[Congressional Record Volume 149, Number 56 (Tuesday, April 8, 2003)]
[House]
[Pages H2879-H2883]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
NATIONAL SMALL BUSINESS REGULATORY ASSISTANCE ACT OF 2003
Mr. MANZULLO. Madam Speaker, I move to suspend the rules and pass the
bill (H.R. 205) to amend the Small Business Act to direct the
Administrator of the Small Business Administration to establish a
program to provide regulatory compliance assistance to small business
concerns, and for other purposes
The Clerk read as follows:
H.R. 205
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 2003''.
SEC. 2. PURPOSE.
The purpose of this Act is to establish a 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 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 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 recognized by the Administrator of the Small
Business Administration under section 21(a)(3)(A).
``(3) Participating small business development center.--The
term `participating Small Business Development Center' means
a Small Business Development Center participating in the
program.
``(4) Program.--The term `program' means the regulatory
assistance 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 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 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 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.--A participating Small Business
Development Center may transmit to the Administrator such
interim reports as the center considers appropriate.
[[Page H2880]]
``(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
program, except that the Administrator shall require such a
disclosure if ordered to do so by a court in any civil or
criminal action.
``(d) Data Repository and Clearinghouse.--
``(1) In general.--In carrying out the 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, the Committee on Small
Business and Entrepreneurship of the Senate, and the
Committee on Small Business of the 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
program;
``(ii) data regarding the number of small business concerns
that contacted participating Small Business Development
Centers regarding assistance under the program;
``(iii) data regarding the number of small business
concerns assisted by participating Small Business Development
Centers under the program;
``(iv) data and information regarding outreach activities
conducted by participating Small Business Development Centers
under the 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 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 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.--The restriction described in
paragraph (1) shall not apply to any Small Business
Development Center before October 1, 2003.
``(f) Selection of Participating State Programs.--
``(1) Establishment of program.--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 program:
``(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 initial selections.--The Administrator
shall make selections under paragraph (1) not later than 60
days after promulgation of regulations under section 5 of the
National Small Business Regulatory Assistance Act of 2003.
``(3) Additional selections.--Not earlier than the date 3
years after the date of the enactment of this paragraph, the
Administrator may select Small Business Development Center
programs of States in addition to those selected under
paragraph (1). The Administrator shall consider the effect on
the programs selected under paragraph (1) before selecting
additional programs under this paragraph.
``(4) Coordination to avoid duplication with other
programs.--In selecting programs under this subsection, the
Administrator shall give a preference to Small Business
Development Center programs that have a plan for consulting
with Federal and State agencies to ensure that any assistance
provided under this section is not duplicated by an existing
Federal or State program.
``(g) Matching not Required.--Subparagraphs (A) and (B) of
section 21(a)(4) shall not apply to assistance made available
under the program.
``(h) Distribution of Grants.--
``(1) In general.--Except as provided in paragraph (2),
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.--The minimum amount that a State
program selected to receive a grant under subsection (f)
shall be eligible to receive under this section for any
fiscal year shall be $200,000. The Administrator shall reduce
the amount described in paragraph (1) as appropriate to carry
out the purposes of this paragraph and subsection (j)(2).
``(i) Evaluation and Report.--Not later than 3 years after
the establishment of the program, the Comptroller General of
the United States shall conduct an evaluation of the program
and shall transmit to the Administrator, the Committee on
Small Business and Entrepreneurship of the Senate, and the
Committee on Small Business of the House of Representatives a
report containing the results of the evaluation along with
any recommendations as to whether the 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 2003 and
each fiscal year thereafter.
``(2) Limitation on use of other funds.--The Administrator
may carry out the 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 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
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 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 action;
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).
General Leave
Mr. MANZULLO. Madam Speaker, I ask unanimous consent that all Members
may have 5 legislative days within which to revise and extend their
remarks and include extraneous material on this legislation.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Illinois?
There was no objection.
Mr. MANZULLO. Madam Speaker, H.R. 205 is identical to legislation
this House passed unanimously on October 2, 2001. Unfortunately, this
bill did not pass the Senate last year. We are here today to try again.
H.R. 205 was so strongly supported by the Committee on Small Business
that
[[Page H2881]]
both the ranking member and I decided to skip the markup process and
bring this bill straight to the House floor. It contains all the
compromises within our committee and with the Senate. For those
interested in the legislative history of the bill, I would encourage
them to examine the committee's report from the 107th Congress on H.R.
205.
This bill is designed to help small businesses cope with the maze of
Federal, State and local regulations that have created such a heavy
burden on 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 in plain English and about
arbitrary actions taken by some regulatory agencies.
Instead of creating a new program, H.R. 205 uses the existing Small
Business Development Center network to provide regulatory compliance
assistance to small businesses. The SBDC network has a good track
record with small businesses. Because many small business owners fear
going to regulatory agencies for compliance advice, SBDCs can serve as
a buffer so that small business can receive the hands-on assistance it
needs without retribution.
Already this fiscal year, the Small Business Administration received
an additional $1 million appropriation for SBDCs to provide regulatory
compliance assistance to small businesses. H.R. 205 simply builds upon
this initial first step. In addition, the legislation includes enhanced
privacy protections for small business clients of SBDCs.
I urge my colleagues to support H.R. 205.
Madam Speaker, I reserve the balance of my time.
Ms. VELAZQUEZ. Madam Speaker, I yield myself as much time as I may
consume.
Today, I rise in strong support of H.R. 205, the National Small
Business Regulatory Assistance Act of 2003, which would establish a
regulatory compliance assistance program to this Nation's small
businesses. I thank the gentleman from New York (Mr. Sweeney) for his
hard work on this issue and congratulate him for bringing this bill to
the floor.
With the American economy still struggling, it is now more important
than ever to make it easier for small businesses, this Nation's
economic backbone, to expand. In today's business environment, one of
the greatest obstacles standing in the way of growth for many of this
Nation's small businesses is regulatory compliance. Small businesses
regularly find themselves lost in the maze of Federal regulations that
are designed to create safer and healthier workplaces.
In fact, regulatory burdens are typically ranked as a top concern for
small businesses, and the Small Business Administration estimates those
burdens cost almost $7,000 per employee per year. That is 60 percent
higher than costs for businesses with more than 500 employees.
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 makes them more productive,
but often they do not know how to comply or where to start.
With the adoption of this legislation, we take a big step in helping
our Nation's small businesses to navigate the regulatory process with
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
blizzard 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
labor Department? Can I discuss environmental regulations with the EPA?
By creating a compliance program through the Small Business
Development Centers national network, we will provide a neutral, non-
threatening environment small business owners use to get important
information and advice without fear of retaliation.
The SBDCs, which have a solid reputation for aiding local enterprise,
already provide counseling, training and education. 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 would establish a database
clearinghouse for information gathered by the SBDCs based on their
interaction with local businesses. This data will be useful in further
identifying the compliance needs of small business and tailoring
assistance to them.
While SBDCs provide more compliance assistance and gather more
information, we must ensure that the sensitive information brought
forward by small business is kept absolutely confidential. This
legislation guarantees privacy for those who receive compliance
assistance and extends these 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 body or agency. This will
guarantee that small businesses receive the assistance they need in
complete confidence and privacy.
Madam Speaker, we want all our small 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
complex realm of Federal regulations.
In closing, let me thank the gentleman from New York (Mr. Sweeney)
for this bill. I strongly urge the adoption of this legislation.
Madam Speaker, I reserve the balance of my time.
Mr. MANZULLO. Madam Speaker, I yield myself such time as I may
consume.
Sometime ago, the gentleman from New York (Mr. Sweeney) came to me
and said, Chairman, I have got a very interesting piece of legislation;
and I took a look at it, and this is the type of legislation that
really helps out small business people.
The gentleman from New York (Mr. Sweeney) is the former labor
commissioner for the State of New York, undoubtedly proud of Syracuse,
and even though I am a graduate of Marquette, I am still here
supporting the bill.
He explained how difficult it is, and I agree with him, for small
business people to understand the web of regulations. He has experience
in the private/public sector.
Madam Speaker, I yield as much time as he may consume to the
gentleman from the Empire State (Mr. Sweeney), whose idea fostered this
legislation.
Mr. SWEENEY. Madam Speaker, I thank the gentleman for recognizing me;
but more particularly, I would like to thank the chairman for his
persistence in pursuing this matter.
As he mentioned, several years ago, I introduced the original of H.R.
205, the National Small Business Regulatory Assistance Act, passed it
through the Committee on Small Business, passed it through the floor
here; and unfortunately, we were not able to get the bill passed
through the Senate and get our work completed.
The Chairman has stayed with us on this issue, and through his
diligence we have been able to get it back on the floor, and I want to
thank my friend and ranking member, the gentlewoman from New York (Ms.
Velazquez), because I know she, too, has been very committed and very
persistent in pursuing this matter; and I am very, very thankful.
Madam Speaker, we strive in this era, in this time to find different
ways to help the American economy as we travel down the road to
recovery. We try to find ways that we can instill public confidence in
our economy; and I think it is imperative that we in Congress, despite
all of the other activity going on around us, continue to work in small
ways and large ways and in any way we can to help the American economy.
{time} 1400
And I think this bill really is an effort on the part of this House
to make a concerted effort to aid the cornerstone of the American
economy, and
[[Page H2882]]
that is the small business. The spirit of entrepreneurship is really a
characteristic specifically unique to America. Recognized in that
spirit is really the heroism and the important role that small business
entrepreneurs and proprietors provide for the American economy in terms
of jobs, opportunity, and even technology.
As Members of Congress, we receive the Federal Register daily in our
offices. Though these documents are filed for safekeeping and
reference, they are rarely poured over for specific details. However,
for the average small business owner to understand his or her legal
obligations as entrepreneurs trying to create these jobs, they have to
be carefully analyzed, the Federal Registry, that is, to understand the
ever-changing regulations to which the businesses are subjected.
I believe additional measures need to be taken to better assist small
business owners in their compliance with Federal guidelines and
statutes. H.R. 205 relieves the burden shouldered by the average small
business owner throughout America.
In the 106th Congress, Mr. Speaker, this body passed the National
Small Business Regulatory Assistance Act as a pilot program. In the
107th Congress, both the House and the Senate adopted versions of this
bill, though they are nonconforming, and as I said before, no final
action was taken before Congress adjourned. I was encouraged by the
bipartisan enthusiasm for this program and have conferred with our
colleagues in the Senate to work out technical disagreements with prior
language, so it is my hope that H.R. 205 will receive the approval of
both the House and the Senate in the near future so as to move forward
in our efforts to increase the lifespan of American small businesses.
In the 108th Congress, the National Small Business Regulatory
Assistance Act will function as a permanent project, not a pilot
program. This legislation will establish small business compliance
centers in 20 American States and territories. These facilities will
provide assistance to small business owners, allowing them to better
comply with regulatory guidelines and ease the burden of critical yet
overworked small business development centers. It is important to note
that H.R. 205 will not replace current regulatory compliance programs
but complement them.
Mr. Speaker, the Small Business Administration does an exceptional
job promoting the development of enterprise in our country. However,
the current structure can only do so much. We need to better serve the
small business community once they are given a leg to stand on. The
Federal Government has invested a great deal in America's courageous
entrepreneurs. By providing small business owners the necessary
assistance to comply with ever-changing regulations, Congress will
solidify the very foundation of the American economy.
Mr. Speaker, with that, I urge all my colleagues to support and pass
H.R. 205, this bill, and I want to once again recognize the gentleman
from Illinois (Mr. Manzullo) and the ranking member, the gentlewoman
from New York (Ms. Velazquez) for their great work and their
persistence in staying with this bill and this idea.
Ms. VELAZQUEZ. Mr. Speaker, I yield such time as he may consume to
the gentleman from Hawaii (Mr. Case).
Mr. CASE. Mr. Speaker, I want to join in the remarks of my colleague
from New York in thanking both my ranking minority member and my chair
on the Committee on Small Business, a committee that I am very proud
and happy to serve on, for their great bipartisan efforts. I also again
thank the gentleman from New York (Mr. Sweeney) for allowing me to
cosponsor what I think is a very important bill for small businesses in
our country.
I do not think we have to recite at any great length that small
business is in fact the engine of our economy. This is especially true
in Hawaii where small businesses represent 97 percent of all
businesses. And it is not just small business as a category carried by
the Federal Government, we are talking about the grassroots of small
business in Hawaii. We are talking about businesses where 34 percent
have annual sales, gross revenues of under $250,000, where well over 85
percent of all businesses have 10 or fewer full-time employees, and 69
percent 5 or fewer full-time employees.
When we ask those small businesses what are the challenges they face,
no different from anywhere else in our country, they will say that
their challenges are taxes and regulations. Now, we can deal with taxes
some other place in some other debate, but today we are dealing with
regulations. And for a small business, and those of us that have been
in small business know this, government regulation means time and it
means attorneys. And time and attorneys means money. And money for a
small business on a thin margin means the difference between survival
and failure. And to take it a step further, that in turn means the
difference between government revenues coming about or not. So it is in
all of our interests to deal with the regulatory situation, and this
bill does that.
Let me give my colleagues a hard core example from my own home State.
My big island, my home island, the big Island of Hawaii. There is a
region of the Island of Hawaii known as Hamakua. And there is a town in
Hamakua known as Honokaa. And Hamakua, as I was growing up on that
island, was a sugar community. And Honokaa was a sugar town. And in the
last 10 or 15 years, sugar has faded away. As I walk down the streets
of Honokaa today, there is a revival; but it is a revival of small
business, not of a large scale industry. As I walk down that street,
that street is full of small businesses trying to survive and prosper.
They are bringing about a revival of a rural economy in an area that
needs to retain its employment.
Now, what concerns them? Taxes and regulation. They do not have great
access to explanations of what is and is not the proper Federal
Government regulation. They hardly have access to the Federal Register.
They do not have too many attorneys in town, even if they could afford
to pay them. But they do have a small business development center a few
miles away in the town of Hilo. If they can go to that small business
development center for free confidential advice on what Federal
regulations are, that will make a world of difference to those small
businesses, and that town will survive and that region will survive and
prosper, and my island will survive and prosper, as will my State and
country.
So we can easily see the benefit of this legislation as we go
forward. And the benefit of this legislation, again, is to state that
basically where our Federal Government does implement and impose
regulation on the small businesses of our country, I believe and this
legislation says that we also inherit a duty on the part of the Federal
Government to ensure that the people that are subject to those
regulations understand them and are able to comply with them. These are
small businesses that want to comply, but the challenge is to comply
fully and with the minimum expenditure of money so that that money can
be put into investing in that company and producing tax revenues for
all of us.
So this is a good bill. This is a bipartisan bill. This is an example
of what we can do together. And again I commend the chair and the
ranking minority member of the committee that I am proud to serve on,
as well as the gentleman from New York (Mr. Sweeney), and pledge my
support to this and urge that it go forward.
Mr. MANZULLO. Mr. Speaker, I reserve the balance of my time.
Ms. VELAZQUEZ. Mr. Speaker, I yield 4 minutes to the gentleman from
Illinois (Mr. Davis).
Mr. DAVIS of Illinois. Mr. Speaker, let me commend the chairman, the
gentleman from Illinois (Mr. Manzullo) and the ranking member, the
gentlewoman from New York (Ms. Velazquez), for bringing this
legislation to the floor.
Mr. Speaker, small businesses are the economic engine that drive
America because they create three-fourths of all new jobs, employ half
our workers, account for half of our gross domestic product, and
contribute more than 55 percent of innovations. Small businesses have
and will continue to pull the U.S. economy out of recession. They
anchor our neighborhoods, employ and train our workers, and take care
of our families. They are the reason that the U.S. economy is the
strongest in the world.
Despite all their contributions, small businesses face many
obstacles. One of
[[Page H2883]]
these obstacles is the expanding volumes of regulations where small
businesses are mandated to learn and comply with government guidelines.
The number of Federal regulations has nearly doubled over the past 20
years. The Federal Register, the resource book of Federal regulatory
initiatives and changes, has increased to nearly 80,000 pages. With
these kinds of rules and regulations, small businesses are finding
themselves confused and often lost in piles of regulatory paperwork. It
is difficult in this economy for small businesses to grow and prosper.
The excess Federal Government paperwork requirements cost the economy
about $100 billion a year. Much of this cost is paid by small business
owners.
Mr. Speaker, this is the reason why I support the passage of H.R.
205, the National Small Business Regulatory Act of 2003. This bill
requires the Small Business Administration to enter into an agreement
with participating small business development centers to provide small
businesses with the information necessary to improve their rate of
compliance with Federal and State regulations. Businesses would receive
confidential, free, one-on-one, in-depth counseling regarding
compliance with Federal and State regulations and would indeed receive
referrals to experts and other providers of compliance assistance.
Again, Mr. Speaker, I commend the chairman (Mr. Manzullo) and the
ranking member. I think that this is probably one of the most
bipartisan committees in the House. It is a committee that does indeed
work well together and it is indeed a committee that turns out
legislation like this bill that I am pleased to support.
Mr. MANZULLO. Mr. Speaker, I continue to reserve the balance of my
time.
Ms. CHRISTENSEN. Mr. Speaker, I rise today in support of H.R. 205,
The National Small Business Regulatory Assistance Act of 2003. This
bill amends the Small Business Act to direct the establishment of a
program which would provide regulatory compliance assistance to small
businesses through participating Small Business Development Centers
(SBDCs), the Association for SBDCs, and Federal compliance partnership
programs.
Mr. Speaker, my colleagues and I on the Small Business Committee have
dedicated much time and energy to addressing the issue small business'
burden of complying with federal regulations. One of the greatest
challenges facing small business owners is understanding and affording
their regulatory requirements. Often, small businesses are so heavily
penalized for non-compliance with regulatory requirements, that they
are forced out of business. Imagine being a small business, in the
current state of our economy, and being faced with paying a $73,000.00
penalty for not submitting enough ``supporting documentation.'' Mr.
Speaker, this is not hypothetical--it is reality.
The House Small Business Committee has held many hearings to examine
the myriad of regulations that small businesses are subjected to. For
example, it is estimated that the Medicaid/Medicare program, alone, has
over 100,000 pages of laws and regulations. The Center for Medicare and
Medicaid Services has over 200 forms that generate 1.7 million annual
responses from health care providers. These forms consume over 100
million hours every year that health care providers could have been
using to treat patients.
Committee and Member staff often serve as an intermediary between
small businesses and the federal government in resolving federal
regulatory compliance issues. What we are doing in this bill is
expanding the scope of the SBDC network to educate small business
owners to ensure greater compliance of federal regulations. There are
more than 1,000 SBDC service locations in the United States, Puerto
Rico, US Virgin Islands, Guam and American Samoa. By using the SBDC
network to conduct this pilot program, H.R. 205 ensures that American
entrepreneurs receive regulatory information in a proven vessel.
Last Congress, this legislation passed the House but did not get
signed into law. I continued support until we are finally able to adopt
this into law. I would also like to commend Representative Sweeney for
continuing to move this bill forward.
Ms. JACKSON-LEE of Texas. Mr. Speaker, I rise in support of H.R. 205.
I support H.R. 205 because the National Small Business Regulatory
Assistance Act of 2003 establishes valuable programs that help
America's small businesses and entrepreneurs.
H.R. 205 helps small businesses by establishing a program that
provides confidential assistance to small business concerns, and
provides small businesses with the information needed to improve their
compliance with Federal and State regulatory agencies.
H.R. 205 also enhances the role of federal and state regulatory
agencies by creating a partnership among various Federal agencies to
increase outreach efforts to small businesses, and utilizes the service
delivery network of Small Business Development Centers to assist small
businesses with access to programs and assistance with regulatory
compliance.
The positive impact of Small Business Development Centers on small
businesses and local economies can be seen by looking at the Small
Business Development Center (SBDC) at the University of Houston in my
home District.
The University of Houston SBDC provides many services including
business management, government procurement, and international trade
assistance. It also provides training and consulting services. The
Houston SBDC has helped many small businesses excel in Houston's
business market. Each year the SBDC gives awards to Houston's Top 100
growing businesses. In 2002, in part because of the efforts of the
SBDC, a small business Houston floral products distribution business,
Arko Associates, Inc., experienced 191% growth. Another small business
Smart Kids Software, an education software firm, experienced 199%
growth. Each of these businesses made the Houston Top 100.
These small businesses enhance the quality of life in our local
communities.
H.R. 205 provides the services and regulatory compliance assistance
to help many small businesses and entrepreneurs stay in business.
I support H.R. 205.
Ms. VELAZQUEZ. Mr. Speaker, I urge the adoption of this bill, and I
yield back the balance of my time.
Mr. MANZULLO. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore (Mr. Terry). 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. 205.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of
those present have voted in the affirmative.
Mr. MANZULLO. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the
Chair's prior announcement, further proceedings on this motion will be
postponed.
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