Title: Expanding the Impact of the HUBZone Program Act of 2017
Policy area: Commerce

Summary:
Expanding the Impact of the HUBZone Program Act of 2017
This bill amends the Small Business Act to redefine terms relating to the Historically Underutilized Business Zone (HUBZone) program as follows:
The SBA must determine whether or not to designate a qualified census tract or qualified nonmetropolitan county as a HUBZone immediately after the Census Bureau publicly releases the first results from the decennial census that occurs after enactment of this bill.
The bill amends the Consolidated Appropriations Act, 2005 to repeal the five-year limitation on HUBZone status of base closure areas.
The SBA must publish performance metrics to measure the success of the HUBZone program in promoting economic development in economically distressed areas.
A small business concern that was qualified as a HUBZone small business concern on or before the enactment of this bill shall be deemed a "qualified HUBZone small business concern" for up to 10 years beginning on its first qualification and may reapply for SBA certification at the end of such period.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2592 Introduced in House (IH)]

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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. Velazquez 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 Representatives 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 Business Act (15 U.S.C. 
632(p)) is amended--
            (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 subparagraph (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 period beginning on 
                        the date the military installation undergoes 
                        final closure and ending on the date the 
                        Administrator makes a final determination as to 
                        whether or not to implement the applicable 
                        designation described in subparagraph (A) or 
                        (B) in accordance with the results of the 
                        decennial census conducted after the area was 
                        initially 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 area' 
                        means any census tract or nonmetropolitan 
                        county located in a major disaster area or an 
                        area in which a catastrophic incident has 
                        occurred if such census tract or 
                        nonmetropolitan county ceased to be qualified 
                        under subparagraph (A) or (B), as applicable, 
                        during the period beginning 5 years before the 
                        date on which the President 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 determination as to 
                        whether or not to implement the applicable 
                        designation described in subparagraph (A) or 
                        (B) in accordance with the results of the 
                        decennial census conducted after the area was 
                        initially designated as a qualified disaster 
                        area and beginning--
                                    ``(I) in the case of a major 
                                disaster declared by the President, on 
                                the date the President declared the 
                                major disaster for the area in which 
                                the census tract or nonmetropolitan 
                                county, as applicable, is located; or
                                    ``(II) in the case of a 
                                catastrophic incident, on the date on 
                                which the catastrophic incident 
                                occurred 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 catastrophic incident 
                        occurred, the Administrator 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 subparagraph:
                                    ``(I) Major disaster area.--The 
                                term `major disaster area' means an 
                                area for which the President has 
                                declared a major disaster under section 
                                401 of the Robert T. Stafford Disaster 
                                Relief and Emergency Assistance Act (42 
                                U.S.C. 5170).
                                    ``(II) Other definitions.--The 
                                terms `census tract' and 
                                `nonmetropolitan county' have the 
                                meanings given such terms in 
                                subparagraph (D)(iii).''; and
            (3) by amending paragraph (5) to read as follows:
            ``(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 
        section 31.''.
    (b) Determination of Certain Qualified Areas.--The Administrator of 
the Small Business Administration 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 enactment of this Act.
    (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 STATUS OF BASE CLOSURE 
              AREAS.

    Section 152(a) of title I of division K of the Consolidated 
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; Enforcement.--
            ``(1) Certification.--In order to be certified by the 
        Administrator as a qualified HUBZone small business concern, a 
        HUBZone small business concern shall submit documentation the 
        Administrator stating that--
                    ``(A) at the time of certification and at each 
                examination conducted pursuant to paragraph (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 requirements 
                of section 46 are satisfied with respect to any 
                subcontract entered into by such concern pursuant to a 
                contract awarded under this section.
            ``(2) Verification.--In carrying out this section, the 
        Administrator shall establish procedures relating to--
                    ``(A) the filing, investigation, and disposition 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 concern under paragraph (1)); and
                    ``(B) verification by the Administrator of the 
                accuracy of any documentation provided to the 
                Administration by a HUBZone small business concern 
                under paragraph (1).
            ``(3) Timing.--The Administrator shall complete the 
        verification procedures described in paragraph (2) in a 
        reasonable time, not later than 30 days after the date on which 
        the Administrator receives 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.
                    ``(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 concern 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).
            ``(8) List of qualified hubzone small business concerns.--
        The Administrator shall establish and maintain on the Internet 
        a list of qualified HUBZone small business concerns that 
        shall--
                    ``(A) to the extent practicable, include the name, 
                address, and type of business with respect to such 
                concern;
                    ``(B) be updated by the Administrator not less than 
                annually; and
                    ``(C) be provided upon request to any Federal 
                agency or other entity.
            ``(9) Provision of data.--Upon the request of the 
        Administrator, the Secretary of Labor, the Administrator of the 
        Federal Emergency Management 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 information 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 concern that is determined 
        by the Administrator to have misrepresented the status of that 
        concern as a `qualified HUBZone small business concern' for 
        purposes 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 subsection (e); and
            (3) by inserting after subsection (c) the following new 
        subsection:
    ``(d) Performance Metrics.--
            ``(1) In general.--Not later than 1 year after enactment of 
        this Act, the Administrator shall publish 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 and Entrepreneurship of the Senate 
        and the Committee on Small Business of the House of 
        Representatives a report--
                    ``(A) analyzing the data from the performance 
                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 performed under subsection 
                (c)(4), and the number of those concerns that did not 
                submit documentation 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 redesignated by subsection (b), is 
amended by striking ``fiscal 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 qualified 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 Business 
Act, for a period not to exceed 10 years beginning on the date on which 
the concern was first qualified. At the end of such period, the concern 
may reapply to be certified as qualified HUBZone small business concern 
pursuant to the procedures described in section 31(c) of the Small 
Business Act.
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