[Senate Report 114-412]
[From the U.S. Government Publishing Office]
Calendar No. 253
114th Congress } { Report
SENATE
2d Session } { 114-412
======================================================================
SMALL BUSINESS BROADBAND AND EMERGING INFORMATION TECHNOLOGY
ENHANCEMENT ACT
_______
December 20, 2016.--Ordered to be printed
Filed, under authority of the order of the Senate of December 10
(legislative day, December 9), 2016
_______
Mr. Vitter, from the Committee on Small Business and Entrepreneurship,
submitted the following
R E P O R T
[To accompany S. 2116]
The Committee on Small Business and Entrepreneurship, to
which was referred the bill (S. 2116) to improve certain
programs of the Small Business Administration to better assist
small business customers in accessing broadband technology, and
for other purposes, having considered the same, reports
favorably thereon with an amendment and recommends that the
bill, as amended, do pass.
I. INTRODUCTION
The Small Business Broadband and Emerging Information
Technology Enhancement Act (S. 2116) was introduced by Jeanne
Shaheen, for herself, and Chairman David Vitter on October 1,
2015. The bill provides for training at the SBA to assist small
businesses with the goal of providing resources and information
for improved small business access to broadband. During the
markup of the bill, the bill was approved unanimously by voice
vote.
II. HISTORY (PURPOSE & NEED FOR LEGISLATION)
In 2010, the Federal Communications Commission (FCC)
released the National Broadband Plan to improve Internet access
in the United States. The report included a strategy for
maximizing the use of high-speed Internet (``broadband'') for
entrepreneurial activity and job growth. This plan included
sections for launching a private-public partnership that helps
small businesses use broadband technology. Parts of this report
are included in the Findings section of the bill, including the
clause that the SBA should hone its expertise in broadband and
advanced IT technology to ensure that small businesses benefit
from these services. The report suggested that these services
be disseminated through the SBA's counseling programs and
resource partners. Since the release of the National Broadband
Plan, certain areas of the United States continue to have
patchwork access to high-speed Internet, despite how necessary
it is in the modern economy.
On March 23, 2015, President Obama signed the Presidential
Memorandum, ``Expanding Broadband Deployment and Adoption by
Addressing Regulatory Barriers and Encouraging Investment and
Training.'' This memorandum created the Broadband Opportunity
Council, which is tasked with producing ``specific
recommendations to increase broadband deployment, competition
and adoption through executive actions within the scope of
existing Agency programs, missions and budgets.''
On August 20, 2015, the Broadband Opportunity Council
produced a report with a series of recommendations for how
federal agencies should meet those objections. One
recommendation cited the need for additional training and
recommended that the SBA ``develop and deploy new digital
empowerment training for small businesses'' by creating new
modules that help businesses utility broadband-based
applications more effectively. These modules are also meant to
improve operations and ultimately strengthen market sales.
III. HEARINGS & ROUNDTABLES
In the 110th Congress, the Senate Committee on Small
Business and Entrepreneurship held a hearing on September 26,
2007 entitled, ``Improving Internet Access to Help Small
Business Compete in the Global Economy.'' This hearing focused
on obstacles to the purchase of broadband internet services
facing small businesses. The hearing drew attention to the
detrimental effects a lack of broadband access can have on
small businesses. Senators heard testimony from members of the
Federal Communications Commission (FCC), non-profit scholars
and software executives. The hearing also examined legislation
that would promote competition in the rural broadband market.
In the 111th Congress, the Senate Committee on Small
Business and Entrepreneurship held a hearing on April 27, 2010
entitled, ``Connecting Main Street to the World: Federal
Efforts to Expand Small Business Internet Access.'' This
hearing discussed the National Broadband Plan, the broadband
funding contained within the American Recovery and Reinvestment
Act (ARRA) and the need for broadband expansion into rural
areas. The Senators heard from Federal Communications
Commission (FCC) Chairman Julius Genachowski, Administrator
Larry Strickling from the National Telecommunications and
Information Administration (NTIA), representatives from the
Small Business Administration and the Department of Agriculture
and various organizations representing broadcasters and
wireless providers. Over the course of this hearing, witness
testimony suggested that the SBA appoint a coordinator to
handle business broadband and information technology issues.
The hearing also focused on ways to increase minority access to
broadband and examine the training on broadband services
available to small business owners.
On May 13, 2010, the Senate Committee on Small Business and
Entrepreneurship held a roundtable entitled, ``Connecting Main
Street to the World: Small Business Perspectives on Internet
Access.'' The discussion included broadband policy experts,
internet providers and a representative of the Association of
Small Business Development Centers. The roundtable covered many
of the same issues as the April 10th hearing, from the
perspective of the small business consumer of broadband
services. Dialogue focused on how entrepreneurs' use of
Internet access to run their businesses has increased over
time, whether competitive options exist to make broadband rates
affordable, what broadband speeds and bundles are needed, how
business owners fund broadband access and the availability of
educational resources on broadband are offered by providers.
The roundtable also addressed challenges to broadband access
for businesses owned by socially and economically disadvantaged
groups.
IV. DESCRIPTION OF BILL
The Small Business Broadband and Emerging Information
Technology Enhancement Act addresses the need for access to
broadband by U.S. small businesses, an issue that has been
explored by the Senate Committee on Small Business and
Entrepreneurship for many years. The Act also enables these
businesses to utilize broadband resources more effectively. S.
2116 builds on data amassed in the 2010 National Broadband Plan
and 2015 Broadband Opportunity Council Report, two
comprehensive studies on national broadband. References to
these reports are included to provide explanation and
perspective for the Act's call for broadband expansion and the
need for these resources to be provided through SBA's training
and counseling programs. The Small Business Broadband and
Emerging Information Technology Enhancement Act also directs an
existing SBA senior staff member to coordinate programs
relating to broadband policies and directs the agency in
providing training for the staff to assist small businesses
adapting to technological changes. The Act directs the SBA's
Chief Counsel for Advocacy to evaluate current data and the
impact of broadband speed and price on small businesses. The
Small Business Broadband and Emerging Information Technology
Act provides clear direction for the Small Business
Administration to bring much needed broadband and information
technology training within reach of America's small business
community.
V. COMMITTEE VOTE
In compliance with rule XXVI(7)(b) of the Standing Rules of
the Senate, the following vote was recorded on October 7, 2015.
A motion to adopt the Small Business Broadband and Emerging
Information Technology Enhancement Act, a bill to improve
certain programs of the Small Business Administration to better
assist small business customers in accessing broadband
technology, and for other purposes, was approved unanimously by
voice vote with the following Senators present: Vitter, Scott,
Fischer, Gardner, Ernst, Enzi, Shaheen, Cantwell, Cardin,
Booker, Hirono and Peters.
VI. COST ESTIMATE
In compliance with rule XXVI(11)(a)(1) of the Standing
Rules of the Senate, the Committee estimates the cost of the
legislation will be equal to the amounts discussed in the
following letter from the Congressional Budget Office:
October 7, 2015.
S. 2116 would direct the Small Business Administration
(SBA) to broaden its assistance to small businesses by
providing information and counseling on adopting and using
broadband and other information technologies. Among other
things, S. 2116 would direct the agency to expand the duties of
a senior staff member to coordinate broadband programs and
activities of SBA and other agencies that work on broadband
policy, provide training to SBA staff on ways to assist small
businesses to adopt and use those technologies, and broaden the
role of small business development centers to provide small
businesses with information about broadband technologies. Based
on information from SBA, CBO estimates that implementing S.
2116 would cost less than $500,000 over the 2016-2020 period;
any such spending would be subject to the availability of
appropriated funds. Enacting S. 2116 would not affect direct
spending or revenues; therefore, pay-as-you-go procedures do
not apply. CBO estimates that enacting S. 2116 would not
increase net direct spending or on-budget deficits in any of
the next four consecutive 10-year periods beginning in 2026.
S. 2116 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would not affect the budgets of state, local, or tribal
governments.
The CBO staff contact for this estimate is Susan Willie.
The estimate was approved by H. Samuel Papenfuss, Deputy
Assistant Director for Budget Analysis.
VII. EVALUATION OF REGULATORY IMPACT
In compliance with rule XXVI(11)(b) of the Standing Rules
of the Senate, it is the opinion of the Committee that no
significant additional regulatory impact will be incurred in
carrying out the provisions of this legislation. There will be
no additional impact on the personal privacy of companies or
individuals who utilize the services provided.
VIII. SECTION-BY-SECTION ANALYSIS
Section 1. Short title
This section provides the title of this Act (``Small
Business Broadband and Emerging Information Technology
Enhancement Act of 2015'').
Section 2. Findings
This section references reports attesting to the nationwide
need for broadband expansion, including the 2010 National
Broadband Plan, the 2015 Broadband Opportunity Council Report,
and data on applied broadband usage.
Under the 2010 National Broadband Plan, the Small Business
Association (SBA) should ensure that its programs maintain
broadband expertise, tools and training courses needed to serve
small businesses. Congress was advised to consider ways to
leverage existing assistance provided through entrepreneurial
development programs and focus training on advanced IT and
broadband applications. Congress should also consider ways to
support technology training among women entrepreneurs through
women's business centers. Training programs should include
entry-level broadband 101 courses to provide small businesses
with an introduction to how to capitalize on broadband
connectivity as well as more advanced information technology
applications. Small and medium enterprise information
technology training should include resources for non-IT staff,
such as how to use e-commerce tools for sales, streamline
finance with online records and leverage knowledge management
across an organization.
The 2015 Broadband Opportunity Council Report focuses on
the modernization of federal programs. Modernization allows for
greater civic participation, provides tools for open government
and streamlines the government process. This section encourages
changes in how we access educational resources, collaborate in
the educational process, conduct research and continue to learn
anytime, anyplace and at any pace. It also facilitates new
business models, improves business efficiencies, drives job
creation and connects manufacturers and store-fronts to clients
and partners worldwide.
This section also highlights how broadband access has been
applied to create new business models in the marketplace. Data
has shown that more than three-quarters of the highest-grossing
mobile software applications (``apps'') are produced by
startups and small companies. Seventy-eight percent of the
leading app companies are located in U.S. regions outside of
Silicon Valley. The emergence of the app industry over the past
eight years has grown to a $120 billion-dollar economy fueled
by small businesses.
Section 3. Broadband and Emerging Information Technology Coordinator
Subsection 3(a)--This section defines ``Associate
Administrator'' as Associate Administrator for the Office of
Investment and Innovation and ``Broadband and Emerging
Information Technology Coordinator'' as an SBA employee
designated to carry out broadband and emerging information
technology coordination responsibilities of the Small Business
Administration.
Subsection 3(b)--The Associate Administrator shall
designate a senior employee from the Office of Investment and
Innovation to serve as the Broadband and Emerging Information
Technology Coordinator. The Coordinator reports to the
Associate Administrator, and works in coordination with the
Chief Information Officer, Chief Technology Officer, Head of
Office of Technology and any other administrator determined
appropriate by the Associate Administrator. The Coordinator's
qualifications require experience developing and implementing
telecommunications policy.
The position would be responsible for coordinating programs
that assist small business concerns related to broadband and
other emerging information technology. The position would also
serve as primary SBA liaison to other federal agencies related
to these policy areas and would identify best practices
relating to broadband and emerging IT that may benefit small
business concerns.
The Coordinator would also identify and catalog tools and
training available through the resource partners that assist
small businesses.
The section also states that the Coordinator's hours shall
not consist of more than 20 percent travel outside of the
United States to perform official duties.
Subsection 3(c). Broadband and Emerging Information
Technology Training and Authorization of Appropriations--The
Associate Administrator shall provide training at SBA that
familiarizes employees with broadband and other emerging
information technology and includes instruction on counseling
small business concerns and federal government programs related
to these areas. Training also ensures that employees fully
utilize tools and training cataloged and identified by SBA's
resource partners.
No specific appropriation amount is made for this bill, and
this section instead authorizes that which is necessary to
carry out the section.
Subsection 3(d). Reports--This section requires that, every
other year, the Coordinator submit to the House Small Business
Committee and Senate Small Business and Entrepreneurship
Committee a report on SBA's programs and activities relating to
broadband and other emerging information technology. This
requirement would commence not later than 2 years after the
date on which the Associate Administrator makes the first
designation of the position and for every two years thereafter.
This section requires the Chief Counsel for Advocacy to
conduct a study evaluating the impact of broadband speed and
price on small business concerns. The SBA Office of Advocacy's
report will be released not later than 3 years after the date
of the enactment of this Act. The Chief Counsel for Advocacy
shall submit the results to the Senate's Committee on Commerce,
Science and Transportation and Committee on Small Business and
Entrepreneurship and the House of Representatives' Committee on
Energy and Commerce and Committee on Small Business. The report
shall include a survey of broadband speeds available to small
businesses, associated costs, types of technology used and
policy recommendations for improving small business access to
broadband services.
Section 4. Entrepreneurial development
This section amends the problem-solving assistance
provisions of the small business development center program to
include improving competitiveness and productivity of small
business concerns by assisting entrepreneurs in accessing
broadband and emerging information technology.