110 HR 3867 RH: Small Business Contracting
U.S. House of Representatives
2007-10-17
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title; table of
contents
(a)This Act may be cited
as the Small Business Contracting
Program Improvements Act
.
(b)The table of
contents for this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—Ensuring government contract opportunities for small
business concerns owned and controlled by service-disabled veterans
Sec. 101. Expanding procurement opportunities.
Sec. 102. Penalties for misrepresentation.
Sec. 103. Implementation of Executive Order 13360.
TITLE II—Protecting taxpayers and ensuring program
consistency
Sec. 201. Requiring business integrity of small business
concerns.
Sec. 202. Establishment of goals.
Sec. 203. Small business concern subcontracting
policy.
Sec. 204. Increased size of available contracts.
TITLE III—Expanding opportunities for women
entrepreneurs
Sec. 301. Implement the women’s procurement
program.
TITLE IV—Strengthening Community Development
Sec. 401. On-site verification.
Sec. 402. Limitation on construction contracts.
Sec. 403. Allowing small business concerns that are not HUBZone
program participants to protest HUBZone awards.
TITLE V—Modernizing the 8(a)
program
Sec. 501. Modernizing the section
8(a) program net worth
limitations.
Sec. 502. Extension of the section
8(a) program term.
Sec. 503. Report on implementation.
Sec. 504. Allowing small business concerns that are not section
8(a) program participants to protest section
8(a) awards.
TITLE VI—Other matters
Sec. 601. Affiliation for certain franchises.
<enum>I</enum><header>Ensuring
government contract opportunities for small business concerns owned and
controlled by service-disabled veterans</header>
<section id="H58D85986469F4E078075286951C1D18C"><enum>101.</enum><header>Expanding
procurement opportunities</header>
<subsection id="HBE10F3A7FA794DC49399900453564EA2"><enum>(a)</enum><header>Service-disabled
veterans</header><text display-inline="yes-display-inline">Section 36(a) of the
Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/657f">15 U.S.C. 657f(a)</external-xref>) is amended—</text>
<paragraph id="HDB19E98C471841FBAD7EEAA2415957D7"><enum>(1)</enum><text>in the matter
preceding paragraph (1), by striking <quote>may</quote> and inserting
<quote>shall</quote>; and</text>
</paragraph><paragraph id="H8EBA4179C89344FC9F005DAD5EC57388"><enum>(2)</enum><text>in paragraph (1),
by striking <quote>and the contracting officer</quote> and all that follows
through <quote>contracting opportunity</quote>.</text>
</paragraph></subsection><subsection id="H009BDA37D9974450BDFC633B2D57064B"><enum>(b)</enum><header>HUBZone</header><text>Section
31(b)(2)(B) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/15/657a">15 U.S.C. 657a(b)(2)(B)</external-xref>) is amended by striking
<quote>shall</quote> and inserting <quote>may</quote>.</text>
</subsection></section><section id="HBF13F44204284830827C7005F73684C2"><enum>102.</enum><header>Penalties for
misrepresentation</header><text display-inline="no-display-inline">Section
16(d)(1) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/645">15 U.S.C. 645(d)(1)</external-xref>) is amended by
inserting <quote>a <quote>small business concern owned and controlled by
service-disabled veterans</quote>,</quote> before <quote>or a <quote>small
business concern owned and controlled by women</quote></quote>.</text>
</section><section id="HA17230F0555D4AA5BC914920FD00042E"><enum>103.</enum><header>Implementation
of Executive Order 13360</header><text display-inline="no-display-inline">Section 36 of the Small Business Act (15
U.S.C. 657f) is amended by adding at the end the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="HF433CDF9BA8D4D1EB4F0E52F00D17656" style="OLC">
<subsection id="H6D022A9BED2847CE9323FC91E3ACF416"><enum>(f)</enum><header>Implementation
of Executive Order 13360</header><text>The Administrator shall—</text>
<paragraph id="H825E73DFE6924604A5E71486AA5D00F6"><enum>(1)</enum><text display-inline="yes-display-inline">provide small business concerns owned and
controlled by service-disabled veterans with information and assistance
concerning participation in Federal contracting;</text>
</paragraph><paragraph id="H14DB35C97BF243F1002B087E4FFA6372"><enum>(2)</enum><text>advise and assist
other agencies in their strategies to expand procurement opportunities for such
concerns; and</text>
</paragraph><paragraph id="H0CDC8FB2E2184C33B977B47B8715692E"><enum>(3)</enum><text>make training
assistance on Federal contract law, procedures, and practices available to such
concerns.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><enum>II</enum><header>Protecting
taxpayers and ensuring program consistency</header>
<section id="HD6CDECD831FF465DBC1DA523B570C6D"><enum>201.</enum><header>Requiring
business integrity of small business concerns</header><text display-inline="no-display-inline">The Small Business Act (15 U.S.C. 631 et
seq.) is amended by adding at the end the following new section:</text>
<quoted-block display-inline="no-display-inline" id="HA7E87D877171468A0050C47E46BA03C8" style="OLC">
<section id="H41E1C819E8D8454182531167C3E38400"><enum>38.</enum><header>Requiring
business integrity of small business concerns</header>
<subsection id="H4F932FAF6AAF467E8E9C635CF1106055"><enum>(a)</enum><header>Section
8<enum-in-header>(a)</enum-in-header> program background check</header><text>No
applicant may be approved for participation in the section 8(a) program unless
the Administrator first performs a background check on the applicant and
determines that the applicant does not lack business integrity.</text>
</subsection><subsection id="H49D3EFA25F4040CAA6A147AE083B72FB"><enum>(b)</enum><header>HUBZone program
background check</header><text display-inline="yes-display-inline">No award of
a second contract under the authority of section 31(b)(2)(A) or 31(b)(2)(B) may
be made unless the Administrator first performs a background check on the
applicant and determines that the applicant does not lack business
integrity.</text>
</subsection><subsection id="H0549AC1E02A443BA9532B74712008488"><enum>(c)</enum><header>Random
background check</header><text>The Administrator shall have random background
checks performed on owners and officers of small business concerns that have
been awarded a contract under section 8(m), 36(a), or 36(b) to determine
whether such owners and officers lacks business
integrity.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H9F5C9283A1E44E9491FD700684C4A794"><enum>202.</enum><header>Establishment
of goals</header>
<subsection id="HFD843ACC80F94FE695E400712E3CC844"><enum>(a)</enum><header>Establishment of
Government-wide goals</header><text display-inline="yes-display-inline">Section
15(g)(1) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/644">15 U.S.C. 644(g)(1)</external-xref>) is amended by striking
the first sentence and inserting <quote>The President shall annually establish
Government-wide goals for procurement contracts awarded to small business
concerns, small business concerns owned and controlled by service-disabled
veterans, qualified HUBZone small business concerns, small business concerns
owned and controlled by socially and economically disadvantaged individuals,
small business concerns participating in the program established by section
8(a), and small business concerns owned and controlled by
women.</quote>.</text>
</subsection><subsection id="H4F53099113CF462EA46E00E4D6A0E9D2"><enum>(b)</enum><header>Technical
corrections</header><text>Section 15 of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/644">15 U.S.C. 644</external-xref>)
is amended—</text>
<paragraph id="HDAEF6F5031364488A3B02735CF756226"><enum>(1)</enum><text>in subsection (g)
by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HC58FF780D1BE4039BF04116289A72167" style="OLC">
<paragraph id="H0F5CA27ABC6E4A5E9FB978235FF95D86" indent="up1"><enum>(3)</enum><text>Each agency shall, in consultation
with the Administrator, establish goals for the usage, as prime contractors, of
small business concerns that participate in the program under section
8(a).</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="HE2E9692F018E4943B48D177D7EF0F85E"><enum>(2)</enum><text>in subsection (h)
by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H0997A1DC553242C9B170AEBCBB4714A6" style="OLC">
<paragraph id="H6675FCAE1C6D44779277A5FE18E7009F" indent="up1"><enum>(4)</enum><text>Each prime contractor shall, in
consultation with the Administrator, establish goals for the usage, as
subcontractors, of small business concerns that participate in the program
under section
8(a).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="HFC318C0C27A5419EAA794439432952F"><enum>203.</enum><header>Small business
concern subcontracting policy</header><text display-inline="no-display-inline">Section 8(d)(1) of the Small Business Act
(<external-xref legal-doc="usc" parsable-cite="usc/15/637">15 U.S.C. 637(d)(1)</external-xref>) is amended by striking the first sentence and inserting
<quote>It is the policy of the Unites States that small business concerns,
small business concerns owned and controlled by veterans, small business
concerns owned and controlled by service-disabled veterans, qualifying HUBZone
small business concerns, small business concerns owned and controlled by
socially and economically disadvantaged individuals, small business concerns
participating in the program established by section 8(a), and small business
concerns owned and controlled by women, shall have the maximum practicable
opportunity to participate in the performance contracts let by any Federal
agency, including contracts and subcontracts for subsystems, assemblies,
components, and related services for major systems.</quote>.</text>
</section><section id="H8864B8AA6183464E8F34857F2FE94F85"><enum>204.</enum><header>Increased size
of available contracts</header>
<subsection id="HBC72CA1949F2453CAC7440DC2DBA6D6"><enum>(a)</enum><header>Section
8<enum-in-header>(a)</enum-in-header> program</header><text display-inline="yes-display-inline">Section 8(a)(1)(D)(i)(II) of the Small
Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/637">15 U.S.C. 637(a)(1)(D)(i)(II)</external-xref>) is amended—</text>
<paragraph id="H2CBD181E29944CD882E0AF42C1C24EAC"><enum>(1)</enum><text>by striking
<quote>$5,000,000</quote> and inserting <quote>$5,500,000</quote>; and</text>
</paragraph><paragraph id="H7A63BAD70FF342D7B53313A9A563846F"><enum>(2)</enum><text>by striking
<quote>$3,000,000</quote> and inserting <quote>$5,100,000</quote>.</text>
</paragraph></subsection><subsection id="H87FC61358EAA441B892115494196477E"><enum>(b)</enum><header>HUBZone
program</header><text>Section 31(b)(2)(A)(ii) of such Act (15 U.S.C.
657a(b)(2)(A)(ii)) is amended—</text>
<paragraph id="HB7F2AC46D9BE4AA6BC30EAEC83D67B46"><enum>(1)</enum><text>by striking
<quote>$5,000,000</quote> and inserting <quote>$5,500,000</quote>; and</text>
</paragraph><paragraph id="H840163BDDB1D49B1B1847209267FA632"><enum>(2)</enum><text>by striking
<quote>$3,000,000</quote> and inserting <quote>$5,100,000</quote>.</text>
</paragraph></subsection><subsection id="H55F6767BED0F42D8A87FB556B7E01DAD"><enum>(c)</enum><header>Service-disabled
veteran program</header><text>Section 36(a)(2) of such Act (15 U.S.C.
657f(a)(2)) is amended—</text>
<paragraph id="HE201D78575894F278D19AF139D3C7FD"><enum>(1)</enum><text>by
striking <quote>$5,000,000</quote> and inserting <quote>$5,500,000</quote>;
and</text>
</paragraph><paragraph id="H3F006417EAF94A9396B487AAFF05775B"><enum>(2)</enum><text>by striking
<quote>$3,000,000</quote> and inserting <quote>$5,100,000</quote>.</text>
</paragraph></subsection></section><enum>III</enum><header>Expanding
opportunities for women entrepreneurs</header>
<section id="HFC04E555143F48EDB1F608BFCE00B7E0"><enum>301.</enum><header>Implement the
women’s procurement program</header><text display-inline="no-display-inline">Subsection (m) of section 8 of the Small
Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/637">15 U.S.C. 637(m)</external-xref>) is amended—</text>
<paragraph id="H4453A3EF61034EF4BD6800300544CF6E"><enum>(1)</enum><text>by striking
paragraphs (1) through (4) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HA5BEDBE604704A56B975125134263C6F" style="OLC">
<paragraph id="HA6AED1A1EFB7472BAA55544192FE8CD"><enum>(1)</enum><header>Definition</header><text>In
this subsection, the term <term>small business concern owned and controlled by
women</term> has the meaning given such term in section 3(n), except that
ownership shall be determined without regard to any community property
law.</text>
</paragraph><paragraph id="H7D50B8AC5A364FF8B1EE2200DF49907B"><enum>(2)</enum><header>Authority to
restrict competition</header>
<subparagraph id="HCA60B78440BB4DF5B872FB96F1CDE055"><enum>(A)</enum><header>In
general</header><text>In accordance with this subsection, a contracting officer
may restrict competition for any contract for the procurement of goods or
services by the Federal Government to small business concerns owned and
controlled by women, if—</text>
<clause id="H31B346D96E3A4EC486F519ADF05729F3"><enum>(i)</enum><text>each of the
concerns is not less than 51 percent owned by 1 or more women who are
economically disadvantaged (and such ownership is determined without regard to
any community property law);</text>
</clause><clause id="H732D9C8D66C244D88EB2CAC5F79E31E"><enum>(ii)</enum><text>the contracting
officer has a reasonable expectation that 2 or more small business concerns
owned and controlled by women will submit offers for the contract;</text>
</clause><clause id="H08D05EB712F84018AD4CB0B0E839C17B"><enum>(iii)</enum><text>the contract is
for the procurement of goods or services with respect to an industry identified
pursuant to paragraph (4);</text>
</clause><clause id="H6E5F6A59749E4A8886A3FF63ACA1DA1"><enum>(iv)</enum><text>in
the estimation of the contracting officer, the contract award can be made at a
fair and reasonable price; and</text>
</clause><clause id="H2233AD8C2C06400CB341D097BEBF4145"><enum>(v)</enum><text>each concern is
certified in a manner described in subparagraph (B).</text>
</clause></subparagraph><subparagraph display-inline="no-display-inline" id="H8392B16B0A3C4802BD71EDF45500D0D7"><enum>(B)</enum><header>Acceptance of
certification</header><text display-inline="yes-display-inline">For purposes of
subparagraph (A)(v), a contracting officer is required to accept a small
business concern’s certification as a small business concern owned and
controlled by women when such certification is made by—</text>
<clause id="HE9E545EFEE2F49DD8426976F8937EABA"><enum>(i)</enum><text display-inline="yes-display-inline">a Federal agency or a State or local
government;</text>
</clause><clause id="HA0CB56852E644147946EAC4285B58692"><enum>(ii)</enum><text>a
national certifying entity approved by the Administrator; or</text>
</clause><clause id="HC54850019E9E444CAC15DD46888347D8"><enum>(iii)</enum><text>the small
business concern, when such concern certifies to the contracting officer that
it is a small business concern owned and controlled by women and provides
adequate documentation in accordance with standards established by the
Administrator to support such certification.</text>
</clause></subparagraph></paragraph><paragraph id="HE0643D3807E04258B3AF8EC2542DC57"><enum>(3)</enum><header>Waiver</header><text>With
respect to a small business concern owned and controlled by women, the
Administrator may waive paragraph (2)(A)(i) if—</text>
<subparagraph id="H6AEA64AE5AD240858E400364E73373B"><enum>(A)</enum><text>such concern is in
an industry identified pursuant to paragraph (4); and</text>
</subparagraph><subparagraph id="H23E979B903B942FE994DF6B978EC47A"><enum>(B)</enum><text>the Administrator
determines that such concern is in an industry in which small business concerns
owned and controlled by women are substantially under-represented in Federal
contracting.</text>
</subparagraph></paragraph><paragraph id="H552CA12BA7FA4BD9987F7B4CFE110016"><enum>(4)</enum><header>Identification
of industries</header>
<subparagraph id="H1091A68C63D44814A0A7988060E6E4E6"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Not less often than
every five years, the Administrator shall conduct a study to identify, for
purposes of paragraphs (2)(A)(iii) and (3)(A), industries in which small
business concerns owned and controlled by women are under-represented in
Federal contracting. The parameters for the study shall be as follows:</text>
<clause id="H0E059EFCCAFF468A91BC195FB385867B"><enum>(i)</enum><text display-inline="yes-display-inline">For purposes of this paragraph, the
Administrator shall identify an industry if, and only if, the share of Federal
contracts awarded to small business concerns owned and controlled by women in
such industry is small relative to the prevalence of business concerns owned
and controlled by women in the pool of business concerns in such industry that
have at least one employee.</text>
</clause><clause id="HEE5D5A59B1FE4C15BEB4005EF41BFECE"><enum>(ii)</enum><text display-inline="yes-display-inline">The study shall measure utilization and
availability by—</text>
<subclause id="H2EBBAADD6B4B4B3697B1C4C03637F5BD"><enum>(I)</enum><text>using the two best
available data sources;</text>
</subclause><subclause id="H0158AF1A8B5341F3BCEF3179DF506B63"><enum>(II)</enum><text>including only
business concerns that have at least one employee; and</text>
</subclause><subclause id="H31E1C0303F8D47BD9D26EBB91C724D31"><enum>(III)</enum><text>measuring only
Federal contracts awarded for amounts over $25,000.</text>
</subclause></clause><clause id="HA1AF68874E414A00943E90CF28F1ABC8"><enum>(iii)</enum><text>The study shall
include four sets of disparity measurement tables to compute disparity ratios.
The four sets are—</text>
<subclause id="HC97D22412FD143B795157CDE9DFBA55"><enum>(I)</enum><text display-inline="yes-display-inline">all business concerns in the United States
relative to the number of Federal contracts awarded to small business concerns
owned and controlled by women;</text>
</subclause><subclause id="HFE7D04463B314B61809DFB2FA5DEF582"><enum>(II)</enum><text display-inline="yes-display-inline">small business concerns owned and
controlled by women that have demonstrated an interest in or that have secured
Federal contracts relative to the number of Federal contracts awarded to small
business concerns owned and controlled by women;</text>
</subclause><subclause id="H86C30F6378CC41E19EFD75A1D2BB3956"><enum>(III)</enum><text display-inline="yes-display-inline">all business concerns in the United States
relative to the dollar amounts of Federal contracts awarded to small business
concerns owned and controlled by women; and</text>
</subclause><subclause id="H881D5B151A8A46C98F73C796F5BC3C8"><enum>(IV)</enum><text display-inline="yes-display-inline">small business concerns owned and
controlled by women that have demonstrated an interest in or that have secured
government contracts relative to the dollar amounts of Federal contracts
awarded.</text>
</subclause></clause></subparagraph><subparagraph id="H9231ED91C424462D8907A36DE0CC5D3"><enum>(B)</enum><header>Determination by
head of department or agency</header><text display-inline="yes-display-inline">Until such time as the Administrator
completes the identification of industries required by subparagraph (A), the
determination as to whether an industry is one in which small business concerns
owned and controlled by women are under-represented in Federal contracting
shall be made by the head of the department or agency for which the contract is
to be performed.</text>
</subparagraph><subparagraph id="HF0172024F81242AA823BFB44A8037D03"><enum>(C)</enum><header>Deadline</header><text>Not
later than 90 days after the date of the enactment of this subparagraph, the
Administrator shall—</text>
<clause id="H0C06807ECBB643B4A7E84BB64B0096BC"><enum>(i)</enum><text>ensure the
completion of the first study required by subparagraph (A);</text>
</clause><clause id="HF05D701A68244A8AAF061E7FC002722C"><enum>(ii)</enum><text>approve national
certifying entities for the purposes of paragraph (2)(B)(ii);</text>
</clause><clause id="H5C5594DA3911483E972827C83FD259EE"><enum>(iii)</enum><text>establish
procedures required by paragraph (5)(A); and</text>
</clause><clause id="H10DA34C6332B489EBE397B29EB02593C"><enum>(iv)</enum><text>establish
standards described in paragraph
(2)(B)(iii).</text>
</clause></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H8FCEFE425F764133952CB0F800E99617"><enum>(2)</enum><text>in paragraph (5),
by striking <quote>(2)(F)</quote> in each place it appears and inserting
<quote>(2)(B)</quote>; and</text>
</paragraph><paragraph id="HD655A1BFADAA438D82541F44AA042968"><enum>(3)</enum><text>in paragraph (5),
by adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H940D6FB59E2848F09EA4D7506C5CE29" style="OLC">
<subparagraph id="HEC8FE2080F9846F5B4A7AD66FE007B53"><enum>(D)</enum><header>Protests by
small business concerns</header><text display-inline="yes-display-inline">For
purposes of this paragraph, the term <term>interested party</term> shall
include any small business
concern.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><enum>IV</enum><header>Strengthening
Community Development</header>
<section id="HA88827610ABB40CF89F89BEB638CDCD8"><enum>401.</enum><header>On-site
verification</header><text display-inline="no-display-inline">Section 31(b) of
the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/657a">15 U.S.C. 657a(b)</external-xref>) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="H1116117DA8EC4FD9A2F4AE6E9D00DB" style="OLC">
<paragraph id="H2492829384BE4BB0B344002919B000E9"><enum>(5)</enum><header>On-site
verification of status</header>
<subparagraph id="H187828BD01974CBA873E6C00C3DC8190"><enum>(A)</enum><header>Verification</header><text display-inline="yes-display-inline">When a small business concern that has
previously been awarded a contract under paragraph (2)(A) or (2)(B) is to be
awarded a second contract under paragraph (2)(A) or (2)(B), the Administrator
shall perform an on-site inspection to determine whether such small business
concern is a qualified HUBZone small business concern. This paragraph does not
require such an inspection before the award of a third or subsequent contract.
This paragraph does not prevent a second contract from being awarded before
such inspection is completed.</text>
</subparagraph><subparagraph id="H39ADBDA222F44F74B6D2ADAA419D027D"><enum>(B)</enum><header>Notification by
small business concern</header><text display-inline="yes-display-inline">The
Administrator shall require a small business concern to notify the
Administrator, prior to being awarded a second contract under paragraph (2)(A)
or (2)(B), of such business concern’s attempt to be awarded a second contract
under paragraph (2)(A) or (2)(B). Not later than 90 days after the date of the
enactment of this subparagraph, the Administrator shall establish procedures to
implement this
subparagraph.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HA9F13CB906004FDAA2E5F449A9A3CCA8"><enum>402.</enum><header>Limitation on
construction contracts</header><text display-inline="no-display-inline">Section
31(b) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/657a">15 U.S.C. 657a(b)</external-xref>) is amended by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H5259D8FF0C1841B5B266CCB501C720A1" style="OLC">
<paragraph id="H5E0E5505FD4E4EF0B4603E92005FD3D8"><enum>(6)</enum><header>Limit HUBZone
program construction contracts in or near a HUBZone</header><text>A small
business concern may not obtain a construction contract by reason of the
HUBZone program unless the construction project is located in or near the
HUBZone in which the small business concern has its principal place of
business. The Administrator shall prescribe standards for determining when a
project is located <term>near</term> a HUBZone for purposes of this paragraph,
except that under no circumstances can a project located more than 150 miles
from a HUBZone be located <term>near</term> that
HUBZone.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H32AE5BD845E34C4E94B62E0068D7438C"><enum>403.</enum><header>Allowing small
business concerns that are not HUBZone program participants to protest HUBZone
awards</header><text display-inline="no-display-inline">Section 31(c) of the
Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/657a">15 U.S.C. 657a(c)</external-xref>) is amended by adding at the end the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HDCBBC3A4EFCF4C8CB853CCE91D3B6651" style="OLC">
<paragraph id="HF2986BC18ED44D70A0F56D1125D55F00"><enum>(5)</enum><header>Protests by
small business concerns</header><text>For purposes of this subsection, the term
<term>interested party</term> shall include any small business
concern.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><enum>V</enum><header>Modernizing the
8<enum-in-header>(a) </enum-in-header>program</header>
<section display-inline="no-display-inline" id="HFB1654DB02E1457DAC6DC66245E979F" section-type="subsequent-section"><enum>501.</enum><header>Modernizing the
section 8<enum-in-header>(a)</enum-in-header> program net worth
limitations</header>
<subsection id="HD1721DC468634A5EB896607677440080"><enum>(a)</enum><header>Modifications to
8<enum-in-header>(a)</enum-in-header> program</header><text display-inline="yes-display-inline">Notwithstanding any provision of the Small
Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/631">15 U.S.C. 631 et seq.</external-xref>), the Administrator shall administer the
program under section 8(a) of such Act with the following modifications:</text>
<paragraph display-inline="no-display-inline" id="H951EFA9F0FF4407F80F4D760724941F"><enum>(1)</enum><header>Determination for
term of program</header><text>For the purpose of this section, an individual
who has been determined by the Administrator to be economically disadvantaged
at the time of program entry shall be deemed to be economically disadvantaged
for the term of the program.</text>
</paragraph><paragraph display-inline="no-display-inline" id="HDB5D5EAA67EF4007A1862D2C983E0004"><enum>(2)</enum><header>Matters
excluded</header><text>In determining personal net worth, the Administrator
shall exclude from such determination the following:</text>
<subparagraph id="H2A2FDD01026446F9A3A41F5C79A056EB"><enum>(A)</enum><text>The value of any
investment of an economically disadvantaged owner in the small business
concern, except that such value shall be taken into account under this
paragraph when comparing such concerns to other concerns in the same business
area that are owned by other than socially disadvantaged individuals.</text>
</subparagraph><subparagraph id="HF5C7827D15544C329300C1A39796EE06"><enum>(B)</enum><text>The equity of an
economically disadvantaged owner in a primary personal residence.</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H8DD95D7A1A354087AD6871BC0E94675"><enum>(3)</enum><header>Maximum net
worth</header><text display-inline="yes-display-inline">When considering an
individual’s net worth for the purpose of determining the degree of diminished
credit and capital opportunities of such individual, the Administrator shall
consider an individual net worth of $550,000 or less as tending to show
diminished credit and capital opportunities.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H3D8DA5FBA50E4C5AB9DCABC5990340EE"><enum>(b)</enum><header>Effective date
for modifications to the 8<enum-in-header>(a)</enum-in-header>
program</header><text display-inline="yes-display-inline">This section shall
apply with respect to small business concerns that apply to the program under
section 8(a) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/637">15 U.S.C. 637(a)</external-xref>) after the date of the
enactment of this Act.</text>
</subsection></section><section id="HDE1AD9247F47402700A59BEE842B87E3"><enum>502.</enum><header>Extension of
the section 8<enum-in-header>(a)</enum-in-header> program term</header>
<subsection id="H66E07549328E47DFAC8C78C0E8CD5E80"><enum>(a)</enum><header>Program
term</header><text>The program term for the program under section 8(a) of the
Small Business Act shall be 10 years. The first 6 years shall be the
developmental phase, and the last 4 years shall be the transitional
phase.</text>
</subsection><subsection display-inline="no-display-inline" id="HC3BAA5E87CF6430AB79F007F16A80036"><enum>(b)</enum><header>Effective date
for modifications to the 8<enum-in-header>(a)</enum-in-header> program</header>
<paragraph id="HA330ED271D0B4192A2658897A4F06919"><enum>(1)</enum><header>In
general</header><text>This section shall apply with respect to small business
concerns that apply to the program under section 8(a) of the Small Business Act
(<external-xref legal-doc="usc" parsable-cite="usc/15/637">15 U.S.C. 637(a)</external-xref>) after the date of the enactment of this Act.</text>
</paragraph><paragraph id="HE1C9C2FF64B44869BBF079743C34DF1"><enum>(2)</enum><header>Transitional
rule</header><text>A small business concern participating in the program under
section 8(a) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/15/637">15 U.S.C. 637(a)</external-xref>) may participate for not more than
10 years.</text>
</paragraph></subsection></section><section id="H053EE96842834BEF8931D43E622F868"><enum>503.</enum><header>Report on
implementation</header><text display-inline="no-display-inline">Section 155 of
the Small Business Reauthorization and Manufacturing Assistance Act of 2004 (15
U.S.C. 657g) is amended by adding at the end the following: <quote>Annually,
concurrent with the submission of the Small Business Administration’s budget
request to the Congress, the Administrator shall submit to the Committee on
Small Business and Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives a report detailing progress the
Administrator has made towards the implementation of this
section.</quote>.</text>
</section><section id="H907BE32ECFD541828491BEAB93CA6FFC"><enum>504.</enum><header>Allowing small
business concerns that are not section 8<enum-in-header>(a)</enum-in-header>
program participants to protest section 8<enum-in-header>(a)</enum-in-header>
awards</header><text display-inline="no-display-inline">Section 8(a) of the
Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/637">15 U.S.C. 637(a)</external-xref>) is amended by adding at the end the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H7451ACE190A5443200BD8F5C1FDD318F" style="OLC">
<paragraph id="HBAA23C199C884DD5BD2B7187A3655699"><enum>(22)</enum><text display-inline="yes-display-inline">Rules similar to the rules of paragraphs
(5) and (6) of subsection (m) shall apply for purposes of this
subsection.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><enum>VI</enum><header>Other
matters</header>
<section id="HE4BF97764E8A4AA98224747F65252C4B"><enum>601.</enum><header>Affiliation for
certain franchises</header><text display-inline="no-display-inline">Section
3(a) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/632">15 U.S.C. 632(a)</external-xref>) is amended by adding at the
end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H1ECE5FDFE6724C7CAEA3050076B3DDAB" style="OLC">
<paragraph id="HE0398F2AF78E4E6C9CD32FDC122C2C70"><enum>(5)</enum><header>Special rule
relating to franchises in the temporary employee services
industry</header><text display-inline="yes-display-inline">In determining
whether a franchisee is affiliated with a franchisor in the temporary employee
services industry, the Administrator shall—</text>
<subparagraph id="HF5555C4182BC4338AAFD4E3B36004DD2"><enum>(A)</enum><text>disregard—</text>
<clause id="HC95FBA8AB39B4A649CB34B47A045082D"><enum>(i)</enum><text display-inline="yes-display-inline">whether the franchisor finances the payroll
of the temporary staffing personnel (including billing, collecting, and
remitting client fees); and</text>
</clause><clause id="HAE4F216643AF48F68514802BBFF9198"><enum>(ii)</enum><text>whether the
temporary staffing personnel are treated as employees or independent
contractors of the franchisor for tax or other purposes; and</text>
</clause></subparagraph><subparagraph id="HF11D3FF7BF4549F5BCFCEBDBDE3211D"><enum>(B)</enum><text>consider the
processing of payroll and billing by a franchisor as customary and common
practice in the temporary employee services industry that does not provide
probative
weight.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section>
October 22, 2007
Committed to the Committee of the Whole House on the State
of the Union and ordered to be printed