts to women-
     owned businesses, which study shall include--
       ``(i) an analysis of data collected by Federal agencies on 
     contract awards to women-owned businesses;
       ``(ii) a determination of the degree to which individual 
     Federal agencies are in compliance with the 5 percent women-
     owned business procurement goal established by section 
     15(g)(1) of the Small Business Act (15 U.S.C. 644(g)(1));
       ``(iii) a determination of the types and amounts of Federal 
     contracts characteristically awarded to women-owned 
     businesses; and
       ``(iv) other relevant information relating to participation 
     of women-owned businesses in Federal procurement.
       ``(B) Submission of results.--Not later than October 1, 
     1999, the Council shall submit to the Committees on Small 
     Business of the House of Representatives and the Senate, and 
     to the President, the results of the study conducted under 
     subparagraph (A).
       ``(2) Best practices report.--Not later than March 1, 2000, 
     the Council shall submit to the Committees on Small Business 
     of the House of Representatives and the Senate, and to the 
     President, a report, which shall include--
       ``(A) an analysis of the most successful practices in 
     attracting women-owned businesses as prime contractors and 
     subcontractors by--
       ``(i) Federal agencies (as supported by findings from the 
     study required under subsection (a)(1)) in Federal 
     procurement awards; and
       ``(ii) the private sector; and
       ``(B) recommendations for policy changes in Federal 
     procurement practices, including an increase in the Federal 
     procurement goal for women-owned businesses, in order to 
     maximize the number of women-owned businesses performing 
     Federal contracts.
       ``(b) Contracting Authority.--In carrying out this section, 
     the Council may contract with 1 or more public or private 
     entities.
       ``(c) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section, not to exceed 
     $200,000, to remain available until expended through fiscal 
     year 2000.''.
    TITLE IV--COMPETITIVENESS PROGRAM AND PROCUREMENT OPPORTUNITIES
           Subtitle A--Small Business Competitiveness Program

     SEC. 401. PROGRAM TERM.

       Section 711(c) of the Small Business Competitiveness 
     Demonstration Program Act of 1988 (15 U.S.C. 644 note) is 
     amended by striking ``1997'' and inserting ``2000''.

     SEC. 402. MONITORING AGENCY PERFORMANCE.

       Section 712(d)(1) of the Small Business Competitiveness 
     Demonstration Program Act of 1988 (15 U.S.C. 644 note) is 
     amended to read as follows:
       ``(1) Participating agencies shall monitor the attainment 
     of their small business participation goals on an annual 
     basis. An annual review by each participating agency shall be 
     completed not later than January 31 of each year, based on 
     the data for the preceding fiscal year, from October 1 
     through September 30.''.

     SEC. 403. REPORTS TO CONGRESS.

       Section 716(a) of the Small Business Competitiveness 
     Demonstration Program Act of 1988 (15 U.S.C. 644 note) is 
     amended--
       (1) by striking ``1996'' and inserting ``2000'';
       (2) by striking ``for Federal Procurement Policy'' and 
     inserting ``of the Small Business Administration''; and
       (3) by striking ``Government Operations'' and inserting 
     ``Government Reform and Oversight''.

     SEC. 404. SMALL BUSINESS PARTICIPATION IN DREDGING.

       Section 722(a) of the Small Business Competitiveness 
     Demonstration Program Act of 1988 (15 U.S.C. 644 note) is 
     amended by striking ``1996'' and inserting ``2000''.
      Subtitle B--Small Business Procurement Opportunities Program

     SEC. 411. CONTRACT BUNDLING.

       Section 2 of the Small Business Act (15 U.S.C. 631) is 
     amended by adding at the end the following:
       ``(j) In complying with the statement of congressional 
     policy expressed in subsection (a), relating to fostering the 
     participation of small business concerns in the contracting 
     opportunities of the Government, each Federal agency, to the 
     maximum extent practicable, shall--
       ``(1) comply with congressional intent to foster the 
     participation of small business concerns as prime 
     contractors, subcontractors, and suppliers;
       ``(2) structure its contracting requirements to facilitate 
     competition by and among small business concerns, taking all 
     reasonable steps to eliminate obstacles to their 
     participation; and
       ``(3) avoid unnecessary and unjustified bundling of 
     contract requirements that precludes small business 
     participation in procurements as prime contractors.''.

     SEC. 412. DEFINITION OF CONTRACT BUNDLING.

       Section 3 of the Small Business Act (15 U.S.C. 632) is 
     amended by adding at the end the following:
       ``(o) Definitions of Bundling of Contract Requirements and 
     Related Terms.--In this Act--
       ``(1) The term `bundling of contract requirements' means 
     consolidating two or more procurement requirements for goods 
     or services previously provided or performed under separate 
     smaller contracts into a solicitation of offers for a single 
     contract that is likely to be unsuitable for award to a 
     small-business concern due to--
       ``(A) the diversity, size, or specialized nature of the 
     elements of the performance specified;
       ``(B) the aggregate dollar value of the anticipated award;
       ``(C) the geographical dispersion of the contract 
     performance sites; or
       ``(D) any combination of the factors described in 
     subparagraphs (A), (B), and (C).
       ``(2) The term `separate smaller contract', with respect to 
     a bundling of contract requirements, means a contract that 
     has been performed by one or more small business concerns or 
     was suitable for award to one or more small business 
     concerns.
       ``(3) The term `bundled contract' means a contract that is 
     entered into to meet requirements that are consolidated in a 
     bundling of contract requirements.''.

     SEC. 413. ASSESSING PROPOSED CONTRACT BUNDLING.

       (a) In General.--Section 15 of the Small Business Act (15 
     U.S.C. 644) is amended by inserting after subsection (d) the 
     following new subsection (e):

[[Page H8109]]

       ``(e) Procurement Strategies; Contract Bundling.--
       ``(1) In general.--To the maximum extent practicable, 
     procurement strategies used by the various agencies having 
     contracting authority shall facilitate the maximum 
     participation of small business concerns as prime 
     contractors, subcontractors, and suppliers.
       ``(2) Market research.--
       ``(A) In general.--Before proceeding with an acquisition 
     strategy that could lead to a contract containing 
     consolidated procurement requirements, the head of an agency 
     shall conduct market research to determine whether 
     consolidation of the requirements is necessary and justified.
       ``(B) Factors.--For purposes of subparagraph (A), 
     consolidation of the requirements may be determined as being 
     necessary and justified if, as compared to the benefits that 
     would be derived from contracting to meet those requirements 
     if not consolidated, the Federal Government would derive from 
     the consolidation measurably substantial benefits, including 
     any combination of benefits that, in combination, are 
     measurably substantial. Benefits described in the preceding 
     sentence may include the following:
       ``(i) Cost savings.
       ``(ii) Quality improvements.
       ``(iii) Reduction in acquisition cycle times.
       ``(iv) Better terms and conditions.
       ``(v) Any other benefits.
       ``(C) Reduction of costs not determinative.--The reduction 
     of administrative or personnel costs alone shall not be a 
     justification for bundling of contract requirements unless 
     the cost savings are expected to be substantial in relation 
     to the dollar value of the procurement requirements to be 
     consolidated.
       ``(3) Strategy specifications.--If the head of a 
     contracting agency determines that a proposed procurement 
     strategy for a procurement involves a substantial bundling of 
     contract requirements, the proposed procurement strategy 
     shall--
       ``(A) identify specifically the benefits anticipated to be 
     derived from the bundling of contract requirements;
       ``(B) set forth an assessment of the specific impediments 
     to participation by small business concerns as prime 
     contractors that result from the bundling of contract 
     requirements and specify actions designed to maximize small 
     business participation as subcontractors (including 
     suppliers) at various tiers under the contract or contracts 
     that are awarded to meet the requirements; and
       ``(C) include a specific determination that the anticipated 
     benefits of the proposed bundled contract justify its use.
       ``(4) Contract teaming.--In the case of a solicitation of 
     offers for a bundled contract that is issued by the head of 
     an agency, a small-business concern may submit an offer that 
     provides for use of a particular team of subcontractors for 
     the performance of the contract. The head of the agency shall 
     evaluate the offer in the same manner as other offers, with 
     due consideration to the capabilities of all of the proposed 
     subcontractors. When a small business concern teams under 
     this paragraph, it shall not affect its status as a small 
     business concern for any other purpose.''.
       (b) Administration Review.--The third sentence of 
     subsection (a) of such section is amended--
       (1) by inserting after ``discrete construction projects,'' 
     the following: ``or the solicitation involves an unnecessary 
     or unjustified bundling of contract requirements, as 
     determined by the Administration,'';
       (2) by striking out ``or (4)'' and inserting in lieu 
     thereof ``(4)''; and
       (3) by inserting before the period at the end the 
     following: ``, or (5) why the agency has determined that the 
     bundled contract (as defined in section 3(o)) is necessary 
     and justified''.
       (c) Responsibilities of Agency Small Business Advocates.--
     Subsection (k) of such section is amended--
       (1) by redesignating paragraphs (5) through (9) as 
     paragraphs (6) through (10), respectively; and
       (2) by inserting after paragraph (4) the following:
       ``(5) identify proposed solicitations that involve 
     significant bundling of contract requirements, and work with 
     the agency acquisition officials and the Administration to 
     revise the procurement strategies for such proposed 
     solicitations where appropriate to increase the probability 
     of participation by small businesses as prime contractors, or 
     to facilitate small business participation as subcontractors 
     and suppliers, if a solicitation for a bundled contract is to 
     be issued;''.

     SEC. 414. REPORTING OF BUNDLED CONTRACT OPPORTUNITIES.

       (a) Data Collection Required.--The Federal Procurement Data 
     System described in section 6(d)(4)(A) of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 405(d)(4)(A)) shall 
     be modified to collect data regarding bundling of contract 
     requirements when the contracting officer anticipates that 
     the resulting contract price, including all options, is 
     expected to exceed $5,000,000. The data shall reflect a 
     determination made by the contracting officer regarding 
     whether a particular solicitation constitutes a contract 
     bundling.
       (b) Definitions.--In this section, the term ``bundling of 
     contract requirements'' has the meaning given that term in 
     section 3(o) of the Small Business Act (15 U.S.C. 632(o)) (as 
     added by section 412 of this title).

     SEC. 415. EVALUATING SUBCONTRACT PARTICIPATION IN AWARDING 
                   CONTRACTS.

       Section 8(d)(4) of the Small Business Act (15 U.S.C. 
     637(d)(4)) is amended by adding at the end the following:
       ``(G) The following factors shall be designated by the 
     Federal agency as significant factors for purposes of 
     evaluating offers for a bundled contract where the head of 
     the agency determines that the contract offers a significant 
     opportunity for subcontracting:
       ``(i) A factor that is based on the rate provided under the 
     subcontracting plan for small business participation in the 
     performance of the contract.
       ``(ii) For the evaluation of past performance of an 
     offeror, a factor that is based on the extent to which the 
     offeror attained applicable goals for small business 
     participation in the performance of contracts.''.

     SEC. 416. IMPROVED NOTICE OF SUBCONTRACTING OPPORTUNITIES.

       (a) Use of the Commerce Business Daily Authorized.--Section 
     8 of the Small Business Act (15 U.S.C. 637) is amended by 
     adding at the end the following:
       ``(k) Notices of Subcontracting Opportunities.--
       ``(1) In general.--Notices of subcontracting opportunities 
     may be submitted for publication in the Commerce Business 
     Daily by--
       ``(A) a business concern awarded a contract by an executive 
     agency subject to subsection (e)(1)(C); and
       ``(B) a business concern which is a subcontractor or 
     supplier (at any tier) to such contractor having a 
     subcontracting opportunity in excess of $10,000.
       ``(2) Content of notice.--The notice of a subcontracting 
     opportunity shall include--
       ``(A) a description of the business opportunity that is 
     comparable to the description specified in paragraphs (1), 
     (2), (3), and (4) of subsection (f); and
       ``(B) the due date for receipt of offers.''.
       (b) Regulations Required.--The Federal Acquisition 
     Regulation shall be amended to provide uniform implementation 
     of the amendments made by this section.
       (c) Conforming Amendment.--Section 8(e)(1)(C) of the Small 
     Business Act (15 U.S.C. 637(e)(1)(C)) is amended by striking 
     ``$25,000'' each place that term appears and inserting 
     ``$100,000''.

     SEC. 417. DEADLINES FOR ISSUANCE OF REGULATIONS.

       (a) Proposed Regulations.--Proposed amendments to the 
     Federal Acquisition Regulation or proposed Small Business 
     Administration regulations under this subtitle and the 
     amendments made by this subtitle shall be published not later 
     than 120 days after the date of enactment of this Act for the 
     purpose of obtaining public comment pursuant to section 22 of 
     the Office of Federal Procurement Policy Act (41 U.S.C. 
     418b), or chapter 5 of title 5, United States Code, as 
     appropriate. The public shall be afforded not less than 60 
     days to submit comments.
       (b) Final Regulations.--Final regulations shall be 
     published not later than 270 days after the date of enactment 
     of this Act. The effective date for such final regulations 
     shall be not less than 30 days after the date of publication.
                   TITLE V--MISCELLANEOUS PROVISIONS

     SEC. 501. SMALL BUSINESS TECHNOLOGY TRANSFER PROGRAM.

       (a) Required Expenditures.--Section 9(n) of the Small 
     Business Act (15 U.S.C. 638(n)) is amended by striking 
     paragraph (1) and inserting the following:
       ``(1) Required expenditure amounts.--With respect to fiscal 
     years 1998, 1999, 2000, 2001, 2002, or 2003, each Federal 
     agency that has an extramural budget for research, or 
     research and development, in excess of $1,000,000,000 for 
     that fiscal year, is authorized to expend with small business 
     concerns not less than 0.15 percent of that extramural budget 
     specifically in connection with STTR programs that meet the 
     requirements of this section and any policy directives and 
     regulations issued under this section.''.
       (b) Pilot Program.--
       (1) In general.--Section 9 of the Small Business Act (15 
     U.S.C. 638) is amended by adding at the end the following:
       ``(s) Pilot Program.--
       ``(1) Definition of eligible state.--In this subsection, 
     the term `eligible State' means a State--
       ``(A) if the total value of contracts awarded to the State 
     during fiscal year 1995 under this section was less than 
     $5,000,000; and
       ``(B) that certifies to the Federal agency described in 
     paragraph (2) that the State will, upon receipt of assistance 
     under this subsection, provide matching funds from non-
     Federal sources in an amount that is not less than 50 percent 
     of the amount provided under this subsection.
       ``(2) Program authority.--Of amounts made available to 
     carry out this section for fiscal year 1998, 1999, or 2000, 
     the Administrator may expend with eligible States not more 
     than $2,000,000 in each such fiscal year in order to increase 
     the participation of small business concerns located in those 
     States in the programs under this section.
       ``(3) Amount of assistance.--The amount of assistance 
     provided to an eligible State under this subsection in any 
     fiscal year--
       ``(A) shall be equal to twice the total amount of matching 
     funds from non-Federal sources provided by the State; and
       ``(B) shall not exceed $100,000.

[[Page H8110]]

       ``(4) Use of assistance.--Assistance provided to an 
     eligible State under this subsection shall be used by the 
     State, in consultation with State and local departments and 
     agencies, for programs and activities to increase the 
     participation of small business concerns located in the State 
     in the programs under this section, including--
       ``(A) the establishment of quantifiable performance goals, 
     including goals relating to--
       ``(i) the number of program awards under this section made 
     to small business concerns in the State; and
       ``(ii) the total amount of Federal research and development 
     contracts awarded to small business concerns in the State;
       ``(B) the provision of competition outreach support to 
     small business concerns in the State that are involved in 
     research and development; and
       ``(C) the development and dissemination of educational and 
     promotional information relating to the programs under this 
     section to small business concerns in the State.''.
       (2) Repeal.--Effective October 1, 2000, section 9(s) of the 
     Small Business Act (as added by paragraph (1) of this 
     subsection) is repealed.

     SEC. 502. SMALL BUSINESS DEVELOPMENT CENTERS.

       (a) In General.--Section 21(a) of the Small Business Act 
     (15 U.S.C. 648(a)) is amended--
       (1) in paragraph (1)--
       (A) by inserting ``any women's business center operating 
     pursuant to section 29,'' after ``credit or finance 
     corporation,'';
       (B) by inserting ``or a women's business center operating 
     pursuant to section 29'' after ``other than an institution of 
     higher education''; and
       (C) by inserting ``and women's business centers operating 
     pursuant to section 29'' after ``utilize institutions of 
     higher education'';
       (2) in paragraph (3)--
       (A) by striking ``, but with'' and all that follows through 
     ``parties.'' and inserting the following: ``for the delivery 
     of programs and services to the Small Business community. 
     Such programs and services shall be jointly developed, 
     negotiated, and agreed upon, with full participation of both 
     parties, pursuant to an executed cooperative agreement 
     between the Small Business Development Center applicant and 
     the Administration.''; and
       (B) by adding at the end the following:
       ``(C) On an annual basis, the Small Business Development 
     Center shall review and coordinate public and private 
     partnerships and cosponsorships with the Administration for 
     the purpose of more efficiently leveraging available 
     resources on a National and a State basis.'';
       (3) in paragraph (4)(C)--
       (A) by striking clause (i) and inserting the following:
       ``(i) In general.--
       ``(I) Grant amount.--Subject to subclause (II), the amount 
     of a grant received by a State under this section shall be 
     equal to the greater of $500,000, or the sum of--

       ``(aa) the State's pro rata share of the national program, 
     based upon the population of the State as compared to the 
     total population of the United States; and
       ``(bb) $300,000 in fiscal year 1998, $400,000 in fiscal 
     year 1999, and $500,000 in each fiscal year thereafter.

       ``(II) Pro rata reductions.--If the amount made available 
     to carry out this section for any fiscal year is insufficient 
     to carry out subclause (I), the Administration shall make pro 
     rata reductions in the amounts otherwise payable to States 
     under this clause.''; and
       (B) in clause (iii), by striking ``(iii)'' and all that 
     follows through ``1997.'' and inserting the following:
       ``(iii) Authorization of appropriations.--There are 
     authorized to be appropriated to carry out the national 
     program under this section--
       ``(I) $85,000,000 for fiscal year 1998;
       ``(II) $90,000,000 for fiscal year 1999; and
       ``(III) $95,000,000 for fiscal year 2000 and each fiscal 
     year thereafter.''; and
       (4) in paragraph (6)--
       (A) in subparagraph (A), by striking ``and'' at the end;
       (B) in subparagraph (B), by striking the comma at the end 
     and inserting ``; and''; and
       (C) inserting after subparagraph (B) the following:
       ``(C) with outreach, development, and enhancement of 
     minority-owned small business startups or expansions, 
     veteran-owned small business startups or expansions, and 
     women-owned small business startups or expansions, in 
     communities impacted by base closings or military or 
     corporate downsizing, or in rural or underserved 
     communities;''.
       (b) SBDC Services.--Section 21(c) of the Small Business Act 
     (15 U.S.C. 648(c)) is amended--
       (1) in paragraph (3)--
       (A) in subparagraph (A), by striking ``businesses;'' and 
     inserting ``businesses, including--
       ``(i) working with individuals to increase awareness of 
     basic credit practices and credit requirements;
       ``(ii) working with individuals to development business 
     plans, financial packages, credit applications, and contract 
     proposals;
       ``(iii) working with the Administration to develop and 
     provide informational tools for use in working with 
     individuals on pre-business startup planning, existing 
     business expansion, and export planning; and
       ``(iv) working with individuals referred by the local 
     offices of the Administration and Administration 
     participating lenders;'';
       (B) in each of subparagraphs (B), (C), (D), (E), (F), (G), 
     (M), (N), (O), (Q), and (R) by moving each margin two ems to 
     the right;
       (C) in subparagraph (C), by inserting ``and the 
     Administration'' after ``Center'';
       (D) by striking subparagraph (H), and inserting the 
     following:
       ``(H) working with the technical and environmental 
     compliance assistance programs established in each State 
     under section 507 of the Clean Air Act Amendments of 1970, or 
     State pollution prevention programs to notify small 
     businesses through outreach programs of regulations that 
     affect small businesses and making counseling, conferences, 
     and materials available on methods of compliance;'';
       (E) in subparagraph (Q), by striking ``and'' at the end;
       (F) in subparagraph (R), by striking the period at the end 
     and inserting ``; and''; and
       (G) by inserting after subparagraph (R) the following:
       ``(S) providing counseling and technology development when 
     necessary to help small businesses find solutions for 
     complying with environmental, energy, health, safety, and 
     other Federal, State, and local regulation including 
     cooperating with the technical and environmental compliance 
     assistance programs established in each State under section 
     507 of the Clean Air Act Amendments of 1970 or State 
     pollution prevention programs in the provision of counseling 
     and technology development to help small businesses find 
     solutions for complying with environmental regulations.'';
       (2) in paragraph (5)--
       (A) by moving the margin 2 ems to the right;
       (B) by striking ``paragraph (a)(1)'' and inserting 
     ``subsection (a)(1)'';
       (C) by striking ``which ever'' and inserting ``whichever''; 
     and
       (D) by striking ``last,,'' and inserting ``last,'';
       (3) by redesignating paragraphs (4) through (7) as 
     paragraphs (5) through (8), respectively; and
       (4) in paragraph (3), in the undesignated material 
     following subparagraph (S) (as added by this subsection), by 
     striking ``A small'' and inserting the following:
       ``(4) A small''.
       (c) Competitive Awards.--Section 21(l) of the Small 
     Business Act (15 U.S.C. 648(l)) is amended by adding at the 
     end the following: ``If any contract under this section with 
     an entity that is in compliance with this section is not 
     renewed or extended, any award of a contract under this 
     section to another entity shall be made on a competitive 
     basis.''.
       (d) Prohibition on Certain Fees.--Section 21 of the Small 
     Business Act (15 U.S.C. 648) is amended by adding at the end 
     the following:
       ``(m) Prohibition on Certain Fees.--A small business 
     development center shall not impose or otherwise collect a 
     fee or other compensation in connection with the provision of 
     counseling services under this section.''.

     SEC. 503. PILOT PREFERRED SURETY BOND GUARANTEE PROGRAM 
                   EXTENSION.

       Section 207 of the Small Business Administration 
     Reauthorization and Amendment Act of 1988 (15 U.S.C. 694b 
     note) is amended by striking ``September 30, 1997'' and 
     inserting ``September 30, 2000''.

     SEC. 504. EXTENSION OF COSPONSORSHIP AUTHORITY.

       Section 401(a)(2) of the Small Business Administration 
     Reauthorization and Amendments Act of 1994 (15 U.S.C. 637 
     note) is amended by striking ``September 30, 1997'' and 
     inserting ``September 30, 2000''.

     SEC. 505. ASSET SALES.

       In connection with the Administration's implementation of a 
     program to sell to the private sector loans and other assets 
     held by the Administration, the Administration shall provide 
     to the Committees on Small Business in the Senate and House 
     of Representatives a copy of the draft and final plans 
     describing the sale and the anticipated benefits resulting 
     from such sale.

     SEC. 506. SMALL BUSINESS EXPORT PROMOTION.

       (a) In General.--Section 21(c)(3) of the Small Business Act 
     (15 U.S.C. 648(c)(3)) is amended--
       (1) in subparagraph (Q), by striking ``and'' at the end;
       (2) in subparagraph (B), by striking the period at the end 
     and inserting ``; and''; and
       (3) by inserting after subparagraph (R) the following:
       ``(S) providing small business owners with access to a wide 
     variety of export-related information by establishing on-line 
     computer linkages between small business development centers 
     and an international trade data information network with ties 
     to the Export Assistance Center program.''.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out section 21(c)(3)(S) of the 
     Small Business Act (15 U.S.C. 648(c)(3)(S)), as added by this 
     section, $1,500,000 for each fiscal years 1998 and 1999.

     SEC. 507. DEFENSE LOAN AND TECHNICAL ASSISTANCE PROGRAM.

       (a) DELTA Program Authorized.--
       (1) In general.--The Administrator of the Small Business 
     Administration may administer the Defense Loan and Technical 
     Assistance program in accordance with the authority and 
     requirements of this section.
       (2) Expiration of authority.--The authority of the 
     Administrator to carry out the DELTA program under paragraph 
     (1) shall terminate when the funds referred to in subsection 
     (g)(1) have been expended.

[[Page H8111]]

       (3) DELTA program defined.--In this section, the terms 
     ``Defense Loan and Technical Assistance program'' and ``DELTA 
     program'' mean the Defense Loan and Technical Assistance 
     program that has been established by a memorandum of 
     understanding entered into by the Administrator and the 
     Secretary of Defense on June 26, 1995.
       (b) Assistance.--
       (1) Authority.--Under the DELTA program, the Administrator 
     may assist small business concerns that are economically 
     dependent on defense expenditures to acquire dual-use 
     capabilities.
       (2) Forms of assistance.--Forms of assistance authorized 
     under paragraph (1) are as follows:
       (A) Loan guarantees.--Loan guarantees under the terms and 
     conditions specified under this section and other applicable 
     law.
       (B) Nonfinancial assistance.--Other forms of assistance 
     that are not financial.
       (c) Administration of Program.--In the administration of 
     the DELTA program under this section, the Administrator 
     shall--
       (1) process applications for DELTA program loan guarantees;
       (2) guarantee repayment of the resulting loans in 
     accordance with this section; and
       (3) take such other actions as are necessary to administer 
     the program.
       (d) Selection and Eligibility Requirements for DELTA Loan 
     Guarantees.--
       (1) In general.--The selection criteria and eligibility 
     requirements set forth in this subsection shall be applied in 
     the selection of small business concerns to receive loan 
     guarantees under the DELTA program.
       (2) Selection criteria.--The criteria used for the 
     selection of a small business concern to receive a loan 
     guarantee under this section are as follows:
       (A) The selection criteria established under the memorandum 
     of understanding referred to in subsection (a)(3).
       (B) The extent to which the loans to be guaranteed would 
     support the retention of defense workers whose employment 
     would otherwise be permanently or temporarily terminated as a 
     result of reductions in expenditures by the United States for 
     defense, the termination or cancellation of a defense 
     contract, the failure to proceed with an approved major 
     weapon system, the merger or consolidation of the operations 
     of a defense contractor, or the closure or realignment of a 
     military installation.
       (C) The extent to which the loans to be guaranteed would 
     stimulate job creation and new economic activities in 
     communities most adversely affected by reductions in 
     expenditures by the United States for defense, the 
     termination or cancellation of a defense contract, the 
     failure to proceed with an approved major weapon system, the 
     merger or consolidation of the operations of a defense 
     contractor, or the closure or realignment of a military 
     installation.
       (D) The extent to which the loans to be guaranteed would be 
     used to acquire (or permit the use of other funds to acquire) 
     capital equipment to modernize or expand the facilities of 
     the borrower to enable the borrower to remain in the national 
     technology and industrial base available to the Department of 
     Defense.
       (3) Eligibility requirements.--To be eligible for a loan 
     guarantee under the DELTA program, a borrower must 
     demonstrate to the satisfaction of the Administrator that, 
     during any 1 of the 5 preceding operating years of the 
     borrower, not less than 25 percent of the value of the 
     borrower's sales were derived from--
       (A) contracts with the Department of Defense or the 
     defense-related activities of the Department of Energy; or
       (B) subcontracts in support of defense-related prime 
     contracts.
       (e) Maximum Amount of Loan Principal.--The maximum amount 
     of loan principal for which the Administrator may provide a 
     guarantee under this section during a fiscal year may not 
     exceed $1,250,000.
       (f) Loan Guaranty Rate.--The maximum allowable guarantee 
     percentage for loans guaranteed under this section may not 
     exceed 80 percent.
       (g) Funding.--
       (1) In general.--The funds that have been made available 
     for loan guarantees under the DELTA program and have been 
     transferred from the Department of Defense to the Small 
     Business Administration before the date of the enactment of 
     this Act shall be used for carrying out the DELTA program 
     under this section.
       (2) Continued availability of existing funds.--The funds 
     made available under the second proviso under the heading 
     ``Research, Development, Test and Evaluation, Defense-Wide'' 
     in Public Law 103-335 (108 Stat. 2613) shall be available 
     until expended--
       (A) to cover the costs (as defined in section 502(5) of the 
     Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5))) of loan 
     guarantees issued under this section; and
       (B) to cover the reasonable costs of the administration of 
     the loan guarantees.
                       TITLE VI--HUBZONE PROGRAM

     SEC. 601. SHORT TITLE.

       This title may be cited as the ``HUBZone Act of 1997''.

     SEC. 602. HISTORICALLY UNDERUTILIZED BUSINESS ZONES.

       (a) Definitions.--Section 3 of the Small Business Act (15 
     U.S.C. 632) (as amended by section 412 of this Act) is 
     amended by adding at the end the following:
       ``(p) Definitions Relating to HUBZones.--In this Act:
       ``(1) Historically underutilized business zone.--The term 
     `historically underutilized business zone' means any area 
     located within 1 or more--
       ``(A) qualified census tracts;
       ``(B) qualified nonmetropolitan counties; or
       ``(C) lands within the external boundaries of an Indian 
     reservation.
       ``(2) HUBZone.--The term `HUBZone' means a historically 
     underutilized business zone.
       ``(3) HUBZone small business concern.--The term `HUBZone 
     small business concern' means a small business concern--
       ``(A) that is owned and controlled by 1 or more persons, 
     each of whom is a United States citizen; and
       ``(B) the principal office of which is located in a 
     HUBZone; or
       ``(4) Qualified areas.--
       ``(A) Qualified census tract.--The term `qualified census 
     tract' has the meaning given that term in section 
     42(d)(5)(C)(i)(I) of the Internal Revenue Code of 1986.
       ``(B) Qualified nonmetropolitan county.--The term 
     `qualified nonmetropolitan county' means any county--
       ``(i) that, based on the most recent data available from 
     the Bureau of the Census of the Department of Commerce--

       ``(I) is not located in a metropolitan statistical area (as 
     that term is defined in section 143(k)(2)(B) of the Internal 
     Revenue Code of 1986); and
       ``(II) in which the median household income is less than 80 
     percent of the nonmetropolitan State median household income; 
     or

       ``(ii) that, based on the most recent data available from 
     the Secretary of Labor, has an unemployment rate that is not 
     less than 140 percent of the statewide average unemployment 
     rate for the State in which the county is located.
       ``(5) Qualified hubzone small business concern.--
       ``(A) In general.--A HUBZone small business concern is 
     `qualified', if--
       ``(i) the small business concern has certified in writing 
     to the Administrator (or the Administrator otherwise 
     determines, based on information submitted to the 
     Administrator by the small business concern, or based on 
     certification procedures, which shall be established by the 
     Administration by regulation) that--

       ``(I) it is a HUBZone small business concern;
       ``(II) not less than 35 percent of the employees of the 
     small business concern reside in a HUBZone, and the small 
     business concern will attempt to maintain this employment 
     percentage during the performance of any contract awarded to 
     the small business concern on the basis of a preference 
     provided under section 31(b); and
       ``(III) with respect to any subcontract entered into by the 
     small business concern pursuant to a contract awarded to the 
     small business concern under section 31, the small business 
     concern will ensure that--

       ``(aa) in the case of a contract for services (except 
     construction), not less than 50 percent of the cost of 
     contract performance incurred for personnel will be expended 
     for its employees or for employees of other HUBZone small 
     business concerns; and
       ``(bb) in the case of a contract for procurement of 
     supplies (other than procurement from a regular dealer in 
     such supplies), not less than 50 percent of the cost of 
     manufacturing the supplies (not including the cost of 
     materials) will be incurred in connection with the 
     performance of the contract in a HUBZone by 1 or more HUBZone 
     small business concerns; and
       ``(ii) no certification made or information provided by the 
     small business concern under clause (i) has been, in 
     accordance with the procedures established under section 
     31(c)(1)--

       ``(I) successfully challenged by an interested party; or
       ``(II) otherwise determined by the Administrator to be 
     materially false.

       ``(B) Change in percentages.--The Administrator may utilize 
     a percentage other than the percentage specified in under 
     subclause (IV) or (V) of subparagraph (A)(i), if the 
     Administrator determines that such action is necessary to 
     reflect conventional industry practices among small business 
     concerns that are below the numerical size standard for 
     businesses in that industry category.
       ``(C) Construction and other contracts.--The Administrator 
     shall promulgate final regulations imposing requirements that 
     are similar to those specified in subclauses (IV) and (V) of 
     subparagraph (A)(i) on contracts for general and specialty 
     construction, and on contracts for any other industry 
     category that would not otherwise be subject to those 
     requirements. The percentage applicable to any such 
     requirement shall be determined in accordance with 
     subparagraph (B).
       ``(D) List of qualified small business concerns.--The 
     Administrator shall establish and maintain a list of 
     qualified HUBZone small business concerns, which list shall, 
     to the extent practicable--
       ``(i) include the name, address, and type of business with 
     respect to each such small business concern;
       ``(ii) be updated by the Administrator not less than 
     annually; and
       ``(iii) be provided upon request to any Federal agency or 
     other entity.''.
       (b) Federal Contracting.--
       (1) In general.--The Small Business Act (15 U.S.C. 631 et 
     seq.) is amended--

[[Page H8112]]

       (A) by redesignating section 31 as section 32; and
       (B) by inserting after section 30 the following:

     ``SEC. 31. HUBZONE PROGRAM.

       ``(a) In General.--There is established within the 
     Administration a program to be carried out by the 
     Administrator to provide for Federal contracting assistance 
     to qualified HUBZone small business concerns in accordance 
     with this section.
       ``(b) Eligible Contracts.--
       ``(1) Definitions.--In this subsection--
       ``(A) the term `contracting officer' has the meaning given 
     that term in section 27(f)(5) of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 423(f)(5)); and
       ``(B) the terms `executive agency' and `full and open 
     competition' have the meanings given such terms in section 4 
     of the Office of Federal Procurement Policy Act (41 U.S.C. 
     403).
       ``(2) Requirements.--Subject to paragraph (3), a contract 
     opportunity offered for award pursuant to this section shall 
     be awarded on the basis of competition restricted to 
     qualified HUBZone small business concerns, if there is a 
     reasonable expectation that not less than 2 qualified HUBZone 
     small business concerns will submit offers and that award can 
     be made at a fair market price.
       ``(3) Alternate authority.--Notwithstanding any other 
     provision of law, a contracting officer may award sole source 
     contracts under this section to any qualified HUBZone small 
     business concern, if--
       ``(A) the qualified HUBZone small business concern is 
     determined to be a responsible contractor with respect to 
     performance of such contract opportunity;
       ``(B) the anticipated award price of the contract 
     (including options) will not exceed--
       ``(i) $5,000,000, in the case of a contract opportunity 
     assigned a standard industrial classification code for 
     manufacturing; or
       ``(ii) $3,000,000, in the case of all other contract 
     opportunities; and
       ``(C) in the estimation of the contracting officer, the 
     contract award can be made at a fair and reasonable price.
       ``(4) Price evaluation preference in full and open 
     competitions.--In any case in which a contract is to be 
     awarded on the basis of full and open competition, the price 
     offered by a small business concern shall be deemed as being 
     lower than the price offered by another offeror (other than 
     another small business concern), if the price offered by the 
     qualified HUBZone small business concern is not more than 10 
     percent higher than the price offered by the otherwise 
     lowest, responsive, and responsible offeror.
       ``(5) Relationship to other contracting preferences.--
       ``(A) Subordinate relationship.--A procurement may not be 
     made from a source on the basis of a preference provided in 
     paragraph (2), (3), or (4), if the procurement would 
     otherwise be made from a different source under section 4124 
     or 4125 of title 18, United States Code, or the Javits-
     Wagner-O'Day Act.
       ``(B) Parity relationship.--The provisions of paragraphs 
     (2), (3), and (4) shall not limit the discretion of a 
     contracting officer to let any procurement contract to the 
     Administration under section 8(a). Notwithstanding section 
     8(a), the Administration may not appeal an adverse decision 
     of any contracting officer declining to let a procurement 
     contract to the Administration, if the procurement is made to 
     a qualified HUBZone small business concern on the basis of a 
     preference under paragraph (2), (3), or (4).
       ``(c) Enforcement; Penalties.--
       ``(1) Verification of eligibility.--In carrying out this 
     section, the Administrator shall establish procedures 
     relating to--
       ``(A) the filing, investigation, and disposition by the 
     Administration of any challenge to the eligibility of a small 
     business concern to receive assistance under this section 
     (including a challenge, filed by an interested party, 
     relating to the veracity of a certification made or 
     information provided to the Administration by a small 
     business concern under section 3(p)(5)); and
       ``(B) verification by the Administrator of the accuracy of 
     any certification made or information provided to the 
     Administration by a small business concern under section 
     3(p)(5).
       ``(2) Examinations.--The procedures established under 
     paragraph (1) may provide for program examinations (including 
     random program examinations) by the Administrator of any 
     small business concern making a certification or providing 
     information to the Administrator under section 3(p)(5).
       ``(3) Provision of data.--Upon the request of the 
     Administrator, the Secretary of Labor, the Secretary of 
     Housing and Urban Development, and the Secretary of the 
     Interior (or the Assistant Secretary for Indian Affairs), 
     shall promptly provide to the Administrator such information 
     as the Administrator determines to be necessary to carry out 
     this subsection.
       ``(4) Penalties.--In addition to the penalties described in 
     section 16(d), any small business concern that is determined 
     by the Administrator to have misrepresented the status of 
     that concern as a `HUBZone small business concern' for 
     purposes of this section, shall be subject to--
       ``(A) section 1001 of title 18, United States Code; and
       ``(B) sections 3729 through 3733 of title 31, United States 
     Code.''.
       (2) Initial limited applicability.--During the period 
     beginning on the date of enactment of this Act and ending on 
     September 30, 2000, section 31 of the Small Business Act (as 
     added by paragraph (1) of this subsection) shall apply only 
     to procurements by--
       (A) the Department of Defense;
       (B) the Department of Agriculture;
       (C) the Department of Health and Human Services;
       (D) the Department of Transportation;
       (E) the Department of Energy;
       (F) the Department of Housing and Urban Development;
       (G) the Environmental Protection Agency;
       (H) the National Aeronautics and Space Administration;
       (I) the General Services Administration; and
       (J) the Department of Veterans Affairs.

     SEC. 603. TECHNICAL AND CONFORMING AMENDMENTS TO THE SMALL 
                   BUSINESS ACT.

       (a) Performance of Contracts.--Section 8(d) of the Small 
     Business Act (15 U.S.C. 637(d)) is amended--
       (1) in paragraph (1)--
       (A) in the first sentence, by striking ``,, small business 
     concerns owned and controlled by socially and economically 
     disadvantaged individuals'' and inserting ``, qualified 
     HUBZone small business concerns, small business concerns 
     owned and controlled by socially and economically 
     disadvantaged individuals''; and
       (B) in the second sentence, by inserting ``qualified 
     HUBZone small business concerns,'' after ``small business 
     concerns,'';
       (2) in paragraph (3)--
       (A) by inserting ``qualified HUBZone small business 
     concerns,'' after ``small business concerns,'' each place 
     that term appears; and
       (B) by adding at the end the following:
       ``(F) In this contract, the term `qualified HUBZone small 
     business concern' has the meaning given that term in section 
     3(p) of the Small Business Act.'';
       (3) in paragraph (4)(E), by striking ``small business 
     concerns and'' and inserting ``small business concerns, 
     qualified HUBZone small business concerns, and'';
       (4) in paragraph (6), by inserting ``qualified HUBZone 
     small business concerns,'' after ``small business concerns,'' 
     each place that term appears; and
       (5) in paragraph (10), by inserting ``qualified HUBZone 
     small business concerns,'' after ``small business 
     concerns,''.
       (b) Awards of Contracts.--Section 15 of the Small Business 
     Act (15 U.S.C. 644) is amended--
       (1) in subsection (g)(1)--
       (A) by inserting ``qualified HUBZone small business 
     concerns,'' after ``small business concerns,'' each place 
     that term appears;
       (B) in the second sentence, by striking ``20 percent'' and 
     inserting ``23 percent''; and
       (C) by inserting after the second sentence the following: 
     ``The Governmentwide goal for participation by qualified 
     HUBZone small business concerns shall be established at not 
     less than 1 percent of the total value of all prime contract 
     awards for fiscal year 1999, not less than 1.5 percent of the 
     total value of all prime contract awards for fiscal year 
     2000, not less than 2 percent of the total value of all prime 
     contract awards for fiscal year 2001, not less than 2.5 
     percent of the total value of all prime contract awards for 
     fiscal year 2002, and not less than 3 percent of the total 
     value of all prime contract awards for fiscal year 2003 and 
     each fiscal year thereafter.'';
       (2) in subsection (g)(2)--
       (A) in the first sentence, by striking ``,, by small 
     business concerns owned and controlled by socially and 
     economically disadvantaged individuals'' and inserting ``, by 
     qualified HUBZone small business concerns, by small business 
     concerns owned and controlled by socially and economically 
     disadvantaged individuals'';
       (B) in the second sentence, by inserting ``qualified 
     HUBZone small business concerns,'' after ``small business 
     concerns,''; and
       (C) in the fourth sentence, by striking ``by small business 
     concerns owned and controlled by socially and economically 
     disadvantaged individuals and participation by small business 
     concerns owned and controlled by women'' and inserting ``by 
     qualified HUBZone small business concerns, by small business 
     concerns owned and controlled by socially and economically 
     disadvantaged individuals, and by small business concerns 
     owned and controlled by women''; and
       (3) in subsection (h), by inserting ``qualified HUBZone 
     small business concerns,'' after ``small business concerns,'' 
     each place that term appears.
       (c) Offenses and Penalties.--Section 16 of the Small 
     Business Act (15 U.S.C. 645) is amended--
       (1) in subsection (d)(1)--
       (A) by inserting ``, a `qualified HUBZone small business 
     concern','' after `` `small business concern',''; and
       (B) in subparagraph (A), by striking ``section 9 or 15'' 
     and inserting ``section 9, 15, or 31''; and
       (2) in subsection (e), by inserting ``, a `HUBZone small 
     business concern','' after `` `small business concern',''.

     SEC. 604. OTHER TECHNICAL AND CONFORMING AMENDMENTS.

       (a) Title 10, United States Code.--Section 2323 of title 
     10, United States Code, is amended--
       (1) in subsection (a)(1)(A), by inserting before the 
     semicolon the following: ``, and

[[Page H8113]]

     qualified HUBZone small business concerns (as that term is 
     defined in section 3(p) of the Small Business Act)''; and
       (2) in subsection (f)(1), by inserting ``or as a qualified 
     HUBZone small business concern (as that term is defined in 
     section 3(p) of the Small Business Act)'' after ``(as 
     described in subsection (a))''.
       (b) Federal Home Loan Bank Act.--Section 21A(b)(13) of the 
     Federal Home Loan Bank Act (12 U.S.C. 1441a(b)(13)) is 
     amended--
       (1) by striking ``concerns and small'' and inserting 
     ``concerns, small''; and
       (2) by inserting ``, and qualified HUBZone small business 
     concerns (as that term is defined in section 3(p) of the 
     Small Business Act)'' after ``disadvantaged individuals''.
       (c) Small Business Economic Policy Act of 1980.--Section 
     303(e) of the Small Business Economic Policy Act of 1980 (15 
     U.S.C. 631b(e)) is amended--
       (1) in paragraph (1), by striking ``and'' at the end;
       (2) in paragraph (2), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(3) qualified HUBZone small business concern (as that 
     term is defined in section 3(p) of the Small Business 
     Act).''.
       (d) Small Business Investment Act of 1958.--Section 
     411(c)(3)(B) of the Small Business Investment Act of 1958 (15 
     U.S.C. 694b(c)(3)(B)) is amended by inserting before the 
     semicolon the following: ``, or to a qualified HUBZone small 
     business concern, as that term is defined in section 3(p) of 
     the Small Business Act''.
       (e) Title 31, United States Code.--
       (1) Contracts for collection services.--Section 3718(b) of 
     title 31, United States Code, is amended--
       (A) in paragraph (1)(B), by inserting ``and law firms that 
     are qualified HUBZone small business concerns (as that term 
     is defined in section 3(p) of the Small Business Act)'' after 
     ``disadvantaged individuals''; and
       (B) in paragraph (3)--
       (i) in the first sentence, by inserting before the period 
     ``and law firms that are qualified HUBZone small business 
     concerns'';
       (ii) in subparagraph (A), by striking ``and'' at the end;
       (iii) in subparagraph (B), by striking the period at the 
     end and inserting ``; and''; and
       (iv) by adding at the end the following:
       ``(C) the term `qualified HUBZone small business concern' 
     has the meaning given that term in section 3(p) of the Small 
     Business Act.''.
       (2) Payments to local governments.--Section 6701(f) of 
     title 31, United States Code, is amended--
       (A) in paragraph (1)--
       (i) in subparagraph (A), by striking ``and'' at the end;
       (ii) in subparagraph (B), by striking the period at the end 
     and inserting ``; and''; and
       (iii) by adding at the end the following:
       ``(C) qualified HUBZone small business concerns.''; and
       (B) in paragraph (3)--
       (i) in subparagraph (A), by striking ``and'' at the end;
       (ii) in subparagraph (B), by striking the period at the end 
     and inserting ``; and''; and
       (iii) by adding at the end the following:
       ``(C) the term `qualified HUBZone small business concern' 
     has the meaning given that term in section 3(p) of the Small 
     Business Act (15 U.S.C. 632(o)).''.
       (3) Regulations.--Section 7505(c) of title 31, United 
     States Code, is amended by striking ``small business concerns 
     and'' and inserting ``small business concerns, qualified 
     HUBZone small business concerns, and''.
       (f) Office of Federal Procurement Policy Act.--
       (1) Enumeration of included functions.--Section 6(d) of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 405(d)) 
     is amended--
       (A) in paragraph (11), by inserting ``qualified HUBZone 
     small business concerns (as that term is defined in section 
     3(p) of the Small Business Act),'' after ``small 
     businesses,''; and
       (B) in paragraph (12), by inserting ``qualified HUBZone 
     small business concerns (as that term is defined in section 
     3(p) of the Small Business Act (15 U.S.C. 632(o)),'' after 
     ``small businesses,''.
       (2) Procurement data.--Section 502 of the Women's Business 
     Ownership Act of 1988 (41 U.S.C. 417a) is amended--
       (A) in subsection (a)--
       (i) in the first sentence, by inserting ``the number of 
     qualified HUBZone small business concerns,'' after 
     ``Procurement Policy''; and
       (ii) by inserting a comma after ``women''; and
       (B) in subsection (b), by inserting after ``section 204 of 
     this Act'' the following: ``, and the term `qualified HUBZone 
     small business concern' has the meaning given that term in 
     section 3(p) of the Small Business Act (15 U.S.C. 632(o)).''.
       (g) Energy Policy Act of 1992.--Section 3021 of the Energy 
     Policy Act of 1992 (42 U.S.C. 13556) is amended--
       (1) in subsection (a)--
       (A) in paragraph (2), by striking ``or'';
       (B) in paragraph (3), by striking the period and inserting 
     ``; or''; and
       (C) by adding at the end the following:
       ``(4) qualified HUBZone small business concerns.''; and
       (2) in subsection (b), by adding at the end the following:
       ``(3) The term `qualified HUBZone small business concern' 
     has the meaning given that term in section 3(p) of the Small 
     Business Act (15 U.S.C. 632(o)).''.
       (h) Title 49, United States Code.--
       (1) Project grant application approval conditioned on 
     assurances about airport operation.--Section 47107(e) of 
     title 49, United States Code, is amended--
       (A) in paragraph (1), by inserting before the period ``or 
     qualified HUBZone small business concerns (as that term is 
     defined in section 3(p) of the Small Business Act)'';
       (B) in paragraph (4)(B), by inserting before the period 
     ``or as a qualified HUBZone small business concern (as that 
     term is defined in section 3(p) of the Small Business Act)''; 
     and
       (C) in paragraph (6), by inserting ``or a qualified HUBZone 
     small business concern (as that term is defined in section 
     3(p) of the Small Business Act)'' after ``disadvantaged 
     individual''.
       (2) Minority and disadvantaged business participation.--
     Section 47113 of title 49, United States Code, is amended--
       (A) in subsection (a)--
       (i) in paragraph (1), by striking the period at the end and 
     inserting a semicolon;
       (ii) in paragraph (2), by striking the period at the end 
     and inserting ``; and''; and
       (iii) by adding at the end the following:
       ``(3) the term `qualified HUBZone small business concern' 
     has the meaning given that term in section 3(p) of the Small 
     Business Act (15 U.S.C. 632(o)).''; and
       (B) in subsection (b), by inserting before the period ``or 
     qualified HUBZone small business concerns''.

     SEC. 605. REGULATIONS.

       (a) In General.--Not later than 180 days after the date of 
     enactment of this Act, the Administrator of the Small 
     Business Administration shall publish in the Federal Register 
     such final regulations as may be necessary to carry out this 
     title and the amendments made by this title.
       (b) Federal Acquisition Regulation.--Not later than 180 
     days after the date on which final regulations are published 
     under subsection (a), the Federal Acquisition Regulatory 
     Council shall amend the Federal Acquisition Regulation in 
     order to ensure consistency between the Federal Acquisition 
     Regulation, this title and the amendments made by this title, 
     and the final regulations published under subsection (a).

     SEC. 606. REPORT.

       Not later than March 1, 2000, the Administrator of the 
     Small Business Administration shall submit to the Committees 
     on Small Business of the House of Representatives and the 
     Senate a report on the implementation of the HUBZone program 
     established under section 31 of the Small Business Act (as 
     amended by this title) and the degree to which the HUBZone 
     program has resulted in increased employment opportunities 
     and an increased level of investment in HUBZones (as that 
     term is defined in section 3(p) of the Small Business Act, as 
     added by this title).

     SEC. 607. AUTHORIZATION OF APPROPRIATIONS.

       Section 20 of the Small Business Act (15 U.S.C. 631 note) 
     (as amended by section 101 of this Act) is amended--
       (1) in subsection (c), by adding at the end the following:
       ``(3) HUBZone program.--There are authorized to be 
     appropriated to the Administration to carry out the program 
     under section 31, $5,000,000 for fiscal year 1998.'';
       (2) in subsection (d), by adding at the end the following:
       ``(3) HUBZone program.--There are authorized to be 
     appropriated to the Administration to carry out the program 
     under section 31, $5,000,000 for fiscal year 1999.''; and
       (3) in subsection (e), by adding at the end the following:
       ``(3) HUBZone program.--There are authorized to be 
     appropriated to the Administration to carry out the program 
     under section 31, $5,000,000 for fiscal year 2000.''.


                      Motion Offered by Mr. Talent

  Mr. TALENT. Mr. Speaker, I offer a motion.
  The Clerk read as follows:

       Mr. TALENT moves to strike out all after the enacting 
     clause of Senate 1139 and insert in lieu thereof the 
     provisions of H.R. 2261, as passed by the House.
  The motion was agreed to.
  The Senate bill was ordered to be read a third time, was read the 
third time, and passed.
  The title of the Senate bill was amended so as to read: ``a bill to 
reauthorize and amend the programs of the Small Business Act and the 
Small Business Investment Act, and for other purposes''.
  A motion to reconsider was laid on the table.
  A similar House bill (H.R. 2261) was laid on the table.

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