[House Report 107-210]
[From the U.S. Government Publishing Office]
107th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 107-210
======================================================================
NATIONAL SMALL BUSINESS REGULATORY ASSISTANCE ACT OF 2001
_______
September 21, 2001.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Manzullo, from the Committee on Small Business, submitted the
following
R E P O R T
together with
ADDITIONAL VIEWS
[To accompany H.R. 203]
[Including cost estimate of the Congressional Budget Office]
The Committee on Small Business, to whom was referred the
bill (H.R. 203) to amend the Small Business Act to direct the
Administrator of the Small Business Administration to establish
a pilot program to provide regulatory compliance assistance to
small business concerns, and for other purposes, having
considered the same, report favorably thereon with an amendment
and recommend that the bill as amended do pass.
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 ``National Small Business Regulatory
Assistance Act of 2001''.
SEC. 2. PURPOSE.
The purpose of this Act is to establish a pilot program to--
(1) provide confidential assistance to small business
concerns;
(2) provide small business concerns with the information
necessary to improve their rate of compliance with Federal and
State regulations;
(3) create a partnership among Federal agencies to increase
outreach efforts to small business concerns with respect to
regulatory compliance;
(4) provide a mechanism for unbiased feedback to Federal
agencies on the regulatory environment for small business
concerns; and
(5) utilize the service delivery network of Small Business
Development Centers to improve access of small business
concerns to programs to assist them with regulatory compliance.
SEC. 3. DEFINITIONS.
In this Act, the definitions set forth in section 36(a) of the Small
Business Act (as added by section 4 of this Act) shall apply.
SEC. 4. SMALL BUSINESS REGULATORY ASSISTANCE PILOT PROGRAM.
The Small Business Act (15 U.S.C. 637 et seq.) is amended--
(1) by redesignating section 36 as section 37; and
(2) by inserting after section 35 the following new section:
``SEC. 36. SMALL BUSINESS REGULATORY ASSISTANCE PILOT PROGRAM.
``(a) Definitions.--In this section, the following definitions apply:
``(1) Administrator.--The term `Administrator' means the
Administrator of the Small Business Administration, acting
through the Associate Administrator for Small Business
Development Centers.
``(2) Association.--The term `Association' means the
association, established pursuant to section 21(a)(3)(A),
representing a majority of Small Business Development Centers.
``(3) Participating small business development center.--The
term `participating Small Business Development Center' means a
Small Business Development Center participating in the pilot
program.
``(4) Pilot program.--The term `pilot program' means the
pilot program established under this section.
``(5) Regulatory compliance assistance.--The term `regulatory
compliance assistance' means assistance provided by a Small
Business Development Center to a small business concern to
enable the concern to comply with Federal regulatory
requirements.
``(6) Small business development center.--The term `Small
Business Development Center' means a Small Business Development
Center described in section 21.
``(7) State.--The term `State' means each of the several
States, the District of Columbia, the Commonwealth of Puerto
Rico, the Virgin Islands, and Guam.
``(b) Authority.--In accordance with this section, the Administrator
shall establish a pilot program to provide regulatory compliance
assistance to small business concerns through participating Small
Business Development Centers, the Association, and Federal compliance
partnership programs.
``(c) Small Business Development Centers.--
``(1) In general.--In carrying out the pilot program, the
Administrator shall enter into arrangements with participating
Small Business Development Centers under which such centers
will provide--
``(A) access to information and resources, including
current Federal and State nonpunitive compliance and
technical assistance programs similar to those
established under section 507 of the Clean Air Act
Amendments of 1990;
``(B) training and educational activities;
``(C) confidential, free-of-charge, one-on-one, in-
depth counseling to the owners and operators of small
business concerns regarding compliance with Federal and
State regulations, provided that such counseling is not
considered to be the practice of law in a State in
which a Small Business Development Center is located or
in which such counseling is conducted;
``(D) technical assistance; and
``(E) referrals to experts and other providers of
compliance assistance who meet such standards for
educational, technical, and professional competency as
are established by the Administrator.
``(2) Reports.--
``(A) In general.--Each participating Small Business
Development Center shall transmit to the Administrator
a quarterly report that includes--
``(i) a summary of the regulatory compliance
assistance provided by the center under the
pilot program; and
``(ii) any data and information obtained by
the center from a Federal agency regarding
regulatory compliance that the agency intends
to be disseminated to small business concerns.
``(B) Electronic form.--Each report referred to in
subparagraph (A) shall be transmitted in electronic
form.
``(C) Interim reports.--During any time period
falling between the transmittal of quarterly reports, a
participating Small Business Development Center may
transmit to the Administrator any interim report
containing data or information considered by the center
to be necessary or useful.
``(D) Limitation on disclosure requirements.--The
Administrator may not require a Small Business
Development Center to disclose the name or address of
any small business concern that received or is
receiving assistance under the pilot program, except
that the Administrator shall require such a disclosure
if ordered to do so by a court in any civil or criminal
enforcement action commenced by a Federal or State
agency.
``(d) Data Repository and Clearinghouse.--
``(1) In general.--In carrying out the pilot program, the
Administrator shall--
``(A) act as the repository of and clearinghouse for
data and information submitted by Small Business
Development Centers; and
``(B) transmit to the President and to the Committees
on Small Business of the Senate and House of
Representatives an annual report that includes--
``(i) a description of the types of
assistance provided by participating Small
Business Development Centers under the pilot
program;
``(ii) data regarding the number of small
business concerns that contacted participating
Small Business Development Centers regarding
assistance under the pilot program;
``(iii) data regarding the number of small
business concerns assisted by participating
Small Business Development Centers under the
pilot program;
``(iv) data and information regarding
outreach activities conducted by participating
Small Business Development Centers under the
pilot program, including any activities
conducted in partnership with Federal agencies;
``(v) data and information regarding each
case known to the Administrator in which one or
more Small Business Development Centers offered
conflicting advice or information regarding
compliance with a Federal or State regulation
to one or more small business concerns;
``(vi) any recommendations for improvements
in the regulation of small business concerns;
and
``(vii) a list of regulations identified by
the Administrator, after consultation with the
Small Business and Agriculture Regulatory
Enforcement Ombudsman, as being most burdensome
to small business concerns, and recommendations
to reduce or eliminate the burdens of such
regulations.
``(e) Eligibility.--
``(1) In general.--A Small Business Development Center shall
be eligible to receive assistance under the pilot program only
if the center is certified under section 21(k)(2).
``(2) Waiver.--With respect to a Small Business Development
Center seeking assistance under the pilot program, the
Administrator may waive the certification requirement set forth
in paragraph (1) if the Administrator determines that the
center is making a good faith effort to obtain such
certification.
``(3) Effective date.--This subsection shall take effect on
October 1, 2001.
``(f) Selection of Participating State Programs.--
``(1) In general.--In consultation with the Association and
giving substantial weight to the Association's recommendations,
the Administrator shall select the Small Business Development
Center programs of 2 States from each of the following groups
of States to participate in the pilot program established by
this section:
``(A) Group 1: Maine, Massachusetts, New Hampshire,
Connecticut, Vermont, and Rhode Island.
``(B) Group 2: New York, New Jersey, Puerto Rico, and
the Virgin Islands.
``(C) Group 3: Pennsylvania, Maryland, West Virginia,
Virginia, the District of Columbia, and Delaware.
``(D) Group 4: Georgia, Alabama, North Carolina,
South Carolina, Mississippi, Florida, Kentucky, and
Tennessee.
``(E) Group 5: Illinois, Ohio, Michigan, Indiana,
Wisconsin, and Minnesota.
``(F) Group 6: Texas, New Mexico, Arkansas, Oklahoma,
and Louisiana.
``(G) Group 7: Missouri, Iowa, Nebraska, and Kansas.
``(H) Group 8: Colorado, Wyoming, North Dakota, South
Dakota, Montana, and Utah.
``(I) Group 9: California, Guam, Hawaii, Nevada, and
Arizona.
``(J) Group 10: Washington, Alaska, Idaho, and
Oregon.
``(2) Deadline for selection.--The Administrator shall make
selections under this subsection not later than 60 days after
promulgation of regulations under section 5 of the National
Small Business Regulatory Assistance Act of 2001.
``(g) Matching Not Required.--Subparagraphs (A) and (B) of section
21(a)(4) shall not apply to assistance made available under the pilot
program.
``(h) Distribution of Grants.--
``(1) In general.--Each State program selected to receive a
grant under subsection (f) in a fiscal year shall be eligible
to receive a grant in an amount not to exceed the product
obtained by multiplying--
``(A) the amount made available for grants under this
section for the fiscal year; and
``(B) the ratio that--
``(i) the population of the State; bears to
``(ii) the population of all the States with
programs selected to receive grants under
subsection (f) for the fiscal year.
``(2) Minimum amount.--Notwithstanding paragraph (1), the
minimum amount that a State program selected to receive a grant
under subsection (f) shall be eligible to receive under this
section in the fiscal year shall be $200,000.
``(i) Evaluation and Report.--Not later than 3 years after the
establishment of the pilot program, the Comptroller General of the
United States shall conduct an evaluation of the pilot program and
shall transmit to the Administrator and to the Committees on Small
Business of the Senate and House of Representatives a report containing
the results of the evaluation along with any recommendations as to
whether the pilot program, with or without modification, should be
extended to include the participation of all Small Business Development
Centers.
``(j) Authorization of Appropriations.--
``(1) In general.--There are authorized to be appropriated to
carry out this section $5,000,000 for fiscal year 2002 and each
fiscal year thereafter.
``(2) Limitation on use of other funds.--The Administrator
may carry out the pilot program only with amounts appropriated
in advance specifically to carry out this section.''.
SEC. 5. PROMULGATION OF REGULATIONS.
After providing notice and an opportunity for comment and after
consulting with the Association (but not later than 180 days after the
date of the enactment of this Act), the Administrator shall promulgate
final regulations to carry out this Act, including regulations that
establish--
(1) priorities for the types of assistance to be provided
under the pilot program;
(2) standards relating to educational, technical, and support
services to be provided by participating Small Business
Development Centers;
(3) standards relating to any national service delivery and
support function to be provided by the Association under the
pilot program;
(4) standards relating to any work plan that the
Administrator may require a participating Small Business
Development Center to develop; and
(5) standards relating to the educational, technical, and
professional competency of any expert or other assistance
provider to whom a small business concern may be referred for
compliance assistance under the pilot program.
SEC. 6. PRIVACY REQUIREMENTS APPLICABLE TO SMALL BUSINESS DEVELOPMENT
CENTERS.
Section 21(c) of the Small Business Act (15 U.S.C. 648(c)) is amended
by adding at the end the following:
``(9) Privacy requirements.--
``(A) In general.--No Small Business Development
Center, consortium of Small Business Development
Centers, or contractor or agent of a Small Business
Development Center shall disclose the name or address
of any individual or small business concern receiving
assistance under this section without the consent of
such individual or small business concern, except
that--
``(i) the Administrator shall require such
disclosure if ordered to do so by a court in
any civil or criminal enforcement action
commenced by a Federal or State agency; and
``(ii) if the Administrator considers it
necessary while undertaking a financial audit
of a Small Business Development Center, the
Administrator shall require such disclosure for
the sole purpose of undertaking such audit.
``(B) Regulations.--The Administrator shall issue
regulations to establish standards for requiring
disclosures during a financial audit under subparagraph
(A)(ii).''.
Purpose
The purpose of H.R. 203, the ``National Small Business
Regulatory Assistance Act of 2001,'' is to utilize existing
Small Business Administration infrastructure to provide
regulatory compliance assistance to small businesses. The
United States Small Business Administration oversees the
operations of Small Business Development Centers. Located in
every state, these centers are associated with colleges and
universities and provide operational assistance to small
business owners. They are authorized to provide regulatory
compliance assistance but they do not have an organized program
for providing such assistance. H.R. 203 would establish a pilot
project for selected small business development center state
programs to develop regulatory compliance assistance programs.
The bill mandates that the Administrator of the United
States Small Business Administration establish a pilot project
in which twenty small business development center state
programs will be selected to test whether the centers within
those state programs would be an appropriate vehicle for
providing regulatory compliance assistance to small business
owners. It is the expectation of the Committee that the program
should be expanded to include all small business development
centers should the pilot program prove successful.
Need for Legislation
During the past twenty years, the Federal Register--the
compendium of federal regulatory initiatives and changes--
almost doubled in size from 42,000 pages to a record 83,289
pages in 2000. This crush of federal dictates is particularly
troubling to small businesses who find it increasingly
difficult to meet these burgeoning regulatory requirements
while at the same time trying to successfully operate their
businesses in an expanding competitive global environment.
Often, small business owners do not learn about their failure
to comply with a regulation or that a new regulatory
requirement has been imposed until an inspector or auditor
walks through the door.
The result is neither beneficial to the small business
owner nor the federal government. Federal regulations exist to
achieve some statutory objective; noncompliance hinders the
reaching of these statutory goals. Small business owners
certainly would be more interested in complying with federal
regulations than paying penalties and fines. However, the
amount of information, including regulations and concomitant
guidance, simply overwhelms small business owners.
In 1966, Congress took action in an effort to alleviate
this problem. The Small Business Regulatory Enforcement
Fairness Act provided that federal agencies are required to
produce plain-English compliance guides for any regulation that
would have a significant economic impact on a substantial
number of small businesses. Of course, if small business owners
do not know about the regulatory changes, the existence of such
compliance guides does little to assist them. Some mechanism
must exist to make small businesses more aware of their
regulatory obligations.
Even more important than making small businesses aware of
the regulations is providing them with assistance needed to
understand and comply with the regulations. A regulation may
only take up ten or eleven pages of text, but the explanation
for what those ten or eleven pages mean may encompass as much
as three hundred pages of dense, triple-columned, single-spaced
pages in the Federal Register. Most small business owners do
not have the time to go through this dense prolixity. And even
if they did, they would not understand it unless they were
knowledgeable in the field. The Committee believes that greater
assistance must be provided to small business owners in helping
them comply with complex regulatory issuances. Otherwise, a
divide could develop between those businesses, usually large,
with the resources to comply and those, usually small, without
such resources. The small business will be at risk for
penalties, fines, and audits while large businesses will not. A
regulatory compliance assistance program operated through the
small business development centers could provide substantial
assistance in ensuring such a divide does not occur.
The Small Business Administration oversees a number of
mechanisms for delivering advice to small business owners. One
of the most effective is the Small Business Development Center
program. Operated in conjunction with colleges and
universities, the small business development centers assist
small businesses in solving problems concerning the operations,
manufacturing, engineering, technology, exchange and
development, personnel administration, marketing, sales,
merchandising, finance, accounting, and business strategy
development. The small business development centers utilize the
resources and the expertise of colleges and universities. In
addition, the small business development centers, like the
Agricultural Extension Service, also provide a focal point for
information retrieval, coordination of federal and state
government services, and referral to experts. Historically, the
small business development centers have focused on financial,
management, and marketing activities of small businesses
despite the requirement that they also provide regulatory
compliance assistance. See Sec. 21(c)(3)(H) of the Small
Business Act (codified at 15 U.S.C. Sec. 648(c)(3)(H)).
The Committee believes that small business development
centers can provide an effective mechanism for dispensing
regulatory compliance information and advice. However,
regulatory compliance, unlike many of the other activities
undertaken by the small business development centers, has
significant legal consequences. Therefore, the Committee
believes that a pilot program to examine how the regulatory
compliance assistance will operate in selected small business
development centers is a preferred strategy to simply providing
an authorization of additional funding so that the small
business development centers can provide regulatory compliance
assistance.
Committee Action
The Committee on Small Business held a field hearing to
consider predecessor versions of H.R. 203. The hearing was held
on September 2, 1999 at the Columbia Greene Community College
in Hudson, NY. During that hearing, small businesses testified
concerning the complexity of federal regulations, their desire
for better understanding of federal regulatory requirements,
and the need for easy access to compliance assistance. The
Committee's Subcommittee on Workforce, Empowerment, and
Government Programs held a hearing on H.R. 203 on July 19,
2001. At the hearing, witnesses, the sponsor of the bill, Mr.
Sweeney (R-NY), noted that he continues to hear from small
business constituents that they still are being overwhelmed
with regulation and need compliance assistance. The Association
of Small Business Development Centers also voiced support for
the bill. Finally, the American Industrial Hygiene Association
also endorsed the bill but suggested that amendments should be
made to ensure that regulatory compliance assistance is
provided by properly credentialed individuals.
Consideration of H.R. 203
At 10:00 a.m. on August 1, 2001, the Committee on Small
Business met to consider and report H.R. 203. Following a brief
opening statement by the Chairman, he declared the bill open
for amendment.
Ms. Valazquez (D-NY), the Ranking Democratic Member,
introduced an amendment which was accepted by unanimous voice
vote, a quorum being present. Mr. Pence (R-IN) then introduced
an amendment which was accepted by unanimous voice vote, a
quorum being present. Chairman Manzullo then moved the bill be
reported, and at 10:30 a.m. by unanimous voice vote, a quorum
being present, the Committee passed H.R. 203, as amended and
ordered it reported.
Section-by-Section Analysis
Section 1. Short title
Designates the bill as the ``National Small Business
Regulatory Assistance Act of 2001.''
Section 2. Purpose
This section expresses the purpose of the legislation--to
establish a pilot project within certain Small Business
Development Centers to provide and coordinate regulatory
compliance assistance to small businesses.
Section 3. Definitions
The definitions of the Small Business Act shall apply to
this pilot program unless a different definition is utilized in
the new Sec. 36 created by this Act. In those cases in which
the definition is different, the definitions in new Sec. 36
shall apply to the pilot program created by this Act.
Section 4. Small Business Regulatory Assistance Pilot Program
This section establishes the pilot program by creating a
new Section 36 of the Small Business Act.
Section 36(a)(1) defines the term ``Administrator'' as the
Administrator of the Small Business Administration.
Section 36(a)(2) defines the term ``Association'' to be the
association established pursuant to Section 21 of the Small
Business Act which represents the majority of small business
development centers. That organization is the Association of
Small Business Development Centers.
Section 36(a)(3) defines the term ``Participating Small
Business Development Center'' as a small business development
center selected to participate in the pilot program established
under this section.
Section 36(a)(4) defines the term ``Pilot Program'' as the
three-year program established under this section.
Section 36(a)(5) defines the term ``Regulatory Compliance
Assistance'' as assistance provided by a participating small
business development center to a small business concerning
compliance with federal regulations.
Section 36(a)(6) defines the term ``Small Business
Development Center'' means a small business development center
described in section 21 of the Small Business Act.
Section 36(a)(7) defines the term ``State'' to include all
fifty states and the District of Columbia, the Virgin Islands,
and Guam.
Section 36(b) authorizes the Administrator of the Small
Business Administration to establish a pilot program for
selected small business development centers to provide small
businesses with regulatory compliance assistance.
Section 36(c)(1) authorizes the Administrator to enter into
arrangements with the small business development centers
selected under this section for the provision of regulatory
compliance assistance.
The participating small business development centers are
required to provide access to information and resources on
regulatory compliance, including contact information for
federal and state compliance and technical assistance similar
to those established under section 507 of the Clean Air Act
Amendments of 1990. Numerous other federal and state agencies
have non-punitive compliance assistance programs (such as the
federal Occupational Safety and Health Administration) and the
Committee expects that the participating small business
development centers will maintain all necessary contact
information with those federal and state agencies. Furthermore,
the Committee expects that the quality of coordination of these
assistance resources will be a significant factor in selecting
the small business development centers for the pilot project.
Section 36(c)(1) also requires that the selected small
business development centers establish various training and
educational activities. The Committee expects that selected
centers will utilize their contacts with federal and state
agencies to obtain compliance pamphlets, videos, books, and any
compliance guides issued pursuant to the Small Business
Regulatory Enforcement Fairness Act. In addition, the Committee
expects that participating centers will hold lectures and
seminars on regulatory compliance including updates on
compliance based on regulatory changes. The Committee expects
that the Administrator will consider the quality of proposed
educational programs in determining which centers are selected
to participate in the pilot program.
Section 36(c)(1)(C) also mandates that the selected small
business development centers provide confidential counseling on
a one-on-one basis at no charge to small businesses seeking
regulatory compliance assistance. The Committee recognizes that
compliance with regulations inculcates legal rights and
responsibilities of small business owners. Therefore, section
36(c) prohibits any regulatory compliance counseling that would
be considered the practice of law in the jurisdiction in which
the small business development center is located or in which
such counseling is conducted. Furthermore, the Committee
supports efforts in which the participating development centers
establish contacts with lawyers in the community willing to
provide seminars and other consultative service on regulatory
compliance matters.
Section 36(c)(1) also requires the provision of technical
assistance. Such counseling may include the arrangement of
meetings with technical experts known to the participating
small business development centers as long as such counseling
again is done on a one-on-one basis at no charge to the small
business.
Section 36(c)(1)(E) makes explicit the Committee's concern
that small businesses are directed to those individuals who
have appropriate credentials and certifications to provide
regulatory compliance assistance. While the Committee fully
understands that many very successful businesses, including
Microsoft, Apple, and Dell Computer, started in garages and
those businessmen are quite capable of providing advice on
starting, financing, and marketing a business, they are not
necessarily qualified to provide guidance on compliance with
OSHA, EPA, or IRS regulations. In fact, due to the potential
legal consequences resulting from a small business owner
following incorrect guidance, the Committee determined that it
is necessary to make explicit the requirement that the
participating centers only refer businesses to individuals with
appropriate expertise in the regulatory compliance matter for
which advice is sought.
Section 36(c)(2) requires each participating center to file
a quarterly report with the Administrator. The report shall
provide a summary of the compliance assistance provided under
the pilot program. The report also must contain any data and
information obtained by the participating small business
development center from a federal agency concerning compliance
which the federal agency intends to be disseminated to small
business concerns. The Committee believes that this latter
requirement will enable the Administrator or the Chief Counsel
for Advocacy to raise issues of agency inconsistencies, to the
extent that they exist, to the appropriate decisionmakers.
Section 36(c)(2) requires that reports be filed with the
Administrator in an electronic format. The Committee expects
the Administrator to promulgate regulations which will provide
for a consistent format of the report. The Committee believes
that such consistency is necessary for the accurate compilation
of data and proper assessment of the effectiveness of the pilot
program.
Section 36(c)(2) also permits, but does not require,
participating small business development centers to make
interim reports if such reports are necessary or useful. For
example, a participating small business development center may
receive inconsistent compliance information from a federal
agency. By alerting the Administrator prior to the issuance of
the quarterly report, the federal agency may be able to issue a
clarification that may eliminate confusion, save compliance
costs, and improve small business compliance.
One of the critical concerns to small businesses is that
discussions of compliance assistance could be revealed to
federal agencies which would lead to fines and penalties.
Furthermore, the Committee is concerned that small business
development centers havebeen revealing the names of businesses
which seek their advice to the Administrator for functions unrelated to
the financial auditing of small business development centers. The
Committee believes that such behavior is simply intolerable. Without
any assurances of privacy, small businesses will be less likely to use
small business development centers. And this would be especially true
for regulatory compliance assistance efforts. The Committee recognizes
the concern about revealing the names of businesses that utilize the
resources of small business development centers. Therefore,
Sec. 36(c)(1)(D) prohibits the disclosure of the names or addresses of
any concern receiving compliance assistance under this pilot program
unless the Administrator is ordered to make such disclosure pursuant to
a court order or civil or criminal enforcement action commenced by a
federal or state agency. The committee expects that participating small
business development centers will only respond to formal agency
requests such as civil investigative demands, subpoenas, requests from
Administrator's Associate Administrator for Small Business Development
Centers when performing a financial audit of the small business
development center, or requests from the Inspector General of the Small
Business Administration. The committee expects the small business
development centers will not provide information concerning the
identity of businesses simply upon the verbal request of a federal or
state agency.
Section 36(d) requires the Administrator to act as
repository of data and information submitted by the
participating small business development centers. Given the
oversight role and importance of the Associate Administrator
for Small Business Development Centers, section 36(d) requires
that the functions of maintaining the database be housed with
the Associate Administrator. The Committee believes that a
central repository is necessary in order to determine whether
federal agencies are providing consistent compliance
information on a national basis. However, the Committee expects
that the information received under this subsection be made
available to other offices within the Small Business
Administration, particularly the Chief Counsel for Advocacy and
the Small Business and Agriculture Regulatory Ombudsman so
those offices can more effectively carry out their mission of
representing the interests of small businesses before federal
agencies.
Section 36(d) also requires that the Administrator submit
an annual report to the President and the Committees on Small
Business of the Senate and the House Representatives. The
report will contain: (a) data on the types of information
provided by the participating small business development
centers; (b) the number of small businesses that contacted the
participating small business development centers; (c) the
number of small businesses assisted by participating small
business development centers; (d) information on the outreach
activities of the participating small business development
centers; (e) information regarding each case known to the
Administrator in which participating small business development
centers provided conflicting advice regarding compliance with
federal regulation to one or more small businesses; (f) and any
recommendations for improving the regulatory environment of
small businesses. The Committee believes that this information
is necessary to properly evaluate the utility of the pilot
program. More importantly, the report will reveal whether
similarly situated small businesses are receiving consistent
regulatory compliance assistance. In preparing the report, the
Committee recognizes that the Administrator may wish to consult
with the Chief Counsel for Advocacy and the Small Business and
Agriculture Regulatory Ombudsman. The Committee supports such
consultative efforts but notes that the Administrator may not
delegate the responsibility of preparing the report required by
this subsection to any office within the Small Business
Administration except the Associate Administrator for Small
Business Development Centers.
Section 36(e) limits participation in the pilot program
only to those small business development centers certified
under Sec. 21(k)(2) of the Small Business Act. The Committee is
limiting participation in the pilot program so those small
business centers selected are of the highest quality. Some
small business development centers have not completed their
certification programs. Nevertheless, some of these centers may
be developing or already have exceptional regulatory compliance
assistance programs. The Committee does not believe that such
centers should be prohibited from participating in the pilot
program. Therefore, Sec. 36(e)(2) authorizes the Administrator
to waive the requirement for certification if the center is
making a good faith effort to obtain such certification.
Section 36(f) requires the Administrator to select two
participating state programs from each of the Small Business
Administration's ten federal regions as those regions exist on
the date of enactment of this Act. The Administrator shall
consult with the Association and give the Association's
recommendations substantial weight. The Administrator is
required to complete the selection of the participating centers
within 60 days after the regulations to implement the pilot
program have been promulgated.
Section 36(g) ensures that no matching funds currently
allocated to the operation of the Small Business Development
Centers will be utilized to fund the pilot program. In order to
ensure proper funding, the Committee is authorizing a separate
funding authorization for the program.
Section 36(h) establishes the procedures for distributing
grants among the selected state programs. The formula is based
on the principle that a state which has a smaller population
also will have, in absolute terms, fewer small businesses than
a larger state. The formula therefore allocates funds according
to the relative size of each state. The Committee believes that
the minimum funds needed to initiate a state program will be
$200,000. Because the Committee has authorized $5,000,000, it
is making extra resources available to the larger states who
will require more resources to initiate the pilot project.
Section 36(i) requires the Comptroller General of the
United States to provide a report three years after the
establishment of the pilot program evaluating the effectiveness
of the program. The report also should contain any suggested
modifications to the pilot program. Finally, the Comptroller
General should provide its opinion concerning whether the
program should be continued and expanded to include more small
businessdevelopment centers. The report shall be transmitted to
the Committees on Small Business of the Senate and House of
Representatives. The Committee expects that the pilot program will be
sufficiently successful to expand the program to other small business
development centers.
Section 36(j) limits the operation of the pilot program
only to the funds appropriated in advance for the program.
Section 36(j) provides an authorization of appropriations of
$5,000,000 for fiscal year 2002 and each year thereafter.
Section 36(j) also prohibits the Administrator from using other
funds, including other funds made available for the operation
of Small Business Development Centers, to operate this pilot
project. The Committee authorized the additional appropriations
because it determined that funding of the regulatory compliance
program should not detract from the available funding for the
delivery of other Small Business Development Center programs.
Section 5. Promulgation of regulations
Section 5 authorizes the Administrator to promulgate
regulations to implement this pilot program no later than 180
days after the enactment of the Act. Such regulations only
shall be promulgated after the public has been given an
opportunity for notice and comment. The Committee believes that
the Administrator can and should accomplish the issuance of
regulations within the deadline set by statute. The Committee
considers this Act to be some other law for purposes of section
603 of Title 5 of the United States Code.
The regulations shall include the priorities for the type
of assistance to be provided, standards relating to the
educational, technical, and support services to be provided by
the Association to the participating centers, and standards for
work plans that the participating centers will provide to the
Administrator. The Committee believes that given the potential
interest in the program by Small Business Development Centers,
it is appropriate for the Administrator to have a set of
standards by which it can determine which state programs shall
be chosen. More importantly, the standards will provide an
appropriate baseline for the Comptroller General's evaluation
of the pilot project.
Section 5 also requires the Administrator to develop
appropriate standards for ensuring the technical qualifications
of experts to whom small businesses will be referred. The
Committee does not intend that someone must have a college or
advance degree to qualify. For example, a contractor licensed
in a state with 20 years experience (who is a high-school
graduate) may be as well-equipped to provide advice on
compliance with OSHA construction standards as a professor of
civil engineering. On the other hand, that same contractor
might not be an appropriate individual to provide tax
compliance advice. The Committee does not expect that this
aspect of the Administrator's regulations shall be all
encompassing, i.e., delineate every profession and the
appropriate qualifications. However, the Committee does expect
that the Administrator will recognize, as qualified, those
individuals certified by nationally-recognized accrediting
bodies (whose members must demonstrate substantial educational
and practical experience), meet educational and work standards
established by a federal agency, or are licensed to practice a
particular profession or job pursuant to state law. The
Committee expects that the regulations will provide
participating centers with enough information that the centers
can determine whether the person providing the advice is
competent in the field of regulation.
Section 6 amends section 21 of the Small Business Act. The
Committee has been contacted on a number of occasions by small
business development centers that employees of the Small
Business Administration have attempted to obtain the names and
addresses of businesses that sought the services of the small
business development centers. The Committee believes that any
attempts by the Administrator or the employees of the Small
Business Administration to obtain the names and addresses of
persons seeking small business development center assistance is
inappropriate because it would act as a distincentive for small
businesses to utilize the centers.
Section 6 prohibits the Administrator, any other employee
of the Small Business Administration, or any agent of the
Administrator (including contractors) from obtaining the names
and addresses of businesses that sought assistance. The
Committee's bill provides for two exceptions: (1) if the
Administrator is ordered by a court in any civil or criminal
action initiated by federal or state agency; or (2) the
Administrator requires the information while undertaking a
financial audit of the Small Business Development Center.
To ensure that the Administrator does not unduly abuse the
second exception for disclosure, section 6 requires the
Administrator to promulgate regulations specifying when such
disclosures in an audit shall be made. The Committee expects
that the regulations will strictly limit disclosure during the
audit process and severely circumscribe those individuals who
will have access to the audit information during the audit. The
Committee recognizes that the information collected during the
audit may have to be retained for a variety of purposes, such
as management reviews by the Inspector General or Congressional
oversight. The Committee expects the Administrator's
regulations to cover who, if anyone, shall have access to the
raw data, including the names and addresses of the small
business development center's users, after the audit is
complete. The Committee does not intend that information
obtained during the audit concerning identifiable individuals
or businesses that is retained by the Administrator shall be
releasable pursuant to the Freedom of Information Act.
U.S. Congress,
Congressional Budget Office,
Washington, DC, August 13, 2001.
Hon. Donald Manzullo,
Chairman, Committee on Small Business,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 203, the National
Small Business Regulatory Assistance Act of 2001.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Ken Johnson.
Sincerely,
Dan L. Crippen,
Director.
Enclosure.
congressional budget office cost estimate
H.R. 203--National Small Business Regulatory Assistance Act of 2001
Summary: H.R. 203 would require the Small Business
Administration (SBA) to establish a pilot program for small
business development centers (SBDCs) to counsel small business
owners on compliance with federal and state regulations. SBDCs
are cooperative efforts of the private sector, schools, and
federal, state, and local governments to provide management
assistance to current and prospective small business owners.
H.R. 203 would authorize the appropriation of $5 million a
year to fund the new program. Based on the SBA's historical
spending patterns, CBO estimates that implementing the bill
would cost $23 million over the 2002-2006 period, assuming the
appropriation of the necessary amounts. The bill would not
affect direct spending or receipts; therefore, pay-as-you-go
procedures would not apply.
H.R. 203 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would impose no significant costs on state, local, or
tribal governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 203 is shown in the following table.
The costs of this legislation fall within budget function 370
(commerce and housing credit).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
--------------------------------------------
2002 2003 2004 2005 2006
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Authorization Level................................................ 5 5 5 5 5
Estimated Outlays.................................................. 3 5 5 5 5
----------------------------------------------------------------------------------------------------------------
Pay-as-you-go considerations: None.
Intergovernmental and private-sector impact: H.R. 203
contains no intergovernmental or private-sector mandates as
defined in UMRA and would impose no significant costs on state,
local, or tribal governments.
Estimate prepared by: Federal Costs: Ken Johnson. Impact on
State, Local, and Tribal Governments: Susan Sieg Tompkins.
Impact on the Private Sector: Cecil McPherson.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
Committee Estimate of Costs
Pursuant to the Congressional Budget Act of 1974, the
Committee estimates that the amendments to the Small Business
Act contained in H.R. 4946 will not significantly increase
discretionary spending over the next fiscal years. The
Committee also estimates that H.R. 203 will not affect direct
spending. These estimates concur with Congressional Budget
Office (CBO) estimates.
Furthermore, pursuant to clause 3(d)(2)(A) of rule XIII of
the Rules of the House of Representatives, the Committee
estimates that implementation of H.R. 203 will not
significantly increase other administrative costs.
Oversight Findings
In accordance with clause 4(c)(2) of rule X of the Rules of
the House of Representatives, the Committee states that no
oversight findings or recommendations have been made by the
Committee on Government Reform with respect to the subject
matter contained in H.R. 203.
In accordance with 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 H.R. 203 are incorporated
into the descriptive portions of this report.
Statement of Constitutional Authority
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the Committee finds the authority for
this legislation in Article I, Section 8, clause 18, of the
Constitution of the United States.
Compliance With P.L. 104-4
H.R. 203 contains no unfunded mandates.
Congressional Accountability Act
H.R. 203 does not relate to the terms and conditions of
employment or access to public services or accommodations with
the meaning of section 102(b)(3) of P.L. 104-1.
Federal Advisory Committee Statement
This legislation does not establish or authorize the
establishment of any new advisory committees.
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 italic, existing law in which no change is
proposed is shown in roman):
SMALL BUSINESS ACT
* * * * * * *
Sec. 21. (a) * * *
* * * * * * *
(c)(1) * * *
* * * * * * *
(9) Privacy requirements.--
(A) In general.--No Small Business
Development Center, consortium of Small
Business Development Centers, or contractor or
agent of a Small Business Development Center
shall disclose the name or address of any
individual or small business concern receiving
assistance under this section without the
consent of such individual or small business
concern, except that--
(i) the Administrator shall require
such disclosure if ordered to do so by
a court in any civil or criminal
enforcement action commenced by a
Federal or State agency; and
(ii) if the Administrator considers
it necessary while undertaking a
financial audit of a Small Business
Development Center, the Administrator
shall require such disclosure for the
sole purpose of undertaking such audit.
(B) Regulations.--The Administrator shall
issue regulations to establish standards for
requiring disclosures during a financial audit
under subparagraph (A)(ii).
* * * * * * *
SEC. 36. SMALL BUSINESS REGULATORY ASSISTANCE PILOT PROGRAM.
(a) Definitions.--In this section, the following definitions
apply:
(1) Administrator.--The term ``Administrator'' means
the Administrator of the Small Business Administration,
acting through the Associate Administrator for Small
Business Development Centers.
(2) Association.--The term ``Association'' means the
association, established pursuant to section
21(a)(3)(A), representing a majority of Small Business
Development Centers.
(3) Participating small business development
center.--The term ``participating Small Business
Development Center'' means a Small Business Development
Center participating in the pilot program.
(4) Pilot program.--The term ``pilot program'' means
the pilot program established under this section.
(5) Regulatory compliance assistance.--The term
``regulatory compliance assistance'' means assistance
provided by a Small Business Development Center to a
small business concern to enable the concern to comply
with Federal regulatory requirements.
(6) Small business development center.--The term
``Small Business Development Center'' means a Small
Business Development Center described in section 21.
(7) State.--The term ``State'' means each of the
several States, the District of Columbia, the
Commonwealth of Puerto Rico, the Virgin Islands, and
Guam.
(b) Authority.--In accordance with this section, the
Administrator shall establish a pilot program to provide
regulatory compliance assistance to small business concerns
through participating Small Business Development Centers, the
Association, and Federal compliance partnership programs.
(c) Small Business Development Centers.--
(1) In general.--In carrying out the pilot program,
the Administrator shall enter into arrangements with
participating Small Business Development Centers under
which such centers will provide--
(A) access to information and resources,
including current Federal and State nonpunitive
compliance and technical assistance programs
similar to those established under section 507
of the Clean Air Act Amendments of 1990;
(B) training and educational activities;
(C) confidential, free-of-charge, one-on-one,
in-depth counseling to the owners and operators
of small business concerns regarding compliance
with Federal and State regulations, provided
that such counseling is not considered to be
the practice of law in a State in which a Small
Business Development Center is located or in
which such counseling is conducted;
(D) technical assistance; and
(E) referrals to experts and other providers
of compliance assistance who meet such
standards for educational, technical, and
professional competency as are established by
the Administrator.
(2) Reports.--
(A) In general.--Each participating Small
Business Development Center shall transmit to
the Administrator a quarterly report that
includes--
(i) a summary of the regulatory
compliance assistance provided by the
center under the pilot program; and
(ii) any data and information
obtained by the center from a Federal
agency regarding regulatory compliance
that the agency intends to be
disseminated to small business
concerns.
(B) Electronic form.--Each report referred to
in subparagraph (A) shall be transmitted in
electronic form.
(C) Interim reports.--During any time period
falling between the transmittal of quarterly
reports, a participating Small Business
Development Center may transmit to the
Administrator any interim report containing
data or information considered by the center to
be necessary or useful.
(D) Limitation on disclosure requirements.--
The Administrator may not require a Small
Business Development Center to disclose the
name or address of any small business concern
that received or is receiving assistance under
the pilot program, except that the
Administrator shall require such a disclosure
if ordered to do so by a court in any civil or
criminal enforcement action commenced by a
Federal or State agency.
(d) Data Repository and Clearinghouse.--
(1) In general.--In carrying out the pilot program,
the Administrator shall--
(A) act as the repository of and
clearinghouse for data and information
submitted by Small Business Development
Centers; and
(B) transmit to the President and to the
Committees on Small Business of the Senate and
House of Representatives an annual report that
includes--
(i) a description of the types of
assistance provided by participating
Small Business Development Centers
under the pilot program;
(ii) data regarding the number of
small business concerns that contacted
participating Small Business
Development Centers regarding
assistance under the pilot program;
(iii) data regarding the number of
small business concerns assisted by
participating Small Business
Development Centers under the pilot
program;
(iv) data and information regarding
outreach activities conducted by
participating Small Business
Development Centers under the pilot
program, including any activities
conducted in partnership with Federal
agencies;
(v) data and information regarding
each case known to the Administrator in
which one or more Small Business
Development Centers offered conflicting
advice or information regarding
compliance with a Federal or State
regulation to one or more small
business concerns;
(vi) any recommendations for
improvements in the regulation of small
business concerns; and
(vii) a list of regulations
identified by the Administrator, after
consultation with the Small Business
and Agriculture Regulatory Enforcement
Ombudsman, as being most burdensome to
small business concerns, and
recommendations to reduce or eliminate
the burdens of such regulations.
(e) Eligibility.--
(1) In general.--A Small Business Development Center
shall be eligible to receive assistance under the pilot
program only if the center is certified under section
21(k)(2).
(2) Waiver.--With respect to a Small Business
Development Center seeking assistance under the pilot
program, the Administrator may waive the certification
requirement set forth in paragraph (1) if the
Administrator determines that the center is making a
good faith effort to obtain such certification.
(3) Effective date.--This subsection shall take
effect on October 1, 2001.
(f) Selection of Participating State Programs.--
(1) In general.--In consultation with the Association
and giving substantial weight to the Association's
recommendations, the Administrator shall select the
Small Business Development Center programs of 2 States
from each of the following groups of States to
participate in the pilot program established by this
section:
(A) Group 1: Maine, Massachusetts, New
Hampshire, Connecticut, Vermont, and Rhode
Island.
(B) Group 2: New York, New Jersey, Puerto
Rico, and the Virgin Islands.
(C) Group 3: Pennsylvania, Maryland, West
Virginia, Virginia, the District of Columbia,
and Delaware.
(D) Group 4: Georgia, Alabama, North
Carolina, South Carolina, Mississippi, Florida,
Kentucky, and Tennessee.
(E) Group 5: Illinois, Ohio, Michigan,
Indiana, Wisconsin, and Minnesota.
(F) Group 6: Texas, New Mexico, Arkansas,
Oklahoma, and Louisiana.
(G) Group 7: Missouri, Iowa, Nebraska, and
Kansas.
(H) Group 8: Colorado, Wyoming, North Dakota,
South Dakota, Montana, and Utah.
(I) Group 9: California, Guam, Hawaii,
Nevada, and Arizona.
(J) Group 10: Washington, Alaska, Idaho, and
Oregon.
(2) Deadline for selection.--The Administrator shall
make selections under this subsection not later than 60
days after promulgation of regulations under section 5
of the National Small Business Regulatory Assistance
Act of 2001.
(g) Matching Not Required.--Subparagraphs (A) and (B) of
section 21(a)(4) shall not apply to assistance made available
under the pilot program.
(h) Distribution of Grants.--
(1) In general.--Each State program selected to
receive a grant under subsection (f) in a fiscal year
shall be eligible to receive a grant in an amount not
to exceed the product obtained by multiplying--
(A) the amount made available for grants
under this section for the fiscal year; and
(B) the ratio that--
(i) the population of the State;
bears to
(ii) the population of all the States
with programs selected to receive
grants under subsection (f) for the
fiscal year.
(2) Minimum amount.--Notwithstanding paragraph (1),
the minimum amount that a State program selected to
receive a grant under subsection (f) shall be eligible
to receive under this section in the fiscal year shall
be $200,000.
(i) Evaluation and Report.--Not later than 3 years after the
establishment of the pilot program, the Comptroller General of
the United States shall conduct an evaluation of the pilot
program and shall transmit to the Administrator and to the
Committees on Small Business of the Senate and House of
Representatives a report containing the results of the
evaluation along with any recommendations as to whether the
pilot program, with or without modification, should be extended
to include the participation of all Small Business Development
Centers.
(j) Authorization of Appropriations.--
(1) In general.--There are authorized to be
appropriated to carry out this section $5,000,000 for
fiscal year 2002 and each fiscal year thereafter.
(2) Limitation on use of other funds.--The
Administrator may carry out the pilot program only with
amounts appropriated in advance specifically to carry
out this section.
Sec. [36.] 37. All laws and parts of laws inconsistent with
this Act are hereby repealed to the extent of such
inconsistency.
ADDITIONAL VIEWS
Democrats agree strongly that some targeted, uniform
delivery system must exist to make small businesses more aware
of their regulatory obligations. If greater assistance is not
targeted to small businesses, a divide could develop between
large businesses that have the resources to comply with
regulatory requirements and small businesses that do not. As a
result, we strongly support a regulatory compliance assistance
program operated through SBA's Small Business Development
Center Program and believe that its overall success will ensure
the success of the pilot program established under H.R. 203.
Small businesses have often been overwhelmed by the growing
and constantly changing Federal, State and local regulatory
requirements. They fear, with the onslaught of federal
regulations, that they will inadvertently fail to comply with
some obscure rule, their business will be shut down by the
government, and they will be driven into bankruptcy because
they cannot afford the cost of compliance. On the other hand,
small businesses also fear that going to the very agencies that
create and enforce the regulations is tantamount to turning
themselves in, and will ultimately result in penalties being
levied on their businesses. In fact, many believe that the
government is more interested in recovering penalties than in
promoting compliance with the law.
Although Federal and State regulations and regulatory
programs usually provide substantial benefits, they can be
confusing, burdensome and incur significant costs that
disproportionately fall on small businesses. Small businesses
are not only in need of quality regulatory compliance
assistance programs, but also programs that are uniformly
developed nationwide and targeted to small businesses.
An important aspect raised during the Committee's most
recent hearing is the technical expertise one must have to
understand each individual regulatory requirement. Providing
that knowledge to small businesses is as important, if not more
important, as providing advanced notice of any regulatory
requirement they must comply with. Therefore, we believe that
the purpose of this new pilot program is to establish an
initial contact that results in a referral to the appropriate
program or experts. It is our belief that the new pilot program
is required to utilize existing Federal or State compliance
assistance programs and avoid competing with them. Some of
these existing compliance assistance programs, such as those
created under Section 507 of the Clean Air Act Amendments (e.g.
EPA's State Small Business Assistance Program), have
established a level of expertise in compliance assistance and
provide invaluable technical assistance targeted to small
businesses. In addition, SBDCs must be careful in the type of
counseling they provide and the liability that can result from
such counseling.
During the Committee mark-up session, there was some
confusion on who would be receiving the grant awards. We concur
with the report language that directs the Administrator to
select two State SBDC programs from each of the ten SBA regions
across the nation. The State SBDC program, not an individual
center or subcenter, will receive the grant money to implement
the assistance statewide.
As introduced, H.R. 203, required assistance with only
Federal regulations. However, Congress often defers the
authority to promulgate and enforce Federal regulatory
requirements to the States. Therefore, small businesses must
also comply with regulations on the State level and many times,
these regulations either conflict or are even more stringent
and complicated than Federal regulations. A prime example is
EPA's TMDL regulations, where EPA promulgates the regulations
but States are given the authority to enforce those
regulations. Thus, States can also, and often do, promulgate
their own regulations to enforce the requirements under the
TMDL regulation. The Committee Democrats proposed and supported
an en bloc amendment to H.R. 203 in committee, containing
language that included assistance with State regulations within
the pilot program.
Democrats are also concerned with privacy protections.
During this day and age of new information technologies,
privacy protection is one of the most critical issues facing
all individuals, including small businesses. Although
confidentiality provisions were included in H.R. 203 as
introduced, these provisions applied only to participants of
the pilot program. Therefore, Democrats sought strong privacy
protections throughout the existing SBDC program.
Since its inception, privacy protections have been an
inviolate principle of the SBDC program. However, in recent
years, SBA began seeking the names and addresses of SBDC
clients. At first, the agency assured the SBDCs that the
information would be kept confidential, but later informed them
that the agency could not ensure the confidentiality of their
client information. This puts the SBDCs in a precarious
position for two important reasons.
First, each SBDC client signs a liability waiver when it
seeks SBDC assistance. As part of that waiver agreement, the
SBDC agrees to never disclose the identity of the client.
Therefore, this can create liability problems for the program
that could result in expensive litigation, not to mention the
possibility of large court imposed penalties and fines. Second,
and possibly the most important, is the loss of trust from
clients. SBDC assistance includes assisting small business who
struggle against Federal and State regulations that could lead
to possible investigations or penalties against the small
business owner. If the SBDC clients believe that their
identities will not be held in confidence, they will no longer
seek the assistance. This could potentially threaten the
success of the program and quite possibly terminate its
existence.
As a result, the en bloc amendment to H.R. 203, proposed
and supported by the Democrats, included language prohibiting
the SBDCs, or an agent of an SBDC, from disclosing the name or
address of any SBDC client. However, to ensure the integrity of
the program, these privacy protection provisions will not
pertain to financial auditors who must review each State SBDC
program.
In addition, we believe that fees must not be charged in
conjunction with this pilot project. Although the SBDCs are
permitted to charge fees under limited circumstances, one-on-
one counseling is provided free of charge. Current and past
Administrations have attempted to implement a fee-for-service
structure for SBDC services that are, and have been,
historically free. However, implementing such a structure would
not only be detrimental to the pilot program, but to the
overall SBDC program. Democrats have consistently opposed such
a move and will continue to oppose future attempts.
The proposal also establishes a repository and
clearinghouse for the information obtained by the SBDCs,
primarily to provide unbiased feedback to agencies and to
detect inconsistencies in information regarding compliance with
a regulation. This will also work to identify government-wide
trends in regulatory rulemaking and enforcement. This will
facilitate the ability of the agencies and Congress to improve,
not only compliance, but compliance assistance, on a
government-wide level.
This pilot program will be able to offer small businesses a
voluntary, confidential, and nonpunitive means in which to
obtain assistance in complying with the numerous regulations
that could determine the success or failure of their
businesses. By utilizing SBDCs as a delivery network, small
businesses will be able to obtain counseling, training, and
education, in an environment that is not perceived as
intimidating or threatening.
Nydia M. Velazquez.