38 U.S.C. § 8127
38 U.S.C. § 8127
EDITORIAL NOTES
REFERENCES IN TEXTThe date of the enactment of the Department of Veterans Affairs Contracting Preference Consistency Act of 2020, referred to in subsec. (d)(2)(B)(i)(II), is the date of enactment of Pub. L. 116-155 which was approved Aug. 8, 2020. The Small Business Act, referred to in subsecs. (e) and (i)(2), is Pub. L. 85-536, §2(1 et seq.), July 18, 1958, 72 Stat. 384, which is classified generally to chapter 14A (§631 et seq.) of Title 15, Commerce and Trade. Section 36 of the Act is classified to section 657f of Title 15. For complete classification of this Act to the Code, see Short Title note set out under section 631 of Title 15 and Tables.
AMENDMENTS2021-Subsec. (e). Pub. L. 116-283, §862(b)(1)(A), substituted "the Administrator under section 36 of the Small Business Act" for "the Secretary under subsection (f)".Subsec. (f). Pub. L. 116-283, §862(b)(2), transferred subsec. (f) of this section to section 36(f) of the Small Business Act, which is classified to section 657f of Title 15, Commerce and Trade. Pub. L. 116-283, §862(b)(1)(B)(i), substituted "the Administrator" for "the Secretary" wherever appearing except in the last place it appears in par. (2)(A).Subsec. (f)(1). Pub. L. 116-283, §862(b)(1)(B)(ii), substituted "small business concerns owned and controlled by service-disabled veterans" for "small business concerns owned and controlled by veterans with service-connected disabilities". Subsec. (f)(2)(A). Pub. L. 116-283, §862(b)(1)(B)(iii)(I), inserted ",United States Code," after "title 5" and substituted "to obtain from the Secretary of Veterans Affairs" for "to access". Subsec. (f)(2)(B), (C). Pub. L. 116-283, §862(b)(1)(B)(iii)(II), added subpars. (B) and (C) and struck out former subpar. (B) which read as follows: "If the Secretary receives an application for inclusion in the database from an individual whose status as a veteran cannot be verified because the Secretary does not maintain information with respect to the veteran status of the individual, the Secretary may not include the small business concern owned and controlled by the individual in the database maintained by the Secretary until the Secretary receives such information as may be necessary to verify that the individual is a veteran."Subsec. (f)(3). Pub. L. 116-283, §862(b)(1)(B)(iv), substituted "a veteran described in paragraph (1)" for "such veterans".Subsec. (f)(4). Pub. L. 116-283, §862(b)(1)(B)(vii), substituted "The Administrator" for "The Secretary". Pub. L. 116-283, §862(b)(1)(B)(v), (vi), redesignated par. (5) as (4) and struck out former par. (4), which required verification of veteran ownership or control.Subsec. (f)(5). Pub. L. 116-283, §862(b)(1)(B)(vi), redesignated par. (6) as (5). Former par. (5) redesignated (4).Subsec. (f)(6). Pub. L. 116-283, §862(b)(1)(B)(vi), redesignated par. (8) as (6). Former par. (6) redesignated (5).Subsec. (f)(6)(A). Pub. L. 116-283, §862(b)(1)(B)(viii)(I), substituted "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)" for "verify the status of the concern as a small business concern or the ownership or control of the concern", "certification" for "verification", and "the Administration (as established under section 5(i))" for "the Small Business Administration (as established under section 5(i) of the Small Business Act)".Subsec. (f)(6)(B)(i). Pub. L. 116-283, §862(b)(1)(B)(viii)(II)(aa), substituted "small business concern owned and controlled by service-disabled veterans" for "small business concern owned and controlled by veterans with service-connected disabilities" and struck out "of the Small Business Administration" after "Hearings and Appeals".Subsec. (f)(6)(B)(ii)(I). Pub. L. 116-283, §862(b)(1)(B)(viii)(II)(bb)(AA), amended subcl. (I) generally. Prior to amendment, subcl. (I) read as follows: "the Secretary; or". Subsec. (f)(6)(B)(ii)(II). Pub. L. 116-283, §862(b)(1)(B)(viii)(II)(bb)(BB), substituted "the applicable contracting officer" for "the contracting officer of the Department". Subsec. (f)(6)(C). Pub. L. 116-283, §862(b)(1)(B)(viii)(III), struck out subpar. (C) which read as follows: "For each fiscal year, the Secretary shall reimburse the Administrator of the Small Business Administration in an amount necessary to cover any cost incurred by the Office of Hearings and Appeals of the Small Business Administration for actions taken by the Office under this paragraph. 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."Subsec. (f)(7). Pub. L. 116-283, §862(b)(1)(B)(v), struck out par. (7) which read as follows: "The Secretary may not issue regulations related to the status of a concern as a small business concern and the ownership and control of such small business concern."Subsec. (f)(8). Pub. L. 116-283, §862(b)(1)(B)(vi), redesignated par. (8) as (6).Subsec. (k). Pub. L. 116-283, §862(b)(1)(D), added subsec. (k). Former subsec. (k) redesignated (l).Subsec. (k)(3)(A). Pub. L. 116-315 substituted "or any other" for "and any other".Subsec. (l). Pub. L. 116-283, §862(b)(1)(C), redesignated subsec. (k) as (l). Former subsec. (l) redesignated (m).Subsec. (m). Pub. L. 116-283, §862(b)(1)(E), added par. (1) and redesignated former pars. (1) to (3) as (2) to (4), respectively. Pub. L. 116-283, §862(b)(1)(C), redesignated subsec. (l) as (m). 2020-Subsecs. (b), (c). Pub. L. 116-155, §2(b), substituted "Except as provided in subsection (d)(2), for purposes" for "For purposes".Subsec. (d). Pub. L. 116-155, §2(a), designated existing provisions as par. (1), inserted "in paragraph (2) and" before "in subsections (b) and (c)", and added par. (2). Subsecs. (k), (l). Pub. L. 116-183 added subsec. (k) and redesignated former subsec. (k) as (l).2016-Subsec. (b). Pub. L. 114-328, §1832(b)(2)(A), inserted "or a small business concern owned and controlled by veterans with service-connected disabilities" after "a small business concern owned and controlled by veterans". Subsec. (c). Pub. L. 114-328, §1832(b)(2)(B), inserted "or a small business concern owned and controlled by veterans with service-connected disabilities" after "a small business concern owned and controlled by veterans" in introductory provisions.Subsec. (d). Pub. L. 114-328, §1832(b)(2)(C), inserted "or small business concerns owned and controlled by veterans with service-connected disabilities" after "small business concerns owned and controlled by veterans" in two places.Subsec. (f)(1). Pub. L. 114-328, §1832(b)(2)(D), inserted ",small business concerns owned and controlled by veterans with service-connected disabilities," after "small business concerns owned and controlled by veterans". Subsec. (f)(4). Pub. L. 114-328, §1832(d)(1), substituted "verified, using regulations issued by the Administrator of the Small Business Administration with respect to the status of the concern as a small business concern and the ownership and control of such concern," for "verified" in introductory provisions. Subsec. (f)(7). Pub. L. 114-328, §1832(d)(2), added par. (7).Subsec. (f)(8). Pub. L. 114-328, §1832(f)(1), added par. (8).Subsec. (h). Pub. L. 114-328, §1832(b)(1)(A), redesignated subsec. (i) as (h) and struck out former subsec. (h) which related to treatment of businesses after death of veteran-owner. Subsec. (h)(2)(C). Pub. L. 114-315, §501(a)(2), amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: "The date that is ten years after the date of the veteran's death."Subsec. (h)(3). Pub. L. 114-315, §501(a)(1), substituted period at end for "rated as 100 percent disabling or who dies as a result of a service-connected disability."Subsecs. (i), (j). Pub. L. 114-328, §1832(b)(1)(A), redesignated subsecs. (j) and (k) as (i) and (j), respectively. Former subsec. (i) redesignated (h). Subsec. (k). Pub. L. 114-328, §1832(b)(1)(A), redesignated subsec. (l) as (k). Former subsec. (k) redesignated (j). Subsec. (k)(2). Pub. L. 114-328, §1832(b)(1)(B)(i), amended par. (2) generally. Prior to amendment, par. (2) read as follows: "The term 'small business concern owned and controlled by veterans' means a small business concern-"(A)(i) not less than 51 percent of which is owned by one or more veterans 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 veterans; and"(ii) the management and daily business operations of which are controlled by one or more veterans; or"(B) 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."Subsec. (k)(3). Pub. L. 114-328, §1832(b)(1)(B)(ii), added par. (3).Subsec. (l). Pub. L. 114-328, §1832(b)(1)(A), redesignated subsec. (l) as (k).2012-Subsec. (g). Pub. L. 112-154 designated existing provisions as par. (1), inserted "willfully and intentionally" before "misrepresented", substituted "a period of not less than five years" for "a reasonable period of time, as determined by the Secretary", and added pars. (2) and (3).2011-Subsecs. (b), (c)(2). Pub. L. 111-350 substituted "section 134 of title 41" for "section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403)". 2010-Subsec. (f)(2). Pub. L. 111-275, §104(b)(1)(A), designated existing provisions as subpar. (A), inserted at end of subpar. (A) "Application for inclusion in the database shall constitute permission under section 552a of title 5 (commonly referred to as the Privacy Act) for the Secretary to access such personal information maintained by the Secretary as may be necessary to verify the information contained in the application.", and added subpar. (B).Subsec. (f)(4). Pub. L. 111-275, §104(b)(1)(B), added par. (4) and struck out former par. (4) which read as follows: "In maintaining the database, the Secretary shall carry out at least the following two verification functions:"(A) Verification that each small business concern listed in the database is owned and controlled by veterans."(B) In the case of a veteran who indicates a service-connected disability, verification of the service-disabled status of such veteran."2008-Subsecs. (j) to (l). Pub. L. 110-389 added subsec. (j) and redesignated former subsecs. (j) and (k) as (k) and (l), respectively.
STATUTORY NOTES AND RELATED SUBSIDIARIES
EFFECTIVE DATE OF 2021 AMENDMENT Pub. L. 116-283, div. A, title VIII, §862(b)(1), Jan. 1, 2021, 134 Stat. 3776, provided that the amendment made by section 862(b) of Pub. L. 116-283 shall take effect on the transfer date, which is 2 years after Jan. 1, 2021, see section 862(a) of Pub. L. 116-283 set out as a note under section 657f of Title 15, Commerce and Trade.
EFFECTIVE DATE OF 2020 AMENDMENT Pub. L. 116-183, §2(b), Oct. 30, 2020, 134 Stat. 896, provided that: "Subsection (k) of section 8127 of title 38, United States Code, as added by subsection (a), shall apply with respect to a contract entered into after the date of the enactment of this Act [Oct. 30, 2020]." Pub. L. 116-155, §2(c), Aug. 8, 2020, 134 Stat. 699, provided that: "The amendments made by this section [amending this section] shall apply with respect to a contract entered into on or after the date of the enactment of this Act [Aug. 8, 2020]."
EFFECTIVE DATE OF 2016 AMENDMENT Amendment by section 1832(b), (d) of Pub. L. 114-328 effective on the date on which the Administrator of the Small Business Administration and the Secretary of Veterans Affairs jointly issue implementing regulations [regulations effective Oct. 1, 2018], see section 1832(e) of Pub. L. 114-328 set out as a note under section 632 of Title 15, Commerce and Trade. Pub. L. 114-328, div. A, title XVIII, §1832(f)(2), Dec. 23, 2016, 130 Stat. 2661, provided that: "Paragraph (8) of subsection (f) of title 38, United States Code, as added by paragraph (1), shall apply with respect to a verification decision made by the Secretary of Veterans Affairs on or after the date of the enactment of this Act [Dec. 23, 2016]." Pub. L. 114-315, title V, §501(b), Dec. 16, 2016, 130 Stat. 1566, provided that: "The amendments made by subsection (a) [amending this section] shall take effect on the date that is 180 days after the date of the enactment of this Act [Dec. 16, 2016] and shall apply with respect to contracts awarded on or after such date."
EFFECTIVE DATE Pub. L. 109-461, title V, §502(d), Dec. 22, 2006, 120 Stat. 3435, provided that: "This section [enacting this section and provisions set out as a note below] and the amendments made by this section shall take effect on the date that is 180 days after the date of the enactment of this Act [Dec. 22, 2006]."
TRANSITION PROVISIONS Pub. L. 111-275, title I, §104(b)(2), Oct. 13, 2010, 124 Stat. 2868, provided that: "In the case of a small business concern included in the database as of the date of the enactment of this Act [Oct. 13, 2010] for which, as of such date, the Secretary of Veterans Affairs has not verified the status of such concern in accordance with paragraph (4) of subsection (f) of section 8127 of title 38, United States Code, as amended by paragraph (1), not later than 60 days after the date of the enactment of this Act, the Secretary shall notify the person who owns and controls the concern that- "(A) the Secretary is required to verify the status of the concern in accordance with such paragraph, as so amended;"(B) verification of such status shall require that the person who owns and controls the concern apply for inclusion in the database in accordance with such subsection, as so amended;"(C) application for inclusion in the database shall constitute permission under section 552a of title 5, United States Code (commonly referred to as the Privacy Act), for the Secretary to access such personal information maintained by the Secretary as may be necessary to verify the information contained in the application; and "(D) the person who owns and controls the concern must submit to the Secretary all information required by the Secretary under this paragraph within 90 days of receiving the Secretary's notice of such requirement or the concern shall be removed from the database." Pub. L. 109-461, title V, §502(b), Dec. 22, 2006, 120 Stat. 3435, provided that: "A small business concern that is listed in any small business database maintained by the Secretary of Veterans Affairs on the date of the enactment of this Act [Dec. 22, 2006] shall be presumed to be eligible for inclusion in the database under subsection (f) of section 8127 of title 38, United States Code, as added by subsection (a), during the period beginning on the effective date of that section [see Effective Date note above] and ending one year after such effective date. Such a small business concern may be removed from the database during that period if it is found not to be a small business concern owned and controlled by veterans (as defined in subsection (k) of such section)."