I 
115TH CONGRESS 
1ST SESSION H. R. 2592 
To amend the definitions relating to HUBZones in the Small Business Act, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 22, 2017 
Ms. VELA´ZQUEZ introduced the following bill; which was referred to the 
Committee on Small Business 
A BILL 
To amend the definitions relating to HUBZones in the Small 
Business Act, 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 ‘‘Expanding the Impact 
of the HUBZone Program Act of 2017’’. 
SEC. 2. AMENDMENTS TO HUBZONE DEFINITIONS. 
(a) IN GENERAL.—Section 3(p) of the Small Busi-
ness Act (15 U.S.C. 632(p)) is amended— 
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(1) in paragraph (1) by inserting ‘‘designated 
on a map by the Administrator that is’’ after ‘‘any 
area’’; 
(2) in paragraph (4)— 
(A) by amending clause (ii) of subpara-
graph (D) to read as follows: 
‘‘(ii) LIMITATION.—With respect to a 
base closure area that is a census tract or 
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 Administrator makes a 
final determination as to whether or not to 
implement the applicable designation de-
scribed in subparagraph (A) or (B) in ac-
cordance with the results of the decennial 
census conducted after the area was ini-
tially designated as a base closure area.’’; 
(B) 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 
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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-
dent declared the major disaster or the 
catastrophic incident occurred. 
‘‘(ii) DURATION.—A census tract or 
nonmetropolitan county shall be considered 
to be a qualified disaster area only for the 
period of time ending on the date on which 
the Administrator makes a final deter-
mination as to whether or not to imple-
ment the applicable designation described 
in subparagraph (A) or (B) in accordance 
with the results of the decennial census 
conducted after the area was initially des-
ignated as a qualified disaster area and be-
ginning— 
‘‘(I) in the case of a major dis-
aster declared by the President, on 
the date the President declared the 
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major disaster for the area in which 
the census tract or nonmetropolitan 
county, as applicable, is located; or 
‘‘(II) in the case of a cata-
strophic incident, on the date on 
which the catastrophic incident oc-
curred in the area in which the census 
tract or nonmetropolitan county, as 
applicable, is located. 
‘‘(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-
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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).’’; and 
(3) by amending paragraph (5) to read as fol-
lows: 
‘‘(5) QUALIFIED
HUBZONE
SMALL
BUSINESS 
CONCERN.—The term ‘qualified HUBZone small 
business concern’ means a HUBZone small business 
concern that has been certified by the Administrator 
in accordance with the procedures described in sec-
tion 31.’’. 
(b) 
DETERMINATION
OF
CERTAIN
QUALIFIED 
AREAS.—The Administrator of the Small Business Ad-
ministration shall make any determination as to whether 
or not to implement the applicable designation described 
in subparagraph (A) or (B) of section 3(p)(4) of the Small 
Business Act (15 U.S.C. 632(p)(4)) immediately after the 
Census Bureau publicly releases the first results from the 
decennial census that occurs after the date of the enact-
ment of this Act. 
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(c) TECHNICAL AMENDMENTS.—Section 3(p)(4)(B) 
of the Small Business Act (15 U.S.C. 632(p)(4)(B)) is 
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. 3. 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. 4. AMENDMENTS TO HUBZONE PROGRAM. 
(a) CLARIFICATIONS TO ELIGIBILITY FOR HUBZONE 
PROGRAM.—Section 31(c) of the Small Business Act (15 
U.S.C. 657a(c)) is amended to read as follows: 
‘‘(c) 
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-
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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 
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 
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(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 to 
the Administration by a HUBZone small busi-
ness concern under paragraph (1). 
‘‘(3) TIMING.—The Administrator shall com-
plete the verification procedures described in para-
graph (2) in a reasonable time, not later than 30 
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 biennial and random program examinations 
of qualified HUBZone small business concerns to 
ensure that such a concern meets the requirements 
of paragraph (1). 
‘‘(5) LENGTH OF ELIGIBILITY.— 
‘‘(A) IN GENERAL.—A certification given 
to a qualified HUBZone small business concern 
under paragraph (1) shall be valid for a period 
of not more than 10 years. 
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‘‘(B) RECERTIFICATION.—At the end of 
the period described in subparagraph (A), a 
HUBZone small business concern that meets 
the requirements of paragraph (1) may apply to 
be recertified as a qualified HUBZone small 
business concern by the Administrator for a 
subsequent period of not more than 10 years. 
‘‘(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 60 days to submit documentation to 
the Administrator to be recertified as a qualified 
HUBZone small business concern. During the 60- 
day period, such concern may not compete for or be 
awarded a contract under this section. If such con-
cern fails to meet the requirements of paragraph (1) 
by the last day of the 60-day period, such concern 
will not be certified as a qualified HUBZone small 
business concern. 
‘‘(7) HUBZONE MAPS.—The Administrator shall 
annually update maps designating HUBZones and 
the Administrator may annually designate new 
HUBZones pursuant to subparagraph (C), (D), or 
(E) of section 3(p)(4). 
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‘‘(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-
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-
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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 (d) as sub-
section (e); and 
(3) by inserting after subsection (c) the fol-
lowing new subsection: 
‘‘(d) 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) REPORT.—Not later than 90 days after 
the last date of each fiscal year, the Administrator 
shall submit to the Committee on Small Business 
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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-
formed under subsection (c)(4), and the number 
of those concerns that did not submit docu-
mentation to be recertified under subsection 
(c)(5)(B).’’. 
(c) AUTHORIZATION OF APPROPRIATIONS.—Section 
31(e) of the Small Business Act (15 U.S.C. 657a), as re-
designated by subsection (b), is amended by striking ‘‘fis-
cal years 2004 through 2006’’ and inserting ‘‘fiscal years 
2017 through 2020’’. 
SEC. 5. CURRENT 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 
be deemed to be a ‘‘qualified HUBZone small business 
concern’’, as defined in section 3(p)(5) of the Small Busi-
ness Act, for a period not to exceed 10 years beginning 
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on the date on which the concern was first qualified. At 
the end of such period, the concern may reapply to be cer-
tified as qualified HUBZone small business concern pur-
suant to the procedures described in section 31(c) of the 
Small Business Act. 
Æ 
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