SEC. 2. CLARIFICATION OF RESPONSIBILITY OF SEC-
RETARY OF VETERANS AFFAIRS TO VERIFY 
SMALL BUSINESS OWNERSHIP. 
(a) CLARIFICATION.—Subsection (f) of section 8127 
of title 38, United States Code, is amended— 
(1) in paragraph (2)— 
(A) by inserting ‘‘(A)’’ before ‘‘To be eligi-
ble’’; 
(B) by inserting after ‘‘or the veteran.’’ the 
following new sentence: ‘‘Application for inclu-
sion in the database shall constitute permission 
under section 552a of title 5 (commonly re-
ferred to as the Privacy Act) for the Secretary 
to access such personal information maintained 
by the Secretary as may be necessary to verify 
the information contained in the application.’’; 
and 
(C) by inserting after the sentence added 
by subparagraph (B) the following new sub-
paragraph: 
‘‘(B) If the Secretary receives an application for 
inclusion in the database from an individual whose 
status as a veteran cannot be verified because the 
Secretary does not maintain information with re-
spect to the veteran status of the individual, the Sec-
retary may not include the small business concern 
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owned or controlled by the individual in the database 
maintained by the Secretary until the Secretary re-
ceives such information as may be necessary to 
verify that the individual is a veteran.’’; and 
(2) by amending paragraph (4) to read as fol-
lows: 
‘‘(4) No small business concern may be listed in the 
database until the Secretary has verified that— 
‘‘(A) the small business concern is owned and 
controlled by veterans; and 
‘‘(B) in the case of a small business concern for 
which the person who owns or controls the concern 
indicates that the person is a veteran with a service- 
connected disability, that the person is a veteran 
with a service-connected disability.’’. 
(b) APPLICABILITY.—In the case of a small business 
concern included in the database as of the date of the en-
actment of this Act for which, as of such date, the Sec-
retary of Veterans Affairs has not verified the status of 
such concern in accordance with paragraph (4) of sub-
section (f) of section 8127 of title 38, United States Code, 
as amended by subsection (a), not later than 60 days after 
the date of the enactment of this Act, the Secretary shall 
notify the person who owns or controls the concern that— 
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(1) the Secretary is required to verify the status 
of the concern in accordance with such paragraph; 
(2) verification of such status shall require that 
the person who owns or controls the concern apply 
for inclusion in the database in accordance with such 
subsection, as so amended; 
(3) application for inclusion in the database 
shall constitute permission under section 552a of 
title 5, United States Code (commonly referred to as 
the Privacy Act), for the Secretary to access such 
personal information maintained by the Secretary as 
may be necessary to verify the information contained 
in the application; and 
(4) the person who owns or controls the concern 
must submit to the Secretary an affirmative ac-
knowledgment of the requirement under paragraph 
(3) within 90 days of receiving the Secretary’s notice 
of such requirement or the concern shall be removed 
from the database. 
Æ 
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