Main Street Competes Act — House Report 118–222 (September 26, 2023)
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Summary
House Report 118-222, submitted September 26, 2023 by Mr. Williams of Texas from the Committee on Small Business in the 1st Session of the 118th Congress, to accompany H.R. 5424, the Main Street Competes Act, together with minority views. The Committee reports the bill favorably without amendment and records that it met in open session on September 14, 2023 and ordered H.R. 5424 reported, with no amendments offered at the markup. The report states that the bill would amend the Congressional Declaration of Small Business Economic Policy at 15 U.S.C. § 631a and require the Department of Justice and the Federal Trade Commission to report to the SBA Office of Advocacy on antitrust enforcement affecting small businesses, with Advocacy summarizing those reports to Congress. It notes that the bill was introduced September 13, 2023 and that a subcommittee hearing was held the same day.
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“Main Street Competes Act — House Report 118–222 (September 26, 2023).”
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118TH CONGRESS REPORT
" HOUSE OF REPRESENTATIVES !
1st Session 118–222
MAIN STREET COMPETES ACT
SEPTEMBER 26, 2023.—Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
Mr. WILLIAMS of Texas, from the Committee on Small Business,
submitted the following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 5424]
The Committee on Small Business, to whom was referred the bill
(H.R. 5424) to amend the Small Business Economic Policy Act of
1980 to examine how the competitiveness of small businesses is af-
fected by the enforcement of Federal antitrust laws, 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 ........................................................................ 2
II. Need for Legislation .................................................................................... 2
III. Hearings ....................................................................................................... 2
IV. Committee Consideration ........................................................................... 2
V. Committee Votes ......................................................................................... 2
VI. Section-by-Section of H.R. 5424 ................................................................. 5
VII. Congressional Budget Office Cost Estimate ............................................. 5
VIII. New Budget Authority, Entitlement Authority, and Tax Expenditures 5
IX. Oversight Findings & Recommendations .................................................. 5
X. Performance Goals and Objectives ............................................................ 6
XI. Statement of Duplication of Federal Programs ........................................ 6
XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits ..................................................................................................... 6
XIII. Federal Mandates Statement ..................................................................... 6
XIV. Federal Advisory Committee Statement ................................................... 6
XV. Applicability to Legislative Branch ........................................................... 6
XVI. Statement of Constitutional Authority ...................................................... 6
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XVII. Changes in Existing Law, Made by the Bill, As Reported ...................... 6
XVIII. Minority Views ............................................................................................ 11
39–006
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I. PURPOSE AND BILL SUMMARY
On September 13, 2023, Rep. Scholten, along with Representa-
tives Luetkemeyer, Velázquez, and Tenney, introduced H.R. 5424.
The purpose of H.R. 5424, the Main Street Competes Act, is to re-
quire the Small Business Administration (SBA) to study and report
on the extent that existing antitrust enforcement laws and regula-
tions protect small businesses’ ability to compete.
Specifically, the Department of Justice (DOJ) and the Federal
Trade Commission (FTC) must issue a report to the SBA’s Office
of Advocacy (Advocacy) on how antitrust laws are being enforced to
deter and remedy anticompetitive conduct that hurts small busi-
nesses. Advocacy must then evaluate these reports and submit a
subsequent report to Congress.
II. NEED FOR LEGISLATION
Currently, the SBA does not study the impact of anticompetitive
behavior on small businesses. Consolidation in industries ranging
from technology to agriculture has caused the market to be increas-
ingly dominated by big companies. Small businesses deserve an ad-
vocate to ensure that they can remain economically competitive.
III. HEARINGS
In the 118th Congress, the Committee held one hearing exam-
ining the issues covered in H.R. 5424. On September 13, 2023, the
Subcommittee on Economic Growth, Tax, and Capital Access held
a hearing titled ‘‘Enabling Success: Examining the Competitive
Landscape for Small Businesses.’’ During the hearing, witnesses
testified to the challenges small businesses are facing in today’s
regulatory and legal landscape. Further, the hearing discussed how
the current landscape poses a challenge for small businesses to re-
main competitive against their larger competitors.
IV. COMMITTEE CONSIDERATION
The Committee on Small Business met in open session, with a
quorum being present, on September 14, 2023, and ordered H.R.
5424 reported favorably to the House of Representatives. During
the markup no amendments were offered.
V. COMMITTEE VOTES
Clause 3(b) of rule XIII of the Rules of the House of Representa-
tives requires the Committee to list the recorded votes on the mo-
tion to report legislation and amendments thereto. The Committee
voted to favorably report H.R. 5424 to the House of Representatives
at 11:38 AM.
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VI. SECTION-BY-SECTION OF H.R. 5424
Section 1. Short title
This section cites the bill as the Main Street Competes Act.
Section 2. Congressional Declaration of Small Business Economic
Policy
This section amends the Congressional Declaration of Small
Business Economic Policy at 15 U.S.C. § 631a to include promoting
competitive markets, consumer choice, and business ownership
through enforcement of Federal antitrust laws when small busi-
nesses are harmed.
Section 3. State of small business
This section requires the DOJ and FTC to report to Advocacy on
how antitrust laws are being enforced to deter and remedy anti-
competitive conduct that hurts small businesses. It further requires
the Chief Counsel for Advocacy to submit a summary of these re-
ports to Congress.
VII. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE
Pursuant to clause 3(d)(1) of House rule XIII, the Committee
adopts as its own the cost estimate prepared by the Director of the
Congressional Budget Office pursuant to section 402 of the Con-
gressional Budget Act of 1974. The Committee has requested but
not received from the Director of the Congressional Budget Office
a cost estimate for the Committee’s provisions. Once available, the
cost estimate will be published in the Congressional Record.
VIII. NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX
EXPENDITURES
Pursuant to clause 3(c)(2) of rule XIII of the Rules of the House
of Representatives and section 308(a)(I) of the Congressional Budg-
et Act of 1974, the Committee provides the following opinion and
estimate with respect to new budget authority, entitlement author-
ity, and tax expenditures. While the Committee has not received an
estimate of new budget authority contained in the cost estimate
prepared by the Director of the Congressional Budget Office pursu-
ant to Sec. 402 of the Congressional Budget Act of 1974, the Com-
mittee does not believe that there will be any additional costs at-
tributable to this legislation. H.R. 5424 does not direct new spend-
ing, but instead reallocates funding independently authorized and
appropriated.
IX. OVERSIGHT FINDINGS & RECOMMENDATIONS
In accordance with clause 3(c)(1) of rule XIII and clause 2(b)(1)
of rule X of the Rules of the House of Representatives, the over-
sight findings and recommendations of the Committee on Small
Business with respect to the subject matter contained in H.R. 5424
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are incorporated into the descriptive portions of this report.
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X. PERFORMANCE GOALS AND OBJECTIVES
With respect to the requirements of clause 3(c)(1) of rule XIII of
the Rules of the House of Representatives, the performance goals
and objectives of H.R. 5424 are to require annual reports from the
DOJ and FTC on how antitrust laws are being enforced to deter
and remedy anticompetitive behavior that hurts small businesses.
Advocacy must then issue a report summarizing and evaluating
how effective agencies were in enforcing antitrust measures during
the previous fiscal year.
XI. STATEMENT OF DUPLICATION OF FEDERAL PROGRAMS
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the House
of Representatives, no provision of H.R. 5424 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
The Committee adopts as its own the estimate of Federal man-
dates prepared by the Director of the Congressional Budget Office
pursuant to section 423 of the Unfunded Mandates Reform Act.
XIV. FEDERAL ADVISORY COMMITTEE STATEMENT
No advisory committees within the meaning of section 5(b) of the
Federal Advisory Committee Act were created by this legislation.
XV. APPLICABILITY TO LEGISLATIVE BRANCH
The Committee finds that the legislation does not relate to the
terms and conditions of employment or access to public services or
accommodations within the meaning of section 102(b)(3) of the Con-
gressional Accountability Act.
XVI. STATEMENT OF CONSTITUTIONAL AUTHORITY
Pursuant to clause 7 of rule XII of the Rules of the House, the
Committee finds that the authority for this legislation in Art. I, § 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
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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,
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and existing law in which no change is proposed is shown in
roman):
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
In compliance with clause 3(e) of rule XIII of the Rules of the
House of Representatives, changes in existing law made by the bill,
as reported, are shown as follows (existing law proposed to be 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):
SMALL BUSINESS ECONOMIC POLICY ACT OF 1980
TITLE III—SMALL BUSINESS ECONOMIC POLICY
* * * * * * *
DECLARATION OF SMALL BUSINESS ECONOMIC POLICY
SEC. 302. (a) For the purpose of preserving and promoting a com-
petitive free enterprise economic system, Congress hereby declares
that it is the continuing policy and responsibility of the Federal
Government to use all practical means and to take such actions as
are necessary, consistent with its needs and obligations and other
essential considerations of national policy, to implement and coordi-
nate all Federal department, agency, and instrumentality policies,
programs, and activities in order to: foster the economic interests
of small businesses; insure a competitive economic climate condu-
cive to the development, growth and expansion of small businesses;
establish incentives to assure that adequate capital and other re-
sources at competitive prices are available to small businesses; re-
duce the concentration of economic resources and expand competi-
tion; øand provide¿ provide an opportunity for entrepreneurship,
inventiveness, and the creation and growth of small businessesø.¿;
and promote competitive markets, consumer choice, and business
ownership through enforcement of Federal antitrust laws in the case
of anticompetitive conduct that harms small businesses and the
growth of small businesses.
(b) Congress further declares that the Federal Government is
committed to a policy of utilizing all reasonable means, consistent
with the overall economic policy goals of the Nation and the
preserva- tion of the competitive free enterprise system of the Na-
tion, to establish private sector incentives that will help assure
that adequate capital at competitive prices is available to small
businesses. To fulfill this policy, departments, agencies, and instru-
mentalities of the Federal Government shall use all reasonable
means to coordinate, create, and sustain policies and programs
which promote investment in small businesses, including those in-
vestments which expand employment opportunities and which fos-
ter the effective and efficient use of human and natural resources
in the economy of the Nation.
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øSTATE OF SMALL BUSINESS
øSEC. 303. (a) The president shall transmit to the congress not
later than January 20 of each year a report on small business and
competition which shall—
ø(1) examine the current role of small business in the econ-
omy on an industry-by-industry basis;
ø(2) present current and historical data on production, em-
ployment, investment, population, job creation and retention,
annual business failures, annual business startups, and other
economic variables for small business in the economy as a
whole and for small business in each sector of the economy,
with, to the extent practicable, specific statistics divided as to
urban, suburban, and rural areas;
ø(3) identify economic trends which will or may affect the
small business sector and the state of competition;
ø(4) examine the effects on small business and competition
of policies, programs, and activities, including, but not limited
to the Internal Revenue Code, the Employee Retirement In-
come Security Act, the Securities Act of 1933, and the Securi-
ties Exchange Act of 1934, and regulations promulgated there-
under; identify problems generated by such policies, programs,
and activities; and recommend legislative and administrative
solutions to such problems; and
ø(5) recommend a program for carrying out the policy de-
clared in section 302 of this Act, together with such rec-
ommendations for legislation as he may deem necessary or de-
sirable.
ø(b) The President also shall transmit simultaneously as an ap-
pendix to such annual report, a report, by agency and department,
on the to total dollar value of all Federal contracts exceeding
$10,000 in amount and the dollar amount (including the sub-
contracts thereunder in excess of $10,000) awarded to small, minor-
ity-owned, female-owned, and veteran-owned businesses.
ø(c) The President may transmit from time to time to the Con-
gress Supplementary reports supplementary to the Report on Small
Business and Competition, each of which shall include such supple-
mentary or revised, recommendations as he may deem necessary or
desirable to achieve the policy declared in section 302 of this Act.
ø(d) The Report on Small Business and Competition and all sup-
plementary reports transmitted under subsections (b) and (c) of
this section shall, when transmitted to Congress, be referred to the
Senate Select Committee on Small Business and the Committee on
Small Business of the House of Representatives.
ø(e) The information and data required to be reported pursuant
to subsection (a) shall separately detail those portions of such infor-
mation and data that are relevant to—
ø(1) small business concerns owned and controlled by socially
and economically disadvantaged individuals, by gender, as de-
fined pursuant to section 8(d) of the Small Business Act;
ø(2) small business concerns owned and controlled by
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women; and
ø(3) qualified HUBZone small business concern (as defined
in section 3(p) of the Small Business Act).
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9
ø(3) small business concerns owned and controlled by vet-
erans, as defined in section 3(q) of the Small Business Act (15
U.S.C. 632(q)), and small business concerns owned and con-
trolled by service-disabled veterans, as defined in such section
3(q).¿
SEC. 303. REPORT ON THE STATE OF SMALL BUSINESS CONCERNS.
(a) SPECIFIED ENTITY REPORT.—Not later than 180 days after the
end of fiscal year 2023 and each fiscal year thereafter, the head of
each specified entity shall submit to the Chief Counsel for Advocacy
of the Office of Advocacy of the Small Business Administration a re-
port including—
(1) an analysis of how enforcement by the specified entity of
Federal antitrust laws promoted competition during the pre-
ceding fiscal year by deterring and remedying anticompetitive
conduct that harms small businesses and the growth of small
businesses;
(2) the number of complaints of alleged antitrust violations
filed by small businesses with the specified entity during such
fiscal year, disaggregated by category of the alleged antitrust
violation, type of offense, and the specific Federal antitrust laws
allegedly violated;
(3) the number of inquiries, investigations, and enforcement
actions undertaken by the specified entity in response to com-
plaints filed by small businesses with the specified entity dur-
ing such fiscal year; and
(4) the number of inquiries, investigations, and enforcement
actions undertaken by the specified entity during such fiscal
year pursuant to an alleged antitrust violation, opened for a
reason other than described in paragraph (3), to deter and rem-
edy anticompetitive conduct that harms small businesses and
the growth of small businesses.
(b) OFFICE OF ADVOCACY REPORT.—Not later than 180 days after
receipt of the report required by subsection (a), the Chief Counsel for
Advocacy shall submit to the Committee on Small Business of the
House of Representatives and the Committee on Small Business and
Entrepreneurship of Senate a report that includes—
(1) a summary of the report submitted under subsection (a);
(2) an analysis of the data in such report, disaggregated by
industry category;
(3) an evaluation of the issues identified in such report relat-
ing to—
(A) anticompetitive conduct that harmed small businesses
and the growth of small businesses; and
(B) administrative actions that promoted competition and
growth of small businesses;
(4) as appropriate, recommendations for administrative ac-
tions that could—
(A) promote competition;
(B) deter anticompetitive conduct that harmed small
business and the growth of small businesses; and
(C) remedy such anticompetitive conduct; and
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(5) as appropriate, recommendations for legislative actions
that could—
(A) promote competition;
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10
(B) deter anticompetitive conduct that harmed small
business and the growth of small businesses; and
(C) remedy such anticompetitive conduct.
SEC. 304. DEFINITIONS.
In this title:
(1) ANTITRUST VIOLATION.—The term ‘‘antitrust violation’’
means any violation of Federal antitrust laws.
(2) FEDERAL ANTITRUST LAWS.—The term ‘‘Federal antitrust
laws’’ has the meaning given the term ‘‘antitrust laws’’ in sub-
section (a) of the first section of the Clayton Act (15 U.S.C.
12(a)), except that such term shall also include section 5 of the
Federal Trade Commission Act (15 U.S.C. 45) to the extent that
such section 5 applies to unfair methods of competition.
(3) SMALL BUSINESS.—The term ‘‘small business’’ has the
meaning given ‘‘small business concern’’ under section 3 of the
Small Business Act (15 U.S.C. 632).
(4) SPECIFIED ENTITY.—The term ‘‘specified entity’’ means—
(A) the Department of Justice; and
(B) the Federal Trade Commission.
* * * * * * *
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XVIII. MINORITY VIEWS
The minority supports H.R. 5424, the Main Street Competes Act
of 2023. A competitive business environment is the lifeblood of a
thriving free enterprise economy, spurring innovation, driving pro-
ductivity, and fostering consumer choice at fair prices. America’s
main street businesses are a critical component of our economy,
and their success hinges on a competitive marketplace. Unfortu-
nately, this competitive landscape has been eroded for decades, as
large companies have broadly consolidated much of the economy.
Federal antitrust laws are critical tools protecting the competitive
environment, but their limited use in recent decades has contrib-
uted to the ongoing concentration of industries.
The SBA’s Office of Advocacy has a broad mandate to advocate
for small businesses within the federal government. Its primary
functions include the requirement to ‘‘recommend specific measures
for creating an environment in which all businesses will have the
opportunity to compete effectively and expand to their full poten-
tial.’’ Given its mandate, it is uniquely positioned to work with
antitrust enforcement bodies like the Federal Trade Commission
(FTC) and the Department of Justice (DOJ). While these agencies
have the power to enforce these laws, they may have the direct
input from small businesses necessary to make important decisions
on enforcement action. By fostering collaboration between these en-
forcement agencies and the Office of Advocacy, Congress can en-
sure the input of small businesses are considered and reaffirm the
Office of Advocacy’s commitment to being the voice for small busi-
nesses within the federal government.
The Committee has heard testimony on numerous occasions
about the importance of antitrust enforcement when it comes to
supporting main street. For instance, in March 2022, the Com-
mittee held a hearing called, ‘‘Competition and the Small Business
Landscape: Fair Competition and a Level Playing Field,’’ in which
members heard from experts about the value of antitrust for small
businesses.
Sincerely,
NYDIA M. VELÁZQUEZ,
Ranking Member.
Æ
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