Sec. 812. Improving opportunities for service-disabled veteran-owned small businesses
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Section 3(q) of the Small Business Act ( 15 U.S.C. 632(q) ) is amended— by amending paragraph
(2)to read as follows: The term small business concern owned and controlled by service-disabled veterans means a small business concern— not less than 51 percent of which is owned by one or more service-disabled veterans or, in the case of any publicly owned business, not less than 51 percent of the stock of which is owned by one or more service-disabled veterans; and the management and daily business operations of which are controlled by one or more service-disabled veterans or, in the case of a veteran with permanent and severe disability, the spouse or permanent caregiver of such veteran; or not less than 51 percent of which is owned by one or more veterans with service-connected disabilities that are permanent and total who are unable to manage the daily business operations of such concern or, in the case of a publicly owned business, not less than 51 percent of the stock of which is owned by one or more such veterans; and is included in the database described in section 8127(f) of title 38, United States Code. ; and by adding at the end the following: Subject to subparagraph (C), if the death of a service-disabled veteran causes a small business concern to be less than 51 percent owned by one or more such veterans, the surviving spouse of such veteran who acquires ownership rights in such small business concern shall, for the period described in subparagraph (B), be treated as if the surviving spouse were that veteran for the purpose of maintaining the status of the small business concern as a small business concern owned and controlled by service-disabled veterans. The period referred to in subparagraph
(A)is the period beginning on the date on which the service-disabled veteran dies and ending on the earliest of the following dates: The date on which the surviving spouse remarries. The date on which the surviving spouse relinquishes an ownership interest in the small business concern. The date that is ten years after the date of the veteran’s death. Subparagraph
(A)only applies to a surviving spouse of a veteran with a service-connected disability if— the veteran had a service-connected disability rated as 100 percent disabling or died as a result of a service-connected disability; and prior to the death of the veteran and during the period in which the surviving spouse seeks to qualify under this paragraph, the small business concern is included in the database described in section 8127(f) of title 38, United States Code. . Section 8127 of title 38, United States Code, is amended— by striking subsection (h); and in subsection (l)(2), by striking means and all that follows through the period at the end and inserting the following: has the meaning given that term under section 3(q) of the Small Business Act ( . 15 U.S.C. 632(q) ). The Small Business Act ( 15 U.S.C. 631 et seq. ), as amended by section 815, is further amended by adding at the end the following new section: In order to increase opportunities for small business concerns owned and controlled by service-disabled veterans and small business concerns owned and controlled by veterans in the Federal marketplace, not later than 180 days after the effective date of this section, the Administrator shall enter into a memorandum of understanding with the Secretary of Veterans Affairs that transfers control and administration of the program under subsections
(e)through
(g)of section 8127 of title 38, United States Code, to the Administrator, consistent with the following: Not later than 270 days after completing the memorandum of understanding, the Administrator shall make rules to carry out the memorandum. If the Administrator does not make such rules by such date, the Administrator may not exercise the authority under section 7(a)(25)(A) until such time as those rules are made. The Administrator shall assume authority and responsibility for maintenance and operation of the database and for verifications under the program. Any verifications undertaken by the Administrator shall employ fraud prevention measures at the time of the initial application, through detection and monitoring processes after initial acceptance, by investigating allegations of potential fraud, removing firms that do not quality from the database, and referring cases for prosecution when appropriate. Any appeal by a small business concern, at the time that verification is denied or a contract is awarded, of any determination under the program shall be heard by the Office of Hearings and Appeals of the Small Business Administration. The Secretary shall, for a period of 6 years commencing on a date agreed to in the completed memorandum, reimburse to the Administrator of the Small Business Administration any costs incurred by the Administrator for actions undertaken pursuant to the memorandum from fees collected by the Secretary of Veteran Affairs under multiple-award schedule contracts. The Administrator and the Secretary shall endeavor to ensure maximum efficiency in such actions. Any disputes between the Secretary and the Administrator shall be resolved by the Director of the Office of Management and Budget. The Secretary and the Administrator may extend the term of the memorandum of understanding, except for the reimbursement requirement under subparagraph (A). The Secretary and the Administrator may in a separate memorandum of understanding provide for an extension of such reimbursement. Not later than 180 days after the date of enactment of this section, and every 180 days thereafter, the Secretary and the Administrator shall— meet to discuss ways to improve collaboration under the memorandum to increase opportunities for service-disabled veteran-owned small businesses and veteran-owned small businesses; and consult with congressionally chartered Veterans Service Organizations to discuss ways to increase opportunities for service-disabled veteran-owned small businesses and veteran-owned small businesses. Not later than 180 days after the date of enactment of this section, and every 180 days thereafter, the Secretary and the Administrator shall report to the Committee on Small Business and the Committee on Veterans’ Affairs of the House of Representatives, and the Committee on Small Business and Entrepreneurship and the Committee on Veterans’ Affairs of the Senate on the progress made by the Secretary and the Administrator implementing this section. In any meeting required under paragraph (5), the Secretary and the Administrator shall include in the discussion of ways to improve collaboration under the memorandum to increase opportunities for small businesses owned and controlled by service-disabled veterans who are women or minorities and small business concerns owned and controlled by veterans who are women or minorities. . Section 8127(f) of title 38, United States Code, is amended by adding at the end the following: Not later than 180 days after the effective date of this paragraph, the Secretary shall enter into a memorandum of understanding with the Administrator of the Small Business Administration consistent with section 48 of the Small Business Act, which shall specify the manner in which the Secretary shall notify the Administrator as to whether an individual is a veteran and if that veteran has a service-connected disability. .
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Sec. 812
Improving opportunities for service-disabled veteran-owned small businesses
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