[House Report 118-180]
[From the U.S. Government Publishing Office]


118th Congress }                                          { Report 
                        HOUSE OF REPRESENTATIVES
 1st Session   }                                          { 118-180

======================================================================
 
                SMALL BUSINESS REGULATORY REDUCTION ACT

                                _______
                                

 September 1, 2023.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

Mr. Williams of Texas, from the Committee on Small Business, submitted 
                             the following

                              R E P O R T

                        [To accompany H.R. 3995]

    The Committee on Small Business, to whom was referred the 
bill (H.R. 3995) to require the Administrator of the Small 
Business Administration to ensure that the small business 
regulatory budget for a fiscal year is not greater than zero, 
and for other purposes, having considered the same, reports 
favorably thereon with an amendment and recommends that the 
bill as amended do pass.

                                CONTENTS

                                                                   Page
  I. Purpose and Bill Summary.........................................2
 II. Need for Legislation.............................................2
III. Hearings.........................................................2
 IV. Committee Consideration..........................................2
  V. Committee Votes..................................................2
 VI. Section-by-Section of H.R. 3995.................................16
VII. Congressional Budget Office Cost Estimate.......................16
VIII.New Budget Authority, Entitlement Authority, and Tax Expenditure16

 IX. Oversight Findings & Recommendations............................16
  X. Performance Goals and Objectives................................16
 XI. Statement of Duplication of Federal Programs....................17
XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
     Benefits........................................................17
XIII.Federal Mandates Statement......................................17

XIV. Federal Advisory Committee Statement............................17
 XV. Applicability to Legislative Branch.............................17
XVI. Statement of Constitutional Authority...........................17

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Small Business Regulatory Reduction 
Act''.

SEC. 2. SMALL BUSINESS ADMINISTRATION RULEMAKING COSTS TO SMALL 
                    BUSINESS CONCERNS.

  (a) In General.--The Administrator shall ensure that the small 
business regulatory budget for a fiscal year is not greater than zero.
  (b) Report.--Not later than 60 days after the last day of a fiscal 
year, the Administrator shall submit to Congress a report on any 
regulations issued by other Federal agencies that have an impact on 
small business concerns. Such report shall include rules issued during 
the fiscal year preceding and the fiscal year following the date of the 
report and such rules shall be disaggregated by the issuing Federal 
agency.
  (c) Small Business Regulatory Budget Defined.--In this section, the 
term ``small business regulatory budget'' means the cost to small 
business concerns (as defined under section 3 of the Small Business Act 
(15 U.S.C. 632)) of rulemaking (including the cost of a new rule and 
any modification to or repeal of a rule) by the Administrator of the 
Small Business Administration.

SEC. 3. COMPLIANCE WITH CUTGO.

  No additional amounts are authorized to be appropriated to carry out 
this Act. Such Act shall be carried out using amounts otherwise 
appropriated to the Administrator of the Small Business Administration.

                      I. PURPOSE AND BILL SUMMARY

    H.R. 3995 was introduced by Rep. Van Duyne (R-TX) on June 
9, 2023. The purpose of H.R. 3995, the Small Business 
Regulatory Reduction Act is to require the Small Business 
Administration (SBA) to ensure that for each fiscal year the 
cost to small businesses of the administration's rule making 
(including the modification or repeal of a rule) is not greater 
than zero. SBA must also report on regulations issued by other 
federal agencies that have an impact on small businesses.

                        II. NEED FOR LEGISLATION

    The legislation will ensure that the SBA's rulemaking does 
not compound costs on small businesses by requiring the repeal 
of costly, outdated rules if the agency chooses to promulgate 
new rules.

                             III. HEARINGS

    In the 118th Congress, the Committee held a hearing 
examining the issues covered in H.R. 3995. On June 22, 2023, 
the Committee held a hearing titled ``Reviewing the SBA's 
Office of Advocacy Report on the Regulatory Flexibility Act.'' 
During the hearing, the Office of Advocacy's (Advocacy) Deputy 
Chief Counsel for Advocacy, Mr. Major L. Clark, testified about 
Advocacy's recent report on the Regulatory Flexibility Act.
    The Committee examined how excessive regulatory burdens are 
crushing small businesses. The hearing highlighted the need for 
Congress to reign in these increasing burdens.

                      IV. COMMITTEE CONSIDERATION

    The Committee on Small Business met in open session, with a 
quorum being present, on July 18, 2023 and ordered H.R. 3995 as 
amended reported favorably to the House of Representatives. 
During the markup four 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 to favorably report H.R. 3995 to 
the House of Representatives at 12:19 PM.


                  VI. SECTION-BY-SECTION OF H.R. 3995

Section 1. Short title

    This Act may be cited as the ``Small Business Regulatory 
Reduction Act.''

Section 2. Small Business Administration rulemaking costs to small 
        business concerns

    This section requires the Administrator of the SBA to 
ensure that the small business regulatory budget for a fiscal 
year is not greater than zero. Additionally, it requires a 
report on regulations issued by other federal agencies that 
have an impact on small businesses.

Section 3. Compliance with CUTGO

    This section does not authorize any additional 
appropriations for this bill.

             VII. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

    Pursuant to clause 3(d)(1) of House rule XIII, the 
Committee adopts as its own 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 has 
requested but not received from the Director of the 
Congressional Budget Office a cost estimate for the Committee's 
provisions. Once available, the cost estimate will be published 
in the Congressional Record.

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)(I) 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: H.R. 
3995 does not direct new spending, but instead reallocates 
funding independently authorized and appropriated.

                IX. OVERSIGHT FINDINGS & 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. 3995 are incorporated into the descriptive portions of 
this report.

                  X. PERFORMANCE GOALS AND OBJECTIVES

    With respect to the requirements of clause 3(c)(1) of rule 
XIII of the Rules of the House of Representatives, the 
performance goals and objectives of H.R. 3995 are to require 
the SBA to ensure that for each fiscal year the cost to small 
businesses of the administration's rule making is not greater 
than zero and to require the administration to report to 
Congress on any regulations issued by other agencies that have 
an impact on small business.

            XI. STATEMENT OF 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. 3995 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

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

               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. STATEMENT OF CONSTITUTIONAL AUTHORITY

    Pursuant to clause 7 of Rule XII of the Rules of the House, 
the Committee finds that the authority for this legislation in 
Art. I, Sec. 8, cl.1 of the Constitution of the United States.

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