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
The bill wants to make sure businesses owned by women follow certain steps to prove they are really owned by women before they can be part of government programs or goals. It also asks an important office to check how many businesses want to do this and how long it takes, but it says no extra money will be given to help with these changes.
Summary AI
H.R. 7105, also known as the “WOSB Certification and Opportunity Expansion Act,” aims to set new rules for how small businesses owned by women are officially certified by the government. It specifically says that only those businesses that have completed the certification process should count towards any government goals or targets related to working with women-owned businesses. The bill also includes deadlines for the Small Business Administration to make new rules and regularly update Congress on how many women-owned businesses are seeking certification and how long the process takes. It emphasizes that no extra funding will be provided to implement these changes.
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AnalysisAI
The proposed legislation, H.R. 7105, titled the "WOSB Certification and Opportunity Expansion Act," seeks to establish specific requirements for certifying small business concerns owned and controlled by women. This certification is aimed at determining eligibility for inclusion in government and federal agency goals related to supporting women-owned small businesses (WOSBs).
General Summary
The bill primarily outlines that to be counted towards government support goals, small businesses must be officially certified as women-owned. Self-certified businesses will not automatically qualify; instead, they must undergo a certification process overseen by the Small Business Administration (SBA) or another approved national certifying entity. The legislation also requires regular updates to the relevant congressional committees on the implementation progress and any issues arising in the certification process.
Significant Issues
Several notable issues arise from this bill:
Potential Exploitation: Allowing self-certified businesses to be counted towards goals until a formal determination is made could lead to exploitation. Businesses that do not sincerely meet women ownership requirements might benefit, particularly if there are delays in the certification process.
Rulemaking Delays: The bill allows up to a year for rulemaking and issuing the necessary regulations to implement these new certification requirements. This delay might slow the benefits the bill aims to extend to legitimate WOSBs.
Unclear Deadlines: The timeline for the actual certification process is not clearly defined, which could leave applicants in a prolonged state of uncertainty.
Administrative Burden: The requirement for quarterly briefings to Congress could place a significant strain on the SBA's resources, potentially impacting its ability to manage other tasks effectively.
Effectiveness of Language: The language regarding when the amendments take effect could be clearer. It currently hinges on an indefinite timeline based on regulatory actions rather than a fixed calendar date.
Public and Stakeholder Impact
Public Impact: For the general public, the bill aims to foster a fairer competitive environment by ensuring that only truly women-owned businesses benefit from government programs. Over time, this could promote genuine entrepreneurship among women, possibly leading to innovation and economic growth.
Impact on Stakeholders:
Women-Owned Businesses: Legitimate WOSBs should benefit from increased credibility and support. However, businesses waiting for certification might face periods of uncertainty which could affect their planning and operations.
Federal Agencies: With stricter certification regulations, agencies might face challenges achieving their small business goals, particularly if there are fewer certified WOSBs during the transition period.
SBA and Other Certifying Bodies: The additional administrative responsibilities could stretch resources thin. Without additional funding, as noted in the bill's CUTGO compliance, the agency might struggle to meet its new obligations without compromising other services.
In summary, while the bill aims to strengthen the integrity of supporting women-owned small businesses, its effectiveness could be undermined by implementation delays and administrative burdens. Adjustments may be needed to clarify timelines and ensure sufficient resources are allocated to effectively execute its provisions.
Issues
The provision allowing for the inclusion of self-certified Women-Owned Small Businesses (WOSBs) in government and agency goals until a determination is made might lead to potential exploitation by businesses that are not genuinely owned and controlled by women, as there could be a significant delay in the certification process. This is a significant ethical and legal issue covered under Section 2(a) and 2(b)(1).
The potential delay in rulemaking and the issuance of regulations (up to one year) could slow down the implementation of the Act's objectives, potentially leaving self-certified WOSBs in a state of uncertainty. This concern is underscored in Section 2(b)(2), where the timeline for regulation enactment is potentially insufficient.
The section does not specify a clear timeline or deadline for the Administrator or national certifying entities to make a determination on the certification applications, which could result in prolonged periods of uncertainty for applicants. This issue is apparent in Section 2(b)(1)(B)(iii).
The requirement for quarterly briefings may require significant effort and resources from the Small Business Administration (SBA), raising concerns about the agency's capacity to fulfill these requirements without detracting from other obligations. This is discussed in Section 2(c).
The language around the effective date of the amendments made in Section 2(a)(2) could be clearer; as it stands, it is conditional upon the issuance of regulations but does not provide a specific calendar date, leading to potential confusion.
The briefing requirements, while thorough, could impose a considerable administrative burden and cost on the SBA without providing additional funding, as addressed by the CUTGO compliance statement in Section 2(e).
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.