102 STAT. 3856

PUBLIC LAW 100-656—NOV. 15, 1988

to compete on an equal basis in the mainstream of the Amer-
ican economy;

(2) affirm that the measure of success of the Capital Owner-
ship Development Program, and the section 8(a) authority, shall
be the number of competitive firms that exit the Program
without being unreasonably reliant on section 8(a) contracts and
that are able to compete on an equal basis in the mainstream of
the American economy;

(3) ensure that program benefits accrue to individuals who are
both socially and economically disadvantaged;

(4) increase the number of small businesses owned and con-
trolled by such individuals from which the United States may
purchase products and services (including construction work);
and

(5) ensure integrity, competence, and efficiency in the
administration of business development services and the Fed-
eral contracting opportunities made available to eligible small
businesses.

Establishment.

TITLE II—PROGRAM ORGANIZATION AND
PARTICIPATION

SEC. 201. PROGRAM ADMISSION.

(a) ELIGIBILITY OF PARTICIPANTS.—Section 7(j)(ll) of the Small
Business Act (15 U.S.C. 636(j)(ll)) is amended by striking out "(11)"
and inserting in lieu thereof "(11)(A)" and by adding the following
new subparagraphs:

"(B) Except as provided in section 602(d) of the Business Opportu-
nity Development Reform Act of 1988, any individual upon whom
eligibility is based pursuant to section 8(a)(4), shall be permitted to
assert such eligibility for only one small business concern. Notwith-
standing the provisions of the preceding sentence, no individual who
was determined pursuant to section 8(a) to be socially and economi-
cally disadvantaged before the effective date of this subparagraph
shall be permitted to assert such disadvantage with respect to
any other concern making application for certification after such
effective date.

"(C) No concern, previously eligible for the award of contracts
pursuant to section 8(a), shall be subsequently recertified for pro-
gram participation if its prior participation in the program was
concluded for any of the reasons described in paragraph (10)(E).

"(D) A concern eligible for the award of contracts pursuant to this
subsection shall remain eligible for such contracts if there is a
transfer of ownership and control (as defined pursuant to section
8(aX4)) to individuals who are determined to be socially and
economically disadvantaged pursuant to section 8(a). In the event of
such a transfer, the concern, if not terminated or graduated, shall be
eligible for a period of continued participation in the program not to
exceed the time limitations prescribed in paragraph (15).

"(E) There is established a Division of Program Certification and
Eligibility (hereinafter referred to in this paragraph as the
"Division") that shall be made part of the Office of the Associate
Administrator for Minority Small Business and Capital Ownership
Development. The Division shall be headed by a Director who shall
report directly to such Associate Administrator. The Division shall
establish Geld offices within such regional offices of the Administra-