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Small Business Committee Newsletter Printer Friendly Version
Small Business Committee Notes
Friday, July 14, 2006 Printer Friendly Version
Small Business Committee Notes July 14, 2006 -- Issue 109-50 Phil Eskeland, Policy Director, House Committee on Small Business _______________________________ Chairman Manzullo: New SBA Administrator will Help Small Business Thrive, Create Jobs for Americans On Tuesday, July 1, House Small Business Committee Chairman Donald Manzullo (R-IL) issued the following statement congratulating Steven Preston of Illinois, who was sworn into office Monday as the new Administrator of the U.S. Small Business Administration: STATEMENT “Steve Preston is a natural leader who will meet and exceed the many challenges he will encounter at the helm of the SBA. His vast experience in executive leadership and financial management will help him successfully administer the SBA’s many small business finance and disaster assistance programs and ensure America’s small businesses continue to get their share of government contracts. I look forward to working with Administrator Preston to continue our mission to help small businesses thrive and create jobs for Americans.” _______________________________ RR&O Subcommittee Hearing on the Status of Reforming Manufacturing Regulations On Thursday, July 13, the Subcommittee on Regulatory Reform & Oversight, chaired by Representative Todd Akin (R-MO), held a hearing to get an update on the status of the Bush Administration’s efforts to repeal or amend 76 different federal regulations affecting the manufacturing sector. Below is a copy of Chairman Akin’s opening statement: “The well-being of U.S. manufacturers is of vital concern to this subcommittee and to Congress as a whole. America’s manufacturing base constitutes roughly 12 percent of the Gross Domestic Product (GDP) of the United States economy, which has slowly decreased in recent years. About 95 percent of all U.S. manufacturers are small or medium-sized enterprises. Small U.S. manufacturers in particular have faced fierce global competition in recent years. Much of this competition comes from countries that have minimal or no regulatory compliance cost. The Administration has recognized that by reducing unnecessary regulatory burden, it also bolsters the strategic competitive position of small U.S. manufacturers in the global marketplace. This has been exemplified through the solicitation of public nominations for regulatory reform by the Office of Management and Budget (OMB) in 2004. These nominations emphasized easing the regulatory burden of small and medium enterprises in the manufacturing sector. The independent Office of Advocacy at the Small Business Administration (SBA) and the manufacturing industry answered by delivering 189 nominations to the federal government for the reduction of unnecessary regulation through rulemaking. Ultimately, 76 nominations were selected to reform unnecessary regulatory burden in collaboration with the appropriate federal agencies. On April 28, 2005 this Subcommittee held a hearing entitled “The Administration’s Program to Reduce Unnecessary Regulatory Burden on Manufacturers – A Promise to be Kept?” At that hearing we heard testimony regarding the Administration’s timeline and commitment to reform the 76 burdensome regulations. Nearly 15 months have passed since we last addressed this important issue and this subcommittee seeks an update regarding the progress the Administration has made on these important reforms. We also hope to learn how the Administration’s regulatory review process has benefited by engaging in this collaborative effort. I look forward to learning more about how these regulatory reform initiatives are progressing and what more we can do to aid our nation’s manufacturers. For more information, please contact Chris Szymanski, Professional Staff. _______________________________ Senate Appropriations Committee Passes FY 07 CJS Appropriation Bill On Thursday, July 13, the Senate Appropriations Committee passed the Fiscal Year 2007 Commerce, Justice, Science (CJS) Appropriations bill (H.R. 5672). The House passed its version of H.R. 5672 last month (see SBC Notes 109-49). Included in this bill is $639 million for the Small Business Administration (SBA), which represents the same amount as the President’s FY 07 budget request and $3.8 million less than the House level. The Committee recommendation provides $303,550,000 for the salaries and expenses account. The recommendation is $5,481,000 above the fiscal year 2006 enacted level and the same as the budget request. Within the amount provided, full funding is recommended for the 8(a) program and the Office of Women’s Business Ownership. The Committee recommendation provides $122,990,000 for the SBA non-credit business assistance programs. The recommendation is $28,444,000 above the budget request. The Committee recommendations, by program are displayed in the following table: NON-CREDIT BUSINESS ASSISTANCE PROGRAMS [In thousands of dollars] ----------------------------------------------------------------------- Small Business Development Centers 89,000 Drug-free Workplace Grants 990 SCORE 5,000 Women’s Business Centers 12,500 Women’s Council 750 Microloan Technical Assistance 10,000 Veteran’s Business Development Assistance 750 Native American Outreach 1,000 PRIME Technical Assistance 1,000 HUBZones 2,000 Total, Non-credit Business Assistance Program 122,990 ----------------------------------------------------------------------- The recommendation provides $1,500,000 for the Small Disadvantaged Business Program, which is funded through reimbursements from interagency collections. The recommendation includes language providing for the continuation of the Women’s Business Centers sustainability centers and language providing that such centers shall receive 40 percent of the total funding provided for Women’s Business Centers. The Committee recommendation provides $14,355,000 for the Office of Inspector General. The recommendation is $633,000 above the fiscal year 2006 enacted level and the same as the budget request. The Committee recommendation provides $2,970,000 for the surety bond guarantees revolving fund. The recommendation is $146,000 above the fiscal year 2006 enacted level and the same as the budget request. For the administrative expenses in the business loan program account, the Committee recommendation provides $126,136,000. The recommendation is $1,147,000 above the fiscal year 2006 enacted level and the same as the budget request. The recommendation also provides $2,000,000 for the Microloan Direct program. The Senate Appropriations Committee provides the same level of budget authority for the main SBA access to capital programs as the President’s request and the House version -- $7.5 billion for the Certified Development Company (CDC) program; $17.5 billion for the 7(a) program; and $3 billion for the Small Business Investment Company (SBIC) debenture program. For the disaster loan program account, the Committee recommendation provides $198,990,000. The recommendation is $198,990,000 above the fiscal year 2006 enacted level, not including emergency supplemental appropriations, and the same as the budget request. Within the amount provided, $85,140,000 is for direct loan subsidies. Finally, the Committee recommendation provides $1,500,000 for the National Veterans’ Business Development Corporation [NVBDC]. The recommendation is $19,000 above the fiscal year 2006 funding level, $1,500,000 above the budget request, and $1 million over the House level. H.R. 5672 now awaits action before the full Senate. For further information, please contact Phil Eskeland, Policy Director. _______________________________ House Judiciary Committee Passes FPI Reform On Wednesday, July 12, the House Committee on the Judiciary favorably reported legislation (H.R. 2965) authored by Representative Pete Hoekstra (R-MI) and co-sponsored by House Small Business Committee Chairman Donald Manzullo (R-IL) that would reform the status of Federal Prison Industries (FPI) as a mandatory source for federal government contracting opportunities. FPI reform has long been a priority for the House Small Business Committee. H.R. 2965 passed by an overwhelmingly bipartisan voice vote.
“The long and continuous effort to level the playing field between FPI and private sector employers has again moved forward,” Representative Hoekstra said. “Fundamental reform will simply provide law-abiding workers and the firms that employ them with the opportunity to compete for federal contracts funded by their own tax dollars.”
The Federal Prison Industries Competition in Contracting Act of 2006 (H.R. 2965) now moves to the full House of Representatives for consideration. The bill passed by a bipartisan vote of 350 to 65 in 2003, but the full Senate failed to consider it after passing it through committee.
It importantly continues to include the alternative work and rehabilitative opportunities that are just as valuable in combating idleness and contributing to institution safety as prison labor. The Department of Justice’s own studies demonstrate that such programs are more effective in reducing recidivism.
“FPI’s mandatory source status enables it to simply take funds appropriated to its captive federal agency customers, whether for national defense, aviation or the administration of Medicare,” Representative Hoekstra said. “It is more likely than not that the federal agencies are not receiving the best product in the timeliest manner or at the best price in the noncompetitive environment in which it operates today.” For further information, please contact Nelson Crowther, General Counsel. _______________________________ House Veterans Affairs Committee Passes Veterans Small Business Act On Thursday, July 13, the House Committee on Veterans’ Affairs marked up and passed H.R. 3082, as amended, the Veterans Small Business and Memorial Affairs Act of 2006. Among other things, the bill would increase benefits for America’s veterans by establishing the annual contracting goals for Department of Veterans Affairs (VA) to include a greater number of veteran owned small businesses; clarifying the rules regarding contracts; prohibiting bonus payments to senior executives who do not meet veteran and disabled veteran contracting goals; and extending veteran business status to the spouses when the veteran dies. “I believe the additional tools we are providing to the VA should enable the department to easily meet its set aside goals for veteran businesses and I fully expect senior managers to meet those goals. If VA fails to meet the set aside goals for veteran and disabled veteran set aside goals, I will be happy to provide additional legislative incentives for the department,” said Veterans’ Affairs Committee Chairman Steve Buyer. “I am pleased that we will be able to assist veteran and disabled veteran business owners to improve their competitive position regarding VA contracts,” said Chairman Buyer. Several years ago, Congress passed P.L. 106-50 and P.L. 108-183 with the objective of improving the ability of veteran and disabled veteran businesses to compete for federal contracts. The federal government has not measured up to the requirements within these laws. The updated provisions will provide increased opportunity for veteran business owners. Some of the notable small business improvements that our veterans will benefit from within this bill include: Incentives for the VA to award more contracts to veteran and disabled veteran owned small businesses. Clarify veteran small business competition rules for contracts worth less than $5 million. Authorize continued status as a veteran or disabled veteran-owned small business by a surviving spouse for a period of 10 years following the death of the veteran or disabled veteran. Require annual performance reviews of senior VA procurement officials to include assessment of efforts to meet veteran contracting goals and prohibit award of performance bonuses to those senior officials whose organizations within VA do not meet veteran or disabled veteran-owned business contracting goals. The Veterans’ Affairs Committee expects to take H.R. 3082, as amended, to the floor the week of July 24, 2006. For more information, please contact Nelson Crowther, General Counsel. _______________________________ Issues in brief On Thursday, July 13, House Small Business Committee Chairman Donald Manzullo (R-IL), along with House Government Reform Committee Chairman Tom Davis (R-VA), and Representatives Danny Davis (D-IL) and Sue Kelly (R-NY) wrote a letter to the Chairman and ranking minority Member of the House Armed Services Committee expressing opposition to Section 1093 of the Senate Defense Authorization bill for Fiscal Year 2007, which would repeal the Competitiveness Demonstration program (Comp Demo), and asked for their assistance in removing the provision in conference. On Friday, July 14, House Small Business Committee Chairman Donald Manzullo (R-IL) wrote a letter to the Acting Administrator of the National Highway Traffic Safety Administration (NHTSA), Jacqueline Glassman, in support of a petition for rulemaking by the National Truck Equipment Association (NTEA). Current regulations implementing the Transportation Recall, Enhancement, Accountability and Documentation Act of 2000 (TREAD Act) require that all manufacturers of more than 500 motor vehicles report certain information to NHTSA. In response, NTEA filed a petition for rulemaking requesting that NHTSA establish new rules for the early warning report (EWR) system that authorizes scaled-down reports if the manufacturer produces less than 5,000 vehicles per year. This proposal would reduce the regulatory burden of small custom built vehicle manufacturers, mostly of trucks. _______________________________ Upcoming Events Thursday, July 20 10:00AM – the Subcommittee on Rural Enterprises, Agriculture & Technology and the Subcommittee on Tax, Finance & Exports joint hearing on Chinese barriers to trade. _________________________________ Past hearings/mark-ups/roundtables/meetings in 2006 February 1, 2006 – Tax, Finance & Exports (TF&E) and Rural Enterprises, Agriculture & Technology (REA&T) joint subcommittee hearing on “Transforming the Tax Code: An Examination of the President’s Tax Reform Panel Recommendations.” February 8, 2006 – Regulatory Reform & Oversight (RR&O) Subcommittee hearing on “The Internet Sales Tax: Headaches Ahead for Small Business?” March 2, 2006 – Workforce Empowerment & Government Programs (WE&GP) Subcommittee hearing on the “Oversight of the Small Business Administration’s Entrepreneurial Development Programs.” March 8, 2006 – TF&E Subcommittee hearing on the “Oversight of the Small Business Administration’s Finance Programs.” March 15, 2006 – REA&T Subcommittee hearing entitled, “The Missouri River and its Spring Rise: Science or Science Fiction?” March 15, 2006 – hearing on the Fiscal Year 2007 Budget and Reauthorization Proposals of the SBA. March 16, 2006 – RR&O Subcommittee hearing entitled, “The State of Small Business Security in a Cyber Economy.” March 30, 2006 – RR&O Subcommittee hearing on the “Procurement Assistance Programs of the SBA.” April 5, 2006 – hearing on “IRS Latest Enforcement: Is the Bulls-Eye on Small Businesses?” April 6, 2006 – RR&O Subcommittee hearing entitled “Can Small Healthcare Groups Feasibly Adopt Electronic Medical Records Technology?” April 26, 2006 – hearing on “Cutting Our Trade Deficit: Can the U.S. Muster Its Diverse Trade Promotion Operations to Make an Impact?” April 27, 2006 – WE&GP Subcommittee hearing on “Healthcare and Small Business: Proposals that will Help Lower Costs and Cover the Uninsured.” May 3, 2006 – REA&T Subcommittee hearing on “The Future of Rural Telecommunications: Is Universal Service Reform Needed?” May 3, 2006 – hearing on “What is the Proper Balance between Investor Protection and Capital Formation for Smaller Public Companies?” May 10, 2006 – hearing on “Bridging the Equity Gap: Examining the Access to Capital for Entrepreneurs Act of 2006.” May 23, 2006 – RR&O Subcommittee hearing on “Data Protection and the Consumer: Who Loses When Your Data Takes a Hike?” May 25, 2006 – REA&T Subcommittee hearing on “Unlocking Charitable Giving.” June 7, 2006 – hearing on “Contracting the Internet: Does ICANN Create a Barrier to Small Business? June 21, 2006 – Joint hearing with the Government Reform Committee on “Northern Lights and Procurement Plights: The Effect of the ANC Program on Federal Procurement and Alaska Native Corporations.” June 27, 2006 – RR&O Subcommittee hearing on “S Corporations: Their History and Challenges.” June 27, 2006 – WE&GP Subcommittee hearing on “Immigrant Employer Verification and Small Business.” June 28, 2006 – TF&E Subcommittee hearing on “The Effects of the High Cost of Natural Gas on Small Businesses and Future Energy Technologies.” July 13, 2006 – RR&O Subcommittee hearing on “An Update on Administration Action to Reduce Unnecessary Regulatory Burdens on America’s Small Manufacturers.” _____________________________ Small Business Website Check out the Small Business Committee website at http://www.house.gov/smbiz. The site includes regular updates on small business committee news. The site features special projects, press releases, hearings and scheduling information. _______________________________ Phil Eskeland Deputy Chief of Staff & Policy Director House Committee on Small Business Phil.Eskeland@mail.house.gov (202) 225-5821 To contact any staff member listed in the above newsletter, please use the general number for the House Small Business Committee – (202) 225-5821. Please E-mail me if you want to be removed from the mailing list or if you know of others who might be interested in receiving this publication. Mission Statement of the House Committee on Small Business "We promote the success of America’s small businesses by leveling the global economic playing field and reducing domestic burdens that impede their growth. In this spirit, we work to ensure that every branch of the U.S. government understands the critical role America’s small businesses play – both at home and abroad – including the jobs they create and the spirit of entrepreneurship they embody.”
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