Assurance for Small Business Act of 2024
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- Crpt 118Hrpt853
Summary
House Report 118-853, Part 1, ordered printed December 10, 2024 and submitted by Mr. Williams of Texas from the Committee on Small Business, together with minority views, to accompany H.R. 9031, the Assurance for Small Business Act of 2024. The committee reports the bill favorably without amendment. The report states that the bill would require the head of each rulemaking agency to report to Congress within 90 days of enactment on how it applies the Regulatory Flexibility Act, including its definitions of significant economic impact and substantial number of small entities and the factors it considers. It records a May 22, 2024 hearing and a September 10, 2024 markup at which no amendments were offered, and includes a Congressional Budget Office table covering H.R. 9031 and related bills. The minority views question whether the reports could be completed within 90 days.
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“Assurance for Small Business Act of 2024.”
Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/crpt-118hrpt853/
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118TH CONGRESS REPT. 118–853
" HOUSE OF REPRESENTATIVES !
2d Session Part 1
ASSURANCE FOR SMALL BUSINESS ACT OF 2024
DECEMBER 10, 2024.—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. 9031]
[Including cost estimate of the Congressional Budget Office]
The Committee on Small Business, to whom was referred the bill
(H.R. 9031) to require Federal agency heads to submit a report on
the implementation of the Regulatory Flexibility Act, 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. 9031 ................................................................. 5
VII. Congressional Budget Office Cost Estimate ............................................. 5
VIII. New Budget Authority, Entitlement Authority, and Tax Expenditures 8
IX. Oversight Findings & Recommendations .................................................. 8
X. Performance Goals and Objectives ............................................................ 8
XI. Statement of Duplication of Federal Programs ........................................ 8
XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits ..................................................................................................... 8
XIII. Federal Mandates Statement ..................................................................... 8
XIV. Federal Advisory Committee Statement ................................................... 8
XV. Applicability to Legislative Branch ........................................................... 8
XVI. Statement of Constitutional Authority ...................................................... 9
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XVII. Minority Views ............................................................................................ 10
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I. PURPOSE AND BILL SUMMARY
On July 15, 2024, Rep. Stauber introduced H.R. 9031. The pur-
pose of H.R. 9031, the ‘‘Assurance for Small Business Act,’’ is to re-
quire all rulemaking agencies to issue a report to Congress on how
they define a significant economic impact on a substantial number
of small entities.
II. NEED FOR LEGISLATION
There is not a standard definition of a significant economic im-
pact on a substantial number of small entities across the federal
government because every agency and the rules they issue are dif-
ferent. However, individual agencies use varying definitions when
considering a rule’s impact to fit their own narrative. Since every
agency uses their own unique analysis to determine what qualifies
as a significant economic impact, it makes oversight extremely dif-
ficult. While we understand that one single government wide defi-
nition may not be practical in every situation, we must at least un-
derstand the baseline of any given agency for the Committee to
evaluate if they did follow the spirit of the law or are ignoring it.
This bill will require all rulemaking agencies to issue a report to
Congress on how they determine a significant economic impact on
a substantial number of small entities so that it is easier to hold
them to account.
III. HEARINGS
In the 118th Congress, the Committee held one hearing exam-
ining the issues covered in H.R. 9031. On May 22, 2024, the Com-
mittee held a hearing titled ‘‘Burdensome Regulations: Examining
the Biden Administration’s Failure to Consider Small Businesses’’
which examined the impacts of the Biden Administration’s burden-
some regulatory landscape and explored ways to support small
businesses and overcome agencies’ noncompliance with the RFA.
IV. COMMITTEE CONSIDERATION
The Committee on Small Business met in open session, with a
quorum being present, on September 10, 2024 and ordered H.R.
9031 reported 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. 9031 to the House of Representatives
at 2:42 PM.
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VI. SECTION-BY-SECTION OF H.R. 9031
Section 1: Short title
The bill may be cited as the ‘‘Assurance for Small Business Act.’’
Section 2: Report on implementation of the Regulatory Flexibility
Act
Requires the head of each agency which issues rules to submit
a report describing how they apply the RFA within 90 days of en-
actment. The report shall include the agencies’ definition of ‘‘sig-
nificant economic impact’’ and ‘‘substantial number of small enti-
ties’’, and a comprehensive list of factors considered when applying
these terms.
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 Congressional Budget Act of 1974 requires the Congressional
Budget Office, to the extent practicable, to prepare estimates of the
budgetary effects of legislation ordered reported by Congressional
authorizing committees. In order to provide the Congress with as
much information as possible, the attached table summarizes infor-
mation about the estimated direct spending and revenue effects of
some of the legislation that has been ordered reported by the
House Committee on Small Business during the 118th Congress.
The legislation listed in this table generally would have small ef-
fects, if any, on direct spending or revenues, CBO estimates. Where
possible, the table also provides information about the legislation’s
estimated effects on spending subject to appropriation and on inter-
governmental and private-sector mandates as defined in the Un-
funded Mandates Reform Act.
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ESTIMATED BUDGETARY EFFECTS AND MANDATES INFORMATION
Direct Spending subject Pay-As-You-Go Budgetary
Last Budget Revenues,
Bill number Title Status spending, to appropriation, procedures effects after Mandates Contact
action function 2025–2034
Jkt 059006 2025–2034 2025–2029 apply? 2034
H.R. 9030 Regulatory Agenda Clarity Act ....... Ordered reported 09/10/24 Multiple Between Between Not estimated Yes Insignificant Yes Margot Berman
functions zero and ¥$500,000
$500,000 and zero
PO 00000 H.R. 9030 would require federal agencies to describe the type of business that would be affected by a proposed rule, explain whether the rule would impose significant economic effects on a sub-
stantial number of small entities, and display that information on their website. CBO estimates that enacting H.R. 9030 could increase direct spending by some regulatory agencies, a few of which
are allowed to charge fees to cover their operating costs. CBO estimates that the net increase in direct spending would be insignificant. Enacting H.R. 9030 could reduce revenues because costs in-
curred by the Federal Reserve reduce remittances to the Treasury, which are recorded in the budget as revenues. However, CBO estimates that any reduction in revenues would be insignificant. CBO
has not estimated the bill’s effects on spending subject to appropriation. If federal regulators increase annual fees to offset the costs of implementing the bill, H.R. 9030 would increase the costs of
an existing private-sector mandate on entities required to pay those fees. CBO estimates that the incremental cost of the mandate would be small and would fall well below the annual threshold es-
Frm 00006
tablished in the Unfunded Mandates Reform Act (UMRA) for private-sector mandates ($200 million in 2024, adjusted annually for inflation). The bill contains no intergovernmental mandates as de-
fined in UMRA.
H.R. 9031 Assurance for Small Business Act Ordered reported 09/10/24 Multiple Between Between Not estimated Yes Insignificant Yes Margot Berman
Fmt 6659 of 2024. functions zero and ¥$500,000
$500,000 and zero 6
H.R. 9031 would require each rulemaking agency to report to the Congress on how the agency determines whether a rule would impose significant economic effects on a substantial number of small
entities. Enacting H.R. 9031 could increase direct spending by some regulatory agencies, a few of which are allowed to charge fees to cover their operating costs. CBO estimates that the net in-
Sfmt 6602 crease in direct spending would be insignificant. Enacting H.R. 9031 could reduce revenues because costs incurred by the Federal Reserve reduce remittances to the Treasury, which are recorded in
the budget as revenues. However, CBO estimates that any reduction in revenues would be insignificant. CBO has not estimated the bill’s effects on spending subject to appropriation. If federal regu-
lators increase annual fees to offset the costs of implementing the bill, H.R. 9031 would increase the costs of an existing private-sector mandate on entities required to pay those fees. CBO esti-
mates that the incremental cost of the mandate would be small and would fall well below the annual threshold established in the Unfunded Mandates Reform Act (UMRA) for private-sector man-
dates ($200 million in 2024, adjusted annually for inflation). The bill contains no intergovernmental mandates as defined in UMRA.
H.R. 9033 LABOR Act of 2024 ........................ Ordered reported 09/10/24 500 0 0 Not estimated No No No Margot Berman
H.R. 9033 would require the Department of Labor to convene a small business advocacy review panel before proposing rules that would have significant economic effects on a substantial number of
small entities. Under current law, only the Occupational Safety and Health Administration within the Department of Labor is required to do so. CBO estimates that enacting H.R. 9033 would not af-
fect direct spending or revenues. CBO has not estimated the bill’s effects on spending subject to appropriation. The bill contains no intergovernmental or private-sector mandates as defined in the
Unfunded Mandates Reform Act.
H.R. 9085 Regulatory Review Improvement Ordered reported 09/10/24 Multiple Between Between Not estimated Yes Insignificant Yes Margot Berman
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Act of 2024. functions zero and ¥$500,000
$500,000 and zero
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H.R. 9085 would expand the information that agencies must include in a 10-year review of a rule’s effect on small entities, including the cost for entities to comply with the rule once it goes into
effect and an analysis of public comments an agency receives about the rule. The bill also would reduce the time from 5 years to 1 year for an agency to complete a review. CBO estimates that en-
acting H.R. 9085 could increase direct spending by some agencies, a few of which are allowed to charge fees to cover their operating costs. CBO estimates that the net increase in direct spending
would be insignificant. Enacting H.R. 9085 could reduce revenues because costs incurred by the Federal Reserve reduce remittances to the Treasury, which are recorded in the budget as revenues.
Jkt 059006 However, CBO estimates that any reduction in revenues would be insignificant. CBO has not estimated the bill’s effects on spending subject to appropriation. If federal regulators increase annual
fees to offset the costs of implementing the bill, H.R. 9085 would increase the costs of an existing private-sector mandate on entities required to pay those fees. CBO estimates that the incremental
cost of the mandate would be small and would fall well below the annual threshold established in the Unfunded Mandates Reform Act (UMRA) for private-sector mandates ($200 million in 2024, ad-
justed annually for inflation). The bill contains no intergovernmental mandates as defined in UMRA.
PO 00000
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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. The Committee does not believe that
there will be any additional costs attributable to this legislation.
H.R. 9031 does not direct new spending, but instead reallocates
funding independently authorized and appropriated.
IX. OVERSIGHT FINDINGS & RECOMMENDATIONS
In accordance with clause 3(c)(1) of rule XIII and clause 2(b)(1)
of rule X of the Rules of the House of Representatives, the over-
sight findings and recommendations of the Committee on Small
Business with respect to the subject matter contained in the H.R.
9031 are incorporated into the descriptive portions of this report.
X. PERFORMANCE GOALS AND OBJECTIVES
With respect to the requirements of clause 3(c)(1) of rule XIII of
the Rules of the House of Representatives, the performance goals
and objectives of H.R. 9031 are to require rulemaking agencies to
issue a report to Congress on how they define a significant eco-
nomic impact on a substantial number of small entities.
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. 9031 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
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The Committee finds that the legislation does not relate to the
terms and conditions of employment or access to public services or
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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.
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XVII. MINORITY VIEWS
The Regulatory Flexibility Act (RFA) requires federal agencies to
consider the effects of their regulations on small businesses and
other small entities. If a regulation is determined to have a ‘‘signifi-
cant economic impact on a substantial number of small entities’’
(SEISNSE), the RFA requires agencies to conduct more detailed
regulatory analysis and consider alternatives.1
The RFA does not define the terms, ‘‘significant economic impact’’
and ‘‘substantial number of small entities.’’ With regard to the term
‘‘significant economic impact,’’ the Office of Advocacy (Advocacy) re-
lies on the legislative history of the RFA and has said that these
terms should not be measured in absolute terms. Significant im-
pact should be viewed as relative to the size of the business, the
size of the competitors’ business, and the impact the regulation has
on larger businesses, and Advocacy believes that agencies are in
the best position to gauge the impact of the regulation on small en-
tities.2 In terms of ‘‘substantial number of small entities’’, Advocacy
has also relied on the legislative history, and its guidance encour-
ages agencies to examine the number of affected firms in a par-
ticular economic industry. For example, five firms in an industry
of more than 1,000 regulated entities would not be the same as five
firms in an industry with 20 regulated entities. Advocacy has
issued specific guidance on these particular terms and trains agen-
cies on how to comply with the Regulatory Flexibility Act.3
This bill would require federal agencies to submit a report to
Congress on the application of the RFA on the rulemaking of their
respective agencies within 90 days of enactment. With that said,
the bill requires each agency head to review every rule that was
issued by the agency since 1980, when the RFA was first enacted.
The analysis of the rules includes the definitions used by the agen-
cy to determine ‘‘significant economic impact’’ and ‘‘substantial
number of small entities’’, as well as a comprehensive list of factors
for the regulatory flexibility analysis, which includes the threshold
analysis, initial regulatory flexibility analysis, and the final regu-
latory flexibility analysis. The requirement for additional analysis
is exceptionally broad, and it is unclear how the report would be
helpful to Congress. Moreover, it is highly unlikely the reports
could be completed within 90 days. Advocacy has indicated that the
report will not provide any consistent response.
Agencies have written procedures and have developed criteria,
and these procedures are posted on their websites. Executive Order
13272 requires Advocacy to provide compliance training to federal
1 CONG. RESEARCH SERV., THE REGULATORY FLEXIBILITY ACT: AN OVERVIEW, 2 (Aug. 16, 2021).
2 OFF. OF ADVOCACY, A Guide for Government Agencies: How to Comply with the Regulatory
Flexibility Act, U.S. SMALL BUS. ADMIN. (Aug. 2017), https://advocacy.sba.gov/wp-content/
uploads/2019/06/How-to-Comply-with-the-RFA.pdf.
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3 Id.
(10)
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regulatory officials, and in FY 2023, Advocacy offered nine training
sessions for 139 federal officials.4 More training of rule-writing
staff at agencies would help to further improve the RFA process.
NYDIA M. VELÁZQUEZ,
Ranking Member.
Æ
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4 Off. of Advocacy, Report on the Regulatory Flexibility Act, FY 2023 (Jun. 2024).
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