[Congressional Record Volume 166, Number 204 (Thursday, December 3, 2020)]
[House]
[Pages H6078-H6079]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 PARITY FOR HUBZONE APPEALS ACT OF 2020

  Ms. VELAZQUEZ. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 8229) to require the Administrator of the Small Business 
Administration to issue a rule authorizing the Office of Hearings and 
Appeals to decide appeals relating to the status of HUBZone business 
concerns, and for other purposes.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 8229

       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 ``Parity for HUBZone Appeals 
     Act of 2020''.

     SEC. 2. AUTHORITY FOR THE OFFICE OF HEARINGS AND APPEALS TO 
                   DECIDE APPEALS RELATING TO QUALIFIED HUBZONE 
                   SMALL BUSINESS CONCERNS.

       Not later than 1 year after the date of the enactment of 
     this Act, the Administrator of the Small Business 
     Administration shall issue a rule authorizing the Office of 
     Hearings and Appeals of the Administration to decide all 
     appeals from formal protest determinations in connection with 
     the status of a concern as qualified HUBZone small business 
     concern (as such term is defined in section 31(b) of the 
     Small Business Act (15 U.S.C. 657a(b))).

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
New York (Ms. Velazquez) and the gentleman from Ohio (Mr. Chabot) each 
will control 20 minutes.
  The Chair recognizes the gentlewoman from New York.


                             General Leave

  Ms. VELAZQUEZ. Mr. Speaker, I ask unanimous consent that all Members 
may have 5 legislative days in which to revise and extend their remarks 
and to include extraneous material on the measure under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from New York?
  There was no objection.
  Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I rise in support of H.R. 8229, the Parity for HUBZone 
Appeals Act of 2020, introduced by the gentlewoman from American Samoa 
(Mrs. Radewagen) and the gentlewoman from Pennsylvania (Ms. Houlahan).
  H.R. 8229 will grant SBA's Office of Hearings and Appeals 
jurisdiction over appeals of HUBZone eligibility determinations. The 
Office of Hearings and Appeals provides independent quasi-judicial 
review of certain SBA program decisions. Under current law, the office 
decides appeals of eligibility determinations in the women-owned and 
service-disabled veteran-owned small business contracting programs, but 
it does not review appeals for the HUBZone program. That process is 
different.
  When a protest challenging a HUBZone designation is filed, SBA's 
HUBZone director will review and make a decision. If the decision is 
appealed, the head of the Office of Government Contracting and Business 
Development will review and render a decision, which is final.
  By shifting HUBZone eligibility appeals to the Office of Hearings and 
Appeals, H.R. 8229 achieves priority and uniformity in SBA's 
contracting programs. Moreover, it promotes transparency since the 
office's decisions are published.
  Mr. Speaker, I urge Members to support this legislation, and I 
reserve the balance of my time.
  Mr. CHABOT. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in support of H.R. 8229, the Parity for HUBZone 
Appeals Act of 2020.
  As we have heard from the chairwoman, the current appeals process for 
the HUBZone program raises several concerns, including questions of 
conflict of interest, lack of transparency, and lack of responsibility.
  The AA-GCBD plays a key leadership role within the organizational 
structure of the SBA and is primarily responsible for the supervision 
of all the SBA's various Federal contracting programs, including the 
HUBZone program.
  Unlike the AA-GCBD, the SBA's Office of Hearings and Appeals is a 
fully functioning independent organization unconnected to the SBA's 
Federal contracting programs, and OHA administrative judges are trained 
to hear exactly these types of matters.
  By moving HUBZone appeals from the AA-GCBD's purview to OHA through 
the passage of this bill, the AA-GCBD will be empowered to focus on its 
primary supervisory responsibilities while HUBZone small businesses 
will be able to receive impartial, fair, and knowledgeable treatment of 
their cases by OHA.
  H.R. 8229, this bill, makes a necessary correction in the way HUBZone 
appeals are conducted.
  I thank the gentlewoman from American Samoa (Mrs. Radewagen), our 
vice ranking member, as well as the gentlewoman from Pennsylvania (Ms. 
Houlahan) for their bipartisan leadership on this legislation--again, 
Republicans and Democrats working together on this committee.
  Mr. Speaker, I urge my colleagues to support this legislation.
  Mr. Speaker, I yield such time as she may consume to the gentlewoman 
from American Samoa (Mrs. Radewagen).
  Mrs. RADEWAGEN. Mr. Speaker, I thank Ranking Member Chabot for 
yielding time.
  Mr. Speaker, I rise in support of H.R. 8229, the Parity for HUBZone 
Appeals

[[Page H6079]]

Act of 2020. I thank Ms. Houlahan for her collaboration on this 
important legislation.
  SBA's various small business contracting programs support different 
types of entrepreneurs, from women and service-disabled veterans to 
minorities and the economically disadvantaged, by providing these 
businesses with special Federal contracting preferences.
  Whether a business holds a specific status is critical in determining 
whether that company is eligible to compete for these special contract 
opportunities. Not only does the business have a vested interest in 
obtaining and maintaining its status, but the Federal Government also 
has an interest in making sure these special contracts are not awarded 
to fraudulent firms. If a company is suspected to be ineligible for a 
status it claims to hold, an interested party can protest the firm's 
status.
  Currently, for Historically Underutilized Business Zone-qualified, or 
HUBZone-qualified, small businesses, the final arbiter of a firm's 
special HUBZone status is the Associate Administrator of the Office of 
Government Contracting and Business Development, or AA-GCBD. This 
differs significantly from SBA's other Federal contracting programs in 
which SBA's Office of Hearings and Appeals, or OHA, is the final 
decisionmaker of a firm's protested status.
  OHA, unlike the AA-GCBD, is an independent office of the SBA. Leaving 
the appeal decision to the AA-GCBD raises questions of conflict of 
interest, whereas housing that process at OHA will ensure the decision 
remains separate and independent from any influence.
  Furthermore, the AA-GCBD has many competing priorities and 
responsibilities in overseeing all the SBA's Federal contracting 
programs. In contrast, OHA administrative judges are primarily tasked 
with adjudicating similar types of appeals and, thus, are well trained 
and well versed in making educated decisions objectively and 
impartially. Thus, passage of this bill means that small businesses 
will have a greater chance of having a fair and knowledgeable 
assessment of their case.
  Finally, the AA-GCBD's appeals decisions are currently made in a 
vacuum. There is no visibility into the reasons why a decision was 
reached. In contrast, all of OHA's decisions are published online and 
easily searchable. These opinions are critical for small businesses to 
obtain a greater understanding of the rules surrounding their 
eligibility. Therefore, shifting the responsibility to hear HUBZone 
appeals to OHA will provide the public with much-needed guidance and 
transparency.
  In sum, H.R. 8229 will bring greater parity, fairness, and 
transparency between SBA's HUBZone program and its other Federal 
contracting programs.
  Mr. Speaker, I urge my colleagues to support this commonsense 
legislation.
  Mr. CHABOT. Mr. Speaker, I have no further speakers on my side, and I 
yield myself the balance of my time.
  Mr. Speaker, this is good legislation. It moves the ball forward. 
Moving the HUBZone appeals process to the OHA places small businesses 
that have a complaint about the program on equal footing with other 
appeals processes throughout the SBA, and that is a good thing.
  I want to, again, thank Mrs. Radewagen for her leadership on this 
particular legislation and Ms. Houlahan from Pennsylvania as well, and 
the chairwoman, as always, for working in a bipartisan manner.
  Mr. Speaker, I urge adoption of this bill, and I yield back the 
balance of my time.
  Ms. VELAZQUEZ. Mr. Speaker, I yield myself the balance of my time.
  Mr. Speaker, we all know consistent procedures in government foster a 
better understanding of the rules and improve overall agency 
effectiveness.
  H.R. 8229 furthers that ideal by providing the HUBZone program with 
parity and uniformity with the women-owned and the service-disabled 
veteran-owned programs.
  Furthermore, by making the Office of Hearings and Appeals the final 
arbiter of all protest eligibility determinations, H.R. 8229 
capitalizes on everything the office has to offer: subject matter 
expertise, efficiency, and transparency.
  I thank Mrs. Radewagen and Ms. Houlahan for working together on this 
bipartisan solution.
  Lastly, I would like to take a moment to thank the ranking member, 
Mr. Chabot, for his outstanding service on the Small Business 
Committee.
  Mr. Speaker, Mr. Chabot and I have led this committee together 
through four Congresses, each of us spending equal time as chair and 
ranking member. Throughout it all, he has been an incredible partner, 
working closely with me in good times and bad.
  Over the course of our tenure, we have shepherded scores of 
bipartisan bills through the House, giving small businesses better 
access to capital, counseling, and Federal contracts. We have held 
numerous oversight hearings to make sure SBA programs were operating 
effectively and efficiently for small businesses, regardless of which 
party held the White House. In sum, we worked very well together.

                              {time}  1600

  You may ask what is the secret to our success, especially during 
these polarizing times. And I will point to Representative Chabot, who 
is as committed to public service as I am. He puts politics aside and 
works with Democrats and Republicans alike to solve problems.
  When the pandemic struck, it hit small businesses particularly hard, 
and our committee was called to action. Small businesses that were once 
thriving were fighting for their very survival. Our committee was 
working day and night, trying to develop a bipartisan package in mere 
days that will provide economic relief to small businesses. These were 
trying economic times, and we needed to bring people together and act 
fast to rescue small businesses. It wasn't easy, but one thing was 
certain. I was fortunate to have Ranking Member Chabot by my side.
  Mr. Speaker, I am proud of the relief we have been able to deliver to 
our Main Street small businesses. I would also be remiss if I didn't 
mention Ranking Member Chabot's excellent staff, who have worked 
tirelessly with us. I thank Kevin Fitzpatrick, Jan Oliver, Joe Hartz, 
Rob Yavor, Vivian Ling, Delia Barr, Alison Kerman, and Rachel Emmons 
for their commitment and dedication. They have worked hand in glove 
with my staff to ensure hearings went well and the pandemic relief 
programs were working as intended.
  Mr. Speaker, I am saddened that Ranking Member Chabot will not be 
returning to the committee as ranking member in the next Congress. I 
will certainly miss our conversations during hearings and listening to 
the many unique ways his name is pronounced. I thought my name was 
tough.
  Steve, you will be sorely missed. Thank you for your leadership, 
dedication, and willingness to work across the aisle to make our world 
a little bit brighter. I wish you the very best in the next Congress.
  Mr. Speaker, I urge my colleagues to support H.R. 8229, and I yield 
back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentlewoman from New York (Ms. Velazquez) that the House suspend the 
rules and pass the bill, H.R. 8229.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill was passed.
  A motion to reconsider was laid on the table.

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