[House Report 109-206]
[From the U.S. Government Publishing Office]



109th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    109-206

======================================================================
 
 AMENDING THE SMALL BUSINESS ACT TO EXPAND AND IMPROVE THE ASSISTANCE 
PROVIDED BY SMALL BUSINESS DEVELOPMENT CENTERS TO INDIAN TRIBE MEMBERS, 
                  ALASKA NATIVES, AND NATIVE HAWAIIANS

                                _______
                                

 July 28, 2005.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

   Mr. Manzullo, from the Committee on Small Business, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 2981]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Small Business, to whom was referred the 
bill (H.R. 2981) to amend the Small Business Act to expand and 
improve the assistance provided by Small Business Development 
Centers to Indian tribe members, Alaska Natives, and Native 
Hawaiians, having considered the same, report favorably thereon 
with an amendment and recommend that the bill as amended do 
pass.
  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. FINDINGS AND PURPOSES.

  (a) Findings.--Congress finds the following:
          (1) Approximately 60 percent of Indian tribe members and 
        Alaska Natives live on or adjacent to Indian lands, which 
        suffer from an average unemployment rate of 45 percent.
          (2) Indian tribe members and Alaska Natives own more than 
        197,000 businesses and generate more than $34,000,000,000 in 
        revenues. The service industry accounted for 17 percent of 
        these businesses (of which 40 percent were engaged in business 
        and personal services) and 15.1 percent of their total 
        receipts. The next largest was the construction industry (13.9 
        percent and 15.7 percent, respectively). The third largest was 
        the retail trade industry (7.5 percent and 13.4 percent, 
        respectively).
          (3) The number of businesses owned by Indian tribe members 
        and Alaska Natives grew by 84 percent from 1992 to 1997, and 
        their gross receipts grew by 179 percent in that period. This 
        is compared to all businesses which grew by 7 percent, and 
        their total gross receipts grew by 40 percent, in that period.
          (4) The Small Business Development Center program is cost 
        effective. Clients receiving long-term counseling under the 
        program in 1998 generated additional tax revenues of 
        $468,000,000, roughly 6 times the cost of the program to the 
        Federal Government.
          (5) Using the existing infrastructure of the Small Business 
        Development Center program, small businesses owned by Indian 
        tribe members, Alaska Natives, and Native Hawaiians receiving 
        services under the program will have a higher survival rate 
        than the average small business not receiving such services.
          (6) Business counseling and technical assistance is critical 
        on Indian lands where similar services are scarce and 
        expensive.
          (7) Increased assistance through counseling under the Small 
        Business Development Center program has been shown to reduce 
        the default rate associated with lending programs of the Small 
        Business Administration.
  (b) Purposes.--The purposes of this Act are as follows:
          (1) To stimulate economies on Indian lands.
          (2) To foster economic development on Indian lands.
          (3) To assist in the creation of new small businesses owned 
        by Indian tribe members, Alaska Natives, and Native Hawaiians 
        and expand existing ones.
          (4) To provide management, technical, and research assistance 
        to small businesses owned by Indian tribe members, Alaska 
        Natives, and Native Hawaiians.
          (5) To seek the advice of local Tribal Councils on where 
        small business development assistance is most needed.
          (6) To ensure that Indian tribe members, Alaska Natives, and 
        Native Hawaiians have full access to existing business 
        counseling and technical assistance available through the Small 
        Business Development Center program.

SEC. 2. SMALL BUSINESS DEVELOPMENT CENTER ASSISTANCE TO INDIAN TRIBE 
                    MEMBERS, ALASKA NATIVES, AND NATIVE HAWAIIANS.

  (a) In General.--Section 21(a) of the Small Business Act (15 U.S.C. 
648(a)) is amended by adding at the end the following:
          ``(8) Additional grant to assist indian tribe members, alaska 
        natives, and native hawaiians.--
                  ``(A) In general.--Any applicant in an eligible State 
                that is funded by the Administration as a Small 
                Business Development Center may apply for an additional 
                grant to be used solely to provide services described 
                in subsection (c)(3) to assist with outreach, 
                development, and enhancement on Indian lands of small 
                business startups and expansions owned by Indian tribe 
                members, Alaska Natives, and Native Hawaiians.
                  ``(B) Eligible states.--For purposes of subparagraph 
                (A), an eligible State is a State that has a combined 
                population of Indian tribe members, Alaska Natives, and 
                Native Hawaiians that comprises at least 1 percent of 
                the State's total population, as shown by the latest 
                available census.
                  ``(C) Grant applications.--An applicant for a grant 
                under subparagraph (A) shall submit to the 
                Administration an application that is in such form as 
                the Administration may require. The application shall 
                include information regarding the applicant's goals and 
                objectives for the services to be provided using the 
                grant, including--
                          ``(i) the capability of the applicant to 
                        provide training and services to a 
                        representative number of Indian tribe members, 
                        Alaska Natives, and Native Hawaiians;
                          ``(ii) the location of the Small Business 
                        Development Center site proposed by the 
                        applicant;
                          ``(iii) the required amount of grant funding 
                        needed by the applicant to implement the 
                        program; and
                          ``(iv) the extent to which the applicant has 
                        consulted with local Tribal Councils.
                  ``(D) Applicability of grant requirements.--An 
                applicant for a grant under subparagraph (A) shall 
                comply with all of the requirements of this section, 
                except that the matching funds requirements under 
                paragraph (4)(A) shall not apply.
                  ``(E) Maximum amount of grants.--No applicant may 
                receive more than $300,000 in grants under this 
                paragraph for one fiscal year.
                  ``(F) Regulations.--After providing notice and an 
                opportunity for comment and after consulting with the 
                Association recognized by the Administration pursuant 
                to paragraph (3)(A) (but not later than 180 days after 
                the date of enactment of this paragraph), the 
                Administration shall issue final regulations to carry 
                out this paragraph, including regulations that 
                establish--
                          ``(i) standards relating to educational, 
                        technical, and support services to be provided 
                        by Small Business Development Centers receiving 
                        assistance under this paragraph; and
                          ``(ii) standards relating to any work plan 
                        that the Administration may require a Small 
                        Business Development Center receiving 
                        assistance under this paragraph to develop.
                  ``(G) Definitions.--In this section, the following 
                definitions apply:
                          ``(i) Indian lands.--The term `Indian lands' 
                        has the meaning given the term `Indian country' 
                        in section 1151 of title 18, United States 
                        Code, the meaning given the term `Indian 
                        reservation' in section 151.2 of title 25, Code 
                        of Federal Regulations (as in effect on the 
                        date of enactment of this paragraph), and the 
                        meaning given the term `reservation' in section 
                        4 of the Indian Child Welfare Act of 1978 (25 
                        U.S.C. 1903).
                          ``(ii) Indian tribe.--The term `Indian tribe' 
                        means any band, nation, or organized group or 
                        community of Indians located in the contiguous 
                        United States, and the Metlakatla Indian 
                        Community, whose members are recognized as 
                        eligible for the services provided to Indians 
                        by the Secretary of the Interior because of 
                        their status as Indians.
                          ``(iii) Indian tribe member.--The term 
                        `Indian tribe member' means a member of an 
                        Indian tribe (other than a Alaska Native).
                          ``(iv) Alaska native.--The term `Alaska 
                        Native' has the meaning given the term `Native' 
                        in section 3(b) of the Alaska Native Claims 
                        Settlement Act (43 U.S.C. 1602(b)).
                          ``(v) Native hawaiian.--The term `Native 
                        Hawaiian' means any individual who is--
                                  ``(I) a citizen of the United States; 
                                and
                                  ``(II) a descendant of the aboriginal 
                                people, who prior to 1778, occupied and 
                                exercised sovereignty in the area that 
                                now constitutes the State of Hawaii.
                          ``(vi) Tribal organization.--The term `tribal 
                        organization' has the meaning given that term 
                        in section 4(l) of the Indian Self-
                        Determination and Education Assistance Act (25 
                        U.S.C. 450b(l)).
                  ``(H) Authorization of appropriations.--There is 
                authorized to be appropriated to carry out this 
                paragraph $7,000,000 for each of fiscal years 2006 
                through 2008.
                  ``(I) Funding limitations.--
                          ``(i) Nonapplicability of certain 
                        limitations.--Funding under this paragraph 
                        shall be in addition to the dollar program 
                        limitations specified in paragraph (4).
                          ``(ii) Limitation on use of funds.--The 
                        Administration may carry out this paragraph 
                        only with amounts appropriated in advance 
                        specifically to carry out this paragraph.''.

SEC. 3. STATE CONSULTATION WITH TRIBAL ORGANIZATIONS.

  Section 21(c) of the Small Business Act (15 U.S.C. 648(c)) is amended 
by adding at the end the following:
          ``(9) Advice of local tribal organizations.--A Small Business 
        Development Center receiving a grant under this section shall 
        request the advice of tribal organizations on how best to 
        provide assistance to Indian tribe members, Alaska Natives, and 
        Native Hawaiians and where to locate satellite centers to 
        provide such assistance.''.

                                Purpose

    The purpose of H.R. 2981 is to stimulate the economies on 
Native American reservations through the creation and expansion 
of small businesses. The United States Small Business 
Administration oversees the operations of Small Business 
Development Centers (SBDCs). Located in every state, these 
centers are associated with colleges and universities and 
provide operational assistance to small business owners. They 
are authorized to provide assistance to all populations 
wherever located in the United States. In fact, their grant 
agreements require that they provide services throughout their 
entire covered territory. Despite this requirement, Native 
American populations are underserved by the existing SBDC 
program due to the relative isolation from the colleges and 
universities at which the centers deliver their services.
    H.R. 2981 establishes a program for SBDCs from selected 
states to assist the Native American populations with their 
small business development needs. It ensures that members of 
Indian Tribes, Alaska Natives and Native Hawaiians, seeking to 
create, develop and expand small businesses, have full access 
to the necessary business counseling and technical assistance 
available through the national SBDC program. It is the 
expectation of the Committee that the program will assist in 
the creation of new small businesses by Native Americans, 
generate economic growth, and improve job opportunities for 
Native Americans.

                          Need for Legislation

    It is estimated that approximately 60% of the Native 
American and Alaska Native population live on or adjacent to 
Federal Indian reservations and lands set aside pursuant to the 
Alaska Native Claims Settlement Act (43 U.S.C. Sec. Sec. 1610 
and 1615), which suffer from an average unemployment rate of 
45%. According to the 1997 Economic Census report (the data 
from the 2002 economic census will not be available until 
2006), Native Americans and Alaskan Natives owned over 197,000 
businesses, employing almost 300,000 people and generating over 
$34 billion in revenues. Five out of six Native American and 
Alaska Native businesses had no paid employees. The service 
industry accounted for 17% (40% of which were in business and 
personal services) of these businesses and 15.1% of their total 
receipts. The next largest was the construction industry (13.9% 
and 15.7% respectively). The third largest was the retail trade 
industry (7.5% and 13.4% respectively).
    However, the number of Native American- and Alaska Native-
owned businesses grew 84% from 1992-1997, and their gross 
receipts grew by 179%. This is compared to all businesses which 
grew at a rate of 7% during the same time period, and total 
gross receipts grew 40%. The majority are located in twelve 
states: California (13.5%), Texas (8%), Oklahoma (7.7%), 
Florida (5.3%), North Carolina (3.6%), New Mexico (3.4%), 
Alaska (3.4%), New York (3.2%), Michigan (2.9%), Arizona 
(2.8%), Ohio (2.6%), Pennsylvania (2.6%), and Washington 
(2.4%).
    The Small Business Administration oversees a number of 
mechanisms for delivering advice to small business owners. One 
of the most effective is the SBDC program. Operated in 
conjunction with colleges and universities, the SBDCs assist 
small businesses in solving problems concerning the operations, 
manufacturing, engineering, technology, exchange and 
development, personnel administration, marketing, sales, 
merchandising, finance, accounting, business strategy 
development and regulatory assistance. The SBDCs utilize the 
resources and the expertise of colleges and universities. In 
addition, the SBDCs also provide a focal point for information 
retrieval, coordination of federal and state government 
services, and referral to experts.
    The Committee believes that SBDCs can provide an effective 
mechanism for assisting Native Americans in building and 
sustaining businesses in their communities. Unlike the SBDC's 
proven track record, the U.S. Small Business Administration's 
other program to assist Native Americans, the Tribal Business 
Information Centers, has had minimal success. In addition, no 
Administration since the program's inception has requested 
funding for the program. Minimal funding has been provided 
year-to-year from the U.S. Small Business Administration's 
salaries and expenses budget. Therefore, the Committee believes 
that a pilot program through an established and proven federal 
assistance program is a preferred strategy.

                            Committee Action

    The House Committee on Small Business held a hearing on 
July 13, 2005, to consider H.R. 2981. Witnesses testified 
concerning, not only the complexity of starting a small 
business, but following rules and regulations specific to the 
Bureau of Indian Affairs and in addition, other local tribal 
regulations, i.e. environmental and archaeological studies. 
Early advice from SBDCs could have alleviated many of the 
start-up problems faced by Native Americans. Furthermore, 
witnesses noted that the many Native Americans are located on 
lands remote from service sites provided by SBDCs.

                       Consideration of H.R. 2981

    At 9:36 a.m. on July 14, 2005, the Committee on Small 
Business met to consider and report H.R. 2981. Following a 
brief opening statement by the Chairman, he declared the bill 
was open for amendment. The Chairman introduced an amendment in 
the nature of a substitute. No additional amendments were 
offered. Chairman Manzullo then moved the bill be reported, and 
at 9:40 a.m. by unanimous voice vote, a quorum being present, 
the Committee passed H.R. 2981 and ordered it reported.

                      Section-by-Section Analysis


Section 1. Findings and purposes

    This section limits the findings of Congress and the 
purposes for H.R. 2981.

Section 2. Small Business Development Center assistance to Indian tribe 
        members, Alaska Natives, and Native Hawaiians

    This section establishes a program by adding a new 
paragraph (8) to Sec. 2l(a) for additional grant funds to SBDC 
grantees for providing outreach services to startups and 
businesses owned by Indian tribe members, Alaska Natives, and 
Native Hawaiians. Paragraph (A) is designed to provide outreach 
to businesses on Indian lands. The Committee recognizes that 
Indian lands do not include lands set aside pursuant to the 
Alaska Native Claims Settlement Act, see Alaska v. Native 
Village of Venetie Tribal Government, 522 U.S. 520, 532 (1998). 
Since the Committee wants to serve Alaska Natives, the 
Committee expects that, should the SBDC grantee in Alaska will 
site service pursuant to this program by locating centers on or 
near those lands described in the Alaska Native Claims 
Settlement Act.
    Subparagraph (B) specifies the criterion for states in 
which grantees are eligible to apply. The Committee selected 
the one percent minimum to ensure that the limited funds are 
made available to those states with the largest populations of 
members of Indian Tribes, Alaskan Natives, and Native 
Hawaiians.
    Subparagraph (C) mandates that grant applications must be 
submitted in a form established by the Administrator. The 
Committee expects that the responsibility for developing the 
form will be delegated to the Associate Administrator for 
SBDCs. Any such form must contain the contents specified in 
this subparagraph including: the capability of the applicant to 
provide training and services to Indian tribe members, Alaska 
Natives, and Native Hawaiians; the sites at which the grantee 
will provide the services; the amount of grant funding 
requested; and the extent of consultation with local tribal 
councils. The Committee expects that the Administrator will 
select, after review and consultation with the Associate 
Administrator for SBDCs, those applicants that have the best 
plan for providing services to members of Indian tribes, Alaska 
Natives, and Native Hawaiians.
    Subparagraph (D) requires that the applicants and grantees 
must comply with all the provisions of Sec. 21 of the Small 
Business Act except the matching funds requirements of 
paragraph (4)(A) shall not apply. The Committee opted not to 
require matching because the ability to obtain additional non-
federal funds undermines the purpose of providing assistance to 
underserved Indian tribe members, Alaska Natives, and Native 
Hawaiians.
    To maximize the limited funds authorized by H.R. 2981, the 
Committee determined to limit the size of each grant to 
$300,000 in anyone fiscal year. Discussions with SBDC grantees 
suggested that the limitation was adequate to provide the 
services set forth in Sec. 21. In fact, the Committee expects 
that some grants may be for less than the statutory maximum.
    Subparagraph (F) mandates that the Administrator shall 
write regulations governing the operation of the program 
established by H.R. 2981. Under the Administrative Procedure 
Act, the Administrator is not required to promulgate 
regulations pursuant to notice and comment because the Small 
Business Development Center program relates to a government 
grant. The Administrator, by regulation, waives the right to 
forgo notice and comment rulemaking. See 13 CFR Sec. 101.108. 
This requirement is subject to change by administrative fiat. 
Given the factthat the program established by H.R. 2981 
involves members of an underserved population, the Committee decided to 
mandate notice and comment so that the program and subsequent changes 
will have input from all affected parties, particularly those served by 
the winning grantees.
    Clause (i) of subparagraph (F) requires that the 
regulations include standards relating to the services provided 
by winning applicants. The Committee fully expects that the 
regulations will provide for the full panoply of services 
already mandated by Sec. 21. In addition, the rules also should 
contain specific outreach, consulting, and advisory services 
that will be of most utility to the populations to be served 
under the program. Clause (ii) of subparagraph (F) requires 
regulations governing any work plan for grants awarded under 
this paragraph. The Committee is of the opinion that the 
quality of the work plans will be of the key component by which 
the Administrator determines applicants to receive grants under 
this paragraph.
    Clause (i) of subparagraph (G) defines Indian lands in a 
fairly broad manner in order to offer the widest assistance to 
businesses owned by members of Indian tribes without regard to 
whether the business is located specifically on a reservation 
or an area that used to be a reservation but whose population 
is predominantly that of Indian tribe members. Section 1151 of 
title 18, United States Code defines Indian lands by reference 
to Indian reservations. Section 4 of the Indian Child Welfare 
Act, 25 U.S.C. Sec. 1903 defines the term Indian reservation. 
To incorporate those lands upon which a reservation has been 
disestablished or diminished but still includes a substantial 
Indian tribal population, the Committee also includes in the 
definition of Indian land, the definition of reservation set 
forth in 25 CFR Sec. 151.2 and, in particular, subsection (f) 
(defining reservations to include lands formerly designated as 
reservations but no longer reserved).
    Clause (ii) of subparagraph (G) adopts the broadest 
definition of the term ``Indian tribe'' used by the Secretary 
of Interior.
    Clause (iii) of subparagraph (G) states that an ``Indian 
tribe member'' is the member of an Indian tribe. While this 
definition appears circular, it is used in the Indian Child 
Welfare Act and has a well-understood meaning under federal 
Indian law.
    Clause (iii) would incorporate Alaska Natives into its 
definition, but the Committee determined that a more 
appropriate definition of Alaska Native is the one used in 
Sec. 3(b) of the Alaska Native Claims Settlement Act, 43 U.S.C. 
Sec. 1602(b), and adopts that definition in clause (iv) of 
subparagraph (G).
    Clause (v) of subparagraph (G) defines the term ``Native 
Hawaiian by cross-reference to the definition established in 42 
U.S.C. Sec. 11711 but excludes from that definition specific 
requirements of genealogical evidence. Since the program is 
designed to provide grants to SBDCs rather than individuals, 
the Committee determined that it only need describe the target 
populations of the applicants seeking grants.
    Clause (vi) of subparagraph (G) defines the term ``tribal 
organization'' to have the meaning that term is given in 
section 4(1) of the Indian Self-Determination and Education Act 
Assistance Act, 25 U.S.C. Sec. 450b(1). Since one of the key 
elements of this program is input from members of Indian 
tribes, Alaska Natives (or their representative corporations 
should the SBDC grantee and the Administrator find that 
appropriate), and Native Hawaiians, the Committee determined 
that use of the definition of tribal organization was 
appropriate.
    Paragraph (H) authorizes $7 million for the program for 
each fiscal year, 2006, 2007, and 2008. The Committee believes 
that this represents sufficient funds to provide targeted grant 
assistance to SBDC grantees wishing to serve members of Indian 
tribes, Alaska Natives, and Native Hawaiians.
    The Committee was concerned that the establishment of this 
directed program, even with a separate authorization, might 
result in the Administrator diverting existing funds for the 
Small Business Development Center program to the program 
established in paragraph (8). To avoid this problem, the 
Committee provides in paragraph (I) that no funds already 
committed elsewhere pursuant to the funding formula for the 
Small Business Development Center program in paragraph (4) of 
Sec. 21(a) of the Small Business Act shall be used to fund this 
program. In simple terms, if no dedicated appropriation is 
obtained for this program, the Administrator is prohibited from 
operating the program. Nothing in this prohibition is intended 
to interfere with any services that SBDC grantees provide to 
the populations described in this paragraph under their current 
grant agreements.

Section 3. State consultation with local tribal organizations

    This section requires SBDCs participating in the grant 
program established under this paragraph to request the advice 
of local tribal organizations on how best to provide assistance 
to Indian tribe members, Alaska Natives, and Native Hawaiians 
and where to locate satellite centers to provide such 
assistance. Since tribal organizations will have a superior 
knowledge of the types of assistance that is required, the 
Committee believes such consultation will provide the maximum 
benefit to members of Indian tribes, Alaska Natives, and Native 
Hawaiians. Nothing in this legislation is intended to prevent 
either grant winners or the Administrator from also designating 
appropriate Native Alaska village or regional corporations or 
Native Hawaiian organization as additional consultative 
sources. The Committee expects that the applicants will supply 
information on the procedures for carrying out the tribal 
consultations mandated by this section. Since the consultation 
is between a private organization and a federal grantee, the 
Committee does not believe such consultation falls within the 
parameters of the Federal Advisory Committee Act.

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 20, 2005.
Hon. Donald Manzullo,
Chairman, Committee on Small Business,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2981, a bill to 
amend the Small Business Act to expand and improve the 
assistance provided by the Small Business Development Centers 
to Indian Tribe Members, Native Alaskans, and Native Hawaiians.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Melissa E. 
Zimmerman.
            Sincerely,
                                       Douglas Holtz-Eakin,
                                                          Director.
    Enclosure.

H.R. 2981--A bill to amend the Small Business Act to expand and improve 
        the assistance provided by the Small Business Development 
        Centers to Indian Tribe Members, Native Alaskans, and Native 
        Hawaiians

    Summary: H.R. 2981 would authorize the appropriation of $21 
million for fiscal years 2006 through 2008 for outreach to 
small businesses owned by Indian tribe members, Native 
Alaskans, and Native Hawaiians. Under the bill, the Small 
Business Administration would make grants to eligible Small 
Business Development Centers for assisting these groups with 
start-up and expansions of small businesses. Assuming 
appropriation of the specified amounts, CBO estimates that 
implementing H.R. 2981 would cost about $18 million over the 
2006-2010 period. Enacting the bill would not affect direct 
spending or revenues.
    H.R. 2981 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would benefit state, local, and tribal governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 2981 is shown in the following table. 
The costs of this legislation fall within budget function 370 
(commerce and housing credit). For this estimate, CBO assumes 
that the bill will be enacted by the end of 2005, that the 
authorized amounts will be appropriated for each fiscal year, 
and that outlays will follow historical trends. CBO estimates 
that implementing the bill would increase spending subject to 
appropriation by less than $500,000 in 2006 and by about $18 
million over the 2006-2010 period for grants for outreach to 
small businesses owned by Indian tribe members, Native 
Alaskans, and Native Hawaiians.

------------------------------------------------------------------------
                                      By fiscal year, in millions of
                                                 dollars--
                                 ---------------------------------------
                                   2006    2007    2008    2009    2010
------------------------------------------------------------------------
              CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Authorization level.............       7       7       7       0       0
Estimated outlays...............       *       3       5       6       4
------------------------------------------------------------------------
Note--* = less than $500,000.

    Intergovernmental and private-sector impact: H.R. 2981 
contains no intergovernmental or private-sector mandates as 
defined in UMRA. By authorizing appropriations for new Small 
Business Development Centers that meet certain requirements and 
by waiving requirements that eligible entities provide matching 
funds to establish them, the bill would benefit state, local, 
and tribal governments.
    Estimate prepared by: Federal Costs: Melissa E. Zimmerman. 
Impact on State, Local, and Tribal Governments: Sarah Puro. 
Impact on the Private Sector: Craig Cammarata.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                      Committee Estimate of Costs

    Pursuant to the Congressional Budget Act of 1974, the 
Committee estimates that the amendments to the Small Business 
Act contained in H.R. 2981 will not significantly increase 
discretionary spending over the next five fiscal years. The 
Committee also estimates that H.R. 2981 will not affect direct 
spending. These estimates concur with Congressional Budget 
Office (CBO) estimates.
    Furthermore, pursuant to clause 3(d)(2)(A) of rule XIII of 
the Rules of the House of Representatives, the Committee 
estimates that implementation of H.R. 2981 will not 
significantly increase other administrative costs.

                           Oversight Findings

    In accordance with clause (2)(b)(1) of rule X of the Rules 
of the House of Representatives, the oversight findings and 
recommendations of the Committee on Small Business with respect 
to the subject matter contained in H.R. 2981 are incorporated 
into the descriptive portions of this report.

                 Statement of Constitutional Authority

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds the authority for 
this legislation in Article I, Section 8, clause 18, of the 
Constitution of the United States.

                    Compliance With Public Law 104-4

    H.R. 2981 contains no unfunded mandates.

                    Congressional Accountability Act

    H.R. 2981 does not relate to the terms and conditions of 
employment or access to public services or accommodations with 
the meaning of section 102(b)(3) of P.L. 104-1.

                  Federal Advisory Committee Statement

    This legislation does not establish or authorize the 
establishment of any new advisory committees.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italic and existing law in which no change is 
proposed is shown in roman):

                     SECTION 21 SMALL BUSINESS ACT

  Sec. 21. (a)(1)  * * *

           *       *       *       *       *       *       *

          (8) Additional grant to assist indian tribe members, 
        alaska natives, and native hawaiians.--
                  (A) In general.--Any applicant in an eligible 
                State that is funded by the Administration as a 
                Small Business Development Center may apply for 
                an additional grant to be used solely to 
                provide services described in subsection (c)(3) 
                to assist with outreach, development, and 
                enhancement on Indian lands of small business 
                startups and expansions owned by Indian tribe 
                members, Alaska Natives, and Native Hawaiians.
                  (B) Eligible states.--For purposes of 
                subparagraph (A), an eligible State is a State 
                that has a combined population of Indian tribe 
                members, Natives Alaskans, and Native Hawaiians 
                that comprises at least 1 percent of the 
                State's total population, as shown by the 
                latest available census.
                  (C) Grant applications.--An applicant for a 
                grant under subparagraph (A) shall submit to 
                the Administration an application that is in 
                such form as the Administration may require. 
                The application shall include information 
                regarding the applicant's goals and objectives 
                for the services to be provided using the 
                grant, including--
                          (i) the capability of the applicant 
                        to provide training and services to a 
                        representative number of Indian tribe 
                        members, Alaska Natives, and Native 
                        Hawaiians;
                          (ii) the location of the Small 
                        Business Development Center site 
                        proposed by the applicant;
                          (iii) the required amount of grant 
                        funding needed by the applicant to 
                        implement the program; and
                          (iv) the extent to which the 
                        applicant has consulted with local 
                        Tribal Councils.
                  (D) Applicability of grant requirements.--An 
                applicant for a grant under subparagraph (A) 
                shall comply with all of the requirements of 
                this section, except that the matching funds 
                requirements under paragraph (4)(A) shall not 
                apply.
                  (E) Maximum amount of grants.--No applicant 
                may receive more than $300,000 in grants under 
                this paragraph for one fiscal year.
                  (F) Regulations.--After providing notice and 
                an opportunity for comment and after consulting 
                with the Association recognized by the 
                Administration pursuant to paragraph (3)(A) 
                (but not later than 180 days after the date of 
                enactment of this paragraph), the 
                Administration shall issue final regulations to 
                carry out this paragraph, including regulations 
                that establish--
                          (i) standards relating to 
                        educational, technical, and support 
                        services to be provided by Small 
                        Business Development Centers receiving 
                        assistance under this paragraph; and
                          (ii) standards relating to any work 
                        plan that the Administration may 
                        require a Small Business Development 
                        Center receiving assistance under this 
                        paragraph to develop.
                  (G) Definitions.--In this section, the 
                following definitions apply:
                          (i) Indian lands.--The term ``Indian 
                        lands'' has the meaning given the term 
                        ``Indian country'' in section 1151 of 
                        title 18, United States Code, the 
                        meaning given the term ``Indian 
                        reservation'' in section 151.2 of title 
                        25, Code of Federal Regulations (as in 
                        effect on the date of enactment of this 
                        paragraph), and the meaning given the 
                        term ``reservation'' in section 4 of 
                        the Indian Child Welfare Act of 1978 
                        (25 U.S.C. 1903).
                          (ii) Indian tribe.--The term ``Indian 
                        tribe'' means any band, nation, or 
                        organized group or community of Indians 
                        located in the contiguous United 
                        States, and the Metlakatla Indian 
                        Community, whose members are recognized 
                        as eligible for the services provided 
                        to Indians by the Secretary of the 
                        Interior because of their status as 
                        Indians.
                          (iii) Indian tribe member.--The term 
                        ``Indian tribe member'' means a member 
                        of an Indian tribe (other than a Alaska 
                        Native).
                          (iv) Alaska native.--The term 
                        ``Alaska Native'' has the meaning given 
                        the term ``Native'' in section 3(b) of 
                        the Alaska Native Claims Settlement Act 
                        (43 U.S.C. 1602(b)).
                          (v) Native hawaiian.--The term 
                        ``Native Hawaiian'' means any 
                        individual who is--
                                  (I) a citizen of the United 
                                States; and
                                  (II) a descendant of the 
                                aboriginal people, who prior to 
                                1778, occupied and exercised 
                                sovereignty in the area that 
                                now constitutes the State of 
                                Hawaii.
                          (vi) Tribal organization.--The term 
                        ``tribal organization'' has the meaning 
                        given that term in section 4(l) of the 
                        Indian Self-Determination and Education 
                        Assistance Act (25 U.S.C. 450b(l)).
                  (H) Authorization of appropriations.--There 
                is authorized to be appropriated to carry out 
                this paragraph $7,000,000 for each of fiscal 
                years 2006 through 2008.
                  (I) Funding limitations.--
                          (i) Nonapplicability of certain 
                        limitations.--Funding under this 
                        paragraph shall be in addition to the 
                        dollar program limitations specified in 
                        paragraph (4).
                          (ii) Limitation on use of funds.--The 
                        Administration may carry out this 
                        paragraph only with amounts 
                        appropriated in advance specifically to 
                        carry out this paragraph.

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  (c)(1)  * * *

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          (9) Advice of local tribal organizations.--A Small 
        Business Development Center receiving a grant under 
        this section shall request the advice of tribal 
        organizations on how best to provide assistance to 
        Indian tribe members, Alaska Natives, and Native 
        Hawaiians and where to locate satellite centers to 
        provide such assistance.

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