[House Report 117-256]
[From the U.S. Government Publishing Office]


117th Congress }                                          { Report
                        HOUSE OF REPRESENTATIVES
 2nd Session   }                                          { 117-256

======================================================================
 
            SMALL BUSINESS ADVOCACY IMPROVEMENTS ACT OF 2022

                                _______
                                

 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. 6454]

    The Committee on Small Business, to whom was referred the 
bill (H.R. 6454) 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, 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........................................................2
  IV. Committee Consideration.........................................2
   V. Committee Votes.................................................3
  VI. Section-by-Section for H.R. 6454................................3
 VII. Congressional Budget Cost Estimate..............................3
VIII.  New Budget Authority, Entitlement Authority, and Tax 
      Expenditures....................................................3
  IX. Committee Oversight Findings and Recommendations................3
   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............................4
  XV. Applicability to Legislative Branch.............................4
 XVI. Constitutional Authority Statement..............................4
XVII. Changes in Existing Law Made by the Bill, as Reported...........4

                      I. Purpose and Bill Summary

    The purpose of H.R. 6454, the ``Small Business Advocacy 
Improvements Act of 2022,'' is to make clear that the U.S. 
Small Business Administration's (SBA) Office of Advocacy has 
the authority to examine international economic data, and 
represent small business interests in international 
discussions, particularly in trade negotiations.

                II. Background and Need for Legislation

    H.R. 6454 was introduced by Ranking Member Blaine 
Luetkemeyer (R-MO) and Representative Troy Carter (D-LA) on 
January 20, 2022.
    Established in 1976, SBA's Office of Advocacy (Advocacy) is 
the independent voice for small businesses within the federal 
government. Advocacy is also charged with overseeing the 
Regulatory Flexibility Act (RFA)\1\ and is a source of small 
business statistics and research.\2\ Advocacy's creation was 
premised on the belief that small businesses need 
representation in the legislative, regulatory, and 
administrative processes of government that affect them and 
that good policy requires good information.\3\ Advocacy works 
to advance the views and concerns of small businesses before 
Congress, the White House, federal agencies, federal courts, 
and state policymakers.\4\
---------------------------------------------------------------------------
    \1\Pub. L. No. 96-354.
    \2\About, The Small Business Administration Office of Advocacy, 
https://advocacy.sba.gov/
about/.
    \3\Small Business Administration Office of Advocacy, Background 
Paper Office of Advocacy 2017-2020, 20, (2021) https://
cdn.advocacy.sba.gov/wp-content/uploads/2021/02/09101916/Background-
Paper-Office-of-Advocacy-2017-2020-web.pdf. [hereinafter ``Advocacy 
Backgrounder'']
    \4\About, The Small Business Administration Office of Advocacy, 
https://advocacy.sba.gov/
about/.
---------------------------------------------------------------------------
    Every year, Advocacy reports to Congress and the 
Administration on agency compliance with the RFA and releases 
more than 20 research publications annually.\5\ Over the years, 
Advocacy's responsibilities have expanded through the enactment 
of the Small Business Regulatory Enforcement Fairness Act of 
1996\6\ and Trade Facilitation and Trade Enforcement Act of 
2015.\7\
---------------------------------------------------------------------------
    \5\Id.
    \6\Pub. L. No. 104-121.
    \7\Pub. L. No. 114-125.
---------------------------------------------------------------------------
    Since 2012, Advocacy has participated in a number of 
international regulatory cooperation and international trade 
initiatives that have impacted small businesses. Their ability 
to conduct outreach to small business sectors and examine the 
potential economic effects of agreements on small businesses 
can help level the playing field for small businesses, and in 
turn, open vast new markets for smaller firms.

                             III. Hearings

    While multiple hearings have been held by the Committee 
over the past several years exploring the Office of Advocacy's 
role in the representing the small business community, no 
specific hearings in the 117th Congress have been held to 
explore reforms to SBA's Office of Advocacy.

                      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. 
6454 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. 6454 to the House at 10:49 A.M.

                  VI. Section-by-Section for H.R. 6454


Section 1. Short title

    This Act may be cited as the ``Small Business Advocacy 
Improvements Act of 2022''.

Section 2. Amendment to primary functions and duties of the Office of 
        Advocacy of the Small Business Administration

    Subsection (a)--Primary Functions.
    This subsection makes technical amendments to Section 202 
of Public Law 94-305 (15 U.S.C. Sec.  634b) and adds a 
requirement that the Office of Advocacy examine the role of 
American small businesses in the international economy.
    Subsection (b)--Duties.
    This subsection amends Section 203(a) of Public Law 94-305 
(15 U.S.C. Sec.  634c) to require the Office of Advocacy to 
represent the views and interests of American small businesses 
to foreign governments and international entities on any 
regulatory and trade initiatives.

                VII. Congressional Budget 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 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. 6454 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. 6454 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. 6454 is to make it 
easier for small business voices to be heard on the 
international stage.

                  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. 6454 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 (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

                          ACT OF JUNE 4, 1976


                          (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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