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ment, and Remediation Services), 61 (Edu-
cation Services), 62 (Health Care and Social 
Assistance), 71 (Arts, Entertainment, and 
Recreation), 72 (Accommodation and Food 
Services), and 81 (Other Services). 
‘‘(C) DEADLINE.—Not later than 90 days 
after the date of the enactment of this subpara-
graph, the Administrator shall— 
‘‘(i) ensure the completion of the first 
study required by subparagraph (A); 
‘‘(ii) approve national certifying enti-
ties 
for 
the 
purposes 
of 
paragraph 
(2)(B)(ii); 
‘‘(iii) establish procedures required by 
paragraph (5)(A); and 
‘‘(iv) establish standards described in 
paragraph (2)(B)(iii).’’; 
(2) in paragraph (5), by striking ‘‘(2)(F)’’ in 
each place it appears and inserting ‘‘(2)(B)’’; and 
(3) in paragraph (5), by adding at the end the 
following new subparagraph: 
‘‘(D) PROTESTS BY SMALL BUSINESS CON-
CERNS.—For purposes of this paragraph, the 
term ‘interested party’ shall include any small 
business concern.’’. 
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TITLE IV—STRENGTHENING 
COMMUNITY DEVELOPMENT 
SEC. 401. ON-SITE VERIFICATION. 
Section 31(b) of the Small Business Act (15 U.S.C. 
657a(b)) is amended by adding at the end the following: 
‘‘(5) ON-SITE VERIFICATION OF STATUS.— 
‘‘(A) VERIFICATION.—When a small busi-
ness concern that has previously been awarded 
a contract under paragraph (2)(A) or (2)(B) is 
to be awarded a second contract under para-
graph (2)(A) or (2)(B), the Administrator shall 
perform an on-site inspection to determine 
whether such small business concern is a quali-
fied HUBZone small business concern. This 
paragraph does not require such an inspection 
before the award of a third or subsequent con-
tract. This paragraph does not prevent a second 
contract from being awarded before such in-
spection is completed. 
‘‘(B) NOTIFICATION BY SMALL BUSINESS 
CONCERN.—The Administrator shall require a 
small business concern to notify the Adminis-
trator, prior to being awarded a second contract 
under paragraph (2)(A) or (2)(B), of such busi-
ness concern’s attempt to be awarded a second 
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contract under paragraph (2)(A) or (2)(B). Not 
later than 90 days after the date of the enact-
ment of this subparagraph, the Administrator 
shall establish procedures to implement this 
subparagraph.’’. 
SEC. 402. LIMITATION ON CONSTRUCTION CONTRACTS. 
Section 31(b) of the Small Business Act (15 U.S.C. 
657a(b)) is amended by adding at the end the following: 
‘‘(6) LIMIT HUBZONE PROGRAM CONSTRUCTION 
CONTRACTS IN OR NEAR A HUBZONE.—A small busi-
ness concern may not obtain a construction contract 
by reason of the HUBZone program unless the con-
struction project is located in or near the HUBZone 
in which the small business concern has its principal 
place of business. The Administrator shall prescribe 
standards for determining when a project is located 
‘near’ a HUBZone for purposes of this paragraph, 
except that under no circumstances can a project lo-
cated more than 150 miles from a HUBZone be lo-
cated ‘near’ that HUBZone.’’. 
SEC. 403. STUDY ON EFFECTIVENESS OF HUBZONE PRO-
GRAM IN REACHING RURAL AREAS. 
The Administrator of the Small Business Administra-
tion shall carry out a study on the effectiveness of the 
HUBZone program in reaching rural areas to determine 
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whether there are needy areas that do not qualify under 
the program and whether there are areas that currently 
qualify under the program that are inconsistent with the 
program’s original intent. Not later than 6 months after 
the date of the enactment of this Act, the Administrator 
shall submit to Congress a report containing the results 
of the study and any recommendations that the Adminis-
trator considers appropriate for alternative ways to evalu-
ate eligibility for HUBZones in rural areas. 
TITLE V—MODERNIZING THE 
8(a) PROGRAM 
SEC. 501. MODERNIZING THE SECTION 8(a) PROGRAM NET 
WORTH LIMITATIONS. 
(a) MODIFICATIONS TO 8(a) PROGRAM.—Notwith-
standing any provision of the Small Business Act (15 
U.S.C. 631 et seq.), the Administrator shall administer 
the program under section 8(a) of such Act with the fol-
lowing modifications: 
(1) DETERMINATION
FOR
TERM
OF
PRO-
GRAM.—For the purpose of this section, an indi-
vidual who has been determined by the Adminis-
trator to be economically disadvantaged at the time 
of program entry shall be deemed to be economically 
disadvantaged for the term of the program. 
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(2) MATTERS EXCLUDED.—In determining per-
sonal net worth, the Administrator shall exclude 
from such determination the following: 
(A) The value of any investment of an eco-
nomically disadvantaged owner in the small 
business concern, except that such value shall 
be taken into account under this paragraph 
when comparing such concerns to other con-
cerns in the same business area that are owned 
by other than socially disadvantaged individ-
uals. 
(B) The equity of an economically dis-
advantaged owner in a primary personal resi-
dence. 
(3) MAXIMUM NET WORTH.—When considering 
an individual’s net worth for the purpose of deter-
mining the degree of diminished credit and capital 
opportunities of such individual, the Administrator 
shall consider an individual net worth of $550,000 
or less as tending to show diminished credit and 
capital opportunities. 
(b) EFFECTIVE DATE FOR MODIFICATIONS TO THE 
8(a) PROGRAM.—This section shall apply with respect to 
small business concerns that apply to the program under 
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section 8(a) of the Small Business Act (15 U.S.C. 637(a)) 
after the date of the enactment of this Act. 
SEC. 502. EXTENSION OF THE SECTION 8(a) PROGRAM 
TERM. 
(a) PROGRAM TERM.—The program term for the pro-
gram under section 8(a) of the Small Business Act shall 
be 10 years. The first 6 years shall be the developmental 
phase, and the last 4 years shall be the transitional phase. 
(b) EFFECTIVE DATE FOR MODIFICATIONS TO THE 
8(a) PROGRAM.— 
(1) IN GENERAL.—This section shall apply with 
respect to small business concerns that apply to the 
program under section 8(a) of the Small Business 
Act (15 U.S.C. 637(a)) after the date of the enact-
ment of this Act. 
(2) TRANSITIONAL
RULE.—A small business 
concern participating in the program under section 
8(a) of such Act (15 U.S.C. 637(a)) may participate 
for not more than 10 years. 
SEC. 503. REPORT ON IMPLEMENTATION. 
Section 155 of the Small Business Reauthorization 
and Manufacturing Assistance Act of 2004 (15 U.S.C. 
657g) is amended by adding at the end the following: ‘‘An-
nually, concurrent with the submission of the Small Busi-
ness Administration’s budget request to the Congress, the 
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SEC. 505. EXAMINATION OF LIST OF GROUPS THE MEM-
BERS OF WHICH ARE PRESUMED TO BE SO-
CIALLY DISADVANTAGED FOR PURPOSES OF 
SMALL 
DISADVANTAGED 
BUSINESS 
PRO-
GRAM. 
The Administrator of the Small Business Administra-
tion shall examine the list of groups the members of which 
are presumed to be socially disadvantaged for purposes of 
the Small Disadvantaged Business program under section 
8(a) of the Small Business Act and shall consider whether 
the list should be updated to include additional groups. 
Not later than 6 months after the date of the enactment 
of this Act, the Administrator shall submit to Congress 
a report on the results of the examination. 
TITLE VI—OTHER MATTERS 
SEC. 601. AFFILIATION FOR CERTAIN FRANCHISES. 
Section 3(a) of the Small Business Act (15 U.S.C. 
632(a)) is amended by adding at the end the following 
new paragraph: 
‘‘(5) SPECIAL RULE RELATING TO FRANCHISES 
IN
THE
TEMPORARY
EMPLOYEE
SERVICES
INDUS-
TRY.—In determining whether a franchisee is affili-
ated with a franchisor in the temporary employee 
services industry, the Administrator shall— 
‘‘(A) disregard— 
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‘‘(i) whether the franchisor finances 
the payroll of the temporary staffing per-
sonnel (including billing, collecting, and re-
mitting client fees); and 
‘‘(ii) whether the temporary staffing 
personnel are treated as employees or inde-
pendent contractors of the franchisor for 
tax or other purposes; and 
‘‘(B) consider the processing of payroll and 
billing by a franchisor as customary and com-
mon practice in the temporary employee serv-
ices industry that does not provide probative 
weight.’’. 
SEC. 602. SENSE OF THE HOUSE OF REPRESENTATIVES ON 
ACQUISITIONS CONDUCTED UNDER THE GEN-
ERAL 
SERVICES 
ADMINISTRATION’S 
FED-
ERAL SUPPLY SCHEDULE. 
(a) FINDINGS.—Congress finds the following: 
(1) The Small Business Act was adopted by 
Congress to ensure that small business concerns re-
ceive fair access to, and a fair share of, Federal gov-
ernment contracts and subcontracts. 
(2) There is a disagreement between the Gen-
eral Services Administration and the Small Business 
Administration on whether the Small Business Act 
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applies to the acquisitions under the General Serv-
ices Administration’s Federal Supply Schedule, 
which account for over $30,000,000,000 in procure-
ment dollars awarded each year. 
(3) As demonstrated in proceedings of the 
White House Acquisition Advisory Panel, small busi-
nesses hold 79.6 percent of contracts under the Fed-
eral Supply Schedule, but receive only 37.1 percent 
of dollars awarded under the Federal Supply Sched-
ule, and this disparity has a significant impact on 
the competitive viability of small business concerns 
in government contracting. 
(b) SENSE OF THE HOUSE.—Therefore, it is the 
sense of the House of Representatives that small business 
set-asides should not be excluded from any acquisitions 
under the General Services Administration’s Federal Sup-
ply Schedule. 
SEC. 603. STUDY ON FRIVOLOUS PROTESTS. 
(a) STUDY.—The Administrator of the Small Busi-
ness Administration shall conduct a study to determine, 
with respect to small business contracts, whether incum-
bent Federal contractors submit frivolous protests to ex-
tend the length of current contracts before protest deci-
sions are resolved. 
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(b) CONTENTS.—In conducting the study, the Ad-
ministrator shall— 
(1) determine the number of Government Ac-
countability Office bid protests and Small Business 
Administration size protests filed by incumbent Fed-
eral contractors with respect to small business con-
tracts, the number of incumbent contracts extended 
because of the protest, the extra costs of extending 
incumbent contracts during the protest, and the 
final rulings of these protests; 
(2) determine the financial impact of protests 
filed by incumbent Federal contractors on small 
businesses that were originally awarded the pro-
tested small business contracts, including costs asso-
ciated with defending the protests and costs incurred 
by Federal agencies; 
(3) identify the incumbent Federal contractors 
that file the most unsuccessful protests on small 
business contracts; and 
(4) develop recommendations— 
(A) to ease any financial burden on small 
businesses during the protest of small business 
contracts; and 
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(B) to discourage frivolous protests by in-
cumbent Federal contractors on small business 
contracts. 
(c) CONSULTATION.—In conducting the study, the 
Administrator shall consult with the Government Account-
ability Office, any necessary Federal agencies, and the Of-
fice of Federal Procurement Policy. 
(d) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Administrator shall sub-
mit to Congress a report on the results of the study, to-
gether with the recommendations developed under sub-
section (b)(4). 
SEC. 604. SMALL BUSINESS ADMINISTRATION LIAISON. 
(a) ESTABLISHMENT.—The Administrator of the 
Small Business Administration shall create a liaison posi-
tion whose duty it is to ensure that section 2(i) of the 
Small Business Act is carried out. 
(b) FUNCTIONS.—In carrying out the duty described 
in subsection (a), the liaison shall consult with the Assist-
ant Secretary of the Department of Homeland Security 
for United States Immigration and Customs Enforcement. 
SEC. 605. PROHIBITION ON BUSINESS-CLASS OR FIRST- 
CLASS AIRLINE TRAVEL. 
In carrying out the provisions of the Small Business 
Contracting Program Improvements Act, the Small Busi-
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ness Administrator or any employee may not purchase 
business-class or first-class airline travel in contravention 
of sections 301–10.122 through 301–10.124 of title 41, 
Code of Federal Regulations. 
Passed the House of Representatives October 30, 
2007. 
Attest: 
LORRAINE C. MILLER, 
Clerk. 
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