IB 

Union Calendar No. 225 

116TH CONGRESS 

1ST SESSION H. R. 1615 

[Report No. 116–280, Part I] 

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 HOUSE OF REPRESENTATIVES 

MARCH 7, 2019 

Mr. KELLY of Mississippi (for himself, Mr. CHABOT, Mr. STAUBER, Miss 

GONZA ́LEZ-COLO ́N of Puerto Rico, Mr. FITZPATRICK, Mr. BERGMAN, Ms. 

KUSTER of New Hampshire, Mr. WATKINS, Mrs. RADEWAGEN, Ms. 

VELA ́ZQUEZ, Mr. DAVID P. ROE of Tennessee, Mr. DUNN, Mr. BANKS, 

Mr. CURTIS, Mr. BALDERSON, Mr. BURCHETT, Mr. CROW, Mr. 

HAGEDORN, Mr. BILIRAKIS, Mr. JOYCE of Pennsylvania, and Mr. STIVERS) introduced the following bill; which was referred to the Committee 

on Small Business, and in addition to the Committee on Veterans’ Affairs, 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 

NOVEMBER 12, 2019 

Additional sponsors: Mr. KIM, Mr. PETERS, Mr. GOLDEN, Mr. SPANO, and 

Mr. KEVIN HERN of Oklahoma 

NOVEMBER 12, 2019 

Reported from the Committee on Small Business with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

NOVEMBER 12, 2019 

Committee on Veterans’ Affairs discharged; committed to the Committee of 

the Whole House on the State of the Union and ordered to be printed 

[For text of introduced bill, see copy of bill as introduced on March 7, 2019] 


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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. 


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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 Ad6 justment Act’’ or the ‘‘VA–SBA Act’’. 

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

8 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 veteranowned 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. 

9 SEC. 2. TRANSFER DATE. 

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

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

12 of this Act, except that such date may be extended an unlim13 ited number of times by a period of not more than 6 months 

14 if the Administrator of the Small Business Administration 

15 and the Secretary of Veterans Affairs jointly issue a notice 

16 to Congress and the Law Revision Counsel of the House 

17 of Representatives containing— 

18 (1) a certification that such extension is nec19 essary; 


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1 (2) the rationale for and the length of such exten2 sion; and 

3 (3) a plan to comply with the requirements of 

4 this Act within the timeframe of the extension. 

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

8 (a) AMENDMENT OF VETERAN-OWNED AND SERVICE9 DISABLED VETERAN-OWNED BUSINESS DATABASE.—Effec10 tive on the transfer date, section 8127 of title 38, United 

11 States Code, is amended— 

12 (1) in subsection (e)— 

13 (A) by striking ‘‘the Secretary’’ and insert14 ing ‘‘the Administrator’’; and 

15 (B) by striking ‘‘subsection (f)’’ and insert16 ing ‘‘section 36 of the Small Business Act’’; 

17 (2) in subsection (f)— 

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

19 such term appears, other than in the last place 

20 such term appears under paragraph (2)(A), and 

21 inserting ‘‘the Administrator’’; 

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

23 business concerns owned and controlled by vet24 erans with service-connected disabilities’’ each 

25 place such term appears and inserting ‘‘small 


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1 business concerns owned and controlled by serv2 ice-disabled veterans’’; 

3 (C) in paragraph (2)— 

4 (i) in subparagraph (A), by striking 

5 ‘‘to access’’ and inserting ‘‘to obtain from 

6 the Secretary of Veterans Affairs’’; and 

7 (ii) by striking subparagraph (B) and 

8 inserting the following: 

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

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

11 ‘‘(I) verify an individual’s status as a vet12 eran or a service-disabled veteran; and 

13 ‘‘(II) establish a system to permit the Ad14 ministrator to access, but not alter, such 

15 verification; and 

16 ‘‘(ii) the Administrator shall verify— 

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

18 small business concern; and 

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

20 business concern. 

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

22 under subsection (b) or section 36A if the Secretary of Vet23 erans Affairs cannot provide the verification described 

24 under subparagraph (B)(i)(I).’’; 

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


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1 (E) by redesignating paragraphs (5) and 

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

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

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

5 striking ‘‘The Secretary’’ and inserting ‘‘The Ad6 ministrator’’; and 

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

8 (i) in subparagraph (A)— 

9 (I) by striking ‘‘verify the status 

10 of the concern as a small business con11 cern or the ownership or control of the 

12 concern’’ and inserting ‘‘certify the sta13 tus of the concern as a small business 

14 concern owned and controlled by vet15 erans (under section 36A) or a small 

16 business concern owned and controlled 

17 by service-disabled veterans (under sec18 tion 36(g))’’; and 

19 (II) by striking ‘‘verification’’ and 

20 inserting ‘‘certification’’; 

21 (ii) in subparagraph (B)— 

22 (I) in clause (i), by striking 

23 ‘‘small business concern owned and 

24 controlled by veterans with service-con25 nected disabilities’’ and inserting 


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1 ‘‘small business concern owned and 

2 controlled by service-disabled veterans’’; 

3 and 

4 (II) in clause (ii)— 

5 (aa) by amending subclause 

6 (I) to read as follows: 

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

8 Administrator; or’’; and 

9 (bb) in subclause (II), by 

10 striking ‘‘the contracting officer of 

11 the Department’’ and inserting 

12 ‘‘the applicable contracting offi13 cer’’; and 

14 (iii) by striking subparagraph (C); 

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

16 definitions) as subsection (l); 

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

18 annual reports) the following: 

19 ‘‘(k) ANNUAL TRANSFER FOR CERTIFICATION

20 COSTS.—For each fiscal year, the Secretary of Veterans Af21 fairs shall reimburse the Administrator in an amount nec22 essary to cover any cost incurred by the Administrator for 

23 certifying small business concerns owned and controlled by 

24 veterans that do not qualify as small business concerns 

25 owned and controlled by service-disabled veterans for the 


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1 Secretary for purposes of this section and section 8128 of 

2 this title. The Administrator is authorized to accept such 

3 reimbursement. The amount of any such reimbursement 

4 shall be determined jointly by the Secretary and the Admin5 istrator and shall be provided from fees collected by the Sec6 retary under multiple-award schedule contracts. Any dis7 agreement about the amount shall be resolved by the Direc8 tor of the Office of Management and Budget.’’; and 

9 (5) subsection (l) (relating to definitions), as so 

10 redesignated, by adding at the end the following: 

11 ‘‘(4) The term Administrator means the Admin12 istrator of the Small Business Administration.’’. 

13 (b) TRANSFER OF REQUIREMENTS RELATING TO

14 DATABASE TO THE SMALL BUSINESS ACT.—Effective on 

15 the transfer date, subsection (f) of section 8127 of title 38, 

16 United States Code (as amended by subsection (a)), is 

17 transferred to section 36 of the Small Business Act (15 

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

19 (c) CONFORMING AMENDMENTS.—The following 

20 amendments shall take effect on the transfer date: 

21 (1) SMALL BUSINESS ACT.—Section 

22 3(q)(2)(C)(i)(III) of the Small Business Act (15 

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

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

25 inserting ‘‘section 36’’. 


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

2 States Code, is amended by striking ‘‘section 8127(f) 

3 of this title’’ and inserting ‘‘section 36 of the Small 

4 Business Act’’. 

5 SEC. 4. ADDITIONAL REQUIREMENTS FOR DATABASE. 

6 (a) ADMINISTRATION ACCESS TO DATABASE BEFORE

7 THE TRANSFER DATE.—During the period between the date 

8 of the enactment of this Act and the transfer date, the Sec9 retary of Veterans Affairs shall provide the Administrator 

10 of the Small Business Administration with access to the 

11 contents of the database described under section 8127(f) of 

12 title 38, United States Code. 

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

14 the amendments made by this Act may be construed— 

15 (1) as prohibiting the Administrator of the 

16 Small Business Administration from combining the 

17 contents of the database described under section 

18 8127(f) of title 38, United States Code, with other 

19 databases maintained by the Administration; or 

20 (2) as requiring the Administrator to use any 

21 system or technology related to the database described 

22 under section 8127(f) of title 38, United States Code, 

23 on or after the transfer date to comply with the re24 quirement to maintain a database under subsection 


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1 (f) of section 36 of the Small Business Act (as trans2 ferred pursuant to section 3(b) of this Act). 

3 (c) RECOGNITION OF THE ISSUANCE OF JOINT REGU4 LATIONS.—The date specified under section 1832(e) of the 

5 National Defense Authorization Act for Fiscal Year 2017 

6 (15 U.S.C. 632 note) shall be deemed to be October 1, 2018. 

7 SEC. 5. PROCUREMENT PROGRAM FOR SMALL BUSINESS 

8 CONCERNS OWNED AND CONTROLLED BY 

9 SERVICE-DISABLED VETERANS. 

10 (a) PROCUREMENT PROGRAM FOR SMALL BUSINESS

11 CONCERNS OWNED AND CONTROLLED BY SERVICE-DIS12 ABLED VETERANS.—Section 36 of the Small Business Act 

13 (15 U.S.C. 657f) is amended— 

14 (1) by striking subsections (d) and (e); 

15 (2) by redesignating subsections (a), (b), and (c) 

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

17 (3) by inserting before subsection (c), as so redes18 ignated, the following: 

19 ‘‘(a) CONTRACTING OFFICER DEFINED.—For purposes 

20 of this section, the term ‘contracting officer’ has the mean21 ing given such term in section 2101 of title 41, United 

22 States Code. 

23 ‘‘(b) CERTIFICATION OF SMALL BUSINESS CONCERNS

24 OWNED AND CONTROLLED BY SERVICE-DISABLED VET25 ERANS.—With respect to a procurement program or prefVerDate Sep 11 2014 00:37 Nov 13, 2019 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6203 E:\BILLS\H1615.RH H1615

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1 erence established under this Act that applies to prime con2 tractors, the Administrator shall— 

3 ‘‘(1) certify the status of the concern as a ‘small 

4 business concern owned and controlled by service-dis5 abled veterans’; and 

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

7 status.’’; 

8 (4) in subsection (d), as so redesignated, by 

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

10 market price’’ and inserting ‘‘, that the award can be 

11 made at a fair market price, and if each concern is 

12 certified by the Administrator as a small business 

13 concern owned and controlled by service-disabled vet14 erans’’; and 

15 (5) by adding at the end the following: 

16 ‘‘(g) CERTIFICATION REQUIREMENT.—Notwith17 standing subsection (c), a contracting officer may only 

18 award a sole source contract to a small business concern 

19 owned and controlled by service-disabled veterans or a con20 tract on the basis of competition restricted to small business 

21 concerns owned and controlled by service-disabled veterans 

22 if such a concern is certified by the Administrator as a 

23 small business concern owned and controlled by service-dis24 abled veterans. 

25 ‘‘(h) ENFORCEMENT; PENALTIES.— 


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1 ‘‘(1) VERIFICATION OF ELIGIBILITY.—In car2 rying out this section, the Administrator shall estab3 lish procedures relating to— 

4 ‘‘(A) the filing, investigation, and disposi5 tion by the Administration of any challenge to 

6 the eligibility of a small business concern to re7 ceive assistance under this section (including a 

8 challenge, filed by an interested party, relating 

9 to the veracity of a certification made or infor10 mation provided to the Administration by a 

11 small business concern under subsection (b)); and 

12 ‘‘(B) verification by the Administrator of 

13 the accuracy of any certification made or infor14 mation provided to the Administration by a 

15 small business concern under subsection (b). 

16 ‘‘(2) EXAMINATIONS.— 

17 ‘‘(A) EXAMINATION OF APPLICANTS.—The 

18 procedures established under paragraph (1) shall 

19 provide for a program of examinations by the 

20 Administrator of any small business concern 

21 making a certification or providing information 

22 to the Administrator under subsection (b), to de23 termine the veracity of any statements or infor24 mation provided as part of such certification or 

25 otherwise provided under subsection (b). 


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1 ‘‘(B) EXAMINATION OF CERTIFIED CON2 CERNS.—The procedures established under para3 graph (1) shall provide for the examination of 

4 risk-based samples of small business concerns 

5 certified under subsection (b), or of any small 

6 business concern that the Administrator believes 

7 poses a particular risk or with respect to which 

8 the Administrator receives specific and credible 

9 information alleging that the small business con10 cern no longer meets eligibility requirements to 

11 be certified as a small business concern owned 

12 and controlled by service-disabled veterans. 

13 ‘‘(3) PENALTIES.—In addition to the penalties 

14 described in section 16(d), any small business concern 

15 that is determined by the Administrator to have mis16 represented the status of that concern as a small busi17 ness concern owned and controlled by service-disabled 

18 veterans for purposes of subsection (b), shall be subject 

19 to— 

20 ‘‘(A) section 1001 of title 18, United States 

21 Code; 

22 ‘‘(B) sections 3729 through 3733 of title 31, 

23 United States Code; and 

24 ‘‘(C) section 8127(g) of title 38, United 

25 States Code. 


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1 ‘‘(i) PROVISION OF DATA.—Upon the request of the Ad2 ministrator, the head of any Federal department or agency 

3 shall promptly provide to the Administrator such informa4 tion as the Administrator determines to be necessary to 

5 carry out subsection (b) or to be able to certify the status 

6 of the concern as a small business concern owned and con7 trolled by veterans under section 36A.’’. 

8 (b) PENALTIES FOR MISREPRESENTATION.—Section 

9 16 of the Small Business Act (15 U.S.C. 645) is amended— 

10 (1) in subsection (d)(1)— 

11 (A) by striking ‘‘,, a’’ and inserting ‘‘, a 

12 ‘small business concern owned and controlled by 

13 service-disabled veterans’, a ‘small business con14 cern owned and controlled by veterans’, a’’; and 

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

16 31’’ and inserting ‘‘8, 9, 15, 31, 36, or 36A’’; 

17 and 

18 (2) in subsection (e), by striking ‘‘,, a’’ and in19 serting ‘‘, a ‘small business concern owned and con20 trolled by service-disabled veterans’, a ‘small business 

21 concern owned and controlled by veterans’, a’’. 


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1 SEC. 6. CERTIFICATION FOR SMALL BUSINESS CONCERNS 

2 OWNED AND CONTROLLED BY VETERANS. 

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

4 amended by inserting after section 36 the following new sec5 tion: 

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

7 OWNED AND CONTROLLED BY VETERANS. 

8 ‘‘(a) IN GENERAL.—With respect to the program estab9 lished under section 8127 of title 38, United States Code, 

10 the Administrator shall— 

11 ‘‘(1) certify the status of the concern as a ‘small 

12 business concern owned and controlled by veterans’; 

13 and 

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

15 status. 

16 ‘‘(b) ENFORCEMENT; PENALTIES.— 

17 ‘‘(1) VERIFICATION OF ELIGIBILITY.—In car18 rying out this section, the Administrator shall estab19 lish procedures relating to— 

20 ‘‘(A) the filing, investigation, and disposi21 tion by the Administration of any challenge to 

22 the eligibility of a small business concern to re23 ceive assistance under this section (including a 

24 challenge, filed by an interested party, relating 

25 to the veracity of a certification made or infor26 mation provided to the Administration by a 


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1 small business concern under subsection (a)); 

2 and 

3 ‘‘(B) verification by the Administrator of 

4 the accuracy of any certification made or infor5 mation provided to the Administration by a 

6 small business concern under subsection (a). 

7 ‘‘(2) EXAMINATION OF APPLICANTS.—The proce8 dures established under paragraph (1) shall provide 

9 for a program of examinations by the Administrator 

10 of any small business concern making a certification 

11 or providing information to the Administrator under 

12 subsection (a), to determine the veracity of any state13 ments or information provided as part of such certifi14 cation or otherwise provided under subsection (a). 

15 ‘‘(3) PENALTIES.—In addition to the penalties 

16 described in section 16(d), any small business concern 

17 that is determined by the Administrator to have mis18 represented the status of that concern as a small busi19 ness concern owned and controlled by veterans for 

20 purposes of subsection (a), shall be subject to— 

21 ‘‘(A) section 1001 of title 18, United States 

22 Code; 

23 ‘‘(B) sections 3729 through 3733 of title 31, 

24 United States Code; and 


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1 ‘‘(C) section 8127(g) of title 38, United 

2 States Code.’’. 

3 SEC. 7. STATUS OF SELF-CERTIFIED SMALL BUSINESS CON4 CERNS OWNED AND CONTROLLED BY SERV5 ICE-DISABLED VETERANS. 

6 (a) IN GENERAL.—Notwithstanding any other provi7 sion of law, any small business concern that self-certified 

8 as a small business concern owned and controlled by serv9 ice-disabled veterans shall— 

10 (1) if the concern files a certification application 

11 with the Administrator of the Small Business Admin12 istration before the end of the 1-year period beginning 

13 on the transfer date, maintain such self-certification 

14 until the Administrator makes a determination with 

15 respect to such certification; and 

16 (2) if the concern does not file such a certifi17 cation application before the end of the 1-year period 

18 beginning on the transfer date, lose, at the end of such 

19 1-year period, any self-certification of the concern as 

20 a small business concern owned and controlled by 

21 service-disabled veterans. 

22 (b) NON-APPLICABILITY TO DEPARTMENT OF VET23 ERANS AFFAIRS.—Subsection (a) shall not apply to partici24 pation in contracts (including subcontracts) with the De25 partment of Veterans Affairs. 


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

2 small business concern that self-certified as a small business 

3 concern owned and controlled by service-disabled veterans 

4 about the requirements of this Act, including the transfer 

5 date and any extension of such transfer date made pursuant 

6 to section 2, and make such notice publicly available, on— 

7 (1) the date of the enactment of this Act; and 

8 (2) the date on which an extension described 

9 under section 2 is approved. 

10 SEC. 8. TRANSFER OF THE CENTER FOR VERIFICATION AND 

11 EVALUATION OF THE DEPARTMENT OF VET12 ERANS AFFAIRS TO THE SMALL BUSINESS AD13 MINISTRATION. 

14 (a) ABOLISHMENT.—The Center for Verification and 

15 Evaluation of the Department of Veterans Affairs defined 

16 under section 74.1 of title 38, Code of Federal Regulations, 

17 is abolished effective on the transfer date. 

18 (b) TRANSFER OF FUNCTIONS.—All functions that, im19 mediately before the effective date of this section, were func20 tions of the Center for Verification and Evaluation shall— 

21 (1) on the date of enactment of this Act, be func22 tions of both the Center for Verification and Evalua23 tion and the Small Business Administration, except 

24 that the Small Business Administration shall not 

25 have any authority to carry out any verification 


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1 functions of the Center for Verification and Evalua2 tion; and 

3 (2) on the transfer date, be functions of the 

4 Small Business Administration. 

5 (c) TRANSFER OF ASSETS.—So much of the personnel, 

6 property, records, and unexpended balances of appropria7 tions, allocations, and other funds employed, used, held, 

8 available, or to be made available in connection with a 

9 function transferred under this section shall be available to 

10 the Small Business Administration at such time or times 

11 as the President directs for use in connection with the func12 tions transferred. 

13 (d) REFERENCES.—Any reference in any other Federal 

14 law, Executive order, rule, regulation, or delegation of au15 thority, or any document of or pertaining to a function of 

16 the Center for Verification and Evaluation that is trans17 ferred under this section is deemed, after the transfer date, 

18 to refer to the Small Business Administration. 

19 SEC. 9. REPORT. 

20 Not later than the end of the 1-year period beginning 

21 on the date of the enactment of this Act, and every 6 months 

22 thereafter until the transfer date, the Administrator of the 

23 Small Business Administration and Secretary of Veterans 

24 Affairs shall jointly issue a report to the Committees on 

25 Appropriations, Small Business, and Veterans’ Affairs of 


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1 the House of Representatives and the Committees on Appro2 priations, Small Business and Entrepreneurship, and Vet3 erans’ Affairs of the Senate on the planning for the transfer 

4 of functions and property required under this Act and the 

5 amendments made by this Act on the transfer date. Such 

6 report shall include— 

7 (1) whether and how the verification database 

8 and operations of the Center for Verification and 

9 Evaluation of the Department of Veterans Affairs will 

10 be incorporated into the existing certification data11 base of the Small Business Administration; 

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

13 terms of fiscal year, of— 

14 (A) already verified concerns that will come 

15 up for recertification; and 

16 (B) self-certified concerns that are expected 

17 to apply for certification; 

18 (3) an explanation of how outreach to veteran 

19 service organizations, the service-disabled veteran20 owned and veteran-owned small business community, 

21 and other stakeholders will be conducted; and 

22 (4) other pertinent information determined by 

23 the Administrator and the Secretary. 


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Union Calendar No. 225 

116TH CONGRESS 

1ST SESSION H. R. 1615 

[Report No. 116–280, Part I] 

A BILL 

To transfer the responsibility of verifying small 

Business Administration, and for other purposes. erans or service-disabled veterans to the Small business concerns owned and controlled by vetNOVEMBER 12, 2019 

Reported from the Committee on Small Business with an 

amendment 

NOVEMBER 12, 2019 

Committee on Veterans’ Affairs discharged; committed to 

Union and ordered to be printed the Committee of the Whole House on the State of the 


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