Overview
Title
To amend the Small Business Act to include surviving children in the definition of small business concern owned and controlled by service-disabled veterans, and for other purposes.
ELI5 AI
Imagine a small toy store run by a brave soldier. If the soldier can't take care of the store anymore because they are gone, this bill says their child can take over the store so it stays special and veteran-owned.
Summary AI
H.R. 9930 is a bill proposed in the U.S. House of Representatives to change the Small Business Act so that children who survive a service-disabled veteran can be considered owners of the veteran's small business. According to the bill, if a veteran who owns a qualifying small business passes away, their child can acquire their ownership share to keep the business qualified as veteran-owned. This ownership status can continue for up to three years or until the child decides to give up their ownership. The bill also clarifies that a "surviving child" includes both biological and legally adopted children of the veteran.
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AnalysisAI
General Summary of the Bill
The bill, titled H. R. 9930, proposes to amend the Small Business Act to expand the eligibility criteria for small businesses owned and operated by service-disabled veterans. Specifically, it intends to include "surviving children" of deceased veterans within its definition, allowing these businesses to maintain their status under certain conditions even after the veteran owner has passed away. If a surviving child inherits the veteran’s ownership stake, the business can hold onto its classification for up to three years following the veteran's death or until the child relinquishes ownership.
Summary of Significant Issues
Complex Legal Language: The bill uses formal legal terminology that could be difficult for the average reader to navigate. This complexity might create barriers to understanding and could result in misinterpretations of the bill’s intentions and stipulations.
Ambiguity with Multiple Heirs: The bill does not address scenarios involving multiple surviving children or how the provisions would apply if the child is a minor. This oversight could lead to potential legal disputes or complications among heirs.
Arbitrary Time Constraints: The stipulation that the business can retain its status for a set period of three years might not match the practical needs of the inheriting child, particularly if they are too young or lack the relevant experience to manage a business effectively.
Exclusion of Certain Dependents: The definition of "surviving child" is limited to biological or legally adopted children, potentially excluding stepchildren or other dependents. This limitation could give rise to ethical considerations about unfair exclusion.
Unclear Database Inclusion Requirements: The bill mentions a requirement for the business to be included in a database but fails to explain the specifics around this inclusion, potentially making compliance problematic or unclear.
Impact on the Public
Broadly, the bill could support continuity for small businesses initially owned by service-disabled veterans. By allowing surviving children to inherit these operations without losing certain advantageous classifications, the legislation seeks to preserve business stability and support family legacies following a veteran’s death.
For the general public, this could mean continued local employment opportunities and community engagement by businesses that might otherwise struggle post-transition. However, the bill's potential complexities and ambiguities could lead to implementation challenges, risking the very stability it seeks to promote.
Impact on Specific Stakeholders
Veteran Families: The bill primarily benefits families of service-disabled veterans by providing a framework for generational business transfer. It recognizes the surviving child's right to continue the veteran’s venture, thus protecting their financial interests and livelihoods.
Businesses: Small businesses owned by veterans gain an added layer of security, as the legislation would permit a smoother transition upon the owner’s death. However, unclear provisions and limitations on eligible "surviving children" could hinder smooth transition efforts in some situations.
Legal and Administrative Entities: Agencies responsible for implementing and enforcing this amendment may face difficulties due to the legal language complexity and undefined requirements for database inclusion. Efforts might be needed to clarify these areas to facilitate smooth application of the law.
Overall, while the bill serves a noble goal of safeguarding veteran family businesses, its success will depend on addressing the outlined issues to ensure fairness and clarity in its application.
Issues
The section contains complex language and legal references, such as 'Section 3(q) of the Small Business Act (15 U.S.C. 632(q)) is amended,' which may be difficult for readers unfamiliar with legal statutes to understand. This could lead to misunderstandings or misinterpretations of the bill's provisions. (Section 1)
The provision related to the 'surviving child' requires the child to acquire the veteran's ownership interest but does not specify what happens if there are multiple surviving children or if the child is a minor. This lack of specification could lead to legal complications or disputes among potential heirs. (Section 1)
The time period defined for retaining the business status is somewhat arbitrary ('3 years after the date of the veteran’s death') and may not align with the child's ability to meaningfully run the business, especially if the child is young or lacks experience. This could affect the sustainability of the business and its capacity to meet its obligations. (Section 1)
The definition of 'surviving child' relies on biological or legal adoption, potentially excluding stepchildren or other dependents who might have been regarded as children by the deceased veteran. This could lead to ethical concerns and disputes about who qualifies as a 'surviving child' under the bill. (Section 1)
The requirement for the business to be 'included in the database described in section 36' is not explained within this text, leaving ambiguity about what that entails or how compliance is verified. This lack of clarity might create challenges in implementation and enforcement of the bill's provisions. (Section 1)
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. Inclusion of surviving children in small business concern owned and controlled by service-disabled veterans definition Read Opens in new tab
Summary AI
The section amends the Small Business Act to allow a small business owned by a service-disabled veteran to remain eligible under certain conditions if the veteran dies. If a surviving child of the veteran inherits the business, it can retain its status for up to three years or until the child gives up their ownership.