[House Report 115-938]
[From the U.S. Government Publishing Office]


115th Congress   }                                      {       Report
                        HOUSE OF REPRESENTATIVES
 2d Session      }                                      {      115-938

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



 
            SMALL BUSINESS ADVOCACY IMPROVEMENTS ACT OF 2018

                                _______
                                

 September 12, 2018.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

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

                              R E P O R T

                        [To accompany H.R. 6316]

    The Committee on Small Business, to whom was referred the 
bill (H.R. 6316) to clarify the primary functions and duties of 
the Office of Advocacy of the Small Business Administration, 
and for other purposes, having considered the same, report 
favorably thereon without amendment and recommend that the bill 
do pass.

                                CONTENTS

                                                                   Page
   I. Purpose and Bill Summary........................................1
  II. Need for Legislation............................................2
 III. Hearings........................................................2
  IV. Committee Consideration.........................................2
   V. Committee Votes.................................................2
  VI. Section-by-Section of H.R. 6316.................................3
 VII. Congressional Budget Office Cost Estimate.......................3
VIII. Unfunded Mandates...............................................3
  IX. New Budget Authority, Entitlement Authority, and Tax Expenditure3
   X. Oversight Findings..............................................3
  XI. Statement of Constitutional Authority...........................4
 XII. Congressional Accountability Act................................4
XIII. Federal Advisory Committee Act Statement........................4
 XIV. Statement of No Earmarks........................................4
  XV. Statement of Duplication of Federal Programs....................4
 XVI. Disclosure of Directed Rule Makings.............................4
XVII. Performance Goals and Objectives................................4
XVIII.Changes in Existing Law, Made by the Bill, As Reported..........4


                      I. Purpose and Bill Summary

    The purpose of H.R. 6316, the ``Small Business Advocacy 
Improvements Act of 2018,'' is to explicitly permit the Office 
of Advocacy of the United States Small Business Administration 
to examine the role of small business in international 
economies and to represent small business views and interests 
before foreign governments and international entities. The bill 
also corrects two spelling errors in Section 202 of Public Law 
94-305.

                        II. Need for Legislation

    H.R. 6316 was introduced by Rep. James Comer (R-KY) and 
Rep. Alma Adams (D-NC) on July 6, 2018. Public Law 94-305 
established the Office of Advocacy and its statutory authority. 
Section 202 of the law sets forth the primary functions of the 
Office of Advocacy relating to the study of small business. 
Currently, it directs the Office of Advocacy to ``examine the 
role of small business in the American economy and the 
contribution which small business can make in improving 
competition.'' It is silent regarding the Office of Advocacy's 
ability to study the role of small business in international 
economies, which is an important avenue for small businesses as 
more businesses seek opportunities to export and to expand 
overseas. This bill would clarify that the Office of Advocacy 
should include international economies as part of its research 
functions.
    Similarly, Section 203 of the law sets forth the duties of 
the Office of Advocacy that shall be performed on a continuing 
basis. One of these duties is to ``represent the views and 
interests of small businesses before other Federal agencies 
whose policies and activities may affect small business.'' It 
is silent regarding the Office of Advocacy's authority to 
represent small business views and interests before foreign 
governments and international entities. It is important for 
small businesses to have their views and interests on 
regulatory and trade initiatives represented in the 
international space. This bill adds a new paragraph to Section 
203 of the law to clarify the Office of Advocacy's ability to 
represent small business views and interests before foreign 
governments and other international entities for the purpose of 
contributing to regulatory and trade initiatives.
    Finally, this bill corrects two spelling errors in Section 
202 of the law. The first corrects paragraph (9) of Section 
202, which should be ``compete'' instead of ``complete.'' The 
second corrects paragraph (12) of Section 202, which should be 
``service-disabled'' instead of ``serviced-disabled.''

                             III. Hearings

    In the 115th Congress, the Committee did not hold any 
hearings examining the issues covered in H.R. 6316.

                      IV. Committee Consideration

    The Committee on Small Business met in open session, with a 
quorum being present, on July 18, 2018 and ordered H.R. 6316 
favorably reported to the House. During the markup, no 
amendments were offered.

                           V. Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the recorded 
votes on the motion to report legislation and amendments 
thereto. The Committee voted by voice vote to favorably report 
H.R. 6316 to the House at 12:04 p.m.

                  VI. Section-by-Section of H.R. 6316


Sec. 1. Short title

    This section designates the bill as the ``Small Business 
Advocacy Improvements Act of 2018.''

Sec. 2. Amendment to primary functions and duties of the Office of 
        Advocacy of the small business administration

    This section permits the Office of Advocacy to examine the 
role of small business in international economies, in addition 
to American economies, as part of its primary functions. The 
section also corrects two spelling errors in Section 202 of 
Public Law 94-305. In addition, this section clarifies the 
Office of Advocacy's duties by explicitly permitting it to 
represent small business views and interests before foreign 
governments and international entities for the purpose of 
contributing to regulatory and trade initiatives which may 
affect small businesses.

             VII. Congressional Budget Office Cost Estimate

    At the time H.R. 6316 was reported to the House, the 
Congressional Budget Office had not provided a cost estimate.

                        VIII. Unfunded Mandates

    H.R. 6316 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act, Public 
Law 104-4, and would impose no costs on state, local, or tribal 
governments.

 IX. New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House, the Committee provides the following opinion and 
estimate with respect to new budget authority, entitlement 
authority, and tax expenditures. While the Committee has not 
received an estimate of new budget authority contained in the 
cost estimate prepared by the Director of the Congressional 
Budget Office pursuant to Sec. 402 of the Congressional Budget 
Act of 1974, the Committee does not believe that there will be 
any additional costs attributable to this legislation. H.R. 
6316 does not direct new spending, but instead reallocates 
funding independently authorized and appropriated.

                         X. Oversight Findings

    In accordance with clause 2(b)(1) of rule X of the Rules of 
the House, the oversight findings and recommendations of the 
Committee on Small Business with respect to the subject matter 
contained in H.R. 6316 are incorporated into the descriptive 
portions of this report.

               XI. Statement of Constitutional Authority

    Pursuant to clause 7 of rule XII of the Rules of the House, 
the Committee finds the authority for this legislation in Art. 
I, Sec. 1, cl.1 and Art. I, Sec. 8, cl.18.

                 XII. Congressional Accountability Act

    H.R. 6316 does not relate to the terms and conditions of 
employment or access to public services or accommodations 
within the meaning of Sec. 102(b)(3) of Public Law 104-1.

             XIII. Federal Advisory Committee Act Statement

    H.R. 6316 does not establish or authorize the establishment 
of any new advisory committees as that term is defined in the 
Federal Advisory Committee Act, 5 U.S.C. App.2.

                     XIV. Statement of No Earmarks

    Pursuant to clause 9 of rule XXI, H.R. 6316 does not 
contain any congressional earmarks, limited tax benefits, or 
limited tariff benefits as defined in subsections (d), (e), or 
(f) of clause 9 of rule XXI of the Rules of the House.

            XV. Statement of Duplication of Federal Programs

    Pursuant to clause 3(c) of the rule XIII of the Rules of 
the House, no provision of H.R. 6316 establishes or 
reauthorizes a program of the federal government known to be 
duplicative of another federal program, a program that was 
included in any report from the United States Government 
Accountability Office pursuant to Sec. 21 of Public Law 111-
139, or a program related to a program identified in the most 
recent catalog of federal domestic assistance.

                XVI. Disclosure of Directed Rule Makings

    Pursuant to clause 3(c) of rule XIII of the Rules of the 
House, H.R. 6316 does not direct any rulemaking.

                 XVII. Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House, the Committee establishes the following performance-
related goals and objectives for this legislation:
          H.R. 6316 includes a number of provisions designed to 
        improve the opportunities for small business concerns 
        in international economies to be studied and to improve 
        the representation of small business views and 
        interests on regulatory and trade initiatives.

                     XVIII. Changes in Existing Law


         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, changes in existing law made by the bill, as 
reported, as shown as follows (existing law proposed to be 
omitted is enclosed in black brackets, new matter is printed in 
italic, and existing law in which no change is proposed is 
shown in roman):

         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, and existing law in which no 
change is proposed is shown in roman):

                           PUBLIC LAW 94-305

 AN ACT To amend the Small Business Act and Small Business Investment 
Act of 1958 to provide additional assistance under such Acts, to create 
a pollution control financing program for small business, and for other 
                               purposes.



           *       *       *       *       *       *       *
TITLE II--STUDY OF SMALL BUSINESS

           *       *       *       *       *       *       *


                                 study

  Sec. 202. The primary functions of the Office of Advocacy 
shall be to--
          (1) examine the role of small business in the 
        American economy and the international economy and the 
        contribution which small business can make in improving 
        competition, encouraging economic and social mobility 
        for all citizens, restraining inflation, spurring 
        production, expanding employment opportunities, 
        increasing productivity, promoting exports, stimulating 
        innovation and entrepreneurship, and providing an 
        avenue through which new and untested products and 
        services can be brought to the marketplace;
          (2) assess the effectiveness of existing Federal 
        subsidy and assistance programs for small business and 
        the desirability of reducing the emphasis on such 
        existing programs and increasing the emphasis on 
        general assistance programs designed to benefit all 
        small businesses;
          (3) measure the direct costs and other effects of 
        government regulation on small business; and make 
        legislative and non-legislative proposals for 
        eliminating excessive or unnecessary regulations of 
        small businesess;
          (4) determine the impact of the tax structure on 
        small businesses and make legislative and other 
        proposals for altering the tax structure to enable all 
        small businesses to realize their potential for 
        contributing to the improvement of the Nation's 
        economic well-being;
          (5) study the ability of financial markets and 
        institutions to meet small business credit needs and 
        determine the impact of government demands for credit 
        on small businesses;
          (6) determine financial resource availability and to 
        recommend methods for delivery of financial assistance 
        to minority enterprises, including methods for securing 
        equity capital, for generating markets for goods and 
        services, for providing effective business education, 
        more effective management and technical assistance, and 
        training, and for assistance in complying with Federal, 
        State, and local law;
          (7) evaluate the efforts of Federal agencies, 
        business and industry to assist minority enterprises;
          (8) make such other recommendations as may be 
        appropriate to assist the development and strengthening 
        of minority and other small business enterprises;
          (9) recommend specific measures for creating an 
        environment in which all businesses will have the 
        opportunity to [complete] compete effectively and 
        expand to their full potential, and to ascertain the 
        common reasons, if any, for small business successes 
        and failures;
          (10) determine the desirability of developing a set 
        of rational, objective criteria to be used to define 
        small business, and to develop such criteria, if 
        appropriate.
          (11) advise, cooperate with, and consult with, the 
        Chairman of the Administrative Conference of the United 
        States with respect to section 504(e) of title 5 of the 
        United States Code; and
          (12) evaluate the efforts of each department and 
        agency of the United States, and of private industry, 
        to assist small business concerns owned and controlled 
        by veterans, as defined in section 3(q) of the Small 
        Business Act (15 U.S.C. 632(q)), and small business 
        concerns owned and controlled by [serviced-disabled] 
        service-disabled veterans, as defined in such section 
        3(q), and to provide statistical information on the 
        utilization of such programs by such small business 
        concerns, and to make appropriate recommendations to 
        the Administrator of the Small Business Administration 
        and to the Congress in order to promote the 
        establishment and growth of those small business 
        concerns.

                                 duties

  Sec. 203.
  (a) In General.--The Office of Advocacy shall also perform 
the following duties on a continuing basis:
          (1) serve as a focal point for the receipt of 
        complaints, criticisms, and suggestions concerning the 
        policies and activities of the Administration and any 
        other Federal agency which affects small businesses;
          (2) counsel small businesses on how to resolve 
        questions and problems concerning the relationship of 
        the small business to the Federal Government;
          (3) develop proposals for changes in the policies and 
        activities of any agency of the Federal Government 
        which will better fulfill the purposes of the Small 
        Business Act and communicate such proposals to the 
        appropriate Federal agencies;
          (4) represent the views and interests of small 
        businesses before other Federal agencies whose policies 
        and activities may affect small business;
          (5) enlist the cooperation and assistance of public 
        and private agencies, businesses, and other 
        organizations in disseminating information about the 
        programs and services provided by the Federal 
        Government which are of benefit to small businesses, 
        and information on how small businesses can participate 
        in or make use of such programs and services; [and]
          (6) carry out the responsibilities of the Office of 
        Advocacy under chapter 6 of title 5, United States 
        Code[.]; and
          (7) represent the views and interests of small 
        businesses before foreign governments and international 
        entities for the purpose of contributing to regulatory 
        and trade initiatives which may affect small 
        businesses.
  (b) Outreach and Input From Small Businesses on Trade 
Promotion Authority.--
          (1) Definitions.--In this subsection--
                  (A) the term ``agency'' has the meaning given 
                the term in section 551 of title 5, United 
                States Code;
                  (B) the term ``Chief Counsel for Advocacy'' 
                means the Chief Counsel for Advocacy of the 
                Small Business Administration;
                  (C) the term ``covered trade agreement'' 
                means a trade agreement being negotiated 
                pursuant to section 103(b) of the Bipartisan 
                Congressional Trade Priorities and 
                Accountability Act of 2015 (Public Law 114-26; 
                19 U.S.C. 4202(b)); and
                  (D) the term ``Working Group'' means the 
                Interagency Working Group convened under 
                paragraph (2)(A).
          (2) Working group.--
                  (A) In general.--Not later than 30 days after 
                the date on which the President submits the 
                notification required under section 105(a) of 
                the Bipartisan Congressional Trade Priorities 
                and Accountability Act of 2015 (Public Law 114-
                26; 19 U.S.C. 4204(a)), the Chief Counsel for 
                Advocacy shall convene an Interagency Working 
                Group, which shall consist of an employee from 
                each of the following agencies, as selected by 
                the head of the agency or an official delegated 
                by the head of the agency:
                          (i) The Office of the United States 
                        Trade Representative.
                          (ii) The Department of Commerce.
                          (iii) The Department of Agriculture.
                          (iv) Any other agency that the Chief 
                        Counsel for Advocacy, in consultation 
                        with the United States Trade 
                        Representative, determines to be 
                        relevant with respect to the subject of 
                        the covered trade agreement.
                  (B) Views of small businesses.--Not later 
                than 30 days after the date on which the Chief 
                Counsel for Advocacy convenes the Working Group 
                under subparagraph (A), the Chief Counsel for 
                Advocacy shall identify a diverse group of 
                small businesses, representatives of small 
                businesses, or a combination thereof, to 
                provide to the Working Group the views of small 
                businesses in the manufacturing, services, and 
                agriculture industries on the potential 
                economic effects of the covered trade 
                agreement.
          (3) Report.--
                  (A) In general.--Not later than 180 days 
                after the date on which the Chief Counsel for 
                Advocacy convenes the Working Group under 
                paragraph (2)(A), the Chief Counsel for 
                Advocacy shall submit to the Committee on Small 
                Business and Entrepreneurship and the Committee 
                on Finance of the Senate and the Committee on 
                Small Business and the Committee on Ways and 
                Means of the House of Representatives a report 
                on the economic impacts of the covered trade 
                agreement on small businesses, which shall--
                          (i) identify the most important 
                        priorities, opportunities, and 
                        challenges to various industries from 
                        the covered trade agreement;
                          (ii) assess the impact for new small 
                        businesses to start exporting, or 
                        increase their exports, to markets in 
                        countries that are parties to the 
                        covered trade agreement;
                          (iii) analyze the competitive 
                        position of industries likely to be 
                        significantly affected by the covered 
                        trade agreement;
                          (iv) identify--
                                  (I) any State-owned 
                                enterprises in each country 
                                participating in negotiations 
                                for the covered trade agreement 
                                that could pose a threat to 
                                small businesses; and
                                  (II) any steps to take to 
                                create a level playing field 
                                for those small businesses;
                          (v) identify any rule of an agency 
                        that should be modified to become 
                        compliant with the covered trade 
                        agreement; and
                          (vi) include an overview of the 
                        methodology used to develop the report, 
                        including the number of small business 
                        participants by industry, how those 
                        small businesses were selected, and any 
                        other factors that the Chief Counsel 
                        for Advocacy may determine appropriate.
                  (B) Delayed submission.--To ensure that 
                negotiations for the covered trade agreement 
                are not disrupted, the President may require 
                that the Chief Counsel for Advocacy delay 
                submission of the report under subparagraph (A) 
                until after the negotiations for the covered 
                trade agreement are concluded, provided that 
                the delay allows the Chief Counsel for Advocacy 
                to submit the report to Congress not later than 
                45 days before the Senate or the House of 
                Representatives acts to approve or disapprove 
                the covered trade agreement.
                  (C) Avoidance of duplication.--The Chief 
                Counsel for Advocacy shall, to the extent 
                practicable, coordinate the submission of the 
                report under this paragraph with the United 
                States International Trade Commission, the 
                United States Trade Representative, other 
                agencies, and trade advisory committees to 
                avoid unnecessary duplication of reporting 
                requirements.

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