[House Report 116-113]
[From the U.S. Government Publishing Office]
116th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 116-113
======================================================================
TO AMEND THE SMALL BUSINESS ACT TO REQUIRE THE SMALL BUSINESS AND
AGRICULTURE REGULATORY ENFORCEMENT OMBUDSMAN TO CREATE A CENTRALIZED
WEBSITE FOR COMPLIANCE GUIDES, AND FOR OTHER PURPOSES
_______
June 13, 2019.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Ms. Velazquez, from the Committee on Small Business, submitted the
following
R E P O R T
[To accompany H.R. 2142]
[Including cost estimate of the Congressional Budget Office]
The Committee on Small Business, to whom was referred the
bill (H.R. 2142) to amend the Small Business Act to require the
Small Business and Agriculture Regulatory Enforcement Ombudsman
to create a centralized website for compliance guides, 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........................................2
II. Background and Need for Legislation.............................2
III. Hearings........................................................3
IV. Committee Consideration.........................................3
V. Committee Votes.................................................3
VI. Section-by-Section Analysis for H.R. 2142.......................5
VII. Congressional Budget Office Cost Estimate.......................5
VIII. Unfunded Mandates...............................................6
IX. New Budget Authority, Entitlement Authority, and Tax Expenditure6
X. Oversight Findings..............................................6
XI. Statement of Constitutional Authority...........................6
XII. Congressional Accountability Act................................6
XIII. Federal Advisory Committee Act Statement........................6
XIV. Statement of No Earmarks........................................6
XV. Statement of Duplication of Federal Programs....................7
XVI. Disclosure of Directed Rule Makings.............................7
XVII. Performance Goals and Objectives................................7
XVIII.Changes in Existing Law, Made by the Bill, As Reported..........7
I. Purpose and Bill Summary
The purpose of H.R. 2142 is to require the Office of the
National Ombudsman at the Small Business Administration (SBA)
to create a centralized website with hyperlinks to small entity
compliance guides and the contact person at agencies who could
provide small businesses with assistance. The legislation would
also require the Office of the National Ombudsman to report on
federal agencies' compliance with the Section 212 requirements
of the Small Business Regulatory Enforcement Fairness Act
(SBREFA) in its annual report to Congress.
II. Background and Need for Legislation
H.R. 2142 was introduced by Representative Antonio Delgado
(D-NY) and Representative John Joyce (R-PA) on April 9, 2018.
Section 212 of the Small Business Regulatory Enforcement
Fairness Act (SBREFA) requires federal agencies to publish a
``small entity compliance guide'' for every rule that requires
a regulatory flexibility analysis (RFA). The guide must be
posted the day the final rule is published or shortly
thereafter, but no later than the day the rule becomes
effective. Agencies are also required to publish the guides on
their websites, distribute the guides to small entities
affected by the rules, and report annually to Congress.
A. BACKGROUND ON SBA'S OFFICE OF THE NATIONAL OMBUDSMAN
The SBA's Office of the National Ombudsman was created in
1996 to help small businesses overcome excessive or unfair
regulatory enforcement actions by federal agencies, such as
repetitive audits, investigations, or excessive fines. The
Ombudsman works directly with federal agencies to ensure that
actions taken against small businesses are fair and not
excessive. In Fiscal Year 2017, the Office of the National
Ombudsman advocated on behalf of 460 small businesses,
conducted more than 130 outreach events across the country to
raise the visibility of the Office, and strengthened
relationships with 28 interagency partners.
B. THE NEED FOR THE CHANGES OUTLINED IN THE BILL
Section 212 of the Small Business Regulatory Enforcement
Fairness Act (SBREFA) requires federal agencies to publish a
``small entity compliance guide'' for every rule that requires
a regulatory flexibility analysis (RFA). The guide must be
posted the day the final rule is published or shortly
thereafter, but no later than the day the rule becomes
effective. Agencies are also required to publish the guides on
their websites, distribute the guides to small entities
affected by the rules, and report annually to Congress.
Small businesses rarely have the resources to navigate
multiple agency websites to understand their responsibilities
under new laws. H.R. 2142, would make it easier for small
businesses by requiring the Office of the National Ombudsman at
the Small Business Administration (SBA) to create a centralized
website, which would provide a ``one stop shop'' for small
entities compliance guides. Specifically, the legislation would
require the Office of the National Ombudsman at the Small
Business Administration (SBA) to create a centralized website
with hyperlinks to small entity compliance guides and the
contact person at agencies who could provide small businesses
with assistance. The legislation would also require the
Ombudsman to report on federal agencies' compliance with the
section 212 requirements in its annual report to Congress.
In addition, the bill would provide transparency and ensure
federal agencies are complying with the SBREFA requirements.
Federal agencies' compliance with the requirements has been
varied. For example, the Federal Trade Commission (FTC) has a
longstanding small business education program and regularly
submits reports to the Small Business Committee each year. In
the 2018 annual report, the FTC reported that the Commission
did not issue any rules that were subject to Section 212 of
SBREFA for the reporting period. However, it made compliance
materials available for several rulemakings even though they
were not required to do so by the Act. Conversely, the Surface
Transportation Board reported in its 2018 annual report that
the Board failed to issue a timely compliance guide for a
particular rule, but promptly remedied the omission once it was
realized. The legislation would require the Office of the
National Ombudsman to report on federal agencies' compliance
with the SBREFA requirements in its annual report to Congress.
III. Hearings
While multiple hearings have been held by the Committee
over the past several years exploring regulatory compliance
burdens specific to the small business community, no specific
hearings in the 116th Congress have been held to explore
reforms to SBA's Office of the National Ombudsman.
IV. Committee Consideration
The Committee on Small Business met in open session, with a
quorum being present, on May 1, 2019 and ordered H.R. 2142
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. 2142 to the House at 11:58 A.M.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
VI. Section-by-Section of H.R. 2142
Section 1: Centralized compliance guides
This section amends section 30 of the Small Business Act by
adding a new subsection requiring the Office of the National
Ombudsman at the Small Business Administration (SBA) to create
a centralized website that would: 1) provide hyperlinks to
small entity compliance guides described under Section 212 of
the Small Business Regulatory Enforcement Fairness Act of 1996;
and 2) provide the contact information for the person at the
agency who could provide small entities with assistance with
respect to the rules that are the subject of such guide.
This section would also require the Ombudsman to report on
federal agencies' compliance with the Section 212 requirements
of the Small Business Regulatory Enforcement Fairness Act of
1996 in its annual report to Congress.
VII. Congressional Budget Office Cost Estimate
The Congressional Budget Office pursuant to 402 of the
Congressional Budget Act of 1974, submitted a cost estimate for
H.R. 2142 that stated enacting the legislation would not
increase net direct spending or on budget deficits in any of
the four consecutive 10-year periods beginning in 2030.
U.S. Congress,
Congressional Budget Office,
Washington, DC, June 4, 2019.
Hon. Nydia M. Velazquez,
Chairwoman, Committee on Small Business,
House of Representatives, Washington, DC.
Dear Madam Chairwoman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 2142, a bill to
amend the Small Business Act to require the Small Business and
Agriculture Regulatory Enforcement Ombudsman to create a
centralized website for compliance guides, and for other
purposes.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is David Hughes.
Sincerely,
Phillip Swagel,
Director.
Enclosure.
H.R. 2142 would require the Small Business Administration's
(SBA's) Office of the National Ombudsman to maintain a public
website with links to small-entity compliance guides issued by
federal agencies and those agencies' contact information.
Federal agencies create small-entity compliance guides to
assist small businesses in complying with federal rules and
regulations. Under the bill, the National Ombudsman would
assess the extent to which federal agencies are publishing
those guides.
CBO estimates that implementing H.R. 2142 would have an
insignificant cost. The Small Business Paperwork Relief Act of
2002 already requires the Office of Management and Budget, in
consultation with the SBA, to post small-entity compliance
guides online each year. The agency's compliance contacts are
posted as well. Any additional spending would be subject to the
availability of appropriated funds.
The CBO staff contact for this estimate is David Hughes.
The estimate was reviewed by H. Samuel Papenfuss, Deputy
Assistant Director for Budget Analysis.
VIII. Unfunded Mandates
H.R. 2142 contains no intergovernmental or private sector
mandates as defined in the Unfunded Mandates Reform Act, Public
Law No. 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.
2142 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. 2142 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
of Representatives, the Committee finds the authority for this
legislation in Art. I, Sec. 8, cl. 1 of the Constitution of the
United States.
XII. Congressional Accountability Act
H.R. 2142 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 No. 104-1.
XIII. Federal Advisory Committee Act Statement
H.R. 2142 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. 2142 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 of rule XIII of the Rules of the
House, no provision of H.R. 2142 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 Pub. L. No. 111-139, or a program
related to a program identified in the most recent catalog of
federal domestic assistance.
XVI. Disclosure of Directed Rulemakings
Pursuant to clause 3 of rule XIII of the Rules of the
House, H.R. 2142 does not direct any rulemaking.
XVII. Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XII of the Rules of the
House, the Committee establishes the following performance-
related goals and objectives for this legislation:
H.R. 2142 includes a couples of provisions designed to make
it easier for small businesses to understand their
responsibilities under the laws.
XVIII. Changes in Existing Law Made by the Bill, as Reported
In compliance with clause (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 (new matter is
printed in italic and existing law in which no change is
proposed is shown in roman):
SMALL BUSINESS ACT
* * * * * * *
SEC. 30. OVERSIGHT OF REGULATORY ENFORCEMENT.
(a) Definitions.--For purposes of this section, the term--
(1) ``Board'' means a Regional Small Business
Regulatory Fairness Board established under subsection
(c); and
(2) ``Ombudsman'' means the Small Business and
Agriculture Regulatory Enforcement Ombudsman designated
under subsection (b).
(b) SBA Enforcement Ombudsman.--
(1) Not later than 180 days after the date of
enactment of this section, the Administrator shall
designate a Small Business and Agriculture Regulatory
Enforcement Ombudsman, who shall report directly to the
Administrator, utilizing personnel of the Small
Business Administration to the extent practicable.
Other agencies shall assist the Ombudsman and take
actions as necessary to ensure compliance with the
requirements of this section. Nothing in this section
is intended to replace or diminish the activities of
any Ombudsman or similar office in any other agency.
(2) The Ombudsman shall--
(A) work with each agency with regulatory
authority over small businesses to ensure that
small business concerns that receive or are
subject to an audit, on-site inspection,
compliance assistance effort, or other
enforcement related communication or contact by
agency personnel are provided with a means to
comment on the enforcement activity conducted
by such personnel;
(B) establish means to receive comments from
small business concerns regarding actions by
agency employees conducting compliance or
enforcement activities with respect to the
small business concern, means to refer comments
to the Inspector General of the affected agency
in the appropriate circumstances, and otherwise
seek to maintain the identity of the person and
small business concern making such comments on
a confidential basis to the same extent as
employee identities are protected under section
7 of the Inspector General Act of 1978 (5
U.S.C. App.);
(C) based on substantiated comments received
from small business concerns and the Boards,
annually report to Congress and affected
agencies evaluating the enforcement activities
of agency personnel including a rating of the
responsiveness to small business of the various
regional and program offices of each agency;
(D) coordinate and report annually on the
activities, findings and recommendations of the
Boards to the Administrator and to the heads of
affected agencies; and
(E) provide the affected agency with an
opportunity to comment on draft reports
prepared under subparagraph (C), and include a
section of the final report in which the
affected agency may make such comments as are
not addressed by the Ombudsman in revisions to
the draft.
(c) Regional Small Business Regulatory Fairness Boards.--
(1) Not later than 180 days after the date of
enactment of this section, the Administrator shall
establish a Small Business Regulatory Fairness Board in
each regional office of the Small Business
Administration.
(2) Each Board established under paragraph (1)
shall--
(A) meet at least annually to advise the
Ombudsman on matters of concern to small
businesses relating to the enforcement
activities of agencies;
(B) report to the Ombudsman on substantiated
instances of excessive enforcement actions of
agencies against small business concerns
including any findings or recommendations of
the Board as to agency enforcement policy or
practice; and
(C) prior to publication, provide comment on
the annual report of the Ombudsman prepared
under subsection (b).
(3) Each Board shall consist of five members, who are
owners, operators, or officers of small business
concerns, appointed by the Administrator, after
receiving the recommendations of the chair and ranking
minority member of the Committees on Small Business of
the House of Representatives and the Senate. Not more
than three of the Board members shall be of the same
political party. No member shall be an officer or
employee of the Federal Government, in either the
executive branch or the Congress.
(4) Members of the Board shall serve at the pleasure
of the Administrator for terms of three years or less.
(5) The Administrator shall select a chair from among
the members of the Board who shall serve at the
pleasure of the Administrator for not more than 1 year
as chair.
(6) A majority of the members of the Board shall
constitute a quorum for the conduct of business, but a
lesser number may hold hearings.
(d) Powers of the Boards.--
(1) The Board may hold such hearings and collect such
information as appropriate for carrying out this
section.
(2) The Board may use the United States mails in the
same manner and under the same conditions as other
departments and agencies of the Federal Government.
(3) The Board may accept donations of services
necessary to conduct its business, provided that the
donations and their sources are disclosed by the Board.
(4) Members of the Board shall serve without
compensation, provided that, members of the Board shall
be allowed travel expenses, including per diem in lieu
of subsistence, at rates authorized for employees of
agencies under subchapter I of chapter 57 of title 5,
United States Code, while away from their homes or
regular places of business in the performance of
services for the Board.
(e) Centralized Website.--Not later than 6 months after the
date of the enactment of this subsection, the Ombudsman shall
maintain a publicly available website that includes--
(1) hyperlinks to small entity compliance guides
described under section 212(a)(1) of the Small Business
Regulatory Enforcement Fairness Act of 1996; and
(2) with respect to each such small entity compliance
guide, the contact information for an individual who
can offer assistance to small entities with respect to
the rules that are the subject of such guide.
(f) Report on Agency Compliance.--The Ombudsman shall include
in the annual report required under subsection (b)(2)(C) an
assessment of agency compliance with the requirements of
section 212 of the Small Business Regulatory Enforcement
Fairness Act of 1996 for the year covered by such annual
report.
* * * * * * *
[all]