S.Amdt. 4508

SA 4508. Mr. BOND submitted an amendment intended to be proposed to
amendment SA 4499 proposed by Mr. Reid (for Mr. Baucus) to the bill
H.R. 5297, to create the Small Business Lending Fund Program to direct
the Secretary of the Treasury to make capital investments in eligible
institutions in order to increase the availability of credit for small
businesses, to amend the Internal Revenue Code of 1986 to provide tax
incentives for small business job creation, and for other purposes;
which was ordered to lie on the table; as follows:

On page 40, after line 25, add the following:

SEC. 1137. HUBZONES.

(a) Definitions.--In this section--
(1) the terms ``HUBZone'' and ``HUBZone small business
concern'' and ``HUBZone map'' have the meanings given those
terms in section 3(p) of the Small Business Act (15 U.S.C.
632(p)), as amended by this Act; and
(2) the term ``recertification'' means a determination by
the Administrator that a business concern that was previously
determined to be a qualified HUBZone small business concern
is a qualified HUBZone small business concern under section
3(p)(5) of the Small Business Act (15 U.S.C. 632(p)(5)).
(b) Purpose; Findings.--
(1) Purpose.--The purpose of this section is to reform and
improve the HUBZone program of the Administration.
(2) Findings.--Congress finds that--
(A) the HUBZone program was established under the HUBZone
Act of 1997 (Public Law 105-135; 111 Stat. 2627) to stimulate
economic development through increased employment and capital
investment by providing Federal contracting preferences to
small business concerns in those areas, including inner
cities and rural counties, that have low household incomes,
high unemployment, and suffered from a lack of investment;
and
(B) according to the Government Accountability Office, the
weakness in the oversight of the HUBZone program by the
Administration has exposed the Government to fraud and abuse.
(c) HUBZone Improvements.--The Administrator shall--
(1) ensure the HUBZone map--
(A) is accurate and up-to date; and
(B) revised as new data is made available to maintain the
accuracy and currency of the HUBZone map;
(2) implement policies for ensuring that only HUBZone small
business concerns determined to be qualified under section
3(p)(5) of the Small Business Act (15 U.S.C. 632(p)(5)) are
participating in the HUBZone program, including through the
appropriate use of technology to control costs and maximize,
among other benefits, uniformity, completeness, simplicity,
and efficiency;
(3) submit to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives a report regarding
any application to be designated as a HUBZone small business
concern or for recertification for which the Administrator
has not made a determination as of the date that is 60 days
after the date on which the application was submitted or
initiated, which shall include a plan and timetable for
ensuring the timely processing of the applications; and
(4) develop measures and implement plans to assess the
effectiveness of the HUBZone program that--
(A) require the identification of a baseline point in time
to allow the assessment of economic development under the
HUBZone program, including creating additional jobs; and
(B) take into account--
(i) the economic characteristics of the HUBZone; and
(ii) contracts being counted under multiple socioeconomic
subcategories.
(d) Employment Percentage.--Section 3(p) of the Small
Business Act (15 U.S.C. 632(p)) is amended--
(1) in paragraph (5), by adding at the end the following:

[[Page S6223]]

``(E) Employment percentage during interim period.--
``(i) Definition.--In this subparagraph, the term `interim
period' means the period beginning on the date on which the
Administrator determines that a HUBZone small business
concern is qualified under subparagraph (A) and ending on the
day before the date on which a contract under the HUBZone
program for which the HUBZone small business concern submits
a bid is awarded.
``(ii) Interim period.--During the interim period, the
Administrator may not determine that a HUBZone small business
is not qualified under subparagraph (A) based on a failure to
meet the applicable employment percentage under subparagraph
(A)(i)(I), unless the HUBZone small business concern--

``(I) has not attempted to maintain the applicable
employment percentage under subparagraph (A)(i)(I); or
``(II) does not meet the applicable employment percentage--

``(aa) on the date on which the HUBZone small business
concern submits a bid for a contract under the HUBZone
program; or
``(bb) on the date on which the HUBZone small business
concern is awarded a contract under the HUBZone program.'';
and
(2) by adding at the end the following:
``(8) Hubzone program.--The term `HUBZone program' means
the program established under section 31.
``(9) Hubzone map.--The term `HUBZone map' means the map
used by the Administration to identify HUBZones.''.
(e) Redesignated Areas.--Section 3(p)(4)(C)(i) of the Small
Business Act (15 U.S.C. 632(p)(4)(C)(i)) is amended to read
as follows:
``(i) 3 years after the first date on which the
Administrator publishes a HUBZone map that is based on the
results from the 2010 decennial census; or''.
______