[Senate Report 107-308]
[From the U.S. Government Publishing Office]
Calendar No. 696
107th Congress Report
SENATE
2d Session 107-308
======================================================================
NATIONAL SMALL BUSINESS REGULATORY ASSISTANCE ACT OF 2002
_______
October 9, 2002.--Ordered to be printed
_______
Mr. Kerry, from the Committee on Small Business and Entrepreneurship,
submitted the following
R E P O R T
together with
ADDITIONAL VIEWS
[To accompany S. 2483]
On July 24, 2002, the Committee on Small Business and
Entrepreneurship considered S.2483, the ``National Small
Business Regulatory Assistance Act of 2002.'' S. 2483 would
establish a four-year pilot program to provide resources to
Small Business Development Centers (SBDCs) so they may provide
free-of-charge, non-punitive Federal regulatory compliance
assistance to small business owners. The legislation also
establishes statutory privacy protections for small businesses
that use SBDC counseling services. Having considered S. 2483,
the Committee reports favorably thereon without further
amendment and recommends that the bill do pass.
I. INTRODUCTION
The intention of S. 2483 the ``National Small Business
Regulatory Assistance Act of 2002,'' is to utilize existing
United States Small Business Administration (SBA)
infrastructure to provide regulatory compliance assistance to
small businesses. The SBA oversees the operations of Small
Business Development Centers (SBDCs). Located in every state,
these centers are associated with colleges and universities and
provide operational assistance to small business owners. They
are authorized to provide regulatory compliance assistance, but
they do not have an organized program for providing such
assistance and lack the resources to do so. S. 2483 would
establish a pilot project for selected State SBDC programs to
develop regulatory compliance assistance programs. The bill
mandates that the Administrator of the SBA establish a pilot
project in which 20 State SBDC programs will be selected to
test whether the centers within those State programs would be
an appropriate vehicle for providing regulatory compliance
assistance to small business owners.
During the past 20 years, the Federal Register--the
compendium of Federal regulatory initiatives and changes--
almost doubled in size from 42,000 pages to a record 83,289
pages in 2000. This growth of Federal regulations is of concern
to many small businesses that often find it difficult to meet
these regulatory requirements while at the same time trying to
successfully operate their businesses in an expanding and
competitive global environment.
Federal regulations exist to achieve statutory objectives;
noncompliance hinders the achievement of these statutory goals.
Small business owners want to comply with Federal regulations
but often lack the knowledge of how to do so correctly. 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. Unfortunately, many small business owners do not
know about the existence of such compliance guides and may be
reluctant to meet with a regulatory agency to learn how to
comply with Federal regulations.
The SBA oversees a number of mechanisms for delivering
advice to small business owners. One of the most effective is
the SBDC program. Operated in conjunction with colleges and
universities, the SBDC program assists 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 SBDCs
utilize the resources and the expertise of colleges and
universities. In addition, the SBDCs, 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 SBDCs have
focused on financial, management, and marketing activities of
small businesses despite the requirement that they also provide
regulatory compliance assistance.
The Committee believes that SBDCs can provide an effective
mechanism for dispensing regulatory compliance information and
advice, especially to those small businesses who may not wish
to seek advice from a Federal regulatory agency. However,
regulatory compliance, unlike many of the other activities
undertaken by the SBDCs, 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 providing an authorization of additional
funding so that the whole network of SBDCs can provide
regulatory compliance assistance.
II. LEGISLATIVE HISTORY
H.R. 203, the ``National Small Business Regulatory Assistance Act of
2000''
H.R. 203, the ``National Small Business Regulatory
Assistance Act of 2000,'' was introduced by Representative John
E. Sweeney on January 3, 2001. Representatives Juanita
Millender-McDonald and Bill Pascrell, Jr. are cosponsors.
The House Committee on Small Business held a field hearing
to consider predecessor versions of H.R. 203. The hearing was
held on September 2, 1999, at the Columbia Greene Community
College in Hudson, NY. During that hearing, small businesses
expressed concerns about the complexity of Federal regulations,
their desire for better understanding of Federal regulatory
requirements, and the need for easy access to compliance
assistance. The Committee's Subcommittee on Workforce,
Empowerment, and Government Programs held a hearing on H.R. 203
on July 19, 2001. At the hearing, the sponsor of the bill, Mr.
Sweeney, noted that he continues to hear from small business
owners that they still are being overwhelmed with regulation
and need compliance assistance. The Association of Small
Business Development Centers also voiced support for the bill.
Finally, the American Industrial Hygiene Associationalso
endorsed the bill but suggested that amendments should be made to
ensure that regulatory compliance assistance is provided by properly
credentialed individuals.
On September 21, 2001, the House Committee considered H.R.
203 and passed it by unanimous voice vote with an amendment.
The full House considered H.R. 203 under suspension of the
rules on October 2, 2001. H.R. 203 subsequently passed by voice
vote.
S. 2483, the ``National Small Business Regulatory Assistance Act of
2002''
S. 2483, the ``National Small Business Regulatory
Assistance Act of 2002,'' was introduced by Senators Max
Cleland, John F. Kerry, Mary L. Landrieu, James M. Jeffords,
Tom Harkin, Jeff Bingaman, Jean Carnahan, Patrick J. Leahy,
Joseph I. Lieberman and Tim Johnson on May 8, 2002. Additional
cosponsors include Senators Zell Miller, Debbie Stabenow and
Maria Cantwell.
On April 24, 2001, the Senate Committee on Small Business
and Entrepreneurship held a hearing titled ``Protecting Small
Business Rights: SBREFA on its 5th Anniversary,'' which
discussed, among other topics, the need to help small
businesses comply with Federal regulations.
During consideration of S. 2483, on July 24, 2002, the
Senate Committee's Ranking Member, Senator Christopher S. Bond,
raised concerns that the Senate Committee had not adequately
considered the National Small Business Regulatory Assistance
Act. In response to these concerns, the Committee Chairman,
Senator John F. Kerry, proposed holding a roundtable on the
legislation to alleviate these concerns shortly after moving
forward with the Committee vote. The Ranking Republican agreed
and the legislation was passed, without amendment, by the
Senate Committee with an 18-1 vote.
On August 1, 2002, the Senate Committee held a roundtable
titled ``Promoting Small Business Regulatory Compliance and
Entrepreneurial Education--the Role of the SBDC Network.''
During this roundtable, the Senate Committee received evidence
that S. 2483 would provide adequate resources to Small Business
Development Centers (SBDC) so that they may provide free-of-
charge, non-punitive regulatory compliance assistance to small
business owners. Small business representatives at the
roundtable also stressed the need to provide such assistance in
a confidential manner and stressed that many small businesses
would prefer to receive compliance assistance from their SBDC,
as opposed to a Federal regulatory agency. Furthermore, the
Senate Committee received information that despite the best
efforts of Federal compliance assistance programs, they often
fall short in their efforts to assist small businesses and
these programs are often not designed with small businesses in
mind.
Small business groups such as the National Small Business
United and the National Association for the Self Employed
support S. 2483. Representative Sweeney, the sponsor of the
House version also submitted a letter to Chairman Kerry in
support of the Senate version of the legislation. Additionally,
regulatory compliance groups, such as the Clean Air Resource
Center, support the legislation.
III. ANALYSIS OF S. 2483, THE ``NATIONAL SMALL BUSINESS REGULATORY
ASSISTANCE ACT OF 2002''
Purpose
To establish a four-year pilot program, the purpose of
which is to provide resources to Small Business Development
Centers (SBDCs) so they may provide free-of-charge, non-
punitive regulatory compliance assistance to small business
owners. The legislation also establishes statutory privacy
protections for small businesses that use SBDC counseling
services.
Pilot program
The legislation requires the Small Business Administration
(SBA) to provide grants to the SBDC programs of two states in
each of the SBA's 10 regions. The grants shall be more than
$150,000, but less than $300,000 and shall be made without a
matching requirement.
The Committee believes that grant amounts should be
relative to a state's population and the anticipated need of
the assistance in that state.
Grant purpose
SBDCs are required to use the grants to provide access to
information and resources, including current Federal and State
non-punitive compliance and technical assistance programs;
conduct training and educational activities; and, offer
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 derived
from Federal law.
SBDCs participating in the program are statutorily required
to form partnerships with Federal compliance assistance
programs and provide access to information and resources on
complying with Federal regulations, including current Federal
and State non-punitive compliance assistance programs. Numerous
Federal and State agencies have non-punitive compliance
assistance programs, such as the federal Occupational Safety
and Health Administration (OSHA), and the Committee expects
that the participating SBDCs will maintain all necessary
information with those Federal and State agencies in developing
their programs. Furthermore, the Committee expects that the
quality of coordination of these assistance resources will be a
significant factor in selecting the SBDCs for the pilot
project.
The Committee also 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.
SBDC reporting requirement
Each SBDC participating in the pilot program would be
required to submit a quarterly report that includes a summary
of the regulatory compliance assistance provided by the center
under the pilot program; the number of small business concerns
assisted under the pilot program; and for every fourth report,
any regulatory compliance information based on Federal law that
a Federal or State agency has provided to the center during the
preceding year and requested that it be disseminated to small
business concerns.
SBA requirements
The SBA would have responsibility for evaluating the pilot
program and making recommendations on the extension of the
program to other SBDCs. The SBA must also promulgate final
regulations to carry out the pilot program within 180 days of
passage.
The Committee expects that such regulations 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. The
regulations shall include the priorities for the type of
assistance to be provided, standards relating to the
educational, technical, and support services to be provided by
the Association to the participating centers, and standards for
work plans that the participating centers will provide to the
Administrator. The Committee believes that given the potential
interest in the program by SBDCs, it is appropriate for the
Administrator to have a set of standards to determine which
State programs shall be chosen. More importantly, the standards
will provide an appropriate baseline for the Comptroller
General's evaluation of the pilot project.
Regarding the requirement that the Administrator develop
appropriate standards for ensuring the technical qualifications
of experts to whom small businesses will be referred, the
Committee does not intend that someone must have a college or
advance degree to qualify. For example, a contractor licensed
in a state with 20 years experience (who is a high school
graduate) may be as well-equipped to provide advice on
compliance with OSHA construction standards as a professor of
civil engineering. On the other hand, that same contractor
might not be an appropriate individual to provide tax
compliance advice. The Committee does not expect that this
aspect of the Administrator's regulations shall be all
encompassing, i.e., delineate every profession and the
appropriate qualifications. However, the Committee does expect
the Administrator to recognize, as qualified, those individuals
that are certified by nationally recognized accrediting bodies
(whose members must demonstrate substantial educational and
practical experience), meet educational and work standards
established by a Federal agency, or are licensed to practice a
particular profession or job pursuant to State law. The
Committee expects that the regulations will provide
participating centers with enough information that the centers
can determine whether the person providing the advice is
competent in the field of regulation.
Privacy provisions
The legislation contains a provision that prohibits SBDCs
from disclosing the name, street address or phone number of a
client. Exemptions are made for court orders and audits. SBDC
program activity data would still be available to the SBA under
this provision for evaluation purposes.
The Committee has been contacted on a number of occasions
by SBDCs that employees of the SBA have attempted to obtain the
names and addresses of businesses that sought the services of
the SBDCs. The Committee is greatly troubled by these
statements and believes that any attempts by the Administrator
or the employees of the SBA to obtain the names and addresses
of persons seeking SBDC assistance is inappropriate because it
would act as a disincentive for small businesses to utilize the
centers.
S. 2483 provides for two exceptions to the privacy
requirements: (1) if the Administrator is ordered by a court in
any civil or criminal action initiated by Federal or State
agency; or (2) the Administrator requires the information while
undertaking a financial audit of the SBDC. To ensure that the
Administrator does not unduly abuse the second exception for
disclosure, the legislation requires the Administrator to
promulgate regulations specifying when such disclosures in an
audit shall be made. Access by the Administration to program
activity data for administrative purposes is not restricted.
The Committee expects the regulations to strictly limit
disclosure during the audit process and severely circumscribe
those individuals who will have access to the audit information
during the audit. The Committee recognizes that the information
collected during the audit may have to be retained for a
variety of purposes, such as management reviews by the
Inspector General or congressional oversight. The Committee
expects the Administrator's regulations to cover who, if
anyone, shall have access to the raw data, including the names
and addresses of the SBDC's users, after the audit is complete.
The Committee does not intend information obtained during the
audit concerning identifiable individuals or businesses and
retained by the Administrator to be released pursuant to the
Freedom of Information Act.
The Committee is concerned that SBDCs have been asked by
SBA personnel to reveal, for functions unrelated to the
financial and programmatic auditing of SBDCs, the names of
businesses that seek advice from SBDCs. The Committee believes
that such requests by SBA personnel are inappropriate. The
committee expects that participating SBDCs will only respond to
formal agency requests such as civil investigative demands,
subpoenas, requests from Administrator's Associate
Administrator for SBDCs when performing a financial audit of
the SBDC, or requests from the Inspector General of the SBA
.The Committee expects the SBDCs will not provide information
concerning the identity of businesses simply upon the verbal
request of a Federal or State agency.
IV. COMMITTEE VOTE
In compliance with rule XXVI(7)(b) of the Standing Rules of
the Senate, the following votes were recorded on July 24, 2002.
A motion by Senator Kerry to adopt S. 2483, the ``National
Small Business Regulatory Assistance Act of 2002,'' was
approved by a 18-1 recorded vote, with the following Senators
voting in the affirmative: Kerry, Bond, Levin, Harkin,
Lieberman, Wellstone, Cleland, Landrieu, Edwards, Cantwell,
Carnahan, Burns, Bennett, Snowe, Fitzgerald, Crapo, Allen and
Ensign. Senator Enzi voted in the negative.
V. 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 make use of the services provided.
VI. CHANGES IN EXISTING LAW
In the opinion of the Committee, it is necessary to
dispense with the requirement of rule XXVI (12) of the Standing
Rules of the Senate in order to expedite the business of the
Senate.
VII. 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 indicated by the
Congressional Budget Office in the following letter.
U.S. Congress,
Congressional Budget Office,
Washington, DC, July 31, 2002.
Hon. John F. Kerry,
Chairman, Committee on Small Business and Entrepreneurship, U.S.
Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 2483, the National
Small Business Regulatory Assistance Act of 2002.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Ken Johnson.
Sincerely,
Barry B. Anderson
(For Dan L. Crippen, Director).
Enclosure.
S. 2483--National Small Business Regulatory Assistance Act of 2002
Summary: S. 2483 would require the Small Business
Administration (SBA) to establish a pilot program for small
business development centers (SBDCs) to counsel small business
owners on compliance with federal and state regulations. SBDCs
are cooperative efforts of the private sector, schools, and
federal, state, and local governments to provide management
assistance to current and prospective small business owners.
S. 2483 would authorize the appropriation of $5 million a
year during the 2003-2006 period to fund the new program. Based
on the SBA's historical spending patterns, CBO estimates that
implementing the bill would cost $20 million over the 2003-2007
period, assuming the appropriation of the authorized amounts.
The bill would not affect direct spending or receipts;
therefore, pay-as-you-go procedures would not apply.
S. 2483 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
The bill would benefit state, local, or tribal governments
receiving grants under this bill, and any costs incurred would
be voluntary.
Estimated cost to the Federal Government: The estimated
budgetary impact of S.2483 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--
--------------------------------------------
2003 2004 2005 2006 2007
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATIONS
Authorizaiton Level................................................ 5 5 5 5 0
Estimated Outlays.................................................. 4 5 5 5 1
----------------------------------------------------------------------------------------------------------------
Pay-as-you-go-considerations: None.
Intergovernmetal and private-sector impact: S. 2483
contains no intergovernmental or private-sector mandates as
defined in UMRA. The bill would benefit state, local, or tribal
governments receiving grants under this bill, and any costs
incurred would be voluntary.
Previous CBO estimate: On August 13, 2001, CBO transmitted
a cost estimate for H.R. 203, the National Small Business
Regulatory Assistance Act of 2001, as ordered reported by the
House Committee on Small Business on August 1, 2001. The
provisions and the estimated costs of H.R. 203 are very similar
to those of S. 2483, except that H.R. 203 would authorize the
appropriation of $5 million for this program in 2002 and every
year thereafter.
Estimate prepared by: Federal Costs: Ken Johnson, Impact on
State, Local, and Tribal Governments: Greg Waring; and Impact
on the Private Sector: Cecil McPherson.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
VIII. SECTION-BY-SECTION ANALYSIS, S. 2483
Section 1. Short Title
This Act is titled the ``National Small Business Regulatory
Assistance Act of 2002.''
Section 2
Sets out the purpose of the legislation.
Section 3
Establishes the Small Business Regulatory Assistance Pilot
Program.
Section 4
Requires the Administrator of the Small Business
Administration to establish regulations for the pilot program
within 180 days of enactment.
Section 5
Amends Section 21(c) of the Small Business Act to add
paragraph (9), which establishes privacy requirements for Small
Business Development Centers.
XI. ADDITIONAL VIEWS
Since becoming Chairman of the Committee on Small Business
(Committee) in January 1995, we have had discussions about
legislation to enable the Small Business Development Centers
(SBDCs) to provide regulatory compliance assistance to help
small businesses cope with a myriad of complicated and
burdensome Federal regulations. The SBDC Program, one of the
hallmark programs of the Small Business Administration (SBA),
has demonstrated that its centers, located in each State, have
the ability to assist small businesses in ways that Federal and
State entities cannot. I have long been an advocate of making
greater use of the tremendous resources that exist within the
SBDC program to benefit the small business community. In that
regard, I was encouraged when the House of Representatives
passed H.R. 203, the ``National Small Business Regulatory
Assistance of 2000,'' on October 2, 2001. The bill was
subsequently referred to the Committee.
The practice of providing regulatory compliance assistance
for small businesses is not a new one before the Committee. In
1998, the Committee approved legislation on this subject, which
subsequently passed the full Senate but was not taken up by the
House of Representatives. Specifically, in April 1998, Senator
Conrad Burns introduced S. 1957, the ``Small Business
Regulatory Assistance Act of 1998.'' This bill was designed to
establish a system of confidential voluntary compliance
assistance for small businesses. Senator Burns' bill would have
this program delivered by the SBDCs. After introduction of S.
1957, the Committee conducted a hearing entitled
``Environmental Compliance Tools for Small Business'' (Senate
Hearing 105-663).
Subsequently, on September 15, 1998, the Committee
conducted a mark-up of S. 1957 and other pending legislation.
As a substitute to S. 1957, the Committee approved an amendment
offered by Senator Burns to H.R. 3412, the ``Year 2000
Readiness and Small Business Programs Restructuring and Reform
Act of 1998.'' The purpose of Senator Burns' amendment was to
establish the Advisory Committee on Small Business
Environmental Assistance Programs. The Amendment would have
also established a pilot program to provide assistance to small
businesses to improve their compliance with environmental laws
and regulations. H.R. 3412, as amended, passed the Senate
unanimously on September 30, 1998; however, the House of
Representatives failed to act on the bill prior to adjournment
later that year.
On October 3, 2001, the House-passed H.R. 203 was referred
to the Committee. On April 24, 2002, the Committee held a
hearing highlighting the Fifth Anniversary of the enactment of
the Small Business Regulatory Enforcement Fairness Act, Public
Law 104-121 (Red Tape Reduction Act). The Red Tape Reduction
Act is legislation I introduced in 1995 to protect small
businesses from excessive Federal regulations. During the
course of the April 2002 hearing, we heard testimony on the
need for regulatory compliance assistance for small businesses.
Later, on July 24, 2002, Senator Kerry chaired a mark-up of
several bills pending before the Committee, including S. 2483.
S. 2483 is substantially similar to H.R. 203 and was introduced
by Senator Max Cleland on May 8, 2002, the month following the
Committee hearing on the Red Tape Reduction Act.
At the Committee mark-up, Senator Kerry agreed to schedule
promptly a Committee Roundtable at which time legislation on
small business regulatory compliance assistance could be
discussed in detail. At the same time, the Committee agreed to
report out S. 2483 to the Senate, but it was agreed and
understood that the record of the Roundtable would likely
result in changes being offered to the bill on the Senate
floor.
Statements and testimony on behalf of H.R. 203 and S. 2483
in many instances highlighted the importance of establishing
partnerships comprised of SBDCs and Federal, State and local
compliance assistance programs. The statements focused on the
need to provide assistance to small businesses to comply with
Federal and State regulations that confront them daily.
Establishing partnerships is a notable goal that will
likely be of significant assistance to our Nation's small
businesses and their employees. However, the bills pending
before the Committee during the July 24, 2002 mark-up, while
mentioning partnerships, neither addressed how the partnerships
would be formed nor what would be expected of such
partnerships.
At the same time, the legislation focused on regulatory
compliance assistance to small businesses confronted by
environmental rules and health and safety rules. The bills
appeared to set the SBDCs apart from the ongoing compliance
assistance programs being carried out by the Environmental
Protection Administration (EPA) and the Department of Labor's
Occupational Safety and Health Administration (OSHA). After
reviewing the ongoing programs at the EPA and OSHA, it became
apparent that a better approach would be to create a pilot
program. The pilot program would unite the SBDCs with the key
compliance assistance providers in each State to form
partnerships mandating that each entity would work with one
another to the advantage of small businesses.
As discussed at the Committee Roundtable on August 1, 2002,
the EPA already provides regulatory compliance assistance
through its Small Business Ombudsman, which has one-stop small
business assistance between businesses and EPA offices.
Further, the Section 507 Small Business Assistance Program
(SBAP) provides technical assistance to small businesses in all
50 States through state-operated programs. In addition, the EPA
Office of Compliance Assistance provides Internet-delivered
virtual compliance assistance centers to a variety of business
sectors, such as printing and local government.
The Office of the Administrator at the EPA also provides
opportunities for small businesses to participate in the
regulatory process. Since enactment of the Red Tape Reduction
Act in 1997, small businesses have been able to weigh in on 23
different rule makings and in the development of six compliance
guides.
Significantly, in December 2001, OSHA and the Association
of Small Business Development Centers (ASBDC) entered into a
partnership with the Department of Labor's Office of Small
Business Programs (OSBP) to help small businesses improve their
safety and health performance. The OSHA-ASBDC Partnership
Agreement established a comprehensive effort to improve the
safety and health performance of small businesses that receive
outreach and training services. Under the agreement, the
partners will:
(1) identify interested small businesses
that wish to learn more about safety and health, need
assistance with program development, or
(2) be recognized through OSHA's Voluntary
Protection Program (VPP) or the Safety and Health
Achievement Recognition Program (SHARP), which is
designed for small businesses that undergo free
comprehensive safety and health consultation.
While the Federal attention in these areas might rest
primarily on two Federal agencies, there are an array of
regional and state entities that could be involved in this
effort. The legislation before the Committee neither defined
nor explained the relationship between the SBDCs and those
entities that deliver regulatory compliance assistance. In
order for the SBA to select participating SBDCs and to approve
up to $5 million in grants to SBDCs each year, the legislation
must establish parameters and goals for these partnerships.
In conclusion, nothing said at the Roundtable deterred my
interest in and support for providing regulatory compliance
assistance to small businesses. I remain convinced the SBDCs in
our fifty states can bring very valuable help to the process.
Therefore, when S. 2483 comes before the Senate for debate, it
is my intention to offer an Amendment in the Nature of a
Substitute that will create a new ``Partnership Statewide
Plan'' that will establish clearly the partnership between the
SBDCs and the Federal and State providers of compliance
assistance. It is not my intention for the Substitute Amendment
to replace H.R. 203 and S. 2483. Rather, I see the Substitute
Amendment as taking the role of the SBDCs and weaving it into
an effective partnership that takes advantage of the strengths
of the SBDC program in combination with existing compliance
assistance programs designed to help small businesses.
Christopher S. Bond.