I 
115TH CONGRESS 
1ST SESSION H. R. 3294 
To amend the Small Business Act to clarify the definitions relating to 
HUBZones, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 19, 2017 
Ms. VELA´ZQUEZ (for herself and Mr. CHABOT) introduced the following bill; 
which was referred to the Committee on Small Business 
A BILL 
To amend the Small Business Act to clarify the definitions 
relating to HUBZones, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘HUBZone Unification 
and Business Stability Act of 2017’’. 
SEC. 2. TRANSFER OF HUBZONE DEFINITIONS. 
(a) REDESIGNATION.—Section 31 of the Small Busi-
ness Act (15 U.S.C. 657a) is amended by redesignating 
subsections (b), (c), and (d) as subsections (c), (d), and 
(e), respectively. 
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(b) TRANSFER.—Subsection (p) of section 3 of the 
Small Business Act (15 U.S.C. 632(p)) is transferred to 
section 31 of the Small Business Act (15 U.S.C. 657a), 
inserted so as to appear after subsection (a), and redesig-
nated as subsection (b), and is amended— 
(1) by striking ‘‘In this Act:’’ and inserting ‘‘In 
this section:’’; 
(2) in paragraph (1)— 
(A) by striking ‘‘term’’ and inserting 
‘‘terms’’; and 
(B) by striking ‘‘means’’ and inserting ‘‘or 
‘HUBZone’ mean’’; and 
(3) by striking paragraph (2) (and redesig-
nating subsequent paragraphs accordingly). 
(c) DEFINITION OF QUALIFIED HUBZONE SMALL 
BUSINESS CONCERN.—Section 3 of the Small Business 
Act (15 U.S.C. 632), as amended by subsection (a), is fur-
ther amended by inserting after subsection (o) the fol-
lowing new subsection (p): 
‘‘(p) QUALIFIED HUBZONE SMALL BUSINESS CON-
CERN.—In this Act, the term ‘qualified HUBZone small 
business concern’ has the meaning given such term in sec-
tion 31(b).’’. 
(d) CONFORMING AMENDMENTS.— 
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(1) 
MENTOR-PROTEGE
PROGRAM.—Section 
831(n)(2)(G) of the National Defense Authorization 
Act for Fiscal Year 1991 (Public Law 101–510; 104 
Stat. 1607; 10 U.S.C. 2302 note) is amended by 
striking ‘‘section 3(p) of the Small Business Act (15 
U.S.C. 632(p))’’ and inserting ‘‘section 31(b) of the 
Small Business Act (15 U.S.C. 657a(b))’’. 
(2) TITLE 10.—Section 2323 of title 10, United 
States Code, is amended by striking ‘‘section 3(p) of 
the Small Business Act’’ each place it appears and 
inserting ‘‘section 31(b) of the Small Business Act 
(15 U.S.C. 657a(b))’’. 
(3) SMALL BUSINESS ACT.—Section 8(d)(3)(G) 
of the Small Business Act (15 U.S.C. 637(d)(3)(G)) 
is amended by striking ‘‘section 3(p) of the Small 
Business Act’’ and inserting ‘‘section 31(b)’’. 
(4) COMPREHENSIVE
SMALL
BUSINESS
SUB-
CONTRACTING PLANS.—Section 834 of the National 
Defense Authorization Act for Fiscal Years 1990 
and 1991 (15 U.S.C. 637 note) is amended by strik-
ing ‘‘section 3(p)(5) of such Act (15 U.S.C. 
632(p)(5))’’ and inserting ‘‘section 31(b) of such Act 
(15 U.S.C. 657a(b))’’. 
(5) CONTRACTS FOR COLLECTION SERVICES.— 
Section 3718 of title 31, United States Code, is 
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amended by striking ‘‘section 3(p) of the Small 
Business Act’’ each place it appears and inserting 
‘‘section 31(b) of the Small Business Act’’. 
(6) TITLE 41.—Title 41, United States Code, is 
amended— 
(A) in section 1122, by striking ‘‘section 
3(p) of the Small Business Act (15 U.S.C. 
632(p))’’ each place it appears and inserting 
‘‘section 31(b) of the Small Business Act (15 
U.S.C. 657a(b))’’; and 
(B) in section 1713, by striking ‘‘section 
3(p) of the Small Business Act (15 U.S.C. 
632(p))’’ and inserting ‘‘section 31(b) of the 
Small Business Act (15 U.S.C. 657a(b))’’. 
(7) TITLE 49.—Title 49, United States Code, is 
amended— 
(A) in section 47107, by striking ‘‘section 
3(p) of the Small Business Act’’ each place it 
appears and inserting ‘‘section 31(b) of the 
Small Business Act (15 U.S.C. 657a(b))’’; and 
(B) in section 47113(a)(3), by striking 
‘‘section 3(p) of the Small Business Act (15 
U.S.C. 632(o))’’ and inserting ‘‘section 31(b) of 
the Small Business Act (15 U.S.C. 657a(b))’’. 
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SEC. 3. AMENDMENTS TO DEFINITIONS OF QUALIFIED CEN-
SUS TRACT AND QUALIFIED NONMETROPOLI-
TAN COUNTY. 
(a) IN GENERAL.—Paragraph (3) of section 31(b) of 
the Small Business Act (as transferred and redesignated 
by section 2 of this Act) is amended— 
(1) in subparagraph (A)— 
(A) by amending clause (i) to read as fol-
lows: 
‘‘(i) IN GENERAL.—The term ‘quali-
fied census tract’ means a qualified census 
tract as defined in section 42(d)(5)(B)(ii) 
of the Internal Revenue Code of 1986 that 
is reflected in an online tool prepared by 
the Administrator described under sub-
section (d)(7).’’; and 
(B) in clause (ii) by inserting ‘‘and that is 
reflected in the online tool described under 
clause (i)’’ after ‘‘such section’’; and 
(2) in subparagraph (B)— 
(A) by inserting ‘‘and that is reflected in 
the online tool described under subparagraph 
(A)(i)’’ after ‘‘any county’’; and 
(B) in clause (ii)— 
(i) in subclause (I), by striking ‘‘non-
metropolitan’’; and 
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(ii) by striking ‘‘the most recent data 
available’’ each place such term appears 
and inserting ‘‘a 5-year average of the 
available data’’. 
(b) TECHNICAL AMENDMENTS.—Paragraph (3)(B) 
of section 31(b) of the Small Business Act (as transferred 
and redesignated by section 2 of this Act), as amended 
by subsection (a), is further amended— 
(1) 
in 
clause 
(i), 
by 
striking 
‘‘section 
42(d)(5)(C)(ii) of the Internal Revenue Code of 
1986’’ and inserting ‘‘section 42(d)(5)(B)(ii) of the 
Internal Revenue Code of 1986’’; and 
(2) in clause (ii)(III), by striking ‘‘section 
42(d)(5)(C)(iii) of the Internal Revenue Code of 
1986’’ and inserting ‘‘section 42(d)(5)(B)(iii) of the 
Internal Revenue Code of 1986’’. 
SEC. 4. AMENDMENTS TO DEFINITIONS OF BASE CLOSURE 
AREA AND QUALIFIED DISASTER AREA. 
Paragraph (3) of section 31(b) of the Small Business 
Act (as transferred and redesignated by section 2 of this 
Act), as amended by section 3, is further amended— 
(1) by amending clause (ii) of subparagraph 
(D) to read as follows: 
‘‘(ii) LIMITATION.—With respect to a 
base closure area that is a census tract or 
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nonmetropolitan county described in clause 
(i), such census tract or nonmetropolitan 
shall be treated as a HUBZone for a pe-
riod beginning on the date the military in-
stallation undergoes final closure and end-
ing on the date the base closure area 
ceases to be a qualified census tract under 
subparagraph (A) or a qualified nonmetro-
politan county under subparagraph (B) in 
accordance with the online tool prepared 
by the Administrator described under sub-
section (d)(7).’’; and 
(2) by amending subparagraph (E) to read as 
follows: 
‘‘(E) QUALIFIED DISASTER AREA.— 
‘‘(i) IN GENERAL.—Subject to clauses 
(ii) and (iii), the term ‘qualified disaster 
area’ means any census tract or nonmetro-
politan county located in a major disaster 
area or an area in which a catastrophic in-
cident has occurred if such census tract or 
nonmetropolitan county ceased to be quali-
fied under subparagraph (A) or (B), as ap-
plicable, during the period beginning 5 
years before the date on which the Presi-
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‘‘(iii) EXTENSION.—With respect to a 
census tract or nonmetropolitan county 
that is a qualified disaster area because it 
is located in an area in which a cata-
strophic incident occurred, the Adminis-
trator may extend the period described in 
clause (ii) if the Administrator determines 
that the census tract or nonmetropolitan 
county has not fully recovered from the 
catastrophic incident. 
‘‘(iv) DEFINITIONS.—In this subpara-
graph: 
‘‘(I) MAJOR
DISASTER
AREA.— 
The term ‘major disaster area’ means 
an area for which the President has 
declared a major disaster under sec-
tion 401 of the Robert T. Stafford 
Disaster Relief and Emergency Assist-
ance Act (42 U.S.C. 5170). 
‘‘(II) OTHER DEFINITIONS.—The 
terms ‘census tract’ and ‘nonmetro-
politan county’ have the meanings 
given such terms in subparagraph 
(D)(iii).’’. 
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SEC. 5. AMENDMENT TO DEFINITION OF REDESIGNATED 
AREAS. 
Paragraph (3) of section 31(b) of the Small Business 
Act (as transferred and redesignated by section 2 of this 
Act), as amended by section 4, is further amended by 
amending subparagraph (C) to read as follows: 
‘‘(C) REDESIGNATED
AREA.—The term 
‘redesignated area’ means any census tract that 
ceases to be qualified under subparagraph (A) 
and any nonmetropolitan county that ceases to 
be qualified under subparagraph (B) for a pe-
riod of 3 years after the date on which the cen-
sus tract or nonmetropolitan county ceased to 
be so qualified.’’. 
SEC. 6. REPEAL OF 5-YEAR LIMITATION ON HUBZONE STA-
TUS OF BASE CLOSURE AREAS. 
Section 152(a) of title I of division K of the Consoli-
dated Appropriations Act, 2005 (15 U.S.C. 632 note) is 
amended by repealing paragraph (2). 
SEC. 7. AMENDMENT TO DEFINITION OF QUALIFIED 
HUBZONE SMALL BUSINESS CONCERN. 
Paragraph (4) of section 31(b) of the Small Business 
Act (as transferred and redesignated by section 2 of this 
Act) is amended to read as follows: 
‘‘(4) QUALIFIED
HUBZONE
SMALL
BUSINESS 
CONCERN.—The term ‘qualified HUBZone small 
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business concern’ means a HUBZone small business 
concern that has been certified by the Administrator 
in accordance with the procedures described in this 
section.’’. 
SEC. 8. AMENDMENTS TO HUBZONE PROGRAM. 
(a) CLARIFICATIONS TO ELIGIBILITY FOR HUBZONE 
PROGRAM.—Section 31(d) of the Small Business Act, as 
redesignated by section 2, is amended to read as follows: 
‘‘(d) 
ELIGIBILITY
REQUIREMENTS; 
ENFORCE-
MENT.— 
‘‘(1) CERTIFICATION.—In order to be certified 
by the Administrator as a qualified HUBZone small 
business concern, a HUBZone small business con-
cern shall submit documentation the Administrator 
stating that— 
‘‘(A) at the time of certification and at 
each examination conducted pursuant to para-
graph (4), the principal office of the concern is 
located in a HUBZone and not fewer than 35 
percent of its employees reside in a HUBZone; 
‘‘(B) the concern will attempt to maintain 
the applicable employment percentage under 
subparagraph (A) during the performance of 
any contract awarded to such concern on the 
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basis of a preference provided under subsection 
(b); and 
‘‘(C) the concern will ensure that the re-
quirements of section 46 are satisfied with re-
spect to any subcontract entered into by such 
concern pursuant to a contract awarded under 
this section. 
‘‘(2) VERIFICATION.—In carrying out this sec-
tion, the Administrator shall establish procedures re-
lating to— 
‘‘(A) the filing, investigation, and disposi-
tion by the Administration of any challenge to 
the eligibility of a HUBZone small business 
concern to receive assistance under this section 
(including a challenge, filed by an interested 
party, relating to the veracity of documentation 
provided to the Administration by such a con-
cern under paragraph (1)); and 
‘‘(B) verification by the Administrator of 
the accuracy of any documentation provided by 
a HUBZone small business concern under para-
graph (1). 
‘‘(3) TIMING.—The Administrator shall com-
plete the verification procedures described in para-
graph (2) in a reasonable time, not later than 30 
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days after the date on which the Administrator re-
ceives sufficient and complete documentation from a 
HUBZone small business concern under paragraph 
(1). 
‘‘(4) EXAMINATIONS.—The Administrator shall 
conduct 
program 
examinations 
of 
qualified 
HUBZone small business concerns, using a risk- 
based analysis to select such concerns, to ensure 
that each such concern meets the requirements of 
paragraph (1). 
‘‘(5) RECERTIFICATION.—The Administrator 
shall verify the accuracy of any documentation pro-
vided by a HUBZone small business concern under 
paragraph (1) to determine if such HUBZone small 
business concern is a qualified HUBZone small busi-
ness concern 3 years after the date that such 
HUBZone small business concern has been certified 
as a qualified HUBZone small business concern, and 
every 3 years thereafter. 
‘‘(6) LOSS
OF
CERTIFICATION.—A HUBZone 
small business concern that, based on the results of 
an examination conducted pursuant to paragraph 
(4) no longer meets the requirements of paragraph 
(1), shall have 30 days to submit documentation to 
the Administrator to be eligible to be certified as a 
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qualified HUBZone small business concern. During 
the 30-day period, such concern may not compete 
for or be awarded a contract under this section. If 
such concern fails to meet the requirements of para-
graph (1) by the last day of the 30-day period, such 
concern will not be certified as a qualified HUBZone 
small business concern. 
‘‘(7) HUBZONE ONLINE TOOL.— 
‘‘(A) IN
GENERAL.—The Administrator 
shall develop a publicly accessible online tool 
that depicts HUBZones. Such online tool shall 
be updated— 
‘‘(i) with respect to qualified areas de-
scribed under subparagraphs (A) and (B) 
of subsection (b)(3), beginning on January 
1, 2020, and every 5 years thereafter; 
‘‘(ii) with respect to qualified areas 
described under subsection (b)(3)(C), im-
mediately after an area ceases to be a re-
designated area; and 
‘‘(iii) with respect to qualified areas 
described under subparagraphs (D) and 
(E) of subsection (b)(3), immediately after 
an area is designated as a base closure 
area or a qualified disaster area. 
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‘‘(B) DATA.—The online tool required 
under subparagraph (A) shall clearly and con-
spicuously provide access to the data used by 
the Administrator to determine whether or not 
an area is a qualified area in the year in which 
the online tool was prepared. 
‘‘(C) NOTIFICATION OF UPDATE.—The Ad-
ministrator shall include in the online tool a no-
tification of the date on which the online tool, 
and the data used to create the online tool, will 
be updated. 
‘‘(8) LIST
OF
QUALIFIED
HUBZONE
SMALL 
BUSINESS CONCERNS.—The Administrator shall es-
tablish and maintain on the Internet a list of quali-
fied HUBZone small business concerns that shall— 
‘‘(A) to the extent practicable, include the 
name, address, and type of business with re-
spect to such concern; 
‘‘(B) be updated by the Administrator not 
less than annually; and 
‘‘(C) be provided upon request to any Fed-
eral agency or other entity. 
‘‘(9) PROVISION OF DATA.—Upon the request 
of the Administrator, the Secretary of Labor, the 
Administrator of the Federal Emergency Manage-
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ment Agency, the Secretary of Housing and Urban 
Development, and the Secretary of the Interior (or 
the Assistant Secretary for Indian Affairs), shall 
promptly provide to the Administrator such informa-
tion as the Administrator determines to be necessary 
to carry out this subsection. 
‘‘(10) PENALTIES.—In addition to the penalties 
described in section 16(d), any small business con-
cern that is determined by the Administrator to have 
misrepresented the status of that concern as a 
‘qualified HUBZone small business concern’ for pur-
poses of this section, shall be subject to liability for 
fraud, including section 1001 of title 18, United 
States Code, and sections 3729 through 3733 of 
title 31, United States Code.’’. 
(b) PERFORMANCE METRICS.—Section 31 of the 
Small Business Act (15 U.S.C. 657a) is amended— 
(1) in subsection (a), by inserting ‘‘, including 
promoting economic development in economically 
distressed areas (as defined in section 7(m)(11)),’’ 
after ‘‘assistance’’; 
(2) by redesignating subsection (e) (as redesig-
nated by section 2 of this Act) as subsection (f); and 
(3) by inserting after subsection (d) the fol-
lowing new subsection: 
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‘‘(e) PERFORMANCE METRICS.— 
‘‘(1) IN GENERAL.—Not later than 1 year after 
enactment of this Act, the Administrator shall pub-
lish performance metrics designed to measure the 
success of the HUBZone program established under 
this section in meeting the program’s objective of 
promoting economic development in economically 
distressed areas (as defined in section 7(m)(11)). 
‘‘(2) COLLECTING
AND
MANAGING
HUBZONE 
DATA.—The Administrator shall develop processes to 
incentivize regional offices of the Administration to 
collect and manage data on HUBZones within the 
geographic area served by such regional office. 
‘‘(3) REPORT.—Not later than 90 days after 
the last date of each fiscal year, the Administrator 
shall submit to the Committee on Small Business 
and Entrepreneurship of the Senate and the Com-
mittee on Small Business of the House of Rep-
resentatives a report— 
‘‘(A) analyzing the data from the perform-
ance metrics; and 
‘‘(B) including the number of HUBZone 
small business concerns that lost certification as 
a qualified HUBZone small business concern 
because of the results of an examination per-
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formed under subsection (d)(6), and the num-
ber of those concerns that did not submit docu-
mentation to be recertified under subsection 
(d)(7).’’. 
(c) AUTHORIZATION OF APPROPRIATIONS.—Section 
31(f) of the Small Business Act, as redesignated by sub-
section (b), is amended by striking ‘‘fiscal years 2004 
through 2006’’ and inserting ‘‘fiscal years 2017 through 
2020’’. 
SEC. 9. CURRENT QUALIFIED HUBZONE SMALL BUSINESS 
CONCERNS. 
A HUBZone small business concern that was quali-
fied pursuant to section 3(p)(5) of the Small Business Act 
on or before the date of the enactment of this Act shall 
continue to be considered as a qualified HUBZone small 
business concern during the period beginning on the date 
of the enactment of this Act and ending on the date that 
the Administrator of the Small Business Administration 
prepares the online tool depicting qualified areas described 
under section 31(d)(7) (as added by this Act). 
SEC. 10. EFFECTIVE DATE. 
The provisions of this Act shall take effect— 
(1) with respect to section 9, on the date of the 
enactment of this Act; and 
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(2) with respect to sections 1 through 8, on 
January 1, 2020. 
Æ 
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