HR 2538 RFS

107th CONGRESS

1st Session

H. R. 2538

IN THE SENATE OF THE UNITED STATES

December 6, 2001

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

AN ACT

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.

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 `Native American Small Business Development Act'.

SEC. 2. 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 the governing bodies of Indian tribes, corporations organized pursuant to the Alaska Native Claims Settlement Act and other Alaska Native entities, and Native Hawaiian organizations 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. 3. 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:

`(7) 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 of small business startups and expansions that are owned by Indian tribe members, Alaska Natives, or Native Hawaiians and that are located in Alaska or Hawaii, or on Indian lands in the 48 contiguous States.

`(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 Associate Administrator an application that is in such form as the Associate Administrator 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 the governing bodies of Indian tribes, corporations organized pursuant to the Alaska Native Claims Settlement Act and other Alaska Native entities, and Native Hawaiian organizations, as appropriate.

`(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 of paragraph (4)(A) shall not apply.

`(E) MAXIMUM AMOUNT OF GRANTS- No applicant may receive more than $300,000 in grants under this paragraph in a 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 Administrator 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 Associate Administrator may require a Small Business Development Center receiving assistance under this paragraph to develop.

`(G) DEFINITIONS- In this paragraph, the following definitions apply:

`(i) ASSOCIATE ADMINISTRATOR- The term `Associate Administrator' means the Associate Administrator for Small Business Development Centers.

`(ii) INDIAN LANDS- The term `Indian lands' means, in the 48 contiguous States, land that is a `reservation' for the purposes of section 4 of the Indian Child Welfare Act of 1978 (25 U.S.C. 1903) and land that is an `Indian reservation' for the purposes of section 151.2 of title 25, Code of Federal Regulations (as in effect on the date of enactment of this paragraph).

`(iii) INDIAN TRIBE- The term `Indian tribe' means a federally recognized Indian tribe.

`(iv) INDIAN TRIBE MEMBER- The term `Indian tribe member' means an individual who is a member of an Indian tribe.

`(v) ALASKA NATIVE- The term `Alaska Native' means an individual who is--

`(I) a `Native' for the purposes of section 3(b) of the Alaska Native Claims Settlement Act (43 U.S.C. 1602(b));

`(II) a descendent of an individual who is a `Native' for the purposes of section 3(b) of the Alaska Native Claims Settlement Act (43 U.S.C. 1602(b)); or

`(III) a Tsimshian Indian who is an enrolled member of the Metlakatla Indian Community.

`(vi) NATIVE HAWAIIAN- The term `Native Hawaiian' means any individual who is a descendant of the aboriginal people, who prior to 1778, occupied and exercised sovereignty in the area that now constitutes the State of Hawaii.

`(H) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated to carry out this paragraph $7,000,000 for each of fiscal years 2002 through 2004.

`(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. 4. STATE CONSULTATION WITH LOCAL TRIBAL COUNCILS.

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 GOVERNING BODIES OF INDIAN TRIBES, ALASKA NATIVE CORPORATIONS AND OTHER ENTITIES, AND NATIVE HAWAIIAN ORGANIZATIONS- A State receiving grants under this section shall request the advice of the governing bodies of Indian tribes, corporations organized pursuant to the Alaska Native Claims Settlement Act and other Alaska Native entities, and Native Hawaiian organizations, as appropriate, 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.'.

Passed the House of Representatives December 5, 2001.

Attest:

JEFF TRANDAHL,