[Congressional Record Volume 170, Number 36 (Wednesday, February 28, 2024)] [House] [Pages H722-H724] From the Congressional Record Online through the Government Publishing Office [www.gpo.gov] WOSB CERTIFICATION AND OPPORTUNITY EXPANSION ACT Mr. WILLIAMS of Texas. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 7105) to establish requirements relating to certification of small business concerns owned and controlled by women for certain purposes, and for other purposes, as amended. The Clerk read the title of the bill. The text of the bill is as follows: H.R. 7105 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 ``WOSB Certification and Opportunity Expansion Act''. SEC. 2. EXCLUSION OF SELF-CERTIFIED SMALL BUSINESS CONCERNS OWNED AND CONTROLLED BY WOMEN FROM GOALS. (a) Exclusion of Self-Certified WOSBs From Governmentwide and Agency Goals.-- (1) In general.--Section 15(g) of the Small Business Act (15 U.S.C. 644(g)) is amended by adding at the end the following new paragraph: ``(4) Exclusion of self-certified wosbs from goals.--Only small business concerns owned and controlled by women that have been certified under section 8(m)(2)(E) shall be included in calculating the goals established-- ``(A) under paragraph (1)(A)(v); and ``(B) by the head of a Federal agency for small business concerns owned and controlled by women under paragraph (2).''. (2) Effective date.--The amendments made by paragraph (1) shall take effect on the first day after the end of the second fiscal year beginning after the Administrator issues the regulations required under subsection (b)(2). (b) Requirements Relating to Self-Certified WOSBs.-- (1) Inclusion of certain self-certified wosbs in goals.-- (A) In general.--Notwithstanding any other provision of law, a small business concern described in subparagraph (B) shall be deemed to have been certified by the Administrator or a national certifying entity approved by the Administrator under section 8(m) of the Small Business Act (15 U.S.C. 637(m)) as a small business concern owned and controlled by women under paragraph (2)(E) of such section (15 U.S.C. 637(m)(2)(E)) for the purposes of calculating the goals described in paragraph (4) of section 15(g) of the such Act (as added by subsection (a) of this Act) until the Administrator or such a national certifying entity make a determination with respect to the certification of such concern. (B) Small business concerns described.--A small business concern described in this subparagraph is a small business concern-- (i) that is self-certified as a small business concern owned and controlled by women as of the date on which the amendments made by subsection (a) take effect; (ii) that files a certification application with the Administrator or a national certifying entity approved by the Administrator under section 8(m) of the Small Business Act (15 U.S.C. 637(m)) prior to such date; and (iii) for which the Administrator or such a national certifying entity does not make a determination prior to such date regarding certification pursuant to such certification application. (2) Rulemaking.--Not later than one year after the date of the enactment of this Act, the Administrator shall issue regulations carrying out this section. (c) Quarterly Briefings Required.--Not later than 60 days after the date of the enactment of this Act and on a quarterly basis thereafter until the date specified in subsection (b), the Administrator shall provide to the Committee on Small Business of the House of Representatives and the Committee Small Business and Entrepreneurship of the Senate a briefing on the implementation of the requirements of this section. Such briefings shall include-- (1) the total number of small business concerns expected to seek certification as a small business concern owned and controlled by women; (2) the number of applications for certification pending with the Administrator or a national certifying entity approved by the Administrator under section 8(m) of the Small Business Act during the period covered by the briefing; (3) the total number of applications approved by the Administrator or such a national certifying entity since the date of the enactment of this Act; (4) the timelines associated with processing such applications by the Administrator or such a national certifying entity between submission and approval; (5) the administrative costs to the Administration to make determinations on such applications and the estimated cost to such applicant to seek certification from a national certifying entity; (6) a discussion of the Administrator's current and future outreach efforts to small business concerns owned and controlled by women and to Federal agencies on the requirements of this Act; and [[Page H723]] (7) recommendations for additional legislative authority or resources required to fully implement the requirements of this Act. (d) Definitions.--In this section: (1) Administration.--The term ``Administration'' means the Small Business Administration. (2) Administrator.--The term ``Administrator'' means the Administrator of the Small Business Administration. (3) Small business concern.--The term ``small business concern'' has the meaning given under section 3 of the Small Business Act (15 U.S.C. 632). (4) Small business concern owned and controlled by women.-- The term ``small business concern owned and controlled by women'' has the meaning given the term in section 8(m) of the Small Business Act (15 U.S.C. 637(m)). (e) Compliance With CUTGO.--No additional amounts are authorized to be appropriated to carry out this Act or the amendments made by this Act. The SPEAKER pro tempore. Pursuant to the rule, the gentleman from Texas (Mr. Williams) and the gentlewoman from New York (Ms. Velazquez) each will control 20 minutes. The Chair recognizes the gentleman from Texas. General Leave Mr. WILLIAMS of Texas. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on the bill. The SPEAKER pro tempore. Is there objection to the request of the gentleman from Texas? There was no objection. Mr. WILLIAMS of Texas. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise in support of H.R. 7105, the WOSB Certification and Opportunity Expansion Act, sponsored by the Committee on Small Business' Ranking Member Velazquez. One of the Committee on Small Business' top priorities is combating fraud and abuse within the government's contracting programs. Small business participation in Federal contracting ensures a strong and resilient industrial base. Congress sets a governmentwide goal to spend at least 5 percent of its procurement dollars with women-owned small businesses. However, since this goal contains self-certified firms, it is hard to tell the accuracy of the data. This bill would remove self-certified firms from this governmentwide goal. This will add accountability measures to make sure the businesses competing for these contracting dollars are not misrepresenting themselves. I was proud to work with the ranking member on this important piece of legislation. I urge all of my colleagues to vote for H.R. 7105 and ensure that certified women small business owners are not unfairly shut out of the Federal marketplace by fraudsters. Mr. Speaker, I reserve the balance of my time. Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, empowering female entrepreneurs has long been a top priority of mine and enhancing the programs that impact the success of women-owned small businesses continues to guide my work on our committee. That is why I am pleased we are considering my legislation, the WOSB Certification and Opportunity Expansion Act, which, as amended, will improve and enhance the SBA's women-owned small business contracting program. The WOSB program is a valuable tool for Federal agencies to contract with small businesses that are owned by women. However, a number of factors hinder the program's effectiveness. These limitations then translate into reduced contracting opportunities. As a result, the data continues to show that women-owned small businesses are not seeing the contracting opportunities that should accompany the level of participation in the Federal marketplace. My bill will move away from self-certification and require Federal agencies to only count contracts awarded to certified WOSBs toward their procurement goals. This bill will help address a major concern that I regularly hear from WOSBs: that the program is more difficult to use than the other SBA programs, and that it is in part because WOSBs are not SBA certified. Stakeholders highlight that when combined with other confusing and cumbersome WOSB-specific requirements, the lack of SBA certification creates a risk that disincentivizes use of the authorities by contracting officers. {time} 1715 It is my hope that by moving more WOSBs through the SBA certification process, we will see Federal agencies more confidently and frequently set aside sole source contracts to women-owned small businesses. That has always been the goal of the WOSB program: to level the playing field for women in industries where they are underrepresented. My bill helps to do just that, and I urge all Members to support it. Mr. Speaker, I reserve the balance of my time. Mr. WILLIAMS of Texas. Mr. Speaker, I yield such time as he may consume to the gentleman from New York (Mr. LaLota). Mr. LaLOTA. Mr. Speaker, I thank Chairman Williams for yielding me the time today and Ranking Member Velazquez, a fellow proud New Yorker, for leading this effort with me. It is a good day when Members of the same State delegation from different parties can work together to benefit New York's small businesses and small businesses throughout this great country of ours. Mr. Speaker, our bipartisan WOSB Certification and Opportunity Expansion Act would phase out self-certified, women-owned small businesses from the governmentwide procurement goals. In doing so, this bill would achieve two main things. It will protect the integrity of the women-owned small business program, and it will prevent the abuse of Federal small business contracting goals. Self-certification, according to the SBA Office of Inspector General and others, presents significant risks of fraud and impedes the progress of businesses which rightfully qualify. While others can self- certify, women small business owners in the SBA's women-owned small business program undergo a certification program to ensure that only women-owned firms enter. This bill aligns the women-owned small business program with similar programs that no longer count self-certified firms in the SBA's goals. A similar provision phasing out self-certified service-disabled veteran-owned small businesses from the procurement goals passed in the FY24 NDAA. Mr. Speaker, I urge my colleagues on both sides of the aisle to support the WOSB Certification and Opportunity Expansion Act. Ms. VELAZQUEZ. Mr. Speaker, I have no further speakers, and I yield myself the balance of my time to close. Mr. Speaker, I have drafted this bill in a way that I believe ensures women-owned small businesses will not be harmed during the transition away from self-certification and that Congress has the tools necessary to conduct oversight of that transition. There are sufficient protections built into the legislation so that women-owned firms are not penalized and specifically will not lose contracts if issues arise during implementation. Utilizing WOSBs in our Federal marketplace is critical for their success and the success of our national economy. Mr. Speaker, I urge all of my colleagues to support this important bill to enhance the WOSB program, bolster its use, and provide female entrepreneurs with additional opportunities for success. I yield back the balance of my time. Mr. WILLIAMS of Texas. Mr. Speaker, I urge my colleagues to support this commonsense legislation from Ranking Member Velazquez and Congressman LaLota. I yield back the balance of my time. The SPEAKER pro tempore. The question is on the motion offered by the gentleman from Texas (Mr. Williams) that the House suspend the rules and pass the bill, H.R. 7105, as amended. The question was taken; and (two-thirds being in the affirmative) the rules were suspended and the bill, as amended, was passed. A motion to reconsider was laid on the table. [[Page H724]] ____________________