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§ 648. —  Small business development center program authorization.



[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
  January 24, 2002 and December 19, 2002]
[CITE: 15USC648]

 
                      TITLE 15--COMMERCE AND TRADE
 
                   CHAPTER 14A--AID TO SMALL BUSINESS
 
Sec. 648. Small business development center program 
        authorization
        

(a) Grants, contracts and cooperative agreements for establishment of 
        small business development centers and for small business 
        activities and purposes; role of Administration; non-Federal 
        additional amount; amount of grant; eligibility

    (1) The Administration is authorized to make grants (including 
contracts and cooperative agreements) to any State government or any 
agency thereof, any regional entity, any State-chartered development, 
credit or finance corporation, any women's business center operating 
pursuant to section 656 of this title, any public or private institution 
of higher education, including but not limited to any land-grant college 
or university, any college or school of business, engineering, commerce, 
or agriculture, community college or junior college, or to any entity 
formed by two or more of the above entities (herein referred to as 
``applicants'') to assist in establishing small business development 
centers and to any such body for: small business oriented employment or 
natural resources development programs; studies, research, and 
counseling concerning the managing, financing, and operation of small 
business enterprises; management and technical assistance regarding 
small business participation in international markets, export promotion 
and technology transfer; delivery or distribution of such services and 
information; and providing access to business analysts who can refer 
small business concerns to available experts: Provided, That after 
December 31, 1990, the Administration shall not make a grant to any 
applicant other than an institution of higher education or a women's 
business center operating pursuant to section 656 of this title as a 
Small Business Development Center unless the applicant was receiving a 
grant (including a contract or cooperative agreement) on such date. The 
Administration shall require any applicant for a small business 
development center grant with performance commencing on or after January 
1, 1992 to have its own budget and to primarily utilize institutions of 
higher education and women's business centers operating pursuant to 
section 656 of this title to provide services to the small business 
community. The term of such grants shall be made on a calendar year 
basis or to coincide with the Federal fiscal year.
    (2) The Small Business Development Centers shall work in close 
cooperation with the Administration's regional and local offices, the 
Department of Commerce, appropriate Federal, State and local agencies 
and the small business community to serve as an active information 
dissemination and service delivery mechanism for existing trade 
promotion, trade finance, trade adjustment, trade remedy and trade data 
collection programs of particular utility for small businesses.
    (3) The Small Business Development Center Program shall be under the 
general management and oversight of the Administration for the delivery 
of programs and services to the small business community. Such programs 
and services shall be jointly developed, negotiated, and agreed upon, 
with full participation of both parties, pursuant to an executed 
cooperative agreement between the Small Business Development Center 
applicant and the Administration.
    (A) Small business development centers are authorized to form an 
association to pursue matters of common concern. If more than a majority 
of the small business development centers which are operating pursuant 
to agreements with the Administration are members of such an 
association, the Administration is authorized and directed to recognize 
the existence and activities of such an association and to consult with 
it and develop documents (i) announcing the annual scope of activities 
pursuant to this section, (ii) requesting proposals to deliver 
assistance as provided in this section and (iii) governing the general 
operations and administration of the Small Business Development Center 
Program, specifically including the development of regulations and a 
uniform negotiated cooperative agreement for use on an annual basis when 
entering into individual negotiated agreements with small business 
development centers.
    (B) Provisions governing audits, cost principles and administrative 
requirements for Federal grants, contracts and cooperative agreements 
which are included in uniform requirements of Office of Management and 
Budget (OMB) Circulars shall be incorporated by reference and shall not 
be set forth in summary or other form in regulations.
    (C) On an annual basis, the Small Business Development Center shall 
review and coordinate public and private partnerships and cosponsorships 
with the Administration for the purpose of more efficiently leveraging 
available resources on a National \1\ and a State basis.
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    \1\ So in original. Probably should not be capitalized.
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    (4) Small business development center program level.--
        (A) In general.--The Administration shall require as a condition 
    of any grant (or amendment or modification thereof) made to an 
    applicant under this section, that a matching amount (excluding any 
    fees collected from recipients of such assistance) equal to the 
    amount of such grant be provided from sources other than the Federal 
    Government, to be comprised of not less than 50 percent cash and not 
    more than 50 percent of indirect costs and in-kind contributions.
        (B) Restriction.--The matching amount described in subparagraph 
    (A) shall not include any indirect costs or in-kind contributions 
    derived from any Federal program.
        (C) Funding formula.--
            (i) In general.--Subject to clause (iii), the amount of a 
        formula grant received by a State under this subparagraph shall 
        be equal to an amount determined in accordance with the 
        following formula:
                (I) The annual amount made available under section 20(a) 
            \2\ for the Small Business Development Center Program, less 
            any reductions made for expenses authorized by clause (v) of 
            this subparagraph, shall be divided on a pro rata basis, 
            based on the percentage of the population of each State, as 
            compared to the population of the United States.
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    \2\ See References in Text note below.
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                (II) If the pro rata amount calculated under subclause 
            (I) for any State is less than the minimum funding level 
            under clause (iii), the Administration shall determine the 
            aggregate amount necessary to achieve that minimum funding 
            level for each such State.
                (III) The aggregate amount calculated under subclause 
            (II) shall be deducted from the amount calculated under 
            subclause (I) for States eligible to receive more than the 
            minimum funding level. The deductions shall be made on a pro 
            rata basis, based on the population of each such State, as 
            compared to the total population of all such States.
                (IV) The aggregate amount deducted under subclause (III) 
            shall be added to the grants of those States that are not 
            eligible to receive more than the minimum funding level in 
            order to achieve the minimum funding level for each such 
            State, except that the eligible amount of a grant to any 
            State shall not be reduced to an amount below the minimum 
            funding level.

            (ii) Grant determination.--The amount of a grant that a 
        State is eligible to apply for under this subparagraph shall be 
        the amount determined under clause (i), subject to any 
        modifications required under clause (iii), and shall be based on 
        the amount available for the fiscal year in which performance of 
        the grant commences, but not including amounts distributed in 
        accordance with clause (iv). The amount of a grant received by a 
        State under any provision of this subparagraph shall not exceed 
        the amount of matching funds from sources other than the Federal 
        Government, as required under subparagraph (A).
            (iii) Minimum funding level.--The amount of the minimum 
        funding level for each State shall be determined for each fiscal 
        year based on the amount made available for that fiscal year to 
        carry out this section, as follows:
                (I) If the amount made available is not less than 
            $81,500,000 and not more than $90,000,000, the minimum 
            funding level shall be $500,000.
                (II) If the amount made available is less than 
            $81,500,000, the minimum funding level shall be the 
            remainder of $500,000 minus a percentage of $500,000 equal 
            to the percentage amount by which the amount made available 
            is less than $81,500,000.
                (III) If the amount made available is more than 
            $90,000,000, the minimum funding level shall be the sum of 
            $500,000 plus a percentage of $500,000 equal to the 
            percentage amount by which the amount made available exceeds 
            $90,000,000.

            (iv) Distributions.--Subject to clause (iii), if any State 
        does not apply for, or use, its full funding eligibility for a 
        fiscal year, the Administration shall distribute the remaining 
        funds as follows:
                (I) If the grant to any State is less than the amount 
            received by that State in fiscal year 2000, the 
            Administration shall distribute such remaining funds, on a 
            pro rata basis, based on the percentage of shortage of each 
            such State, as compared to the total amount of such 
            remaining funds available, to the extent necessary in order 
            to increase the amount of the grant to the amount received 
            by that State in fiscal year 2000, or until such funds are 
            exhausted, whichever first occurs.
                (II) If any funds remain after the application of 
            subclause (I), the remaining amount may be distributed as 
            supplemental grants to any State, as the Administration 
            determines, in its discretion, to be appropriate, after 
            consultation with the association referred to in subsection 
            (a)(3)(A) of this section.

            (v) Use of amounts.--
                (I) In general.--Of the amounts made available in any 
            fiscal year to carry out this section--
                    (aa) not more than $500,000 may be used by the 
                Administration to pay expenses enumerated in 
                subparagraphs (B) through (D) of section 20(a)(1); \2\ 
                and
                    (bb) not more than $500,000 may be used by the 
                Administration to pay the examination expenses 
                enumerated in section 20(a)(1)(E).\2\

                (II) Limitation.--No funds described in subclause (I) 
            may be used for examination expenses under section 
            20(a)(1)(E) \2\ if the usage would reduce the amount of 
            grants made available under clause (i)(I) of this 
            subparagraph to less than $85,000,000 (after excluding any 
            amounts provided in appropriations Acts, or accompanying 
            report language, for specific institutions or for purposes 
            other than the general small business development center 
            program) or would further reduce the amount of such grants 
            below such amount.

            (vi) Exclusions.--Grants provided to a State by the 
        Administration or another Federal agency to carry out subsection 
        (a)(6) or (c)(3)(G) of this section, or for supplemental grants 
        set forth in clause (iv)(II) of this subparagraph, shall not be 
        included in the calculation of maximum funding for a State under 
        clause (ii) of this subparagraph.
            (vii) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subparagraph $125,000,000 
        for each of fiscal years 2001, 2002, and 2003.
            (viii) State defined.--In this subparagraph, the term 
        ``State'' means each of the several States, the District of 
        Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, 
        Guam, and American Samoa.

    (5) Federal contracts with small business development centers.--
        (A) In general.--Subject to the conditions set forth in 
    subparagraph (B), a small business development center may enter into 
    a contract with a Federal department or agency to provide specific 
    assistance to small business concerns.
        (B) Contract prerequisites.--Before bidding on a contract 
    described in subparagraph (A), a small business development center 
    shall receive approval from the Associate Administrator of the small 
    business development center program of the subject and general scope 
    of the contract. Each approval under subparagraph (A) shall be based 
    upon a determination that the contract will provide assistance to 
    small business concerns and that performance of the contract will 
    not hinder the small business development center in carrying out the 
    terms of the grant received by the small business development center 
    from the Administration.
        (C) Exemption from matching requirement.--A contract under this 
    paragraph shall not be subject to the matching funds or eligibility 
    requirements of paragraph (4).
        (D) Additional provision.--Notwithstanding any other provision 
    of law, a contract for assistance under this paragraph shall not be 
    applied to any Federal department or agency's small business, woman-
    owned business, or socially and economically disadvantaged business 
    contracting goal under section 644(g) of this title.

    (6) Any applicant which is funded by the Administration as a Small 
Business Development Center may apply for an additional grant to be used 
solely to assist--
        (A) with the development and enhancement of exports by small 
    business concerns;
        (B) in technology transfer; and
        (C) with outreach, development, and enhancement of minority-
    owned small business startups or expansions, HUBZone small business 
    concerns, veteran-owned small business startups or expansions, and 
    women-owned small business startups or expansions, in communities 
    impacted by base closings or military or corporate downsizing, or in 
    rural or underserved communities;

as provided under subparagraphs (B) through (G) of subsection (c)(3) of 
this section. Applicants for such additional grants shall comply with 
all of the provisions of this section, including providing matching 
funds, except that funding under this paragraph shall be effective for 
any fiscal year to the extent provided in advance in appropriations Acts 
and shall be in addition to the dollar program limitations specified in 
paragraphs (4) and (5). No recipient of funds under this paragraph shall 
receive a grant which would exceed its pro rata share of a $15,000,000 
program based upon the populations to be served by the Small Business 
Development Center as compared to the total population of the United 
States. The minimum amount of eligibility for any State shall be 
$100,000.

(b) Area plan inconsistent with applicant's plan: assistance unavailable 
        1981 through 1983; plan of applicant: submittal to 
        Administration, action on plan, review by Administration, 
        assistance to out-of-State businesses

    (1) Financial assistance shall not be made available to any 
applicant if approving such assistance would be inconsistent with a plan 
for the area involved which has been adopted by an agency recognized by 
the State government as authorized to do so and approved by the 
Administration in accordance with the standards and requirements 
established pursuant to this section.
    (2) An applicant may apply to participate in the program by 
submitting to the Administration for approval a plan naming those 
authorized in subsection (a) of this section to participate in the 
program, the geographic area to be served, the services that it would 
provide, the method for delivering services, a budget, and any other 
information and assurances the Administration may require to insure that 
the applicant will carry out the activities eligible for assistance. The 
Administration is authorized to approve, conditionally approve or reject 
a plan or combination of plans submitted. In all cases, the 
Administration shall review plans for conformity with the plan submitted 
pursuant to paragraph (1) of this subsection, and with a view toward 
providing small business with the most comprehensive and coordinated 
assistance in the State or part thereof to be served.
    (3) At the discretion of the Administration, the Administration is 
authorized to permit a small business development center to provide 
advice, information and assistance, as described in subsection (c) of 
this section, to small businesses located outside the State, but only to 
the extent such businesses are located within close geographical 
proximity to the small business development center, as determined by the 
Administration.

(c) Problem-solving assistance; development center extension services; 
        staff and access requirements; assistance services; changing 
        services for evolving needs; qualified small business vendors; 
        non-profit entities; cooperation with regional and local 
        offices, etc.; information sharing system

    (1) Applicants receiving grants under this section shall assist 
small businesses in solving problems concerning operations, 
manufacturing, engineering, technology exchange and development, 
personnel administration, marketing, sales, merchandising, finance, 
accounting, business strategy development, and other disciplines 
increased productivity, and management improvement, and for decreasing 
industry economic concentrations.
    (2) A small business development center shall provide services as 
close as possible to small businesses by providing extension services 
and utilizing satellite locations when necessary. The facilities and 
staff of each Small Business Development Center shall be located in such 
places as to provide maximum accessibility and benefits to the small 
businesses which the center is intended to serve. To the extent 
possible, it also shall make full use of other Federal and State 
government programs that are concerned with aiding small business. A 
small business development center shall have--
        (A) a full-time staff, including a full-time director who shall 
    have the authority to make expenditures under the center's budget 
    and who shall manage the program activities;
        (B) access to business analysts to counsel, assist, and inform 
    small business clients;
        (C) access to technology transfer agents to provide state of art 
    technology to small businesses through coupling with national and 
    regional technology data sources;
        (D) access to information specialist to assist in providing 
    information searches and referrals to small business;
        (E) access to part-time professional specialist to conduct 
    research or to provide counseling assistance whenever the need 
    arises; and
        (F) access to laboratory and adaptive engineering facilities.

    (3) Services provided by a small business development center shall 
include, but shall not be limited to--
        (A) furnishing one-to-one individual counseling to small 
    businesses, including--
            (i) working with individuals to increase awareness of basic 
        credit practices and credit requirements;
            (ii) working with individuals to develop business plans, 
        financial packages, credit applications, and contract proposals;
            (iii) working with the Administration to develop and provide 
        informational tools for use in working with individuals on pre-
        business startup planning, existing business expansion, and 
        export planning; and
            (iv) working with individuals referred by the local offices 
        of the Administration and Administration participating lenders;

        (B) assisting in technology transfer, research and development, 
    including applied research, and coupling from existing sources to 
    small businesses, including--
            (i) working to increase the access of small businesses to 
        the capabilities of automated flexible manufacturing systems;
            (ii) working through existing networks and developing new 
        networks for technology transfer that encourage partnership 
        between the small business and academic communities to help 
        commercialize university-based research and development and 
        introduce university-based engineers and scientists to their 
        counterparts in small technology-based firms; and
            (iii) exploring the viability of developing shared 
        production facilities, under appropriate circumstances;

        (C) in cooperation with the Department of Commerce and other 
    relevant Federal agencies, actively assisting small businesses in 
    exporting by identifying and developing potential export markets, 
    facilitating export transactions, developing linkages between United 
    States small business firms and prescreened foreign buyers, 
    assisting small businesses to participate in international trade 
    shows, assisting small businesses in obtaining export financing, and 
    facilitating the development or reorientation of marketing and 
    production strategies; where appropriate, the Small Business 
    Development Center and the Administration may work in cooperation 
    with the State to establish a State international trade center for 
    these purposes;
        (D) developing a program in conjunction with the Export-Import 
    Bank and local and regional Administration offices that will enable 
    Small Business Development Centers to serve as an information 
    network and to assist small business applicants for Export-Import 
    Bank financing programs, and otherwise identify and help to make 
    available export financing programs to small businesses;
        (E) working closely with the small business community, small 
    business consultants, State agencies, universities and other 
    appropriate groups to make translation services more readily 
    available to small business firms doing business, or attempting to 
    develop business, in foreign markets;
        (F) in providing assistance under this subsection, applicants 
    shall cooperate with the Department of Commerce and other relevant 
    Federal agencies to increase access to available export market 
    information systems, including the CIMS system;
        (G) assisting small businesses to develop and implement 
    strategic business plans to timely and effectively respond to the 
    planned closure (or reduction) of a Department of Defense facility 
    within the community, or actual or projected reductions in such 
    firms' business base due to the actual or projected termination (or 
    reduction) of a Department of Defense program or a contract in 
    support of such program--
            (i) by developing broad economic assessments of the adverse 
        impacts of--
                (I) the closure (or reduction) of the Department of 
            Defense facility on the small business concerns providing 
            goods or services to such facility or to the military and 
            civilian personnel currently stationed or working at such 
            facility; and
                (II) the termination (or reduction) of a Department of 
            Defense program (or contracts under such program) on the 
            small business concerns participating in such program as a 
            prime contractor, subcontractor or supplier at any tier;

            (ii) by developing, in conjunction with appropriate Federal, 
        State, and local governmental entities and other private sector 
        organizations, the parameters of a transition adjustment program 
        adaptable to the needs of individual small business concerns;
            (iii) by conducting appropriate programs to inform the 
        affected small business community regarding the anticipated 
        adverse impacts identified under clause (i) and the economic 
        adjustment assistance available to such firms; and
            (iv) by assisting small business concerns to develop and 
        implement an individualized transition business plan.

        (H) maintaining current information concerning Federal, State, 
    and local regulations that affect small businesses and counsel small 
    businesses on methods of compliance. Counseling and technology 
    development shall be provided when necessary to help small 
    businesses find solutions for complying with environmental, energy, 
    health, safety, and other Federal, State, and local regulations;
        (I) coordinating and conducting research into technical and 
    general small business problems for which there are no ready 
    solutions;
        (J) providing and maintaining a comprehensive library that 
    contains current information and statistical data needed by small 
    businesses;
        (K) maintaining a working relationship and open communications 
    with the financial and investment communities, legal associations, 
    local and regional private consultants, and local and regional small 
    business groups and associates in order to help address the various 
    needs of the small business community;
        (L) conducting in-depth surveys for local small business groups 
    in order to develop general information regarding the local economy 
    and general small business strengths and weaknesses in the locality;
        (M) in cooperation with the Department of Commerce, the 
    Administration and other relevant Federal agencies, actively 
    assisting rural small businesses in exporting by identifying and 
    developing potential export markets for rural small businesses, 
    facilitating export transactions for rural small businesses, 
    developing linkages between United States' rural small businesses 
    and prescreened foreign buyers, assisting rural small businesses to 
    participate in international trade shows, assisting rural small 
    businesses in obtaining export financing and developing marketing 
    and production strategies;
        (N) assisting rural small businesses--
            (i) in developing marketing and production strategies that 
        will enable them to better compete in the domestic market--
            (ii) by providing technical assistance needed by rural small 
        businesses;
            (iii) by making available managerial assistance to rural 
        small business concerns; and
            (iv) by providing information and assistance in obtaining 
        financing for business startups and expansion;

        (O) in conjunction with the United States Travel and Tourism 
    Administration, assist rural small business in developing the 
    tourism potential of rural communities by--
            (i) identifying the cultural, historic, recreational, and 
        scenic resources of such communities;
            (ii) providing assistance to small businesses in developing 
        tourism marketing and promotion plans relating to tourism in 
        rural areas; and
            (iii) assisting small business concerns to obtain capital 
        for starting or expanding businesses primarily serving tourists;

        (P) maintaining lists of local and regional private consultants 
    to whom small businesses can be referred;
        (Q) providing information to small business concerns regarding 
    compliance with regulatory requirements;
        (R) developing informational publications, establishing resource 
    centers of reference materials, and distributing compliance guides 
    published under section 312(a) of the Small Business Regulatory 
    Enforcement Fairness Act of 1996;
        (S) providing small business owners with access to a wide 
    variety of export-related information by establishing on-line 
    computer linkages between small business development centers and an 
    international trade data information network with ties to the Export 
    Assistance Center program; and
        (T) providing information and assistance to small business 
    concerns with respect to establishing drug-free workplace programs 
    on or before October 1, 2003.

    (4) A small business development center shall continue to upgrade 
and modify its services, as needed, in order to meet the changing and 
evolving needs of the small business community.
    (5) In addition to the methods prescribed in paragraph (2), a small 
business development center shall utilize and compensate as one of its 
resources qualified small business vendors, including but not limited 
to, private management consultants, private consulting engineers and 
private testing laboratories, to provide services as described in this 
subsection to small businesses on behalf of such small business 
development center.
    (6) In any State (A) in which the Administration has not made a 
grant pursuant to paragraph (1) of subsection (a) of this section, or 
(B) in which no application for a grant has been made by a Small 
Business Development Center pursuant to paragraph (6) of such subsection 
within 60 days after the effective date of any grant under subsection 
(a)(1) of this section to such center or the date the Administration 
notifies the grantee funded under subsection (a)(1) of this section that 
funds are available for grant applications pursuant to subsection (a)(6) 
of this section, whichever date occurs last, the Administration may make 
grants to a non-profit entity in that State to carry out the activities 
specified in paragraph (6) of subsection (a) of this section. Any such 
applicants shall comply with the matching funds requirement of paragraph 
(4) of subsection (a) of this section. Such grants shall be effective 
for any fiscal year only to the extent provided in advance in 
appropriations Acts, and each State shall be limited to the pro rata 
share provisions of paragraph (6) of subsection (a) of this section.
    (7) In performing the services identified in paragraph (3), the 
Small Business Development Centers shall work in close cooperation with 
the Administration's regional and local offices, the local small 
business community, and appropriate State and local agencies.
    (8) The Associate Administrator for Small Business Development 
Centers, in consultation with the Small Business Development Centers, 
shall develop and implement an information sharing system. Subject to 
amounts approved in advance in appropriations Acts, the Administration 
may make grants or enter \3\ cooperative agreements with one or more 
centers to carry out the provisions of this paragraph. Said grants or 
cooperative agreements shall be awarded for periods of no more than five 
years duration. The matching funds provisions of subsection (a) of this 
section shall not be applicable to grants or cooperative agreements 
under this paragraph. The system shall--
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    \3\ So in original. Probably should be ``enter into''.
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        (A) allow Small Business Development Centers participating in 
    the program to exchange information about their programs; and
        (B) provide information central to technology transfer.

(d) Enhancing export potential of businesses within State; State Office 
        of International Trade

    Where appropriate, the Small Business Development Centers shall work 
in conjunction with the relevant State agency and the Department of 
Commerce to develop a comprehensive plan for enhancing the export 
potential of small businesses located within the State. This plan may 
involve the cofunding and staffing of a State Office of International 
Trade within the State Small Business Development Center, using joint 
State and Federal funding, and any other appropriate measures directed 
at improving the export performance of small businesses within the 
State.

(e) Laboratory assistance; reimbursement for services

    Laboratories operated and funded by the Federal Government are 
authorized and directed to cooperate with the Administration in 
developing and establishing programs to support small business 
development centers by making facilities and equipment available; 
providing experiment station capabilities in adaptive engineering; 
providing library and technical information processing capabilities; and 
providing professional staff for consulting. The Administration is 
authorized to reimburse the laboratories for such services.

(f) National Science Foundation; cooperation with Administration and 
        Small Business Development Centers; center support

    The National Science Foundation is authorized and directed to 
cooperate with the Administration and with the Small Business 
Development Centers in developing and establishing programs to support 
the centers.

(g) National Aeronautics and Space Administration and regional 
        technology transfer centers

    The National Aeronautics and Space Administration and regional 
technology transfer centers supported by the National Aeronautics and 
Space Administration are authorized and directed to cooperate with small 
business development centers participating in the program.

(h) Associate Administrator for Small Business Development Centers

                  (1) Appointment and compensation

        The Administrator shall appoint an Associate Administrator for 
    Small Business Development Centers who shall report to an official 
    who is not more than one level below the Office of the Administrator 
    and who shall serve without regard to the provisions of title 5 
    governing appointments in the competitive service, and without 
    regard to chapter 51, and subchapter III of chapter 53 of such title 
    relating to classification and General Schedule pay rates, but at a 
    rate not less than the rate of GS-17 of the General Schedule.

                             (2) Duties

        (A) In general

            The sole responsibility of the Associate Administrator for 
        Small Business Development Centers shall be to administer the 
        small business development center program. Duties of the 
        position shall include recommending the annual program budget, 
        reviewing the annual budgets submitted by each applicant, 
        establishing appropriate funding levels therefore, selecting 
        applicants to participate in this program, implementing the 
        provisions of this section, maintaining a clearinghouse to 
        provide for the dissemination and exchange of information 
        between small business development centers and conducting audits 
        of recipients of grants under this section.

        (B) Consultation requirements

            In carrying out the duties described in this subsection, the 
        Associate Administrator shall confer with and seek the advice of 
        the Board established by subsection (i) of this section and 
        Administration officials in areas served by the small business 
        development centers; however, the Associate Administrator shall 
        be responsible for the management and administration of the 
        program and shall not be subject to the approval or concurrence 
        of such Administration officials.

(i) National Small Business Development Center Advisory Board; 
        establishment; membership; term; Chairman; advisory and 
        counseling functions; meetings; compensation

    (1) There is established a National Small Business Development 
Center Advisory Board (herein referred to as ``Board'') which shall 
consist of nine members appointed from civilian life by the 
Administrator and who shall be persons of outstanding qualifications 
known to be familiar and sympathetic with small business needs and 
problems. No more than three members shall be from universities or their 
affiliates and six shall be from small businesses or associations 
representing small businesses. At the time of the appointment of the 
Board, the Administrator shall designate one-third of the members and at 
least one from each category whose term shall end in two years from the 
date of appointment, a second third whose term shall end in three years 
from the date of appointment, and the final third whose term shall end 
in four years from the date of appointment. Succeeding Boards shall have 
three-year terms, with one-third of the Board changing each year.
    (2) The Board shall elect a Chairman and advise, counsel, and confer 
with the Associate Administrator for Small Business Development Centers 
in carrying out the duties described in this section. The Board shall 
meet at least semiannually and at the call of the Chairman of the Board. 
Each member of the Board shall be entitled to be compensated at the rate 
not in excess of the per diem, equivalent of the highest rate of pay for 
individuals occupying the position under GS-18 of the General Schedule 
for each day engaged in activities of the Board and shall be entitled to 
be reimbursed for expenses as a member of the Board.

(j) Small business development center advisory board; establishment; 
        chairman; conferences with director on policy

    (1) Each small business development center shall establish an 
advisory board.
    (2) Each small business development center advisory board shall 
elect a chairman and advise, counsel, and confer with the director of 
the small business development center on all policy matters pertaining 
to the operation of the small business development center, including who 
may be eligible to receive assistance from, and how local and regional 
private consultants may participate with the small business development 
center.

(k) Program examination and certification

                           (1) Examination

        Not later than 180 days after October 22, 1994, the 
    Administration shall develop and implement a biennial programmatic 
    and financial examination of each small business development center 
    established pursuant to this section.

                          (2) Certification

        The Administration may provide financial support, by contract or 
    otherwise, to the association authorized by subsection (a)(3)(A) of 
    this section for the purpose of developing a small business 
    development center certification program.

         (3) Extension or renewal of cooperative agreements

        (A) In general

            In extending or renewing a cooperative agreement of a small 
        business development center, the Administration shall consider 
        the results of the examination and certification program 
        conducted pursuant to paragraphs (1) and (2).

        (B) Certification requirement

            After September 30, 2000, the Administration may not renew 
        or extend any cooperative agreement with a small business 
        development center unless the center has been approved under the 
        certification program conducted pursuant to this subsection, 
        except that the Associate Administrator for Small Business 
        Development Centers may waive such certification requirement, in 
        the discretion of the Associate Administrator, upon a showing 
        that the center is making a good faith effort to obtain 
        certification.

(l) Contract authority

    The authority to enter into contracts shall be in effect for each 
fiscal year only to the extent and in the amounts as are provided in 
advance in appropriations Acts. After the administration has entered a 
contract, either as a grant or a cooperative agreement, with any 
applicant under this section, it shall not suspend, terminate, or fail 
to renew or extend any such contract unless the Administration provides 
the applicant with written notification setting forth the reasons 
therefore and affording the applicant an opportunity for a hearing, 
appeal, or other administrative proceeding under the provisions of 
chapter 5 of title 5. If any contract or cooperative agreement under 
this section with an entity that is covered by this section is not 
renewed or extended, any award of a successor contract or cooperative 
agreement under this section to another entity shall be made on a 
competitive basis.

(m) Prohibition on certain fees

    A small business development center shall not impose or otherwise 
collect a fee or other compensation in connection with the provision of 
counseling services under this section.

(Pub. L. 85-536, Sec. 2[21], as added Pub. L. 96-302, title II, 
Sec. 202, July 2, 1980, 94 Stat. 843; amended Pub. L. 98-395, Sec. 2, 
Aug. 21, 1984, 98 Stat. 1366; Pub. L. 100-418, title VIII, Sec. 8006(b), 
Aug. 23, 1988, 102 Stat. 1557; Pub. L. 100-590, title I, Secs. 134, 
135(3), Nov. 3, 1988, 102 Stat. 3006, 3007; Pub. L. 101-515, title V, 
Secs. 5(a), 6, Nov. 5, 1990, 104 Stat. 2142; Pub. L. 101-574, title II, 
Sec. 201(a)(1), title III, Sec. 303, Nov. 15, 1990, 104 Stat. 2818, 
2828; Pub. L. 102-366, title II, Secs. 212, 223(a), Sept. 4, 1992, 106 
Stat. 998, 1000; Pub. L. 103-81, Sec. 9(a), Aug. 13, 1993, 107 Stat. 
783; Pub. L. 103-403, title IV, Secs. 402-404, Oct. 22, 1994, 108 Stat. 
4190, 4191; Pub. L. 104-66, title II, Sec. 2121, Dec. 21, 1995, 109 
Stat. 730; Pub. L. 104-121, title II, Sec. 214(a), Mar. 29, 1996, 110 
Stat. 859; Pub. L. 104-208, div. D, title I, Sec. 106, Sept. 30, 1996, 
110 Stat. 3009-731; Pub. L. 105-135, title V, Secs. 502, 506(a), Dec. 2, 
1997, 111 Stat. 2622, 2624; Pub. L. 105-277, div. C, title IX, Sec. 905, 
Oct. 21, 1998, 112 Stat. 2681-710; Pub. L. 106-554, Sec. 1(a)(9) [title 
V, Sec. 503(e), title VIII, Sec. 804(b)], Dec. 21, 2000, 114 Stat. 2763, 
2763A-695, 2763A-703; Pub. L. 107-20, title II, Sec. 2203(b), July 24, 
2001, 115 Stat. 170.)

                       References in Text

    Section 20(a), referred to in subsec. (a)(4)(C)(i)(I), (v), means 
section 2[20(a)] of Pub. L. 85-536, as amended, which is set out as a 
note under section 631 of this title.
    Section 312(a) of the Small Business Regulatory Enforcement Fairness 
Act of 1996, referred to in subsec. (c)(3)(R), probably means section 
212(a) of Pub. L. 104-121, which is set out in a note under section 601 
of Title 5, Government Organization and Employees, because Pub. L. 104-
121 does not contain a section 312.
    The provisions of title 5 governing appointments in the competitive 
service, referred to in subsec. (h)(1), are classified to section 3301 
et seq. of Title 5.
    The General Schedule, referred to in subsecs. (h)(1) and (i)(2), is 
set out under section 5332 of Title 5.

                          Codification

    October 22, 1994, referred to in subsec. (k)(1), was in the original 
``the date of enactment of this subsection'', which was translated as 
meaning the date of enactment of Pub. L. 103-403, which amended subsec. 
(k) generally, to reflect the probable intent of Congress.
    In subsec. (l), ``chapter 7 of title 5'' substituted for ``the 
Administrative Procedure Act'' on authority of Pub. L. 89-554, 
Sec. 7(b), Sept. 6, 1966, 80 Stat. 631, the first section of which 
enacted Title 5, Government Organization and Employees.


                            Prior Provisions

    A prior section 648 of this title, act July 30, 1953, ch. 282, title 
II, Sec. 219, 67 Stat. 239, which related to requirements for loans, was 
omitted as superseded by section 642 of this title. See Codification 
note set out under section 631 of this title.
    A prior section 2[21] of Pub. L. 85-536 was renumbered section 2[36] 
and is set out as a note under section 631 of this title.


                               Amendments

    2001--Subsec. (a)(4)(C)(v)(II). Pub. L. 107-20 inserted ``, or 
accompanying report language,'' after ``in appropriations Acts''.
    2000--Subsec. (a)(4)(C). Pub. L. 106-554, Sec. 1(a)(9) [title VIII, 
Sec. 804(b)], amended heading and text of subpar. (C) generally, 
substituting present provisions for provisions providing that the amount 
of a grant received by a State under this section would be equal to the 
greater of $500,000, or the sum of the State's pro rata share of the 
national program, plus $300,000 in fiscal year 1998, $400,000 in fiscal 
year 1999, and $500,000 in each fiscal year thereafter, provisions 
relating to pro rata reductions, matching requirement, and exception for 
grants provided to a small business development center to carry out the 
provisions of subsection (c)(3)(G), and provisions setting forth 
appropriations of $85,000,000 for fiscal year 1998, $90,000,000 for 
fiscal year 1999, and $95,000,000 for fiscal year 2000 and each fiscal 
year thereafter.
    Subsec. (c)(3)(T). Pub. L. 106-554, Sec. 1(a)(9) [title V, 
Sec. 503(e)], substituted ``2003'' for ``2000''.
    1998--Subsec. (c)(3)(T). Pub. L. 105-277 added subpar. (T).
    1997--Subsec. (a)(1). Pub. L. 105-135, Sec. 502(a)(1), inserted 
``any women's business center operating pursuant to section 656 of this 
title,'' after ``credit or finance corporation,'', ``or a women's 
business center operating pursuant to section 656 of this title'' after 
``other than an institution of higher education'', and ``and women's 
business centers operating pursuant to section 656 of this title'' after 
``utilize institutions of higher education''.
    Subsec. (a)(3). Pub. L. 105-135, Sec. 502(a)(2)(A), substituted 
``for the delivery of programs and services to the small business 
community. Such programs and services shall be jointly developed, 
negotiated, and agreed upon, with full participation of both parties, 
pursuant to an executed cooperative agreement between the Small Business 
Development Center applicant and the Administration'' for ``, but with 
recognition that a partnership exists under this section between the 
Administration and the applicant for the delivery of assistance to the 
small business community. Services shall be provided pursuant to a 
negotiated cooperative agreement with full participation of both 
parties''.
    Subsec. (a)(3)(C). Pub. L. 105-135, Sec. 502(a)(2)(B), added subpar. 
(C).
    Subsec. (a)(4)(C)(i). Pub. L. 105-135, Sec. 502(a)(3)(A), added cl. 
(i) and struck out heading and text of former cl. (i). Text read as 
follows: ``Except as provided in clause (ii), no State receiving funds 
under this section shall receive a grant that exceeds--
        ``(I) for fiscal year 1995, the sum of such State's pro rata 
    share of a national program based upon the population of the State 
    as compared to the total population in the United States, and 
    $125,000; or
        ``(II) in each succeeding fiscal year, the sum of such State's 
    pro rata share of a national program based upon the population of 
    the State as compared to the total population in the United States, 
    and $200,000.''
    Subsec. (a)(4)(C)(iii). Pub. L. 105-135, Sec. 502(a)(3)(B), added 
cl. (iii) and struck out former cl. (iii) which read as follows:
    ``(iii) Amount.--The amount of the national program shall be--
        ``(I) $70,000,000 through September 30, 1996;
        ``(II) $77,500,000 from October 1, 1996 through September 30, 
    1997; and
        ``(III) $85,000,000 beginning October 1, 1997.''
    Subsec. (a)(6)(C). Pub. L. 105-135, Sec. 502(a)(4), added subpar. 
(C).
    Subsec. (c)(3). Pub. L. 105-135, Sec. 502(b)(4), redesignated 
closing provisions as par. (4). Former par. (4) redesignated (5).
    Subsec. (c)(3)(A). Pub. L. 105-135, Sec. 502(b)(1)(A), substituted 
``businesses, including--'' for ``businesses;'' in introductory 
provisions and added cls. (i) to (iv).
    Subsec. (c)(3)(B). Pub. L. 105-135, Sec. 502(b)(1)(B), realigned 
margins.
    Subsec. (c)(3)(C). Pub. L. 105-135, Sec. 502(b)(1)(B), (C), 
realigned margins and inserted ``and the Administration'' after ``Small 
Business Development Center''.
    Subsec. (c)(3)(D) to (G), (M) to (O), (Q), (R). Pub. L. 105-135, 
Sec. 502(b)(1)(B), realigned margins.
    Subsec. (c)(3)(S). Pub. L. 105-135, Sec. 506(a), added subpar. (S).
    Subsec. (c)(4). Pub. L. 105-135, Sec. 502(b)(4), redesignated 
closing provisions of par. (3) as (4). Former par. (4) redesignated (5).
    Subsec. (c)(5). Pub. L. 105-135, Sec. 502(b)(3), redesignated par. 
(4) as (5). Former par. (5) redesignated (6).
    Pub. L. 105-135, Sec. 502(b)(2), realigned margins, substituted 
``subsection (a)(1) of this section'' for ``paragraph (a)(1)'' and 
``whichever date occurs last,'' for ``which ever date occurs last,,''.
    Subsec. (c)(6) to (8). Pub. L. 105-135, Sec. 502(b)(3), redesignated 
pars. (5) to (7) as (6) to (8), respectively.
    Subsec. (l). Pub. L. 105-135, Sec. 502(c), inserted at end ``If any 
contract or cooperative agreement under this section with an entity that 
is covered by this section is not renewed or extended, any award of a 
successor contract or cooperative agreement under this section to 
another entity shall be made on a competitive basis.''
    Subsec. (m). Pub. L. 105-135, Sec. 502(d), added subsec. (m).
    1996--Subsec. (c)(3)(Q), (R). Pub. L. 104-121 added subpars. (Q) and 
(R).
    Subsec. (c)(7). Pub. L. 104-208, Sec. 106(a)(2)(A), substituted 
``Associate Administrator for Small Business Development Centers'' for 
``Deputy Associate Administrator of the Small Business Development 
Center program''.
    Subsec. (h). Pub. L. 104-208, Sec. 106(a)(1), amended subsec. (h) 
generally. Prior to amendment, subsec. (h) read as follows:
    ``(h)(1) The Administrator shall appoint a Associate Administrator 
for Small Business Development Centers who shall report to an official 
who is not more than one level below the Office of the Administrator and 
who shall serve without regard to the provisions of title 5 governing 
appointments in the competitive service, and without regard to chapter 
51, and subchapter III of chapter 53 of such title relating to 
classification and General Schedule pay rates, but at a rate not less 
than the rate of GS-17 of the General Schedule.
    ``(2) The sole responsibility of the Associate Administrator for 
Small Business Development Centers shall be to administer the small 
business development center program. Duties of the position shall 
include, but are not limited to, recommending the annual program budget, 
reviewing the annual budgets submitted by each applicant, establishing 
appropriate funding levels therefore, selecting applicants to 
participate in this program, implementing the provisions of this 
section, maintaining a clearinghouse to provide for the dissemination 
and exchange of information between small business development centers 
and conducting audits of recipients of grants under this section. The 
Associate Administrator for Small Business Development Centers shall 
confer with and seek the advise and counsel of the Board in carrying out 
the responsibilities described in this subsection.''
    Subsec. (i)(2). Pub. L. 104-208, Sec. 106(a)(2)(B), substituted 
``Associate Administrator for Small Business Development Centers'' for 
``Deputy Associate Administrator for Management Assistance''.
    Subsec. (k)(3). Pub. L. 104-208, Sec. 106(b), amended heading and 
text of par. (3) generally. Prior to amendment, text read as follows: 
``In extending or renewing a cooperative agreement of a small business 
development center, the Administration shall consider the results of the 
examination and certification program conducted pursuant to paragraphs 
(1) and (2).''
    Subsec. (l). Pub. L. 104-208, Sec. 106(c), amended heading and text 
of subsec. (l) generally. Prior to amendment, text read as follows: 
``The authority to enter into contracts shall be in effect for each 
fiscal year only to the extent or in the amounts as are provided in 
advance in appropriations Acts. After the administration has entered a 
contract, either as a grant or a cooperative agreement, with any 
applicant under this section, it shall not suspend, terminate or fail to 
renew or extend any such contract unless the Administration provides the 
applicant with written notification setting forth the reasons therefor 
and affording the applicant an opportunity for a hearing, appeal or 
other administrative proceeding under the provisions of chapter 7 of 
title 5.''
    1995--Subsec. (g). Pub. L. 104-66 amended subsec. (g) generally. 
Prior to amendment, subsec. (g) read as follows: ``The National 
Aeronautics and Space Administration and industrial application centers 
supported by the National Aeronautics and Space Administration are 
authorized and directed to cooperate with small business development 
centers participating in this program. The National Aeronautics and 
Space Administration shall report annually on the performance of such 
industrial application centers with recommendations to the 
Administration and the Congress on how such industrial application 
centers can be strengthened and expanded. The National Aeronautics and 
Space Administration shall include in its report to Congress information 
on the ability of industrial application centers to interact with the 
Nation's small business community and recommendations to the 
Administration on continued funding.''
    1994--Subsec. (a)(4). Pub. L. 103-403, Sec. 402, amended par. (4) 
generally. Prior to amendment, par. (4) read as follows: ``Except as 
provided in paragraph (4), the Administration shall require, as a 
condition to any grant (or amendment or modification thereof) made to an 
applicant under this section that an additional amount (excluding any 
fees collected from recipients of such assistance) equal to the amount 
of such grant be provided from sources other than the Federal 
Government: Provided, That the additional amount shall not include any 
amount of indirect costs or in-kind contributions paid for under any 
Federal program, nor shall such indirect costs or in-kind contributions 
exceed 50 per centum of the non-Federal additional amount: Provided 
further, That no recipient of funds under this section shall receive a 
grant which would exceed its pro rata share of a $70,000,000 program 
based upon the population to be served by the Small Business Development 
Center as compared to the total population of the United States, plus 
$100,000 for each State, but no State shall receive less than 
$200,000.''
    Subsec. (a)(5). Pub. L. 103-403, Sec. 403, amended par. (5) 
generally, substituting present provisions for former provisions which 
required matching amount from non-Federal sources equal to amount of 
Federal grant.
    Subsec. (k). Pub. L. 103-403, Sec. 404, amended subsec. (k) 
generally. Prior to amendment, subsec. (k) read as follows: ``Within six 
months of August 21, 1984, the Administration shall develop and 
implement a program proposal for onsite evaluation of each Small 
Business Development Center. Such evaluation shall be conducted at least 
once every two years and shall provide for the participation of a 
representative of at least one other Small Business Development Center 
on a cost-reimbursement basis.''
    1993--Subsec. (c)(7). Pub. L. 103-81 substituted ``system. Subject 
to amounts approved in advance in appropriations Acts, the 
Administration may make grants or enter cooperative agreements with one 
or more centers to carry out the provisions of this paragraph. Said 
grants or cooperative agreements shall be awarded for periods of no more 
than five years duration. The matching funds provisions of subsection 
(a) of this section shall not be applicable to grants or cooperative 
agreements under this paragraph. The system shall'' for ``system which 
will'' in introductory provisions.
    1992--Subsec. (a)(3)(A), (B). Pub. L. 102-366, Sec. 223(a), added 
subpars. (A) and (B).
    Subsec. (c)(3)(D) to (G). Pub. L. 102-366, Sec. 212, redesignated 
former subpars. (E) to (G) as (D) to (F), respectively, added subpar. 
(G), and struck out former subpar. (D) which read as follows: 
``assisting small businesses in developing and implementing marketing 
and production strategies that will enable them to better compete within 
the domestic market;''.
    1990--Subsec. (a)(1). Pub. L. 101-515, Sec. 6, struck out period at 
end of first sentence and inserted ``: Provided, That after December 31, 
1990, the Administration shall not make a grant to any applicant other 
than an institution of higher education as a Small Business Development 
Center unless the applicant was receiving a grant (including a contract 
or cooperative agreement) on such date. The Administration shall require 
any applicant for a small business development center grant with 
performance commencing on or after January 1, 1992 to have its own 
budget and to primarily utilize institutions of higher education to 
provide services to the small business community.''
    Subsec. (a)(4). Pub. L. 101-515, Sec. 5(a), and Pub. L. 101-574, 
Sec. 201(a)(1), amended par. (4) identically, substituting ``Provided 
further, That no recipient of funds under this section shall receive a 
grant which would exceed its pro rata share of a $70,000,000 program 
based upon the population to be served by the Small Business Development 
Center as compared to the total population of the United States, plus 
$100,000 for each State, but no State shall receive less than 
$200,000.'' for ``Provided further, That no recipient of funds under 
this section shall receive a grant which would exceed its pro rata share 
of a $65,000,000 program based upon the population to be served by the 
Small Business Development Center as compared to the total population in 
the United States, or $200,000, whichever is greater.''
    Subsec. (c)(3)(M) to (P). Pub. L. 101-574, Sec. 303, added subpars. 
(M) to (O) and redesignated former subpar. (M) as (P).
    1988--Subsec. (a)(1). Pub. L. 100-418, Sec. 8006(b)(1), inserted 
provision relating to management and technical assistance regarding 
small business participation in international markets, export promotion 
and technology transfer.
    Subsec. (a)(2) to (6). Pub. L. 100-418, Sec. 8006(b)(2), (3), added 
par. (2), redesignated former pars. (2) to (4) as (3) to (5), 
respectively, and added par. (6).
    Subsec. (c)(3)(B) to (M). Pub. L. 100-418, Sec. 8006(b)(4), (5), 
added subpars. (B) to (G), redesignated former subpars. (C) to (H) as 
(H) to (M), respectively, and struck out former subpar. (B) which read 
as follows: ``assisting in technology transfer, research, and coupling 
from existing sources to small businesses;''.
    Subsec. (c)(5). Pub. L. 100-590, Sec. 135(3), inserted ``or the date 
the Administration notifies the grantee funded under subsection (a)(1) 
of this section that funds are available for grant applications pursuant 
to subsection (a)(6) of this section, which ever date occurs last,'' 
after ``such center''.
    Pub. L. 100-418, Sec. 8006(b)(6), added par. (5).
    Subsec. (c)(6), (7). Pub. L. 100-418, Sec. 8006(b)(6), added pars. 
(6) and (7).
    Subsecs. (d) to (g). Pub. L. 100-418, Sec. 8006(b)(7), added subsec. 
(d) and redesignated former subsecs. (d) to (f) as (e) to (g), 
respectively. Former subsec. (g) redesignated (h).
    Subsec. (h). Pub. L. 100-590, Sec. 134(1), (2), which directed that 
subsec. (g) be amended by substituting ``Associate Administrator for 
Small Business Development Centers'' for ``Deputy Associate 
Administrator for Management Assistance'' in three places, and in par. 
(1) by substituting ``an official who is not more than one level below 
the Office of the Administrator'' for ``the Associate Administrator for 
Management Assistance'', was executed to subsec. (h) to reflect the 
probable intent of Congress and the intervening redesignation of subsec. 
(g) as (h) by section 8006(b)(7) of Pub. L. 100-418.
    Pub. L. 100-418, Sec. 8006(b)(7), redesignated former subsec. (g) as 
(h). Former subsec. (h) redesignated (i).
    Subsecs. (i) to (k). Pub. L. 100-418, Sec. 8006(b)(7), redesignated 
former subsecs. (h) to (j) as (i) to (k), respectively. Former subsec. 
(k) redesignated (l).
    Subsec. (l) Pub. L. 100-590, Sec. 134(3), which directed that 
subsec. (k) be amended by inserting provisions which prohibited 
Administration from suspending, terminating or failing to renew or 
extend any contract without written notification and opportunity for 
hearing, appeal or other administrative proceeding, was executed to 
subsec. (l) to reflect the probable intent of Congress and the 
intervening redesignation of subsec. (k) as (l) by section 8006(b)(7) of 
Pub. L. 100-418.
    Pub. L. 100-418, Sec. 8006(b)(7), redesignated former subsec. (k) as 
(l).
    1984--Subsec. (a)(1). Pub. L. 98-395, Sec. 2(1), inserted ``The term 
of such grants shall be made on a calendar year basis or to coincide 
with the Federal fiscal year.''
    Subsec. (a)(2) to (4). Pub. L. 98-395, Sec. 2(2), added pars. (2) to 
(4). Former par. (2), which contained provisions similar to par. (3), 
was struck out.
    Subsec. (b)(1). Pub. L. 98-395, Sec. 2(3), substituted ``Financial'' 
for ``During fiscal years 1981, 1982, and 1983, financial''.
    Subsec. (c)(2). Pub. L. 98-395, Sec. 2(4), inserted in provisions 
preceding subpar. (A) ``The facilities and staff of each Small Business 
Development Center shall be located in such places as to provide maximum 
accessibility and benefits to the small businesses which the center is 
intended to serve.''
    Subsec. (c)(2)(A). Pub. L. 98-395, Sec. 2(5), substituted 
``including a full-time director who shall have the authority to make 
expenditures under the center's budget and who shall manage the program 
activities;'' for ``including a staff director to manage the program 
activities.''
    Subsec. (e). Pub. L. 98-395, Sec. 2(6), substituted provisions 
authorizing the National Science Foundation to cooperate with the 
Administration and with Small Business Development Centers in developing 
and establishing programs to support the centers, for former provisions 
which related to the National Science Foundation and innovation centers, 
and reports to be made to the Administration and Congress.
    Subsec. (h)(2). Pub. L. 98-395, Sec. 2(7), substituted ``at least 
semiannually'' for ``at least quarterly''.
    Subsec. (i)(1). Pub. L. 98-395, Sec. 2(8), substituted ``shall'' for 
``may''.
    Subsec. (j). Pub. L. 98-395, Sec. 2(9), substituted provisions 
mandating that the Administration develop and implement program 
proposals for onsite evaluation of each Small Business Development 
Center for provisions which related to the establishment of program 
evaluation plans and their submission to Congressional committees.


                    Effective Date of 1997 Amendment

    Amendment by Pub. L. 105-135 effective Oct. 1, 1997, see section 3 
of Pub. L. 105-135, set out as a note under section 631 of this title.


                    Effective Date of 1996 Amendments

    Amendment by Pub. L. 104-208 effective Oct. 1, 1996, see section 3 
of Pub. L. 104-208, set out as a note under section 633 of this title.
    Amendment by Pub. L. 104-121 effective on expiration of 90 days 
after Mar. 29, 1996, see section 216 of Pub. L. 104-121, set out in a 
Small Business Regulatory Fairness note under section 601 of Title 5, 
Government Organization and Employees.


                    Effective Date of 1990 Amendments

    Section 201(a)(2) of Pub. L. 101-574 provided that: ``The amendment 
made by paragraph (1) [amending this section] shall apply to contracts, 
grants, or cooperative agreements for performance commencing on or after 
October 1, 1991. Contracts, grants, or cooperative agreements the 
performance of which commences before October 1, 1991, shall receive 
funding for the entire term of performance without regard to the 
amendment made by paragraph (1) and according to the State's pro rata 
share of a $65,000,000 program as computed on the effective date of this 
section [Nov. 15, 1990] under population estimates used for calendar 
year 1990 agreements, plus $50,000 for each State, but no State shall 
receive less than $200,000.''
    Section 5(c) of Pub. L. 101-515 provided that: ``The amendments to 
the second proviso in subsection (a)(4) [15 U.S.C. 648(a)(4)] made by 
subsection (a) of this section shall apply to contracts, grants or 
cooperative agreements for performance commencing on or after October 1, 
1991; contracts, grants or cooperative agreements for performance 
commencing prior thereto shall receive funding for the entire term of 
performance without regard to this amendment and according to the 
State's pro rata share of a $65,000,000 program as computed on the 
effective date of this section [Nov. 5, 1990] under population estimates 
used for calendar year 1990 agreements, plus $50,000 for each State, but 
no State shall receive less than $200,000.''


                     Effective and Termination Dates

    Section 204 of Pub. L. 96-302, as amended by Pub. L. 98-177, Nov. 
29, 1983, 97 Stat. 1125; Pub. L. 98-395, Sec. 4, Aug. 21, 1984, 98 Stat. 
1368; Pub. L. 101-162, title V, (6), Nov. 21, 1989, 103 Stat. 1028, 
which provided for the repeal, effective Oct. 1, 1991, of sections 201 
and 202 of Pub. L. 96-302, which enacted this section and provisions set 
out as a note under section 631 of this title and redesignated section 
2[21] as 2[30] of Pub. L. 85-536, set out as a note under section 631 of 
this title, was repealed by Pub. L. 101-515, Sec. 5(b), Nov. 5, 1990, 
104 Stat. 2142, and Pub. L. 101-574, title II, Sec. 201(b), Nov. 15, 
1990, 104 Stat. 2818.
    Section effective Oct. 1, 1980, see section 507 of Pub. L. 96-302, 
set out as an Effective Date of 1980 Amendment note under section 631 of 
this title.


                               Short Title

    For short title of title II of Pub. L. 96-302 as the Small Business 
Development Center Act of 1980, see Short Title of 1980 Amendment note 
set out under section 631 of this title.


                               Regulations

    Section 223(b) of Pub. L. 102-366, as amended by Pub. L. 103-81, 
Sec. 9(c), Aug. 13, 1993, 107 Stat. 783, provided that: ``Not later than 
180 days after the date of enactment of this Act [Sept. 4, 1992], the 
Administrator of the Small Business Administration shall submit to the 
Committees on Small Business and the Committees on Appropriations of the 
Senate and the House of Representatives, proposed regulations for the 
Small Business Development Center Program authorized by section 21 of 
the Small Business Act (15 U.S.C. 648).''


        Small Business Technology Transfer Demonstration Program

    Section 231 of Pub. L. 101-574, as amended by Pub. L. 102-564, title 
III, Sec. 302, Oct. 28, 1992, 106 Stat. 4262, provided that:
    ``(a) Establishment.--There is established within the Small Business 
Administration a Small Business Technology Transfer Demonstration 
Program (hereafter referred to as the `Program').
    ``(b) Purpose of Program.--The purpose of the Program is to 
demonstrate the feasibility of providing small businesses with 
education, training, and technical assistance with respect to technology 
transfer and application through an eligible entity.
    ``(c) Program Activities.--The eligible entity shall undertake, 
through a regional network of participating community and technical 
colleges, a program of activities to provide small business concerns 
training and assistance with respect to--
        ``(1) technological innovations,
        ``(2) statistical process control,
        ``(3) computer-assisted design,
        ``(4) computer-assisted manufacturing and computer-integrated 
    manufacturing,
        ``(5) implementation and deployment of telecommunications and 
    other interactive systems, and
        ``(6) other new equipment and advanced manufacturing processes.
    ``(d) Cooperative Agreement.--The Administration is authorized to 
award a cooperative agreement to an eligible entity to undertake a 
demonstration program pursuant to this subsection.
    ``(e) Regulations.--
        ``(1) In general.--The Administrator shall issue regulations for 
    the implementation of the Program within 180 days of the date of the 
    enactment of this Act [Nov. 15, 1990].
        ``(2) Allocation of funding.--In addition to any other matters 
    which the Administration deems appropriate, such Program regulations 
    shall provide for the allocation of funds among the educational 
    institutions that comprise the eligible entity on the basis of scope 
    of the assistance and training activities to be offered small 
    business concerns under the Program and the capability of the 
    educational institution to provide such Program activities.
    ``(f) Use of Small Business Development Centers and Other 
Resources.--In implementing the Program, the Administrator shall assure 
that the eligible entity uses to the maximum extent feasible Small 
Business Development Centers, receiving support pursuant to section 21 
of the Small Business Act (15 U.S.C. 648), and other available sources 
in conducting the Program.
    ``(g) Duration of the Program.--The Program shall terminate on 
September 30, 1995.
    ``(h) Report.--The Administrator shall monitor the implementation of 
the Program established by this section and submit a report evaluating 
such implementation to the Committees on Small Business of the Senate 
and the House of Representatives by not later than June 30, 1993, 
including appropriate recommendations regarding continuation of the 
Program and its extension to other regions in the country.
    ``(i) Authorization.--There is authorized to be appropriated to the 
Small Business Administration $5,000,000 for each of the fiscal years 
1994 and 1995 1993 [sic] to carry out the Program established by this 
section.
    ``(j) Definitions.--For purposes of this section:
        ``(1) The term `eligible entity' means the Community College 
    Association for Technology Transfer or, if such organization is not 
    available, another not-for-profit association of community and 
    technical colleges determined to be eligible for an award of a 
    cooperative agreement, under the regulations issued pursuant to 
    subsection (e).
        ``(2) The term `Community College Association for Technology 
    Transfer' (`CCATT') means a coalition currently composed of 16 
    community and technical colleges located in the Midwest which has 
    proposed a cooperative regional program for technology transfer and 
    application for the benefit of small businesses to revitalize the 
    regional economy.''


         References in Other Laws to GS-16, 17, or 18 Pay Rates

    References in laws to the rates of pay for GS-16, 17, or 18, or to 
maximum rates of pay under the General Schedule, to be considered 
references to rates payable under specified sections of Title 5, 
Government Organization and Employees, see section 529 [title I, 
Sec. 101(c)(1)] of Pub. L. 101-509, set out in a note under section 5376 
of Title 5.

                  Section Referred to in Other Sections

    This section is referred to in sections 636, 654, 657c of this 
title.



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