[Congressional Record Volume 158, Number 76 (Thursday, May 24, 2012)]
[Senate]
[Pages S3636-S3638]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. SNOWE:
  S. 3246. A bill to improve the Service Corps of Retired Executives, 
and for other purposes; to the Committee on Small Business and 
Entrepreneurship.
  Ms. SNOWE. Mr. President, I rise today to introduce legislation to 
strengthen the resources and support that we provide to entrepreneurs, 
and to strengthen oversight of the SCORE program.
  In 1964, the Small Business Administration recognized that retired 
business executives who volunteered to share their knowledge and 
expertise could be invaluable to entrepreneurs. From this, SCORE was 
established and has since grown to over 360 chapters across America. As 
with any type of growth, there comes an essential need for increased 
organization and oversight. This bill seeks to assist the SBA and SCORE 
with just that.
  The key to getting our nation on the road to economic recovery lies 
in the hands of small business, which is why I am always looking for 
ways to improve the SBA's entrepreneurial assistance programs. By 
creating a SCORE Advisory Board which functions to monitor and develop 
initiatives for programs affecting SCORE chapters, we can ensure that 
entrepreneurs in all areas of our economy are served by high-quality 
mentoring services. Specifically, this board is compromised of six 
members coming from the owners and employees of small businesses 
themselves, in addition to current members of SCORE chapters.
  While some may argue that funding for SCORE should be increased, in 
this budget environment, where Federal revenues and spending are 
misaligned to the tune of $1.1 trillion this year alone, we must find 
ways to be more efficient with existing resources. I am hopeful that 
with administrative reforms and increased transparency, we can make the 
SCORE program more cost effective, while maintaining its vital 
assistance to small businesses.
  For example, there is currently no oversight for funding allocations 
to individual SCORE chapters. In the past three fiscal years, only $2.5 
million of the $7 million appropriated to SCORE has been distributed to 
the SCORE districts and chapters. The bulk of their funding, $4.5 
million, has been spent on

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staffing, administrative expenses, technology, and overhead. As a non-
profit organization, SCORE seeks to support small businesses across the 
country with thousands of volunteers but only very limited resources. 
It is imperative that there are transparent and fair practices in place 
for allocation of SBA funding to best provide for these small 
businesses. Therefore, my bill requires the creation of an Allocation 
Committee, comprised of Advisory Board members who will ensure that not 
less than 50 percent of SCORE's total allocation goes to the districts 
and chapters that directly serve small business clients.
  To safeguard funds appropriated to SCORE, my bill also places a limit 
on the taxpayer funded salary of SCORE's CEO, which according to the 
latest Internal Revenue Service filing, is 43 percent higher than that 
of the SBA's Administrator, who oversees the entire agency, including 
SCORE. This bill establishes in statute that the SCORE CEO follow the 
salary cap of a Senior Executive Service level Federal employee, 
ensuring that more money is available for the small businesses driving 
our economy. Additionally, this bill proposes to limit the Federal 
share of this salary even further when that CEO serves in a leadership 
capacity on a foundation affiliated with SCORE.
  Through the Advisory Board and its Allocation Committee, we will add 
much needed improvements to an already successful program. By enhancing 
integration between SCORE chapters and the SBA, small businesses will 
have even more support to sustain their contributions to our recovering 
economy.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3246

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``SCORE Program Improvement 
     Act of 2012''.

     SEC. 2. DEFINITIONS.

       In this Act--
       (1) the terms ``Administration'' and ``Administrator'' mean 
     the Small Business Administration and the Administrator 
     thereof, respectively;
       (2) the term ``SCORE'' means the Service Corps of Retired 
     Executives established under section 8(b)(1) of the Small 
     Business Act (15 U.S.C. 637(b)(1));
       (3) the term ``SCORE Advisory Board'' means the SCORE 
     Advisory Board established under section 101 of this Act;
       (4) the term ``SCORE chapter'' means a chapter of the 
     Service Corps of Retired Executives; and
       (5) the term ``small business concern'' has the meaning 
     given that term under section 3 of the Small Business Act (15 
     U.S.C. 632).

                     TITLE I--SCORE ADVISORY BOARD

     SEC. 101. ESTABLISHMENT OF ADVISORY BOARD.

       (a) Establishment.--There is established the SCORE Advisory 
     Board.
       (b) Membership.--
       (1) Composition.--The SCORE Advisory Board shall be 
     composed of 6 members, who shall be appointed from among 
     individuals having outstanding qualifications and known to be 
     familiar with and sympathetic to the needs and problems of 
     small business concerns.
       (2) Limitations.--Of the individuals appointed under 
     paragraph (1)--
       (A) not more than 3 may be members of a SCORE chapter; and
       (B) 3 shall be owners or employees of small business 
     concerns or members of an association that represents small 
     business concerns.
       (3) Prohibition.--The members of the SCORE Advisory Board 
     may not be employees of the Federal Government.
       (4) Date.--The appointments of the members of the SCORE 
     Advisory Board shall be made not later than 90 days after the 
     date of enactment of this Act.
       (c) Terms.--
       (1) In general.--Except as provided in paragraph (2), a 
     member of the SCORE Advisory Board shall be appointed for a 
     term of 3 years.
       (2) First members.--Of the members first appointed to the 
     SCORE Advisory Board--
       (A) 2 shall be appointed for a term of 4 years, of whom 1 
     shall be a member described in subsection (b)(2)(A) and 1 
     shall be a member described in subsection (b)(2)(B);
       (B) 2 shall be appointed for a term of 3 years, of whom 1 
     shall be a member described in subsection (b)(2)(A) and 1 
     shall be a member described in subsection (b)(2)(B); and
       (C) 2 shall be appointed for a term of 2 years, of whom 1 
     shall be a member described in subsection (b)(2)(A) and 1 
     shall be a member described in subsection (b)(2)(B).
       (d) Vacancies.--
       (1) In general.--A vacancy on the SCORE Advisory Board 
     shall be filled in the manner in which the original 
     appointment was made and shall be subject to any conditions 
     which applied with respect to the original appointment.
       (2) Filling unexpired term.--An individual chosen to fill a 
     vacancy shall be appointed for the unexpired term of the 
     member replaced.
       (e) Initial Meeting.--Not later than 60 days after the date 
     on which all members of the SCORE Advisory Board have been 
     appointed, the SCORE Advisory Board shall hold its first 
     meeting.
       (f) Meetings.--The SCORE Advisory Board shall meet--
       (1) not less frequently than semiannually; and
       (2) at the call of the Chairman.
       (g) Quorum.--A majority of the members of the SCORE 
     Advisory Board shall constitute a quorum, but a lesser number 
     of members may hold hearings.
       (h) Chairman.--The SCORE Advisory Board shall select a 
     Chairman from among its members.

     SEC. 102. DUTIES OF THE SCORE ADVISORY BOARD.

       (a) Duties.--The SCORE Advisory Board shall--
       (1) review and monitor plans and programs developed in the 
     public and private sector which affect SCORE chapters;
       (2) provide advice on improving coordination between plans 
     and programs described in paragraph (1);
       (3) advise SCORE chapters on the use of Federal funds 
     allocated to SCORE;
       (4) develop and promote initiatives, policies, programs, 
     and plans designed to assist with the mentoring services 
     offered by SCORE chapters throughout the United States; and
       (5) advise the Administrator on the development and 
     implementation of an annual comprehensive plan under 
     subsection (b).
       (b) Development of Plan.--The Administrator shall develop 
     and implement an annual comprehensive plan for joint efforts 
     by the public and private sectors to facilitate the formation 
     and development of mentoring by SCORE volunteers.
       (c) Annual Report.--Not later than 30 days after the end of 
     each fiscal year, the SCORE Advisory Board shall submit to 
     the President, the Committee on Small Business and 
     Entrepreneurship of the Senate, and the Committee on Small 
     Business of the House of Representatives a report that 
     contains--
       (1) the minutes of each meeting of the SCORE Advisory Board 
     during the fiscal year to which the report relates;
       (2) a detailed description of the activities of the SCORE 
     Advisory Board during the fiscal year to which the report 
     relates, including how the SCORE Advisory Board carried out 
     the duties described in subsection (a);
       (3) recommendations for promoting SCORE chapters and 
     mentoring services; and
       (4) any concurring or dissenting views of the 
     Administrator.

     SEC. 103. POWERS OF THE SCORE ADVISORY BOARD.

       (a) Hearings.--The SCORE Advisory Board may hold such 
     hearings, sit and act at such times and places, take such 
     testimony, and receive such evidence as the SCORE Advisory 
     Board considers advisable to carry out this Act.
       (b) Task Groups.--The SCORE Advisory Board may establish a 
     temporary task group to carry out any duty of the SCORE 
     Advisory Board described in section 4.
       (c) Information From Federal Agencies.--The SCORE Advisory 
     Board may secure directly from any Federal department or 
     agency such information as the SCORE Advisory Board considers 
     necessary to carry out this Act. Upon request of the Chairman 
     of the SCORE Advisory Board, the head of such department or 
     agency shall furnish such information to the SCORE Advisory 
     Board.
       (d) Postal Services.--The SCORE Advisory Board may use the 
     United States mails in the same manner and under the same 
     conditions as other departments and agencies of the Federal 
     Government.
       (e) Gifts.--The SCORE Advisory Board may accept, use, and 
     dispose of gifts or donations of services or property.

     SEC. 104. SCORE ADVISORY BOARD PERSONNEL MATTERS.

       (a) Compensation.--Members of the SCORE Advisory Board 
     shall not be compensated for services performed on behalf of 
     the SCORE Advisory Board.
       (b) Travel Expenses.--The members of the SCORE Advisory 
     Board shall be allowed travel expenses, including per diem in 
     lieu of subsistence, at rates authorized for employees of 
     agencies under subchapter I of chapter 57 of title 5, United 
     States Code, while away from their homes or regular places of 
     business in the performance of services for the SCORE 
     Advisory Board.
       (c) Detail of Government Employees.--Any Federal Government 
     employee may be detailed to the SCORE Advisory Board without 
     reimbursement, and such detail shall be without interruption 
     or loss of civil service status or privilege.

     SEC. 105. INAPPLICABILITY OF THE FEDERAL ADVISORY COMMITTEE 
                   ACT TO THE SCORE ADVISORY BOARD.

       Section 14 of the Federal Advisory Committee Act (5 U.S.C. 
     App.) shall not apply with respect to the SCORE Advisory 
     Board.

     SEC. 106. FUNDING.

       The expenses of the SCORE Advisory Board, including 
     expenses relating to personnel, as described in section 104, 
     shall be paid by SCORE, from amounts made available to SCORE 
     to carry out section 8(b)(1)(B)

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     of the Small Business Act (15 U.S.C. 637(b)(1)(B)).

                      TITLE II--FINANCIAL REFORMS

     SEC. 201. REAUTHORIZATION.

       Section 20 of the Small Business Act (15 U.S.C. 631 note) 
     is amended--
       (1) by redesignating subsection (j) as subsection (f); and
       (2) by adding at the end the following:
       ``(g) SCORE Program.--The Administrator may make grants and 
     enter into cooperative agreements to carry out the SCORE 
     program authorized by section 8(b)(1) in a total amount that 
     does not exceed $7,000,000 for each of fiscal years 2013, 
     2014, and 2015.''.

     SEC. 202. CHIEF EXECUTIVE OFFICER OF SCORE.

       (a) Limitation on Amount of Salary.--The rate of basic pay 
     of the chief executive officer of SCORE may not exceed the 
     maximum rate of basic pay established under section 5382 of 
     title 5, United States Code, for a position in the Senior 
     Executive Service.
       (b) Federal Share of Salary.--For any year during which the 
     chief executive officer of SCORE serves in a leadership 
     capacity on a foundation affiliated with SCORE, the Federal 
     share of the basic pay of the chief executive officer of 
     SCORE may not exceed 80 percent.

     SEC. 203. ALLOCATION COMMITTEE.

       (a) Establishment.--SCORE shall establish a committee to 
     determine the amount allocated each year to each SCORE 
     chapter.
       (b) Members.--The members of the committee established 
     under subsection (a) shall include--
       (1) 1 member of the staff of SCORE who is not the chief 
     executive officer of SCORE; and
       (2) not fewer than 4 members of the SCORE Advisory Board.

     SEC. 204. ALLOCATION OF AMOUNTS.

       SCORE shall establish a method for allocating amounts 
     received by SCORE from the Federal Government, which shall--
       (1) ensure that not less than 50 percent of the amounts are 
     allocated to SCORE chapters; and
       (2) be subject to the approval of the Administrator and the 
     committee established under section 203.

     SEC. 205. GAO STUDY AND REPORT.

       (a) Study.--The Comptroller General of the United States 
     shall conduct a study of the technology activities of SCORE 
     that includes an examination of each expenditure by SCORE for 
     technology activities and the result of each such 
     expenditure.
       (b) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Comptroller General shall submit 
     to Congress and the Administrator a report that contains--
       (1) a detailed description of the amounts SCORE has 
     expended for technology activities, including how SCORE 
     expended Federal funds to carry out and sustain technology 
     initiatives during the 4-year period ending on the date of 
     enactment of this Act;
       (2) a determination of whether SCORE has expended Federal 
     funds efficiently and effectively to carry out technology 
     activities;
       (3) an evaluation of--
       (A) how well SCORE has met objectives relating to 
     technology spending; and
       (B) the policy that resulted in the establishment of 
     objectives relating to technology spending; and
       (4) recommendations for actions by SCORE to achieve 
     objectives relating to technology spending while safeguarding 
     Federal funds.
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