[Senate Report 107-136]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 314
107th Congress                                                   Report
                                 SENATE
 2d Session                                                     107-136

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       WHITE HOUSE QUADRENNIAL SMALL BUSINESS SUMMIT ACT OF 2001

                                _______
                                

                February 7, 2002.--Ordered to be printed

                                _______
                                

 Mr. Kerry, from the Committee on Small Business and Entrepreneurship, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 396]

    The Committee on Small Business and Entrepreneurship, to 
which was referred the bill, S. 396, to provide for national 
quadrennial summits on small business and state summits on 
small business, to establish the White House Quadrennial 
Commission on Small Business, and for other purposes, having 
considered the same, reports favorably thereon without 
amendment and recommends that the bill do pass.

                         I. Description of Bill

    The bill would establish the White House Commission on 
Small Business and authorize appropriations for the Commission 
to host meetings at the state and national levels on issues 
related to small business. In 2000, representatives of small 
businesses and organizers of prior White House Conferences on 
Small Business worked closely with the Committee on Small 
Business to develop legislation similar to the ``White House 
Quadrennial Small Business Summit of 2001'' (S. 396). The bill 
passed the Senate last year as part of the ``Small Business 
Reauthorization Act of 2000'' (S. 3121); however, the House 
Committee on Small Business did not have any opportunity to 
hold hearings on S. 396 prior to the end of the 106th Congress, 
and it was dropped during Conference.
    The ``White House Quadrennial Small Business Summit Act of 
2001'' is designed to capture and focus national attention on 
small business every four years. In this way, the nation will 
take the opportunity to study what is happening to small 
businesses throughout the United States. In one sense, S. 396 
is designed to put small businesses on a pinnacle so the nation 
can appreciate what they have accomplished. At the same time, 
and just as important, every four years those in Congress and 
the Administration will have an opportunity to learn from small 
businesses in each state what is not going well for them--such 
as, inadequate access to capital, difficulty attracting and 
retaining qualified workers, actions by the Federal Government 
that hinder small business growth, or state and local 
regulations that are a deterrent to starting a business.
    S. 396 creates an independent, bipartisan White House 
Quadrennial Commission on Small Business, which will be made up 
of 8 small business advocates and the Small Business 
Administration's Chief Counsel for Advocacy. Every four years, 
during the first year following a presidential election, the 
President will name four National Commissioners. In the U.S. 
Senate and the House of Representatives, the Majority Leader 
and Minority Leader of each body will each name one National 
Commissioner.
    Widespread participation from small businesses in each 
state will contribute to the work leading up to the White House 
Quadrennial Summit on Small Business, hereafter known as the 
Small Business Summit. Under the bill, the National Summit will 
take place one year after the Quadrennial Commissioners are 
appointed. The first act of the Commissioners will be to 
request that each Governor and each U.S. Senator name a small 
business delegate and an alternate delegate from their 
respective states to the Small Business Summit. Each U.S. 
Representative will be asked to name a small business delegate 
and an alternate from his or her Congressional district. And 
the President will name a delegate and an alternate from each 
state.
    The delegates to the Small Business Summit must be owners 
or officers of small businesses. Prior to the Small Business 
Summit, there will be individual State Summits at which 
additional delegates will be elected to attend the Small 
Business Summit. Three delegates and three alternates will be 
elected for each Congressional district within the state.
    The small business delegates will play a major role leading 
up to the Small Business Summit. The Committee will be looking 
to the small business delegates to develop and highlight issues 
of critical concern to small businesses. The work at the state 
level by the small business delegates will need to be thorough 
and thoughtful to make the Small Business Summit a success.

Why hold a small business summit every four years

    For the past 15 years, small businesses have been the 
fastest growing sector of the U.S. economy. When large 
businesses were restructuring and laying off significant 
numbers of workers, small businesses not only filled the gap, 
but their growth actually caused a net increase in new jobs. 
Today, small businesses employ over half of all workers in the 
United States, and they generate nearly 55% of the gross 
domestic product. Were it not for small businesses, our country 
could not have experienced the sustained economic upsurge of 
the last decade.
    Because small businesses play such a significant role in 
our economy, in both rural towns and bustling inner cities, the 
Committee believes it is important that the Federal Government 
sponsor a Small Business Summit every four years to highlight 
the successes of small businesses and to focus national 
attention on the problems that may be hindering the ability of 
small businesses to start up and grow.
    Small business ownership is, has been, and will continue to 
be the dream of millions of Americans. In fact, the United 
States has been so successful in promoting business ownership, 
people often lose sight of the very unique opportunities 
available to us, the opportunity to own and run our own 
business. Countries from all over the world send delegations to 
the United States to study why our system of small business 
ownership is so successful, all the while looking for ways to 
duplicate our success in their own country.
    The goal behind S. 396 will be for the small business 
delegates to think broadly, that is, to think ``outside of the 
box.'' Their attention should include, but not be restricted 
to, the traditional issues associated with small business 
concerns, such as access to capital, tax reform and regulatory 
reform. The Committee would urge future delegates to focus on a 
wide array of issues that significantly impact small 
businesses, including the importance of a solid education and 
the need for skilled, trained workers, as well as employee 
recruitment and retention issues. The Committee would also urge 
the delegates to consider obstacles faced by entrepreneurial 
small businesses and examine new economy issues, such as the 
future of E-commerce and its implications for small businesses.
    Once the small business delegates are selected, the Small 
Business Summit will serve as a resource to the delegates for 
issue development and for planning the State Summits. The Small 
Business Commission will have a modest staff, including an 
Executive Director, that will work full time to make the State 
and Small Business Summits successes. A major resource to the 
Small Business Commission and its staff will be the Small 
Business Administration's Chief Counsel for Advocacy. The Chief 
Counsel and the Office of Advocacy will serve as a major 
resource to the Small Business Commission, and in turn, to the 
small business delegates, by providing them with both 
substantive background information and other administrative 
materials in order to support the State and Small Business 
Summits.
    The Committee is pleased with the work of SBA's Office of 
Advocacy on previous Small Business Summits, formally known as 
White House Conferences. The Committee is equally pleased with 
the work of previous Small Business Commissions, and this 
legislation is not intended to limit their ability to conduct 
their responsibilities as they see fit. Rather, the provisions 
relating to contracting in the bill are intended to ensure the 
Commission seeks expert guidance. The Small Business Commission 
should in no way view this as a mandate to absolve them of 
their responsibility as the ultimate authority for 
implementation of the provisions of this bill.
    The Committee recognizes that small businesses generally do 
not have the resources to maintain full time representatives to 
lobby the Federal Government. They are too busy running their 
businesses to devote much attention to educating government 
officials as to what is going well, what is going poorly, and 
what needs improvement. The White House Quadrennial Small 
Business Summit will give small businesses an opportunity, 
every four years, to make their mark on the Legislative and the 
Executive Branches.

                           II. Committee Vote

    In compliance with rule XXVI(7)(b) of the Standing Rules of 
the Senate, the following vote was recorded on February 28, 
2001. A motion by Senator Bond to adopt S. 396, the White House 
Quadrennial Small Business Summit Act of 2001 was approved by a 
recorded vote, 18-0, with the following Senators voting in the 
affirmative: Bond, Kerry, Burns, Bennett, Snowe, Enzi, 
Fitzgerald, Crapo, Allen, Ensign, Levin, Harkin, Lieberman, 
Wellstone, Cleland, Landrieu, Edwards, and Cantwell.

                  III. Evaluation of Regulatory Impact

    In compliance with rule XXVI(11)(b) of the Standing Rules 
of the Senate, it is the opinion of the Committee that no 
significant additional regulatory impact will be incurred in 
carrying out the provisions of this legislation. There will be 
no additional impact on the personal privacy of companies or 
individuals who utilize the services provided.

                      IV. Changes in Existing Law

    In the opinion of the Committee, it is necessary to 
dispense with the requirement of section 12 of rule XXVI of the 
Standing Rules of the Senate in order to expedite the business 
of the Senate.

                            V. Cost Estimate

    In compliance with rule XXVI(11)(a)(1) of the Standing 
Rules of the Senate, the Committee estimates the cost of the 
legislation will be equal to the amounts discussed in the 
following letter from the Congressional Budget Office.

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, March 12, 2001.
Hon. Christopher S. Bond,
Chairman, Committee on Small Business, U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 396, the White House 
Quadrennial Small Business Summit Act of 2001.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Ken Johnson.
            Sincerely,
                                           Steven Lieberman
                                    (For Dan L. Crippen, Director).
    Enclosure.

S. 396--White House Quadrennial Small Business Summit Act of 2001

    Summary: S. 396 would establish the White House Quadrennial 
Commission on Small Business and authorize appropriations for 
the Commission to host meetings at the state and national 
levels on issues related to small business. The bill would 
require that the national meetings be held during the second 
year after each Presidential election. Also, S. 396 would 
require the Commission to submit a report to the President and 
the Congress within six months after each national meeting.
    CBO estimates that implementing S. 396 would cost $9 
million during the 2002-2006 period, subject to the 
availability of appropriated funds. The bill would not affect 
direct spending or receipts; therefore, pay-as-you-go 
procedures would not apply.
    S. 396 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.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 396 is shown in the following table. The 
costs of this legislation fall within budget function 370 
(commerce and housing credit).

----------------------------------------------------------------------------------------------------------------
                                                                       By fiscal year, in millions of dollars--
                                                                    --------------------------------------------
                                                                       2002     2003     2004     2005     2006
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Authorization Level................................................        5        0        0        0        5
Estimated Outlays..................................................        4        1        0        0        4
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: S. 396 would require the Commission to 
host a series of state and national meetings on small business 
issues during the second year after every Presidential 
election. The bill also would authorize the appropriation of $5 
million for each cycle of state and national meetings. Based on 
information from the Small Business Administration, CBO 
estimates that implementing the bill would cost $4 million in 
2002 and $9 million during the 2002-2006 period, subject to the 
availability of appropriated funds.
    Pay-as-you-go considerations: None.
    Intergovernmental and private-sector impact: S. 396 
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.
    Estimate prepared by: Federal Costs: Ken Johnson; Impact on 
State, Local, and Tribal Governments: Shelly Finlayson; and 
Impact on the Private Sector: Lauren Marks.
    Estimate approved by: Robert A. Sunshine, Assistant 
Director for Budget Analysis.

                    VI. Section-By-Section Analysis

Section 1. Short title

    The name of the Act will be the ``White House Quadrennial 
Small Business Summit Act of 2001.''

Section 2. Definitions

    This section defines key words and terms included in the 
title.

Section 3. National and State summits on small business

    This section states that a national White House Quadrennial 
Summit on Small Business will occur every four years during the 
second year after a presidential election. Prior to the Small 
Business Summit, there will be State Summits for the delegates 
in each state.

Section 4. Purposes of quadrennial summits

    This section sets forth the reasons for having a White 
House Quadrennial Summit on Small Business.

Section 5. Summit participants

    Subsection (a) directs the Quadrennial Commission to 
conduct White House Quadrennial Summits on Small Business and 
State Summits to bring together individuals interested in 
issues affecting small businesses.
    Subsection (b) sets forth the procedures for the 
appointment and election of delegates to the State Summits and 
the White House Quadrennial Summits on Small Business. A 
delegate must be an owner or officer of a small business. The 
Governors and U.S. Senators will each appoint a delegate and an 
alternate delegate from his respective state. U.S. 
Representatives will each appoint a delegate and alternate from 
his respective congressional district, and the President will 
appoint a delegate and alternate from each state. The delegates 
will be able to conduct meetings and will attend a State Summit 
in his respective state before the White House Quadrennial 
Summit on Small Business is held. At the State Summits, the 
participants will elect three delegates and three alternates 
for each congressional district within the State.
    Paragraph (4) sets forth the powers and duties of the 
delegates to the Quadrennial Summit.
    Subsection (c) describes the role of SBA's Chief Counsel 
for Advocacy with respect to the Quadrennial and State Summits.
    Subsection (d) explains that the delegates will be 
responsible for their own expenses and will not be reimbursed 
from appropriated funds.
    Subsection (e) directs the Quadrennial Commission to 
appoint an Advisory Committee of 10 persons who were 
participants at the last preceding White House Quadrennial 
Summit on Small Business.
    Subsection (f) states that all State and White House 
Quadrennial Summits on Small Business will be open to the 
public and no fee greater than $20 can be charged to people who 
wish to attend a summit.

Section 6. White House Quadrennial Commission on Small Business

    Subsection (a) authorizes the establishment of a White 
House Quadrennial Commission on Small Business.
    Subsection (b) defines the membership of the Quadrennial 
Commission, which numbers nine members in total. It shall 
include the SBA Chief Counsel for Advocacy, 4 members appointed 
by the President, 2 members from the Senate (1 majority, 1 
minority), and 2 members from the House of Representatives (1 
majority, 1 minority). The appointments will be made 18 months 
before the opening date of the White House Quadrennial Summit 
on Small Business and will expire six months after the White 
House Quadrennial Summit on Small Business has concluded.
    Subsection (c) sets forth the election of a Chairperson.
    Subsection (d) permits the Quadrennial Commission to enter 
into contracts with public agencies, private organizations, 
academic institutions, and independent, nonpartisan 
organizations to carry out the State Summits and the White 
House Quadrennial Summit on Small Business.
    Subsection (e) directs the White House Quadrennial Summit 
on Small Business to consult with the Office of Advocacy at 
SBA, Congress, and Federal agencies in carrying out the State 
Summits and the White House Quadrennial Summit on Small 
Business.
    Subsection (f) requires that the Quadrennial Commission 
submit a report to the Chairperson and Ranking Minority Members 
of the Senate Committee on Small Business and Entrepreneurship 
and House Committee on Small Business within 6 months after the 
conclusion of the White House Quadrennial Summit on Small 
Business.
    Subsection (g) establishes a quorum of 4 members of the 
Quadrennial Commission for purposes of transacting business.
    Subsection (h) requires the Quadrennial Commission to hold 
its first meeting within 20 days after the appointment of all 
members and at least every 30 days thereafter.
    Subsection (i) states that vacancies on the Quadrennial 
Commission will be filled in the same manner as the original 
appointments were made.
    Subsection (j) authorizes the Quadrennial Commission to 
hire an Executive Director and the staff necessary to conduct 
the State Summits and White House Quadrennial Summit on Small 
Business.
    Subsection (k) authorizes the Quadrennial Commission to 
reimburse its members for travel expenses, including per diem.

Section 7. Authorization of appropriations; availability of funds

    This section authorizes $5 million to cover all expenses 
for each White House Quadrennial Summit on Small Business 
incurred under this Act. It states that funds from the SBA may 
not support the White House Quadrennial Summit on Small 
Business unless specifically earmarked for that purpose.

                                
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