H.R. 1615 — what changed
Verification Alignment and Service-disabled Business Adjustment Act
From Introduced in House to Reported in House. 7 sections amended and 1 removed between Introduced in House and Reported in House.
Sec. 3 Amendment to and transfer of veteran-owned and service-disabled veteran-owned business database
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—
in subsection (e)—
by striking “the Secretary” and inserting “the Administrator”; and
by striking “subsection (f)” and inserting “section 36 of the Small Business Act”;
in subsection (f)—
changed
by striking “the Secretary” each place such term appears, other than under paragraph (7) and in the last place such term appears under paragraph (2)(A), and inserting “the Administrator”;
added
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”;
renumbered
was (2)(4)(3)
in paragraph (2)—
renumbered
was (2)(4)(3)(2)
in subparagraph (A), by striking “to access” and inserting “to obtain from the Secretary of Veterans Affairs”; and
renumbered
was (2)(4)(3)(3)
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.
added “(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).”
removed
“(C) If the Administrator receives an application from an individual with respect to a business concern for inclusion in the database, but the individual’s status as a veteran or service-disabled veteran, the business concern’s status as a small business concern, or the ownership and control of such business concern cannot be verified under subparagraph (B), the Administrator may not include the business concern in the database maintained by the Administrator.”
renumbered
was (2)(4)(4)
by striking paragraphs (4) and (7);
added
by redesignating paragraphs (5) and (6) as paragraphs (4) and (5), respectively, and redesignating paragraph (8) as paragraph (6);
added
in paragraph (4), as so redesignated, by striking “The Secretary” and inserting “The Administrator”; and
removed
by redesignating paragraphs (5) and (6) as paragraphs (4) and (5), respectively, and redesignating paragraph (8) as paragraph (6); and
renumbered
was (2)(4)(6)
in paragraph (6), as so redesignated—
added
in subparagraph (A)—
added
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
added
by striking “verification” and inserting “certification”;
added
in subparagraph (B)—
added
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
added
in clause (ii)—
removed
in subparagraph (B)(ii)—
renumbered
was (2)(4)(6)(2)(2)
by amending subclause (I) to read as follows:
“(I) the Secretary of Veterans Affairs or the Administrator; or”
renumbered
was (2)(4)(6)(2)(3)
in subclause (II), by striking “the contracting officer of the Department” and inserting “the applicable contracting officer”; and
renumbered
was (2)(4)(6)(3)
by striking subparagraph (C);
by redesignating subsection (k) (relating to definitions) as subsection (l);
by inserting after subsection (j) (relating to annual reports) the following:
changed
“(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. 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.”
changed
in subsection (k) (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.”
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).
Conforming amendments— The following amendments shall take effect on the transfer date:
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”.
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
changed
Small Business Act—Administration access to database before the transfer date— Effective on During the period between the date of the enactment of this Act and the transfer date, section 36(c) the Secretary of Veterans Affairs shall provide the Administrator of the Small Business Act, as redesignated by Administration with access to the contents of the database described under section 6(a)(2), is amended—8127(f) of title 38, United States Code.
removed
by striking the first dollar figure and inserting “$7,000,000”; and
removed
by striking the second dollar figure and inserting “$5,000,000”.
changed
Title 38—Rule of construction— Effective on Nothing in this Act or the transfer date, paragraph (2) of section 8127(c) of title 38, United States Code, is amended to read as follows:amendments made by this Act may be construed—
added
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
added
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).
added
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.
removed
“(2) the anticipated award price of the contract will not exceed the amount described under section 36(c) of the Small Business Act; and”
Sec. 5 Procurement program for small business concerns owned and controlled by service-disabled veterans
changed
Administration access to database before the transfer date—Procurement program for small business concerns owned and controlled by service-Disabled veterans— 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 Section 36 of the Small Business Administration with access to the contents of the database described under section 8127(f) of title 38, United States Code.Act (15 U.S.C. 657f) is amended—
added
by striking subsections (d) and (e);
added
by redesignating subsections (a), (b), and (c) as subsections (c), (d), and (e) respectively;
added
by inserting before subsection (c), as so redesignated, the following:
added “(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.
added “(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—
added “(1) certify the status of the concern as a “small business concern owned and controlled by service-disabled veterans”; and
added “(2) require the periodic recertification of such status.”
added
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
added
by adding at the end the following:
added “(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.
added “(h) Enforcement; penalties
added “(1) Verification of eligibility—In carrying out this section, the Administrator shall establish procedures relating to—
added “(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
added “(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).
added “(2) Examinations
added “(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).
added “(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.
added “(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—
added “(A) section 1001 of title 18, United States Code;
added “(B) sections 3729 through 3733 of title 31, United States Code; and
added “(C) section 8127(g) of title 38, United States Code.
added “(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.”
changed
Rule of construction—Penalties for misrepresentation— Nothing in this Act or the amendments made by this Act may be construed as prohibiting the Administrator Section 16 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.Act (15 U.S.C. 645) is amended—
added
in subsection (d)(1)—
added
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
added
in paragraph (A), by striking “9, 15, or 31” and inserting “8, 9, 15, 31, 36, or 36A”; and
added
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”.
removed
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. 6 Certification for small business concerns owned and controlled by veterans
added The Small Business Act (15 U.S.C. 631 et seq.) is amended by inserting after section 36 the following new section:
added “36A. Certification of small business concerns owned and controlled by veterans
added “(a) In general—With respect to the program established under section 8127 of title 38, United States Code, the Administrator shall—
added “(1) certify the status of the concern as a “small business concern owned and controlled by veterans”; and
added “(2) require the periodic recertification of such status.
added “(b) Enforcement; penalties
added “(1) Verification of eligibility—In carrying out this section, the Administrator shall establish procedures relating to—
added “(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
added “(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).
added “(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).
added “(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—
added “(A) section 1001 of title 18, United States Code;
added “(B) sections 3729 through 3733 of title 31, United States Code; and
added “(C) section 8127(g) of title 38, United States Code.”
removed
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—
removed
by striking subsections (d) and (e);
removed
by redesignating subsections (a), (b), and (c) as subsections (c), (d), and (e) respectively;
removed
by inserting before subsection (c), as so redesignated, the following:
removed
“(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.
removed
“(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 or any other Federal law applicable to small business concerns owned and controlled by service-disabled veterans, the Administrator shall—
removed
“(1) certify the status of the concern as a “small business concern owned and controlled by service-disabled veterans”; and
removed
“(2) require the periodic recertification of such status.”
removed
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
removed
by adding at the end the following:
removed
“(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.
removed
“(h) Enforcement; penalties
removed
“(1) Verification of eligibility—In carrying out this section, the Administrator shall establish procedures relating to—
removed
“(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
removed
“(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).
removed
“(2) Examinations
removed
“(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).
removed
“(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.
removed
“(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—
removed
“(A) section 1001 of title 18, United States Code;
removed
“(B) sections 3729 through 3733 of title 31, United States Code; and
removed
“(C) section 8127(g) of title 38, United States Code.
removed
“(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.”
removed
Penalties for misrepresentation— Section 16 of the Small Business Act (15 U.S.C. 645) is amended—
removed
in subsection (d)(1)—
removed
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
removed
in paragraph (A), by striking “9, 15, or 31” and inserting “8, 9, 15, 31, 36, or 36A”; and
removed
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. 7 Status of self-certified small business concerns owned and controlled by service-disabled veterans
added
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—
added
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
added
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.
added
Non-Applicability to Department of Veterans Affairs— Subsection (a) shall not apply to participation in contracts (including subcontracts) with the Department of Veterans Affairs.
added
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—
added
the date of the enactment of this Act; and
added
the date on which an extension described under section 2 is approved.
removed
The Small Business Act (15 U.S.C. 631 et seq.) is amended by inserting after section 36 the following new section:
removed
“36A. Certification of small business concerns owned and controlled by veterans
removed
“(a) In general—With respect to the program established under section 8127 of title 38, United States Code, the Administrator shall—
removed
“(1) certify the status of the concern as a “small business concern owned and controlled by veterans”; and
removed
“(2) require the periodic recertification of such status.
removed
“(b) Enforcement; penalties
removed
“(1) Verification of eligibility—In carrying out this section, the Administrator shall establish procedures relating to—
removed
“(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
removed
“(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).
removed
“(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).
removed
“(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—
removed
“(A) section 1001 of title 18, United States Code;
removed
“(B) sections 3729 through 3733 of title 31, United States Code; and
removed
“(C) section 8127(g) of title 38, United States Code.”
Sec. 8 Transfer of the Center for Verification and Evaluation of the Department of Veterans Affairs to the Small Business Administration
changed
In general—Abolishment— Notwithstanding any other provision of law, any small business concern that self-certified as a small business concern owned and controlled by veterans or a small business concern owned The Center for Verification and controlled by service-disabled veterans shall—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.
removed
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
removed
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.
changed
Non-Applicability to Department Transfer of Veterans Affairs—functions— Subsection (a) shall not apply to participation in contracts (including subcontracts) with All functions that, immediately before the Department effective date of Veterans Affairs.this section, were functions of the Center for Verification and Evaluation shall—
added
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
added
on the transfer date, be functions of the Small Business Administration.
changed
Notice—Transfer of assets— The Administrator shall notify any small business concern that self-certified as a small business concern owned and controlled by veterans or a small business concern owned and controlled by service-disabled veterans about the requirements So much of the Verification Alignment and Service-disabled Business Adjustment Act, including the transfer date personnel, property, records, and any extension unexpended balances of such transfer date made pursuant appropriations, allocations, and other funds employed, used, held, available, or to be made available in connection with a function transferred under this section 2, and make shall be available to the Small Business Administration at such notice publicly available, on—time or times as the President directs for use in connection with the functions transferred.
added
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.
removed
the date of the enactment of this Act; and
removed
the date on which an extension described under section 2 is approved.
Sec. 9 Report
added 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—
removed
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.
changed
Transfer of functions— All functions that, immediately before whether and how the effective date of this section, were functions verification database and operations of the Center for Verification and Evaluation shall—of the Department of Veterans Affairs will be incorporated into the existing certification database of the Small Business Administration;
removed
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
removed
on the transfer date, be functions of the Small Business Administration.
changed
Transfer of assets— So much of projections for the personnel, property, records, and unexpended balances of appropriations, allocations, numbers 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 timing, in connection with the functions transferred.terms of fiscal year, of—
added
already verified concerns that will come up for recertification; and
added
self-certified concerns that are expected to apply for certification;
changed
References— Any reference in any other Federal law, Executive order, rule, regulation, or delegation of authority, or any document an explanation of or pertaining how outreach to a function of veteran service organizations, the Center for Verification service-disabled veteran-owned and Evaluation that is transferred under this section is deemed, after the transfer date, to refer to the Small Business Administration.veteran-owned small business community, and other stakeholders will be conducted; and
added
other pertinent information determined by the Administrator and the Secretary.
Sec. 10 Report
removed
removed
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—
removed
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;
removed
projections for the numbers and timing, in terms of fiscal year, of—
removed
already verified concerns that will come up for recertification; and
removed
self-certified concerns that are expected to apply for certification;
removed
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
removed
other pertinent information determined by the Administrator and the Secretary.