[106th Congress Public Law 165]
[From the U.S. Government Printing Office]
<DOC>
[DOCID: f:publ165.106]
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Public Law 106-165
106th Congress
An Act
To <<NOTE: Dec. 9, 1999 - [S. 791]>> amend the Small Business Act with
respect to the women's business center program.
Be it enacted by the Senate and House of Representatives of the
United States of America <<NOTE: Women's Business Centers Sustainability
Act of 1999. 15 USC 631 note.>> in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Women's Business Centers
Sustainability Act of 1999''.
SEC. 2. PRIVATE NONPROFIT ORGANIZATIONS.
Section 29 of the Small Business Act (15 U.S.C. 656) is amended--
(1) in subsection (a)--
(A) by redesignating paragraphs (2) and (3) as
paragraphs (3) and (4), respectively; and
(B) by inserting after paragraph (1) the following:
``(2) the term `private nonprofit organization' means an
entity that is described in section 501(c) of the Internal
Revenue Code of 1986 and exempt from taxation under section
501(a) of such Code;''; and
(2) in subsection (b), by inserting ``nonprofit'' after
``private''.
SEC. 3. INCREASED MANAGEMENT OVERSIGHT AND REVIEW OF WOMEN'S
BUSINESS CENTERS.
Section 29 of the Small Business Act (15 U.S.C. 656) is amended--
(1) by striking subsection (h) and inserting the following:
``(h) Program Examination.--
``(1) In general.--The Administration shall--
``(A) develop and implement an annual programmatic
and financial examination of each women's business
center established pursuant to this section, pursuant to
which each such center shall provide to the
Administration--
``(i) an itemized cost breakdown of actual
expenditures for costs incurred during the
preceding year; and
``(ii) documentation regarding the amount of
matching assistance from non-Federal sources
obtained and expended by the center during the
preceding year in order to meet the requirements
of subsection (c) and, with respect to any in-kind
contributions described in subsection (c)(2) that
were used to satisfy the requirements of
subsection (c), verification of the existence and
valuation of those contributions; and
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``(B) analyze the results of each such examination
and, based on that analysis, make a determination
regarding the programmatic and financial viability of
each women's business center.
``(2) Conditions for continued funding.--In determining
whether to award a contract (as a sustainability grant) under
subsection (l) or to renew a contract (either as a grant or
cooperative agreement) under this section with a women's
business center, the Administration--
``(A) shall consider the results of the most recent
examination of the center under paragraph (1); and
``(B) may withhold such award or renewal, if the
Administration determines that--
``(i) the center has failed to provide any
information required to be provided under clause
(i) or (ii) of paragraph (1)(A), or the
information provided by the center is inadequate;
or
``(ii) the center has failed to provide any
information required to be provided by the center
for purposes of the report of the Administration
under subsection (j), or the information provided
by the center is inadequate.''; and
(2) by striking subsection (j) and inserting the following:
``(j) Management Report.--
``(1) In general.--The Administration shall prepare and
submit to the Committees on Small Business of the House of
Representatives and the Senate a report on the effectiveness of
all projects conducted under this section.
``(2) Contents.--Each report submitted under paragraph (1)
shall include information concerning, with respect to each
women's business center established pursuant to this section--
``(A) the number of individuals receiving
assistance;
``(B) the number of startup business concerns
formed;
``(C) the gross receipts of assisted concerns;
``(D) the employment increases or decreases of
assisted concerns;
``(E) to the maximum extent practicable, increases
or decreases in profits of assisted concerns; and
``(F) the most recent analysis, as required under
subsection (h)(1)(B), and the subsequent determination
made by the Administration under that subsection.''.
SEC. 4. WOMEN'S BUSINESS CENTERS SUSTAINABILITY PILOT PROGRAM.
(a) In General.--Section 29 of the Small Business Act (15 U.S.C.
656) is amended by adding at the end the following:
``(l) Sustainability Pilot Program.--
``(1) In <<NOTE: Grants.>> general.--There is established a
4-year pilot program under which the Administration is
authorized to award grants (referred to in this section as
`sustainability grants') on a competitive basis for an
additional 5-year project under this section to any private
nonprofit organization (or a division thereof)--
``(A) that has received financial assistance under
this section pursuant to a grant, contract, or
cooperative agreement; and
``(B) that--
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``(i) is in the final year of a 5-year
project; or
``(ii) has completed a project financed under
this section (or any predecessor to this section)
and continues to provide assistance to women
entrepreneurs.
``(2) Conditions for participation.--In order to receive a
sustainability grant, an organization described in paragraph (1)
shall <<NOTE: Application.>> submit to the Administration an
application, which shall include--
``(A) a certification that the applicant--
``(i) is a private nonprofit organization;
``(ii) employs a full-time executive director
or program manager to manage the center; and
``(iii) as a condition of receiving a
sustainability grant, agrees--
``(I) to a site visit as part of the
final selection process and to an annual
programmatic and financial examination;
and
``(II) to the maximum extent
practicable, to remedy any problems
identified pursuant to that site visit
or examination;
``(B) information demonstrating that the applicant
has the ability and resources to meet the needs of the
market to be served by the women's business center site
for which a sustainability grant is sought, including
the ability to fundraise;
``(C) information relating to assistance provided by
the women's business center site for which a
sustainability grant is sought in the area in which the
site is located, including--
``(i) the number of individuals assisted;
``(ii) the number of hours of counseling,
training, and workshops provided; and
``(iii) the number of startup business
concerns formed;
``(D) information demonstrating the effective
experience of the applicant in--
``(i) conducting financial, management, and
marketing assistance programs, as described in
paragraphs (1), (2), and (3) of subsection (b),
designed to impart or upgrade the business skills
of women business owners or potential owners;
``(ii) providing training and services to a
representative number of women who are both
socially and economically disadvantaged;
``(iii) using resource partners of the
Administration and other entities, such as
universities;
``(iv) complying with the cooperative
agreement of the applicant; and
``(v) the prudent management of finances and
staffing, including the manner in which the
performance of the applicant compared to the
business plan of the applicant and the manner in
which grant funds awarded under subsection (b)
were used by the applicant; and
``(E) a 5-year plan that projects the ability of the
women's business center site for which a sustainability
grant is sought--
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``(i) to serve women business owners or
potential owners in the future by improving
fundraising and training activities; and
``(ii) to provide training and services to a
representative number of women who are both
socially and economically disadvantaged.
``(3) Review of applications.--
``(A) In general.--The Administration shall--
``(i) review each application submitted under
paragraph (2) based on the information provided in
subparagraphs (D) and (E) of that paragraph, and
the criteria set forth in subsection (f);
``(ii) as part of the final selection process,
conduct a site visit at each women's business
center for which a sustainability grant is sought;
and
``(iii) approve or disapprove applications for
sustainability grants simultaneously with
applications for grants under subsection (b).
``(B) Data collection.--Consistent with the annual
report to Congress under subsection (j), each women's
business center site that is awarded a sustainability
grant shall, to the maximum extent practicable, collect
information relating to--
``(i) the number of individuals assisted;
``(ii) the number of hours of counseling and
training provided and workshops conducted;
``(iii) the number of startup business
concerns formed;
``(iv) any available gross receipts of
assisted concerns; and
``(v) the number of jobs created, maintained,
or lost at assisted concerns.
``(C) Record retention.--The Administration shall
maintain a copy of each application submitted under this
subsection for not less than 10 years.
``(4) Non-federal contribution.--
``(A) In general.--Notwithstanding any other
provision of this section, as a condition of receiving a
sustainability grant, an organization described in
paragraph (1) shall agree to obtain, after its
application has been approved under paragraph (3) and
notice of award has been issued, cash and in-kind
contributions from non-Federal sources for each year of
additional program participation in an amount equal to 1
non-Federal dollar for each Federal dollar.
``(B) Form of non-federal contributions.--Not more
than 50 percent of the non-Federal assistance obtained
for purposes of subparagraph (A) may be in the form of
in-kind contributions that are budget line items only,
including office equipment and office space.
``(5) Timing of requests for proposals.--In carrying out
this subsection, the Administration shall issue requests for
proposals for women's business centers applying for the pilot
program under this subsection simultaneously with requests for
proposals for grants under subsection (b).''.
(b) Authorization of Appropriations.--Section 29(k) of the Small
Business Act (15 U.S.C. 656(k)) is amended--
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(1) by striking paragraph (1) and inserting the following:
``(1) In general.--There is authorized to be appropriated,
to remain available until the expiration of the pilot program
under subsection (l)--
``(A) $12,000,000 for fiscal year 2000;
``(B) $12,800,000 for fiscal year 2001;
``(C) $13,700,000 for fiscal year 2002; and
``(D) $14,500,000 for fiscal year 2003.'';
(2) in paragraph (2)--
(A) by striking ``Amounts made'' and inserting the
following:
``(A) In general.--Except as provided in
subparagraph (B), amounts made''; and
(B) by adding at the end the following:
``(B) Exceptions.--Of the amount made available
under this subsection for a fiscal year, the following
amounts shall be available for selection panel costs,
post-award conference costs, and costs related to
monitoring and oversight:
``(i) For fiscal year 2000, 2 percent.
``(ii) For fiscal year 2001, 1.9 percent.
``(iii) For fiscal year 2002, 1.9 percent.
``(iv) For fiscal year 2003, 1.6 percent.'';
and
(3) by adding at the end the following:
``(4) Reservation of funds for sustainability pilot
program.--
``(A) In general.--Subject to subparagraph (B), of
the total amount made available under this subsection
for a fiscal year, the following amounts shall be
reserved for sustainability grants under subsection (l):
``(i) For fiscal year 2000, 17 percent.
``(ii) For fiscal year 2001, 18.8 percent.
``(iii) For fiscal year 2002, 30.2 percent.
``(iv) For fiscal year 2003, 30.2 percent.
``(B) Use of unawarded funds for sustainability
pilot program grants.--If the amount reserved under
subparagraph (A) for any fiscal year is not fully
awarded to private nonprofit organizations described in
subsection (l)(1)(B), the Administration is authorized
to use the unawarded amount to fund additional women's
business center sites or to increase funding of existing
women's business center sites under subsection (b).''.
(c) Guidelines.--Not <<NOTE: Deadline. 15 USC 656 note.>> later
than 30 days after the date of enactment of this Act, the Administrator
of the Small Business Administration shall issue guidelines to implement
the amendments made by this section.
SEC. 5. SENSE OF THE SENATE REGARDING GOVERNMENT PROCUREMENT
ACCESS FOR WOMEN-OWNED SMALL BUSINESSES.
(a) Findings.--The Senate finds that--
(1) women-owned small businesses are a powerful force in the
economy;
(2) between 1987 and 1996--
(A) the number of women-owned small businesses in
the United States increased by 78 percent, almost twice
the rate of increase of all businesses in the United
States;
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(B) the number of women-owned small businesses
increased in every State;
(C) total sales by women-owned small businesses in
the United States increased by 236 percent;
(D) employment provided by women-owned small
businesses in the United States increased by 183
percent; and
(E) the rates of growth for women-owned small
businesses in the United States for the fastest growing
industries were--
(i) 171 percent in construction;
(ii) 157 percent in wholesale trade;
(iii) 140 percent in transportation and
communications;
(iv) 130 percent in agriculture; and
(v) 112 percent in manufacturing;
(3) approximately 8,000,000 women-owned small businesses in
the United States provide jobs for 15,500,000 individuals and
generate almost $1,400,000,000,000 in sales each year;
(4) the participation of women-owned small businesses in the
United States in the procurement market of the Federal
Government is limited;
(5) the Federal Government is the largest purchaser of goods
and services in the United States, spending more than
$200,000,000,000 each year;
(6) the majority of Federal Government purchases are for
items that cost $25,000 or less; and
(7) the rate of Federal procurement for women-owned small
businesses is 2.2 percent.
(b) Sense of the Senate.--It is the sense of the Senate that, not
later than 1 year after the date of enactment of this Act, the
Comptroller General of the United States should--
(1) conduct an audit of the Federal procurement system
regarding Federal contracting involving women-owned small
businesses for the 3 preceding fiscal years;
(2) solicit from Federal employees involved in the Federal
procurement system any suggestions regarding how to increase the
number of Federal contracts awarded to women-owned small
businesses; and
(3) submit to Congress a report on the results of that
audit, which report shall include--
(A) an analysis of any identified trends in Federal
contracting with respect to women-owned small
businesses;
(B) any recommended means to increase the number of
Federal contracts awarded to women-owned small
businesses that the Comptroller General considers to be
appropriate, after taking into consideration any
suggestions received pursuant to a solicitation
described in paragraph (2), including any such means
that incorporate the concepts of teaming or partnering;
and
(C) a discussion of any barriers to the receipt of
Federal contracts by women-owned small businesses and
other small businesses that are created by legal or
regulatory procurement requirements or practices.
[[Page 113 STAT. 1801]]
SEC. 6. <<NOTE: 15 USC 656 note.>> EFFECTIVE DATE.
This Act and the amendments made by this Act shall take effect on
October 1, 1999.
Approved December 9, 1999.
LEGISLATIVE HISTORY--S. 791 (H.R. 1497):
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HOUSE REPORTS: No. 106-365 accompanying H.R. 1497 (Comm. on Small
Business.
SENATE REPORTS: No. 106-214 (Comm. on Small Business).
CONGRESSIONAL RECORD, Vol. 145 (1999):
Nov. 5, considered and passed Senate.
Nov. 18, considered and passed House.
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