[Congressional Record Volume 169, Number 118 (Tuesday, July 11, 2023)]
[House]
[Pages H3185-H3187]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
IMPROVING ACCESS TO SMALL BUSINESS INFORMATION ACT
Mrs. WAGNER. Madam Speaker, I move to suspend the rules and pass the
[[Page H3186]]
bill (H.R. 1548) to amend the Securities Exchange Act of 1934 to
specify that actions of the Advocate for Small Business Capital
Formation are not a collection of information under the Paperwork
Reduction Act, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 1548
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 ``Improving Access to Small
Business Information Act''.
SEC. 2. EXCLUSION FROM THE PAPERWORK REDUCTION ACT.
Section 4(j) of the Securities Exchange Act of 1934 (15
U.S.C. 78d(j)) is amended by adding at the end the following:
``(10) Exclusion from the paperwork reduction act.--
``(A) In general.--Actions taken by the Advocate for Small
Business Capital Formation under this subsection shall not be
a `collection of information' for purposes of subchapter I of
chapter 35 of title 44, United States Code (commonly known as
the `Paperwork Reduction Act').
``(B) Exceptions.--Subparagraph (A) shall not apply to the
requirements under subsections (c)(1), (c)(4), and (i) of
section 3506 of such title and section 3507(a)(1)(A) of such
title, except that the Commission shall not be required--
``(i) to submit a collection of information by the Advocate
to the Director of the Office of Management and Budget, as
described under section 3506(c)(1)(A) of such title;
``(ii) to display a control number on a collection of
information by the Advocate, as described under section
3506(c)(1)(B)(i) of such title (or to inform a person
receiving a collection of information from the Advocate that
the collection of information needs to display a control
number, as described under section 3506(c)(1)(B)(iii)(V) of
such title); or
``(iii) to indicate a collection of information by the
Advocate is in accordance with the clearance requirements of
section 3507 of such title, as described under section
3506(c)(1)(B)(ii) of such title.''.
The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from
Missouri (Mrs. Wagner) and the gentleman from California (Mr. Sherman)
each will control 20 minutes.
The Chair recognizes the gentlewoman from Missouri.
General Leave
Mrs. WAGNER. Madam Speaker, I ask unanimous consent that all Members
may have 5 legislative days in which to revise and extend their remarks
and include extraneous material on this bill.
The SPEAKER pro tempore. Is there objection to the request of the
gentlewoman from Missouri?
There was no objection.
Mrs. WAGNER. Madam Speaker, I yield myself such time as I may
consume.
Madam Speaker, I rise in support of H.R. 1548, the Improving Access
to Small Business Information Act.
I thank my colleagues from both sides of the aisle, the gentlewoman
from California (Mrs. Kim), the author of this legislation, and the
gentleman from New Jersey (Mr. Gottheimer), for working on this
commonsense piece of bipartisan legislation that will help ensure
America's small businesses and entrepreneurs are heard at the SEC.
H.R. 1548 provides a simple fix that will allow the SEC's Advocate
for Small Business Capital Formation, or the Advocate, to become a more
impactful voice in support of American entrepreneurs and capital
formation.
Each year, the Advocate and its staff host events around the country
to support small businesses and to better understand their most
pressing issues when it comes to raising capital. Such interactions
help the Advocate analyze the potential impact of policy changes likely
to affect small businesses and their investors.
Under current law, however, the Advocate may not collect
information--such as through surveys or studies--from small businesses
and entrepreneurs without triggering the burdensome requirements of the
Paperwork Reduction Act. This, in turn, introduces a host of
bureaucratic hurdles the Advocate must navigate in carrying out its
mission.
By clarifying that such actions of the Advocate are not a collection
of information under the Paperwork Reduction Act and providing
exemptions from the most burdensome aspects of the Paperwork Reduction
Act, H.R. 1548 enables the Advocate to engage with American small
businesses with less friction.
With fewer hurdles in place, the Advocate will gain a better
understanding of the capital formation challenges that small businesses
face, which will result in better policymaking decisions here in
Washington, D.C.
{time} 1715
Madam Speaker, H.R. 1548 is a balanced and thoughtful bill that cuts
unnecessary and onerous red tape to allow the SEC's Advocate for Small
Business Capital Formation to become a more effective champion in
support of American small businesses and capital formation. For this
reason, I urge my colleagues to support H.R. 1548, and I reserve the
balance of my time.
Mr. SHERMAN. Madam Speaker, I yield myself such time as I may
consume.
I rise in support of H.R. 1548, the Improving Access to Small
Business Information Act, sponsored by Representative Young Kim from
the great State of California.
The Paperwork Reduction Act mandates that all Federal agencies
receive approval from the Office of Management and Budget before
putting forth a paper form or survey that will impose an information
collection burden on the general public.
Although this is well-intentioned, the Paperwork Reduction Act may
often prevent Federal agencies like the SEC from obtaining data from
the public, the very data that assists agencies in carrying out this
mission.
This bill streamlines the ability of the SEC's Advocate for Small
Business Capital Formation to carry out its mission by exempting it
from the requirements of the Act in the same way that a sister agency,
the SEC's Investor Advocate, is currently exempted.
In effect, it enables the small business advocate to properly conduct
its job, which will strengthen the ability of the SEC to craft
regulations that help small businesses raise capital.
I also want to note that as part of the negotiations that resulted in
this bipartisan compromise bill, Chairman McHenry and Ranking Member
Waters agreed that in the months ahead they will work together on bills
to strengthen the independence and capacities of the investor advocate
and of the small business advocate at the SEC.
These two offices, both of which are congressionally created, must be
given sufficient resources to satisfy their unique roles within the
SEC. I urge my colleagues to support this bill, and I reserve the
balance of my time.
Mrs. WAGNER. Madam Speaker, I yield such time as she may consume to
the gentlewoman from California (Mrs. Kim), the author of this piece of
legislation, and my friend and colleague.
Mrs. KIM of California. Madam Speaker, I thank Chairwoman Wagner for
yielding.
I rise in strong support of my bill. This is a bipartisan bill, H.R.
1548, the Improving Access to Small Business Information Act.
H.R. 1548 is very simple. The legislation would amend the Securities
Exchange Act of 1934 to specify that certain actions by the Office of
the Advocate for Small Business Capital Formation are not a collection
of information under the Paper Reduction Act.
Currently, the office must adhere to a prolonged process to get
approval from OMB on surveys that could help get better information on
the capital formation challenges small businesses and their investors
face on a daily basis.
Former Director of the SEC's Office of the Advocate for Small
Business Capital Formation, Martha Miller, told our office, ``The
office went through a yearlong process just to collect registration
information for our annual forum and ask a few basic questions to
understand the audience attending.''
So, by the time her office got a response from OMB, the circumstances
of the economy had changed, and some of the survey questions were
outdated and did not serve their intended purpose.
Rather than answering these unrelated questions to the difficulties
facing small businesses, it would have been so much more effective for
small business owners and investors attending the forum to be focused
on analyzing the substantive issues and share effective perspectives on
capital formation policies.
The SEC's Office of the Advocate for Small Business Capital Formation
is the primary office that looks to advance the interests of the small
businesses and their investors at the SEC and in the capital markets.
[[Page H3187]]
With the ever-changing economic and regulatory environment, the
office is required to adapt quickly to the needs of the small
businesses and gather timely feedback to improve capital raising
policy.
H.R. 1548 reduces red tape and streamlines access to tools that the
office can utilize to gather more effective and timely data. The better
information that the office can gather, the better Congress and the
public can identify policy gaps and facilitate small business capital
formation.
I thank Chairman James Comer and House Oversight and Accountability
Committee staff for working with my staff and Financial Services
Committee staff to address standing policy on the PRA and get H.R. 1548
through the finish line.
I also thank my colleague and friend, Mr. Gottheimer of New Jersey,
for co-leading H.R. 1548, the Improving Access to Small Business
Information Act, with me. I urge my colleagues from both sides of the
aisle to vote ``yes'' on H.R. 1548.
Mr. SHERMAN. Madam Speaker, I have no further speakers, and I am
prepared to close if the gentlewoman from Missouri has no further
speakers.
Mrs. WAGNER. Madam Speaker, I have no further speakers, so I reserve
the balance of my time.
Mr. SHERMAN. Madam Speaker, I yield myself the balance of my time.
I commend the gentlewoman from California (Mrs. Kim) for her
excellent work on this bill.
H.R. 1548 streamlines the ability of the SEC's small business
advocate to better support small businesses' efforts to raise capital.
I urge my colleagues to support the bill, and I yield back the balance
of my time.
Mrs. WAGNER. Madam Speaker, I would simply urge my colleagues to
support H.R. 1548, and I yield back the balance of my time.
Ms. JACKSON LEE. Madam Speaker, I rise in support of H.R. 1548,
Improving Access to Small Business Information Act.
The Securities Exchange Act of 1934 regulates transactions of
securities in the secondary market.
The act typically governs transactions which take place between
parties which are not the original issuer, such as trades that retail
investors execute through brokerage companies.
The Paperwork Reduction Act of 1980 is a federal law designed to
reduce the total amount of paperwork burden the federal government
imposes on private business and citizens.
Under the Paperwork Reduction Act, agencies must comply with specific
procedures when gathering information from the public.
H.R. 1548 will amend the Securities Exchange Act of 1934 to specify
that actions of the Advocate Small Business Capital Formation are not a
collection of information undue the Paperwork Reduction Act.
In other words, this bill excludes from the Paperwork Reduction Act
actions taken by the Office of the Advocate for Small Business Capital
Formation within the Securities and Exchange Commission.
The Office of the Advocate for Small Business Capital Formation does
hard work to provide an annual report to the United States House and
Senate to ensure that we understand the state of small business capital
formation.
The Office of the Advocate for Small Business Capital Formation will
continue to advocate for solutions to improve the capital raising
opportunities for the dreamers, builders, doers, creators, and
investors who you don't see in the headlines today.
For this reason, it is vital that we pass H.R. 1548.
The SPEAKER pro tempore. The question is on the motion offered by the
gentlewoman from Missouri (Mrs. Wagner) that the House suspend the
rules and pass the bill, H.R. 1548, 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. WAGNER. Madam Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further
proceedings on this motion will be postponed.
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