[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1615 Engrossed in House (EH)]
<DOC>
116th CONGRESS
1st Session
H. R. 1615
_______________________________________________________________________
AN ACT
To transfer the responsibility of verifying small business concerns
owned and controlled by veterans or service-disabled veterans to the
Small Business Administration, 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Verification
Alignment and Service-disabled Business Adjustment Act'' or the ``VA-
SBA Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Transfer date.
Sec. 3. Amendment to and transfer of veteran-owned and service-disabled
veteran-owned business database.
Sec. 4. Additional requirements for database.
Sec. 5. Procurement program for small business concerns owned and
controlled by service-disabled veterans.
Sec. 6. Certification for small business concerns owned and controlled
by veterans.
Sec. 7. Status of self-certified small business concerns owned and
controlled by service-disabled veterans.
Sec. 8. Transfer of the Center for Verification and Evaluation of the
Department of Veterans Affairs to the Small
Business Administration.
Sec. 9. Report.
Sec. 10. Determination of budgetary effects.
SEC. 2. TRANSFER DATE.
For purposes of this Act, the term ``transfer date'' means the date
that is 2 years after the date of enactment of this Act, except that
such date may be extended an unlimited number of times by a period of
not more than 6 months if the Administrator of the Small Business
Administration and the Secretary of Veterans Affairs jointly issue a
notice to Congress and the Law Revision Counsel of the House of
Representatives containing--
(1) a certification that such extension is necessary;
(2) the rationale for and the length of such extension; and
(3) a plan to comply with the requirements of this Act
within the timeframe of the extension.
SEC. 3. AMENDMENT TO AND TRANSFER OF VETERAN-OWNED AND SERVICE-DISABLED
VETERAN-OWNED BUSINESS DATABASE.
(a) Amendment of Veteran-Owned and Service-Disabled Veteran-Owned
Business Database.--Effective on the transfer date, section 8127 of
title 38, United States Code, is amended--
(1) in subsection (e)--
(A) by striking ``the Secretary'' and inserting
``the Administrator''; and
(B) by striking ``subsection (f)'' and inserting
``section 36 of the Small Business Act'';
(2) in subsection (f)--
(A) by striking ``the Secretary'' each place such
term appears, other than in the last place such term
appears under paragraph (2)(A), and inserting ``the
Administrator'';
(B) in paragraph (1), by striking ``small business
concerns owned and controlled by veterans with service-
connected disabilities'' each place such term appears
and inserting ``small business concerns owned and
controlled by service-disabled veterans'';
(C) in paragraph (2)--
(i) in subparagraph (A), by striking ``to
access'' and inserting ``to obtain from the
Secretary of Veterans Affairs''; and
(ii) by striking subparagraph (B) and
inserting the following:
``(B) For purposes of this subsection--
``(i) the Secretary of Veterans Affairs shall--
``(I) verify an individual's status as a veteran or
a service-disabled veteran; and
``(II) establish a system to permit the
Administrator to access, but not alter, such
verification; and
``(ii) the Administrator shall verify--
``(I) the status of a business concern as a small
business concern; and
``(II) the ownership and control of such business
concern.
``(C) The Administrator may not certify a concern under subsection
(b) or section 36A if the Secretary of Veterans Affairs cannot provide
the verification described under subparagraph (B)(i)(I).'';
(D) by striking paragraphs (4) and (7);
(E) by redesignating paragraphs (5) and (6) as
paragraphs (4) and (5), respectively, and redesignating
paragraph (8) as paragraph (6);
(F) in paragraph (4), as so redesignated, by
striking ``The Secretary'' and inserting ``The
Administrator''; and
(G) in paragraph (6), as so redesignated--
(i) in subparagraph (A)--
(I) by striking ``verify the status
of the concern as a small business
concern or the ownership or control of
the concern'' and inserting ``certify
the status of the concern as a small
business concern owned and controlled
by veterans (under section 36A) or a
small business concern owned and
controlled by service-disabled veterans
(under section 36(g))''; and
(II) by striking ``verification''
and inserting ``certification'';
(ii) in subparagraph (B)--
(I) in clause (i), by striking
``small business concern owned and
controlled by veterans with service-
connected disabilities'' and inserting
``small business concern owned and
controlled by service-disabled
veterans''; and
(II) in clause (ii)--
(aa) by amending subclause
(I) to read as follows:
``(I) the Secretary of Veterans Affairs or the
Administrator; or''; and
(bb) in subclause (II), by
striking ``the contracting
officer of the Department'' and
inserting ``the applicable
contracting officer''; and
(iii) by striking subparagraph (C);
(3) by redesignating subsection (k) (relating to
definitions) as subsection (l);
(4) by inserting after subsection (j) (relating to annual
reports) the following:
``(k) Annual Transfer for Certification Costs.--For each fiscal
year, the Secretary of Veterans Affairs shall reimburse the
Administrator in an amount necessary to cover any cost incurred by the
Administrator for certifying small business concerns owned and
controlled by veterans that do not qualify as small business concerns
owned and controlled by service-disabled veterans for the Secretary for
purposes of this section and section 8128 of this title. The
Administrator is authorized to accept such reimbursement. The amount of
any such reimbursement shall be determined jointly by the Secretary and
the Administrator and shall be provided from fees collected by the
Secretary under multiple-award schedule contracts. Any disagreement
about the amount shall be resolved by the Director of the Office of
Management and Budget.''; and
(5) subsection (l) (relating to definitions), as so
redesignated, by adding at the end the following:
``(4) The term Administrator means the Administrator of the
Small Business Administration.''.
(b) Transfer of Requirements Relating to Database to the Small
Business Act.--Effective on the transfer date, subsection (f) of
section 8127 of title 38, United States Code (as amended by subsection
(a)), is transferred to section 36 of the Small Business Act (15 U.S.C.
657f), inserted so as to appear after subsection (e).
(c) Conforming Amendments.--The following amendments shall take
effect on the transfer date:
(1) Small business act.--Section 3(q)(2)(C)(i)(III) of the
Small Business Act (15 U.S.C. 632(q)(2)(C)(i)(III)) is amended
by striking ``section 8127(f) of title 38, United States Code''
and inserting ``section 36''.
(2) Title 38.--Section 8128 of title 38, United States
Code, is amended by striking ``section 8127(f) of this title''
and inserting ``section 36 of the Small Business Act''.
SEC. 4. ADDITIONAL REQUIREMENTS FOR DATABASE.
(a) Administration Access to Database Before the Transfer Date.--
During the period between the date of the enactment of this Act and the
transfer date, the Secretary of Veterans Affairs shall provide the
Administrator of the Small Business Administration with access to the
contents of the database described under section 8127(f) of title 38,
United States Code.
(b) Rule of Construction.--Nothing in this Act or the amendments
made by this Act may be construed--
(1) as prohibiting the Administrator of the Small Business
Administration from combining the contents of the database
described under section 8127(f) of title 38, United States
Code, with other databases maintained by the Administration; or
(2) as requiring the Administrator to use any system or
technology related to the database described under section
8127(f) of title 38, United States Code, on or after the
transfer date to comply with the requirement to maintain a
database under subsection (f) of section 36 of the Small
Business Act (as transferred pursuant to section 3(b) of this
Act).
(c) Recognition of the Issuance of Joint Regulations.--The date
specified under section 1832(e) of the National Defense Authorization
Act for Fiscal Year 2017 (15 U.S.C. 632 note) shall be deemed to be
October 1, 2018.
SEC. 5. PROCUREMENT PROGRAM FOR SMALL BUSINESS CONCERNS OWNED AND
CONTROLLED BY SERVICE-DISABLED VETERANS.
(a) Procurement Program for Small Business Concerns Owned and
Controlled by Service-Disabled Veterans.--Section 36 of the Small
Business Act (15 U.S.C. 657f) is amended--
(1) by striking subsections (d) and (e);
(2) by redesignating subsections (a), (b), and (c) as
subsections (c), (d), and (e) respectively;
(3) by inserting before subsection (c), as so redesignated,
the following:
``(a) Contracting Officer Defined.--For purposes of this section,
the term `contracting officer' has the meaning given such term in
section 2101 of title 41, United States Code.
``(b) Certification of Small Business Concerns Owned and Controlled
by Service-Disabled Veterans.--With respect to a procurement program or
preference established under this Act that applies to prime
contractors, the Administrator shall--
``(1) certify the status of the concern as a `small
business concern owned and controlled by service-disabled
veterans'; and
``(2) require the periodic recertification of such
status.'';
(4) in subsection (d), as so redesignated, by striking
``and that the award can be made at a fair market price'' and
inserting ``, that the award can be made at a fair market
price, and if each concern is certified by the Administrator as
a small business concern owned and controlled by service-
disabled veterans''; and
(5) by adding at the end the following:
``(g) Certification Requirement.--Notwithstanding subsection (c), a
contracting officer may only award a sole source contract to a small
business concern owned and controlled by service-disabled veterans or a
contract on the basis of competition restricted to small business
concerns owned and controlled by service-disabled veterans if such a
concern is certified by the Administrator as a small business concern
owned and controlled by service-disabled veterans.
``(h) Enforcement; Penalties.--
``(1) Verification of eligibility.--In carrying out this
section, the Administrator shall establish procedures relating
to--
``(A) the filing, investigation, and disposition by
the Administration of any challenge to the eligibility
of a small business concern to receive assistance under
this section (including a challenge, filed by an
interested party, relating to the veracity of a
certification made or information provided to the
Administration by a small business concern under
subsection (b)); and
``(B) verification by the Administrator of the
accuracy of any certification made or information
provided to the Administration by a small business
concern under subsection (b).
``(2) Examinations.--
``(A) Examination of applicants.--The procedures
established under paragraph (1) shall provide for a
program of examinations by the Administrator of any
small business concern making a certification or
providing information to the Administrator under
subsection (b), to determine the veracity of any
statements or information provided as part of such
certification or otherwise provided under subsection
(b).
``(B) Examination of certified concerns.--The
procedures established under paragraph (1) shall
provide for the examination of risk-based samples of
small business concerns certified under subsection (b),
or of any small business concern that the Administrator
believes poses a particular risk or with respect to
which the Administrator receives specific and credible
information alleging that the small business concern no
longer meets eligibility requirements to be certified
as a small business concern owned and controlled by
service-disabled veterans.
``(3) Penalties.--In addition to the penalties described in
section 16(d), any small business concern that is determined by
the Administrator to have misrepresented the status of that
concern as a small business concern owned and controlled by
service-disabled veterans for purposes of subsection (b), shall
be subject to--
``(A) section 1001 of title 18, United States Code;
``(B) sections 3729 through 3733 of title 31,
United States Code; and
``(C) section 8127(g) of title 38, United States
Code.
``(i) Provision of Data.--Upon the request of the Administrator,
the head of any Federal department or agency shall promptly provide to
the Administrator such information as the Administrator determines to
be necessary to carry out subsection (b) or to be able to certify the
status of the concern as a small business concern owned and controlled
by veterans under section 36A.''.
(b) Penalties for Misrepresentation.--Section 16 of the Small
Business Act (15 U.S.C. 645) is amended--
(1) in subsection (d)(1)--
(A) by striking ``, a'' and inserting ``, a `small
business concern owned and controlled by service-
disabled veterans', a `small business concern owned and
controlled by veterans', a''; and
(B) in paragraph (A), by striking ``9, 15, or 31''
and inserting ``8, 9, 15, 31, 36, or 36A''; and
(2) in subsection (e), by striking ``, a'' and inserting
``, a `small business concern owned and controlled by service-
disabled veterans', a `small business concern owned and
controlled by veterans', a''.
SEC. 6. CERTIFICATION FOR SMALL BUSINESS CONCERNS OWNED AND CONTROLLED
BY VETERANS.
The Small Business Act (15 U.S.C. 631 et seq.) is amended by
inserting after section 36 the following new section:
``SEC. 36A. CERTIFICATION OF SMALL BUSINESS CONCERNS OWNED AND
CONTROLLED BY VETERANS.
``(a) In General.--With respect to the program established under
section 8127 of title 38, United States Code, the Administrator shall--
``(1) certify the status of the concern as a `small
business concern owned and controlled by veterans'; and
``(2) require the periodic recertification of such status.
``(b) Enforcement; Penalties.--
``(1) Verification of eligibility.--In carrying out this
section, the Administrator shall establish procedures relating
to--
``(A) the filing, investigation, and disposition by
the Administration of any challenge to the eligibility
of a small business concern to receive assistance under
this section (including a challenge, filed by an
interested party, relating to the veracity of a
certification made or information provided to the
Administration by a small business concern under
subsection (a)); and
``(B) verification by the Administrator of the
accuracy of any certification made or information
provided to the Administration by a small business
concern under subsection (a).
``(2) Examination of applicants.--The procedures
established under paragraph (1) shall provide for a program of
examinations by the Administrator of any small business concern
making a certification or providing information to the
Administrator under subsection (a), to determine the veracity
of any statements or information provided as part of such
certification or otherwise provided under subsection (a).
``(3) Penalties.--In addition to the penalties described in
section 16(d), any small business concern that is determined by
the Administrator to have misrepresented the status of that
concern as a small business concern owned and controlled by
veterans for purposes of subsection (a), shall be subject to--
``(A) section 1001 of title 18, United States Code;
``(B) sections 3729 through 3733 of title 31,
United States Code; and
``(C) section 8127(g) of title 38, United States
Code.''.
SEC. 7. STATUS OF SELF-CERTIFIED SMALL BUSINESS CONCERNS OWNED AND
CONTROLLED BY SERVICE-DISABLED VETERANS.
(a) In General.--Notwithstanding any other provision of law, any
small business concern that self-certified as a small business concern
owned and controlled by service-disabled veterans shall--
(1) if the concern files a certification application with
the Administrator of the Small Business Administration before
the end of the 1-year period beginning on the transfer date,
maintain such self-certification until the Administrator makes
a determination with respect to such certification; and
(2) if the concern does not file such a certification
application before the end of the 1-year period beginning on
the transfer date, lose, at the end of such 1-year period, any
self-certification of the concern as a small business concern
owned and controlled by service-disabled veterans.
(b) Non-Applicability to Department of Veterans Affairs.--
Subsection (a) shall not apply to participation in contracts (including
subcontracts) with the Department of Veterans Affairs.
(c) Notice.--The Administrator shall notify any small business
concern that self-certified as a small business concern owned and
controlled by service-disabled veterans about the requirements of this
Act, including the transfer date and any extension of such transfer
date made pursuant to section 2, and make such notice publicly
available, on--
(1) the date of the enactment of this Act; and
(2) the date on which an extension described under section
2 is approved.
SEC. 8. TRANSFER OF THE CENTER FOR VERIFICATION AND EVALUATION OF THE
DEPARTMENT OF VETERANS AFFAIRS TO THE SMALL BUSINESS
ADMINISTRATION.
(a) Abolishment.--The Center for Verification and Evaluation of the
Department of Veterans Affairs defined under section 74.1 of title 38,
Code of Federal Regulations, is abolished effective on the transfer
date.
(b) Transfer of Functions.--All functions that, immediately before
the effective date of this section, were functions of the Center for
Verification and Evaluation shall--
(1) on the date of enactment of this Act, be functions of
both the Center for Verification and Evaluation and the Small
Business Administration, except that the Small Business
Administration shall not have any authority to carry out any
verification functions of the Center for Verification and
Evaluation; and
(2) on the transfer date, be functions of the Small
Business Administration.
(c) Transfer of Assets.--So much of the personnel, property, and
records employed, used, held, available, or to be made available in
connection with a function transferred under this section shall be
available to the Small Business Administration at such time or times as
the President directs for use in connection with the functions
transferred.
(d) References.--Any reference in any other Federal law, Executive
order, rule, regulation, or delegation of authority, or any document of
or pertaining to a function of the Center for Verification and
Evaluation that is transferred under this section is deemed, after the
transfer date, to refer to the Small Business Administration.
SEC. 9. REPORT.
Not later than the end of the 1-year period beginning on the date
of the enactment of this Act, and every 6 months thereafter until the
transfer date, the Administrator of the Small Business Administration
and Secretary of Veterans Affairs shall jointly issue a report to the
Committees on Appropriations, Small Business, and Veterans' Affairs of
the House of Representatives and the Committees on Appropriations,
Small Business and Entrepreneurship, and Veterans' Affairs of the
Senate on the planning for the transfer of functions and property
required under this Act and the amendments made by this Act on the
transfer date. Such report shall include--
(1) whether and how the verification database and
operations of the Center for Verification and Evaluation of the
Department of Veterans Affairs will be incorporated into the
existing certification database of the Small Business
Administration;
(2) projections for the numbers and timing, in terms of
fiscal year, of--
(A) already verified concerns that will come up for
recertification; and
(B) self-certified concerns that are expected to
apply for certification;
(3) an explanation of how outreach to veteran service
organizations, the service-disabled veteran-owned and veteran-
owned small business community, and other stakeholders will be
conducted; and
(4) other pertinent information determined by the
Administrator and the Secretary.
SEC. 10. DETERMINATION OF BUDGETARY EFFECTS.
The budgetary effects of this Act, for the purpose of complying
with the Statutory Pay-As-You-Go-Act of 2010, shall be determined by
reference to the latest statement titled ``Budgetary Effects of PAYGO
Legislation'' for this Act, submitted for printing in the Congressional
Record by the Chairman of the House Budget Committee, provided that
such statement has been submitted prior to the vote on passage.
Passed the House of Representatives November 13, 2019.
Attest:
Clerk.
116th CONGRESS
1st Session
H. R. 1615
_______________________________________________________________________
AN ACT
To transfer the responsibility of verifying small business concerns
owned and controlled by veterans or service-disabled veterans to the
Small Business Administration, and for other purposes.