[Congressional Record (Bound Edition), Volume 149 (2003), Part 7]
[House]
[Pages 8769-8774]
[From the U.S. 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).

[[Page 8770]]

       ``(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.
       ``(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

[[Page 8771]]

     $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 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.

[[Page 8772]]

  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 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

[[Page 8773]]

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 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

[[Page 8774]]

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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