[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6370 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 6370

   To amend the Small Business Act to prevent fraud in transactions 
               involving certain small business concerns.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 29, 2010

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

_______________________________________________________________________

                                 A BILL


 
   To amend the Small Business Act to prevent fraud in transactions 
               involving certain small business concerns.

    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 Procurement Integrity 
Act of 2010''.

SEC. 2. IN GENERAL.

    Section 16 of the Small Business Act (15 U.S.C. 645) is amended as 
follows:
            (1) Small business procurement fraud.--In subsection 
        (d)(1)--
                    (A) by inserting after ``a `small business concern 
                owned and controlled by socially and economically 
                disadvantaged individuals','' the following: ``a `small 
                business concern owned and controlled by service-
                disabled veterans',''; and
                    (B) by striking subparagraphs (A) through (D) and 
                inserting the following:
                    ``(A) prime contract, subcontract, grant, or 
                cooperative agreement to be awarded pursuant to section 
                8(a), 8(m), 9, 15, 31, or 36;
                    ``(B) subcontract that is to be included as part or 
                all of a goal contained in a subcontracting plan 
                required pursuant to section 8(d); or
                    ``(C) prime contract or subcontract to be awarded 
                as a result, or in furtherance, of any other provision 
                of Federal law that specifically references section 
                8(d) for a definition of program eligibility;
        shall be subject to the penalties and remedies described in 
        paragraph (2).''.
            (2) False claims act application.--In subsection (d)(2)--
                    (A) in subparagraph (C), by striking the ``and'' at 
                the end;
                    (B) in subparagraph (D), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(E) be subject to penalties and remedies imposed 
                pursuant to sections 3729 through 3733 of title 31, 
                United States Code.''.
            (3) Misrepresentation of status.--In subsection (e)--
                    (A) by inserting after ```small business concern 
                owned and controlled by socially and economically 
                disadvantaged individuals','' the following: ``a `small 
                business concern owned and controlled by service-
                disabled veterans','';
                    (B) by inserting ``grant, cooperative agreement,'' 
                before ``prime contract''; and
                    (C) by inserting a comma after ``prime contract''.
            (4) Use of ineligible businesses; determination of 
        losses.--By adding at the end the following:
    ``(g) Use of Ineligible Businesses.--
            ``(1) In general.--Whoever knowingly uses the services of 
        another business to perform a greater percentage of work under 
        a contract than is permitted by such regulations issued by the 
        Administration, or attempts or conspires to do so, shall be 
        subject to the penalties and remedies described in subsection 
        (d)(2).
            ``(2) Certification deemed.--By submitting a request for 
        payment on a contract that is awarded pursuant to section 8(a), 
        8(m), 15, 31, or 36, a contractor shall be deemed to certify 
        that it has complied with regulations issued by the 
        Administration governing the percentage of work that the 
        contractor must perform on such contract unless the contractor 
        affirmatively states in writing that it did not comply with the 
        percentage of work requirement.
    ``(h) Determination of Losses.--For purposes of subsection 
(d)(2)(E), the loss to the Government and the damages sustained by the 
Government, shall be deemed to be the amount of money that the 
Government has paid to the party that received the prime contract, 
subcontract, grant, or cooperative agreement enumerated in subsection 
(d), or the portion of the Government's payments under such a prime 
contract that were directed towards such a subcontract. No credit for 
the fair market value of the property or services provided to the 
Government shall be applied against such loss or damages.''.

SEC. 3. CERTIFICATION OF STATUS.

    Section 3(q)(1) of the Small Business Act (15 U.S.C. 632(q)(1)) is 
amended by inserting before the period at the end the following: ``and 
who possesses a disability rating letter issued by the Department of 
Veteran Affairs, establishing a service connected rating between 0 and 
100 percent, a disability determination from the Department of Defense, 
or such other documentation as the Administrator shall by rule require 
to establish proof of such disability''.
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