[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
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February 7, 2002.--Ordered to be printed
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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).
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By fiscal year, in millions of dollars--
--------------------------------------------
2002 2003 2004 2005 2006
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CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Authorization Level................................................ 5 0 0 0 5
Estimated Outlays.................................................. 4 1 0 0 4
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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.