Title V — Small Business Trade Issues and State Trade Coordination

“(a) In General.—The Office of Advocacy”

; and

“(b) Outreach and Input From Small Businesses on Trade Promotion Authority.—

“(1) Definitions.—In this subsection—

“(A) the term ‘agency’ has the meaning given the term in section 551 of title 5, United States Code;

“(B) the term ‘Chief Counsel for Advocacy’ means the Chief Counsel for Advocacy of the Small Business Administration;

“(C) the term ‘covered trade agreement’ means a trade agreement being negotiated pursuant to section 103(b) of the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (Public Law 114–26; 19 U.S.C. 4202(b)); and

“(D) the term ‘Working Group’ means the Interagency Working Group convened under paragraph (2)(A).

“(2) Working group.—

“(A) In general.—Not later than 30 days after the date on which the President submits the notification required under section 105(a) of the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (Public Law 114–26; 19 U.S.C. 4204(a)), the Chief Counsel for Advocacy shall convene an Interagency Working Group, which shall consist of an employee from each of the following agencies, as selected by the head of the agency or an official delegated by the head of the agency:

“(i) The Office of the United States Trade Representative.

“(ii) The Department of Commerce.

“(iii) The Department of Agriculture.

“(iv) Any other agency that the Chief Counsel for Advocacy, in consultation with the United States Trade Representative, determines to be relevant with respect to the subject of the covered trade agreement.

“(B) Views of small businesses.—Not later than 30 days after the date on which the Chief Counsel for Advocacy convenes the Working Group under subparagraph (A), the Chief Counsel for Advocacy shall identify a diverse group of small businesses, representatives of small businesses, or a combination thereof, to provide to the Working Group the views of small businesses in the manufacturing, services, and agriculture industries on the potential economic effects of the covered trade agreement.

“(3) Report.—

“(A) In general.—Not later than 180 days after the date on which the Chief Counsel for Advocacy convenes the Working Group under paragraph (2)(A), the Chief Counsel for Advocacy shall submit to the Committee on Small Business and Entrepreneurship and the Committee on Finance of the Senate and the Committee on Small Business and the Committee on Ways and Means of the House of Representatives a report on the economic impacts of the covered trade agreement on small businesses, which shall—

“(i) identify the most important priorities, opportunities, and challenges to various industries from the covered trade agreement;

“(ii) assess the impact for new small businesses to start exporting, or increase their exports, to markets in countries that are parties to the covered trade agreement;

“(iii) analyze the competitive position of industries likely to be significantly affected by the covered trade agreement;

“(iv) identify—

“(I) any State-owned enterprises in each country participating in negotiations for the covered trade agreement that could pose a threat to small businesses; and

“(II) any steps to take to create a level playing field for those small businesses;

“(v) identify any rule of an agency that should be modified to become compliant with the covered trade agreement; and

“(vi) include an overview of the methodology used to develop the report, including the number of small business participants by industry, how those small businesses were selected, and any other factors that the Chief Counsel for Advocacy may determine appropriate.

“(B) Delayed submission.—To ensure that negotiations for the covered trade agreement are not disrupted, the President may require that the Chief Counsel for Advocacy delay submission of the report under subparagraph (A) until after the negotiations for the covered trade agreement are concluded, provided that the delay allows the Chief Counsel for Advocacy to submit the report to Congress not later than 45 days before the Senate or the House of Representatives acts to approve or disapprove the covered trade agreement.

“(C) Avoidance of duplication.—The Chief Counsel for Advocacy shall, to the extent practicable, coordinate the submission of the report under this paragraph with the United States International Trade Commission, the United States Trade Representative, other agencies, and trade advisory committees to avoid unnecessary duplication of reporting requirements.”

“(l) State Trade Expansion Program.—

“(1) Definitions.—In this subsection—

“(A) the term ‘eligible small business concern’ means a business concern that—

“(i) is organized or incorporated in the United States;

“(ii) is operating in the United States;

“(iii) meets—

“(I) the applicable industry-based small business size standard established under section 3; or

“(II) the alternate size standard applicable to the program under section 7(a) of this Act and the loan programs under title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.);

“(iv) has been in business for not less than 1 year, as of the date on which assistance using a grant under this subsection commences; and

“(v) has access to sufficient resources to bear the costs associated with trade, including the costs of packing, shipping, freight forwarding, and customs brokers;

“(B) the term ‘program’ means the State Trade Expansion Program established under paragraph (2);

“(C) the term ‘rural small business concern’ means an eligible small business concern located in a rural area, as that term is defined in section 1393(a)(2) of the Internal Revenue Code of 1986;

“(D) the term ‘socially and economically disadvantaged small business concern’ has the meaning given that term in section 8(a)(4)(A) of the Small Business Act (15 U.S.C. 637(a)(4)(A)); and

“(E) the term ‘State’ means each of the several States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands, and American Samoa.

“(2) Establishment of program.—The Associate Administrator shall establish a trade expansion program, to be known as the ‘State Trade Expansion Program’, to make grants to States to carry out programs that assist eligible small business concerns in—

“(A) participation in foreign trade missions;

“(B) a subscription to services provided by the Department of Commerce;

“(C) the payment of website fees;

“(D) the design of marketing media;

“(E) a trade show exhibition;

“(F) participation in training workshops;

“(G) a reverse trade mission;

“(H) procurement of consultancy services (after consultation with the Department of Commerce to avoid duplication); or

“(I) any other initiative determined appropriate by the Associate Administrator.

“(3) Grants.—

“(A) Joint review.—In carrying out the program, the Associate Administrator may make a grant to a State to increase the number of eligible small business concerns in the State exploring significant new trade opportunities.

“(B) Considerations.—In making grants under this subsection, the Associate Administrator may give priority to an application by a State that proposes a program that—

“(i) focuses on eligible small business concerns as part of a trade expansion program;

“(ii) demonstrates intent to promote trade expansion by—

“(I) socially and economically disadvantaged small business concerns;

“(II) small business concerns owned or controlled by women; and

“(III) rural small business concerns;

“(iii) promotes trade facilitation from a State that is not 1 of the 10 States with the highest percentage of eligible small business concerns that are engaged in international trade, based upon the most recent data from the Department of Commerce; and

“(iv) includes—

“(I) activities which have resulted in the highest return on investment based on the most recent year; and

“(II) the adoption of shared best practices included in the annual report of the Administration.

“(C) Limitations.—

“(i) Single application.—A State may not submit more than 1 application for a grant under the program in any 1 fiscal year.

“(ii) Proportion of amounts.—The total value of grants made under the program during a fiscal year to the 10 States with the highest percentage of eligible small business concerns, based upon the most recent data available from the Department of Commerce, shall be not more than 40 percent of the amounts appropriated for the program for that fiscal year.

“(iii) Duration.—The Associate Administrator shall award a grant under this program for a period of not more than 2 years.

“(D) Application.—

“(i) In general.—A State desiring a grant under the program shall submit an application at such time, in such manner, and accompanied by such information as the Associate Administrator may establish.

“(ii) Consultation to reduce duplication.—A State desiring a grant under the program shall—

“(I) before submitting an application under clause (i), consult with applicable trade agencies of the Federal Government on the scope and mission of the activities the State proposes to carry out using the grant, to ensure proper coordination and reduce duplication in services; and

“(II) document the consultation conducted under subclause (I) in the application submitted under clause (i).

“(4) Competitive basis.—The Associate Administrator shall award grants under the program on a competitive basis.

“(5) Federal share.—The Federal share of the cost of a trade expansion program carried out using a grant under the program shall be—

“(A) for a State that has a high trade volume, as determined by the Associate Administrator, not more than 65 percent; and

“(B) for a State that does not have a high trade volume, as determined by the Associate Administrator, not more than 75 percent.

“(6) Non-federal share.—The non-Federal share of the cost of a trade expansion program carried out using a grant under the program shall be comprised of not less than 50 percent cash and not more than 50 percent of indirect costs and in-kind contributions, except that no such costs or contributions may be derived from funds from any other Federal program.

“(7) Reports.—

“(A) Initial report.—Not later than 120 days after the date of enactment of this subsection, the Associate Administrator shall 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, which shall include—

“(i) a description of the structure of and procedures for the program;

“(ii) a management plan for the program; and

“(iii) a description of the merit-based review process to be used in the program.

“(B) Annual reports.—

“(i) In general.—The Associate Administrator shall publish on the website of the Administration an annual report regarding the program, which shall include—

“(I) the number and amount of grants made under the program during the preceding year;

“(II) a list of the States receiving a grant under the program during the preceding year, including the activities being performed with each grant;

“(III) the effect of each grant on the eligible small business concerns in the State receiving the grant;

“(IV) the total return on investment for each State; and

“(V) a description of best practices by States that showed high returns on investment and significant progress in helping more eligible small business concerns.

“(ii) Notice to congress.—On the date on which the Associate Administrator publishes a report under clause (i), the Associate Administrator shall notify the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives that the report has been published.

“(8) Reviews by inspector general.—

“(A) In general.—The Inspector General of the Administration shall conduct a review of—

“(i) the extent to which recipients of grants under the program are measuring the performance of the activities being conducted and the results of the measurements; and

“(ii) the overall management and effectiveness of the program.

“(B) Reports.—

“(i) Pilot program.—Not later than 6 months after the date of enactment of this subsection, the Inspector General of the Administration shall 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 the use of amounts made available under the State Trade and Export Promotion Grant Program under section 1207 of the Small Business Jobs Act of 2010 (15 U.S.C. 649b note).

“(ii) New step program.—Not later than 18 months after the date on which the first grant is awarded under this subsection, the Inspector General of the Administration shall 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 the review conducted under subparagraph (A).

“(9) Authorization of appropriations.—There is authorized to be appropriated to carry out the program $30,000,000 for each of fiscal years 2016 through 2020.”

“SEC. 2313A. STATE AND FEDERAL EXPORT PROMOTION COORDINATION WORKING GROUP.

“(a) Statement of Policy.—It is the policy of the United States to promote exports as an opportunity for small businesses. In exercising their powers and functions in order to advance that policy, all Federal agencies shall work constructively with State and local agencies engaged in export promotion and export financing activities.

“(b) Establishment.—The President shall establish a State and Federal Export Promotion Coordination Working Group (in this section referred to as the ‘Working Group’) as a subcommittee of the Trade Promotion Coordination Committee (in this section referred to as the ‘TPCC’).

“(c) Purposes.—The purposes of the Working Group are—

“(1) to identify issues related to the coordination of Federal resources relating to export promotion and export financing with such resources provided by State and local governments;

“(2) to identify ways to improve coordination with respect to export promotion and export financing activities through the strategic plan developed under section 2312(c);

“(3) to develop a strategy for improving coordination of Federal and State resources relating to export promotion and export financing, including methods to eliminate duplication of effort and overlapping functions; and

“(4) to develop a strategic plan for considering and implementing the suggestions of the Working Group as part of the strategic plan developed under section 2312(c).

“(d) Membership.—The Secretary of Commerce shall select the members of the Working Group, who shall include—

“(1) representatives from State trade agencies representing regionally diverse areas; and

“(2) representatives of the departments and agencies that are represented on the TPCC, who are designated by the heads of their respective departments or agencies to advise the head on ways of promoting the exportation of United States goods and services.”