[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3945 Introduced in House (IH)]
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114th CONGRESS
1st Session
H. R. 3945
To amend the Small Business Act and title 38, United States Code, to
improve contracting opportunities for certain veteran-owned small
businesses, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 5, 2015
Mr. Coffman (for himself, Mr. Chabot, Mr. Miller of Florida, Ms.
Velazquez, Mr. Hanna, Mr. Connolly, and Mr. Moulton) introduced the
following bill; which was referred to the Committee on Veterans'
Affairs, and in addition to the Committee on Small Business, for a
period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To amend the Small Business Act and title 38, United States Code, to
improve contracting opportunities for certain veteran-owned small
businesses, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Improving Opportunities for Service-
Disabled Veteran-Owned Small Businesses Act of 2015''.
SEC. 2. IMPROVING CONTRACTING OPPORTUNITIES FOR CERTAIN VETERAN-OWNED
SMALL BUSINESSES.
(a) Definition of Small Business Concern Consolidated.--Section
3(q) of the Small Business Act (15 U.S.C. 632(q)) is amended--
(1) by amending paragraph (2) to read as follows:
``(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.''; and
(2) by adding at the end the following new paragraphs:
``(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.''.
(b) Veterans Affairs Definition of Small Business Concern
Consolidated.--
(1) In general.--Section 8127 of title 38, United States
Code, is amended--
(A) by striking subsection (h) and redesignating
subsections (i) through (l) as subsections (h) through
(k), respectively; and
(B) in subsection (k), as so redesignated--
(i) by amending paragraph (2) to read as
follows:
``(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)).''; and
(ii) by adding at the end the following new
paragraph:
``(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)).''.
(2) Conforming amendments.--Such section is further
amended--
(A) in subsection (b), by inserting ``or a small
business concern owned and controlled by veterans with
service-connected disabilities'' after ``a small
business concern owned and controlled by veterans'';
(B) in subsection (c), by inserting ``or a small
business concern owned and controlled by veterans with
service-connected disabilities'' after ``a small
business concern owned and controlled by veterans'';
(C) in subsection (d) by inserting ``or small
business concerns owned and controlled by veterans with
service-connected disabilities'' after ``small business
concerns owned and controlled by veterans'' both places
it appears; and
(D) in subsection (f)(1), by inserting ``, small
business concerns owned and controlled by veterans with
service-connected disabilities,'' after ``small
business concerns owned and controlled by veterans''.
(c) Technical Correction.--Section 8(d)(3) of the Small Business
Act (15 U.S.C. 637(d)(3)), is amended by adding at the end the
following new subparagraph:
``(H) In this contract, the term `small business concern
owned and controlled by service-disabled veterans' has the
meaning given that term in section 3(q).''.
SEC. 3. REGULATIONS RELATING TO DATABASE OF THE SECRETARY OF VETERANS
AFFAIRS.
(a) Requirement To Use Certain Small Business Administration
Regulations.--Section 8127(f)(4) of title 38, United States Code, is
amended by striking ``verified'' and inserting ``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,''.
(b) Prohibition on Secretary of Veterans Affairs Issuing Certain
Regulations.--Section 8127(f) of title 38, United States Code, is
amended by adding at the end the following new paragraph:
``(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.''.
(c) Delayed Effective Date.--The amendments made by this section
and section 2 shall take effect on the date on which the Administrator
of the Small Business Administration and the Secretary of Veterans
Affairs jointly issue regulations implementing such sections. Such date
shall be not later than 18 months after the date of enactment of this
Act.
SEC. 4. APPEALS OF INCLUSION IN DATABASE.
(a) In General.--Section 8127(f) of title 38, United States Code,
as amended by section 3, is further amended by adding at the end the
following new paragraph:
``(8)(A) If the Secretary does not verify a concern for inclusion
in the database under this subsection based on 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 part 134 of title 13, Code of Federal Regulations, or
any successor administrative appellate entity created with the Small
Business Administration). 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; and
``(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 submitted an offer 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 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.''.
(b) Effective Date.--Paragraph (8) of subsection (f) of title 38,
United States Code, as added by subsection (a), shall apply with
respect to a verification decision made by the Secretary of Veterans
Affairs on or after the date of the enactment of this Act.
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