[Congressional Record Volume 167, Number 104 (Tuesday, June 15, 2021)]
[House]
[Pages H2787-H2789]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
LGBTQ BUSINESS EQUAL CREDIT ENFORCEMENT AND INVESTMENT ACT
Ms. WATERS. Madam Speaker, I move to suspend the rules and pass the
bill (H.R. 1443) to amend the Equal Credit Opportunity Act to require
the collection of small business loan data related to LGBTQ-owned
businesses, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 1443
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``LGBTQ Business Equal Credit
Enforcement and Investment Act''.
SEC. 2. SMALL BUSINESS LOAN DATA COLLECTION.
Section 704B of the Equal Credit Opportunity Act (15 U.S.C.
1691c-2) is amended--
(1) by inserting ``LGBTQ-owned,'' after ``minority-owned,''
each place such term appears;
(2) in subsection (e)(2)(G), by inserting ``, sexual
orientation, gender identity'' after ``sex''; and
(3) in subsection (h), by adding at the end the following:
``(7) LGBTQ-owned business.--The term `LGBTQ-owned
business' means a business--
``(A) more than 50 percent of the ownership or control of
which is held by 1 or more individuals self-identifying as
lesbian, gay, bisexual, transgender, or queer; and
``(B) more than 50 percent of the net profit or loss of
which accrues to 1 or more individuals self-identifying as
lesbian, gay, bisexual, transgender, or queer.''.
SEC. 3. DETERMINATION OF BUDGETARY EFFECTS.
The budgetary effects of this Act, for the purpose of
complying with the Statutory Pay-As-You-Go Act of 2010, shall
be determined by reference to the latest statement titled
``Budgetary Effects of PAYGO Legislation'' for this Act,
submitted for printing in the Congressional Record by the
Chairman of the House Budget Committee, provided that such
statement has been submitted prior to the vote on passage.
The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from
California (Ms. Waters) and the gentleman from North Carolina (Mr.
McHenry) each will control 20 minutes.
The Chair recognizes the gentlewoman from California.
General Leave
Ms. WATERS. Madam Speaker, I ask unanimous consent that all Members
may have 5 legislative days in which to revise and extend their remarks
and to insert extraneous material thereon.
The SPEAKER pro tempore. Is there objection to the request of the
gentlewoman from California?
There was no objection.
Ms. WATERS. Madam Speaker, I yield myself such time as I may consume.
Madam Speaker, I would like to thank the gentleman from New York,
Representative Torres, for his leadership on H.R. 1443, the LGBTQ
Business Equal Credit Enforcement and Investment Act.
We know transparency is critical in helping identify discriminatory
lending practices in the financial marketplace. This bill would enhance
a provision of Dodd-Frank requiring data collection on lending to small
and minority-owned businesses to include data on lending to LGBTQ-owned
businesses as well, including self-reported gender identity and sexual
orientation.
This bill will also define an LGBTQ-owned business in the Equal
Credit Opportunity Act, the ECOA, which would allow more businesses to
gain access to capital and investment.
Of course, June is Pride Month, a time to recognize and celebrate the
[[Page H2788]]
LGBTQ community's significant contributions to our country, including
to the economy, and to also stand as allies.
We know there is more work to be done to ensure equal opportunities.
For example, according to a study of mortgage lending data from 2019,
loan applicants in neighborhoods with a higher density of LGBTQ people
received higher interest and fees, regardless of the applicant's
sexuality or identity.
In addition, LGBTQ individuals face employment discrimination, which
has contributed to high rates of poverty, especially for LGBTQ people
of color. The Williams Institute found that nearly 31 percent of Black
LGBTQ people live in poverty compared with nearly 25 percent of Black
cisgender, straight people.
These factors further support the urgency of supporting LGBTQ
businesses as they create job opportunities and build community wealth.
As of 2016, there were an estimated 1.4 million LGBTQ-owned
businesses in the United States. The CFPB needs to begin collecting
this data and help us as policymakers and the public identify and
understand the community development needs of LGBTQ-owned businesses.
I am pleased we were able to report this bill unanimously out of
committee with a voice vote. I hope we can build on that bipartisan
effort, and I urge all of my colleagues to support this important
legislation.
Madam Speaker, I reserve the balance of my time.
Mr. McHENRY. Madam Speaker, I yield myself such time as I may
consume.
We can all agree data is important. But we need to recognize,
particularly as it relates to obtaining data on companies, that each
one is unique. Mandatory reporting metrics do not accurately measure
progress.
Just look at the mandatory disclosure bills on the floor this week.
They are a mess. The only outcome we can expect to see with those bills
is a higher compliance cost on companies, leaving fewer resources to
build out a workforce and invest in research and development.
Simply put, one size does not fit all, and one-size-fits-all doesn't
work.
However, the bill we have in front of us today does not impose a new
mandatory reporting regime. It adds on a list of voluntary data and
adds a new item to that voluntary data. Data is collected on a
voluntary basis under ECOA, under this law that is being amended. Any
loan applicant who does not wish to provide information can decline to
provide it, meaning there are fewer concerns over privacy or a one-
size-fits-all reporting regime.
These are the things I have raised about this bill. I want to commend
the sponsor for being willing to work with Republicans on getting back
to the essence of the bill. I appreciate that my Democrat colleagues
have offered a solution to promote diversity and inclusion without
imposing new requirements on businesses or business owners that do not
effectively measure their success.
I support this bill. I will vote for this bill. And I want to commend
my Democrat colleagues for working with us on a number of concerns that
we had with the various drafts of the bill.
Madam Speaker, I reserve the balance of my time.
{time} 1545
Ms. WATERS. Madam Speaker, may I inquire as to how much time we have
remaining in this debate?
The SPEAKER pro tempore. The gentlewoman from California has 17\1/2\
minutes remaining.
Ms. WATERS. Madam Speaker, I yield all 17\1/2\ minutes to the
gentleman from New York (Mr. Torres), who is also the sponsor of this
legislation.
Mr. TORRES of New York. Madam Speaker, I rise in support of my bill,
H.R. 1443, the LGBTQ Business Equal Credit Enforcement and Investment
Act.
I want to thank Chairwoman Waters and Ranking Member McHenry for
their support. As the ranking member noted, we did make concessions to
address his concerns about the legislation.
In the United States there are 1.4 million LGBTQ businesses,
contributing more than $1.7 trillion to the American economy. We have a
vested interest in sustaining and strengthening these businesses with
equal access to credit, which is the beating heart of the American
economy.
As a former New York City Council member, I partnered with the
National LGBTQ Chamber of Commerce to establish the Nation's largest
municipal certification program for LGBTQ business enterprises,
enabling those businesses to enjoy equal access to a $25 billion pool
of government procurement.
The legislation before us, H.R. 1443, builds on a foundation laid by
several statutes and regulations. The Equal Credit Opportunity Act,
most commonly known as ECOA, prohibits credit discrimination, including
but not limited to sex discrimination. A new interpretive rule from the
Consumer Financial Protection Bureau, CFPB, clarifies that ECOA's
prohibition against sex discrimination applies to sexual orientation
and gender identity.
Section 1071 of Dodd-Frank, which exists to enable and enhance the
enforcement of ECOA, requires financial institutions to report
information about the race, ethnicity, and sex of credit applicants who
serve as principal owners of small businesses.
My legislation would expand the 1071 reporting requirements to
include not only sex but also sexual orientation and gender identity.
In doing so, it would enable antidiscrimination enforcement where none
might exist.
Even though the United States has made substantial strides toward
LGBTQ equality, the mission is far from accomplished. Seventy percent
of the LGBTQ community remains unprotected by antidiscrimination laws.
When it comes to credit in particular, according to the Williams
Institute, more than 7.7 million LGBTQ adults live in states that offer
no protection against discrimination based on sexual orientation or
gender identity.
It is often said that knowledge is power. Knowledge affords us the
power to detect discrimination that might otherwise go undetected. Take
as an example the Home Mortgage Disclosure Act, which is analogous to
the legislation before us. Both the National Community Reinvestment
Coalition and Iowa State University reviewed data from the HMDA and
found that same-sex couples were denied loans at higher rates than
heterosexual couples despite having comparable creditworthiness. It
also found that those same-sex couples paid higher fees and interest.
The experience of HMDA tells us that sunlight can be a powerful
disinfectant against discrimination.
H.R. 1443 would make credit more accessible, credit laws more
enforceable, and creditors more accountable. It would represent a
triumph of transparency in the service of economic opportunity for all,
regardless of who you are and whom you love.
Mr. McHENRY. Madam Speaker, I yield back the balance of my time.
Ms. WATERS. Madam Speaker, I yield myself the balance of my time.
The LGBTQ Business Equal Credit Enforcement and Investment Act led by
Representative Torres would help ensure that LGBTQ business owners have
access to opportunities to grow and invest through government and other
private procurement contracts as well as have equal access to credit
opportunities.
This bill is supported by the National Gay and Lesbian Chamber of
Commerce, the Center for American Progress, the National Center for
Lesbian Rights, the National Center for Transgender Equality, Center
for LGBTQ Economic Advancement & Research, Human Rights Campaign, Out
Leadership, and many others.
The Financial Services Committee passed this bill unanimously by
voice vote in May 2021, and I would like to urge my colleagues on both
sides of the aisle, again, to join me in supporting this important
legislation.
I would like to thank the ranking member, Mr. McHenry, for joining
with me and others to pass this important legislation and particularly
this Pride Month that we are all celebrating the progress that has been
made in the LGBTQ community.
I thank Mr. McHenry for his cosponsorship, his support, and his
cooperation, for all that we are able to get done these days working
together.
Madam Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by
[[Page H2789]]
the gentlewoman from California (Ms. Waters) that the House suspend the
rules and pass the bill, H.R. 1443, as amended.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
Mrs. BOEBERT. Madam Speaker, on that I demand the yeas and nays.
The SPEAKER pro tempore. Pursuant to section 3(s) of House Resolution
8, the yeas and nays are ordered.
Pursuant to clause 8 of rule XX, further proceedings on this motion
are postponed.
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