[Congressional Record Volume 142, Number 117 (Friday, August 2, 1996)]
[Senate]
[Pages S9605-S9606]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. HATFIELD:
  S. 2045. A bill to provide regulatory relief for small business 
concerns, and for other purposes; to the Committee on Small Business.


           the national small business regulatory relief act

  Mr. HATFIELD. Mr. President, one of the most common small business 
complaints my constituents bring to my attention is the issue of 
burdensome government regulations. As we all recognize, small 
businesses rarely have the expertise or resources necessary to keep up 
to date with changing Federal requirements. Consequently, many small 
businesses are not in compliance with Federal regulations and face 
potential fines. Fines or costly compliance procedures can be 
devastating to small businesses which characteristically operate at a 
very narrow profit margin.
  All across this Nation conscientious small business owners are 
frustrated with Federal regulations simply because they cannot get 
concise and specific answers to their compliance questions. How can we 
realistically expect to increase environmental protection, work place 
safety or tax compliance, if these respective agency's regulations are 
so complex that professionals in these fields cannot determine the 
meanings and applications of these rules? While our regulatory reform 
efforts have done much to change the rulemaking process and the sheer 
volume of regulations, very little has been done to translate rules 
written by bureaucrats into easy to understand language that the owner 
of any small firm can implement.
  Mr. President, according to a 1995 study by the Small Business 
Administration's Office of Advocacy, 94 percent of small businesses 
were unsure of what they needed to do to comply with Federal 
regulations. The same study revealed that it is difficult, if not 
impossible, for small businesses to obtain concise answers to 
compliance questions from a Federal agency. It is no wonder that so 
many business owners, who have honestly believed they were in 
compliance, have either lost or had their businesses crippled because 
they were uninformed or misunderstood Federal regulations which applied 
to them.
  Congress has considered several proposals which would scale back 
intrusive Federal regulations. However, we must realize that Federal 
regulations will continue in some capacity. Consequently, it is vital 
to establish a mechanism which assists small businesses in complying 
with these regulations.
  The Small Business Development Centers have established themselves as 
a valuable resource for small businesses. They have an existing network 
of over 950 centers nationwide which have been providing education and 
technical assistance to small business owners for years.
  The Oregon Small Business Development Center Network has 
distinguished itself as a national model of how SBDC's can play an 
integral role in ensuring the success of small businesses. In April 
1995 I conducted a field hearing in Portland, OR on a proposal to 
expand the responsibilities of the SBDC's to include regulatory 
compliance assistance. At that hearing, I heard from several Oregon 
small business owners who testified about their experience with the 
Oregon Small Business Development Center Network and the positive 
benefits these centers have had on small businesses in the State of 
Oregon.
  The proposal to accomplish a shift in Federal regulatory policy from 
enforcement to education was at a conceptual stage at the time of the 
Oregon field hearing. However, this idea was extremely intriguing and 
the small business owners who discussed this issue were impressive in 
conveying their vision for the future of this proposal. Since that 
time, I have worked with the National Association of Small Business 
Development Center and the Director of the Oregon SBDC Network to 
develop this concept into the legislation I am introducing today.
  The National Small Business Regulatory Relief Act provides 
comprehensive regulatory assistance to small firms by enlisting the 
nationwide network of over 950 Small Business Development Centers 
(SBDC's). Over 550,000 small businesses each year seek SBDC

[[Page S9606]]

help in drafting business plans and expansion strategies, developing 
financing and marketing tactics, improving management and personnel 
skills, and addressing many other business needs. The locally 
controlled and managed SBDC network's long-standing confidentiality 
policy and its proven track record of success make it an ideal, cost-
effective and user-friendly delivery system for meaningful compliance 
assistance. Even though SBDC's are funded by all 50 States and the 
Federal Government they do not have enough resources to provide the 
regulatory help small businesses so desperately need.
  Mr. President this legislation provides the resources necessary to 
expand SBDC assistance, creating a one-stop shop business resource that 
can explain how a company's marketing, finance, personnel, 
international trade, procurement and technology strategies comport with 
the regulatory requirements of EPA, OSHA, and IRS. The result will be a 
holistic delivery system of business assistance that will not only 
increase compliance with today's regulations, but will help small 
businesses bring about a cleaner environment, safer work place and 
better tax compliance. Most importantly, by utilizing the vast SBDC 
network, the cost of making comprehensive regulatory assistance 
available to all of America's small businesses is minimized for a 
program of this magnitude.
  This legislation authorizes appropriations to the Occupational Safety 
and Health Administration, the Environmental Protection Agency and the 
Internal Revenue Service to accomplish the goals I described earlier. 
However, I would like to point out that similar legislation has been 
introduced in the House of Representatives which directs each of these 
three Federal agencies to set-aside a percentage of their overall 
budget for SBDC compliance assistance activities. While I sympathize 
with the intentions of the House sponsors of this measure to use 
existing funds for this program, as Chairman and a longtime member of 
the Senate Appropriations Committee I feel the appropriations process 
is the proper way to distribute Federal discretionary dollars. I 
believe that the goals of this proposal can be accomplished using 
existing Federal dollars.
  Mr. President, America's small businesses are frustrated by the 
current Federal regulatory situation and have been pleading for help. 
The National Small Business Regulatory Relief Act is a creative 
approach towards balancing economic growth with regulatory compliance. 
I urge my colleagues to join me in this important effort to assist our 
Nation's small businesses in complying with Federal regulations.
  I ask unanimous consent that a letter from the Oregon Small Business 
Development Center Network in support of this legislation be included 
in the Record.
  There being no objection, the letter was ordered to be printed in the 
Record, as follows:

                                             Oregon Small Business


                                   Development Center Network,

                                      Eugene, OR, January 8, 1996.
     Hon. Mark O. Hatfield,
     Hart Senate Office Building,
     Washington, DC.
       Dear Senator Hatfield: Thank you for taking time from your 
     busy schedule to meet with me and John Eskildsen regarding 
     the Oregon Small Business Development Center Network and the 
     National Small Business Extension Network proposal. We 
     appreciate your strong support and advocacy for the OSBDCN 
     and the NSBEN proposal.
       I believe that the NSBEN proposal represents a tremendous 
     opportunity to reduce the federal regulatory burden on small 
     business while simultaneously reducing the federal budget. 
     This legislation, if enacted, will enable small business 
     owners in Oregon and throughout the United States to meet 
     federal regulatory standards without fear of reprisal.
       Thank you again for your leadership and support for small 
     business.
           Sincerely,

                                                 Sandy Cutler,

                             State Director, Oregon Small Business
                                       Development Center Network.
                                 ______