[House Report 106-881]
[From the U.S. Government Publishing Office]



106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     106-881

======================================================================



 
       NATIONAL SMALL BUSINESS REGULATORY ASSISTANCE ACT OF 2000

                                _______
                                

 September 21, 2000.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

    Mr. Talent, from the Committee on Small Business, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 4946]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Small Business, to whom was referred the 
bill (H.R. 4946) to amend the Small Business Act to direct the 
Administrator of the Small Business Administration to establish 
a pilot program to provide regulatory compliance assistance to 
small business concerns, and for other purposes, having 
considered the same, report favorably thereon with an amendment 
and recommend that the bill as amended do pass.
  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION. 1. SHORT TITLE.

  This Act may be cited as the ``National Small Business Regulatory 
Assistance Act of 2000''.

SEC. 2. PURPOSE.

  The purpose of this Act is to establish a pilot program to--
          (1) provide confidential assistance to small business 
        concerns;
          (2) provide small business concerns with the information 
        necessary to improve their rate of compliance with Federal 
        regulations;
          (3) create a partnership among Federal agencies to increase 
        outreach efforts to small business concerns with respect to 
        regulatory compliance;
          (4) provide a mechanism for unbiased feedback to Federal 
        agencies on the regulatory environment for small business 
        concerns; and
          (5) utilize the service delivery network of Small Business 
        Development Centers to improve access of small business 
        concerns to programs to assist them with regulatory compliance.

SEC. 3. SMALL BUSINESS REGULATORY ASSISTANCE PILOT PROGRAM.

  The Small Business Act (15 U.S.C. 637 et seq.) is amended--
          (1) by redesignating section 34 as section 35; and
          (2) by inserting after section 33 the following new section:

``SEC. 34. SMALL BUSINESS REGULATORY ASSISTANCE PILOT PROGRAM.

  ``(a) Definitions.--In this section, the following definitions apply:
          ``(1) Association.--The term `Association' means the 
        association, established pursuant to section 21(a)(3)(A), 
        representing a majority of Small Business Development Centers.
          ``(2) Participating small business development center.--The 
        term `participating Small Business Development Center' means a 
        Small Business Development Center selected to participate in 
        the pilot program established under this section.
          ``(3) 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.
          ``(4) Small business development center.--The term `Small 
        Business Development Center' means a Small Business Development 
        Center described in section 21.
          ``(5) 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 
of the Small Business Administration 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 under 
        this section, the Administrator shall enter into arrangements 
        with participating Small Business Development Centers under 
        which such centers will provide--
                  ``(A) access to information and resources, including 
                current Federal and State nonpunitive compliance and 
                technical assistance programs similar to those 
                established under section 507 of the Clean Air Act 
                Amendments of 1990;
                  ``(B) training and educational activities;
                  ``(C) confidential, free-of-charge, one-on-one, in-
                depth counseling to the owners and operators of small 
                business concerns regarding compliance with Federal 
                regulations, provided that such counseling is not 
                considered to be the practice of law in a State in 
                which a Small Business Development Center is located or 
                in which such counseling is conducted; and
                  ``(D) technical assistance.
          ``(2) Quarterly reports.--
                  ``(A) In general.--The Administrator shall require 
                that each participating Small Business Development 
                Center transmit to the Association 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) Form.--Each report referred to in subparagraph 
                (A) shall be transmitted to the Association 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 Association 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) Association of Small Business Development Centers.--
          ``(1) In general.--In carrying out the pilot program under 
        this section, the Administrator, acting through the Office of 
        Small Business Development Centers (or any successor to such 
        office), shall enter into a contract with the Association under 
        which the Association will--
                  ``(A) act as the repository of and clearinghouse for 
                data and information submitted by Small Business 
                Development Centers; and
                  ``(B) transmit an annual report to the President, the 
                Small Business and Agriculture Regulatory Enforcement 
                Ombudsman described in section 30(b), and to the 
                Committees on Small Business of the Senate and House of 
                Representatives, which report shall include--
                          ``(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 Association in which 1 or 
                        more Small Business Development Centers offered 
                        conflicting advice or information regarding 
                        compliance with a Federal regulation to 1 or 
                        more small business concerns; and
                          ``(vi) any recommendations for improvements 
                        in the regulation of small business concerns; 
                        and
                  ``(C) not later than 3 years after the establishment 
                of the pilot program, transmit to the recipients 
                referred to in subparagraph (B) a report containing an 
                evaluation of the pilot program and 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.
  ``(e) Selection of Participating Centers.--In consultation with the 
Association and giving substantial weight to the Association's 
recommendations, the Administrator shall select 2 Small Business 
Development Centers from each of the following groups of States to 
participate in the pilot program under this section, except that the 
Administrator may not select 2 Small Business Development Centers from 
the same state:
          ``(1) Group 1: Maine, Massachusetts, New Hampshire, 
        Connecticut, Vermont, and Rhode Island.
          ``(2) Group 2: New York, New Jersey, Puerto Rico, and the 
        Virgin Islands.
          ``(3) Group 3: Pennsylvania, Maryland, West Virginia, 
        Virginia, the District of Columbia, and Delaware.
          ``(4) Group 4: Georgia, Alabama, North Carolina, South 
        Carolina, Mississippi, Florida, Kentucky, and Tennessee.
          ``(5) Group 5: Illinois, Ohio, Michigan, Indiana, Wisconsin, 
        and Minnesota.
          ``(6) Group 6: Texas, New Mexico, Arkansas, Oklahoma, and 
        Louisiana.
          ``(7) Group 7: Missouri, Iowa, Nebraska, and Kansas.
          ``(8) Group 8: Colorado, Wyoming, North Dakota, South Dakota, 
        Montana, and Utah.
          ``(9) Group 9: California, Guam, Hawaii, Nevada, and Arizona.
          ``(10) Group 10: Washington, Alaska, Idaho, and Oregon.''.

SEC. 4. PROMULGATION OF REGULATIONS.

  Not later than 180 days after the date of enactment of this Act, the 
Administrator shall promulgate regulations, after providing an 
opportunity for notice and comment, to carry out this Act.

    The purpose of H.R. 4946, the ``National Small Business 
Regulatory Assistance Act of 2000,'' is to utilize existing 
Small Business Administration infrastructure to provide 
regulatory compliance assistance to small business. The United 
States Small Business Administration oversees the operations of 
Small Business Development Centers. Located in every state, 
these centers are associated with colleges and universities and 
provide operational assistance to small business owners. They 
are not specifically designated to provide regulatory 
compliance assistance even though these centers might have 
access to significant experts on a variety of regulatory 
compliance assistance matters throughout the university or 
college.
    The bill mandates that the Administrator of the United 
States Small Business Administration establish a pilot project 
in which twenty small business development centers will be 
selected to test whether the centers would be a vehicle for 
providing regulatory compliance assistance to small business 
owners. It is the expectation of the Committee that the program 
should be expanded to include all small business development 
centers should be the pilot program prove successful.

                          Need for Legislation

    During the past twenty years, the Federal Register--the 
compendium of federal regulatory initiatives and changes--
ballooned from 42,000 pages to a record 73,879 pages in 1999. 
This crush of federal dictates is particularly troubling to 
small businesses who find it increasingly difficult to meet 
these burgeoning regulatory requirements while at the same time 
trying to successfully operate their businesses in an expanding 
competitive global environment. Often, small business owners do 
not learn about their failure to comply with a regulation or 
that a new regulatory requirement has been imposed until an 
inspector or auditor walks through the door.
    The result is neither beneficial to the small business 
owner nor the federal government. Federal regulations exist to 
achieve some statutory objective; noncompliance hinders the 
reaching of these statutory goals. Small business owners 
certainly would be more interested in complying with federal 
regulations than paying penalties and fines. However, the 
amount of information, including regulations and concomitant 
guidance, simply overwhelms small business owners.
    In 1996, Congress took action in an effort to alleviate 
this problem. The Small Business Regulatory Enforcement 
Fairness Act provided that federal agencies are required to 
produce plain-English compliance guides for any regulation that 
would have a significant economic impact on a substantial 
number of small businesses. Of course, if small business owners 
do not know about the regulatory changes, the existence of such 
compliance guides does little to assist them. Some mechanism 
must exist to make small businesses more aware of their 
regulatory obligations.
    Even more important than making small business aware of the 
regulations is providing them with assistance needed to 
understand and comply with the regulations. A regulation may 
only take up ten or eleven pages of text, but the explanation 
for what those ten or eleven pages mean may encompass as much 
as three hundred pages of dense, triple-columned, single-spaced 
pages in the Federal Register. Most small business owners do 
not have the time to go through this dense prolixity. And even 
if they did, they would not understand it unless they were 
knowledgeable in the field. The Committee believes that greater 
assistance must be provided to small business owners in helping 
them comply with complex regulatory issuances. Otherwise, a 
divide could develop between those businesses, usually large, 
with the resources to comply and those, usually small, without 
such resources. The small businesses will be at risk for 
penalties, fines, and audits while large businesses will not. A 
regulatory compliance assistance program operated through the 
small business development centers could provide substantial 
assistance in ensuring such a divide does not occur.
    The Small Business Administration oversees a number of 
mechanisms for delivering advice to small business owners. One 
of the most effective is the Small Business Development Center 
program. Operated in conjunction with colleges and 
universities, the small business development centers assist 
small businesses in solving problems concerning the operations, 
manufacturing, engineering, technology, exchange and 
development, personnel administration, marketing, sales, 
merchandising, finance, accounting, and business strategy 
development. The small business development centers utilize the 
resources and the expertise of colleges and universities. In 
addition, the small business development centers, like the 
Agricultural Extension Service, also provide a focal point for 
information retrieval, coordination of federal and state 
government services, and referral to experts. Historically, the 
small business development centers have focused on financial, 
management, and marketing activities of small businesses.
    The Committee believes that small business development 
centers can provide an effective mechanism for dispensing 
regulatory compliance information and advice. However, 
regulatory compliance, unlike many of the other activities 
undertaken by the small business development centers, has 
significant legal consequences. Therefore, the Committee 
believes that a pilot program to examine how the regulatory 
compliance assistance will operate in selected small business 
development centers is a preferred strategy to simply 
authorizing all small business development centers to provide 
regulatory compliance assistance.

                            Committee Action

    The Committee on Small Business held a field hearing to 
consider H.R. 296. The hearing was held on September 2, 1999 at 
the Columbia Greene Community College in Hudson, NY. During 
that hearing, small businesses testified concerning the 
complexity of federal regulations, their desire for better 
understanding of federal regulatory requirements, and the need 
for easy access to compliance assistance.

                       Consideration of H.R. 4945

    At 12:05 p.m. on July 27, 2000, the Committee on Small 
Business met to consider and report H.R. 4946. Following brief 
opening statement by Mr. Sweeney, the Chairman declared the 
bill open for amendment.
    Mr. Sweeney introduced an amendment which was accepted by 
unanimous voice vote, a quorum being present. Chairman Talent 
then moved the bill be reported, and at 12:21 p.m. by unanimous 
voice vote, a quorum being present, the Committee passed H.R. 
4946 and ordered it reported.

                      Section-by-Section Analysis


Section 1. Short title

    Designates the bill as the ``National Small Business 
Regulatory Assistance Act of 2000.''

Section 2. Purpose

    This section expresses the purpose of the legislation--to 
establish a pilot project within certain Small Business 
Development Centers to provide and coordinate regulatory 
compliance assistance to small businesses.

Section 3. Small Business Regulatory Assistance Pilot Program

    This section establishes the pilot program by creating a 
new Section 34 of the Small Business Act.
    Section 34(a)(1) defines the term ``Association'' to be the 
association established pursuant to Section 21 of the Small 
Business Act which represents the majority of small business 
development centers. That organization is the Association of 
Small Business Development Centers.
    Section 34(a)(2) defines the term ``Participating Small 
Business Development Center'' as a small business development 
center selected to participate in the pilot program established 
under this section.
    Section 34(a)(3) defines the term ``Regulatory Compliance 
Assistance'' as assistance provided by a participating small 
business development center to a small business concerning 
compliance with federal regulations.
    Section 34(a)(4) defines the term ``Small Business 
Development Center'' as a small business development center 
described in section 21 of the Small Business Act.
    Section 34(a)(5) defines the term ``State'' to include all 
fifty states and the District of Columbia, the Virgin Islands, 
and Guam.
    Section 34(b) authorizes the Administrator of the Small 
Business Administration to establish a pilot program for 
selected small business development centers to provide small 
businesses with regulatory compliance assistance.
    Section 34(c)(1) authorizes the Administrator to enter into 
arrangements with the small business development centers 
selected under this section for the provision of regulatory 
compliance assistance. The participating small business 
development centers are required to provide access to 
information and resources on regulatory compliance, including 
contact information for federal and state compliance and 
technical assistance similar to those established under section 
507 of the Clean Air Act Amendments of 1990. Numerous other 
federal and state agencies have non-punitive compliance 
assistance programs and the Committee expects that the 
participating small business development centers will maintain 
all necessary contact information with those federal and state 
agencies.
    Section 34(c)(1) also requires that the selected small 
business development centers establish various training and 
educational activities. The Committee expects that selected 
centers will utilize their contacts with federal and state 
agencies to obtain compliance pamphlets, videos, books, and any 
compliance guides issued pursuant to the Small Business 
Regulatory Enforcement Fairness Act. In addition, the Committee 
expects that participating centers will hold lectures and 
seminars on regulatory compliance including updates on 
compliance based on regulatory changes.
    Section 34(c)(1) also mandates that the selected small 
business development centers provide confidential counseling on 
a one-on-one basis at no charge to small businesses seeking 
regulatory compliance assistance. The Committee recognizes that 
compliance with regulations inculcates legal rights and 
responsibilities of small business owners. Therefore, section 
34(c) prohibits any regulatory compliance counseling that would 
be considered the practice of law in the jurisdiction in which 
the small business development center is located or in which 
such counseling is conducted.
    Section 34(c)(1) also requires the provision of technical 
assistance. Such counseling may include the arrangement of 
meetings with technical experts known to the participating 
small business development centers as long as such counseling 
again is done on a one-on-one basis at no charge to the small 
business. For example, the participating small business 
development center may arrange a meeting with a professor of 
engineering to discuss the best way that the particular small 
business might be able to comply with regulations promulgated 
pursuant to the Clean Water Act.
    Section 34(c)(2) requires each participating center to file 
a quarterly report with the Association of Small Business 
Development Centers. The report shall provide a summary of the 
compliance assistance provided under the pilot program. The 
report alsomust contain any data and information obtained by 
the participating small business development center from a federal 
agency concerning compliance which the federal agency intends to be 
disseminated to small business concerns.
    Section 34(c)(2) requires that reports be filed with the 
Association in an electronic format. The Committee expects the 
Administrator to promulgate regulations which will provide a 
consistent format of the report. The Committee believes that 
such consistency is necessary for the accurate compilation of 
data and proper assessment of the effectiveness of the pilot 
program.
    Section 34(c)(2) also permits, but does not require, 
participating small business development centers to make 
interim reports if such reports are necessary or useful. For 
example, a participating small business development center may 
receive inconsistent compliance information from a federal 
agency. By alerting the Association prior to the issuance of 
the quarterly report, the federal agency may be able to issue a 
clarification that may eliminate confusion, save compliance 
costs, and improve small business compliance.
    One of the critical concerns to small businesses is that 
discussions of compliance assistance could be revealed to 
federal agencies which would lead to fines and penalties. The 
Committee recognizes this and prohibits the disclosure of the 
names or addresses of any concern receiving compliance 
assistance under this pilot program unless the Administrator is 
ordered to make such disclosure pursuant to a court order or 
civil or criminal enforcement action commenced by a federal or 
state agency. The Committee expects that participating small 
business development centers will only respond to formal agency 
requests such as civil investigative demands, subpoenas, and 
the like. The Committee does not expect that the participating 
small business development centers will accede to simple verbal 
requests from federal or state agencies.
    Section 34(d) requires the Administrator and the 
Association to enter into a contract for the Association to act 
as repository of data and information submitted by the 
participating small business development centers. The Committee 
believes that a central repository is necessary in order to 
determine whether federal agencies are providing consistent 
compliance information on a national basis.
    Section 34(d) also requires that the Association transmit 
an annual report to the President, the Small Business and 
Agriculture Regulatory Enforcement Ombudsman, and the House and 
Senate Small Business Committees. The report will contain: (a) 
data on the types of information provided by the participating 
small business development centers; (b) the number of small 
businesses that contacted the participating small business 
development centers; (c) the number of small businesses 
assisted by participating small business development centers; 
(d) information on the outreach activities of the participating 
small business development centers; (e) information regarding 
each case known to the Association in which participating small 
business development centers provided conflicting advice 
regarding compliance with federal regulation to one or more 
small businesses; (f) and any recommendations for improving the 
regulatory environment of small businesses. The Committee 
believes that this information is necessary to properly 
evaluate the utility of the pilot program. More importantly, 
the report will reveal whether similarly situated small 
businesses are receiving consistent regulatory compliance 
assistance.
    Section 34(d) also requires the Association to provide a 
report three years after the establishment of the pilot program 
evaluating the effectiveness of the program. The report also 
should contain any suggested modifications to the pilot 
program. Finally, the Association should provide its opinion 
concerning whether the program should be continued and expanded 
to include more small business development centers. It is the 
expectation of the Committee that the pilot program will be 
sufficiently successful to expand the program to other small 
business development centers.
    Section 34(e) requires the Administrator to select two 
participating centers from each of the small Business 
Administration's ten federal regions as those regions exist on 
the date of enactment of this Act. The Administrator shall 
consult with the Association and give the Association's 
recommendations substantial weight. The Administrator is 
prohibited from selecting two small business development 
centers from the same state. The Committee expects that the 
selected development centers will be open to serve any small 
business located in that state.

Section 4. Promulgation of regulations

    Section 4 authorizes the Administrator to promulgate 
regulations to implement this pilot program no later than 180 
days after the enactment of the Act. Such regulations only 
shall be promulgated after the public has been given an 
opportunity for notice and comment. The Committee believes that 
the Administrator can and should accomplish the issuance of 
regulations within the deadline set by statute. The Committee 
considers this Act to be some other law for purposes of section 
603 of Title 5 of the United States Code.

                                     U.S. Congress,
                               Congressional Budget Office,
                                Washington, DC, September 13, 2000.
Hon. James M. Talent,
Chairman, Committee on Small Business,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 4946, the National 
Small Business Regulatory Assistance Act of 2000.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Mark 
Grabowicz.
            Sincerely,
                                           Steven Lieberman
                                    (For Dan L. Crippen, Director).
    Enclosure.

               CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

H.R. 4946--National Small Business Regulatory Assistance Act of 2000

    CBO estimates that implementing H.R. 4946 would cost about 
$1 million in fiscal year 2001 and about $2 million in each 
year thereafter, assuming appropriation of the necessary funds. 
The bill would not affect direct spending or receipts, so pay-
as-you-go procedures would not apply. H.R. 4946 contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act and would impose no costs on 
state, local, or tribal governments.
    H.R. 4946 would direct the Small Business Administration 
(SBA) to establish a pilot program to provide assistance to 
small businesses to comply with federal regulations. Under 
current law, the SBA partially funds Small Business Development 
Centers (SBDCs) that assist small businesses throughout the 
United States. Under the bill, the SBA would choose 20 of those 
SBDCs to participate in the pilot program. H.R. 4946 also would 
direct the SBA to contract with the Association of Small 
Business Development Centers, a private entity that represents 
most SBDCs, to serve as a clearinghouse for information 
gathered through the pilot program and to prepare annual 
reports that summarize the activities of the pilot program.
    The SBA currently spends about $80 million annually to help 
fund around 1,000 SBDCs. Based on information from the SBA and 
the association, we expect that implementing H.R. 4946 would 
require the hiring of one or two regulatory specialists for 
each of the 20 SBDCs in the pilot program and one person at the 
association to compile information from the pilot program. CBO 
estimates that the costs for these additional personnel would 
be about $1 million in fiscal year 2001 and about $2 million in 
each year thereafter, subject to the availability of 
appropriated funds.
    The CBO staff contact is Mark Grabowicz. This estimate was 
approved by Peter H. Fontaine, Deputy Assistant Director for 
Budget Analysis.

                      Committee Estimate of Costs

    Pursuant to the Congressional Budget Act of 1974, the 
Committee estimates that the amendments to the Small Business 
Act contained in H.R. 4946 will not significantly increase 
discretionary spending over the next five fiscal years. The 
Committee also estimates that H.R. 4946 will not affect direct 
spending. These estimates concur with Congressional Budget 
Office (CBO) estimates.
    Furthermore, pursuant to clause 3(d)(2)(A) of rule XIII of 
the Rules of the House of Representatives, the Committee 
estimates that implementation of H.R. 4946 will not 
significantly increase other administrative costs.

                           Oversight Findings

    In accordance with clause 4(c)(2) of rule X of the Rules of 
the House of Representatives, the Committee states that no 
oversight findings or recommendations have been made by the 
Committee on Government Reform with respect to the subject 
matter contained in H.R. 4946.
    In accordance with clause (2)(b)(1) of rule X of the Rules 
of the House of Representatives, the oversight findings and 
recommendations of the Committee on Small Business with respect 
to the subject matter contained in H.R. 4946 are incorporated 
into the descriptive portions of this report.

                 Statement of Constitutional Authority

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds the authority for 
this legislation in Article I, Section 8, clause 18, of the 
Constitution of the United States.

                       Compliance With P.L. 104-4

    H.R. 4946 contains no unfunded mandates.

                    Congressional Accountability Act

    H.R. 4946 does not relate to the terms and conditions of 
employment or access to public services or accommodations with 
the meaning of section 102(b)(3) of P.L. 104-1.

                  Federal Advisory Committee Statement

    This legislation does not establish or authorize the 
establishment of any new advisory committees.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

                  SECTION 34 OF THE SMALL BUSINESS ACT


SEC. 34. SMALL BUSINESS REGULATORY ASSISTANCE PILOT PROGRAM.

  (a) Definitions.--In this section, the following definitions 
apply:
          (1) Association.--The term ``Association'' means the 
        association, established pursuant to section 
        21(a)(3)(A), representing a majority of Small Business 
        Development Centers.
          (2) Participating small business development 
        center.--The term ``participating Small Business 
        Development Center'' means a Small Business Development 
        Center selected to participate in the pilot program 
        established under this section.
          (3) 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.
          (4) Small business development center.--The term 
        ``Small Business Development Center'' means a Small 
        Business Development Center described in section 21.
          (5) 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 of the Small Business Administration 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 
        under this section, the Administrator shall enter into 
        arrangements with participating Small Business 
        Development Centers under which such centers will 
        provide--
                  (A) access to information and resources, 
                including current Federal and State nonpunitive 
                compliance and technical assistance programs 
                similar to those established under section 507 
                of the Clean Air Act Amendments of 1990;
                  (B) training and educational activities;
                  (C) confidential, free-of-charge, one-on-one, 
                in-depth counseling to the owners and operators 
                of small business concerns regarding compliance 
                with Federal regulations, provided that such 
                counseling is not considered to be the practice 
                of law in a State in which a Small Business 
                Development Center is located or in which such 
                counseling is conducted; and
                  (D) technical assistance.
          (2) Quarterly reports.--
                  (A) In general.--The Administrator shall 
                require that each participating Small Business 
                Development Center transmit to the Association 
                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) Form.--Each report referred to in 
                subparagraph (A) shall be transmitted to the 
                Association 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 
                Association 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) Association of Small Business Development Centers.--
          (1) In general.--In carrying out the pilot program 
        under this section, the Administrator, acting through 
        the Office of Small Business Development Centers (or 
        any successor to such office), shall enter into a 
        contract with the Association under which the 
        Association will--
                  (A) act as the repository of and 
                clearinghouse for data and information 
                submitted by Small Business Development 
                Centers; and
                  (B) transmit an annual report to the 
                President, the Small Business and Agriculture 
                Regulatory Enforcement Ombudsman described in 
                section 30(b), and to the Committees on Small 
                Business of the Senate and House of 
                Representatives, which report shall include--
                          (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 Association in 
                        which 1 or more Small Business 
                        Development Centers offered conflicting 
                        advice or information regarding 
                        compliance with a Federal regulation to 
                        1 or more small business concerns; and
                          (vi) any recommendations for 
                        improvements in the regulation of small 
                        business concerns; and
                  (C) not later than 3 years after the 
                establishment of the pilot program, transmit to 
                the recipients referred to in subparagraph (B) 
                a report containing an evaluation of the pilot 
                program and 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.
  (e) Selection of Participating Centers.--In consultation with 
the Association and giving substantial weight to the 
Association's recommendations, the Administrator shall select 2 
Small Business Development Centers from each of the following 
groups of States to participate in the pilot program under this 
section, except that the Administrator may not select 2 Small 
Business Development Centers from the same state:
          (1) Group 1: Maine, Massachusetts, New Hampshire, 
        Connecticut, Vermont, and Rhode Island.
          (2) Group 2: New York, New Jersey, Puerto Rico, and 
        the Virgin Islands.
          (3) Group 3: Pennsylvania, Maryland, West Virginia, 
        Virginia, the District of Columbia, and Delaware.
          (4) Group 4: Georgia, Alabama, North Carolina, South 
        Carolina, Mississippi, Florida, Kentucky, and 
        Tennessee.
          (5) Group 5: Illinois, Ohio, Michigan, Indiana, 
        Wisconsin, and Minnesota.
          (6) Group 6: Texas, New Mexico, Arkansas, Oklahoma, 
        and Louisiana.
          (7) Group 7: Missouri, Iowa, Nebraska, and Kansas.
          (8) Group 8: Colorado, Wyoming, North Dakota, South 
        Dakota, Montana, and Utah.
          (9) Group 9: California, Guam, Hawaii, Nevada, and 
        Arizona.
          (10) Group 10: Washington, Alaska, Idaho, and Oregon.

                                  
