issues a trust certificate representing ownership in
such new debenture under section 505) for the pur-
pose of such prepayment, the guarantee by the Ad-
ministration under section 503 of the original deben-
ture shall transfer to the new debenture, and the
transfer of such guarantee shall not be treated as
new credit authority.
‘‘(2) FULL FAITH AND CREDIT OF THE UNITED
STATES.—The full faith and credit of the United
States shall continue to be pledged to the payment
of all amounts which may be required to be paid
under any guarantee of a new debenture or trust
certificate referred to in paragraph (1).
‘‘(d) FEES.—
‘‘(1) IN GENERAL.—Notwithstanding any other
law and subject to paragraph (2), no fees or pen-
alties other than those specified in this section may
be imposed as a condition of prepayment under sub-
section (a) against the issuer, the borrower, or the
Administration.
‘‘(2) OPTIONAL FEES.—The issuer may require
the borrower to pay a fee to the issuer in an amount
equal to—
‘‘(A) in cases other than the case described
in subparagraph (B), 1 percent of the sum of
the unpaid principal balance and the accrued
interest (at the coupon rate on the debenture)
due on the debenture on the date of prepay-
ment; and
‘‘(B) in the case of prepayment of a deben-
ture under subsection (a) in accordance with
the method described in subsection (c)(1), one-
half of 1 percent of the sum of the unpaid prin-
cipal balance and the accrued interest (at the
coupon rate on the debenture) due on the de-
benture on the date of prepayment.
‘‘(e) DEFAULT OF LOAN SECURING DEBENTURE.—
If a borrower defaults on a loan securing a debenture is-
sued under section 503, including a default which occurred
before the date of the enactment of this section, the Ad-
ministration’s guarantee under section 503 shall be extin-
guished by payment by the Administration to the Federal
Financing Bank of the remaining principal balance plus
accrued interest at the coupon rate on the debenture.
‘‘(f) DEFINITIONS.—For purposes of this section, the
following definitions apply:
‘‘(1) BORROWER.—The term ‘borrower’ means
a small business concern.
‘‘(2) CREDIT
AUTHORITY
AND
NEW
BUDGET
AUTHORITY.—The terms ‘credit authority’ and ‘new
budget authority’ have the meanings given such
terms in section 3 of the Congressional Budget Act
of 1974.
‘‘(3) ISSUER.—The term ‘issuer’ means a quali-
fied State or local development company.
‘‘(4) QUALIFIED
STATE
OR
LOCAL
DEVELOP-
MENT COMPANY.—The term ‘qualified State or local
development company’ has the meaning given such
term in section 503(e).’’.
(b) CLERICAL AMENDMENT.—The table of contents
of title V of the Small Business Investment Act of 1958
is amended by adding at the end the following new item:
‘‘Sec. 507. Prepayment of development company debentures.’’.
TITLE V—CABINET LEVEL STA-
TUS 
FOR 
SBA 
ADMINIS-
TRATOR
SEC. 501. PARTICIPATION IN CABINET.
It is the sense of the Congress that the Administrator
of the Small Business Administration should be des-
ignated by the President—
(1) as a member of, and a full participant in
activities of, the Cabinet; and
(2) as the President’s principal adviser on all
matters relating to small business.
SEC. 502. PAY STATUS COMMENSURATE WITH CABINET
STATUS.
(a) EXECUTIVE LEVEL I.—Section 5312 of title 5,
United States Code (relating to executive level I), is
amended by adding at the end the following new item:
‘‘Administrator of the Small Business Adminis-
tration.’’.
(b) CONFORMING AMENDMENT.—Section 5314 of
such title (relating to executive level III) is amended by
striking the following item:
‘‘Administrator of the Small Business Adminis-
tration.’’.
TITLE 
VI—ASSISTANT 
UNITED
STATES TRADE REPRESENTA-
TIVE FOR SMALL BUSINESS
SEC. 601. SENSE OF CONGRESS.
It is the sense of Congress that the United States
Trade Representative should establish a new position of
Assistant United States Trade Representative for Small
Business to promote exports by small businesses and to
remove foreign impediments to the success of such under-
takings.
TITLE 
VII—JUDICIAL 
REVIEW
UNDER REGULATORY FLEXI-
BILITY ACT
SEC. 701. JUDICIAL REVIEW UNDER REGULATORY FLEXI-
BILITY ACT.
(a) IN GENERAL.—Section 611 of title 5, United
States Code, is repealed.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of chapter 6 of title 5, United States
Code, is amended by striking the item relating to section
611.
TITLE 
VIII—CONGRESSIONAL
BUDGET OFFICE SMALL BUSI-
NESS 
LEGISLATIVE 
COST
ANALYSIS
SEC. 801. CONGRESSIONAL BUDGET OFFICE COST ANALY-
SIS.
(a) CBO ANALYSIS.—Title IV of the Congressional
Budget Act of 1974 (2 U.S.C. 651 et seq.) is amended
by inserting after section 403 the following new section:
‘‘SMALL BUSINESS COST ANALYSIS BY CONGRESSIONAL
BUDGET OFFICE
‘‘SEC. 404. (a) The Director of the Congressional
Budget Office shall, to the extent practicable, prepare for
each bill or resolution of a public character reported by
any committee of the House of Representatives or the Sen-
ate (except the Committee on Appropriations of each
House), and submit to such committee—
‘‘(1) an estimate of the costs which would be in-
curred in carrying out such bill or resolution in the
fiscal year in which it is to become effective and in
each of the 4 fiscal years following such fiscal year,
together with the basis for each such estimate;
‘‘(2) an estimate of the cost which would be in-
curred by small businesses in carrying out or com-
plying with any significant bill or resolution in the
fiscal year in which it is to become effective and in
each of the 4 fiscal years following such fiscal year,
together with the basis for each such estimate; and
‘‘(3) a comparison of the estimates of costs de-
scribed in paragraphs (1) and (2) with any available
estimates of costs made by such committee or by a
Federal agency.
The estimates, comparison, and description so submitted
shall be included in the report accompanying such bill or
resolution if timely submitted to such committee before
such report is filed.
‘‘(b) For purposes of subsection (a)(2), the term
‘small business’ has the same meaning as the term ‘small-
business concern’ in section 3(a) of the Small Business
Act (15 U.S.C. 632(a)).
‘‘(c) For purposes of subsection (a)(2), the term ‘sig-
nificant bill or resolution’ is defined as any bill or resolu-
tion which in the judgment of the Director of the Congres-
sional Budget Office is likely to result in an average an-
nual cost to a small business of $1,000 or more, or is likely
to have exceptional fiscal consequences for a geographic
region or a particular industry segment.’’.
(b) CONFORMING AMENDMENT.—The table of con-
tents set forth in section 2(b) of the Congressional Budget
and Impoundment Control Act of 1974 is amended by in-
serting after the item relating to section 404 the following
new item:
‘‘Sec. 403. Small business cost analysis by Congressional Budget Office.’’.
TITLE IX—RELIEF FROM RETRO-
ACTIVE 
APPLICATION 
OF
TREASURY 
DEPARTMENT
REGULATIONS AND RULINGS
SEC. 901. RULES AND REGULATIONS.
(a) IN GENERAL.—Subsection (b) of section 7805 of
the Internal Revenue Code is amended to read as follows:
‘‘(b) RETROACTIVITY
OF REGULATIONS
OR RUL-
INGS.—
‘‘(1) IN
GENERAL.—All final, temporary, or
proposed regulations and rulings issued by the Sec-
retary shall apply prospectively from the date of
publication of such regulation or ruling in the Fed-
eral Register.
‘‘(2) CONGRESSIONAL
AUTHORIZATION.—The
prospective only treatment of paragraph (1) may be
superseded by a specific legislative grant from Con-
gress authorizing the Secretary to prescribe the ef-
fective date with respect to a statutory provision.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to any temporary or proposed regu-
lation published as a final regulation after the date of the
enactment of this Act.
TITLE X—STUDY OF IMPACT OF
REGULATORY 
ANALYSIS
UPON SMALL BUSINESS
SEC. 1001. STUDY.
The Chief Counsel for Advocacy of the Small Busi-
ness Administration shall conduct a study of the impact
of all Federal regulatory paperwork and tax requirements
upon small business and report its findings to the Con-
gress within one year of the date of the enactment of this
Act.
TITLE XI—FAIR LABOR
STANDARDS ACT
SEC. 1101. APPLICATION OF FAIR LABOR STANDARDS ACT
OF 1938.
(a) MINIMUM WAGE.—
(1) SPECIAL INDUSTRY COMMITTEES.—Section
5(a) of the Fair Labor Standards Act of 1938 (29
U.S.C. 205(a)) is amended—
(A) by striking out ‘‘engaged in commerce
or in the production of goods for commerce, or
employed in any enterprise engaged in com-
merce or in the production of goods for com-
merce’’ and inserting in lieu thereof the follow-
ing: ‘‘who are (1) engaged in industrial home-
work subject to 11(d), or (2) either engaged in
commerce or engaged in the production of
goods for commerce or employed in an enter-
prise engaged in commerce or in the production
of goods for commerce’’; and
(B) by striking out ‘‘engaged in commerce
or in the production of goods for commerce in
particular industries’’ and inserting in lieu
thereof ‘‘so engaged’’.
(2) MINIMUM WAGE.—Section 6(a) of the Fair
Labor Standards Act of 1938 (29 U.S.C. 206(a)) is
amended by striking out ‘‘who in any workweek is
engaged in commerce or in the production of goods
for commerce, or is employed in an enterprise en-
gaged in commerce or in the production of goods for
commerce’’ and inserting in lieu thereof the follow-
ing: ‘‘who in any workweek is engaged in industrial
homework subject to 11(d) or either engaged in com-
merce or engaged in the production of goods for
commerce or employed in an enterprise engaged in
commerce or in the production of goods for com-
merce’’.
(3) WAGE ORDERS.—Section 8(a) of the Fair
Labor Standards Act of 1938 (29 U.S.C. 208(a)) is
amended by striking out ‘‘employers in American
Samoa engaged in commerce or in the production of
goods for commerce or in any enterprise engaged in
commerce or in the production of goods for com-
merce’’ and inserting in lieu thereof ‘‘employers in
American Samoa’’.
SEC. 1102. MAXIMUM HOURS.
Paragraphs (1) and (2) of section 7(a) of the Fair
Labor Standards Act of 1938 (29 U.S.C. 207(a)) are each
amended by striking the phrase ‘‘who in any workweek
is engaged in commerce or in the production of goods for
commerce, or is employed in an enterprise engaged in
commerce or in the production of goods for commerce’’
and inserting in lieu thereof the following: ‘‘who in any
workweek is (A) engaged in industrial homework subject
to 11(d), or (B) either engaged in commerce or engaged
in the production of goods for commerce or employed in
an enterprise engaged in commerce or in the production
of goods for commerce’’.
TITLE XII—INDEPENDENT
CONTRACTORS
SEC. 1201. SENSE OF CONGRESS.
It is the sense of Congress that the Internal Revenue
Service, in conjunction with the Office of Advocacy of the
Small Business Administration, and in cooperation with
the appropriate committees of Congress, should adopt ob-
jective, reasonable standards to determine independent
contractor status.
Æ
HR 1057 IH——2