IB 
Union Calendar No. 121 
109TH CONGRESS 
1ST SESSION 
H. R. 230 
[Report No. 109–208] 
To amend the Small Business Act to direct the Administrator of the Small 
Business Administration to establish a program to provide regulatory 
compliance assistance to small business concerns, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 4, 2005 
Mr. SWEENEY introduced the following bill; which was referred to the 
Committee on Small Business 
JULY 28, 2005 
Additional sponsors: Mr. LATHAM, Mr. CASE, Mr. SESSIONS, and Ms. ZOE 
LOFGREN of California 
JULY 28, 2005 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on January 4, 2005] 
A BILL 
To amend the Small Business Act to direct the Adminis-
trator of the Small Business Administration to establish 
a program to provide regulatory compliance assistance 
to small business concerns, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘National Small Business 
Regulatory Assistance Act of 2005’’. 
SEC. 2. PURPOSE. 
The purpose of this Act is to establish a program to— 
(1) provide confidential assistance to small busi-
ness concerns; 
(2) provide small business concerns with the in-
formation necessary to improve their rate of compli-
ance with Federal and State regulations; 
(3) create a partnership among Federal agencies 
to increase outreach efforts to small business concerns 
with respect to regulatory compliance; 
(4) provide a mechanism for unbiased feedback 
to Federal agencies on the regulatory environment for 
small business concerns; and 
(5) utilize the service delivery network of Small 
Business Development Centers to improve access of 
small business concerns to programs to assist them 
with regulatory compliance.
SEC. 3. DEFINITIONS. 
In this Act, the definitions set forth in section 37(a) 
of the Small Business Act (as added by section 4 of this 
Act) shall apply. 
SEC. 4. SMALL BUSINESS REGULATORY ASSISTANCE PRO-
GRAM. 
The Small Business Act (15 U.S.C. 637 et seq.) is 
amended— 
(1) by redesignating section 37 as section 38; 
and 
(2) by inserting after section 36 the following 
new section: 
‘‘SEC. 37. SMALL BUSINESS REGULATORY ASSISTANCE PRO-
GRAM. 
‘‘(a) DEFINITIONS.—In this section, the following defi-
nitions apply: 
‘‘(1) 
ASSOCIATION.—The 
term 
‘Association’ 
means the association recognized by the Adminis-
trator of the Small Business Administration under 
section 21(a)(3)(A). 
‘‘(2) PARTICIPATING SMALL BUSINESS DEVELOP-
MENT CENTER.—The term ‘participating Small Busi-
ness Development Center’ means a Small Business 
Development Center participating in the program.
‘‘(3) PROGRAM.—The term ‘program’ means the 
regulatory assistance program established under this 
section. 
‘‘(4) REGULATORY COMPLIANCE ASSISTANCE.— 
The term ‘regulatory compliance assistance’ means 
assistance provided by a Small Business Development 
Center to a small business concern to enable the con-
cern to comply with Federal regulatory requirements. 
‘‘(5) SMALL BUSINESS DEVELOPMENT CENTER.— 
The term ‘Small Business Development Center’ means 
a Small Business Development Center described in 
section 21. 
‘‘(6) STATE.—The term ‘State’ means each of the 
several States, the District of Columbia, the Common-
wealth of Puerto Rico, the Virgin Islands, Guam, and 
American Samoa. 
‘‘(b) AUTHORITY.—In accordance with this section, the 
Administrator shall establish a program to provide regu-
latory compliance assistance to small business concerns 
through selected Small Business Development Centers, the 
Association of Small Business Development Centers, and 
Federal compliance partnership programs. 
‘‘(c) SMALL BUSINESS DEVELOPMENT CENTERS.— 
‘‘(1) IN
GENERAL.—In carrying out the pro-
gram, the Administrator shall enter into arrange-
ments with selected Small Business Development Cen-
ters under which such Centers shall provide— 
‘‘(A) access to information and resources, 
including current Federal and State nonpunitive 
compliance and technical assistance programs 
similar to those established under section 507 of 
the Clean Air Act (42 U.S.C. 7661f); 
‘‘(B) training and educational activities; 
‘‘(C) confidential, free-of-charge, one-on-one, 
in-depth counseling to the owners and operators 
of small business concerns regarding compliance 
with Federal and State regulations, as long as 
such counseling is not considered to be the prac-
tice of law in a State in which a Small Business 
Development Center is located or in which such 
counseling is conducted; 
‘‘(D) technical assistance; 
‘‘(E) referrals to experts and other providers 
of compliance assistance who meet such stand-
ards for educational, technical, and professional 
competency as are established by the Adminis-
trator; and 
‘‘(F) access to the Internet and training on 
Internet use, including the use of the Internet
website established by the Administrator under 
subsection (d)(1)(C). 
‘‘(2) REPORTS.— 
‘‘(A) IN
GENERAL.—Each selected Small 
Business Development Center shall transmit to 
the Administrator a quarterly report that in-
cludes— 
‘‘(i) a summary of the regulatory com-
pliance assistance provided by the center 
under the program; and 
‘‘(ii) any data and information ob-
tained by the center from a Federal agency 
regarding regulatory compliance that the 
agency intends to be disseminated to small 
business concerns. 
‘‘(B) ELECTRONIC FORM.—Each report re-
quired under subparagraph (A) shall be trans-
mitted in electronic form. 
‘‘(C) INTERIM REPORTS.—A participating 
Small Business Development Center may trans-
mit to the Administrator such interim reports as 
the Center considers appropriate. 
‘‘(D) LIMITATION ON DISCLOSURE REQUIRE-
MENTS.—The Administrator shall not require a 
Small Business Development Center to disclose
the name or address of any small business con-
cern that received or is receiving assistance 
under the program, except that the Adminis-
trator shall require such a disclosure if ordered 
to do so by a court in any civil or criminal ac-
tion. 
‘‘(d) DATA REPOSITORY AND CLEARINGHOUSE.— 
‘‘(1) IN
GENERAL.—In carrying out the pro-
gram, the Administrator shall— 
‘‘(A) act as the repository of and clearing-
house for data and information submitted by 
Small Business Development Centers; 
‘‘(B) submit to the President, the Committee 
on Small Business and Entrepreneurship of the 
Senate, and the Committee on Small Business of 
the House of Representatives an annual report 
that includes— 
‘‘(i) a description of the types of assist-
ance provided by participating Small Busi-
ness Development Centers under the pro-
gram; 
‘‘(ii) data regarding the number of 
small business concerns that contacted par-
ticipating Small Business Development
Centers regarding assistance under the pro-
gram; 
‘‘(iii) data regarding the number of 
small business concerns assisted by partici-
pating Small Business Development Centers 
under the program; 
‘‘(iv) data and information regarding 
outreach activities conducted by partici-
pating Small Business Development Centers 
under the program, including any activities 
conducted in partnership with Federal 
agencies; 
‘‘(v) data and information regarding 
each case known to the Administrator in 
which one or more Small Business Develop-
ment Centers offered conflicting advice or 
information regarding compliance with a 
Federal or State regulation to one or more 
small business concerns; 
‘‘(vi) any recommendations for im-
provements in the regulation of small busi-
ness concerns; and 
‘‘(vii) a list of regulations identified by 
the Administrator, after consultation with 
the Chief Counsel for Advocacy of the Ad-
ministration, who shall review such list, 
and the Small Business and Agriculture 
Regulatory Enforcement Ombudsman, as 
being most burdensome to small business 
concerns, and recommendations to reduce or 
eliminate the burdens of such regulations; 
and 
‘‘(C) establish an Internet website that— 
‘‘(i) provides access to Federal, State, 
academic, and industry association Internet 
websites containing industry-specific regu-
latory compliance information that the Ad-
ministrator deems potentially useful to 
small businesses attempting to comply with 
Federal regulations; and 
‘‘(ii) arranges such Internet websites in 
industry-specific categories. 
‘‘(e) REVIEW OF BURDENSOME REGULATIONS AND PE-
TITION FOR AGENCY REVIEW.— 
‘‘(1) TRANSMISSION OF LIST OF REGULATIONS 
TO CHIEF COUNSEL FOR ADVOCACY.—The Adminis-
trator shall transmit to the Chief Counsel for Advo-
cacy of the Administration a copy of the list of regu-
lations submitted under subsection (d)(1)(B) as part 
of the annual report required by that subsection.
‘‘(2) REVIEW OF LIST OF REGULATIONS.—The 
Chief Counsel for Advocacy shall review the list of 
regulations transmitted under paragraph (1) and 
identify any regulation that— 
‘‘(A) is eligible for review in accordance 
with section 610 of title 5, United States Code; 
‘‘(B) has a significant impact on a substan-
tial number of small business concerns that is 
substantially different from the impact indicated 
in the final regulatory flexibility analysis for 
that regulation, as published with the final regu-
lation in the Federal Register; or 
‘‘(C) has a significant impact on a substan-
tial number of small business concerns and for 
which no final regulatory flexibility analysis 
was ever performed. 
‘‘(3) NOTIFICATION AND AGENCY REVIEW.—With 
respect to any regulation identified under paragraph 
(2) the Chief Counsel for Advocacy shall— 
‘‘(A) notify the appropriate Federal rule-
making agency and the Office of Information 
and Regulatory Affairs of the Office of Manage-
ment of the identification of such rule or regula-
tion; and 
‘‘(B) request the review of such regulation—
‘‘(i) in accordance with section 610 of 
title 5, United States Code; or 
‘‘(ii) for any impact it has on small 
business concerns. 
‘‘(4) ANNUAL REPORT.—The Chief Counsel for 
Advocacy shall publish an annual report containing 
a list of any regulation identified under paragraph 
(2) and the disposition by the appropriate agency. 
‘‘(f) ELIGIBILITY.— 
‘‘(1) IN GENERAL.—A Small Business Develop-
ment Center shall be eligible to receive assistance 
under the program only if the center is certified 
under section 21(k)(2). 
‘‘(2) WAIVER.— With respect to a Small Busi-
ness Development Center seeking assistance under the 
program, the administrator may waive the certifi-
cation requirement set forth in paragraph (1) if the 
Administrator determines that the center is making a 
good faith effort to obtain such certification. 
‘‘(3) EFFECTIVE
DATE.—The restriction de-
scribed in paragraph (1) shall not apply to any 
Small Business Development Center before October 1, 
2005. 
‘‘(g) SELECTION
OF PARTICIPATING STATE PRO-
GRAMS.—
‘‘(1) ESTABLISHMENT
OF
PROGRAM.—In con-
sultation with the Association and giving substantial 
weight to the Association’s recommendations, the Ad-
ministrator shall select the Small Business Develop-
ment Center programs of 2 States from each of the 
following groups of States to participate in the pro-
gram: 
‘‘(A) Group 1: Maine, Massachusetts, New 
Hampshire, Connecticut, Vermont, and Rhode 
Island. 
‘‘(B) Group 2: New York, New Jersey, Puer-
to Rico, and the Virgin Islands. 
‘‘(C) Group 3: Pennsylvania, Maryland, 
West Virginia, Virginia, the District of Colum-
bia, and Delaware. 
‘‘(D) Group 4: Georgia, Alabama, North 
Carolina, South Carolina, Mississippi, Florida, 
Kentucky, and Tennessee. 
‘‘(E) Group 5: Illinois, Ohio, Michigan, In-
diana, Wisconsin, and Minnesota. 
‘‘(F) Group 6: Texas, New Mexico, Arkan-
sas, Oklahoma, and Louisiana. 
‘‘(G) Group 7: Missouri, Iowa, Nebraska, 
and Kansas.
‘‘(H) Group 8: Colorado, Wyoming, North 
Dakota, South Dakota, Montana, and Utah. 
‘‘(I) Group 9: California, Guam, Hawaii, 
Nevada, and Arizona. 
‘‘(J) Group 10: Washington, Alaska, Idaho, 
and Oregon. 
‘‘(2) DEADLINE FOR INITIAL SELECTIONS.—The 
Administrator shall make selections under paragraph 
(1) not later than 60 days after promulgation of regu-
lations under section 5 of the National Small Busi-
ness Regulatory Assistance Act of 2005. 
‘‘(3) ADDITIONAL SELECTIONS.—Not earlier than 
the date 3 years after the date of the enactment of this 
paragraph, the Administrator may select Small Busi-
ness Development Center programs of States in addi-
tion to those selected under paragraph (1). The Ad-
ministrator shall consider the effect on the programs 
selected under paragraph (1) before selecting addi-
tional programs under this paragraph. 
‘‘(4) COORDINATION
TO
AVOID
DUPLICATION 
WITH
OTHER
PROGRAMS.—In selecting programs 
under this subsection, the Administrator shall give a 
preference to Small Business Development Center pro-
grams that have a plan for consulting with Federal 
and State agencies to ensure that any assistance pro-
vided under this section is not duplicated by an exist-
ing Federal or State program. 
‘‘(h) MATCHING NOT REQUIRED.—Subparagraphs (A) 
and (B) of section 21(a)(4) shall not apply to assistance 
made available under the program. 
‘‘(i) DISTRIBUTION OF GRANTS.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), each State program selected to receive a 
grant under subsection (g) in a fiscal year shall be el-
igible to receive a grant in an amount not to exceed 
the product obtained by multiplying— 
‘‘(A) the amount made available for grants 
under this section for the fiscal year; and 
‘‘(B) the ratio that the population of the 
State bears to the population of all the States 
with programs selected to receive grants under 
subsection (g) for the fiscal year. 
‘‘(2) MINIMUM AMOUNT.—The minimum amount 
that a State program selected to receive a grant under 
subsection (g) shall be eligible to receive under this 
section for any fiscal year shall be $200,000. The Ad-
ministrator shall reduce the amount described in 
paragraph (1) as appropriate to carry out the pur-
poses of this paragraph and subsection (j)(2).
‘‘(j) EVALUATION AND REPORT.—Not later than 3 
years after the establishment of the program, the Comp-
troller General of the United States shall conduct an evalua-
tion of the program and shall transmit to the Adminis-
trator, the Committee on Small Business and Entrepre-
neurship of the Senate, and the Committee on Small Busi-
ness of the House of Representatives a report containing 
the results of the evaluation along with any recommenda-
tions as to whether the program, with or without modifica-
tion, should be extended to include the participation of all 
Small Business Development Centers. 
‘‘(k) AUTHORIZATION OF APPROPRIATIONS.— 
‘‘(1) IN GENERAL.—There is authorized to be ap-
propriated to carry out this section $5,000,000 for fis-
cal year 2006 and each subsequent fiscal year. 
‘‘(2) LIMITATION ON USE OF OTHER FUNDS.— 
The Administrator shall carry out the program only 
with amounts appropriated in advance specifically to 
carry out this section.’’. 
SEC. 5. PROMULGATION OF REGULATIONS. 
After providing notice and an opportunity for com-
ment and after consulting with the Association (but not 
later than 180 days after the date of the enactment of this 
Act), the Administrator shall promulgate final regulations 
to carry out this Act, including regulations that establish—
(1) priorities for the types of assistance to be 
provided under the program; 
(2) standards relating to educational, technical, 
and support services to be provided by participating 
Small Business Development Centers; 
(3) standards relating to any national service 
delivery and support function to be provided by the 
Association under the program; 
(4) standards relating to any work plan that the 
Administrator may require a participating Small 
Business Development Center to develop; and 
(5) standards relating to the educational, tech-
nical, and professional competency of any expert or 
other assistance provider to whom a small business 
concern may be referred for compliance assistance 
under the program.
Union Calendar No. 121 
109TH CONGRESS 
1ST SESSION 
H. R. 230 
[Report No. 109–208] 
A BILL 
To amend the Small Business Act to direct the Ad-
ministrator of the Small Business Administration 
to establish a program to provide regulatory com-
pliance assistance to small business concerns, 
and for other purposes. 
JULY 28, 2005 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed