Improving Opportunities for Service-Disabled Veteran-Owned Small Businesses Act of 2014

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. SMALL BUSINESS DEFINITION OF SMALL BUSINESS CONCERN 
              CONSOLIDATED.

    Section 3(q) of the Small Business Act (15 U.S.C. 632(q)) is 
amended--
            (1) by amending paragraph (2) to read as follows:
            ``(2) Small business concern owned and controlled by 
        service-disabled veterans.--The term `small business concern 
        owned and controlled by service-disabled veterans' means a 
        small business concern--
                    ``(A)(i) not less than 51 percent of which is owned 
                by one or more service-disabled veterans or, in the 
                case of any publicly owned business, not less than 51 
                percent of the stock of which is owned by one or more 
                service-disabled veterans; and
                    ``(ii) the management and daily business operations 
                of which are controlled by one or more service-disabled 
                veterans or, in the case of a veteran with permanent 
                and severe disability, the spouse or permanent 
                caregiver of such veteran; or
                    ``(B) not less than 51 percent of which is owned by 
                one or more veterans with service-connected 
                disabilities that are permanent and total who are 
                unable to manage the daily business operations of such 
                concern or, in the case of a publicly owned business, 
                not less than 51 percent of the stock of which is owned 
                by one or more such veterans.''; and
            (2) by adding at the end the following:
            ``(6) Treatment of businesses after death of veteran-
        owner.--
                    ``(A) In general.--If the death of a service-
                disabled veteran causes a small business concern to be 
                less than 51 percent owned by one or more such 
                veterans, the surviving spouse of such veteran who 
                acquires ownership rights in such small business 
                concern shall, for the period described in subparagraph 
                (B), be treated as if the surviving spouse were that 
                veteran for the purpose of maintaining the status of 
                the small business concern as a small business concern 
                owned and controlled by service-disabled veterans.
                    ``(B) Period described.--The period referred to in 
                subparagraph (A) is the period beginning on the date on 
                which the service-disabled veteran dies and ending on 
                the earliest of the following dates:
                            ``(i) The date on which the surviving 
                        spouse remarries.
                            ``(ii) The date on which the surviving 
                        spouse relinquishes an ownership interest in 
                        the small business concern.
                            ``(iii) The date that--
                                    ``(I) in the case of a surviving 
                                spouse of a veteran with a service-
                                connected disability rated as 100 
                                percent disabling or who dies as a 
                                result of a service-connected 
                                disability, is 10 years after the date 
                                of the veteran's death; or
                                    ``(II) in the case of a surviving 
                                spouse of a veteran with a service-
                                connected disability rated as less than 
                                100 percent disabling who does not die 
                                as a result of a service-connected 
                                disability, is three years after the 
                                date of the veteran's death.''.

SEC. 3. VETERANS AFFAIRS DEFINITION OF SMALL BUSINESS CONCERN 
              CONSOLIDATED.

    Section 8127 of title 38, United States Code, is amended--
            (1) by striking subsection (h); and
            (2) in subsection (l)(2), by striking ``means'' and all 
        that follows through the period at the end and inserting the 
        following: ``has the meaning given that term under section 3(q) 
        of the Small Business Act (15 U.S.C. 632(q)).''.

SEC. 4. GAO REPORT ON VERIFICATION OF STATUS.

    Not later than 270 days after the date of enactment of this Act, 
the Comptroller General of the United States shall submit to the 
Committee on Veterans' Affairs and the Committee on Small Business and 
Entrepreneurship of the Senate and the Committee on Veterans' Affairs 
and the Committee on Small Business of the House of Representatives a 
report--
            (1) evaluating whether it is practicable for the 
        Administrator of the Small Business Administration or the 
        Secretary of Veterans Affairs to have Government-wide 
        responsibility for verifying whether a business concern 
        purporting to be a small business concern owned and controlled 
        by service-disabled veterans (as defined under section 3(q) of 
        the Small Business Act (15 U.S.C. 632(q)), as amended by this 
        Act) qualifies as a small business concern owned and controlled 
        by service-disabled veterans; and
            (2) making recommendations on the advisability of the 
        Administrator of the Small Business Administration or the 
        Secretary of Veterans Affairs having such Government-wide 
        responsibility.

Summary: Improving Opportunities for Service-Disabled Veteran-Owned Small Businesses Act of 2014 - Amends the Small Business Act to expand the definition of small business concern owned and controlled by service-disabled veterans for purposes of federal agencies awardingnbsp. Small business contracts pursuant to Small Business Administration (SBA) programs tonbsp. Include: (1) a small business concern not less than 51 of which is owned by one or more veterans with service-connected disabilities that are permanent and total who are unable to manage the daily business operations of such concern. Or (2) in the case of a publicly owned business, a small business concern not less than 51 of the stock of which is owned by one or more such veterans. Revises the VA definition of small business concern owned and controlled by veterans to be the same as the SBA definition of such term, thereby making the eligibility requirements for participation in veteran-owned small business contracting programs consistent for both SBA programs and VA programs. Provides that if the death of a service-disabled veteran causes a small business concern to be less than 51 owned by one or more such veterans, the surviving spouse of such veteran who acquires ownership rights in such small business concern shall be treated as if the surviving spouse were that veteran for the purpose of maintaining the business's eligibility for such contracting programsnbsp. Until the earliest of the following dates: (1) the date on which the surviving spouse either remarries or relinquishes the ownership interest, (2) 10 years after the veteran's death in the case of a surviving spouse of a veteran with a service-connected disability rated as 100 disabling or who dies as a result of a service-connected disability, or (3) 3 years after the veteran's death in the case of a surviving spouse of a veteran with a service-connected disability rated as less than 100 disabling who does not die as a result of a service-connected disability. Requiresnbsp. A Comptroller General (GAO) report on the advisability of the SBA or the VA having government-wide responsibility for verifying businesses purporting to be small business concerns owned and controlled by service-disabled veterans.