Home > 106th Congressional Bills > H.R. 1568 (rh) To provide technical, financial, and procurement assistance to veteran owned small businesses, and for other purposes. [Reported in House] ...

H.R. 1568 (rh) To provide technical, financial, and procurement assistance to veteran owned small businesses, and for other purposes. [Reported in House] ...


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106th CONGRESS
  1st Session
                                H. R. 1568


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 30, 1999

  Received; read twice and referred to the Committee on Small Business

_______________________________________________________________________

                                 AN ACT


 
To provide technical, financial, and procurement assistance to veteran 
            owned small businesses, 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.

    This Act may be cited as the ``Veterans Entrepreneurship and Small 
Business Development Act of 1999''.

SEC. 2. TABLE OF CONTENTS.

Sec. 1. Short title.
Sec. 2. Table of contents.
                      TITLE I--GENERAL PROVISIONS

Sec. 101. Findings.
Sec. 102. Purpose.
Sec. 103. Definitions.
                TITLE II--VETERANS BUSINESS DEVELOPMENT

Sec. 201. Veterans business development in the Small Business 
                            Administration.
Sec. 202. National Veterans Business Development Corporation.
Sec. 203. Advisory Committee on Veterans Business Affairs.
                    TITLE III--TECHNICAL ASSISTANCE

Sec. 301. SCORE program.
Sec. 302. Entrepreneurial assistance.
Sec. 303. Business development and management assistance for military 
                            reservists' small businesses.
                     TITLE IV--FINANCIAL ASSISTANCE

Sec. 401. General business loan program.
Sec. 402. Assistance to active duty military reservists.
Sec. 403. Microloan program.
Sec. 404. Delta loan program.
Sec. 405. State development company program.
                    TITLE V--PROCUREMENT ASSISTANCE

Sec. 501. Subcontracting.
Sec. 502. Participation in Federal procurement.
                 TITLE VI--REPORTS AND DATA COLLECTION

Sec. 601. Reporting requirements.
Sec. 602. Report on small business and competition.
Sec. 603. Annual report of the Administrator.
Sec. 604. Data and information collection.
                  TITLE VII--MISCELLANEOUS PROVISIONS

Sec. 701. Administrator's order.
Sec. 702. Small Business Administration Office of Advocacy.
Sec. 703. Study of fixed-asset small business loans.

                      TITLE I--GENERAL PROVISIONS

SEC. 101. FINDINGS.

    Congress finds the following:
            (1) Veterans of the United States Armed Forces have been 
        and continue to be vital to the small business enterprises of 
        the United States.
            (2) In serving the United States, veterans often faced 
        great risks to preserve the American dream of freedom and 
        prosperity.
            (3) The United States has done too little to assist 
        veterans, particularly service-disabled veterans, in playing a 
        greater role in the economy of the United States by forming and 
        expanding small business enterprises.
            (4) Medical advances and new medical technologies have made 
        it possible for service-disabled veterans to play a much more 
        active role in the formation and expansion of small business 
        enterprises in the United States.
            (5) The United States must provide additional assistance 
        and support to veterans to better equip them to form and expand 
        small business enterprises, thereby enabling them to realize 
        the American dream that they fought to protect.

SEC. 102. PURPOSE.

    The purpose of this Act is to expand existing and establish new 
assistance programs for veterans who own or operate small businesses. 
This Act accomplishes this purpose by--
            (1) expanding the eligibility for certain small business 
        assistance programs to include veterans;
            (2) directing certain departments and agencies of the 
        United States to take actions that enhance small business 
        assistance to veterans; and
            (3) establishing new institutions to provide small business 
        assistance to veterans or to support the institutions that 
        provide such assistance.

SEC. 103. DEFINITIONS.

    (a) Small Business Act.--Section 3 of the Small Business Act (15 
U.S.C. 632) is amended by adding at the end the following:
    ``(q) Definitions Relating to Veterans.--In this Act, the following 
definitions apply:
            ``(1) Service-disabled veteran.--The term `service-disabled 
        veteran' means a veteran with a disability that is service-
        connected (as defined in section 101(16) of title 38, United 
        States Code).
            ``(2) Small business concern owned and controlled by 
        service-disabled veterans.--The term `small business concern 
        owned and controlled by service-disabled veterans' means a 
        small business concern--
                    ``(A) not less than 51 percent of which is owned by 
                one or more service-disabled veterans or, in the case 
                of any publicly owned business, not less than 51 
                percent of the stock of which is owned by one or more 
                service-disabled veterans; and
                    ``(B) the management and daily business operations 
                of which are controlled by one or more service-disabled 
                veterans or, in the case of a veteran with permanent 
                and severe disability, the spouse or permanent 
                caregiver of such veteran.
            ``(3) Small business concern owned and controlled by 
        veterans.--The term `small business concern owned and 
        controlled by veterans' means a small business concern--
                    ``(A) not less than 51 percent of which is owned by 
                one or more veterans or, in the case of any publicly 
                owned business, not less than 51 percent of the stock 
                of which is owned by one or more veterans; and
                    ``(B) the management and daily business operations 
                of which are controlled by one or more veterans.
            ``(4) Veteran.--The term `veteran' has the meaning given 
        the term in section 101(2) of title 38, United States Code.''.
    (b) Applicability to This Act.--In this Act, the definitions 
contained in section 3(q) of the Small Business Act, as added by this 
section, apply.

                TITLE II--VETERANS BUSINESS DEVELOPMENT

SEC. 201. VETERANS BUSINESS DEVELOPMENT IN THE SMALL BUSINESS 
              ADMINISTRATION.

    (a) In General.--Section 4(b)(1) of the Small Business Act (15 
U.S.C. 633(b)(1)) is amended--
            (1) in the fifth sentence, by striking ``four Associate 
        Administrators'' and inserting ``five Associate 
        Administrators''; and
            (2) by inserting after the fifth sentence the following: 
        ``One such Associate Administrator shall be the Associate 
        Administrator for Veterans Business Development, who shall 
        administer the Office of Veterans Business Development 
        established under section 32.''.
    (b) Office of Veterans Business Development; Associate 
Administrator.--The Small Business Act (15 U.S.C. 631 et seq.) is 
further amended--
            (1) by redesignating section 32 as section 34; and
            (2) by inserting after section 31 the following:

``SEC. 32. VETERANS PROGRAMS.

    ``(a) Office of Veterans Business Development.--There is 
established in the Administration an Office of Veterans Business 
Development, which shall be administered by the Associate Administrator 
for Veterans Business Development (in this section referred to as the 
`Associate Administrator') appointed under section 4(b)(1).
    ``(b) Associate Administrator for Veterans Business Development.--
The Associate Administrator--
            ``(1) shall be an appointee in the Senior Executive 
        Service;
            ``(2) shall be responsible for the formulation, execution, 
        and promotion of policies and programs of the Administration 
        that provide assistance to small business concerns owned and 
        controlled by veterans and small business concerns owned and 
        controlled by service-disabled veterans. The Associate 
        Administrator shall act as an ombudsman for full consideration 
        of veterans in all programs of the Administration; and
            ``(3) shall report to and be responsible directly to the 
        Administrator.''.

SEC. 202. NATIONAL VETERANS BUSINESS DEVELOPMENT CORPORATION.

    The Small Business Act (15 U.S.C. 631 et seq.) is further amended 
by adding after section 32 (as added by this Act) the following:

``SEC. 33. NATIONAL VETERANS BUSINESS DEVELOPMENT CORPORATION.

    ``(a) Establishment.--There is established a federally chartered 
corporation to be known as the National Veterans Business Development 
Corporation (in this section referred to as the `Corporation') which 
shall be incorporated under the laws of the District of Columbia and 
which shall have the powers granted in this section.
    ``(b) Purposes of the Corporation.--The purposes of the Corporation 
shall be--
            ``(1) to expand the provision of and improve access to 
        technical assistance regarding entrepreneurship for the 
        Nation's veterans; and
            ``(2) to assist veterans, including service-disabled 
        veterans, with the formation and expansion of small business 
        concerns by working with and organizing public and private 
        resources, including those of the Small Business 
        Administration, the Department of Veterans Affairs, the 
        Department of Labor, the Department of Commerce, the Department 
        of Defense, the Service Corps of Retired Executives (described 
        in section 8(b)(1)(B) of this Act), the Small Business 
        Development Centers (described in section 21 of this Act), and 
        the business development staffs of each department and agency 
        of the United States.
    ``(c) Board of Directors.--
            ``(1) In general.--The management of the Corporation shall 
        be vested in a Board of Directors composed of nine voting 
        members and three nonvoting ex officio members.
            ``(2) Appointment of voting members.--The President shall 
        appoint United States citizens to be voting members of the 
        Board of Directors as follows:
                    ``(A) One from a list of individuals nominated by 
                the chairman of the Committee on Small Business of the 
                House of Representatives.
                    ``(B) One from a list of individuals nominated by 
                the chairman of the Committee on Small Business of the 
                Senate.
                    ``(C) One from a list of individuals nominated by 
                the ranking minority member of the Committee on Small 
                Business of the House of Representatives.
                    ``(D) One from a list of individuals nominated by 
                the ranking minority members of the Committee on Small 
                Business of the Senate.
                    ``(E) One from a list of individuals nominated by 
                the chairman of the Committee on Veterans' Affairs of 
                the House of Representatives.
                    ``(F) One from a list of individuals nominated by 
                the chairman of the Committee on Veterans' Affairs of 
                the Senate.
                    ``(G) One from a list of individuals nominated by 
                the ranking minority member of the Committee on 
                Veterans' Affairs of the House of Representatives.
                    ``(H) One from a list of individuals nominated the 
                ranking minority member of the Committee on Veterans' 
                Affairs of the Senate.
                    ``(I) One of the President's own choosing.
            ``(3) Ex officio members.--The Administrator of the Small 
        Business Administration, the Secretary of Defense, and the 
        Secretary of Veterans Affairs shall serve as the nonvoting ex 
        officio members of the Board of Directors.
            ``(4) Chairperson.--The members of the Board of Directors 
        appointed under paragraph (2) shall elect one such member to 
        serve as chairperson of the Board of Directors for a term of 2 
        years.
            ``(5) Terms of appointed members.--
                    ``(A) In general.--Each member of the Board of 
                Directors appointed under paragraph (2) shall serve a 
                term of 6 years, except as provided in subparagraph 
                (B).
                    ``(B) Terms of initial appointees.--As designated 
                by the President at the time of appointment, of the 
                members first appointed--
                            ``(i) three shall be for a term of 2 years; 
                        and
                            ``(ii) three shall be for a term of 4 
                        years.
                    ``(C) Unexpired terms.--Any member of the Board of 
                Directors appointed to fill a vacancy occurring before 
                the expiration of the term for which the member's 
                predecessor was appointed shall be appointed only for 
                the remainder of the term. A member may serve after the 
                expiration of that member's term until a successor has 
                taken office.
            ``(6) Vacancies.--Any vacancy on the Board of Directors 
        shall be filled in the manner in which the original appointment 
        was made. In the case of a vacancy in the office of the 
        Administrator of the Small Business Administration or the 
        Secretary of Veterans Affairs, and pending the appointment of a 
        successor, an acting appointee for such vacancy may serve as an 
        ex officio member.
            ``(7) Ineligibility for other offices.--No voting member of 
        the Board of Directors may be an officer or employee of the 
        United States while serving as a member of the Board of 
        Directors or during the 2-year period preceding such service.
            ``(8) Impartiality and nondiscrimination.--The Board of 
        Directors shall administer the affairs of the Corporation 
        fairly and impartially and without discrimination.
            ``(9) Obligations and expenses.--The Board of Directors 
        shall prescribe the manner in which the obligations of the 
        Corporation may be incurred and in which its expenses shall be 
        allowed and paid.

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