Clarifying the Small Business Runway Extension Act

IIB 116TH CONGRESS 1ST SESSION H. R. 2345 IN THE SENATE OF THE UNITED STATES JULY 16, 2019 Received; read twice and referred to the Committee on Small Business and Entrepreneurship AN ACT To amend the Small Business Act to clarify the intention of Congress that the Administrator of the Small Business Administration is subject to certain requirements with respect to establishing size standards for small business concerns, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 23:04 Jul 16, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2345.RFS H2345 kjohnson on DSK79L0C42 with BILLS 2 HR 2345 RFS SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Clarifying the Small 2 Business Runway Extension Act’’. 3 SEC. 2. SENSE OF CONGRESS. 4 It is the sense of Congress that— 5 (1) the Small Business Runway Extension Act 6 of 2018 (Public Law 115–324) applies to calcula- 7 tions of the size of a business concern made by the 8 Administrator of the Small Business Administration; 9 (2) Federal agencies rely upon such calculations 10 to award contracts, including governmentwide acqui- 11 sition contracts, to small business concerns; and 12 (3) the Small Business Runway Extension Act 13 of 2018 has been effective since the date it was 14 signed into law, on December 17, 2018. 15 SEC. 3. CLARIFYING AMENDMENT TO THE SMALL BUSINESS 16 RUNWAY EXTENSION ACT OF 2018. 17 Section 3(a)(2)(C) of the Small Business Act (15 18 U.S.C. 632(a)(2)(C)) is amended by inserting ‘‘(including 19 the Administration when acting pursuant to subparagraph 20 (A))’’ after ‘‘no Federal department or agency’’. 21 SEC. 4. FINALIZATION OF SMALL BUSINESS RUNWAY EX- 22 TENSION ACT OF 2018 RULES. 23 The Administrator of the Small Business Administra- 24 tion shall issue a final rule implementing the Small Busi- 25 VerDate Sep 11 2014 23:04 Jul 16, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2345.RFS H2345 kjohnson on DSK79L0C42 with BILLS 3 HR 2345 RFS ness Runway Extension Act of 2018 (Public Law 115– 1 324) not later than December 17, 2019. 2 SEC. 5. AMENDMENT TO SIZE STANDARDS FOR CERTAIN 3 SMALL BUSINESS CONCERNS. 4 (a) SIZE STANDARDS FOR SMALL BUSINESS CON- 5 CERNS PROVIDING SERVICES.—Section 3(a)(2)(C)(ii)(II) 6 of the Small Business Act (15 U.S.C. 632(a)(2)(C)(ii)(II)) 7 is amended by striking ‘‘not less than’’. 8 (b) SIZE STANDARDS FOR OTHER BUSINESS CON- 9 CERNS.—Section 3(a)(2)(C)(ii)(III) of the Small Business 10 Act (15 U.S.C. 632(a)(2)(C)(ii)(III)) is amended by strik- 11 ing ‘‘not less than 3 years’’ and inserting ‘‘5 years’’. 12 SEC. 6. TRANSITION PLAN FOR THE SMALL BUSINESS RUN- 13 WAY EXTENSION ACT OF 2018. 14 (a) PLAN REQUIRED.—Not later than 90 days after 15 the date of the enactment of this Act, the Administrator 16 of the Small Business Administration shall implement a 17 transition plan to assist business concerns and Federal 18 agencies with compliance with the requirements of the 19 Small Business Runway Extension Act of 2018 (Public 20 Law 115–324). 21 (b) 3-YEAR CALCULATION FOR SIZE STANDARDS.— 22 (1) IN GENERAL.—The transition plan de- 23 scribed under subsection (a) shall include a require- 24 ment that, during the period beginning on December 25 VerDate Sep 11 2014 23:04 Jul 16, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2345.RFS H2345 kjohnson on DSK79L0C42 with BILLS 4 HR 2345 RFS 17, 2018, and ending on the date that is 6 months 1 after the date on which the Administrator issues 2 final rules implementing the Small Business Runway 3 Extension Act of 2018 (Public Law 115–324), al- 4 lows the use of a 3-year calculation for a size stand- 5 ard to be applied to a business concern if the use 6 of such 3-year calculation allows such concern to be 7 considered a small business concern under section 8 3(a)(1) of the Small Business Act (15 U.S.C. 9 632(a)(1)). 10 (2) 3-YEAR CALCULATION DEFINED.—In this 11 subsection, the term ‘‘3-year calculation’’ means— 12 (A) with respect to a business concern pro- 13 viding services described under clause (ii)(II) of 14 such section, a determination of the size of such 15 concern on the basis of the annual average 16 gross receipts of such concern over a period of 17 3 years; and 18 (B) with respect to a business concern de- 19 scribed under clause (ii)(III) of such section, a 20 determination of the size of such concern on the 21 basis of data over a period of 3 years. 22 SEC. 7. REQUIREMENT TO UPDATE SAM. 23 Not later than 90 days after the date of the enact- 24 ment of this Act, the System for Award Management (or 25 VerDate Sep 11 2014 23:04 Jul 16, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2345.RFS H2345 kjohnson on DSK79L0C42 with BILLS 5 HR 2345 RFS any successor system) shall be updated to comply with the 1 requirements of this Act. 2 Passed the House of Representatives July 15, 2019. Attest: CHERYL L. JOHNSON, Clerk. VerDate Sep 11 2014 23:04 Jul 16, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H2345.RFS H2345 kjohnson on DSK79L0C42 with BILLS