(2) by striking ‘‘$3,000,000’’ and inserting 
‘‘$5,100,000’’. 
(c) SERVICE-DISABLED VETERAN PROGRAM.—Sec-
tion 36(a)(2) of such Act (15 U.S.C. 657f(a)(2)) is 
amended— 
(1) by striking ‘‘$5,000,000’’ and inserting 
‘‘$5,500,000’’; and 
(2) by striking ‘‘$3,000,000’’ and inserting 
‘‘$5,100,000’’. 
SEC. 205. EXPANDING PROTEST AUTHORIZATION. 
Section 8(a) of the Small Business Act (15 U.S.C. 
637(a)) is amended by adding at the end the following 
new paragraphs: 
‘‘(22) Rules similar to the rules of paragraphs 
(5) and (6) of subsection (m) shall apply for pur-
poses of this subsection. 
‘‘(23) For the purposes of challenging the eligi-
bility of a small business concern to receive an 
award under section 8(a), 8(m), 31(b)(2)(A), 
31(b)(2)(B), 36(a), or 36(b), the term ‘interested 
party’ shall include any small business concern.’’.
SEC. 206. PROHIBITION ON CONTRACT AWARDS TO CON-
TRACTORS IN VIOLATION OF IMMIGRATION 
LAWS. 
Any employer found, based on a determination by the 
Secretary of Homeland Security or the Attorney General 
to have engaged in a pattern or practice of hiring, recruit-
ing or referring for a fee, for employment in the United 
States an alien knowing the person is an unauthorized 
alien shall be subject to debarment from the receipt of fu-
ture Federal contracts under this Act. 
TITLE III—EXPANDING OPPOR-
TUNITIES FOR WOMEN EN-
TREPRENEURS 
SEC. 301. IMPLEMENT THE WOMEN’S PROCUREMENT PRO-
GRAM. 
Subsection (m) of section 8 of the Small Business Act 
(15 U.S.C. 637(m)) is amended— 
(1) by striking paragraphs (1) through (4) and 
inserting the following: 
‘‘(1) DEFINITION.—In this subsection, the term 
‘small business concern owned and controlled by 
women’ has the meaning given such term in section 
3(n), except that ownership shall be determined 
without regard to any community property law. 
‘‘(2) AUTHORITY TO RESTRICT COMPETITION.—
‘‘(A) IN
GENERAL.—In accordance with 
this subsection, a contracting officer may re-
strict competition for any contract for the pro-
curement of goods or services by the Federal 
Government to small business concerns owned 
and controlled by women, if— 
‘‘(i) each of the concerns is not less 
than 51 percent owned by 1 or more 
women who are economically disadvan-
taged (and such ownership is determined 
without regard to any community property 
law); 
‘‘(ii) the contracting officer has a rea-
sonable expectation that 2 or more small 
business concerns owned and controlled by 
women will submit offers for the contract; 
‘‘(iii) the contract is for the procure-
ment of goods or services with respect to 
an industry identified pursuant to para-
graph (4); 
‘‘(iv) in the estimation of the con-
tracting officer, the contract award can be 
made at a fair and reasonable price; and 
‘‘(v) each concern is certified in a 
manner described in subparagraph (B).
‘‘(B) ACCEPTANCE
OF
CERTIFICATION.— 
For purposes of subparagraph (A)(v), a con-
tracting officer is required to accept a small 
business concern’s certification as a small busi-
ness concern owned and controlled by women 
when such certification is made by— 
‘‘(i) a Federal agency or a State or 
local government; 
‘‘(ii) a national certifying entity ap-
proved by the Administrator; or 
‘‘(iii) the small business concern, 
when such concern certifies to the con-
tracting officer that it is a small business 
concern owned and controlled by women 
and provides adequate documentation in 
accordance with standards established by 
the Administrator to support such certifi-
cation. 
‘‘(3) WAIVER.—With respect to a small busi-
ness concern owned and controlled by women, the 
Administrator may waive paragraph (2)(A)(i) if— 
‘‘(A) such concern is in an industry identi-
fied pursuant to paragraph (4); and 
‘‘(B) the Administrator determines that 
such concern is in an industry in which small
business concerns owned and controlled by 
women are substantially under-represented in 
Federal contracting. 
‘‘(4) IDENTIFICATION OF INDUSTRIES.— 
‘‘(A) IN GENERAL.—Not less often than 
every five years, the Administrator shall con-
duct a study to identify, for purposes of para-
graphs (2)(A)(iii) and (3)(A), industries in 
which small business concerns owned and con-
trolled by women are under-represented in Fed-
eral contracting. The parameters for the study 
shall be as follows: 
‘‘(i) For purposes of this paragraph, 
the Administrator shall identify an indus-
try if, and only if, the share of Federal 
contracts awarded to small business con-
cerns owned and controlled by women in 
such industry is small relative to the prev-
alence of business concerns owned and con-
trolled by women in the pool of business 
concerns in such industry that have at 
least one employee. 
‘‘(ii) The study shall measure utiliza-
tion and availability by—
‘‘(I) using the two best available 
data sources; 
‘‘(II) including only business con-
cerns that have at least one employee; 
and 
‘‘(III) measuring only Federal 
contracts awarded for amounts over 
$25,000. 
‘‘(iii) The study shall include four sets 
of disparity measurement tables to com-
pute disparity ratios. The four sets are— 
‘‘(I) all business concerns in the 
United States relative to the number 
of Federal contracts awarded to small 
business concerns owned and con-
trolled by women; 
‘‘(II) small business concerns 
owned and controlled by women that 
have demonstrated an interest in or 
that have secured Federal contracts 
relative to the number of Federal con-
tracts awarded to small business con-
cerns owned and controlled by women; 
‘‘(III) all business concerns in 
the United States relative to the dol-
lar amounts of Federal contracts 
awarded to small business concerns 
owned and controlled by women; and 
‘‘(IV) small business concerns 
owned and controlled by women that 
have demonstrated an interest in or 
that have secured government con-
tracts relative to the dollar amounts 
of Federal contracts awarded. 
‘‘(B) UNDERREPRESENTED INDUSTRIES.— 
Until such time as the Administrator completes 
the identification of industries required by sub-
paragraph (A), the following industries, as iden-
tified by their 2-Digit North American Industry 
Classification System Code, are deemed under-
represented by women in Federal contracting: 
11 (Forestry), 21 (Mining), 22 (Utilities), 23 
(Construction), 31 (Manufacturing), 32 (Manu-
facturing), 33 (Manufacturing), 42 (Wholesale 
Trade), 44 (Retail Trade), 45 (Retail Trade), 
48 (Transportation), 49 (Transportation), 51 
(Information), 52 (Finance and Insurance), 53 
(Real Estate and Rental and Leasing), 54 (Pro-
fessional, Scientific, and Technical Services), 56 
(Administrative and Support, Waste Manage-
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.’’.
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
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
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.
Administrator shall submit to the Committee on Small 
Business and Entrepreneurship of the Senate and the 
Committee on Small Business of the House of Representa-
tives a report detailing progress the Administrator has 
made towards the implementation of this section.’’. 
SEC. 504. ASSISTANCE STUDY. 
(a) STUDY.—The Administrator of the Small Busi-
ness Administration shall conduct a study to determine 
what changes would be required to provide greater Federal 
contracting assistance to participants in the program cre-
ated by section 8(a) of the Small Business Act that have 
less equity in their business concerns than other partici-
pants in the program. 
(b) REPORT.—Not later than 6 months after the date 
of the enactment of this Act, the Administrator shall sub-
mit to the Committee on Small Business and Entrepre-
neurship of the Senate and the Committee on Small Busi-
ness of the House of Representatives a report detailing 
the results of the study described in subsection (a).
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—
‘‘(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
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.
(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
(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-
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: 
Clerk.
110TH CONGRESS 
1ST SESSION 
H. R. 3867 
AN ACT 
To update and expand the procurement programs 
of the Small Business Administration, and for 
other purposes.