[Congressional Record Volume 147, Number 130 (Tuesday, October 2, 2001)]
[House]
[Pages H6086-H6090]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
NATIONAL SMALL BUSINESS REGULATORY ASSISTANCE ACT OF 2001
Mr. MANZULLO. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 203) 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. 203
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--
[[Page H6087]]
``(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).''.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Illinois (Mr. Manzullo) and the gentlewoman from New York (Ms.
Velazquez) each will control 20 minutes.
The Chair recognizes the gentleman from Illinois (Mr. Manzullo).
Mr. MANZULLO. Mr. Speaker, I yield myself such time as I may consume.
This legislation is supported on both sides of the aisle as an
example of how Republicans and Democrats can work together in the
interests of small businesses and the Nation as a whole. The gentleman
from New York (Mr. Sweeney) is the principal author of the legislation,
and I commend him for his hard work in shepherding this bill.
The bill is designed to help small businesses cope with the maze of
Federal, State, and local regulations that have created such a heavy
monetary and time-consuming burden for Main Street, America. Every day,
we all receive complaints from our constituents about their inability
to understand regulations that are written in legalese rather than
plain English, and about arbitrary actions taken by some regulatory
agencies.
This bill establishes a pilot program to provide regulatory
compliance assistance to small businesses. We will keep a watchful eye
on whether the pilot program is accomplishing the objective of helping
small businesses cope with regulations.
The bill requires that the Congress receive a progress report
annually on the pilot program's accomplishments.
[[Page H6088]]
The General Accounting Office is also required to provide a program of
evaluation to Congress no later than 3 years after the pilot program is
established.
Mr. Speaker, I reserve the balance of my time.
Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may
consume.
(Ms. VELAZQUEZ asked and was given permission to revise and extend
her remarks.)
Ms. VELAZQUEZ. Mr. Speaker, in today's business environment, one of
the greatest obstacles blocking the path to prosperity for this
Nation's small businesses is regulatory compliance. Small businesses
regularly find themselves lost in a maze of Federal regulations that
are designed to create safer and healthier workplaces. In fact, a
recent poll ranked regulatory burdens as the seventh biggest concern
for small businesses, and the Small Business Administration estimates
those burdens cost up to $5,100 per employee.
Small firms are less equipped to deal with regulations than large
corporations. Business owners want to comply with regulations because
they know that a safe and healthy workplace and environment makes them
more productive. But often, they do not know how to comply or where
they should start.
Today, we take a big step in supporting our Nation's small businesses
navigate the regulatory process with the passage of the National Small
Business Regulatory Assistance Act. This legislation establishes a 3-
year pilot program to provide confidential and nonpunitive advice to
small businesses that are trying to weather a storm of complex Federal
regulations.
Business owners sometimes fear approaching agencies for compliance
assistance because these are the very agencies charged with
enforcement. They worry, can I talk about OSHA requirements with the
Department of Labor? Can I discuss environmental regulations with the
EPA?
By creating a compliance program through the SBDC national network,
we will provide a neutral, nonthreatening environment which small
business owners may use to get important information and advice without
fear of retaliation. The SBDCs already have a good reputation for
aiding local enterprises. This legislation creates a one-stop shop for
regulatory compliance that will help small business owners who want to
do the right thing to do the right thing.
In addition, this legislation will establish a database clearinghouse
for information gathered by the SBDC based on their interaction with
local businesses. This data would be useful in further identifying the
compliance needs of small businesses and tailoring assistance to them.
But while SBDCs provide more compliance assistance and gather more
information, we must ensure that the sensitive information brought
forward by small businesses is kept absolutely confidential. This
legislation guarantees privacy for those who receive compliance
assistance and extends this protections to all small businesses that
seek any assistance from their local SBDC. This legislation bars the
sharing of information that any SBDC collects on a business with any
third party or agency. This will guarantee that small businesses
receive the assistance they need in complete confidence and privacy.
Mr. Speaker, we want all our businesses to comply with the
regulations that preserve the health, environment, and well-being of
our workers and our communities; but oftentimes, small businesses do
not have access to the resources they need if they want to comply with
regulations in good faith. With the adoption of this legislation, we
are giving small businesses the support they need to navigate the
often-complicated arm of Federal regulations.
In closing, let me thank the gentleman from New York (Mr. Sweeney),
my colleague, for this bill. I strongly urge the adoption of this
legislation.
Mr. Speaker, I reserve the balance of my time.
Mr. MANZULLO. Mr. Speaker, it is my pleasure to yield such time as he
may consume to the gentleman from New York (Mr. Sweeney), the author of
this legislation.
Mr. SWEENEY. Mr. Speaker, first, let me begin by thanking the
chairman and the ranking member for the opportunity to speak on behalf
of my bill and for their diligence and their effort and their patience
in working with me in introducing this bill.
Mr. Speaker, for nearly 25 years, Congress has recognized that small
businesses face substantial regulatory burdens. The Small Business
Regulatory Enforcement Fairness Act recognized what almost all small
businesses would agree on, that Federal regulations are complex and
often difficult to understand. The act would require Federal agencies
to prepare plain-English compliance guides when issuing new regulations
that would have a significant economic impact on a substantial number
of small business entities.
The act simply represents a start in providing regulatory assistance
to small businesses; and as a former member of the Committee on Small
Business, I have a vested interest in maintaining the success of small
business and will continue to build upon this foundation with this
bill.
Unfortunately, there exists a multitude of regulations that small
businesses find difficult to understand, let alone comply with. We know
that the vast majority of small business owners are honest, hard-
working people who want to do the right thing. Clearly, this bill is an
effort to help these small business owners.
Mr. Speaker, it is highly unlikely that my colleagues or their staffs
or even the committee staffs read the Federal registry on a daily
basis; yet that is what Government asks small business owners to do in
order to determine which regulations affect them and what they must do
to comply.
Let me give an example. The proposed regulation to prevent ergonomic
injuries was just 11 pages long. However, OSHA admitted that 11 pages
were not self-explanatory and that determining the best method of
complying would have required a small business owner to wade through
nearly 1,500 pages of supplemental explanation and economic analysis.
In the spirit of helping these entrepreneurs, I have reintroduced the
Nation Small Business Regulatory Assistance Act, H.R. 203. This
legislation would assist small businesses in successfully finding their
way through the maze of regulations that have proliferated in recent
decades.
After a great deal of effort and energy during the 106th Congress, we
breathed new life into what began as an outstanding initiative but,
unfortunately, had little prospects for implementation. This new and
improved legislation has a proven record of support. On September 26,
2000, the House passed the previous version of the National Small
Business Regulatory Assistance Act by voice vote. The differences
between H.R. 203 and the bill that passed under suspension last year
are minor and I believe constitute necessary improvements, such as
making an authorization of funds to ensure that the pilot project does
not detract from the important role played by SBDC.
Mr. Speaker, H.R. 203 would amend the Small Business Act to establish
a pilot program in 20 States. The administrator, in consultation with
the National Association of Small Business Development Centers, would
select two States from each of the 10 Federal regions. Within the pilot
program, small business development centers would develop partnerships
with Federal agencies and be a point of contact for small businesses to
turn to for free-of-charge confidential advice concerning regulatory
compliance. I would expect that these consultations will take place
with those individuals who have experience and expertise in a
particular area of regulatory compliance.
To continually track progress and seek improvements to the program,
the Small Business Administration is required to submit regular reports
on the assistance provided by the centers to the Small Business
Administration. The SBA would, in turn, maintain a clearinghouse of all
of the information submitted and report to the President, the House and
the Senate small business committees.
In addition, the General Accounting Office would conduct a study of
the pilot programs' efficiencies to determine whether the programs
should be expanded and/or modified. The reports submitted by the SBDC
to the Small Business Administration will include a
[[Page H6089]]
description of the types of assistance provided, the number of small
businesses that contacted participating SBDC, the number of small
business concerns assisted by SBDC, information and outreach and, most
importantly, any conflicting information or advice given by Federal
agencies to one or more businesses.
This type of cooperation is not new, Mr. Speaker. Some small business
development centers have already started to think outside the box. They
have fostered relationships with different Federal agencies and
independent compliance groups to build upon each other's resources in
order to assist small business owners with regulatory compliance.
{time} 1600
H.R. 203 is not meant to replace current regulatory reporting
compliance programs, but to supplement them. When relevant,
participating SBDCs may refer businesses to existing regulatory
compliance programs, H.R. 203 intends to take these successes and apply
them nationwide to ensure small business has somewhere to turn for
every compliance concern with every Federal agency, not just those
emanating from the EPA, OSHA, or the IRS.
An example: A wholesale auto salvage business in upstate New York is
one such success story. The owner purchased his business unaware the
soil was contaminated, having been a salvage yard for the previous 60
years. Unfortunately, he exhausted his funds with the cleanup and
pending buyout of his partner.
With no place to turn and the possibility of losing his livelihood,
he contacted the local SBDC for assistance in obtaining funds. The SBDC
counselor was able to work with the New York State Department of
Environmental Conservation liaison to agree to some type of
remediation.
The result: After 40 hours of invested time and effort, the counselor
was able to get the city to back away from its original threat to close
his business. This business's inventory is now growing after a nearly
terminal reduction to facilitate the cleanup, and cash flow figures are
improving steadily.
We all know that compliance with Federal regulations remains one of
the main challenges confronting small business owners. These
entrepreneurs are not seeking to evade the law. Due to the complexity
of the regulatory process, they often simply do not know the right
course of action.
Mr. Speaker, before being elected to Congress, I served as the
Commissioner of Labor in New York. I know firsthand the difficulty that
exists in trying to balance the needs of running a small business and
maintaining a safe working environment.
While I was State Labor Commissioner, I instituted an exhaustive
review process that evaluated nearly 150 rules and regulations,
resulting in the elimination of 56 regulations. That represented a 30
percent reduction of outdated, unnecessary, and redundant restrictions
on New York's businesses.
In addition, I implemented a directive for the Public Employee Safety
and Health Program, PESHP, to increase the rate of workplace
compliance. This proposal had three objectives: to educate employers
and employees, to increase regulatory compliance rates, and to reduce
what I considered a hidden tax on small businesses.
As a result of that approach that I have just described, in 1995,
failure to abate notices, which inform an employer that it has not
corrected a violation in a timely manner, numbered only 99 in the
entire State of New York, down from 244 the previous year.
With government working cooperatively with employers and businesses
in a non-threatening environment, compliance rates are proven to
dramatically increase while workplace injuries and deaths are
significantly reduced. This type of partnership is what is needed to
assist our small businesses with navigating the maze of Federal
Government regulations.
My legislation, H.R. 203, will forge a partnership among the
regulatory agencies, the Small Business Administration, and the Small
Business Development Centers for the purpose of helping small-sized
companies comply with complex regulations, rather than resorting to
heavy-handed enforcement activities.
Again, Mr. Speaker, I want to thank the gentleman from Illinois (Mr.
Manzullo) for all his efforts and all his support, and the ranking
member, the gentlewoman from New York (Ms. Velazquez), a fellow New
Yorker.
Mr. Speaker, this is a good government bill, and I urge the support
of all my colleagues.
Ms. VELAZQUEZ. Mr. Speaker, I yield such time as she may consume to
the gentlewoman from the Virgin Islands (Ms. Christensen).
Mr. CHRISTENSEN. Mr. Speaker, I rise today in support of the two
Committee on Small Business bills before us today, which are aimed at
improving and expanding the extend and scope of services provided by
the Small Business Administration's Small Business Development Centers'
program, and encouraging entrepreneurship.
The SBDCs are the premier technical assistance providers to America's
entrepreneurs. Many small businesses often operate near or at their
profit margin and do not have the resources to hire legal and technical
experts.
The SBDC in my district, the U.S. Virgin Islands, as well as those
across the Nation, are always looking for innovative and cost-efficient
ways to improve their services to the small business community.
To address the difficulty in meeting the regulatory burden, the House
Committee on Small Business, under the leadership of our ranking
member, the gentlewoman from New York (Ms. Velazquez), and our
chairman, the gentleman from Illinois (Mr. Manzullo), has held many
hearings to examine the complex and wide web of regulations that small
businesses are subjected to, including those in the health care
industry, through the Center for Medicare Services, formerly known as
the Health Care Financing Agency.
The National Small Business Regulatory Assistance Act of 2000 would
assist small businesses in handling their regulatory burden without the
threat of sanctions for doing so. Without a doubt, small businesses
need and would benefit from as much free technical assistance as
Congress can make available. As a matter of fact, it is only
appropriate that we provide some relief from the regulatory morass that
Congress is partly responsible for.
Research shows that small businesses that receive technical
assistance are twice as likely to succeed in the marketplace as those
which do not. H.R. 203 would utilize the existing SBDC network to
provide free counseling, training, and education about the intricacies
of Federal regulations.
The second bill that will be before us, establishing a national
vocational entrepreneurship development demonstration program is a
great approach to encouraging individuals to start their small
businesses. The Vocational and Technical Entrepreneurship Act would
allow the SBDCs to work with colleges and vocational schools. Learning
to start and run your own business is itself a very important trade,
and many who work in the trade sector enter these professions with the
goal of one day starting their own business.
This initiative would develop a program that guides and provides
training for future skilled workers, many of whom would begin working
in other companies to obtain the skills necessary to start a business
of their own.
Mr. Speaker, today, in the face of the tragedy which struck this
country 3 weeks ago and its long-term and far-reaching impact, help for
our small businesses is needed more than ever. I applaud and thank the
gentleman from New York (Mr. Sweeney) and the gentleman from
Pennsylvania (Mr. Brady) for H.R. 203, and Mr. Udall for H.R. 2666, as
well as thank and applaud the leadership of the chairman, the gentleman
from Illinois (Mr. Manzullo) and the ranking member, the gentlewoman
from New York (Ms. Velazquez), for their leadership on these two bills.
I also thank the entire committee.
This would send a clear message that we intend to improve and expand
the scope of SBDCs in providing needed comprehensive free and
confidential services, and that we will continue to improve this, and
to make help more available to our small businesses across the country.
I urge my colleagues to join me in supporting this bill, H.R. 203,
and the next bill, H.R. 266.
[[Page H6090]]
Mr. MANZULLO. Mr. Speaker, it is my privilege to yield 3 minutes to
the gentleman from Indiana (Mr. Pence), chairman of the Subcommittee on
Regulatory Reform and Oversight of the Committee on Small Business.
Mr. PENCE. Mr. Speaker, I thank the gentleman and the chairman of the
Committee on Small Business for yielding time to me, and for sponsoring
this important bill, which I believe will help small businesses all
across America.
I am also grateful to all of my colleagues for the support for the
amendment which I offered to this legislation in committee. I believe
this bill represents a very important change in the way our government
assists small business owners, entrepreneurs, and risk-takers in our
economy.
As chairman of the Subcommittee on Regulatory Reform and Oversight of
the Committee on Small Business, I held a roundtable earlier this year
to hear from dozens of national trade and industry groups that
represent small business in America.
These groups raised concerns about a wide variety of regulations.
Yet, they all had one overarching concern, Mr. Speaker, that small
business owners are being deluged by complex, often arcane Federal
regulations that they are unaware of until a representative of the
Federal agency walks through the door and hands them a citation.
This situation engenders distrust from the Federal regulatory
apparatus because businesses perceive that the Federal government is
not there to help, but instead, to play the game of ``gotcha.'' That
``gotcha'' mentality is not good government. Small business owners want
to comply with Federal regulations.
The agencies have even conceded that more than 90 percent of all
businesses are doing their level best to comply. However, in order to
do so, they must first know that the regulations apply to them. This is
a necessary precondition. However, given the complexity and scope of
the CFR, it is unlikely that an average small business owner will be an
expert on these myriad regulations, or even begin to understand what
must be done in compliance.
When we pass laws here, we expect them to be followed. When Federal
agencies promulgate regulations, they expect them to be followed.
However, if the Federal Government does not provide a mechanism for
advising small businesses, then Federal regulations will not be
followed and the goal we seek will not be met.
H.R. 203, Mr. Speaker, provides that mechanism to assist small
business owners. Small Business Development Centers already exist to
provide assistance to small business owners in the operation of their
businesses. Small business owners come to SBDCs to help start or grow a
business. At that time, the center could also provide information on
regulatory compliance. Since these centers are located at colleges and
universities throughout States that will be part of the pilot project,
small business owners should have easy access to regulatory compliance
and assistance from these centers.
Despite what some stereotypes may suggest, Mr. Speaker, small
businesses want to obey the law. They want to comply with Federal
regulations. H.R. 203, finally and lastly, gives them the means to do
just that. That is why I heartily endorse this bill, and I urge all of
my colleagues to support this reform measure.
Mr. Speaker, I thank the gentleman from Illinois (Chairman Manzullo)
for his outstanding leadership, as well as the ranking member, the
gentlewoman from New York (Ms. Velazquez), for her outstanding
leadership, and for the bipartisan efforts on the part of both of these
great members in moving this legislation out of the Committee on Small
Business.
Finally, I would like to thank the author of this legislation, the
gentleman from New York (Mr. Sweeney) and the gentleman from
Pennsylvania (Mr. Brady) for their work in bringing this important idea
into the laws of our land.
Ms. VELAZQUEZ. Mr. Speaker, I have no further requests for time, and
I yield back the balance of my time.
Mr. MANZULLO. Mr. Speaker, I have no further requests for time, and I
yield back the balance of my time.
The SPEAKER pro tempore (Mr. Walden of Oregon). The question is on
the motion offered by the gentleman from Illinois (Mr. Manzullo) that
the House suspend the rules and pass the bill, H.R. 203, 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.
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