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TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS

Subtitle F—Industrial Base Matters

P. L. 114-

House Conference Report. 114-270

(a) In general.—Section 3(p) of the Small Business Act (15 U.S.C. 632(p)) is amended—

(1) in paragraph (1)—

(A) in subparagraph (D), by striking “or”;

(B) in subparagraph (E), by striking the period at the end and inserting “; or”; and

(C) by adding at the end the following:

“(F) qualified disaster areas.”;

(2) in paragraph (3)—

(A) by redesignating subparagraphs (D) and (E) as subparagraphs (E) and (F), respectively; and

(B) by inserting after subparagraph (C) the following:

“(D) a small business concern—

“(i) that is wholly owned by one or more Native Hawaiian Organizations (as defined in section 8(a)(15)), or by a corporation that is wholly owned by one or more Native Hawaiian Organizations; or

“(ii) that is owned in part by one or more Native Hawaiian Organizations, or by a corporation that is wholly owned by one or more Native Hawaiian Organizations, if all other owners are either United States citizens or small business concerns;”;

(3) in paragraph (4)—

(A) by amending subparagraph (D) to read as follows:

“(D) BASE CLOSURE AREA.—

“(i) IN GENERAL.—Subject to clause (ii), the term ‘base closure area’ means—

“(I) lands within the external boundaries of a military installation that were closed through a privatization process under the authority of—

“(aa) the Defense Base Closure and Realignment Act of 1990 (part A of title XXIX of division B of Public Law 101–510; 10 U.S.C. 2687 note);

“(bb) title II of the Defense Authorization Amendments and Base Closure and Realignment Act (Public Law 100–526; 10 U.S.C. 2687 note);

“(cc) section 2687 of title 10, United States Code; or

“(dd) any other provision of law authorizing or directing the Secretary of Defense or the Secretary of a military department to dispose of real property at the military installation for purposes relating to base closures of redevelopment, while retaining the authority to enter into a leaseback of all or a portion of the property for military use;

“(II) the census tract or nonmetropolitan county in which the lands described in subclause (I) are wholly contained;

“(III) a census tract or nonmetropolitan county the boundaries of which intersect the area described in subclause (I); and

“(IV) a census tract or nonmetropolitan county the boundaries of which are contiguous to the area described in subclause (II) or subclause (III).

“(ii) LIMITATION.—A base closure area shall be treated as a HUBZone—

“(I) with respect to a census tract or nonmetropolitan county described in clause (i), for a period of not less than 8 years, 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; and

“(II) if such area was treated as a HUBZone at any time after 2010, until such time as the Administrator makes a final determination as to whether or not to implement the applicable designation described in subparagraph (A) or (B), after the 2020 decennial census.

“(iii) DEFINITIONS.—In this subparagraph:

“(I) CENSUS TRACT.—The term ‘census tract’ means a census tract delineated by the United States Bureau of the Census in the most recent decennial census that is not located in a nonmetropolitan county and does not otherwise qualify as a qualified census tract.

“(II) NONMETROPOLITAN COUNTY.—The term ‘nonmetropolitan county’ means a county that was not located in a metropolitan statistical area (as defined in section 143(k)(2)(B) of the Internal Revenue Code of 1986) at the time of the most recent census taken for purposes of selecting qualified census tracts and does not otherwise qualify as a qualified nonmetropolitan county.”; and

(B) by adding at the end the following new subparagraph:

“(E) QUALIFIED DISASTER AREA.—

“(i) IN GENERAL.—Subject to clause (ii), the term ‘qualified disaster area’ means any census tract or nonmetropolitan county located in 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) or located in 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 and ending 2 years after such date, except that such census tract or nonmetropolitan county may be a ‘qualified disaster area’ only—

“(I) in the case of a major disaster declared by the President, during the 5-year period beginning on the date on which the President declared the major disaster for the area in which the census tract or nonmetropolitan county, as applicable, is located; and

“(II) in the case of a catastrophic incident, during the 10-year period beginning on the date on which the catastrophic incident occurred in the area in which the census tract or nonmetropolitan county, as applicable, is located.

“(ii) LIMITATION.—A qualified disaster area described in clause (i) shall be treated as a HUBZone for a period of not less than 8 years, beginning on the date the Administrator makes a final determination as to whether or not to implement the designations described in subparagraphs (A) and (B) in accordance with the results of the decennial census conducted after the area was initially designated as a qualified disaster area.”; and

(4) in paragraph (5)(A)(i)(I)—

(A) in item (aa)—

(i) by striking “subparagraph (A), (B), (C), (D), or (E) of paragraph (3)” and inserting “subparagraph (A), (B), (C), (D), (E), or (F) of paragraph (3)”; and

(ii) by striking “or” at the end;

(B) by redesignating item (bb) as item (cc); and

(C) by inserting after item (aa) the following new item:

“(bb) pursuant to subparagraph (A), (B), (C), (D), (E), or (F) of paragraph (3), that its principal office is located within a base closure area and that not fewer than 35 percent of its employees reside in such base closure area or in another HUBZone; or”.

(b) Applicability.—The amendments made by subsection (a)(3)(B) shall apply to a major disaster declared by the President under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170) or a catastrophic incident that occurs on or after the date of enactment of such subsection.

(c) Including FEMA in agencies that may provide data for HUBZone program.—Section 31(c)(3) of the Small Business Act (15 U.S.C. 657a(c)(3)) is amended by inserting “the Administrator of the Federal Emergency Management Agency,” after “the Secretary of Labor,”.

(d) GAO Study of Improvement to Oversight of the HUBZone Program.—Not later than 120 days after the date of enactment of this Act, the Comptroller General of the United States shall complete a study on and submit a report to the Committee on Small Business of the House of Representatives and the Committee on Small Business and Entrepreneurship of the Senate that includes—

(1) an assessment of the evaluation process, including any weaknesses in the process, used by the Small Business Administration to approve or deny participation in the HUBZone program established under section 31 of the Small Business Act (15 U.S.C. 657a);

(2) an assessment of the oversight of HUBZone program participants by the Small Business Administration, including Administration actions taken to prevent fraud, waste, and abuse; and

(3) recommendations on how to improve the evaluation process and oversight mechanisms to further reduce fraud, waste, and abuse.

The Senate amendment contained two similar provisions (sec. 882 and 883) that would amend the Small Business Act, title 15, United States Code to authorize the inclusion of qualified disaster areas to the Historically Underutilized Business Zone program administered by the Small Business Administration and to authorize the inclusion of base closure areas to the Historically Underutilized Business Zone program administered by the Small Business Administration.

The Senate recedes with an amendment that would combine both provisions.

House Report 114-102 to accompany H. R. 1735 as it was reported out of the House Armed Services Committee.

Section 842--Modifications to Requirements for Qualified HUBZone Small Business Concerns Located in a Base Closure Area

This section would amend section 152(a)(2) of title I of division K of the Consolidated Appropriations Act, 2005 (15 U.S.C. 632 note) to extend the length of time covered base closure areas may participate in the Historically Underutilized Business Zone (HUBZone) program to either eight years or until the Small Business Administration announces which areas will qualify for the HUBZone program after the next decennial census data is released. This section would also amend section 3(p)(5)(A)(i)(l) of the Small Business Act (15 U.S.C. 632(p)(5)(A)(i)(I)) to include allowed covered base closure area HUBZone participants to meet the program's employment requirements by hiring 35 percent of their employees from any qualified HUBZone, and would amend section 3(p)(4)(D) of the Small Business Act (15 U.S.C. 632(p)(4)(D)) to extend physical boundaries of the covered base closure area, for purpose of the HUBZone program, to include lands within a 25 mile radius of the base.

Senate Report 114-49 to accompany S. 1376 as it was reported out of the Senate Armed Services Committee.

HUBZone qualified disaster areas (sec. 882)

The committee recommends a provision that would amend the Small Business Act, title 15, United States Code to authorize the inclusion of qualified disaster areas to the Historically Underutilized Business Zone program administered by the Small Business Administration.

Base closure HUBZones (sec. 883)

The committee recommends a provision that would amend the Small Business Act, title 15, United States Code to authorize the inclusion of base closure areas to the Historically Underutilized Business Zone program administered by the Small Business Administration.