[Congressional Record Volume 158, Number 85 (Thursday, June 7, 2012)]
[Senate]
[Pages S3842-S3843]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. SNOWE (for herself, Mr. Kerry, and Mr. Coburn):
  S. 3281. A bill to terminate the Federal authorization of the 
National Veterans Business Development Corporation; to the Committee on 
Small Business and Entrepreneurship.
  Ms. SNOWE. Mr. President, I rise today to introduce legislation to 
cease federal involvement in the National Veterans Business Development 
Corporation.
  This bipartisan bill would cease, once and for all, Federal 
involvement in the National Veterans Business Development Corporation, 
also known as The Veterans Corporation or simply TVC. Let me begin by 
thanking the bill's cosponsors, former Small Business Committee Chair 
Kerry and Senator Coburn. Senator Coburn, as most in this body will 
recognize, is a true leader in efforts to streamline the Federal 
Government. Recently he spoke with us about ideas for Federal entities 
or programs that could be eliminated and we readily provided TVC as an 
example of an entity that we had already identified that the Federal 
Government should sever its ties with.
  I want to say at the outset that an amendment, with identical text as 
our legislation, passed the Senate by a vote of 99 0 in May of 2011, 
but the bill it was attached to did not pass. We are introducing this 
repeal as a standalone bill because TVC has been ineffective and 
controversial since its inception as part of the Veterans 
Entrepreneurship and Small Business Development Act, P.L. 106 50 in 
1999. In December of 2008, former Small Business Committee Chairman 
Kerry and I investigated TVC, and issued a report detailing the 
organization's blatant mismanagement and wasting of taxpayers' dollars.
  The report found, among other things, that TVC failed to support 
Veteran Business Resource Centers; had wasteful programs; lacked 
outcomes-based measurements; provided its employees with unacceptably 
high executive compensation; engaged in dubious expenditures, and 
failed to properly fundraise.
  For instance, our report concluded that TVC had spent only 15 percent 
of the Federal funding that it had received on veterans business 
resource centers, which TVC was required to establish and maintain 
under law. In fiscal year 2008, the percentage dropped to about 9 
percent. We also found that TVC's executives received unacceptably high 
levels of compensation given the organization's limited resources and 
reach. While an average of 15 percent of TVC's federally appropriated 
funds went to the Centers, 22 percent of TVC's fiscal year 2007 Federal 
appropriation dollars were spent on its top two executives' 
compensation packages alone. Moreover, the organization miserably 
failed to fundraise--which was required by law in order for it to 
become self-sufficient--and during fiscal years 2005 through 2007, TVC 
leaders spent $2.50 for every $1.00 they raised through the 
organization's fundraising efforts--almost entirely at the taxpayers' 
expense. Additionally, through broad decision-making powers granted to 
TVC's executive committee under the organization's bylaws, the 
committee approved a number of measures without proper approval or 
ratification from the full Board, including $40,000 in employee bonuses 
in 1 year alone.
  Since the issuing of the Small Business Committee's report, Congress 
has appropriated no further funding for TVC, and the Small Business 
Administration, SBA, has incorporated the Veteran Business Resource 
Centers, VBRCs, that TVC previously funded into its existing network of 
Veteran Business Outreach Centers, VBOCs. These moves were publically 
supported by a variety of veteran service organizations, including the 
American Legion and the Veterans of Foreign Wars, VFW. For instance, in 
August of 2008, the American Legion passed a resolution at its national 
convention, Resolution No. 223, stating that the Legion ``. . . no 
longer support[s] the continuing initiatives or existence of the 
national Veterans Business Development Corporation.''
  At present, TVC is still federally chartered. At the same time, it 
receives no Federal funds, has no Department or Agency oversight. In 
light of everything I have discussed, it is my belief that the Federal 
government must take the next step and fully sever all ties with the 
organization. I ask my colleagues to support this bipartisan bill.
  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. 3281

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

     SECTION 1. NATIONAL VETERANS BUSINESS DEVELOPMENT 
                   CORPORATION.

       (a) In General.--The Small Business Act (15 U.S.C. 631 et 
     seq.) is amended by striking section 33 (15 U.S.C. 657c).
       (b) Corporation.--On and after the date of enactment of 
     this Act, the National Veterans Business Development 
     Corporation and any successor thereto may not represent that 
     the corporation is federally chartered or in any other manner 
     authorized by the Federal Government.
       (c) Technical and Conforming Amendments.--

[[Page S3843]]

       (1) Small business act.--The Small Business Act (15 U.S.C. 
     631 et seq.), as amended by this section, is amended--
       (A) by redesignating sections 34 through 45 as sections 33 
     through 44, respectively;
       (B) in section 9(k)(1)(D) (15 U.S.C. 638(k)(1)(D)), by 
     striking ``section 34(d)'' and inserting ``section 33(d)'';
       (C) in section 33 (15 U.S.C. 657d), as so redesignated--
       (i) by striking ``section 35'' each place it appears and 
     inserting ``section 34'';
       (ii) in subsection (a)--

       (I) in paragraph (2), by striking ``section 35(c)(2)(B)'' 
     and inserting ``section 34(c)(2)(B)'';
       (II) in paragraph (4), by striking ``section 35(c)(2)'' and 
     inserting ``section 34(c)(2)''; and
       (III) in paragraph (5), by striking ``section 35(c)'' and 
     inserting ``section 34(c)''; and

       (iii) in subsection (h)(2), by striking ``section 35(d)'' 
     and inserting ``section 34(d)'';
       (D) in section 34 (15 U.S.C. 657e), as so redesignated--
       (i) by striking ``section 34'' each place it appears and 
     inserting ``section 33''; and
       (ii) in subsection (c)(1), by striking section 
     ``34(c)(1)(E)(ii)'' and inserting section 
     ``33(c)(1)(E)(ii)'';
       (E) in section 36(d) (15 U.S.C. 657i(d)), as so 
     redesignated, by striking ``section 43'' and inserting 
     ``section 42'';
       (F) in section 39(d) (15 U.S.C. 657l(d)), as so 
     redesignated, by striking ``section 43'' and inserting 
     ``section 42''; and
       (G) in section 40(b) (15 U.S.C. 657m(b)), as so 
     redesignated, by striking ``section 43'' and inserting 
     ``section 42''.
       (2) Title 10.--Section 1142(b)(13) of title 10, United 
     States Code, is amended by striking ``and the National 
     Veterans Business Development Corporation''.
       (3) Title 38.--Section 3452(h) of title 38, United States 
     Code, is amended by striking ``any of the'' and all that 
     follows and inserting ``any small business development center 
     described in section 21 of the Small Business Act (15 U.S.C. 
     648), insofar as such center offers, sponsors, or cosponsors 
     an entrepreneurship course, as that term is defined in 
     section 3675(c)(2).''.
       (4) Food, conservation, and energy act of 2008.--Section 
     12072(c)(2) of the Food, Conservation, and Energy Act of 2008 
     (15 U.S.C. 636g(c)(2)) is amended by striking ``section 43 of 
     the Small Business Act, as added by this Act'' and inserting 
     ``section 42 of the Small Business Act (15 U.S.C. 657o)''.
       (5) Veterans entrepreneurship and small business 
     development act of 1999.--Section 203(c)(5) of the Veterans 
     Entrepreneurship and Small Business Development Act of 1999 
     (15 U.S.C. 657b note) is amended by striking ``In cooperation 
     with the National Veterans Business Development Corporation, 
     develop'' and inserting ``Develop''.

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