[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3798 Introduced in House (IH)]







104th CONGRESS
  2d Session
                                H. R. 3798

To provide regulatory relief for small business concerns, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 11, 1996

Mr. Solomon  (for himself, Mr. Zeliff, Mrs. Kelly, Mr. Montgomery, Mr. 
    Coble, Mr. English of Pennsylvania, Mr. Bentsen, Mr. Weldon of 
     Pennsylvania, Mr. Pomeroy, Mrs. Vucanovich, Mr. Manzullo, Mr. 
   Funderburk, Mr. Dickey, Mr. Boehlert, Mr. Chambliss, Mr. Bunn of 
 Oregon, Mr. Hutchinson, Mr. Richardson, Mr. Johnson of South Dakota, 
Mr. Clinger, Mr. Hefley, Mr. Everett, Mr. Barr of Georgia, Mrs. Myrick, 
Mr. Wamp, Mr. Young of Alaska, Mr. Schaefer, Mr. Lewis of Kentucky, Mr. 
Barrett of Nebraska, Mr. Wicker, Mr. Mascara, Mr. Bachus, Mr. Skelton, 
   Mr. Roberts, Mr. Condit, Mr. Thomas, Ms. Danner, Mr. Bishop, Mr. 
 Brewster, Mr. Goodling, Mr. Riggs, Mr. Calvert, Mr. Shays, Mr. Blute, 
Mrs. Clayton, Ms. Pryce, Mr. Barton of Texas, Mr. Bereuter, Ms. Kaptur, 
    Mr. Herger, Mr. Doyle, Mr. Frank of Massachusetts, Mr. Neal of 
Massachusetts, Mr. Fox of Pennsylvania, Mr. Greenwood, Mr. Cunningham, 
  Mr. Fattah, Mr. Bartlett of Maryland, Mr. Stenholm, Mr. Gilman, Mr. 
McHugh, Mr. Scarborough, Mr. Jones, Mr. Engel, Mr. Pete Geren of Texas, 
  Mr. Meehan, Mr. Holden, Mr. DeFazio, Mr. Combest, Mrs. Thurman, Mr. 
 Pickett, Mr. Linder, Mr. Hayes, Mr. Deal of Georgia, Mr. Christensen, 
Mr. Hastings of Florida, Mr. Franks of Connecticut, Mr. Radanovich, Mr. 
 Gekas, Mr. McHale, Ms. Greene of Utah, Mr. Goss, Mr. Smith of Texas, 
Mr. LaHood, Mr. Mica, Mr. Lewis of Georgia, Mr. Foglietta, Mr. Quillen, 
 Mr. Dreier, Mr. Stearns, and Mr. Taylor of North Carolina) introduced 
   the following bill; which was referred to the Committee on Small 
  Business, and in addition to the Committee on Government Reform and 
 Oversight, 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 provide regulatory relief for small business concerns, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Small Business Regulatory 
Relief Act of 1996''.

SEC. 2. PURPOSE.

    The purpose of this Act is to establish a system of confidential 
voluntary compliance with Federal regulations that will--
            (1) provide a low cost process to significantly improve 
        voluntary compliance by small business concerns with Federal 
        regulations;
            (2) improve the level of outreach to the small business 
        community and reduce duplication of effort among Federal 
        agencies;
            (3) be funded without additional appropriations;
            (4) use the existing federally supported national small 
        business development center service delivery network;
            (5) provide a mechanism for unbiased feedback to Federal 
        agencies on the small business regulatory environment; and
            (6) stimulate the development of partnerships between 
        nonpunitive assistance programs and the small business 
        development center service delivery network in order to improve 
        access to and utilization of these programs by the small 
        business community.

SEC. 3. ESTABLISHMENT OF PROGRAM.

    The Small Business Act (15 U.S.C. 637 et seq.) is amended--
            (1) by redesignating section 31 as section 32; and
            (2) by inserting after section 30 the following new 
        section:

``SEC. 31. SMALL BUSINESS REGULATORY RELIEF.

    ``(a) Definitions.--For purposes of this section--
            ``(1) the term `Chairperson' means the Chairperson of the 
        Council;
            ``(2) the term `Council' means the Small Business 
        Regulatory Relief Council established under subsection (b);
            ``(3) the term `participating agency' means--
                    ``(A) the Environmental Protection Agency;
                    ``(B) the Internal Revenue Service of the 
                Department of the Treasury; and
                    ``(C) the Occupational Safety and Health 
                Administration of the Department of Labor;
            ``(4) the term `small business development center' means a 
        small business development center established pursuant to 
        section 21; and
            ``(5) the term `system of voluntary compliance' means the 
        system under which small business development centers or 
        consortia of small business development centers provide 
        confidential assistance to one or more small business concerns 
        in achieving voluntary compliance with regulatory requirements 
        imposed on small business concerns by a participating agency.
    ``(b) Small Business Regulatory Relief Council.--
            ``(1) Establishment.--Not later than 30 days after the date 
        of enactment of this Act, there shall be established a Small 
        Business Regulatory Relief Council in accordance with this 
        subsection.
            ``(2) Membership.--The Council shall be composed of 13 
        members, as follows:
                    ``(A) The Associate Administrator for the Office of 
                Small Business Development Centers.
                    ``(B) One individual selected by the Administrator 
                of the Environmental Protection Agency from among grade 
                V or higher senior executive service employees of the 
                Environmental Protection Agency.
                    ``(C) One individual selected by the Secretary of 
                the Treasury from among grade V or higher senior 
                executive service employees of the Internal Revenue 
                Service of the Department of the Treasury.
                    ``(D) One individual selected by the Secretary of 
                Labor from among grade V or higher senior executive 
                service employees of the Occupational Safety and Health 
                Administration of the Department of Labor.
                    ``(E) Four individuals selected by an association 
                representing the majority of small business development 
                centers, authorized in section 21(a)(3)(A), from among 
                representatives of small business development centers.
                    ``(F) One individual selected by the National Small 
                Business Development Center Advisory Council.
                    ``(G) Four individuals selected by the 
                Administrator from among small business owners 
                nominated by national organizations representing small 
                business concerns.
            ``(3) Chairperson.--The Council shall elect a Chairperson 
        from among its members to serve for a term of one year.
            ``(4) Period of appointment; vacancies.--
                    ``(A) Period of appointment.--Each member of the 
                Council shall be appointed for a term of one year. No 
                member of the Council may serve more than three 
                consecutive terms.
                    ``(B) Vacancies.--A vacancy in the Council shall 
                not affect the powers of the Council, and shall be 
                filled in the same manner as the original appointment 
                was made.
            ``(5) Meetings.--The Council shall meet at the call of the 
        Chairperson, but not less quarterly.
            ``(6) Powers of the council.--
                    ``(A) Hearings.--The Council may hold such 
                hearings, sit and act at such times and places, take 
                such testimony, and receive such evidence as the 
                Council considers necessary to carry out this section.
                    ``(B) Information from federal agencies.--The 
                Council may secure directly from any Federal department 
                or agency, such information as the Council considers 
                necessary to carry out this section. Upon request of 
                the Chairperson, the head of such department or agency 
                shall furnish such information to the Council.
                    ``(C) Postal services.--The Council may use the 
                United States mails in the same manner and under the 
                same conditions as other departments and agencies of 
                the Federal Government.
                    ``(D) Gifts.--The Council may accept, use, and 
                dispose of gifts or donations of services or property.
            ``(7) Council personnel matters.--
                    ``(A) Compensation of members.--
                            ``(i) In general.--Each member of the 
                        Council who is not an officer or employee of 
                        the Federal Government or of a small business 
                        development center shall be compensated at a 
                        rate equal to the daily equivalent of the 
                        annual rate of basic pay prescribed for level 
                        IV of the Executive Schedule under section 5315 
                        of title 5, United States Code, for each day 
                        (including travel time), during which such 
                        member is engaged in the performance of the 
                        duties of the Council.
                            ``(ii) Employees of federal government.--
                        Members of the Council who are officers or 
                        employees of the United States may not receive 
                        additional pay, allowances, or benefits by 
                        reason of their service on the Council.
                    ``(B) Travel expenses.--Members of the Council 
                shall receive travel expenses, including per diem in 
                lieu of subsistence, in accordance with sections 5702 
                and 5703 of title 5, United States Code.
                    ``(C) Staff.--
                            ``(i) In general.--The Chairperson may, 
                        without regard to the civil service laws and 
                        regulations, appoint and terminate an Executive 
                        Director and such other additional personnel as 
                        may be necessary to enable the Council to 
                        perform its duties. The employment of an 
                        Executive Director shall be subject to 
                        confirmation by the Council.
                            ``(ii) Compensation.--The Chairperson may 
                        fix the compensation of the Executive Director 
                        and other personnel without regard to the 
                        provisions of chapter 51 and subchapter III of 
                        chapter 53 of title 5, United States Code, 
                        relating to classification of positions and 
                        General Schedule pay rates, except that the 
                        rate of pay for the Executive Director and 
                        other personnel may not exceed the rate payable 
                        for level IV of the Executive Schedule under 
                        section 5316 of such title.
                    ``(D) Detail of government employees.--Any Federal 
                Government employee may be detailed to the Council 
                without reimbursement, and such detail shall be without 
                interruption or loss of civil service status or 
                privilege.
                    ``(E) Procurement of temporary and intermittent 
                services.--The Chairperson may procure temporary and 
                intermittent services under section 3109(b) of title 5, 
                United States Code, at rates for individuals which do 
                not exceed the daily equivalent of the annual rate of 
                basic pay prescribed for level V of the Executive 
                Schedule under section 5316 of such title.
                    ``(F) Federal procurement.--The Council may 
                contract in its own name, including contracting for 
                administrative services and for meeting such national 
                delivery support requirements as it determines 
                necessary and appropriate, under procedures to be 
                determined by the Council, without regard to the 
                provisions of title III of the Federal Property and 
                Administrative Services Act, or any other law, rule or 
                regulation governing Federal procurement.
                    ``(G) Access to federal facilities.--The Council 
                shall have access to any Federal facilities as the 
                Chairperson, in consultation with the General Services 
                Administration or any other agency as appropriate, 
                determines appropriate, to carry out its functions.
    ``(c) Duties of Participating Agencies.--
            ``(1) Submission of plan.--Not later than 60 days after the 
        date of enactment of this Act, each participating agency shall 
        submit to the Council a five year plan for the establishment 
        and maintenance of the partnership with small business 
        development centers for a system of voluntary compliance.
            ``(2) Contents of plan.--Each plan submitted under 
        paragraph (1) shall include--
                    ``(A) the regulatory compliance objectives of the 
                participating agency;
                    ``(B) the regulatory compliance priorities of the 
                participating agency;
                    ``(C) identification of the types of services, 
                materials, and resources to be developed or used by the 
                participating agency;
                    ``(D) participating agency facilities, expertise, 
                and other resources that may be accessed by the 
                Chairperson, a small business development center, or a 
                small business concern participating in the system of 
                voluntary compliance established under this section; 
                and
                    ``(E) performance outcome measures and evaluation 
                criteria to be used by the participating agency in 
                evaluating the effectiveness of the system of voluntary 
                compliance to be established under this section.
            ``(3) Duplication of effort.--In carrying out this 
        subsection, each participating agency shall, to the maximum 
        extent practicable, ensure that participating agencies are not 
        carrying out duplicative efforts.
    ``(d) Duties of Council.--
            ``(1) Review of participating agency plan.--Not later than 
        30 days after the date on which a participating agency submits 
        a plan to the Council, or the Chairperson authorizes the 
        Council to prepare or have prepared a plan under subsection 
        (c)(1), the Council shall--
                    ``(A) approve the plan; or
                    ``(B) make such modifications to the plan as the 
                Council determines to be necessary to carry out the 
                purpose of this Act.
            ``(2) Establishment of guidelines.--
                    ``(A) In general.--Based on each plan approved or 
                modified under paragraph (1), not later than 180 days 
                after the date of enactment of this Act, the Council 
                shall--
                            ``(i) develop a program for the 
                        implementation of each participating agency 
                        plan;
                            ``(ii) publish guidelines for the 
                        establishment by small business development 
                        centers or consortia of small business 
                        development centers of a system of voluntary 
                        compliance in accordance with this section;
                            ``(iii) send a written copy of those 
                        guidelines to each small business development 
                        center and to each participating agency; and
                            ``(iv) identify national service delivery 
                        support requirements including personnel 
                        training, resource material development, 
                        communication technology, monitoring, and 
                        program evaluation.
                    ``(B) Guideline requirements.--The guidelines 
                published under subparagraph (A) shall--
                            ``(i) establish priorities for the types of 
                        assistance to be provided to small business 
                        concerns under the system of voluntary 
                        compliance established by small business 
                        development centers or consortia of small 
                        business development centers under this 
                        section; and
                            ``(ii) with respect to that assistance, 
                        establish standards relating to educational, 
                        technical, and communications tools, resources, 
                        and support services to be provided to small 
                        business concerns participating in the system 
                        of voluntary compliance.
                    ``(C) Program delivery.--The guidelines established 
                under subparagraph (A) shall--
                            ``(i) require that the assistance to small 
                        business concerns participating in the system 
                        of voluntary compliance under this section be 
                        carried out by small business development 
                        centers or by consortia of small business 
                        development centers; and
                            ``(ii) provide that certain national 
                        service delivery support requirements be 
                        carried out under contract with an association 
                        representing the majority of small business 
                        development centers.
                    ``(D) Enforcement of guidelines.--For purposes of 
                this paragraph, the provision of small business 
                development center assistance shall not be considered 
                to be an enforcement action for an Federal agency.
            ``(3) Annual report.--The Council shall, on an annual 
        basis, submit to the President and to the Committees on Small 
        Business of the Senate and the House of Representatives a 
        report, which shall include--
                    ``(A) a description of the types of assistance 
                provided by small business development centers and 
                consortia of small business development centers to 
                small business concerns participating in the system of 
                voluntary compliance;
                    ``(B) the level of outreach to small business 
                concerns achieved by small business development centers 
                and consortia of small business development centers 
                under this section;
                    ``(C) the quality and effectiveness of the 
                assistance provided by small business development 
                centers and consortia of small business development 
                centers to small business concerns participating in the 
                system of voluntary compliance;
                    ``(D) problems encountered by small business 
                development centers and consortia of small business 
development centers in carrying out this section; and
                    ``(E) recommendations for improvements in the 
                regulation of small business concerns participating in 
                the system of voluntary compliance.
    ``(e) Duties of Small Business Development Centers.--
            ``(1) Work plan.--Beginning not later than 60 days after 
        the date on which the guidelines are published by the Council 
        under subsection (d)(2)(A), each small business development 
        center shall, on an annual basis, submit to the Council a work 
        plan under which the small business development center, either 
        individually or as part of a consortium of small business 
        development centers, will carry out the system of voluntary 
        compliance in accordance with such guidelines.
            ``(2) Assistance provided.--The assistance to small 
        business concerns participating in the system of voluntary 
        compliance shall include--
                    ``(A) access to information and resources;
                    ``(B) training and educational activities;
                    ``(C) confidential, free-of-charge, one-on-one in-
                depth counseling;
                    ``(D) technical assistance; and
                    ``(E) referrals to experts.
            ``(3) Reports; recommendations.--Each small business 
        development center and consortium of small business development 
        centers shall--
                    ``(A) on a semiannual basis, submit to the Council 
                a report on the assistance provided by the small 
                business development center or consortium under the 
                system of voluntary compliance established under this 
                section; and
                    ``(B) on an annual basis, submit to the Council 
                recommendations for improving the regulation of small 
                business concerns.
                    ``(C) Nothing in this or any other section shall 
                require a small business development center, any 
                consortium of small business development centers, or 
                any person relied on by any such small business 
                development center to provide services, to disclose the 
                name or address of any small business concern 
                participating in a system of voluntary compliance under 
                this section.
    ``(f) Evaluations.--
            ``(1) By the council.--
                    ``(A) In general.--The Council shall evaluate the 
                system of voluntary compliance on an annual basis.
                    ``(B) Compliance with work plans.--In carrying out 
                subparagraph (A), the Council--
                            ``(i) shall determine whether--
                                    ``(I) the participating small 
                                business development center or 
                                consortium of small business 
                                development centers is performing in 
                                accordance with the most recent annual 
                                work plan submitted by the small 
                                business development center or 
                                consortium of small business 
                                development centers under subsection 
                                (e)(1); and
                                    ``(II) the quality of assistance 
                                provided by the small business 
                                development center or consortium of 
                                small business development centers to 
                                small business concerns under this 
                                section is acceptable; and
                            ``(ii) may review any client records 
                        maintained by the small business development 
                        center or consortium of small business 
                        development centers, except that in conducting 
                        any such review, the Council shall ensure that 
                        the identity of clients and all information 
                        relating to clients remains confidential, and 
                        that no identifying information about any 
                        client is provided to any Federal agency.
            ``(2) Independent national assessment.--Upon the expiration 
        of the three-year period beginning on the date on which all 
        small business development centers and consortia of small 
        business development centers begin implementation of the work 
        plans described under subsection (e)(1), the Council shall 
        provide for an evaluation of the system of voluntary compliance 
        established under this section by an independent third party.
    ``(g) Funding.--
            ``(1) Set-aside.--To assist small business development 
        centers and consortia of small business development centers in 
        carrying out the system of voluntary compliance under this 
        section--
                    ``(A) the Occupational Safety and Health 
                Administration of the Department of Labor shall set 
                aside not less than 0.38 percent of amounts made 
                available to the Occupational Safety and Health 
Administration in each of fiscal years 1997, 1998, 1999, 2000, and 
2001;
                    ``(B) the Environmental Protection Agency shall set 
                aside--
                            ``(i) not less than 0.20 percent of amounts 
                        made available to the Environmental Protection 
                        Agency in fiscal year 1997;
                            ``(ii) not less than 0.24 percent of 
                        amounts made available to the Environmental 
                        Protection Agency in fiscal year 1998;
                            ``(iii) not less than 0.29 percent of 
                        amounts made available to the Environmental 
                        Protection Agency in fiscal year 1999; and
                            ``(iv) not less than 0.35 percent of 
                        amounts made available to the Environmental 
                        Protection Agency in each of the fiscal years 
                        2000 and 2001; and
                    ``(C) the Internal Revenue Service of the 
                Department of the Treasury shall set aside--
                            ``(i) not less than 0.25 percent of amounts 
                        made available to the Internal Revenue Service 
                        in fiscal year 1997;
                            ``(ii) not less than 0.31 percent of 
                        amounts made available to the Internal Revenue 
                        Service in fiscal year 1998; and
                            ``(iii) not less than 0.39 percent of 
                        amounts made available to the Internal Revenue 
                        Service in fiscal year 1999; and
                            ``(iv) not less than 0.49 percent of 
                        amounts made available to the Internal Revenue 
                        Service in each of the fiscal years 2000 and 
                        2001.
            ``(2) National regulatory relief fund.--
                    ``(A) In general.--Amounts set aside under 
                paragraph (1) shall be deposited in a fund, which shall 
                be established and administered by the Council, to be 
                known as the National Regulatory Relief Fund. 
                Subaccounts for each participating agency shall be 
                established within the National Regulatory Relief Fund.
                    ``(B) Unexpended amounts.--Any amounts in the 
                National Regulatory Relief Fund that are not obligated 
                or expended during the fiscal year in which the amounts 
                are deposited shall remain available for obligation in 
                any succeeding fiscal year.
            ``(3) Distribution of assistance.--
                    ``(A) In general.--Subject to subparagraph (C), in 
                each fiscal year, amounts deposited in the National 
                Regulatory Relief Fund under paragraph (2) shall be 
                distributed by the Council to the small business 
                development center network in each State in accordance 
                with subparagraph (B).
                    ``(B) Population-based funding formula.--The small 
                business development center in each State shall receive 
                a distribution under subparagraph (A) in an amount that 
                is equal to the sum of--
                            ``(i) the pro rata share of the State of 
                        the total amount distributed by the Council 
                        under subparagraph (A), based upon the 
                        population of the State as compared to the 
                        total population in the United States, as 
                        determined by the Council; and
                            ``(ii) $300,000.
                    ``(C) Administrative costs.--Of amounts deposited 
                in the National Regulatory Relief Fund under paragraph 
                (2), not more than 5 percent shall be used by the 
                Council for administration, evaluation, and reporting 
                costs.''.
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