[House Report 117-255]
[From the U.S. Government Publishing Office]


117th Congress    }                                    {       Report
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                    {      117-255

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



 
        ONE STOP SHOP FOR SMALL BUSINESS COMPLIANCE ACT OF 2021

                                _______
                                

 March 7, 2022.--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. 4877]

    The Committee on Small Business, to whom was referred the 
bill (H.R. 4877) 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, reports favorably 
thereon without amendment and recommends that the bill do pass.

                                CONTENTS

                                                                   Page
   I. Purpose and Bill Summary........................................ 1
  II. Background and Need for Legislation............................. 2
 III. Hearings........................................................ 3
  IV. Committee Consideration......................................... 3
   V. Committee Votes................................................. 3
  VI. Section-by-Section for H.R. 4877................................ 3
 VII. Congressional Budget Office Cost Estimate....................... 4
VIII. New Budget Authority, Entitlement Authority, and Tax Expenditure 4
  IX. Committee Oversight Findings and Recommendations................ 4
   X. Statement of General Performance Goals and Objectives........... 4
  XI. Duplication of Federal Programs................................. 4
 XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
      Benefits........................................................ 4
XIII. Federal Mandates Statement...................................... 4
 XIV. Federal Advisory Committee Statement............................ 5
  XI. Applicability to Legislative Branch............................. 5
 XVI. Constitutional Authority Statement.............................. 5
XVII. Changes in Existing Law Made by the Bill, as Reported........... 5

                      I. Purpose and Bill Summary

    The purpose of H.R. 4877, the ``One Stop Shop for Small 
Business Compliance Act of 2021,'' is to require the Small 
Business Administration's (SBA) Office of the National 
Ombudsman (Ombudsman) to maintain a website with hyperlinks to 
the small business compliance guides of each federal agency, as 
well as the relevant points of contact for the guides. In 
addition, the bill would require the Ombudsman to include an 
assessment of federal agency compliance with Section 212 of the 
Small Business Regulatory Enforcement Fairness Act of 1996 
(SBREFA)\1\ in their annual report.
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    \1\Pub. L. No. 104-121.
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                II. Background and Need for Legislation

    H.R. 4877 was introduced by Representatives Antonio Delgado 
(D-NY) and Beth Van Duyne (R-TX) on July 30, 2021. Section 212 
of 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.
    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 2020, the Office of the National 
Ombudsman advocated on behalf of 485 small businesses, 
conducted 41 outreach events across the country to raise the 
visibility of the Office.
    Section 212 of the 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. 4877, would make it easier for small 
businesses by requiring the SBA's Office of the National 
Ombudsman 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 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 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. This bill would require the 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 117th 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 February 3, 2022 and ordered H.R. 4877 
favorably reported to the House of Representatives. 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. 4877 to the House at 10:44 a.m.

                  VI. Section-by-Section for H.R. 4877


Section 1. Short title

    This Act may be cited as the ``One Stop Shop for Small 
Business Compliance Act of 2021''.

Section 2. Centralized Website for Compliance Guides

    This section amends Section 30 of the Small Business Act by 
adding two new subsections:
    Subsection (e)--Centralized Website. This subsection 
requires that, no later than 6 months after the date of 
enactment, the Ombudsman shall maintain a website that includes 
hyperlinks to the small business compliance guides as required 
by the Small Business Regulatory Enforcement Fairness Act of 
1996. The website must also include the contact information for 
employees that can offer small businesses assistance with each 
compliance guide.
    Subsection (f)--Report on Agency Compliance. This 
subsection requires the Ombudsman to include an assessment of 
agency compliance with Section 212 of the Small Business 
Regulatory Enforcement Fairness Act of 1996 in their annual 
reports.

             VII. Congressional Budget Office Cost Estimate

    The Committee has requested but not received a cost 
estimate from the Director of the Congressional Budget Office.

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

    Pursuant to clause 3(c)(2) of rule XIII of the Rules of the 
House of Representatives and section 308(a) of the 
Congressional Budget Act of 1974, 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 section 
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. 4877 does not direct new 
spending, but instead reallocates funding independently 
authorized and appropriated.

          IX. Committee Oversight Findings and Recommendations

    In accordance with clause 3(c)(1) of rule XIII and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the oversight findings and recommendations of the Committee on 
Small Business with respect to the subject matter contained in 
the H.R. 4877 are incorporated into the descriptive portions of 
this report.

        X. Statement of General Performance Goals and Objectives

    With respect to the requirements of clause 3(c)(4) of rule 
XIII of the Rules of the House of Representatives, the 
performance goals and objectives of H.R. 4877 is to make it 
easier for small businesses to comply with federal regulations.

                  XI. Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, no provision of H.R. 4877 is known to 
be duplicative of another Federal program, including any 
program that was included in a report to Congress pursuant to 
section 21 of Public Law 111-139 or the most recent Catalog of 
Federal Domestic Assistance.

 XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

    With respect to clause 9 of rule XXI of the Rules of the 
House of Representatives, the Committee finds that the bill 
does not contain any congressional earmarks, limited tax 
benefits, or limited tariff benefits as defined in clause 9(e), 
9(f), or 9(g) of rule XXI of the Rules of the House of 
Representatives.

                    XIII. Federal Mandates Statement

    An estimate of Federal mandates prepared by the Director of 
the Congressional Budget Office pursuant to section 423 of the 
Unfunded Mandates Reform Act was not made available to the 
Committee in time for the filing of this report. The Chairwoman 
of the Committee shall cause such estimate to be printed in the 
Congressional Record upon its receipt by the Committee.

               XIV. Federal Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                XV. Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

                XVI. Constitutional Authority Statement

    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.

      XVII. 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, 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 italics 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.

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