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ORGANIZATIONAL MEETING MEETING BEFORETHE COMMITTEE ON SMALL BUSINESS UNITED STATES HOUSE OF REPRESENTATIVES ONE HUNDRED THIRTEENTH CONGRESS FIRST SESSION MEETING HELD JANUARY 23, 2013 Small Business Committee Document Number 113–001 Available via the GPO Website: www.fdsys.gov U.S. GOVERNMENT PRINTING OFFICE 78–456 WASHINGTON : 2013 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 G N RI A E H with D O R P N1 V T P S K6 S tjames on DVerDate Mar 15 2010 01:54 Feb 02, 2013 Jkt 078456 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 E:\HR\OC\B456A.XXX B456A congress.#13 HOUSE COMMITTEE ON SMALL BUSINESS SAM GRAVES, Missouri, Chairman STEVE CHABOT, Ohio STEVE KING, Iowa MIKE COFFMAN, Colorado BLAINE LUETKEMEYER, Missouri MICK MULVANEY, South Carolina SCOTT TIPTON, Colorado JAIME HERRERA BEUTLER, Washington RICHARD HANNA, New York TIM HUELSKAMP, Kansas DAVID SCHWEIKERT, Arizona KERRY BENTIVOLIO, Michigan CHRIS COLLINS, New York TOM RICE, South Carolina NYDIA VELA´ZQUEZ, New York, Ranking Member YVETTE CLARKE, New York JUDY CHU, California JANICE HAHN, California DONALD PAYNE, JR., New Jersey GRACE MENG, New York BRAD SCHNEIDER, Illinois RON BARBER, Arizona ANN MCLANE KUSTER, New Hampshire PATRICK MURPHY, Florida LORI SALLEY, Staff Director PAUL SASS, Deputy Staff Director BARRY PINELES, Chief Counsel MICHAEL DAY, Minority Staff Director G N RI A E (II) H with D O R P N1 V T P S K6 S D tjames on VerDate Mar 15 2010 01:54 Feb 02, 2013 Jkt 078456 PO 00000 Frm 00002 Fmt 5904 Sfmt 5904 E:\HR\OC\B456A.XXX B456A C O N T E N T S OPENING STATEMENTS Page Hon. Sam Graves ..................................................................................................... 1 Hon. Nydia Vela´zquez ............................................................................................. 2 APPENDIX Committee Oversight Plan for the 113th Congress .............................................. 7 Committee Rules and Procedures for the 113th Congress ................................... 14 G N RI A E (III) H with D O R P N1 V T P S K6 S D tjames on VerDate Mar 15 2010 01:54 Feb 02, 2013 Jkt 078456 PO 00000 Frm 00003 Fmt 5904 Sfmt 0483 E:\HR\OC\B456A.XXX B456A G N RI A E H with D O R P N1 V T P S K6 S D tjames on VerDate Mar 15 2010 01:54 Feb 02, 2013 Jkt 078456 PO 00000 Frm 00004 Fmt 5904 Sfmt 0483 E:\HR\OC\B456A.XXX B456A ORGANIZATIONAL MEETING WEDNESDAY, JANUARY 23, 2013 HOUSE OF REPRESENTATIVES, COMMITTEE ON SMALL BUSINESS, Washington, DC. The Committee met, pursuant to call, at 1:40 p.m., in Room 2360, Rayburn House Office Building, Hon. Sam Graves [Chairman of the Committee] presiding. Present: Representatives Graves, Chabot, Coffman, Luetkemeyer, Mulvaney, Tipton, Hanna, Huelskamp, Schweikert, Bentivolio, Col- lins, Rice, Vela´zquez, Clarke, Payne, Meng, Schneider, and Mur- phy. Chairman GRAVES. We have a quorum, so we will call this hearing to order. I would like to welcome everybody to the Small Business Com- mittee organizational meeting. And I want to welcome all returning Members and some new Members, obviously, of the Committee. I know you are very excited to dive in and get to work. Before introducing the Republican Members, I would like to take a moment to thank Ranking Member Vela´zquez for her dedication and hard work, obviously, on behalf of all small businesses. Ranking Member Vela´zquez, I want to continue that cordial working environment that we established in the 112th Congress and before that, for that matter, too. There are five new Republican Members on the committee and one former member who has obviously seen the light and come back to us, and I would like to introduce those Members. Mr. Huelskamp is a rancher from Kansas with a Ph.D. from American University. We have Mr. Schweikert, who has a long history of public service in Arizona, in addition to being a small-business owner. Our returning member that I mentioned earlier is a fellow Mis- sourian, Mr. Luetkemeyer, who is a farmer, and he has been in the banking and insurance industry. Three of the new Members are freshmen: Mr. Bentivolio, a rancher from Michigan; Mr. Collins, who is a small-business owner and Erie County executive; and Mr. Rice, who started his own tax law firm in Myrtle Beach and served on the Horry County Council. And I expect that the experience that we have in a lot of our Members as small-business owners is going to be very significant and add a lot of value to the committee as we work to develop policies which will enable small businesses to expand and create jobs. I also would like to welcome back the Members who served on the committee during the 112th Congress: Mr. Chabot from Ohio; G RIN (1) A E H with D O R P N1 V T P S K6 S D tjames on VerDate Mar 15 2010 01:54 Feb 02, 2013 Jkt 078456 PO 00000 Frm 00005 Fmt 6633 Sfmt 6633 E:\HR\OC\B456A.XXX B456A 2 Mr. King from Iowa; Mr. Coffman from Colorado; Mr. Mulvaney from South Carolina; Mr. Tipton from Colorado; Ms. Herrera Beutler from Washington; and Mr. Hanna from New York. And I now yield to Ranking Member Vela´zquez for introduction of her Members. Ms. VELA´ZQUEZ. Thank you, Mr. Chairman. And I just would like to thank you for the work that we have done in the past. I am looking forward to work with you. As I have mentioned, and I have said it repeatedly, there is no Republican or Democratic approach when it comes to dealing with small-business needs. And I am looking forward to having a productive legislative session. We have, Mr. Chairman, an exceptional roster of Democratic Members joining the committee this Congress. They hail from across the country and bring a diverse set of experiences that will prove helpful as the committee moves forward. Returning Members such as Representative Yvette Clarke from New York. She is a fellow New Yorker and Brooklyn native, and I am proud to have her returning to the committee. In previous Congresses, she has been an important voice on the committee for female and minority entrepreneurs. Also returning, Ms. Judy Chu from California. Last Congress, she served as the ranking Democrat of the Contracting and Work- force Subcommittee. In that role, she has helped spearhead many of the Committee’s efforts to improve the procurement process for small businesses. Representative Janice Hahn from California, also returning to the committee. She has been a champion of green technology. She has already been an important voice on the Committee, and I am pleased to welcome her back. New Members: Representative Donald Payne, Jr., from New Jer- sey. Mr. Payne comes from Newark, New Jersey. This is his first term on the Committee. As a former city council member, I am sure he has been involved in local economic development issues, and I look forward to hearing about his experiences. Ms. Grace Meng from New York, our next addition to the Com- mittee, is not only coming from New York but she is a dear friend. Grace Meng joins us from New York’s Sixth Congressional District, which is next to my district and located in Queens. While in the State Assembly, Ms. Meng made helping small-business owners achieve their American dream a top priority, and I am pleased that she is joining us. Mr. Brad Schneider from Illinois joins us, from outside Chicago, Illinois. As someone who previously consulted for family-owned businesses, I am sure that he will be an asset to the Committee, and I look forward to hearing his views. Also joining us, Representative Ron Barber from Arizona. He comes from Tucson, Arizona. He himself is a small-business owner. Together, he and his wife run Toy Traders/Stork’s Nest, which spe- cializes in selling and trading used toys. I am sure his real work experience will benefit the Committee. And we have Representative Ann McLane Kuster from New Hampshire. Like many Committee Members, she, too, has a back- G N ground starting and running her own business. RI A E H with D O R P N1 V T P S K6 S D tjames on VerDate Mar 15 2010 02:04 Feb 02, 2013 Jkt 078456 PO 00000 Frm 00006 Fmt 6633 Sfmt 6633 E:\HR\OC\B456A.XXX B456A 3 And joining us also is Mr. Patrick Murphy from Florida. Having spent time both in the accounting field and in running his family’s construction business, I am certain he, too, will bring valuable experience to the Committee. I am pleased to see our returning Members of the Committee, as well as our new additions. Welcome to all of you, and I thank you for being here. Thank you, Mr. Chairman. Chairman GRAVES. Thank you, Ranking Member. Although we do have some policy differences, I firmly believe that there are many issues on which we are going to find a lot of common ground that is going to help small businesses by elimi- nating unnecessary programs and regulations, reducing redun- dancies in government, and, by far, ensuring that the Small Busi- ness Administration carries out policies that are dictated by Con- gress rather than devising its own that a lot of times are expensive, untested experiments to assist entrepreneurs. I believe that the rules package and the oversight plan under consideration today is going to lay the groundwork for finding those areas that we have in common while maintaining the highest levels of civility when we discuss our differences. And with that, I will yield to Ranking Member Vela´zquez for her opening statement. Ms. VELA´ZQUEZ. Thank you, Chairman Graves. As our Nation’s economic recovery continues, this should be a busy and productive time for the Committee. We all know the vital role entrepreneurs play in the broader economy. In that regard, the work of this Committee in fostering an environment where small businesses can flourish is critical. Small businesses remain a cor- nerstone of our economy, and we will do whatever it takes to support them. Generating nearly two-thirds of net new jobs over the last 15 years, small firms are the innovators and drivers of economic progress. During tough economic times, entrepreneurship is also important in giving dislocated workers opportunities to go into business for themselves and support their families. As we move forward, Mr. Chairman, we must make sure that small businesses are given the resources they need to prosper. And I look forward to continuing our efforts on behalf of small entrepreneurs during the 113th Congress. I yield back. Chairman GRAVES. We will move into the rules package. And I want to thank the minority and majority staffs for their hard work and cooperation in putting this package together. And I will high- light some of the changes in the rules that I think are going to pro- vide some greater transparency. The rules package for the 112th Congress created a lot of transparency and protected the rights of the minority. And in order to maintain that transparency and cohesiveness, the rules package for the 113th Congress does not diverge from the rules that were used in the 112th Congress except for two ways: The rules reduce the number of testimony copies required by the witnesses. And the second thing is the size of the subcommittees is going to shrink to six G N Republican and four Democratic Members. However, we will still RI A E H with D O R P N1 V T P S K6 S D tjames on VerDate Mar 15 2010 01:54 Feb 02, 2013 Jkt 078456 PO 00000 Frm 00007 Fmt 6633 Sfmt 6633 E:\HR\OC\B456A.XXX B456A 4 maintain the ability of any member to attend any subcommittee hearing as long as they just request to do so. And now I would recognize Ranking Member Vela´zquez for any remarks on the rules. Ms. VELA´ZQUEZ. Thank you, Mr. Chairman. Our committee rules determine how the committee operates. More importantly, by laying out a fair process, they help ensure that all points of view are considered. On this Committee, we have Members all across the country, representing our largest cities, rural areas, small towns, and every- thing in between. By taking an inclusive approach, the Committee benefits from hearing the different perspectives of all Members, re- gardless of party affiliation or ideology. Ultimately, this results in not just a fairer process, but also a better, stronger legislative prod- uct. A Committee that is run openly and fairly is a Committee that works. It is my hope that the rules we consider today will make that happen. Through their adoption, we will kick off the new Con- gress with a sense of comity and bipartisanship, which I hope to see sustained moving forward. I yield back. Chairman GRAVES. Are there any other Members who wish to be recognized for a statement on the rules package? Seeing none, the Committee now moves to consideration of the rules package. The clerk will please read the title of the document. The CLERK. ‘‘Rules and Procedures Adopted by the Committee on Small Business, United States House of Representatives, 113th Congress.’’ Chairman GRAVES. I would ask unanimous consent that the rules package be considered as read and open for amendment in its entirety. Does any Member seek recognition for the purpose of offering an amendment? Seeing none, the question is on adopting the rules. All those in favor, say ‘‘aye.’’ All those opposed, ‘‘no.’’ In the opinion of the chair, the ayes have it. The rules for the Small Business Committee in the 113th Congress are adopted. And the staff is authorized to make any technical and grammatical changes. Now we will move to the oversight plan, which is the second order of business. The plan represents the agenda for the committee during the 113th Congress. And I want to thank Ranking Member Vela´zquez again for her input into the oversight plan. I believe the plan adopted in the 112th Congress was comprehen- sive, and it enabled the Committee to focus on ensuring that the government does not hinder the ability of small businesses to create jobs. And as a result, the oversight plan prepared for the 113th Congress is similar to the one adopted in the 112th. Despite its overall similarity, there are a few key additions to the plan which we are considering today. The primary additions are oversight of legislation enacted in the 112th Congress that affects G N small businesses, including changes to the Small Business Innova- RI A E H with D O R P N1 V T P S K6 S D tjames on VerDate Mar 15 2010 12:29 Feb 01, 2013 Jkt 078456 PO 00000 Frm 00008 Fmt 6633 Sfmt 6633 E:\HR\OC\B456A.XXX B456A 5 tive Research Program, government contracting programs overseen by the SBA, and improved capital access for entrepreneurs associ- ated with the implementation of the Jumpstart Our Business Startups Act. At this point, I would yield to Ranking Member Vela´zquez for any comments she might have. Ms. VELA´ZQUEZ. Well, I would like to commend the chair for pro- ducing a thoughtful document. The plan calls for greater oversight of the Small Business Admin- istration and, in particular, its contracting and lending initiatives. In the past, this Committee has vigorously investigated fraud in the SBA’s contracting programs. We know that when unscrupulous actors misuse these initiatives, legitimate small businesses lose out on Federal procurement contracting. In that regard, it is vital that the Committee continue exposing fraud, waste, and abuse in these initiatives. In recent years, the Committee has been vigilant in examining the SBA disaster assistance efforts. Thanks to our work, Congress passed and the SBA is implementing reforms to improve these programs. In the wake of Hurricane Sandy, I hope we keep a close eye on how well these programs function. The oversight plan delineates several programs for review and possible termination. Our past work has revealed that there are agency programs that are duplicative and an unwise use of tax- payers’ dollars. It has always been a part of our core responsibility to carefully examine such instances and consider alternative op- tions as well as their elimination. This is central to why I have always advocated for a 2-year authorization period for the Small Business Administration and its programs. Congress should be reg- ularly seeking feedback from agencies and evaluating what is working and what is not. Collaborating with my colleagues on these matters and making the SBA more efficient must remain a top priority for this panel. This Committee has often served as a voice for entrepreneurs on Capitol Hill during these larger policy debates, and it is my hope that we will continue playing that vital role. Again, I commend the chairman on the development of this oversight plan. And I yield back. Chairman GRAVES. Thanks, Nydia. Are there any other Members who wish to be heard on the oversight plan? Seeing none, the Committee now moves for the consideration of the oversight plan. The clerk will please read the title of the document. The CLERK. ‘‘Oversight Plan of the Committee on Small Business for the One Hundred Thirteenth Congress.’’ Chairman GRAVES. I would ask unanimous consent that the oversight plan be considered as read and open for amendment in its entirety. Does any Member seek recognition for the purpose of offering an amendment? Seeing no amendments, the question is on adopting the oversight package. G N All those in favor, say ‘‘aye.’’ RI A E H with D O R P N1 V T P S K6 S D tjames on VerDate Mar 15 2010 12:29 Feb 01, 2013 Jkt 078456 PO 00000 Frm 00009 Fmt 6633 Sfmt 6633 E:\HR\OC\B456A.XXX B456A 6 All those opposed, ‘‘no.’’ In the opinion of the chair, the ayes have it. The oversight plan for the Small Business Committee in the 113th Congress is adopted. Committee staff is authorized to make any technical and grammatical changes to the plan. I would like to thank everybody for being here today and look forward to working with you. And with that, the meeting of the Committee on Small Business is adjourned. [Whereupon, at 1:53 p.m., the subcommittee was adjourned.] G N RI A E H with D O R P N1 V T P S K6 S D tjames on VerDate Mar 15 2010 12:29 Feb 01, 2013 Jkt 078456 PO 00000 Frm 00010 Fmt 6633 Sfmt 6633 E:\HR\OC\B456A.XXX B456A