H.R. 1611 – Reading Mode

110th CONGRESS

1st Session

H. R. 1611

IN THE HOUSE OF REPRESENTATIVES

March 20, 2007

Mr. Reyes introduced the following bill; which was referred to the Committee on Small Business

A BILL

To amend the Small Business Act to improve the 8(a) program.

Short title

This Act may be cited as the 8(a) Modernization Act.

Findings

Congress finds that—

(1)

when the 8(a) program was implemented in 1968, the thresholds for noncompetitive contracts were $3,000,000 and $5,000,000 (for manufacturing), and today those thresholds have risen to only $3,500,000 and $5,500,000, respectively, a rate of growth far overtaken by inflation; and

(2)

when the 8(a) program was implemented in 1968, the net worth limit was $250,000, and today that limit is exactly the same.

Improvements to 8(a) program

Section 8(a) of the Small Business Act (15 U.S.C. 637(a)) is amended—

(1)

in paragraph (1)(D)(i)(II)—

(A)

by striking $5,000,000 and inserting $12,000,000; and

(B)

by striking $3,000,000 and inserting $10,000,000; and

(2)

in paragraph (6) by adding at the end the following:

(F)

the Administrator shall establish, for each industry classification, a maximum level of net worth for an economically disadvantaged individual. In establishing such maximum levels, the Administrator shall take into consideration the capital needs of each industry. The Administrator shall not establish a maximum net worth that prohibits program entry of less than $750,000.