79–006 

115TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 115–938 

SMALL BUSINESS ADVOCACY IMPROVEMENTS ACT OF 

2018 

SEPTEMBER 12, 2018.—Committed to the Committee of the Whole House on the 

State of the Union and ordered to be printed 

Mr. CHABOT, from the Committee on Small Business, 

submitted the following 

R E P O R T 

[To accompany H.R. 6316] 

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

(H.R. 6316) to clarify the primary functions and duties of the Office 

of Advocacy of the Small Business Administration, 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 ........................................................................ 1 

II. Need for Legislation .................................................................................... 2 

III. Hearings ....................................................................................................... 2 

IV. Committee Consideration ........................................................................... 2 

V. Committee Votes ......................................................................................... 2 

VI. Section-by-Section of H.R. 6316 ................................................................. 3 

VII. Congressional Budget Office Cost Estimate ............................................. 3 

VIII. Unfunded Mandates .................................................................................... 3 

IX. New Budget Authority, Entitlement Authority, and Tax Expenditures 3 

X. Oversight Findings ...................................................................................... 3 

XI. Statement of Constitutional Authority ...................................................... 4 

XII. Congressional Accountability Act .............................................................. 4 

XIII. Federal Advisory Committee Act Statement ............................................ 4 

XIV. Statement of No Earmarks ........................................................................ 4 

XV. Statement of Duplication of Federal Programs ........................................ 4 

XVI. Disclosure of Directed Rule Makings ........................................................ 4 

XVII. Performance Goals and Objectives ............................................................ 4 

XVIII. Changes in Existing Law, Made by the Bill, As Reported ...................... 4 

I. PURPOSE AND BILL SUMMARY

The purpose of H.R. 6316, the ‘‘Small Business Advocacy Improvements Act of 2018,’’ is to explicitly permit the Office of Advocacy of the United States Small Business Administration to examVerDate Sep 11 2014 04:38 Sep 14, 2018 Jkt 079006 PO 00000 Frm 00001 Fmt 6659 Sfmt 6602 E:\HR\OC\HR938.XXX HR938

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ine the role of small business in international economies and to 

represent small business views and interests before foreign governments and international entities. The bill also corrects two spelling 

errors in Section 202 of Public Law 94–305. 

II. NEED FOR LEGISLATION

H.R. 6316 was introduced by Rep. James Comer (R–KY) and 

Rep. Alma Adams (D–NC) on July 6, 2018. Public Law 94–305 established the Office of Advocacy and its statutory authority. Section 

202 of the law sets forth the primary functions of the Office of Advocacy relating to the study of small business. Currently, it directs 

the Office of Advocacy to ‘‘examine the role of small business in the 

American economy and the contribution which small business can 

make in improving competition.’’ It is silent regarding the Office of 

Advocacy’s ability to study the role of small business in international economies, which is an important avenue for small businesses as more businesses seek opportunities to export and to expand overseas. This bill would clarify that the Office of Advocacy 

should include international economies as part of its research functions. 

Similarly, Section 203 of the law sets forth the duties of the Office of Advocacy that shall be performed on a continuing basis. One 

of these duties is to ‘‘represent the views and interests of small 

businesses before other Federal agencies whose policies and activities may affect small business.’’ It is silent regarding the Office of 

Advocacy’s authority to represent small business views and interests before foreign governments and international entities. It is important for small businesses to have their views and interests on 

regulatory and trade initiatives represented in the international 

space. This bill adds a new paragraph to Section 203 of the law to 

clarify the Office of Advocacy’s ability to represent small business 

views and interests before foreign governments and other international entities for the purpose of contributing to regulatory and 

trade initiatives. 

Finally, this bill corrects two spelling errors in Section 202 of the 

law. The first corrects paragraph (9) of Section 202, which should 

be ‘‘compete’’ instead of ‘‘complete.’’ The second corrects paragraph 

(12) of Section 202, which should be ‘‘service-disabled’’ instead of 

‘‘serviced-disabled.’’ 

III. HEARINGS

In the 115th Congress, the Committee did not hold any hearings 

examining the issues covered in H.R. 6316. 

IV. COMMITTEE CONSIDERATION

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

quorum being present, on July 18, 2018 and ordered H.R. 6316 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 moVerDate Sep 11 2014 04:38 Sep 14, 2018 Jkt 079006 PO 00000 Frm 00002 Fmt 6659 Sfmt 6602 E:\HR\OC\HR938.XXX HR938

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tion to report legislation and amendments thereto. The Committee 

voted by voice vote to favorably report H.R. 6316 to the House at 

12:04 p.m. 

VI. SECTION-BY-SECTION OF H.R. 6316 

Sec. 1. Short title 

This section designates the bill as the ‘‘Small Business Advocacy 

Improvements Act of 2018.’’ 

Sec. 2. Amendment to primary functions and duties of the Office of 

Advocacy of the small business administration 

This section permits the Office of Advocacy to examine the role 

of small business in international economies, in addition to American economies, as part of its primary functions. The section also 

corrects two spelling errors in Section 202 of Public Law 94–305. 

In addition, this section clarifies the Office of Advocacy’s duties by 

explicitly permitting it to represent small business views and interests before foreign governments and international entities for the 

purpose of contributing to regulatory and trade initiatives which 

may affect small businesses. 

VII. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

At the time H.R. 6316 was reported to the House, the Congressional Budget Office had not provided a cost estimate. 

VIII. UNFUNDED MANDATES

H.R. 6316 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act, Public 

Law 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. 6316 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. 6316 are incorporated into the descriptive portions 

of this report. 


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XI. STATEMENT OF CONSTITUTIONAL AUTHORITY

Pursuant to clause 7 of rule XII of the Rules of the House, the 

Committee finds the authority for this legislation in Art. I, § 1, cl.1 

and Art. I, § 8, cl.18. 

XII. CONGRESSIONAL ACCOUNTABILITY ACT

H.R. 6316 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 104–1. 

XIII. FEDERAL ADVISORY COMMITTEE ACT STATEMENT

H.R. 6316 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. 6316 does not contain any 

congressional earmarks, limited tax benefits, or limited tariff benefits 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(c) of the rule XIII of the Rules of the House, 

no provision of H.R. 6316 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 

Public Law 111–139, or a program related to a program identified 

in the most recent catalog of federal domestic assistance. 

XVI. DISCLOSURE OF DIRECTED RULE MAKINGS

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

H.R. 6316 does not direct any rulemaking. 

XVII. PERFORMANCE GOALS AND OBJECTIVES

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

the Committee establishes the following performance-related goals 

and objectives for this legislation: 

H.R. 6316 includes a number of provisions designed to improve the opportunities for small business concerns in international economies to be studied and to improve the representation of small business views and interests on regulatory and 

trade initiatives. 

XVIII. CHANGES IN EXISTING LAW

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, 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): 


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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 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): 

PUBLIC LAW 94–305 

AN ACT To amend the Small Business Act and Small Business Investment Act of 

1958 to provide additional assistance under such Acts, to create a pollution control 

financing program for small business, and for other purposes. 

* * * * * * * 

TITLE II—STUDY OF SMALL BUSINESS 

* * * * * * * 

STUDY

SEC. 202. The primary functions of the Office of Advocacy shall 

be to— 

(1) examine the role of small business in the American economy and the international economy and the contribution which 

small business can make in improving competition, encouraging economic and social mobility for all citizens, restraining 

inflation, spurring production, expanding employment opportunities, increasing productivity, promoting exports, stimulating 

innovation and entrepreneurship, and providing an avenue 

through which new and untested products and services can be 

brought to the marketplace; 

(2) assess the effectiveness of existing Federal subsidy and 

assistance programs for small business and the desirability of 

reducing the emphasis on such existing programs and increasing the emphasis on general assistance programs designed to 

benefit all small businesses; 

(3) measure the direct costs and other effects of government 

regulation on small business; and make legislative and nonlegislative proposals for eliminating excessive or unnecessary 

regulations of small businesess; 

(4) determine the impact of the tax structure on small businesses and make legislative and other proposals for altering 

the tax structure to enable all small businesses to realize their 

potential for contributing to the improvement of the Nation’s 

economic well-being; 

(5) study the ability of financial markets and institutions to 

meet small business credit needs and determine the impact of 

government demands for credit on small businesses; 

(6) determine financial resource availability and to recommend methods for delivery of financial assistance to minority enterprises, including methods for securing equity capital, 

for generating markets for goods and services, for providing effective business education, more effective management and 

technical assistance, and training, and for assistance in complying with Federal, State, and local law; 


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(7) evaluate the efforts of Federal agencies, business and industry to assist minority enterprises; 

(8) make such other recommendations as may be appropriate 

to assist the development and strengthening of minority and 

other small business enterprises; 

(9) recommend specific measures for creating an environment in which all businesses will have the opportunity to 

øcomplete¿ compete effectively and expand to their full potential, and to ascertain the common reasons, if any, for small 

business successes and failures; 

(10) determine the desirability of developing a set of rational, 

objective criteria to be used to define small business, and to develop such criteria, if appropriate. 

(11) advise, cooperate with, and consult with, the Chairman 

of the Administrative Conference of the United States with respect to section 504(e) of title 5 of the United States Code; and 

(12) evaluate the efforts of each department and agency of 

the United States, and of private industry, to assist small business concerns owned and controlled by veterans, as defined in 

section 3(q) of the Small Business Act (15 U.S.C. 632(q)), and 

small business concerns owned and controlled by øserviced-disabled¿ service-disabled veterans, as defined in such section 

3(q), and to provide statistical information on the utilization of 

such programs by such small business concerns, and to make 

appropriate recommendations to the Administrator of the 

Small Business Administration and to the Congress in order to 

promote the establishment and growth of those small business 

concerns. 

DUTIES

SEC. 203. 

(a) IN GENERAL.—The Office of Advocacy shall also perform the 

following duties on a continuing basis: 

(1) serve as a focal point for the receipt of complaints, criticisms, and suggestions concerning the policies and activities of 

the Administration and any other Federal agency which affects 

small businesses; 

(2) counsel small businesses on how to resolve questions and 

problems concerning the relationship of the small business to 

the Federal Government; 

(3) develop proposals for changes in the policies and activities of any agency of the Federal Government which will better 

fulfill the purposes of the Small Business Act and communicate 

such proposals to the appropriate Federal agencies; 

(4) represent the views and interests of small businesses before other Federal agencies whose policies and activities may 

affect small business; 

(5) enlist the cooperation and assistance of public and private agencies, businesses, and other organizations in disseminating information about the programs and services provided 

by the Federal Government which are of benefit to small businesses, and information on how small businesses can participate in or make use of such programs and services; øand¿ 

(6) carry out the responsibilities of the Office of Advocacy 

under chapter 6 of title 5, United States Codeø.¿; and 


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(7) represent the views and interests of small businesses before foreign governments and international entities for the purpose of contributing to regulatory and trade initiatives which 

may affect small businesses. 

(b) OUTREACH AND INPUT FROM SMALL BUSINESSES ON TRADE

PROMOTION AUTHORITY.— 

(1) DEFINITIONS.—In this subsection— 

(A) the term ‘‘agency’’ has the meaning given the term 

in section 551 of title 5, United States Code; 

(B) the term ‘‘Chief Counsel for Advocacy’’ means the 

Chief Counsel for Advocacy of the Small Business Administration; 

(C) the term ‘‘covered trade agreement’’ means a trade 

agreement being negotiated pursuant to section 103(b) of 

the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (Public Law 114–26; 19 U.S.C. 

4202(b)); and 

(D) the term ‘‘Working Group’’ means the Interagency 

Working Group convened under paragraph (2)(A). 

(2) WORKING GROUP.— 

(A) IN GENERAL.—Not later than 30 days after the date 

on which the President submits the notification required 

under section 105(a) of the Bipartisan Congressional Trade 

Priorities and Accountability Act of 2015 (Public Law 114– 

26; 19 U.S.C. 4204(a)), the Chief Counsel for Advocacy 

shall convene an Interagency Working Group, which shall 

consist of an employee from each of the following agencies, 

as selected by the head of the agency or an official delegated by the head of the agency: 

(i) The Office of the United States Trade Representative. 

(ii) The Department of Commerce. 

(iii) The Department of Agriculture. 

(iv) Any other agency that the Chief Counsel for Advocacy, in consultation with the United States Trade 

Representative, determines to be relevant with respect 

to the subject of the covered trade agreement. 

(B) VIEWS OF SMALL BUSINESSES.—Not later than 30 

days after the date on which the Chief Counsel for Advocacy convenes the Working Group under subparagraph (A), 

the Chief Counsel for Advocacy shall identify a diverse 

group of small businesses, representatives of small businesses, or a combination thereof, to provide to the Working 

Group the views of small businesses in the manufacturing, 

services, and agriculture industries on the potential economic effects of the covered trade agreement. 

(3) REPORT.— 

(A) IN GENERAL.—Not later than 180 days after the date 

on which the Chief Counsel for Advocacy convenes the 

Working Group under paragraph (2)(A), the Chief Counsel 

for Advocacy shall submit to the Committee on Small Business and Entrepreneurship and the Committee on Finance 

of the Senate and the Committee on Small Business and 

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resentatives a report on the economic impacts of the covered trade agreement on small businesses, which shall— 

(i) identify the most important priorities, opportunities, and challenges to various industries from the covered trade agreement; 

(ii) assess the impact for new small businesses to 

start exporting, or increase their exports, to markets 

in countries that are parties to the covered trade 

agreement; 

(iii) analyze the competitive position of industries 

likely to be significantly affected by the covered trade 

agreement; 

(iv) identify— 

(I) any State-owned enterprises in each country 

participating in negotiations for the covered trade 

agreement that could pose a threat to small businesses; and 

(II) any steps to take to create a level playing 

field for those small businesses; 

(v) identify any rule of an agency that should be 

modified to become compliant with the covered trade 

agreement; and 

(vi) include an overview of the methodology used to 

develop the report, including the number of small 

business participants by industry, how those small 

businesses were selected, and any other factors that 

the Chief Counsel for Advocacy may determine appropriate. 

(B) DELAYED SUBMISSION.—To ensure that negotiations 

for the covered trade agreement are not disrupted, the 

President may require that the Chief Counsel for Advocacy 

delay submission of the report under subparagraph (A) 

until after the negotiations for the covered trade agreement are concluded, provided that the delay allows the 

Chief Counsel for Advocacy to submit the report to Congress not later than 45 days before the Senate or the 

House of Representatives acts to approve or disapprove the 

covered trade agreement. 

(C) AVOIDANCE OF DUPLICATION.—The Chief Counsel for 

Advocacy shall, to the extent practicable, coordinate the 

submission of the report under this paragraph with the 

United States International Trade Commission, the United 

States Trade Representative, other agencies, and trade advisory committees to avoid unnecessary duplication of reporting requirements. 

* * * * * * * 

Æ 


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