I 

113TH CONGRESS 

1ST SESSION H. R. 1088 

To require the Secretary of Transportation to develop a rule that does 

not allow Federal funds under the disadvantaged business enterprise 

program to be used for any enterprise that is no longer eligible under 

such program, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 12, 2013 

Ms. HERRERA BEUTLER introduced the following bill; which was referred to 

the Committee on Transportation and Infrastructure, 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 require the Secretary of Transportation to develop a 

rule that does not allow Federal funds under the disadvantaged business enterprise program to be used for 

any enterprise that is no longer eligible under such program, 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. 

4 This Act may be cited as the ‘‘Cheating Doesn’t Pay 

5 Act’’. 


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1 SEC. 2. RULE REGARDING DISADVANTAGED BUSINESS EN2 TERPRISE. 

3 (a) IN GENERAL.—Except as provided in subsection 

4 (b), not later than 90 days after the date of enactment 

5 of this Act, the Secretary of Transportation shall issue a 

6 rule that— 

7 (1) does not allow Federal funds under the dis8 advantaged business enterprise program, described 

9 in section 1101(b) of MAP–21 (23 U.S.C. 101 

10 note), to be used for any enterprise that is no longer 

11 eligible under such program; 

12 (2) 90 days after the date of enactment of this 

13 Act, each grant award, contract, or subcontract 

14 under the disadvantaged business enterprise pro15 gram prohibits any Federal funds under the pro16 gram to be provided to an enterprise as soon as the 

17 enterprise is no longer eligible under such program; 

18 (3) recuperates any unobligated funds made 

19 available under the disadvantaged business enter20 prise program to any enterprise no longer eligible 

21 under the program; and 

22 (4) ensures that if a disadvantaged business en23 terprise is no longer eligible to receive funds under 

24 the program, the Secretary shall take such measures 

25 as are practicable to expedite bidding with other eliVerDate Mar 14 2013 18:15 Mar 15, 2013 Jkt 029200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1088.IH H1088

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1 gible enterprises to complete any project started by 

2 the no longer eligible enterprise. 

3 (b) GRADUATION EXCEPTION.—If a disadvantaged 

4 business enterprise is no longer eligible to receive funds 

5 under the program solely on the basis of its size, the Sec6 retary shall allow such entity to complete any existing 

7 projects but shall not allow such enterprise to be eligible 

8 for additional funds for any new projects unless the State 

9 in which the enterprise is located recertifies it in accord10 ance with section 1101(b) of MAP–21 (23 U.S.C. 101 

11 note). 

Æ 


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