[House Report 116-280]
[From the U.S. Government Publishing Office]
116th Congress } { Rept. 116-280
HOUSE OF REPRESENTATIVES
1st Session } { Part 1
======================================================================
VERIFICATION ALIGNMENT AND SERVICE-DISABLED BUSINESS ADJUSTMENT ACT
_______
November 12, 2019.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Ms. Velazquez, from the Committee on Small Business, submitted the
following
R E P O R T
[To accompany H.R. 1615]
The Committee on Small Business, to whom was referred the
bill (H.R. 1615) to transfer the responsibility of verifying
small business concerns owned and controlled by veterans or
service-disabled veterans to the Small Business Administration,
and for other purposes, having considered the same, report
favorably thereon with an amendment and recommend that the bill
as amended do pass.
CONTENTS
Page
I. Purpose and Bill Summary.......................................6
II. Background and Need for Legislation............................7
III. Hearings.......................................................8
IV. Committee Consideration........................................8
V. Committee Votes.................................................8
VI. Section-by-Section Analysis for H.R. 1615......................11
VII. Congressional Budget Office Cost Estimate......................13
VIII. Unfunded Mandates..............................................13
IX. New Budget Authority, Entitlement Authority, and Tax Expenditur13
X. Oversight Findings.............................................13
XI. Statement of Constitutional Authority..........................14
XII. Congressional Accountability Act...............................14
XIII. Federal Advisory Committee Act Statement.......................14
XIV. Statement of No Earmarks.......................................14
XV. Statement of Duplication of Federal Programs...................14
XVI. Disclosure of Directed Rule Makings............................14
XVII. Performance Goals and Objectives...............................14
XVIII.Changes in Existing Law, Made by the Bill, As Reported.........14
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Verification
Alignment and Service-disabled Business Adjustment Act'' or the ``VA-
SBA Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Transfer date.
Sec. 3. Amendment to and transfer of veteran-owned and service-disabled
veteran-owned business database.
Sec. 4. Additional requirements for database.
Sec. 5. Procurement program for small business concerns owned and
controlled by service-disabled veterans.
Sec. 6. Certification for small business concerns owned and controlled
by veterans.
Sec. 7. Status of self-certified small business concerns owned and
controlled by service-disabled veterans.
Sec. 8. Transfer of the Center for Verification and Evaluation of the
Department of Veterans Affairs to the Small Business Administration.
Sec. 9. Report.
SEC. 2. TRANSFER DATE.
For purposes of this Act, the term ``transfer date'' means the date
that is 2 years after the date of enactment of this Act, except that
such date may be extended an unlimited number of times by a period of
not more than 6 months if the Administrator of the Small Business
Administration and the Secretary of Veterans Affairs jointly issue a
notice to Congress and the Law Revision Counsel of the House of
Representatives containing--
(1) a certification that such extension is necessary;
(2) the rationale for and the length of such extension; and
(3) a plan to comply with the requirements of this Act within
the timeframe of the extension.
SEC. 3. AMENDMENT TO AND TRANSFER OF VETERAN-OWNED AND SERVICE-DISABLED
VETERAN-OWNED BUSINESS DATABASE.
(a) Amendment of Veteran-Owned and Service-Disabled Veteran-Owned
Business Database.--Effective on the transfer date, section 8127 of
title 38, United States Code, is amended--
(1) in subsection (e)--
(A) by striking ``the Secretary'' and inserting ``the
Administrator''; and
(B) by striking ``subsection (f)'' and inserting
``section 36 of the Small Business Act'';
(2) in subsection (f)--
(A) by striking ``the Secretary'' each place such
term appears, other than in the last place such term
appears under paragraph (2)(A), and inserting ``the
Administrator'';
(B) in paragraph (1), by striking ``small business
concerns owned and controlled by veterans with service-
connected disabilities'' each place such term appears
and inserting ``small business concerns owned and
controlled by service-disabled veterans'';
(C) in paragraph (2)--
(i) in subparagraph (A), by striking ``to
access'' and inserting ``to obtain from the
Secretary of Veterans Affairs''; and
(ii) by striking subparagraph (B) and
inserting the following:
``(B) For purposes of this subsection--
``(i) the Secretary of Veterans Affairs shall--
``(I) verify an individual's status as a veteran or a
service-disabled veteran; and
``(II) establish a system to permit the Administrator
to access, but not alter, such verification; and
``(ii) the Administrator shall verify--
``(I) the status of a business concern as a small
business concern; and
``(II) the ownership and control of such business
concern.
``(C) The Administrator may not certify a concern under subsection
(b) or section 36A if the Secretary of Veterans Affairs cannot provide
the verification described under subparagraph (B)(i)(I).'';
(D) by striking paragraphs (4) and (7);
(E) by redesignating paragraphs (5) and (6) as
paragraphs (4) and (5), respectively, and redesignating
paragraph (8) as paragraph (6);
(F) in paragraph (4), as so redesignated, by striking
``The Secretary'' and inserting ``The Administrator'';
and
(G) in paragraph (6), as so redesignated--
(i) in subparagraph (A)--
(I) by striking ``verify the status
of the concern as a small business
concern or the ownership or control of
the concern'' and inserting ``certify
the status of the concern as a small
business concern owned and controlled
by veterans (under section 36A) or a
small business concern owned and
controlled by service-disabled veterans
(under section 36(g))''; and
(II) by striking ``verification'' and
inserting ``certification'';
(ii) in subparagraph (B)--
(I) in clause (i), by striking
``small business concern owned and
controlled by veterans with service-
connected disabilities'' and inserting
``small business concern owned and
controlled by service-disabled
veterans''; and
(II) in clause (ii)--
(aa) by amending subclause
(I) to read as follows:
``(I) the Secretary of Veterans Affairs or the
Administrator; or''; and
(bb) in subclause (II), by
striking ``the contracting
officer of the Department'' and
inserting ``the applicable
contracting officer''; and
(iii) by striking subparagraph (C);
(3) by redesignating subsection (k) (relating to definitions)
as subsection (l);
(4) by inserting after subsection (j) (relating to annual
reports) the following:
``(k) Annual Transfer for Certification Costs.--For each fiscal year,
the Secretary of Veterans Affairs shall reimburse the Administrator in
an amount necessary to cover any cost incurred by the Administrator for
certifying small business concerns owned and controlled by veterans
that do not qualify as small business concerns owned and controlled by
service-disabled veterans for the Secretary for purposes of this
section and section 8128 of this title. The Administrator is authorized
to accept such reimbursement. The amount of any such reimbursement
shall be determined jointly by the Secretary and the Administrator and
shall be provided from fees collected by the Secretary under multiple-
award schedule contracts. Any disagreement about the amount shall be
resolved by the Director of the Office of Management and Budget.''; and
(5) in subsection (l) (relating to definitions), as so
redesignated, by adding at the end the following:
``(4) The term `Administrator' means the Administrator of the
Small Business Administration.''.
(b) Transfer of Requirements Relating to Database to the Small
Business Act.--Effective on the transfer date, subsection (f) of
section 8127 of title 38, United States Code (as amended by subsection
(a)), is transferred to section 36 of the Small Business Act (15 U.S.C.
657f), inserted so as to appear after subsection (e).
(c) Conforming Amendments.--The following amendments shall take
effect on the transfer date:
(1) Small business act.--Section 3(q)(2)(C)(i)(III) of the
Small Business Act (15 U.S.C. 632(q)(2)(C)(i)(III)) is amended
by striking ``section 8127(f) of title 38, United States Code''
and inserting ``section 36''.
(2) Title 38.--Section 8128 of title 38, United States Code,
is amended by striking ``section 8127(f) of this title'' and
inserting ``section 36 of the Small Business Act''.
SEC. 4. ADDITIONAL REQUIREMENTS FOR DATABASE.
(a) Administration Access to Database Before the Transfer Date.--
During the period between the date of the enactment of this Act and the
transfer date, the Secretary of Veterans Affairs shall provide the
Administrator of the Small Business Administration with access to the
contents of the database described under section 8127(f) of title 38,
United States Code.
(b) Rule of Construction.--Nothing in this Act or the amendments made
by this Act may be construed--
(1) as prohibiting the Administrator of the Small Business
Administration from combining the contents of the database
described under section 8127(f) of title 38, United States
Code, with other databases maintained by the Administration; or
(2) as requiring the Administrator to use any system or
technology related to the database described under section
8127(f) of title 38, United States Code, on or after the
transfer date to comply with the requirement to maintain a
database under subsection (f) of section 36 of the Small
Business Act (as transferred pursuant to section 3(b) of this
Act).
(c) Recognition of the Issuance of Joint Regulations.--The date
specified under section 1832(e) of the National Defense Authorization
Act for Fiscal Year 2017 (15 U.S.C. 632 note) shall be deemed to be
October 1, 2018.
SEC. 5. PROCUREMENT PROGRAM FOR SMALL BUSINESS CONCERNS OWNED AND
CONTROLLED BY SERVICE-DISABLED VETERANS.
(a) Procurement Program for Small Business Concerns Owned and
Controlled by Service-Disabled Veterans.--Section 36 of the Small
Business Act (15 U.S.C. 657f) is amended--
(1) by striking subsections (d) and (e);
(2) by redesignating subsections (a), (b), and (c) as
subsections (c), (d), and (e) respectively;
(3) by inserting before subsection (c), as so redesignated,
the following:
``(a) Contracting Officer Defined.--For purposes of this section, the
term `contracting officer' has the meaning given such term in section
2101 of title 41, United States Code.
``(b) Certification of Small Business Concerns Owned and Controlled
by Service-Disabled Veterans.--With respect to a procurement program or
preference established under this Act that applies to prime
contractors, the Administrator shall--
``(1) certify the status of the concern as a `small business
concern owned and controlled by service-disabled veterans'; and
``(2) require the periodic recertification of such status.'';
(4) in subsection (d), as so redesignated, by striking ``and
that the award can be made at a fair market price'' and
inserting ``, that the award can be made at a fair market
price, and if each concern is certified by the Administrator as
a small business concern owned and controlled by service-
disabled veterans''; and
(5) by adding at the end the following:
``(g) Certification Requirement.--Notwithstanding subsection (c), a
contracting officer may only award a sole source contract to a small
business concern owned and controlled by service-disabled veterans or a
contract on the basis of competition restricted to small business
concerns owned and controlled by service-disabled veterans if such a
concern is certified by the Administrator as a small business concern
owned and controlled by service-disabled veterans.
``(h) Enforcement; Penalties.--
``(1) Verification of eligibility.--In carrying out this
section, the Administrator shall establish procedures relating
to--
``(A) the filing, investigation, and disposition by
the Administration of any challenge to the eligibility
of a small business concern to receive assistance under
this section (including a challenge, filed by an
interested party, relating to the veracity of a
certification made or information provided to the
Administration by a small business concern under
subsection (b)); and
``(B) verification by the Administrator of the
accuracy of any certification made or information
provided to the Administration by a small business
concern under subsection (b).
``(2) Examinations.--
``(A) Examination of applicants.--The procedures
established under paragraph (1) shall provide for a
program of examinations by the Administrator of any
small business concern making a certification or
providing information to the Administrator under
subsection (b), to determine the veracity of any
statements or information provided as part of such
certification or otherwise provided under subsection
(b).
``(B) Examination of certified concerns.--The
procedures established under paragraph (1) shall
provide for the examination of risk-based samples of
small business concerns certified under subsection (b),
or of any small business concern that the Administrator
believes poses a particular risk or with respect to
which the Administrator receives specific and credible
information alleging that the small business concern no
longer meets eligibility requirements to be certified
as a small business concern owned and controlled by
service-disabled veterans.
``(3) Penalties.--In addition to the penalties described in
section 16(d), any small business concern that is determined by
the Administrator to have misrepresented the status of that
concern as a small business concern owned and controlled by
service-disabled veterans for purposes of subsection (b), shall
be subject to--
``(A) section 1001 of title 18, United States Code;
``(B) sections 3729 through 3733 of title 31, United
States Code; and
``(C) section 8127(g) of title 38, United States
Code.
``(i) Provision of Data.--Upon the request of the Administrator, the
head of any Federal department or agency shall promptly provide to the
Administrator such information as the Administrator determines to be
necessary to carry out subsection (b) or to be able to certify the
status of the concern as a small business concern owned and controlled
by veterans under section 36A.''.
(b) Penalties for Misrepresentation.--Section 16 of the Small
Business Act (15 U.S.C. 645) is amended--
(1) in subsection (d)(1)--
(A) by striking ``,, a'' and inserting ``, a `small
business concern owned and controlled by service-
disabled veterans', a `small business concern owned and
controlled by veterans', a''; and
(B) in paragraph (A), by striking ``9, 15, or 31''
and inserting ``8, 9, 15, 31, 36, or 36A''; and
(2) in subsection (e), by striking ``,, a'' and inserting ``,
a `small business concern owned and controlled by service-
disabled veterans', a `small business concern owned and
controlled by veterans', a''.
SEC. 6. CERTIFICATION FOR SMALL BUSINESS CONCERNS OWNED AND CONTROLLED
BY VETERANS.
The Small Business Act (15 U.S.C. 631 et seq.) is amended by
inserting after section 36 the following new section:
``SEC. 36A. CERTIFICATION OF SMALL BUSINESS CONCERNS OWNED AND
CONTROLLED BY VETERANS.
``(a) In General.--With respect to the program established under
section 8127 of title 38, United States Code, the Administrator shall--
``(1) certify the status of the concern as a `small business
concern owned and controlled by veterans'; and
``(2) require the periodic recertification of such status.
``(b) Enforcement; Penalties.--
``(1) Verification of eligibility.--In carrying out this
section, the Administrator shall establish procedures relating
to--
``(A) the filing, investigation, and disposition by
the Administration of any challenge to the eligibility
of a small business concern to receive assistance under
this section (including a challenge, filed by an
interested party, relating to the veracity of a
certification made or information provided to the
Administration by a small business concern under
subsection (a)); and
``(B) verification by the Administrator of the
accuracy of any certification made or information
provided to the Administration by a small business
concern under subsection (a).
``(2) Examination of applicants.--The procedures established
under paragraph (1) shall provide for a program of examinations
by the Administrator of any small business concern making a
certification or providing information to the Administrator
under subsection (a), to determine the veracity of any
statements or information provided as part of such
certification or otherwise provided under subsection (a).
``(3) Penalties.--In addition to the penalties described in
section 16(d), any small business concern that is determined by
the Administrator to have misrepresented the status of that
concern as a small business concern owned and controlled by
veterans for purposes of subsection (a), shall be subject to--
``(A) section 1001 of title 18, United States Code;
``(B) sections 3729 through 3733 of title 31, United
States Code; and
``(C) section 8127(g) of title 38, United States
Code.''.
SEC. 7. STATUS OF SELF-CERTIFIED SMALL BUSINESS CONCERNS OWNED AND
CONTROLLED BY SERVICE-DISABLED VETERANS.
(a) In General.--Notwithstanding any other provision of law, any
small business concern that self-certified as a small business concern
owned and controlled by service-disabled veterans shall--
(1) if the concern files a certification application with the
Administrator of the Small Business Administration before the
end of the 1-year period beginning on the transfer date,
maintain such self-certification until the Administrator makes
a determination with respect to such certification; and
(2) if the concern does not file such a certification
application before the end of the 1-year period beginning on
the transfer date, lose, at the end of such 1-year period, any
self-certification of the concern as a small business concern
owned and controlled by service-disabled veterans.
(b) Non-Applicability to Department of Veterans Affairs.--Subsection
(a) shall not apply to participation in contracts (including
subcontracts) with the Department of Veterans Affairs.
(c) Notice.--The Administrator shall notify any small business
concern that self-certified as a small business concern owned and
controlled by service-disabled veterans about the requirements of this
Act, including the transfer date and any extension of such transfer
date made pursuant to section 2, and make such notice publicly
available, on--
(1) the date of the enactment of this Act; and
(2) the date on which an extension described under section 2
is approved.
SEC. 8. TRANSFER OF THE CENTER FOR VERIFICATION AND EVALUATION OF THE
DEPARTMENT OF VETERANS AFFAIRS TO THE SMALL
BUSINESS ADMINISTRATION.
(a) Abolishment.--The Center for Verification and Evaluation of the
Department of Veterans Affairs defined under section 74.1 of title 38,
Code of Federal Regulations, is abolished effective on the transfer
date.
(b) Transfer of Functions.--All functions that, immediately before
the effective date of this section, were functions of the Center for
Verification and Evaluation shall--
(1) on the date of enactment of this Act, be functions of
both the Center for Verification and Evaluation and the Small
Business Administration, except that the Small Business
Administration shall not have any authority to carry out any
verification functions of the Center for Verification and
Evaluation; and
(2) on the transfer date, be functions of the Small Business
Administration.
(c) Transfer of Assets.--So much of the personnel, property, records,
and unexpended balances of appropriations, allocations, and other funds
employed, used, held, available, or to be made available in connection
with a function transferred under this section shall be available to
the Small Business Administration at such time or times as the
President directs for use in connection with the functions transferred.
(d) References.--Any reference in any other Federal law, Executive
order, rule, regulation, or delegation of authority, or any document of
or pertaining to a function of the Center for Verification and
Evaluation that is transferred under this section is deemed, after the
transfer date, to refer to the Small Business Administration.
SEC. 9. REPORT.
Not later than the end of the 1-year period beginning on the date of
the enactment of this Act, and every 6 months thereafter until the
transfer date, the Administrator of the Small Business Administration
and Secretary of Veterans Affairs shall jointly issue a report to the
Committees on Appropriations, Small Business, and Veterans' Affairs of
the House of Representatives and the Committees on Appropriations,
Small Business and Entrepreneurship, and Veterans' Affairs of the
Senate on the planning for the transfer of functions and property
required under this Act and the amendments made by this Act on the
transfer date. Such report shall include--
(1) whether and how the verification database and operations
of the Center for Verification and Evaluation of the Department
of Veterans Affairs will be incorporated into the existing
certification database of the Small Business Administration;
(2) projections for the numbers and timing, in terms of
fiscal year, of--
(A) already verified concerns that will come up for
recertification; and
(B) self-certified concerns that are expected to
apply for certification;
(3) an explanation of how outreach to veteran service
organizations, the service-disabled veteran-owned and veteran-
owned small business community, and other stakeholders will be
conducted; and
(4) other pertinent information determined by the
Administrator and the Secretary.
I. Purpose and Bill Summary
The purpose of H.R. 1615, the ``Verification Alignment and
Service-disabled Business Adjustment Act'' or the ``VA-SBA
Act,'' is to transfer the responsibility of verifying small
business concerns owned and controlled by veterans or service-
disabled veterans to the Small Business Administration.
Pursuant to the bill, the transfer date is two years after
enactment of this legislation. Among other things, the bill
transfers to the SBA the responsibility of keeping a database
of all certified veteran-owned and service-disabled veteran-
owned small businesses; allows the VA to provide the necessary
funds to cover SBA's costs in certifying veteran-owned small
businesses and; transfers assets of the VA's Center for
Verification and Evaluation to the SBA. The bill also clarifies
that the VA remains responsible for verifying the individual
business owner's status as a veteran or service-disabled
veteran, while the SBA is responsible for determining the
business concern's status as a small business concern.
II. Background and Need for Legislation
H.R. 1615 was introduced by Representative Trent Kelly (R-
MS), and Representative Jason Crow (D-CO) on March 7, 2019. The
bill eliminates the certification process offered by the U.S.
Department of Veterans Affairs (VA) and transfers to the Small
Business Administration (SBA) the responsibility of certifying
all veteran-owned and service-disabled veteran-owned small
businesses interested in participating in the VA's small
business contracting program. Furthermore, it requires formal
certification of service-disabled veteran-owned small
businesses in SBA's government-wide contracting program.
Congress has designated service-disabled veteran-owned
small businesses (SDVOSBs) as a key group that can benefit from
contract assistance. To underscore this commitment, the
Veterans Entrepreneurship and Small Business Development Act of
1999 established an annual goal of not less than 3 percent on
all federal prime contract and subcontract awards for service-
disabled veteran-owned small businesses (SDVOSBs).\1\ In order
to achieve this goal, the Veterans Benefits Act of 2003,\2\
amended the Small Business Act to create incentives for
providing greater contract opportunities to SDVOSBs. Under the
program that SBA oversees, SDVOSBs are eligible for set aside
and sole- source contracts.
---------------------------------------------------------------------------
\1\Pub. L. No. 106-50, Sec. 502, 113 Stat 233, 247 (1999).
\2\Pub. L. No. 108-183, Sec. 308, 117 Stat 2651, 2662 (2003).
---------------------------------------------------------------------------
In addition to the SBA program, which applies to all
agencies, Congress authorized the Department of Veterans
Affairs
(VA) to administer its own procurement program known as the
``Vets First Program'' through the Veterans Benefits, Health
Care, and Information Technology Act of 2006 (VA Act).\3\ The
VA Act gave the VA the authority to set aside contracts and
make source sole awards to SDVOSBs and Veteran-Owned Small
Businesses (VOSBs) as a whole. Moreover, while the SBA program
only sets a contracting preference, the VA Act gives SDVOSBs
and VOSBs a priority over other small business preferences.
---------------------------------------------------------------------------
\3\Pub. L. No. 109-461, 3 Pub. L. No. 109-461, 502, 120 Stat 3403.
502, 120 Stat 3403.
---------------------------------------------------------------------------
Although the two programs share the same goal, each has
different requirements for certification. Under the VA Program,
SDVOSBs and VOSBs need to go through a rigorous certification
process offered by the VA administrator before being eligible
to contracting opportunities within the agency. By contrast,
SBA's program, which applies government-wide, allows program
participants to self-certify eligibility; resulting in much
confusion across the service-disabled veteran-owned small
business procurement community.
H.R. 1615 addresses this issue by harmonizing the two
conflicting SDVOSB contracting programs at the VA and SBA,
which in turn eliminates duplicity or redundancy between the
two agencies. It does this by abolishing the VA certification
process and transferring the responsibility of certifying
SDVOSBs and VOSBs to the SBA. Moreover, SDVOSBs would no longer
be able to self-certify for the SBA program. H.R. 1615 would
require those firms to obtain formal certification as well.
Thus, the bill prevents against fraud and abuse by deploying a
full front-end certification program governmentwide.
III. Hearings
In the 116th Congress, the Committee held a hearing that
explored the matters covered by H.R. 1615. On July 10, 2019 the
Committee on Small Business held a hearing titled ``Continuing
to Serve: From Military to Entrepreneur.''\4\ The witnesses for
the hearing were: Mr. Davy Leghorn, Assistant Director, The
American Legion, Washington, DC; Mr. Scott M. Davidson CPT.
USA, Retired, Managing Partner and CEO, The GCO Consulting
Group, McLean, VA; Ms. Torrance Hart, Founder, Teak and Twine,
LLC, Springfield, VA and; Ms. Laurie Sayles, President and CEO,
Civility Management Solutions, Greenbelt, MD.
---------------------------------------------------------------------------
\4\Continuing to Serve: From Military to Entrepreneur, Hearing
Before the H. Comm. On Small Bus., 116th Cong. (2019).
---------------------------------------------------------------------------
In this hearing, three of the witnesses testified about the
confusion that the existence of two SDVOSB certification
programs created among contracting officers and small
businesses. In particular, Mr. Leghorn testified that this
confusion was further aggravated by the fact that many federal
agencies now asked for VA's certification, forcing small
businesses to seek it, when in reality it was not required
under SBA's government-wide contracting program. Similarly, Mr.
Davidson and Ms. Sayles both agreed that it is SBA, not the VA,
the agency with the expertise and necessary resources to
provide such certification. Thus, all three witnesses advocated
for the consolidation of the certifications programs under SBA
and demonstrated their support for H.R. 1615.
IV. Committee Consideration
The Committee on Small Business met in open session, with a
quorum being present, on July 17, 2019, and ordered H.R. 1615
favorably reported, as amended, to the House of
Representatives. During the markup, one amendment was offered
and adopted. Disposition of the amendment is addressed below.
Amendment Number One, filed by Mr. Kelly of Mississippi,
clarifies various sections of H.R. 1615 to ensure the intent of
the bill is clearly interpreted by the public and the
implementing agency. The amendment also strikes Section 4 of
the original bill of H.R. 1615 relative to sole-source
thresholds, which was dependent on the passage of a separate
bill creating uniformity between contracting sole-source
thresholds.
V. Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the recorded
votes on the motion to report legislation and amendments
thereto. The Committee voted by voice vote to favorably report
H.R. 1615, as amended to the House at 12:12 P.M.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
VI. Section-by-Section of H.R. 1615
Section 1. Short title
This section designates the short title as the
``Verification Alignment and Service-disabled Business
Adjustment Act'' or the ``VA-SBA Act.'' This section also
contains a table of contents for this bill.
Section 2. Transfer date
This section defines ``transfer date'' as the date that is
2 years after the date of enactment of this Act. However, it
allows the SBA and VA to jointly extend this transfer date by
6-month increments. The SBA and VA may request an extension an
unlimited number of times but must notify Congress of each
extension.
Section 3. Amendment to and transfer of veteran-owned and service-
disabled veteran-owned business database
This section transfers the responsibility of maintaining a
database of fully certified SDVOSBs and VOSBs from the VA to
the SBA by striking ``the Secretary'' referring to the
Secretary of the VA with the ``Administrator'' referring to the
Administrator of the SBA; where such term appears in Title 38,
Section 8127(e), eligibility of small business concerns, and
(f), database of owned businesses.
It also clarifies that the VA is responsible for verifying
the individual business owner's status as a veteran or service-
disabled veteran, and the SBA is responsible for determining
the business concern's status as a small business concern.
Furthermore, it prohibits the SBA from including a business
concern in the database if either the individual's veteran or
service-disability status cannot be verified by the VA, or the
business concern's ownership and control eligibility
requirements cannot be verified by the SBA.
This section authorizes the VA to transfer to the SBA funds
necessary to cover the SBA's costs in certifying VOSBs for the
VA's VOSB procurement program and the amount will be determined
jointly by both agencies. The section allows this reimbursement
to come from the VA's multiple-award schedule contracts and
allows the Office of Management and Budget to be the arbiter of
any disagreements of reimbursable funds.
Finally, it transfers the responsibility relating to the
requirements and maintenance of the list, or database, of fully
certified service-disabled veteran-owned and veteran-owned
small businesses from title 38 Sec. 8127(f) in the VA Act to
the Small Business Act in title 15.
Section 4. Additional requirement for database
This section authorizes the SBA to access internal
information at the VA relating to the list of certified SDVOSBs
and VOSBs currently maintained by the VA during the transition
period between the date of enactment of this bill to the
official transfer date prescribed in Section 2. This section
also states that the bill does not preclude the SBA from
combining the contents of the database once inherited, with
other lists maintained by the Administrator. Finally, it
clarifies that what is being transferred is the contents of the
database, not the system or information technology used at the
VA.
Section 5. Procurement program for small business concerns owned and
controlled by service-disabled veterans
This section amends Section 36 of the Small Business Act
(15 U.S.C. 657(f)) pertaining to the SBA's SDVOSB program. It
first defines terms pertinent to this section and requires SBA
to actively certify all small business concerns owned and
controlled by service-disabled veterans, also requiring
periodic recertification by the SBA of SDVOSBs.
This section further requires the SBA to establish
procedures verifying the eligibility of SDVOSBs in several
ways: 1) by allowing the SBA to perform examinations of the
small business concern and to determine the veracity of the
information provided by the SDVOSB applicant as part of its
certification request; 2) by allowing the SBA to perform
examinations of certified SDVOSBs using a risk-based
assessment; 3) and by allowing the SBA to examine allegations
or challenges made to an SDVOSB's status. This section also
imposes penalties that can be assessed against an SDVOSB that
has been found to have misrepresented its status to the federal
government. It also requires federal agencies to provide
relevant information to the SBA that may be needed to certify
SDVOSBs or penalize for misrepresentation.
Section 6. Certification for small business concerns owned and
controlled by veterans
This section authorizes the SBA to certify small business
concerns owned and controlled by veterans, as currently
established under section 8127 of title 38, for use by the VA.
Additionally, it requires the SBA to establish procedures
verifying the eligibility of VOSBs in several ways: by allowing
the SBA to perform examinations of the small business concern
and to determine the veracity of the information provided by
the VOSB applicant as part of its certification request and by
allowing the SBA to examine allegations or challenges made to
an VOSB's status. This section also imposes penalties that can
be assessed against an VOSB that has been found to have
misrepresented its status to the federal government.
Section 7. Status of self-certified small business concerns owned and
controlled by service-disabled veterans
This section allows a self-certified SDVOSB in the SBA's
program to maintain its self-certification if the concern files
a new application with the SBA for front-end certification
within one year of the transfer date of certification duties
from the VA to the SBA, as established in this bill. The
concern may maintain its self-certified status until the SBA
has made a determination with respect to its new certification
application. If the concern fails to file a new certification
application before the 1-year period, the concern forfeits its
status as an SDVOSB. This section does not apply to SDVOSB
contract holders with the VA who have already received
verification of their status through the VA. The SBA is also
required to notify self-certified SDVOSBs of the requirements
of this bill, including the transfer date.
Section 8. Transfer of the Center for Verification and Evaluation of
the Department of Veterans Affairs to the Small Business
Administration
This section abolishes the VA's Center for Verification and
Evaluation (CVE) effective on the transfer date established by
this bill and requires the SBA to take on the certification
functions of the CVE on the established transfer date. This
section also establishes the transfer of assets of the VA's CVE
program from the VA to the SBA.
Section 9. Report
The VA and the SBA are required to jointly issue a report
to the Committees on Appropriations, Small Business, and
Veterans Affairs of the House of Representatives and Senate,
describing the progress made on the transfer of the CVE's
certification function to the SBA and also requires an
explanation of the joint agencies outreach efforts to the VOSB
and SDVOSB community. This report shall be issued no later than
1 year after the date of enactment of this bill and every 6
months thereafter until the transfer date described in section
8 of this Act.
VII. Congressional Budget Office Cost Estimate
At the time H.R. 1615 was reported to the House, the
Congressional Budget Office had not provided a cost-estimate.
VIII. Unfunded Mandates
H.R. 1615 contains no intergovernmental or private sector
mandates as defined in the Unfunded Mandates Reform Act, Public
Law No. 104-4, and would impose no costs on state, local, or
tribal governments.
IX. New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House, the Committee provides the following opinion and
estimate with respect to new budget authority, entitlement
authority, and tax expenditures. While the Committee has not
received an estimate of new budget authority contained in the
cost estimate prepared by the Director of the Congressional
Budget Office pursuant to Sec. 402 of the Congressional Budget
Act of 1974, the Committee does not believe that there will be
any additional costs attributable to this legislation. H.R.
1615 does not direct new spending, but instead reallocates
funding independently authorized and appropriated.
X. Oversight Findings
In accordance with clause 2(b)(1) of rule X of the Rules of
the House, the oversight findings and recommendations of the
Committee on Small Business with respect to the subject matter
contained in H.R. 1615 are incorporated into the descriptive
portions of this report.
XI. Statement of Constitutional Authority
Pursuant to clause 7 of rule XII of the Rules of the House
of Representatives, the Committee finds the authority for this
legislation in Art. I, Sec. 8, cl. 1 of the Constitution of the
United States.
XII. Congressional Accountability Act
H.R. 1615 does not relate to the terms and conditions of
employment or access to public services or accommodations
within the meaning of Sec. 102(b)(3) of Public Law No. 104-1.
XIII. Federal Advisory Committee Act Statement
H.R. 1615 does not establish or authorize the establishment
of any new advisory committees as that term is defined in the
Federal Advisory Committee Act, 5 U.S.C. App.2.
XIV. Statement of No Earmarks
Pursuant to clause 9 of rule XXI, H.R. 1615 does not
contain any congressional earmarks, limited tax benefits, or
limited tariff benefits as defined in subsections (d), (e), or
(f) of clause 9 of rule XXI of the Rules of the House.
XV. Statement of Duplication of Federal Programs
Pursuant to clause 3 of rule XIII of the Rules of the
House, no provision of H.R. 1615 establishes or reauthorizes a
program of the federal government known to be duplicative of
another federal program, a program that was included in any
report from the United States Government Accountability Office
pursuant to Sec. 21 of Pub. L. No. 111-139, or a program
related to a program identified in the most recent catalog of
federal domestic assistance.
XVI. Disclosure of Directed Rulemakings
Pursuant to clause 3 of rule XIII of the Rules of the
House, H.R. 1615 does not direct any rulemaking.
XVII. Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XII of the Rules of the
House, the Committee establishes the following performance-
related goals and objectives for this legislation:
H.R. 1615 eliminates redundancy and confusion by making
only one entity, the SBA, responsible for providing formal
certification and granting VOSB and SDVOSB status across two
small business contracting programs.
XVIII. Changes in Existing Law Made by the Bill, as Reported
In compliance with clause (E) of rule XIII of the Rules of
the House, changes in existing law made by the bill, as
reported, as shown as follows: existing law proposed to be
omitted is enclosed in black brackets, new matter is printed in
italic, and existing law in which no change is proposed is
shown in roman:
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, and existing law in which no
change is proposed is shown in roman):
TITLE 38, UNITED STATES CODE
* * * * * * *
PART VI--ACQUISITION AND DISPOSITION OF PROPERTY
* * * * * * *
CHAPTER 81--ACQUISITION AND OPERATION OF HOSPITAL AND DOMICILIARY
FACILITIES; PROCUREMENT AND SUPPLY; ENHANCED-USE LEASES OF REAL
PROPERTY
* * * * * * *
SUBCHAPTER II--PROCUREMENT AND SUPPLY
* * * * * * *
Sec. 8127. Small business concerns owned and controlled by veterans:
contracting goals and preferences
(a) Contracting Goals.--(1) In order to increase contracting
opportunities for small business concerns owned and controlled
by veterans and small business concerns owned and controlled by
veterans with service-connected disabilities, the Secretary
shall--
(A) establish a goal for each fiscal year for
participation in Department contracts (including
subcontracts) by small business concerns owned and
controlled by veterans who are not veterans with
service-connected disabilities in accordance with
paragraph (2); and
(B) establish a goal for each fiscal year for
participation in Department contracts (including
subcontracts) by small business concerns owned and
controlled by veterans with service-connected
disabilities in accordance with paragraph (3).
(2) The goal for a fiscal year for participation under
paragraph (1)(A) shall be determined by the Secretary.
(3) The goal for a fiscal year for participation under
paragraph (1)(B) shall be not less than the Government-wide
goal for that fiscal year for participation by small business
concerns owned and controlled by veterans with service-
connected disabilities under section 15(g)(1) of the Small
Business Act (15 U.S.C. 644(g)(1)).
(4) The Secretary shall establish a review mechanism to
ensure that, in the case of a subcontract of a Department
contract that is counted for purposes of meeting a goal
established pursuant to this section, the subcontract was
actually awarded to a business concern that may be counted for
purposes of meeting that goal.
(b) Use of Noncompetitive Procedures for Certain Small
Contracts.--For purposes of meeting the goals under subsection
(a), and in accordance with this section, in entering into a
contract with a small business concern owned and controlled by
veterans or a small business concern owned and controlled by
veterans with service-connected disabilities for an amount less
than the simplified acquisition threshold (as defined in
section 134 of title 41), a contracting officer of the
Department may use procedures other than competitive
procedures.
(c) Sole Source Contracts for Contracts Above Simplified
Acquisition Threshold.--For purposes of meeting the goals under
subsection (a), and in accordance with this section, a
contracting officer of the Department may award a contract to a
small business concern owned and controlled by veterans or a
small business concern owned and controlled by veterans with
service-connected disabilities using procedures other than
competitive procedures if--
(1) such concern is determined to be a responsible
source with respect to performance of such contract
opportunity;
(2) the anticipated award price of the contract
(including options) will exceed the simplified
acquisition threshold (as defined in section 134 of
title 41) but will not exceed $5,000,000; and
(3) in the estimation of the contracting officer, the
contract award can be made at a fair and reasonable
price that offers best value to the United States.
(d) Use of Restricted Competition.--Except as provided in
subsections (b) and (c), for purposes of meeting the goals
under subsection (a), and in accordance with this section, a
contracting officer of the Department shall award contracts on
the basis of competition restricted to small business concerns
owned and controlled by veterans or small business concerns
owned and controlled by veterans with service-connected
disabilities if the contracting officer has a reasonable
expectation that two or more small business concerns owned and
controlled by veterans or small business concerns owned and
controlled by veterans with service-connected disabilities will
submit offers and that the award can be made at a fair and
reasonable price that offers best value to the United States.
(e) Eligibility of Small Business Concerns.--A small business
concern may be awarded a contract under this section only if
the small business concern and the veteran owner of the small
business concern are listed in the database of veteran-owned
businesses maintained by [the Secretary] the Administrator
under [subsection (f)] section 36 of the Small Business Act.
[(f) Database of Veteran-Owned Businesses.--(1) Subject to
paragraphs (2) through (6), the Secretary shall maintain a
database of small business concerns owned and controlled by
veterans, small business concerns owned and controlled by
veterans with service-connected disabilities, and the veteran
owners of such business concerns.
[(2)(A) To be eligible for inclusion in the database, such a
veteran shall submit to the Secretary such information as the
Secretary may require with respect to the small business
concern or the veteran. Application for inclusion in the
database shall constitute permission under section 552a of
title 5 (commonly referred to as the Privacy Act) for the
Secretary to access such personal information maintained by the
Secretary as may be necessary to verify the information
contained in the application.
[(B) If the Secretary receives an application for inclusion
in the database from an individual whose status as a veteran
cannot be verified because the Secretary does not maintain
information with respect to the veteran status of the
individual, the Secretary may not include the small business
concern owned and controlled by the individual in the database
maintained by the Secretary until the Secretary receives such
information as may be necessary to verify that the individual
is a veteran.
[(3) Information maintained in the database shall be
submitted on a voluntary basis by such veterans.
[(4) No small business concern may be listed in the database
until the Secretary has verified, using regulations issued by
the Administrator of the Small Business Administration with
respect to the status of the concern as a small business
concern and the ownership and control of such concern, that--
[(A) the small business concern is owned and
controlled by veterans; and
[(B) in the case of a small business concern for
which the person who owns and controls the concern
indicates that the person is a veteran with a service-
connected disability, that the person is a veteran with
a service-connected disability.
[(5) The Secretary shall make the database available to all
Federal departments and agencies and shall notify each such
department and agency of the availability of the database.
[(6) If the Secretary determines that the public
dissemination of certain types of information maintained in the
database is inappropriate, the Secretary shall take such steps
as are necessary to maintain such types of information in a
secure and confidential manner.
[(7) The Secretary may not issue regulations related to the
status of a concern as a small business concern and the
ownership and control of such small business concern.
[(8)(A) If a small business concern is not included in the
database because the Secretary does not verify the status of
the concern as a small business concern or the ownership or
control of the concern, the concern may appeal the denial of
verification to the Office of Hearings and Appeals of the Small
Business Administration (as established under section 5(i) of
the Small Business Act). The decision of the Office of Hearings
and Appeals shall be considered a final agency action.
[(B)(i) If an interested party challenges the inclusion in
the database of a small business concern owned and controlled
by veterans or a small business concern owned and controlled by
veterans with service-connected disabilities based on the
status of the concern as a small business concern or the
ownership or control of the concern, the challenge shall be
heard by the Office of Hearings and Appeals of the Small
Business Administration as described in subparagraph (A). The
decision of the Office of Hearings and Appeals shall be
considered final agency action.
[(ii) In this subparagraph, the term ``interested party''
means--
[(I) the Secretary; or
[(II) in the case of a small business concern that is
awarded a contract, the contracting officer of the
Department or another small business concern that
submitted an offer for the contract that was awarded to
the small business concern that is the subject of a
challenge made under clause (i).
[(C) For each fiscal year, the Secretary shall reimburse the
Administrator of the Small Business Administration in an amount
necessary to cover any cost incurred by the Office of Hearings
and Appeals of the Small Business Administration for actions
taken by the Office under this paragraph. The Administrator is
authorized to accept such reimbursement. The amount of any such
reimbursement shall be determined jointly by the Secretary and
the Administrator and shall be provided from fees collected by
the Secretary under multiple-award schedule contracts. Any
disagreement about the amount shall be resolved by the Director
of the Office of Management and Budget.]
(g) Enforcement Penalties for Misrepresentation.--(1) Any
business concern that is determined by the Secretary to have
willfully and intentionally misrepresented the status of that
concern as a small business concern owned and controlled by
veterans or as a small business concern owned and controlled by
service-disabled veterans for purposes of this subsection shall
be debarred from contracting with the Department for a period
of not less than five years.
(2) In the case of a debarment under paragraph (1), the
Secretary shall commence debarment action against the business
concern by not later than 30 days after determining that the
concern willfully and intentionally misrepresented the status
of the concern as described in paragraph (1) and shall complete
debarment actions against such concern by not later than 90
days after such determination.
(3) The debarment of a business concern under paragraph (1)
includes the debarment of all principals in the business
concern for a period of not less than five years.
(h) Priority for Contracting Preferences.--Preferences for
awarding contracts to small business concerns shall be applied
in the following order of priority:
(1) Contracts awarded pursuant to subsection (b),
(c), or (d) to small business concerns owned and
controlled by veterans with service-connected
disabilities.
(2) Contracts awarded pursuant to subsection (b),
(c), or (d) to small business concerns owned and
controlled by veterans that are not covered by
paragraph (1).
(3) Contracts awarded pursuant to--
(A) section 8(a) of the Small Business Act
(15 U.S.C. 637(a)); or
(B) section 31 of such Act (15 U.S.C. 657a).
(4) Contracts awarded pursuant to any other small
business contracting preference.
(i) Applicability of Requirements to Contracts.--(1) If after
December 31, 2008, the Secretary enters into a contract,
memorandum of understanding, agreement, or other arrangement
with any governmental entity to acquire goods or services, the
Secretary shall include in such contract, memorandum,
agreement, or other arrangement a requirement that the entity
will comply, to the maximum extent feasible, with the
provisions of this section in acquiring such goods or services.
(2) Nothing in this subsection shall be construed to
supersede or otherwise affect the authorities provided under
the Small Business Act (15 U.S.C. 631 et seq.).
(j) Annual Reports.--Not later than December 31 each year,
the Secretary shall submit to Congress a report on small
business contracting during the fiscal year ending in such
year. Each report shall include, for the fiscal year covered by
such report, the following:
(1) The percentage of the total amount of all
contracts awarded by the Department during that fiscal
year that were awarded to small business concerns owned
and controlled by veterans.
(2) The percentage of the total amount of all such
contracts awarded to small business concerns owned and
controlled by veterans with service-connected
disabilities.
(3) The percentage of the total amount of all
contracts awarded by each Administration of the
Department during that fiscal year that were awarded to
small business concerns owned and controlled by
veterans.
(4) The percentage of the total amount of all
contracts awarded by each such Administration during
that fiscal year that were awarded to small business
concerns owned and controlled by veterans with service-
connected disabilities.
(k) Annual Transfer for Certification Costs.--For each fiscal
year, the Secretary of Veterans Affairs shall reimburse the
Administrator in an amount necessary to cover any cost incurred
by the Administrator for certifying small business concerns
owned and controlled by veterans that do not qualify as small
business concerns owned and controlled by service-disabled
veterans for the Secretary for purposes of this section and
section 8128 of this title. The Administrator is authorized to
accept such reimbursement. The amount of any such reimbursement
shall be determined jointly by the Secretary and the
Administrator and shall be provided from fees collected by the
Secretary under multiple-award schedule contracts. Any
disagreement about the amount shall be resolved by the Director
of the Office of Management and Budget.
[(k)] (l) Definitions.--In this section:
(1) The term ``small business concern'' has the
meaning given that term under section 3 of the Small
Business Act (15 U.S.C. 632).
(2) The term ``small business concern owned and
controlled by veterans'' has the meaning given that
term under section 3(q)(3) of the Small Business Act
(15 U.S.C. 632(q)(3)).
(3) The term ``small business concern owned and
controlled by veterans with service-connected
disabilities'' has the meaning given the term ``small
business concern owned and controlled by service-
disabled veterans'' under section 3(q)(2) of the Small
Business Act (15 U.S.C. 632(q)(2)).
(4) The term ``Administrator'' means the
Administrator of the Small Business Administration.
Sec. 8128. Small business concerns owned and controlled by veterans:
contracting priority
(a) Contracting Priority.--In procuring goods and services
pursuant to a contracting preference under this title or any
other provision of law, the Secretary shall give priority to a
small business concern owned and controlled by veterans, if
such business concern also meets the requirements of that
contracting preference.
(b) Definition.--For purposes of this section, the term
``small business concern owned and controlled by veterans''
means a small business concern that is included in the small
business database maintained by the Secretary under [section
8127(f) of this title] section 36 of the Small Business Act.
* * * * * * *
----------
SMALL BUSINESS ACT
* * * * * * *
SEC. 3. DEFINITIONS.
(a) Small Business Concerns.--
(1) In general.--For the purposes of this Act, a
small-business concern, including but not limited to
enterprises that are engaged in the business of
production of food and fiber, ranching and raising of
livestock, aquaculture, and all other farming and
agricultural related industries, shall be deemed to be
one which is independently owned and operated and which
is not dominant in its field of operation.
(2) Establishment of size standards.--
(A) In general.--In addition to the criteria
specified in paragraph (1), the Administrator
may specify detailed definitions or standards
by which a business concern may be determined
to be a small business concern for the purposes
of this Act or any other Act.
(B) Additional criteria.--The standards
described in paragraph (1) may utilize number
of employees, dollar volume of business, net
worth, net income, a combination thereof, or
other appropriate factors.
(C) Requirements.--Unless specifically
authorized by statute, no Federal department or
agency may prescribe a size standard for
categorizing a business concern as a small
business concern, unless such proposed size
standard--
(i) is proposed after an opportunity
for public notice and comment;
(ii) provides for determining--
(I) the size of a
manufacturing concern as
measured by the manufacturing
concern's average employment
based upon employment during
each of the manufacturing
concern's pay periods for the
preceding 12 months;
(II) the size of a business
concern providing services on
the basis of the annual average
gross receipts of the business
concern over a period of not
less than 5 years;
(III) the size of other
business concerns on the basis
of data over a period of not
less than 3 years; or
(IV) other appropriate
factors; and
(iii) is approved by the
Administrator.
(3) Variation by industry and consideration of other
factors.--When establishing or approving any size
standard pursuant to paragraph (2), the Administrator
shall ensure that the size standard varies from
industry to industry to the extent necessary to reflect
the differing characteristics of the various industries
and consider other factors deemed to be relevant by the
Administrator.
(4) Exclusion of certain security expenses from
consideration for purpose of small business size
standards.--
(A) Determination required.--Not later than
30 days after the date of enactment of this
paragraph, the Administrator shall review the
application of size standards established
pursuant to paragraph (2) to small business
concerns that are performing contracts in
qualified areas and determine whether it would
be fair and appropriate to exclude from
consideration in the average annual gross
receipts of such small business concerns any
payments made to such small business concerns
by Federal agencies to reimburse such small
business concerns for the cost of subcontracts
entered for the sole purpose of providing
security services in a qualified area.
(B) Action required.--Not later than 60 days
after the date of enactment of this paragraph,
the Administrator shall either--
(i) initiate an adjustment to the
size standards, as described in
subparagraph (A), if the Administrator
determines that such an adjustment
would be fair and appropriate; or
(ii) provide a report to the
Committee on Small Business and
Entrepreneurship of the Senate and the
Committee on Small Business of the
House of Representatives explaining in
detail the basis for the determination
by the Administrator that such an
adjustment would not be fair and
appropriate.
(C) Qualified areas.--In this paragraph, the
term ``qualified area'' means--
(i) Iraq,
(ii) Afghanistan, and
(iii) any foreign country which
included a combat zone, as that term is
defined in section 112(c)(2) of the
Internal Revenue Code of 1986, at the
time of performance of the relevant
Federal contract or subcontract.
(5) Alternative Size Standard.--
(A) In general.--The Administrator shall
establish an alternative size standard for
applicants for business loans under section
7(a) and applicants for development company
loans under title V of the Small Business
Investment Act of 1958 (15 U.S.C. 695 et seq.),
that uses maximum tangible net worth and
average net income as an alternative to the use
of industry standards.
(B) Interim rule.--Until the date on which
the alternative size standard established under
subparagraph (A) is in effect, an applicant for
a business loan under section 7(a) or an
applicant for a development company loan under
title V of the Small Business Investment Act of
1958 may be eligible for such a loan if--
(i) the maximum tangible net worth of
the applicant is not more than
$15,000,000; and
(ii) the average net income after
Federal income taxes (excluding any
carry-over losses) of the applicant for
the 2 full fiscal years before the date
of the application is not more than
$5,000,000.
(6) Proposed rulemaking.--In conducting rulemaking to
revise, modify or establish size standards pursuant to
this section, the Administrator shall consider, and
address, and make publicly available as part of the
notice of proposed rulemaking and notice of final rule
each of the following:
(A) a detailed description of the industry
for which the new size standard is proposed;
(B) an analysis of the competitive
environment for that industry;
(C) the approach the Administrator used to
develop the proposed standard including the
source of all data used to develop the proposed
rule making; and
(D) the anticipated effect of the proposed
rulemaking on the industry, including the
number of concerns not currently considered
small that would be considered small under the
proposed rule making and the number of concerns
currently considered small that would be deemed
other than small under the proposed rulemaking.
(7) Common size standards.--In carrying out this
subsection, the Administrator may establish or approve
a single size standard for a grouping of 4-digit North
American Industry Classification System codes only if
the Administrator makes publicly available, not later
than the date on which such size standard is
established or approved, a justification demonstrating
that such size standard is appropriate for each
individual industry classification included in the
grouping.
(8) Number of size standards.--The Administrator
shall not limit the number of size standards
established pursuant to paragraph (2), and shall assign
the appropriate size standard to each North American
Industry Classification System Code.
(9) Petitions for reconsideration of size
standards.--
(A) In general.--A person may file a petition
for reconsideration with the Office of Hearings
and Appeals (as established under section 5(i))
of a size standard revised, modified, or
established by the Administrator pursuant to
this subsection.
(B) Time limit.--A person filing a petition
for reconsideration described in subparagraph
(A) shall file such petition not later than 30
days after the publication in the Federal
Register of the notice of final rule to revise,
modify, or establish size standards described
in paragraph (6).
(C) Process for agency review.--The Office of
Hearings and Appeals shall use the same process
it uses to decide challenges to the size of a
small business concern to decide a petition for
review pursuant to this paragraph.
(D) Judicial review.--The publication of a
final rule in the Federal Register described in
subparagraph (B) shall be considered final
agency action for purposes of seeking judicial
review. Filing a petition for reconsideration
under subparagraph (A) shall not be a condition
precedent to judicial review of any such size
standard.
(E) Rules or guidance.--The Office of
Hearings and Appeals shall begin accepting
petitions for reconsideration described in
subparagraph (A) after the date on which the
Administration issues a rule or other guidance
implementing this paragraph. Notwithstanding
the provisions of subparagraph (B), petitions
for reconsideration of size standards revised,
modified, or established in a Federal Register
final rule published between November 25, 2015,
and the effective date of such rule or other
guidance shall be considered timely if filed
within 30 days of such effective date.
(b) For purposes of this Act, any reference to an agency or
department of the United States, and the term ``Federal
agency,'' shall have the meaning given the term ``agency'' by
section 551(1) of title 5, United States Code, but does not
include the United States Postal Service or the General
Accounting Office.
(c)(1) For purposes of this Act, a qualified employee trust
shall be eligible for any loan guarantee under section 7(a)
with respect to a small business concern on the same basis as
if such trust were the same legal entity as such concern.
(2) For purposes of this Act, the term ``qualified employee
trust'' means, with respect to a small business concern, a
trust--
(A) which forms part of an employee stock ownership
plan (as defined in section 4975(e)(7) of the Internal
Revenue Code of 1954)--
(i) which is maintained by such concern, and
(ii) which provides that each participant is
entitled to direct the plan trustee as to the
manner of how to vote the qualified employer
securities (as defined in section 4975(e)(8) of
the Internal Revenue Code of 1986), which are
allocated to the account of such participant
with respect to a corporate matter which (by
law or charter) must be decided by a vote
conducted in accordance with section 409(e) of
the Internal Revenue Code of 1986; and
(B) in the case of any loan guarantee under section
7(a), the trustee of which enters into an agreement
with the Administrator of which enters into an
agreement with the Administrator which is binding on
the trust and no such small business concern and which
provides that--
(i) the loan guaranteed under section 7(a)
shall be used solely for the purchase of
qualifying employer securities of such concern.
(ii) all funds acquired by the concern in
such purchase shall be used by such concern
solely for the purposes for which such loan was
guaranteed,
(iii) such concern will provide such funds as
may be necessary for the timely repayment of
such loan, and the property of such concern
shall be available as security for repayment of
such loan, and
(iv) all qualifying employer securities
acquired by such trust in such purchase shall
be allocated to the accounts of participants in
such plan who are entitled to share in such
allocation, and each participant has a
nonforfeitable right, not later than the date
such loan is repaid, to all such qualifying
employer securities which are so allocated to
the participant's account.
(3) Under regulations which may be prescribed by the
Administrator, a trust may be treated as a qualified employee
trust with respect to a small business concern if--
(A) the trust is maintained by an employee
organization which represents at least 51 percent of
the employee of such concern, and
(B) such concern maintains a plan--
(i) which is an employee benefit plan which
is designed to invest primarily in qualifying
employer securities (as defined in section
4975(e)(8) of the Internal Revenue Code of
1954).
(ii) which provides that each participant in
the plan is entitled to direct the plan as to
the manner in which voting rights under
qualifying employer securities which are
allocated to the account of such participant
are to be exercised with respect to a corporate
matter which (by law or charter) must be
decided by a majority vote of the outstanding
common shares voted,
(iii) which provides that each participant
who is entitled to distribution from the plan
has a right, in the case of qualifying employer
securities which are not readily tradable on an
established market, to require that the concern
repurchase such securities under a fair
valuation formula, and
(iv) which meets such other requirements
(similar to requirements applicable to employee
ownership plans as defined in section
4975(e)(7) of the Internal Revenue Code of
1954) as the Administrator may prescribe, and
(C) in the case of a loan guarantee under section
7(a), such organization enters into an agreement with
the Administration which is described in paragraph
(2)(B).
(d) For purposes of section 7 of this Act, the term
``qualified Indian tribe'' means an Indian tribe as defined in
section 4(a) of the Indian Self-Determination and Education
Assistance Act, which owns and controls 100 per centum of a
small business concern.
(e) For purposes of section 7 of this Act, the term ``public
or private organization for the handicapped'' means one--
(1) which is organized under the laws of the United
States or of any State, operated in the interest of
handicapped individuals, the net income of which does
not insure in whole or in part to the benefit of any
shareholder or other individual;
(2) which complies with any applicable occupational
health and safety standard prescribed by the Secretary
of Labor; and
(3) which, in the production of commodities and in
the provision of services during any fiscal year in
which it received financial assistance under this
subsection, employs handicapped individuals for not
less than 75 per centum of the man-hours required for
the production or provision of the commodities or
services.
(f) For purposes of section 7 of this Act, the term
``handicapped individual'' means an individual--
(1) who has a physical, mental, or emotional
impairment, defect, ailment, disease, or disability of
a permanent nature which in any way limits the
selection of any type of employment for which the
person would otherwise be qualified or qualifiable; or
(2) who is a service-disabled veteran.
(g) For purposes of section 7 of this Act, the term ``energy
measures'' includes--
(1) solar thermal energy equipment which is either of
the active type based upon mechanically forced energy
transfer or of the passive type based on convective,
conductive, or radiant energy transfer or some
combination equipment;
(2) photovoltaic cells and related equipment;
(3) a product or service the primary purpose of which
is conservation of energy through devices or techniques
which increase the energy through devices or techniques
which increase the energy efficiency of existing
equipment, methods of operation, or systems which use
fossil fuels, and which is on the Energy Conservation
Measures list of the Secretary of Energy or which the
Administrator determines to be consistent with the
intent of this subsection;
(4) equipment the primary purpose of which is
production of energy from wood, biological waste,
grain, or other biomass source of energy;
(5) equipment the primary purpose of which is
industrial cogeneration of energy, district heating, or
production of energy from industrial waste;
(6) hydroelectric power equipment;
(7) wind energy conversion equipment; and
(8) engineering, architectural, consulting, or other
professional services which are necessary or
appropriate to aid citizens in using any of the
measures described in paragraph (1) through (7).
(h) The term ``credit elsewhere'' means--
(1) for the purposes of this Act (except as used in
section 7(b)), the availability of credit on reasonable
terms and conditions to the individual loan applicant
from non-Federal, non-State, or non-local government
sources, considering factors associated with
conventional lending practices, including--
(A) the business industry in which the loan
applicant operates;
(B) whether the loan applicant is an
enterprise that has been in operation for a
period of not more than 2 years;
(C) the adequacy of the collateral available
to secure the requested loan;
(D) the loan term necessary to reasonably
assure the ability of the loan applicant to
repay the debt from the actual or projected
cash flow of the business; and
(E) any other factor relating to the
particular credit application, as documented in
detail by the lender, that cannot be overcome
except through obtaining a Federal loan
guarantee under prudent lending standards; and
(2) for the purposes of section 7(b), the
availability of credit on reasonable terms and
conditions from non-Federal sources taking into
consideration the prevailing rates and terms in the
community in or near where the applicant business
concern transacts business, or the applicant homeowner
resides, for similar purposes and periods of time.
(i) For purposes of section 7 of this Act, the term
``homeowners'' includes owners and lessees of residential
property and also includes personal property.
(j) For the purposes of this Act, the term ``small
agricultural cooperative'' means an association (corporate or
otherwise) acting pursuant to the provisions of the
Agricultural Marketing Act (12 U.S.C. 1141j), whose size does
not exceed the size standard established by the Administration
for other similar agricultural small business concerns. In
determining such size, the Administration shall regard the
association as a business concern and shall not include the
income or employees of any member shareholder of such
cooperative.
(k)(1) For the purposes of this Act, the term ``disaster''
means a sudden event which causes severe damage including, but
not limited to, floods, hurricanes, tornadoes, earthquakes,
fires, explosions, volcanoes, windstorms, landslides or
mudslides, tidal waves, commercial fishery failures or fishery
resource disasters (as determined by the Secretary of Commerce
under section 308(b) of the Interjurisdictional Fisheries Act
of 1986), ocean conditions resulting in the closure of
customary fishing waters, riots, civil disorders or other
catastrophes, except it does not include economic dislocations.
(2) For purposes of section 7(b)(2), the term ``disaster''
includes--
(A) drought;
(B) below average water levels in the Great Lakes, or
on any body of water in the United States that supports
commerce by small business concerns; and
(C) ice storms and blizzards.
(l) For purposes of this Act--
(1) the term ``computer crime'' means''--
(A) any crime committed against a small
business concern by means of the use of a
computer; and
(B) any crime involving the illegal use of,
or tampering with, a computer owned or utilized
by a small business concern.
(m) Definitions Relating to Contracting.--In this Act:
(1) Prime contract.--The term ``prime contract'' has
the meaning given such term in section 8701(4) of title
41, United States Code.
(2) Prime contractor.--The term ``prime contractor''
has the meaning given such term in section 8701(5) of
title 41, United States Code.
(3) Simplified acquisition threshold.--The term
``simplified acquisition threshold'' has the meaning
given such term in section 134 of title 41, United
States Code.
(4) Micro-purchase threshold.--The term ``micro-
purchase threshold'' has the meaning given such term in
section 1902 of title 41, United States Code.
(5) Total purchases and contracts for property and
services.--The term ``total purchases and contracts for
property and services'' shall mean total number and
total dollar amount of contracts and orders for
property and services.
(n) For the purposes of this Act, a small business concern is
a small business concern owned and controlled by women if--
(1) at least 51 percent of small business concern is
owned by one or more women or, in the case of any
publicly owned business, at least 51 percent of the
stock of which is owned by one or more women; and
(2) the management and daily business operations of
the business are controlled by one or more women.
(o) Definitions of Bundling of Contract Requirements and
Related Terms.--In this Act:
(1) Bundled contract.--The term ``bundled contract''
means a contract that is entered into to meet
requirements that are consolidated in a bundling of
contract requirements.
(2) Bundling of contract requirements.--The term
``bundling of contract requirements'' means
consolidating 2 or more procurement requirements for
goods or services previously provided or performed
under separate smaller contracts into a solicitation of
offers for a single contract that is likely to be
unsuitable for award to a small-business concern due
to--
(A) the diversity, size, or specialized
nature of the elements of the performance
specified;
(B) the aggregate dollar value of the
anticipated award;
(C) the geographical dispersion of the
contract performance sites; or
(D) any combination of the factors described
in subparagraphs (A), (B), and (C).
(3) Separate smaller contract.--The term ``separate
smaller contract'', with respect to a bundling of
contract requirements, means a contract that has been
performed by 1 or more small business concerns or was
suitable for award to 1 or more small business
concerns.
(p) Definitions Relating to HUBZones.--In this Act:
(1) Historically underutilized business zone.--The
term ``historically underutilized business zone'' means
any area located within 1 or more--
(A) qualified census tracts;
(B) qualified nonmetropolitan counties;
(C) lands within the external boundaries of
an Indian reservation;
(D) redesignated areas;
(E) base closure areas; or
(F) qualified disaster areas.
(2) HUBZone.--The term ``HUBZone'' means a
historically underutilized business zone.
(3) Hubzone small business concern.--The term
``HUBZone small business concern'' means--
(A) a small business concern that is at least
51 percent owned and controlled by United
States citizens;
(B) a small business concern that is--
(i) an Alaska Native Corporation
owned and controlled by Natives (as
determined pursuant to section 29(e)(1)
of the Alaska Native Claims Settlement
Act (43 U.S.C. 1626(e)(1))); or
(ii) a direct or indirect subsidiary
corporation, joint venture, or
partnership of an Alaska Native
Corporation qualifying pursuant to
section 29(e)(1) of the Alaska Native
Claims Settlement Act (43 U.S.C.
1626(e)(1)), if that subsidiary, joint
venture, or partnership is owned and
controlled by Natives (as determined
pursuant to section 29(e)(2)) of the
Alaska Native Claims Settlement Act (43
U.S.C. 1626(e)(2)));
(C) a small business concern--
(i) that is wholly owned by one or
more Indian tribal governments, or by a
corporation that is wholly owned by one
or more Indian tribal governments; or
(ii) that is owned in part by one or
more Indian tribal governments, or by a
corporation that is wholly owned by one
or more Indian tribal governments, if
all other owners are either United
States citizens or small business
concerns;
(D) a small business concern--
(i) that is wholly owned by one or
more Native Hawaiian Organizations (as
defined in section 8(a)(15)), or by a
corporation that is wholly owned by one
or more Native Hawaiian Organizations;
or
(ii) that is owned in part by one or
more Native Hawaiian Organizations, or
by a corporation that is wholly owned
by one or more Native Hawaiian
Organizations, if all other owners are
either United States citizens or small
business concerns;
(E) a small business concern that is--
(i) wholly owned by a community
development corporation that has
received financial assistance under
part 1 of subchapter A of the Community
Economic Development Act of 1981 (42
U.S.C. 9805 et seq.); or
(ii) owned in part by one or more
community development corporations, if
all other owners are either United
States citizens or small business
concerns; or
(F) a small business concern that is--
(i) a small agricultural cooperative
organized or incorporated in the United
States;
(ii) wholly owned by 1 or more small
agricultural cooperatives organized or
incorporated in the United States; or
(iii) owned in part by 1 or more
small agricultural cooperatives
organized or incorporated in the United
States, if all owners are small
business concerns or United States
citizens.
(4) Qualified areas.--
(A) Qualified census tract.--
(i) In general.--The term ``qualified
census tract'' has the meaning given
that term in section 42(d)(5)(B)(ii) of
the Internal Revenue Code of 1986.
(ii) Exception.--For any metropolitan
statistical area in the Commonwealth of
Puerto Rico, the term ``qualified
census tract'' has the meaning given
that term in section 42(d)(5)(B)(ii) of
the Internal Revenue Code of 1986 as
applied without regard to subclause
(II) of such section, except that this
clause shall only apply--
(I) 10 years after the date
that the Administrator
implements this clause, or
(II) the date on which the
Financial Oversight and
Management Board for the
Commonwealth of Puerto Rico
created by the Puerto Rico
Oversight, Management, and
Economic Stability Act ceases
to exist,
whichever event occurs first.
(B) Qualified nonmetropolitan county.--The
term ``qualified nonmetropolitan county'' means
any county--
(i) that was not located in a
metropolitan statistical area (as
defined in section 143(k)(2)(B) of the
Internal Revenue Code of 1986) at the
time of the most recent census taken
for purposes of selecting qualified
census tracts under section
42(d)(5)(C)(ii) of the Internal Revenue
Code of 1986; and
(ii) in which--
(I) the median household
income is less than 80 percent
of the nonmetropolitan State
median household income, based
on the most recent data
available from the Bureau of
the Census of the Department of
Commerce;
(II) the unemployment rate is
not less than 140 percent of
the average unemployment rate
for the United States or for
the State in which such county
is located, whichever is less,
based on the most recent data
available from the Secretary of
Labor; or
(III) there is located a
difficult development area, as
designated by the Secretary of
Housing and Urban Development
in accordance with section
42(d)(5)(C)(iii) of the
Internal Revenue Code of 1986,
within Alaska, Hawaii, or any
territory or possession of the
United States outside the 48
contiguous States.
(C) Redesignated area.--The term
``redesignated area'' means any census tract
that ceases to be qualified under subparagraph
(A) and any nonmetropolitan county that ceases
to be qualified under subparagraph (B), except
that a census tract or a nonmetropolitan county
may be a ``redesignated area'' only until the
later of--
(i) the date on which the Census
Bureau publicly releases the first
results from the 2010 decennial census;
or
(ii) 3 years after the date on which
the census tract or nonmetropolitan
county ceased to be so qualified.
(D) Base closure area.--
(i) In general.--Subject to clause
(ii), the term ``base closure area''
means--
(I) lands within the external
boundaries of a military
installation that were closed
through a privatization process
under the authority of--
(aa) the Defense Base
Closure and Realignment
Act of 1990 (part A of
title XXIX of division
B of Public Law 101-
510; 10 U.S.C. 2687
note);
(bb) title II of the
Defense Authorization
Amendments and Base
Closure and Realignment
Act (Public Law 100-
526; 10 U.S.C. 2687
note);
(cc) section 2687 of
title 10, United States
Code; or
(dd) any other
provision of law
authorizing or
directing the Secretary
of Defense or the
Secretary of a military
department to dispose
of real property at the
military installation
for purposes relating
to base closures of
redevelopment, while
retaining the authority
to enter into a
leaseback of all or a
portion of the property
for military use;
(II) the census tract or
nonmetropolitan county in which
the lands described in
subclause (I) are wholly
contained;
(III) a census tract or
nonmetropolitan county the
boundaries of which intersect
the area described in subclause
(I); and
(IV) a census tract or
nonmetropolitan county the
boundaries of which are
contiguous to the area
described in subclause (II) or
subclause (III).
(ii) Limitation.--A base closure area
shall be treated as a HUBZone--
(I) with respect to a census
tract or nonmetropolitan county
described in clause (i), for a
period of not less than 8
years, beginning on the date
the military installation
undergoes final closure and
ending on the date the
Administrator makes a final
determination as to whether or
not to implement the applicable
designation described in
subparagraph (A) or (B) in
accordance with the results of
the decennial census conducted
after the area was initially
designated as a base closure
area; and
(II) if such area was treated
as a HUBZone at any time after
2010, until such time as the
Administrator makes a final
determination as to whether or
not to implement the applicable
designation described in
subparagraph (A) or (B), after
the 2020 decennial census.
(iii) Definitions.--In this
subparagraph:
(I) Census tract.--The term
``census tract'' means a census
tract delineated by the United
States Bureau of the Census in
the most recent decennial
census that is not located in a
nonmetropolitan county and does
not otherwise qualify as a
qualified census tract.
(II) Nonmetropolitan
county.--The term
``nonmetropolitan county''
means a county that was not
located in a metropolitan
statistical area (as defined in
section 143(k)(2)(B) of the
Internal Revenue Code of 1986)
at the time of the most recent
census taken for purposes of
selecting qualified census
tracts and does not otherwise
qualify as a qualified
nonmetropolitan county.
(E) Qualified disaster area.--
(i) In general.--Subject to clause
(ii), the term ``qualified disaster
area'' means any census tract or
nonmetropolitan county located in an
area for which the President has
declared a major disaster under section
401 of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42
U.S.C. 5170) or located in an area in
which a catastrophic incident has
occurred if such census tract or
nonmetropolitan county ceased to be
qualified under subparagraph (A) or
(B), as applicable, during the period
beginning 5 years before the date on
which the President declared the major
disaster or the catastrophic incident
occurred and ending 2 years after such
date, except that such census tract or
nonmetropolitan county may be a
``qualified disaster area'' only--
(I) in the case of a major
disaster declared by the
President, during the 5-year
period beginning on the date on
which the President declared
the major disaster for the area
in which the census tract or
nonmetropolitan county, as
applicable, is located; and
(II) in the case of a
catastrophic incident, during
the 10-year period beginning on
the date on which the
catastrophic incident occurred
in the area in which the census
tract or nonmetropolitan
county, as applicable, is
located.
(ii) Limitation.--A qualified
disaster area described in clause (i)
shall be treated as a HUBZone for a
period of not less than 8 years,
beginning on the date the Administrator
makes a final determination as to
whether or not to implement the
designations described in subparagraphs
(A) and (B) in accordance with the
results of the decennial census
conducted after the area was initially
designated as a qualified disaster
area.
(5) Qualified hubzone small business concern.--
(A) In general.--A HUBZone small business
concern is ``qualified'', if--
(i) the small business concern has
certified in writing to the
Administrator (or the Administrator
otherwise determines, based on
information submitted to the
Administrator by the small business
concern, or based on certification
procedures, which shall be established
by the Administration by regulation)
that--
(I) it is a HUBZone small
business concern--
(aa) pursuant to
subparagraph (A), (B),
(C), (D), (E), or (F)
of paragraph (3), and
that its principal
office is located in a
HUBZone and not fewer
than 35 percent of its
employees reside in a
HUBZone;
(bb) pursuant to
subparagraph (A), (B),
(C), (D), (E), or (F)
of paragraph (3), that
its principal office is
located within a base
closure area and that
not fewer than 35
percent of its
employees reside in
such base closure area
or in another HUBZone;
or
(cc) pursuant to
paragraph (3)(C), and
not fewer than 35
percent of its
employees engaged in
performing a contract
awarded to the small
business concern on the
basis of a preference
provided under section
31(b) reside within any
Indian reservation
governed by one or more
of the tribal
government owners, or
reside within any
HUBZone adjoining any
such Indian
reservation;
(II) the small business
concern will attempt to
maintain the applicable
employment percentage under
subclause (I) during the
performance of any contract
awarded to the small business
concern on the basis of a
preference provided under
section 31(b); and
(III) with respect to any
subcontract entered into by the
small business concern pursuant
to a contract awarded to the
small business concern under
section 31, the small business
concern will ensure that the
requirements of section 46 are
satisfied; and
(ii) no certification made or
information provided by the small
business concern under clause (i) has
been, in accordance with the procedures
established under section 31(c)(1)--
(I) successfully challenged
by an interested party; or
(II) otherwise determined by
the Administrator to be
materially false.
(B) List of qualified small business
concerns.--The Administrator shall establish
and maintain a list of qualified HUBZone small
business concerns, which list shall, to the
extent practicable--
(i) once the Administrator has made
the certification required by
subparagraph (A)(i) regarding a
qualified HUBZone small business
concern and has determined that
subparagraph (A)(ii) does not apply to
that concern, include the name,
address, and type of business with
respect to each such small business
concern;
(ii) be updated by the Administrator
not less than annually; and
(iii) be provided upon request to any
Federal agency or other entity.
(6) Native american small business concerns.--
(A) Alaska native corporation.--The term
``Alaska Native Corporation'' has the same
meaning as the term ``Native Corporation'' in
section 3 of the Alaska Native Claims
Settlement Act (43 U.S.C. 1602).
(B) Alaska native village.--The term ``Alaska
Native Village'' has the same meaning as the
term ``Native village'' in section 3 of the
Alaska Native Claims Settlement Act (43 U.S.C.
1602).
(C) Indian reservation.--The term ``Indian
reservation''--
(i) has the same meaning as the term
``Indian country'' in section 1151 of
title 18, United States Code, except
that such term does not include--
(I) any lands that are
located within a State in which
a tribe did not exercise
governmental jurisdiction on
the date of the enactment of
this paragraph, unless that
tribe is recognized after that
date of the enactment by either
an Act of Congress or pursuant
to regulations of the Secretary
of the Interior for the
administrative recognition that
an Indian group exists as an
Indian tribe (part 83 of title
25, Code of Federal
Regulations); and
(II) lands taken into trust
or acquired by an Indian tribe
after the date of the enactment
of this paragraph if such lands
are not located within the
external boundaries of an
Indian reservation or former
reservation or are not
contiguous to the lands held in
trust or restricted status on
that date of the enactment; and
(ii) in the State of Oklahoma, means
lands that--
(I) are within the
jurisdictional areas of an
Oklahoma Indian tribe (as
determined by the Secretary of
the Interior); and
(II) are recognized by the
Secretary of the Interior as
eligible for trust land status
under part 151 of title 25,
Code of Federal Regulations (as
in effect on the date of the
enactment of this paragraph).
(7) Agricultural commodity.--The term ``agricultural
commodity'' has the same meaning as in section 102 of
the Agricultural Trade Act of 1978 (7 U.S.C. 5602).
(q) Definitions Relating to Veterans.--In this Act, the
following definitions apply:
(1) Service-disabled veteran.--The term ``service-
disabled veteran'' means a veteran with a disability
that is service-connected (as defined in section
101(16) of title 38, United States Code).
(2) Small business concern owned and controlled by
service-disabled veterans.--The term ``small business
concern owned and controlled by service-disabled
veterans'' means any of the following:
(A) A small business concern--
(i) not less than 51 percent of which
is owned by one or more service-
disabled veterans or, in the case of
any publicly owned business, not less
than 51 percent of the stock (not
including any stock owned by an ESOP)
of which is owned by one or more
service-disabled veterans; and
(ii) the management and daily
business operations of which are
controlled by one or more service-
disabled veterans or, in the case of a
veteran with permanent and severe
disability, the spouse or permanent
caregiver of such veteran.
(B) A small business concern--
(i) not less than 51 percent of which
is owned by one or more service-
disabled veterans with a disability
that is rated by the Secretary of
Veterans Affairs as a permanent and
total disability who are unable to
manage the daily business operations of
such concern; or
(ii) in the case of a publicly owned
business, not less than 51 percent of
the stock (not including any stock
owned by an ESOP) of which is owned by
one or more such veterans.
(C)(i) During the time period described in
clause (ii), a small business concern that was
a small business concern described in
subparagraph (A) or (B) immediately prior to
the death of a service-disabled veteran who was
the owner of the concern, the death of whom
causes the concern to be less than 51 percent
owned by one or more service-disabled veterans,
if--
(I) the surviving spouse of
the deceased veteran acquires
such veteran's ownership
interest in such concern;
(II) such veteran had a
service-connected disability
(as defined in section 101(16)
of title 38, United States
Code) rated as 100 percent
disabling under the laws
administered by the Secretary
of Veterans Affairs or such
veteran died as a result of a
service-connected disability;
and
(III) immediately prior to
the death of such veteran, and
during the period described in
clause (ii), the small business
concern is included in the
database described in section
8127(f) of title 38, United
States Code.
(ii) The time period described in
this clause is the time period
beginning on the date of the veteran's
death and ending on the earlier of--
(I) the date on which the
surviving spouse remarries;
(II) the date on which the
surviving spouse relinquishes
an ownership interest in the
small business concern; or
(III) the date that is 10
years after the date of the
death of the veteran.
(3) Small business concern owned and controlled by
veterans.--The term ``small business concern owned and
controlled by veterans'' means a small business
concern--
(A) not less than 51 percent of which is
owned by one or more veterans or, in the case
of any publicly owned business, not less than
51 percent of the stock of which is owned by
one or more veterans; and
(B) the management and daily business
operations of which are controlled by one or
more veterans.
(4) Veteran.--The term ``veteran'' has the meaning
given the term in section 101(2) of title 38, United
States Code.
(5) Relief from time limitations.--
(A) In general.--Any time limitation on any
qualification, certification, or period of
participation imposed under this Act on any
program that is available to small business
concerns shall be extended for a small business
concern that--
(i) is owned and controlled by--
(I) a veteran who was called
or ordered to active duty under
a provision of law specified in
section 101(a)(13)(B) of title
10, United States Code, on or
after September 11, 2001; or
(II) a service-disabled
veteran who became such a
veteran due to an injury or
illness incurred or aggravated
in the active military, naval,
or air service during a period
of active duty pursuant to a
call or order to active duty
under a provision of law
referred to in subclause (I) on
or after September 11, 2001;
and
(ii) was subject to the time
limitation during such period of active
duty.
(B) Duration.--Upon submission of proper
documentation to the Administrator, the
extension of a time limitation under
subparagraph (A) shall be equal to the period
of time that such veteran who owned or
controlled such a concern was on active duty as
described in that subparagraph.
(C) Exception for programs subject to federal
credit reform act of 1990.--The provisions of
subparagraphs (A) and (B) shall not apply to
any programs subject to the Federal Credit
Reform Act of 1990 (2 U.S.C. 661 et seq.).
(6) ESOP.--The term ``ESOP'' has the meaning given
the term ``employee stock ownership plan'' in section
4975(e)(7) of the Internal Revenue Code of 1986 (26
U.S.C. 4975(e)(7)).
(7) Surviving spouse.--The term ``surviving spouse''
has the meaning given such term in section 101(3) of
title 38, United States Code.
(r) Definitions Relating to Small Business Lending
Companies.--As used in section 23 of this Act:
(1) Small business lending company.--The term ``small
business lending company'' means a business concern
that is authorized by the Administrator to make loans
pursuant to section 7(a) and whose lending activities
are not subject to regulation by any Federal or State
regulatory agency.
(2) Non-federally regulated lender.--The term ``non-
Federally regulated lender'' means a business concern
if--
(A) such concern is authorized by the
Administrator to make loans under section 7;
(B) such concern is subject to regulation by
a State; and
(C) the lending activities of such concern
are not regulated by any Federal banking
authority.
(s) Major Disaster.--In this Act, the term ``major disaster''
has the meaning given that term in section 102 of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5122).
(t) Small Business Development Center.--In this Act, the term
``small business development center'' means a small business
development center described in section 21.
(u) Region of the Administration.--In this Act, the term
``region of the Administration'' means the geographic area
served by a regional office of the Administration established
under section 4(a).
(v) Multiple Award Contract.--In this Act, the term
``multiple award contract'' means--
(1) a multiple award task order contract or delivery
order contract that is entered into under the authority
of sections 303H through 303K of the Federal Property
and Administrative Services Act of 1949 (41 U.S.C. 253h
through 253k); and
(2) any other indefinite delivery, indefinite
quantity contract that is entered into by the head of a
Federal agency with 2 or more sources pursuant to the
same solicitation.
(w) Presumption.--
(1) In general.--In every contract, subcontract,
cooperative agreement, cooperative research and
development agreement, or grant which is set aside,
reserved, or otherwise classified as intended for award
to small business concerns, there shall be a
presumption of loss to the United States based on the
total amount expended on the contract, subcontract,
cooperative agreement, cooperative research and
development agreement, or grant whenever it is
established that a business concern other than a small
business concern willfully sought and received the
award by misrepresentation.
(2) Deemed certifications.--The following actions
shall be deemed affirmative, willful, and intentional
certifications of small business size and status:
(A) Submission of a bid or proposal for a
Federal grant, contract, subcontract,
cooperative agreement, or cooperative research
and development agreement reserved, set aside,
or otherwise classified as intended for award
to small business concerns.
(B) Submission of a bid or proposal for a
Federal grant, contract, subcontract,
cooperative agreement, or cooperative research
and development agreement which in any way
encourages a Federal agency to classify the bid
or proposal, if awarded, as an award to a small
business concern.
(C) Registration on any Federal electronic
database for the purpose of being considered
for award of a Federal grant, contract,
subcontract, cooperative agreement, or
cooperative research agreement, as a small
business concern.
(3) Certification by signature of responsible
official.--
(A) In general.--Each solicitation, bid, or
application for a Federal contract,
subcontract, or grant shall contain a
certification concerning the small business
size and status of a business concern seeking
the Federal contract, subcontract, or grant.
(B) Content of certifications.--A
certification that a business concern qualifies
as a small business concern of the exact size
and status claimed by the business concern for
purposes of bidding on a Federal contract or
subcontract, or applying for a Federal grant,
shall contain the signature of an authorized
official on the same page on which the
certification is contained.
(4) Regulations.--The Administrator shall promulgate
regulations to provide adequate protections to
individuals and business concerns from liability under
this subsection in cases of unintentional errors,
technical malfunctions, and other similar situations.
(x) Annual Certification.--
(1) In general.--Each business certified as a small
business concern under this Act shall annually certify
its small business size and, if appropriate, its small
business status, by means of a confirming entry on the
Online Representations and Certifications Application
database of the Administration, or any successor
thereto.
(2) Regulations.--Not later than 1 year after the
date of enactment of this subsection, the
Administrator, in consultation with the Inspector
General and the Chief Counsel for Advocacy of the
Administration, shall promulgate regulations to ensure
that--
(A) no business concern continues to be
certified as a small business concern on the
Online Representations and Certifications
Application database of the Administration, or
any successor thereto, without fulfilling the
requirements for annual certification under
this subsection; and
(B) the requirements of this subsection are
implemented in a manner presenting the least
possible regulatory burden on small business
concerns.
(y) Policy on Prosecutions of Small Business Size and Status
Fraud.--Not later than 1 year after the date of enactment of
this subsection, the Administrator, in consultation with the
Attorney General, shall issue a Government-wide policy on
prosecution of small business size and status fraud, which
shall direct Federal agencies to appropriately publicize the
policy.
(z) Aquaculture Business Disaster Assistance.--Subject to
section 18(a) and notwithstanding section 18(b)(1), the
Administrator may provide disaster assistance under section
7(b)(2) to aquaculture enterprises that are small businesses.
(aa) Venture Capital Operating Company.--In this Act, the
term ``venture capital operating company'' means an entity
described in clause (i), (v), or (vi) of section 121.103(b)(5)
of title 13, Code of Federal Regulations (or any successor
thereto).
(bb) Hedge Fund.--In this Act, the term ``hedge fund'' has
the meaning given that term in section 13(h)(2) of the Bank
Holding Company Act of 1956 (12 U.S.C. 1851(h)(2)).
(cc) Private Equity Firm.--In this Act, the term ``private
equity firm'' has the meaning given the term ``private equity
fund'' in section 13(h)(2) of the Bank Holding Company Act of
1956 (12 U.S.C. 1851(h)(2)).
(dd) Definitions Pertaining to Subcontracting.--In this Act:
(1) Subcontract.--The term ``subcontract'' means a
legally binding agreement between a contractor that is
already under contract to another party to perform
work, and a third party, hereinafter referred to as the
subcontractor, for the subcontractor to perform a part,
or all, of the work that the contractor has undertaken.
(2) First tier subcontractor.--The term ``first tier
subcontractor'' means a subcontractor who has a
subcontract directly with the prime contractor.
(3) At any tier.--The term ``at any tier'' means any
subcontractor other than a subcontractor who is a first
tier subcontractor.
(ee) Puerto Rico Business.--In this Act, the term ``Puerto
Rico business'' means a small business concern that has its
principal office located in the Commonwealth of Puerto Rico.
* * * * * * *
Sec. 16. (a) Whoever makes any statement knowing it to be
false, or whoever willfully overvalues any security, for the
purpose of obtaining for himself or for any applicant any loan,
or extension thereof by renewal, deferment of action, or
otherwise, or the acceptance, release, or substitution of
security therefor, or for the purpose of influencing in any way
the action of the Administration, or for the purpose of
obtaining money, property, or anything of value, under this
Act, shall be punished by a fine of not more than $5,000 or by
imprisonment for not more than two years, or both.
(b) Whoever, being connected in any capacity with the
Administration, (1) embezzles, abstracts, purloins, or
willfully misapplies any moneys, funds, securities, or other
things of value, whether belonging to it or pledged or
otherwise entrusted to it, or (2) with intent to defrand the
Administration or any other body politic or corporate, or any
individual, or to deceive any officer, auditor, or examiner of
the Administration, makes any false entry in any book, report,
or statement of or to the Administration, or, without being
duly authorized, draws any order or issues, puts forth, or
assigns any note, debenture, bond, or other obligation, or
draft, bill of exchange, mortgage, judgment, or decree thereof,
or (3) with intent to defraud participates or shares in or
receives directly or indirectly any money, profit, property, or
benefit through any transaction, loan, commission, contract, or
any other part of the Administration, or (4) gives any
unauthorized information concerning any future action or plan
of the Administration which might affect the value of
securities, or, having such knowledge, invests or speculates,
directly or indirectly, in the securities or property of any
company or corporation receiving loans or other assistance from
the Administration, shall be punished by a fine of not more
than $10,000 or by imprisonment for not more than five years,
or both.
(c) Whoever, with intent to defraud, knowingly conceals,
removes, disposes of, or converts to his own use or that of
another, any property mortgaged or pledged to, or held by, the
Administration, shall be fined not more than $5,000 or
imprisoned not more than five years, or both; but if the value
of such property does not exceed $100, he shall be fined not
more than $1,000 or imprisoned not more than one year, or both.
(d)(1) Whoever misrepresents the status of any concern or
person as a ``small business concern''[,, a], a ``small
business concern owned and controlled by service-disabled
veterans'', a ``small business concern owned and controlled by
veterans'', a ``qualified HUBZone small business concern'', a
``small business concern owned and controlled by socially and
economically disadvantaged individuals'', or a ``small business
concern owned and controlled by women'', in order to obtain for
oneself or another any--
(A) prime contract to be awarded pursuant to section
[9, 15, or 31] 8, 9, 15, 31, 36, or 36A;
(B) subcontract to be awarded pursuant to section
8(a);
(C) subcontract that is to be included as part or all
of a goal contained in a subcontracting plan required
pursuant to section 8(d); or
(D) prime or subcontract to be awarded as a result,
or in furtherance, of any other provision of Federal
law that specifically references section 8(d) for a
definition of program eligibility, shall be subject to
the penalties and remedies described in paragraph (2).
(2) Any person who violates paragraph (1) shall--
(A) be punished by a fine of not more than $500,000
or by imprisonment for not more than 10 years, or both;
(B) be subject to the administrative remedies
prescribed by the Program Fraud Civil Remedies Act of
1986 (31 U.S.C. 3801-3812);
(C) be subject to suspension and debarment as
specified in subpart 9.4 of title 48, Code of Federal
Regulations (or any successor regulation); and
(D) be ineligible for participation in any program or
activity conducted under the authority of this Act or
the Small Business Investment Act of 1958 (15 U.S.C.
661 et seq.) for a period not to exceed 3 years.
(3) Limitation on liability.--This subsection shall
not apply to any conduct in violation of subsection (a)
if the defendant acted in good faith reliance on a
written advisory opinion from a Small Business
Development Center (as defined in this Act), or an
entity participating in the Procurement Technical
Assistance Cooperative Agreement Program defined in
chapter 142 of title 10, United States Code; however
nothing in this Act shall obligate either entity to
provide such a letter nor shall the provision of such a
letter in any way render the providing entity liable to
the business concern should the Administrator later
determine that the concern is not a small business
concern. Upon issuance of an advisory opinion under
this paragraph, the entity issuing the advisory opinion
shall remit a copy of the opinion to the General
Counsel of the Administration, who may reject the
advisory opinion. If the General Counsel of the
Administration rejects the advisory opinion, the
Administration shall notify the entity issuing the
advisory opinion and the recipient of the opinion,
after which time the business concern may not rely upon
the opinion.
(e) Any representation of the status of any concern or person
as a ``small business concern''[,, a], a ``small business
concern owned and controlled by service-disabled veterans'', a
``small business concern owned and controlled by veterans'', a
``HUBZone small business concern'', a ``small business concern
owned and controlled by socially and economically disadvantaged
individuals'', or a ``small business concern owned and
controlled by women'' in order to obtain any prime contract or
subcontract enumerated in subsection (d) of this section shall
be in writing.
(f) Whoever falsely certifies past compliance with the
requirements of section 7(j)(10)(I) of this Act shall be
subject to the penalties prescribed in subsection (d).
(g) Subcontracting Limitations.--
(1) In general.--Whoever violates a requirement
established under section 46 shall be subject to the
penalties prescribed in subsection (d), except that,
for an entity that exceeded a limitation on
subcontracting under such section, the fine described
in subsection (d)(2)(A) shall be treated as the greater
of--
(A) $500,000; or
(B) the dollar amount expended, in excess of
permitted levels, by the entity on
subcontractors.
(2) Monitoring.--Not later than 1 year after the date
of enactment of this subsection, the Administrator
shall take such actions as are necessary to ensure that
an existing Federal subcontracting reporting system is
modified to notify the Administrator, the appropriate
Director of the Office of Small and Disadvantaged
Business Utilization, and the appropriate contracting
officer if a requirement established under section 46
is violated.
* * * * * * *
SEC. 36. PROCUREMENT PROGRAM FOR SMALL BUSINESS CONCERNS OWNED AND
CONTROLLED BY SERVICE-DISABLED VETERANS.
(a) Contracting Officer Defined.--For purposes of this
section, the term ``contracting officer'' has the meaning given
such term in section 2101 of title 41, United States Code.
(b) Certification of Small Business Concerns Owned and
Controlled by Service-disabled Veterans.--With respect to a
procurement program or preference established under this Act
that applies to prime contractors, the Administrator shall--
(1) certify the status of the concern as a ``small
business concern owned and controlled by service-
disabled veterans''; and
(2) require the periodic recertification of such
status.
[(a)] (c) Sole Source Contracts.--In accordance with this
section, a contracting officer may award a sole source contract
to any small business concern owned and controlled by service-
disabled veterans if--
(1) such concern is determined to be a responsible
contractor with respect to performance of such contract
opportunity and the contracting officer does not have a
reasonable expectation that 2 or more small business
concerns owned and controlled by service-disabled
veterans will submit offers for the contracting
opportunity;
(2) the anticipated award price of the contract
(including options) will not exceed--
(A) $5,000,000, in the case of a contract
opportunity assigned a standard industrial
classification code for manufacturing; or
(B) $3,000,000, in the case of any other
contract opportunity; and
(3) in the estimation of the contracting officer, the
contract award can be made at a fair and reasonable
price.
[(b)] (d) Restricted Competition.--In accordance with this
section, a contracting officer may award contracts on the basis
of competition restricted to small business concerns owned and
controlled by service-disabled veterans if the contracting
officer has a reasonable expectation that not less than 2 small
business concerns owned and controlled by service-disabled
veterans will submit offers [and that the award can be made at
a fair market price], that the award can be made at a fair
market price, and if each concern is certified by the
Administrator as a small business concern owned and controlled
by service-disabled veterans.
[(c)] (e) Relationship to Other Contracting Preferences.--A
procurement may not be made from a source on the basis of a
preference provided under subsection (a) or (b) if the
procurement would otherwise be made from a different source
under section 4124 or 4125 of title 18, United States Code, or
the Javits-Wagner-O'Day Act (41 U.S.C. 46 et seq.).
[(d) Enforcement; Penalties.--Rules similar to the rules of
paragraphs (5) and (6) of section 8(m) shall apply for purposes
of this section.
[(e) Contracting Officer.--For purposes of this section, the
term ``contracting officer'' has the meaning given such term in
section 27(f)(5) of the Office of Federal Procurement Policy
Act (41 U.S.C. 423(f)(5)).]
(f) Database of Veteran-Owned Businesses.--(1) Subject to
paragraphs (2) through (6), the Administrator shall maintain a
database of small business concerns owned and controlled by
veterans, small business concerns owned and controlled by
service-disabled veterans, and the veteran owners of such
business concerns.
(2)(A) To be eligible for inclusion in the database, such a
veteran shall submit to the Administrator such information as
the Administrator may require with respect to the small
business concern or the veteran. Application for inclusion in
the database shall constitute permission under section 552a of
title 5 (commonly referred to as the Privacy Act) for the
Administrator to obtain from the Administrator of Veterans
Affairs such personal information maintained by the Secretary
as may be necessary to verify the information contained in the
application.
(B) For purposes of this subsection--
(i) the Secretary of Veterans Affairs shall--
(I) verify an individual's status as a
veteran or a service-disabled veteran; and
(II) establish a system to permit the
Administrator to access, but not alter, such
verification; and
(ii) the Administrator shall verify--
(I) the status of a business concern as a
small business concern; and
(II) the ownership and control of such
business concern.
(C) The Administrator may not certify a concern under
subsection (b) or section 36A if the Secretary of Veterans
Affairs cannot provide the verification described under
subparagraph (B)(i)(I).
(3) Information maintained in the database shall be submitted
on a voluntary basis by such veterans.
(4) The Administrator shall make the database available to
all Federal departments and agencies and shall notify each such
department and agency of the availability of the database.
(5) If the Adminissur determines that the public
dissemination of certain types of information maintained in the
database is inappropriate, the Secretary the Administrator
shall take such steps as are necessary to maintain such types
of information in a secure and confidential manner.
(6)(A) If a small business concern is not included in the
database because the Administrator does not certify the status
of the concern as a small business concern owned and controlled
by veterans (under section 36A) or a small business concern
owned and controlled by service-disabled veterans (under
section 36(g)), the concern may appeal the denial of
certification to the Office of Hearings and Appeals of the
Small Business Administration (as established under section
5(i) of the Small Business Act). The decision of the Office of
Hearings and Appeals shall be considered a final agency action.
(B)(i) If an interested party challenges the inclusion in the
database of a small business concern owned and controlled by
veterans or a small business concern owned and controlled by
service-disabled veteran based on the status of the concern as
a small business concern or the ownership or control of the
concern, the challenge shall be heard by the Office of Hearings
and Appeals of the Small Business Administration as described
in subparagraph (A). The decision of the Office of Hearings and
Appeals shall be considered final agency action.
(ii) In this subparagraph, the term ``interested party''
means--
(I) the Secretary of Veterans Affairs of the
Administrator; or
(II) in the case of a small business concern that is
awarded a contract, the applicable contracting officer
or another small business concern that submitted an
offer for the contract that was awarded to the small
business concern that is the subject of a challenge
made under clause (i).
(g) Certification Requirement.--Notwithstanding subsection
(c), a contracting officer may only award a sole source
contract to a small business concern owned and controlled by
service-disabled veterans or a contract on the basis of
competition restricted to small business concerns owned and
controlled by service-disabled veterans if such a concern is
certified by the Administrator as a small business concern
owned and controlled by service-disabled veterans.
(h) Enforcement; Penalties.--
(1) Verification of eligibility.--In carrying out
this section, the Administrator shall establish
procedures relating to--
(A) the filing, investigation, and
disposition by the Administration of any
challenge to the eligibility of a small
business concern to receive assistance under
this section (including a challenge, filed by
an interested party, relating to the veracity
of a certification made or information provided
to the Administration by a small business
concern under subsection (b)); and
(B) verification by the Administrator of the
accuracy of any certification made or
information provided to the Administration by a
small business concern under subsection (b).
(2) Examinations.--
(A) Examination of applicants.--The
procedures established under paragraph (1)
shall provide for a program of examinations by
the Administrator of any small business concern
making a certification or providing information
to the Administrator under subsection (b), to
determine the veracity of any statements or
information provided as part of such
certification or otherwise provided under
subsection (b).
(B) Examination of certified concerns.--The
procedures established under paragraph (1)
shall provide for the examination of risk-based
samples of small business concerns certified
under subsection (b), or of any small business
concern that the Administrator believes poses a
particular risk or with respect to which the
Administrator receives specific and credible
information alleging that the small business
concern no longer meets eligibility
requirements to be certified as a small
business concern owned and controlled by
service-disabled veterans.
(3) Penalties.--In addition to the penalties
described in section 16(d), any small business concern
that is determined by the Administrator to have
misrepresented the status of that concern as a small
business concern owned and controlled by service-
disabled veterans for purposes of subsection (b), shall
be subject to--
(A) section 1001 of title 18, United States
Code;
(B) sections 3729 through 3733 of title 31,
United States Code; and
(C) section 8127(g) of title 38, United
States Code.
(i) Provision of Data.--Upon the request of the
Administrator, the head of any Federal department or agency
shall promptly provide to the Administrator such information as
the Administrator determines to be necessary to carry out
subsection (b) or to be able to certify the status of the
concern as a small business concern owned and controlled by
veterans under section 36A.
SEC. 36A. CERTIFICATION OF SMALL BUSINESS CONCERNS OWNED AND CONTROLLED
BY VETERANS.
(a) In General.--With respect to the program established
under section 8127 of title 38, United States Code, the
Administrator shall--
(1) certify the status of the concern as a ``small
business concern owned and controlled by veterans'';
and
(2) require the periodic recertification of such
status.
(b) Enforcement; Penalties.--
(1) Verification of eligibility.--In carrying out
this section, the Administrator shall establish
procedures relating to--
(A) the filing, investigation, and
disposition by the Administration of any
challenge to the eligibility of a small
business concern to receive assistance under
this section (including a challenge, filed by
an interested party, relating to the veracity
of a certification made or information provided
to the Administration by a small business
concern under subsection (a)); and
(B) verification by the Administrator of the
accuracy of any certification made or
information provided to the Administration by a
small business concern under subsection (a).
(2) Examination of applicants.--The procedures
established under paragraph (1) shall provide for a
program of examinations by the Administrator of any
small business concern making a certification or
providing information to the Administrator under
subsection (a), to determine the veracity of any
statements or information provided as part of such
certification or otherwise provided under subsection
(a).
(3) Penalties.--In addition to the penalties
described in section 16(d), any small business concern
that is determined by the Administrator to have
misrepresented the status of that concern as a small
business concern owned and controlled by veterans for
purposes of subsection (a), shall be subject to--
(A) section 1001 of title 18, United States
Code;
(B) sections 3729 through 3733 of title 31,
United States Code; and
(C) section 8127(g) of title 38, United
States Code.
* * * * * * *
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