Overview

Title

To establish requirements relating to certification of small business concerns owned and controlled by women for certain purposes, and for other purposes.

ELI5 AI

H.R. 7105 is a rule that says only small businesses truly owned and run by women can help meet certain targets for government projects, and the Small Business Administration has to check and report back regularly on how this is working.

Summary AI

H.R. 7105 is a bill aimed at setting new standards for certifying small businesses owned and controlled by women. The bill excludes self-certified businesses from government and agency goals unless they meet specific certification standards. It mandates the Small Business Administration to create regulations and provide quarterly briefings to Congress on the certification process. The bill does not authorize additional funding for its implementation.

Published

2024-01-29
Congress: 118
Session: 2
Chamber: HOUSE
Status: Introduced in House
Date: 2024-01-29
Package ID: BILLS-118hr7105ih

Keywords AI

wosb certification women-owned small businesses small business administration government contracting goals certification standards self-certification exclusion sba quarterly briefings legislation implementation administrative burden h.r. 7105

Sources

Bill Statistics

Size

Sections:
2
Words:
1,085
Pages:
6
Sentences:
25

Language

Nouns: 306
Verbs: 101
Adjectives: 64
Adverbs: 7
Numbers: 49
Entities: 48

Complexity

Average Token Length:
4.50
Average Sentence Length:
43.40
Token Entropy:
4.82
Readability (ARI):
25.02

AnalysisAI

Overview of the Bill

House Bill 7105, titled the "WOSB Certification and Opportunity Expansion Act," aims to enhance the certification process for small businesses owned and controlled by women. Its primary goal is to ensure only those businesses officially certified are considered in meeting government-wide and agency-specific targets for supporting women-owned small businesses. The bill outlines the certification requirements, introduces a new rulemaking timeline, and requires periodic reports on progress.

Notable Issues

Several issues are highlighted in the bill, which may have implications for its implementation and effectiveness:

  1. Self-Certification Concerns: A provision in the bill allows self-certified women-owned small businesses (WOSBs) to be counted towards government goals temporarily until a formal certification determination is made. This could be exploited by businesses not genuinely owned by women, raising fairness and authenticity concerns.

  2. Timeline for Certification: The bill does not specify a concrete timeline for completing the certification process. This omission could leave some self-certified WOSBs uncertain about their status, potentially influencing their business strategies and opportunities.

  3. Regulatory Delays: Up to a year has been allowed for rulemaking and issuance of necessary regulations under the bill. These delays may slow the realization of the bill's objectives, which could hinder the anticipated expansion of opportunities for WOSBs.

  4. Administrative Burden: The requirement for the Small Business Administration (SBA) to provide comprehensive quarterly briefings could significantly increase its operational burden. With no additional funding allocated, there is potential for these tasks to detract from other critical SBA responsibilities.

  5. Ambiguity on Effective Dates: The language concerning the effective date of certain amendments is unclear, creating potential confusion among stakeholders about when specific changes will be enacted.

Potential Impacts

Broadly, the bill seeks to support and empower women entrepreneurs by ensuring that government support targets are effectively implemented. However, the outlined concerns may influence its impact on different stakeholders:

  • Public Impact: The bill could enhance transparency and accountability in how government goals for supporting women-owned businesses are met. By requiring formal certification, it may increase trust in the program's integrity.

  • Impact on Women-Owned Businesses: Authentically women-owned small businesses stand to benefit positively if certified, as they would be properly recognized and supported by government targets. However, the ambiguity in timelines and potential delays in certification could introduce uncertainty and hinder business planning.

  • Administrative Considerations: For the SBA, executing quarterly briefings may strain existing resources, potentially impacting its efficiency in other areas unless additional funding or resources are provided. This could influence the overall execution and efficacy of the bill.

  • Broader Business Community: The certification process may create an even playing field, possibly reducing instances of unfair advantageous claims by businesses that are not genuinely women-owned.

Critics might argue that the bill could have been more robust with definite timelines and clearer language, ensuring that the changes lead to tangible, timely improvements for women entrepreneurs. Nonetheless, the broader intention behind the legislation underscores a commitment to correcting imbalances in support for women-owned businesses in the government sector.

Issues

  • The provision allowing self-certified WOSBs to count towards government goals until a formal determination is made could lead to exploitation by businesses that are not genuinely women-owned, creating fairness and authenticity concerns. (Section 2(a)(1), Section 2(b)(1))

  • The absence of a specific timeline for certification determination leaves self-certified WOSBs in a state of uncertainty, which may impact their business operations and planning. (Section 2(b)(1))

  • Potential delays in rulemaking and regulation issuance, which could take up to a year, might slow down the implementation of the Act's objectives, affecting the overall success of enhancing opportunities for women-owned businesses. (Section 2(b)(2))

  • The administrative burden on the Small Business Administration (SBA) due to extensive quarterly briefing requirements raises concerns about the SBA's capacity to meet these obligations without impacting other duties, especially since no additional funding is provided for these tasks. (Section 2(c), Section 2(e))

  • The lack of clear language regarding the effective date of certain amendments may lead to confusion among stakeholders about when specific provisions apply. (Section 2(a)(2))

Sections

Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.

1. Short title Read Opens in new tab

Summary AI

The section gives the official name of the legislation, which is "WOSB Certification and Opportunity Expansion Act."

2. Exclusion of self-certified small business concerns owned and controlled by women from goals Read Opens in new tab

Summary AI

This section of the bill establishes that only small businesses owned and run by women, which have received official certification, will be counted toward government goals for supporting women-owned businesses. It sets rules for the certification process, includes a requirement for regular progress updates, and notes that no extra funding is allocated to implement these changes.