109th CONGRESS
2d Session
S. 3659
To reauthorize and improve the women's small business ownership
programs of the Small Business Administration, and for other purposes.
IN THE SENATE OF THE UNITED STATES
July 13, 2006
Ms. SNOWE (for herself and Mr. KERRY) introduced the following bill; which
was read twice and referred to the Committee on Small Business and Entrepreneurship
A BILL
To reauthorize and improve the women's small business ownership
programs of the Small Business Administration, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title- This Act may be cited as the `Women's Small Business Ownership
Programs Act of 2006'.
(b) Table of Contents- The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Office of Women's Business Ownership.
Sec. 3. Women's Business Center Program.
Sec. 4. National Women's Business Council.
Sec. 5. Interagency Committee on Women's Business Enterprise.
Sec. 6. Preserving the independence of the National Women's Business Council.
SEC. 2. OFFICE OF WOMEN'S BUSINESS OWNERSHIP.
Section 29(g) of the Small Business Act (15 U.S.C. 656(g)) is amended--
(A) in subparagraph (B)(i), by striking `in the areas' and all that
follows through the end of subclause (I), and inserting the following:
`to address issues concerning management, operations, manufacturing,
technology, finance, retail and product sales, international trade,
and other disciplines required for--
`(I) starting, operating, and growing a small business concern;';
and
(B) in subparagraph (C), by inserting before the period at the end the
following: `, the National Women's Business Council, and any association
of women's business centers' ; and
(2) by adding at the end the following:
`(3) PROGRAMS AND SERVICES FOR WOMEN-OWNED SMALL BUSINESSES- The Assistant
Administrator, in consultation with the National Women's Business Council,
the Interagency Committee on Women's Business Enterprise, and 1 or more
associations of women's business centers, shall develop programs and services
for women-owned businesses (as defined in section 408 of the Women's Business
Ownership Act of 1988 (15 U.S.C. 631 note)) in business areas, which may
include--
`(C) professional services;
`(D) retail and product sales;
`(F) international trade; and
`(G) Federal Government contract business development.
`(4) TRAINING- The Administrator shall provide annual programmatic and
financial oversight training for women's business ownership representatives
and district office technical representatives of the Administration to
enable representatives to carry out their responsibilities under this
section.
`(5) GRANT PROGRAM IMPROVEMENT- The Administrator shall improve the women's
business center grant proposal process and the programmatic and financial
oversight process by--
`(A) providing notice to the public of each women's business center
grant announcement for an initial and renewal grant, not later than
6 months before awarding such grant;
`(B) providing notice to grant applicants and recipients of program
evaluation criteria, not later than 12 months before any such evaluation;
`(C) reducing paperwork and reporting requirements for grant applicants
and recipients;
`(D) standardizing the oversight and review process of the Administration;
and
`(E) providing to each women's business center, not later than 30 days
after the completion of a site visit at that center, a copy of site
visit reports and evaluation reports prepared by district office technical
representatives or Administration officials.'.
SEC. 3. WOMEN'S BUSINESS CENTER PROGRAM.
(a) Women's Business Center Grants Program- Section 29 of the Small Business
Act (15 U.S.C. 656) is amended--
(A) by redesignating paragraphs (2), (3), and (4), as paragraphs (3),
(4), and (5), respectively; and
(B) by inserting after paragraph (1) the following:
`(2) the term `association of women's business centers' means an organization
that represents not fewer than 30 percent of the women's business centers
that are participating in a program under this section, and whose primary
purpose is to represent women's business centers;'; and
(2) by striking subsections (b) through (f) and inserting the following:
`(A) ISSUANCE- The Administrator may award initial and renewal grants
of not more than $150,000 per year, which shall be known as `women's
business center grants', to private nonprofit organizations to conduct
projects for the benefit of small business concerns owned and controlled
by women.
`(B) RENEWALS- At the end of the initial 4-year grant period, and every
3 years thereafter, the grant recipient may apply to renew the grant
in accordance with this subsection and subsection (e)(2).
`(C) EQUAL ALLOCATIONS- In the event that the Administration has insufficient
funds to provide grants of $150,000 for each eligible women's business
center, available funds shall be allocated equally to eligible centers,
unless any center requests a lower amount than the allocable amount.
`(2) COOPERATIVE AGREEMENT AUTHORITY-
`(A) IN GENERAL- The Administrator may enter into Federal cooperative
agreements with grant recipients under this subsection to perform the
services described under paragraph (3), only to the extent and in the
amount provided by appropriated funds.
`(i) IN GENERAL- If any grant recipient under this subsection does
not fulfill its grant obligations, after advanced notification, during
the period of the grant, the Administrator may terminate the grant.
`(ii) EXCEPTION- Notwithstanding a violation by a grant recipient
of a grant obligation under this subsection, the Administrator may
continue to fund the grant, if the grant recipient is making a good
faith effort to comply with such obligation.
`(3) USE OF FUNDS- Grants awarded under this subsection may be used to
provide training and counseling in the areas of--
`(A) pre-business, business startup, and business operations;
`(B) financial planning assistance;
`(C) procurement assistance;
`(D) management assistance;
`(E) marketing assistance; and
`(F) international trade.
`(4) MATCHING REQUIREMENT-
`(A) WOMEN'S BUSINESS CENTER GRANTS- As a condition of receiving financial
assistance under this subsection, the grant recipient shall agree to
obtain, after its application has been approved and notice of award
has been issued, cash contributions from non-Federal sources as follows:
`(i) In the first and second years, 1 non-Federal dollar for each
2 Federal dollars provided under the 4-year grant.
`(ii) In the third and fourth years, 1 non-Federal dollar for each
Federal dollar provided under the 4-year grant.
`(iii) In each renewal period, 1 non-Federal dollar for each Federal
dollar provided under the 3-year grant.
`(B) FORM OF NON-FEDERAL CONTRIBUTIONS- Not more than 1/2 of the non-Federal
sector matching assistance may be in the form of in-kind contributions
that are budget line items only, including office equipment and office
space.
`(C) FAILURE TO OBTAIN NON-FEDERAL FUNDING-
`(i) ADVANCE DISBURSEMENTS- If any grant recipient fails to obtain
the required non-Federal contribution during any project year, it
shall not be eligible for advance disbursements under subparagraph
(D) during the remainder of that project year.
`(ii) ABILITY TO OBTAIN NON-FEDERAL FUNDING- Before approving assistance
to a grant recipient that has failed to obtain the required non-Federal
contribution for any other projects under this Act, the Administrator
shall require the grant recipient to certify that it will be able
to obtain the requisite non-Federal funding and enter a written finding
setting forth the reasons for making such determination.
`(D) FORM OF FEDERAL CONTRIBUTIONS- The financial assistance authorized
under this subsection may be made by grant or cooperative agreement
and may contain such provisions, as necessary, to provide for payments
in lump sum or installments, and in advance or by way of reimbursement.
The Administrator may disburse not more than 25 percent of the Federal
share awarded to a grant recipient for each year after notice of the
award has been issued and before the non-Federal sector matching funds
are obtained.
`(5) APPLICATION FOR AN INITIAL GRANT- Each organization desiring an initial
grant under this subsection, shall submit to the Administrator an application
that contains--
`(A) a certification that the applicant--
`(i) is a private nonprofit organization;
`(ii) has designated an executive director or program manager, who
may be compensated from grant funds or other sources, to manage the
center; and
`(iii) as a condition of receiving a grant under this subsection,
agrees--
`(I) to receive a site visit as part of the final selection process;
`(II) to undergo an annual programmatic and financial examination;
and
`(III) to the maximum extent practicable, to remedy any problems
identified pursuant to the site visit or examination under subclauses
(I) and (II);
`(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 an initial grant is sought, including
the ability to comply with the matching requirement under paragraph
(4);
`(C) information relating to assistance to be provided by the women's
business center site for which an initial grant is sought in the area
in which the site is located;
`(D) information demonstrating the effective experience of the applicant
in--
`(i) conducting financial, management, and marketing assistance programs,
as described under paragraph (3), which are designed to teach or upgrade
the business skills of women who are business owners or potential
business owners;
`(ii) providing training and services to a representative number of
women who are both socially and economically disadvantaged; and
`(iii) using resource partners of the Administration and other entities,
such as universities;
`(E) a 4-year plan that projects the ability of the women's business
center site for which an initial grant is sought--
`(i) to serve women who are business owners or potential owners in
the future by improving training and counseling activities; and
`(ii) to provide training and services to a representative number
of women who are both socially and economically disadvantaged; and
`(F) any additional information that the Administrator may reasonably
require.
`(6) REVIEW AND APPROVAL OF APPLICATIONS FOR AN INITIAL GRANT-
`(A) IN GENERAL- The Administrator shall--
`(i) review each application submitted under paragraph (5), based
on the information described in such paragraph and the criteria set
forth under subparagraph (B) of this paragraph; and
`(ii) as part of the final selection process, conduct a site visit
at each women's business center for which an initial grant is sought.
`(i) IN GENERAL- The Administrator shall evaluate applicants in accordance
with predetermined selection criteria that shall be stated in terms
of relative importance. Such criteria and their relative importance
shall be made publicly available and stated in each solicitation for
applications made by the Administrator.
`(ii) REQUIRED CRITERIA- The selection criteria for an initial grant
under clause (i) shall include--
`(I) the experience of the applicant in conducting programs or ongoing
efforts designed to teach or upgrade the business skills of women
who are business owners or potential owners;
`(II) the ability of the applicant to commence a project within
a minimum amount of time;
`(III) the ability of the applicant to provide training and services
to a representative number of women who are both socially and economically
disadvantaged; and
`(IV) the location for the women's business center site proposed
by the applicant.
`(C) RECORD RETENTION- The Administrator shall maintain a copy of each
application submitted under this paragraph for not less than 7 years.
`(7) APPLICATION FOR A RENEWAL GRANT- Each organization desiring a renewal
grant under this subsection, shall submit to the Administrator, not later
than 3 months before the expiration of an existing grant under this subsection,
an application that contains--
`(A) a certification that the applicant--
`(i) is a private nonprofit organization;
`(ii) has designated an executive director or program manager to manage
the center; and
`(iii) as a condition of receiving a grant under this subsection,
agrees--
`(I) to receive a site visit as part of the final selection process;
`(II) to submit, for the preceding 2 years, annual programmatic
and financial examination reports or certified copies of the applicant's
compliance supplemental audits under OMB Circular A-133; and
`(III) to the maximum extent practicable, to remedy any problems
identified pursuant to the site visit or examination under subclauses
(I) and (II);
`(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 renewal grant is sought, including
the ability to comply with the matching requirement under paragraph
(4);
`(C) information relating to assistance to be provided by the women's
business center site for which a renewal grant is sought in the area
in which the site is located;
`(D) information demonstrating the utilization of resource partners
of the Administration and other entities;
`(E) a 3-year plan that projects the ability of the women's business
center site for which a renewal grant is sought--
`(i) to serve women who are business owners or potential owners in
the future by improving training and counseling activities; and
`(ii) to provide training and services to a representative number
of women who are both socially and economically disadvantaged; and
`(F) any additional information that the Administrator may reasonably
require.
`(8) REVIEW AND APPROVAL OF APPLICATIONS FOR A RENEWAL GRANT-
`(A) IN GENERAL- The Administrator shall--
`(i) review each application submitted under paragraph (7), based
on the information described in such paragraph and the criteria set
forth under subparagraph (B) of this paragraph; and
`(ii) as part of the final selection process, conduct a site visit
at each women's business center for which a renewal grant is sought.
`(B) SELECTION CRITERIA- The Administrator shall evaluate applicants
in accordance with predetermined selection criteria that shall be stated
in terms of relative importance. Such criteria and their relative importance
shall be made publicly available and stated in each solicitation for
applications made by the Administrator.
`(C) CONDITIONS FOR CONTINUED FUNDING- In determining whether to renew
a grant or cooperative agreement with a women's business center, the
Administrator--
`(i) shall consider the results of the most recent evaluation of the
center, and, to a lesser extent, previous evaluations; and
`(ii) may withhold such renewal, if the Administrator determines that
the center has failed to provide the information required to be provided
under this subsection, or the information provided by the center is
inadequate.
`(D) CONTINUING GRANT AND COOPERATIVE AGREEMENT AUTHORITY-
`(i) IN GENERAL- The authority of the Administrator to enter into
grants or cooperative agreements under this subsection shall be in
effect for each fiscal year only to the extent and in the amounts
as are provided in advance in appropriations Acts.
`(ii) RENEWAL- After the Administrator has entered into a grant or
cooperative agreement with any women's business center under this
subsection, the Administrator shall not suspend, terminate, or fail
to renew or extend any such grant or cooperative agreement, unless
the Administrator provides the center with written notification setting
forth the reasons therefore and affords the center an opportunity
for a hearing, appeal, or other administrative proceeding under chapter
5 of title 5, United States Code.
`(E) RECORD RETENTION- The Administrator shall maintain a copy of each
application submitted under this paragraph for not less than 7 years.
`(9) DATA COLLECTION- Consistent with the annual report to Congress under
subsection (g), each women's business center site that is awarded an initial
or renewal grant under this subsection shall collect information relating
to--
`(A) the number of individuals counseled or trained;
`(B) the number of hours of counseling provided;
`(C) the number of workshops conducted;
`(D) the number of startup small business concerns formed; and
`(E) the number of jobs created or maintained at assisted small business
concerns.
`(10) PRIVACY REQUIREMENTS-
`(A) IN GENERAL- A women's business center may not disclose the name,
address, or telephone number of any individual or small business concern
receiving assistance under this subsection 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 considers such a disclosure to be necessary
for the purpose of conducting a financial audit of a women's business
center, but a disclosure under this clause shall be limited to the
information necessary for such audit.
`(B) ADMINISTRATION USE OF INFORMATION- This subsection shall not--
`(i) restrict Administration access to program activity data; or
`(ii) prevent the Administration from using client information (other
than the information described in subparagraph (A)) to conduct client
surveys.
`(C) REGULATIONS- The Administrator shall issue regulations to establish
standards for requiring disclosures during a financial audit under subparagraph
(A)(ii).
`(A) IN GENERAL- Notwithstanding any other provision of law, a grant
or cooperative agreement that was awarded as an eligible sustainability
grant, from amounts appropriated for fiscal year 2006, to operate a
women's business center, shall remain in full force and effect under
the terms, and for the duration, of such agreement, subject to the grant
limitation in paragraph (1).
`(B) EXTENSION- If the sustainability grant under subparagraph (A) is
scheduled to expire not later than June 30, 2007, a 1-year extension
shall be granted without any interruption of funding, subject to the
grant limitation in paragraph (1).
`(C) EFFECT ON CERTAIN EXISTING PROJECTS AND RENEWAL AUTHORITY- A project
being conducted by a women's business center under this subsection on
the day before the date of enactment of the Women's Small Business Ownership
Programs Act of 2006--
`(i) as a 5-year project, shall remain in full force and effect under
the terms and for the duration of that agreement; and
`(ii) shall be eligible to apply for a 3-year renewal grant funded
at a level equal to not more than $150,000 per year.
`(12) COORDINATION OF SERVICES- Small business development centers and
women's business centers shall, to the extent possible, coordinate services
to avoid duplication of programmatic efforts.
`(c) Associations of Women's Business Centers-
`(1) RECOGNITION- The Administrator shall recognize the existence and
activities of any association of women's business centers established
to address matters of common concern.
`(2) CONSULTATION- The Administrator shall consult with each association
of women's business centers to develop--
`(A) a training program for the staff of the women's business centers
and the Administration; and
`(B) recommendations to improve the policies and procedures for governing
the general operations and administration of the Women's Business Center
Program, including grant program improvements under subsection (e)(5).'.
(b) Conforming Amendments- Section 29 of the Small Business Act (15 U.S.C.
656) is amended--
(1) by redesignating subsections (g), (h), (i), (j), and (k) as subsections
(d), (e), (f), (g), and (h), respectively;
(2) in subsection (e)(2), as redesignated by paragraph (1) of this subsection,
by striking `to award a contract (as a sustainability grant) under subsection
(l) or';
(3) in subsection (g)(1), as redesignated by paragraph (1) of this subsection,
by striking `The Administration' and inserting `Not later than November
1st of each year, the Administrator';
(4) in subsection (h), as redesignated by paragraph (1) of this subsection--
(A) by striking paragraphs (1) and (2) and inserting the following:
`(1) IN GENERAL- There are authorized to be appropriated to the Administration
to carry out this section, to remain available until expended--
`(A) $16,500,000 for fiscal year 2007, of which $500,000 may be used
to provide supplemental sustainability grants to women's business centers,
except that no such center may receive more than a total of $125,000
in grant funding for the grant period beginning on July 1, 2006 and
ending on June 30, 2007;
`(B) $17,000,000 for fiscal year 2008; and
`(C) $17,500,000 for fiscal year 2009.
`(2) USE OF AMOUNTS- Amounts made available under this subsection may
only be used for grant awards and may not be used for costs incurred by
the Administration in connection with the management and administration
of the program under this section.'; and
(B) by striking paragraph (4); and
(5) by striking subsection (l).
SEC. 4. NATIONAL WOMEN'S BUSINESS COUNCIL.
(a) Cosponsorship Authority- Section 406 of the Women's Business Ownership
Act of 1988 (15 U.S.C. 7106) is amended by adding at the end the following:
`(f) Cosponsorship Authority- The Council is authorized to enter into agreements
as a cosponsor with public and private entities, in the same manner as is
provided in section 8(b)(1)(A) of the Small Business Act (15 U.S.C. 637(b)(1)(A)),
to carry out its duties under this section.'.
(b) Membership- Section 407(f) of the Women's Business Ownership Act of
1988 (15 U.S.C. 7107(f)) is amended by adding at the end the following:
`(3) REPRESENTATION OF MEMBER ORGANIZATIONS- Notwithstanding subsection
(b), a national women's business organization or small business concern
that is represented on the Council may, in consultation with the chairperson
of the Council, replace its representative member on the Council at any
time during the service term to which that member was appointed.'.
(c) Establishment of Committees- Title IV of the Women's Business Ownership
Act of 1988 (15 U.S.C. 7101 et seq.) is amended by inserting after section
410, the following new section:
`SEC. 411. COMMITTEES.
`(a) Establishment- There are established within the Council--
`(1) the Committee on Manufacturing, Technology, and Training and Professional
Services;
`(2) the Committee on Travel, Tourism, Product and Retail Sales, and International
Trade; and
`(3) the Committee on Federal Procurement and Contracting.
`(b) Duties- The Committees established under subsection (a) shall perform
such duties as the chairperson shall direct.'.
(d) Clearinghouse for Historical Documents- Section 409 of the Women's Business
Ownership Act of 1988 (15 U.S.C. 7109) is amended by adding at the end the
following:
`(c) Clearinghouse for Historical Documents- The Council shall serve as
a clearinghouse for information on small businesses owned and controlled
by women, including research conducted by other organizations and individuals
relating to ownership by women of small business concerns in the United
States.'.
(e) Authorization of Appropriations- Section 410(a) of the Women's Business
Ownership Act of 1988 (15 U.S.C. 7110(a)) is amended by striking `2001 through
2003, of which $550,000' and inserting `2007 through 2009, of which not
less than 30 percent'.
SEC. 5. INTERAGENCY COMMITTEE ON WOMEN'S BUSINESS ENTERPRISE.
(a) Chairperson- Section 403(b) of the Women's Business Ownership Act of
1988 (15 U.S.C. 7103(b)) is amended--
(1) by striking `Not later' and inserting the following:
`(1) IN GENERAL- Not later'; and
(2) by adding at the end the following:
`(2) VACANCY- In the event that a chairperson is not appointed under paragraph
(1), the Deputy Administrator of the Small Business Administration shall
serve as acting chairperson of the Interagency Committee until a chairperson
is appointed under paragraph (1).'.
(b) Policy Advisory Group- Section 401 of the Women's Business Ownership
Act of 1988 (15 U.S.C. 7101) is amended--
(1) by striking `There' and inserting the following:
`(a) In General- There'; and
(2) by adding at the end the following:
`(b) Policy Advisory Group-
`(1) ESTABLISHMENT- There is established a Policy Advisory Group to assist
the chairperson in developing policies and programs under this Act.
`(2) MEMBERSHIP- The Policy Advisory Group shall be composed of 7 policy
making officials, of whom--
`(A) 1 shall be a representative of the Small Business Administration;
`(B) 1 shall be a representative of the Department of Commerce;
`(C) 1 shall be a representative of the Department of Labor;
`(D) 1 shall be a representative of the Department of Defense;
`(E) 1 shall be a representative of the Department of the Treasury;
and
`(F) 2 shall be representatives of the Council.'.
(c) Establishment of Subcommittees- Section 401 of the Women's Business
Ownership Act of 1988 (15 U.S.C. 7101), as amended by subsection (b), is
amended by adding at the end the following:
`(1) ESTABLISHMENT- There are established--
`(A) the Subcommittee on Manufacturing, Technology, and Training and
Professional Services;
`(B) the Subcommittee on Travel, Tourism, Product and Retail Sales,
and International Trade; and
`(C) the Subcommittee on Federal Procurement and Contracting.
`(2) DUTIES- The Subcommittees established under paragraph (1) shall perform
such duties as the chairperson shall direct.
`(3) MEETINGS- The Subcommittees established under paragraph (1) shall
meet not less frequently than 3 times each year to--
`(A) plan activities for the new fiscal year;
`(B) track year-to-date agency contracting goals; and
`(C) evaluate the progress during the fiscal year and prepare an annual
report.'.
SEC. 6. PRESERVING THE INDEPENDENCE OF THE NATIONAL WOMEN'S BUSINESS COUNCIL.
(a) Findings- Congress finds the following:
(1) The National Women's Business Council provides an independent source
of advice and policy recommendations regarding women's business development
and the needs of women entrepreneurs in the United States to--
(C) the Interagency Committee on Women's Business Enterprise; and
(2) The members of the National Women's Business Council are small business
owners, representatives of business organizations, and representatives
of women's business centers.
(3) The chair and ranking member of the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small Business of
the House of Representatives make recommendations to the Administrator
to fill 8 of the positions on the National Women's Business Council. Four
of the positions are reserved for small business owners who are affiliated
with the political party of the President and 4 of the positions are reserved
for small business owners who are not affiliated with the political party
of the President. This method of appointment ensures that the National
Women's Business Council will provide Congress with nonpartisan, balanced,
and independent advice.
(4) In order to maintain the independence of the National Women's Business
Council and to ensure that the Council continues to provide Congress with
advice on a nonpartisan basis, it is essential that the Council maintain
the bipartisan balance established under section 407 of the Women's Business
Ownership Act of 1988 (15 U.S.C. 7107).
(b) Maintenance of Partisan Balance- Section 407(f) of the Women's Business
Ownership Act of 1988 (15 U.S.C. 7107(f)), as amended by this Act, is amended
by adding at the end the following:
`(4) PARTISAN BALANCE- When filling vacancies under paragraph (1), the
Administrator shall, to the extent practicable, ensure that there are
an equal number of members on the Council from each of the 2 major political
parties.
`(5) ACCOUNTABILITY- If a vacancy is not filled within the 30-day period
required under paragraph (1), or if there exists an imbalance of party-affiliated
members on the Council for a period exceeding 30 days, the Administrator
shall submit a report, not later than 10 days after the expiration of
either such 30-day deadline, to the Committee on Small Business and Entrepreneurship
of the Senate and the Committee on Small Business of the House of Representatives,
that explains why the respective deadline was not met and provides an
estimated date on which any vacancies will be filled, as applicable.'.
END
