[Congressional Record Volume 165, Number 166 (Monday, October 21, 2019)]
[House]
[Pages H8274-H8277]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SCORE FOR SMALL BUSINESS ACT OF 2019
Ms. VELAZQUEZ. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 4407) to amend the Small Business Act to reauthorize the
SCORE program, and for other purposes.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 4407
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This title may be cited as the ``SCORE for Small Business
Act of 2019''.
SEC. 2. SCORE PROGRAM PROVISIONS AND REQUIREMENTS.
Section 8 of the Small Business Act (15 U.S.C. 637) is
amended--
(1) in subsection (b)(1)(B)--
(A) by striking ``a Service Corps of Retired Executives
(SCORE)'' and inserting ``the SCORE program described in
subsection (c)''; and
(B) by striking ``SCORE may'' and inserting ``the SCORE
Association (as defined in subsection (c)) may''; and
(2) by striking subsection (c) and inserting the following:
``(c) SCORE Program.--
``(1) Definitions.--In this subsection:
``(A) SCORE association.--The term `SCORE Association'
means the Service Corps of Retired Executives Association or
any successor or other organization that enters into a
cooperative agreement (as described under paragraph (2)) with
the Administrator to operate the SCORE program.
``(B) SCORE foundation.--The term `SCORE Foundation' means
an organization with a mission to support the SCORE
Association and volunteers of the SCORE program.
``(C) SCORE program.--The term `SCORE program' means the
SCORE program authorized by subsection (b)(1)(B).
``(2) Cooperative agreement.--The Administrator shall enter
into a cooperative agreement with the SCORE Association to
carry out the SCORE program, which shall include the
following requirements:
``(A) Administrator duties.--The Administrator shall--
``(i) conduct an annual financial examination of the SCORE
Association to ensure that any costs paid for with Federal
funds are allowable, allocable, and reasonable;
``(ii) for contracts entered into by the SCORE Association
to provide goods or services for the SCORE program of a value
greater than an amount determined by the Administrator,
review and approve such contracts;
``(iii) establish a system through which the SCORE
Association can provide documentation relating to such
contracts; and
``(iv) within 30 days of the receipt of a quarterly report
on the achievements of the SCORE program submitted by the
SCORE Association, reconcile and differences between such
report and the performance results of the SCORE program
reported in a management information system of the Office of
Entrepreneurial Development.
``(B) SCORE association duties.--The SCORE Association
shall--
``(i) manage nationwide chapters of the SCORE program;
``(ii) develop guidance and provide annual training to
employees of the SCORE Association on generating and using
program income from the SCORE program;
``(iii) submit documentation to the Administrator verifying
such annual training is completed;
``(iv) separate funds donated to the SCORE Association from
program income and funds received pursuant to a cooperative
agreement; and
``(v) establish requirements for volunteers participating
in the SCORE program, including requirements that each such
volunteer shall--
``(I) based on the business experience and knowledge of the
volunteer--
``(aa) provide personal counseling, mentoring, and coaching
on the process of starting, expanding, managing, buying, and
selling a business at no cost to individuals who own, or
aspire to own, small business concerns; and
``(bb) facilitate free or low-cost education workshops for
individuals who own, or aspire to own, small business
concerns; and
``(II) as appropriate, use tools, resources, and expertise
of other organizations to carry out the SCORE program.
``(C) Joint duties.--The Administrator, in consultation
with the SCORE Association, shall ensure that the SCORE
program and each chapter of the SCORE program--
``(i) develop and implement plans and goals to more
effectively and efficiently provide services to individuals
in rural areas, economically disadvantaged communities, or
other traditionally underserved communities, including plans
for electronic initiatives, web-based initiatives, chapter
expansion, partnerships, and the development of new skills by
volunteers participating in the SCORE program; and
``(ii) reinforce an inclusive culture by recruiting diverse
volunteers for the chapters of the SCORE program.
``(3) Online component.--In carrying out this subsection,
the SCORE Association shall make use of online counseling,
including by developing and implementing webinars and an
electronic mentoring platform to expand access to services
provided under this subsection and to further support
entrepreneurs.
``(4) Accounting.--Not later than 6 months after the date
of the enactment of this subsection, the SCORE Association
shall--
``(A) centralize all accounting and finance systems of each
chapter of the SCORE program and develop a uniform policy and
procedures to manage Federal funds; and
``(B) designate an employee of the SCORE Association to
serve as a compliance officer to ensure expenditures of the
SCORE program are fully compliant with any law, regulation,
or cooperative agreement relating to the SCORE program.
``(5) Compensation.--
``(A) Salaries.--The salary of an employee of the SCORE
Association may not exceed the equivalent of the maximum rate
of pay allowable for an individual in the career Senior
Executive Service employed at the Small Business
Administration.
``(B) Performance awards.--The SCORE Association may spend
up to 1.5 percent of the aggregate salaries of employees of
the SCORE Association on individual performance awards to
employees of the SCORE Association, to be disbursed before
the last day of the fiscal year, if not later than 60 days
before disbursement the SCORE Association submits to the
Administrator a report on the number and amount of such
awards to be disbursed.
``(C) SCORE foundation.--A member of the Board of Directors
of the SCORE Association or an employee of the SCORE
Association may not simultaneously serve on the Board of
Directors of, or receive compensation from, the SCORE
Foundation without written approval from the Administrator.
``(6) Whistleblower protection requirements.--The SCORE
Association shall--
``(A) annually update all manuals or other documents
applicable to employees and volunteers of the SCORE
Association or the SCORE program to include requirements
relating to reporting procedures and protectors for
whistleblowers; and
``(B) conduct an annual training for employees and
volunteers of the SCORE Association or the SCORE program on
the requirements described in paragraph (1) and emphasize the
use of the hotline established by the Office of the Inspector
General of the Small Business Administration to submit
whistleblower reports.
``(7) Published materials.--The SCORE Association shall
ensure all published materials include written acknowledgment
of Small Business Administration support of the SCORE program
if such materials are paid for in whole or in part by Federal
funds.
``(8) Privacy requirements.--
``(A) In general.--Neither the Administrator nor the SCORE
Association may disclose the name, address, or telephone
number of any individual or small business concern receiving
assistance from the SCORE Association without the consent of
such individual or small business concern, unless--
``(i) the Administrator is ordered to make such a
disclosure by a court in any civil or criminal enforcement
action initiated by a Federal or State agency; or
``(ii) the Administrator determines such a disclosure to be
necessary for the purpose of conducting a financial audit of
the SCORE program, in which case disclosure shall be limited
to the information necessary for the audit.
``(B) Administrator use of information.--This paragraph
shall not--
``(i) restrict the access of the Administrator to SCORE
program activity data; or
``(ii) prevent the Administrator from using SCORE program
client information to conduct client surveys.
``(C) Standards.--
``(i) In general.--The Administrator shall, after the
opportunity for notice and comment, establish standards for--
``(I) disclosures with respect to financial audits under
subparagraph (A)(ii); and
``(II) conducting client surveys, including standards for
oversight of the surveys and for dissemination and use of
client information.
[[Page H8275]]
``(ii) Maximum privacy protection.--The standards issued
under this subparagraph shall, to the extent practicable,
provide for the maximum amount of privacy protection.
``(9) Annual report.--Not later than 180 days after the
date of the enactment of this subsection and annually
thereafter, the Administrator shall submit to the Committee
on Small Business and Entrepreneurship of the Senate and the
Committee on Small Business of the House of Representatives a
report on the performance and effectiveness of the SCORE
program, which may be included as part of another report
submitted to such Committees by the Administrator, and which
shall include--
``(A) the number of individuals counseled or trained under
the SCORE program;
``(B) the number of hours of counseling provided under the
SCORE program;
``(C) the number of local workshops;
``(D) the number of clients attending online and local
workshops;
``(E) the number of unique clients served;
``(F) to the extent practicable, the demographics of SCORE
program participants and volunteers, which shall include the
gender, race, and age of each such participant or volunteer;
``(G) the cost to create a job, the cost to create a
business, and return on investment;
``(H) the number of referrals to other resources and
programs of the Administration;
``(I) the number of participants in the SCORE program
receiving financial assistance, including the type and dollar
amount, under loan programs of the Administration;
``(J) the results of SCORE program participant satisfactory
surveys, including a summary of any comments received from
such participants;
``(K) the number of new businesses started up by SCORE
program participants;
``(L) the number of such new businesses realizing revenue
growth;
``(M) to the extent practicable, the number of jobs created
with assistance from the SCORE program;
``(N) the total cost of the SCORE program;
``(O) any recommendations of the Administrator to improve
the SCORE program; and
``(P) an explanation of how the SCORE program has been
integrated with other resource partners and related resources
of the Administration.''.
SEC. 3. AUTHORIZATION OF APPROPRIATIONS FOR THE SCORE
PROGRAM.
Section 20 of the Small Business Act (15 U.S.C. 631 note)
is amended by adding at the end the following new subsection:
``(h) SCORE Program.--There are authorized to be
appropriated to the Administrator to carry out the SCORE
program authorized by section 8(b)(1) such sums as are
necessary for the Administrator to make grants or enter into
cooperative agreements in a total amount that does not exceed
$11,700,000 in each of fiscal years 2020, 2021, and 2022.''.
SEC. 4. REPORTING REQUIREMENTS.
(a) Study and Report on the Future Role of the SCORE
Program.--
(1) Study.--The SCORE Association shall carry out a study
on the future role of the SCORE program and develop a
strategic plan for how the SCORE program will meet the needs
of small business concerns during the 5-year period beginning
on the date of the enactment of this Act, with specific
objectives for the first, third, and fifth years of the 5-
year period.
(2) Report.--Not later than the end of the 6-month period
beginning on the date of the enactment of this Act, the SCORE
Association shall submit to the Committee on Small Business
of the House of Representatives and the Committee on Small
Business and Entrepreneurship of the Senate a report
containing--
(A) all findings and determination made in carrying out the
study required under paragraph (1);
(B) the strategic plan developed under paragraph (1); and
(C) an explanation of how the SCORE Association plans to
achieve the strategic plan, assuming both stagnant and
increased funding levels.
(b) Administrator Report on Leased Space.--The
Administrator of the Small Business Administration shall
submit to the Committee on Small Business of the House of
Representatives and the Committee on Small Business and
Entrepreneurship of the Senate a report containing an
assessment of the cost of leased space that is donated to the
SCORE Association.
(c) Online Component Report.--Before the last day of fiscal
year 2020, the SCORE Association shall submit to the
Committee on Small Business of the House of Representatives
and the Committee on Small Business and Entrepreneurship of
the Senate a report on the effectiveness of the online
counseling and webinars required under paragraph (3) of
section 8(c) of the Small Business Act, as added by section 2
of this Act, including a description of--
(1) how the SCORE Association determines electronic
mentoring and webinar needs, develops training for electronic
mentoring, establishes webinar criteria curricula, and
evaluates webinar and electronic mentoring results;
(2) the internal controls that are used and a summary of
the topics covered by the webinars; and
(3) performance metrics, including the number of small
business concerns counseled by, the number of small business
concerns created by, the number of jobs created and retained
by, and the funding amounts directed towards such online
counseling and webinars.
SEC. 5. TECHNICAL AND CONFORMING AMENDMENTS.
(a) Small Business Act.--The Small Business Act (15 U.S.C.
631 et seq.) is amended--
(1) in section 7 (15 U.S.C. 636)--
(A) in subsection (b)(12)--
(i) in the paragraph heading, by inserting ``program''
after ``SCORE''; and
(ii) in subparagraph (A), by striking ``Service Corps of
Retired Executives'' and inserting ``SCORE program''; and
(B) in subsection (m)(3)(A)(i)(VIII), by striking ``Service
Corps of Retired Executives'' and inserting ``SCORE
program''; and
(2) in section 22 (15 U.S.C. 649)--
(A) in subsection (b)--
(i) in paragraph (1), by striking ``Service Corps of
Retired Executives'' and inserting ``SCORE program''; and
(ii) in paragraph (3), by striking ``Service Corps of
Retired Executives'' and inserting ``SCORE program''; and
(B) in subsection (c)(12), by striking ``Service Corps of
Retired Executives'' and inserting ``SCORE program''.
(b) Other Laws.--
(1) Small business reauthorization act of 1997.--Section
707 of the Small Business Reauthorization Act of 1997 (15
U.S.C. 631 note) is amended by striking ``Service Corps of
Retired Executives (SCORE) program'' and inserting ``SCORE
program (as defined in section 8(c)(1) of the Small Business
Act)''.
(2) Veterans entrepreneurship and small business
development act of 1999.--Section 301 of the Veterans
Entrepreneurship and Small Business Development Act of 1999
(15 U.S.C. 657b note) is amended by striking ``Service Core
of Retired Executives'' and inserting ``SCORE program''.
(3) Military reservist and veteran small business
reauthorization and opportunity act of 2008.--Section 3(5) of
the Military Reservist and Veteran Small Business
Reauthorization and Opportunity Act of 2008 (15 U.S.C. 636
note) is amended by striking ``the Service Corps of Retired
Executives'' and inserting ``the SCORE program''.
(4) Children's health insurance program reauthorization act
of 2009.--Section 621 of the Children's Health Insurance
Program Reauthorization Act of 2009 (15 U.S.C. 657p) is
amended--
(A) in subsection (a), by striking paragraph (4) and
inserting the following:
``(4) the term `SCORE program' means the SCORE program
authorized by section 8(b)(1)(B) of the Small Business Act
(15 U.S.C. 637(b)(1)(B));''; and
(B) in subsection (b)(4)(A)(iv), by striking ``Service
Corps of Retired Executives'' and inserting ``SCORE
program''.
(5) Energy policy and conservation act.--Section
337(d)(2)(A) of the Energy Policy and Conservation Act (42
U.S.C. 6307(d)(2)(A)) is amended by striking ``Service Corps
of Retired Executives (SCORE)'' and inserting ``SCORE
program''.
SEC. 6. DEFINITIONS.
In this Act:
(1) Administration; administrator.--The terms
``Administration'' and ``Administrator'' mean, respectively,
the Small Business Administration and the Administrator
thereof.
(2) SCORE association; score program.--The terms ``SCORE
Association'' and ``SCORE program'' have the meaning given
those terms, respectively, under section 8(c)(1) of the Small
Business Act, as added by section 2 of this Act.
The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from
New York (Ms. Velazquez) and the gentleman from Ohio (Mr. Chabot) each
will control 20 minutes.
The Chair recognizes the gentlewoman from New York.
General Leave
Ms. VELAZQUEZ. Mr. Speaker, I ask unanimous consent that all Members
have 5 legislative days in which to revise and extend their remarks and
include extraneous material on the measure under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentlewoman from New York?
There was no objection.
Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I rise today in support of the bill before us, H.R.
4407, the SCORE for Small Business Act.
There are nearly 30 million small businesses in the United States,
representing more than 99 percent of all businesses. These small firms
employ nearly 50 percent of all private-sector employees in the U.S.
The SBA administers a portfolio of entrepreneurial development
programs, which includes the SCORE program. Since its inception, the
SBA has undertaken efforts to connect new entrepreneurs and small
business owners with more experienced businessmen and -women. This
expansive network consists of entrepreneurs, business leaders, and
executives who volunteer as mentors to small firms, both in person and
online.
[[Page H8276]]
SCORE has grown to become one of the Federal Government's largest
volunteer business adviser and mentoring programs. Yet, the SBA OIG
found that improvements are needed to ensure SCORE minimizes risk of
fraud or misuse of program funds and to strengthen SBA's oversight and
the committee's ability to review the effectiveness of the program.
On July 11, 2019, our Subcommittee on Investigations, Oversight and
Regulations held a hearing to examine the agency's oversight of the
SCORE program. This bill is a direct result of that hearing and much
stakeholder engagement.
H.R. 4407 not only reauthorizes this essential program, but it also
takes steps to restore integrity, accounting, and performance to the
program. Doing so ensures the program will continue to have the ability
to meet the needs of entrepreneurs.
With technology enhancements and streamlined service processes, SCORE
mentoring will now be accessible to business owners no matter their
location.
I commend Congressman Hern and Congresswoman Craig for working
together to make sure that the counseling and training programs are
operating effectively, as well as holding SBA accountable as a good
steward of taxpayer dollars.
Mr. Speaker, I urge Members to support this legislation, and I
reserve the balance of my time.
Mr. CHABOT. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in support of H.R. 4407, the SCORE for Small
Business Act of 2019.
This legislation will allow the SCORE program to continue to offer
business mentoring and training to thousands of entrepreneurs and small
business owners each year.
The SCORE program currently includes over 11,000 volunteer mentors
with expertise across 62 industries that collectively provide more than
a million hours of business counseling each year.
When an entrepreneur seeks a SCORE mentor, they are purposefully
paired with a business professional with knowledge in a specific field
or experience facing specific challenges. This process ensures that the
goals of the entrepreneur are met by the volunteer mentor.
In addition to SCORE's mentorship services, the program also offers
in-person business training classes at its 350 chapter locations
nationwide.
Entrepreneurs can also utilize the extensive online training
opportunities and free business tools available on SCORE's national
website.
Over the last 50 years, SCORE has become the Federal Government's
largest business mentoring program with over 800 locations nationally
and over 11,000 volunteers. Last year, SCORE mentors provided
personalized guidance to nearly 140,000 clients. More than 400,000
clients attended online and local SCORE workshops.
This legislation will allow SCORE to continue to provide these
important services. H.R. 4407, the SCORE for Small Business Act of
2019, adds strict safeguards to core provisions of the SCORE bill
passed last year in May.
This legislation, offered by the gentleman from Oklahoma (Mr. Kevin
Hern) and the gentlewoman from Minnesota (Ms. Craig), also establishes
strict new compliance and oversight requirements to protect taxpayer
dollars and sets new outcome-based performance goals to ensure the
program meets the SBA's standards and congressional intent.
These provisions will significantly increase congressional oversight
of the program and provide future Congresses with additional
information about the health of the program.
I thank the gentleman from Oklahoma (Mr. Kevin Hern) and the
gentlewoman from Minnesota (Ms. Craig) for their leadership on this and
also for their very thoughtful approach to the passage of this
legislation.
Mr. Speaker, I urge my colleagues to support the bill, and I reserve
the balance of my time.
Ms. VELAZQUEZ. Mr. Speaker, I continue to reserve the balance of my
time.
Mr. CHABOT. Mr. Speaker, I yield such time as he may consume to the
gentleman from Oklahoma (Mr. Kevin Hern), who is the lead Republican
sponsor of this legislation.
Mr. KEVIN HERN of Oklahoma. Mr. Speaker, I thank the ranking member
for yielding.
Mr. Speaker, I rise in support of H.R. 4407.
The Service Corps of Retired Executives, better known as SCORE, has
helped more than 11 million entrepreneurs over the last 50 years. SCORE
is a nonprofit organization made up of active and retired business
executives who act as mentors for entrepreneurs. These volunteers
provide face-to-face counseling on business issues ranging from
planning to budgeting, marketing, and financing, all of this at no
charge to the entrepreneur.
As a small business owner myself, I can attest to the importance of
mentorship programs like this for first-time entrepreneurs. In a
country like ours, where a good idea and hard work can put you on the
path to the American Dream, the mentorship of an experienced business
owner can be a huge asset to a startup.
Today, there are more than 300 SCORE chapters across the country,
totaling more than 11,000 volunteers. This includes a chapter in my
hometown of Tulsa, which has over 40 volunteers.
H.R. 4407 will continue the success of the SCORE program by
reauthorizing the funds while safeguarding the program for the future
by modernizing data standards, closing loopholes for fraud, and adding
important oversight to the use of funds. These provisions will only
increase the integrity of SCORE and help the program to assist even
more small businesses and entrepreneurs.
All the reforms made in this bill are supported by SCORE. This
bipartisan effort to invest in our small business owners and encourage
more Americans to follow their dreams is a big step forward in support
of the things that make our country so special.
I thank my colleague Ms. Craig from Minnesota for being an original
cosponsor of this legislation and supporting its progress through the
committee and now here on the House floor.
The passage of this bill will not only be an important moment for our
country's future business owners, but it is also my first piece of
legislation to pass the House. Focusing on the businesses that drive
our local economies and encouraging the growth of entrepreneurship
across our country has been my top priority in Congress.
Reauthorizing and strengthening SCORE is a necessary step to help
grow our economy and invest in our communities, and I urge my
colleagues to vote ``yes'' on this bill today.
Mr. Speaker, before I close today, I want to say that I really
appreciate the leadership and the bipartisanship of Chairwoman
Velazquez and Ranking Member Chabot. They do a great job with
bipartisanship in their leadership. It is a great example for the
people's House. I encourage all of our Members to come sit in on a
meeting sometime. It might be something that they would like to see.
Ms. VELAZQUEZ. Mr. Speaker, I have no further speakers if the
gentleman is ready to close. I reserve the balance of my time.
Mr. CHABOT. Mr. Speaker, I yield myself such time as I may consume.
The simple improvements in this bill will allow the SCORE program to
continue its mission helping entrepreneurs to start and grow their
businesses.
With the vast majority of all businesses in the United States
classified as small, it is vital that these business owners have access
to effective entrepreneurial resources. H.R. 4407 would ensure that,
regardless of location, a small business owner can access SCORE
mentoring and training.
Mr. Speaker, I urge my colleagues to support this legislation, and I
yield back the balance of my time.
Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may
consume.
There is no question that we need to support our small businesses
across the country, no matter their location, industry, or expertise
level.
H.R. 4407 does exactly that by reauthorizing a major component of
SBA's entrepreneurial programs and clarifying the utilization of the
volunteer base. This bill is reflective of the growth of the SCORE
program, which actively engages business owners, as well as retired
executives, to mentor the next generation of job makers.
[[Page H8277]]
Most importantly, it responds to the findings of the IG and makes
strides to hold the agency and SCORE mentors accountable.
Mr. Speaker, I urge Members to support this bill, and I yield back
the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentlewoman from New York (Ms. Velazquez) that the House suspend the
rules and pass the bill, H.R. 4407.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
Ms. VELAZQUEZ. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further
proceedings on this motion will be postponed.
____________________