[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4420 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 4420

   To amend the Small Business Act with respect to misrepresentation 
  through the use of a pass-through business, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 12, 2010

  Mr. Sestak introduced the following bill; which was referred to the 
                      Committee on Small Business

_______________________________________________________________________

                                 A BILL


 
   To amend the Small Business Act with respect to misrepresentation 
  through the use of a pass-through business, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business Contracting 
Protection Act of 2010''.

SEC. 2. MISREPRESENTATION THROUGH USE OF A PASS-THROUGH BUSINESS.

    (a) Pass-through Business Defined.--Not later than 180 days after 
the date of enactment of this Act, the Administrator of the Small 
Business Administration shall issue regulations defining the term 
``pass-through business'' for purposes of section 16(d) of the Small 
Business Act (15 U.S.C. 645(d)), as amended by subsection (b) of this 
section. Such definition shall include one or more of the following as 
criteria for determining whether an entity is a pass-through business 
with respect to another business:
            (1) The business shares a location with such other 
        business.
            (2) The business shares ordering or personnel systems with 
        such other business.
            (3) An officer, director, principal, stockholder, managing 
        member, or key employee of the business participates in the 
        business decisions of such other business.
            (4) Equity interest in the business owned by such other 
        business.
            (5) The accounts receivable of the business is directly or 
        indirectly controlled by such other business.
            (6) The relationship with the business generates more than 
        50 percent of the income of such other business.
    (b) Penalties for Misrepresentation.--
            (1) Amendment.--Section 16(d)(1) of the Small Business Act 
        (15 U.S.C. 645(d)(1)) is amended by striking ``, in order'' and 
        inserting ``, including through the use of a pass-through 
        business, in order''.
            (2) Effective date.--The amendment made under paragraph (1) 
        shall take effect on the date that is 180 days after the date 
        of enactment of this Act.
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