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TITLE XVI--INDUSTRIAL BASE MATTERS Subtitle C--Matters Relating to Small Business Concerns |
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P. L. 112- |
House Conference Report 112-705 |
SEC. 1681. SAFE HARBOR FOR GOOD FAITH COMPLIANCE EFFORTS.(a) Small Business Fraud- Section 16(d) of the Small Business Act (15 U.S.C. 645(d)) is amended by inserting after paragraph (2) the following: `(3) LIMITATION ON LIABILITY- This subsection shall not apply to any conduct in violation of subsection (a) if the defendant acted in good faith reliance on a written advisory opinion from a Small Business Development Center (as defined in this Act), or an entity participating in the Procurement Technical Assistance Cooperative Agreement Program defined in chapter 142 of title 10, United States Code; however nothing in this Act shall obligate either entity to provide such a letter nor shall the provision of such a letter in any way render the providing entity liable to the business concern should the Administrator later determine that the concern is not a small business concern. Upon issuance of an advisory opinion under this paragraph, the entity issuing the advisory opinion shall remit a copy of the opinion to the General Counsel of the Administration, who may reject the advisory opinion. If the General Counsel of the Administration rejects the advisory opinion, the Administration shall notify the entity issuing the advisory opinion and the recipient of the opinion, after which time the business concern may not rely upon the opinion.'. (b) Regulations- Not later than 270 days after the date of enactment of this part, the Administrator of the Small Business Administration shall issue rules defining what constitutes an adequate advisory opinion for purposes of section 16(d)(3) of the Small Business Act. (c) Small Business Compliance Guide- Not later than 270 days after the date of enactment of this part, the Administrator of the Small Business Administration shall issue (pursuant to section 212 of the Small Business Regulatory Enforcement Fairness Act of 1996) a compliance guide to assist business concerns in accurately determining their status as a small business concern. |
Safe harbor for good faith compliance
efforts (sec. 1681) The House bill contained a provision (sec. 1681) that would amend section 16(d) of the Small Business Act (15 U.S.C. 645(d)) to provide a `safe harbor' for certain firms that violate the prohibition against misrepresenting themselves as small businesses. The Senate amendment contained no similar provision. The Senate recedes with an amendment that would provide safe harbor for a firm that relies in good faith on a written advisory opinion provided by a Small Business Development Center or an entity participating in the Procurement Technical Assistance Program. Any such written advisory opinion would have to be submitted for review to the General Counsel of the Small Business Administration, which would have the authority to reject the opinion. |
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House Report 112-479 |
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SECTION 1681--SAFE HARBOR FOR GOOD FAITH COMPLIANCE EFFORTS This section would amend subsection (d) of section 16 of the Small Business Act (15 U.S.C. 645) by clarifying that a firm or individual will not be held liable if acting in reliance on a written advisory opinion from outside counsel. This section is intended to allow the firm or individual to establish that they acted in good faith in attempting to comply with current laws related to small business concerns. The committee believes this provision is necessary in order to aid firms or individuals who may not have absolute certainty as to whether or not they are considered a small business and are fully intending to comply with law. The committee also recommends a provision elsewhere in this title that establishes an Office of Hearings and Appeals, which would adjudicate matters related to firms accused of misrepresenting themselves as small businesses.
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