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Interagency Committee on Women’s Business Enterprise Act of 2022

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Congressional materials
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Crpt 117Srpt104
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Crpt 117Srpt104

Summary

Senate Report 117–104 of the 117th Congress, 2d Session, submitted by Mr. Cardin from the Committee on Small Business and Entrepreneurship and ordered to be printed May 3, 2022, to accompany S. 2042, the Interagency Committee on Women’s Business Enterprise Act of 2022. The committee reports the bill favorably with an amendment in the nature of a substitute and recommends that it pass. The report recounts the history of the ICWBE since Executive Order #12138 in 1979 and states it has been inactive since 2000. It describes amendments to sections 402 and 403, including making the SBA Administrator the chairperson, and records a voice vote on February 15, 2022 with Senators Paul, Ernst, Hawley, and Marshall recorded as voting no. It closes with minority views of Senator Paul arguing the committee's revival is unnecessary.

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“Interagency Committee on Women’s Business Enterprise Act of 2022.” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/crpt-117srpt104/, SHA-256 e8925850c1f306acdf837015ba4cb42def9fa96f61e953414a65b57b5b1792c7.

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                                                                                                                                                 Calendar No. 279
                                                                               117TH CONGRESS                                                                    REPORT
                                                                                              "                              SENATE                         !
                                                                                  2d Session                                                                     117–104




                                                                                      INTERAGENCY COMMITTEE ON WOMEN’S BUSINESS
                                                                                                ENTERPRISE ACT OF 2022



                                                                                                             MAY 3, 2022.—Ordered to be printed




                                                                                        Mr. CARDIN, from the Committee on Small Business and
                                                                                              Entrepreneurship, submitted the following


                                                                                                                     R E P O R T
                                                                                                                          together with

                                                                                                                   MINORITY VIEWS

                                                                                                                    [To accompany S. 2042]

                                                                                 The Committee on Small Business and Entrepreneurship, to
                                                                               which was referred the bill (S. 2042) to reauthorize the Interagency
                                                                               Committee on Women’s Business Enterprise, and for other pur-
                                                                               poses, reports favorably thereon, with an amendment in the nature
                                                                               of a substitute, and recommends that the bill, as amended, do pass.
                                                                                                                         I. INTRODUCTION

                                                                                 A bill to reauthorize the Interagency Committee on Women’s
                                                                               Business Enterprise, (S. 2042) was introduced by Senators Tammie
                                                                               Duckworth, Tim Scott, Ben Cardin, and Susan Collins on June 14,
                                                                               2021.
                                                                                 This bill amends Title IV of the Women’s Business Ownership
                                                                               Act to reauthorize the Interagency Committee on Women Business
                                                                               Enterprise (ICWBE), in order to better provide assistance and de-
                                                                               crease barriers for women owned businesses.
                                                                                 During the markup of the bill, the Cardin substitute amendment
                                                                               was approved by a voice vote as part of a manager’s package. The
                                                                               Cardin substitute amends the bill in various ways including chang-
                                                                               ing the title from 2021 to 2022. Additionally, it clarifies that the
                                                                               ICWBE may use published research and policy independently de-




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                                                                               veloped by the National Women’s Business Council (Council). This
                                                                               ensures the Council and ICWBE maintain a working relationship
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                                                                               while also maintaining their independence of one another. The
                                                                               amendment also updates the list of participants on the ICWBE by
                                                                               replacing the Bureau of Labor Statistics and the Department of
                                                                               Homeland Security with the Minority Business Development Agen-
                                                                               cy and the Office of the Assistant Secretary for Indian Affairs of
                                                                               the Department of the Interior. The amendment designates the
                                                                               SBA Administrator to be the Chairperson of the ICWBE. This also
                                                                               eliminates the need for a vacancy provision as the President does
                                                                               not have to appoint a Chairperson. The amendment also updates
                                                                               the due date of the first annual report to September 30, 2022 and
                                                                               makes other technical changes. The bill, as amended, was also ap-
                                                                               proved by a voice vote as part of a manager’s package.
                                                                                                  II. HISTORY (PURPOSE & NEED FOR LEGISLATION)

                                                                                  Executive Order #12138 (The Order) established the ICWBE in
                                                                               1979. The Order served to acknowledge the impact women-owned
                                                                               small businesses and women entrepreneurs could play in the
                                                                               growth of the U.S. economy, recognition of the many obstacles
                                                                               women entrepreneurs faced at the time, and the need to aid and
                                                                               stimulate women’s business enterprise. The Order stated all Execu-
                                                                               tive Branch departments and agencies were to take actions to sup-
                                                                               port women-owned businesses, including by providing manage-
                                                                               ment, technical, financial, and procurement assistance, business-re-
                                                                               lated education training, counseling and information dissemination,
                                                                               and federal procurement opportunities. Congress codified and ex-
                                                                               panded upon the ICWBE by adopting the Small Business Adminis-
                                                                               tration Reauthorization and Amendments Act of 1994 (P.L. 103–
                                                                               403). Congress last reauthorized the ICWBE through the Small
                                                                               Business Administration Reauthorization Act of 1997 (P.L. 105–
                                                                               135).
                                                                                  The ICWBE’s work supplemented the efforts of several Federal
                                                                               agencies and departments in developing policies focused on assist-
                                                                               ing women business owners but the ICWBE has been inactive since
                                                                               2000 with no chairperson appointed to operate it.
                                                                                                             III. HEARINGS & ROUNDTABLES

                                                                                  In the 117th Congress the Committee held a hearing titled
                                                                               ‘‘Women Entrepreneurs: An Economic Growth Engine for America.’’
                                                                               The hearing highlighted the valuable contributions women entre-
                                                                               preneurs and small business owners make to the American econ-
                                                                               omy, underscored successes of female entrepreneurs and women-
                                                                               owned businesses achieved through private initiative and industri-
                                                                               ousness, and also identified barriers women face. Some of these
                                                                               barriers include child care, access to capital, finding mentors, and
                                                                               securing government contracts. The ICWBE was mentioned as one
                                                                               way to overcome these barriers and ensure women can participate
                                                                               in the economy on equal footing with their male counterparts.
                                                                                                                 IV. DESCRIPTION OF BILL

                                                                                 This bill, as amended, reauthorizes the Interagency Committee
                                                                               on Women Business Enterprise by amending Title IV of the Wom-




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                                                                               en’s Business Ownership Act of 1988. Under section 402(a) it adds
                                                                               a new duty for the ICWBE to monitor the plans, programs, and op-
                                                                               erations of the departments and agencies of the Federal Govern-




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                                                                               ment to identify barriers to new business formation by women en-
                                                                               trepreneurs, or barriers experienced by women-led startups in ac-
                                                                               cessing and participating in the plans, programs, and operations of
                                                                               the departments and agencies of the Federal Government. The bill
                                                                               amends section 402(b) to state that meetings of the ICWBE shall
                                                                               meet at the call of the executive director of the National Women’s
                                                                               Business Council or the chairperson of the ICWBE. The bill
                                                                               amends section 402(c) to clarify that when consulting with the
                                                                               Council, the ICWBE may use published research and policy inde-
                                                                               pendently developed by the Council to carry out its duties.
                                                                                 The bill amends section 403 to make the SBA Administrator and
                                                                               the executive director of the Council permanent members of the
                                                                               ICWBE. It also amends section 403 to add one representative each
                                                                               from NASA, EPA, OMB, MBDA, the Office of the Assistant Sec-
                                                                               retary for Indian Affairs of the Department of the Interior, and the
                                                                               VA to the ICWBE, and makes the SBA Administrator the chair-
                                                                               person.
                                                                                 Finally, the bill updates reporting requirements by changing
                                                                               dates from ‘‘1995’’ to ‘‘2022’’ and makes other technical corrections.
                                                                                                                    V. COMMITTEE VOTE

                                                                                 In compliance with rule XXVI (7)(b) of the Standing Rules of the
                                                                               Senate, the following vote was recorded on February 15, 2022.
                                                                                 A motion to adopt S. 2042, a bill to reauthorize the Interagency
                                                                               Committee on Women Business Enterprise, as amended by the
                                                                               Cardin substitute amendment, was agreed to by a majority voice
                                                                               vote of a quorum present as part of a manager’s package. Senators
                                                                               Paul, Ernst, Hawley, and Marshall asked to be recorded as voting
                                                                               no.
                                                                                                                    VI. COST ESTIMATE

                                                                                 The Committee has not yet received the Congressional Budget
                                                                               Office’s estimate of the cost of S. 2042 as ordered reported. When
                                                                               the Congressional Budget Office completes its cost estimate, it will
                                                                               be posted on the Internet at www.cbo.gov.
                                                                                                     VII. EVALUATION OF REGULATORY IMPACT

                                                                                  In compliance with rule XXVI (11)(b) of the Standing Rules of the
                                                                               Senate, it is the opinion of the Committee that no significant addi-
                                                                               tional regulatory impact will be incurred in carrying out the provi-
                                                                               sions of this legislation.
                                                                                                         VIII. SECTION-BY-SECTION ANALYSIS

                                                                               Section 1. Short title
                                                                                 This section designates the act as the ‘‘Interagency Committee on
                                                                               Women’s Business Enterprise Act of 2022’’.
                                                                               Sec. 2. Interagency Committee on Women’s Business Enterprise
                                                                                 This section reauthorizes the Interagency Committee on Women
                                                                               Business Enterprise (ICWBE). It adds a new duty for the ICWBE
                                                                               to monitor the plans, programs, and operations of the departments




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                                                                               and agencies of the Federal Government to identify barriers to
                                                                               women-led businesses in accessing and participating in government
                                                                               programs. Clarifies that meetings of the ICWBE shall meet at the




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                                                                                                                                    4

                                                                               call of the executive director of the National Women’s Business
                                                                               Council (Council) or the chairperson of the ICWBE, and that the
                                                                               ICWBE may use published research and policy independently de-
                                                                               veloped by the Council to carry out its duties.
                                                                                 The section also makes the SBA Administrator the chairperson
                                                                               of the ICWBE and add them and the executive director of the
                                                                               Council as permanent members. It adds one representative each
                                                                               from NASA, EPA, OMB, MBDA, the Office of the Assistant Sec-
                                                                               retary for Indian Affairs of the Department of the Interior, and the
                                                                               VA to the ICWBE. Finally, the section updates reporting require-
                                                                               ments and makes other technical corrections.
                                                                                                                   VIV. MINORITY VIEWS

                                                                               Minority Views of Senator Paul
                                                                                  In the ensuing decades since the creation of the ICWBE, women
                                                                               have made significant strides in our economy, though not as a re-
                                                                               sult of the ICWBE. The ICWBE has been inactive since 2000 but
                                                                               women are majority owners of nearly 40 percent of privately held
                                                                               firms. This represents a nearly 15 percent increase since 2007,
                                                                               after the ICWBE had ceased operations. Thankfully, female busi-
                                                                               ness ownership is growing at a rapid pace. The number of women-
                                                                               owned private firms is growing, not shrinking, rendering the pur-
                                                                               pose of the ICWBE counterintuitive at best and needless at worst.
                                                                                  The already-existing support infrastructure for female entre-
                                                                               preneurs makes reviving the ICWBE an unnecessary use of tax-
                                                                               payer dollars. Female entrepreneurs currently receive public sup-
                                                                               port from the federal government through special set-asides and
                                                                               services exclusive to female entrepreneurs and women-owned busi-
                                                                               nesses. For example, the federal government operates the Women-
                                                                               Owned Small Business (WOSB) Federal Contracting Program, pro-
                                                                               viding special access to federal contracts for WOSBs. Further, the
                                                                               Small Business Administration’s Office of Women’s Business Own-
                                                                               ership (OWBO) spends taxpayer dollars almost exclusively on
                                                                               women-owned businesses, providing services including but not lim-
                                                                               ited to entrepreneurial training, business counseling, as well as
                                                                               special access to credit and capital.
                                                                                  Historically, women faced unique barriers to owning and oper-
                                                                               ating businesses but the women entrepreneurs of today are on
                                                                               equal footing with male counterparts. This view was discussed in
                                                                               the 117th Congress on February 1, 2022 in a hearing entitled, ‘‘Re-
                                                                               view of SBA Entrepreneurial Development Programs and Initia-
                                                                               tives’’ during which Ms. Hannah Cox of the Foundation for Eco-
                                                                               nomic Education discussed the progress of female entrepreneurs,
                                                                               the successes of the businesses they own, and the manner in which
                                                                               the government itself often serves as a barrier to entrepreneurship
                                                                               for women and men alike. Women-owned small businesses have
                                                                               equal access to the full range of small business programs and face
                                                                               no barriers to obtaining private financing or technical assistance.




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                                                                               Therefore, reviving the ICWBE is an unnecessary endeavor which
                                                                               needlessly duplicates already-existing antiquated federal programs.
                                                                                                                                RAND PAUL,
                                                                                                                               Ranking Member.

                                                                                                                                Æ




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