‘‘(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 
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‘‘(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 
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‘‘(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. 
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‘‘(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; 
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‘‘(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) DETERMINATION BY HEAD OF DE-
PARTMENT
OR
AGENCY.—Until such time as 
the Administrator completes the identification 
of industries required by subparagraph (A), the 
determination as to whether an industry is one 
in which small business concerns owned and 
controlled by women are under-represented in 
Federal contracting shall be made by the head 
of the department or agency for which the con-
tract is to be performed. 
‘‘(C) DEADLINE.—Not later than 90 days 
after the date of the enactment of this subpara-
graph, the Administrator shall— 
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‘‘(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 
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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: 
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‘‘(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. ALLOWING SMALL BUSINESS CONCERNS THAT 
ARE NOT HUBZONE PROGRAM PARTICIPANTS 
TO PROTEST HUBZONE AWARDS. 
Section 31(c) of the Small Business Act (15 U.S.C. 
657a(c)) is amended by adding at the end the following 
new paragraph: 
‘‘(5) PROTESTS
BY
SMALL
BUSINESS
CON-
CERNS.—For purposes of this subsection, the term 
‘interested party’ shall include any small business 
concern.’’. 
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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. 
(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 
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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 
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.— 
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(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 
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.’’. 
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SEC. 504. ALLOWING SMALL BUSINESS CONCERNS THAT 
ARE NOT SECTION 8(A) PROGRAM PARTICI-
PANTS TO PROTEST SECTION 8(A) AWARDS. 
Section 8(a) of the Small Business Act (15 U.S.C. 
637(a)) is amended by adding at the end the following 
new paragraph: 
‘‘(22) Rules similar to the rules of paragraphs 
(5) and (6) of subsection (m) shall apply for pur-
poses of this subsection.’’. 
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-
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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.’’. 
Æ 
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