[Congressional Record (Bound Edition), Volume 153 (2007), Part 20]
[House]
[Pages 28624-28644]
[From the U.S. Government Publishing Office, www.gpo.gov]




          SMALL BUSINESS CONTRACTING PROGRAM IMPROVEMENTS ACT

  The SPEAKER pro tempore. Pursuant to House Resolution 773 and rule 
XVIII, the Chair declares the House in the Committee of the Whole House 
on the state of the Union for the consideration of the bill, H.R. 3867.

                              {time}  1203


                     In the Committee of the Whole

  Accordingly, the House resolved itself into the Committee of the 
Whole House on the state of the Union for the consideration of the bill 
(H.R. 3867) to update and expand the procurement of the Small Business 
Administration, and for other purposes, with Mr. Holden in the chair.
  The Clerk read the title of the bill.
  The CHAIRMAN. Pursuant to the rule, the bill is considered read the 
first time.
  The gentlewoman from New York (Ms. Velazquez) and the gentleman from 
Ohio (Mr. Chabot) each will control 30 minutes.
  The Chair recognizes the gentlewoman from New York.
  Ms. VELAZQUEZ. Mr. Chairman, I yield myself such time as I may 
consume.
  Mr. Chairman, in recent years, the Federal marketplace has seen 
phenomenal growth. However, while procurement opportunities are 
increasing, agencies are failing to meet their small business, women, 
service-disabled veterans, minority and low-income contracting goals. 
This has not only cost small businesses billions of dollars in lost 
opportunities but deprives the government of a valuable supplier.
  Our Nation's entrepreneurs play an important role in the procurement 
system, providing diversity, competition, and ensuring we get the best 
value for the taxpayers' dollar. To help them get a start, there is an 
array of contributing programs offering technical assistance, 
purchasing flexibility and targeted benefits. Unfortunately, due to 
legislative neglect, under funding and mismanagement by several 
administrations, the programs have fallen far short of their full 
potential, leaving many small businesses outside of the Federal 
marketplace.
  The Small Business Contracting Program Improvements Act, introduced 
by myself and Representative Mary Fallin, will change that by making 
important improvements to women, minority, HUBZone and service-disabled 
veteran contracting programs. H.R. 3867 will immediately implement the 
Women's Procurement Program that has languished in the current 
administration's endless delays. It also updates the economic criteria 
for the 8(a) program, reflecting current fiscal realities. The last 
time Congress addressed the 8(a) program was almost 20 years ago, when 
a gallon of gas was 90 cents and the average cost of a home was less 
than $90,000. For too long we have forced minority businesses to 
operate under antiquated financial standards that in many cases were 
simply setting them up to fail.
  Most importantly, this legislation will give our service-disabled 
veterans top priority when it comes to contracting. For those men and 
women returning from Iraq and Afghanistan, many with life-altering 
injuries, this bill will provide the tools to start a new endeavor and 
begin a new life. These changes would go a long way to addressing many 
of the program's shortcomings that have frustrated our Nation's small 
business owners.
  Mr. Chairman, H.R. 3867 also fights fraud in the Federal marketplace. 
Contracting opportunities are a privilege, not a right. The Small 
Business Contracting Improvement Act makes that clear. For the first 
time, we are imposing a business code of conduct on all participants, 
requiring the Federal

[[Page 28625]]

Government to verify that individuals are who they claim and empowering 
small firms to police their own programs. This will restore integrity 
to these critical programs.
  Through modernizing programs and increasing accountability, H.R. 3867 
brings SBA's contracting programs into the 21st century. It is for this 
reason that this legislation has attracted remarkably broad support, 
including the National Federation of Independent Business, the 
Associated General Contractors, the American Legion, Veterans of 
Foreign Wars, AMVETS, the U.S. Hispanic Chamber of Commerce, the 
National Black Chamber of Commerce, the U.S. Women's Chamber of 
Commerce, the International Franchise Association, as well as the 
National Defense Industrial Association and the Aerospace Industries 
Association.
  This is a measured approach that balances the need to give program 
flexibility within the realities of current agency buying strategies. 
It is good for small business, good for the agency, and, most 
importantly, good for taxpayers.
  I urge my colleagues to support this legislation.
  Mr. Chairman, I reserve the balance of my time.
  Mr. CHABOT. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, I rise in opposition to H.R. 3867, the Small Business 
Contracting Program Improvements Act. I strongly support the provisions 
in the bill that help those Americans, veterans of our Armed Forces, 
who have provided the great sacrifices to defend our freedom and our 
way of life. However, there are other provisions that are sufficiently 
problematic that makes it impossible for me to support the overall 
bill.
  In 1997, Congress established the Historically Underutilized Business 
Zone, or HUBZone program. The program is designed to assist areas of 
low income and high unemployment by providing incentives for government 
contractors to relocate in these areas and expand their operations. By 
making it easier for small businesses located in HUBZones to win 
Federal contracts, Congress expected more government contractors to 
relocate in these areas and provide an important component to their 
revitalization.
  As anyone who has traveled through many urban and rural districts 
realizes, they have a large number of HUBZones. Unfortunately, H.R. 
3867 could make it more difficult for HUBZone firms to win government 
contracts and thereby detract from the ability of this program to help 
revitalize urban and rural areas that need greater economic 
development.
  Mr. Chairman, while I concur with the Chair of the committee that we 
need to ensure that only firms eligible for the HUBZone program 
participate, it is unnecessary to take punitive action against HUBZone 
firms as a result of a few bad actors. I am sure that if we scrutinize 
each of the procurement programs, we could find a few bad actors in 
each. That justifies taking appropriate legal action against the bad 
actors. It does not, in our view, necessitate punishing the firms that 
complied with the letter and spirit of the law.
  It also is important to note that a number of the issues raised in 
this legislation are being addressed by the administrator of the SBA. I 
certainly understand the frustration that Members of Congress have when 
the executive branch does not implement legislation in a timely manner. 
Nevertheless, one aspect of this bill involves a program that has not 
been implemented for 7 years. While that normally would suggest further 
legislative action, the administrator, we believe, is doing everything 
possible at this point to issue rules, a process that can take time. In 
addition, the program is the subject of a lawsuit in which the 
plaintiffs have not sought any subsequent court action for nearly 2 
years since the Federal Court ruled that the SBA violated the 
Administrative Procedure Act and failed to implement the program.
  Mr. Chairman, I also would point out that the bill as reported out of 
committee, in our opinion, would only complicate the implementation of 
the procurement program. While I understand that the chairwoman will be 
offering an amendment to correct that problem, it does so by 
classifying 92 percent of the industries in the United States as 
historically underrepresented by women businesses and Federal 
procurement. While I concur that women are historically 
underrepresented in the Federal procurement arena, the amendment 
paints, we believe, with a broad, over-inclusive brush, and may include 
numerous industries in which businesses are not underrepresented by 
women entrepreneurs.
  I also need to point out that the bill would classify individuals as 
economically disadvantaged if they have assets exclusive of their 
primary residence and their business up to $550,000. So over a half 
million dollars. According to research by our staff, roughly half the 
Members of Congress, half the Members of this body would qualify as 
economically disadvantaged under that standard. I find it very 
difficult to believe that the average American would consider a Member 
of Congress to be economically disadvantaged.
  These are only some of our concerns about the bill that we have 
before us here today. While some of these concerns are technical in 
nature, my primary dispute with the bill is that it continues, 
unfortunately, to segment the small business government contracting 
arena. The result is that, in our opinion, rather than growing 
opportunities for all small businesses, it pits all of these deserving 
groups against one another. That, in our view, undermines their ability 
to speak as a united front in debates over Federal procurement policy 
that would promote all of their interests.
  Despite my disagreement with the chairwoman, I do not doubt her 
sincere desire to improve the SBA contracting programs. The Chair and 
her staff, particularly Michael Day and Adam Minehardt, should be 
commended for their efforts in trying to find a solution that I, in 
good conscience, could have supported. However, the philosophical gap 
was simply too large to span. Therefore, I cannot support this 
legislation. I would urge my colleagues to vote ``no.''
  Mr. Chairman, I reserve the balance of my time.
  Ms. VELAZQUEZ. Mr. Chairman, I yield 2 minutes to a member of the 
Small Business Committee, the gentleman from Pennsylvania (Mr. Sestak).
  Mr. SESTAK. Mr. Chairman, I rise in support of this bill for two 
goods that are within it. The first has to do with our servicemembers, 
those that have become disabled because of their service. This bill, 
for the first time, gives priority, even if it's just one company that 
is veteran-owned and has the service-disabled owning that company, even 
if there are other competitors. I think this is extremely important, 
particularly in this time of war in Iraq and Afghanistan.

                              {time}  1215

  I say that because in World War II, on average, our soldiers had 182 
days of combat. In between horrific battles of Guadalcanal, Iwo Jima or 
the Battle of the Bulge, there was dwell time in which our 
servicemembers had time to rest before the next onslaught.
  In the war in Iraq, our servicemembers go outside the wire every day 
into combat for 15 months. We are seeing a higher rate of post-
traumatic stress disorder coming back than we have seen in any war. 
Some say over 30 percent. That will feed into our society.
  So that this bill addresses the fact that our society owes something 
to those who wear the cloth of this Nation, particularly in such a 
challenging war, I speak up in support of it.
  The second is women business owners. The fact that the goal has been 
for years that 5 percent of all Federal contracts will go to women 
business owners, we have only met the goal of 3.4 percent. I believe 
this bill goes a large step towards helping those, particularly the 
economically disenfranchised, to be able to have industries that are 
underrepresented, to now have the competition remain with women 
business owners. And if they are substantially underrepresented, it can 
then

[[Page 28626]]

open up to those women business owners who are not economically 
disadvantaged. So I speak up in support of this bill both for veterans 
and for women.
  Mr. CHABOT. Mr. Chairman, I reserve the balance of my time.
  Ms. VELAZQUEZ. Mr. Chairman, I yield to the gentlewoman from New York 
(Ms. Clarke), a member of the committee and a cosponsor of the bill, 
for 2 minutes.
  Ms. CLARKE. Mr. Chairman, first I would like to thank the gentlewoman 
from New York (Ms. Velazquez) for her leadership in bringing this bill 
to the floor today and her steadfast commitment to the small businesses 
of our Nation.
  I support the Small Business Contracting Program Improvements Act, 
which encourages participation by qualified small businesses and 
improves key sections of the Small Business Act to prevent fraud in the 
SBA's contracting programs.
  H.R. 3867 requires the Small Business Administration to immediately 
implement the Women's Procurement Program after 7 years of no action by 
the administration to put the program in action.
  It will allow agencies to limit competition for Federal contracts 
only to women business owners in industries that have been closed to 
them. This legislation now requires SBA to evaluate industries where 
women entrepreneurs are economically disadvantaged and gives the SBA 
authority to waive any restrictions where women-owned enterprises are 
substantially underrepresented.
  I believe this bill will finally correct the imbalance in the number 
of women-owned businesses nationally when compared to their presence in 
the Federal marketplace.
  H.R. 3867 also strengthens the HUBZone program by requiring 
construction contracts to be performed within a reasonable distance of 
the particular HUBZone the contractor is to benefit. It will limit 
construction contract awards being performed more than 150 miles from 
the primary office location of the HUBZone-approved company.
  The Small Business Contracting Program Improvements Act modernizes 
the 8(a) program to update and revise qualification requirements and 
ensure that 8(a) contracts go to qualified companies.
  This bill provides an opportunity for all qualified small businesses 
to have a fair opportunity in the Federal marketplace. I want to thank 
Chairwoman Velazquez for her steadfast commitment to the women, 
minority-owned and disabled veterans and disadvantaged small businesses 
of America. I strongly support this legislation, and I urge my 
colleagues to do likewise.
  Mr. CHABOT. Mr. Chairman, we have no further speakers, and I continue 
to reserve the balance of my time.
  Ms. VELAZQUEZ. Mr. Chairman, I yield 2 minutes to the gentleman from 
Texas (Mr. Reyes), an original cosponsor of the legislation and 
chairman of the Intelligence Committee.
  Mr. REYES. Mr. Chairman, I thank the gentlewoman for yielding me this 
time.
  I rise in support H.R. 3867, the Small Business Contracting Program 
Improvements Act of 2007. I would like to give special recognition to 
our distinguished chairman of the Small Business Committee, Chairwoman 
Velazquez, for her tireless work over the years on behalf of America's 
small business owners, many of whom reside in my district of El Paso, 
Texas.
  I would also like to commend Congressman Bruce Braley who, in just 
his first year in Congress and as chairman of the Small Business 
Contracting Subcommittee, has proven to be an outstanding fighter for 
small businesses.
  H.R. 3867 expands opportunities for small businesses owned by 
veterans. And veterans, and in particular disabled veterans who own 
businesses, are going to be watching very closely how Members vote on 
this bill here today. It also expands opportunities for women who will 
also look at how people support their efforts in the small business 
community. Minorities are watching very closely who votes for this 
legislation, and all others who constitute the most critical force for 
economic growth in our country.
  While I support this bill as a whole, I today want to speak 
specifically about the provisions of this bill that modernize and 
update the 8(a) program at the Small Business Administration. In 1968, 
Congress established 8(a) to assist small businesses owned by citizens 
who are socially and economically disadvantaged. Over the years, the 
8(a) program has helped ten of thousands of businesses grow and prosper 
by allowing entrepreneurs valuable access to Federal contracts.
  A large part of the program's success is a provision that makes 
companies with 8(a) certification eligible for smaller government 
contracts on a sole-source basis. In 1968, those smaller contracts were 
defined as contracts not exceeding $3 million in value for services or 
$5 million in value for manufacturing. Unfortunately, in the nearly 40 
years since, these limits have barely risen, leaving our small 
businesses an ever-shrinking slice of the Federal contracting pool.
  Earlier this year I introduced H.R. 1611, the 8(a) Modernization Act, 
to turn the clock forward for the thousands of small businesses that we 
have unfortunately left behind. This bill does two things: one, it 
increases the allowable net worth for 8(a) participants; and, two, it 
increases the limit on sole-source contracts for 8(a) companies.
  H.R. 3867 includes both of these essential changes which are 
important not only to many small businesses in my district, but to 
countless American entrepreneurs around the country, including our 
veterans.
  Mr. Chairman, this is a good bill. I am proud to be an original 
cosponsor of it, and I urge all of my colleagues to give it their full 
support. Again I thank Chairwoman Velazquez for the time to speak here 
today and for her untiring leadership on behalf of small businesses.
  Mr. CHABOT. Mr. Chairman, I reserve the balance of my time.
  Ms. VELAZQUEZ. Mr. Chairman, I yield 2 minutes to the gentleman from 
California (Mr. Baca), chairman of the Congressional Hispanic Caucus.
  Mr. BACA. Mr. Chairman, I rise to support H.R. 3867, the Small 
Business Contracting Program Improvements Act. I want to thank my 
colleague, Chairperson Velazquez, for her leadership.
  Small business is the backbone of our economy. And I state, small 
business is the backbone of our economy. Over 4 million minority 
businesses represent almost 20 percent of all firms in this country. 
They generate nearly $7 billion annual revenue and employ almost 5 
million workers. And I state, 5 million workers.
  Minorities make up 32 percent of the population of this country, but 
they only represent 18 percent of all small businesses. This bill will 
close the gap, and I state, will close the gap by improving the Small 
Business Administration's small and minority business procurement 
programs and will help disabled veterans, women, minority businesses, 
both Hispanic, black, Asians and others, and provides small business 
minority businesses the assistance they need to grow and prosper.
  Like in the Inland Empire where the majority of businesses are small 
businesses and represent the largest growth and the engine that drives 
the economy in the State of California, SBA 8(a) programs, which open 
the doors to more than half of all Federal minority business contracts, 
have not been updated since 1988.
  This bill revamps the program to improve 8(a) firms' ability to 
secure in the Federal sector. It is time to level the playing field so 
the small minority business firms have equal access to Federal 
contracts. Every dollar invested in the 8(a) program results in over $4 
million in contracts to minority entrepreneurs. This translates into 
more jobs across the Nation. I urge my colleagues to support this bill.
  Mr. CHABOT. Mr. Chairman, I continue to reserve.
  Ms. VELAZQUEZ. Mr. Chairman, I yield to Mrs. Tubbs Jones from Ohio, 
the chairwoman of the Committee on Standards of Official Conduct, 2 
minutes.

[[Page 28627]]


  Mrs. JONES of Ohio. Mr. Chairman, it gives me great pleasure to come 
to the floor in support of this great legislation. I want to say I am 
so proud of the Chair of the Small Business Committee. She was my first 
ranking member when I came to the Congress back in 1999, and I had the 
opportunity to serve on the Small Business Committee along with 
Financial Services.
  We have all been talking about small businesses and how important it 
is, and it is all right to talk about it. But if you don't do anything 
about it, that presents a problem.
  I think about the district that I represent, the greater Cleveland 
area, and the need we have to do economic development in the City of 
Cleveland. I am so glad this legislation focuses in on some of those 
areas. I represent a district that is 52 percent African American, and 
it is important that African American businesses in my congressional 
district have an opportunity to sit at the public too and receive some 
of those dollars in terms of developing their businesses.
  One of the things that has happened over the years is being a 
minority business has gotten so good, there are people who perpetrate. 
That means they pretend they are a minority business. They will get a 
minority to stand in the front of their business, and the business is 
really a majority business. Or they will get a woman to stand in front, 
and it is really a majority business. And this legislation focuses in 
on the fraud.
  I am so happy because there are so many businesses that deserve an 
opportunity to do business with the Federal Government. In addition, 
there are so many other areas of focus that this chairwoman has put a 
focus on around small business.
  If we really believe that small business is the engine that pushes 
and grows America, let's give small businesses the train to push it. I 
thank her for her leadership. I thank her for an opportunity to speak 
this afternoon. I encourage all of my colleagues from the Democrats, as 
well as the Republican, who truly believe that small business needs a 
leg up to support this legislation.
  Mr. CHABOT. Mr. Chairman, I continue to reserve.
  Ms. VELAZQUEZ. Mr. Chairman, I have no further speakers and I am 
prepared to close if the gentleman is prepared to close.
  Mr. CHABOT. Mr. Chairman, we have already stated our concerns about 
the bill in particular, but I would again emphasize the fact that the 
chairwoman did reach out, and her staff did as well. But 
philosophically, this was a bridge too far. We want to thank them again 
for working in a cooperative manner. This is a committee that under the 
Chair's direction has worked very much with the minority, and we want 
to thank them and hope that we can continue to work together on bills 
in the future.
  Mr. Chairman, I yield back the balance of my time.
  Ms. VELAZQUEZ. Mr. Chairman, the improvements made under H.R. 3867 
are commonsense changes that would modernize and increase program 
accountability. Coupled with the sweeping reform the House passed 
earlier this year to our procurement system, this bill will have an 
immediate impact on every facet of the small business community, 
including women, minorities and service-disabled veterans.
  It is for these reasons H.R. 3867 has some of the most diverse 
support of any bill coming out of the committee this year, ranging from 
small business trade groups including NFIB, the International Franchise 
Association and the Associated General Contractors to minority 
advocates such as the Black, Hispanic and Women's Chambers of Commerce. 
It also has the support of veterans groups, including the American 
Legion, VFW and AMVETS, as well as Aerospace Industries Association and 
the National Defense Industrial Association.
  With the passage of H.R. 3867, we increase opportunities for 
entrepreneurs to become valuable suppliers to the Federal Government, 
recognizing their contribution to the economy.
  I just would like to take a moment to thank the staff that worked on 
this legislation: From the Small Business Committee majority staff, 
Adam Minehardt, LeAnn Delaney and Michael Day; from the minority staff, 
Barry Pinclis and Kevin Fitzpatrick; and Nate Webb from Ms. Fallin's 
staff.
  I strongly urge my colleagues to vote for H.R. 3867, Small Business 
Contracting Program Improvements Act.
  Mr. CONYERS. Mr. Chairman, 2 weeks ago, the House agreed nearly 
unanimously to pass H.R. 3678, the Internet Tax Freedom Act Amendments 
Act. Most significantly, that bill would extend the Internet tax 
moratorium and grandfather protections for 4 years, clarify the 
treatment of gross receipts taxes, and revise the definition of 
Internet access.
  As my distinguished colleague from North Carolina, Congressman Watt, 
stated on the floor that day, the House bill was ``an excellent example 
of what can occur when we work together--on both sides of the aisle--to 
deal with highly complex issues.''
  Our bipartisan legislation was supported by industry groups such as 
the Don't Tax Our Web Coalition, as well as by various government 
organizations like the National Governors Association, the Federation 
of Tax Administrators, the National Conference of Mayors, and the 
National Conference of State Legislatures. It was also supported by a 
wide range of labor and union groups. And with that broad support, the 
House passed H.R. 3678 by a vote of 405-2.
  The Senate has returned the bill to us with some amendments, and so 
now we are considering it again. There are four changes:
  First, the Senate version extends the moratorium on State and local 
taxes on Internet access, with the grandfather protections, for 7 
years, until November 1, 2014, rather than the 4 years in the House 
bill.
  Second, the Senate version gives 7 months for certain States to 
adjust to a phase-out of additional grandfather protection they have 
been claiming.
  Third, the Senate version expands the definition of Internet access 
to prohibit taxation of certain services which are fee-based, not 
packaged with Internet access, and offered from sources other than 
providers of Internet access.
  Fourth, the Senate version prohibits a State from reimposing Internet 
access taxes under a grandfather clause if the State had eliminated 
those taxes more than 2 years ago.
  While these lengthier time periods, expanded definitions, and tighter 
restrictions on the States go beyond where the House drew the line, I 
believe the new line is within reasonable bounds, and responds to many 
of the same considerations that motivated the House in crafting the 
version passed 2 weeks ago.
  Like the House bill, the Senate version is designed to allow 
businesses sufficient time to plan, ensure that consumers continue to 
benefit from tax-free access to the Internet during this period, while 
enabling Congress to revisit the moratorium in light of developments in 
the States or in technology--as Congress had done each time it has 
extended the original moratorium--in 2001, 2004 and in this bill.
  The Senate version remains true to the essential goals of the House 
bill, including our refinements to the definition of Internet access 
and our decision to provide a temporary extension of the moratorium. 
Like the House bill, it is designed to minimize adverse effects on 
State and local government revenue, to treat businesses fairly, and to 
keep Internet access affordable to consumers.
  Nonetheless, we must be mindful of the potential misinterpretation of 
the new definition of Internet access. Therefore, I state our intent in 
revising the definition. H.R. 3678:
  Alters the current definition of ``Internet access'' by making it 
clear that the prohibition on State and local taxation extends to that 
portion of a service that connects a user to the Internet and enables a 
user to navigate the Internet for the purpose of gaining access to the 
content, information and services that are available over the Internet 
(section 1105(5)(A) of the Internet Tax Freedom Act as amended by this 
bill). This new definition eliminates existing language that could have 
been interpreted to allow an Internet service provider to bundle 
content, information, and services that might otherwise be taxable with 
Internet access and claim that the entire package is exempt.
  Preserves in subparagraph B of the new definition of Internet access 
changes made to the definition in the Internet Tax Nondiscrimination 
Act (P.L. 108-435) regarding the taxation of certain 
telecommunications. The language is modified in this bill only as to 
form to fit the new definition of Internet access as contained in this 
bill. The provision is intended to insure that all technologies used to 
access the Internet (e.g. cable, satellite, wireless, DSL, etc.) and 
the components used to

[[Page 28628]]

provide the access are subject to the moratorium and protected from 
taxation by State and local governments. As noted in the Committee 
Report accompanying the bill that ultimately became Pub. L. No. 108-435 
(Senate Report 108-155, 108th Congress, 1st Session, p. 4), the 
definition ``is not meant to affect States and local taxation of 
traditional telecommunications services and other services that are not 
used to provide Internet access. For example, the moratorium does not 
allow an Internet access provider to claim or to seek immunity from 
State or local taxes for the provision of other services--such as cable 
television programming--that are separate from Internet access. Nor 
does the moratorium exempt telecommunications services provided over 
the same facilities that are not used to provide Internet access.''
  Clarifies in subparagraph C that services incidental to and provided 
with a connection to the Internet are not taxable. Such services are 
generally offered for free and provide the user with basic services to 
make the Internet functional for the user.
  Addresses in subparagraph D concerns that the existing definition 
allows goods or services that are used or delivered over the Internet 
to become subject to the moratorium if they are offered as a package 
with Internet access. In 2004, concerns about the bundling provision 
led to a specific exception from the moratorium for voice-over-
internet-protocol services. This section defines the VOIP exception of 
the current law as one of the services that is specifically excluded 
from Internet access and makes it clear that neither VOIP nor any other 
good or service that uses the Internet is subject to the moratorium. 
Since VOIP is specifically excluded from the definition of Internet 
access, the existing exception for VOIP was removed as redundant.
  Includes in the new definition in subparagraph E certain services 
that would be subject to the moratorium under subparagraph C if offered 
with a service described in subparagraph A, are part of the moratorium 
even though they are fee-based and offered separately from a service 
described in subparagraph A. The list of services under this 
subparagraph is meant to be limited and exhaustive.
  Mr. Chairman, H.R. 3678 as amended by the Senate remains a good, 
strong bill that provides much needed clarity to the communications and 
Internet industries, and strikes an appropriate balance in addressing 
the needs of States and local governments while helping keep Internet 
access affordable.
  Mr. Chairman, I urge my colleagues on both sides of the aisle to join 
me in supporting this bill as the Senate has sent it back to us.
  Mr. BRALEY of Iowa. Mr. Chairman, I would like to take a moment to 
thank Small Business Committee Chairwoman Nydia Velazquez and Ranking 
Member Steve Chabot for all the great work they have done in the Small 
Business Committee this year.
  As Chairman of the Small Business Subcommittee on Contracting and 
Technology and a cosponsor of this legislation, I applaud their efforts 
on the Small Business Contracting Improvements Act of 2007. This act 
proposes important improvements to the Small Business Administration's 
small and minority business procurement programs.
  Today I am proud to introduce an amendment with Congressman Peter 
Welch on an issue that could have a potential impact in my district. 
This amendment requires the Small Business Administration to conduct a 
study on the effectiveness of the HUBZone program in reaching rural 
areas. Rural areas make up a big part of my District and I want to 
ensure that my constituents are not overlooked when it comes to federal 
contracting opportunities.
  H.R. 3867 will help small businesses. In the Small Business 
Subcommittee on Contracting and Technology's first hearing, we heard 
witnesses representing women-owned businesses describe how the federal 
government was failing to keep its commitment to them. They talked not 
only about how the 5 percent goal for women-owned businesses was not 
being met, but also about how the Women's Procurement Program, which 
was enacted in 2000, has yet to be implemented by the SBA. This bill 
will ensure the Women's Procurement Act is finally implemented.
  I am pleased this legislation also expands procurement opportunities 
for small businesses owned by service-disabled veterans. Additionally, 
it strengthens community development through changes to the HUBZone 
program and makes important updates to the 8(a) program, which is one 
of the most important vehicles for minority business participation in 
federal contracting.
  The SBA Office of Advocacy has found that although minorities make up 
32% of the population in this country, they constitute only 18% of 
businesses. It is clear we must provide additional opportunities to 
these small minority businesses to close this gap.
  By law, federal organizations are required to support small 
businesses. However, over the past 5 years, total government 
contracting has increased by 60% while small business contracts have 
decreased by 55%. This suggests that the SBA's procurement initiatives 
are not bringing work from the large business share to the small 
business share, but rather are forcing small businesses to compete for 
an increasingly smaller piece of the pie.
  It is essential that small businesses have access to the over $400 
billion per year federal marketplace. The Small Business Contracting 
Improvements Act nicely complements H.R. 1873, the Small Business 
Fairness in Contracting Act, a bill I introduced in April that later 
passed the House on May 10th by an overwhelming bipartisan vote of 409-
13. My bill will give small businesses more opportunities to compete 
for federal contracts, raising the small business federal contracting 
goal from 23% to 30%. This means that all of the programs included in 
the Small Business Contracting Improvements Act will have greater 
opportunities to compete for federal contracts.
  Thank you once again, Mr. Chairman, and thank you to all of my 
colleagues who join me today in standing up for the interests of small 
businesses.
  Ms. CASTOR. Mr. Chairman, the Small Business Contracting Improvements 
Act and this rule will open up greater opportunities to small business 
owners across this Nation. Small businesses are the backbone of our 
local communities. In my hometown of Tampa, Florida, more of my 
neighbors and folks I represent work for small businesses than any 
other type of business--and we value what they do because it gives our 
community character and diversity.
  I want to thank Congresswoman Velazquez for bringing this legislation 
to the House floor today. In America, small businesses account for 50 
percent of our gross domestic product. Last year, the federal 
government spent over $400 billion on goods and services and only about 
20 percent went to small businesses--approximately $80 billion in 
contracts. Our actions today will assist these talented small 
businesses obtain a better, fair share of federal government contracts.
  The Small Business Contracting Improvements Act also strengthens and 
modernizes contracts for small businesses and sets standards to protect 
the integrity and consistency. Despite a 50-year-old mandate, small 
businesses owned by disabled veterans, female entrepreneurs, and 
minorities have not received a fair share of federal contracts. Back 
home in Tampa, there are 47 disabled veteran businesses, 512 state-
certified minority-owned businesses, and over 77,000 small businesses. 
I am proud that we will act to expand their opportunities, with others 
across the country so that they can thrive and flourish.
  Although the Congress passed the Women's Procurement Program 7 years 
ago, the Bush Administration failed to follow through. According to 
Margot Dorfman, CEO of the U.S. Women's Chamber of Commerce, each year 
of delay in the implementation of the Women's Procurement Program, has 
cost women-owned businesses billions of dollars in contract award 
opportunities.
  Businesses owned by disabled veterans currently receive only a small 
fraction of federal contracts as well. We can expect to see an 
immediate and substantial increase in opportunities for these business 
owners.
  And for businesses that go into economically distressed neighborhoods 
like ``HUBZones,'' this bill will ensure further community development 
through the strengthening of the HUBZone requirements. For example, 
Carl Calhoun, in South St. Petersburg explained to me that had it not 
been for the chance to compete for federal contracts that he would not 
have gotten the capital necessary to start his family-owned and -
operated business that manufactures premium bedding (mattresses, box 
springs and foundations).
  Mr. Chairman, this important small business bill and this rule will 
update and expand opportunities and encourage participation by 
qualified small businesses. We will remove barriers that prevent 
deserving businesses in my Tampa Bay district, and others across the 
country, from achieving the goal of full participation and a fair share 
of federal contracts.
  Mr. THOMPSON of Mississippi. Mr. Chairman, I rise today in strong 
support of H.R. 3867, the Small Business Contracting Program 
Improvements Act.
  I want to thank Chairwoman Velazquez for introducing this important 
legislation, and for all of her hard work in getting it to the floor 
today.
  This bill is important to all Americans, because small business keeps 
this country working.
  The Federal Government has numerous programs to assist America's 
small businesses, but problems remain, and H.R. 3867 addresses several 
of them.

[[Page 28629]]

  In particular, I support the bill's efforts to crack down on large 
firms that masquerade as small businesses.
  In the aftermath of Hurricane Katrina, we learned about a particular 
multinational corporation that listed itself as a small business and 
gained disaster recovery contracts set aside for small businesses.
  When we checked further, we found that this firm had 17 divisions and 
had generated $4.5 billion in revenue in its North American operation 
alone.
  That surely doesn't look like any small business I've ever seen.
  Morever, we learned that this was not the first time that this 
multinational company had been awarded contracts that were set aside 
for small businesses.
  In fact, another government agency had given them an award for 
outstanding ``small business performance''.
  H.R. 3867 creates penalties for companies that misrepresent 
themselves as being owned by ``a service-disabled veteran.''
  This is a good first step at cracking down on companies that 
misrepresent themselves to improperly gain government contracts.
  At the same time, the Small Business Administration needs to step up 
and do more.
  SBA must full its responsibility to enforce the laws and allow small 
businesses the opportunities that Congress has said they should have.
  Until the laws we pass are truly enforced, small business will never 
be able to fulfill their economic promise.
  I urge my colleagues to support it.
  Mr. MANZULLO. Mr. Chairman, I rise in reluctant opposition to the 
Small Business Contracting Program Improvements Act (H.R. 3867). The 
aims of this legislation are noble. The purpose of this bill is to make 
a variety of changes--some long overdue--to several of the sub-small 
business federal contracting goals.
  I commend the authors of H.R. 3867 for strengthening the procurement 
set-aside program for service-disabled veteran-owned small businesses 
in Title I. I also praise the effort to finally get the women's 
procurement program off the ground. During my tenure as chairman of the 
Small Business Committee, I was proud of my bipartisan work to pressure 
the SBA to implement this initiative. However, I remind my colleagues 
that under the new leadership of the administrator of the Small 
Business Administration, SBA, Steven Preston, more action has been 
taken in the past year to implement the women's procurement program 
than in the previous seven since the program was first created. The SBA 
is near completion of a final rule, which will pass constitutional 
muster, on the women's procurement program. Thus, I counsel continued 
patience and I hope that Title III in H.R. 3867 will not be needed.
  However, I am disappointed that the increase in the size in contracts 
available to small manufacturers awarded without competition is not 
significantly increased. While Section 204 of H.R. 3867 provides a 
long-overdue inflationary increase to the contract limitation level for 
other small businesses, from $3 million to $5.1 million, the size for 
small manufacturers is increased by just $500,000--from $5 million to 
$5.5 million. This small increase diminishes the value of this benefit 
to U.S. small manufacturers, particularly as compared to other small 
businesses. To keep up with inflation and provide an equivalent 
benefit, this contract limitation should be increased to $8.5 million 
for small manufacturers.
  This bill also unfortunately pits two sets of small businesses 
against each other--a minority small business development program 8(a) 
versus a procurement preference program that encourages small 
businesses to develop and hire local workers in economically-distressed 
areas of the country, otherwise known as Historically Underutilized 
Business, HUB, Zones. When I was chairman of the Small Business 
Committee, I never brought a bill to the House floor that helped one 
set of small businesses at the expense of another group of small 
businesses, particularly those firms that are committed to redeveloping 
economically-distressed areas in both urban and rural America.
  H.R. 3867 makes the 8(a) program more attractive while putting more 
hurdles in front of the HUBZone program. This is ironic because the 
Federal government has never met the 3 percent goal for HUBZones since 
its creation in 1996 but routinely meets and exceeds the 5 percent goal 
for minority or Small Disadvantaged Businesses, SDBs, of which 8(a) 
firms is a part.
  A key blow to the HUBZone program is contained in Section 101(b) of 
H.R. 3867. This provision makes the HUBZone program discretionary or 
optional on the part of Federal contracting officers. This will only 
further discourage the use of HUBZone firms by the government to 
fulfill its procurement needs.
  H.R. 3867 also requires an on-site inspection by SBA personnel of a 
small business to confirm HUBZone status prior to the award of their 
second program-related contract. Because of the limited resources at 
the SBA, this could delay the completion of contracts by weeks, if not 
months, while the HUBZone firm awaits this audit. Again, a Federal 
contracting official would be disinclined to use a HUBZone firm if it 
meant a longer time before a Federal agency would receive the good or 
service that was put out to bid. The non-partisan Congressional Budget 
Office, CBO, estimates that this provision alone would cost $62 million 
over the next 5 years to complete 5,000 on-site visits that would be 
performed each year. There are other ways to accomplish the same goal 
of making sure that HUBZone firms are in compliance with all the 
requirements of the law, including a closer review by the SBA of 
HUBZone applications, an expedited protest process by other small 
businesses, and enhanced criminal and civil penalties for false or 
misleading statements.
  Finally, H.R. 3867 prohibits HUBZone construction firms from 
participating in projects more than 150 miles from its headquarters 
location. This would put a severe competitive disadvantage to HUBZone 
firms located in rural areas from performing work on Federal Government 
construction contracts located far away.
  In the northern Illinois congressional district I am proud to 
represent, two entire mostly rural counties--Carroll and Stephenson--
are HUBZones. Also, HUBZones are located in certain urban parts of 
Winnebago County, mostly in the city center areas of Rockford along the 
Rock River that have suffered from the closure of numerous 
manufacturing facilities. This bill would put a further competitive 
disadvantage to any HUBZone firms located in the 16th District to 
compete for Federal business located even as close as the nearest major 
Federal procuring center in Illinois--Scott Air Force Base, which is 
about 300 miles away from Rockford and Freeport, Illinois.
  While claiming to correct alleged abuses and fraud in the HUBZone 
program, H.R. 3867 opens up the 8(a) program to potential abuse by 
increasing the economic disadvantage threshold test above the average 
rate of inflation and applying this test only once upon entry into the 
program. The current economic disadvantage threshold level, which has 
not been changed since 1988, is $250,000. I agree that this level needs 
to be increased to compensate for inflation. However, H.R. 3867 raises 
this level to $550,000 even though the rate of inflation since 1988 
would produce a result of $440,000, according to the Bureau of Labor 
Statistics. Also, the SBA currently applies this wealth test annually 
to ensure that the 8(a) program truly serves economically disadvantaged 
small business owners. Eliminating this yearly test could potentially 
lead to fraud if a wealthy person seeking entry into the 8(a) program 
is creative in shifting around their assets. H.R. 3867 would also allow 
multi-millionaires to remain in the 8(a) program for 10 years once they 
pass the first economic disadvantage test.
  Most critically, H.R. 3867 does not deal with the fundamental problem 
in the 8(a) program cited in numerous SBA Office of Inspector General 
reports that 50 percent of the dollars obligated against 8(a) contracts 
went to a mere 1.7 percent of the 8(a) firms and over 70 percent of the 
eligible firms received no 8(a) contract benefit at all. Finally, H.R. 
3867 also does not deal with the problem of large Alaska Native 
Corporations, ANCs, being able to participate in the 8(a) program and 
receive sole-sourced multi-million dollar contracts.
  Because of these and other problems, the Bush Administration has 
issued a statement strongly opposing H.R. 3867, which I include for the 
Record. Thus, I respectfully urge my colleagues to oppose this 
legislation in order for these problems to be fixed.

     Statement of Administration Policy--H.R. 3867--Small Business 
                  Contracting Program Improvements Act

       The Administration strongly opposes H.R. 3867, which would 
     modify the small business procurement programs of the Small 
     Business Administration. The Administration appreciates the 
     intent of H.R. 3867 to improve these programs and reduce the 
     potential for fraud and abuse. However, the Administration 
     believes that a number of the bill's elements would be 
     burdensome or undesirable. In addition, some provisions of 
     the bill raise significant constitutional concerns. The 
     Administration looks forward to working with Congress to 
     remedy the issues identified below.
       The bill also eliminates the upper asset limit on economic 
     disadvantage for continued participation in the program, 
     essentially allowing an individual regardless of their wealth 
     or income to continue participating in the program for a full 
     10 years. The bill

[[Page 28630]]

     would raise the asset-test bar for eligibility of individuals 
     for the 8(a) program from $250,000 to $550,000, excluding 
     equity in their home or their business. As the 8(a) program 
     is designed to reach economically disadvantaged small 
     business owners who have diminished credit opportunities, the 
     Administration believes opening the program to small business 
     owners with higher net worth will divert 8(a) contracting 
     opportunities well beyond the original intent of the program.
       H.R. 3867 would place a number of burdensome requirements 
     on the HUB Zone contracting program. The bill would prohibit 
     rural and Native American HUB Zone firms from obtaining 
     construction contracts more than 150 miles from their HUB 
     Zone principal office. The bill would also require on-site 
     evaluation of all HUB Zone firms prior to the award of their 
     second program-related contract. This provision would create 
     a large burden on the Small Business Administration, as these 
     firms are widely distributed and often located in rural 
     areas. The firms are already required to certify their status 
     prior to award of a contract, and false certification is a 
     felony with significant penalties. Also, the Small Business 
     Administration currently has a protest mechanism in place to 
     ensure the eligibility of firms for HUB Zone contracts.
       The Administration is supportive of sections of H.R. 3867 
     that punish false representation of a firm as being owned by 
     service-disabled veterans and provisions that attempt to 
     assist such firms in the Federal contracting process. 
     However, the Administration is concerned about provisions 
     that would require that certain small business preference 
     programs take priority over other small business preference 
     programs.
       H.R. 3867 would also increase dollar thresholds for 
     setting-aside non-competitive contracts in several of these 
     programs. Competition is a proven way of obtaining the best 
     performance and value for the government. Accordingly, any 
     non-competitive thresholds increase should be based on the 
     actual rate of inflation as reflected in regulatory changes 
     instituted by the SBA.
       While the Administration supports opportunities for women-
     owned small businesses (WOSBs) to compete for Federal 
     contracts, it opposes the bill's constitutionally suspect 
     creation of gender-based set-asides. In order to withstand 
     applicable equal protection standards, determinations of 
     under-representation that form the basis of set-asides must 
     be carefully controlled to assure that the pool of WOSBs 
     deemed available for the contracting opportunities in 
     question is limited to businesses that are eligible to 
     perform those contracts. The bill's provisions for the 
     identification of industries in which WOSBs are under 
     represented does not appear to satisfy that standard. 
     Additionally, authorizing individual agencies to make 
     determinations of under representation that will result in 
     contract set-asides based on sex will exacerbate such 
     constitutional concerns, since it is unlikely that such 
     determinations will be based upon the kind of thorough 
     statistical analysis required by the courts to justify such 
     set-asides under applicable case law.
       Additionally, the bill's apparent expansion of the business 
     categories that will be eligible for race- or ethnicity-based 
     preferences in Federal contracting programs is subject to 
     strict scrutiny under governing equal protection standards. 
     Unless these provisions are supported by a sufficiently 
     current legislative record demonstrating that they are 
     narrowly tailored to further a compelling government 
     interest, such provisions may be vulnerable to constitutional 
     challenge.

  Ms. HIRONO. Mr. Chairman, I rise in support of H.R. 3867, the Small 
Business Contracting Program Improvements Act.
  This bill expands procurement opportunities for small businesses 
owned by service-disabled veterans, women entrepreneurs, and socially 
disadvantaged business owners. These firms remain under-represented in 
the Federal contracting marketplace and have yet to receive their fair 
share of Federal Government contracts.
  H.R. 3867 assists small businesses owned by service-disabled veterans 
by requiring agencies to award sole-source contracts to these firms if 
they are identified as being capable of performing the contracts. These 
businesses currently receive less than one percent of Federal 
Government contracting dollars. Authorizing agencies to enter into 
sole-source contracts with service-disabled veteran-owned firms will 
raise the likelihood of these firms obtaining Federal contracts. 
Moreover, H.R. 3867 provides an inflationary adjustment to the 
limitation on contracts by increasing the size of available contracts 
awarded without competition to $5.1 million.
  This bill directs the Small Business Administration, SBA, to comply 
with an Executive Order requiring the SBA to provide service-disabled 
veteran-owned companies with information and assistance on Federal 
contracting as well as assist other agencies in their strategies to 
expand contracting opportunities for them.
  Passage of this bill is also important for our women-owned 
businesses. In 2000, Congress enacted the Women's Procurement Program 
to expand opportunities for Federal contracts to women business owners 
within industries in which they have been significantly under-
represented. On behalf of women-owned businesses, the U.S. Women's 
Chamber of Commerce sued the SBA over the delay in implementing the 
program and won their lawsuit in 2005. Seven years after the Women's 
Procurement Program was enacted into law, however, the SBA has yet to 
establish regulations that would implement this vital program. I share 
Chairwoman Velazquez's frustration with this delay and her admonishment 
to the SBA to remedy the situation.
  H.R. 3867 requires the SBA to implement the Women's Procurement 
Program immediately. The bill makes economically disadvantaged women 
entrepreneurs eligible for restricted competition contracts and gives 
the SBA the authority to waive this requirement in industries that are 
substantially under-represented by women-owned businesses. Today, 
women-owned small businesses capture only about 3 percent of Federal 
small-business contracting dollars. We need this legislation to 
encourage women entrepreneurs to participate in the Federal contract 
marketplace.
  H.R. 3867 expands and modernizes the 8(a) Business Development 
Program, which has not been amended since 1988. The 8(a) program 
currently assists over 9,000 small businesses owned by socially and 
economically disadvantaged individuals, including about 200 firms in my 
State of Hawaii. H.R. 3867 makes two main improvements to this program: 
it provides for an inflationary increase in net worth limitations to a 
maximum of $550,000 for program participants and extends the duration 
of program participation from 9 to 10 years. Increasing the net worth 
ceiling will bring stronger firms into the 8(a) program.
  Finally, I support this bill because it addresses contracting 
problems and increases oversight over unqualified businesses by setting 
standards that protect the integrity and consistency in application of 
contract assistance programs. H.R. 3867 mandates government-wide goals 
for procurement contracts awarded to small businesses. In addition, it 
requires the SBA to perform the necessary checks on program applicants 
and participants to confirm their business integrity and 
qualifications. This is important given recent findings by the SBA 
Inspector General of fraud and abuse in the Historically Underutilized 
Business Zone (HUBZone) program.
  Chairwoman Velazquez has noted that the Federal Government failed to 
meet its small and minority business goals for a 6th year in a row, 
costing entrepreneurs $4.5 billion in lost opportunities. H.R. 3867 is 
another step in the right direction to help our small businesses, and I 
thank Chairwoman Velazquez for her commitment and strong leadership in 
sponsoring this important legislation.
  I urge my colleagues to support this measure.
  Ms. MOORE of Wisconsin. Mr. Chairman, I rise today in strong support 
of H.R. 3867, the Small Business Contracting Program Improvements Act.
  I would specifically like to focus on Title V of the bill which would 
make changes to the 8(a) program. The 8(a) program is the last 
remaining federal initiative focusing on the development of minority-
owned businesses through the award of federal contracts. Despite the 
fact that minorities make up one-third of the U.S. population, 
minority-owned businesses account for only 18 percent of all U.S. 
companies. This bill provides a strong step forward in increasing 
minority entrepreneurship.
  It is of great concern to me that 8(a) hasn't been updated since 
1988, nearly 20 years ago. This bill would finally modernize the 8(a) 
program to reflect the changing economy. I am pleased at the 
similarities between the bill before us and legislation that I 
introduced this spring, H.R. 2532, the Minority Owned Venture 
Empowerment Act or MOVE Act. Like my legislation, businesses would have 
the opportunity to participate in the program for 10 years. This 1-year 
program extension would provide businesses more time to successfully 
grow and graduate out of the program. Additionally, similar to my 
proposal, this bill would raise the net worth restriction of the small 
business owner so that successful minority businesses are not shut out 
of the program prematurely.
  We must make more of an effort to encourage minority, women and 
veteran entrepreneurship. This bill would ensure that these businesses 
can compete fairly in the federal marketplace, grow their enterprises 
and create new jobs. I urge all members to support the legislation 
before us.
  Ms. BORDALLO. Mr. Chairman, I rise today in support of H.R. 3867, the 
Small Business Contracting Program Improvements Act. Enjoying broad 
based and bi-partisan support,

[[Page 28631]]

this bill will help modernize the contacting programs run by the U.S. 
Small Business Administration, SBA, raise the profile of veteran, 
minority and women entrepreneurs, and help combat fraud, waste and 
abuse in government contracting.
  Of particular note, Section 402 of H.R. 3867 strengthens the 
Historically Underutilized Business Zone, HUBZone, program and promotes 
community economic development. That is, HUBZone registered small 
businesses cannot obtain a construction contract by means of a HUBZone 
set-aside unless the construction project is located in or near the 
HUBZone in which the small business concern maintains its principal 
place of business.
  Guam, my district, will be home to a significant amount of federally 
funded construction and other work associated with the planned increase 
in the presence of U.S. Armed Forces on our military bases. The 
provisions of H.R. 3867 will help ensure small businesses on Guam can 
successfully compete for the contracts associated with the military 
build-up. I support H.R. 3867.
  Mr. RODRIGUEZ. Mr. Chairman, I rise today in support of H.R. 3867, 
Small Business Contracting Procurement Improvements Act of 2007.
  Among the many improvements, this bill modernizes programs to 
increases opportunity to disadvantaged businesses that do not have 
proper access to the $410 billion federal marketplace.
  This bill expands procurement opportunities for service-disabled 
veteran-owned businesses; a group that currently receives only a small 
fraction of their contracting goal. Further, it creates penalties for 
misrepresentation of a service-disabled veteran owned business 
classification and adopts a roadmap for providing information, advice 
and training to service-disabled veterans as prescribed by President. 
Finally, it provides discretion to contracting officers in cases that 
must now be set aside for HUBZones but that could be used for service-
disable veteran-owned businesses.
  Additionally, the bill modernizes the 8(a) Business Development 
Program. This program is to single most important vehicle for minority 
business participation in federal contracting. The 8(a) program has 
contributed to the development of over 20,000 firms including many in 
Texas over the past 2 decades, and these firms have received almost 
$100 billion in federal contracts.
  Over 9,000 firms are currently participating in the 8(a) program. 
More than half of all federal minority business contracting is 
accomplished through the 8(a) program. Despite these impressive 
statistics, the program has not been revamped since 1988.
  Earlier this year, I joined my colleague Rep. Silvestre Reyes in 
sponsoring H.R. 1611, the 8(a) Modernization Act which was incorporated 
into this legislation.
  I would like to thank the Chairwoman, Ms. Nydia Velazquez for her 
work not only for this legislation but also her long time advocacy for 
our Nation's small businesses.
  I urge my colleagues to support this bill.
  Ms. JACKSON-LEE of Texas. Mr. Chairman, I rise in strong support of 
H.R. 3867, the ``Small Business Contracting Program Improvements Act.'' 
I support this legislation because it provides for much needed 
contracting opportunities for small businesses that would otherwise 
escape them. H.R. 3867 encourages participation by qualified small 
businesses, particularly veteran owned businesses, in the appropriate 
contracting programs offered under the supervision of the Small 
Business Administration. The Act aims to assist small business 
participation, prevent fraud and bring consistency to the operation of 
the main contract assistance programs. While I applaud the efforts to 
increase opportunities to veteran-owned small businesses, I believe 
that it is particularly important that doing so does not adversely 
affect contracting opportunities for women and HUBZones.
  H.R. 3867 ensures government contract opportunities for small 
businesses owned and controlled by service-disabled veterans. The least 
that we can do is provide our veterans with opportunities to fulfill 
their dreams of owning successful businesses so that they can support 
themselves in an ever-growing, competitive business arena. By expanding 
procurement opportunities for service-disabled veteran-owned 
businesses, a group that currently receives only a small fraction of 
their contracting goal, we say thank you to those brave heroes who 
sacrificed much so that all Americans can enjoy the fruits of their 
labor, freedom and security. The bill also protects those veterans for 
whom the opportunities are created by establishing penalties for 
misrepresentation of a service-disabled veteran owned business 
classification and adopts a roadmap for providing information, advice 
and training to service-disabled veterans as prescribed by the 
President.
  Finally, it provides discretion to contracting officers in cases that 
must now be set aside for HUBZones but that could, with these 
amendments be used for service-disable veteran-owned businesses. But as 
I stated at the outset, the exercise of such discretion must be 
judicious so as not to frustrate the purpose set out in the Small 
Business Act to provide for opportunities for HUBZones.
  Mr. Chairman, this bill has safeguards to ensure that the benefits 
provided reach the intended recipients. Under H.R. 3867 provides that 
the Administrator perform the necessary checks on applicants for 
participation in the various contracting assistance programs to ensure 
their business integrity and qualifications. Most programs already 
require this but this makes it uniform.
  The Small Business Contracting Program Improvements Act also expands 
opportunities for women entrepreneurs. The bill establishes 
requirements for the SBA to implement the Women's Procurement Program 
immediately. Because it has taken too much time for the SBA to 
implement the Women's Procurement Program, this bill is intended to 
provide agencies with sufficient information to immediately begin 
competing contracts among women business owners. Seven years is far too 
long for the women who have been waiting for these business 
opportunities. As a result of this unwarranted delay, women have lost 
tens of billions of dollars in contracting opportunities but thanks to 
H.R. 3867 they will not have to wait any longer. I am particularly 
pleased to know that women small business owners will finally receive 
the long anticipated contracting opportunities that were intended for 
them under the Small Business Act.
  Mr. Chairman, this bill will also strengthen Community Development. 
Title IV strengthens the HUBZone program by verifying that small 
businesses receiving contracts under its authority are qualified. It 
further requires construction contracts to be performed within a 
reasonable distance of the particular HUBZone the contractor is to 
benefit.
  This legislation has bipartisan support within the Small Business 
Contracting Program Improvements Act Committee and includes the input 
from a number of Members. There is remarkably broad support on this 
legislation, ranging from the National Black Chamber of Commerce to the 
National Federation of Independent Business and the Associated General 
Contractors of America. Also supporting the legislation are the 
American Legion, the Veterans of Foreign Wars, and AMVETS. The United 
States Hispanic Chamber of Commerce, the U.S. Women's Chamber of 
Commerce and the National Defense Industrial Association also.
  While this bill goes a long way to provide much needed contracting 
opportunities for small businesses, my amendment would have greatly 
enhanced such opportunities. My amendment to H.R. 3867, which updates 
and expands the procurement programs of the Small Business 
Administration. My amendment provides that it is the sense of Congress 
that the Administrator should encourage the components of the 
administration, as well as appropriate State and local government 
agencies, to competitively bid and negotiate contracts and prices for 
services, including debris clearance, distribution of supplies, 
reconstruction and other assistance, in advance of an act of terrorism, 
natural disaster, or other emergency; and work toward a goal of 
awarding to qualified firms located in a county, parish, or other unit 
of local government within the affected area, but only to the extent 
that the goal does not interfere with the ability of the Administrator 
to provide timely and effective assistance.
  Mr. Chairman, we have learned from the devastation of Hurricanes 
Katrina, Rita and Wilma that severe consequences can result from not 
having the proper disaster recovery plans in place prior to such a 
disaster. We also know that having in place a comprehensive written 
response plan to give support to small businesses so that they may 
rebuild their businesses and in turn help to rebuild the affected areas 
is an essential component of a good recovery plan.
  In the aftermath of Hurricanes Katrina, Rita, and Wilma small 
businesses and in particular minority and disadvantaged businesses, in 
the affected areas were severely and negatively impacted because they 
did not receive financial support necessary to rebuild their businesses 
and participate in the rebuilding of the affected community.
  I understand that a major purpose of H.R. 3867 is to encourage 
participation by qualified small businesses, particularly veteran owned 
businesses, in the appropriate contracting programs offered under the 
supervision of the Small Business Administration. The Act also aims 
intend to assist small business participation, prevent fraud and bring 
consistency to

[[Page 28632]]

the operation of the main contract assistance programs. My amendment 
would further support the goal to support small businesses by 
encouraging SBA to establish a program that provides for pre-negotiated 
contracts with small businesses, in advance of an act of terrorism, 
natural disaster, or other emergency. Thus, the small business owners 
from the affected areas will not only be included in the recovery and 
rebuilding process but also maintain viability in a competitive 
economic environment.
  I hope that in the future we will consider the devastating impact 
that disasters can have on small businesses as well as the affected 
communities. I urge my colleagues to support small businesses by 
supporting H.R. 3867.

                              {time}  1230

  Ms. VELAZQUEZ. Mr. Chairman, I yield back the balance of my time.
  The CHAIRMAN. All time for general debate has expired.
  Pursuant to the rule, the bill shall be considered read for amendment 
under the 5-minute rule.
  The text of the bill is as follows:

                               H.R. 3867

       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 ``Small 
     Business Contracting Program Improvements Act''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:
Sec. 1. Short title; table of contents.

TITLE I--ENSURING GOVERNMENT CONTRACT OPPORTUNITIES FOR SMALL BUSINESS 
       CONCERNS OWNED AND CONTROLLED BY SERVICE-DISABLED VETERANS

Sec. 101. Expanding procurement opportunities.
Sec. 102. Penalties for misrepresentation.
Sec. 103. Implementation of Executive Order 13360.

    TITLE II--PROTECTING TAXPAYERS AND ENSURING PROGRAM CONSISTENCY

Sec. 201. Requiring business integrity of small business concerns.
Sec. 202. Establishment of goals.
Sec. 203. Small business concern subcontracting policy.
Sec. 204. Increased size of available contracts.

       TITLE III--EXPANDING OPPORTUNITIES FOR WOMEN ENTREPRENEURS

Sec. 301. Implement the women's procurement program.

             TITLE IV--STRENGTHENING COMMUNITY DEVELOPMENT

Sec. 401. On-site verification.
Sec. 402. Limitation on construction contracts.
Sec. 403. Allowing small business concerns that are not HUBZone program 
              participants to protest HUBZone awards.

                 TITLE V--MODERNIZING THE 8(a) PROGRAM

Sec. 501. Modernizing the section 8(a) program net worth limitations.
Sec. 502. Extension of the section 8(a) program term.
Sec. 503. Report on implementation.
Sec. 504. Allowing small business concerns that are not section 8(a) 
              program participants to protest section 8(a) awards.

                        TITLE VI--OTHER MATTERS

Sec. 601. Affiliation for certain franchises.

TITLE I--ENSURING GOVERNMENT CONTRACT OPPORTUNITIES FOR SMALL BUSINESS 
       CONCERNS OWNED AND CONTROLLED BY SERVICE-DISABLED VETERANS

     SEC. 101. EXPANDING PROCUREMENT OPPORTUNITIES.

       (a) Service-Disabled Veterans.--Section 36(a) of the Small 
     Business Act (15 U.S.C. 657f(a)) is amended--
       (1) in the matter preceding paragraph (1), by striking 
     ``may'' and inserting ``shall''; and
       (2) in paragraph (1), by striking ``and the contracting 
     officer'' and all that follows through ``contracting 
     opportunity''.
       (b) HUBZone.--Section 31(b)(2)(B) of such Act (15 U.S.C. 
     657a(b)(2)(B)) is amended by striking ``shall'' and inserting 
     ``may''.

     SEC. 102. PENALTIES FOR MISREPRESENTATION.

       Section 16(d)(1) of the Small Business Act (15 U.S.C. 
     645(d)(1)) is amended by inserting ``a `small business 
     concern owned and controlled by service-disabled veterans','' 
     before ``or a `small business concern owned and controlled by 
     women' ''.

     SEC. 103. IMPLEMENTATION OF EXECUTIVE ORDER 13360.

       Section 36 of the Small Business Act (15 U.S.C. 657f) is 
     amended by adding at the end the following new subsection:
       ``(f) Implementation of Executive Order 13360.--The 
     Administrator shall--
       ``(1) provide small business concerns owned and controlled 
     by service-disabled veterans with information and assistance 
     concerning participation in Federal contracting;
       ``(2) advise and assist other agencies in their strategies 
     to expand procurement opportunities for such concerns; and
       ``(3) make training assistance on Federal contract law, 
     procedures, and practices available to such concerns.''.

    TITLE II--PROTECTING TAXPAYERS AND ENSURING PROGRAM CONSISTENCY

     SEC. 201. REQUIRING BUSINESS INTEGRITY OF SMALL BUSINESS 
                   CONCERNS.

       The Small Business Act (15 U.S.C. 631 et seq.) is amended 
     by adding at the end the following new section:

     ``SEC. 38. REQUIRING BUSINESS INTEGRITY OF SMALL BUSINESS 
                   CONCERNS.

       ``(a) Section 8(a) Program Background Check.--No applicant 
     may be approved for participation in the section 8(a) program 
     unless the Administrator first performs a background check on 
     the applicant and determines that the applicant does not lack 
     business integrity.
       ``(b) HUBZone Program Background Check.--No award of a 
     second contract under the authority of section 31(b)(2)(A) or 
     31(b)(2)(B) may be made unless the Administrator first 
     performs a background check on the applicant and determines 
     that the applicant does not lack business integrity.
       ``(c) Random Background Check.--The Administrator shall 
     have random background checks performed on owners and 
     officers of small business concerns that have been awarded a 
     contract under section 8(m), 36(a), or 36(b) to determine 
     whether such owners and officers lacks business integrity.''.

     SEC. 202. ESTABLISHMENT OF GOALS.

       (a) Establishment of Government-Wide Goals.--Section 
     15(g)(1) of the Small Business Act (15 U.S.C. 644(g)(1)) is 
     amended by striking the first sentence and inserting ``The 
     President shall annually establish Government-wide goals for 
     procurement contracts awarded to small business concerns, 
     small business concerns owned and controlled by service-
     disabled veterans, qualified HUBZone small business concerns, 
     small business concerns owned and controlled by socially and 
     economically disadvantaged individuals, small business 
     concerns participating in the program established by section 
     8(a), and small business concerns owned and controlled by 
     women.''.
       (b) Technical Corrections.--Section 15 of the Small 
     Business Act (15 U.S.C. 644) is amended--
       (1) in subsection (g) by adding at the end the following:
       ``(3) Each agency shall, in consultation with the 
     Administrator, establish goals for the usage, as prime 
     contractors, of small business concerns that participate in 
     the program under section 8(a).''; and
       (2) in subsection (h) by adding at the end the following:
       ``(4) Each prime contractor shall, in consultation with the 
     Administrator, establish goals for the usage, as 
     subcontractors, of small business concerns that participate 
     in the program under section 8(a).''.

     SEC. 203. SMALL BUSINESS CONCERN SUBCONTRACTING POLICY.

       Section 8(d)(1) of the Small Business Act (15 U.S.C. 
     637(d)(1)) is amended by striking the first sentence and 
     inserting ``It is the policy of the United States that small 
     business concerns, small business concerns owned and 
     controlled by veterans, small business concerns owned and 
     controlled by service-disabled veterans, qualifying HUBZone 
     small business concerns, small business concerns owned and 
     controlled by socially and economically disadvantaged 
     individuals, small business concerns participating in the 
     program established by section 8(a), and small business 
     concerns owned and controlled by women, shall have the 
     maximum practicable opportunity to participate in the 
     performance contracts let by any Federal agency, including 
     contracts and subcontracts for subsystems, assemblies, 
     components, and related services for major systems.''.

     SEC. 204. INCREASED SIZE OF AVAILABLE CONTRACTS.

       (a) Section 8(a) Program.--Section 8(a)(1)(D)(i)(II) of the 
     Small Business Act (15 U.S.C. 637(a)(1)(D)(i)(II)) is 
     amended--
       (1) by striking ``$5,000,000'' and inserting 
     ``$5,500,000''; and
       (2) by striking ``$3,000,000'' and inserting 
     ``$5,100,000''.
       (b) HUBZone Program.--Section 31(b)(2)(A)(ii) of such Act 
     (15 U.S.C. 657a(b)(2)(A)(ii)) is amended--
       (1) by striking ``$5,000,000'' and inserting 
     ``$5,500,000''; and
       (2) by striking ``$3,000,000'' and inserting 
     ``$5,100,000''.
       (c) Service-Disabled Veteran Program.--Section 36(a)(2) of 
     such Act (15 U.S.C. 657f(a)(2)) is amended--
       (1) by striking ``$5,000,000'' and inserting 
     ``$5,500,000''; and
       (2) by striking ``$3,000,000'' and inserting 
     ``$5,100,000''.

       TITLE III--EXPANDING OPPORTUNITIES FOR WOMEN ENTREPRENEURS

     SEC. 301. IMPLEMENT THE WOMEN'S PROCUREMENT PROGRAM.

       Subsection (m) of section 8 of the Small Business Act (15 
     U.S.C. 637(m)) is amended--
       (1) by striking paragraphs (1) through (4) and inserting 
     the following:
       ``(1) Definition.--In this subsection, the term `small 
     business concern owned and controlled by women' has the 
     meaning given

[[Page 28633]]

     such term in section 3(n), except that ownership shall be 
     determined without regard to any community property law.
       ``(2) Authority to restrict competition.--
       ``(A) In general.--In accordance with this subsection, a 
     contracting officer may restrict competition for any contract 
     for the procurement of goods or services by the Federal 
     Government to small business concerns owned and controlled by 
     women, if--
       ``(i) each of the concerns is not less than 51 percent 
     owned by 1 or more women who are economically disadvantaged 
     (and such ownership is determined without regard to any 
     community property law);
       ``(ii) the contracting officer has a reasonable expectation 
     that 2 or more small business concerns owned and controlled 
     by women will submit offers for the contract;
       ``(iii) the contract is for the procurement of goods or 
     services with respect to an industry identified pursuant to 
     paragraph (4);
       ``(iv) in the estimation of the contracting officer, the 
     contract award can be made at a fair and reasonable price; 
     and
       ``(v) each concern is certified in a manner described in 
     subparagraph (B).
       ``(B) Acceptance of certification.--For purposes of 
     subparagraph (A)(v), a contracting officer is required to 
     accept a small business concern's certification as a small 
     business concern owned and controlled by women when such 
     certification is made by--
       ``(i) a Federal agency or a State or local government;
       ``(ii) a national certifying entity approved by the 
     Administrator; or
       ``(iii) the small business concern, when such concern 
     certifies to the contracting officer that it is a small 
     business concern owned and controlled by women and provides 
     adequate documentation in accordance with standards 
     established by the Administrator to support such 
     certification.
       ``(3) Waiver.--With respect to a small business concern 
     owned and controlled by women, the Administrator may waive 
     paragraph (2)(A)(i) if--
       ``(A) such concern is in an industry identified pursuant to 
     paragraph (4); and
       ``(B) the Administrator determines that such concern is in 
     an industry in which small business concerns owned and 
     controlled by women are substantially under-represented in 
     Federal contracting.
       ``(4) Identification of industries.--
       ``(A) In general.--Not less often than every five years, 
     the Administrator shall conduct a study to identify, for 
     purposes of paragraphs (2)(A)(iii) and (3)(A), industries in 
     which small business concerns owned and controlled by women 
     are under-represented in Federal contracting. The parameters 
     for the study shall be as follows:
       ``(i) For purposes of this paragraph, the Administrator 
     shall identify an industry if, and only if, the share of 
     Federal contracts awarded to small business concerns owned 
     and controlled by women in such industry is small relative to 
     the prevalence of business concerns owned and controlled by 
     women in the pool of business concerns in such industry that 
     have at least one employee.
       ``(ii) The study shall measure utilization and availability 
     by--

       ``(I) using the two best available data sources;
       ``(II) including only business concerns that have at least 
     one employee; and
       ``(III) measuring only Federal contracts awarded for 
     amounts over $25,000.

       ``(iii) The study shall include four sets of disparity 
     measurement tables to compute disparity ratios. The four sets 
     are--

       ``(I) all business concerns in the United States relative 
     to the number of Federal contracts awarded to small business 
     concerns owned and controlled by women;
       ``(II) small business concerns owned and controlled by 
     women that have demonstrated an interest in or that have 
     secured Federal contracts relative to the number of Federal 
     contracts awarded to small business concerns owned and 
     controlled by women;
       ``(III) all business concerns in the United States relative 
     to the dollar amounts of Federal contracts awarded to small 
     business concerns owned and controlled by women; and
       ``(IV) small business concerns owned and controlled by 
     women that have demonstrated an interest in or that have 
     secured government contracts relative to the dollar amounts 
     of Federal contracts awarded.

       ``(B) Determination by head of department or agency.--Until 
     such time as the Administrator completes the identification 
     of industries required by subparagraph (A), the determination 
     as to whether an industry is one in which small business 
     concerns owned and controlled by women are under-represented 
     in Federal contracting shall be made by the head of the 
     department or agency for which the contract is to be 
     performed.
       ``(C) Deadline.--Not later than 90 days after the date of 
     the enactment of this subparagraph, the Administrator shall--
       ``(i) ensure the completion of the first study required by 
     subparagraph (A);
       ``(ii) approve national certifying entities for the 
     purposes of paragraph (2)(B)(ii);
       ``(iii) establish procedures required by paragraph (5)(A); 
     and
       ``(iv) establish standards described in paragraph 
     (2)(B)(iii).'';
       (2) in paragraph (5), by striking ``(2)(F)'' in each place 
     it appears and inserting ``(2)(B)''; and
       (3) in paragraph (5), by adding at the end the following 
     new subparagraph:
       ``(D) Protests by small business concerns.--For purposes of 
     this paragraph, the term `interested party' shall include any 
     small business concern.''.

             TITLE IV--STRENGTHENING COMMUNITY DEVELOPMENT

     SEC. 401. ON-SITE VERIFICATION.

       Section 31(b) of the Small Business Act (15 U.S.C. 657a(b)) 
     is amended by adding at the end the following:
       ``(5) On-site verification of status.--
       ``(A) Verification.--When a small business concern that has 
     previously been awarded a contract under paragraph (2)(A) or 
     (2)(B) is to be awarded a second contract under paragraph 
     (2)(A) or (2)(B), the Administrator shall perform an on-site 
     inspection to determine whether such small business concern 
     is a qualified HUBZone small business concern. This paragraph 
     does not require such an inspection before the award of a 
     third or subsequent contract. This paragraph does not prevent 
     a second contract from being awarded before such inspection 
     is completed.
       ``(B) Notification by small business concern.--The 
     Administrator shall require a small business concern to 
     notify the Administrator, prior to being awarded a second 
     contract under paragraph (2)(A) or (2)(B), of such business 
     concern's attempt to be awarded a second contract under 
     paragraph (2)(A) or (2)(B). Not later than 90 days after the 
     date of the enactment of this subparagraph, the Administrator 
     shall establish procedures to implement this subparagraph.''.

     SEC. 402. LIMITATION ON CONSTRUCTION CONTRACTS.

       Section 31(b) of the Small Business Act (15 U.S.C. 657a(b)) 
     is amended by adding at the end the following:
       ``(6) Limit hubzone program construction contracts in or 
     near a hubzone.--A small business concern may not obtain a 
     construction contract by reason of the HUBZone program unless 
     the construction project is located in or near the HUBZone in 
     which the small business concern has its principal place of 
     business. The Administrator shall prescribe standards for 
     determining when a project is located `near' a HUBZone for 
     purposes of this paragraph, except that under no 
     circumstances can a project located more than 150 miles from 
     a HUBZone be located `near' that HUBZone.''.

     SEC. 403. ALLOWING SMALL BUSINESS CONCERNS THAT ARE NOT 
                   HUBZONE PROGRAM PARTICIPANTS TO PROTEST HUBZONE 
                   AWARDS.

       Section 31(c) of the Small Business Act (15 U.S.C. 657a(c)) 
     is amended by adding at the end the following new paragraph:
       ``(5) Protests by small business concerns.--For purposes of 
     this subsection, the term `interested party' shall include 
     any small business concern.''.

                 TITLE V--MODERNIZING THE 8(a) PROGRAM

     SEC. 501. MODERNIZING THE SECTION 8(A) PROGRAM NET WORTH 
                   LIMITATIONS.

       (a) Modifications to 8(a) Program.--Notwithstanding any 
     provision of the Small Business Act (15 U.S.C. 631 et seq.), 
     the Administrator shall administer the program under section 
     8(a) of such Act with the following modifications:
       (1) Determination for term of program.--For the purpose of 
     this section, an individual who has been determined by the 
     Administrator to be economically disadvantaged at the time of 
     program entry shall be deemed to be economically 
     disadvantaged for the term of the program.
       (2) Matters excluded.--In determining personal net worth, 
     the Administrator shall exclude from such determination the 
     following:
       (A) The value of any investment of an economically 
     disadvantaged owner in the small business concern, except 
     that such value shall be taken into account under this 
     paragraph when comparing such concerns to other concerns in 
     the same business area that are owned by other than socially 
     disadvantaged individuals.
       (B) The equity of an economically disadvantaged owner in a 
     primary personal residence.
       (3) Maximum net worth.--When considering an individual's 
     net worth for the purpose of determining the degree of 
     diminished credit and capital opportunities of such 
     individual, the Administrator shall consider an individual 
     net worth of $550,000 or less as tending to show diminished 
     credit and capital opportunities.
       (b) Effective Date for Modifications to the 8(a) Program.--
     This section shall apply with respect to small business 
     concerns that apply to the program under section 8(a) of the 
     Small Business Act (15 U.S.C. 637(a)) after the date of the 
     enactment of this Act.

     SEC. 502. EXTENSION OF THE SECTION 8(A) PROGRAM TERM.

       (a) Program Term.--The program term for the program under 
     section 8(a) of the Small Business Act shall be 10 years. The 
     first 6 years shall be the developmental phase, and the last 
     4 years shall be the transitional phase.

[[Page 28634]]

       (b) Effective Date for Modifications to the 8(a) Program.--
       (1) In general.--This section shall apply with respect to 
     small business concerns that apply to the program under 
     section 8(a) of the Small Business Act (15 U.S.C. 637(a)) 
     after the date of the enactment of this Act.
       (2) Transitional rule.--A small business concern 
     participating in the program under section 8(a) of such Act 
     (15 U.S.C. 637(a)) may participate for not more than 10 
     years.

     SEC. 503. REPORT ON IMPLEMENTATION.

       Section 155 of the Small Business Reauthorization and 
     Manufacturing Assistance Act of 2004 (15 U.S.C. 657g) is 
     amended by adding at the end the following: ``Annually, 
     concurrent with the submission of the Small Business 
     Administration's budget request to the Congress, the 
     Administrator shall submit to the Committee on Small Business 
     and Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives a report detailing 
     progress the Administrator has made towards the 
     implementation of this section.''.

     SEC. 504. ALLOWING SMALL BUSINESS CONCERNS THAT ARE NOT 
                   SECTION 8(A) PROGRAM PARTICIPANTS TO PROTEST 
                   SECTION 8(A) AWARDS.

       Section 8(a) of the Small Business Act (15 U.S.C. 637(a)) 
     is amended by adding at the end the following new paragraph:
       ``(22) Rules similar to the rules of paragraphs (5) and (6) 
     of subsection (m) shall apply for purposes of this 
     subsection.''.

                        TITLE VI--OTHER MATTERS

     SEC. 601. AFFILIATION FOR CERTAIN FRANCHISES.

       Section 3(a) of the Small Business Act (15 U.S.C. 632(a)) 
     is amended by adding at the end the following new paragraph:
       ``(5) Special rule relating to franchises in the temporary 
     employee services industry.--In determining whether a 
     franchisee is affiliated with a franchisor in the temporary 
     employee services industry, the Administrator shall--
       ``(A) disregard--
       ``(i) whether the franchisor finances the payroll of the 
     temporary staffing personnel (including billing, collecting, 
     and remitting client fees); and
       ``(ii) whether the temporary staffing personnel are treated 
     as employees or independent contractors of the franchisor for 
     tax or other purposes; and
       ``(B) consider the processing of payroll and billing by a 
     franchisor as customary and common practice in the temporary 
     employee services industry that does not provide probative 
     weight.''.

  The CHAIRMAN. No amendment to the bill is in order except those 
printed in House Report 110-407. Each amendment may be offered only in 
the order printed in the report, by a Member designated in the report, 
shall be considered read, shall be debatable for the time specified in 
the report, equally divided and controlled by the proponent and an 
opponent of the amendment, shall not be subject to amendment, and shall 
not be subject to a demand for division of the question.


                Amendment No. 1 Offered by Ms. Velazquez

  The CHAIRMAN. It is now in order to consider amendment No. 1 printed 
in House Report 110-407.
  Ms. VELAZQUEZ. Mr. Chairman, I offer an amendment.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 1 offered by Ms. Velazquez:
       At the end of title I, add the following:

     SEC. 104. PRIORITY FOR SEVERELY DISABLED VETERANS.

       In developing regulations to implement section 101, the 
     Administrator shall give a priority to those certified 
     service-disabled veterans that are severely disabled.
       Amend section 201 to read as follows:

     SEC. 201. REQUIRING BUSINESS INTEGRITY OF SMALL BUSINESS 
                   CONCERNS.

       Section 8 of the Small Business Act (15 U.S.C. 637) is 
     amended by adding at the end the following new subsection:
       ``(o) Requirement of Business Integrity.--No small business 
     concern may receive any benefit under section 8(a), 8(m), 
     31(b)(2)(A), 31(b)(2)(B), 36(a), or 36(b) unless the 
     Administrator first performs a background check on the owners 
     and officers of such small business concern and determines 
     that the owners and officers do not lack business integrity. 
     For purposes of such a determination, previous criminal 
     convictions will create a presumption of a lack of business 
     integrity.''.
       At the end of title II, add the following (and amend the 
     table of contents accordingly):

     SEC. 205. EXPANDING PROTEST AUTHORIZATION.

       Section 8(a) of the Small Business Act (15 U.S.C. 637(a)) 
     is amended by adding at the end the following new paragraphs:
       ``(22) Rules similar to the rules of paragraphs (5) and (6) 
     of subsection (m) shall apply for purposes of this 
     subsection.
       ``(23) For the purposes of challenging the eligibility of a 
     small business concern to receive an award under section 
     8(a), 8(m), 31(b)(2)(A), 31(b)(2)(B), 36(a), or 36(b), the 
     term `interested party' shall include any small business 
     concern.''.
       In section 8(m)(4) of the Small Business Act as proposed to 
     be added by section 301, strike subparagraph (B) and insert 
     the following:
       ``(B) Underrepresented industries.--Until such time as the 
     Administrator completes the identification of industries 
     required by subparagraph (A), the following industries, as 
     identified by their 2-Digit North American Industry 
     Classification System Code, are deemed underrepresented by 
     women in Federal contracting: 11 (Forestry), 21 (Mining), 22 
     (Utilities), 23 (Construction), 31 (Manufacturing), 32 
     (Manufacturing), 33 (Manufacturing), 42 (Wholesale Trade), 44 
     (Retail Trade), 45 (Retail Trade), 48 (Transportation), 49 
     (Transportation), 51 (Information), 52 (Finance and 
     Insurance), 53 (Real Estate and Rental and Leasing), 54 
     (Professional, Scientific, and Technical Services), 56 
     (Administrative and Support, Waste Management, and 
     Remediation Services), 61 (Education Services), 62 (Health 
     Care and Social Assistance), 71 (Arts, Entertainment, and 
     Recreation), 72 (Accommodation and Food Services), and 81 
     (Other Services).''.
       Strike sections 403 and 504.

  The CHAIRMAN. Pursuant to House Resolution 773, the gentlewoman from 
New York (Ms. Velazquez) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentlewoman from New York.
  Ms. VELAZQUEZ. Mr. Chairman, this amendment makes changes to the 
underlying bill to address outstanding issues in the bill. It ensures 
those veterans that are most severely disabled will have access to 
contracts. It also strengthens the business integrity standard and 
creates parameters to carry out the women's procurement program.
  Probably the most critical change in this amendment is the priority 
created for severely disabled veterans. The underlying bill already 
ensures that service-disabled veterans have greater access to 
contracts, but this takes it a step further.
  It provides that agencies who are carrying out the service-disabled 
veteran contracting program give special consideration to those 
returning entrepreneurs that have the most serious of injuries. It is 
simply the right thing to do for all these soldiers have given for 
their country.
  This amendment also provides taxpayers with greater protection by 
making certain the SBA performs criminal background checks prior to 
entering a program. It provides that those with criminal convictions 
are presumed to lack the business integrity required for participation.
  Finally, we worked with the minority to create a more workable 
standard for allowing the SBA to carry out the women's procurement 
program. This amendment specifies the industries that the Rand 
Corporation determined, in accordance with direction from the National 
Academies of Sciences, were underrepresented by women businesses.
  These measures will strengthen the bill to ensure a variety of 
deserving small businesses have better access to Federal contracts.
  I urge adoption of the amendment.
  Mr. Chairman, I reserve the balance of my time.
  Mr. CHABOT. Mr. Chairman, I ask unanimous consent to claim the time 
in opposition to the gentlelady's amendment, even though I do not 
oppose the amendment.
  The CHAIRMAN. Without objection, the gentleman from Ohio is 
recognized for 5 minutes.
  There was no objection.
  Mr. CHABOT. Mr. Chairman, her amendment makes some needed technical 
changes to the bill. Nevertheless, as I pointed out in my statement 
previously, we believe that this proposed solution to the failure of 
the SBA to implement the women's procurement is, in our view, 
overinclusive and should be further revised as the legislative process 
moves forward, but we do not oppose the amendment.
  Mr. Chairman, I yield back my time.
  Ms. VELAZQUEZ. Mr. Chairman, I just want to thank the gentleman from 
Ohio for working with me on this amendment. I urge adoption of the 
amendment, and I yield back my time.
  The CHAIRMAN. The question is on the amendment offered by the 
gentlewoman from New York (Ms. Velazquez).

[[Page 28635]]

  The amendment was agreed to.


                  Amendment No. 2 Offered by Mr. Akin

  The CHAIRMAN. It is now in order to consider amendment No. 2 printed 
in House Report 110-407.
  Mr. AKIN. Mr. Chairman, I offer an amendment.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 2 offered by Mr. Akin:
       At the end of title V, add the following new section (and 
     amend the table of contents accordingly):

     SEC. 505. ASSISTANCE STUDY.

       (a) Study.--The Administrator of the Small Business 
     Administration shall conduct a study to determine what 
     changes would be required to provide greater Federal 
     contracting assistance to participants in the program created 
     by section 8(a) of the Small Business Act that have less 
     equity in their business concerns than other participants in 
     the program.
       (b) Report.--Not later than 6 months after the date of the 
     enactment of this Act, the Administrator shall submit to the 
     Committee on Small Business and Entrepreneurship of the 
     Senate and the Committee on Small Business of the House of 
     Representatives a report detailing the results of the study 
     described in subsection (a).

  The CHAIRMAN. Pursuant to House Resolution 773, the gentleman from 
Missouri (Mr. Akin) and a Member opposed each will control 5 minutes.
  The Chair recognizes the gentleman from Missouri.
  Mr. AKIN. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, I rise today to offer this amendment to the Small 
Business Contracting Program Improvements Act. As many involved in the 
Federal contracting world know, the 8(a) program currently serves small 
businesses owned by citizens who are socially and economically 
disadvantaged.
  Since the 1960s, the 8(a) program has remained the primary vehicle 
through which minority-owned businesses enter the Federal marketplace. 
There is no doubt that since its inception the 8(a) has helped many 
minority-owned businesses grow their firms, enabling them to become 
real players in the Federal contracting world. In fact, over the course 
of the program, nearly 20,000 companies have received almost $100 
billion in Federal contracts.
  During committee markup of this bill, I expressed my reservations to 
Chairwoman Velazquez regarding certain provisions in the bill that 
exclude the equity in a business. I'm concerned that this provision 
undermines the argument concerning the competitive capacity of the 
business owners. I will explain.
  Many owners reinvest their earnings into their businesses, thus 
increasing the value of the business. If the 8(a) program is a business 
development program targeted toward socially and economically 
disadvantaged firms, why should the business owner with a valuable 
asset be permitted in the program and benefit from its existence? I 
would argue that the scarce resources available to assist these 
business owners be devoted to those business owners that are truly 
economically disadvantaged.
  My amendment is a straightforward amendment that I hope will address 
some of these concerns. Essentially, the amendment would ask the 
administrator of the Small Business Administration to conduct a study 
to determine what changes would be required to provide greater Federal 
contracting assistance to participants in the 8(a) program that have 
less equity in their business concerns than other participants in the 
program.
  I appreciate Chairwoman Velazquez's willingness to work with me on 
this important issue, and I believe that adoption of my amendment is 
one step towards ensuring that minority-owned small businesses who 
truly need assistance can continue to benefit from the opportunities 
provided to them by the 8(a) program.
  I would urge my colleagues to assist and support this amendment.
  In closing, my point on this is the following: As a business is small 
and most in need of the 8(a) program, we want to make sure that they 
can get as many of these programs as possible, and that will build 
their business up. As the business then prospers and grows through the 
years, they will continue to get these different 8(a) kinds of 
contracts, which give them essentially a 10 percent advantage.
  But as the business becomes bigger and stronger, what I'm interested 
in doing is creating a sliding scale so that those valuable contracts 
will be guaranteed to go to the most needy businesses, and as a 
business gets stronger and stronger, the number or the percentage of 
those contracts will tend to diminish as they become stronger and more 
able to survive on their own.
  I think that's a concept that has been understood and to some degree 
approved within the committee. The question is how do we mechanically 
work that out, and the purpose of this amendment is to give ourselves a 
little time to actually figure out mathematically how do you make sure 
that those contracts go to the most needy, and as people become less 
needy, that they have less and less dependence on.
  I very much appreciate the chairwoman's willingness to work with us 
on this, and hopefully we can figure out mechanically some way to do 
that that everybody could agree to.
  Mr. Chairman, I yield back my time.
  Ms. VELAZQUEZ. Mr. Chairman, while not opposed to the amendment, I 
ask unanimous consent to claim the time in opposition.
  The CHAIRMAN. Without objection, the gentlewoman from New York is 
recognized for 5 minutes.
  There was no objection.
  Ms. VELAZQUEZ. Mr. Chairman, I would like to thank my colleague from 
Missouri, a member of the Small Business Committee, for offering this 
amendment. I share the gentleman's concern about the concentration of 
contracts in the 8(a) program.
  In fact, these businesses are only in the program for 9 years, so it 
is important that they make that time count. Unfortunately, according 
to partial year data for 2006, the top 10 companies received 40 percent 
of the work; 93 percent of companies received no contracts.
  The gentleman's amendment requires the SBA to conduct a study to 
determine how best to provide additional contracting help to these less 
successful 8(a) participants. I appreciate his interest in the 8(a) 
program and his willingness to work with us to find a solution to a 
long-standing program.
  I agree with my colleague that, while a more successful firm is apt 
to receive more work than a less experienced company, the purpose of 
the program is business development. Given this, the SBA needs to 
provide increased contractual assistance to the companies that need it 
the most.
  The gentleman's amendment would allow us additional time to work 
together to craft a solution to ensure that 8(a) businesses, regardless 
of their financial strength, will be able to earn contracts. I look 
forward to working with the gentleman to perfect this language, and I 
appreciate his cooperation.
  We are prepared to accept this amendment, and I will yield to Mr. 
Chabot for any comments he may have.
  Mr. CHABOT. I thank the gentlelady for yielding. We agree with the 
comments both in the gentleman's points he made in his presentation as 
well as the gentlelady's, and we support the amendment as well.
  Ms. VELAZQUEZ. Mr. Chairman, I urge support of this amendment.
  Mr. Chairman, I yield back the balance of my time.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from Missouri (Mr. Akin).
  The amendment was agreed to.


            Amendment No. 3 Offered by Mr. Welch of Vermont

  The CHAIRMAN. It is now in order to consider amendment No. 3 printed 
in House Report 110-407.
  Mr. WELCH of Vermont. Mr. Chairman, I offer an amendment.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 3 offered by Mr. Welch of Vermont:
       Title IV, add at the end the following (and amend the table 
     of contents accordingly):

     SEC. __. STUDY ON EFFECTIVENESS OF HUBZONE PROGRAM IN 
                   REACHING RURAL AREAS.

       The Administrator of the Small Business Administration 
     shall carry out a study on

[[Page 28636]]

     the effectiveness of the HUBZone program in reaching rural 
     areas to determine whether there are needy areas that do not 
     qualify under the program and whether there are areas that 
     currently qualify under the program that are inconsistent 
     with the program's original intent. Not later than 6 months 
     after the date of the enactment of this Act, the 
     Administrator shall submit to Congress a report containing 
     the results of the study and any recommendations that the 
     Administrator considers appropriate for alternative ways to 
     evaluate eligibility for HUBZones in rural areas.

  The CHAIRMAN. Pursuant to House Resolution 773, the gentleman from 
Vermont (Mr. Welch) and a Member opposed each will control 5 minutes.
  The Chair recognizes the gentleman from Vermont.
  Mr. WELCH of Vermont. Mr. Chairman, I yield myself such time as I may 
consume.
  First, let me thank Chairwoman Velazquez and her staff and Mr. Chabot 
and the work that he has done, not just helping me on this amendment 
but the extraordinary productivity of the Small Business Committee. It 
has been an oasis of bipartisan cooperation and accomplishment in this 
legislative session.
  I'd also like to thank the cosponsor of this amendment, my colleague 
from Iowa, Congressman Bruce Braley, a member of the Small Business 
Committee.
  We've heard about the HUBZone program, that it provides assistance to 
small businesses located in historically underutilized business zones, 
or HUBZones, through limited competition contracts, sole source awards, 
or price evaluation preferences in full and open competitions. The 
Federal Governmentwide contracting goal for HUBZone small businesses 
is, as you know, Mr. Chairman, 3 percent. It's a very effective 
program.
  Across the country, more than 11,000 firms operate and employ people 
in distressed areas; 56 of these are located in Vermont. Eligible areas 
cover more than 7,000 urban census tracts, 900 rural and suburban 
areas.
  Historically, the HUBZone program has encountered some difficulties 
in rural areas, specifically in the way the program is defined. The 
current definition limits what SBA can do in looking at large areas 
versus small, and it makes it tough on rural States, like Vermont and 
many other rural parts of the Nation.
  In Vermont, for example, the entire Northeast Kingdom is a HUBZone, 
as well as all of Lamoille County. Other than that, only part of 
Burlington, Rutland and St. Albans are in the program, and this has 
left out some obviously what would appear to be eligible communities in 
towns like Springfield, Brattleboro, Bennington, Barre, Bellows Falls, 
and other parts of Rutland City.
  Small businesses critical in Vermont, just like everywhere else, 
create two out of every three new jobs, produce 39 percent of the gross 
national product, and is responsible for more than half of the Nation's 
technological innovation.
  My amendment with Mr. Braley is very simple. It would direct the SBA 
to conduct a study on how the HUBZone program is working to reach rural 
areas. The study should examine how HUBZone is defined, whether that 
definition works in rural areas as well as it does in urban and 
suburban areas. It makes specific recommendations of possible 
alternatives to better capture eligible or needy communities that so 
often exist in rural areas. Not only does it call on the administration 
to review whether needy communities are being left out, it also 
assesses whether areas within the program comply with the program's 
original intent.
  Mr. Braley and I urge our colleagues to support this amendment.

                              {time}  1245

  Mr. Chairman, I yield back the balance of my time.
  Ms. VELAZQUEZ. Mr. Chairman, while I am not opposed to the amendment, 
I ask unanimous consent to claim the time in opposition.
  The CHAIRMAN. Without objection, the gentlewoman from New York is 
recognized for 5 minutes.
  There was no objection.
  Ms. VELAZQUEZ. Mr. Chairman, it is becoming increasingly concerning 
that companies may be receiving HUBZone contracting preferences 
inappropriately.
  Since 2003, the SBA Inspector General has released two reports 
identifying the potential for contracting fraud in this program. Most 
recently, in 2006, the IG has found that more than 80 percent of 
companies are not eligible 3 years after they were approved. In nearly 
20 States, we have identified multimillion dollar properties in areas 
designated as HUBZone. If a company located in one of these zones 
employed people who lived in similar conditions, they would be eligible 
for contracting preferences over small businesses.
  The gentleman's amendment addresses the issue that some areas of the 
country are designated HUBZone. That should not be. At the same time, 
this will also require the SBA to examine why some deserving areas are 
not being designated appropriately. To resolve this inconsistency, the 
amendment requires the SBA to carry out a study that includes 
recommendations for alternative ways to evaluate HUBZone eligibility.
  There is no rational reason why some of the most affluent areas in 
the country are eligible for government contracting preferences, while 
truly deserving areas are overlooked.
  We are prepared to accept this amendment, and I will yield to Mr. 
Chabot for any comments he may have.
  Mr. CHABOT. I thank the gentlelady for yielding.
  Mr. Chairman, we have no opposition to this amendment. We would thank 
Mr. Welch of Vermont for his hard work on this and his leadership on 
the committee.
  Ms. VELAZQUEZ. Mr. Chairman, I urge support of this amendment.
  I yield back the balance of my time.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from Vermont (Mr. Welch).
  The amendment was agreed to.


                  Amendment No. 4 Offered by Mr. Mica

  The CHAIRMAN. It is now in order to consider amendment No. 4 printed 
in House Report 110-407.
  Mr. MICA. Mr. Chairman, I offer an amendment.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 4 offered by Mr. Mica:
       Add at the end of title VI the following (and amend the 
     table of contents accordingly):

     SEC. ___. CLARIFICATION OF APPLICABILITY OF SMALL BUSINESS 
                   SET-ASIDES.

       Section 15 of the Small Business Act (15 U.S.C. 644) is 
     amended by adding at the end the following:
       ``(q) Clarification of Applicability.--For purposes of any 
     small business set-asides authorized under this section, the 
     term `contract' shall not exclude any acquisition or order 
     under any Federal Supply Schedule or Multiple Award 
     Schedule.''.

  The CHAIRMAN. Pursuant to House Resolution 773, the gentleman from 
Florida (Mr. Mica) and a Member opposed each will control 5 minutes.
  The Chair recognizes the gentleman from Florida.
  Mr. MICA. Mr. Chairman and my colleagues, I have this amendment No. 4 
which would clarify the small business set-aside provisions of the 
Small Business Act and require that it, in fact, apply to Federal 
contracts not excluding Federal supply schedule and multiple award 
scheduled holders.
  Now, this is a mandatory provision, and I have accepted some of the 
objections from my side of the aisle in not moving forward with this 
particular provision. I do have the next amendment in line, which does 
deal with a similar issue, and I would like to ask unanimous consent to 
withdraw the amendment at this time.
  The CHAIRMAN. Is there objection to the request of the gentleman from 
Florida?
  Ms. VELAZQUEZ. Mr. Chairman, I reserve the right to object.
  I am surprised that the gentleman is withdrawing his amendment since 
I was prepared to accept the amendment. I think this is a problem that 
needs to be addressed. I am willing to work with the gentleman to 
address this issue.
  Mr. MICA. If I may, if the gentlelady would yield, I look forward to 
working with you. I am delighted that your side

[[Page 28637]]

of the aisle was willing to accept this amendment. I would like to work 
and move forward with you in a bipartisan effort.
  But in order to get one of the two amendments to work with my side of 
the aisle in fairness and not pass a mandatory provision, I am prepared 
to withdraw the amendment and work with the gentlelady and the 
committee and thank everyone for their consideration.
  Ms. VELAZQUEZ. Mr. Chairman, I withdraw my reservation.
  The CHAIRMAN. Without objection, the amendment is withdrawn.
  There was no objection.


                  Amendment No. 5 Offered by Mr. Mica

  The CHAIRMAN. It is now in order to consider amendment No. 5 printed 
in House Report 110-407.
  Mr. MICA. Mr. Chairman, I offer an amendment.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 5 offered by Mr. Mica:
       At the end of title VI, add the following (and amend the 
     table of contents accordingly):

     SEC. ___. SENSE OF THE HOUSE OF REPRESENTATIVES ON 
                   ACQUISITIONS CONDUCTED UNDER THE GENERAL 
                   SERVICES ADMINISTRATION'S FEDERAL SUPPLY 
                   SCHEDULE.

       (a) Findings.--Congress finds the following:
       (1) The Small Business Act was adopted by Congress to 
     ensure that small business concerns receive fair access to, 
     and a fair share of, Federal government contracts and 
     subcontracts.
       (2) There is a disagreement between the General Services 
     Administration and the Small Business Administration on 
     whether the Small Business Act applies to the acquisitions 
     under the General Services Administration's Federal Supply 
     Schedule, which account for over $30,000,000,000 in 
     procurement dollars awarded each year.
       (3) As demonstrated in proceedings of the White House 
     Acquisition Advisory Panel, small businesses hold 79.6 
     percent of contracts under the Federal Supply Schedule, but 
     receive only 37.1 percent of dollars awarded under the 
     Federal Supply Schedule, and this disparity has a significant 
     impact on the competitive viability of small business 
     concerns in government contracting.
       (b) Sense of the House.--Therefore, it is the sense of the 
     House of Representatives that small business set-asides 
     should not be excluded from any acquisitions under the 
     General Services Administration's Federal Supply Schedule.

  The CHAIRMAN. Pursuant to House Resolution 773, the gentleman from 
Florida (Mr. Mica) and a Member opposed each will control 5 minutes.
  The Chair recognizes the gentleman from Florida.
  Mr. MICA. Mr. Chairman and Members of the House, Mr. Chabot and the 
Chair of the Small Business Committee, I am pleased to present another 
amendment, as I indicated in withdrawing the first amendment, that is 
not mandatory in nature, but does bring to light and address some of 
the problems that we have had with an interpretation of acquisitions 
under the GSA Federal supply schedule, some different interpretation.
  This amendment would state that it is, in fact, a sense of the House 
of Representatives that small business set-asides should not be 
excluded from any acquisitions under the General Services 
Administration Federal supply schedule.
  Let me explain, if I may, for just a moment here. The Small Business 
Act was adopted by Congress to, in fact, ensure that small businesses 
would receive fair access and a fair share of Federal Government 
contracts and subcontracts. In fact, section 15 of the act requires 
that all contracts below $100,000 be reserved for small businesses.
  But, unfortunately, there are some questions that have been raised. 
The Small Business Act also requires set-aside opportunities for 
service-disabled veterans, for businesses in distress, and companies 
owned by women and disadvantaged persons. However, again, here is where 
some of the problem lies. There is a disagreement between GSA, the 
General Services Administration, and SBA on whether the small business 
set-aside applies to acquisitions under the Federal GSA Federal supply 
schedule.
  Because of this GSA-SBA disagreement on provisions of the Small 
Business Act, some small businesses, in fact, are being excluded from 
GSA contracting opportunities; and that's not our intent.
  What's taken place on September 4, 2007, just a short time ago, SBA 
issued an opinion that Small Business Act set-aside requirements do 
apply to the GSA schedule. My amendment today would only state that it 
is a sense of the House of Representatives that the small business set-
aside should not be excluded from any acquisition under GSA's Federal 
supply schedule.
  We tried to send a polite message. Part of my reason for being here 
is one of the small business persons in my district, Raul Espinosa, he 
is a St. Augustine small business owner, his company is a small 
business, again, in the heart of my district. He has a company called 
Fit Net Purchasing Alliance and Fit Net, is, in fact, a disadvantaged 
minority and emerging small business. They operate as a buying group 
specializing but not limited to athletic, wellness and rehab market 
segments.
  This small business operator brought this to my attention, and it is 
a great example of how this system should work. When the agencies don't 
work, when you have lack of understanding and definition and law, or in 
procedures, it's small businesses and someone like Raul Espinosa who 
has brought to my attention, as his elected representative, some of the 
problems that have arisen.
  This is a clarification amendment. We may want to go beyond this, as 
the chairlady has indicated her willingness to do, and possibly from my 
side of the aisle I think we can work together and make this work the 
way it's intended.
  Mr. Chairman, I reserve the balance of my time.
  Ms. VELAZQUEZ. Mr. Chairman, while not opposed to the amendment, I 
ask unanimous consent to claim time in opposition.
  The CHAIRMAN. Without objection, the gentlewoman from New York is 
recognized for 5 minutes.
  There was no objection.
  Ms. VELAZQUEZ. The gentleman's amendment reflects a sense of the 
House that laws requiring competition among only small businesses 
should apply to the General Services Administration's Federal supply 
schedules.
  The GSA consistently points to nearly 80 percent of contracts under 
schedules going to small businesses. The reality is that as far as 
dollars, small firms get less than 40 percent. With the exception of 
the GSA schedules, every agency must ensure that small businesses are 
the priority for contracts valued at more than $2,500 and less than 
$100,000. Even when the GSA enters into a contract itself, not using 
the schedules, the SBA statute applies.
  Recently, the GSA's general counsel has pointed to a conflict between 
the statute that authorizes the Federal supply schedules and the SBA 
statute. Because Congress has not spoken to the contradiction, GSA 
relies on its own interpretation.
  GSA schedules represent billions of dollars in contracting 
opportunities that simply aren't available to small firms because of 
the GSA's incorrect interpretation of the statute. The gentleman's 
amendment will provide a direction that is missing between these 
conflicting statutes, an issue to be supported. Not only will small 
businesses see increased dollars as a result; taxpayers will receive 
lower costs due to the flexibility and efficiency that small firms are 
able to offer.
  Mr. Chairman, I am prepared to accept this amendment, and I will 
yield to Mr. Chabot for any comments he may have.
  Mr. CHABOT. I thank the gentlelady for yielding.
  Mr. Chairman, we have no opposition to this amendment. We would thank 
the gentleman for his hard work in offering the amendment.
  Ms. VELAZQUEZ. I urge support for this amendment and I yield back the 
balance of my time.
  Mr. MICA. How much time do I have remaining, might I inquire.
  The CHAIRMAN. The gentleman from Florida has 1 minute remaining.
  Mr. MICA. Mr. Chairman, I won't take all of that minute, but I do 
again want to thank again the gentlelady, the Chair of the SBA 
Committee, and Mr. Chabot, the ranking member.

[[Page 28638]]

  This is a great example of how government should work, having a 
constituent, a small business person in my district, bring unfairness, 
the lack of definition about procedures here with the SBA and GSA, two 
government agencies, and try to get a resolution.
  I am delighted to be here. I am trying to think back in 15 years if I 
have ever brought an amendment up and have everybody agree on it like 
this. I don't think so, but it's a special occasion.
  Mr. CHABOT. Will the gentleman yield?
  Mr. MICA. I yield to the gentleman from Ohio.
  Mr. CHABOT. I was just going to say, that is the way this committee 
works, right, Madam Chair?
  Ms. VELAZQUEZ. Yes.
  Mr. MICA. Mr. Chairman, I yield back the balance of my time.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from Florida (Mr. Mica).
  The amendment was agreed to.


            Amendment No. 6 Offered by Mr. Moran of Virginia

  The CHAIRMAN. It is now in order to consider amendment No. 6 printed 
in House Report 110-407.
  Mr. MORAN of Virginia. Mr. Chairman, I offer an amendment.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 6 offered by Mr. Moran of Virginia:
       Title VI, add at the end the following (and amend the table 
     of contents accordingly):

     SEC. __. STUDY ON FRIVOLOUS PROTESTS.

       (a) Study.--The Administrator of the Small Business 
     Administration shall conduct a study to determine, with 
     respect to small business contracts, whether incumbent 
     Federal contractors submit frivolous protests to extend the 
     length of current contracts before protest decisions are 
     resolved.
       (b) Contents.--In conducting the study, the Administrator 
     shall--
       (1) determine the number of Government Accountability 
     Office bid protests and Small Business Administration size 
     protests filed by incumbent Federal contractors with respect 
     to small business contracts, the number of incumbent 
     contracts extended because of the protest, the extra costs of 
     extending incumbent contracts during the protest, and the 
     final rulings of these protests;
       (2) determine the financial impact of protests filed by 
     incumbent Federal contractors on small businesses that were 
     originally awarded the protested small business contracts, 
     including costs associated with defending the protests and 
     costs incurred by Federal agencies;
       (3) identify the incumbent Federal contractors that file 
     the most unsuccessful protests on small business contracts; 
     and
       (4) develop recommendations--
       (A) to ease any financial burden on small businesses during 
     the protest of small business contracts; and
       (B) to discourage frivolous protests by incumbent Federal 
     contractors on small business contracts.
       (c) Consultation.--In conducting the study, the 
     Administrator shall consult with the Government 
     Accountability Office, any necessary Federal agencies, and 
     the Office of Federal Procurement Policy.
       (d) Report.--Not later than 180 days after the date of the 
     enactment of this Act, the Administrator shall submit to 
     Congress a report on the results of the study, together with 
     the recommendations developed under subsection (b)(4).

  The CHAIRMAN. Pursuant to House Resolution 773, the gentleman from 
Virginia (Mr. Moran) and a Member opposed each will control 5 minutes.
  The Chair recognizes the gentleman from Virginia.
  Mr. MORAN of Virginia. Mr. Chairman, I yield myself such time as I 
may consume.
  Mr. Chairman, I first want to thank the chairwoman of the Small 
Business Committee for her leadership in bringing this bill to the 
floor today. I appreciate the membership on both sides of the committee 
for finding an agreement on so many issues that are important to small 
businesses.
  They know that small businesses must overcome long odds and difficult 
obstacles in navigating the waters of Federal contracting. Size 
thresholds, growth requirements, endless paperwork and late contracts 
payments are all part of the challenges that competing small businesses 
regularly face.
  Yet there is another challenge that has been brought to my attention. 
Some small businesses, after being awarded a competitively bid 
contract, must face frivolous protests by the incumbent contractors 
just for the purposes of delaying the award of a contract. For an 
incumbent contractor, there is an economic incentive to protest an 
award, even if there is no substance to the challenge. The award to the 
small business is thus delayed, and the current contract is retained 
until the protest is concluded. It can take months or even years before 
the dispute is resolved by the government.
  In the meantime, the incumbent contractor can reap millions more for 
the extended contract that they had been granted previously but lost 
out on. These protests have serious consequences for many small 
businesses. During protests, the small businesses must cover their 
legal costs. Moreover, they must cover payroll and administrative costs 
for the workforce that they hired for the awarding contract. That's 
before they ever get paid by the Federal Government. These costs can 
cripple some small businesses that run on tight budgets without built-
in overhead for the costly protests.

                              {time}  1300

  In other words, it's an uneven playing field.
  This amendment will require the Small Business Administration to 
study the degree to which incumbent contractors are submitting 
frivolous protests to extend the length of current contracts. It's a 
problem I know exists because many of my constituent companies have, in 
fact, experienced it firsthand.
  The Small Business Administration's study will determine the number 
and the merit of GAO and SBA protests that are filed by incumbent 
contractors and analyze the number of extended contracts. It'll analyze 
the extra costs of extending contracts, including the costs to small 
businesses that won the initial award of those contracts, and the costs 
incurred by Federal agencies as a result.
  Finally, it will develop recommendations to ease the financial burden 
on small businesses during protests and offer recommendations to 
discourage frivolous protests made to squeeze small businesses.
  It's clear that not all incumbent contractors submit frivolous bids. 
But it's also equally clear that there are some built-in incentives for 
incumbents to submit protests that they know have little merit but, 
nevertheless, will enable them to profit by the delay.
  Mr. Chairman, I ask for support of this amendment so that small 
businesses can cope with frivolous incumbents' protests, and I look 
forward to working with the Small Business Committee on this ongoing 
issue of fairness.
  I will retain whatever time is left.
  Ms. VELAZQUEZ. Mr. Chairman, while not opposed to the amendment, I 
ask unanimous consent to claim the time in opposition.
  The CHAIRMAN. Without objection, the gentlewoman from New York is 
recognized for 5 minutes.
  There was no objection.
  Ms. VELAZQUEZ. Mr. Chairman, I would like to thank the gentleman for 
offering this amendment.
  Certainly, frivolous litigation is a problem in any scenario. Our 
justice system is a valuable tool for the good-faith settling of 
claims, but it is costly and time consuming, and should never be used 
for purposes other than what was originally intended. If incumbent 
contractors are, in fact, using the bid process size protest mechanisms 
to extend the length of contracts, this problem needs to be addressed.
  Small businesses face enough barriers in their efforts to enter the 
Federal marketplace. Having to fight frivolous lawsuits should not be 
one of them. If businesses, particularly mega-contractors, are using 
their position to prevent qualified contractors from doing Federal work 
by exploiting a loophole, the American taxpayer loses out.
  The gentleman's amendment addresses this issue by requiring a study 
to determine the number of relevant protests, the financial impact on 
small businesses, and recommendations for solving any problems 
discovered.
  The protest process was designed to create due process, not to create 
unfair

[[Page 28639]]

advantages. This study will help to determine if there is a problem 
that needs to be further addressed.
  I appreciate the gentleman bringing attention to this small business 
barrier, and although frivolous lawsuits can be devastating for anyone 
in the business community, it can be a particular burden for smaller 
companies. Adding litigation costs to an already limited cash flow is 
unrealistic for many small businesses, and I will be interested to see 
if this is what they're being forced to do.
  It would allow our committee to fully understand if further changes 
are needed.
  We are prepared to accept this amendment, Mr. Chairman, and I will 
yield to Mr. Chabot for any comments he may have.
  Mr. CHABOT. Thank you, Madam Chairwoman.
  We do not oppose this amendment. We would thank the gentleman and his 
staff for their hard work and the research in considering this and 
offering the amendment.
  Ms. VELAZQUEZ. Mr. Chairman, I urge support of this amendment, and I 
yield back.
  Mr. MORAN of Virginia. I am prepared to yield back the balance of my 
time. I do want to thank Heath Bumgardner of my staff for doing the 
work on this. And I've enjoyed working with the Small Business 
Committee and their staff on both sides of the aisle.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from Virginia (Mr. Moran).
  The amendment was agreed to.


                  Amendment No. 7 Offered by Mr. Baird

  The CHAIRMAN. It is now in order to consider amendment No. 7 printed 
in House Report 110-407.
  Mr. BAIRD. Mr. Chairman, I offer an amendment.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 7 offered by Mr. Baird:
       At the end of title V, insert the following new section 
     (and amend the table of contents accordingly):

     SEC. 505. EXAMINATION OF LIST OF GROUPS THE MEMBERS OF WHICH 
                   ARE PRESUMED TO BE SOCIALLY DISADVANTAGED FOR 
                   PURPOSES OF SMALL DISADVANTAGED BUSINESS 
                   PROGRAM.

       The Administrator of the Small Business Administration 
     shall examine the list of groups the members of which are 
     presumed to be socially disadvantaged for purposes of the 
     Small Disadvantaged Business program under section 8(a) of 
     the Small Business Act and shall consider whether the list 
     should be updated to include additional groups. Not later 
     than 6 months after the date of the enactment of this Act, 
     the Administrator shall submit to Congress a report on the 
     results of the examination.

  The CHAIRMAN. Pursuant to House Resolution 773, the gentleman from 
Washington (Mr. Baird) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from Washington.
  Mr. BAIRD. I thank the chairwoman for the time and applaud her for 
her leadership of the Small Business Committee. I also want to thank 
the ranking member for his leadership as well.
  I rise today with an amendment to improve and update the Small 
Business Administration's Small Disadvantaged Business Program.
  My amendment would direct the administrator of the Small Business 
Administration to examine the list of groups under the Disadvantaged 
Business Program and consider whether it should be updated to include 
additional groups. This amendment does not mandate that any group be 
added and would not affect those well-deserving groups already 
included.
  Let me explain why I believe this issue deserves our attention. The 
issue was brought to my attention by an Afghani American entrepreneur 
in my own district who is not eligible to receive SBA assistance under 
the Small Business Development Program. After researching the matter, I 
learned that the SBA does not include Afghani or Iraqi Americans in the 
Small Disadvantaged Business Program.
  I found this troubling, frankly. As we seek to spread democracy to 
other nations around the world, we ought to consider how we are helping 
or not helping individuals from those countries who have come to the 
United States. For example, at a time when we are promoting the 
American Dream in Afghanistan, I believe we should be doing more to 
promote this dream to those of Afghani descent who have come to the 
United States to seek a better way of life. The same applies to the 
refugees who've helped our Nation in its Iraq mission but have been 
forced to flee their own lands for having given us that very 
assistance.
  I hope we would all agree that as we work to spread democracy and 
freedom to other nations, we should consider how we're treating 
individuals from those countries who have come to the United States. 
Should my amendment be accepted, I hope that the administrator will pay 
special attention to those countries to which our Armed Forces have 
been deployed since September 11.
  Some may be surprised to learn that the SBA has not updated their 
list of groups since 1989. I believe it's a good time now to revisit 
this list and to ensure that this program is not excluding any group 
who deserve assistance.
  I would ask my colleagues to join me in supporting this commonsense 
amendment. I would ask for your support.
  I reserve the balance of my time.
  Ms. VELAZQUEZ. Mr. Chairman, while not opposed to the amendment, I 
ask unanimous consent to claim the time in opposition.
  The CHAIRMAN. Without objection, the gentlewoman from New York is 
recognized for 5 minutes.
  There was no objection.
  Ms. VELAZQUEZ. Mr. Chairman, the gentleman's amendment requires the 
SBA to review who should be considered socially disadvantaged for entry 
into the 8(a) program and whether there should be any updates.
  Prior to today, the last Congressional action on the 8(a) program 
took place in 1988. For nearly 20 years, the 8(a) program has not seen 
one significant change. One aspect of the program, social disadvantage, 
has also remained unchanged.
  My colleague's amendment recognizes that our country in 2007 does not 
look like it did in 1988. The face of America is changing. The 8(a) 
program must reflect the new look of the Nation.
  This amendment addresses the concern that in several years the SBA 
has not reviewed or expanded who is considered socially disadvantaged. 
Given this, deserving business owners are likely being shut out.
  We also know, as members of the committee, that without definite 
direction the SBA is unlikely to act, let alone in a timely fashion. 
The gentleman's amendment will ensure that the SBA examines the issue 
and makes changes, as appropriate, within 6 months.
  We are prepared, Mr. Chairman, to accept this amendment, and I will 
yield to Mr. Chabot for any comments that he might have.
  Mr. CHABOT. I thank the gentlelady for yielding, and I thank the 
gentleman for offering his amendment. He has been willing to, I think, 
stand up and make courageous stands on occasion. I think he is to be 
commended for that.
  Relative to this particular amendment, as I stated in my opening 
statement, I have some concerns of the bill in general because of the 
segmenting of various groups and sometimes pitting one against another 
and being competitive with each other, and so I can't say that I 
honestly would be in favor of a number of additional groups again 
further segmenting this.
  But this just calls for a study and doesn't implement any particular 
groups or propose any additional new groups. So, for that reason, I 
would not oppose the amendment, and I want to thank him for his 
thoughtful consideration of this.
  Ms. VELAZQUEZ. Mr. Chairman, I urge the adoption of this amendment, 
and I yield back the balance of my time.
  Mr. BAIRD. I thank the gentlelady, the Chair, and the ranking member 
for their support of this. Point well taken. This does call for a 
study. I think there are a number of groups under criteria

[[Page 28640]]

that establish this program, merit discussion and examination, and 
particularly those who have come to our aid overseas. I'm familiar with 
some really heart-wrenching stories of folks who have been 
extraordinarily helpful to our country and face great personal hardship 
in Iraq and in Afghanistan. If we can help them rebuild their lives 
over here if they're forced to flee their country, that would be a 
meritorious deed.
  But again, this is just calling for a study and, therefore, I urge 
its passage. I am grateful for the support.
  I yield back the balance of my time.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from Washington (Mr. Baird).
  The amendment was agreed to.


      Amendment No. 8 Offered by Ms. Ginny Brown-Waite of Florida

  The CHAIRMAN. It is now in order to consider amendment No. 8 printed 
in House Report 110-407.
  Ms. GINNY BROWN-WAITE of Florida. Mr. Chairman, I offer an amendment.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 8 offered by Ms. Ginny Brown-Waite of 
     Florida:
       At the end of title VI, add the following new section (and 
     amend the table of contents accordingly):

     SEC. 602. SMALL BUSINESS ADMINISTRATION LIAISON.

       (a) Establishment.--The Administrator of the Small Business 
     Administration shall create a liaison position whose duty it 
     is to ensure that section 2(i) of the Small Business Act is 
     carried out.
       (b) Functions.--In carrying out the duty described in 
     subsection (a), the liaison shall consult with the Assistant 
     Secretary of the Department of Homeland Security for United 
     States Immigration and Customs Enforcement.

  The CHAIRMAN. Pursuant to House Resolution 773, the gentlewoman from 
Florida (Ms. Ginny Brown-Waite) and a Member opposed each will control 
5 minutes.
  The Chair recognizes the gentlewoman from Florida.
  Ms. GINNY BROWN-WAITE of Florida. Mr. Chair, section 2(i) of the 
Small Business Act states that only those lawfully in the United States 
shall receive funds under the Act.
  My amendment establishes a Small Business Liaison to ensure that 
section will be followed. That's what the amendment does. It mirrors 
language contained in my bill, H.R. 3496, which requires the liaison to 
work in tandem with the Department of Homeland Security and the U.S. 
Immigration and Customs Enforcement group.
  Listen up, America. We are the land of opportunity, and small 
business owners make up the backbone of our economy. However, Congress 
cannot continue to encourage and foster small businesses in our Nation, 
if we are not making those here legally an actual priority.
  This simple amendment will ensure that small business loans and 
grants are going to those who follow the immigration rules that we have 
in place. Therefore, I urge the Members of this body to support this 
amendment.
  And I certainly want to thank the gentlelady from my former home 
State of New York for working with us on this amendment.
  I reserve the balance of my time.
  Ms. VELAZQUEZ. Mr. Chairman, while not opposed to the amendment, I 
ask unanimous consent to claim the time in opposition.
  The CHAIRMAN. Without objection, the gentlewoman from New York is 
recognized for 5 minutes.
  There was no objection.
  Ms. VELAZQUEZ. Mr. Chairman, the amendment offered by Ms. Ginny 
Brown-Waite seeks to ensure that taxpayer dollars go to small 
businesses that are complying with our immigration laws and not 
benefiting those that are breaking these laws.
  While currently the Small Business Administration's Act prohibits the 
use of funds to benefit or assist individuals that are not lawfully 
within the United States, this change would allow for greater 
accountability. Creating a liaison between the Small Business 
Administration and the Department of Homeland Security on this matter 
will increase oversight and ensure that the agency's budget is being 
spent lawfully, efficiently and responsibly.
  I also am grateful to have an ally in fighting this administration's 
efforts to reduce resources at the Small Business Administration. The 
fact is that the Small Business Administration needs personnel in 
carrying out this provision, as well as other critical operations.
  We share the goal of ensuring that no funds expended under the Small 
Business Contracting Programs Improvement Act are used in such a 
manner. Sometimes having a law on the books isn't enough, and this 
amendment will go a step further in making sure that someone is there 
at the SBA actively enforcing this important spending provision.
  We are prepared to accept this amendment, Mr. Chairman, and now I 
will yield to Mr. Chabot for any comments he may have.
  Mr. CHABOT. I thank the gentlelady for yielding. And I want to 
compliment and thank the gentlelady from Florida for offering this 
important amendment. I think it certainly is a good addition to the 
bill.
  I think it's clear that most Americans would only want those that are 
in this country legally to benefit from these types of taxpayer-funded 
programs. So it's a very good amendment, and I want to thank you for 
offering it, and we certainly will support it.

                              {time}  1315

  Ms. VELAZQUEZ. Mr. Chairman, I yield back the balance of my time.
  Ms. GINNY BROWN-WAITE of Florida. Mr. Chairman, I certainly want to 
thank the chairwoman for her cooperation on this. I think the key word, 
the operative word, here is obviously ``accountability.'' And I think 
this amendment will help to improve an already good bill.
  Mr. Chairman, I yield back the balance of my time.
  The CHAIRMAN. The question is on the amendment offered by the 
gentlewoman from Florida (Ms. Ginny Brown-Waite).
  The amendment was agreed to.


               Amendment No. 9 Offered by Mrs. Gillibrand

  The CHAIRMAN. It is now in order to consider amendment No. 9 printed 
in House Report 110-407.
  Mrs. GILLIBRAND. Mr. Chairman, I offer an amendment.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 9 offered by Mrs. Gillibrand:
       At the end of title II, add the following (and amend the 
     table of contents accordingly):

     SEC. ___. PROHIBITION ON CONTRACT AWARDS TO CONTRACTORS IN 
                   VIOLATION OF IMMIGRATION LAWS.

       Any employer found, based on a determination by the 
     Secretary of Homeland Security or the Attorney General to 
     have engaged in a pattern or practice of hiring, recruiting 
     or referring for a fee, for employment in the United States 
     an alien knowing the person is an unauthorized alien shall be 
     subject to debarment from the receipt of future Federal 
     contracts under this Act.

  The CHAIRMAN. Pursuant to House Resolution 773, the gentlewoman from 
New York (Mrs. Gillibrand) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentlewoman from New York.
  Mrs. GILLIBRAND. Mr. Chairman, I yield myself such time as I may 
consume.
  First, I would like to thank my fellow New York colleague, Chairwoman 
Velazquez, for her leadership on this bill and for her constant effort 
to help our small businesses grow and prosper in America.
  Small businesses are the foundation of upstate New York's economy. 
Small businesses represent over 99 percent of all employers and half of 
all private sector employees. More importantly, small businesses 
generate up to 80 percent of new jobs in America.
  The bill that is on the floor today would allow upstate New York's 
small businesses to have increased opportunities to compete for Federal 
contracts against larger companies. Last year small businesses received 
only 21.5 percent of Federal contracts, which is

[[Page 28641]]

much too small; and I look forward to this bill's passing on the floor 
that will allow our small businesses, especially disabled veteran-owned 
businesses, to compete for Federal contracts.
  My amendment to this bill is very simple: businesses that continue to 
break the law by hiring illegal aliens should not be eligible for 
Federal contracts.
  Mr. Chairman, we must reward businesses that play by the rules and 
punish those who do not. It is important that we fix our broken 
immigration system, and an important component of that is to cut off 
availability of jobs for undocumented workers, which can only be done 
when employers refuse to hire them. There are an estimated 12 million 
illegal aliens in this country; and if jobs are not available to them, 
then there will not be an incentive for them to come or remain here in 
America illegally. Hiring illegal aliens is against the law in America, 
and my amendment ensures that employers who knowingly hire illegal 
aliens cannot have access to the over $400 billion in Federal contracts 
that are awarded each year. This amendment will ensure accountability 
with taxpayers' money by preventing businesses who hire illegal aliens 
from receiving Federal contracts.
  I urge my colleagues to vote ``yes.''
  Mr. Chairman, I reserve the balance of my time.
  Ms. VELAZQUEZ. Mr. Chairman, while I am not opposed to the amendment, 
I ask unanimous consent to claim the time in opposition.
  The CHAIRMAN. Without objection, the gentlewoman from New York is 
recognized for 5 minutes.
  There was no objection.
  Ms. VELAZQUEZ. Mr. Chairman, I want to thank my colleague from New 
York for her amendment to ensure that Federal contractors are complying 
with the immigration laws of our Nation. I would like to ensure that 
the interpretation of the debarment provisions referenced in the 
gentlewoman's amendment are consistent with the debarment process as 
provided in the Federal Acquisition Regulation.
  Mr. Chairman, small businesses face many obstacles in securing a 
workforce, and one of them is ensuring that their employees have the 
proper legal status. All of our employers are expected to comply with 
our immigration laws, and they should not be forced to compete in the 
Federal marketplace with those who are skirting these laws. Small 
businesses should be rewarded for ensuring that their employees are 
here legally.
  My colleague's amendment ensures that no contractor who has a pattern 
of knowingly employing unauthorized workers will receive contracts 
under the Small Business Contracting Program Improvements Act. 
Furthermore, contractors found to be in violation of the employment 
provisions required under immigration law will face the possibility of 
debarment.
  Participation in SBA's procurement programs is a privilege and not a 
right. As such, we expect participants to uphold the law. Those 
businesses that choose not to comply should not receive the benefits of 
SBA contract assistance.
  I appreciate the gentlewoman's attention to this issue and commitment 
to ensuring that contractors who choose to violate immigration law will 
not benefit from it. While there may be disagreement on reforming our 
immigration system, we all agree that employers must comply with those 
laws that are on the books. This is simply a matter of fairness.
  We are prepared to accept the amendment, and I will yield to Mr. 
Chabot for any comments he may have.
  Mr. CHABOT. I thank the gentlewoman for yielding.
  I strongly support the gentlewoman from New York's amendment. I think 
it certainly improves the bill. It's just clear, I think, many, many 
Members on both sides of the aisle want to make clear that we don't 
think that taxpayer dollars ought to be going for illegal immigrants. 
And companies that are knowingly hiring people who are here illegally 
should not be able to benefit from any Federal dollars. And I think the 
gentlewoman by offering this amendment has improved the bill, and I 
want to thank her for offering this.
  Ms. VELAZQUEZ. Mr. Chairman, I urge support of this amendment, and I 
yield back the balance of my time.
  Mrs. GILLIBRAND. I thank the gentleman and I thank Madam Chairman.
  I yield back the balance of my time.
  The CHAIRMAN. The question is on the amendment offered by the 
gentlewoman from New York (Mrs. Gillibrand).
  The amendment was agreed to.


                Amendment No. 10 Offered by Mr. Lampson

  The CHAIRMAN. It is now in order to consider amendment No. 10 printed 
in House Report 110-407.
  Mr. LAMPSON. Mr. Chairman, I offer an amendment.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 10 offered by Mr. Lampson:
       At the end of title VI, add the following:

     SEC. __. PROHIBITION ON BUSINESS-CLASS OR FIRST-CLASS AIRLINE 
                   TRAVEL.

       In carrying out the provisions of the Small Business 
     Contracting Program Improvements Act, the Small Business 
     Administrator or any employee may not purchase business-class 
     or first-class airline travel in contravention of sections 
     301-10.122 through 301-10.124 of title 41, Code of Federal 
     Regulations.

  The CHAIRMAN. Pursuant to House Resolution 773, the gentleman from 
Texas (Mr. Lampson) and a Member opposed each will control 5 minutes.
  The Chair recognizes the gentleman from Texas.
  Mr. LAMPSON. Mr. Chairman, I certainly appreciate the work that the 
chairwoman of the Small Business Committee and the sponsor of the Small 
Business Contracting Program Improvements Act and the rest of the 
committee are doing on behalf of small businesses, the lifeblood of 
America.
  As we consider the Small Business Contracting Program Improvements 
Act, we must be mindful of how wasteful government spending impacts 
hardworking American families. Citizens expect Congress to be good 
stewards of taxpayer dollars; and when we allow irresponsible fiscal 
practices to continue in our government, then we set a bad example for 
our Nation and create a reckless blueprint for future spending.
  So that's why I have introduced this amendment today. My amendment 
will clarify guidelines for premium travel by Small Business 
Administration employees when carrying out provisions of this act. A 
recent report by the GAO demonstrates that agencies are failing to 
follow Federal guidelines. This amendment will codify these regulations 
in order to curb wasteful spending by Federal agencies. Ending reckless 
spending is essential to regaining the trust of American citizens and 
restoring fiscal responsibility.
  This amendment also offers a direct method of guidance by referencing 
the sections of the Code of Federal Regulations related to premium 
travel for Federal employees. A similar amendment applying to the 
Department of Commerce employees passed earlier this year as a part of 
the Commerce-Justice-Science appropriations bill.
  So as we continue to tackle large instances of government waste and 
abuse, let's not overlook smaller steps that we can take. I encourage 
support for this simple way to save taxpayer dollars and to reinstate 
fiscal responsibility and good government practices.
  Mr. Chairman, I reserve the balance of my time.
  Ms. VELAZQUEZ. Mr. Chairman, while I am not opposed to the amendment, 
I ask unanimous consent to claim the time in opposition.
  The CHAIRMAN. Without objection, the gentlewoman from New York is 
recognized for 5 minutes.
  There was no objection.
  Ms. VELAZQUEZ. Mr. Chairman, I want to thank my colleague from Texas 
for his amendment.
  Fiscal responsibility is a serious issue, and so is running an 
effective government. As we are currently operating with a budget 
deficit, we must do all we can to eradicate wasteful spending. Many 
times we focus on larger issues of waste and abuse and forget about the 
smaller problems that would be easier to solve. When we cut costs, even 
just a little, it can add up to big savings.

[[Page 28642]]

  The SBA has consistently been asked to do more with less. Placing 
these restrictions on SBA funds will reduce unnecessary spending, 
giving the agency more money to use to truly assist small businesses. 
An agency already operating with less than its ideal budget should not 
be spending crucial funds on premium travel.
  I appreciate the gentleman's attention to this issue and his effort 
to increase accountability in our government and require responsible 
spending decisions.
  Mr. Chairman, I am prepared to accept this amendment, and I will 
yield to Mr. Chabot for any comments he may have.
  Mr. CHABOT. I thank the gentlewoman for yielding.
  We do not oppose this amendment. I'm more used to dealing with the 
gentleman from Texas on some other issues, particularly his commitment 
as chairman of the Missing and Exploited Children's Caucus, and so many 
other issues. We have worked together on a whole range of issues 
attempting to protect children in this country. I want to thank him for 
his leadership in that area, and I also thank him for offering this 
amendment.
  Ms. VELAZQUEZ. Mr. Chairman, I urge support of this amendment, and I 
yield back the balance of my time.
  Mr. LAMPSON. Mr. Chairman, I certainly appreciate the kind words of 
the ranking member on the Small Business Committee. Certainly, he too 
is a leader in the area of child exploitation.
  As one of the cochairs of the Congressional Caucus on Missing and 
Exploited Children, you do great work. We appreciate all the attention.
  And I particularly appreciate the gentlewoman from New York for 
allowing me to introduce this amendment and for the support that she 
has given to us on it.
  I urge support of the amendment.
  Mr. Chairman, I yield back the balance of my time.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from Texas (Mr. Lampson).
  The amendment was agreed to.
  The CHAIRMAN. There being no further amendments, the Committee rises.
  Accordingly, the Committee rose; and the Speaker pro tempore (Mr. 
Salazar) having assumed the chair, Mr. Holden, Chairman of the 
Committee of the Whole House on the state of the Union, reported that 
that Committee, having had under consideration the bill (H.R. 3867) to 
update and expand the procurement programs of the Small Business 
Administration, and for other purposes, pursuant to House Resolution 
773, he reported the bill back to the House with sundry amendments 
adopted by the Committee of the Whole.
  The SPEAKER pro tempore. Under the rule, the previous question is 
ordered.
  Is a separate vote demanded on any amendment reported from the 
Committee of the Whole? If not, the Chair will put them en gros.
  The amendments were agreed to.
  The SPEAKER pro tempore. The question is on the engrossment and third 
reading of the bill.
  The bill was ordered to be engrossed and read a third time, and was 
read the third time.


                Motion to Recommit Offered by Mr. Chabot

  Mr. CHABOT. Mr. Speaker, I offer a motion to recommit.
  The SPEAKER pro tempore. Is the gentleman opposed to the bill?
  Mr. CHABOT. Yes, I am, in its current form.
  The SPEAKER pro tempore. The Clerk will report the motion to 
recommit.
  The Clerk read as follows:

       Mr. CHABOT moves to recommit the bill H.R. 3867 to the 
     Committee on Small Business with instructions to report the 
     same back to the House forthwith with the following 
     amendment:
       Strike section 101(b).

  The SPEAKER pro tempore. The gentleman from Ohio is recognized for 5 
minutes.
  Mr. CHABOT. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Bartlett from Maryland was previously going to offer the motion 
to recommit. He's not here; so I am going to offer it in his place, and 
I will be very brief.
  This motion to recommit is really very simple. It reinstates the 
requirement that requires the government to set aside for competition 
contracts for small businesses located in HUBZones. As already noted, 
there is no reason to punish HUBZone firms by eliminating a mandatory 
competition requirement.

                              {time}  1330

  This motion will ensure that HUBZone firms will be able to carry out 
their purpose to redevelop low-income areas.
  I also would just like to reiterate something that I said earlier 
when we were dealing with the overall bill in general, and that is that 
I want to again compliment the gentlelady from New York, Chairwoman 
Velazquez, for reaching out to the minority, as she has in the past, in 
trying to work together. There were just philosophical differences 
which could not be overcome on this bill. But the committee has worked 
very well together in a bipartisan manner, and I want to thank her for 
that cooperation.
  It is my intention to continue to work together on bills in the 
future because we have supported most of the bills that come out of the 
Small Business Committee, and I think that's good for small business in 
this country because that's something that we do have in common, and 
that is, that we believe to our core that future job growth in this 
country is dependent upon the vitality of small businesses. And small 
businesses in this country have a lot of things that they have to deal 
with: high health insurance rates for their employees, energy costs 
that have been going through the roof, a tax structure which is, at 
this point, unclear as to where it's going to be in the future. That's 
why many of us on this side of the aisle believe to our core that we 
need to make those tax cuts that were passed back in 2001 and in 2003 
permanent. We ought to allow small businesses to know what their taxes 
are going to be like next year and the year after and the year after so 
that they can depend upon that tax structure to grow their business and 
to make investments so that they can create jobs. Because ultimately, 
that's what it's all about, to keep the economy thriving so that we can 
create more and more jobs for people in this country. And keeping taxes 
low is probably the best thing that we can do to allow the small 
business community in this country to grow and prosper.
  So again, I want to thank the members of the committee, the staff, 
and the gentlewoman for her cooperation and reiterate that, although a 
good-faith effort was made, we do support this motion to recommit and 
we do oppose and would urge my colleagues to oppose the overall bill.
  Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. Is the gentlewoman from New York opposed to 
the motion?
  Ms. VELAZQUEZ. I am.
  The SPEAKER pro tempore. The gentlewoman is recognized for 5 minutes.
  Ms. VELAZQUEZ. Mr. Speaker, this is simple. This motion to recommit 
will take away contracts from veterans with service disabilities.
  At this time, I would like to submit for the Record a letter from the 
American Legion that clearly states, ``We steadfastly oppose any 
amendments to alter the legislation's provisions that assist veteran-
owned businesses in section 101.''


                                          The American Legion,

                                 Washington, DC, October 17, 2007.
     Hon. Nydia M. Velazquez,
     Chairwoman, House Committee on Small Business,
     Rayburn House Office Building, Washington, DC.
       Dear Chairwoman Velazquez: On behalf of the 2.7 million 
     members of The American Legion I am writing to strongly 
     endorse the Small Business Contracting Program Improvements 
     Act, which is scheduled for markup in the Committee on Small 
     Business as early as this week. Further, we steadfastly 
     oppose any amendments to alter the legislation's provisions 
     that assist veteran-owned businesses in section 101.
       Recently, the entrepreneurial needs of America's veterans 
     have been brought to the forefront, particularly those that 
     have sustained a disability as a result of their active-duty 
     service in the armed forces. With nearly a quarter of newly 
     discharged veterans considering starting their own 
     businesses, the

[[Page 28643]]

     importance of opening the federal marketplace to veterans, 
     who are entrepreneurs, has never before been so important.
       Unfortunately, there has been no appreciable progress 
     toward meeting the three percent service-connected disabled 
     veterans' government-wide contracting goal. Federal agencies 
     have fallen well short, accomplishing levels of only 0.2 
     percent in 2003; 0.4 percent in 2004; 0.6 percent in 2005; 
     and 0.9 percent in 2006. As a result, Congress must take 
     stronger action.
       We are pleased that the Small Business Contracting Program 
     Improvements Act takes the clear and compelling action 
     necessary to ensure that veterans receive their fair share of 
     federal contracting opportunities. This legislation will 
     result in increases to contracts awarded to veteran-owned 
     companies. As the veterans' community continues to grow, the 
     time is now to enact this important initiative.
       We thank you, Chairwoman Velazquez, for introducing this 
     legislation and we applaud the Committee for moving this 
     measure in an expeditious manner. The American Legion looks 
     forward to working with the Committee on this and future 
     legislation to assist this country's small businesses.
           Sincerely,
                                                   James E. Koutz,
                           Chairman, National Economic Commission.

  The ranking member knows that this amendment was introduced in the 
committee's markup and it was defeated 16-8.
  Further, let me say that the underlying bill ensures that service-
disabled veterans are given a preference in seeking Federal contracts. 
These individuals have consistently been shut out of the Federal 
contracts. Despite a 3 percent service-disabled veteran contracting 
goal since 1999, the highest accomplishment is less than 1 percent. 
These men and women have served our country, and they deserve better.
  If the motion to recommit is adopted, and I want to make this clear, 
if this motion to recommit is adopted, veterans will no longer be a top 
priority. There will be no guarantee that service-disabled veterans 
will benefit from additional contracting opportunities. Instead, we 
would have competing programs, which is what we tried in this bill to 
rid ourselves of. Agencies will be more inclined to overlook disabled 
veterans in their award for sole source contracts.
  And also, I would like to add for the Record, that this type of 
change is opposed by the American Legion, the National Black Chamber of 
Commerce, the Hispanic Chamber of Commerce, the U.S. Women's Chamber of 
Commerce, and the Associated General Contractors.
  This motion will block business opportunity for service-disabled 
veterans. The American Legion opposed this motion, and we agree that 
this motion to recommit will be making it harder for veterans to secure 
Federal contracts.
  You know, these are men and women coming back to our country from 
Afghanistan and Iraq. These are injured, service-disabled veterans who 
deserve the support of the American public and our Federal Government.
  I ask Members to oppose this motion to recommit. As I mentioned, it 
was defeated 16-8 in the markup. This is merely an attempt at a second 
bite of the apple, and it should be defeated.
  Mr. CHABOT. Would the gentlewoman yield?
  Ms. VELAZQUEZ. I would yield.
  Mr. CHABOT. I thank the gentlewoman for yielding.
  It is our view that veterans would not be in any way adversely 
affected if this motion to commit were to pass because they are already 
covered by the sole source area in the bill. So we just have an honest 
disagreement on this. We believe there is no way that veterans would be 
adversely affected if this motion to recommit would be passed.
  Ms. VELAZQUEZ. Let me just say to the gentleman that I don't know why 
you insist this section 101 to be stricken when you clearly know that 
this amendment was defeated in committee, not by Democrats, but 
Democrats and Republicans. It is opposed by every veteran organization 
in America.
  Again, it will take Federal contracting away from disabled veterans. 
You know that we have failed these veterans before, and what we are 
doing is making sure that they have an opportunity to get a fair share 
of Federal contracts.
  Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. Without objection, the previous question is 
ordered on the motion to recommit.
  There was no objection.
  The SPEAKER pro tempore. The question is on the motion to recommit.
  The question was taken; and the Speaker pro tempore announced that 
the noes appeared to have it.
  Mr. CHABOT. Mr. Speaker, I object to the vote on the ground that a 
quorum is not present and make the point of order that a quorum is not 
present.
  The SPEAKER pro tempore. Evidently a quorum is not present.
  The Sergeant at Arms will notify absent Members.
  Pursuant to clause 9 of rule XX, the Chair will reduce to 5 minutes 
the minimum time for any electronic vote on the question of passage.
  The vote was taken by electronic device, and there were--yeas 177, 
nays 240, not voting 15, as follows:

                            [Roll No. 1016]

                               YEAS--177

     Akin
     Alexander
     Bachmann
     Bachus
     Baker
     Barrett (SC)
     Bartlett (MD)
     Barton (TX)
     Bilirakis
     Bishop (UT)
     Blackburn
     Blunt
     Boehner
     Bonner
     Bono
     Boozman
     Boustany
     Brady (TX)
     Broun (GA)
     Brown (SC)
     Brown-Waite, Ginny
     Buchanan
     Burgess
     Burton (IN)
     Buyer
     Calvert
     Camp (MI)
     Campbell (CA)
     Cannon
     Cantor
     Capito
     Carter
     Castle
     Chabot
     Coble
     Cole (OK)
     Conaway
     Crenshaw
     Culberson
     Davis (KY)
     Davis, David
     Davis, Tom
     Doolittle
     Drake
     Dreier
     Duncan
     Ehlers
     Emerson
     English (PA)
     Everett
     Fallin
     Feeney
     Flake
     Forbes
     Fortenberry
     Fossella
     Foxx
     Franks (AZ)
     Frelinghuysen
     Gallegly
     Garrett (NJ)
     Gilchrest
     Gingrey
     Gohmert
     Goode
     Goodlatte
     Granger
     Graves
     Hall (TX)
     Hastert
     Hastings (WA)
     Hayes
     Heller
     Hensarling
     Herger
     Hobson
     Hoekstra
     Hunter
     Inglis (SC)
     Issa
     Johnson (IL)
     Johnson, Sam
     Jordan
     Keller
     King (IA)
     King (NY)
     Kingston
     Kline (MN)
     Knollenberg
     Kuhl (NY)
     LaHood
     Lamborn
     Latham
     LaTourette
     Lewis (CA)
     Lewis (KY)
     Linder
     LoBiondo
     Lucas
     Lungren, Daniel E.
     Mack
     Mahoney (FL)
     Manzullo
     Marchant
     McCarthy (CA)
     McCaul (TX)
     McCotter
     McCrery
     McHenry
     McHugh
     McKeon
     McMorris Rodgers
     Mica
     Miller (FL)
     Miller (MI)
     Miller, Gary
     Moran (KS)
     Murphy, Tim
     Musgrave
     Myrick
     Neugebauer
     Nunes
     Pearce
     Pence
     Peterson (PA)
     Petri
     Pickering
     Pitts
     Platts
     Poe
     Porter
     Price (GA)
     Pryce (OH)
     Putnam
     Radanovich
     Ramstad
     Regula
     Rehberg
     Renzi
     Reynolds
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Roskam
     Royce
     Ryan (WI)
     Sali
     Saxton
     Schmidt
     Sensenbrenner
     Shadegg
     Shimkus
     Shuster
     Smith (NE)
     Smith (TX)
     Souder
     Stearns
     Sullivan
     Terry
     Thornberry
     Tiahrt
     Tiberi
     Turner
     Upton
     Walden (OR)
     Walsh (NY)
     Wamp
     Weldon (FL)
     Westmoreland
     Whitfield
     Wicker
     Wilson (NM)
     Wilson (SC)
     Wolf
     Young (AK)
     Young (FL)

                               NAYS--240

     Abercrombie
     Ackerman
     Aderholt
     Allen
     Altmire
     Andrews
     Arcuri
     Baca
     Baird
     Baldwin
     Barrow
     Bean
     Becerra
     Berkley
     Berman
     Berry
     Biggert
     Bilbray
     Bishop (GA)
     Bishop (NY)
     Blumenauer
     Boren
     Boswell
     Boucher
     Boyd (FL)
     Boyda (KS)
     Brady (PA)
     Braley (IA)
     Brown, Corrine
     Butterfield
     Capps
     Capuano
     Cardoza
     Carnahan
     Carney
     Castor
     Chandler
     Clarke
     Clay
     Cleaver
     Clyburn
     Cohen
     Conyers
     Cooper
     Costa
     Costello
     Courtney
     Cramer
     Crowley
     Cuellar
     Cummings
     Davis (AL)
     Davis (CA)
     Davis (IL)
     Davis, Lincoln
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Dent
     Diaz-Balart, L.
     Diaz-Balart, M.
     Dicks
     Dingell
     Doggett
     Donnelly
     Doyle
     Edwards
     Ellison
     Ellsworth
     Emanuel
     Engel
     Eshoo
     Etheridge
     Farr
     Fattah
     Ferguson
     Filner
     Frank (MA)
     Gerlach
     Giffords
     Gillibrand
     Gonzalez
     Gordon
     Green, Al
     Green, Gene
     Grijalva
     Gutierrez
     Hall (NY)
     Hare
     Harman
     Hastings (FL)
     Herseth Sandlin
     Higgins
     Hill
     Hinchey
     Hirono
     Hodes
     Holden
     Holt
     Honda
     Hooley
     Hoyer
     Inslee
     Israel
     Jackson (IL)
     Jackson-Lee (TX)
     Johnson (GA)
     Johnson, E. B.
     Jones (NC)
     Jones (OH)
     Kagen
     Kanjorski
     Kaptur
     Kennedy
     Kildee
     Kilpatrick
     Kind
     Kirk
     Klein (FL)
     Lampson
     Langevin
     Lantos
     Larsen (WA)
     Larson (CT)
     Lee
     Levin
     Lewis (GA)

[[Page 28644]]


     Lipinski
     Loebsack
     Lofgren, Zoe
     Lowey
     Lynch
     Maloney (NY)
     Markey
     Marshall
     Matheson
     Matsui
     McCarthy (NY)
     McCollum (MN)
     McDermott
     McGovern
     McIntyre
     McNerney
     McNulty
     Meek (FL)
     Meeks (NY)
     Melancon
     Michaud
     Miller (NC)
     Miller, George
     Mitchell
     Mollohan
     Moore (KS)
     Moore (WI)
     Moran (VA)
     Murphy (CT)
     Murphy, Patrick
     Murtha
     Nadler
     Napolitano
     Neal (MA)
     Oberstar
     Obey
     Olver
     Ortiz
     Pallone
     Pascrell
     Pastor
     Payne
     Perlmutter
     Peterson (MN)
     Pomeroy
     Price (NC)
     Rahall
     Rangel
     Reichert
     Reyes
     Richardson
     Rodriguez
     Ros-Lehtinen
     Ross
     Rothman
     Roybal-Allard
     Ruppersberger
     Rush
     Ryan (OH)
     Salazar
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Schakowsky
     Schiff
     Schwartz
     Scott (GA)
     Scott (VA)
     Serrano
     Sestak
     Shays
     Shea-Porter
     Sherman
     Shuler
     Sires
     Skelton
     Slaughter
     Smith (WA)
     Snyder
     Solis
     Space
     Spratt
     Stark
     Stupak
     Sutton
     Tanner
     Tauscher
     Taylor
     Thompson (CA)
     Thompson (MS)
     Tierney
     Towns
     Tsongas
     Udall (CO)
     Udall (NM)
     Van Hollen
     Velazquez
     Visclosky
     Walberg
     Walz (MN)
     Wasserman Schultz
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Welch (VT)
     Wexler
     Woolsey
     Wu
     Wynn
     Yarmuth

                             NOT VOTING--15

     Carson
     Cubin
     Deal (GA)
     Hinojosa
     Hulshof
     Jefferson
     Jindal
     Kucinich
     Paul
     Sessions
     Simpson
     Smith (NJ)
     Tancredo
     Weller
     Wilson (OH)

                              {time}  1402

  Messrs. EDWARDS, COHEN, GENE GREEN of Texas, THOMPSON of Mississippi, 
CROWLEY, SHAYS, CUMMINGS and DENT and Ms. ZOE LOFGREN of California, 
Mrs. MALONEY of New York, Ms. ROS-LEHTINEN, Mrs. DAVIS of California 
and Mrs. BIGGERT changed their vote from ``yea'' to ``nay.''
  Messrs. HOBSON, JORDAN of Ohio and CANTOR changed their vote from 
``nay'' to ``yea.''
  So the motion to recommit was rejected.
  The result of the vote was announced as above recorded.
  The SPEAKER pro tempore. The question is on the passage of the bill.
  The question was taken; and the Speaker pro tempore announced that 
the ayes appeared to have it.


                             Recorded Vote

  Mr. CHABOT. Mr. Speaker, I demand a recorded vote.
  A recorded vote was ordered.
  The SPEAKER pro tempore. This is a 5-minute vote.
  The vote was taken by electronic device, and there were--ayes 334, 
noes 80, not voting 18, as follows:

                            [Roll No. 1017]

                               AYES--334

     Abercrombie
     Ackerman
     Aderholt
     Alexander
     Allen
     Altmire
     Andrews
     Arcuri
     Baca
     Baird
     Baldwin
     Barrow
     Bean
     Becerra
     Berkley
     Berman
     Berry
     Biggert
     Bilirakis
     Bishop (GA)
     Bishop (NY)
     Bishop (UT)
     Blumenauer
     Bonner
     Bono
     Boozman
     Boren
     Boswell
     Boucher
     Boyd (FL)
     Boyda (KS)
     Brady (PA)
     Brady (TX)
     Braley (IA)
     Brown (SC)
     Brown, Corrine
     Brown-Waite, Ginny
     Buchanan
     Burgess
     Butterfield
     Buyer
     Camp (MI)
     Capito
     Capps
     Capuano
     Cardoza
     Carnahan
     Carney
     Carter
     Castle
     Castor
     Chandler
     Clarke
     Clay
     Cleaver
     Clyburn
     Cohen
     Cole (OK)
     Conyers
     Cooper
     Costa
     Costello
     Courtney
     Cramer
     Crenshaw
     Crowley
     Cuellar
     Cummings
     Davis (AL)
     Davis (CA)
     Davis (IL)
     Davis, David
     Davis, Lincoln
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Dent
     Diaz-Balart, L.
     Diaz-Balart, M.
     Dicks
     Dingell
     Doggett
     Donnelly
     Doyle
     Drake
     Edwards
     Ellison
     Ellsworth
     Emanuel
     Emerson
     Engel
     English (PA)
     Eshoo
     Etheridge
     Fallin
     Farr
     Fattah
     Ferguson
     Filner
     Forbes
     Fortenberry
     Frank (MA)
     Frelinghuysen
     Garrett (NJ)
     Gerlach
     Giffords
     Gilchrest
     Gillibrand
     Gonzalez
     Goodlatte
     Gordon
     Granger
     Graves
     Green, Al
     Green, Gene
     Grijalva
     Gutierrez
     Hall (NY)
     Hall (TX)
     Hare
     Harman
     Hastings (FL)
     Hayes
     Heller
     Herseth Sandlin
     Higgins
     Hill
     Hinchey
     Hirono
     Hobson
     Hodes
     Hoekstra
     Holden
     Holt
     Honda
     Hooley
     Hoyer
     Inslee
     Israel
     Jackson (IL)
     Jackson-Lee (TX)
     Johnson (GA)
     Johnson (IL)
     Johnson, E. B.
     Jones (NC)
     Kagen
     Kanjorski
     Kaptur
     Kennedy
     Kildee
     Kilpatrick
     Kind
     King (NY)
     Kirk
     Klein (FL)
     Kline (MN)
     Knollenberg
     Kuhl (NY)
     LaHood
     Lampson
     Langevin
     Lantos
     Larsen (WA)
     Larson (CT)
     Latham
     LaTourette
     Lee
     Levin
     Lewis (GA)
     Lewis (KY)
     Lipinski
     LoBiondo
     Loebsack
     Lofgren, Zoe
     Lowey
     Lucas
     Lynch
     Mahoney (FL)
     Maloney (NY)
     Markey
     Marshall
     Matheson
     Matsui
     McCarthy (NY)
     McCaul (TX)
     McCollum (MN)
     McCotter
     McDermott
     McGovern
     McHugh
     McIntyre
     McKeon
     McMorris Rodgers
     McNerney
     McNulty
     Meek (FL)
     Meeks (NY)
     Melancon
     Mica
     Michaud
     Miller (FL)
     Miller (MI)
     Miller (NC)
     Miller, George
     Mitchell
     Mollohan
     Moore (KS)
     Moore (WI)
     Moran (KS)
     Moran (VA)
     Murphy (CT)
     Murphy, Patrick
     Murphy, Tim
     Murtha
     Nadler
     Napolitano
     Neal (MA)
     Neugebauer
     Oberstar
     Obey
     Olver
     Ortiz
     Pallone
     Pascrell
     Pastor
     Payne
     Pearce
     Perlmutter
     Peterson (MN)
     Peterson (PA)
     Pickering
     Platts
     Poe
     Pomeroy
     Porter
     Price (NC)
     Rahall
     Ramstad
     Rangel
     Regula
     Rehberg
     Reichert
     Renzi
     Reyes
     Reynolds
     Richardson
     Rodriguez
     Rogers (AL)
     Rogers (MI)
     Ros-Lehtinen
     Roskam
     Ross
     Rothman
     Roybal-Allard
     Ruppersberger
     Rush
     Ryan (OH)
     Salazar
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Saxton
     Schakowsky
     Schiff
     Schmidt
     Schwartz
     Scott (GA)
     Scott (VA)
     Serrano
     Sestak
     Shays
     Shea-Porter
     Sherman
     Shimkus
     Shuler
     Shuster
     Sires
     Skelton
     Slaughter
     Smith (NJ)
     Smith (TX)
     Smith (WA)
     Snyder
     Solis
     Souder
     Space
     Spratt
     Stark
     Stearns
     Sullivan
     Sutton
     Tanner
     Tauscher
     Taylor
     Thompson (CA)
     Thompson (MS)
     Tiahrt
     Tiberi
     Tierney
     Towns
     Tsongas
     Turner
     Udall (CO)
     Udall (NM)
     Upton
     Van Hollen
     Velazquez
     Visclosky
     Walberg
     Walden (OR)
     Walsh (NY)
     Walz (MN)
     Wamp
     Wasserman Schultz
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Welch (VT)
     Weldon (FL)
     Westmoreland
     Wexler
     Whitfield
     Wicker
     Wilson (NM)
     Wolf
     Woolsey
     Wu
     Wynn
     Yarmuth
     Young (AK)
     Young (FL)

                                NOES--80

     Akin
     Bachmann
     Bachus
     Baker
     Barrett (SC)
     Bartlett (MD)
     Barton (TX)
     Bilbray
     Blackburn
     Blunt
     Boehner
     Boustany
     Broun (GA)
     Burton (IN)
     Calvert
     Campbell (CA)
     Cannon
     Cantor
     Chabot
     Coble
     Conaway
     Culberson
     Davis (KY)
     Davis, Tom
     Doolittle
     Dreier
     Duncan
     Ehlers
     Everett
     Feeney
     Flake
     Fossella
     Foxx
     Franks (AZ)
     Gallegly
     Gingrey
     Gohmert
     Goode
     Hastert
     Hastings (WA)
     Hensarling
     Hunter
     Inglis (SC)
     Issa
     Johnson, Sam
     Jordan
     Keller
     King (IA)
     Kingston
     Lamborn
     Lewis (CA)
     Linder
     Lungren, Daniel E.
     Mack
     Manzullo
     Marchant
     McCarthy (CA)
     McCrery
     McHenry
     Miller, Gary
     Musgrave
     Myrick
     Nunes
     Pence
     Petri
     Pitts
     Price (GA)
     Putnam
     Radanovich
     Rogers (KY)
     Rohrabacher
     Royce
     Ryan (WI)
     Sali
     Sensenbrenner
     Shadegg
     Smith (NE)
     Terry
     Thornberry
     Wilson (SC)

                             NOT VOTING--18

     Carson
     Cubin
     Deal (GA)
     Herger
     Hinojosa
     Hulshof
     Jefferson
     Jindal
     Jones (OH)
     Kucinich
     Paul
     Pryce (OH)
     Sessions
     Simpson
     Stupak
     Tancredo
     Weller
     Wilson (OH)


                Announcement by the Speaker Pro Tempore

  The SPEAKER pro tempore (during the vote). Members are advised 2 
minutes remain in this vote.

                              {time}  1408

  Mr. LEWIS of Kentucky changed his vote from ``no'' to ``aye.''
  So the bill was passed.
  The result of the vote was announced as above recorded.
  A motion to reconsider was laid on the table.
  Stated for:
  Mrs. JONES of Ohio. Mr. Speaker, on rollcall No. 1017 I was meeting 
with representatives of the Turkish community. Had I been present, I 
would have voted ``aye.''

                          ____________________