H.R. 1088 — Introduced in House

I 113th CONGRESS 1st Session H. R. 1088 IN THE HOUSE OF REPRESENTATIVES March 12, 2013 Ms. Herrera Beutler introduced the following bill; which was referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To require the Secretary of Transportation to develop a rule that does not allow Federal funds under the disadvantaged business enterprise program to be used for any enterprise that is no longer eligible under such program, and for other purposes. 1. Short title This Act may be cited as the Cheating Doesn’t Pay Act. 2. Rule regarding disadvantaged business enterprise (a) In general Except as provided in subsection (b), not later than 90 days after the date of enactment of this Act, the Secretary of Transportation shall issue a rule that— (1) does not allow Federal funds under the disadvantaged business enterprise program, described in section 1101(b) of MAP–21 (23 U.S.C. 101 note), to be used for any enterprise that is no longer eligible under such program; (2) 90 days after the date of enactment of this Act, each grant award, contract, or subcontract under the disadvantaged business enterprise program prohibits any Federal funds under the program to be provided to an enterprise as soon as the enterprise is no longer eligible under such program; (3) recuperates any unobligated funds made available under the disadvantaged business enterprise program to any enterprise no longer eligible under the program; and (4) ensures that if a disadvantaged business enterprise is no longer eligible to receive funds under the program, the Secretary shall take such measures as are practicable to expedite bidding with other eligible enterprises to complete any project started by the no longer eligible enterprise. (b) Graduation exception If a disadvantaged business enterprise is no longer eligible to receive funds under the program solely on the basis of its size, the Secretary shall allow such entity to complete any existing projects but shall not allow such enterprise to be eligible for additional funds for any new projects unless the State in which the enterprise is located recertifies it in accordance with section 1101(b) of MAP–21 (23 U.S.C. 101 note).