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Small Business Advocacy Improvements Act of 2022

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Crpt 117Hrpt256
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Crpt 117Hrpt256

Summary

House Report 117-256, submitted March 7, 2022 by the Committee on Small Business in the 117th Congress, to accompany H.R. 6454, the Small Business Advocacy Improvements Act of 2022. It recommends that the bill pass without amendment and states its purpose is to make clear that the Small Business Administration's Office of Advocacy may examine international economic data and represent small business interests in international discussions, particularly trade negotiations. It records that the bill was introduced on January 20, 2022 and that the Committee ordered it favorably reported by voice vote on February 3, 2022. The section-by-section states that the bill amends Section 202 of Public Law 94-305 (15 U.S.C. § 634b) and Section 203(a) (15 U.S.C. § 634c). It notes that no Congressional Budget Office cost estimate had been received.

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                                      117TH CONGRESS                                                                                           REPORT
                                                     " HOUSE OF REPRESENTATIVES                                                        !
                                         2d Session                                                                                            117–256




                                           SMALL BUSINESS ADVOCACY IMPROVEMENTS ACT OF
                                                               2022


                                       MARCH 7, 2022.—Committed to the Committee of the Whole House on the State of
                                                         the Union and ordered to be printed



                                                Ms. VELÁZQUEZ, from the Committee on Small Business,
                                                               submitted the following


                                                                                      R E P O R T
                                                                                  [To accompany H.R. 6454]

                                        The Committee on Small Business, to whom was referred the bill
                                      (H.R. 6454) to clarify the primary functions and duties of the Office
                                      of Advocacy of the Small Business Administration, and for other
                                      purposes, having considered the same, reports favorably thereon
                                      without amendment and recommends that the bill do pass.
                                                                                             CONTENTS
                                                                                                                                                                 Page
                                           I. Purpose and Bill Summary ........................................................................                    1
                                          II. Background and Need for Legislation .......................................................                          2
                                         III. Hearings .......................................................................................................     2
                                         IV. Committee Consideration ...........................................................................                   2
                                          V. Committee Votes .........................................................................................             3
                                         VI. Section-by-Section for H.R. 6454 ...............................................................                      3
                                        VII. Congressional Budget Cost Estimate ........................................................                           3
                                       VIII. New Budget Authority, Entitlement Authority, and Tax Expenditures                                                     3
                                         IX. Committee Oversight Findings and Recommendations ...........................                                          3
                                          X. Statement of General Performance Goals and Objectives .......................                                         4
                                         XI. Duplication of Federal Programs ...............................................................                       4
                                        XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
                                                Benefits .....................................................................................................     4
                                       XIII. Federal Mandates Statement .....................................................................                      4
                                        XIV. Federal Advisory Committee Statement ...................................................                              4
                                         XV. Applicability to Legislative Branch ...........................................................                       4
                                        XVI. Constitutional Authority Statement ..........................................................                         4
                                       XVII. Changes in Existing Law Made by the Bill, as Reported ........................                                        4

                                                                        I. PURPOSE AND BILL SUMMARY
                                        The purpose of H.R. 6454, the ‘‘Small Business Advocacy Im-
                                      provements Act of 2022,’’ is to make clear that the U.S. Small Busi-
                                      ness Administration’s (SBA) Office of Advocacy has the authority
                                            29–006




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                                      to examine international economic data, and represent small busi-
                                      ness interests in international discussions, particularly in trade ne-
                                      gotiations.
                                                         II. BACKGROUND AND NEED FOR LEGISLATION
                                         H.R. 6454 was introduced by Ranking Member Blaine Luetke-
                                      meyer (R–MO) and Representative Troy Carter (D–LA) on January
                                      20, 2022.
                                         Established in 1976, SBA’s Office of Advocacy (Advocacy) is the
                                      independent voice for small businesses within the federal govern-
                                      ment. Advocacy is also charged with overseeing the Regulatory
                                      Flexibility Act (RFA) 1 and is a source of small business statistics
                                      and research.2 Advocacy’s creation was premised on the belief that
                                      small businesses need representation in the legislative, regulatory,
                                      and administrative processes of government that affect them and
                                      that good policy requires good information.3 Advocacy works to ad-
                                      vance the views and concerns of small businesses before Congress,
                                      the White House, federal agencies, federal courts, and state policy-
                                      makers.4
                                         Every year, Advocacy reports to Congress and the Administration
                                      on agency compliance with the RFA and releases more than 20 re-
                                      search publications annually.5 Over the years, Advocacy’s respon-
                                      sibilities have expanded through the enactment of the Small Busi-
                                      ness Regulatory Enforcement Fairness Act of 1996 6 and Trade Fa-
                                      cilitation and Trade Enforcement Act of 2015.7
                                         Since 2012, Advocacy has participated in a number of inter-
                                      national regulatory cooperation and international trade initiatives
                                      that have impacted small businesses. Their ability to conduct out-
                                      reach to small business sectors and examine the potential economic
                                      effects of agreements on small businesses can help level the playing
                                      field for small businesses, and in turn, open vast new markets for
                                      smaller firms.
                                                                                III. HEARINGS
                                         While multiple hearings have been held by the Committee over
                                      the past several years exploring the Office of Advocacy’s role in the
                                      representing the small business community, no specific hearings in
                                      the 117th Congress have been held to explore reforms to SBA’s Of-
                                      fice of Advocacy.
                                                                    IV. COMMITTEE CONSIDERATION
                                        The Committee on Small Business met in open session, with a
                                      quorum being present, on February 3, 2022, and ordered H.R. 6454
                                      favorably reported to the House of Representatives. During the
                                      markup, no amendments were offered.
                                           1 Pub. L. No. 96–354.
                                        2 About, The Small Business Administration Office of Advocacy, https://advocacy.sba.gov/
                                      about/.
                                        3 Small Business Administration Office of Advocacy, Background Paper Office of Advocacy
                                      2017-2020, 20, (2021) https://cdn.advocacy.sba.gov/wp-content/uploads/2021/02/09101916/Back-
                                      ground-Paper-Office-of-Advocacy-2017-2020-web.pdf. [hereinafter ‘‘Advocacy Backgrounder’’]
                                        4 About, The Small Business Administration Office of Advocacy, https://advocacy.sba.gov/
                                      about/.
                                        5 Id.
                                        6 Pub. L. No. 104–121.
                                        7 Pub. L. No. 114–125.




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                                                                         V. COMMITTEE VOTES
                                         Clause 3(b) of rule XIII of the Rules of the House of Representa-
                                      tives requires the Committee to list the recorded votes on the mo-
                                      tion to report legislation and amendments thereto. The Committee
                                      voted by voice vote to favorably report H.R. 6454 to the House at
                                      10:49 A.M.
                                                            VI. SECTION-BY-SECTION FOR H.R. 6454
                                      Section 1. Short title
                                        This Act may be cited as the ‘‘Small Business Advocacy Improve-
                                      ments Act of 2022’’.
                                      Section 2. Amendment to primary functions and duties of the Office
                                           of Advocacy of the Small Business Administration
                                         Subsection (a)—Primary Functions.
                                         This subsection makes technical amendments to Section 202 of
                                      Public Law 94–305 (15 U.S.C. § 634b) and adds a requirement that
                                      the Office of Advocacy examine the role of American small busi-
                                      nesses in the international economy.
                                         Subsection (b)—Duties.
                                         This subsection amends Section 203(a) of Public Law 94–305 (15
                                      U.S.C. § 634c) to require the Office of Advocacy to represent the
                                      views and interests of American small businesses to foreign govern-
                                      ments and international entities on any regulatory and trade ini-
                                      tiatives.
                                                        VII. CONGRESSIONAL BUDGET COST ESTIMATE
                                        The Committee has requested but not received a cost estimate
                                      from the Director of the Congressional Budget Office.
                                      VIII. NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX
                                                            EXPENDITURES
                                        Pursuant to clause 3(c)(2) of rule XIII of the Rules of the House
                                      of Representatives and section 308(a) of the Congressional Budget
                                      Act of 1974, the Committee provides the following opinion and esti-
                                      mate with respect to new budget authority, entitlement authority,
                                      and tax expenditures. While the Committee has not received an es-
                                      timate of new budget authority contained in the cost estimate pre-
                                      pared by the Director of the Congressional Budget Office pursuant
                                      to Sec. 402 of the Congressional Budget Act of 1974, the Committee
                                      does not believe that there will be any additional costs attributable
                                      to this legislation. H.R. 6454 does not direct new spending, but in-
                                      stead reallocates funding independently authorized and appro-
                                      priated.
                                           IX. COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS
                                        In accordance with clause 3(c)(1) of rule XIII and clause 2(b)(1)
                                      of rule X of the Rules of the House of Representatives, the over-
                                      sight findings and recommendations of the Committee on Small
                                      Business with respect to the subject matter contained in the H.R.
                                      6454 are incorporated into the descriptive portions of this report.




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                                                                                           4

                                       X. STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES
                                        With respect to the requirements of clause 3(c)(4) of rule XIII of
                                      the Rules of the House of Representatives, the performance goals
                                      and objectives of H.R. 6454 is to make it easier for small business
                                      voices to be heard on the international stage.
                                                            XI. DUPLICATION OF FEDERAL PROGRAMS
                                        Pursuant to clause 3(c)(5) of rule XIII of the Rules of the House
                                      of Representatives, no provision of H.R. 6454 is known to be dupli-
                                      cative 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 As-
                                      sistance.
                                           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 con-
                                      tain any congressional earmarks, limited tax benefits, or limited
                                      tariff benefits as defined in clause 9(e), 9(f), or 9(g) of rule XXI of
                                      the Rules of the House of Representatives.
                                                              XIII. FEDERAL MANDATES STATEMENT
                                        An estimate of Federal mandates prepared by the Director of the
                                      Congressional Budget Office pursuant to section 423 of the Un-
                                      funded Mandates Reform Act was not made available to the Com-
                                      mittee in time for the filing of this report. The Chairwoman of the
                                      Committee shall cause such estimate to be printed in the Congres-
                                      sional Record upon its receipt by the Committee.
                                                        XIV. FEDERAL ADVISORY COMMITTEE STATEMENT
                                        No advisory committees within the meaning of section 5(b) of the
                                      Federal Advisory Committee Act were created by this legislation.
                                                          XV. APPLICABILITY TO LEGISLATIVE BRANCH
                                        The Committee finds that the legislation does not relate to the
                                      terms and conditions of employment or access to public services or
                                      accommodations within the meaning of section 102(b)(3) of the Con-
                                      gressional Accountability Act.
                                                         XVI. CONSTITUTIONAL AUTHORITY STATEMENT
                                        Pursuant to clause 7 of rule XII of the Rules of the House of Rep-
                                      resentatives, the Committee finds the authority for this legislation
                                      in Art. I, § 8, cl. 1 of the Constitution of the United States.
                                       XVII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
                                        In compliance with clause 3(e) of rule XIII of the Rules of the
                                      House of Representatives, changes in existing law made by the bill,
                                      as reported, as shown as follows: existing law proposed to be omit-
                                      ted is enclosed in black brackets, new matter is printed in italic,
                                      and existing law in which no change is proposed is shown in
                                      roman:




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                                            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 omit-
                                      ted is enclosed in black brackets, new matter is printed in italics,
                                      and existing law in which no change is proposed is shown in
                                      roman):

                                                                       ACT OF JUNE 4, 1976
                                                                               (Public Law 94-305)

                                      AN ACT To amend the Small Business Act and Small Business Investment Act of
                                       1958 to provide additional assistance under such Acts, to create a pollution control
                                       financing program for small business, and for other purposes.

                                                  *           *            *               *           *          *          *
                                                         TITLE II—STUDY OF SMALL BUSINESS
                                                  *           *            *               *           *          *          *
                                                                                     STUDY

                                        SEC. 202. The primary functions of the Office of Advocacy shall
                                      be to—
                                             (1) examine the role of small business in the American econ-
                                          omy and the international economy and the contribution which
                                          small business can make in improving competition, encour-
                                          aging economic and social mobility for all citizens, restraining
                                          inflation, spurring production, expanding employment opportu-
                                          nities, increasing productivity, promoting exports, stimulating
                                          innovation and entrepreneurship, and providing an avenue
                                          through which new and untested products and services can be
                                          brought to the marketplace;
                                             (2) assess the effectiveness of existing Federal subsidy and
                                          assistance programs for small business and the desirability of
                                          reducing the emphasis on such existing programs and increas-
                                          ing the emphasis on general assistance programs designed to
                                          benefit all small businesses;
                                             (3) measure the direct costs and other effects of government
                                          regulation on small business; and make legislative and non-
                                          legislative proposals for eliminating excessive or unnecessary
                                          regulations of small businesess;
                                             (4) determine the impact of the tax structure on small busi-
                                          nesses and make legislative and other proposals for altering
                                          the tax structure to enable all small businesses to realize their
                                          potential for contributing to the improvement of the Nation’s
                                          economic well-being;
                                             (5) study the ability of financial markets and institutions to
                                          meet small business credit needs and determine the impact of
                                          government demands for credit on small businesses;
                                             (6) determine financial resource availability and to rec-
                                          ommend methods for delivery of financial assistance to minor-
                                          ity enterprises, including methods for securing equity capital,
                                          for generating markets for goods and services, for providing ef-
                                          fective business education, more effective management and




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                                             technical assistance, and training, and for assistance in com-
                                             plying with Federal, State, and local law;
                                                (7) evaluate the efforts of Federal agencies, business and in-
                                             dustry to assist minority enterprises;
                                                (8) make such other recommendations as may be appropriate
                                             to assist the development and strengthening of minority and
                                             other small business enterprises;
                                                (9) recommend specific measures for creating an environ-
                                             ment in which all businesses will have the opportunity to
                                             øcomplete¿ compete effectively and expand to their full poten-
                                             tial, and to ascertain the common reasons, if any, for small
                                             business successes and failures;
                                                (10) determine the desirability of developing a set of rational,
                                             objective criteria to be used to define small business, and to de-
                                             velop such criteria, if appropriate.
                                                (11) advise, cooperate with, and consult with, the Chairman
                                             of the Administrative Conference of the United States with re-
                                             spect to section 504(e) of title 5 of the United States Code; and
                                                (12) evaluate the efforts of each department and agency of
                                             the United States, and of private industry, to assist small busi-
                                             ness concerns owned and controlled by veterans, as defined in
                                             section 3(q) of the Small Business Act (15 U.S.C. 632(q)), and
                                             small business concerns owned and controlled by øserviced-dis-
                                             abled¿ service-disabled veterans, as defined in such section
                                             3(q), and to provide statistical information on the utilization of
                                             such programs by such small business concerns, and to make
                                             appropriate recommendations to the Administrator of the
                                             Small Business Administration and to the Congress in order to
                                             promote the establishment and growth of those small business
                                             concerns.
                                                                                   DUTIES

                                         SEC. 203.
                                         (a) IN GENERAL.—The Office of Advocacy shall also perform the
                                      following duties on a continuing basis:
                                              (1) serve as a focal point for the receipt of complaints, criti-
                                           cisms, and suggestions concerning the policies and activities of
                                           the Administration and any other Federal agency which affects
                                           small businesses;
                                              (2) counsel small businesses on how to resolve questions and
                                           problems concerning the relationship of the small business to
                                           the Federal Government;
                                              (3) develop proposals for changes in the policies and activi-
                                           ties of any agency of the Federal Government which will better
                                           fulfill the purposes of the Small Business Act and communicate
                                           such proposals to the appropriate Federal agencies;
                                              (4) represent the views and interests of small businesses be-
                                           fore other Federal agencies whose policies and activities may
                                           affect small business;
                                              (5) enlist the cooperation and assistance of public and pri-
                                           vate agencies, businesses, and other organizations in dissemi-
                                           nating information about the programs and services provided
                                           by the Federal Government which are of benefit to small busi-
                                           nesses, and information on how small businesses can partici-
                                           pate in or make use of such programs and services; øand¿




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                                                                                          7

                                            (6) carry out the responsibilities of the Office of Advocacy
                                          under chapter 6 of title 5, United States Codeø.¿; and
                                            (7) represent the views and interests of small businesses be-
                                          fore foreign governments and international entities for the pur-
                                          pose of contributing to regulatory and trade initiatives which
                                          may affect small businesses.
                                        (b) OUTREACH AND INPUT FROM SMALL BUSINESSES ON TRADE
                                      PROMOTION AUTHORITY.—
                                            (1) DEFINITIONS.—In this subsection—
                                                  (A) the term ‘‘agency’’ has the meaning given the term
                                               in section 551 of title 5, United States Code;
                                                  (B) the term ‘‘Chief Counsel for Advocacy’’ means the
                                               Chief Counsel for Advocacy of the Small Business Admin-
                                               istration;
                                                  (C) the term ‘‘covered trade agreement’’ means a trade
                                               agreement being negotiated pursuant to section 103(b) of
                                               the Bipartisan Congressional Trade Priorities and Ac-
                                               countability Act of 2015 (Public Law 114–26; 19 U.S.C.
                                               4202(b)); and
                                                  (D) the term ‘‘Working Group’’ means the Interagency
                                               Working Group convened under paragraph (2)(A).
                                            (2) WORKING GROUP.—
                                                  (A) IN GENERAL.—Not later than 30 days after the date
                                               on which the President submits the notification required
                                               under section 105(a) of the Bipartisan Congressional Trade
                                               Priorities and Accountability Act of 2015 (Public Law 114–
                                               26; 19 U.S.C. 4204(a)), the Chief Counsel for Advocacy
                                               shall convene an Interagency Working Group, which shall
                                               consist of an employee from each of the following agencies,
                                               as selected by the head of the agency or an official dele-
                                               gated by the head of the agency:
                                                       (i) The Office of the United States Trade Represent-
                                                    ative.
                                                       (ii) The Department of Commerce.
                                                       (iii) The Department of Agriculture.
                                                       (iv) Any other agency that the Chief Counsel for Ad-
                                                    vocacy, in consultation with the United States Trade
                                                    Representative, determines to be relevant with respect
                                                    to the subject of the covered trade agreement.
                                                  (B) VIEWS OF SMALL BUSINESSES.—Not later than 30
                                               days after the date on which the Chief Counsel for Advo-
                                               cacy convenes the Working Group under subparagraph (A),
                                               the Chief Counsel for Advocacy shall identify a diverse
                                               group of small businesses, representatives of small busi-
                                               nesses, or a combination thereof, to provide to the Working
                                               Group the views of small businesses in the manufacturing,
                                               services, and agriculture industries on the potential eco-
                                               nomic effects of the covered trade agreement.
                                            (3) REPORT.—
                                                  (A) IN GENERAL.—Not later than 180 days after the date
                                               on which the Chief Counsel for Advocacy convenes the
                                               Working Group under paragraph (2)(A), the Chief Counsel
                                               for Advocacy shall submit to the Committee on Small Busi-
                                               ness and Entrepreneurship and the Committee on Finance
                                               of the Senate and the Committee on Small Business and




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                                                   the Committee on Ways and Means of the House of Rep-
                                                   resentatives a report on the economic impacts of the cov-
                                                   ered trade agreement on small businesses, which shall—
                                                          (i) identify the most important priorities, opportuni-
                                                       ties, and challenges to various industries from the cov-
                                                       ered trade agreement;
                                                          (ii) assess the impact for new small businesses to
                                                       start exporting, or increase their exports, to markets
                                                       in countries that are parties to the covered trade
                                                       agreement;
                                                          (iii) analyze the competitive position of industries
                                                       likely to be significantly affected by the covered trade
                                                       agreement;
                                                          (iv) identify—
                                                                (I) any State-owned enterprises in each country
                                                             participating in negotiations for the covered trade
                                                             agreement that could pose a threat to small busi-
                                                             nesses; and
                                                                (II) any steps to take to create a level playing
                                                             field for those small businesses;
                                                          (v) identify any rule of an agency that should be
                                                       modified to become compliant with the covered trade
                                                       agreement; and
                                                          (vi) include an overview of the methodology used to
                                                       develop the report, including the number of small
                                                       business participants by industry, how those small
                                                       businesses were selected, and any other factors that
                                                       the Chief Counsel for Advocacy may determine appro-
                                                       priate.
                                                     (B) DELAYED SUBMISSION.—To ensure that negotiations
                                                   for the covered trade agreement are not disrupted, the
                                                   President may require that the Chief Counsel for Advocacy
                                                   delay submission of the report under subparagraph (A)
                                                   until after the negotiations for the covered trade agree-
                                                   ment are concluded, provided that the delay allows the
                                                   Chief Counsel for Advocacy to submit the report to Con-
                                                   gress not later than 45 days before the Senate or the
                                                   House of Representatives acts to approve or disapprove the
                                                   covered trade agreement.
                                                     (C) AVOIDANCE OF DUPLICATION.—The Chief Counsel for
                                                   Advocacy shall, to the extent practicable, coordinate the
                                                   submission of the report under this paragraph with the
                                                   United States International Trade Commission, the United
                                                   States Trade Representative, other agencies, and trade ad-
                                                   visory committees to avoid unnecessary duplication of re-
                                                   porting requirements.
                                                  *           *            *              *           *          *          *

                                                                                          Æ




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