Title: VA–SBA Act
Policy area: Commerce

Summary:
Verification Alignment and Service-disabled Business Adjustment Act or the VA-SBA Act
This bill transfers responsibility for verifying that a small business concern is owned and controlled by a veteran or service-disabled veteran, for the purposes of eligibility for certain procurement programs, from the Department of Veterans Affairs (VA) to the Small Business Administration (SBA).
Specifically, the bill transfers maintenance of the database of veteran-owned and service-disabled veteran-owned businesses to the SBA. For the purposes of procurement programs for small businesses owned and controlled by service-disabled veterans, the SBA must certify the status of such businesses, require their periodic recertification, and penalize any small business that misrepresents its status. Accordingly, the bill also abolishes the Center for Verification and Evaluation of the VA and transfers all of its functions to the SBA.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4520 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  2d Session
                                S. 4520

  To transfer the responsibility of verifying small business concerns 
 owned and controlled by veterans or service-disabled veterans to the 
         Small Business Administration, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            August 10, 2020

 Mrs. Loeffler introduced the following bill; which was read twice and 
             referred to the Committee on Veterans' Affairs

_______________________________________________________________________

                                 A BILL


 
  To transfer the responsibility of verifying small business concerns 
 owned and controlled by veterans or service-disabled veterans to the 
         Small Business Administration, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Verification 
Alignment and Service-disabled Business Adjustment Act'' or the ``VA-
SBA Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Transfer date.
Sec. 3. Amendment to and transfer of veteran-owned and service-disabled 
                            veteran-owned business database.
Sec. 4. Additional requirements for database.
Sec. 5. Procurement program for small business concerns owned and 
                            controlled by service-disabled veterans.
Sec. 6. Certification for small business concerns owned and controlled 
                            by veterans.
Sec. 7. Status of self-certified small business concerns owned and 
                            controlled by service-disabled veterans.
Sec. 8. Transfer of the Center for Verification and Evaluation of the 
                            Department of Veterans Affairs to the Small 
                            Business Administration.
Sec. 9. Report.
Sec. 10. Determination of budgetary effects.

SEC. 2. TRANSFER DATE.

    For purposes of this Act, the term ``transfer date'' means the date 
that is 2 years after the date of enactment of this Act.

SEC. 3. AMENDMENT TO AND TRANSFER OF VETERAN-OWNED AND SERVICE-DISABLED 
              VETERAN-OWNED BUSINESS DATABASE.

    (a) Amendment of Veteran-Owned and Service-Disabled Veteran-Owned 
Business Database.--Effective on the transfer date, section 8127 of 
title 38, United States Code, is amended--
            (1) in subsection (e), by striking ``the Secretary under 
        subsection (f)'' and inserting ``the Administrator under 
        section 36 of the Small Business Act'';
            (2) in subsection (f)--
                    (A) by striking ``the Secretary'' each place it 
                appears, except in the last place it appears in 
                paragraph (2)(A), and inserting ``the Administrator'';
                    (B) in paragraph (1), by striking ``small business 
                concerns owned and controlled by veterans with service-
                connected disabilities'' and inserting ``small business 
                concerns owned and controlled by service-disabled 
                veterans'';
                    (C) in paragraph (2)--
                            (i) in subparagraph (A)--
                                    (I) by striking ``to access'' and 
                                inserting ``to obtain from the 
                                Secretary of Veterans Affairs''; and
                                    (II) by inserting ``, United States 
                                Code,'' after ``title 5''; and
                            (ii) by striking subparagraph (B) and 
                        inserting the following:
    ``(B) For purposes of this subsection--
            ``(i) the Secretary of Veterans Affairs shall--
                    ``(I) verify an individual's status as a veteran or 
                a service-disabled veteran; and
                    ``(II) establish a system to permit the 
                Administrator to access, but not alter, the 
                verification of such status; and
            ``(ii) the Administrator shall verify--
                    ``(I) the status of a business concern as a small 
                business concern; and
                    ``(II) the ownership and control of such business 
                concern.
    ``(C) The Administrator may not certify a concern under subsection 
(b) or section 36A if the Secretary of Veterans Affairs cannot provide 
the verification described under subparagraph (B)(i)(I).'';
                    (D) by striking paragraphs (4) and (7);
                    (E) by redesignating paragraphs (5) and (6) as 
                paragraphs (4) and (5), respectively, and redesignating 
                paragraph (8) as paragraph (6);
                    (F) in paragraph (4), as so redesignated, by 
                striking ``The Secretary'' and inserting ``The 
                Administrator''; and
                    (G) in paragraph (6), as so redesignated--
                            (i) in subparagraph (A)--
                                    (I) by striking ``verify the status 
                                of the concern as a small business 
                                concern or the ownership or control of 
                                the concern'' and inserting ``certify 
                                the status of the concern as a small 
                                business concern owned and controlled 
                                by veterans (under section 36A) or a 
                                small business concern owned and 
                                controlled by service-disabled veterans 
                                (under subsection (g) of this 
                                section)'';
                                    (II) by striking ``verification'' 
                                and inserting ``certification''; and
                                    (III) by striking ``the Small 
                                Business Administration (as established 
                                under section 5(i) of the Small 
                                Business Act)'' and inserting ``the 
                                Administration (as established under 
                                section 5(i))'';
                            (ii) in subparagraph (B)--
                                    (I) in clause (i)--
                                            (aa) by striking ``small 
                                        business concern owned and 
                                        controlled by veterans with 
                                        service-connected 
                                        disabilities'' and inserting 
                                        ``small business concern owned 
                                        and controlled by service-
                                        disabled veterans''; and
                                            (bb) by striking ``the 
                                        Small Business Act'' and 
                                        inserting ``the 
                                        Administration''; and
                                    (II) in clause (ii)--
                                            (aa) by amending subclause 
                                        (I) to read as follows:
                    ``(I) the Secretary of Veterans Affairs or the 
                Administrator; or''; and
                                            (bb) in subclause (II), by 
                                        striking ``the contracting 
                                        officer of the Department'' and 
                                        inserting ``the applicable 
                                        contracting officer''; and
                            (iii) by striking subparagraph (C);
            (3) by redesignating subsection (k) (relating to 
        definitions) as subsection (l);
            (4) by inserting after subsection (j) (relating to annual 
        reports) the following:
    ``(k) Annual Transfer for Certification Costs.--For each fiscal 
year, the Secretary of Veterans Affairs shall reimburse the 
Administrator in an amount necessary to cover any cost incurred by the 
Administrator for certifying small business concerns owned and 
controlled by veterans that do not qualify as small business concerns 
owned and controlled by service-disabled veterans for the Secretary for 
purposes of this section and section 8128 of this title. The 
Administrator is authorized to accept such reimbursement. The amount of 
any such reimbursement shall be determined jointly by the Secretary and 
the Administrator and shall be provided from fees collected by the 
Secretary under multiple-award schedule contracts. Any disagreement 
about the amount shall be resolved by the Director of the Office of 
Management and Budget.''; and
            (5) in subsection (l) (relating to definitions), as so 
        redesignated--
                    (A) by redesignating paragraphs (1), (2), and (3) 
                as paragraphs (2), (3), and (4), respectively; and
                    (B) by inserting before paragraph (2), as so 
                redesignated, the following:
            ``(1) The term `Administrator' means the Administrator of 
        the Small Business Administration.''.
    (b) Transfer of Requirements Relating to Database to the Small 
Business Act.--Effective on the transfer date, subsection (f) of 
section 8127 of title 38, United States Code (as amended by subsection 
(a)), is transferred to section 36 of the Small Business Act (15 U.S.C. 
657f), inserted so as to appear after subsection (e).
    (c) Conforming Amendments.--The following amendments shall take 
effect on the transfer date:
            (1) Small business act.--Section 3(q)(2)(C)(i)(III) of the 
        Small Business Act (15 U.S.C. 632(q)(2)(C)(i)(III)) is amended 
        by striking ``section 8127(f) of title 38, United States Code'' 
        and inserting ``section 36''.
            (2) Title 38.--Section 8128 of title 38, United States 
        Code, is amended by striking ``maintained by the Secretary 
        under section 8127(f) of this title'' and inserting 
        ``maintained by the Administrator of the Small Business Act 
        under section 36 of the Small Business Act''.

SEC. 4. ADDITIONAL REQUIREMENTS FOR DATABASE.

    (a) Administration Access to Database Before the Transfer Date.--
During the period between the date of the enactment of this Act and the 
transfer date, the Secretary of Veterans Affairs shall provide the 
Administrator of the Small Business Administration with access to the 
contents of the database described under section 8127(f) of title 38, 
United States Code.
    (b) Rule of Construction.--Nothing in this Act or the amendments 
made by this Act may be construed--
            (1) as prohibiting the Administrator of the Small Business 
        Administration from combining the contents of the database 
        described under section 8127(f) of title 38, United States 
        Code, with other databases maintained by the Administration; or
            (2) as requiring the Administrator to use any system or 
        technology related to the database described under section 
        8127(f) of title 38, United States Code, on or after the 
        transfer date to comply with the requirement to maintain a 
        database under subsection (f) of section 36 of the Small 
        Business Act (as transferred pursuant to section 3(b) of this 
        Act).
    (c) Recognition of the Issuance of Joint Regulations.--The date 
specified under section 1832(e) of the National Defense Authorization 
Act for Fiscal Year 2017 (15 U.S.C. 632 note) shall be deemed to be 
October 1, 2018.

SEC. 5. PROCUREMENT PROGRAM FOR SMALL BUSINESS CONCERNS OWNED AND 
              CONTROLLED BY SERVICE-DISABLED VETERANS.

    (a) Procurement Program for Small Business Concerns Owned and 
Controlled by Service-Disabled Veterans.--Section 36 of the Small 
Business Act (15 U.S.C. 657f) is amended--
            (1) by redesignating subsection (d) as paragraph (3), 
        adjusting the margin accordingly, and transferring such 
        paragraph to subsection (h) of such section, as added by 
        paragraph (6) of this subsection, so as to appear after 
        paragraph (2);
            (2) by striking subsection (e);
            (3) by redesignating subsections (a), (b), and (c) as 
        subsections (c), (d), and (e) respectively;
            (4) by inserting before subsection (c), as so redesignated, 
        the following:
    ``(a) Contracting Officer Defined.--For purposes of this section, 
the term `contracting officer' has the meaning given such term in 
section 2101 of title 41, United States Code.
    ``(b) Certification of Small Business Concerns Owned and Controlled 
by Service-Disabled Veterans.--With respect to a procurement program or 
preference established under this Act that applies to prime 
contractors, the Administrator shall--
            ``(1) certify whether a concern has status as a small 
        business concern owned and controlled by service-disabled 
        veterans; and
            ``(2) require the periodic recertification of such 
        status.'';
            (5) in subsection (d), as so redesignated, by striking 
        ``and that the award can be made at a fair market price'' and 
        inserting ``, that the award can be made at a fair market 
        price, and if each concern is certified by the Administrator as 
        a small business concern owned and controlled by service-
        disabled veterans'';
            (6) by adding at the end the following:
    ``(g) Certification Requirement.--Notwithstanding subsection (c), a 
contracting officer may only award a sole source contract to a small 
business concern owned and controlled by service-disabled veterans or a 
contract on the basis of competition restricted to small business 
concerns owned and controlled by service-disabled veterans if such a 
concern is certified by the Administrator as a small business concern 
owned and controlled by service-disabled veterans.
    ``(h) Enforcement; Penalties.--
            ``(1) Verification of eligibility.--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 small business concern to receive assistance under 
                this section (including a challenge, filed by an 
                interested party, relating to the veracity of a 
                certification made or information provided to the 
                Administration by a small business concern under 
                subsection (b)); and
                    ``(B) verification by the Administrator of the 
                accuracy of any certification made or information 
                provided to the Administration by a small business 
                concern under subsection (b).
            ``(2) Examinations.--The procedures established under 
        paragraph (1) shall provide for a program of examinations by 
        the Administrator of any small business concern making a 
        certification or providing information to the Administrator 
        under subsection (b), to determine the veracity of any 
        statements or information provided as part of such 
        certification or otherwise provided under subsection (b).
    ``(i) Provision of Data.--Upon the request of the Administrator, 
the head of any Federal department or agency shall promptly provide to 
the Administrator such information as the Administrator determines to 
be necessary to carry out subsection (b) or to be able to certify the 
status of the concern as a small business concern owned and controlled 
by veterans under section 36A.''; and
            (7) in paragraph (3) of subsection (h), as redesignated and 
        transferred by paragraph (1) of this subsection, by inserting 
        ``and section 36A'' before the period at the end.
    (b) Penalties for Misrepresentation.--Section 16 of the Small 
Business Act (15 U.S.C. 645) is amended--
            (1) in subsection (d)(1)--
                    (A) in the matter preceding subparagraph (A)--
                            (i) by striking the comma that immediately 
                        follows another comma; and
                            (ii) by striking ``, a `small'' and 
                        inserting ``, a `small business concern owned 
                        and controlled by service-disabled veterans', a 
                        `small business concern owned and controlled by 
                        veterans', a `small''; and
                    (B) in paragraph (A), by striking ``9, 15, or 31'' 
                and inserting ``8, 9, 15, 31, 36, or 36A''; and
            (2) in subsection (e)--
                    (A) by striking the comma that immediately follows 
                another comma; and
                    (B) by striking ``, a `small'' and inserting ``, a 
                `small business concern owned and controlled by 
                service-disabled veterans', a `small business concern 
                owned and controlled by veterans', a `small''.

SEC. 6. CERTIFICATION FOR SMALL BUSINESS CONCERNS OWNED AND CONTROLLED 
              BY VETERANS.

    The Small Business Act (15 U.S.C. 631 et seq.) is amended by 
inserting after section 36 the following:

``SEC. 36A. CERTIFICATION OF SMALL BUSINESS CONCERNS OWNED AND 
              CONTROLLED BY VETERANS.

    ``(a) In General.--With respect to the program established under 
section 8127 of title 38, United States Code, the Administrator shall--
            ``(1) certify whether a concern has status as a small 
        business concern owned and controlled by veterans; and
            ``(2) require the periodic recertification of such status.
    ``(b) Enforcement; Penalties.--
            ``(1) Verification of eligibility.--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 small business concern to receive assistance under 
                section 36 (including a challenge, filed by an 
                interested party, relating to the veracity of a 
                certification made or information provided to the 
                Administration by a small business concern under 
                subsection (a)); and
                    ``(B) verification by the Administrator of the 
                accuracy of any certification made or information 
                provided to the Administration by a small business 
                concern under subsection (a).
            ``(2) Examination of applicants.--The procedures 
        established under paragraph (1) shall provide for a program of 
        examinations by the Administrator of any small business concern 
        making a certification or providing information to the 
        Administrator under subsection (a), to determine the veracity 
        of any statements or information provided as part of such 
        certification or otherwise provided under subsection (a).''.

SEC. 7. STATUS OF SELF-CERTIFIED SMALL BUSINESS CONCERNS OWNED AND 
              CONTROLLED BY SERVICE-DISABLED VETERANS.

    (a) In General.--Notwithstanding any other provision of law, any 
small business concern that self-certified as a small business concern 
owned and controlled by service-disabled veterans shall--
            (1) if the concern files a certification application with 
        the Administrator of the Small Business Administration before 
        the end of the 1-year period beginning on the transfer date, 
        maintain such self-certification until the Administrator makes 
        a determination with respect to such certification; and
            (2) if the concern does not file such a certification 
        application before the end of the 1-year period beginning on 
        the transfer date, lose, at the end of such 1-year period, any 
        self-certification of the concern as a small business concern 
        owned and controlled by service-disabled veterans.
    (b) Non-Applicability to Department of Veterans Affairs.--
Subsection (a) shall not apply to participation in contracts (including 
subcontracts) with the Department of Veterans Affairs.
    (c) Notice.--The Administrator shall notify any small business 
concern that self-certified as a small business concern owned and 
controlled by service-disabled veterans about the requirements of this 
Act, including the transfer date, and make such notice publicly 
available, on the date of the enactment of this Act.

SEC. 8. TRANSFER OF THE CENTER FOR VERIFICATION AND EVALUATION OF THE 
              DEPARTMENT OF VETERANS AFFAIRS TO THE SMALL BUSINESS 
              ADMINISTRATION.

    (a) Definition.--In this section, the term ``function''--
            (1) means any duty, obligation, power, authority, 
        responsibility, right, privilege, activity, or program; and
            (2) does not include employees.
    (b) Abolishment.--The Center for Verification and Evaluation of the 
Department of Veterans Affairs, as defined under section 74.1 of title 
38, Code of Federal Regulations, is abolished effective on the transfer 
date.
    (c) Transfer of Functions.--Effective on the transfer date, all 
functions that, immediately before the transfer date, were functions of 
the Center for Verification and Evaluation shall be functions of the 
Small Business Administration.
    (d) Transfer of Assets.--So much of the property (including 
contracts for the procurement of property or services) and records 
used, held, available, or to be made available in connection with a 
function transferred under this section shall be available to the Small 
Business Administration at such time or times as the President directs 
for use in connection with the functions transferred.
    (e) Savings Provisions.--
            (1) Continuing effect of legal documents.--All orders, 
        determinations, rules, regulations, permits, agreements, 
        grants, contracts, certificates, licenses, registrations, 
        privileges, and other administrative actions--
                    (A) which have been issued, made, granted, or 
                allowed to become effective by the President, any 
                Federal agency or official thereof, or by a court of 
                competent jurisdiction, in the performance of functions 
                which are transferred under this section; and
                    (B) which are in effect on the transfer date, or 
                were final before the transfer date and are to become 
                effective on or after the transfer date,
        shall continue in effect according to their terms until 
        modified, terminated, superseded, set aside, or revoked in 
        accordance with law by the President, the Administrator of the 
        Small Business Administration or other authorized official, a 
        court of competent jurisdiction, or by operation of law.
            (2) Proceedings not affected.--The provisions of this 
        section shall not affect any proceedings, including notices of 
        proposed rulemaking, or any application for any license, 
        permit, certificate, or financial assistance pending before the 
        Department of Veterans Affairs on the transfer date, with 
        respect to functions transferred by this section but such 
        proceedings and applications shall be continued. Orders shall 
        be issued in such proceedings, appeals shall be taken 
        therefrom, and payments shall be made pursuant to such orders, 
        as if this section had not been enacted, and orders issued in 
        any such proceedings shall continue in effect until modified, 
        terminated, superseded, or revoked by a duly authorized 
        official, by a court of competent jurisdiction, or by operation 
        of law. Nothing in this paragraph shall be deemed to prohibit 
        the discontinuance or modification of any such proceeding under 
        the same terms and conditions and to the same extent that such 
        proceeding could have been discontinued or modified if this 
        section had not been enacted.
            (3) Suits not affected.--The provisions of this section 
        shall not affect suits commenced before the transfer date, and 
        in all such suits, proceedings shall be had, appeals taken, and 
        judgments rendered in the same manner and with the same effect 
        as if this section had not been enacted.
            (4) Nonabatement of actions.--No suit, action, or other 
        proceeding commenced by or against the Department of Veterans 
        Affairs, or by or against any individual in the official 
        capacity of such individual as an officer of the Department of 
        Veterans Affairs, shall abate by reason of the enactment of 
        this section.
            (5) Administrative actions relating to promulgation of 
        regulations.--Any administrative action relating to the 
        preparation or promulgation of a regulation by the Department 
        of Veterans Affairs relating to a function transferred under 
        this section may be continued by the Administrator of the Small 
        Business Administration with the same effect as if this section 
        had not been enacted.
    (f) References.--Any reference in any other Federal law, Executive 
order, rule, regulation, or delegation of authority, or any document of 
or pertaining to a function of the Center for Verification and 
Evaluation that is transferred under this section is deemed, after the 
transfer date, to refer to the Small Business Administration.

SEC. 9. REPORT.

    Not later than 1 year after the date of the enactment of this Act, 
and every 6 months thereafter until the transfer date, the 
Administrator of the Small Business Administration and Secretary of 
Veterans Affairs shall jointly submit to the Committee on 
Appropriations, the Committee on Small Business, and the Committee on 
Veterans' Affairs of the House of Representatives and the Committee on 
Appropriations, the Committee on Small Business and Entrepreneurship, 
and the Committee on Veterans' Affairs of the Senate a report on the 
planning for the transfer of functions and property required under this 
Act and the amendments made by this Act on the transfer date, which 
shall include--
            (1) a discussion of whether and how the verification 
        database and operations of the Center for Verification and 
        Evaluation of the Department of Veterans Affairs will be 
        incorporated into the existing certification database of the 
        Small Business Administration;
            (2) projections for the numbers and timing, in terms of 
        fiscal year, of--
                    (A) already verified concerns that will come up for 
                recertification; and
                    (B) self-certified concerns that are expected to 
                apply for certification;
            (3) an explanation of how outreach to veteran service 
        organizations, the service-disabled veteran-owned and veteran-
        owned small business community, and other stakeholders will be 
        conducted; and
            (4) other pertinent information determined by the 
        Administrator and the Secretary.

SEC. 10. DETERMINATION OF BUDGETARY EFFECTS.

    The budgetary effects of this Act, for the purpose of complying 
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, submitted for printing in the Congressional 
Record by the Chairman of the Senate Budget Committee, provided that 
such statement has been submitted prior to the vote on passage.
                                 <all>