[House Hearing, 115 Congress]
[From the U.S. Government Publishing Office]
ORGANIZATIONAL MEETING
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HEARING
BEFORE THE
COMMITTEE ON SMALL BUSINESS
UNITED STATES
HOUSE OF REPRESENTATIVES
ONE HUNDRED FIFTEENTH CONGRESS
FIRST SESSION
__________
HEARING HELD
FEBRUARY 1, 2017
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Small Business Committee Document Number 115-001
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HOUSE COMMITTEE ON SMALL BUSINESS
STEVE CHABOT, Ohio, Chairman
STEVE KING, Iowa
BLAINE LUETKEMEYER, Missouri
DAVE BRAT, Virginia
AUMUA AMATA COLEMAN RADEWAGEN, American Samoa
STEVE KNIGHT, California
TRENT KELLY, Mississippi
ROD BLUM, Iowa
JAMES COMER, Kentucky
JENNIFFER GONZALEZ-COLON, Puerto Rico
DON BACON, Nebraska
BRIAN FITZPATRICK, Pennsylvania
ROGER MARSHALL, Kansas
VACANT
NYDIA VELAZQUEZ, New York, Ranking Member
DWIGHT EVANS, Pennsylvania
STEPHANIE MURPHY, Florida
AL LAWSON, JR., Florida
YVETTE CLARK, New York
JUDY CHU, California
ALMA ADAMS, North Carolina
ADRIANO ESPAILLAT, New York
BRAD SCHNEIDER, Illinois
VACANT
Kevin Fitzpatrick, Majority Staff Director
Jan Oliver, Majority Deputy Staff Director and Chief Counsel
Adam Minehardt, Staff Director
C O N T E N T S
OPENING STATEMENTS
Page
Hon. Steve Chabot................................................ 1
Hon. Nydia Velazquez............................................. 3
APPENDIX
Additional Material for the Record:
Authorization and Oversight Plan of the Committee on Small
Business for the One Hundred Fifteenth Congress............ 8
Rules and Procedures Adopted by the Committee on Small
Business................................................... 15
ORGANIZATIONAL MEETING
----------
WEDNESDAY, FEBRUARY 1, 2017
House of Representatives,
Committee on Small Business,
Washington, DC.
The Committee met, pursuant to call, at 11:04 a.m., in Room
2360, Rayburn House Office Building, Hon. Steve Chabot
[Chairman of the Committee] presiding.
Present: Representatives Chabot, King, Luetkemeyer, Brat,
Radewagen, Knight, Kelly, Blum, Comer, Gonzalez-Colon, Bacon,
Marshall, Velazquez, Evans, Murphy, and Lawson.
Chairman CHABOT. The Committee will come to order.
Good morning. We want to welcome everybody here, both
Members and those in the audience, and those tens of people at
home that are watching this. I call the Committee on Small
Business organizational meeting to order. We want to welcome
all the returning and new members of the Committee.
Before introducing the new Republican members, I would like
to take a moment to recognize the Ranking Democratic Member,
Congresswoman Nydia Velazquez, with whom I have served for many
years, with one of us in the chair and the other being Ranking
Member over a number of years, and sometimes she is in the
chair and sometimes I am the chair, and we go back and forth.
But hopefully, it will be this way for a while. We don't agree
on that I am sure. But we have an excellent working
relationship, and I know that we will continue to build on this
Committee's strong bipartisan record of accomplishment for
entrepreneurs.
We are open to working with our Democratic colleagues on
amendments to bills and anything that they think that we can
improve the atmosphere and climate for small business in this
country.
There are six new Republican Members of the Committee. Rod
Blum, now in his second term in Congress, was the CEO of a
small software company before his election. He is fired up to
join this Committee and put that practical experience to work,
and we are happy to have him.
The other five new Members are freshmen. James Comer served
as a Kentucky State Legislator, where he had quite a reputation
for tackling government waste. Having also run his family's
farm in south central Kentucky, I know he has got a passion for
rural economic development. We welcome him as well.
Don Bacon has just started his second tour of duty, you
might say, in public service. He recently retired from the Air
Force as a Brigadier General. And the people of Nebraska
decided not to let him enjoy his retirement. They sent him
here, and we are glad they did.
Mr. BACON. Thank you, sir.
Chairman CHABOT. So we welcome you, Don.
Is Brian here?
Mr. MARSHALL. He is not.
Chairman CHABOT. Okay. I think he got held up in another
Committee. Well, I will say some nice things about him. You can
all tell him I said nice things. Brian Fitzpatrick is from
Pennsylvania. He also served our country as an FBI agent and as
a special assistant U.S. attorney. Brian and I--well, I will go
into the rest a little later.
Jenniffer Gonzalez--is it Colon? Say it for me.
Miss GONZALEZ-COLON. Gonzalez-Colon.
Chairman CHABOT. Gonzalez-Colon. Okay. Thank you. --is from
Puerto Rico, was one of the nation's youngest elected
statehouse members, but she didn't stop there. Her colleagues
valued her leadership so much that they made her Speaker of the
House at the ripe old age of 32. I believe she has an
incredibly bright future here in Congress, and we are honored
she is starting out here with us. We are going to count on her
leadership, just as the people of Puerto Rico certainly did, as
they obviously also do with our Ranking Member, Ms. Velazquez.
Dr. Roger Marshall joins us from the first district of
Kansas. Dr. Marshall is well home back home, since he has
delivered more than 5,000 babies in his career as an OB/GYN. As
a physician, his practice is a small business. And that
experience is going to be helpful to us as we take a closer
look at healthcare solutions in the upcoming weeks and months.
We welcome you here, Doctor.
Mr. MARSHALL. Thank you.
Chairman CHABOT. The very diverse backgrounds and
constituencies of our freshmen Members will add to the
experience and expertise of our returning Members in making
sure we deliver a better way for America's small businesses.
I would like to welcome back the members who served on the
Committee during the 114th Congress, and many in previous
Congresses as well. My friend and fellow Judiciary member,
Steve King from Iowa, we are on the Judiciary Committee
together and have served many years together, and he is a
really good friend. Blaine Luetkemeyer from Missouri, Dave Brat
from Virginia, Amata Radewagen from American Samoa, Steve
Knight from California, and Trent Kelly from Mississippi, all
returning members.
And finally, I would like to announce the Vice Chair of the
Committee and the Subcommittee chairs for the 115th Congress.
We are pleased that Blaine Luetkemeyer is willing and able to
continue serving as the Vice Chair of the Committee in the
115th Congress. He really did a great job in the last Congress.
He has been a hard-working, very hard-working member of this
Committee for a long time. Very insightful in the questions
that he has asked witnesses over the years. I had an
opportunity to observe that. He brings a great deal to this
Committee.
We are also grateful to Amata Radewagen for continuing her
work as Chair of our Subcommittee on Health and Technology. I
am looking forward to seeing Dave Brat put his background as an
economist to work as Chair of the Subcommittee on Economic
Growth, Tax, and Capital Access. Steve Knight will continue his
hard work on contracting reform that he was involved in in the
last Congress in his new role as Chairman of the Subcommittee
on Contracting and Workforce. Trent Kelly is bringing his years
of experience as a District Attorney and a leader in the Army
National Guard to his work as Chairman of the Subcommittee on
Investigations, Oversight, and Regulations. In addition, Rod
Blum will bring his expertise as a tech entrepreneur and
representative of a great many Iowa farmers as Chairman of the
Subcommittee on Agriculture, Energy, and Trade.
And I would now like to yield to the Ranking Member, Ms.
Velazquez, to make a statement or introduce her Members.
Ms. VELAZQUEZ. Sure. Thank you, Mr. Chairman.
I want to first welcome all returning and new Members on
both sides of the aisle and take a moment to introduce the
Democratic members of the committee. We have new Members, and
are still waiting for some other appointments to the committee.
First, Dwight Evans of Pennsylvania. Mr. Evans is new to
Congress this term. He previously served in the Pennsylvania
House of Representatives for over 35 years, where he was the
chair of the Appropriations Committee for two decades. He also
serves on the House Committee on Agriculture.
Stephanie Murphy of Florida, is new to Congress. This is
her first term. She previously worked at the U.S. Department of
Defense, was a businesswoman and a college instructor. She also
serves on the House Armed Services Committee.
Mr. Al Lawson of Florida is new to Congress. He previously
served in the Florida House of Representatives and the Florida
Senate. He also serves on the House Committee on Agriculture.
So I look forward to working with all of you.
Some of the other members are at other Committee hearings.
They will be coming in late. As soon as they make it, I will
introduce them.
Thank you, Mr. Chairman.
Chairman CHABOT. Thank you very much.
Ms. VELAZQUEZ. I yield back.
Chairman CHABOT. Thank you.
There are over 28 million small businesses in America.
While the members of this Committee will inevitably have policy
differences, all of us have a common goal: To make sure that
our small businesses grow and create the critical jobs that
America needs. There are numerous issues where we can find
common ground to make government more efficient and ensure that
the Small Business Administration carries out the will of
Congress. I believe that the Rules Package and Authorization
and Oversight Plan will lay the groundwork for finding those
areas that we have in common, while maintaining the highest
levels of bipartisan for which this Committee is known.
And I would now like to yield to the Ranking Member for the
purpose of making an opening statement.
Ms. VELAZQUEZ. Thank you, Mr. Chairman.
Small businesses continue making vital contributions to our
economy, and we will do whatever it takes to support them. By
the way, this may be the only committee in Congress that works
in a bipartisan matter. And I hope that we will continue doing
that. I always say that there is no Republican or Democratic
approach when we deal with small businesses.
Generating nearly two-thirds of net new jobs over the last
15 years, small firms are the innovators and drivers of
economic progress. Entrepreneurship also serves as the backbone
of our nation's economy, enabling individuals to pursue their
dreams and become financially self-sufficient.
As we move forward, we must make sure that small businesses
are given the resources and protections they need to prosper.
As has been said in the past, both Republicans and Democrats
want and need small firms to succeed and create jobs in our
communities. I look forward to continuing this tradition during
the 115th Congress.
Mr. Chairman, I yield back.
Chairman CHABOT. Thank you. The gentlelady yields back.
I would like to thank both the Majority and Minority staffs
for their work and cooperation in putting together the Rules
Package that we are considering here this morning.
There are no substantive changes from the Rules adopted in
the last Congress, the 114th Congress. The Rules have simply
been reordered and labeled with subheadings to make it easier
for Members and staff to consult and follow the appropriate
rules. In consideration of time demands of Members, we will
continue to apply the 5-minute rule on questioning of witnesses
to the Chair and Ranking Member. This worked well during the
114th Congress, and I expect that we will continue to be able
to accommodate the needs of all Members in questioning
witnesses.
I would now like to recognize the Ranking Member, Ms.
Velazquez, for any remarks that she may have relative to the
Rules Package.
Ms. VELAZQUEZ. Thank you.
Our committee's Rules are not only a vital institutional
requirement, but they also set clear parameters for how we
operate. More importantly, they contain protections ensuring
that all points of view are considered. It is important for
Members on both sides of the aisle to know that, in most
regards, these rules are the rules I used when I was Chair of
the committee, and I believe it is a testament to the
Chairman's willingness to work in a bipartisan way.
In this day and age, when too many try to stack the rules
in their favor, it is refreshing that this committee does not
have to be concerned about such distractions. A committee that
is run openly and fairly is a committee that works and can best
achieve its objective. It is my hope that the Rules we consider
today will make this happen. Through their adoption, we will
start the 115th Congress in a way that permits us to work
across the aisle, and equally important, to solve the problems
facing our nation's small businesses.
With that, I yield back, Mr. Chairman.
Chairman CHABOT. Thank you. The gentlelady yields back.
Are there any other Members who would like to have time to
speak relative to the rules package?
Okay. If not, the Committee now moves to consideration of
the rules package. The clerk will read the title of the
document.
The CLERK. Rules and procedures adopted by the Committee--
--
Chairman CHABOT. I 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 no amendments, the question is on adopting the
rules. All those in favor, say aye.
Any opposed, say no.
In the opinion of the Chair, the ayes have it. The ayes
have it. The Rules for the Small Business Committee in the
115th Congress are adopted. The staff is authorized to make
technical and grammatical changes.
Today's second order of business is to consider the
Committee's Authorization and Oversight Plan. This plan
represents the agenda for the Committee during the 115th
Congress. I want to thank the Ranking Member, Ms. Velazquez,
for her input on the Authorization and Oversight plan, and her
staff and our staff as well.
The plan is similar to the Oversight Plan adopted in the
114th Congress, with an emphasis on a close and thorough
examination of all the SBA programs. In addition, this plan
reflects the Committee's broad oversight authority under the
Rules of the House to investigate, really, any problem
affecting small business.
The House Rules for the 115th Congress require each House
Committee to include in its Authorization and Oversight Plan
any unauthorized programs or agencies within that Committee's
jurisdiction that have received funding in the past fiscal
year. In the case of permanent authorizations, each Committee
must list the programs that have not received a comprehensive
review in the prior three Congresses.
This Committee has been diligent about aggressive and
bipartisan oversight of programs within its jurisdiction. In
reviewing the SBA programs, we have found none that meet the
tests set forward in the new House Rules. In the 115th
Congress, we will continue the vigorous oversight that this
Committee undertook in the 114th, including our ongoing
examinations of the SBA 7(a) loan and the HUBZone programs. And
we are obviously looking to our new Subcommittee Chairman, Mr.
Kelly, for distinguishing himself in that oversight.
At this point, I would yield to the Ranking Member, Ms.
Velazquez, for any comments that she may have on the
Authorization and Oversight Plan.
Ms. VELAZQUEZ. Thank you, Mr. Chairman.
The Oversight Plan sets forth a policy framework for our
work this Congress. And the Chairman is to be commended on
producing a thoughtful document. The plan calls for the robust
oversight of the SBA and other federal small business
initiatives, a long tradition that this committee takes
seriously.
In the past, we have investigated the SBA's disaster and
contracting programs, which has yielded positive changes. These
are but two examples of the benefits that congressional
oversight can provide. It also identifies several programs for
review and possible termination. In this context, the committee
has forged a bipartisan consensus opposing the SBA continued
creation of unauthorized pilot programs. Diverting scarce
taxpayer dollars away from proven programs can open the door to
fraud, waste, and abuse, something we are all working to
minimize. On the flip side, there are statutorily authorized
programs that need more support. One such program is the
Women's Procurement Program, which sets aside contracts for
women-owned small businesses. Unfortunately, it continues to
languish and is underutilized.
But, while the Agency finds millions annually for its pet
projects, it neglects important programs like this. In this
regard, I look forward to working with my colleagues to examine
how the agency is establishing its priorities.
The Majority also cites the need to evaluate trade
policies. With President Trump's more protectionist view on
trade, it is critical to understand how small businesses will
be affected by such changes, as well as their views on the
heightened tensions with major trading partners such as Mexico.
U.S. businesses sold nearly $240 billion worth of products to
Mexico in 2015, making it the second largest export market for
American companies. Many small retailers and restaurants also
rely on imports from Mexico. In this regard, I look forward to
the committee's examination of how closing or reducing U.S.
access to the Mexico market will impact America's small
businesses.
In addition, I am glad that the Majority has stated in
their Oversight Plan that it will consider ways to enhance the
utilization of the Manufacturing Extension Partnership at the
Department of Commerce. This is especially important given that
President Trump has stated he wants to abolish it.
Similarly, I am also heartened with the Majority's focus on
renewable energy, which has been a bipartisan issue for this
committee for as long as I can remember. I am hopeful our
committee will continue advancing policies and programs
important to small businesses.
Finally, regulatory burden is an important issue, and we
must continue our work in this area. We need to understand how
we can make the regulatory process friendlier to small
businesses without undermining essential safeguards that many
of these rules provide. We have heard it before, but small
businesses need to be a priority when it comes to these issues,
not an afterthought.
I look forward to examining these matters this year and
continuing to work with Chairman Chabot and the rest of the
committee's Members on both sides of the aisle. Whether it is
the SBA or matters of importance to small businesses, Congress
needs a clear agenda for assisting them. It is paramount that
we start addressing these issues quickly. By doing so, we have
the potential to truly help create new jobs and move the
economy forward. With that, I urge my colleagues to approve
this Oversight Plan.
I yield back, Mr. Chairman.
Chairman CHABOT. Thank you. The gentlelady yields back.
Are there any other Members who wish to be recognized for
the purpose of making a statement on the Authorization and
Oversight Plan?
Okay. If not, the Committee now moves to consideration of
the Authorization and Oversight Plan. The clerk will read the
title of the document.
The CLERK. Authorization and Oversight Plan----
Chairman CHABOT. I ask unanimous consent that the
Authorization and 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?
If not, seeing no amendments, the question is on adopting
the Authorization and Oversight Package. All those in favor,
say aye.
All opposed, say no.
The ayes have it. In the opinion of the Chair, the ayes it.
The ayes have it. The Authorization and Oversight Plan for the
Small Business Committee in the 115th Congress is adopted. And
Committee staff is authorized to make technical and grammatical
changes to the Authorization and Oversight Plan.
And Mr. Fitzpatrick is not here yet, is he? Either
Fitzpatrick, because actually the Staff Director of this
Committee had back surgery recently. So we appreciate your
prayers, condolences, and hope he gets well and gets back here.
But we have another Fitzpatrick that is in Committee. My crack
staff had noted that he went to LaSalle University, and they
were going to mention that I went to the real LaSalle, and that
is LaSalle High School in Cincinnati, Ohio. Very humorous
thing. I was going to say you are welcome to the Committee
anyway, and that would have gone into the ether. He didn't hear
it, but you just did. So anyway, great humor by my staff.
I think all our business is complete. So I want to thank
everyone for participating today, and we look forward to
working with all of you.
If there is no further business to come before the
Committee, we are adjourned. Thank you very much.
[Whereupon, at 11:25 a.m., the Committee was adjourned.]
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