[Congressional Record (Bound Edition), Volume 147 (2001), Part 13]
[House]
[Pages 18317-18321]
[From the U.S. Government Publishing Office, www.gpo.gov]


[[Page 18317]]

       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--
       ``(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.

[[Page 18318]]

       ``(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. 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.
  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,

[[Page 18319]]

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 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.

[[Page 18320]]

  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.
  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.

[[Page 18321]]

  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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