Overview
Title
To establish requirements relating to certification of small business concerns owned and controlled by women for certain purposes, and for other purposes.
ELI5 AI
H.R. 1816 is a bill that wants to make sure businesses owned by women follow certain rules to be officially recognized, so they can count towards special goals the government has. It works to keep things fair and clear by making sure everyone follows the same rules and checks if they are doing it right.
Summary AI
H.R. 1816, titled the “WOSB Accountability Act,” seeks to improve the certification process for small businesses owned and controlled by women. The bill prevents self-certified women-owned small businesses (WOSBs) from being counted toward certain government and agency goals until officially certified through an approved process, promoting a standardized and verified certification procedure. Additionally, the legislation requires regular updates to Congress on certification progress and implementation efforts, ensuring transparency and accountability, while not authorizing additional funding for its implementation.
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AnalysisAI
The proposed legislation, known as the "WOSB Accountability Act" (H. R. 1816), introduced to the 119th Congress on March 3, 2025, aims to establish stricter requirements for the certification of small business concerns owned and controlled by women, specifically for the purpose of calculating federal procurement goals. Under the current system, some women-owned small businesses (WOSBs) may self-certify, but this bill seeks to exclude these self-certified entities from being counted towards government procurement goals. Instead, only those WOSBs that have been officially certified by the Small Business Administration (SBA) or an approved national certifying entity will be included.
General Summary of the Bill
The bill is designed to ensure that only women-owned small businesses that have been formally certified are counted toward meeting governmentwide contracting goals. By amending the Small Business Act, H. R. 1816 plans to rectify the over-representation of self-certified WOSBs in federal contracting targets. Furthermore, it demands a formal certification process and mandates that the SBA regularly reports on its progress regarding these requirements.
Summary of Significant Issues
The bill introduces several issues that merit consideration:
Exclusion of Self-Certified Businesses: The exclusion of self-certified WOSBs from procurement goals might hinder those businesses that have not yet received official certification, potentially impacting their opportunities and competitive standing.
Uncertain Transition Period: There is ambiguity concerning the transition from self-certification to official certification, leading to uncertainty among businesses during this interim period.
Complex Certification Process: The language detailing the certification timeline and process could be complex, requiring legal assistance for business owners to navigate efficiently.
Administrative Burden: The requirement for the SBA to provide quarterly briefings on the progress concerning these requisites might divert valuable resources from other critical functions of the agency.
No Additional Funding: Compliance with the Cut-As-You-Go (CUTGO) measure indicates that no new funding will be allocated, potentially limiting the SBA's ability to effectively implement the bill's new procedures.
Impact on the Public and Stakeholders
Broad Public Impact
For the general public, the enactment of this legislation could improve the reliability and accountability of federal spending on WOSBs. By ensuring only certified businesses are counted, the bill aims to enhance the integrity of federal procurement goals. However, the reduction of opportunities for businesses that are self-certified but not yet officially recognized could be seen as a disadvantage, underscoring the need for a streamlined and accessible certification process.
Impact on Specific Stakeholders
Women-Owned Small Businesses: These businesses could face challenges if they are currently relying on self-certification. The necessity to obtain official certification could introduce delays and added burdens. While official certification may enhance the credibility of WOSBs, businesses must navigate potential administrative complexities.
Small Business Administration (SBA): The SBA will incur additional responsibilities related to the implementation, monitoring, and reporting required by the new certification standards. Without additional funding, this could strain the agency's resources.
Federal Agencies: Agencies tasked with meeting procurement goals might experience changes in how WOSBs contribute to these targets, potentially impacting their procurement strategies.
In sum, while the "WOSB Accountability Act" aims to bring more accountability and standardization to the federal procurement process for women-owned small businesses, it poses notable challenges and uncertainties that require careful consideration and management to ensure successful implementation.
Issues
The exclusion of self-certified WOSBs from governmentwide and agency goals could potentially reduce opportunities for small businesses owned and controlled by women that are not yet certified, disadvantaging them against certified businesses. This issue is discussed in Section 2(a).
The transition period for existing self-certified WOSBs to become certified by an official certifying entity is not specified, leading to uncertainty for these businesses during the interim period. This is addressed in Section 2(b).
Language referring to the timeline and process for certification is complex and may require legal assistance for small business owners to fully understand. This issue is found in Sections 2(b) and 2(c).
Some aspects of the regulation, such as the specific rules the Administrator is required to issue within one year, are not detailed in Section 2(b), making future rulemaking a source of variability and uncertainty.
The requirement for quarterly briefings to committees may impose administrative burdens on the Small Business Administration, possibly diverting resources from other critical functions. This is described in Section 2(c).
The bill specifies compliance with CUTGO, indicating no new funding will be provided. This may limit the Small Business Administration's ability to effectively implement new requirements without additional resources, as mentioned in Section 2(e).
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The first section of the act provides the short title, stating that the law may be referred to as the “WOSB Accountability Act.”
2. Exclusion of self-certified small business concerns owned and controlled by women from goals Read Opens in new tab
Summary AI
This section of the bill specifies that only women-owned small businesses that have been officially certified will be counted towards government contracting goals. While self-certified businesses will not immediately count towards these goals, they may be counted temporarily until a final certification decision is made, and the Small Business Administration must regularly report progress on these new requirements.