[House Report 113-662]
[From the U.S. Government Publishing Office]
113th Congress } { Rept. 113-662
HOUSE OF REPRESENTATIVES
2d Session } { Part 1
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IMPROVING OPPORTUNITIES FOR SERVICE-DISABLED VETERAN-OWNED SMALL
BUSINESSES ACT OF 2014
_______
December 11, 2014.--Ordered to be printed
_______
Mr. Graves of Missouri, from the Committee on Small Business, submitted
the following
R E P O R T
together with
DISSENTING VIEWS
[To accompany H.R. 2882]
[Including cost estimate of the Congressional Budget Office]
The Committee on Small Business, to whom was referred the
bill (H.R. 2882) to amend the Small Business Act and title 38,
United States Code to provide for a consolidated definition of
a small business concern owned and controlled by veterans, 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. Amendment.......................................................2
II. Purpose of the Bill and Summary.................................3
III. Background and the Need for Legislation.........................4
IV. Hearings........................................................5
V. Committee Consideration.........................................5
VI. Committee Votes.................................................6
VII. Section-by-Section Analysis of H.R. 2882.......................16
VIII. Congressional Budget Cost Estimate.............................18
IX. Unfunded Mandates..............................................19
X. New Budget Authority, Entitlement Authority, and Tax Expenditur19
XI. Oversight Findings.............................................19
XII. Statement of Constitutional Authority..........................19
XIII. Congressional Accountability Act...............................19
XIV. Federal Advisory Committee Statement...........................19
XV. Statement of No Earmarks.......................................20
XVI. Statement of Duplication of Federal Programs...................20
XVII. Disclosure of Directed Rule Makings............................20
XVIII.Performance Goals and Objectives...............................20
XIX. Changes in Existing Law Made by the Bill, as Reported..........20
XX. Dissenting Views...............................................23
I. Amendment
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Improving Opportunities for Service-
Disabled Veteran-Owned Small Businesses Act of 2014''.
SEC. 2. SBA TO ASSUME CONTROL OF VERIFICATION OF OWNERSHIP AND CONTROL
STATUS OF APPLICANTS FOR INCLUSION IN THE DATABASE
OF SMALL BUSINESSES OWNED AND CONTROLLED BY SERVICE
DISABLED VETERANS AND VETERANS.
The Small Business Act (15 U.S.C. 631 et seq.) is amended by adding
at the end the following:
``SEC. 48. VETS FIRST PROGRAM.
``In order to increase opportunities for small business concerns
owned and controlled by service-disabled veterans and small business
concerns owned and controlled by veterans in the Federal marketplace,
not later than 180 days after the effective date of this section, the
Administrator shall enter into a memorandum of understanding with the
Secretary of Veterans Affairs that transfer control and administration
of the program under subsections (e) through (g) of section 8127 of
title 38, United States Code, to the Administrator, consistent with the
following:
``(1) Not later than 270 days after completing the memorandum
of understanding, the Administrator shall make rules to carry
out the memorandum. If the Administrator does not make such
rules by such date, the Administrator may not exercise the
authority under section 7(a)(25)(A) until such time as those
rules are made.
``(2) The Administrator shall assume authority and
responsibility for maintenance and operation of the database
and for verifications under the program. Any verifications
undertaken by the Administrator shall employ fraud prevention
measures at the time of the initial application, through
detection and monitoring processes after initial acceptance, by
investigating allegations of potential fraud, removing firms
that do not quality from the database, and referring cases for
prosecution when appropriate
``(3) Any appeal by a small business concern, at the time
that verification is denied or a contract is awarded, of any
determination under the program shall be heard by the Office of
Hearings and Appeals of the Small Business Administration.
``(4)(A) The Secretary shall, for a period of 6 years
commencing on a date agreed to in the completed memorandum,
reimburse to the Administrator of the Small Business
Administration any costs incurred by the Administrator for
actions undertaken pursuant to the memorandum from fees
collected by the Secretary of Veteran Affairs under multiple-
award schedule contracts. The Administrator and the Secretary
shall endeavor to ensure maximum efficiency in such actions.
Any disputes between the Secretary and the Administrator shall
be resolved by the Director of the Office of Management and
Budget.
``(B) The Secretary and the Administrator may extend the term
of the memorandum of understanding, except for the
reimbursement requirement under subparagraph (A). The Secretary
and the Administrator may in a separate memorandum of
understanding provide for an extension of such reimbursement.
``(5) Not later than 180 days after the date of enactment of
this section, and every 180 days thereafter, the Secretary and
the Administrator shall--
``(A) meet to discuss ways to improve collaboration
under the memorandum to increase opportunities for
service-disabled veteran-owned small businesses and
veteran-owned small businesses; and
``(B) consult with congressionally-chartered Veterans
Service Organizations to discuss ways to increase
opportunities for service-disabled veteran-owned small
businesses and veteran-owned small businesses.
``(6) Not later than 180 days after the date of enactment of
this section, and every 180 days thereafter, the Secretary and
the Administrator shall report to the Committee on Small
Business and the Committee on Veterans' Affairs of the House of
Representatives, and the Committee on Small Business and
Entrepreneurship and the Committee on Veterans' Affairs of the
Senate on the progress made by the Secretary and the
Administrator implementing this section.
``(7) In any meeting required under paragraph (5), the
Secretary and the Administrator shall include in the discussion
of ways to improve collaboration under the memorandum to
increase opportunities for small businesses owned and
controlled by service-disabled veterans who are women or
minorities and small business concerns owned and controlled by
veterans who are women or minorities.''.
SEC. 3. MEMORANDUM OF UNDERSTANDING.
Section 8127(f) of title 38, United States Code, is amended by adding
at the end the following:
``(7) Not later than 180 days after the effective date of this
paragraph, the Secretary shall enter into a memorandum of understanding
with the Administrator of the Small Business Administration consistent
with section 48 of the Small Business Act, which shall specify the
manner in which the Secretary shall notify the Administrator as to
whether an individual is a veteran and if that veteran has a service-
connected disability.''.
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