[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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