[House Report 111-121]
[From the U.S. Government Publishing Office]


111th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    111-121

======================================================================



 
PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 2352) TO AMEND THE SMALL 
                  BUSINESS ACT, AND FOR OTHER PURPOSES

                                _______
                                

May 19, 2009.--Referred to the House Calendar and ordered to be printed

                                _______
                                

                Mr.  Polis, from the Committee on Rules,
                        submitted the following

                              R E P O R T

                       [To accompany H. Res. 457]

    The Committee on Rules, having had under consideration 
House Resolution 457, by a non-record vote, report the same to 
the House with the recommendation that the resolution be 
adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for consideration of H.R. 2352, the 
Job Creation Through Entrepreneurship Act of 2009, under a 
structured rule. The resolution provides one hour of general 
debate equally divided and controlled by the chair and ranking 
minority member of the Committee on Small Business. The rule 
waives all points of order against consideration of the bill 
except clauses 9 and 10 of rule XXI. The resolution provides 
that the amendment in the nature of a substitute recommended by 
the Committee on Small Business now printed in the bill shall 
be considered as an original bill for the purpose of amendment 
and shall be considered as read. The resolution waives all 
points of order against the amendment in the nature of a 
substitute except for clause 10 of rule XXI. This waiver does 
not affect the point of order available under clause 9 of rule 
XXI (regarding earmark disclosure).
    The resolution makes in order only those amendments printed 
in this report. The amendments made in order may be offered 
only in the order printed in this report, may be offered only 
by a Member designated in this report, shall be considered as 
read, shall be debatable for the time specified in this report 
equally divided and controlled by the proponent and an 
opponent, shall not be subject to amendment, and shall not be 
subject to a demand for a division of the question in the House 
or in the Committee of the Whole. All points of order against 
the amendments except for clauses 9 and 10 of rule XXI are 
waived. The resolution provides one motion to recommit with or 
without instructions.

                         EXPLANATION OF WAIVERS

    The waiver of all points of order against consideration of 
the bill (except for clauses 9 and 10 of rule XXI) includes a 
waiver of clause 3(d)(2) of rule XIII requiring the inclusion 
of a cost estimate. Although the rule waives all points of 
order against the amendment in the nature of a substitute 
(except clause 10 of rule XXI), the Committee is not aware of 
any points of order. The waiver of all points of order is 
prophylactic.

                            COMMITTEE VOTES

    The results of each record vote on an amendment or motion 
to report, together with the names of those voting for and 
against, are printed below:

Rules Committee record vote No. 97

    Date: May 19, 2009.
    Measure: H.R. 2352.
    Motion by: Mr. Diaz-Balart.
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. Terry (NE), #14, which would 
amend the Small Business Act's loan program to allow ``floor-
plan'' financing for motor vehicle dealers. It further defines 
``motor vehicle'' broadly and increases the maximum loan 
guarantee from $2 million to $20 million.
    Results: Defeated 4-6.
    Vote by Members: McGovern--Nay; Cardoza--Nay; Perlmutter--
Nay; Pingree--Nay; Polis--Nay; Dreier--Yea; Diaz-Balart--Yea; 
Sessions--Yea; Foxx--Yea; Slaughter--Nay.

Rules Committee record vote No. 98

    Date: May 19, 2009.
    Measure: H.R. 2352.
    Motion by: Mr. Sessions.
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. Roskam (IL), #7, which would 
add a new section to permanently repeal the estate tax.
    Results: Defeated 4-6.
    Vote by Members: McGovern--Nay; Cardoza--Nay; Perlmutter--
Nay; Pingree--Nay; Polis--Nay; Dreier--Yea; Diaz-Balart--Yea; 
Sessions--Yea; Foxx--Yea; Slaughter--Nay.

               SUMMARY OF AMENDMENTS TO BE MADE IN ORDER

    1. Velazquez (NY): Manager's Amendment making conforming 
grammatical and technical corrections to the legislation. Would 
allow the director of the Veterans Business Center program to 
authorize grants to veterans business centers for the purpose 
of providing one on one counseling or group counseling to 
members of the Reserve component who are small business owners 
on effective planning strategies to prepare their business for 
when they deploy as part of a contingency operation. Would 
require the Director of the Veterans Business Center program to 
certify annually to the Director of the Small Business 
Administration that a sufficient percentage of veterans in 
rural areas have adequate access to a Veterans Business Center. 
If not, the Director of the Veterans Business Center program 
shall for one year give priority to grant applications that 
establish Veteran Business Centers in rural areas. Would expand 
the Green Technology Training to be available to all interested 
small businesses that qualify, including existing businesses 
seeking to adapt their business to include such fields. Would 
provide women's and veterans business centers that institute 
green entrepreneurial programs with access to maximum grant 
awards under their respective programs. Would add ``strategies 
for increasing job placement or women in nontraditional 
occupations'' to the required content of the annual plans to be 
submitted by women's business centers under the Women's 
Business Center Program. Would require small business 
development centers to provide services that assist low-income 
or dislocated workers to start businesses in the fields of 
energy efficiency, green technology, or clean technology, under 
the Green Entrepreneurs Training Program. Would waive matching 
grant requirements contained in the bill for Veterans Business 
Centers serving communities with a per capita income less than 
75% of the national per-capita income, and an unemployment rate 
at least 150% higher than the national average. (20 minutes)
    2. Polis (CO): Would include cost saving energy usage 
reductions as an eligible project under section 403(b) 
management assistance. (10 minutes)
    3. Paulsen (MN): Would require a study by the Comptroller 
General to look at the effects of the legislation's efforts for 
veteran owned businesses. The Comptroller must also include 
recommendations as to how the Federal government can more 
effectively serve veteran owned businesses. (10 minutes)
    4. Boccieri (OH): Would allow veterans centers to receive 
grants to develop specialized programs to assist unemployed 
veterans in becoming entrepreneurs and adds training for 
veterans centers to improve outreach to veterans in areas of 
high unemployment at the Veterans Development Summit. (10 
minutes)
    5. Himes (CT): Would require the Small Business 
Administrator to establish and carry out a ``Microenterprise 
Training Center Program'' for the purpose of providing low-
income and unemployed individuals with training and counseling 
with respect to starting a microenterprise. (10 minutes)
    6. Kratovil (MD): Would establish a Rural Entrepreneurship 
Advisory Council within the Small Business Administration, 
comprised of appropriate officials from the SBA, the rural 
development programs of the Department of Agriculture, and the 
Department of Commerce and of representatives from the 
academic, small business, agriculture, and high-tech 
communities. The council is tasked with providing a report to 
Congress on rural entrepreneurship, and to provide ongoing 
advice and recommendations to foster rural entrepreneurs. (10 
minutes)
    7. Murphy (NY): Would increase the grant sizes for 
``initial grants'' and ``growth funding grants'' for each 
veterans business center by $50,000 per year per center to 
$200,000 and $150,000 respectively. In addition, the amendment 
would increase the authorized appropriations to carry out this 
subsection by $2,000,000 each per year to $12,000,000 in fiscal 
year 2010 and $14,000,000 in fiscal year 2011. (10 minutes)
    8. Nye (VA): Would add a new title (Military Entrepreneurs 
Program) to require the Small Business Administration to 
establish and carry out a program to provide business 
counseling and entrepreneurial development assistance to 
members of the Armed Forces to facilitate the development of 
small business concerns. The amendment establishes a liaison to 
facilitate outreach to members of the Armed Forces with respect 
to business counseling and entrepreneurial development 
assistance. (10 minutes)
    9. Schauer (MI): Would create a new section and authorize 
funding for small business development centers to assist small 
manufacturers that are transitioning into growth sectors. (10 
minutes)

                 TEXT OF AMENDMENTS TO BE MADE IN ORDER

1. An Amendment To Be Offered by Representative Velazquez of New York, 
               or Her Designee, Debatable for 20 Minutes

  Page 9, beginning line 19, strike ``with respect to the 
benefits of self-employment'' and insert ``to promote self-
employment opportunities''.
  Page 9, line 21, strike ``tailored''.
  Page 12, line 20, strike ``high-quality''.
  Page 14, line 9, insert after ``Veterans Business Centers,'' 
the following: ``SCORE chapters,''.
  Page 16, line 21, strike ``capital'' and insert 
``financing''.
  Page 16, line 24, strike ``aggressively''.
  Page 33, line 9, strike ``the performance''.
  Page 33, line 13, strike ``relating'' and insert ``related''.
  Page 36, beginning line 13, strike ``as a catalyst for job 
creation for'' and insert ``to create jobs during''.
  Page 36, line 14, strike ``2009 and 2010'' and insert ``2010 
and 2011''.
  Page 7, after line 22 insert the following:
                          ``(v) Providing one-on-one or group 
                        counseling to owners of small business 
                        concerns who are members of the reserve 
                        components of the armed forces, as 
                        specified in section 10101 of title 10, 
                        United States Code, to assist such 
                        owners to effectively prepare their 
                        small businesses for periods when such 
                        owners are deployed in support of a 
                        contingency operation.''.
  Page 6, line 22, strike ``(10)'' and insert ``(11)''.
  Page 6, after line 21 insert the following:
          ``(10) Rural areas.--The Director shall submit 
        annually to the Administrator a report on whether a 
        sufficient percentage, as determined by the Director, 
        of veterans in rural areas have adequate access to a 
        veterans business center. If the Director submits a 
        report under this paragraph that does not demonstrate 
        that a sufficient percentage of veterans in rural areas 
        have adequate access to a veterans business center, the 
        Director shall give priority during the one year period 
        following the date of the submission of such report to 
        applications for designations and grants under this 
        subsection that will establish veterans business 
        centers in rural areas.''.
  Page 31, line 12, insert after ``community'' the following: 
``, strategies for increasing job placement of women in 
nontraditional occupations''.
  Page 47, line 8, strike ``and''.
  Page 47, line 12, strike the period and insert ``; and''.
  Page 47, after line 12, insert the following new 
subparagraph:
                  ``(D) provide services that assist low-income 
                or dislocated workers to start businesses in 
                the fields of energy efficiency, green 
                technology, or clean technology.''.
  Page 47, line 4, insert after ``clean technology'' the 
following: ``and in adapting a business to include such 
fields''.
  Page 47, line 12, insert after ``clean technology'' the 
following: ``and to individuals seeking to adapt a business to 
include such fields''.
  Page 27, line 18, insert after ``per year.'' the following: 
``Projects receiving assistance under this subparagraph that 
possess the capacity to train existing or potential business 
owners in the fields of green technology, clean technology, or 
energy efficiency shall receive the maximum award under this 
subparagraph.''.
  Page 29, after line 5 insert the following:
                  ``(E) the capacity of the project to train 
                existing or potential business owners in the 
                fields of green technology, clean technology, 
                or energy efficiency;''.
  Page 29, line 6, strike ``(E)'' and insert ``(F)''.
  Page 29, line 7, strike ``(F)'' and insert ``(G)''.
  Page 32, after line 12 insert the following:

SEC. 406. APPLICANT EVALUATION CRITERIA.

  Section 29(f) of the Small Business Act (15 U.S.C. 656(f)) is 
amended--
          (1) in paragraph (3) by striking ``and'' at the end;
          (2) in paragraph (4) by striking the period and 
        inserting ``; and''; and
          (3) by adding at the end the following:
          ``(5) whether the applicant has the capacity to train 
        existing or potential business owners in the fields of 
        green technology, clean technology, or energy 
        efficiency.''.
  Page 5, line 13, after ``hardship.'' insert the following: 
``The Director may waive the matching funds requirement under 
this paragraph with respect to veterans business centers that 
serve communities with a per capita income less than 75 percent 
of the national per capita income and an unemployment rate at 
least 150 percent higher than the national average.''.
                              ----------                              


 2. An Amendment To Be Offered by Representative Polis of Colorado, or 
                 His Designee, Debatable for 10 Minutes

  Page 27, line 1, insert after ``concern'' the following: ``, 
including implementing cost saving energy techniques''.
                              ----------                              


 3. An Amendment To Be Offered by Representative Paulsen of Minnesota, 
               or His Designee, Debatable for 10 Minutes

  At the end of title I, insert the following new section:

SEC. 103. COMPTROLLER GENERAL STUDY OF SMALL BUSINESS CONCERNS OWNED 
                    AND CONTROLLED BY VETERANS.

  The Comptroller General shall carry out a study on the 
effects of this Act and the amendments made by this Act on 
small business concerns owned and controlled by veterans and 
submit to Congress a report on the results of such study. Such 
report shall include the recommendations of the Comptroller 
General with respect to how this Act and the amendments made by 
this Act may be implemented to more effectively serve small 
business concerns owned and controlled by veterans.
                              ----------                              


 4. An Amendment To Be Offered by Representative Boccieri of Ohio, or 
                 His Designee, Debatable for 10 Minutes

  Page 7, insert after line 22 the following:
                          ``(v) Developing specialized programs 
                        to assist unemployed veterans to become 
                        entrepreneurs.''.
  Page 10, line 21, insert after ``Director.'' the following: 
``Such event shall include education and training with respect 
to improving outreach to veterans in areas of high 
unemployment.''.
                              ----------                              


 5. An Amendment To Be Offered by Representative Himes of Connecticut, 
               or His Designee, Debatable for 10 Minutes

  Page 12, line 15, strike ``section 46'' and insert ``section 
47''.
  Page 50, after line 16, add the following new title:

          TITLE VIII--MICROENTERPRISE TRAINING CENTER PROGRAM

SEC. 801. MICROENTERPRISE TRAINING CENTER PROGRAM.

  The Small Business Act (15 U.S.C. 631 et seq.) is amended by 
inserting after section 45, as added by section 301(b) of this 
Act, the following:

``SEC. 46. MICROENTERPRISE TRAINING CENTER PROGRAM.

  ``(a) Establishment.--The Administrator shall establish and 
carry out a microenterprise training center program for the 
purpose of providing low-income and unemployed individuals with 
training and counseling with respect to starting a 
microenterprise.
  ``(b) Number and Location of Centers.--In carrying out the 
program under subsection (a), the Administrator shall establish 
10 microenterprise training centers, which, to the extent 
practicable, shall be located in a manner that promotes the 
geographic diversity of such centers. The Administrator shall 
give priority in locating such centers to areas with high 
proportions of low-income and unemployed individuals.
  ``(c) Function.--In carrying out the program under subsection 
(a), the Administrator shall ensure that microenterprise 
training centers provide training and resources to individuals 
seeking to start a new microenterprise, including through the 
provision of classes, one-on-one instruction, and other 
services the Administrator determines appropriate.
  ``(d) Coordination.--The Administrator shall coordinate the 
program established under subsection (a) with other programs of 
the Administration that may provide support to 
microenterprises.
  ``(e) Definition of Microenterprise.--In this section, the 
term `microenterprise' means a business with not more than 6 
employees and begun with an initial investment of not more than 
$40,000.''.
                              ----------                              


 6. An Amendment To Be Offered by Representative Kratovil of Maryland, 
               or His Designee, Debatable for 10 Minutes

  Page 12, line 15, strike ``section 46'' and insert ``section 
47''.
  Page 50, after line 16, add the following new title:

          TITLE VIII--RURAL ENTREPRENEURSHIP ADVISORY COUNCIL

SEC. 801. RURAL ENTREPRENEURSHIP ADVISORY COUNCIL.

  The Small Business Act (15 U.S.C. 631 et. seq.) is amended by 
inserting after section 45, as added by section 301(b) of this 
Act, the following:

``SEC. 46. RURAL ENTREPRENEURSHIP ADVISORY COUNCIL.

  ``(a) Establishment.--The Administrator shall establish a 
rural entrepreneurship advisory council (hereinafter referred 
to in this section as the `council').
  ``(b) Composition.--The Administrator shall ensure that the 
council is composed of appropriate officials from the 
Administration, the rural development programs of the 
Department of Agriculture, and the Department of Commerce and 
of representatives, who volunteer for the council, from the 
academic, small business, agriculture, and high-tech 
communities.
  ``(c) Functions.--
          ``(1) Initial report.--Not later than 90 days after 
        the date of the enactment of this section, the council 
        shall submit to the Administrator and to Congress a 
        report on the following:
                  ``(A) Entrepreneurship in rural communities 
                compared to urban communities.
                  ``(B) Potential barriers to entrepreneurship 
                for individuals in rural communities.
                  ``(C) Effective Federal policies that are 
                expanding entrepreneurship in rural 
                communities.
                  ``(D) Recommendations for Federal policies to 
                foster entrepreneurship in rural communities 
                and to ensure that rural entrepreneurs have 
                equal access to technical assistance, 
                entrepreneurial opportunities, and educational 
                outreach.
          ``(2) Advice.--The council shall provide ongoing 
        advice to the Administrator with respect to rural 
        entrepreneurship and make recommendations to foster 
        rural entrepreneurs, including through the effective 
        use of broadband technology.''.
                              ----------                              


7. An Amendment To Be Offered by Representative Murphy of New York, or 
                 His Designee, Debatable for 10 Minutes

  Page 4, line 11, strike ``$150,000'' and insert the 
following: ``$200,000''.
  Page 4, line 18, strike ``$100,000'' and insert the 
following: ``$150,000''.
  Page 6, line 24, strike ``$10,000,000'' and insert the 
following: ``$12,000,000''.
  Page 6, line 25, strike ``$12,000,000'' and insert the 
following: ``$14,000,000''.
                              ----------                              


8. An Amendment To Be Offered by Representative Nye of Virginia, or His 
                   Designee, Debatable for 10 Minutes

  Page 12, line 15, strike ``section 46'' and insert ``section 
47''.
  Page 50, after line 16, add the following new title:

               TITLE VIII--MILITARY ENTREPRENEURS PROGRAM

SEC. 801. MILITARY ENTREPRENEURS PROGRAM.

  The Small Business Act (15 U.S.C. 631 et seq.) is amended by 
inserting after section 45, as added by section 301(b) of this 
Act, the following:

``SEC. 46. MILITARY ENTREPRENEURS PROGRAM.

  ``(a) Establishment.--The Administrator shall establish and 
carry out a program to provide business counseling and 
entrepreneurial development assistance to members of the Armed 
Forces to facilitate the development of small business 
concerns.
  ``(b) Liaison.--In carrying out the program described in 
subsection (a), the Administrator shall establish a liaison to 
facilitate outreach to members of the Armed Forces with respect 
to business counseling and entrepreneurial development 
assistance.
  ``(c) Authorization of Appropriations.--There is authorized 
to be appropriated to the Administrator to carry out this 
section $1,000,000 for fiscal years 2010 and 2011.''.
                              ----------                              


9. An Amendment To Be Offered by Representative Schauer of Michigan, or 
                 His Designee, Debatable for 10 Minutes

  Page 50, after line 16, add the following new section:

SEC. 708. SMALL MANUFACTURERS TRANSITION ASSISTANCE PROGRAM.

  Section 21 of the Small Business Act (15 U.S.C. 648), as 
amended, is further amended by adding at the end the following 
new subsection:
  ``(s) Small Manufacturers Transition Assistance Program.--
          ``(1) In general.--The Administration shall establish 
        a grant program for small business development centers 
        in accordance with this subsection. To be eligible for 
        the program, a small business development center must 
        be in good standing and comply with the other 
        requirements of this section. Funds made available 
        through the program shall be used to--
                  ``(A) provide technical assistance and 
                expertise to small manufacturers with respect 
                to changing operations to another industry 
                sector or reorganizing operations to increase 
                efficiency and profitability;
                  ``(B) assist marketing of the capabilities of 
                small manufacturers outside the principal area 
                of operations of such manufacturers;
                  ``(C) facilitate peer-to-peer and mentor-
                protege relationships between small 
                manufacturers and corporations and Federal 
                agencies; and
                  ``(D) conduct outreach activities to local 
                small manufacturers with respect to the 
                availability of the services described in 
                subparagraphs (A), (B), and (C).
          ``(2) Definition of small manufacturer.--In this 
        subsection, the term `small manufacturer' means a small 
        business concern engaged in an industry specified in 
        sectors 31, 32, or 33 of the North American Industry 
        Classification System in section 121.201 of title 13, 
        Code of Federal Regulations.
          ``(3) Award size limit.--The Administration may not 
        award an entity more than $250,000 in grant funds under 
        this subsection.
          ``(4) Authority.--Subject to amounts approved in 
        advance in appropriations Acts and separate from 
        amounts approved to carry out the program established 
        in subsection (a)(1), the Administration may make 
        grants or enter into cooperative agreements to carry 
        out this subsection.
          ``(5) Authorization.--There is authorized to be 
        appropriated not more than $2,500,000 for the purposes 
        of carrying out this subsection for each of the fiscal 
        years 2010 and 2011.''.