[House Report 118-394]
[From the U.S. Government Publishing Office]



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118th Congress }                                              { Report
                        HOUSE OF REPRESENTATIVES
  2d Session   }                                              { 118-394

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                    NATIVE AMERICAN ENTREPRENEURIAL 
                            OPPORTUNITY ACT

                                _______
                                

 February 23, 2024.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

Mr. Williams of Texas, from the Committee on Small Business, submitted 
                             the following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 7102]

    The Committee on Small Business, to whom was referred the 
bill (H.R. 7102) to establish an Office of Native American 
Affairs within the Small Business Administration, and for other 
purposes, having considered the same, reports favorably thereon 
without amendment and recommends that the bill do pass.

                                CONTENTS

                                                                   Page
   I. Purpose and Bill Summary........................................2
  II. Need for Legislation............................................2
 III. Hearings........................................................2
  IV. Committee Consideration.........................................2
   V. Committee Votes.................................................2
  VI. Section-by-Section of H.R. 7102.................................5
 VII. Congressional Budget Office Cost Estimate.......................5
VIII. New Budget Authority, Entitlement Authority, and Tax Expenditure5
  IX. Oversight Findings & Recommendations............................5
   X. Performance Goals and Objectives................................5
  XI. Statement of Duplication of Federal Programs....................6
 XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
      Benefits........................................................6
XIII. Federal Mandates Statement......................................6
 XIV. Federal Advisory Committee Statement............................6
  XV. Applicability to Legislative Branch.............................6
 XVI. Statement of Constitutional Authority...........................6
XVII. Changes in Existing Law Made by the Bill, As Reported...........6
XVIII.Minority Views..................................................9


                      I. Purpose and Bill Summary

    On January 29, 2024, Rep. Davids and Rep. Crane introduced 
H.R. 7102. The purpose of H.R. 7102, the ``Native American 
Entrepreneurial Opportunity Act,'' is to provide statutory 
codification for the Office of Native American Affairs within 
the U.S. Small Business Administration (SBA). In doing so, 
Congress will be able to provide better oversight into the 
activities and effectiveness of the office.

                        II. Need for Legislation

    The SBA's Office of Native American Affairs has been 
providing services to Indian Tribes and Native Hawaiian 
Organizations for decades. This bill will codify the office 
within statute, better outlining the roles and responsibilities 
of the office. It will also require a report to Congress on the 
activities of the office.

                             III. Hearings

    In the 118th Congress, the Committee held one hearing 
examining the issues covered in H.R. 7102. On June 13, 2023, 
the Committee held a hearing titled ``Assisting Entrepreneurs: 
Examining Private and Public Resources Helping Small 
Businessess.'' Witnesses discussed challenges faced by 
entrepreneurs in underserved communities.

                      IV. Committee Consideration

    The Committee on Small Business met in open session, with a 
quorum being present, on January 31, 2024, and ordered H.R. 
7102 reported favorably to the House of Representatives. During 
the markup no amendments were offered.

                           V. Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the recorded 
votes on the motion to report legislation and amendments 
thereto. The Committee voted to favorably report H.R. 7102 to 
the House of Representaives at 11:54 a.m.


                  VI. Section-by-Section of H.R. 7102


Section 1. Short title

    This section titles the bill as the ``Native American 
Entrepreneurial Opportunity Act''.

Section 2. Office of Native American Affairs

    This section codifies the Office of Native American Affairs 
within the SBA. The office is responsible for establishing 
working relationships with Indian Tribes and Native Hawaiian 
Organizations to promote programs, consultations, and 
entrepreneurial counseling. This section also requires the 
Assistant Administrator of the office to provide an annual 
report to Congress on the number of clients served, number of 
consultations conducted, and number of trainings held.

Section 3. Compliance with CUTGO

    This section reiterates that not additional funding is 
authorized to be approprated to carry out the bill.

             VII. Congressional Budget Office Cost Estimate

    Pursuant to clause 3(d)(1) of House rule XIII, the 
Committee adopts as its own the cost estimate prepared by the 
Director of the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974. The Committee has 
requested but not received from the Director of the 
Congressional Budget Office a cost estimate for the Committee's 
provisions. Once available, the cost estimate with be published 
in the Congressional Record.

         VII. New Budget Authority, Entitlement Authority, and 
                            Tax Expenditures

    Pursuant to clause 3(c)(2) of rule XIII of the Rules of the 
House of Representatives and section 308(a)(I) of the 
Congressional Budget Act of 1974, the Committee provides the 
following opinion and estimate with respect to new budget 
authority, entitlement authority, and tax expenditures. While 
the Committee has not received an estimate of new budget 
authority contained in the cost estimate prepared by the 
Director of the Congressional Budget Act of 1974, the Committee 
does not believe that there will be any additional costs 
attributable to this legislation. H.R. 7102 does not direct 
spending, but instead reallocates funding independently 
authorized and approriated.

                IX. Oversight Findings & Recommendations

    In accordance with clause 3(c)(1) of rule XIII and 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. 7102 are incorporated into the descriptive portions of 
this report.

                  X. Performance Goals and Objectives

    With respect to the requirements of clause 3(c)(1) of rule 
XIII of the Rules of the House of Representatives, the 
performance goals and objectives of H.R. 7102 are to require an 
annual report to Congress by the Office of Native American 
Affairs.

            XI. Statement of Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, no provision of H.R. 7102 is known to 
be duplicative of another Federal program, including any 
program that was included in a report to Congress puruant to 
section 21 of Public Law 111-139 or the most recent Catalog of 
Federal Domestic Assistance.

 XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

    With respect to clause 9 of rule XXI of the Rules of the 
House of Representatives, the Committee finds that the bill 
does not contain any congressional earmarks, limited tax 
benefits, or limited tariff benefits as defined in clause 9(e), 
9(f), or 9(g) of rule XXI of the Rules of the House of 
Representatives.

                    XIII. Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

               XIV. Federal Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                XV. Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

               XVI. Statement of Constitutional Authority

    Pursuant to clause 7 of rule XII of the Rules of the House, 
the Committee finds that the authority for this legislation in 
Art. I, Sec. 8, cl. 1 of the Constitution of the Unites States.

      XVII. 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 (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

         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 (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

                           SMALL BUSINESS ACT



           *       *       *       *       *       *       *
SEC. 49. OFFICE OF NATIVE AMERICAN AFFAIRS.

  (a) Definitions.--In this section:
          (1) Assistant administrator.--The term ``Assistant 
        Administrator'' means the Assistant Administrator for 
        Native American Affairs appointed under subsection (c).
          (2) Indian tribe.--The term ``Indian Tribe'' has the 
        meaning given the term ``Indian tribe'' in section 
        8(a)(13).
          (3) Native hawaiian organization.--The term ``Native 
        Hawaiian Organization'' has the meaning given the term 
        in section 8(a)(15).
          (4) Office.--The term ``Office'' means the Office of 
        Native American Affairs described in this section.
  (b) Establishment.--
          (1) In general.--There is established within the 
        Administration the Office of Native American Affairs, 
        which shall be responsible for establishing a working 
        relationship with Indian Tribes and Native Hawaiian 
        Organizations by targeting programs of the 
        Administration relating to entrepreneurial development, 
        contracting, and capital access to--
                  (A) establish or expand small business 
                concerns owned and controlled by individuals 
                who are members of Indian Tribes or Native 
                Hawaiian Organizations; and
                  (B) promote economic development in Indian 
                country (as defined in section 1151 of title 
                18, United States Code).
          (2) Connection with other programs.--To the extent 
        reasonable, the Office shall educate Indian Tribes and 
        Native Hawaiian Organizations about programs 
        administered by other Federal agencies related to the 
        interests described in paragraph (1).
  (c) Assistant Administrator.--The Office shall be headed by 
an Assistant Administrator for Native American Affairs, who 
shall--
          (1) be appointed by and report to the Administrator;
          (2) have knowledge of Native American cultures and 
        experience providing culturally tailored small business 
        development assistance to Native Americans;
          (3) provide assistance to Indian Tribes and Native 
        Hawaiian Organizations and small business concerns 
        owned and controlled by individuals who are members of 
        Indian Tribes or Native Hawaiian Organizations;
          (4) formulate policies, and promote policies and 
        existing programs, to better address the 
        entrepreneurial, capital access, business development, 
        and contracting needs of persons described in paragraph 
        (3);
          (5) collaborate with Associate Administrators within 
        the Administration and officials of other Federal 
        agencies to develop policies and plans to implement 
        programs of the Administration to holistically address 
        the needs described in paragraph (4);
          (6) provide assistance, including grants, contracts, 
        cooperative agreements, or other financial assistance, 
        to Indian Tribes and Native Hawaiian Organizations, or 
        to private nonprofit organizations governed by members 
        of Indian Tribes or Native Hawaiian Organizations that 
        have the experience and capability to use the 
        assistance to--
                  (A) deploy training, counseling, workshops, 
                educational outreach, and supplier events; and
                  (B) access the entrepreneurial, capital, and 
                contracting programs of the Administration;
          (7) assist the Administrator in conducting, or 
        conduct, Tribal consultation to solicit input and 
        facilitate discussion of potential modifications to 
        programs and procedures of the Administration; and
          (8) recommend annual budgets for the Office.
  (d) Report to Congress.--On an annual basis until the 
termination date, the Assistant Administrator shall submit to 
Congress a report on the effectiveness of the Office of Native 
American Affairs that includes the number of clients served in 
Tribal communities, the number of consultations conducted, and 
the number of trainings held in Tribal country.
  (e) Termination.--The authority under this section shall 
terminate seven years after the date of the enactment of this 
section.
  Sec. [49.]  50. All laws and parts of laws inconsistent with 
this Act are hereby repealed to the extent of such 
inconsistency.

                         XVIII. MINORITY VIEWS

    The mission of the Office of Native American Affairs is to 
ensure American Indians, Alaska Natives, and Native Hawaiians 
seeking to start and grow small businesses have access to SBA's 
entrepreneurial development, lending, and procurement programs. 
The Office currently engages in numerous outreach activities, 
including tribal consultations, development and distribution of 
promotional materials, and participation in national economic 
development conferences. The Office also contracts with third-
party vendors to provide workshops on business development and 
financial literacy, training webinars, incubator training, and 
online entrepreneurial classes.\1\
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    \1\Office of Native American Affairs, U.S. Small Bus. Admin. (Nov. 
14, 2023), https://www.sba.gov/about-sba/sba-locations/headquarters-
offices/office-native-american-affairs.
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    In 2020, there were more than 3.7 million people who 
identified as American Indian and Alaska Native alone,\2\ and 
there are 574 federally recognized Indian tribes in the United 
States.\3\ In exchange for the surrender of their lands, their 
removal, and resettlement, the United States signed 375 
treaties, passed laws, and instituted policies to shape and 
define the special relationship between the federal government 
and tribal governments.\4\ However, the U.S. government also 
forced many Native Americans to give up their culture and, 
historically, has not provided the resources to support Native 
American interconnected infrastructure, self-governance, 
housing, education, health, and economic development needs.\5\ 
As a result, Native Americans continue to experience lower 
educational attainment, higher unemployment rates, and lower 
median incomes than other racial and ethnic groups.\6\
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    \2\Table P1: Race, U.S. Census Bureau (2020), https://
data.census.gov/table?g=010XX00US.
    \3\Facts for Features: American Indian and Alaska Native Heritage 
Month, U.S. Census Bureau (Nov. 15, 2023), https://www.census.gov/
newsroom/facts-for-features/2023/aian-month.html.
    \4\U.S. Comm'n on C.R., Broken Promises: Continuing Federal Funding 
Shortfall for Native Americans, (Dec. 20, 2018), https://www.usccr.gov/
pubs/2018/12-20-Broken-Promises.pdf.
    \5\Id.
    \6\Dedrick Asante Muhammad, Esha Kamra, Connor Sanchez, Kathy 
Ramirez, & Rogelio Tec, Racial Wealth Snapshot: Native Americans, Nat'l 
Cmty. Reinvestment Coal. (Feb. 14, 2022), https://ncrc.org/racial-
wealth-snapshot-native-americans.
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    Entrepreneurship can provide a pathway out of poverty for 
American Indians and Alaska Natives, which have the highest 
poverty rate among all racial and ethnic groups. Native 
American-owned businesses contribute over $33 billion to the 
U.S. economy every year and employ 200,000 people.\7\ 
Statutorily authorizing the Office of Native American Affairs 
at SBA will increase access to federal programs and services 
that support Native American entrepreneurs across the country 
and help Native Americans launch and grow small businesses, and 
in turn, promote economic development in their tribal 
communities.
---------------------------------------------------------------------------
    \7\Table AB1900NESD01: Statistics for Employer and Nonemployer 
Firms by Industry, Sex, Ethnicity, Race, and Veteran Status: U.S. 
Census Bureau (2019), https://data.census.gov/table/
ABSNESD2019.AB1900NESD01?q=ab1900NESD01&g=010XX00US&y=2019.
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            Sincerely,
                                        Nydia M. Velazquez,
                                                    Ranking Member.