II 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Verification Alignment and Service-disabled Business 

6 Adjustment Act’’ or the ‘‘VA–SBA Act’’. 

7 (b) TABLE OF CONTENTS.—The table of contents for 

8 this Act is as follows: 


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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. 

1 SEC. 2. TRANSFER DATE. 

2 For purposes of this Act, the term ‘‘transfer date’’ 

3 means the date that is 2 years after the date of enactment 

4 of this Act. 

5 SEC. 3. AMENDMENT TO AND TRANSFER OF VETERAN6 OWNED AND SERVICE-DISABLED VETERAN7 OWNED BUSINESS DATABASE. 

8 (a) AMENDMENT OF VETERAN-OWNED AND SERV9 ICE-DISABLED VETERAN-OWNED BUSINESS DATA10 BASE.—Effective on the transfer date, section 8127 of 

11 title 38, United States Code, is amended— 

12 (1) in subsection (e), by striking ‘‘the Secretary 

13 under subsection (f)’’ and inserting ‘‘the Adminis14 trator under section 36 of the Small Business Act’’; 

15 (2) in subsection (f)— 

16 (A) by striking ‘‘the Secretary’’ each place 

17 it appears, except in the last place it appears in 


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1 paragraph (2)(A), and inserting ‘‘the Adminis2 trator’’; 

3 (B) in paragraph (1), by striking ‘‘small 

4 business concerns owned and controlled by vet5 erans with service-connected disabilities’’ and 

6 inserting ‘‘small business concerns owned and 

7 controlled by service-disabled veterans’’; 

8 (C) in paragraph (2)— 

9 (i) in subparagraph (A)— 

10 (I) by striking ‘‘to access’’ and 

11 inserting ‘‘to obtain from the Sec12 retary of Veterans Affairs’’; and 

13 (II) by inserting ‘‘, United States 

14 Code,’’ after ‘‘title 5’’; and 

15 (ii) by striking subparagraph (B) and 

16 inserting the following: 

17 ‘‘(B) For purposes of this subsection— 

18 ‘‘(i) the Secretary of Veterans Affairs shall— 

19 ‘‘(I) verify an individual’s status as a vet20 eran or a service-disabled veteran; and 

21 ‘‘(II) establish a system to permit the Ad22 ministrator to access, but not alter, the 

23 verification of such status; and 

24 ‘‘(ii) the Administrator shall verify— 


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1 ‘‘(I) the status of a business concern as a 

2 small business concern; and 

3 ‘‘(II) the ownership and control of such 

4 business concern. 

5 ‘‘(C) The Administrator may not certify a concern 

6 under subsection (b) or section 36A if the Secretary of 

7 Veterans Affairs cannot provide the verification described 

8 under subparagraph (B)(i)(I).’’; 

9 (D) by striking paragraphs (4) and (7); 

10 (E) by redesignating paragraphs (5) and 

11 (6) as paragraphs (4) and (5), respectively, and 

12 redesignating paragraph (8) as paragraph (6); 

13 (F) in paragraph (4), as so redesignated, 

14 by striking ‘‘The Secretary’’ and inserting ‘‘The 

15 Administrator’’; and 

16 (G) in paragraph (6), as so redesignated— 

17 (i) in subparagraph (A)— 

18 (I) by striking ‘‘verify the status 

19 of the concern as a small business 

20 concern or the ownership or control of 

21 the concern’’ and inserting ‘‘certify 

22 the status of the concern as a small 

23 business concern owned and controlled 

24 by veterans (under section 36A) or a 

25 small business concern owned and 


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1 controlled by service-disabled veterans 

2 (under subsection (g) of this sec3 tion)’’; 

4 (II) by striking ‘‘verification’’ 

5 and inserting ‘‘certification’’; and 

6 (III) by striking ‘‘the Small Busi7 ness Administration (as established 

8 under section 5(i) of the Small Busi9 ness Act)’’ and inserting ‘‘the Admin10 istration (as established under section 

11 5(i))’’; 

12 (ii) in subparagraph (B)— 

13 (I) in clause (i)— 

14 (aa) by striking ‘‘small busi15 ness concern owned and con16 trolled by veterans with service17 connected disabilities’’ and in18 serting ‘‘small business concern 

19 owned and controlled by service20 disabled veterans’’; and 

21 (bb) by striking ‘‘the Small 

22 Business Act’’ and inserting ‘‘the 

23 Administration’’; and 

24 (II) in clause (ii)— 


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1 (aa) by amending subclause 

2 (I) to read as follows: 

3 ‘‘(I) the Secretary of Veterans Affairs or 

4 the Administrator; or’’; and 

5 (bb) in subclause (II), by 

6 striking ‘‘the contracting officer 

7 of the Department’’ and inserting 

8 ‘‘the applicable contracting offi9 cer’’; and 

10 (iii) by striking subparagraph (C); 

11 (3) by redesignating subsection (k) (relating to 

12 definitions) as subsection (l); 

13 (4) by inserting after subsection (j) (relating to 

14 annual reports) the following: 

15 ‘‘(k) ANNUAL TRANSFER FOR CERTIFICATION

16 COSTS.—For each fiscal year, the Secretary of Veterans 

17 Affairs shall reimburse the Administrator in an amount 

18 necessary to cover any cost incurred by the Administrator 

19 for certifying small business concerns owned and con20 trolled by veterans that do not qualify as small business 

21 concerns owned and controlled by service-disabled veterans 

22 for the Secretary for purposes of this section and section 

23 8128 of this title. The Administrator is authorized to ac24 cept such reimbursement. The amount of any such reim25 bursement shall be determined jointly by the Secretary 


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1 and the Administrator and shall be provided from fees col2 lected by the Secretary under multiple-award schedule 

3 contracts. Any disagreement about the amount shall be 

4 resolved by the Director of the Office of Management and 

5 Budget.’’; and 

6 (5) in subsection (l) (relating to definitions), as 

7 so redesignated— 

8 (A) by redesignating paragraphs (1), (2), 

9 and (3) as paragraphs (2), (3), and (4), respec10 tively; and 

11 (B) by inserting before paragraph (2), as 

12 so redesignated, the following: 

13 ‘‘(1) The term ‘Administrator’ means the Ad14 ministrator of the Small Business Administration.’’. 

15 (b) TRANSFER OF REQUIREMENTS RELATING TO

16 DATABASE TO THE SMALL BUSINESS ACT.—Effective on 

17 the transfer date, subsection (f) of section 8127 of title 

18 38, United States Code (as amended by subsection (a)), 

19 is transferred to section 36 of the Small Business Act (15 

20 U.S.C. 657f), inserted so as to appear after subsection (e). 

21 (c) CONFORMING AMENDMENTS.—The following 

22 amendments shall take effect on the transfer date: 

23 (1) SMALL BUSINESS ACT.—Section 

24 3(q)(2)(C)(i)(III) of the Small Business Act (15 

25 U.S.C. 632(q)(2)(C)(i)(III)) is amended by striking 


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1 ‘‘section 8127(f) of title 38, United States Code’’ 

2 and inserting ‘‘section 36’’. 

3 (2) TITLE 38.—Section 8128 of title 38, United 

4 States Code, is amended by striking ‘‘maintained by 

5 the Secretary under section 8127(f) of this title’’ 

6 and inserting ‘‘maintained by the Administrator of 

7 the Small Business Act under section 36 of the 

8 Small Business Act’’. 

9 SEC. 4. ADDITIONAL REQUIREMENTS FOR DATABASE. 

10 (a) ADMINISTRATION ACCESS TO DATABASE BEFORE

11 THE TRANSFER DATE.—During the period between the 

12 date of the enactment of this Act and the transfer date, 

13 the Secretary of Veterans Affairs shall provide the Admin14 istrator of the Small Business Administration with access 

15 to the contents of the database described under section 

16 8127(f) of title 38, United States Code. 

17 (b) RULE OF CONSTRUCTION.—Nothing in this Act 

18 or the amendments made by this Act may be construed— 

19 (1) as prohibiting the Administrator of the 

20 Small Business Administration from combining the 

21 contents of the database described under section 

22 8127(f) of title 38, United States Code, with other 

23 databases maintained by the Administration; or 

24 (2) as requiring the Administrator to use any 

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1 scribed under section 8127(f) of title 38, United 

2 States Code, on or after the transfer date to comply 

3 with the requirement to maintain a database under 

4 subsection (f) of section 36 of the Small Business 

5 Act (as transferred pursuant to section 3(b) of this 

6 Act). 

7 (c) RECOGNITION OF THE ISSUANCE OF JOINT REG8 ULATIONS.—The date specified under section 1832(e) of 

9 the National Defense Authorization Act for Fiscal Year 

10 2017 (15 U.S.C. 632 note) shall be deemed to be October 

11 1, 2018. 

12 SEC. 5. PROCUREMENT PROGRAM FOR SMALL BUSINESS 

13 CONCERNS OWNED AND CONTROLLED BY 

14 SERVICE-DISABLED VETERANS. 

15 (a) PROCUREMENT PROGRAM FOR SMALL BUSINESS

16 CONCERNS OWNED AND CONTROLLED BY SERVICE-DIS17 ABLED VETERANS.—Section 36 of the Small Business Act 

18 (15 U.S.C. 657f) is amended— 

19 (1) by redesignating subsection (d) as para20 graph (3), adjusting the margin accordingly, and 

21 transferring such paragraph to subsection (h) of 

22 such section, as added by paragraph (6) of this sub23 section, so as to appear after paragraph (2); 

24 (2) by striking subsection (e); 


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1 (3) by redesignating subsections (a), (b), and 

2 (c) as subsections (c), (d), and (e) respectively; 

3 (4) by inserting before subsection (c), as so re4 designated, the following: 

5 ‘‘(a) CONTRACTING OFFICER DEFINED.—For pur6 poses of this section, the term ‘contracting officer’ has the 

7 meaning given such term in section 2101 of title 41, 

8 United States Code. 

9 ‘‘(b) CERTIFICATION OF SMALL BUSINESS CON10 CERNS OWNED AND CONTROLLED BY SERVICE-DISABLED

11 VETERANS.—With respect to a procurement program or 

12 preference established under this Act that applies to prime 

13 contractors, the Administrator shall— 

14 ‘‘(1) certify whether a concern has status as a 

15 small business concern owned and controlled by serv16 ice-disabled veterans; and 

17 ‘‘(2) require the periodic recertification of such 

18 status.’’; 

19 (5) in subsection (d), as so redesignated, by 

20 striking ‘‘and that the award can be made at a fair 

21 market price’’ and inserting ‘‘, that the award can 

22 be made at a fair market price, and if each concern 

23 is certified by the Administrator as a small business 

24 concern owned and controlled by service-disabled 

25 veterans’’; 


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1 (6) by adding at the end the following: 

2 ‘‘(g) CERTIFICATION REQUIREMENT.—Notwith3 standing subsection (c), a contracting officer may only 

4 award a sole source contract to a small business concern 

5 owned and controlled by service-disabled veterans or a 

6 contract on the basis of competition restricted to small 

7 business concerns owned and controlled by service-disabled 

8 veterans if such a concern is certified by the Administrator 

9 as a small business concern owned and controlled by serv10 ice-disabled veterans. 

11 ‘‘(h) ENFORCEMENT; PENALTIES.— 

12 ‘‘(1) VERIFICATION OF ELIGIBILITY.—In car13 rying out this section, the Administrator shall estab14 lish procedures relating to— 

15 ‘‘(A) the filing, investigation, and disposi16 tion by the Administration of any challenge to 

17 the eligibility of a small business concern to re18 ceive assistance under this section (including a 

19 challenge, filed by an interested party, relating 

20 to the veracity of a certification made or infor21 mation provided to the Administration by a 

22 small business concern under subsection (b)); 

23 and 

24 ‘‘(B) verification by the Administrator of 

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1 mation provided to the Administration by a 

2 small business concern under subsection (b). 

3 ‘‘(2) EXAMINATIONS.—The procedures estab4 lished under paragraph (1) shall provide for a pro5 gram of examinations by the Administrator of any 

6 small business concern making a certification or pro7 viding information to the Administrator under sub8 section (b), to determine the veracity of any state9 ments or information provided as part of such cer10 tification or otherwise provided under subsection (b). 

11 ‘‘(i) PROVISION OF DATA.—Upon the request of the 

12 Administrator, the head of any Federal department or 

13 agency shall promptly provide to the Administrator such 

14 information as the Administrator determines to be nec15 essary to carry out subsection (b) or to be able to certify 

16 the status of the concern as a small business concern 

17 owned and controlled by veterans under section 36A.’’; 

18 and 

19 (7) in paragraph (3) of subsection (h), as redes20 ignated and transferred by paragraph (1) of this 

21 subsection, by inserting ‘‘and section 36A’’ before 

22 the period at the end. 

23 (b) PENALTIES FOR MISREPRESENTATION.—Section 

24 16 of the Small Business Act (15 U.S.C. 645) is amend25 ed— 


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1 (1) in subsection (d)(1)— 

2 (A) in the matter preceding subparagraph 

3 (A)— 

4 (i) by striking the comma that imme5 diately follows another comma; and 

6 (ii) by striking ‘‘, a ‘small’’ and in7 serting ‘‘, a ‘small business concern owned 

8 and controlled by service-disabled vet9 erans’, a ‘small business concern owned 

10 and controlled by veterans’, a ‘small’’; and 

11 (B) in paragraph (A), by striking ‘‘9, 15, 

12 or 31’’ and inserting ‘‘8, 9, 15, 31, 36, or 

13 36A’’; and 

14 (2) in subsection (e)— 

15 (A) by striking the comma that imme16 diately follows another comma; and 

17 (B) by striking ‘‘, a ‘small’’ and inserting 

18 ‘‘, a ‘small business concern owned and con19 trolled by service-disabled veterans’, a ‘small 

20 business concern owned and controlled by vet21 erans’, a ‘small’’. 

22 SEC. 6. CERTIFICATION FOR SMALL BUSINESS CONCERNS 

23 OWNED AND CONTROLLED BY VETERANS. 

24 The Small Business Act (15 U.S.C. 631 et seq.) is 

25 amended by inserting after section 36 the following: 


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1 ‘‘SEC. 36A. CERTIFICATION OF SMALL BUSINESS CONCERNS 

2 OWNED AND CONTROLLED BY VETERANS. 

3 ‘‘(a) IN GENERAL.—With respect to the program es4 tablished under section 8127 of title 38, United States 

5 Code, the Administrator shall— 

6 ‘‘(1) certify whether a concern has status as a 

7 small business concern owned and controlled by vet8 erans; and 

9 ‘‘(2) require the periodic recertification of such 

10 status. 

11 ‘‘(b) ENFORCEMENT; PENALTIES.— 

12 ‘‘(1) VERIFICATION OF ELIGIBILITY.—In car13 rying out this section, the Administrator shall estab14 lish procedures relating to— 

15 ‘‘(A) the filing, investigation, and disposi16 tion by the Administration of any challenge to 

17 the eligibility of a small business concern to re18 ceive assistance under section 36 (including a 

19 challenge, filed by an interested party, relating 

20 to the veracity of a certification made or infor21 mation provided to the Administration by a 

22 small business concern under subsection (a)); 

23 and 

24 ‘‘(B) verification by the Administrator of 

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1 mation provided to the Administration by a 

2 small business concern under subsection (a). 

3 ‘‘(2) EXAMINATION OF APPLICANTS.—The pro4 cedures established under paragraph (1) shall pro5 vide for a program of examinations by the Adminis6 trator of any small business concern making a cer7 tification or providing information to the Adminis8 trator under subsection (a), to determine the verac9 ity of any statements or information provided as 

10 part of such certification or otherwise provided 

11 under subsection (a).’’. 

12 SEC. 7. STATUS OF SELF-CERTIFIED SMALL BUSINESS CON13 CERNS OWNED AND CONTROLLED BY SERV14 ICE-DISABLED VETERANS. 

15 (a) IN GENERAL.—Notwithstanding any other provi16 sion of law, any small business concern that self-certified 

17 as a small business concern owned and controlled by serv18 ice-disabled veterans shall— 

19 (1) if the concern files a certification applica20 tion with the Administrator of the Small Business 

21 Administration before the end of the 1-year period 

22 beginning on the transfer date, maintain such self23 certification until the Administrator makes a deter24 mination with respect to such certification; and 


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1 (2) if the concern does not file such a certifi2 cation application before the end of the 1-year pe3 riod beginning on the transfer date, lose, at the end 

4 of such 1-year period, any self-certification of the 

5 concern as a small business concern owned and con6 trolled by service-disabled veterans. 

7 (b) NON-APPLICABILITY TO DEPARTMENT OF VET8 ERANS AFFAIRS.—Subsection (a) shall not apply to par9 ticipation in contracts (including subcontracts) with the 

10 Department of Veterans Affairs. 

11 (c) NOTICE.—The Administrator shall notify any 

12 small business concern that self-certified as a small busi13 ness concern owned and controlled by service-disabled vet14 erans about the requirements of this Act, including the 

15 transfer date, and make such notice publicly available, on 

16 the date of the enactment of this Act. 

17 SEC. 8. TRANSFER OF THE CENTER FOR VERIFICATION 

18 AND EVALUATION OF THE DEPARTMENT OF 

19 VETERANS AFFAIRS TO THE SMALL BUSI20 NESS ADMINISTRATION. 

21 (a) DEFINITION.—In this section, the term ‘‘func22 tion’’— 

23 (1) means any duty, obligation, power, author24 ity, responsibility, right, privilege, activity, or pro25 gram; and 


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1 (2) does not include employees. 

2 (b) ABOLISHMENT.—The Center for Verification and 

3 Evaluation of the Department of Veterans Affairs, as de4 fined under section 74.1 of title 38, Code of Federal Regu5 lations, is abolished effective on the transfer date. 

6 (c) TRANSFER OF FUNCTIONS.—Effective on the 

7 transfer date, all functions that, immediately before the 

8 transfer date, were functions of the Center for Verification 

9 and Evaluation shall be functions of the Small Business 

10 Administration. 

11 (d) TRANSFER OF ASSETS.—So much of the property 

12 (including contracts for the procurement of property or 

13 services) and records used, held, available, or to be made 

14 available in connection with a function transferred under 

15 this section shall be available to the Small Business Ad16 ministration at such time or times as the President directs 

17 for use in connection with the functions transferred. 

18 (e) SAVINGS PROVISIONS.— 

19 (1) CONTINUING EFFECT OF LEGAL DOCU20 MENTS.—All orders, determinations, rules, regula21 tions, permits, agreements, grants, contracts, certifi22 cates, licenses, registrations, privileges, and other 

23 administrative actions— 

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1 dent, any Federal agency or official thereof, or 

2 by a court of competent jurisdiction, in the per3 formance of functions which are transferred 

4 under this section; and 

5 (B) which are in effect on the transfer 

6 date, or were final before the transfer date and 

7 are to become effective on or after the transfer 

8 date, 

9 shall continue in effect according to their terms until 

10 modified, terminated, superseded, set aside, or re11 voked in accordance with law by the President, the 

12 Administrator of the Small Business Administration 

13 or other authorized official, a court of competent ju14 risdiction, or by operation of law. 

15 (2) PROCEEDINGS NOT AFFECTED.—The provi16 sions of this section shall not affect any proceedings, 

17 including notices of proposed rulemaking, or any ap18 plication for any license, permit, certificate, or finan19 cial assistance pending before the Department of 

20 Veterans Affairs on the transfer date, with respect 

21 to functions transferred by this section but such pro22 ceedings and applications shall be continued. Orders 

23 shall be issued in such proceedings, appeals shall be 

24 taken therefrom, and payments shall be made pursu25 ant to such orders, as if this section had not been 


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1 enacted, and orders issued in any such proceedings 

2 shall continue in effect until modified, terminated, 

3 superseded, or revoked by a duly authorized official, 

4 by a court of competent jurisdiction, or by operation 

5 of law. Nothing in this paragraph shall be deemed 

6 to prohibit the discontinuance or modification of any 

7 such proceeding under the same terms and condi8 tions and to the same extent that such proceeding 

9 could have been discontinued or modified if this sec10 tion had not been enacted. 

11 (3) SUITS NOT AFFECTED.—The provisions of 

12 this section shall not affect suits commenced before 

13 the transfer date, and in all such suits, proceedings 

14 shall be had, appeals taken, and judgments rendered 

15 in the same manner and with the same effect as if 

16 this section had not been enacted. 

17 (4) NONABATEMENT OF ACTIONS.—No suit, ac18 tion, or other proceeding commenced by or against 

19 the Department of Veterans Affairs, or by or against 

20 any individual in the official capacity of such indi21 vidual as an officer of the Department of Veterans 

22 Affairs, shall abate by reason of the enactment of 

23 this section. 

24 (5) ADMINISTRATIVE ACTIONS RELATING TO

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1 tive action relating to the preparation or promulga2 tion of a regulation by the Department of Veterans 

3 Affairs relating to a function transferred under this 

4 section may be continued by the Administrator of 

5 the Small Business Administration with the same ef6 fect as if this section had not been enacted. 

7 (f) REFERENCES.—Any reference in any other Fed8 eral law, Executive order, rule, regulation, or delegation 

9 of authority, or any document of or pertaining to a func10 tion of the Center for Verification and Evaluation that is 

11 transferred under this section is deemed, after the transfer 

12 date, to refer to the Small Business Administration. 

13 SEC. 9. REPORT. 

14 Not later than 1 year after the date of the enactment 

15 of this Act, and every 6 months thereafter until the trans16 fer date, the Administrator of the Small Business Admin17 istration and Secretary of Veterans Affairs shall jointly 

18 submit to the Committee on Appropriations, the Com19 mittee on Small Business, and the Committee on Vet20 erans’ Affairs of the House of Representatives and the 

21 Committee on Appropriations, the Committee on Small 

22 Business and Entrepreneurship, and the Committee on 

23 Veterans’ Affairs of the Senate a report on the planning 

24 for the transfer of functions and property required under 


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1 this Act and the amendments made by this Act on the 

2 transfer date, which shall include— 

3 (1) a discussion of whether and how the 

4 verification database and operations of the Center 

5 for Verification and Evaluation of the Department 

6 of Veterans Affairs will be incorporated into the ex7 isting certification database of the Small Business 

8 Administration; 

9 (2) projections for the numbers and timing, in 

10 terms of fiscal year, of— 

11 (A) already verified concerns that will 

12 come up for recertification; and 

13 (B) self-certified concerns that are ex14 pected to apply for certification; 

15 (3) an explanation of how outreach to veteran 

16 service organizations, the service-disabled veteran17 owned and veteran-owned small business community, 

18 and other stakeholders will be conducted; and 

19 (4) other pertinent information determined by 

20 the Administrator and the Secretary. 

21 SEC. 10. DETERMINATION OF BUDGETARY EFFECTS. 

22 The budgetary effects of this Act, for the purpose of 

23 complying with the Statutory Pay-As-You-Go Act of 2010, 

24 shall be determined by reference to the latest statement 

25 titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 


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1 Act, submitted for printing in the Congressional Record 

2 by the Chairman of the Senate Budget Committee, pro3 vided that such statement has been submitted prior to the 

4 vote on passage. 

Æ 


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