[Congressional Record Volume 146, Number 116 (Tuesday, September 26, 2000)]
[House]
[Pages H8081-H8084]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
NATIONAL SMALL BUSINESS REGULATORY ASSISTANCE ACT OF 2000
Mr. SWEENEY. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 4946) 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, as amended.
The Clerk read as follows:
H.R. 4946
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 2000''.
[[Page H8082]]
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
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 34(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 34 as section 35; and
(2) by inserting after section 33 the following new
section:
``SEC. 34. 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.
``(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 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.
``(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, acting through the office of the Associate
Administrator for Small Business Development Centers, 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 1 or more Small Business Development
Centers offered conflicting advice or information regarding
compliance with a Federal regulation to 1 or more small
business concerns; and
``(vi) any recommendations for improvements in the
regulation of small business concerns.
``(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, 2000.
``(f) Selection of Participating Centers.--
``(1) In general.--In consultation with the Association and
giving substantial weight to the Association's
recommendations, the Administrator shall select 2 Small
Business Development Centers from each of the following
groups of States to participate in the pilot program, except
that the Administrator may not select 2 Small Business
Development Centers from the same state:
``(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 4.
``(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) 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, without or without modification, should be
extended to include the participation of all Small Business
Development Centers.
``(i) Limitation on Use of 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 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;
[[Page H8083]]
(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; and
(4) standards relating to any work plan that the
Administrator may require a participating Small Business
Development Center to develop.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from New
York (Mr. Sweeney) and the gentlewoman from New York (Ms. Velazquez)
each will control 20 minutes.
The Chair recognizes the gentleman from New York (Mr. Sweeney).
Mr. SWEENEY. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise today to ask my colleagues to support H.R. 4946,
the National Small Business Regulatory Assistance Act of 2000.
This bill is intended to assist small business owners in their
efforts to comply with the onslaught of Federal regulations which have
substantially increased over the past 20 years. H.R. 4946 is designed
to utilize the existing infrastructure of Small Business Development
Centers to provide regulatory counseling and coordination of Federal
regulatory outreach to America's small business community.
We know that the vast majority of small business owners are honest
and hard-working people who want to do the right thing. Clearly, this
bill is an effort to help these small business owners. Just think, Mr.
Speaker, it is highly unlikely that my colleagues or their staffs, or
even the staffs of the committees, read the Federal Register on a daily
basis. Yet that is what the government asks small business owners to do
in order to determine which regulations affect them and what they must
do to comply with those regulations.
Let me give an example: The proposed regulation to prevent ergonomic
injuries is just 11 pages long; however, OSHA admits that these 11
pages are not self-explanatory and determining the best method of
complying will require a small business owner to wade through nearly
1,500 pages of supplemental explanation and economic analysis.
Small business owners want to comply with Federal regulations, but
often they simply do not have the time or the expertise to determine
how to comply with proposed rules. This causes loss of revenue.
Oftentimes, that revenue would be used to grow for jobs. When that
happens, Mr. Speaker, it hurts us all.
H.R. 4946, is designed to assist small business owners navigate
through the maze of Federal regulations which continue to pour forth
from the Federal Government. H.R. 4946 would establish a pilot program
in 20 Small Business Development Centers, SBDCs, throughout the United
States. These 20 centers would be charged with providing small business
owners access to information and resources, including current Federal
and State programs designed to provide small business owners with
regulatory compliance assistance, training materials and educational
activities such as conferences and seminars, confidential free-of-
charge one-on-one in-depth counseling regarding compliance assistance,
technical assistance, and referral to other experts such as professors
in the university or colleges where the participating SBDC is located.
The SBDCs would track information and H.R. 4946, as amended, would
provide this information to the administrator of the SBA for collection
in a clearinghouse. This will enable Federal agencies and Congress to
ensure consistency of regulatory compliance assistance to small
business.
The cooperation envisioned by H.R. 4946 is not necessarily new. Some
Small Business Development Centers already are thinking outside the
box. This bill will, however, help foster those relationships with
different Federal agencies.
Mr. Speaker, I come to the floor with firsthand knowledge of how
effective this type of process can be. Before being elected to
Congress, I served as the Commissioner of Labor in New York State. I
know firsthand the difficulty that exists in trying to balance the
needs of running a small business and maintaining a safe working
environment and creating jobs.
While I was State Labor Commissioner, I instituted an exhaustive
review process that resulted in a 30 percent reduction of outdated,
unnecessary, duplicative or oppressive restrictions on New York's
businesses.
The result, after that reduction in regulations, Mr. Speaker, was an
increase in worker safety, an increase in safety in the workplace.
As a former State regulator, I understand that penalizing first and
asking questions later is not necessarily the best use of a regulators'
time or their resources. If the pilot programs prove successful, and
given my experience in New York, I think they will, then we will be on
our way to a win-win situation for all involved.
Mr. Speaker, before closing, let me briefly mention the amendments
made to the version reported out of committee. After substantial
discussion with small business owners and Small Business Development
Center directors, it was determined that certain technical corrections
were necessary to fine tune the operation of the pilot programs.
First, the administrator of the SBA will maintain the central
clearinghouse of information and make reports to the President and
Congress.
Second, to ensure that the assessment of the program is not biased,
the General Accounting Office will provide a 3-year review of the
program.
And third, H.R. 4946, as amended, will provide significant guidance
to the administrator in the development of regulations needed to place
the program in operation, but at the same time ensure that the program
is not unduly delayed by bureaucratic debate.
H.R. 4946 is a good bill, Mr. Speaker, that passed out of the
committee unanimously. I ask my colleagues to support its passage.
Mr. Speaker, I reserve the balance of my time.
Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I rise today to express my support for H.R. 4946 and
commend the gentleman from New York (Mr. Sweeney) for his work on
addressing one of the most pressing issues affecting small businesses,
the need for clear and understandable regulations.
Small businesses support safe workplace regulations and the need for
a clean environment. They recognize that these regulations are put in
place not just for protection of their customers and employees, but to
protect the business and the community as a whole. The fact is
regulatory issues are a major concern for small businesses. And while
this bill relieves some of the regulatory burden, there is more we will
need to do to ensure that the process is fair and equitable.
However, what often frustrates them the most is the simple fact that
the regulations governing many of these areas have one common and
disturbing denominator: They are often too confusing and unload a
heavier burden on small businesses. Penalties, I might add, that small
businesses cannot afford to fight against, or in some cases pay the
stiff fine the regulation often imposes.
To alleviate this problem, some agencies like OSHA, EPA, and IRS
provide compliance assistance aimed at helping small businesses. And
while these programs are very helpful, many business owners fear that
if they seek any compliance assistance from these agencies, their
businesses will be left open to possible fines and sanctions without
actually understanding the regulation they violated.
To address this problem, the legislation offered by the gentleman
from New York sets up a pilot program in partnership the Nation's Small
Business Development Centers, SBDCs. It is aimed at assisting small
businesses in complying with the array of regulations that exist.
With locations in every community and a reputation for providing
solid small business assistance, SBDCs will offer an additional avenue
for helping smaller companies understand and comply with regulations.
This proposal makes good business sense, both for small companies and
for the Federal Government that serves a multitude of interests.
Once again, I would like to commend the gentleman from New York (Mr.
Sweeney) for his work on the committee and on this critical issue.
[[Page H8084]]
Mr. Speaker, I yield 2 minutes to the gentleman from Illinois (Mr.
Davis).
Mr. DAVIS of Illinois. Mr. Speaker, I too want to commend and
congratulate the gentleman from New York (Mr. Sweeney) for introducing
such a meaningful piece of legislation.
All of us know that small businesses are, indeed, a backbone of the
economy in this country. And we also know that as we become more
civilized, there is need to protect the workplace and make it as worker
friendly as we possibly can, to make it as safe for those who work as
we can.
That means standards. In many instance those small businesses have
difficulty complying because of not having the person-power to figure
out how to comply meaningfully with the regulation. Or they may not
have the money, the resources, the cash flow.
This bill provides an opportunity to assist small businesses to be in
compliance, to know how to comply, and to do it well. It is a good
piece of legislation. Again, I commend the gentleman from New York and
urge all Members to support it.
Mr. SWEENEY. Mr. Speaker, I reserve the balance of my time.
Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, today, we have taken a big step toward helping
businesses deal with the issue of regulatory burden. Unfortunately for
many small companies today, the added weight of government regulations
can cost many business owners serious long-term financial hardship.
This bill will take a big step toward making regulatory compliance a
manageable task for small businesses. However, while this bill achieves
a number of objectives, there is more we need to do to provide a better
understanding of the entire Federal regulatory system.
Again, I commend the gentleman from New York (Mr. Sweeney) for his
hard work on this bill, and I look forward to working with him and
other members of the committee as we move this entire process forward.
Mr. Speaker, I yield back the balance of my time.
Mr. SWEENEY. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, in closing I want to thank the gentlewoman from New York
(Ms. Velazquez), my colleague and friend, the ranking member of the
committee, for her support throughout this process, as well as the
gentleman from Illinois (Mr. Davis). I would just point out that all
three of us, as do many of the members of the committee, represent
districts that substantially rely on the small business community to
create jobs in their areas. Especially those areas in a district like
mine that happens to be economically depressed or finding itself at
times in real competition as the world changes in terms of the economy.
I also want to thank the gentleman from Missouri (Chairman Talent)
for scheduling a field hearing on this issue and bringing the bill to
markup. I want to also thank the Committee on Small Business staff for
all of their hard work on this legislation.
I think the Small Business Regulatory Assistance Act of 2000 is an
important effort to help small businesses and small business owners
comply with Federal regulations. I urge my colleagues to support it. I
think this is a job-growing proposition.
Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from New York (Mr. Sweeney) that the House suspend the rules
and pass the bill, H.R. 4946, as amended.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
____________________