[House Report 113-662]
[From the U.S. Government Publishing Office]


113th Congress  }                                     {   Rept. 113-662
                        HOUSE OF REPRESENTATIVES
 2d Session     }                                     {          Part 1

======================================================================



 
   IMPROVING OPPORTUNITIES FOR SERVICE-DISABLED VETERAN-OWNED SMALL 
                         BUSINESSES ACT OF 2014

                                _______
                                

               December  11, 2014.--Ordered to be printed

                                _______
                                

Mr. Graves of Missouri, from the Committee on Small Business, submitted 
                             the following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 2882]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Small Business, to whom was referred the 
bill (H.R. 2882) to amend the Small Business Act and title 38, 
United States Code to provide for a consolidated definition of 
a small business concern owned and controlled by veterans, and 
for other purposes, having considered the same, report 
favorably thereon with an amendment and recommend that the 
bill, as amended, do pass.

                                CONTENTS

                                                                   Page
   I. Amendment.......................................................2
  II. Purpose of the Bill and Summary.................................3
 III. Background and the Need for Legislation.........................4
  IV. Hearings........................................................5
   V. Committee Consideration.........................................5
  VI. Committee Votes.................................................6
 VII. Section-by-Section Analysis of H.R. 2882.......................16
VIII. Congressional Budget Cost Estimate.............................18
  IX. Unfunded Mandates..............................................19
   X. New Budget Authority, Entitlement Authority, and Tax Expenditur19
  XI. Oversight Findings.............................................19
 XII. Statement of Constitutional Authority..........................19
XIII. Congressional Accountability Act...............................19
 XIV. Federal Advisory Committee Statement...........................19
  XV. Statement of No Earmarks.......................................20
 XVI. Statement of Duplication of Federal Programs...................20
XVII. Disclosure of Directed Rule Makings............................20
XVIII.Performance Goals and Objectives...............................20

 XIX. Changes in Existing Law Made by the Bill, as Reported..........20
  XX. Dissenting Views...............................................23

                              I. Amendment

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Improving Opportunities for Service-
Disabled Veteran-Owned Small Businesses Act of 2014''.

SEC. 2. SBA TO ASSUME CONTROL OF VERIFICATION OF OWNERSHIP AND CONTROL 
                    STATUS OF APPLICANTS FOR INCLUSION IN THE DATABASE 
                    OF SMALL BUSINESSES OWNED AND CONTROLLED BY SERVICE 
                    DISABLED VETERANS AND VETERANS.

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

``SEC. 48. VETS FIRST PROGRAM.

  ``In order to increase opportunities for small business concerns 
owned and controlled by service-disabled veterans and small business 
concerns owned and controlled by veterans in the Federal marketplace, 
not later than 180 days after the effective date of this section, the 
Administrator shall enter into a memorandum of understanding with the 
Secretary of Veterans Affairs that transfer control and administration 
of the program under subsections (e) through (g) of section 8127 of 
title 38, United States Code, to the Administrator, consistent with the 
following:
          ``(1) Not later than 270 days after completing the memorandum 
        of understanding, the Administrator shall make rules to carry 
        out the memorandum. If the Administrator does not make such 
        rules by such date, the Administrator may not exercise the 
        authority under section 7(a)(25)(A) until such time as those 
        rules are made.
          ``(2) The Administrator shall assume authority and 
        responsibility for maintenance and operation of the database 
        and for verifications under the program. Any verifications 
        undertaken by the Administrator shall employ fraud prevention 
        measures at the time of the initial application, through 
        detection and monitoring processes after initial acceptance, by 
        investigating allegations of potential fraud, removing firms 
        that do not quality from the database, and referring cases for 
        prosecution when appropriate
          ``(3) Any appeal by a small business concern, at the time 
        that verification is denied or a contract is awarded, of any 
        determination under the program shall be heard by the Office of 
        Hearings and Appeals of the Small Business Administration.
          ``(4)(A) The Secretary shall, for a period of 6 years 
        commencing on a date agreed to in the completed memorandum, 
        reimburse to the Administrator of the Small Business 
        Administration any costs incurred by the Administrator for 
        actions undertaken pursuant to the memorandum from fees 
        collected by the Secretary of Veteran Affairs under multiple-
        award schedule contracts. The Administrator and the Secretary 
        shall endeavor to ensure maximum efficiency in such actions. 
        Any disputes between the Secretary and the Administrator shall 
        be resolved by the Director of the Office of Management and 
        Budget.
          ``(B) The Secretary and the Administrator may extend the term 
        of the memorandum of understanding, except for the 
        reimbursement requirement under subparagraph (A). The Secretary 
        and the Administrator may in a separate memorandum of 
        understanding provide for an extension of such reimbursement.
          ``(5) Not later than 180 days after the date of enactment of 
        this section, and every 180 days thereafter, the Secretary and 
        the Administrator shall--
                  ``(A) meet to discuss ways to improve collaboration 
                under the memorandum to increase opportunities for 
                service-disabled veteran-owned small businesses and 
                veteran-owned small businesses; and
                  ``(B) consult with congressionally-chartered Veterans 
                Service Organizations to discuss ways to increase 
                opportunities for service-disabled veteran-owned small 
                businesses and veteran-owned small businesses.
          ``(6) Not later than 180 days after the date of enactment of 
        this section, and every 180 days thereafter, the Secretary and 
        the Administrator shall report to the Committee on Small 
        Business and the Committee on Veterans' Affairs of the House of 
        Representatives, and the Committee on Small Business and 
        Entrepreneurship and the Committee on Veterans' Affairs of the 
        Senate on the progress made by the Secretary and the 
        Administrator implementing this section.
          ``(7) In any meeting required under paragraph (5), the 
        Secretary and the Administrator shall include in the discussion 
        of ways to improve collaboration under the memorandum to 
        increase opportunities for small businesses owned and 
        controlled by service-disabled veterans who are women or 
        minorities and small business concerns owned and controlled by 
        veterans who are women or minorities.''.

SEC. 3. MEMORANDUM OF UNDERSTANDING.

  Section 8127(f) of title 38, United States Code, is amended by adding 
at the end the following:
  ``(7) Not later than 180 days after the effective date of this 
paragraph, the Secretary shall enter into a memorandum of understanding 
with the Administrator of the Small Business Administration consistent 
with section 48 of the Small Business Act, which shall specify the 
manner in which the Secretary shall notify the Administrator as to 
whether an individual is a veteran and if that veteran has a service-
connected disability.''.

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