[Congressional Record Volume 165, Number 181 (Wednesday, November 13, 2019)]
[House]
[Pages H8805-H8809]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
VERIFICATION ALIGNMENT AND SERVICE-DISABLED BUSINESS ADJUSTMENT ACT
Mr. SCHNEIDER. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 1615) 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,
as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 1615
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
[[Page H8806]]
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
[[Page H8807]]
(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.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Illinois (Mr. Schneider) and the gentleman from Ohio (Mr. Chabot) each
will control 20 minutes.
The Chair recognizes the gentleman from Illinois.
General Leave
Mr. SCHNEIDER. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days in which to revise and extend their remarks
and include extraneous material on the measure under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Illinois?
There was no objection.
Mr. SCHNEIDER. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I rise today in support of H.R. 1615, the Verification
Alignment and Service-Disabled Business Adjustment Act, or the VA-SBA
Act.
I want to first take this opportunity to thank Chairman Takano and
Ranking Member Roe of the Committee on Veterans' Affairs. This bill is
a culmination of years of collaboration to ensure we are doing right by
our Nation's veteran business owners. I thank the gentlemen for their
cooperation and recognize the staff of our respective committees, both
majority and minority, for seeing this effort through.
Mr. Speaker, considering how veteran-owned businesses increase
competition and solidify our industrial base, Congress created the
SBA's Service-Disabled Veteran-Owned Small Business, SDVOSB, program to
maximize their participation in the Federal marketplace.
In 2018, the Service-Disabled Veteran-Owned Small Business
procurement program awarded $20.6 billion to over 180,000 contracts.
Such awards accounted for approximately 4.27 percent of all contracts,
exceeding the 3 percent statutory goal.
While this accomplishment should be applauded, the structure and
resources of the program have not kept pace with the growth. Currently,
the Department of Veterans Affairs requires all participants to go
through a rigorous certification process. In contrast, the SBA allows
businesses to self-certify that they meet the regulatory threshold.
The problem with two certification processes is simple: It creates
confusion for business owners and contracting officers alike.
This bill harmonizes the two conflicting contracting programs by
eliminating the VA certification and transferring it to the SBA. It
also institutes a certification process under the SBA program to
prevent concerns of fraud and abuse.
I thank all the members of the respective committees who have
sponsored this bill, because it is certainly a step in the right
direction to eliminate duplication and confusion between the two
agencies. This bipartisan legislation will make it easier for the
veteran-owned business to do business with our government.
Mr. Speaker, I urge Members to support this bipartisan piece of
legislation, and I reserve the balance of my time.
House of Representatives,
Committee on Veterans' Affairs,
Washington, DC, November 4, 2019.
Hon. Nydia M. Velazquez,
Chairwoman, Committee on Small Business, House of
Representatives, Washington, DC.
Dear Chairwoman Velazquez: I am writing with respect to
H.R. 1615, the Verification Alignment and Service-Disabled
Business Adjustment Act. Thank you for consulting with the
Committee on Veterans' Affairs regarding the matters in H.R.
1615 that fall within the Committee's jurisdiction.
As a result of your consultation with us on this measure
and in order to expeditiously move the bill to the floor, I
forego further consideration of H.R. 1615. The Committee on
Veterans' Affairs takes this action with our mutual
understanding that we do not waive any jurisdiction over the
subject matter contained in this or similar legislation, and
the Committee will be appropriately consulted and involved as
the bill or similar legislation moves forward so that we may
address any remaining issues that fall within our
jurisdiction. Further, I request your support for the
appointment of an appropriate number of conferees from the
Committee on Veterans' Affairs during any House-Senate
conference involving this or similar legislation.
Finally, I would appreciate your response to this letter
confirming this understanding regarding H.R. 1615 and would
ask that a copy of our exchange of letters on this matter be
included in the Committee Report and the Congressional Record
during floor consideration of the measure. Thank you for the
cooperative spirit in which you have worked regarding this
matter and others between our respective committees.
Sincerely,
Mark Takano,
Chairman.
____
House of Representatives,
Committee on Small Business,
Washington, DC, November 5, 2019.
Hon. Mark Takano,
Chairman, Committee on Veterans' Affairs, House of
Representatives, Washington, DC.
Dear Chairman Takano: Thank you for your letter regarding
the Committee on Veterans' Affairs jurisdictional interest in
H.R. 1615, the ``Verification Alignment and Service-Disabled
Business Adjustment Act'' and your willingness to forego
consideration of H.R. 1615 by your committee. I agree that
the Committee on Veterans' Affairs has a valid jurisdictional
interest in certain provisions of H.R. 1615 and that the
Committee's jurisdiction will not be adversely affected by
your decision to forego consideration of H.R. 1615. As you
have requested, I will support your request for an
appropriate appointment of outside conferees from your
Committee in the event of a House-Senate conference on this
or similar legislation should such a conference be convened.
Finally, I will include a copy of your letter and this
response in the Committee Report and in the Congressional
Record during the floor consideration of this bill. Thank you
again for your cooperation.
Sincerely,
Nydia M. Velazquez,
Chairwoman.
Mr. CHABOT. Mr. Speaker, I yield myself such time as I may consume,
and I rise in support of H.R. 1615.
Before I speak on the bill, I want to thank the gentleman from
Mississippi (General Kelly) and the gentleman from Colorado (Mr.
Crow)--both veterans, by the way--for their leadership on this
important legislation and for their service to our country. We
appreciate it greatly.
So many of our Nation's heroes come home to become entrepreneurs, and
many choose to continue with their service to the country by entering
the Federal contracting space.
Federal contracting can be a confusing minefield of red tape and
bureaucracy, and it is up to us to make the process as easy as
possible.
[[Page H8808]]
Unfortunately, the process is complicated and rife with disparities.
In fact, there currently exists an unnecessary duplication of small
business programs at the SBA and the VA. Both operate under separate
and conflicting standards.
Veterans attempting to make sense of these two programs often feel
overwhelmed and frustrated, sometimes to the point where they decline
to join the Federal marketplace altogether.
This should not be the case. We need to encourage veteran
entrepreneurship by reducing barriers to entry, not creating more
confusion.
It is well past time that these two programs consolidate under a
single agency, the SBA, and that all rules and regulations governing
the Service-Disabled Veteran-Owned Small Business program are unified
for the benefit of our veteran entrepreneurs. H.R. 1615 takes that
critical step in the right direction.
Mr. Speaker, I thank both of these gentlemen for their leadership on
this. I urge my colleagues to support the bill, and I reserve the
balance of my time.
Mr. SCHNEIDER. Mr. Speaker, I yield as much time as he may consume to
the gentleman from Colorado (Mr. Crow), my friend and colleague.
Mr. CROW. Mr. Speaker, I rise today in support of the Verification
Alignment and Service-Disabled Business Adjustment Act, or the VA-SBA
Act.
I start by thanking my friend and colleague from Mississippi (Mr.
Kelly)--or, as a former Army captain myself, I like to call him General
Kelly--for his leadership and friendship and hard work on this bill as
well.
Veterans are uniquely qualified and have a valuable perspective as
they start and manage small businesses.
In my home State of Colorado, there are over 52,000 small businesses
owned by veterans that continue to give back to the country, the
community, and our economy every single day. These veteran-owned
businesses have also proven to go above and beyond to hire other
veterans, including those who have been injured in the line of duty.
Currently, service-disabled veterans who want to start a business
have to go through a complicated, confusing, and redundant application
process through both the Department of Veterans Affairs and the Small
Business Administration.
The VA-SBA Act removes duplication in regulation and cuts red tape to
ensure the Federal Government can provide the support and resources
that our veterans deserve. It also ensures that data on service-
disabled veteran-owned businesses and veteran-owned small businesses is
located at the Small Business Administration, which is uniquely
equipped to serve veterans who want to start small businesses.
This bill will greatly ease the burden on our veteran-owned small
businesses by cutting unnecessary red tape.
I thank Chairwoman Velazquez and Ranking Member Chabot, as well as
Mr. Schneider and all my colleagues on the Committee on Small Business.
This truly is an example of bipartisan cooperation, as we have all come
together to do the right thing by our veterans and our small
businesses, a true win-win for the country and for our communities.
Mr. Speaker, I urge all of my colleagues to support this bill.
Mr. CHABOT. Mr. Speaker, I yield such time as he may consume to the
gentleman from Mississippi (Mr. Kelly), General Trent Kelly.
Mr. KELLY of Mississippi. Mr. Speaker, I thank Chairwoman Velazquez
and Ranking Member Chabot for working to bring the VA-SBA Act to the
House floor. I also thank my friend and cosponsor from Colorado (Mr.
Crow) for working on this very important legislation. I thank all of
them for being champions of both our veterans and our small businesses
all across America.
As we have heard in the hearings held in the Committee on Small
Business, the VA proactively verifies service-disabled veteran-owned
small businesses while the SBA allows business owners to self-certify.
This process creates inconsistent outcomes, such as a business
qualifying as a service-disabled veteran business for VA contracts but
not other Federal agency contracts.
While the SBA-certified businesses' awards are subject to scrutiny,
the lack of a front-end verification leaves the door open for fraud and
abuse.
We have already made significant strides in the right direction. The
National Defense Authorization Act for fiscal year 2017 instructed the
SBA and VA to unify the definitions for service-disabled veteran-owned
small businesses and began moving regulatory responsibility from the VA
to the SBA. Additionally, this administration has made substantial
improvements in streamlining certifications for small business Federal
procurement programs.
The VA-SBA Act marks the next significant step towards unification of
the two programs under one umbrella at the SBA and reduces red tape and
confusion for veteran small business owners.
Mr. Speaker, I thank my colleagues for supporting this bill.
Mr. SCHNEIDER. Mr. Speaker, I continue to reserve the balance of my
time.
Mr. CHABOT. Mr. Speaker, I yield such time as she may consume to the
gentlewoman from Puerto Rico (Miss Gonzalez-Colon).
Miss GONZALEZ-COLON of Puerto Rico. Mr. Speaker, today I rise in full
support of H.R. 1615, known as the VA-SBA Act of 2019, introduced by my
dear friend, General Kelly from Mississippi.
Why this bill is important for me: in Puerto Rico, we do have more
than 100,000 veterans registered by the VA system.
Our men and women in uniform are an invaluable asset during their
time of service and upon separating from the Armed Forces as well. One
of the main challenges upon retiring and adjusting to life as a
civilian is actually securing employment.
Many decide to open and operate their own business, employing the
community and generating robust gains for our economy. According to the
Small Business Administration, close to 2.5 million businesses in the
United States are minority-owned by veterans, with a total annual
revenue of over $1 trillion--and Puerto Rico is not a part of these
statistics.
Yet, there are additional issues to consider, and that is the reason
this bill is presented today. Both the Department of Veterans Affairs
and the Small Business Administration are involved in the process of
certifying American service-disabled veteran-owned businesses.
These businesses have the option to self-certify with the SBA for
contracting purposes with the Federal Government, but, additionally,
the Veterans Affairs Administration has its own process for certifying
these same businesses through a more rigorous evaluation for Federal
contracts within the VA.
This is another hardship for many of those veterans. Having two paths
for what is essentially the same outcome can be confusing for service-
disabled veteran business owners and creates an opportunity for fraud,
waste, and abuse.
This bill will help rectify this problem by streamlining the process
and making clear certification requirements for service-disabled
veteran-owned small businesses and shifting this responsibility to the
Small Business Administration, which has the technical expertise to
administer small business programs and properly work with these cases.
By releasing the VA from this task, we help eliminate inconsistencies
in the certification process and previous loopholes that impact Federal
contracting and also allow the VA to focus on their main mission. We
also help focus the VA's attention to its core mission of administering
the healthcare services for our veterans.
Mr. Speaker, I am a proud original cosponsor of this bill, and I
think we should all vote for it.
Mr. CHABOT. Mr. Speaker, it is vitally important to reduce the red
tape and bureaucracy our Nation's heroes endure just to try to contract
with the Federal Government.
There currently exists an unnecessary duplication of programs at the
SBA and the VA which operate under separate and conflicting standards.
This bill is a step in the right direction to eliminate some of that
red tape for our Nation's veterans.
Mr. Speaker, I urge my colleagues to support the bill, and I yield
back the balance of my time.
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Mr. SCHNEIDER. Mr. Speaker, I yield myself such time as I may
consume.
As the largest purchaser of goods and services in the world, the
Federal Government is in a unique position to support veteran-owned
businesses, yet navigating this process remains complicated to many
veteran entrepreneurs.
One of the most challenging obstacles for veteran-owned businesses is
getting certified. This first step toward contracting with the Federal
Government is the most important, but also the most complex. This is
largely due to the fact that the SBA established its own program, which
applies government-wide, and the VA administrators established their
own program as well.
Although the two programs share the same goal, each has its own
participation requirements. Creating more confusion is the fact that
firms can self-certify for the SBA programs, ones verified by the VA
may not necessarily be found eligible to receive an SBA set-aside
contract, and vice versa.
Coordinating certifications between the SBA and the VA can allow the
Federal Government to reap the benefits of goods and services provided
by veteran-owned businesses.
Again, I would like to thank Chairman Takano and Ranking Member Roe.
Finally, I commend the gentleman from Mississippi (Mr. Kelly) for
leading this long effort and continuing to keep the needs of our
veteran business owners in mind, as well as my colleague from Colorado
(Mr. Crow).
Mr. Speaker, I urge my colleagues to support this bill, and I yield
back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Illinois (Mr. Schneider) that the House suspend the
rules and pass the bill, H.R. 1615, as amended.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
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