89–006 

116TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 116–113 

TO AMEND THE SMALL BUSINESS ACT TO REQUIRE THE SMALL BUSINESS 

AND AGRICULTURE REGULATORY ENFORCEMENT OMBUDSMAN TO CREATE A CENTRALIZED WEBSITE FOR COMPLIANCE GUIDES, AND FOR 

OTHER PURPOSES 

JUNE 13, 2019.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Ms. VELA ́ ZQUEZ, from the Committee on Small Business, 

submitted the following 

R E P O R T 

[To accompany H.R. 2142] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Small Business, to whom was referred the bill 

(H.R. 2142) to amend the Small Business Act to require the Small 

Business and Agriculture Regulatory Enforcement Ombudsman to 

create a centralized website for compliance guides, and for other 

purposes, having considered the same, report favorably thereon 

without amendment and recommend that the bill do pass. 

CONTENTS 

Page 

I. Purpose and Bill Summary ........................................................................ 2 

II. Background and Need for Legislation ....................................................... 2 

III. Hearings ....................................................................................................... 3 

IV. Committee Consideration ........................................................................... 3 

V. Committee Votes ......................................................................................... 3 

VI. Section-by-Section Analysis for H.R. 2142 ................................................ 5 

VII. Congressional Budget Office Cost Estimate ............................................. 5 

VIII. Unfunded Mandates .................................................................................... 6 

IX. New Budget Authority, Entitlement Authority, and Tax Expenditures 6 

X. Oversight Findings ...................................................................................... 6 

XI. Statement of Constitutional Authority ...................................................... 6 

XII. Congressional Accountability Act .............................................................. 6 

XIII. Federal Advisory Committee Act Statement ............................................ 6 

XIV. Statement of No Earmarks ........................................................................ 6 

XV. Statement of Duplication of Federal Programs ........................................ 7 

XVI. Disclosure of Directed Rule Makings ........................................................ 7 

XVII. Performance Goals and Objectives ............................................................ 7 

XVIII. Changes in Existing Law, Made by the Bill, As Reported ...................... 7 


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I. PURPOSE AND BILL SUMMARY

The purpose of H.R. 2142 is to require the Office of the National 

Ombudsman at the Small Business Administration (SBA) to create 

a centralized website with hyperlinks to small entity compliance 

guides and the contact person at agencies who could provide small 

businesses with assistance. The legislation would also require the 

Office of the National Ombudsman to report on federal agencies’ 

compliance with the Section 212 requirements of the Small Business Regulatory Enforcement Fairness Act (SBREFA) in its annual 

report to Congress. 

II. BACKGROUND AND NEED FOR LEGISLATION

H.R. 2142 was introduced by Representative Antonio Delgado 

(D–NY) and Representative John Joyce (R–PA) on April 9, 2018. 

Section 212 of the Small Business Regulatory Enforcement Fairness Act (SBREFA) requires federal agencies to publish a ‘‘small 

entity compliance guide’’ for every rule that requires a regulatory 

flexibility analysis (RFA). The guide must be posted the day the 

final rule is published or shortly thereafter, but no later than the 

day the rule becomes effective. Agencies are also required to publish the guides on their websites, distribute the guides to small entities affected by the rules, and report annually to Congress. 

A. BACKGROUND ON SBA’S OFFICE OF THE NATIONAL OMBUDSMAN

The SBA’s Office of the National Ombudsman was created in 

1996 to help small businesses overcome excessive or unfair regulatory enforcement actions by federal agencies, such as repetitive 

audits, investigations, or excessive fines. The Ombudsman works 

directly with federal agencies to ensure that actions taken against 

small businesses are fair and not excessive. In Fiscal Year 2017, 

the Office of the National Ombudsman advocated on behalf of 460 

small businesses, conducted more than 130 outreach events across 

the country to raise the visibility of the Office, and strengthened 

relationships with 28 interagency partners. 

B. THE NEED FOR THE CHANGES OUTLINED IN THE BILL

Section 212 of the Small Business Regulatory Enforcement Fairness Act (SBREFA) requires federal agencies to publish a ‘‘small 

entity compliance guide’’ for every rule that requires a regulatory 

flexibility analysis (RFA). The guide must be posted the day the 

final rule is published or shortly thereafter, but no later than the 

day the rule becomes effective. Agencies are also required to publish the guides on their websites, distribute the guides to small entities affected by the rules, and report annually to Congress. 

Small businesses rarely have the resources to navigate multiple 

agency websites to understand their responsibilities under new 

laws. H.R. 2142, would make it easier for small businesses by requiring the Office of the National Ombudsman at the Small Business Administration (SBA) to create a centralized website, which 

would provide a ‘‘one stop shop’’ for small entities compliance 

guides. Specifically, the legislation would require the Office of the 

National Ombudsman at the Small Business Administration (SBA) 

to create a centralized website with hyperlinks to small entity compliance guides and the contact person at agencies who could proVerDate Sep 11 2014 04:19 Jun 15, 2019 Jkt 089006 PO 00000 Frm 00002 Fmt 6659 Sfmt 6602 E:\HR\OC\HR113.XXX HR113

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vide small businesses with assistance. The legislation would also 

require the Ombudsman to report on federal agencies’ compliance 

with the section 212 requirements in its annual report to Congress. 

In addition, the bill would provide transparency and ensure federal agencies are complying with the SBREFA requirements. Federal agencies’ compliance with the requirements has been varied. 

For example, the Federal Trade Commission (FTC) has a longstanding small business education program and regularly submits 

reports to the Small Business Committee each year. In the 2018 

annual report, the FTC reported that the Commission did not issue 

any rules that were subject to Section 212 of SBREFA for the reporting period. However, it made compliance materials available 

for several rulemakings even though they were not required to do 

so by the Act. Conversely, the Surface Transportation Board reported in its 2018 annual report that the Board failed to issue a 

timely compliance guide for a particular rule, but promptly remedied the omission once it was realized. The legislation would require the Office of the National Ombudsman to report on federal 

agencies’ compliance with the SBREFA requirements in its annual 

report to Congress. 

III. HEARINGS

While multiple hearings have been held by the Committee over 

the past several years exploring regulatory compliance burdens 

specific to the small business community, no specific hearings in 

the 116th Congress have been held to explore reforms to SBA’s Office of the National Ombudsman. 

IV. COMMITTEE CONSIDERATION

The Committee on Small Business met in open session, with a 

quorum being present, on May 1, 2019 and ordered H.R. 2142 favorably reported to the House. During the markup, no amendments 

were offered. 

V. COMMITTEE VOTES

Clause 3(b) of rule XIII of the Rules of the House of Representatives requires the Committee to list the recorded votes on the motion to report legislation and amendments thereto. The Committee 

voted by voice vote to favorably report H.R. 2142 to the House at 

11:58 A.M. 


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VI. SECTION-BY-SECTION OF H.R. 2142 

Section 1: Centralized compliance guides 

This section amends section 30 of the Small Business Act by adding a new subsection requiring the Office of the National Ombudsman at the Small Business Administration (SBA) to create a centralized website that would: 1) provide hyperlinks to small entity 

compliance guides described under Section 212 of the Small Business Regulatory Enforcement Fairness Act of 1996; and 2) provide 

the contact information for the person at the agency who could provide small entities with assistance with respect to the rules that 

are the subject of such guide. 

This section would also require the Ombudsman to report on federal agencies’ compliance with the Section 212 requirements of the 

Small Business Regulatory Enforcement Fairness Act of 1996 in its 

annual report to Congress. 

VII. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

The Congressional Budget Office pursuant to 402 of the Congressional Budget Act of 1974, submitted a cost estimate for H.R. 2142 

that stated enacting the legislation would not increase net direct 

spending or on budget deficits in any of the four consecutive 10- 

year periods beginning in 2030. 

U.S. CONGRESS, CONGRESSIONAL BUDGET OFFICE, Washington, DC, June 4, 2019. 

Hon. NYDIA M. VELA ́ ZQUEZ, 

Chairwoman, Committee on Small Business, 

House of Representatives, Washington, DC. 

DEAR MADAM CHAIRWOMAN: The Congressional Budget Office 

has prepared the enclosed cost estimate for H.R. 2142, a bill to 

amend the Small Business Act to require the Small Business and 

Agriculture Regulatory Enforcement Ombudsman to create a centralized website for compliance guides, and for other purposes. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is David Hughes. 

Sincerely, 

PHILLIP SWAGEL, 

Director. 

Enclosure. 

H.R. 2142 would require the Small Business Administration’s 

(SBA’s) Office of the National Ombudsman to maintain a public 

website with links to small-entity compliance guides issued by federal agencies and those agencies’ contact information. Federal 

agencies create small-entity compliance guides to assist small businesses in complying with federal rules and regulations. Under the 

bill, the National Ombudsman would assess the extent to which 

federal agencies are publishing those guides. 

CBO estimates that implementing H.R. 2142 would have an insignificant cost. The Small Business Paperwork Relief Act of 2002 

already requires the Office of Management and Budget, in consultation with the SBA, to post small-entity compliance guides online each year. The agency’s compliance contacts are posted as well. 


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Any additional spending would be subject to the availability of appropriated funds. 

The CBO staff contact for this estimate is David Hughes. The estimate was reviewed by H. Samuel Papenfuss, Deputy Assistant 

Director for Budget Analysis. 

VIII. UNFUNDED MANDATES

H.R. 2142 contains no intergovernmental or private sector mandates as defined in the Unfunded Mandates Reform Act, Public 

Law No. 104–4, and would impose no costs on state, local, or tribal 

governments. 

IX. NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, 

AND TAX EXPENDITURES

In compliance with clause 3(c)(2) of rule XIII of the Rules of the 

House, the Committee provides the following opinion and estimate 

with respect to new budget authority, entitlement authority, 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 pursuant 

to § 402 of the Congressional Budget Act of 1974, the Committee 

does not believe that there will be any additional costs attributable 

to this legislation. H.R. 2142 does not direct new spending, but instead reallocates funding independently authorized and appropriated. 

X. OVERSIGHT FINDINGS

In accordance with clause 2(b)(1) of rule X of the Rules of the 

House, the oversight findings and recommendations of the Committee on Small Business with respect to the subject matter contained in H.R. 2142 are incorporated into the descriptive portions 

of this report. 

XI. STATEMENT OF CONSTITUTIONAL AUTHORITY

Pursuant to clause 7 of rule XII of the Rules of the House of Representatives, the Committee finds the authority for this legislation 

in Art. I, § 8, cl. 1 of the Constitution of the United States. 

XII. CONGRESSIONAL ACCOUNTABILITY ACT

H.R. 2142 does not relate to the terms and conditions of employment or access to public services or accommodations within the 

meaning of § 102(b)(3) of Public Law No. 104–1. 

XIII. FEDERAL ADVISORY COMMITTEE ACT STATEMENT

H.R. 2142 does not establish or authorize the establishment of 

any new advisory committees as that term is defined in the Federal 

Advisory Committee Act, 5 U.S.C. App.2. 

XIV. STATEMENT OF NO EARMARKS

Pursuant to clause 9 of rule XXI, H.R. 2142 does not contain any 

congressional earmarks, limited tax benefits, or limited tariff beneVerDate Sep 11 2014 04:19 Jun 15, 2019 Jkt 089006 PO 00000 Frm 00006 Fmt 6659 Sfmt 6602 E:\HR\OC\HR113.XXX HR113

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fits as defined in subsections (d), (e), or (f) of clause 9 of rule XXI 

of the Rules of the House. 

XV. STATEMENT OF DUPLICATION OF FEDERAL PROGRAMS

Pursuant to clause 3 of rule XIII of the Rules of the House, no 

provision of H.R. 2142 establishes or reauthorizes a program of the 

federal government known to be duplicative of another federal program, a program that was included in any report from the United 

States Government Accountability Office pursuant to § 21 of Pub. 

L. No. 111–139, or a program related to a program identified in the 

most recent catalog of federal domestic assistance. 

XVI. DISCLOSURE OF DIRECTED RULEMAKINGS

Pursuant to clause 3 of rule XIII of the Rules of the House, H.R. 

2142 does not direct any rulemaking. 

XVII. PERFORMANCE GOALS AND OBJECTIVES

Pursuant to clause 3(c)(4) of rule XII of the Rules of the House, 

the Committee establishes the following performance-related goals 

and objectives for this legislation: 

H.R. 2142 includes a couples of provisions designed to make it 

easier for small businesses to understand their responsibilities 

under the laws. 

XVIII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause (E) of rule XIII of the Rules of the 

House, changes in existing law made by the bill, as reported, as 

shown as follows: existing law proposed to be omitted is enclosed 

in black brackets, new matter is printed in italic, 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 (new matter is printed in italic 

and existing law in which no change is proposed is shown in 

roman): 

SMALL BUSINESS ACT 

* * * * * * * 

SEC. 30. OVERSIGHT OF REGULATORY ENFORCEMENT. 

(a) DEFINITIONS.—For purposes of this section, the term— 

(1) ‘‘Board’’ means a Regional Small Business Regulatory 

Fairness Board established under subsection (c); and 

(2) ‘‘Ombudsman’’ means the Small Business and Agriculture 

Regulatory Enforcement Ombudsman designated under subsection (b). 

(b) SBA ENFORCEMENT OMBUDSMAN.— 

(1) Not later than 180 days after the date of enactment of 

this section, the Administrator shall designate a Small Business and Agriculture Regulatory Enforcement Ombudsman, 

who shall report directly to the Administrator, utilizing perVerDate Sep 11 2014 04:19 Jun 15, 2019 Jkt 089006 PO 00000 Frm 00007 Fmt 6659 Sfmt 6602 E:\HR\OC\HR113.XXX HR113

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sonnel of the Small Business Administration to the extent 

practicable. Other agencies shall assist the Ombudsman and 

take actions as necessary to ensure compliance with the requirements of this section. Nothing in this section is intended 

to replace or diminish the activities of any Ombudsman or 

similar office in any other agency. 

(2) The Ombudsman shall— 

(A) work with each agency with regulatory authority 

over small businesses to ensure that small business concerns that receive or are subject to an audit, on-site inspection, compliance assistance effort, or other enforcement related communication or contact by agency personnel are 

provided with a means to comment on the enforcement activity conducted by such personnel; 

(B) establish means to receive comments from small 

business concerns regarding actions by agency employees 

conducting compliance or enforcement activities with respect to the small business concern, means to refer comments to the Inspector General of the affected agency in 

the appropriate circumstances, and otherwise seek to 

maintain the identity of the person and small business 

concern making such comments on a confidential basis to 

the same extent as employee identities are protected under 

section 7 of the Inspector General Act of 1978 (5 U.S.C. 

App.); 

(C) based on substantiated comments received from 

small business concerns and the Boards, annually report 

to Congress and affected agencies evaluating the enforcement activities of agency personnel including a rating of 

the responsiveness to small business of the various regional and program offices of each agency; 

(D) coordinate and report annually on the activities, 

findings and recommendations of the Boards to the Administrator and to the heads of affected agencies; and 

(E) provide the affected agency with an opportunity to 

comment on draft reports prepared under subparagraph 

(C), and include a section of the final report in which the 

affected agency may make such comments as are not addressed by the Ombudsman in revisions to the draft. 

(c) REGIONAL SMALL BUSINESS REGULATORY FAIRNESS BOARDS.— 

(1) Not later than 180 days after the date of enactment of 

this section, the Administrator shall establish a Small Business Regulatory Fairness Board in each regional office of the 

Small Business Administration. 

(2) Each Board established under paragraph (1) shall— 

(A) meet at least annually to advise the Ombudsman on 

matters of concern to small businesses relating to the enforcement activities of agencies; 

(B) report to the Ombudsman on substantiated instances 

of excessive enforcement actions of agencies against small 

business concerns including any findings or recommendations of the Board as to agency enforcement policy or practice; and 

(C) prior to publication, provide comment on the annual 

report of the Ombudsman prepared under subsection (b). 


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(3) Each Board shall consist of five members, who are owners, operators, or officers of small business concerns, appointed 

by the Administrator, after receiving the recommendations of 

the chair and ranking minority member of the Committees on 

Small Business of the House of Representatives and the Senate. Not more than three of the Board members shall be of the 

same political party. No member shall be an officer or employee of the Federal Government, in either the executive 

branch or the Congress. 

(4) Members of the Board shall serve at the pleasure of the 

Administrator for terms of three years or less. 

(5) The Administrator shall select a chair from among the 

members of the Board who shall serve at the pleasure of the 

Administrator for not more than 1 year as chair. 

(6) A majority of the members of the Board shall constitute 

a quorum for the conduct of business, but a lesser number may 

hold hearings. 

(d) POWERS OF THE BOARDS.— 

(1) The Board may hold such hearings and collect such information as appropriate for carrying out this section. 

(2) The Board may use the United States mails in the same 

manner and under the same conditions as other departments 

and agencies of the Federal Government. 

(3) The Board may accept donations of services necessary to 

conduct its business, provided that the donations and their 

sources are disclosed by the Board. 

(4) Members of the Board shall serve without compensation, 

provided that, members of the Board shall be allowed travel 

expenses, including per diem in lieu of subsistence, at rates authorized for employees of agencies under subchapter I of chapter 57 of title 5, United States Code, while away from their 

homes or regular places of business in the performance of services for the Board. 

(e) CENTRALIZED WEBSITE.—Not later than 6 months after the 

date of the enactment of this subsection, the Ombudsman shall 

maintain a publicly available website that includes— 

(1) hyperlinks to small entity compliance guides described 

under section 212(a)(1) of the Small Business Regulatory Enforcement Fairness Act of 1996; and 

(2) with respect to each such small entity compliance guide, 

the contact information for an individual who can offer assistance to small entities with respect to the rules that are the subject of such guide. 

(f) REPORT ON AGENCY COMPLIANCE.—The Ombudsman shall include in the annual report required under subsection (b)(2)(C) an 

assessment of agency compliance with the requirements of section 

212 of the Small Business Regulatory Enforcement Fairness Act of 

1996 for the year covered by such annual report. 

* * * * * * * 

Æ 


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