[Congressional Record Volume 164, Number 188 (Thursday, November 29, 2018)]
[House]
[Pages H9732-H9738]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          BIPARTISAN WORK OF THE FINANCIAL SERVICES COMMITTEE

  The SPEAKER pro tempore. Under the Speaker's announced policy of 
January 3, 2017, the gentleman from Texas (Mr. Hensarling) is 
recognized for 60 minutes as the designee of the majority leader.
  Mr. HENSARLING. Mr. Speaker, I rise tonight on behalf of the 
Financial Services Committee.
  Mr. Speaker, it has been my great privilege to have the 
responsibility to chair this committee for the last 6 years. I take no 
pride on behalf of myself, but I take a lot of pride in the work that 
has been done on this committee.
  A lot of that work, Mr. Speaker, has been bipartisan. And I believe, 
indeed, that the Financial Services Committee is the hardest-working, 
most productive committee in the United States House. We have produced 
more bills; we have had more bills passed on the floor; we have had 
more bills signed into law than any other committee.
  I am especially proud of the work that we have done to create more 
pro-growth economic policy throughout banking and finance, and the 
passage of S. 2155, the Economic Growth, Regulatory Relief and Consumer 
Protection Act, has meant so much to helping create more capital to 
help save our credit unions and community banks, and to really play a 
part in the unparalleled economic growth that we see in our Nation 
today. I take great pride in that work on behalf of all our members.

                              {time}  1930

  I also take great pride on behalf of our Members for a piece of 
legislation

[[Page H9733]]

that modernized the foreign investment in the U.S. The bill is 
technically known by its acronym, FIRRMA, and it modernizes a regime 
that had not been modernized in quite some time.
  Mr. Speaker, so many of us know we have challenges in America today 
with foreign interests that come in and essentially take our 
intellectual property, that take our technology, and regrettably China 
is one of the prime perpetrators of this. I have had the occasion to go 
to China and meet with their leadership. And I want China to rise, I 
want them to have economic growth, but not at the expense of the United 
States of America and not by violating either the letter or the spirit 
of the WTO, of the World Trade Organization, which we helped them enter 
a couple of decades ago.
  Mr. Speaker, I am proud of the work, especially, done by the 
gentleman from North Carolina, who is the vice chairman of our 
Terrorism and Illicit Finance Subcommittee. He was the House leader on 
this legislation and worked with the senior senator from Texas, John 
Cornyn, my friend, to bring this onto the President's desk that 
ultimately got signed into law.
  This was really a revolutionary law dealing with both export 
controls, foreign investment in the U.S., and the gentleman from North 
Carolina, Mr. Pittenger, was an early leader. He saw the threat before 
others saw it.
  I have had a number of great privileges serving as chairman, but one 
of the greatest privileges is serving with men and women who have 
vision, who have commitment, who have principle, and that certainly 
describes the gentleman from North Carolina.
  Regrettably, he and I are both departing after this Congress, and 
that is a bittersweet feeling. I think we both look forward to the next 
opportunity that we have.
  Mr. Speaker, I want to yield him some time, because it is important 
for us to hear from him about the significance of this legislation and 
how important it is. I was happy to be in the White House not too long 
ago to have the President extoll the virtues of this law as well.
  Mr. Speaker, I will miss his company, I will miss his leadership, and 
there is no one that I know of who is a greater authority on terrorist 
finance who is serving in the U.S. Congress today than  Robert 
Pittenger of North Carolina.
  Mr. Speaker, I yield to the gentleman from North Carolina (Mr. 
Pittenger), my friend.
  Mr. PITTENGER. Mr. Speaker, I thank the chairman for his kind 
remarks. I remember the first time we met. It was across the street, 
and I approached him about wanting to serve on his committee. Little 
did I know that I was headed back to graduate school. He gave me a 
binder about 6 inches thick and said: Go study it. I had to look up all 
the acronyms, about 100 of them, and memorize those to get started.
  Mr. Speaker, Chairman Hensarling's leadership and the quality of 
person he is, he got out in front. He enabled us to become leaders, he 
enabled us to learn, to give focus, direction on important issues 
relative to the security of this country, relative to the economic 
freedoms of this country, and for that, I have the deepest sense of 
gratitude and respect that he empowered us as he led us.
  That is a great testament and a legacy I think that he will carry 
throughout this United States Congress, and the model that he has been 
for each of us as we have watched, not just his work ethic, but his 
character and who he is and how that translated into the public policy 
for the good of the American people.
  So, Mr. Speaker, let me say in my deepest heart my appreciation and 
my love for him and his sweet wife and his wonderful kids. What a 
tribute it was to be there with him yesterday when they unveiled the 
painting that will go in the Financial Services room, to the accolades 
of the Vice President and Senator Phil Gramm and so many others who 
were there to pay tribute to a great leader for our country. So I thank 
the chairman.
  And as Chairman Hensarling spoke to the issues relative to FIRRMA, 
yes, we have great challenges from nation states who seek to exploit 
our laws, who have sought to secure proprietary technology for their 
own interests and objectives, and particularly, as Chairman Hensarling 
mentioned, China.
  China, since 2015, has acquired 50 technology companies, 
semiconductor companies, many of them a part of our Department of 
Defense. These are critical companies for our own national security. 
They have been able to circumvent our laws through joint ventures, 
through minority partnerships to be able to obtain this technology.
  In fact, on one occasion, Chairman Hensarling and I were coming back 
from Asia, and we stopped in Anchorage and we visited our base there, 
and they showed us the Stealth F-22. And as the general was showing the 
incredible aspects of this remarkable plane, the greatest aircraft we 
have, he said: By the way, the technology of this plane, the engine was 
sold to China by GE.
  Companies have been forced, extorted in a sense, to gain access to 
Chinese markets. This is wrong. It is morally wrong. It is ethically 
wrong. It is wrong for our national security.
  The FIRRMA bill, which Chairman Hensarling recognized and helped 
pass, it wouldn't have happened without his total commitment and 
leadership. So this country is more secure today because of what passed 
regarding the FIRRMA bill.
  The rules will be written over the next year or so. We trust that all 
that was done will come out and close off these loopholes that have 
allowed foreign entities to exploit our Nation's national security.
  So this bill and our interests are even more secure as a result of 
the jobs bill that the chairman has advanced for us today. It does 
continue to ensure the security against predatory Chinese investments 
by modernizing our securities laws to reclaim the U.S. IPO market, all 
of this as China lays out its blueprint for dominance in the tech 
industry.
  This package would also cut down on the regulations that burden our 
small business community. This is key to continuing the innovation and 
economic growth we are seeking today.

  This tax relief and jobs package would continue the innovation and 
economic growth and would allow investors to have legal certainty by 
allowing them to interact with entrepreneurs without fear of securities 
violation.
  Furthermore, the cost of initial compliance for an IPO filing now 
exceeds over $2 million. This hinders small businesses that are ready 
to go public but can't afford these regulatory costs.
  So, Mr. Speaker, I commend this bill. JOBS 3.0 would lengthen ``on-
ramp'' exceptions for IPO compliance, helping small business owners 
navigate one of the most expensive aspects of securities law.
  It also allows companies to test the waters before going public to 
help give them time for their IPO to have a better chance of success.
  These provisions are vital to encourage business growth and to 
reassure the small business community. I strongly encourage the Senate, 
therefore, to pass this bill.
  So, yes, Mr. Speaker, what Chairman Hensarling has done through this 
legislation has helped give greater financial empowerment and liberty 
and freedom to the American people, that is what it is all about today, 
is freedom. So my gratitude to him for the leadership that he has given 
us.
  Mr. Speaker, I also want to say a word of thanks to some other folks 
who I have probably this last moment to address in this Chamber. As 
Jesse Helms used to say, a wonderful man from North Carolina: That 
turtle didn't get up on the fence post by himself. And that is true, I 
think, for each of us in this Chamber, but I know it is true for this 
Member of Congress.
  What I have been able to do, by the grace of God and through the 
enablement and empowerment of my chairman and others, will hopefully 
last, but it happened because of people along the way who stood with 
me, who supported my efforts.
  Of course, I start with my family. I have the most wonderful family 
in the world. I have ten grandkids I get to go home to, 10 years and 
younger. I am Pitto to them, and that is all the world to me, and we 
have a fun time chasing around.
  But my team, my staff, enabled me to serve the Ninth Congressional 
District of North Carolina, those people that I love, those eight 
counties out

[[Page H9734]]

there that I am endeared to, but the people who really helped them were 
the folks back home in my district, in my office. I speak specifically 
of Linda Ferster, Chris Sullivan, Jamie Bowers, Graham Long, Robert 
Becker. They were with me from day one. They stood with me the whole 6 
years. Nobody flinched, nobody went anywhere. That team was so 
incredible.
  Robert Becker is one of the greatest leaders we have in North 
Carolina for our veterans. He gets calls from all over the State and he 
says: What do I do to help this veteran?
  Linda Ferster has been working these issues in the bureaucracy for 18 
years.
  These are great, faithful people who have stood up for my 
constituents in my district, and all the good that happened in that 
district was because of them. And I just gave them a door to say: Go 
through it and you go serve. And they served like they were 
missionaries. They love those people. Every day they wake up thinking, 
who can I help today? You know, whose life can I change in a positive 
way today? And that is the nature of the service that my team provided, 
the same type of leadership that I had up here in Washington.
  My role in FIRRMA just didn't happen by myself. There are many people 
on my team up here that supported that effort. Clark Fonda was a great 
leader for me in that. There are other people outside Congress. Heath 
Tarbert, the Assistant Secretary of the Treasury, a remarkable 
individual who served this country so well over such a key part of what 
we did in this national security bill on FIRRMA.
  So my heart is just filled with gratitude for the privilege of 
serving the good folks in the Ninth District of North Carolina; my 
gratitude for the body in this Chamber; my gratitude for being able to 
serve on the Financial Services Committee under the leadership of 
Chairman Hensarling. It couldn't be greater. I couldn't be more 
fulfilled in the 6 years that I had here. I will always treasure and 
remember this time.
  So, Mr. Speaker, I thank you, I thank Chairman Hensarling. He is an 
absolute important friend for me, and I hope we can continue to work 
together for many years to come. God bless you.
  Mr. HENSARLING. Mr. Speaker, I certainly thank the gentleman for his 
comments tonight.
  I hope that there are a fair amount of Americans who are watching 
this this evening, because they need to know that they owe this 
gentleman, Mr. Pittenger of North Carolina, a great debt of gratitude. 
And indeed America is going to be a safer, more secure Nation because 
of his leadership.
  In his three terms, Mr. Speaker, Mr. Pittenger achieved more in three 
terms than many Members achieve in ten terms.
  Many people, unfortunately, come to the People's House to be 
somebody. Mr. Pittenger of North Carolina came to do something.
  And, indeed, don't just take my word for it, but the President of the 
United States thinks this is one of the most significant pieces of 
legislation when it comes to dealing with the threats of those who 
would take our intellectual property, who would take our technology by 
hook or crook, or however they might do it.
  So, Mr. Speaker, I want to commend Mr. Pittenger for his leadership.
  I must admit, this was kind of faint on my radar screen, this issue, 
but among Mr. Pittenger's other endearing qualities, he is persistent. 
He is a very persistent individual. And I am glad he was persistent, 
because it became a major piece of legislation.
  Part of my job as chairman and one of my great privileges is I get to 
take credit for a lot of other people's good work. I shouldn't, I 
shouldn't be accorded this. And so I get many thanks, but this was a 
team effort and it was led by Mr. Pittenger.

                              {time}  1945

  Other countries are now put on notice. We are watching. These rules, 
as Mr. Pittenger, the gentleman from North Carolina, has said, will be 
unveiled in the weeks and months to come. But a new day has dawned for 
those who think that they are going to take, by hook or crook, our 
technology.
  We want our global neighbors to succeed, but, again, not to succeed 
at our expense. Those applications of technology and intellectual 
property that have any type of national defense implications, that is 
going to stop, and it is going to stop because of the leadership of  
Robert Pittenger, the gentleman from North Carolina.
  It has been a great, great source of pride and joy to be associated 
with him. I will count him as a friend for life. I appreciate the fact 
that he would come and spend time here.
  I have no doubt, Mr. Speaker, that his leadership is not done. His 
leadership may be done in this body, but his leadership in fighting 
global terrorism from illicit finance and global terrorist finance, 
that leadership is not done. In many respects, it is just starting. I 
look forward to continuing to follow his career and his leadership.
  Mr. Speaker, we are also joined tonight by another real authority on 
global terrorist finance, a gentleman who has been incredibly active on 
the Terrorism and Illicit Finance Subcommittee of the Financial 
Services Committee. I have come to really appreciate his intellect, his 
knowledge, and his work ethic. He is clearly one of the hardest working 
members of the Financial Services Committee.
  As, regrettably, the gentleman from North Carolina departs, and I am 
saddened by that, we are both heartened to know that the gentleman from 
Ohio (Mr. Davidson) will remain, and he will be one of the key leaders 
in the entire United States House of Representatives in combating 
terrorist finance. He has been such a workhorse in helping some of our 
economic growth measures that have helped save community banking and 
credit unions.
  Mr. Speaker, I am happy to yield to the gentleman from Ohio (Mr. 
Davidson).
  Mr. DAVIDSON. Mr. Speaker, I rise to applaud the hard work and great 
success of the House Financial Services Committee these the past 2 
years in the 115th Congress.
  Under the leadership of Chairman Jeb Hensarling, the Financial 
Services Committee became the most productive committee in Congress. 
Over 44 bills signed into law originated from our committee, including 
S. 2155. It began as the Financial CHOICE Act, Creating Hope and 
Opportunity for Investors, Consumers, and Entrepreneurs.
  Unfortunately, the whole bill hasn't made it into law, but the core 
of that bill was dealing with the unintended consequences and, frankly, 
whether they were intended or not, the harmful consequences of Dodd-
Frank.
  Under Dodd-Frank, we found that the biggest banks got bigger and the 
smallest banks became fewer. We found that banks were not too-big-to-
fail, but some of them became too-small-to-succeed under the burden of 
Dodd-Frank's regulatory framework. So much so that even Barney Frank, 
whose name is part of the Dodd-Frank Act, came to support the reforms 
for community banking.
  I am very proud to have participated in regulatory relief that helped 
thousands of community financial institutions help lend to their 
communities. It is making a difference today as we watch the impact in 
our economy. Indeed, it is, in some measure, fitting that the title 
began with ``Creating Hope and Opportunity for Investors, Consumers, 
and Entrepreneurs,'' because that is what is happening in this amazing 
economy.
  There is more good news that is happening in our economy than is 
probably going to get covered anywhere. Some of it is out there for the 
C-SPAN viewer to find.
  You might not see in the news that we have the strongest sanctions 
that have been imposed on Russia since it has been Russia. Post-Soviet 
Union, we have never had a stronger posture toward Russia than we do 
today.
  The Financial Services Committee helps implement those because the 
Department of the Treasury has an Office of Foreign Asset Control. As 
part of the Monetary Policy and Trade Subcommittee and as part of the 
Terrorism and Illicit Finance Subcommittee, we look at how to choke off 
these sources of funds, whether it is Russian oligarchs, Iranian bad 
actors, North Koreans, or others.
  Frankly, I believe we only have tapped the surface on the potential 
that sanctions have. Indeed, we may be able to apply sanctions to our 
trade policy and, very targeted, deal with

[[Page H9735]]

bad actors, like those who are dumping steel, rather than just putting 
a uniform tariff out there. We can be precise. Instead of maximizing 
collateral damage, we can minimize it.
  But that shows that there is plenty of work left to do. What we are 
here to say is that there are plenty of great things that did, in fact, 
happen.
  With respect to trade, one of the things the Financial Services 
Committee got to do was take a bipartisan delegation trip to China. We 
talked with folks in Japan, in Hong Kong, in China, and in South Korea 
about the importance of trade, not just in a way that draws in our 
Foreign Investment Risk Review Modernization Act, but with all of our 
trade policy.
  The reality is that we were able to send a message to the people in 
China, to the leadership of China--their Vice President down to their 
leadership in the trade negotiations--that with respect to China, there 
is no separation between Congress and President Trump, and with respect 
to China, there is no separation between Republicans and Democrats on 
trade.
  Our hope is that we can continue to trade, and we can continue to 
prosper together. As a former Army Ranger, I never thought I would go 
to China under friendly terms and conditions. I am quite thankful that 
we were able to do that. I hope that we can continue that peace and 
prosperity together.
  But the days of the American people being taken advantage of, whether 
it is by China or any other Nation, I hope has long passed. Clearly, 
today, that is the trend. Not only has the Foreign Investment Risk 
Review Modernization Act, FIRRMA, passed, and that gives us this 
review, but we have an administration that is aggressively implementing 
a policy that puts that into effect.

  There are plenty of things that did pass our House that haven't yet 
made it into law. A staggering number is 115. While 44 bills were 
signed into law, 115 passed our committee and haven't yet been taken up 
across the building in the Senate. Unfortunately, and often despite 
overwhelmingly bipartisan support in the House, many of these bills 
have yet to receive the same attention in the Senate.
  One example of this is a bill I introduced, the Market Data 
Protection Act. This passed the House of Representatives unanimously, 
and it is yet to receive a vote in the Senate. This deals with the 
protection of government-controlled data by the Securities and Exchange 
Commission. In fact, our EDGAR database was hacked. We are simply 
asking that the SEC do the same thing and certify to Congress in the 
same way they would expect a publicly traded company to certify to 
them, that they have dealt with the risk and they now have a secure 
network.
  Just earlier tonight, we passed yet another extension of the Flood 
Act. This bill has been passed by our committee for a year and a half. 
It has been over a year since it passed the House with very modest 
reforms.
  One of the sticking points seems to be that the Senate can't live 
with rebuilding someone's home three times after it has flooding. We 
will rebuild it not once, not twice, but a third time, and then after 
that, we are saying, you know, maybe you should move.
  But that is too much to ask, apparently, for the Senate. We can't 
even get a vote on it. It is time for the Senate to act.
  Another is JOBS 3.0. This is a bill that provides new 21st century 
framework for capital formation. You think capital formation, that 
sounds like Wall Street, that sounds like a big, Republican, 
stereotypical talking point bill. It passed with more than 400 votes in 
this body, incredibly bipartisan, very modest reforms, commonsense, for 
early stage capital formation, and it hasn't yet been voted on in the 
Senate. There is still time in this Congress, and I sure hope they can 
deliver on it.
  There are a lot of things that we haven't been able to get to. In 
spite of being the most productive committee in Congress, there are 
still things that have been left undone. My hope is that we can 
continue to collaborate in a very bipartisan way as we experience a 
transition.
  As sad as I am to be headed to the minority as a member of the 
majority party today, I am very sad that Chairman Hensarling is leaving 
Congress. This week, we were able to see his retirement ceremony where 
a portrait was unveiled. But the most important thing that happened 
there is, frankly, I think everyone in that room was inspired.
  I think one of the most unfortunate things about Congress is the way 
it is perceived by the American people. There are more truly good men 
and women who serve in this body, in both parties, than I would have 
ever believed before I got here, and one of the very best is Jeb 
Hensarling. I am thankful to count him as my chairman, as a mentor, and 
as a friend. I look forward to seeing how God continues to bless this 
great man and how God continues to bless this body and our great 
Nation. It is now time for deeds, not words.
  Mr. HENSARLING. Mr. Speaker, well, after hearing those kind comments, 
I would be happy to yield the gentleman even more time. I say that 
tongue-in-cheek.
  Mr. Speaker, I have learned that if you want kind things said about 
you, announce your retirement. So, I must admit, I am humbled by this 
experience, and I thank the kind words of the gentleman.
  I must admit that it is a real mixed blessing that I get ready to 
leave Congress, but I take a lot of solace knowing that there is a new 
generation of conservative leaders who are coming to this body, who 
know how important faith is in the life of a great Nation, because you 
cannot have a free Nation that is not a virtuous Nation and a godly 
Nation.
  I know that there is a new generation of conservative leaders who are 
coming up who know how important our families are, our families who 
care for our elderly and nurture our youth and perpetuate our values. 
They know how important free enterprise is, not just because it allows 
people to sleep at night knowing the bills are paid, but how empowering 
it is to finally leave the assembly line and to start your own 
business; how empowering it is to send that first kid to college; but, 
ultimately, how important it is to pursue happiness, to use your God-
given talents in any way that can help you and your family prosper.
  I know I take great solace to know there is a new generation of 
conservative leaders who know that, ultimately, liberty is an 
inalienable right given to us by our creator, the Almighty, and how 
precious it is and how few people on the face of the planet really 
enjoy the full fruits of liberty.
  I count Mr. Davidson among those people, and I will always count him 
as my friend. But it makes it much easier, after 16 years, to leave 
this body knowing that there is a Warren Davidson in Congress and 
knowing that there is a Ted Budd from North Carolina who will remain in 
Congress as well.
  Mr. Speaker, I yield to the gentleman from North Carolina (Mr. Budd). 
He also has become a fast friend of mine. More importantly, I count his 
wife as a friend of my wife, and me as well. Not unlike Mr. Davidson, 
he is one of the hardest working members of our committee, and he 
never, never gives up.
  Again, a significant portion of the economic growth packages that we 
have passed out of the House Financial Services Committee, two or three 
of them I know contain Mr. Budd's name. That is unusual for somebody 
who has been a freshman member of our committee, to have so many bills 
passed. It is a testament to the great citizens of his congressional 
district that they would return him to office. I hope, next time, maybe 
a few more will join in and make it a little less interesting. But I am 
also proud to call him colleague; I am proud to call him friend; and I, 
again, take great solace to know that this body will see his 
conservative leadership for quite some time.

                              {time}  2000

  Mr. BUDD. Mr. Speaker, I thank Chairman Hensarling, and after those 
kind words, maybe we all should just yield back. But I am going to hang 
on for a few minutes and talk about some of the great things that we 
have done on Chairman Hensarling's committee that I have been honored 
to be a part of for these last 2 years and look forward to continuing 
on. One of the things to mention in the 115th Congress is to highlight 
the need to bring JOBS 3.0 across the finish line.
  But before I do that, I have to say, Mr. Speaker, that I don't think 
there

[[Page H9736]]

has been a harder working committee in Washington, D.C., over the past 
2 years, from our leadership all the way down to the committee's staff 
level, and it shows in our accomplishments. I am proud to have played a 
small role in some of these victories.
  One simply cannot start a speech like this without talking about the 
tremendous work that went into the Financial CHOICE Act, which 
ultimately became known as S. 2155.
  As we all know, Dodd-Frank was enacted in 2010 in an effort to end 
the so-called too-big-to-fail financial institutions. However, Dodd-
Frank and Congress inadvertently created too-small-to-succeed financial 
institutions, which punished our regional and community banks and 
credit unions. It was unfortunate, but in the end, community financial 
institutions were shut down, while the consumer and small business 
owner were starved of the access to credit at a time when they needed 
it the most.
  However, with the passage and ultimate enactment of S. 2155, the 
status quo that I just highlighted has changed, instead, for good. 
Dodd-Frank reform was a win for North Carolina's community financial 
institutions, small businesses, innovators, and the economy as a whole. 
Under this bill, the consumer and small business will get access to the 
credit they need, whether it be used to buy a home or finally start and 
expand their businesses.
  I think this bill, Mr. Speaker, is, arguably, the most important 
legislative win this Congress has seen in a long time. It will benefit 
all sectors of the economy, and I am so excited that we got this done.
  On a more personal note, outside of Dodd-Frank reform, I have really 
enjoyed the work that has gone on at the Terrorism and Illicit Finance 
Subcommittee. Under the leadership of our chairman, Steve Pearce, my 
bipartisan bill, H.R. 3321, the National Strategy for Combating 
Terrorist, Underground, and Other Illicit Financing Act, is just one 
example of this work. I was able to get this bipartisan bill signed by 
the President and passed into law as part of the Countering America's 
Adversaries Through Sanctions Act.
  My bill directs the Department of the Treasury to develop a national 
strategy to combat the financing of terrorism and related forms of 
illicit finance involving all levels of government. H.R. 3321 will get 
us closer to a coordinated strategy on disrupting these illicit 
financial networks in the hopes that we are able to starve terrorist 
groups like ISIS of the resources they need to carry out their radical 
agendas.
  I also want to highlight and think that we should be proud of the 
balance we have been trying to strike with regard to fintech. I have my 
own legislation on this front, for example, H.R. 6849, the Bank Secrecy 
Innovation Act, which directs the Secretary of the Treasury to 
encourage the use of technological innovations that improve financial 
institutions' anti-money laundering programs.
  Financial institutions currently have little incentive to invest in 
innovative technology solutions to BSA compliance because of the 
regulatory inflexibility. The Bank Secrecy Innovation Act will provide 
financial institutions with greater incentive and certainty when 
experimenting with technology to aid in BSA compliance by providing a 
safe harbor against having the use of such technology be the basis for 
regulatory penalty.
  The application of innovative technology by financial institutions in 
their BSA compliance programs will likely improve the detection of 
illicit activity, leading to more efficient and higher quality 
reporting of suspicious activity by financial institutions. Better, 
more targeted reports likely will aid law enforcement in focusing their 
limited resources on real criminal activities, while also reducing the 
time that law enforcement must spend weeding out reports that are just 
irrelevant.
  As I said earlier, Mr. Speaker, there is still one more package of 
bills that passed out of our committee and this body with strong 
bipartisan backing that still needs to be pushed across the finish 
line. I am talking, of course, about JOBS 3.0 and the capital formation 
package that would further improve our economy and make it easier for 
companies to go public.
  This package included bills like mine, H.R. 3903, the Encouraging 
Public Offerings Act, that I introduced with my friend on the other 
side of the aisle from New York,  Gregory Meeks. It passed the House, 
if you can imagine, 417-0.
  It allows issuers to submit to the SEC for confidential review, 
before publicly filing, draft registrations for IPOs. H.R. 3903 will 
reduce the risk to companies that are just thinking about going public, 
in order to make listing on exchanges even more attractive, which, in 
the end, will only strengthen our financial markets.
  Mr. Speaker, the legislation found under JOBS will make it easier for 
startups and small businesses in North Carolina to attract the 
investments they need to go public, grow, and create more jobs.
  I also want to highlight, briefly, title 14 of JOBS, which protects 
the American insurance standards. This strong, bipartisan language 
found under title 14 will give U.S. negotiators the strong legislative 
backing they need when they negotiate with international bodies like 
the IAIS.
  Now, as we try to bring JOBS over the finish line, I am hopeful that 
we can keep this strong, bipartisan language in the bill. We must keep 
it in whatever version of JOBS that we pass. The American 
insuranc consumer needs it and also deserves it. So let's get JOBS 
done.

  Mr. Speaker, in closing, like my colleagues have said before, I want 
to thank our chairman, Jeb Hensarling, for his principled leadership of 
this committee and for seeing us through some great wins in the 115th 
Congress. He has been a friend, a mentor, and somebody I respect in the 
way he leads, and leads his family greatly, and I know that he will be 
missed.
  Mr. HENSARLING. Mr. Speaker, I thank the gentleman for his kind 
words, and far more importantly, I thank him for his leadership. He is 
truly one of the workhorses for economic growth in the United States 
Congress.
  Again, I take great solace, as I will soon leave this august body, in 
knowing that somebody like Mr. Budd will be here. He has such 
principle, character, is a hard worker, and has success in actually 
getting bills done that make a difference in the lives of working 
people. Mr. Speaker, it is such a pleasure to serve with the gentleman 
from North Carolina (Mr. Budd).
  Mr. Speaker, several of our Members have spoken tonight about what we 
call the JOBS 3.0 Act, Jumpstart Our Business Startups. Thanks to the 
leadership of President Trump, thanks to the leadership of Speaker 
Ryan, and thanks to the leadership of Chairman Kevin Brady, we have a 
great economy. We have, perhaps, the greatest economy in most 
Americans' lifetimes. Unemployment is at about a 50-year low. For the 
first time in a decade, we are seeing paychecks rise. We are seeing 
that take-home pay increase.
  Small business optimism, consumer optimism, is off the charts. It is 
amazing what can happen with some tax reform and regulatory reform. 
And, yes, I take pride--not on my behalf, but on behalf of the 
Financial Services Committee--in what we have done to help take some of 
the shackles off of our community banks and our credit unions. But 
there is so much more work to be done.
  Mr. Speaker, as you probably know, the whole idea of capital 
formation for our entrepreneurs, for our small businesses, 
traditionally, that has been a bipartisan effort. And, in fact, the 
very first, what we call JOBS 1.0, was signed into law by President 
Barack Obama. I don't quite have the quote at my fingertips, but at the 
time, he said something along the lines that we have to, from time to 
time, remove the regulatory burdens to capital formation that are 
preventing our entrepreneurs from accessing capital.
  So the first point I would like to make, Mr. Speaker, is the economy 
of today is in great shape. But can we count on it for the economy of 
tomorrow? Particularly, Mr. Speaker, when I look at public companies, 
what I see is that our public companies are fewer, they are older, and 
they are bigger. Today, in America, we still have far too many old cars 
and not enough startups in our garages.
  I sometimes think--and I am the father of a 16-year-old daughter, a 
15-

[[Page H9737]]

year-old son--the companies that will drive the economy when they are 
in their peak earning years, they probably haven't even been founded 
yet. Where are the next Amazons coming from? Where are the next Googles 
coming from? Where are the next Apples coming from?
  But what we see as recently as 2016, just a couple of years ago, is 
that new startups' entrepreneurial capitalism was at a 40-year low. 
Now, fortunately, under this administration, it is taking a turn 
upwards, but we have got a lot of ground to make up.
  Our public companies have been cut in half, a 20-year low, as 
recently as 2016. Half of the number of companies are going public. And 
so not only is that bad for America's economy, but it is bad for the 
family economy because they lose out on investment opportunities.
  Had you invested early in Apple, you would have made a gazillion 
percentage rate of return. It would have been an incredible investment 
opportunity. At the time, the Commonwealth of Massachusetts wouldn't 
even allow Apple to sell their securities because they were fearful it 
was too speculative.
  We want to make sure that every American family has the opportunity 
to invest in the next Apple. But, unfortunately, what we see is a 
regulatory burden that is absolutely strangling a lot of these startup 
companies.
  Over the past 2\1/2\ decades, Mr. Speaker, the U.S. share of global 
venture investment has steadily declined. And when we see it decline, 
what we also see is that regulatory restrictions on securities and 
investment have increased 54 percent in 10 years--in just 10 years, a 
54 percent increase in regulatory restrictions on securities, and an 80 
percent increase over 20 years.
  We are wondering why there is so little entrepreneurial activity, and 
we are wondering why so few companies have gone public.
  Part of what we have to do is simply modernize antiquated statutes. 
And so with the exceptions of Sarbanes-Oxley, and with the exception 
of, frankly, the first version of the JOBS Act and the second version 
of the JOBS Act, almost all of our other significant Federal securities 
laws date back to the 1930s.
  Mr. Speaker, a couple of these, the Securities and Exchange Act, the 
Securities Act, they are foundational. But so many of these other laws 
that we still labor under, I mean, there was a time that the telephone 
was the cutting-edge technology. That is when the SEC was created, in 
1934, and the telephone was the cutting-edge technology of the time.
  So many of the security laws we have date back to that particular 
era. At that time, stock offerings were part of the daily newspaper. 
Well, we don't see that anymore. Pneumatic tubes and ticker tape 
transmitted the news of a stock sale.
  If we are going to be able to fuel the economy of tomorrow, we are 
going to have to modernize these securities laws. And, again, 
traditionally, this has been a bipartisan effort.

                              {time}  2015

  The United States House of Representatives has passed JOBS 3.0 by a 
vote of 406-4. Months later, the United States Senate has done nothing 
on this piece of legislation. This cannot hold. This cannot be. There 
is no excuse for the United States Senate back there behind my shoulder 
to do nothing while, for example, we see more companies go public in 
China.
  We had a discussion a little earlier, Mr. Speaker, how China, 
unfortunately, too often has taken our technology--our intellectual 
property--by hook and crook. But a lot of it is companies are choosing 
to confine their capital in China because they find it easier, and now 
we are looking at over one-third of public companies are going public 
in China, and we are down to 11 percent. They have an ascending curve; 
we have a descending curve.
  In order to successfully compete with China in a global economy, we 
have to make it easier throughout the ecosystem of our small 
entrepreneurial ventures to make it easier, and so that is what the 
whole thrust of the JOBS 3.0 Act is all about.
  Again, it is a very, very strong bipartisan measure. So often the 
lead Democrat in this institution, known as ranking member, the 
gentlewoman from California (Ms. Maxine Waters) and I don't see eye to 
eye on much. We see eye to eye on very little. But we are joined at the 
hip in wanting to see the JOBS 3.0 Act. She has been stalwart, and she 
has been a good negotiating partner to get this done.
  So you have one of the most liberal Members of Congress and one of 
the most conservative Members of Congress come together to advocate for 
our small businesses, for our entrepreneurs, to help us compete with 
China in the JOBS 3.0 Act, but somehow they are still not hearing this 
in the United States Senate.
  Please, the gentlewoman from California (Ms. Maxine Waters), gives 
every liberal permission to vote for the JOBS 3.0 Act. As chairman of 
the House Financial Services Committee and one who used to chair the 
conservative caucus in the House, I give every conservative permission 
in the United States Senate to vote for JOBS 3.0.
  Please, we need a message for all Americans who care about small 
businesses. We want to make it easier. We want to make it easier for 
these businesses to get funding.
  The bottom line is, Mr. Speaker, you cannot have capitalism without 
capital, and we want to make it easier to access this capital.
  So I was very heartened by the fact that, although maybe our 
Senators--and I have many friends who are United States Senators. I 
still cannot understand why they haven't taken up a piece of 
legislation that came out of the House 406-4, a piece of legislation 
strongly supported by the administration, and a piece of legislation, 
again, that is going to help our small businesses and entrepreneurs. 
Why haven't they taken it up?
  Perhaps the single most influential newspaper in America is The Wall 
Street Journal. It is certainly the most influential economic 
publication in America, and probably the world. Fortunately, their lead 
editorial today was to encourage the Senate to take up JOBS 3.0. In 
fact--I am kind of paraphrasing here because I don't have the newspaper 
at my fingertips--they said that Congress has done yeoman's work 
shepherding a compendium of bipartisan bills to access capital. They 
were referring to JOBS 3.0.
  Again, go online. It is their lead editorial.
  They said that the Senate shouldn't scuttle what could be one of 
Congress' better achievements. I agree. This will be one of Congress' 
better achievements to be able to capitalize our small businesses to 
make sure, again, they can access capital, they can go public, and that 
they are not treated like a Fortune 500 company on day one.
  Mr. Speaker, many of our biotech companies that provide lifesaving 
pharmaceuticals, some of them don't even cash flow positive for a 
decade. They can't be treated with the same regulatory burden on their 
capital as a Fortune 500 company. If you do, again, they are going to 
go to China. They are not going to stay in the USA. They are going to 
go to China. As we continue to compete with them, we cannot allow this 
to happen.
  So we have had such great support. I alluded to the ranking member, 
the gentlewoman from California (Ms. Maxine Waters). She said that this 
bill is ``a carefully crafted bipartisan compromise.'' Those are her 
words. She said that it is ``an example of Members on both sides of the 
aisle working together to support our Nation's small businesses and 
investors.''
  Again, she is one of the most liberal Members of the United States 
House of Representatives and most likely the next chairman of the House 
Financial Services Committee. She said that this bill will help 
entrepreneurs, small businesses, investors, and our economy to thrive.
  In the 6 years I have been chairman, it has kind of been rare for us 
to agree on the time of day, but we definitely agree that the JOBS 3.0 
Act is important. It is important to America's economy not only today, 
but more importantly, it is important for the economy of tomorrow.
  If there is one aspect of America's economy that is somewhat unique 
in the world, it is how we have ensured that entrepreneurial capitalism 
can't just survive in America, but thrive. So those seeds have to be 
planted today. There is so much competition worldwide, and that is why 
it is important that we get this done.

[[Page H9738]]

  The U.S. Chamber of Commerce weighed in, and they said that the House 
amendment to S. 488--I am talking about the JOBS 3.0 bill--would remove 
barriers for raising capital for America's businesses. Approximately 
three-fourths of financing for businesses in the United States comes 
from capital markets, but regulations have failed to keep up with the 
demands of the 21st century.
  The Angel Capital Association has written: ``Thank you again for your 
leadership in promoting American startups, capital formation, and job 
creation. The JOBS and Investor Confidence Act will help foster 
innovation and job growth.''

  The Biotechnology Industry Organization, known as BIO, said: ``The 
JOBS and Investor Confidence Act of 2018, or JOBS Act 3.0, will 
significantly improve the ability of emerging biotech companies to 
access capital and invest in their potentially lifesaving research 
rather than unnecessary compliance costs that do not add value to 
investors.''
  There is widespread support. I am almost baffled, Mr. Speaker, why 
the United States Senate won't take this up. Again, this is a strongly 
bipartisan package. It doesn't get much stronger than 406-4.
  Again, our business startups have neared a 40-year low in 2016. Our 
IPOs, our initial public offerings that allow our working families to 
invest in the American economy, are half of what they were 20 years 
ago.
  Why? The average regulatory compliance for initial public offerings 
has now doubled. It has doubled in the last 25 years. It costs $2.5 
million to go public, with average compliance costs clocking in at $1.5 
million.
  Sometimes, Mr. Speaker, we have to take a look at regulations that 
date back to the 1930s and start to ask the question: How is that going 
to impact the economy of the 2030s? The answer is not too well, 
particularly in a global economy competing with China.
  So I just want to conclude by saying that I have so many friends in 
the United States Senate. I respect the United States Senate. I used to 
be a staffer of the United States Senate. But there is no excuse why 
they can't do what the House did and follow our leadership and work on 
a strong, bipartisan basis to make sure that America just doesn't have 
the strongest economy of today but has the strongest economy of 
tomorrow.
  It started with men and women, Democrats and Republicans on the House 
Financial Services Committee, to ensure that the economy of tomorrow, 
once again, will be strong for all Americans.
  Mr. Speaker, I urge my colleagues and my friends in the United States 
Senate to follow our lead, to listen to the administration, and to pass 
the JOBS 3.0 Act immediately.
  Mr. Speaker, I yield back the balance of my time.

                          ____________________