[House Report 118-185]
[From the U.S. Government Publishing Office]


118th Congress }                                          { Report 
                        HOUSE OF REPRESENTATIVES
 1st Session   }                                          { 118-185

======================================================================
 
              PROVIDING OPPORTUNITIES TO SHOW TRANSPARENCY VIA 
                     INFORMATION TECHNOLOGY ACT OF 2023

                                _______
                                

 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. 4668]

    The Committee on Small Business, to whom was referred the 
bill (H.R. 4668) to amend the Small Business Act to require the 
Small Business and Agriculture Regulatory Enforcement Ombudsman 
to publish guidance documents for certain rules, 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. Need for Legislation............................................2
 III. Hearings........................................................2
  IV. Committee Consideration.........................................2
   V. Committee Votes.................................................2
  VI. Section-by-Section of H.R. 4668.................................5
 VII. Congressional Budget Office Cost Estimate.......................5
VIII. New Budget Authority, Entitlement Authority, and Tax Expenditure5
  IX. Oversight Findings & Recommendations............................5
   X. Performance Goals and Objectives................................5
  XI. Statement of Duplication of Federal Programs....................6
 XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
      Benefits........................................................6
XIII. Federal Mandates Statement......................................6
 XIV. Federal Advisory Committee Statement............................6
  XV. Applicability to Legislative Branch.............................6
 XVI. Statement of Constitutional Authority...........................6
XVII. Changes in Existing Law, Made by the Bill, As Reported..........6

                      I. Purpose and Bill Summary

    H.R. 4668 was introduced by Rep. Molinaro (R-NY) and Rep. 
Scholten (D-MI) on July 17, 2023. The purpose of H.R. 4668, the 
POST IT Act, is to amend the Small Business Act to require the 
Small Business and Agriculture Regulatory Enforcement Ombudsman 
to publish guidance documents for rules that have a significant 
impact on a substantial number of small entities. The 
legislation will make it easier for small businesses to better 
understand and comply with guidance that may otherwise be 
difficult for them to find and understand.

                        II. Need for Legislation

    The POST IT Act creates a centralized repository so small 
businesses can find information on how to comply with 
regulations. While there are official guidance documents that 
are released when a rule is initially finalized, over time, 
agencies often release additional materials clarifying and 
providing guidance on compliance. This includes updated policy 
statements and technical clarifications. This legislation 
ensures all of these updates will be housed in a centralized 
location on the Ombudsman's website.

                             III. Hearings

    In the 118th Congress, the Committee held one hearing 
examining the issues covered in H.R. 4668. 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 the increasing regulatory 
burdens promulgated by federal agencies are crushing small 
businesses. The hearing highlighted the importance of 
communication with the private sector in order to ease the 
burden of regulatory compliance.

                      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. 4668 
reported favorably 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 to favorably report H.R. 4668 to 
the House of Representatives at 12:00 PM.


                  VI. Section-by-Section of H.R. 4668


Section 1. Short title

    This legislation may be cited as the ``Providing 
Opportunity to Show Transparency via Information Technology Act 
of 2023'' or the ``POST IT Act of 2023.''

Section 2. Inclusion of guidance on Ombudsman website

    Guidance as well as updated policy directives relating to 
rules determined to have a significant impact on a substantial 
number of small entities must be posted on the SBA's National 
Ombudsman's website.

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. 
4668 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. 4668 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. 4668 are to require 
subsequent guidance and updated policy directive for rules that 
have a significant impact on a substantial number of small 
entities to be posted to the SBA's National Ombudsman's 
website.

            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. 4668 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.

      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, 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):

         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):

                           SMALL BUSINESS ACT




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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 
                407 of title 5, United States Code;
                  (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[.]; and
          (3) to the extent practicable, hyperlinks for such 
        guidance that is designed to set forth policy on a 
        statutory, regulatory, or technical issue, or an 
        interpretation of such issue, for any rule for which an 
        agency produces a small entity compliance 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.
  (g) Protection of Confidential Information.--Subsection (e) 
does not require the public availability of information that is 
exempt from public disclosure under section 552(b) of title 5, 
United States Code (commonly known as the ``Freedom of 
Information Act'').

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