[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.

                          ____________________