Verification Alignment and Service-disabled Business Adjustment Act or the VA-SBA Act
This bill transfers responsibility for verifying that a small business concern is owned and controlled by a veteran or service-disabled veteran, for the purposes of eligibility for certain procurement programs, from the Department of Veterans Affairs (VA) to the Small Business Administration (SBA).
Specifically, the bill transfers maintenance of the database of veteran-owned and service-disabled veteran-owned businesses to the SBA. For the purposes of procurement programs for small businesses owned and controlled by service-disabled veterans, the SBA must certify the status of such businesses, require their periodic recertification, and penalize any small business that misrepresents its status. Accordingly, the bill also abolishes the Center for Verification and Evaluation of the VA and transfers all of its functions to the SBA.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4520 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
2d Session
S. 4520
To transfer the responsibility of verifying small business concerns
owned and controlled by veterans or service-disabled veterans to the
Small Business Administration, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
August 10, 2020
Mrs. Loeffler introduced the following bill; which was read twice and
referred to the Committee on Veterans' Affairs
_______________________________________________________________________
A BILL
To transfer the responsibility of verifying small business concerns
owned and controlled by veterans or service-disabled veterans to the
Small Business Administration, 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Verification
Alignment and Service-disabled Business Adjustment Act'' or the ``VA-
SBA Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Transfer date.
Sec. 3. Amendment to and transfer of veteran-owned and service-disabled
veteran-owned business database.
Sec. 4. Additional requirements for database.
Sec. 5. Procurement program for small business concerns owned and
controlled by service-disabled veterans.
Sec. 6. Certification for small business concerns owned and controlled
by veterans.
Sec. 7. Status of self-certified small business concerns owned and
controlled by service-disabled veterans.
Sec. 8. Transfer of the Center for Verification and Evaluation of the
Department of Veterans Affairs to the Small
Business Administration.
Sec. 9. Report.
Sec. 10. Determination of budgetary effects.
SEC. 2. TRANSFER DATE.
For purposes of this Act, the term ``transfer date'' means the date
that is 2 years after the date of enactment of this Act.
SEC. 3. AMENDMENT TO AND TRANSFER OF VETERAN-OWNED AND SERVICE-DISABLED
VETERAN-OWNED BUSINESS DATABASE.
(a) 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--
(1) in subsection (e), by striking ``the Secretary under
subsection (f)'' and inserting ``the Administrator under
section 36 of the Small Business Act'';
(2) in subsection (f)--
(A) by striking ``the Secretary'' each place it
appears, except in the last place it appears in
paragraph (2)(A), and inserting ``the Administrator'';
(B) in paragraph (1), by striking ``small business
concerns owned and controlled by veterans with service-
connected disabilities'' and inserting ``small business
concerns owned and controlled by service-disabled
veterans'';
(C) in paragraph (2)--
(i) in subparagraph (A)--
(I) by striking ``to access'' and
inserting ``to obtain from the
Secretary of Veterans Affairs''; and
(II) by inserting ``, United States
Code,'' after ``title 5''; and
(ii) 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, the
verification of such status; 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.
``(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).'';
(D) by striking paragraphs (4) and (7);
(E) by redesignating paragraphs (5) and (6) as
paragraphs (4) and (5), respectively, and redesignating
paragraph (8) as paragraph (6);
(F) in paragraph (4), as so redesignated, by
striking ``The Secretary'' and inserting ``The
Administrator''; and
(G) in paragraph (6), as so redesignated--
(i) in subparagraph (A)--
(I) 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 subsection (g) of this
section)'';
(II) by striking ``verification''
and inserting ``certification''; and
(III) by striking ``the Small
Business Administration (as established
under section 5(i) of the Small
Business Act)'' and inserting ``the
Administration (as established under
section 5(i))'';
(ii) in subparagraph (B)--
(I) in clause (i)--
(aa) 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
(bb) by striking ``the
Small Business Act'' and
inserting ``the
Administration''; and
(II) in clause (ii)--
(aa) by amending subclause
(I) to read as follows:
``(I) the Secretary of Veterans Affairs or the
Administrator; or''; and
(bb) in subclause (II), by
striking ``the contracting
officer of the Department'' and
inserting ``the applicable
contracting officer''; and
(iii) by striking subparagraph (C);
(3) by redesignating subsection (k) (relating to
definitions) as subsection (l);
(4) by inserting after subsection (j) (relating to annual
reports) the following:
``(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 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.''; and
(5) in subsection (l) (relating to definitions), as so
redesignated--
(A) by redesignating paragraphs (1), (2), and (3)
as paragraphs (2), (3), and (4), respectively; and
(B) by inserting before paragraph (2), as so
redesignated, the following:
``(1) The term `Administrator' means the Administrator of
the Small Business Administration.''.
(b) 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).
(c) Conforming Amendments.--The following amendments shall take
effect on the transfer date:
(1) 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''.
(2) Title 38.--Section 8128 of title 38, United States
Code, is amended by striking ``maintained by the Secretary
under section 8127(f) of this title'' and inserting
``maintained by the Administrator of the Small Business Act
under section 36 of the Small Business Act''.
SEC. 4. ADDITIONAL REQUIREMENTS FOR DATABASE.
(a) Administration Access to Database Before the Transfer Date.--
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 of the Small Business Administration with access to the
contents of the database described under section 8127(f) of title 38,
United States Code.
(b) Rule of Construction.--Nothing in this Act or the amendments
made by this Act may be construed--
(1) 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
(2) 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).
(c) 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. 5. PROCUREMENT PROGRAM FOR SMALL BUSINESS CONCERNS OWNED AND
CONTROLLED BY SERVICE-DISABLED VETERANS.
(a) 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--
(1) by redesignating subsection (d) as paragraph (3),
adjusting the margin accordingly, and transferring such
paragraph to subsection (h) of such section, as added by
paragraph (6) of this subsection, so as to appear after
paragraph (2);
(2) by striking subsection (e);
(3) by redesignating subsections (a), (b), and (c) as
subsections (c), (d), and (e) respectively;
(4) by inserting before subsection (c), as so redesignated,
the following:
``(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.
``(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--
``(1) certify whether a concern has status as a small
business concern owned and controlled by service-disabled
veterans; and
``(2) require the periodic recertification of such
status.'';
(5) 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'';
(6) by adding at the end the following:
``(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.
``(h) Enforcement; Penalties.--
``(1) Verification of eligibility.--In carrying out this
section, the Administrator shall establish procedures relating
to--
``(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
``(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).
``(2) Examinations.--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).
``(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.''; and
(7) in paragraph (3) of subsection (h), as redesignated and
transferred by paragraph (1) of this subsection, by inserting
``and section 36A'' before the period at the end.
(b) Penalties for Misrepresentation.--Section 16 of the Small
Business Act (15 U.S.C. 645) is amended--
(1) in subsection (d)(1)--
(A) in the matter preceding subparagraph (A)--
(i) by striking the comma that immediately
follows another comma; and
(ii) by striking ``, a `small'' and
inserting ``, a `small business concern owned
and controlled by service-disabled veterans', a
`small business concern owned and controlled by
veterans', a `small''; and
(B) in paragraph (A), by striking ``9, 15, or 31''
and inserting ``8, 9, 15, 31, 36, or 36A''; and
(2) in subsection (e)--
(A) by striking the comma that immediately follows
another comma; and
(B) by striking ``, a `small'' and inserting ``, a
`small business concern owned and controlled by
service-disabled veterans', a `small business concern
owned and controlled by veterans', a `small''.
SEC. 6. CERTIFICATION FOR SMALL BUSINESS CONCERNS OWNED AND CONTROLLED
BY VETERANS.
The Small Business Act (15 U.S.C. 631 et seq.) is amended by
inserting after section 36 the following:
``SEC. 36A. CERTIFICATION OF SMALL BUSINESS CONCERNS OWNED AND
CONTROLLED BY VETERANS.
``(a) In General.--With respect to the program established under
section 8127 of title 38, United States Code, the Administrator shall--
``(1) certify whether a concern has status as a small
business concern owned and controlled by veterans; and
``(2) require the periodic recertification of such status.
``(b) Enforcement; Penalties.--
``(1) Verification of eligibility.--In carrying out this
section, the Administrator shall establish procedures relating
to--
``(A) the filing, investigation, and disposition by
the Administration of any challenge to the eligibility
of a small business concern to receive assistance under
section 36 (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
``(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).
``(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).''.
SEC. 7. STATUS OF SELF-CERTIFIED SMALL BUSINESS CONCERNS OWNED AND
CONTROLLED BY SERVICE-DISABLED VETERANS.
(a) 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--
(1) 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
(2) 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.
(b) Non-Applicability to Department of Veterans Affairs.--
Subsection (a) shall not apply to participation in contracts (including
subcontracts) with the Department of Veterans Affairs.
(c) 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 make such notice publicly
available, on the date of the enactment of this Act.
SEC. 8. TRANSFER OF THE CENTER FOR VERIFICATION AND EVALUATION OF THE
DEPARTMENT OF VETERANS AFFAIRS TO THE SMALL BUSINESS
ADMINISTRATION.
(a) Definition.--In this section, the term ``function''--
(1) means any duty, obligation, power, authority,
responsibility, right, privilege, activity, or program; and
(2) does not include employees.
(b) Abolishment.--The Center for Verification and Evaluation of the
Department of Veterans Affairs, as defined under section 74.1 of title
38, Code of Federal Regulations, is abolished effective on the transfer
date.
(c) Transfer of Functions.--Effective on the transfer date, all
functions that, immediately before the transfer date, were functions of
the Center for Verification and Evaluation shall be functions of the
Small Business Administration.
(d) Transfer of Assets.--So much of the property (including
contracts for the procurement of property or services) and records
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 in connection with the functions transferred.
(e) Savings Provisions.--
(1) Continuing effect of legal documents.--All orders,
determinations, rules, regulations, permits, agreements,
grants, contracts, certificates, licenses, registrations,
privileges, and other administrative actions--
(A) which have been issued, made, granted, or
allowed to become effective by the President, any
Federal agency or official thereof, or by a court of
competent jurisdiction, in the performance of functions
which are transferred under this section; and
(B) which are in effect on the transfer date, or
were final before the transfer date and are to become
effective on or after the transfer date,
shall continue in effect according to their terms until
modified, terminated, superseded, set aside, or revoked in
accordance with law by the President, the Administrator of the
Small Business Administration or other authorized official, a
court of competent jurisdiction, or by operation of law.
(2) Proceedings not affected.--The provisions of this
section shall not affect any proceedings, including notices of
proposed rulemaking, or any application for any license,
permit, certificate, or financial assistance pending before the
Department of Veterans Affairs on the transfer date, with
respect to functions transferred by this section but such
proceedings and applications shall be continued. Orders shall
be issued in such proceedings, appeals shall be taken
therefrom, and payments shall be made pursuant to such orders,
as if this section had not been enacted, and orders issued in
any such proceedings shall continue in effect until modified,
terminated, superseded, or revoked by a duly authorized
official, by a court of competent jurisdiction, or by operation
of law. Nothing in this paragraph shall be deemed to prohibit
the discontinuance or modification of any such proceeding under
the same terms and conditions and to the same extent that such
proceeding could have been discontinued or modified if this
section had not been enacted.
(3) Suits not affected.--The provisions of this section
shall not affect suits commenced before the transfer date, and
in all such suits, proceedings shall be had, appeals taken, and
judgments rendered in the same manner and with the same effect
as if this section had not been enacted.
(4) Nonabatement of actions.--No suit, action, or other
proceeding commenced by or against the Department of Veterans
Affairs, or by or against any individual in the official
capacity of such individual as an officer of the Department of
Veterans Affairs, shall abate by reason of the enactment of
this section.
(5) Administrative actions relating to promulgation of
regulations.--Any administrative action relating to the
preparation or promulgation of a regulation by the Department
of Veterans Affairs relating to a function transferred under
this section may be continued by the Administrator of the Small
Business Administration with the same effect as if this section
had not been enacted.
(f) 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.
SEC. 9. REPORT.
Not later than 1 year after 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 submit to the Committee on
Appropriations, the Committee on Small Business, and the Committee on
Veterans' Affairs of the House of Representatives and the Committee on
Appropriations, the Committee on Small Business and Entrepreneurship,
and the Committee on Veterans' Affairs of the Senate a report 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, which
shall include--
(1) a discussion of 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;
(2) projections for the numbers and timing, in terms of
fiscal year, of--
(A) already verified concerns that will come up for
recertification; and
(B) self-certified concerns that are expected to
apply for certification;
(3) 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
(4) other pertinent information determined by the
Administrator and the Secretary.
SEC. 10. DETERMINATION OF BUDGETARY EFFECTS.
The budgetary effects of this Act, for the purpose of complying
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by
reference to the latest statement titled ``Budgetary Effects of PAYGO
Legislation'' for this Act, submitted for printing in the Congressional
Record by the Chairman of the Senate Budget Committee, provided that
such statement has been submitted prior to the vote on passage.
<all>
Introduced in Senate
Read twice and referred to the Committee on Veterans' Affairs.
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