[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 203 Reported in House (RH)]






                                                 Union Calendar No. 125
107th CONGRESS
  1st Session
                                H. R. 203

                          [Report No. 107-210]

  To amend the Small Business Act to direct the Administrator of the 
 Small Business Administration to establish a pilot program to provide 
 regulatory compliance assistance to small business concerns, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 3, 2001

 Mr. Sweeney introduced the following bill; which was referred to the 
                      Committee on Small Business

                           September 21, 2001

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
[For text of introduced bill, see copy of bill as introduced on January 
                                3, 2001]

_______________________________________________________________________

                                 A BILL


 
  To amend the Small Business Act to direct the Administrator of the 
 Small Business Administration to establish a pilot program to provide 
 regulatory compliance assistance to 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 
Assistance Act of 2001''.

SEC. 2. PURPOSE.

    The purpose of this Act is to establish a pilot program to--
            (1) provide confidential assistance to small business 
        concerns;
            (2) provide small business concerns with the information 
        necessary to improve their rate of compliance with Federal and 
        State regulations;
            (3) create a partnership among Federal agencies to increase 
        outreach efforts to small business concerns with respect to 
        regulatory compliance;
            (4) provide a mechanism for unbiased feedback to Federal 
        agencies on the regulatory environment for small business 
        concerns; and
            (5) utilize the service delivery network of Small Business 
        Development Centers to improve access of small business 
        concerns to programs to assist them with regulatory compliance.

SEC. 3. DEFINITIONS.

    In this Act, the definitions set forth in section 36(a) of the 
Small Business Act (as added by section 4 of this Act) shall apply.

SEC. 4. SMALL BUSINESS REGULATORY ASSISTANCE PILOT PROGRAM.

    The Small Business Act (15 U.S.C. 637 et seq.) is amended--
            (1) by redesignating section 36 as section 37; and
            (2) by inserting after section 35 the following new 
        section:

``SEC. 36. SMALL BUSINESS REGULATORY ASSISTANCE PILOT PROGRAM.

    ``(a) Definitions.--In this section, the following definitions 
apply:
            ``(1) Administrator.--The term `Administrator' means the 
        Administrator of the Small Business Administration, acting 
        through the Associate Administrator for Small Business 
        Development Centers.
            ``(2) Association.--The term `Association' means the 
        association, established pursuant to section 21(a)(3)(A), 
        representing a majority of Small Business Development Centers.
            ``(3) Participating small business development center.--The 
        term `participating Small Business Development Center' means a 
        Small Business Development Center participating in the pilot 
        program.
            ``(4) Pilot program.--The term `pilot program' means the 
        pilot program established under this section.
            ``(5) Regulatory compliance assistance.--The term 
        `regulatory compliance assistance' means assistance provided by 
        a Small Business Development Center to a small business concern 
        to enable the concern to comply with Federal regulatory 
        requirements.
            ``(6) Small business development center.--The term `Small 
        Business Development Center' means a Small Business Development 
        Center described in section 21.
            ``(7) State.--The term `State' means each of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Virgin Islands, and Guam.
    ``(b) Authority.--In accordance with this section, the 
Administrator shall establish a pilot program to provide regulatory 
compliance assistance to small business concerns through participating 
Small Business Development Centers, the Association, and Federal 
compliance partnership programs.
    ``(c) Small Business Development Centers.--
            ``(1) In general.--In carrying out the pilot program, the 
        Administrator shall enter into arrangements with participating 
        Small Business Development Centers under which such centers 
        will provide--
                    ``(A) access to information and resources, 
                including current Federal and State nonpunitive 
                compliance and technical assistance programs similar to 
                those established under section 507 of the Clean Air 
                Act Amendments of 1990;
                    ``(B) training and educational activities;
                    ``(C) confidential, free-of-charge, one-on-one, in-
                depth counseling to the owners and operators of small 
                business concerns regarding compliance with Federal and 
                State regulations, provided that such counseling is not 
                considered to be the practice of law in a State in 
                which a Small Business Development Center is located or 
                in which such counseling is conducted;
                    ``(D) technical assistance; and
                    ``(E) referrals to experts and other providers of 
                compliance assistance who meet such standards for 
                educational, technical, and professional competency as 
                are established by the Administrator.
            ``(2) Reports.--
                    ``(A) In general.--Each participating Small 
                Business Development Center shall transmit to the 
                Administrator a quarterly report that includes--
                            ``(i) a summary of the regulatory 
                        compliance assistance provided by the center 
                        under the pilot program; and
                            ``(ii) any data and information obtained by 
                        the center from a Federal agency regarding 
                        regulatory compliance that the agency intends 
                        to be disseminated to small business concerns.
                    ``(B) Electronic form.--Each report referred to in 
                subparagraph (A) shall be transmitted in electronic 
                form.
                    ``(C) Interim reports.--During any time period 
                falling between the transmittal of quarterly reports, a 
                participating Small Business Development Center may 
                transmit to the Administrator any interim report 
                containing data or information considered by the center 
                to be necessary or useful.
                    ``(D) Limitation on disclosure requirements.--The 
                Administrator may not require a Small Business 
                Development Center to disclose the name or address of 
                any small business concern that received or is 
                receiving assistance under the pilot program, except 
                that the Administrator shall require such a disclosure 
                if ordered to do so by a court in any civil or criminal 
                enforcement action commenced by a Federal or State 
                agency.
    ``(d) Data Repository and Clearinghouse.--
            ``(1) In general.--In carrying out the pilot program, the 
        Administrator shall--
                    ``(A) act as the repository of and clearinghouse 
                for data and information submitted by Small Business 
                Development Centers; and
                    ``(B) transmit to the President and to the 
                Committees on Small Business of the Senate and House of 
                Representatives an annual report that includes--
                            ``(i) a description of the types of 
                        assistance provided by participating Small 
                        Business Development Centers under the pilot 
                        program;
                            ``(ii) data regarding the number of small 
                        business concerns that contacted participating 
                        Small Business Development Centers regarding 
                        assistance under the pilot program;
                            ``(iii) data regarding the number of small 
                        business concerns assisted by participating 
                        Small Business Development Centers under the 
                        pilot program;
                            ``(iv) data and information regarding 
                        outreach activities conducted by participating 
                        Small Business Development Centers under the 
                        pilot program, including any activities 
                        conducted in partnership with Federal agencies;
                            ``(v) data and information regarding each 
                        case known to the Administrator in which one or 
                        more Small Business Development Centers offered 
                        conflicting advice or information regarding 
                        compliance with a Federal or State regulation 
                        to one or more small business concerns;
                            ``(vi) any recommendations for improvements 
                        in the regulation of small business concerns; 
                        and
                            ``(vii) a list of regulations identified by 
                        the Administrator, after consultation with the 
                        Small Business and Agriculture Regulatory 
                        Enforcement Ombudsman, as being most burdensome 
                        to small business concerns, and recommendations 
to reduce or eliminate the burdens of such regulations.
    ``(e) Eligibility.--
            ``(1) In general.--A Small Business Development Center 
        shall be eligible to receive assistance under the pilot program 
        only if the center is certified under section 21(k)(2).
            ``(2) Waiver.--With respect to a Small Business Development 
        Center seeking assistance under the pilot program, the 
        Administrator may waive the certification requirement set forth 
        in paragraph (1) if the Administrator determines that the 
center is making a good faith effort to obtain such certification.
            ``(3) Effective date.--This subsection shall take effect on 
        October 1, 2001.
    ``(f) Selection of Participating State Programs.--
            ``(1) In general.--In consultation with the Association and 
        giving substantial weight to the Association's recommendations, 
        the Administrator shall select the Small Business Development 
        Center programs of 2 States from each of the following groups 
        of States to participate in the pilot program established by 
        this section:
                    ``(A) Group 1: Maine, Massachusetts, New Hampshire, 
                Connecticut, Vermont, and Rhode Island.
                    ``(B) Group 2: New York, New Jersey, Puerto Rico, 
                and the Virgin Islands.
                    ``(C) Group 3: Pennsylvania, Maryland, West 
                Virginia, Virginia, the District of Columbia, and 
                Delaware.
                    ``(D) Group 4: Georgia, Alabama, North Carolina, 
                South Carolina, Mississippi, Florida, Kentucky, and 
                Tennessee.
                    ``(E) Group 5: Illinois, Ohio, Michigan, Indiana, 
                Wisconsin, and Minnesota.
                    ``(F) Group 6: Texas, New Mexico, Arkansas, 
                Oklahoma, and Louisiana.
                    ``(G) Group 7: Missouri, Iowa, Nebraska, and 
                Kansas.
                    ``(H) Group 8: Colorado, Wyoming, North Dakota, 
                South Dakota, Montana, and Utah.
                    ``(I) Group 9: California, Guam, Hawaii, Nevada, 
                and Arizona.
                    ``(J) Group 10: Washington, Alaska, Idaho, and 
                Oregon.
            ``(2) Deadline for selection.--The Administrator shall make 
        selections under this subsection not later than 60 days after 
        promulgation of regulations under section 5 of the National 
        Small Business Regulatory Assistance Act of 2001.
    ``(g) Matching Not Required.--Subparagraphs (A) and (B) of section 
21(a)(4) shall not apply to assistance made available under the pilot 
program.
    ``(h) Distribution of Grants.--
            ``(1) In general.--Each State program selected to receive a 
        grant under subsection (f) in a fiscal year shall be eligible 
        to receive a grant in an amount not to exceed the product 
        obtained by multiplying--
                    ``(A) the amount made available for grants under 
                this section for the fiscal year; and
                    ``(B) the ratio that--
                            ``(i) the population of the State; bears to
                            ``(ii) the population of all the States 
                        with programs selected to receive grants under 
                        subsection (f) for the fiscal year.
            ``(2) Minimum amount.--Notwithstanding paragraph (1), the 
        minimum amount that a State program selected to receive a grant 
        under subsection (f) shall be eligible to receive under this 
        section in the fiscal year shall be $200,000.
    ``(i) Evaluation and Report.--Not later than 3 years after the 
establishment of the pilot program, the Comptroller General of the 
United States shall conduct an evaluation of the pilot program and 
shall transmit to the Administrator and to the Committees on Small 
Business of the Senate and House of Representatives a report containing 
the results of the evaluation along with any recommendations as to 
whether the pilot program, with or without modification, should be 
extended to include the participation of all Small Business Development 
Centers.
    ``(j) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        to carry out this section $5,000,000 for fiscal year 2002 and 
        each fiscal year thereafter.
            ``(2) Limitation on use of other funds.--The Administrator 
        may carry out the pilot program only with amounts appropriated 
        in advance specifically to carry out this section.''.

SEC. 5. PROMULGATION OF REGULATIONS.

    After providing notice and an opportunity for comment and after 
consulting with the Association (but not later than 180 days after the 
date of the enactment of this Act), the Administrator shall promulgate 
final regulations to carry out this Act, including regulations that 
establish--
            (1) priorities for the types of assistance to be provided 
        under the pilot program;
            (2) standards relating to educational, technical, and 
        support services to be provided by participating Small Business 
        Development Centers;
            (3) standards relating to any national service delivery and 
        support function to be provided by the Association under the 
        pilot program;
            (4) standards relating to any work plan that the 
        Administrator may require a participating Small Business 
        Development Center to develop; and
            (5) standards relating to the educational, technical, and 
        professional competency of any expert or other assistance 
        provider to whom a small business concern may be referred for 
        compliance assistance under the pilot program.

SEC. 6. PRIVACY REQUIREMENTS APPLICABLE TO SMALL BUSINESS DEVELOPMENT 
              CENTERS.

    Section 21(c) of the Small Business Act (15 U.S.C. 648(c)) is 
amended by adding at the end the following:
            ``(9) Privacy requirements.--
                    ``(A) In general.--No Small Business Development 
                Center, consortium of Small Business Development 
                Centers, or contractor or agent of a Small Business 
                Development Center shall disclose the name or address 
                of any individual or small business concern receiving 
                assistance under this section without the consent of 
                such individual or small business concern, except 
                that--
                            ``(i) the Administrator shall require such 
                        disclosure if ordered to do so by a court in 
                        any civil or criminal enforcement action 
                        commenced by a Federal or State agency; and
                            ``(ii) if the Administrator considers it 
                        necessary while undertaking a financial audit 
                        of a Small Business Development Center, the 
                        Administrator shall require such disclosure for 
                        the sole purpose of undertaking such audit.
                    ``(B) Regulations.--The Administrator shall issue 
                regulations to establish standards for requiring 
                disclosures during a financial audit under subparagraph 
                (A)(ii).''.




                                                 Union Calendar No. 125

107th CONGRESS

  1st Session

                               H. R. 203

                          [Report No. 107-210]

_______________________________________________________________________

                                 A BILL

  To amend the Small Business Act to direct the Administrator of the 
 Small Business Administration to establish a pilot program to provide 
 regulatory compliance assistance to small business concerns, and for 
                            other purposes.

_______________________________________________________________________

                           September 21, 2001

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union and ordered to be printed