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[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3945 Introduced in House (IH)]

<DOC>

114th CONGRESS
  1st Session
                                H. R. 3945

 To amend the Small Business Act and title 38, United States Code, to 
   improve contracting opportunities for certain veteran-owned small 
                  businesses, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            November 5, 2015

   Mr. Coffman (for himself, Mr. Chabot, Mr. Miller of Florida, Ms. 
  Velazquez, Mr. Hanna, Mr. Connolly, and Mr. Moulton) introduced the 
   following bill; which was referred to the Committee on Veterans' 
  Affairs, and in addition to the Committee on Small Business, for a 
 period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL

 
 To amend the Small Business Act and title 38, United States Code, to 
   improve contracting opportunities for certain veteran-owned small 
                  businesses, 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.

    This Act may be cited as the ``Improving Opportunities for Service-
Disabled Veteran-Owned Small Businesses Act of 2015''.

SEC. 2. IMPROVING CONTRACTING OPPORTUNITIES FOR CERTAIN VETERAN-OWNED 
              SMALL BUSINESSES.

    (a) 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 any of 
        the following:
                    ``(A) A small business concern--
                            ``(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 (not 
                        including any stock owned by an ESOP) 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.
                    ``(B) A small business concern--
                            ``(i) not less than 51 percent of which is 
                        owned by one or more service-disabled veterans 
                        with a disability that is rated by the 
                        Secretary of Veterans Affairs as a permanent 
                        and total disability who are unable to manage 
                        the daily business operations of such concern; 
                        or
                            ``(ii) in the case of a publicly owned 
                        business, not less than 51 percent of the stock 
                        (not including any stock owned by an ESOP) of 
                        which is owned by one or more such veterans.
                    ``(C)(i) During the time period described in clause 
                (ii), a small business concern that was a small 
                business concern described in subparagraph (A) or (B) 
                immediately prior to the death of a service-disabled 
                veteran who was the owner of the concern, the death of 
                whom causes the concern to be less than 51 percent 
                owned by one or more service-disabled veterans, if--
                            ``(I) the surviving spouse of the deceased 
                        veteran acquires such veteran's ownership 
                        interest in such concern;
                            ``(II) such veteran had a service-connected 
                        disability (as defined in section 101(16) of 
                        title 38, United States Code) rated as 100-
                        percent disabling under the laws administered 
                        by the Secretary of Veterans Affairs or such 
                        veteran died as a result of a service-connected 
                        disability; and
                            ``(III) immediately prior to the death of 
                        such veteran, and during the period described 
                        in clause (ii), the small business concern is 
                        included in the database described in section 
                        8127(f) of title 38, United States Code.
                    ``(ii) The time period described in this clause is 
                the time period beginning on the date of the veteran's 
                death and ending on the earlier of--
                            ``(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; or
                            ``(III) the date that is 10 years after the 
                        date of the death of the veteran.''; and
            (2) by adding at the end the following new paragraphs:
            ``(6) ESOP.--The term `ESOP' has the meaning given the term 
        `employee stock ownership plan' in section 4975(e)(7) of the 
        Internal Revenue Code of 1986 (26 U.S.C. 4975(e)(7)).
            ``(7) Surviving spouse.--The term `surviving spouse' has 
        the meaning given such term in section 101(3) of title 38, 
        United States Code.''.
    (b) Veterans Affairs Definition of Small Business Concern 
Consolidated.--
            (1) In general.--Section 8127 of title 38, United States 
        Code, is amended--
                    (A) by striking subsection (h) and redesignating 
                subsections (i) through (l) as subsections (h) through 
                (k), respectively; and
                    (B) in subsection (k), as so redesignated--
                            (i) by amending paragraph (2) to read as 
                        follows:
            ``(2) The term `small business concern owned and controlled 
        by veterans' has the meaning given that term under section 
        3(q)(3) of the Small Business Act (15 U.S.C. 632(q)(3)).''; and
                            (ii) by adding at the end the following new 
                        paragraph:
            ``(3) The term `small business concern owned and controlled 
        by veterans with service-connected disabilities' has the 
        meaning given the term `small business concern owned and 
        controlled by service-disabled veterans' under section 3(q)(2) 
        of the Small Business Act (15 U.S.C. 632(q)(2)).''.
            (2) Conforming amendments.--Such section is further 
        amended--
                    (A) in subsection (b), by inserting ``or a small 
                business concern owned and controlled by veterans with 
                service-connected disabilities'' after ``a small 
                business concern owned and controlled by veterans'';
                    (B) in subsection (c), by inserting ``or a small 
                business concern owned and controlled by veterans with 
                service-connected disabilities'' after ``a small 
                business concern owned and controlled by veterans'';
                    (C) in subsection (d) by inserting ``or small 
                business concerns owned and controlled by veterans with 
                service-connected disabilities'' after ``small business 
                concerns owned and controlled by veterans'' both places 
                it appears; and
                    (D) in subsection (f)(1), by inserting ``, small 
                business concerns owned and controlled by veterans with 
                service-connected disabilities,'' after ``small 
                business concerns owned and controlled by veterans''.
    (c) Technical Correction.--Section 8(d)(3) of the Small Business 
Act (15 U.S.C. 637(d)(3)), is amended by adding at the end the 
following new subparagraph:
            ``(H) In this contract, the term `small business concern 
        owned and controlled by service-disabled veterans' has the 
        meaning given that term in section 3(q).''.

SEC. 3. REGULATIONS RELATING TO DATABASE OF THE SECRETARY OF VETERANS 
              AFFAIRS.

    (a) Requirement To Use Certain Small Business Administration 
Regulations.--Section 8127(f)(4) of title 38, United States Code, is 
amended by striking ``verified'' and inserting ``verified, using 
regulations issued by the Administrator of the Small Business 
Administration with respect to the status of the concern as a small 
business concern and the ownership and control of such concern,''.
    (b) Prohibition on Secretary of Veterans Affairs Issuing Certain 
Regulations.--Section 8127(f) of title 38, United States Code, is 
amended by adding at the end the following new paragraph:
    ``(7) The Secretary may not issue regulations related to the status 
of a concern as a small business concern and the ownership and control 
of such small business concern.''.
    (c) Delayed Effective Date.--The amendments made by this section 
and section 2 shall take effect on the date on which the Administrator 
of the Small Business Administration and the Secretary of Veterans 
Affairs jointly issue regulations implementing such sections. Such date 
shall be not later than 18 months after the date of enactment of this 
Act.

SEC. 4. APPEALS OF INCLUSION IN DATABASE.

    (a) In General.--Section 8127(f) of title 38, United States Code, 
as amended by section 3, is further amended by adding at the end the 
following new paragraph:
    ``(8)(A) If the Secretary does not verify a concern for inclusion 
in the database under this subsection based on the status of the 
concern as a small business concern or the ownership or control of the 
concern, the concern may appeal the denial of verification to the 
Office of Hearings and Appeals of the Small Business Administration (as 
established under part 134 of title 13, Code of Federal Regulations, or 
any successor administrative appellate entity created with the Small 
Business Administration). The decision of the Office of Hearings and 
Appeals shall be considered a final agency action.
    ``(B)(i) If an interested party challenges the inclusion in the 
database of a small business concern owned and controlled by veterans 
or a small business concern owned and controlled by veterans with 
service-connected disabilities based on the status of the concern as a 
small business concern or the ownership or control of the concern, the 
challenge shall be heard by the Office of Hearings and Appeals of the 
Small Business Administration as described in subparagraph (A). The 
decision of the Office of Hearings and Appeals shall be considered 
final agency action.
    ``(ii) In this subparagraph, the term `interested party' means--
            ``(I) the Secretary; and
            ``(II) in the case of a small business concern that is 
        awarded a contract, the contracting officer of the Department 
        or another small business concern that submitted an offer for 
        the contract that was awarded to the small business concern 
        that submitted an offer under clause (i).
    ``(C) For each fiscal year, the Secretary shall reimburse the 
Administrator of the Small Business Administration in an amount 
necessary to cover any cost incurred by the Office of Hearings and 
Appeals of the Small Business Administration for actions taken by the 
Office under this paragraph. 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.''.
    (b) Effective Date.--Paragraph (8) of subsection (f) of title 38, 
United States Code, as added by subsection (a), shall apply with 
respect to a verification decision made by the Secretary of Veterans 
Affairs on or after the date of the enactment of this Act.
                                 <all>
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