Let American Businesses Be on Record Act of 2024
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- Crpt 118Hrpt855
Summary
House Report 118–855, Part 1, of the 118th Congress, 2d Session, ordered printed December 10, 2024 and submitted by Mr. Williams of Texas from the Committee on Small Business to accompany H.R. 9033, the Let American Businesses Be On Record Act of 2024 (LABOR Act). The committee reports the bill favorably without amendment; the bill would require the Department of Labor to convene SBREFA panels when proposing rules with a significant economic impact on a substantial number of small entities. The report states that the committee ordered the bill reported on September 10, 2024 with no amendments offered. It includes a Congressional Budget Office table covering H.R. 9030, H.R. 9031, H.R. 9033 and H.R. 9085, House rule statements, and minority views signed by Ranking Member Nydia M. Velázquez.
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“Let American Businesses Be on Record Act of 2024.”
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118TH CONGRESS REPT. 118–855
" HOUSE OF REPRESENTATIVES !
2d Session Part 1
LET AMERICAN BUSINESSES BE ON RECORD 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. 9033]
[Including cost estimate of the Congressional Budget Office]
The Committee on Small Business, to whom was referred the bill
(H.R. 9033) to amend title 5, United States Code, to apply regu-
latory flexibility analysis requirements for the Department of
Labor, having considered the same, reports favorably thereon with-
out 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. 9033 ................................................................. 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 ........................................................... 9
XVI. Statement of Constitutional Authority ...................................................... 9
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XVII. Changes in Existing Law Made by the Bill, as Reported ........................ 9
XVIII. Minority Views ............................................................................................ 12
59–006
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I. PURPOSE AND BILL SUMMARY
On July 15, 2024, Rep. Bean introduced H.R. 9033. The purpose
of H.R. 9033, the ‘‘LABOR Act,’’ is to expand Small Business Regu-
latory Enforcement Fairness Act (SBREFA) panel requirements to
the full Department of Labor (DOL). Currently, only the Occupa-
tional Safety and Health Administration within the DOL, along
with the Environmental Protection Agency, and the Consumer Fi-
nancial Protection Bureau are required to conduct SBREFA panels.
II. NEED FOR LEGISLATION
This bill expands Small Business Regulatory Enforcement Fair-
ness Act (SBREFA) panels to the Department of Labor (DOL). Cur-
rently, only the Consumer Financial Protection Bureau, Environ-
mental Protection Agency, and the Occupational Safety and Health
Administration are required to hold SBREFA panels before pub-
lishing a proposed rule that will have a significant economic impact
on a substantial number of small entities.
SBREFA panels are convened when there is a regulation from
any of these agencies that have a significant impact on small busi-
nesses. The purpose of these panels is to hear directly from the af-
fected entities as a rule is being proposed so changes can be made
before it goes final. These panels are supposed to be more impactful
to agencies than the normal notice and comment period, which is
why they are reserved for these agencies that have the ability to
effect small business operations the most.
The Committee’s investigation into the Biden Administration’s
disregard for Regulatory Flexibility Act (RFA) requirements uncov-
ered that the DOL is one of the federal government’s worst RFA
offenders. Requiring the DOL to meet with entities directly im-
pacted by their rules before publishing will offer the agency the op-
portunity to consider the real-world implications of their rules.
III. HEARINGS
In the 118th Congress, the Committee held one hearing exam-
ining the issues covered in H.R. 9033. 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.
9033 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-
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tion to report legislation and amendments thereto. The Committee
voted to favorably report H.R. 9033 to the House of Representatives
at 2:45 PM.
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VI. SECTION-BY-SECTION OF H.R. 9033
Section 1: Short title
This bill may be cited as the ‘‘Let American Businesses be On
Record Act’’ or the ‘‘LABOR Act.’’
Section 2: Regulatory flexibility analysis requirements for the De-
partment of Labor
Requires the DOL to conduct SBREFA panels when proposing a
rule that will have a significant economic impact on a substantial
number of small entities.
VII. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE
Pursuant to 3(c)(3) of rule XIII of the Rules of the House of Rep-
resentatives, the Committee adopts as its own the cost estimate
prepared by the Director of the Congressional Budget Office pursu-
ant to section 402 of the Congressional 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
Pay-As-
Direct Spending subject Budgetary
Last Budget Revenues, You-Go
Bill Number Title Status spending, to appropriation, effects after Mandates Contact
action function 2025–2034 procedures
2025–2034 2025–2029 2034
apply?
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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
PO 00000 $500,000 and zero
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
Frm 00006 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-
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.
Fmt 6659 H.R. 9031 Assurance for Small Business Act Ordered reported 09/10/24 Multiple Between Between Not estimated Yes Insignificant Yes Margot Berman
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-
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
Sfmt 6602
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.
E:\HR\OC\HR855P1.XXX
H.R. 9085 Regulatory Review Improvement Ordered reported 09/10/24 Multiple Between Between Not estimated Yes Insignificant Yes Margot Berman
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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7
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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. 9033 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.
9033 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. 9033 are to expand Small Business Regu-
latory Enforcement Fairness Act (SBREFA) panel requirements to
the full Department of Labor (DOL).
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. 9033 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
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No advisory committees within the meaning of section 5(b) of the
Federal Advisory Committee Act were created by this legislation.
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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
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):
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):
TITLE 5, UNITED STATES CODE
* * * * * * *
PART I—THE AGENCIES GENERALLY
* * * * * * *
CHAPTER 6—THE ANALYSIS OF REGULATORY
FUNCTIONS
* * * * * * *
§ 609. Procedures for gathering comments
(a) When any rule is promulgated which will have a significant
economic impact on a substantial number of small entities, the
head of the agency promulgating the rule or the official of the agen-
cy with statutory responsibility for the promulgation of the rule
shall assure that small entities have been given an opportunity to
participate in the rulemaking for the rule through the reasonable
use of techniques such as—
(1) the inclusion in an advanced notice of proposed rule-
making, if issued, of a statement that the proposed rule may
have a significant economic effect on a substantial number of
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small entities;
(2) the publication of general notice of proposed rulemaking
in publications likely to be obtained by small entities;
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(3) the direct notification of interested small entities;
(4) the conduct of open conferences or public hearings con-
cerning the rule for small entities including soliciting and re-
ceiving comments over computer networks; and
(5) the adoption or modification of agency procedural rules to
reduce the cost or complexity of participation in the rule-
making by small entities.
(b) Prior to publication of an initial regulatory flexibility analysis
which a covered agency is required to conduct by this chapter—
(1) a covered agency shall notify the Chief Counsel for Advo-
cacy of the Small Business Administration and provide the
Chief Counsel with information on the potential impacts of the
proposed rule on small entities and the type of small entities
that might be affected;
(2) not later than 15 days after the date of receipt of the ma-
terials described in paragraph (1), the Chief Counsel shall
identify individuals representative of affected small entities for
the purpose of obtaining advice and recommendations from
those individuals about the potential impacts of the proposed
rule;
(3) the agency shall convene a review panel for such rule
consisting wholly of full time Federal employees of the office
within the agency responsible for carrying out the proposed
rule, the Office of Information and Regulatory Affairs within
the Office of Management and Budget, and the Chief Counsel;
(4) the panel shall review any material the agency has pre-
pared in connection with this chapter, including any draft pro-
posed rule, collect advice and recommendations of each indi-
vidual small entity representative identified by the agency
after consultation with the Chief Counsel, on issues related to
subsections 603(b), paragraphs (3), (4) and (5) and 603(c);
(5) not later than 60 days after the date a covered agency
convenes a review panel pursuant to paragraph (3), the review
panel shall report on the comments of the small entity rep-
resentatives and its findings as to issues related to subsections
603(b), paragraphs (3), (4) and (5) and 603(c), provided that
such report shall be made public as part of the rulemaking
record; and
(6) where appropriate, the agency shall modify the proposed
rule, the initial regulatory flexibility analysis or the decision on
whether an initial regulatory flexibility analysis is required.
(c) An agency may in its discretion apply subsection (b) to rules
that the agency intends to certify under subsection 605(b), but the
agency believes may have a greater than de minimis impact on a
substantial number of small entities.
(d) For purposes of this section, the term ‘‘covered agency’’
means—
(1) the Environmental Protection Agency;
(2) the Consumer Financial Protection Bureau of the Federal
Reserve System; and
ø(3) the Occupational Safety and Health Administration of
the Department of Labor.¿
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(3) the Department of Labor.
(e) The Chief Counsel for Advocacy, in consultation with the indi-
viduals identified in subsection (b)(2), and with the Administrator
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11
of the Office of Information and Regulatory Affairs within the Of-
fice of Management and Budget, may waive the requirements of
subsections (b)(3), (b)(4), and (b)(5) by including in the rulemaking
record a written finding, with reasons therefor, that those require-
ments would not advance the effective participation of small enti-
ties in the rulemaking process. For purposes of this subsection, the
factors to be considered in making such a finding are as follows:
(1) In developing a proposed rule, the extent to which the
covered agency consulted with individuals representative of af-
fected small entities with respect to the potential impacts of
the rule and took such concerns into consideration.
(2) Special circumstances requiring prompt issuance of the
rule.
(3) Whether the requirements of subsection (b) would provide
the individuals identified in subsection (b)(2) with a competi-
tive advantage relative to other small entities.
* * * * * * *
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XVIII. MINORITY VIEWS
In 1996, the Small Business Regulatory Enforcement Fairness
Act (SBREFA) amended the Regulatory Flexibility Act (RFA) to re-
quire the Occupational Safety and Health Administration (OSHA)
and the Environmental Protection Agency (EPA) to hold SBREFA
panels when the RFA is triggered. In 2010, the Dodd-Frank Wall
Street Reform and Consumer Protection Act required the Con-
sumer Financial Protection Bureau (CFPB) to convene these
SBREFA panels, as well. The RFA requires panels to be comprised
of representatives from the agency, Office of Advocacy (Advocacy),
Office of Management and Budget (OMB) and Office of Information
and Regulatory Affairs (OIRA), and small businesses. The purpose
of the panel is to better understand the ramifications of the pro-
posed rule on small businesses. Within 60 days of convening the
panel, the panel is to report on the comments it received, their
findings, and publish in the Federal Register.1
This bill would expand the requirement to the entire Department
of Labor (DOL), not just OSHA. The current process at OSHA en-
tails 120 days of formal work with OIRA and Advocacy. More spe-
cifically, it includes 60 days of interagency work and time for find-
ing small entity representatives (SERs) to serve on the panels, 30
days to mail information to the SERs and hold the panel discus-
sions, and 30 days for the agencies to draft and finalize the panel
report. Prior to convening a SBREFA panel, OSHA spends a sig-
nificant amount of time developing the information and analysis
necessary to host a panel. Generally, OSHA needs 4 to 8 months
to complete the work, which includes drafting a regulatory frame-
work or text, developing proposed regulatory alternatives, identi-
fying a well-defined industry profile, developing supporting mate-
rials and crafting questions for SERs. After convening a SBREFA
panel, OSHA must respond to the report in the subsequent Notice
of Proposed Rulemaking—depending on the recommendations,
which could result in minimal impact on the rulemaking, or it
could result in additional months of work—depending on the rule.
The costs of convening a SBREFA are substantial. The DOL dedi-
cates the full salary time of numerous technical staff, economists,
and lawyers to the task, which amounts to substantial costs to the
agency.2
On June 22, 2023, The Honorable Major L. Clark, III, Deputy
Chief Counsel, Office of Advocacy, testified before the House Small
Business Committee, and said, ‘‘Advocacy does not see the need to
include all regulatory agencies in the SBREFA panel process.’’ Ex-
panding these panels to all agencies at the Department of Labor
1 See Small Business Regulatory Enforcement Fairness Act of 1996, Pub. L. No. 104–121, tit.
II (1996) (codified in scattered sections of 5 U.S.C.).
2 Email from the U.S. DEP’T OF LAB. to the H. COMM. ON SMALL BUS. (May 21, 2024) (on file
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with the Committee).
(12)
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would require more resources for the agencies and potentially delay
the final implementation of rules.
NYDIA M. VEĹAZQUEZ,
Ranking Member.
Æ
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