[House Report 113-304]
[From the U.S. Government Publishing Office]


                                                 Union Calendar No. 222
113th Congress  }                                            {   Report
                        HOUSE OF REPRESENTATIVES 
 1st Session    }                                            {  113-304
_______________________________________________________________________



                     ANNUAL REPORT ON THE ACTIVITY

                                 of the

                      COMMITTEE ON SMALL BUSINESS

                  FIRST SESSION OF THE 113TH CONGRESS





 December 20, 2013.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _____

                  U.S. GOVERNMENT PRINTING OFFICE

 39-006                   WASHINGTON : 2013










                         LETTER OF TRANSMITTAL

                              ----------                              

                          House of Representatives,
                               Committee on Small Business,
                                 Washington, DC, December 20, 2013.
Hon. Karen L. Haas,
Clerk, House of Representatives,
Washington, DC.
    Dear Ms. Haas: Pursuant to clause 1(d)(3) of Rule XI of the 
Rules of the House of Representatives, I present herewith the 
report of the activities of the Committee for the first session 
of the 113th Congress, including the Committee's review of 
legislation within its jurisdiction and the oversight 
activities taken in accordance with the oversight plan adopted 
on January 23, 2013.
            Sincerely,
                                                Sam Graves,
                                                          Chairman.
    Enclosure.














                            C O N T E N T S

                              ----------                              
                                                                   Page
Committee Jurisdiction...........................................     1
Rules of the Committee...........................................     2
Membership and Organization......................................    15
Legislative Activities...........................................    19
Oversight Summary................................................    21
  Part A--Full Committee Hearings................................    21
  Part B--Subcommittee Hearings..................................    35
  Part C--Waste, Fraud, Abuse, and Mismanagement.................    59
  Part D--Oversight Plan and Implementation......................    61
    SubPart A--Committee Oversight Plan..........................    61
    Subpart B--Implementation of Oversight Plan..................    67
Regulatory Review................................................    73










                                                 Union Calendar No. 222
113th Congress }                                           {     Report
                        HOUSE OF REPRESENTATIVES
 1st Session   }                                           {    113-304

======================================================================



 
ANNUAL REPORT ON THE ACTIVITY OF THE COMMITTEE ON SMALL BUSINESS, FIRST 
                     SESSION OF THE 113TH CONGRESS

                                _______
                                

 December 20, 2013.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

Mr. Graves of Missouri, from the Committee on Small Business, submitted 
                             the following

                              R E P O R T

    Clause 1(d) of rule XI of the Rules of the House of 
Representatives for the 113th Congress requires that each 
standing committee, not later than January 2, submit to the 
House a report on the activities of that committee, including 
separate sections summarizing the legislative and oversight 
activities of that committee.

              JURISDICTION AND SPECIAL OVERSIGHT FUNCTION

    Clause 1(q) of rule X of the Rules of the House of 
Representatives of the 113th Congress sets forth the 
jurisdiction of the Committee on Small Business as follows--
    (1) Assistance to and protection of small business, 
including financial aid, regulatory flexibility, and paperwork 
reduction.
    (2) Participation of small-business enterprises in Federal 
procurement and Government contracts.
    Clause 3(l) of rule X of the Rules of the House of 
Representatives for the 113th Congress sets forth the Special 
Oversight Function of the Committee on Small Business as 
follows--
    The Committee on Small Business shall study and investigate 
on a continuing basis the problems of all types of small 
business.

    RULES OF THE COMMITTEE ON SMALL BUSINESS FOR THE 113TH CONGRESS

                         1. GENERAL PROVISIONS

    The Rules of the House of Representatives, in total (but 
especially with respect to the operations of committees Rule X, 
cl. 1(q), cl. 2, cl. 3(l), and Rule XI) are the rules of the 
Committee on Small Business to the extent applicable and are 
incorporated by reference. Each Subcommittee of the Committee 
on Small Business (``the Committee'') is a part of the 
Committee and is subject to the authority and direction of the 
Committee, and to the rules of the House and the rules adopted 
herein to the extent applicable.

                   2. REFERRAL OF BILLS BY THE CHAIR

    The Chair will retain consideration of all legislation 
referred to the Committee by the Speaker. No action will be 
required of a Subcommittee before legislation is considered for 
report by the Committee. Subcommittee chairs, pursuant to the 
rules set out herein, may hold hearings on any bill referred to 
the Committee.

                           3. DATE OF MEETING

    The regular meeting date of the Committee shall be the 
second Wednesday of every month when the House is in session. 
The Chair may dispense with the meeting of the Committee, if in 
the sole discretion of the Chair, there is no need for such 
meeting. Additional meetings may be called as deemed necessary 
by the Chair or at the request of the majority Members of the 
Committee pursuant to Rule XI, cl. 2(c) of the rules of the 
House.
    At least 3 days notice of such an additional meeting shall 
be given unless the Chair, with the concurrence of the Ranking 
Minority Member, determines that there is good cause to call 
the meeting on less notice or upon a vote by a majority of the 
Committee (a quorum being present). To the extent possible, the 
three days shall be counted from the 72 hours before the time 
of the meeting. Announcements of the meeting shall be published 
promptly in the Daily Digest and made publicly available in 
electronic form.
    The determination of the business to be considered at each 
meeting shall be made by the Chair subject to limitations set 
forth in House Rule XI, cl. 2(c).
    The Chair shall provide to each Member of the Committee, to 
the extent practicable, at least 48 hours in advance of a 
meeting, a copy of the bill, resolution, report or other item 
to be considered at the meeting, but no later than 24 hours 
before the meeting. Such material also shall be made available 
to the public at least 24 hours in advance in electronic form.
    The rules for notice and meetings as set forth in Rule 3 of 
these Rules shall not apply to special and emergency meetings. 
Clause 2(c)(2) of Rule XI and clause 2(g)(3)(A) of Rule XI of 
the Rules of the House, as applicable, shall apply to such 
meetings.
    A record vote of the Committee shall be provided on any 
question before the Committee upon the request of any Member of 
the Committee. A record of the vote of each Member of the 
Committee on a matter before the Committee shall be available 
in electronic form within 48 hours of such record vote, and, 
with respect to any roll call vote on any motion to amend or 
report, shall be included in the report of the Committee 
showing the total number of votes cast for and against and the 
names of those Members voting for and against.
    The Chair of the Committee shall, not later than 24 hours 
after consideration of a bill, resolution, report or other item 
cause the text of the reported item and any amendment adopted 
thereto to be made publicly available in electronic form.

                      4. ANNOUNCEMENT OF HEARINGS

    Public announcement of the date, place, and subject matter 
of any hearing to be conducted by the Committee shall be made 
no later than 7 calendar days before the commencement of the 
hearing. To the extent possible, the seven days shall be 
counted from 168 hours before the time of the Committee's 
hearing.
    The Chair, with the concurrence of the Ranking Minority 
Member, or upon a vote by the majority of the Committee (a 
quorum being present), may authorize a hearing to commence on 
less than 7 calendar days notice.

A. Witness Lists

    Unless the Chair determines it is impracticable to do so, 
the Committee shall make a tentative witness list available at 
the time it makes the public announcement of the hearing. If a 
tentative witness list is not made available at the time of the 
announcement of the hearing, such witness list shall be made 
available as soon as practicable after such announcement is 
made. A final witness list shall be issued by the Committee no 
later than 48 hours prior to the commencement of the hearing.

B. Material for the Hearing

    The Chair shall provide to all Members of the Committee, as 
soon as practicable after the announcement of the hearing, a 
memorandum explaining the subject matter of the hearing and any 
official reports from departments and agencies on the subject 
matter of the hearing. Such material shall be made available to 
all Members of the Committee no later than 48 hours before the 
commencement of the hearing unless the Chair, after 
consultation with the Ranking Minority Member, determines that 
certain reports from departments or agencies should not be made 
available prior to the commencement of the hearing. Material 
provided by the Chair to all Members, whether provided prior to 
or at the hearing, shall be placed on the Committee website no 
later than 48 hours after the commencement of the hearing 
unless such material contains sensitive or classified 
information in which case such material shall be handled 
pursuant to Rule 15 of the Committee's Rules.

              5. MEETINGS AND HEARINGS OPEN TO THE PUBLIC

A. Meetings

    Each meeting of the Committee or its Subcommittees for the 
transaction of business, including the markup of legislation, 
shall be open to the public, including to radio, television, 
and still photography coverage, except as provided by House 
Rule XI, cl. 4. If the majority of Members of the Committee or 
Subcommittee present at the meeting, determine by a recorded 
vote in open session that all or part of the remainder of the 
meeting on that day shall be closed to the public because the 
disclosure of matters to be considered would endanger national 
security, would compromise sensitive law enforcement 
information, or would tend to defame, degrade, or incriminate 
any person or otherwise would violate any law or rule of the 
House; provided however, that no person other than Members of 
the Committee, and such congressional staff and such executive 
branch representatives they may authorize, shall be present in 
any meeting which has been closed to the public.
    The Chair and Ranking Minority Member are ex officio 
Members of all Subcommittees for the purpose of any meeting 
conducted by a Subcommittee.

B. Hearings

    Each hearing conducted by the Committee or its 
Subcommittees shall be open to the public, including radio, 
television and still photography coverage. If the majority of 
Members of the Committee or Subcommittee present at the 
hearing, determine by a recorded vote in open session that all 
or part of the remainder of the hearing on that day shall be 
closed to the public because the disclosure of matters to be 
considered would endanger national security, would compromise 
sensitive law enforcement information, or would tend to defame, 
degrade, or incriminate any person or otherwise would violate 
any law or rule of the House; provided however, that the 
Committee or Subcommittee may by the same procedure also vote 
to close one subsequent day of hearings. Notwithstanding the 
requirements of the preceding sentence, a majority of those 
present (if the requisite number of Members are present under 
Committee rules for the purpose of taking testimony) may vote: 
(i) to close the hearing for the sole purpose of discussing 
whether the testimony or evidence to be received would endanger 
the national security, would compromise sensitive law 
enforcement information, or violate Rule XI, cl. 2(k)(5) of the 
House or (ii) to close the hearing, as provided clause 2(k)(5) 
of Rule XI of the House.
    The Chair and Ranking Minority Member are ex officio 
Members of all Subcommittees for any hearing conducted by a 
Subcommittee. Members of the Committee who wish to participate 
in a hearing of the Subcommittee to which they are not Members 
shall make such request to the Chair and the Ranking Minority 
Member of the Subcommittee at the commencement of the hearing. 
The Chair, after consultation with the Ranking Minority Member 
of the Subcommittee, shall grant such request.
    No Member of the House may be excluded from non-
participatory attendance at any hearing of the Committee or any 
Subcommittee, unless the House of Representatives shall by 
majority vote authorize the Committee or Subcommittees, for 
purposes of a particular subject of investigation, to close its 
hearing to Members by the same procedures designated to close 
hearings to the public.
    Members of Congress who are not Members of the Committee 
but would like to participate in a hearing shall notify the 
Chair and the Ranking Minority Member and submit a formal 
request no later than 24 hours before the commencement of the 
meeting or hearing.
    To the maximum extent practicable, the Committee shall 
provide audio and video coverage of each hearing or meeting for 
the transaction of business in a manner that allows the public 
to easily listen and view the proceedings and shall maintain 
the recordings of such coverage in a manner easily accessible 
to the public.

                              6. WITNESSES

A. Statement of Witnesses

    Each witness who is to appear before the Committee or 
Subcommittee shall file an electronic copy of the testimony 
with the Committee and the Ranking Minority Member no later 
than 48 hours before the commencement of the hearing. In 
addition, the witness shall provide 50 copies of the testimony 
by the commencement of the hearing. The Chair may waive the 
requirement by the witness providing 50 copies in which case 
the Committee or Subcommittee shall provide the 50 copies.
    Each non-governmental witness shall provide to the 
Committee and the Ranking Minority Member, no later than 48 
hours before the commencement of the hearing, a curriculum 
vitae or other statement describing their education, 
employment, professional affiliation or other background 
information pertinent to their testimony.
    As required by Rule XI, cl. 2(g) of the Rules of the House, 
each non-governmental witness before the commencement of the 
hearing shall file with the Chair a disclosure form detailing 
any contracts or grants that the witness has with the federal 
government. Such information shall be posted on the Committee 
within 24 hours after the witness appeared at the hearing.
    The failure to provide the materials set forth by the 
deadlines set forth in these rules may be grounds for excluding 
both the oral and written testimony of the witness unless 
waived by the Chair of the Committee or Subcommittee.
    The Committee will provide public access to printed 
materials, including the testimony of witnesses in electronic 
form on the Committee's website no later than 24 hours after 
the hearing is adjourned. Supplemental material provided after 
the hearing adjourns, shall be placed on the Committee website 
no later than 24 hours after receipt of such material.

B. Number of Witnesses and Witnesses Selected by the Minority

    For any hearing conducted by the Committee or Subcommittee 
there shall be no more than four non-governmental witnesses of 
which the Ranking Minority Member of the Committee or 
Subcommittee (as appropriate) is entitled to select one witness 
for the hearing. Witnesses selected by the Ranking Minority 
Member of the Committee or Subcommittee shall be invited to 
testify by the Chair of the Committee or Subcommittee (as 
appropriate). Rule 6(A) shall apply with equal force to 
witnesses selected by the Ranking Minority Member of the 
Committee or Subcommittee.
    The limitations set forth in the preceding paragraph shall 
not apply if the Committee holds a hearing to honor the work of 
the small business community in conjunction with the annual 
celebration of Small Business Week. Witness limitations for 
such a hearing shall be determined by the Chair in consultation 
with the Ranking Minority Member.

C. Interrogation of Witnesses

    Except when the Committee adopts a motion pursuant to 
subdivisions (B) and (C) of clause 2(i)(2) of Rule XI of the 
Rules of the House, Committee Members may question witnesses 
only when they have been recognized by the Chair for that 
purpose.
    The Chair and Ranking Minority Member of the Committee or 
Subcommittee shall face no limitation on the length of the time 
that they may question a witness. After recognition by the 
Chair, other Members shall have the opportunity, as set forth 
in Rule XI, cl. 2(j) of the Rules of the House, to question 
each witness on the panel for a period not to exceed five 
minutes.
    For any hearing, the Chair of the Committee or Subcommittee 
may offer a motion to extend the questioning of a witness or 
witnesses by Members other than the Chair or Ranking Minority 
Member identified in the motion for more than five minutes as 
set forth in Rule XI, cl. 2(j)(B).
    The Chair of the Committee or Subcommittee shall commence 
questioning followed by the Ranking Minority Member. 
Thereafter, questioning shall alternate between the majority 
and minority Members by the time in which the Member arrived at 
the hearing after the gavel has been struck to commence the 
hearing, with the first arriving having priority over Members 
of his or her party. If Members arrive simultaneously or are 
there prior to the gavel being struck to commence the hearing, 
order of questioning shall be based on seniority.
    In recognizing Members to question witnesses, the Chair may 
take into consideration the ratio of majority and minority 
Members present in such a manner as to not disadvantage the 
Members of either party.

                              7. SUBPOENAS

    A subpoena may be authorized and issued by the Committee in 
the conduct of any investigation or series of investigations or 
activities to require the attendance and testimony of such 
witness and the production of such books, records, 
correspondence, memoranda, papers and document, as deemed 
necessary. Such subpoena shall be authorized by a majority of 
the full Committee. The requirement that the authorization of a 
subpoena require a majority vote may be waived by the Ranking 
Member of the Committee. The Chair may issue a subpoena, in 
consultation with the Ranking Minority Member, when the House 
is out for session for more than three legislative days.

                               8. QUORUM

    A quorum, for purposes of reporting a measure or 
recommendation, shall be a majority of the Committee Members. 
For purposes of taking testimony or receiving evidence, a 
quorum shall be one Member from the Majority and one Member 
from the Minority. The Chair of the Committee or Subcommittee 
shall exercise reasonable comity by waiting for the Ranking 
Minority Member even if a quorum is present before striking the 
gavel to commence the hearing. For hearings held by the 
Committee or a Subcommittee in a location other than the 
Committee's hearing room in Washington, DC, a quorum shall be 
deemed to present if the Chair of the Committee or Subcommittee 
is present.

                      9. AMENDMENTS DURING MARK-UP

    Any amendment offered to any pending legislation before the 
Committee must be made available in written form by any Member 
of the Committee. If such amendment is not available in written 
form when requested, the Chair shall allow an appropriate 
period for the provision thereof and may adjourn the markup to 
provide sufficient time for the provision of such written 
amendment. Such period or adjournment shall not prejudice the 
offering of such amendment.
    For amendments to be accepted during mark-up, there is no 
requirement that the amendments be filed prior to commencement 
of the mark-up or prepared with the assistance of the Office of 
Legislative Counsel. Even though it is not necessary, Members 
seeking to amend legislation during mark-up should draft 
amendments with the assistance of the Office of Legislative 
Counsel and consult with the Chair or Ranking Member's staff 
(as appropriate) in the preparation of such amendments.

                    10. POSTPONEMENT OF PROCEEDINGS

    The Chair in consultation with the Ranking Minority Member 
may postpone further proceedings when a record vote is ordered 
on the question of approving any measure or matter or adopting 
an amendment. The Chair may resume postponed proceedings, but 
no later than 24 hours after such postponement, unless the 
House is not in session or there are conflicts with Member 
schedules that make it unlikely a quorum will be present to 
conduct business on the postponed proceeding. In such cases, 
the Chair will consult with Members to set a time as early as 
possible to resume proceedings but in no event later than the 
next meeting date as set forth in Rule 3 of these Rules. When 
proceedings resume on a postponed question, notwithstanding any 
intervening order for the previous question, an underlying 
proposition shall remain subject to further debate or amendment 
to the same extent as when the question was postponed.

              11. NUMBER AND JURISDICTION OF SUBCOMMITTEES

    There will be five Subcommittees as follows:

The Subcommittee on Agriculture, Energy and Trade

    This Subcommittee (which will consist of six (6) Republican 
Members and four (4) Democratic Members) will address policies 
that enhance rural economic growth, increasing America's energy 
independence and ensuring that America's small businesses can 
compete effectively in a global marketplace.
     Oversight of agricultural policies.
     Oversight of environmental issues and regulations 
(including agencies such as the Environmental Protection Agency 
and the Army Corps of Engineers).
     Oversight of energy issues, including expansion of 
domestic resources whether they are renewable or non-renewable.
     Oversight of international trade policy with 
particular emphasis on agencies that provide direct assistance 
to small businesses, such as: the Small Business 
Administration's (SBA) Office of International Trade, the 
Department of Commerce's United States Export Assistance 
Centers, the Department of Agriculture's Foreign Agricultural 
Service, and the Export-Import Bank.
     Oversight of infringement of intellectual property 
rights by foreign competition.

The Subcommittee on Health and Technology

    This Subcommittee (which will consist of six (6) Republican 
Members and four (4) Democratic Members) will address how 
healthcare policies may inhibit or promote economic growth and 
job creation by small businesses. In addition, the Subcommittee 
will examine small business job growth through the creation and 
adoption of advanced technologies.
     Oversight of the implementation of the Patient 
Protection and Affordable Care Act.
     Oversight of availability and affordability of 
health care coverage for small businesses.
     Oversight of general technology issues, including 
intellectual property policy in the United States.
     Oversight of United States telecommunications 
policies including, but not limited to, the National Broadband 
Plan and allocation of electromagnetic spectrum.
     The Small Business Innovation Research Program.
     Small Business Technology Transfer Program.

The Subcommittee on Economic Growth, Tax and Capital Access

    This Subcommittee (which will consist of six (6) Republican 
Members and four (4) Democratic Members) will evaluate the 
operation of the financial markets in the United States and 
their ability to provide needed capital to small businesses. In 
addition, the Subcommittee will review federal programs, 
especially those overseen by the SBA, aimed at assisting 
entrepreneurs in obtaining needed capital. Since the tax policy 
plays an integral role in access to capital, this Committee 
also will examine the impact of federal tax policies on small 
businesses.
     Oversight of capital access and financial markets.
     Implementation of the Dodd-Frank Wall Street 
Reform and Consumer Protection Act.
     SBA financial assistance programs, including 
guaranteed loans, microloans, certified development company 
loans, and small business investment companies.
     Oversight of the Department of Agriculture 
business and industry guaranteed loan program.
     Oversight of general tax policy affecting small 
businesses.
     The management of the SBA disaster loan program.

The Subcommittee on Investigations, Oversight and Regulations

    This Subcommittee (which will consist of six (6) Republican 
Members and four (4) Democratic Members) will probe the 
efficient operation of government programs that affect small 
businesses, including the SBA, and develop proposals to make 
them operate in a more cost-effective manner. This Subcommittee 
also will review the regulatory burdens imposed on small 
businesses and how those burdens may be alleviated.
     Oversight of general issues affecting small 
businesses and federal agencies.
     Oversight of the management of the SBA.
     Oversight of the SBA Inspector General.
     Implementation of the Regulatory Flexibility Act.
     Oversight of the Office of Information and 
Regulatory Affairs at the Office of Management and Budget.
     Use of the Congressional Review Act.
     Transparency of the federal rulemaking process as 
required by the Administrative Procedure and Data Quality Acts.
     Implementation of the Paperwork Reduction Act.

The Subcommittee on Contracting and Workforce

    This Subcommittee (which will consist of six (6) Republican 
Members and four (4) Democratic Members) will assess the 
federal procurement system, including those programs designed 
specifically to enhance participation by small businesses in 
providing goods and services to the federal government. The 
Subcommittee will examine various programs designed to provide 
technical assistance to small businesses, whether specifically 
aimed at federal contractors or small businesses in general. 
Finally, the Subcommittee will review the broad scope of 
workforce issues that affect the ability of small businesses to 
obtain and maintain qualified employees.
     Oversight of government-wide procurement practices 
and programs affecting small businesses.
     Oversight of federal procurement policies that 
inhibit or expand participation by small businesses in the 
federal contracting marketplace.
     All contracting programs established by the Small 
Business Act, including HUBZone, 8(a), Women-, and Service 
Disabled Veteran-Owned Small Business Programs.
     Technical assistance provided to federal 
contractors and perspective contractors through SBA personnel, 
Offices of Small and Disadvantaged Business Utilization, and 
Procurement Technical Assistance Centers.
     The SBA Surety Bond guarantee program.
     Oversight of all federal policies that affect the 
workforce including, but not limited to, the roles of the 
Department of Labor and the National Labor Relations Board.
     SBA entrepreneurial development and technical 
assistance programs unrelated to participation in the federal 
government contracting.

                 12. POWERS AND DUTIES OF SUBCOMMITTEES

    Each Subcommittee is authorized to meet, hold hearings, 
receive evidence, and report to the Committee on any matters 
referred to it. Prior to the scheduling of any meeting or 
hearing of a Subcommittee, the Chair of the Subcommittee shall 
obtain the approval of the Chair of the Committee.
    No hearing or meeting of a Subcommittee shall take place at 
the same time as the meeting or hearing of the full Committee 
or another Subcommittee, provided however, that the 
Subcommittee Chairs may hold field hearings that conflict with 
those held by other Subcommittees of the Committee.

                          13. COMMITTEE STAFF

A. Majority Staff

    The employees of the Committee, except those assigned to 
the Minority as provided below, shall be appointed and 
assigned, and may be removed by the Chair of the Committee. The 
Chair shall fix their remuneration and they shall be under the 
general supervision and direction of the Chair.

B. Minority Staff

    The employees of the Committee assigned to the Minority 
shall be appointed and assigned, and their remuneration 
determined, as the Ranking Minority Member of the Committee 
shall decide.

C. Subcommittee Staff

    There shall be no separate staff assigned to Subcommittees. 
The Chair and Ranking Member shall endeavor to ensure that 
sufficient committee staff is made available in order that each 
Subcommittee may carry out the responsibilities set forth in 
Rule 11, supra.

                              14. RECORDS

    The Committee shall keep a complete record of all actions, 
which shall include a record of the votes on any question on 
which a recorded vote is demanded. The result of any vote by 
the Committee, or if applicable by a Subcommittee, including a 
voice vote shall be posted on the Committee's website within 24 
hours after the vote has been taken. Such record shall include 
a description of the amendment, motion, order, or other 
proposition, the name of the Member voting for and against such 
amendment, motion, order, or other proposition, and the names 
of Members present but not voting. For any amendment, motion, 
order, or other proposition decided by voice vote, the record 
shall include a description and whether the voice vote was in 
favor or against.
    The Committee shall keep a complete record of all Committee 
and Subcommittee activity which, in the case of a meeting or 
hearing transcript shall include a substantially verbatim 
account of the remarks actually made during the proceedings 
subject only to technical, grammatical, and typographical 
corrections authorized by the person making the remarks.
    The records of the Committee at the National Archives and 
Records Administration shall be made available in accordance 
with Rule VII of the Rules of the House. The Chair of the 
Committee shall notify the Ranking Member of the Committee of 
any decision, pursuant to Rule VII, cl. 3(b)(3) or cl. 4(b), to 
withhold a record otherwise available, and the matter shall be 
presented to the Committee for a determination of the written 
request of any Member of the Committee.
    The Committee Rules shall be made publicly available in 
electronic form and published in the Congressional Record not 
later than 30 days after the Chair of the Committee is elected 
in each odd-numbered year.

           15. ACCESS TO CLASSIFIED OR SENSITIVE INFORMATION

    Access to classified or sensitive information supplied to 
the Committee or Subcommittees and attendance at closed 
sessions of the Committee or a Subcommittee shall be limited to 
Members and necessary Committee staff and stenographic 
reporters who have appropriate security clearance when the 
Chair determines that such access or attendance is essential to 
the functioning of the Committee or one of its Subcommittees.
    The procedures to be followed in granting access to those 
hearings, records, data, charts, and files of the Committee 
which involve classified information or information deemed to 
be sensitive shall be as follows:
    (A) Only Members of the House of Representatives and 
specifically designated Committee staff of the Committee on 
Small Business may have access to such information.
    (B) Members who desire to read materials that are in 
possession of the Committee shall notify the Clerk of the 
Committee in writing.
    (C) The Clerk of the Committee will maintain an accurate 
access log, which identifies the circumstances surrounding 
access to the information, without revealing the material 
examined.
    (D) If the material desired to be reviewed is material 
which the Committee or Subcommittee deems to be sensitive 
enough to require special handling, before receiving access to 
such information, individuals will be required to sign an 
access information sheet acknowledging such access and that the 
individual has read and understands the procedures under which 
access is being granted.
    (E) Material provided for review under this rule shall not 
be removed from a specified room within the Committee offices.
    (F) Individuals reviewing materials under this rule shall 
make certain that the materials are returned to the proper 
custodian.
    (G) No reproductions or recordings may be made of any 
portion of such materials.
    (H) The contents of such information shall not be divulged 
to any person in any way, form, shape, or manner and shall not 
be discussed with any person who has not received the 
information in the manner authorized by the rules of the 
Committee.
    (I) When not being examined in the manner described herein, 
such information will be kept in secure safes or locked file 
cabinets within the Committee offices.
    (J) These procedures only address access to information the 
Committee or Subcommittee deems to be sensitive enough to 
require special treatment.
    (K) If a Member of the House of Representatives believes 
that certain sensitive information should not be restricted as 
to dissemination or use, the Member may petition the Committee 
or Subcommittee to so rule. With respect to information and 
materials provided to the Committee by the Executive Branch or 
an independent agency as that term is defined in 44 U.S.C. 
Sec. 3502, the classification of information and materials as 
determined by the Executive Branch or independent agency shall 
prevail unless affirmatively changed by the Committee or 
Subcommittee involved, after consultation with the Executive 
Branch or independent agency.
    (L) Other materials in the possession of the Committee are 
to be handled in the accordance with normal practices and 
traditions of the Committee.

                          16. OTHER PROCEDURES

    The Chair of the Committee may establish such other 
procedures and take such actions as may be necessary to carry 
out the foregoing rules or to facilitate the effective 
operation of the Committee.

                   17. AMENDMENTS TO COMMITTEE RULES

    The rules of the Committee may be modified, amended or 
repealed by a majority vote of the Members, at a meeting 
specifically called for such purpose, but only if written 
notice of the proposed change or changes has been provided to 
each Member of the Committee at least 72 hours prior to the 
time of the meeting of the Committee to consider such change or 
changes.

                         18. BUDGET AND TRAVEL

    From the amount provided to the Committee in the primary 
expense resolution adopted by the House of Representatives in 
the 113th Congress, the Chair, after consultation with the 
Ranking Minority Member, shall designate one-third of the 
budget under the direction of the Ranking Minority Member for 
the purposes of minority staff, travel expenses of minority 
staff and Members, and minority office expenses.
    The Chair may authorize travel in connection with 
activities or subject matters under the legislative or 
oversight jurisdiction of the Committee as set forth in Rule X 
of the Rules of the House.
    The Ranking Minority Member may authorize travel for any 
Minority Member or staff of the minority in connection with 
activities or subject matters under the Committee's 
jurisdiction as set forth in Rule X of the Rules of the House. 
Before such travel, there shall be submitted to the Chair of 
the Committee in writing the following at least seven (7) 
calendar days prior specifying: a) the purpose of the travel; 
b) the dates during which the travel is to occur; c) the names 
of the states or countries to be visited and the length of time 
spent in each; and d) the names of Members and staff of the 
Committee participating in such travel. Prior approval shall 
not be required of Minority Staff traveling to participate in a 
deposition, authorized by the Chair in rule 16 of these Rules 
of an individual located outside of Washington, DC metropolitan 
area.

                         19. COMMITTEE WEBSITE

    The Chair shall maintain an official Committee website for 
the purpose of furthering the Committee's legislative and 
oversight responsibilities, including communicating information 
about Committee's activities to Committee Members and other 
Members of the House. The Ranking Minority Member may maintain 
a similar website for the same purpose, including communicating 
information about the activities of the Minority to Committee 
Members and other Members of the House.

                             20. VICE CHAIR

    Pursuant to the Rules of the House, the Chair shall 
designate a Member of the Majority to serve as Vice Chair of 
the Committee. The Vice Chair shall preside at any meeting or 
hearing during the temporary absence of the Chair. The Chair 
also reserves the right to designate a Member of the Committee 
Majority to serve as the Chair at a hearing or meeting.
                      MEMBERSHIP AND ORGANIZATION

                                 OF THE

                      COMMITTEE ON SMALL BUSINESS

                  ONE HUNDRED AND THIRTEENTH CONGRESS

                             FULL COMMITTEE
REP. NYDIA M. VELAZQUEZ (NY-7),      REP. SAM GRAVES (MO-6),
  Ranking Member                       Chairman
REP. KURT SCHRADER (OR-5)            REP. STEVE CHABOT (OH-1)
REP. YVETTE D. CLARKE (NY-9)         REP. STEVE KING (IA-4)
REP. JUDY CHU (CA-27)                REP. MIKE COFFMAN (CO-6)
REP. JANICE HAHN (CA-44)             REP. BLAINE LUETKEMEYER (MO-3)
REP. DONALD M. PAYNE, Jr. (NJ-10)    REP. MICK MULVANEY (SC-5)
REP. GRACE MENG (NY-6)               REP. SCOTT R. TIPTON (CO-3)
REP. BRADLEY S. SCHNEIDER (IL-10)    REP. JAIME HERRERA BEUTLER (WA-3)
REP. RON BARBER (AZ-2)               REP. RICHARD L. HANNA (NY-22)
REP. ANN M. KUSTER (NH-2)            REP. TIM HUELSKAMP (KS-1)
REP. PATRICK MURPHY (FL-18)          REP. DAVID SCHWEIKART (AZ-6)
                                     REP. KERRY L. BENTIVOLIO (MI-11)
                                     REP. CHRIS COLLINS (NY-27)
                                     REP. TOM RICE (SC-7)
                                     REP. BOBBY SCHILLING (IL-17)

             SUBCOMMITTEE ON AGRICULTURE, ENERGY AND TRADE

REP. PATRICK MURPHY (FL-18),         REP. SCOTT R. TIPTON (CO-3),
  Ranking Member                       Chairman
REP. KURT SCHRADER (OR-5)            REP. STEVE KING (IA-4)
REP. GRACE MENG (NY-6)               REP. BLAINE LUETKEMEYER (MO-3)
REP. RON BARBER (AZ-2)               REP. MICK MULVANEY (SC-5)
                                     REP. RICHARD L. HANNA (NY-22)
                                     REP. TIM HUELSKAMP (KS-1)

                 SUBCOMMITTEE ON HEALTH AND TECHNOLOGY

REP. JANICE HAHN (CA-44),            REP. CHRIS COLLINS (NY-27),
  Ranking Member                       Chairman
REP. KURT SCHRADER (OR-5)            REP. STEVE KING (IA-4)
REP. BRADLEY S. SCHNEIDER (IL-10)    REP. MIKE COFFMAN (CO-6)
VACANT                               REP. BLAINE LUETKEMEYER (MO-3)
                                     REP. JAIME HERRERA BEUTLER (WA-3)
                                     REP. TIM HUELSKAMP (KS-1)

        SUBCOMMITTEE ON ECONOMIC GROWTH, TAX AND CAPITAL ACCESS

REP. JUDY CHU (CA-27),               REP. TOM RICE (SC-7),
  Ranking Member                       Chairman
REP. DONALD M. PAYNE, Jr. (NJ-10)    REP. STEVE CHABOT (OH-1)
REP. BRADLEY S. SCHNEIDER (IL-10)    REP. STEVE KING (IA-4)
REP. RON BARBER (AZ-2)               REP. MIKE COFFMAN (CO-6)
                                     REP. MIKE MULVANEY (SC-5)
                                     REP. DAVID SCHWEIKERT (AZ-6)

       SUBCOMMITTEE ON INVESTIGATIONS, OVERSIGHT AND REGULATIONS

REP. YVETTE D. CLARKE (NY-9),        REP. DAVID SCHWEIKERT (AZ-6),
  Ranking Member                       Chairman
REP. JUDY CHU (CA-27)                REP. STEVE CHABOT (OH-1)
REP. ANN M. KUSTER (NY-2)            REP. JAIME HERRERA BEUTLER (WA-3)
VACANT                               REP. KERRY L. BENTIVOLIO (MI-11)
                                     REP. CHRIS COLLINS NY-27)
                                     REP. TOM RICE (SC-7)

               SUBCOMMITTEE ON CONTRACTING AND WORKFORCE

REP. GRACE MENG (N-6),               REP. RICHARD L. HANNA (NY-22),
  Ranking Member                       Chairman
REP. YVETTE D. CLARKE (NY-9)         REP. STEVE KING (IA-4)
REP. JUDY CHU (CA-27)                REP. MICK MULVANEY (SC-5)
VACANT                               REP. SCOTT R. TIPTON (CO-3)
                                     REP. TIM HUELSKAMP (KS-1)
                                     REP. KERRY L. BENTIVOLIO (MI-11)
                         LEGISLATIVE ACTIVITIES

    Clause 1(d) of rule XI of the Rules of the House of 
Representatives for the 113th Congress requires that each 
standing committee not later than January 2 of each year, 
submit to the House a report on the activities of that 
committee, including a separate section summarizing the 
legislative activities of that committee.

          THE REGULATORY FLEXIBILITY IMPROVEMENTS ACT OF 2013

                              (H.R. 2542)

Summary
    H.R. 2542 amends the Regulatory Flexibility Act (RFA) of 
1980, as amended by the Small Business Regulatory Enforcement 
Fairness Act. The RFA requires federal agencies to consider the 
economic impact of the rules they propose on small entities. 
H.R. 2542 would strengthen the RFA by: expanding its 
requirements to agencies not currently covered; requiring more 
detailed analyses of regulatory impact; providing new 
authorities to the Chief Counsel for Advocacy; enhancing the 
participation of small businesses in the rulemaking process; 
strengthening the requirement for periodic review of 
regulations; and improving the ability of small businesses to 
challenge compliance with the RFA.
Legislative History
    Representative Spencer Bachus, Chairman of the Subcommittee 
on Regulatory Reform, Commercial and Antitrust Law introduced 
H.R. 2542 on June 27, 2013. Original cosponsors included 
Representatives Sam Graves, Chairman of the Committee on Small 
Business and Lamar Smith, Chairman of the Committee on Science, 
Space and Technology. The bill was referred to the Committee on 
Judiciary and the Committee on Small Business, for a period to 
be determined by the Speaker.
    Given that H.R. 2542 was nearly identical to H.R. 527 that 
passed the House of Representatives in the 112th Congress, the 
Committee on Small Business did not hold any hearings on the 
bill. However, as identified elsewhere in this report, the 
Committee on Small Business and its subcommittees considered 
compliance with the RFA in a number of hearings.
    The Committee on Small Business met in open session, with a 
quorum being present, on September 18, 2013 and ordered H.R. 
2542, as amended, be reported favorably to the House by a voice 
vote.
                           OVERSIGHT SUMMARY

    Clause 1(d) of rule XI of the Rules of the House of 
Representatives for the 113th Congress requires that each 
standing Committee, not later than January 2, submit to the 
House a report on the activities of that committee, including a 
separate section summarizing the oversight activities of that 
committee. The report shall also include a delineation of any 
hearings held pursuant to clauses 2(n), (o), or (p) of rule XI, 
related to waste, fraud, and abuse in government programs.
    Part A of this section describes the hearings held in full 
committee. Part B of this section describes the hearings held 
in the subcommittees. Part C of this section addresses the 
hearings that relate to clauses 2(n), (o), or (p) of Rule XI. 
Part D of this section reproduces the Committee's oversight 
plan and the actions taken related to that plan, including the 
actions required by clause 1(d)(2)(C)-(D) of Rule XI.

                                 PART A

                        Full Committee Hearings

            HEARING: ``STATE OF THE SMALL BUSINESS ECONOMY''

    On February 13, 2013, the Committee on Small Business held 
a hearing in Room 2360 of the Rayburn House Office Building on 
the state of the small business economy. The hearing reviewed 
current economic indicators that measure the health of the 
economy, with a specific focus on access to capital. The 
hearing also examined the general economic concerns facing 
small business owners during 2013.
    The witnesses were: Randall Krozner, Ph.D., Professor of 
Economics, University of Chicago, Chicago, IL; Ms. Maria Coyne, 
Executive Vice President, Consumer and Small Business Banking, 
KeyBank, Cleveland, OH, testifying on behalf of the Financial 
Services Roundtable and the Consumer Bankers Ass'n; Mr. Sean 
Falk, Owner and President, WolFTeaM LLC, Cedar Park, TX, 
testifying on behalf of the International Franchise 
Association; and Ms. Margot Dorfman, CEO, U.S. Women's Chamber 
of Commerce, Washington, DC.
    Dr. Kroszner testified that the economy is currently on a 
sideways slide and does not believe that the economy will make 
great strides in 2013. Ms. Coyne testified that many small 
business owners are reluctant to take-on additional debt in the 
form of bank loans and the Small Business Administration can 
improve their loan products by streamlining processes and 
reducing paperwork. Mr. Falk testified about the current 
business environment, including concerns about taxes, 
healthcare and regulations. Specifically, Mr. Falk testified 
that the healthcare law will lead to reductions in hours for 
his employees and have a detrimental effect on hiring. Ms. 
Dorfman testified that women-owned small business continue to 
struggle to access capital and there need to be improvements in 
government contracting for small business.

  HEARING: ``ENTREPRENEURIAL ASSISTANCE: EXAMINING INEFFICIENCIES AND 
                 DUPLICATION ACROSS FEDERAL PROGRAMS''

    On March 20, 2013, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for the purpose 
of providing oversight on fragmentation, overlap, and 
duplication in entrepreneurial assistance programs across the 
federal government, specifically between the United States 
Small Business Administration (SBA) and the United States 
Department of Agriculture (USDA). The hearing examined the 
United States Government Accountability Office's (GAO) reports 
identifying opportunities for improvements across 52 
entrepreneurial assistance programs and discussed steps taken 
by USDA and SBA to implement GAO's recommendations. Further, 
based on GAO's reports the hearing examined which 
entrepreneurial assistance programs may be ineffective or 
redundant.
    The witnesses were: Mr. William B. Shear, Director, 
Financial Markets and Community Investment, GAO, Washington, 
DC; Michael A. Chodos, Esq., Associate Administrator for 
Entrepreneurial Development, SBA, Washington, DC; and Mr. Doug 
O'Brien, Deputy Under Secretary for Rural Development, USDA, 
Washington, DC.
    The witnesses provided testimony on GAO's reports which 
identified 52 entrepreneurial assistance programs across the 
government and revealed significant overlaps and fragmented 
delivery of assistance. Mr. Shear testified that inefficiencies 
among these programs ``could compromise the government's 
ability to effectively provide the needed services and meet the 
shared goals of the programs.'' He further opined that better 
data collection and further collaboration among the agencies 
was necessary. Mr. Chodos stated the SBA is enhancing its 
outreach and collaborative efforts with other agencies but 
recognizes that ``there are always further opportunities to use 
taxpayer dollars wisely.'' Mr. O'Brien testified that in 
response to GAO's report, USDA was developing a strategic plan 
``to improve the quality of performance measurement within the 
next two years,'' and was researching options with SBA to 
enhance collaboration in rural communities.

   HEARING: ``SMALL BUSINESS TAX REFORM: GROWTH THROUGH SIMPLICITY''

    On April 10, 2013, the Committee on Small Business met in 
room 2360 of the Rayburn House Office Building for the purpose 
of receiving testimony on tax reform and how it could affect 
small businesses. The hearing, titled ``Small Business Tax 
Reform: Growth Through Simplicity,'' focused on various 
legislative proposals released by the Committee on Ways and 
Means on March 10, 2013 aimed at simplifying the tax code and 
lowering tax rates.
    The witnesses for the hearing were: The Honorable Dave Camp 
(R-MI), Chairman, Committee on Ways and Means, United States 
House of Representatives, Washington, DC; Mr. Sam Griffith, 
President and CEO, National Jet Company, LaVale, MD, testifying 
on behalf of the National Tooling and Machining Association; 
Mr. Steve Bearden, President and CEO of Linemark Printing, 
Upper Marlboro, MD, testifying on behalf of Printing Industries 
of America; Mr. Tim Watters, President and CEO of Hoffman 
Equipment, Piscataway, NJ, testifying on behalf of the 
Associated Equipment Dealers (AED); and Mr. Roger Harris, 
President and COO of Padgett Business Services, Athens, GA.
    Chairman Camp began the hearing by stating that the tax 
code ought to be easier to understand and less expensive for 
small businesses to comply with because every dollar they are 
not spending on taxes and tax compliance is a dollar they have 
to invest in equipment, start a new production line, hire a new 
employee or provide more in wages and benefits. He also stated 
that his goal for comprehensive tax reform is a simpler, fairer 
tax code that leads to more jobs and higher wages. Mr. Griffith 
stated that both he and the National Tooling and Machining 
Association wholeheartedly support tax reform that includes 
real reform for both C Corporations and pass-through companies 
which make up the majority of small businesses in this country. 
Mr. Bearden continued to say that Chairman Camp's overall goal 
of simplifying tax rules concerning small business in order to 
reduce the impact of tax costs and complexity is one both he 
and the Printing Industries of America can and do support. Mr. 
Watters testified that AED members overwhelmingly believe that 
the uncertainty surrounding the tax code is dragging down the 
economy. Finally, Mr. Harris stated that many small business 
owners that rely heavily on their business checking accounts 
for their basic books, what might seem like good tax policy 
here in the halls of Congress will be, and is, seen as needless 
burden to someone simply trying to make the next payroll. He 
later went on to say that Chairman Camp's proposal heads in the 
right direction for entrepreneurs looking for a simpler system 
that simplifies their lives and lets them just focus on running 
and building their businesses.

    HEARING: ``HEALTH CARE LAW: IMPLEMENTATION AND SMALL BUSINESSES

    On April 17, 2013, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for the purpose 
of receiving testimony on ``The Health Care Law: Implementation 
and Small Businesses.''
    The witnesses were: Douglas Holtz-Eakin, Ph.D., President, 
American Action Forum, Washington, DC; Mr. William J. Gouldin, 
Jr., President, Strange's Florists, Greenhouses and Garden 
Centers, Richmond, VA, testifying on behalf of the National 
Federation of Independent Business; Ms. Louisa McQueeney, 
General Manager/CFO, Palm Beach Groves, Lantana, FL, testifying 
on behalf of the Main Street Alliance; and Mr. Kevin Tindall, 
Owner, Tindall & Ranson Heating & Cooling, Princeton, NJ, 
testifying on behalf of the Plumbing-Heating-Cooling 
Contractors--National Association.
    Dr. Holtz-Eakin discussed the health care law's regulatory 
burdens, regulatory uncertainty, taxes and fees, and impact of 
raising the cost of insurance have seriously impeded small 
business growth. For example, he cited the burden of 80 billion 
hours of paperwork and $33.8 billion in costs to comply with 
the law, and taxes and fees that actually encourage small firms 
to stay small rather than expand and grow.
    Mr. Gouldin, who has 100-150 employees in a blend of full-
time, part-time, and seasonal workers, has offered and paid for 
100% of his full time employees' health coverage since the 
1970s. He testified that his premium costs have risen from .44% 
of sales in 1968 to nearly 2% of sales in 2012, and rising 
costs are suppressing wages. He believes the IRS' definition of 
a ``full-time'' employee as one working 30 hours or more per 
week will cause employers to shift employees to 27 hours per 
week.
    Ms. McQueeney stated that she benefited from the law's free 
wellness checkup, the provision allowing her daughter to remain 
on her policy after college graduation, and the small business 
health care tax credit. Her firm also received a refund from 
its insurer because it did not reach its medical loss ratio 
goal.
    Mr. Tindall, who has 20 employees (down from 30 due to the 
economy), will not be affected by the employer mandate 
initially but wants to continue to provide health coverage for 
his employees. However, in 2011, his premiums rose 9.7% 
followed by a hike of 9.3% for 2012. He said these continued 
increases completely stifle his ability to create, provide and 
sustain jobs.

 HEARING: ``THE BUDGET OUTLOOK FOR THE SMALL BUSINESS ADMINISTRATION''

    On April 24, 2013, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for the purpose 
of receiving testimony on ``The Budget Outlook for the Small 
Business Administration.'' Each year the Committee is required 
to provide its views and estimates on the budget proposal by 
the President for the United States Small Business 
Administration (SBA). This hearing was the Committee's 
examination of the SBA's budget.
    The only witness for the hearing was the Hon. Karen Mills, 
Administrator, SBA, Washington, DC. The Administrator testified 
that the budget would: increase the availability of guaranteed 
loans to small businesses; provide for 32 new procurement 
center representatives; and establish new, unauthorized 
entrepreneurial training programs.

 HEARING: ``RETROSPECTIVE REVIEW: HAVE EXISTING REGULATORY BURDENS ON 
                    SMALL BUSINESSES BEEN REDUCED?''

    On May 8, 2013, the Committee on Small Business met in Room 
2360 of the Rayburn House Office Building for the purpose of 
receiving testimony on federal agencies' efforts to review 
their existing regulations, as ordered by President Obama under 
Executive Orders 13,563 and 13,610. The hearing examined 
whether the retrospective review efforts of the United States 
Department of Transportation (DOT), the United States Small 
Business Administration (SBA) and the United States Department 
of Agriculture (USDA) are resulting in meaningful cost or 
paperwork burden reductions for small businesses.
    The witnesses were: the Hon. Polly Trottenberg, Under 
Secretary of Transportation for Policy, DOT, Washington, DC; 
Ms. Jeanne Hulit, Associate Administrator for Capital Access, 
SBA, Washington, DC; and Ms. Cheryl Cook, Chief Information 
Officer, USDA, Washington, DC.
    Under Secretary Trottenberg discussed the process DOT used 
to implement its retrospective review plan and provided several 
examples of rulemaking actions that DOT is pursuing that it 
expects will positively affect small businesses. Ms. Hulit 
testified that SBA has proposed several regulatory changes in 
an effort to increase eligibility for SBA's 7(a) and Certified 
Development Company loan programs for small businesses. Ms. 
Cook testified that after reviewing 2,100 public comments and 
conducting an evaluation of its regulations, USDA identified 13 
initiatives in its review plan and is in the process of 
implementing several initiatives that will reduce paperwork 
burdens.

 HEARING: ``PATENT REFORM IMPLEMENTATION AND NEW CHALLENGES FOR SMALL 
                              BUSINESSES''

    On May 15, 2013, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for the purpose 
of providing oversight on the implementation of the America 
Invents Act (AIA) and its effects on small firms. The AIA 
signed into law on September 16, 2011, made significant changes 
to the procedures by which the United States awards patents. 
Given these changes, the hearing addressed how the procedural 
changes affect the ability of small businesses to obtain 
patents. In addition, the hearing examined how patent assertion 
entities (PAEs), also called ``patent trolls,'' affect small 
firms and whether additional changes are needed in patent 
procedures to ameliorate the adverse consequences of PAEs on 
small firms.
    The witnesses were: Dennis D. Crouch, Esq., Associate 
Professor of Law, University of Missouri School of Law, 
Columbia, MO; Mr. Jeff Grainger, Managing Partner, The Foundry 
LLC, Menlo Park, CA; John R. Thomas, Esq., Professor of Law, 
Georgetown University Law Center, Washington, DC; and Mr. Mark 
Grady, Founder and President, INdigital Telecom, Fort Wayne, 
IN.
    The witnesses provided testimony on the impact of patent 
reform on innovative small firms as well as obstacles still 
present under the patent system; such as frivolous lawsuits by 
PAEs, which hinder a small firm's ability to develop innovation 
and stimulate economic growth. Prof. Crouch noted that changes 
in the AIA create a more robust patent system, but indicated 
that a rise in patent litigation may jeopardize small firms, 
who often settle rather than fight to ensure the claim has 
merit. Mr. Grainger testified on the need for small inventors 
to have ``a strong patent system that provides a fast and 
efficient examination process, discourages frivolous patent 
challenges, and imposes serious sanctions on infringers.'' 
Prof. Thomas discussed the benefits of the AIA for patent 
holders particularly in establishing more certainty, but noted 
that patent trolling remains significant and systematic issue. 
Mr. Grady testified that overall the AIA brought about a 
stronger patent system, but indicated that as PAEs remained a 
substantial challenge and more should be done to prevent them 
from unfairly targeting small inventors.

 HEARING: ``REDUCING DUPLICATION AND PROMOTING EFFICIENCY AT THE SBA: 
                     THE INSPECTOR GENERAL'S VIEW''

    On June 5, 2013, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for the purpose 
of hearing from the Small Business Administration's (SBA) 
Inspector General on the audits, management assessments, and 
investigations of improper activity by SBA personnel. The 
hearing provided members of the Committee with the opportunity 
to uncover potential changes to SBA operations that would 
improve efficiency of agency operations without undermining the 
ability to serve small businesses.
    The only witness at the hearing was the Hon. Peggy E. 
Gustafson, Inspector General, SBA, Washington, DC. The 
Inspector General testified that her office issued 22 reports 
containing 126 recommendations for improving SBA operations. 
She also testified that investigators in her office led to 59 
indictments and 59 convictions of those people who defrauded 
the government.

    HEARING: ``MADE IN THE USA: STORIES OF AMERICAN MANUFACTURERS''

    On June 19, 2013, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for the purpose 
of highlighting the accomplishments of and challenges facing 
small American manufacturers. The hearing, which took place 
during the Small Business Administration's National Small 
Business Week, offered members of the committee the opportunity 
to invite owners and operators of successful small 
manufacturing businesses that could share their stories.
    The first panel of witnesses was made up of: Mr. Rick 
Scwhind, Jr., V.P. and General Manager, Continental Tool, 
Smithville, MO; Mr. Terry Iverson, President and CEO, Iverson & 
Company, Des Plaines, IL; and Mr. Bruce Broxterman, President, 
Richards Industries, Cincinnati, OH. The second panel was: Mr. 
Michael Mittler, President, Mittler Brothers Machine & Tool, 
Wright City, MO; Ms. Jill Johnson, Founder and CEO, Institute 
for Entrepreneurial Leadership, Newark, NJ; Mr. Anthony Wanger, 
President, IO, Phoenix, AZ; and Mr. Jim Allen, Director, 
Shapeways, Inc., Long Island City, NY. Panel number three 
consisted of: Ms. Barbara Schindler, President, Golden Artist 
Colors, Inc., New Berlin, NY; Ms. Shelly Gibbons, Vice 
President, Quik Mart, Tucson, AZ; Mr. Mike Bergmeier, 
President, Shield Agricultural Equipment, Hutchinson, KS; and 
Mr. Aaron Bagshaw, President, WH Bagshaw Co., Inc., Nashua, NH. 
Witnesses on the last panel were: Mr. Brad Braddon, President, 
Commodore, Bloomfield, NY; Ms. Shirley Brostmeyer, CEO, Florida 
Turbine Technologies, Jupiter, FL; and Mr. Richard Najarian, 
President, Precision Global Systems, Troy, MI.
    Mr. Schwind, Mr. Broxterman, and Mr. Bergmier all testified 
about the potential adverse consequences that the President's 
health care law will have on their ability to expand 
operations. Mr. Iverson, Mr. Allen, and Mr. Bagshaw opined that 
finding qualified workers, especially in manufacturing and with 
appropriate STEM educations, is problematic for small 
businesses. Mr. Mittler, Ms. Schindler, Mr. Braddon, Ms. 
Gibbons and Mr. Najarian told the Committee that regulatory 
uncertainty, in general (and not just the implementation of the 
healthcare law), remains an obstacle to further expansion of 
their businesses. Ms. Johnson and Ms. Brostmeyer opined that 
programs designed to help small businesses (in terms of 
entrepreneurial education and government contracting) are 
providing small businesses with the assistance needed. Finally, 
Mr. Wanger noted that small businesses, by providing quality 
service will always have customers.

 HEARING: ``READY TO EXPORT: SMALL BUSINESS POLICY RECOMMENDATIONS FOR 
                                 USTR''

    On June 26, 2013 the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled, ``Ready to Export: Small Business Policy 
Recommendations for USTR.'' The Committee received testimony 
regarding international trade negotiations conducted by the 
Office of the United States Trade Representative and their 
effect on small firms.
    The witnesses were: Mrs. Pam Johnson, Family Farmer, 
President, National Corn Growers Association, Floyd, IA, 
testifying on behalf of the National Corn Growers Association; 
Mr. Brooke Fishback, International Sales Manager, Health 
Enterprises, Inc., North Attleboro, MA; Gary Hufbauer, Esq., 
Ph.D., Reginald Jones Senior Fellow, Peter G. Peterson 
Institute for International Economics, Washington, DC; and Mrs. 
Mariana Huberman, Store Owner, UPS Store, Washington, DC.
    Mrs. Johnson provided an overview of the importance and 
growing demand of United States agricultural exports, including 
a possible all-time high in export value for the current year. 
She also stressed the importance of having strong science-based 
testing on food products in free trade agreements (FTA) to 
ensure fair market access to foreign markets.
    Mr. Fishback stated the potential benefits of new trade 
agreements, including new sales and increased trade 
facilitation as a result of harmonizing regulations. He noted 
that new market access from the Trans-Pacific Partnership could 
yield sales in the hundred thousand for his small firm.
    Dr. Hufbauer opined on the positive benefits of 
international trade agreements for both direct exporters and 
indirect exporters. He also stated that the FTAs would make a 
significant positive impact on small business exporters by 
lowering costs, reducing red tape and simplifying international 
payments.
    Mrs. Huberman explained the impact of trade policy on 
service exporters. She stated United States service exports had 
a $150 billion trade surplus in 2012 and are a growing export 
sector. She stressed the importance of the FTAs and the World 
Trade Organization negotiations on Trade in Services in 
leveling the playing field for small service companies.

 HEARING: ``BEYOND THE BELTWAY: SUCCESSFUL STATE STRATEGIES FOR SMALL 
                           BUSINESS GROWTH''

    On July 10, 2013, the Committee on Small Business met in 
room 2360 of the Rayburn House Office Building for the purpose 
of receiving testimony from state officials on innovative ways 
to entice and keep business in their states through, among 
other things, smart regulation, lower tax regimes, low cost of 
business formation, and access to capital. The hearing, titled 
``Beyond the Beltway: Successful State Strategies for Small 
Business Growth'' examined why certain states are successful at 
attracting and retaining businesses, particularly small 
businesses, in their state.
    The witnesses for the hearing were: Mr. Pat Costello, 
Commissioner, South Dakota Office of Economic Development, 
Pierre, SD; the Hon. Nick Jordan, Secretary, Kansas Department 
of Revenue, Topeka, KS; Mr. Aaron Demerson, Executive Director, 
Texas Office of Economic Development and Tourism, Austin, TX; 
and, the Hon. Jim Cheng, Secretary of Commerce and Trade, 
Commonwealth of Virginia, Richmond, VA.
    Mr. Costello began the hearing by testifying that South 
Dakota's tax climate is unmatched by any other state in the 
nation as they have no corporate income tax, no personal income 
tax, no business inventory tax, no personal property tax and no 
inheritance tax. Additionally, he continued, South Dakota 
continually balanced their budget and maintained a surplus. 
Secretary Jordan stated that starting this year, Kansas began 
exempting non-wage business income from state income tax. This 
is the type of income earned by the majority of small Kansas 
businesses, which typically are structured as LLCs, sole 
proprietorships, or S-corps, commonly referred to as `flow-
throughs' since the taxes for this business income are filed on 
individual income tax returns rather than corporate tax 
returns. Mr. Demerson testified that over the last decade, 
Texas leaders have made principled, thoughtful decisions by not 
over-taxing, over-regulating or over-litigating their citizens. 
In Texas, he specified, they have an obligation, 
responsibility, and goal to the taxpayers to take the necessary 
steps to make government more efficient and streamlined while 
reducing spending without raising taxes. Secretary Cheng 
concluded the testimony by stating Virginia recently launched a 
regulatory reform initiative to reduce the number of burdensome 
regulations placed on small businesses. Since September 2012, 
562 sections in the Virginia Administrative Code have been 
identified and 157 sections have already been repealed. He 
testified that it is not what the federal or state government 
can do for small business that matters, but how the government 
can ensure it does not erect unnecessary barriers to job 
creations.

HEARING: ``THE INTERNAL REVENUE SERVICE AND SMALL BUSINESSES: ENSURING 
                            FAIR TREATMENT''

    On July 17, 2013, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building, Washington, DC, 
for the purpose of receiving testimony on how the Internal 
Revenue Service (IRS or Service) targets the tax returns of 
small business owners for additional scrutiny and audit. 
Following the recent report by the Treasury Inspector General 
for Tax Administration (TIGTA) that the IRS improperly targeted 
certain conservative organizations that applied for non-profit 
status, Chairman Graves sent a letter on May 31, 2013 to Acting 
IRS Commissioner Daniel Werfel expressing concern about the 
criteria used in the review process. Because the Committee 
wants to ensure that all taxpayers are treated fairly, it held 
the hearing to inquire about the screening process IRS uses to 
review the tax returns of small business owners, how the audit 
process for small businesses works, and what yield or return 
the IRS receives as a result. The only witness was Mr. Daniel 
Werfel, Acting Commissioner of the Internal Revenue Service, 
Washington, DC.
    In his testimony, Mr. Werfel said there was no current 
evidence of the use of inappropriate screeners or other types 
of criteria in IRS operations beyond those discussed in the 
TIGTA report. However, he also said the IRS recognizes there is 
public concern over the criteria used to review those 
applications, a concern which the Chairman expressed in his 
letter. Mr. Werfel said he realizes the IRS needs to do more to 
evaluate its screening criteria and procedures, so it is 
establishing a review process by which screening criteria and 
procedures across the IRS will be periodically assessed to 
safeguard against any risks of inappropriate criteria. 
Furthermore, Mr. Werfel said the IRS will continue to review 
the full range of IRS operations, processes and practices to 
better focus on its mission. In response to questions, Mr. 
Werfel said he would provide the Committee with a list of 
government agencies and third parties with which the IRS shares 
taxpayer data. Mr. Werfel designated a senior staff member at 
the Service that the Committee staff may stay in contact with 
on these issues.

      HEARING: ``REDUCING RED TAPE: THE NEW OIRA ADMINISTRATOR'S 
                             PERSPECTIVE''

    On July 24, 2013, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for the purpose 
of receiving testimony on the results of federal agencies' 
efforts to review their existing regulations as required by 
Executive Orders 13,563 and 13,610. The hearing examined 
whether agencies' retrospective review efforts are resulting in 
meaningful burden reductions for small businesses.
    The only witness for the hearing was the Hon. Howard 
Shelanski, the Administrator of the Office of Information and 
Regulatory Affairs, Office of Management and Budget, 
Washington, DC.
    Administrator Shelanski, the official charged with 
overseeing agencies' retrospective review initiatives, began 
his testimony by discussing the importance of reviewing 
existing regulations to streamline, modify, or repeal 
regulations and reduce unnecessary burdens and costs. The 
Administrator then discussed several final rules that have 
removed unnecessary recordkeeping and reporting requirements 
and eliminated outdated regulations. The Administrator noted 
that the Department of Transportation retrospective review plan 
identified a number of initiatives that would save small 
businesses money, including an initiative that would remove 
duplicative requirements for air carrier drug and alcohol 
testing programs. The Administrator closed by stating that he 
intends to look for ways to institutionalize retrospective 
review of regulations and ensure that it produces significant 
cost savings for small businesses.

 HEARING: ``MISSOURI RIVER MANAGEMENT: DOES IT MEET THE NEEDS OF SMALL 
                             BUSINESSES?''

    On August 21, 2013, the Committee on Small Business met in 
Room 301 of St. Joseph City Hall, 1100 Frederick Avenue, St. 
Joseph, Missouri, for the purpose of receiving testimony on: 
``Missouri River Management: Does It Meet the Needs of Small 
Businesses?'' The purpose of the hearing was to learn the views 
of small businesses and rural communities pertaining to the 
United States Army Corps of Engineers (Corps) management of the 
Missouri River System. The hearing also examined various 
federal statutes authorizing and influencing Corps management 
activities.
    The witnesses were: Ms. Kathy Kunkel, Clerk, Holt County, 
Oregon, MO; Mr. Lanny Frakes, Vice President, Missouri Levee 
and Drainage District Ass'n, Rushville, MO; Ms. Jody Farhat, 
Chief, Missouri River Management Division, Northwestern 
Division, United States Army Corps of Engineers, Omaha, NE; Mr. 
Jason Gregory, Owner, Gregory Farm, Hemple, MO, testifying on 
behalf of the Missouri Farm Bureau Federation; and Joel Euler, 
Esq., Troy, KS, testifying on behalf of the South Side Levee 
District.
    Ms. Kunkle testified that in her opinion, the Corps does 
not do enough to emphasize flood prevention, navigation, and 
recreational uses of the Missouri River; instead the Corps 
focuses on fish and wildlife preservation in response to 
directives of the United States Fish and Wildlife Service. Mr. 
Frakes, Mr. Gregory, and Mr. Euler agreed with this assessment. 
Ms. Farhat explained the management of the Missouri River basin 
and the procedures used to balance the competing interests that 
utilize the river.

  HEARING: ``THE CHALLENGE OF RETIREMENT SAVINGS FOR SMALL EMPLOYERS''

    On October 2, 2013, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building, Washington, DC, 
for the purpose of receiving testimony on the challenges small 
employers face in offering retirement plans to their employees. 
The witnesses were: Ms. Catherine Collinson, President, 
Transamerica Center for Retirement Studies, Los Angeles, CA; 
Paula A. Calimafde, Esq., PaleyRothman, Bethesda, MD, 
testifying on behalf of the Small Business Council of America 
and the Small Business Legislative Council; C. Roy Messick, 
CPA, QPA, TPP Retirement Plan Specialists, LLC, Overland Park, 
KS; and Mr. Ray Rucksdashel, Chief Financial Officer, Quest-Tec 
Solutions, Inc., Houston, TX.
    Ms. Collinson presented the results of Transamerica's 14th 
annual retirement benefits survey. It suggested that recent 
trends toward part-time employment, due in part to the health 
care law's definition of full-time as averaging 30 hours per 
week, could signal a decline in retirement plan coverage. At 
small companies, only 36% of part-time workers are offered 
plans, compared to 68% of full-time workers.
    Ms. Calimafde encouraged the Committee members to increase 
the tax incentives for retirement savings, noting a strong 
correlation between tax benefits and employers offering 
retirement plans. She also said research shows that employees 
are 14 times more likely to save for retirement if offered a 
workplace plan.
    Mr. Messick testified that employers offer 401(k) plans 
because they are a significant employee recruiting tool, and 
contribution limits are higher than for an IRA. On the other 
hand, retirement plans are complicated to administer, and so 
they are expensive to offer. For some small firm owners, the 
tax savings are not sufficient to outweigh the cost.
    Mr. Rucksdashel said his firm's 401(k) plan has been 
critical to attracting and retaining skilled workers in the 
competitive oil and gas industry and in a competitive labor 
market like Houston. He said that the company's plan is costly 
to offer, but it costs less than recruiting, hiring and 
training new employees.

                   HEARING: ``THE STARTUP MOVEMENT''

    On November 20, 2013, the Committee on Small Business met 
in Room 2360 of the Rayburn House Office Building to examine 
the importance of startups to the economy and receive testimony 
on whether distinctions between startups and small businesses 
necessitate different policies.
    The witnesses were: Mr. Adam Arredondo, Co-Leader, Kansas 
City Startup Village, Kansas City, KS; Ms. Allison Lami Sawyer, 
CEO and Founder, Rebellion Photonics, Houston, TX; Mr. Jeff 
Reid, Founding Director, Georgetown Entrepreneurship 
Initiative, Georgetown University, Washington, DC; and Mr. 
Anton Gelman, CEO, Cont3nt, Dulles, VA.
    The witnesses provided testimony highlighting startups as a 
distinguishable subset of small firms and detailing 
characteristics that makes startups successful as well as 
explaining the unique challenges they face. Mr. Arredondo 
testified that startups want rapid growth and ``although a 
startup can be categorized as a small business, very few small 
businesses can be categorized as a startup.'' Mrs. Lami Sawyer 
noted that while the SBIR program is beneficial, broadly the 
federal procurement process works too slowly and does not lend 
itself to the fast growing pace of burgeoning startups, which 
disadvantages both the government and the startups. Mr. Reid 
opined that entrepreneurship can be taught and that focusing on 
entrepreneurial spirit is important in addition to reducing 
uncertainty and regulations. Mr. Gelman discussed the 
principles of startups such as scalable growth, which lead to 
rapid job creation, a characteristic not found in traditional 
small firms.

HEARING: ``THE HEALTH CARE LAW: THE EFFECT OF THE BUSINESS AGGREGATION 
                       RULES ON SMALL EMPLOYERS''

    On December 4, 2013, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building, Washington, DC, 
for the purpose of receiving testimony on the health care law's 
use of the business aggregation rules and their effect on small 
employers. Under the health care law, to determine whether an 
employer is subject to the employer mandate, he or she must 
calculate if at least 50 full-time equivalents have been 
employed during the preceding year. To do this, the business 
owner currently must determine the businesses that comprise 
``the employer'' using the Internal Revenue Code's business 
aggregation rules.
    The witnesses were: Deborah Walker, CPA, National Director, 
Compensation & Benefits, Cherry Baekert LLP, Washington, DC; 
Ms. Sibyl Bogardus, Chief Compliance Officer, Western Region 
Employee Benefits, Hub International Insurance Services Inc., 
Salt Lake City, UT; Mr. Ellis Winstanley, Chief Executive 
Officer, Tradelogic Corporation, Austin, TX, testifying on 
behalf of the National Restaurant Ass'n; and Donna Baker, CPA, 
Donna Baker & Associates, Adrian, MI.
    Ms. Walker testified that to do this, one needs detailed 
information on business ownership and the business 
relationships between the entities. Many small businesses are 
not aware of the business aggregation rules or have the 
technical knowledge needed to decipher them. The witnesses said 
entrepreneurs will require the advice of a tax specialist who 
fully understands the business aggregation rules.
    Ms. Bogardus testified that most small businesses are not 
aware of the rules. Although the rules do apply to other 
situations, such a business voluntarily offering a retirement 
plan, the application in the health care law is mandatory. She 
said business owners are refraining from hiring so they will 
not be close to the 50-employee employer mandate threshold. She 
also said some business owners may avoid investing in other 
businesses, depriving them of scarce capital. Young people are 
not enrolling in coverage, even with lower premiums, because 
they would rather have the money.
    Mr. Winstanley, who owns several small businesses in 
different industries with his brother and others with his 
parents, said his businesses are likely to be aggregated 
together, requiring him to offer health insurance to all of his 
full-time employees. He believes the health care law is 
draining resources that would otherwise be used to grow the 
companies.
    Ms. Baker, who owns a small accounting firm and a small tax 
and payroll business, said even she as a Certified Public 
Accountant did not possess the specialized knowledge of the 
business aggregation rules, and did not think the rules would 
apply to her situation. Her husband and his brother operate a 
dairy farm which, because the land is co-owned by Ms. Baker and 
Mr. Baker's sister-in-law, will be aggregated with Ms. Baker's 
company under the health care law. Ms. Baker also stated that 
her insurance plan has been cancelled, and premiums for her new 
plan rose by 40-44% and has fewer benefits.

HEARING: ``THE SMALL BUSINESS HEALTH OPTIONS PROGRAM: IS IT WORKING FOR 
                          SMALL BUSINESSES?''

    On December 11, 2013, the Committee on Small Business met 
in Room 2360 of the Rayburn House Office Building for the 
purpose of receiving testimony on ``The Small Business Health 
Options Program: Is It Working for Small Businesses?'' The 
purpose of the hearing was to examine the implementation of the 
Small Business Health Insurance Program (SHOP) health insurance 
exchanges authorized in the Patient Protection and Affordable 
Care Act.
    The witness was: Gary Cohen, Esq., Deputy Administrator, 
Centers for Medicare and Medicaid Services, Department of 
Health and Human Services, Washington, DC.
    Chairman Graves and Committee members questioned Deputy 
Administrator Cohen regarding delays in the implementation of 
the SHOP exchanges. Chairman Graves noted that the Centers for 
Medicare and Medicaid Services was aware of significant 
technological issues that could preclude online enrollment in 
health insurance through the Federally-Facilitated SHOP 
exchange, yet the Administration repeatedly assured small 
businesses and Congress that these problems would be fixed by 
early November 2013, and then by mid-November 2013 before 
announcing on November 27, 2013 that online enrollment through 
the Federally-Facilitated SHOP exchanges would be delayed until 
November 2014.
    Committee members also requested Deputy Administrator Cohen 
provide the Committee with information on the number of small 
businesses that have obtained health insurance coverage through 
SHOP exchanges and how many small businesses will receive tax 
credits for the purchase of health insurance coverage as of the 
date of the hearing. Deputy Administrator Cohen stated he did 
not have this information readily available. Deputy 
Administrator Cohen promised to provide data on the enrollees 
through the SHOP exchanges to the Committee.
                                 PART B

                         Subcommittee Hearings

  HEARING: ``SMALL BUSINESS TRADE AGENDA: OPPORTUNITIES IN THE 113TH 
                               CONGRESS''

    On February 28, 2013, the Subcommittee on Agriculture, 
Energy and Trade of the Committee on Small Business met for a 
hearing titled, ``Small Business Trade Agenda: Opportunities in 
the 113th Congress.'' The hearing provided an opportunity to 
examine the obstacles and barriers that deter small businesses 
from participating in international trade. In addition, the 
hearing highlighted possible trade policy initiatives for the 
113th Congress.
    The witnesses were: Mr. Daniel Ogden, Chairman of District 
Export Council (DEC) and Attorney at Law & International Trade 
Consultant, Carrolton, TX; Ms. Jenny Fulton, CEO of Miss 
Jenny's Pickles, Kernersville, NC, testifying on behalf of the 
U.S. Chamber of Commerce; Mr. Michael Myhre, Associate State 
Director, Florida Small Business Development Center (SBDC) 
Network, Tallahassee, FL, testifying on behalf of the 
Association of Small Business Development Centers; and Mr. 
Raymond Arth, President and CEO of Phoenix Products, Inc., Avon 
Lake, OH, testifying on behalf of the National Small Business 
Association and Small Business Exporters Association.
    At the hearing, a panel of private witnesses discussed key 
policy issues affecting their ability to compete globally. Mr. 
Ogden provided comprehensive testimony on a variety of trade 
barriers faced by small firms, such as export controls, 
international standards, and non-tariff barriers. He also 
provided recommendations on how to improve the coordination of 
the state and federal trade promotion agencies. Ms. Fulton 
voiced her concerns over the confusion of where to start in the 
export process and complications navigating multiple agencies. 
She advocated for the federal export promotion programs to be 
more effective through better coordination, elimination of 
duplicative activities, and better allocation of resources. Mr. 
Myhre perorated the services and resources provided by the SBDC 
to assist domestic exporters, including market analysis and 
consultation. Mr. Arth outlined the top barriers for his 
manufacturing business, including identifying foreign buyers, 
limited access to information and resources regarding foreign 
regulations, and access to export capital. He also emphasized 
that state and federal agencies play an important role in 
helping small businesses export.

    HEARING: ``REGULATING THE REGULATORS--REDUCING BURDENS ON SMALL 
                               BUSINESS''

    On March 14, 2013, the Subcommittee on Investigations, 
Oversight and Regulations of the Committee on Small Business 
met in room 2360 of the Rayburn House Office Building for the 
purpose of receiving testimony to examine agency compliance 
with the Regulatory Flexibility Act (RFA).
    The witness for the first panel was: the Hon. Winslow 
Sargeant, Ph.D., Chief Counsel for Advocacy, Office of the 
Chief Counsel for Advocacy, United State Small Business 
Administration, Washington, DC. The witnesses on the second 
panel were: Marc Freedman, Esq., Executive Director, United 
States Chamber of Commerce, Washington, DC; Mr. Carl Harris, 
Vice President and General Manager, Carl Harris Co., Inc., 
Wichita, KS, testifying on behalf of the National Association 
of Home Builders; and Rena Steinzor, Esq., Professor of Law, 
Francis King Carey School of Law, University of Maryland, 
Baltimore, MD.
    At the hearing, Dr. Sargeant testified that agency 
compliance with the RFA continues to improve. However, he also 
noted that he has submitted 90 comment letters to federal 
agencies outlining small business concerns with regulatory 
proposals since being appointed Chief Counsel in August 2010.
    Mr. Freedman testified that the Occupational Safety and 
Health Administration (OSHA) and other Department of Labor 
agencies give short shrift to the RFA's analytical and 
procedural requirements. He noted that OSHA and other 
Department of Labor agencies do not always conduct affirmative 
outreach, as required under Section 609 of the RFA, before 
promulgating regulations and therefore do not fully understand 
the costs or impacts of their regulatory proposals on small 
business.
    In his testimony, Mr. Harris, the co-founder of a small 
specialty construction company, testified that in his 
experience agencies too often treat the RFA and its Small 
Business Advocacy Review Panel process as merely a ``check-the-
box'' exercise and artfully avoid compliance by other means. He 
provided examples of the failure of agencies to: adequately 
analyze economic impacts; engage with small businesses in a 
meaningful way; and comply with the Small Business Advocacy 
Review panel requirements.
    Ms. Steinzor's testimony contended that the Office of 
Advocacy mission should be to represent small businesses in 
proceedings before federal agencies. According to Professor 
Steinzor, that mission has been abdicated because the Office of 
Advocacy uses the definition of small business for various 
industrial classifications adopted by the Small Business 
Administration.

 HEARING: ``CONSISTENTLY INCONSISTENT: CHALLENGES FOR SERVICE-DISABLED 
                    VETERAN-OWNED SMALL BUSINESSES''

    On March 19, 2013, the Subcommittee on Contracting and 
Workforce of the Committee on Small Business and the 
Subcommittee on Oversight and Investigations of the Committee 
on Veterans' Affairs met in Room 2360 of the Rayburn House 
Office Building to receive testimony examining challenges 
facing service-disabled veteran-owned small businesses 
(SDVOSBs) seeking federal contracts using both the Small 
Business Administration (SBA) and the Department of Veterans 
Affairs (VA) contracting programs. Specifically, the 
Subcommittees focused on the statutory, regulatory and 
interpretive difference in the two programs and how these 
differences affect veterans. Further, the hearing examined how 
effectively the programs operate and explored ways to improve 
the efficiencies of the programs.
    The witnesses on the first panel were: Mr. Joseph Wynn, 
VET-Force Treasurer, Vietnam Veterans of America, Washington, 
DC; Mr. Davy Leghorn, Assistant Director, National Economic 
Division, The American Legion, Washington DC; Mr. Marc 
Goldschmitt, PMP, CEO, Goldschmitt and Associates, LLC, Reston, 
VA; and Jonathan T. Williams, Esq., Partner, PilieroMazza, 
PLLC, Washington, DC. The witnesses on the second panel were: 
Mr. William Shear, Director, Financial Markets and Community 
Investment, United States Government Accountability Office 
(GAO), Washington, DC; Mr. A. John Shoraka, Associate 
Administrator, Office of Government Contracting and Business 
Development, United States Small Business Administration (SBA), 
Washington, DC; and Mr. Tom Leney, Executive Director, Veterans 
and Small Business Programs, Department of Veterans Affairs 
(DVA), Washington, DC.
    The witnesses provided testimony on the various challenges 
facing SDVOSBs seeking to utilize federal contracting programs 
and how discrepancies among SBA and DVA's programs exacerbate 
those challenges. Mr. Wynn testified that 98 percent of DVA 
denials for SDVOSB status were due to challenges in understand 
DVA's regulations related to ownership and control, rather than 
fraud or international misrepresentation. Mr. Leghorn stated 
that given SBA's expertise, increasing SBA's role in the 
appellate process would ensure more consistency between agency 
decisions and expedite the process. Mr. Goldschmitt highlighted 
that DVA's current verification program denies legitimate small 
firms an opportunity to compete by forcing SDVOSBs to adhere to 
extreme interpretations of a regulation. Mr. Williams testified 
that although well-intentioned the lack of consistency in the 
verification process at DVA and the differences between DVA and 
SBA's regulatory interpretations cause confusion and 
inefficiency for SDVOSBs. Mr. Shear indicated that, based on 
GAO's report, DVA would be unequipped to handle implementing a 
government-wide certification veteran plan. Mr. Shoraka noted 
although the regulations between SBA and DVA are similar, SBA 
conducted reviews on a case-by-case basis rather than adopting 
a bright line test. Mr. Leney testified that DVA was aware of 
the challenges within its verification process as it seeks to 
prevent fraud and ensure only legitimate SDVOSBs receive 
certification, but that DVA was working with SBA to resolve 
differences.

  HEARING: ``PROTECTING SMALL BUSINESSES AGAINST EMERGING AND COMPLEX 
                            CYBER-ATTACKS''

    On March 21, 2013, the Subcommittee on Health and 
Technology of the Committee on Small Business met for a hearing 
titled, ``Protecting Small Businesses Against Emerging and 
Complex Cyber-Attacks.'' The hearing examined the increased 
volume and complexity of cyber-attacks as it affects emerging 
technologies utilized by small businesses, such as cloud 
computing and mobile technology.
    Information technology is a key component for how small 
businesses operate and compete in the 21st Century. However, as 
new technologies are deployed, additional opportunities for 
cyber-criminals exist to attack firms and steal their valuable 
information. According to a recent study, nearly 20 percent of 
all cyber-attacks were directed to small businesses with less 
than 250 employees. The statistics also show that nearly 60 
percent of small businesses will close within six months after 
a cyber-attack.
    Witnesses on the only panel were: William H. Weber, Esq. 
Senior VP & General Counsel, Cbeyond, Atlanta, GA, testifying 
on behalf of Comptel; Justin Freeman, Esq., Corporate Counsel, 
Rackspace, San Antonio, TX, testifying on behalf of Application 
Developers Alliance; Mr. Dan Shapero, Founder, ClikCloud, 
Laguna Beach, CA, testifying on behalf of CompTia; and Phyllis 
Schneck, Ph.D., VP & Chief Technology Officer, Global Public 
Sector, McAfee, Inc., Reston, VA.
    At the hearing, a panel of private sector witnesses 
discussed the best practices for small business in utilizing 
new technology for both increased productivity and better 
protection against security threats. They provided detailed 
analysis of the growing trends and complexity of cyber-attacks. 
Mr. Weber provided an overview of the benefits (both in lower 
cost and enhanced security) of small businesses in utilizing 
cloud computing. Mr. Freeman explained the growth in mobile 
applications and the role of developing and securing 
applications through the cloud. Mr. Shapero suggested best 
practices that small firms can utilize in adopting new 
technology, while also proffering policy recommendations 
concerning issues such as data breaches and workforce 
education. Finally, Dr. Schneck outlined the current cyber-
threats faced by small businesses and offered some best 
practices available to the public and private sector to protect 
against such threats.

              HEARING: ``JOBS ACT IMPLEMENTATION UPDATE''

    On April 11, 2013, the Subcommittee on Investigations, 
Oversight and Regulations of the Committee on Small Business 
met in Room 2360 of the Rayburn House Office Building to 
receive testimony on the Securities and Exchange Commission's 
(SEC) efforts to implement the Jumpstart Our Business Startups 
Act of 2012 (JOBS Act). The JOBS Act is a bipartisan effort to 
reduce regulatory burdens associated with small businesses 
obtaining equity investment from the public.
    The witness on the first panel was: Mr. Lona Nallengara, 
Acting Director, Division of Corporation Finance, SEC, 
Washington, DC. The witnesses on the second panel were: Ms. 
Jean Peters, Managing Director, Golden Seeds, Midlothian, VA, 
testifying on behalf of the Angel Capital Association; Mr. 
William Klehm, CEO, Fallbrook Technologies, San Diego, CA, 
testifying on behalf of CONNECT; Mr. Kevin Rustagi, CEO, 
Evolution of Noise and Co-founder Ministry of Supply, Austin, 
TX, testifying on behalf of the Small Business Entrepreneurship 
Council; and James Angel, Ph.D., Professor of Finance, 
McDonough School of Business, Georgetown University, 
Washington, DC.
    Mr. Nallengara provided the Subcommittee with an update on 
the SEC's progress to date on implementing the JOBS Act. He 
admitted that the SEC has missed the deadlines for rulemaking 
action required in the law and could not provide a date when 
the final rules would be issued.
    The witnesses on the second panel provided testimony on how 
the JOBS Act, once implemented, will improve both access 
capital and investment opportunities in small business. Ms. 
Peters testified that the SEC's proposed rule on general 
solicitation and advertising has the potential to discourage 
angel investment in small firms because the SEC has not 
clarified what ``reasonable steps'' are to verify that 
investors are accredited. Mr. Klehm stated that the ability to 
access capital is the most significant challenge he faces and 
the JOBS Act provision increasing the amount of capital that 
can be raised under Regulation A to $50 million from $5 million 
will be very helpful once the SEC Acts to implement the law. 
Mr. Rustagi testified that equity-based crowdfunding has the 
potential to be very helpful to startup businesses who cannot 
raise funds from traditional sources and that the SEC should 
issue rules as quickly as possible. Finally, Professor Angel 
testified that the SEC has been slow to implement the JOBS Act 
and that the Commission has shown a pattern of antipathy 
towards the idea of crowdfunding and is in great danger of 
killing the idea through regulatory delay and overregulation.

           HEARING: ``INNOVATION AS A CATALYST FOR NEW JOBS''

    On April 18, 2013, the Subcommittee on Economic Growth, Tax 
and Capital Access of the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building to receive 
testimony on how to bolster America's competitiveness and 
propel economic growth through innovation and entrepreneurship. 
As the United States continues to struggle with high 
unemployment and a sluggish economy, this hearing examined how 
innovation leads to entrepreneurship, what conditions are 
necessary to grow communities that are innovation-friendly 
which in turn will create jobs, and what some of the most 
innovative localities are doing to attract high-tech companies, 
thereby allowing entrepreneurship to thrive in those 
communities.
    The witnesses were: Mr. Jack Roach, Director, Southeastern 
Institute of Manufacturing and Technology, Florence, SC; Ms. 
Julie Lenzer Kirk, Co-Chair, Startup Maryland, Columbia, MD; 
Mr. Steve Johnson, President and CEO, CreatiVasc, Greenville, 
SC; and Mr. Michael D. McGeary, Co-Founder, Engine Advocacy, 
San Francisco, CA.
    The witnesses provided testimony on the role that 
innovative small businesses play in creating jobs and how 
Washington can spur more entrepreneurship. Mr. Roach testified 
that historically innovation has created the majority of 
American jobs, but for that to continue entrepreneurs need 
access to emerging technologies, ability to connect with 
customers, access to capital, and a skilled workforce. Ms. Kirk 
underscored the importance utilizing local communities' 
strengths to spur innovation by connecting entrepreneurs to one 
another and preexisting resources. Mr. Johnson highlighted the 
importance of innovation as a means to competitiveness in the 
global market and the need for capital to allow innovations to 
transition into the marketplace. Mr. McGeary testified on the 
importance of high-tech startups to economic growth and job 
creation because for each job created in the high-tech sector 
4.3 jobs are created in other sectors.

HEARING: ``HELP WANTED: THE SMALL BUSINESS STEM WORKFORCE SHORTAGE AND 
                          IMMIGRATION REFORM''

    On April 25, 2013, the Subcommittee on Contracting and 
Workforce of the Committee on Small Business met in Room 2360 
of the Rayburn House Office Building for the purpose of 
receiving testimony on ``Help Wanted: The Small Business STEM 
Workforce Shortage and Immigration Reform.'' The purpose of the 
hearing was to examine how the science, technology, engineering 
and mathematics (STEM) workforce shortage is affecting the 
current and future economic health and viability of small 
businesses and to discuss whether changes to existing 
employment-based immigration laws for temporary and permanent 
legal resident aliens are necessary to help small businesses 
meet their STEM workforce needs.
    The witnesses were: John Tyler, Esq., General Counsel and 
Secretary, Ewing Marion Kauffman Foundation, Kansas City, MO; 
Mr. Nagappa Ravindra, President, Ravi Engineering and Land 
Surveying, Rochester, NY, testifying on behalf of the American 
Council of Engineering Companies; Mr. Ryan Costella, Director 
of Strategic Intiatives, Click Bond, Inc., Carson City, NV; and 
Mr. Morgan Reed, Executive Director, Association for 
Competitive Technology, Washington, DC.
    The witnesses testified that small firms face great 
difficulties in recruiting workers with appropriate educations 
and skills in STEM occupations. Mr. Reed perorated some of the 
STEM job openings in each member's district that have gone 
unfilled for many months. Mr. Tyler testified that American 
small businesses are not only in a global competition for 
market share, but for employee talent as well. Mr. Costella 
mentioned that his firm has great difficulty in finding 
employees with basic STEM skills necessary for entry level 
positions with this firm. Mr. Ravindra noted that it has become 
much more difficult and costly for potential immigrants with 
advanced STEM educations to seek permanent residency in the 
United States, despite employer demand for their skills.
    All of the witnesses agreed with Chairman Hanna's 
assessment that STEM-based industries and occupations are 
critically important to the future competitiveness of the 
United States economy, and they also agreed that not enough is 
being done at the elementary, secondary, postsecondary and 
vocational education levels to prepare students and workers for 
occupations in these new and emerging industries. In addition, 
the witnesses stated their common belief that expanding guest 
worker and immigrant visas for highly skilled STEM workers is 
important to the competitiveness of small businesses.

   HEARING: ``HEALTH CARE LAW: IMPLEMENTATION AND SMALL BUSINESSES''

    On May 9, 2013, the Subcommittee on Health and Technology 
of the Committee on Small Business met in Room 2360 of the 
Rayburn House Office Building for a hearing on ``The Health 
Care Law: Implementation and Small Businesses.'' The purpose of 
the hearing was to receive testimony on the impact of the 
Patient Protection and Affordable Care Act on small businesses.
    The witnesses were: Mr. William J. Dennis, Jr., Senior 
Research Fellow, National Federation of Independent Business 
(NFIB) Research Foundation, Washington, DC; Mr. Ryan P. Thorn, 
President, Ryan P. Thorn Insurance Planning, Inc., South 
Jordan, UT, representing the National Association of Health 
Underwriters; Paul N. Van de Water, Ph.D., Senior Fellow, 
Center for Budget and Policy Priorities, Washington, DC; and 
Mr. Dean Norton, President, New York Farm Bureau, Elba, NY.
    Mr. Dennis said a recent NFIB Foundation study found the 
insurance fee is likely to be passed on to consumers of fully-
funded health insurance--usually small business owners and 
their employees--in the form of increased premiums. He also 
cited the report's findings that the fee will cost 146,000 to 
262,000 private sector jobs by 2022, with 59% of the losses in 
the small business sector. This could amount to a reduction of 
U.S. real output of between $19 billion and $35 billion within 
the same period, he said.
    Mr. Thorn, a small business owner himself, sells and 
services small business group health insurance policies. He 
noted that when health insurance premiums go up, people buy 
less insurance coverage or simply forgo it altogether. When the 
cost of coverage goes up, he said, it impacts hiring. He also 
said employers often change full-time employees to part-time 
status, since most part-time employees are not offered health 
insurance.
    Mr. Norton, an agricultural economist whose family owns a 
dairy farm, discussed the burden that higher premiums will 
place on farmers. Because farmers operate on thin margins and 
are subject to volatile commodity prices, Mr. Norton said they 
are less able to absorb the cost of higher premiums. He 
predicted that if premiums continue to increase, more farmers 
will simply be unable to provide coverage for themselves and 
their employees.

HEARING: ``IF YOU BUILD IT: THE KEYSTONE XL PIPELINE AND SMALL BUSINESS 
                              JOB GROWTH''

    On May 16, 2013, the Subcommittee on Agriculture, Energy 
and Trade of the Committee on Small Business met in room 2360 
of the Rayburn House Office Building for the purpose of 
receiving testimony on the potential economic benefits to small 
businesses and rural communities where construction of the 
Keystone XL pipeline will take place. The hearing titled, ``If 
You Build It: The Keystone XL Pipeline and Small Business Job 
Growth,'' served as an opportunity to examine how the project 
could reduce the United States' reliance on higher-priced 
foreign oil and replace it with stable, secure supplies from 
both Canada and the United States; create high paying jobs; and 
inject billions of dollars into the United States economy.
    The witnesses for the hearing were: Mr. Brent Booker, 
Secretary-Treasurer, Building and Construction Trades 
Department, AFL-CIO, Washington, DC; Mr. Peter Bowe, President 
and CEO, Ellicott Dredges, Baltimore, MD, testifying on behalf 
of the National Association of Manufacturers; Mr. Mat Brainerd, 
President, Brainerd Chemical Company, Tulsa, OK, testifying on 
behalf of the National Association of Chemical Distributors; 
and Christopher R. Knittel, Ph.D., William Barton Rogers 
Professor of Energy Economics, Sloan School of Management, 
Massachusetts Institute of Technology, Cambridge, MA.
    Mr. Booker began the hearing by stating that America's 
building trades unions support the construction of the Keystone 
pipeline which will move oil from deposits in Canada to 
existing refineries in Texas, Oklahoma and the Midwest and are 
adamant in their belief that the economic, energy security, and 
national security benefits associated with the construction of 
this pipeline are too many and too significant to allow it to 
be derailed by a narrow and misguided political agenda being 
advanced by a small minority of ill-advised environmental 
groups. Mr. Bowe continued by testifying that one way or the 
other, Canadians will eventually solve their distribution 
problems, with or without United States governmental 
collaboration. To the extent this process is delayed, he 
continued, the producers will suffer economic loss, and their 
suppliers, like his company, will suffer as well, including 
diminished employment. Mr. Brainerd stated that his industry 
would benefit from building the pipeline in three distinct 
ways. First, like many industries, chemical distribution 
benefits from economic growth generally. Second, building the 
pipeline would reduce costs for aromatic and aliphatic 
chemicals, diesel and rail tank cars. Third, it would benefit 
the economics of hydraulic fracturing, which is an important 
market that many in his industry serve. Dr. Knittel concluded 
the testimony by stating that when the economy is below full 
employment, as it is today, short-term increases in employment 
are likely to have longstanding effects. He continued that this 
is the argument for why economic stimulus should be used by 
governments in times of recession; when the economy is below 
full employment the long-term benefits of deficit spending 
outweigh the cost of financing this debt. Here, the country 
would get the benefits of this short-term stimulus without 
adding to the debt.

    HEARING: ``BUILDING AMERICA: CHALLENGES FOR SMALL CONSTRUCTION 
                             CONTRACTORS''

    On May 23, 2013, the Subcommittee on Contracting and 
Workforce of the Committee on Small Business met in Room 2360 
of the Rayburn House Office Building to receive testimony and 
examine potential legislation which addresses barriers to the 
maximum practicable utilization of small business construction 
and architect and engineering (A&E) contractors. The hearing 
specifically addressed the following areas that often limit 
small businesses from effectively competing on construction 
projects: (1) surety bond issues; (2) the use of reverse 
auctions for construction and construction services; (3) 
subcontracting credit allowance; and (4) failure to properly 
use a two-step procurement process for design build contracts.
    The witnesses on the first panel were: Mr. Mark McCallum, 
CEO, National Association of Surety Bond Producers, Washington, 
DC; Thomas J. Kelleher Jr., Esq., Senior Partner, Smith, Currie 
& Hancock, Atlanta, GA, testifying on behalf of the Associated 
General Contractors of America; Ms. Helene Combs Dreiling, 
First Vice President, American Institute of Architects, 
Roanoke, VA; and Ms. Felicia James, President, Primestar 
Construction, Dallas, TX, testifying on behalf of the United 
States Women's Chamber of Commerce. The witnesses on the second 
panel were: Mr. James C. Dalton, Chief of the Engineering and 
Construction Division, Directorate of Civil Works, United 
States Army Corps of Engineers (USACE), Washington, DC; and Ms. 
Jeanne Hulit, Associate Administrator for Capital Access, 
United States Small Business Administration (SBA), Washington, 
DC.
    The first panel of witnesses provided examples of why the 
contracting areas, highlighted in the hearing, prohibit small 
businesses from competing on construction projects. Further, 
the first panel provided testimony on the benefits of proposed 
and draft legislation and how the various bills would 
significantly expand small businesses opportunity to 
participate in construction contracting. Mr. McCallum 
highlighted the benefits of raising the guarantee rate for the 
SBA's surety bond programs under H.R. 776, noting this would 
attract more corporate sureties. Mr. Kelleher discussed the 
impediments to small business subcontractors under current law 
and the necessity to allow prime contractors count lower tiers. 
Ms. Combs Dreiling testified that the substantial cost of 
submitting a design-build contract was ``increasingly 
prohibitive for small firms.'' Ms. James discussed the various 
impediments her small construction firm had faced in bidding 
for federal contracts and agreed that H.R. 776 ``adds 
transparency to the surety assets.''
    The second panel of witnesses highlighted the benefits of 
utilizing small firms in federal construction projects. 
Further, Mr. Dalton discussed a pilot program run by USACE 
which concluded that for construction projects reverse auction 
did not provide the government with substantial savings. Ms. 
Hulit discussed SBA's surety bond program and the benefits of 
raising the caps from $2 million to $6.5 million which occurred 
in the National Defense Authorization Act.

 HEARING: ``FINANCING AMERICA'S SMALL BUSINESSES: INNOVATIVE IDEAS FOR 
                           RAISING CAPITAL''

    On June 6, 2013, the Subcommittee on Investigations, 
Oversight and Regulations of the Committee on Small Business 
met in Room 2360 of the Rayburn House Office Building to 
receive testimony on innovation in small business finance. 
Small businesses are taking advantage of new and innovative 
methods that use technology to access lenders and investors. 
Lenders and investors are also taking advantage of technology 
to lower their costs in finding new investment opportunities. 
This hearing discussed several of these innovations.
    The witnesses were: Ms. Danae Ringelmann, Co-founder, 
Indiegogo, San Francisco, CA; Mr. Benjamin Miller, Co-founder, 
Fundrise, Washington, DC; Mr. Alejandro Cramedes, Founder and 
CEO, Rock The Post, New York, NY; and Ms. Michelle Sullivan, 
Senior Director of Corporate Communications and External 
Affairs, Boston Beer Company, Boston, MA.
    The witnesses provided testimony on the financing tools 
they offer and how they believe the JOBS Act will impact their 
business models. Ms. Ringelmann testified that the Internet has 
changed how small businesses can access capital and that fraud 
protection is very important to websites like Indiegogo and 
that the private sector is in the best position to create fraud 
deterrents. Mr. Miller testified that his company has 
demonstrated that equity-based crowdfunding can be successful 
and that the current regulatory approval process for securities 
offerings is inefficient and does not protect investors. Mr. 
Cramedes testified that the JOBS Act will bring a lot more new 
investors and new capital to small businesses. Ms. Sullivan 
testified that financing programs that include an education 
component can be very effective at helping small businesses.

 HEARING: ``THE SEASONAL EMPLOYMENT NEEDS OF SMALL TOURISM BUSINESSES 
                         AND H-2B VISA POLICY''

    On June 12, 2013, the Subcommittee on Economic Growth, Tax 
and Capital Access of the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for the purpose 
of receiving testimony on small business utilization of the H-
2B visa program. The H-2B visa program allows employers who 
cannot find temporary or seasonal American workers to bring in 
foreign workers to fill low-skilled, non-agricultural jobs 
during their peak seasons. The hearing examined the effects of 
the recent one-month suspension of H-2B visa application 
processing and the recent regulatory change that may adversely 
affect the costs faced by small tourism businesses that hire 
workers with H-2B visas.
    The witnesses were: Mr. Brad Dean, President and CEO, 
Myrtle Beach Area Chamber of Commerce, Myrtle Beach, SC; Ms. 
Sarah Diment, Owner, The Beachmere Inn, Ogunquit, ME, 
testifying on behalf of the American Hotel and Lodging 
Association; William Spriggs, Ph.D., Chief Economist, American 
Federation of Labor and Congress of Industrial Organizations, 
Washington, DC; and Ms. Jane Nichols Bishop, President, Peak 
Season Workforce, Mashpee, MA.
    Mr. Dean discussed the difficulties that small tourism 
businesses in the Myrtle Beach area have in finding enough 
American workers to fill seasonal jobs and the importance of 
the H-2B visa program, which allows employers to supplement 
their American workforce with temporary foreign workers. Ms. 
Diment testified that the suspension of the H-2B visa program 
and uncertainty surrounding the approval of H-2B workers caused 
The Beachmere Inn to withdraw from the program which has led to 
a staffing shortage that is negatively affecting her American 
staff and the services the inn can provide to its customers. 
Dr. Spriggs discussed the importance of finding jobs for 
unemployed Americans and protecting wages of American workers. 
Ms. Bishop testified that her small business clients that have 
received supplemental prevailing wage determinations are facing 
sudden labor cost increases of ten to 34 percent and do not 
have the ability to change the rates they have set for the 
season.

      HEARING: ``PUTTING THE STRATEGY IN SOURCING: CHALLENGES AND 
             OPPORTUNITIES FOR SMALL BUSINESS CONTRACTORS''

    On June 13, 2013, the Subcommittee on Contracting and 
Workforce of the Committee on Small Business met in Room 2360 
of the Rayburn House Office Building to receive testimony on 
the effects of the Federal Strategic Sourcing Initiative (FSSI) 
on small businesses. The hearing specifically addressed the 
following areas: (1) the Administration's new strategic 
sourcing council and its efforts to make strategic sourcing 
mandatory; (2) the One Acquisition Solution for Integrated 
Services (OASIS) and OASIS Small Business (OASIS SB) contracts; 
and (3) FSSI commodity initiatives currently under 
consideration by the General Services Administration (GSA) and 
their effects on the health of GSA's other contracts.
    The witnesses on the first panel were: Mr. Stan Z. Soloway, 
President & CEO, Professional Services Council, Arlington, VA; 
Robert A. Burton, Esq., Senior Partner, Venable LLP, 
Washington, DC; Roger Waldron, Esq., President, The Coalition 
for Government Procurement, Washington, DC; and Mr. Trey 
Hodgkins, Senior Vice President, Global Public Sector, 
TechAmerica, Washington, DC. The witnesses on the second panel 
were: the Hon. Joseph G. Jordan, Administrator, Office of 
Federal Procurement Policy, Washington, DC; and Mr. Jeff Koses, 
Director, Office of Acquisition Operations, Federal Acquisition 
Service, GSA, Washington, DC.
    The first panel of witnesses provided examples of how 
strategic sourcing is used and its effects on small business; 
specifically noting the problematic effects of closing various 
schedules and making use of strategic sourcing vehicles 
mandatory. Mr. Soloway explained his organization supported the 
government's use of strategic sourcing, but expressed concerns 
relating to how the ``term is used and understood and how its 
initiatives are implemented across the government.'' Mr. Burton 
discussed how GSA's proposed strategic sourcing initiatives 
would negatively affect small businesses and be 
counterproductive to the original goal of strategic sourcing. 
Mr. Waldron explained the importance of GSA's Multiple Award 
Schedule program noting that it provides small businesses with 
an economical and efficient entry point into the federal 
marketplace; and expressed concerns that mandatory use of 
strategic sourcing contracts would reduce small business 
opportunities. Mr. Hodgkins highlighted the detrimental effects 
that the OASIS contracts would have small firms, as many 
services offered by small businesses may not lend themselves to 
strategic sourcing due to unique requirements by various 
governmental agencies.
    The second panel of witnesses defended the current 
application of strategic sourcing while indicating that all 
efforts would be made to maximize small business participation. 
Mr. Jordan remained committed to making strategic sourcing 
mandatory. Mr. Koses noted that as GSA continued utilizing 
strategic sourcing they would ensure significant opportunities 
for a limited number of small businesses.

  HEARING: ``THE NEW DOMESTIC ENERGY PARADIGM: POTENTIAL BENEFITS FOR 
                   SMALL BUSINESSES AND THE ECONOMY''

    On June 20, 2013, the Subcommittee on Agriculture, Energy 
and Trade of the Committee on Small Business met in Room 2360 
of the Rayburn House Office Building for the purpose of 
receiving testimony on ``The New Domestic Energy Paradigm: 
Potential Benefits for Small Businesses and the Economy.'' The 
purpose of the hearing was to examine the economic benefits of 
increased oil and natural gas production to the United States, 
with a special emphasis on how these benefits, and associated 
jobs created, could accrue to small businesses.
    The witnesses were: Mr. John W. Larson, Vice President, 
Economics and Country Risk, IHS Global Insight, Washington, DC; 
Mr. Simon Ormerod, CEO, Ajax Rolled Ring and Machine, York, SC, 
testifying on behalf of the Forging Industry Association; Mr. 
Chuck Grobe, Commissioner, Moffat County, Craig, CO; and Sean 
Meyn, Ph.D., Director, The Florida Institute for Sustainable 
Energy, University of Florida, Gainesville, FL.
    Mr. Larson testified that most of the new oil and gas 
produced in the United States is derived from unconventional 
fields and that employment associated with economic activity 
from these fields could grow to more than three million jobs in 
2020, up from 1.7 million jobs in 2012. He also testified that 
unconventional oil and natural gas production contributed $62 
billion in federal and state revenues in 2010 and that this 
figure could grow to $111 billion by the year 2020. Mr. Ormerod 
called the increased natural gas production potential of the 
United States a ``game changer'' for energy-intensive 
manufacturers, like the forging industry. He stated that 
increased natural gas supplies have resulted in lower utility 
and feedstock costs at stable and consistent prices and that 
these outcomes provide his business and industry with a 
competitive edge versus foreign forging manufacturers. Mr. 
Grobe testified that oil and gas production are important 
sources of economic activity and revenues for many rural 
counties in western Colorado. He noted that 60 percent of the 
area of Moffat County includes federal lands managed by the 
United States Department of Interior's Bureau of Land 
Management (BLM) and that a BLM decision to forgo leasing on 
these lands has reduced economic opportunities and revenues for 
businesses and the government in the county. Dr. Meyn testified 
that the United States should also develop renewable sources of 
energy in addition to oil and gas.

   HEARING: ``MOBILE MEDICAL APP ENTREPRENEURS: CHANGING THE FACE OF 
                             HEALTH CARE''

    On June 27, 2013, the Subcommittee on Health and Technology 
of the Committee on Small Business met in Room 2360 of the 
Rayburn House Office Building, Washington, DC, for the purpose 
of receiving testimony on ``Mobile Medical App Entrepreneurs: 
Changing the Face of Health Care.'' The purpose of the hearing 
was to examine small businesses that developed medical 
applications for mobile devices and the regulatory uncertainty 
surrounding their adoption by physicians and consumers.
    The witnesses were: Mr. Alan Portela, Chief Executive 
Officer, AirStrip, San Antonio, TX; Mr. Keith Brophy, Chief 
Executive Officer, Ideomed, Grand Rapids, MI; Christopher 
Burrow, M.D., Executive Vice President for Medical Affairs, 
Humetrix, Del Mar, CA, testifying on behalf of the Application 
Developers Alliance; and Ms. Sabrina Casucci, Doctoral 
Candidate, Industrial and Systems Engineering, University at 
Buffalo, Buffalo, NY.
    Mr. Portela reviewed the landscape of mobile medical 
applications. He explained that over the past twenty years, 
information technology has truly undergone a transformation. 
Mr. Portela testified that mobile medical apps, such as those 
developed by AirStrip, are becoming crucial to individuals who 
are increasingly interested in managing their own health.
    Mr. Brophy testified that Ideomed invested significant 
capital in the development of an original prototype for a 
Bluetooth-connected tracking device integrated with an asthma 
inhaler. As the process advanced, it became clear that the time 
and cost of achieving Food and Drug Administration (FDA) 
approval was prohibitive for his small company and Ideomed now 
focuses on products that do not require FDA approval.
    Dr. Burrow said interoperability presents particular 
challenges for Medicare patients, who tend to transition from 
one provider and health care setting to another. Mobile health 
records can help to close that information gap.
    Ms. Casucci, who along with her colleagues at the 
University at Buffalo, developed an app to address the complex 
problem of hospital discharge. The app brings hospital 
personnel, caregivers and family members into post-acute care 
decisions. Ms. Casucci and her team won second prize in the GE 
Hospital Quest competition for their innovation. She told the 
Subcommittee members that mobile medical technology offers the 
promise of economic development and job creation for New York 
and our nation.

    HEARING: ``AMERICAN COMPETITIVENESS WORLDWIDE: IMPACTS ON SMALL 
                     BUSINESSES AND ENTREPRENEURS''

    On July 9, 2013, the Subcommittee on Economic Growth, Tax 
and Capital Access of the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building to receive 
testimony on strengthening America's competitiveness by 
creating federal policies which foster business production and 
economic growth. The hearing also examined the actions 
undertaken by firms, on their own initiative to restore 
competitiveness and ensure heightened productivity.
    The witnesses were: Michael Porter, Ph.D., Bishop Lawrence 
University Professor, Institute for Strategy and 
Competitiveness, Harvard Business School, Cambridge, MA; Mr. 
Smyth McKissick, CEO, Alice Manufacturing Company Inc., Easley, 
SC; Mr. James McConeghy, CFO, Chobani, Inc., Norwich, NY; and 
Cynthia McIntyre, Ph.D., Senior Vice President, Council on 
Competitiveness, Washington, DC.
    The witnesses provided testimony on ways to promote 
economic growth and restore America's place within the global 
economy, specifically focusing on federal policies that promote 
firms' ability to be competitive. Prof. Porter discussed his 
February 2013 study on competitiveness which details eight 
federal policies that would revive the United States 
competitiveness compared to other nations. All witnesses agreed 
that Prof. Porter's eight federal policy recommendations would 
help bolster competitiveness, particularly lowering the 
corporate tax rate. Mr. Smyth testified on strategies his small 
textile manufacturing firm has utilized to remain competitive 
despite obstacles due to currency manipulation and how federal 
trade policies could bolster competitiveness. Mr. McConeghy 
highlighted the benefits of receiving a Small Business 
Administration guaranteed loan to start Chobani as well as how 
the company experienced substantial growth during the 
recession. Further, Mr. McConeghy highlighted regulations in 
the dairy industry and barriers to entry in global markets that 
the United States could address to continue to foster 
productivity for Chobani. Dr. McIntyre testified on the 
benefits of advanced manufacturing, specifically the role of 
high performance computing, as a way to drive innovation and 
make the United States more competitive in a global 
marketplace.

 HEARING: ``THE PRESIDENT'S CLIMATE ACTION PLAN: WHAT IS THE IMPACT ON 
                          SMALL BUSINESSES?''

    On July 18, 2013, the Subcommittee on Agriculture, Energy 
and Trade met in Room 2360 of the Rayburn House Office Building 
for the purpose of receiving testimony on: ``The President's 
Climate Action Plan: What Is the Impact on Small Businesses?'' 
The purpose of the hearing was to examine the potential 
economic impacts to small businesses of the President's 
directive to the Environmental Protection Agency (EPA) to 
initiate and finalize rulemaking to limit greenhouse gas (GHG) 
emissions from new and then existing electric generation 
facilities (EGUs) under Sec. 111 of the Clean Air Act (New 
Source Performance Standards). In addition, the Committee 
sought to examine the EPA's plans to comply with its 
obligations under the Regulatory Flexibility Act during this 
rulemaking.
    The witnesses were: Mr. Michael Kezar, General Manager, San 
Miguel Electric Cooperative, Inc., Jourdanton, TX; Mr. James L. 
Brown, President, Bremen Castings, Inc., Bremen, IN; Bernard 
Weinstein, Ph.D., Associate Director, Maguire Energy Institute, 
Southern Methodist University, Dallas, TX; and Mr. Paul 
Gardner, Vice President of Business Development, Agilis Group, 
Inc., Palm Beach Gardens, FL.
    Mr. Kezar testified that a previously proposed NSPS rule, 
which was never finalized, to limit GHG emissions from newly 
constructed EGUs would have made it impossible for small, coal-
fired EGUs, like that operated by his cooperative, to meet the 
emissions limit standard. Mr. Brown testified that nearly 80 
percent of electric utility power in Indiana is produced from 
coal-fired EGUs. He fears that GHG emission limits that coal-
fired plants can't meet will lead to the premature retirement 
of these EGUs, thus leading to an increase in his firm's energy 
costs and a reduction in his firm's international 
competitiveness. Dr. Weinstein testified that public policy in 
the United States appears to presume that the United States is 
an energy resource poor nation, meaning energy resources are 
scarce, when the United States possesses substantial resources 
that can provide small businesses and consumers with affordable 
energy for many decades into the future. Mr. Kezar and Mr. 
Brown agreed with this assessment. Mr. Gardner testified that 
federal, state and local government efforts to promote the 
adoption of less GHG intensive fuels has served as a catalyst 
to increase research and development of more efficient means of 
producing and delivering energy. As a small businesses 
engineering firm that helps design gas turbine engines, this 
has increased demand for his firm's services.

  HEARING: ``EXAMINING THE SMALL BUSINESS INVESTMENT COMPANY PROGRAM''

    On July 25, 2013, the Subcommittee on Investigations, 
Oversight and Regulations of the Committee on Small Business 
met in Room 2360 of the Rayburn House Office Building for the 
purpose of examining the Small Business Administration's (SBA) 
Small Business Investment Company (SBIC) program. As part of 
its oversight efforts, the Subcommittee reviewed the SBIC 
program to determine whether it is meeting the capital needs of 
small business owners and entrepreneurs while reducing risk to 
taxpayers.
    The witnesses were: Ms. Pravina Raghavan, Acting Associate 
Administrator for Investment, United States Small Business 
Administration, Washington, DC; Mr. Steven Brown, President, 
Trinity Capital Investment, Chandler, AZ, testifying on behalf 
of the Small Business Investor Alliance; Mr. John Sherman, 
Founder, Director and former CEO, Inergy, LP, Kansas City, MO; 
Mr. Philip Alexander, CEO, BrandMuscle, Cleveland, OH, 
testifying on behalf of the U.S. Chamber of Commerce; David 
Robinson, Ph.D., Professor, Fuqua School of Business, Duke 
University, Durham, NC.
    The witnesses provided testimony about the SBIC Program 
that ranged from how it is administered by the Small Business 
Administration to the real-life benefits it has brought to 
growing small businesses. Associate Administrator Raghavan 
testified on the program's ability to provide capital to small 
businesses and discussed agency processes surrounding the 
program, specifically, how the agency administers the 
investment fund licensing process, and ways the agency plans to 
manage risk given the program's growth. Mr. Brown testified 
that his recently licensed SBIC fund, Trinity Capital Fund II, 
has $70 million of combined private capital and SBA leverage 
with which to invest in small businesses, and offered ways the 
SBA could improve the SBIC Program, particularly by using 
financial reporting technology platforms and making the 
licensing process more ``efficient'' without lowering the 
current high standard to become licensed. Mr. Sherman testified 
that although the company he founded, Inergy, LP, now employs 
3,000 people and has raised billions of dollars in the public 
markets since growing from a fledgling business, an investment 
from a group of SBICs in early 2001 remains the most critical 
investment it ever received. Mr. Alexander testified that the 
``SBIC Program was unique in its ability'' to provide capital 
to the company he started at a point where its growth had 
become stagnant and debt financing from traditional channels 
wasn't available. Dr. Robinson testified that young businesses 
are responsible for the vast majority of job creation in the 
United States, and because of this, the Early Stage SBIC 
Program is ``laudable,'' but must be designed in a way to 
provide early-stage investors with sufficient capital to make 
follow-on investments.

HEARING: ``JOB CREATION IN HIGHER EDUCATION COMMUNITIES: HOW UNIVERSITY 
         RESEARCH AND DEVELOPMENT SPURS SMALL BUSINESS GROWTH''

    On August 5, 2012, the Subcommittee on Contracting and 
Workforce of the Committee on Small Business met in Binghamton, 
New York for the purpose of conducting a hearing titled ``Job 
Creation in Higher Education Communities: How University 
Research and Development Spurs Small Business Growth.'' The 
hearing examined the symbiotic relationship between Binghamton 
University (BU) and the surrounding community, with a 
particular focus on how BU's research has led to small business 
creation and economic growth in the Southern Tier of New York.
    The witnesses for the hearing were: Bahgat Sammakia, Ph.D., 
Vice President of Research, Binghamton University, Vestal, NY; 
Mr. Chuck Schwerin, CEO, Sonostics, Inc., Binghamton, NY; and 
Mr. Rick Pray, President, RPA Electronics, Binghamton, NY.
    Dr. Sammakia began the testimony by stating that as a 
country, we must reinvest in research and development. He 
continued to say that we also need to strengthen our commitment 
to education in the Science, Technology, Engineering, and 
Mathematics (STEM) disciplines. He believes it is the only way 
to prepare the next generation of Americans and American 
companies for what we know will be a global race for prosperity 
and security. Mr. Schwerin continued the testimony by stating 
that firms like his do not possess all the skills necessary to 
navigate the ever-changing regulatory shoals and that 
continuing education support for legal and accounting 
professionals specifically in the area of innovation 
incentives, would help small companies like his grow and 
improve the chances for success. Mr. Pray concluded the 
testimony by stating that jobs in the training and simulation 
marketplace are exactly those targeted by education programs 
such as STEM initiatives which lead to excellent wages and 
benefits. He also mentioned that being able to compete with 
companies in other areas (with other university partners) for 
Small Business Technology Transfer (STTR) grants in the field 
of training and simulation would directly benefit the local 
economy and provide a measurable impact.

HEARING: ``PRIVATE SECTOR INITIATIVES TO EDUCATE SMALL BUSINESS OWNERS 
                          AND ENTREPRENEURS''

    On September 19, 2013, the Subcommittee on Economic Growth, 
Tax and Capital Access of the Committee on Small Business met 
in Room 2360 of the Rayburn House Office Building for the 
purpose of shedding light on private sector efforts to educate 
small business owners and entrepreneurs. The Subcommittee 
examined private sector training and mentorship programs by 
highlighting the stories of specific private sector initiatives 
and their effects on small businesses.
    The witnesses were: Ms. Dina Powell, Managing Director, 
Goldman Sachs, New York, NY; Stephen Morgan, Ed.D., Chairman, 
Board of Trustees, My Own Business, Inc., City of Industry, CA; 
Mr. Damien Stevens, Founder and CEO, Servosity, Greenville, SC; 
Kim Pate, Esq., Chief External Relations Officer, Corporation 
for Enterprise Development, Washington, DC.
    The witnesses provided testimony about their efforts to 
educate and train current and future small business owners, as 
well as how learning from such efforts has helped one company 
recently grow from one to twelve employees. Ms. Powell 
testified on the Goldman Sachs 10,000 Small Businesses 
Initiative, specifically how it simultaneously provides its 
small business participants with three resources: an 
educational curriculum, access to capital, and business 
advising. She also announced that Goldman Sachs has just 
launched a national expansion of the initiative, and it is now 
open to any small business owner in the nation that wishes to 
apply. Dr. Morgan testified that My Own Business, Inc., a non-
profit organization, has provided free online training courses 
to nearly 35 million current and aspiring entrepreneurs over 
the last 20 years, including through partnerships with the 
World Bank and Cisco, and was previously linked to from the 
Small Business Administration's website. Mr. Stevens testified 
on how his move in 2009 as a one-man company, Servosity, into 
the NEXT Innovation Center, a collaborative workspace in 
Greenville, South Carolina, allowed him the opportunity to 
learn from other CEOs and secure growth financing, which has 
led to the addition of 12 employees with plans to add 30 more 
in the next 18 months. Ms. Pate testified on the importance of 
micro-businesses, those with four or fewer employees, to the 
economy and discussed ways the Corporation for Enterprise 
Development supports these entities, with one example being the 
Self-Employment Tax Initiative, which provides free tax support 
to low-income entrepreneurs.

  HEARING: ``SMALL BUSINESS ACCESS TO CAPITAL IN SCOTTSDALE ARIZONA''

    On September 23, 2013, the Subcommittee on Investigations, 
Oversight and Regulations of the Committee on Small Business 
met at the Skysong Innovation Center, Arizona State University, 
Scottsdale, AZ for a field hearing on the local environment for 
small businesses seeking to raise capital and the regulatory 
impediments to investors providing funds to entrepreneurs, 
especially those in high-growth fields. The hearing also 
examined the implementation of the Jumpstart Our Business 
Startups Act of 2012 (JOBS Act).
    The witnesses were: Mr. James Goulka, Managing Director, 
Arizona Technology Investors Forum, Mesa, AZ; Mr. Nima Jacob 
Nojoumi, Founder and CEO, itsWorth, LLC, Tempe, AZ; and Mr. 
Thomas H. Curzon, Senior Partner, Osborn Maledon, Phoenix, AZ.
    The witnesses provided testimony on local financing 
resources for entrepreneurs and the potential effects of the 
JOBS Act. Mr. Goulka testified that the Securities and Exchange 
Commission's proposed rule on general solicitation and 
advertising creates serious impediments for angel investors to 
invest in new issues (of securities) by private companies, and 
if not amended, will limit investment in deals that are 
privately generally solicited. Mr. Nojoumi testified that 
Arizona has an emerging startup community and that states need 
to do a better job of creating a sustainable ecosystem that 
includes a variety of funding sources. Mr. Curzon testified 
that investor conferences like Invest Southwest can help 
Arizona better address current market conditions and continue 
the growth of the ecosystem.

  HEARING: ``THE EFFECTS OF THE HEALTH LAW'S DEFINITION OF FULL-TIME 
                     EMPLOYEE ON SMALL BUSINESSES''

    On October 9, 2013, the Subcommittee on Health and 
Technology of the Committee on Small Business met in Room 2360 
of the Rayburn House Office Building for the purpose of 
receiving testimony on ``The Effects of the Health Law's 
Definition of Full-Time Employee on Small Businesses.'' The 
purpose of the hearing was to examine the potential economic 
and employment effects of the health law's definition of full-
time employee as one who works an average of 30 hours per week.
    The witnesses were: Mr. Raymond J. Keating, Chief 
Economist, Small Business and Entrepreneurship Council, Vienna, 
VA; Mr. Steve Hermann, Vice President, Paul's Supermarket, 
Inc., Eldon, MO, testifying on behalf of the National Grocers 
Association; Mr. Stephen Bienko, President & Owner, 42 
Holdings, LLC, Fairfield, NJ, testifying on behalf of the 
International Franchise Association; and Dean Baker, Ph.D., Co-
Director, Center for Economic and Policy Research, Washington, 
DC.
    Mr. Keating testified that the health law's definition of 
full-time employee is an incentive for firms to reduce the 
hours of employees to less than 30 hours a week so as to avoid 
the strictures of the employer mandate. He further stated that 
recent surveys of small business owners and executives report 
that firms have reduced hiring or have reduced employee hours 
to less than 30 hours a week in response to the employer 
mandate. Mr. Hermann testified that most part-time employees at 
his stores work more than 30 hours per week, but less than 40 
hours per week. He said it is not economical for his firm to 
provide health insurance to employees working less than an 
average of 40 hours per week and that he fears that his firm 
may need to reduce the hours of part-time employees below 30 
hours per week. Mr. Bienko testified that consumer demand for 
his services is variable and so are the hours his part-time 
employees may work in a week. Mr. Hermann and Mr. Bienko both 
testified that many of their part-time employees prefer 
receiving their compensation in wages versus non-wage benefits. 
Dr. Baker testified that his organization's analysis of recent 
employment data does not indicate that the employer mandate has 
had a measurable impact on business hiring decisions and that 
data indicate that employers have not reduced employee hours to 
avoid the employer mandate.

 HEARING: ``BUNGLING BUNDLING: HOW CONTRACT BUNDLING AND CONSOLIDATION 
             REMAIN CHALLENGES TO SMALL BUSINESS SUCCESS''

    On October 10, 2013, the Subcommittee on Contracting and 
Workforce of the Committee on Small Business met in Room 2360 
of the Rayburn House Office Building to receive testimony 
regarding the ongoing problems that unjustified contract 
bundling and consolidation pose for small businesses. 
Specifically, the hearing focused on the absence of sound data 
regarding bundling and consolidation; the lack of agency-level 
accountability for complying with current statutes; and 
problems with the current statutory constructs for bundling and 
consolidation.
    The witnesses were: Ms. Gloria Larkin, President, 
TargetGov, Baltimore, MD, testifying on behalf of Women 
Impacting Public Policy; Robert A. Burton, Esq., Senior 
Partner, Venable LLP, Washington, DC; Ms. Juanita Beauford, 
President, Association of Procurement Technical Assistance 
Centers, Newark, DE; and Ms. Margot Dorfman, CEO, U.S. Women's 
Chamber of Commerce, Washington, DC. They provided examples of 
how contract bundling and consolidation are underreported in 
the Federal Procurement Data System, while agencies continue to 
bundle and consolidate requirements without consequence. Ms. 
Larkin emphasized that ``these enormous bundled contracts 
inherently limit small business from competing.'' Ms. Beauford 
stated that counselors at Procurement Technical Assistance 
Centers are reporting that, ``there is confusion both about 
what constitutes bundling and that there are requirements to 
make solicitations accessible to small businesses. Enforcement 
of such requirements is simply not happening.'' Mr. Burton drew 
attention to the, ``lack of recourse for small businesses that 
have been negatively impacted by agency noncompliance with the 
applicable regulations.'' Ms. Dorfman concluded that, despite 
Congressional efforts, ``[t]he issues of bundling, 
consolidation, and the ever-popular euphemism strategic 
sourcing are alive and well in the Federal marketplace.''

HEARING: ``SELF-INSURANCE AND HEALTH BENEFITS: AN AFFORDABLE OPTION FOR 
                           SMALL BUSINESS?''

    On November 14, 2013, the Subcommittee on Health and 
Technology of the Committee on Small Business met in room 2360 
of the Rayburn House Office Building for the purpose of 
receiving testimony from industry leaders and small business 
owners regarding the trend of small businesses choosing to 
self-insure their employees' health care coverage rather than 
purchase health insurance from insurers. The hearing titled 
``Self-Insurance and Health Benefits: An Affordable Option for 
Small Businesses?'' also examined whether changes to the health 
care marketplace, including the implementation of the new 
health care law, are influencing these decisions.
    The witnesses for the hearing were: Mr. Michael Ferguson, 
President and CEO, Self-Insurance Institute of America, 
Simpsonville, SC; Ms. Robin Frick, Combined Benefits 
Administrators, Inc., Madisonville, LA, testifying on behalf of 
the National Health Underwriters Association (NAHU); Mr. Thomas 
Faria, President and CEO, Sheffield Pharmaceuticals, New 
London, CT; and Linda Blumberg, Ph.D., Senior Fellow, The Urban 
Institute Health Policy Center, Washington, DC.
    Mr. Ferguson began the testimony by stating he believes 
that the health care law has created added uncertainty in the 
health care marketplace and contributes to more acute cost 
fluctuations, at least in the short run. He added that in this 
current environment, self-insurance does provide smaller 
organizations more certainty in their ability to be able to 
continue to provide quality health benefits along with 
providing them better cost containment capabilities. Ms. Frick 
testified that the NAHU membership reports, almost universally, 
that the looming health care law and related market changes are 
causing significant anxiety within the employer community. She 
stated that small employers are looking at all possible ways to 
gain greater control over their employee benefit options and 
that this need for control has sparked a greater interest in 
the possibility of self-funding among the small and mid-sized 
employer community. Mr. Faria stated that while switching to 
self-insurance provided a new set of challenges to his 
business, the decision to self-insure his company has been a 
good one. He added, that based on estimates of the yearly 
average increases that fully-insured health care plans charged 
in Connecticut for plans of his size, he believes that self-
insuring saved the company over $400,000 over the span of four 
years. Dr. Blumberg closed the testimony by stating that 
certain aspects of self-insured plans ought to be more heavily 
regulated in order to protect the smaller firms that utilize 
self-insurance plans.

HEARING: ``WRONG WAY: THE IMPACT OF FMCSA'S HOURS OF SERVICE REGULATION 
                         ON SMALL BUSINESSES''

    On November 21, 2013, the Subcommittee on Contracting and 
Workforce of the Committee on Small Business met in room 2360 
of the Rayburn House Office Building for the purpose of 
receiving testimony on ``WRONG WAY: The Impact of FMCSA's Hours 
of Service Regulation on Small Businesses.'' The purpose of the 
hearing was to examine the economic and operational effects of 
the United States Federal Motor Carrier Safety Administration's 
(FMCSA) Hours of Service (HOS) regulation that took effect on 
July 1, 2013.
    The witness on the first panel was: the Hon. Anne S. Ferro, 
Administrator, FMCSA, United States Department of 
Transportation, Washington, DC. The witnesses on the second 
panel were: Mr. Duane Long, Chairman, Longistics, Raleigh, NC, 
testifying on behalf of the American Trucking Association; Mr. 
Tilden Curl, Owner-Operator, Tecco Trucking, Inc., Olympia, WA, 
testifying on behalf of the Owner-Operator Independent Drivers 
Association; Mr. Brian Evans, President-Owner, L&L Freight 
Services, Inc., Cabot, AR, testifying on behalf of the 
Transportation Intermediaries Associations; and Paul P. 
Jovanis, Ph.D., Professor of Civil and Environmental 
Engineering and Director, Transportation Operations Program, 
Larson Transportation Institute, Pennsylvania State University, 
University Park, PA.
    Ms. Ferro testified that the purpose of the recently 
enacted HOS regulations is to reduce the incidence of highway 
accidents resulting from fatigued driving by commercial motor 
vehicle (CMV) operators. Mr. Evans testified that the new HOS 
regulations are causing negative impacts to small business 
commercial supply chains across a variety of industries. Mr. 
Tilden testified that, contrary to the intent of the 
regulation, the new HOS rule often prevents him from receiving 
sufficient rest and may compel him to drive when he is tired. 
Mr. Long said that drivers at his business report similar 
outcomes. All of the small business witnesses reported the new 
regulation reduced their income or had some other negative 
outcomes on their operations.
    Chairman Hanna asked the second panel witnesses what 
modifications they would like made to the HOS regulations. Mr. 
Curl, Mr. Long, and Mr. Evans supported reverting back to the 
HOS regulation that was in effect prior to July 1, 2013. Mr. 
Curl further suggested that modifying the regulation's break 
provision to permit CMV to take multiple breaks throughout the 
day. Dr. Jovanis stated that in his opinion permitting 
operators to choose between taking multiple breaks or a single, 
longer break is a better strategy in preventing CMV operator 
fatigue.

      HEARING: ``REGULATORY LANDSCAPE: BURDENS ON SMALL FINANCIAL 
                             INSTITUTIONS''

    On December 3, 2013, the Subcommittee on Investigations, 
Oversight and Regulations of the Committee on Small Business 
met in Room 2360 of the Rayburn House Office Building to 
receive testimony on the impact of regulations on small banks 
and credit unions. The reforms enacted after the 2008 financial 
crisis impose potentially significant impacts on small 
financial institutions.
    The witnesses were: Hester Peirce, Esq., Senior Research 
Fellow, Mercatus Center, George Mason University, Arlington, 
VA; Ms. Linda Sweet, President and CEO, Big Valley Federal 
Credit Union, Sacramento, CA, testifying on behalf of the 
National Association of Federal Credit Unions; Mr. B. Doyle 
Mitchell, Jr., President and CEO, Industrial Bank, Washington, 
DC, testifying on behalf of the Independent Community Bankers 
of America; and Adam J. Levitin, Esq., Professor of Law, 
Georgetown University Law Center, Washington, DC.
    The witnesses provided testimony on how federal regulations 
stemming from the Dodd-Frank Act are affecting their business. 
Specifically, witnesses testified about how regulations related 
to the mortgage lending industry emanating from the Consumer 
Financial Protection Bureau (CFPB) are creating new compliance 
costs. Ms. Peirce testified that a regulatory environment that 
is increasingly unwelcome to small financial institutions may 
curtail customer choice. Ms. Sweet testified that there is an 
overwhelming tidal wave of new regulations and that many non-
compliance staff are being forced to take time away from 
serving members to spend time on compliance issues. Further, 
that the breadth and pace of CFPB rulemaking is troublesome. 
Mr. Mitchell testified that new rules are affecting his ability 
to serve low-income and minority borrowers and that rules 
related to mortgages may cause community banks to exit the 
mortgage lending business. Mr. Levitin testified that CFPB 
impact on small banks is limited and the agency has shown a 
particular solicitude towards the concerns of small 
institutions.

   HEARING: ``WHERE ARE WE NOW? EXAMINING THE POST--RECESSION SMALL 
                     BUSINESS LENDING ENVIRONMENT''

    On December 5, 2013, the Subcommittee on Economic Growth, 
Tax and Capital Access of the Committee on Small Business met 
in Room 2360 of the Rayburn House Office Building in order to 
receive testimony from industry leaders and experts regarding 
current levels of lending to small businesses and the various 
factors and economic trends affecting them.
    The witnesses were: Ms. Ann Marie Wiersch, Policy Analyst, 
Federal Reserve Bank of Cleveland, Cleveland, OH; Mr. Jeff 
Stibel, Chairman and CEO, Dun and Bradstreet Credibility Corp., 
Malibu, CA; Mr. Renaud Laplanche, CEO, Lending Club, San 
Francisco, CA; Mr. Fred Green, III, President and CEO, South 
Carolina Bankers Association, Columbia, SC; Mr. John 
Farmakides, President and CEO, Lafayette Federal Credit Union, 
Kensington, MD, testifying on behalf of the National 
Association of Federal Credit Unions.
    The witnesses provided testimony about levels of lending to 
small businesses since the recession, including the various 
economic factors and trends affecting these levels. Ms. Wiersch 
testified that the value of commercial and industrial loans of 
$1 million or less are currently just below 80 percent of their 
pre-recession values, and cited a confluence of factors 
responsible for this drop in lending, specifically, lower 
demand from small business borrowers, increased regulatory 
scrutiny on banks, and a consolidation in the banking industry. 
Mr. Stibel testified that the conflicting definitions of 
``small business'' limit the ability of various institutions, 
including Dun & Bradstreet, to capture accurately the small 
business lending environment. Mr. Laplanche testified that 
while high underwriting costs make smaller loan sizes less 
attractive to lenders, causing small businesses to face 
difficulty accessing capital, alternative lenders are on the 
rise, recording a 64 percent increase in loan originations in 
the past four years. Mr. Green testified that demand from small 
business borrowers has declined and increased regulatory 
scrutiny for banks brought on by the Dodd-Frank legislation 
hampered their ability to provide the same type and number of 
loans before the 2008 financial crisis. Mr. Farmakides 
testified on the role credit unions play in the small business 
lending environment, and impediments currently facing credit 
unions.

HEARING: ``CONTRACTING AWAY ACCOUNTABILITY-REVERSE AUCTIONS IN FEDERAL 
                         AGENCY ACQUISITIONS''

    On December 11, 2013, the Subcommittee on Contracting and 
Workforce of the Committee on Small Business and the 
Subcommittee on Oversight and Investigations of the Committee 
on Veterans' Affairs met in Room 334 of the Cannon House Office 
Building to receive testimony regarding problems with the use 
of reverse auctions by the Department of Veterans Affairs (VA) 
and other federal agencies. Specifically, the hearing focused 
on whether reverse auctions provided adequate competition and 
adhered to the requirements of the Small Business Act, while 
also assessing the purported cost savings associated with this 
procurement methodology.
    The witnesses on the first panel were: Mr. Nigel Cary, 
President, Cox Construction Co., San Diego, CA, testifying on 
behalf of the Associated General Contractors of America; and 
Mr. Louis J. Celli, Jr. Director, Legislative Division, The 
American Legion, Washington, DC. The witnesses on the second 
panel were: Ms. Michelle Mackin, Director, Acquisition and 
Sourcing Management, United States Government Accountability 
Office, Washington, DC; Mr. William Sisk, Deputy Commissioner, 
Federal Acquisition Service, General Services Administration, 
Washington, DC; and Major L. Clark, III, Esq., Assistant Chief 
Counsel for Procurement, Office of Advocacy, United States 
Small Business Administration, Washington, DC. The third panel 
witness was: Mr. Jan Frye, Deputy Assistant Secretary, Office 
of Acquisitions and Logistics, Department of Veterans Affairs, 
Washington, DC; supported by Philip Matkovsky, Assistant Deputy 
Under Secretary for Health for Administrative Operations, 
Washington, DC.
    Mr. Cary testified that using reverse auctions limits 
competition because his ``company and many other construction 
companies--both small and non-small businesses--do not 
participate in reverse auction procurements.'' Mr. Celli stated 
that the American Legion has worked with numerous small 
businesses that ``fail to realize the true expense required to 
deliver on a bid and have sold at such slim margins that they 
weren't able to sustain a viable business model.'' Ms. Mackin 
recommended ``that the [Federal Acquisition Regulation] be 
amended to address reverse auctions.'' Mr. Sisk highlighted 
that the General Services Administration now provides a free 
alternative to commercial reverse auction providers. Mr. Clark 
stated that the Office of Advocacy is ``advocating for clear 
reverse auction guidance from the Office of Federal Procurement 
Policy.'' Mr. Frye stated that VA ``continues to monitor the 
efficacy of reverse auctions and adjust our policies and 
processes to be in line with the results of our reviews and 
business outcomes.''
                                 PART C

                 Waste, Fraud, Abuse and Mismanagement

    Of the hearings delineated above, the following were 
devoted specifically to an examination of programs within the 
Committee's jurisdiction with a focus on potential 
mismanagement, waste, fraud and/or abuse.

                 HEARINGS ON SBA MANAGEMENT AND BUDGET

    During the April 24, 2013 full Committee hearing on the 
President's FY 2014 budget request for the Small Business 
Administration (SBA), at which Administrator Karen Mills 
testified, the programs under her authority were discussed in 
detail. The members of the Committee expressed their concerns 
about a number of pilot programs for entrepreneurial training 
that were not authorized by legislation and appear to duplicate 
extant efforts mandated in the Small Business Act. Further 
questioning examined the delays in the modernization of the 
agency loan management accounting system that is significantly 
behind schedule. The Committee's concerns about pilot programs 
and implementation of information technology resources are laid 
out in greater detail in the FY 2014 budget views and estimates 
letter that were adopted by the Committee on February 27, 2013.
    The Committee followed the hearing of the Administrator 
with testimony from the Inspector General on June 5, 2013. 
Committee members inquired about the continuing fraud in the 
SBA's government contracting programs, the failure of the 
agency to complete modernization of the loan management 
accounting system, the errors in the SBA's own procurement for 
goods and services, the absence of performance metrics, and the 
problems associated with the processing of disaster loans. The 
Inspector General's responses revealed continued problems at 
the SBA that the agency needs to address.

            HEARING ON ENTREPRENEURIAL DEVELOPMENT PROGRAMS

    Three hearings on the SBA's entrepreneurial development 
programs examined the scope of these programs, the adequacy of 
evaluations by the SBA, duplicative programs among federal 
agencies, and private sector initiatives that could replace the 
federal government's efforts. The full Committee hearings on 
March 20, 2013 and November 20, 2013 are described in Part A, 
supra, and the Subcommittee on Economic Growth, Tax, and 
Capital Access hearing on September 19 is described in Part B, 
supra.

             HEARINGS ON SBA FINANCIAL ASSISTANCE PROGRAMS

    In addition to the hearings at which the Administrator and 
Inspector General testified at which the SBA's capital access 
programs were addressed, there were two subcommittee hearings 
in the Subcommittee on Economic Growth, Tax and Capital Access 
covering certain aspects of SBA's efforts to provide financial 
assistance to small businesses. The July 25, 2013 hearing 
addressed regulatory problems in the Small Business Investment 
Company and a December 5, 2013 hearing that examined the state 
of small business lending and how the SBA programs do or not 
contribute to meeting the debt capital needs of small 
businesses. Both hearings are described in more detail in Part 
B, supra.

                    HEARINGS ON FEDERAL PROCUREMENT

    Four hearings by the Subcommittee on Contracting and 
Workforce held on May 23, 2013, June 13, 2013, October 10, 
2013, and December 11, 2013 examined problems in agency 
compliance with federal statutes and rules governing purchases 
of goods and services from small businesses. These hearings are 
described in greater detail in Part B, supra. And as already 
noted, the hearings with the Administrator and Inspector 
General reviewed abuse of SBA contracting programs and the 
steps needed to eliminate such abuses.
                                 PART D

                          OVERSIGHT ACTIVITIES

                 OVERSIGHT PLAN FOR THE 113TH CONGRESS

    Clause 2(d) of rule X of the Rules of the House of 
Representatives for the 113th Congress requires that each 
standing committee, in the first session of a Congress, adopt 
an oversight plan for the two-year period of the Congress and 
submit the plan to the Committee on Oversight and Government 
Reform and the Committee on House Administration.
    Subpart A contains the Oversight Plan of the Committee on 
Small Business for the One Hundred Thirteenth Congress, which 
the Committee considered and adopted on January 23, 2013. 
Subpart B contains a summary of the actions taken to implement 
that plan.

                               SUBPART A

 Oversight Plan of the Committee on Small Business for the One Hundred 
                          Thirteenth Congress

                              ----------                              **
***


     January 23, 2013, Approved by the Committee on Small Business

                              ----------                              **
***


  Mr. Graves, from the Committee on Small Business, submitted to the 
Committee on Oversight and Government Reform and the Committee on House 
                      Administration the following

                                 REPORT

    Rule X, cl. 2(d)(1) of the Rules of the House requires each 
standing Committee to adopt an oversight plan for the two-year 
period of the Congress and to submit the plan to the Committees 
on Government Reform and House Administration not later than 
February 15 of the first session of the Congress. Under Rule X, 
the Committee has oversight authority to investigate and 
examine any matter affecting small business. This Report 
reflects that broad oversight jurisdiction.
    Pursuant to Rule X, cl. 2(d)(1)(F), this oversight plan 
also includes proposals to cut or eliminate programs that are 
inefficient, duplicative, outdated, or more appropriately 
administered by State or local governments.
Oversight of Federal Capital Access Programs
    The Committee will conduct hearings and investigations into 
Small Business Administration (SBA) and other federal agencies 
that provide capital to America's entrepreneurs that may 
include any or all of the following, as well as matters brought 
to the attention of the Committee subsequent to the filing of 
this Report:
     Effectiveness of the capital access programs to 
generate jobs in the fastest growing small businesses.
     Whether lenders are meeting their goals to lend to 
small businesses and create jobs.
     Risk to the taxpayers of the capital access 
programs and if those risks are not reasonable, then 
elimination of those programs.
     Adequacy of SBA oversight of its lending partners 
to ensure that federal taxpayers are properly protected.
     Capabilities of the SBA information technology to 
manage the loan portfolio.
     Appropriateness of ad hoc guidance documents in 
regulating lenders and borrowers.
     The exercise of discretion by SBA to create pilot 
programs and the risk they pose to the taxpayer and whether 
such authority should be curtailed or eliminated.
     Whether SBA disaster loan program and its 
oversight ensures that small businesses are able to revive to 
rebuild communities without unduly placing the federal taxpayer 
at risk.
     Efficacy and duplication of federal capital access 
programs offered by the Department of Agriculture to small 
businesses in rural areas.
     Utilization by small businesses of export capital 
programs at the Export-Import Bank and the Overseas Private 
Investment Corporation.
     Results of the Small Business Lending Fund and 
State Small Business Credit Initiative established by Pub. L. 
No. 111-240, the Small Business Jobs Act of 2010, in creating 
jobs and providing capital to small businesses.
     Impact of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act, Pub. L. No. 111-203, on small business 
access to capital.
     Implementation of crowdfunding and other 
provisions of the Jumpstart Our Business Startups Act, Pub. L. 
No. 112-106.
    In performing oversight, the Committee will focus on 
particularly risky aspects of financial assistance programs 
including, but not limited to, commercial real estate 
refinancing, premier certified lenders, participating security 
small business investment companies, small business lending 
companies, express lenders, and loan programs utilizing 
simplified lending applications.
Oversight of SBA and Other Federal Entrepreneurial Development Programs
    The Committee will conduct hearings and investigations into 
the SBA programs that provide training and advice to small 
businesses that may include any or all of the following, as 
well as matters brought to the attention of the Committee 
subsequent to the filing of this Report:
     Examining effectiveness of SBA entrepreneurial 
development programs in creating jobs.
     Determining whether certain programs should be 
eliminated as a result of their ineffectiveness or duplication 
of programs provided by other agencies or by the private 
sector.
     Suggesting methods for enhancing coordination 
among federal agencies in providing assistance to 
entrepreneurs, including, but not limited to, businesses 
located in rural areas and those seeking to provide goods and 
services in the federal procurement marketplace.
     Enhancing the efficacy and utilization of the 
Manufacturing Extension Partnership at the Department of 
Commerce.
     Recommending improvements in assistance to small 
businesses that participate in the production of value-added 
agricultural products.
     Increasing effectiveness of technical assistance 
provided to small businesses involved in the production of 
renewable and non-renewable energy sources.
Oversight of Federal Government Contracting Matters
    The Committee will conduct hearings and investigations into 
the federal procurement system that may include any or all of 
the following, as well as matters brought to the attention of 
the Committee subsequent to the filing of this Report:
     Whether fraud or other problems exist in the 
federal government contracting programs overseen by the SBA 
including the 8(a), HUBZone, service-disabled veteran, women-
owned contracting, and Small Business Innovation Research.
     Effectiveness of SBA contracting programs to 
increase participation by small businesses in federal 
procurement.
     Effectiveness of federal agency protections 
against contract bundling and consolidation.
     The accuracy and utility of SBA size standards and 
federal procurement databases.
     Operation and effectiveness of federal agency 
assistance provided to small businesses interested in federal 
procurement, including that provided by the SBA, Offices of 
Small and Disadvantaged Business Utilization and Procurement 
Technical Assistance Centers.
     Development of federal acquisition policies and 
whether small businesses have sufficiently effective voice in 
development of such policies.
     Cost-effectiveness of outsourcing government work 
to private enterprise rather than expanding the government to 
do provide the good or service internally (i.e., government 
insourcing).
     Implementation and efficacy of changes made in 
small business federal procurement programs arising from the 
enactment of the National Defense Authorization Act for FY 
2013, Pub. L. No. 112-239.
     Examination of the Small Business Innovation 
Research Program as modified by the National Defense 
Authorization Act for FY 2012, Pub. L. No. 112-81, including, 
but not limited to, increased efforts at commercializing 
federally-funded technology.
    In performing oversight, the Committee will focus its 
efforts on uncovering abuse and misuse of the small business 
designation to obtain federal government contracts.

Oversight of SBA Management

    The Committee will conduct the hearings and investigations 
into the management of the SBA that may include any or all of 
the following, as well as matters brought to the attention of 
the Committee subsequent to the filing of this Report:
     The appropriate mission of the SBA.
     Whether agency employees in the field are 
empowered to assist small businesses.
     Duplication of offices and missions at SBA 
headquarters.
     Effectiveness of personnel management to ensure 
that employees are rewarded for assisting small businesses.
     Capabilities of SBA employees to provide proper 
assistance to small business owners.
    In carrying out this oversight, the Committee will focus 
particularly on streamlining and reorganizing of the agency's 
operations to provide maximum assistance to small business 
owners. Offices that primarily provide assistance or advice to 
headquarters staff that do not promote the interests of small 
businesses or protect the federal government as a guarantor of 
loans will be recommended for cuts or elimination. For some 
potential offices that the Committee will examine, refer to the 
section title ``Reductions in Programs and Spending.''

Oversight of Federal Regulatory and Paperwork Burdens

    The Committee will conduct hearings and investigations into 
unnecessary, burdensome, and duplicative federal rules, 
reporting and recordkeeping requirements affecting small 
businesses that may include any or all of the following, as 
well as matters brought to the attention of the Committee 
subsequent to the filing of this Report:
     Centers for Medicare and Medicaid Services.
     Consumer Financial Protection Bureau.
     Consumer Safety Products Commission.
     Department of Agriculture.
     Department of Energy, particularly the Office of 
Energy Efficiency and Renewable Energy.
     Department of the Interior, particularly the 
Bureau of Land Management and Minerals Management Service.
     Department of Labor, particularly the Occupation 
Safety and Health Administration.
     Department of Homeland Security, particularly the 
Transportation Security Administration.
     Department of Transportation, particularly the 
Federal Aviation Administration and Federal Motor Carrier 
Safety Administration.
     Environmental Protection Agency.
     Federal Communications Commission.
     Federal Financial Institutions Examination Council 
and its constituent agencies.
     Food and Drug Administration.
     Office of Federal Procurement Policy.
     Securities and Exchange Commission.
    The Committee will identify specific rules and regulations 
already issued or at the proposed rule stage to assess the 
impact on small businesses. The Committee will pay close 
attention to the effect that regulations have on the 
implementation of advanced technologies including, but not 
limited to, the deployment of broadband communications (either 
by wireline or wireless services) throughout the United States. 
Oversight of the regulatory process also will, to the extent 
relevant, examine the work of the Office of Information and 
Regulatory Affairs at the Office of Management and Budget. 
Special attention will be paid to the work performed by the 
Chief Counsel for Advocacy at the United States Small Business 
Administration to ensure that Office is fulfilling its mission 
to advocate vigorously on behalf of America's small business 
owners in regulatory matters at federal agencies. Finally, this 
oversight will entail an examination of compliance by federal 
agencies with amendments to Executive Order 12,866 and 
memoranda on regulatory flexibility and regulatory compliance 
issued by the President on January 18, 2011 and still in effect 
as of the approval of this Oversight Plan.

Oversight of Federal Tax Policy

    The Committee will conduct hearings and investigations into 
the federal tax code, its impact on small business, and 
Internal Revenue Service's (IRS) collection of taxes that may 
include any or all of the following, as well as matters brought 
to the attention of the Committee subsequent to the filing of 
this Report:
     Identification of tax code provisions that hinder 
the ability of small businesses to create jobs and 
recommendations for modifying those provisions to boost small 
business job growth.
     Examination of the structure of the tax code in 
order to simplify compliance for small businesses.
     Assessment of the recordkeeping and reporting 
requirements associated with tax compliance and suggestions for 
reducing such burdens on small businesses.
     Evaluation of the estate tax provisions to 
determine whether they inhibit the ability of successive 
generations to maintain successful job creating enterprises.
     Efficiencies at the IRS that improve the 
interaction between the government and small business owners.
     Inefficiencies at the IRS that force small 
businesses to divert capital from job growth to tax compliance.

Oversight of Health Care Policy

    The Committee will conduct hearings and investigations into 
federal health care policy (such as Medicare and Medicaid) and 
the continued implementation of the Patient Protection and 
Affordable Care Act that may include any or all of the 
following, as well as matters brought to the attention of the 
Committee subsequent to the filing of this Report:
     The cost of the Patient Protection and Affordable 
Care Act to small businesses, including the self-employed.
     The impact of the Patient Protection and 
Affordable Care Act, Medicare and Medicaid on the ability of 
physicians, pharmacists, and allied health care providers to 
offer the best care possible to patients.
     The impact of state tort and insurance laws on the 
cost of medical care.
     Examination of increases in efficiencies that will 
improve the provision of health care while reducing costs to 
small businesses that offer their workers health insurance.

Oversight of Energy Policy

    The Committee will conduct hearings and investigations into 
energy policy to reduce the cost of energy and increase energy 
independence that may include any or all of the following, as 
well as matters brought to the attention of the Committee 
subsequent to the filing of this Report:
     Innovations developed by small businesses that 
create greater energy independence.
     Federal regulatory policies that increase 
dependence on foreign sources of energy.
     Policies needed to incentivize production of 
energy in the United States.
     Examination of commercialization of research in 
renewable energy.
     Federal regulations or policies that increase 
energy costs for small businesses.
    The primary thrust of the Committee's efforts will focus on 
efforts to use the innovation of America's entrepreneurs to 
fuel the drive for greater energy independence.

Oversight of Trade and Intellectual Property Policy

    The Committee will conduct hearings and investigations into 
international trade and intellectual property policies of 
America and its trading partners that may include any or all of 
the following, as well as matters brought to the attention of 
the Committee subsequent to the filing of this Report:
     Impact of free trade agreements to increase 
exports by American small businesses.
     Whether the federal government is doing enough to 
protect the intellectual property rights of small businesses by 
foreign competitors.
     The impact of federal intellectual property 
policies, particularly patents and copyrights, to protect the 
innovations of American entrepreneurs.
     Efforts to increase exports by small businesses.
    The focus of oversight will emphasize the best mechanisms 
to promote and protect advanced technology innovations of small 
businesses.

Reductions in Programs and Spending

    In addition to the programs and policies already cited, the 
Committee will examine any and all offices and programs that 
fall within the Committee's legislative jurisdiction to find 
areas that could lead to reduction in the federal deficit. Some 
programs and offices may include:
     State Small Business Credit Initiative operated by 
Department of Treasury.
     Patriot Express Loan Program overseen by the SBA.
     Express Loan Program overseen by SBA.
     Emerging Leaders Initiative started by SBA.
     Clusters Program initiated by the SBA.
     Innovation and Impact Fund Pilot Programs operated 
by the SBA.
     Drug-Free Workplace Program.
     SBA Office of Policy.
     SBA Regional Administrators.
     Office of Advocacy Regional Advocates.
     SBA Deputy District Directors.
     SBA Office of International Trade.
     SBA Office of Native American Affairs.
    In particular, the Committee will assess whether 
reorganization and reassignment of employees to more critical 
functions at the SBA, such as positions as procurement center 
representatives, will provide a more effective agency at 
assisting small businesses generate growth.

                               SUBPART B


Implementation of the Oversight Plan of the Committee on Small Business 
                for the One Hundred Thirteenth Congress


Sec. A. Oversight of Federal Capital Access Programs

    In preparation of views and estimates, the Committee 
analyzed SBA programs devoted to providing access to capital to 
small businesses. The views and estimate letter adopted on 
February 27, 2013 enabled the Committee to outline its concerns 
with and proposals for improving the programs devoted to small 
business financing, including the 7(a) Loan Program, the 
Certified Development Company Loan Program, the Microloan 
Program, the Small Business Investment Company Program, the 
Surety Bond Program and the Disaster Loan Program. As part of 
its review, the Committee continues to monitor the progress of 
the modernization of the SBA's Loan Management Accounting 
System.
    The hearings held on the SBA's capital access programs were 
described in Subpart A, supra. For purposes of brevity, those 
descriptions will not repastinated here.
    The Subcommittee on Investigations, Oversight and 
Regulations examined the implementation of the JOBS Act in 
three hearings: April 20, 2013; June 6, 2013; and September 23, 
2013. Full descriptions of those hearings can be found in Part 
B, supra. Those hearings focused on how proper implementation 
of the JOBS Act will reduce regulation of small businesses 
trying to raise capital.
    The Chairman and Rep. Coffman (R-CO) also requested that 
GAO determine whether the SBA has the procedures and policies 
in place to ensure that its lending partners comply with the 
requirements for issuing guaranteed loans under the Small 
Business Act and Small Business Investment Act of 1958. A 
commitment letter on this matter was received on August 20, 
2013 with an expected report in late January or February of 
2014.
    The Committee has requested thousands of pages of documents 
concerning the processes and procedures by which the SBA 
reviews franchise agreements. This review process ultimately 
determines whether a franchisor is affiliated with a franchise 
and thus estopping the franchisee from obtaining a guaranteed 
loan.
    Finally, the Committee has been involved in oversight of 
the licensing process for Small Business Investment Companies 
(SBICs). The process has not had an appropriate regulatory 
regime since the mid-1980s and the agency no longer follows 
that process. Pursuant to Committee investigations and 
requests, the agency has developed new procedures for issuing 
licenses for SBICs and the agency assessed the costs of these 
on potential SBIC licensees.

Sec. B. Oversight of SBA and Other Entrepreneurial Development Programs

    As part of the process for submitting views and estimates 
to the Committee on the Budget, the Committee assessed the 
various entrepreneurial development programs and made 
recommendations to eliminate those that the Committee believes 
are duplicative or mirror services provided by the private 
sector. The conclusions set out in the views and estimates 
letter were subsequently confirmed in the hearings described in 
Part C, supra.
    The Committee filed comments with the SBA concerning the 
amount and form of information required to be submitted to the 
agency by its entrepreneurial training partners. The Committee 
is considering further actions, including contact with the 
Office of Information and Regulatory Affairs on whether it is 
appropriate to approve the information collection in the format 
submitted by the SBA.
    Finally, the Chairman, in conjunction with the Ranking 
Member of the Senate Committee on Small Business and 
Entrepreneurship, Sen. Risch (R-ID), requested GAO to review 
the SBA's cosponsorship authority (the mechanism by which the 
SBA often funds various training and outreach events). GAO 
provided the requesters a commitment letter on September 9, 
2013 to investigate whether the events organized through this 
cosponsorship authority have political overtones and are 
considered useful by small business attendees.

Sec. C. Oversight of Federal Government Contracting Matters

    The four hearings on federal procurement and its impact on 
small businesses, including programs overseen by the SBA, are 
described in Parts B and C, supra, of this report and those 
descriptions will not be reiterated here. While hearings are 
useful in conducting oversight of federal procurement 
activities, the technical nature of the procurement process 
requires that oversight be conducted outside the formal hearing 
process. Those activities are described below.
    The Committee, based on information from whistleblowers, 
initiated an investigation on January 22, 2013 of the 
Department of Health and Human Services (HHS) retaliation by a 
contracting officer. After request for documents and meetings, 
the Department reassigned the individual and revised the 
methodology for awarding task order contracts. The Committee 
continues to monitor the situation at that agency. The 
Committee also requested documents from the Department of 
Justice about investigations into contracts awarded by HHS. The 
Committee staff continues to review those documents.
    In a letter to the General Services Administration (GSA) on 
February 7, 2013, the Chairman questioned why small businesses 
were not getting paid monies owed them under the federal supply 
schedule contracts. This resulted in GSA agreeing to correct 
this oversight in a letter on May 6, 2013.
    Subcommittee Chairmen Hanna (R-NY) and Collins (R-NY) 
launched an examination on March 14, 2013 of the Department of 
Veterans Affairs' (DVA) procedures for issuing construction 
contracts. The Committee continues to monitor the situation, 
including the Department's promise to reexamine the procedures 
for award of such contracts.
    In a series of letters during the spring of 2013, Chairman 
Graves, Subcommittee Chairman Hanna, and Rep. Coffman (R-CO) 
sent letters to DVA and all other federal agencies inquiring 
about compliance with changes in the Offices of Small and 
Disadvantaged Business Utilization necessitated by amendments 
to the Small Business Act. The Committee continues to monitor 
the implementation of these amendments to the Small Business 
Act, especially at the DVA, which specifically has rejected 
structural changes that the Committee believes are necessary to 
comply with the Small Business Act.
    On November 27, 2013, Chairman Graves requested documents 
from the SBA concerning the agency's compliance with various 
Small Business Act contracting programs--programs that the SBA 
is responsible for implementing. The Committee will review 
those documents to determine what additional actions are 
necessary to ensure that the SBA complies with its own organic 
statute.
    Finally, Chairman Graves sent a letter to GAO asking that 
he become a co-requester on a study of reverse auctions. A 
joint hearing was held on the GAO report by the Subcommittee on 
Contracting and Workforce of the Committee on Small Business 
and the Subcommittee Committee on Oversight and Investigations 
of the Committee on Veterans' Affairs.

Sec. D. Oversight of SBA Management

    The Committee continues to oversee the management of the 
SBA through hearings, meetings with agency personnel, and 
industry representatives. The hearings held by the Committee 
and its various subcommittees concerning the management of the 
SBA were described in Parts A, B, and C, supra, and their 
descriptions will not be repeated here. In addition, hearings 
and other Committee activities on other topics, such as the 
SBA's financial and contracting programs, also implicate the 
overall management of the agency and the reader is directed to 
review those descriptions set out elsewhere in this report, 
including various sections of Subpart B of Part D.

Sec. E. Oversight of Federal Regulatory and Paperwork Burdens

    In 2013, the Committee held three hearings (May 8, July 24, 
and August 21) and various subcommittees held nine hearings 
(March 14, April 11, June 6, June 12, June 27, July 18, 
November 21, December 3, and December 5) on the burdens of 
federal regulation on small businesses. Those hearings are 
described in Parts A and B, supra and their descriptions will 
not be repeated here.
    The Committee also took an active role in overseeing how 
federal agencies developed regulations in order to ensure that 
those rules do not impose undue burdens on small businesses. On 
February 26, 2013, Chairman Graves submitted a letter to the 
Federal Communications Commission (FCC) requesting an extension 
of the comment period on rules affecting aviation communication 
in order to allow small businesses to provide adequate comments 
on how changes will affect general aviation. The Chairman, in 
conjunction with the Chairman of the Committee on Education and 
Workforce, on July 11, 2013 requested documents related to the 
Department of Labor's decision to change the applicability of 
the Davis-Bacon Act to survey crews; those documents were 
received and staff is reviewing them to determine appropriate 
subsequent actions. An August 1, 2013 letter from the Chairman 
to the Administrator of the Environmental Protection Agency 
(EPA), the Hon. Gina McCarthy, asserted that the agency's 
certification that a proposed rule to revise the standards for 
underground storage tanks would not have a significant economic 
impact on a substantial number of small entities was incorrect. 
Auctions of spectrum by the FCC must be available to small 
businesses pursuant to 309(j) of the Communications Act of 1934 
and staff requested, on July 9, 2013, the spectrum purchased by 
small businesses in auctions. Committee staff requested 
information, on September 21, 2013, from the FCC about its 
efforts to ameliorate regulatory burdens on small carriers 
associated with revisions to the Universal Service Fund. 
Concerns about the impact on small businesses of an 
Occupational and Safety Health Administration proposed rule to 
reduce exposure limits on respirable crystalline silica 
resulted in a letter by Chairman Graves on October 24, 2013 
requesting that the agency extend the comment period to permit 
small businesses sufficient time to review the complex proposal 
and update data originally obtained by the agency from a small 
business panel in 2003; an extension of 47 days was granted on 
November 12, 2013.
    The Committee also performed extensive regulatory oversight 
on the implementation of the Patient Protection and Affordable 
Care Act (PPACA). Those activities will be discussed in section 
G, infra.

Sec. F. Oversight of Federal Tax Policy

    The Committee held three hearings on federal tax policy. 
Those hearings (April 10, 2013, July 17, 2013, and October 2, 
2013) are described in detail in Part A, supra, and the reader 
is directed to that part of this report.
    Having heard from small businesses about the Internal 
Revenue Service's (IRS or Service) audit selection policy, the 
Committee initiated a multi-pronged examination. On May 31, 
2013, Chairman Graves requested data from the Service on small 
business audits and the process for identifying small 
businesses that would undergo audits. Subsequent to the 
response from the IRS, the Committee held a hearing with Acting 
Commissioner Werfel on July 17, 2013 that is described 
elsewhere in this report. The hearing led to subsequent 
inquiries to the Service on small business audit selection. The 
Committee continues to meet with the IRS and monitor any 
changes in the procedures used to select small businesses for 
audit.
    Chairman Graves sent a letter on August 9, 2013 to the 
Service's Commissioner for Small Business and Self-Employed 
concerning the reporting requirements imposed on small 
merchants to implement 6050W of the Internal Revenue Code. In 
response, the IRS contends that it is working to minimize 
impacts on small businesses and the Committee continues to 
monitor the Service's actions to ensure that implementation of 
6050W.
    In an August 30, 2013, letter to Acting Commissioner 
Werfel, Chairman Graves inquired about the Service's potential 
implementation of a real-time tax system. The Service responded 
that it had no intention to implement such a system. The 
Committee continues to monitor any effort by the IRS to 
implement a real-time tax system.
    Finally, Chairman Graves requested a study by GAO of the 
compliance burdens faced by small businesses. A commitment 
letter from GAO was received on July 2, 2013 with an expected 
report late in 2014.

Sec. G. Oversight of Health Care Policy

    A total of six hearings were held by the Committee (April 
17, 2013, December 4, 2013, and December 11, 2013) and its 
subcommittees (May 9, 2013, October 9, 2013, and November 14, 
2013) to review the implementation of the PPACA. Those hearings 
are described in Parts A and B, infra, and those descriptions, 
for the sake of brevity, will not be reiterated here.
    In addition to the hearings, Committee members took other 
opportunities to express the potential consequences on small 
businesses of the PPACA. On February 1, 2013, Chairman Graves 
sent a comment letter to Secretary Geithner in response to the 
Department of Treasury's proposed rule on the implementation of 
the employer mandate. A letter dated March 27, 2013 from 
Chairman Graves to the Hon. Marilyn Tavenner, Administrator of 
the Centers for Medicare and Medicaid Services, raised concerns 
about delays in the establishment of exchanges that small 
businesses will utilize to purchase insurance for their 
employees. Chairman Graves submitted a letter to Secretary 
Sebelius on April 18, 2013 reporting the results of the 
Committee's April 17, 2013 hearing. Subcommittee Chairman 
Collins sent a letter to Acting IRS Commissioner Werfel 
summarizing the testimony from the May 9, 2013 hearing on the 
impact of the health insurers' tax on small business. In 
response to concerns from small businesses, Chairman Graves 
wrote to the IRS on September 6, 2013 to express significant 
reservations about the Service's interpretation of the business 
aggregation rules and how that will affect small business 
compliance with PPACA; the Committee continues to monitor this 
situation.
    Finally, Chairman Graves requested GAO to conduct multiple 
studies of the small business exchanges authorized under PPACA. 
The first study on the readiness of the exchanges was released 
on June 19, 2013. The second study, assessing the ongoing 
implementation issues of the exchanges will be released 
sometime in 2014.

Sec. H. Oversight of Energy Policy

    The Committee's oversight efforts on energy policy occurred 
in two subcommittee hearings held on May 16, 2013 and June 20, 
2013. Readers are directed to the summaries of those hearings 
contained in Part B, supra.

Sec. I. Oversight of Trade and Intellectual Property Policy

    There were two full Committee hearings that addressed 
issued of international trade--June 19, 2013 and July 26, 2013. 
The subcommittees also held two hearings on export and import 
policies--February 28, 2013 and July 9, 2013. Two hearings were 
held on intellectual property; one in the full Committee on May 
15, 2013 and one in a subcommittee held on March 21, 2013. The 
topics and testimony of the hearings are limned fully in Parts 
A and B, supra.
    In addition to hearings, other activities were used to 
conduct oversight of United States trade and intellectual 
property policy. On February 12, 2013, the Committee informally 
requested information from the International Trade 
Administration of the United States Department of Commerce on 
that agency's reorganization and its impact on small business 
exporters. Subcommittee Chairman Collins (R-NY) and Rep. Hahn 
(D-CA) sent a letter, dated April 4, 2013, to the SBA and the 
Department of Homeland Security requesting information about 
how those agencies are educating small businesses to protect 
against cyber-attacks. On May 17, 2013, Chairman Graves and 
Rep. Tipton (R-CO) requested information on the interaction 
with small businesses from the United States Bureau of Industry 
and Security and the SBA concerning the implementation of the 
President's Export Control Reform Initiative. Finally, on 
December 5, 2013, the Committee informally requested 
information from the SBA's Office of International Trade on the 
following issues: implementation of the State Trade and Export 
Promotion Program; status of the SBA and Export-Import Bank 
financing partnership; and efforts to reduce duplication in 
international trade training programs.

Sec. J. Reductions in Programs and Spending

    On February 27, 2013, the Committee on Small Business 
reported out its views and estimates. In that letter, the 
Committee recommended that the SBA improve recoveries on 
defaulted loans (which would reduce appropriated funds to cover 
the cost of its guaranteed loan programs). Given the problems 
with the modernization of the loan management accounting system 
as noted elsewhere in this report, the Committee urged no funds 
for additional milestones be allocated until existing projects 
related to the modernization are completed. The Committee's 
views and estimates contained a recommendation that the SBA's 
entrepreneurial efforts be rationalized to reduce duplication. 
This was strongly reiterated by Committee members in the 
hearing with the Administrator on April 24, 2013. The ability 
of the Committee to make specific dollar recommendations were 
hindered by the President's failure to meet the deadline for 
submitting a budget to Congress.
                           REGULATORY REVIEW

  Legislative and Oversight Activity Related to Regulations, Orders, 
 Administrative Actions and Procedures by Federal Agencies Within the 
           Jurisdiction of the Committee on Small Business\1\
---------------------------------------------------------------------------

    \1\Under House rule X, the Committee on Small Business has 
jurisdiction over the protection of small business including 
``regulatory flexibility,'' as well as jurisdiction over the 
participation of small businesses in government contracts.

------------------------------------------------------------------------
                                              Oversight and legislative
 Regulation, order, administrative action             activity
------------------------------------------------------------------------
The Internal Revenue Service (IRS)          On February 1, 2013,
 proposed rule (78 Fed. Reg. 218)            Chairman Graves sent a
 implementing the employer mandate under     letter to Treasury
 the Patient Protection and Affordable       Secretary Geithner
 Care Act (P.L. 111-148).                    expressing concerns with
                                             the employer mandate rule,
                                             including various
                                             definitions in the rule and
                                             the burdens of compliance
                                             to small businesses. The
                                             Committee held a hearing on
                                             April 17, 2013 to examine
                                             the implementation of the
                                             Patient Protection and
                                             Affordable Care Act and the
                                             experience of small
                                             businesses under the law,
                                             specifically related to
                                             their ability to provide
                                             benefits to their employees
                                             and the effect of the
                                             employer mandate for those
                                             companies with 50 or more
                                             employees. The hearing was
                                             followed by a letter from
                                             Chairman Graves to Health
                                             and Human Services
                                             Secretary Sebelius on April
                                             18, 2013, regarding the use
                                             of 30 hours per week of
                                             work to define a full-time
                                             employee. Further, the
                                             Subcommittee on Health and
                                             Technology held a hearing
                                             on October 9, 2013 related
                                             to the definition of a full-
                                             time employee for purposes
                                             of complying with the
                                             employer mandate.
The Federal Communications Commission       On February 26, 2013,
 (FCC) proposed rule regarding aviation      Chairman Graves sent a
 communications (78 Fed. Reg. 6276).         letter to FCC Commissioner
                                             Genachowski describing his
                                             concerns about the effect
                                             of a rule related to use of
                                             certain Emergency Locator
                                             Transmitters on the general
                                             aviation community.
IRS notice (2011-1) related to non-         Chairman Graves sent a
 discrimination provisions of the Patient    letter to Treasury
 Protection and Affordable Care Act (P.L.    Secretary Lew and Acting
 111-148).                                   IRS Commissioner Miller on
                                             March 5, 2013 expressing
                                             his concerns with the
                                             effect of the non-
                                             discrimination provisions
                                             on the health plans many
                                             small businesses currently
                                             hold.
Agency compliance with the Regulatory       On March 14, 2013, the
 Flexibility Act (5 U.S.C. Sec. Sec. 601-    Subcommittee on
 12).                                        Investigations, Oversight
                                             and Regulations held a
                                             hearing to examine agency
                                             compliance with the RFA. On
                                             September 18, 2012, the
                                             Committee marked up and
                                             favorably reported
                                             legislation (H.R. 2542) to
                                             strengthen the RFA and
                                             close the loopholes used by
                                             agencies to avoid
                                             meaningful compliance with
                                             the law.
The Department of Health and Human          On March 27, 2013, Chairman
 Services (HHS) rules (78 Fed. Reg.          Graves sent a letter to CMS
 33,233, 78 Fed. Reg. 15,553) on the         Administrator Tavenner to
 establishment of the Small Business         comment on the proposed
 Health Options Program (SHOP) under the     rule and delay of the SHOPs
 Patient Protection and Affordable Care      operation. On June 19,
 Act (P.L. 111-148).                         2013, GAO issued a report
                                             requested by Chairman
                                             Graves suggesting that
                                             missed deadlines and delays
                                             by the Administration would
                                             likely adversely affect the
                                             implementation of the SHOPs
                                             in October. Another study
                                             of the SHOPs will by GAO
                                             will be finished in 2014.
                                             After the Administration
                                             announced several delays of
                                             the program, Chairman
                                             Graves sent a letter to
                                             Secretary Sebelius on
                                             October 31, 2013 requesting
                                             more explanation. Finally,
                                             the Committee held a
                                             hearing on the SHOPs
                                             implementation on December
                                             11, 2013, where CMS Deputy
                                             Administrator and Director
                                             Cohen testified.
Security and Exchange Commission (SEC)      On April 11, 2013, the
 rulemaking required by the Jumpstart Our    Subcommittee on
 Business Startups (JOBS) Act (P.L. 112-     Investigations, Oversight
 106), including the proposed rule           and Regulations held a
 eliminating the prohibition against         hearing to receive an
 general solicitation and general            update from the SEC on the
 advertising (77 Fed. Reg. 54,464).          status of rules to
                                             implement the JOBS Act. On
                                             September 23, 2013, the
                                             Subcommittee on
                                             Investigations, Oversight
                                             and Regulations held a
                                             field hearing in Arizona to
                                             examine the ability of
                                             small businesses to access
                                             capital and the need for
                                             SEC issuance of rules to
                                             implement the JOBS Act.
Agency compliance with changes to the       On April 16, 2012, Chairman
 organization and duties of the Offices of   Graves sent letters to 34
 Small and Disadvantaged Business            departments and agencies
 Utilization (OSDBU) made by the National    with an OSDBU to ensure
 Defense Authorization Act (NDAA) of 2013    compliance with the changes
 (P.L. 112-239).                             in the NDAA.
Departments of Treasury, Health and Human   The Committee held a hearing
 Services, and Labor interim final rule on   on April 17, 2013 to
 the ability to keep existing health         examine the implementation
 insurance coverage (75 Fed. Reg. 34,537)    of the Patient Protection
 under the Patient Protection and            and Affordable Care Act and
 Affordable Care Act (P.L. 111-148).         the experience of small
                                             businesses under the law,
                                             specifically related to
                                             their ability to continue
                                             to provide benefits to
                                             their employees.
Executive Order directing agencies to       The Committee held a hearing
 implement a plan to retrospectively         on May 8, 2013 to examine
 review regulations (E.O. 13,563) and        whether agency compliance
 Executive Order regarding public            with E.O. 13,563 and E.O.
 participation, guidance on                  13,610 has reduced the
 prioritization, and schedule for agencies   regulatory burden on small
 to report on retrospective review efforts   businesses. The Committee
 (E.O. 13,610).                              held a subsequent hearing
                                             on July 24, 2013 with
                                             Administrator Shelanski of
                                             the Office of Information
                                             and Regulatory Affairs to
                                             gain his perspective on the
                                             implementation and
                                             effectiveness of these
                                             executive orders in
                                             achieving their purpose.
                                             The Chairman also wrote to
                                             the Small Business
                                             Administration (SBA) to
                                             follow up on testimony
                                             provided during a July 25,
                                             2013 hearing on the Small
                                             Business Investment Company
                                             (SBIC) program. The letter
                                             inquired about compliance
                                             with E.O. 13,563 in
                                             crafting a standard
                                             operating procedure for
                                             SBICs that comprises an
                                             interpretive regulation.
IRS proposed rule on health insurance       The Subcommittee on Health
 reporting and recordkeeping requirements    and Technology held a
 and the annual fee imposed on businesses    hearing on May 9, 2013 on
 providing health insurance (78 Fed. Reg.    the impact of the health
 14,034).                                    insurance fee on small
                                             businesses. The same day,
                                             Chairman Collins sent a
                                             letter to the IRS
                                             summarizing the findings of
                                             the hearing and expressing
                                             concerns with the impact of
                                             the fee.
Department of State draft supplemental      On May 16, 2013, the
 environmental impact statement (SEIS) for   Subcommittee on
 the Keystone XL Pipeline.                   Agriculture, Energy and
                                             Trade held a hearing on the
                                             impact of the construction
                                             of the Keystone XL Pipeline
                                             on small businesses and job
                                             creation.
Bureau of Industry and Security (BIS)       On May 17, 2013, Chairmen
 regulations to implement export control     Graves and Tipton wrote a
 reform (78 Fed. Reg. 22,660).               letter to BIS Under
                                             Secretary Hirschhorn to
                                             inquire about outreach to
                                             small firms in writing
                                             rules to update the export
                                             administration regulations,
                                             as well as efforts to
                                             coordinate with other
                                             agencies and the timelines
                                             that may affect small
                                             business compliance.
Departments of Labor and Homeland Security  The Subcommittee on Economic
 rules to change the prevailing wage         Growth, Tax and Capital
 calculation methodology for the H-2B        Access held a hearing on
 program (76 Fed. Reg. 3452, 78 Fed. Reg.    June 12, 2013, to determine
 24,047).                                    the impact of H-2B visa
                                             policy on the employment
                                             practices of small
                                             businesses in the tourism
                                             industry.
Office of Management and Budget (OMB)       On June 13, 2013, the
 memorandum, dated December 5, 2012, to      Subcommittee on Contracting
 the heads of executive departments and      and Workforce held a
 agencies regarding revisions to the         hearing to determine the
 Federal Strategic Sourcing Initiative.      effect of the use of
                                             strategic sourcing on small
                                             businesses and competition
                                             in government procurement.
Food and Drug Administration (FDA) draft    The Subcommittee on Health
 guidance on the regulation of mobile        and Technology held a
 medical applications (apps) published       hearing on June 27, 2013
 July 21, 2011, and Department of Treasury   regarding the challenges
 rule implementing the tax on medical        facing mobile medical app
 devices (77 Fed. Reg. 72,924).              entrepreneurs, specifically
                                             related to regulatory
                                             burdens.
Department of Labor (DOL) guidance letter   Chairman Graves joined
 and all agency memorandum (AMA) No. 212     Committee on Education and
 applying the Davis-Bacon Act to survey      Workforce Chairman Kline
 technicians.                                and Subcommittee Chairman
                                             Walberg in signing a letter
                                             on July 11, 2013 to Acting
                                             Deputy Administrator
                                             Maxwell at DOL's Wage and
                                             Hour Division regarding
                                             changes to longstanding
                                             policies affecting survey
                                             crews and requesting
                                             documents related to the
                                             decision.
The President's Climate Action Plan,        On July 18, 2103, the
 published June 2013, directing the          Subcommittee on
 Environmental Protection Agency to          Agriculture, Energy and
 expeditiously complete carbon pollution     Trade held a hearing on the
 standards for new and existing power        President's Climate Action
 plants.                                     Plan to determine its
                                             effect on small businesses.
Environmental Protection Agency (EPA)       On August 1, 2013, Chairman
 revisions to requirements for the           Graves sent a letter to EPA
 underground storage tank program (76 Fed.   Administrator McCarthy
 Reg. 71,708).                               asking that the rule be
                                             withdrawn, a Small Business
                                             Advocacy Review panel be
                                             convened, and an initial
                                             regulatory flexibility
                                             analysis prepared.
IRS 1099 Third Party Reporting Notices to   On August 9, 2013, Chairman
 implement Sec. 28 U.S.C. 6050W.             Graves sent a letter to the
                                             IRS Commissioner for Small
                                             Business and Self-Employed
                                             expressing concerns related
                                             to the notices small
                                             businesses received
                                             informing them of potential
                                             underreporting of income.
                                             The Committee staff also
                                             held a meeting with IRS
                                             officials on the matter
                                             (November 18, 2013).
SBA proposed changes to the                 Chairman Graves sent a
 Entrepreneurial Development Information     letter to the SBA on
 System (EDMIS) customer intake form,        September 5, 2013,
 commonly referred to as Form 641.           expressing his concerns
                                             with the additional burdens
                                             the new form would impose
                                             on small businesses.
Application of IRS business aggregation     On September 6, 2013,
 rules under the Patient Protection and      Chairman Graves sent a
 Affordable Care Act (P.L. 111-148).         letter to the IRS Acting
                                             Commissioner Werfel asking
                                             for guidance on how the
                                             business aggregation rules
                                             will apply under the health
                                             care law since they affect
                                             the ability of small
                                             businesses to comply with
                                             the employer mandate, among
                                             other provisions.
The issuance of size standards by the SBA   On September 12, 2013,
 in compliance with the Small Business       Chairman Hanna convened a
 Jobs Act of 2010 (P.L. 111-240) and the     roundtable with SBA
 NDAA (P.L. 112-239).                        participants and members of
                                             the Subcommittee to discuss
                                             the SBA's size standards
                                             program, including
                                             implementation of recent
                                             legislative changes.
Occupational Health and Safety              On October 24, 2013,
 Administration (OSHA) proposed rule on      Chairman Graves sent a
 worker exposure to crystalline silica (78   letter to the DOL Assistant
 Fed. Reg. 56,274).                          Secretary for Occupational
                                             Safety and Health
                                             requesting that the public
                                             comment period be extended
                                             to give adequate time for
                                             small businesses to digest
                                             and provide input on the
                                             rule. Subsequently, the
                                             comment period was extended
                                             by 47 days.
Federal Motor Carrier Safety                On November 21, 2013, the
 Administration (FMSCA) final rule on        Subcommittee on Contracting
 hours of service regulations (76 Fed.       and the Workforce held a
 Reg. 81,134).                               hearing to examine the
                                             regulatory burden on
                                             independent truckers, small
                                             trucking businesses and
                                             related industries under
                                             the new standards created
                                             by FMSCA's final rule on
                                             hours of service.
Agency use of ``reverse auctions'' in the   On December 11, 2013, the
 procurement of goods and services,          Subcommittee on Contracting
 including the Department of Veterans        and Workforce held a joint
 Affairs guidance on the practice, titled    hearing with the Committee
 ``Updated Policy and Procedures for Using   on Veterans' Affairs
 Reverse Auctions'' (VAIQ 7220215).          Subcommittee on Oversight
                                             and Investigations to
                                             examine the consequences of
                                             utilizing reverse auctions
                                             on cost and competition in
                                             the federal acquisition
                                             marketplace. Chairman Hanna
                                             introduced legislation
                                             (H.R. 2751) to limit the
                                             use of reverse auctions.
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