I 
110TH CONGRESS 
1ST SESSION H. R. 1012 
To reform laws and procedures affecting small business. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 13, 2007 
Mr. BUCHANAN (for himself, Ms. FALLIN, Mr. GILCHREST, Mr. DAVIS of Illi-
nois, and Ms. GINNY BROWN-WAITE of Florida) introduced the following 
bill; which was referred to the Committee on Education and Labor, and 
in addition to the Committees on Small Business, Judiciary, Oversight 
and Government Reform, and Ways and Means, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To reform laws and procedures affecting small business. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Small Business Growth Act of 2007’’. 
(b) TABLE OF CONTENTS.—The table of contents is 
as follows: 
Sec. 1. Short title and table of contents. 
TITLE I—ASSOCIATION HEALTH PLANS 
Sec. 101. Rules governing association health plans. 
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‘‘PART 8—RULES GOVERNING ASSOCIATION HEALTH PLANS 
‘‘Sec. 801. Association health plans. 
‘‘Sec. 802. Certification of association health plans. 
‘‘Sec. 803. Requirements relating to sponsors and boards of trustees. 
‘‘Sec. 804. Participation and coverage requirements. 
‘‘Sec. 805. Other requirements relating to plan documents, contribution 
rates, and benefit options. 
‘‘Sec. 806. Maintenance of reserves and provisions for solvency for plans 
providing health benefits in addition to health insurance 
coverage. 
‘‘Sec. 807. Requirements for application and related requirements. 
‘‘Sec. 808. Notice requirements for voluntary termination. 
‘‘Sec. 809. Corrective actions and mandatory termination. 
‘‘Sec. 810. Trusteeship by the Secretary of insolvent association health 
plans providing health benefits in addition to health insur-
ance coverage. 
‘‘Sec. 811. State assessment authority. 
‘‘Sec. 812. Definitions and rules of construction. 
Sec. 102. Clarification of treatment of single employer arrangements. 
Sec. 103. Enforcement provisions relating to association health plans. 
Sec. 104. Cooperation between Federal and State authorities. 
Sec. 105. Effective date and transitional and other rules. 
TITLE II—EXTENSION OF INCREASED EXPENSING 
Sec. 201. Extension of increased expensing for small businesses. 
TITLE III—PAPERWORK REQUIREMENTS 
Sec. 301. Suspension of fines for first-time paperwork violations by small busi-
ness concerns. 
TITLE IV—FEDERAL RULES OF CIVIL PROCEDURE 
IMPROVEMENTS 
Sec. 401. Attorney accountability. 
Sec. 402. Applicability of Rule 11 to State cases affecting interstate commerce. 
Sec. 403. Prevention of forum-shopping. 
Sec. 404. Rule of construction. 
Sec. 405. Three-strikes rule for suspending attorneys who commit multiple Rule 
11 violations. 
Sec. 406. Presumption of rule 11 violation for repeatedly relitigating same 
issue. 
Sec. 407. Enhanced sanctions for document destruction in pending Federal 
court proceedings. 
Sec. 408. Ban on concealment of unlawful conduct. 
TITLE V—AWARDING OF PROCUREMENT CONTRACTS 
Sec. 501. Increase in government-wide goal for procurement contracts awarded 
to small business concerns. 
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TITLE I—ASSOCIATION HEALTH 
PLANS 
SEC. 
101. 
RULES 
GOVERNING 
ASSOCIATION 
HEALTH 
PLANS. 
(a) IN GENERAL.—Subtitle B of title I of the Em-
ployee Retirement Income Security Act of 1974 is amend-
ed by adding after part 7 the following new part: 
‘‘PART 8—RULES GOVERNING ASSOCIATION 
HEALTH PLANS 
‘‘SEC. 801. ASSOCIATION HEALTH PLANS. 
‘‘(a) IN GENERAL.—For purposes of this part, the 
term ‘association health plan’ means a group health plan 
whose sponsor is (or is deemed under this part to be) de-
scribed in subsection (b). 
‘‘(b) SPONSORSHIP.—The sponsor of a group health 
plan is described in this subsection if such sponsor— 
‘‘(1) is organized and maintained in good faith, 
with a constitution and bylaws specifically stating its 
purpose and providing for periodic meetings on at 
least an annual basis, as a bona fide trade associa-
tion, a bona fide industry association (including a 
rural electric cooperative association or a rural tele-
phone cooperative association), a bona fide profes-
sional association, or a bona fide chamber of com-
merce (or similar bona fide business association, in-
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cluding a corporation or similar organization that 
operates on a cooperative basis (within the meaning 
of section 1381 of the Internal Revenue Code of 
1986)), for substantial purposes other than that of 
obtaining or providing medical care; 
‘‘(2) is established as a permanent entity which 
receives the active support of its members and re-
quires for membership payment on a periodic basis 
of dues or payments necessary to maintain eligibility 
for membership in the sponsor; and 
‘‘(3) does not condition membership, such dues 
or payments, or coverage under the plan on the 
basis of health status-related factors with respect to 
the employees of its members (or affiliated mem-
bers), or the dependents of such employees, and does 
not condition such dues or payments on the basis of 
group health plan participation. 
Any sponsor consisting of an association of entities which 
meet the requirements of paragraphs (1), (2), and (3) 
shall be deemed to be a sponsor described in this sub-
section. 
‘‘SEC. 
802. 
CERTIFICATION 
OF 
ASSOCIATION 
HEALTH 
PLANS. 
‘‘(a) IN GENERAL.—The applicable authority shall 
prescribe by regulation a procedure under which, subject 
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