controversial build namely the one that deals with increased ability of credit unions to work in low income areas and also some useful clean up of excessive regulation of the banks and that is one bill which i think  which is the one dealing with municipal bonds we have a long hearing on that and but it was in march and the bill itself was interesting last week and it's appropriate i think to give us a couple weeks to talk about it i do believe this very important we've heard from so hold off on that i think this is very important deals not primarily the rating agencies so this is something i intend to push we don't know whether it goes through all the way but i think it's very important that this let me close with the house but we will have a markup on that we come back we've developed some expertise nonetheless the bill was sent to us by front of it and let me be very clear once the bill came to us and it was passed out of foreign affairs with very little fuss and they just did it and sent it to us we began to hear from various people who were whispering well don't do this well do that a little different we became the place where some people said well it's ok when to find a first i reject the  emotional issue the difficulty if you it's an issue of conscience i don't think on this one that considerations of ideology or party about event i should only urge everybody to vote exactly as he or she wants to or thinks he or she has to do not always the same thing we will vote on bill tomorrow if people don't like the draft that we have before prepared and offer an amendment if you don't like the pill vote against it that's that's it sometimes i understand it's controversial and i understand that some members would like to be shielded from the controversy sometimes we can do that sometimes it's inappropriate i don't think it's the of all here of the committee to bundle the shopper or buffet in any way that bill will be before us tomorrow and we will legislate and as i said members are free to vote for and against it or for amendments or whatever only on my part is going to be no efforts to influence people one advocates of the bill in the committee and foreign affairs have asked us to postpone it but i received it out about a month ago for many of the people with whom they were working the public was victims survivors who said what is a matter of you are you holding this bill up people cannot it seems to me from the same perspective denounce are not acting and then tell us not to act so that bill is before us tomorrow we want to so that means again just of we  supported should just really been introduced even though we had a hearing so we will hold off on that until we until we come back and the holocaust bill even if we get through today i'm going to hold off till tomorrow so people are ready they member thank you chairman frank for convening today's markup i'm going to confine my outing remarks to one measure which i'm particularly opposed and that's legislation to block the regulatory implementation of the unlawful internet gambling enforcement act in fact the legislation we'll consider today would effectively render that act  and it's been highly and i hope that doesn't happen this legislation is not about anyone's opinion or moral beliefs about gambling it's about the violation of our law it's about crimes some client that illegal internet gambling is a victimless crime but whatever else is said about it it is a crime and its most vulnerable victims the young people who by the tens of thousands have been exposed to the risk of becoming compulsive addictive gamblers study after study shows that the earlier one begins gambling the more likely he or she will become a problem gambler exposing children to gambling in their bedrooms and dorm rooms at a young age dramatically increases that risk the harmful effects of illegal internet gambling and that's what this legislation will consider today would allow internet illegally internet gambling to once again be very common on our hour through the internet with the harmful effects of illegal internet gambling have been confirmed by a study after study previously entered studies by the harvard medical school the university of connecticut health center university of pennsylvania the university of south florida and the american psychiatric association all showing the devastating effects of illegal internet gambling on our youth especially troubling is a study by mcgill university that found that nearly one third teenage compulsive gamblers attempted suicide and the great majority of those were exposed to gambling on the internet compulsive problem gambling particularly among young people epidemic proportions and has re following one increased withdrawal from normal activities to turning to criminal activities to recoup financial losses one of the more famous cases there was a university of florida state quarterback who was mr football and mr basketball in the state of florida through exposure to gambling on the internet he turned to crime and when we first considered the original internet gambling by and he was actually serving time it's no wonder that the n c a a the n f l major league baseball national hockey league have all written the members urging them to strongly oppose the legislation today other results from illegal gambling is taking drugs to deal with depression and as mcgill university said increased we've had university presidents we've had parents we've had round after round of  before we passed the original bill by an overwhelming number of both senators and house members we had a virtual parade first hand testimony on the devastating effect internet gambling on family and interpersonal relationships and the problems that were created now there is some good news enactment of the uniform internet gambling enforcement act by this congress the large operators and internet gambling with  the internet gambling industry have pulled out of the u s market one argument they're using for the build a day is they're saying that the original bill didn't war and that internet gambling is still prevalent yet they're spending millions of dollars to lobby against this bill which is a pretty good indication that they think this bill will help their position and cause a dramatic increase in illegal internet gambling which it will but since an act of the original by and by this congress as i said by in overwhelming numbers the large operators internet gambling have pulled out of the u s market according to the annenberg public policy center that's the university of pennsylvania center there they found that the weekly use of the internet for gambling among college  and seven after we enacted the legislation dropping to only a quarter of what it was in previous years quote the strong and this is from the annenberg survey the strong drop in use of internet sites suggests that the federal regulation restricting the transfer of funds to internet gambling sites has had its intended effect the director of the an survey said these offshore online casinos illegal openly and why grantley violate the law all about operating in the united states every state in this union has a prohibition against that type of against this type of gambling those who seek to legalize internet gambling should go to state legislatures if they want to re laws prohibiting the illegal internet gambling activities so when they say it's simply opinion of a member of congress they shouldn't do that that's not true it's actually the legislatures and the people of all fifty states have said we don't want this activity and it was a day and forty eight attorney generals who came to us for help originally until the law was changed our choice is between a criminal enterprise that knowingly and willfully violates our federal law and the laws of all fifty states and the use of our country to me it's an easy choice of how i will vote for the youth of our country i will vote to keep on the books the ban we passed two years ago which as i said the annenberg survey says has resulted in a dramatic decrease in internet gambling among college age you for all those reasons the committee should oppose h r seventy six fifty seven sixty seven and any amendments designed to delay or prevent implementation of manning for regulations to stop illegal internet gambling i look forward to the debate on this legislation back the balance of my time the committee will now consider a resolution electing majority members to the subcommittees the clerk will report the resolution electing majority members the court will consider the resolution as read without objection is there any debate on the resolution without objection the previous question is ordered the question now occurs on approving the resolution all in favor will signify by saying i all opposed nay in the opinion of the chair the eyes have it the ayes have it and the resolution is agreed to the committee will now consider the committee present for h r thirty three twenty nine homes for heroes act the court will report to the committee print without objection the bill shall be considered as read and open to amendment at any point are there any amendments the clerk will report the amendment at the desk without objection the amendment is considered as read i recognize myself for five minutes and i would remind the members that the subcommittee chairperson section three of this bill establishes a funding mechanism for permanent supportive housing for veterans that is similar in many ways to the hud two zero two supportive housing program for the elderly and the eight eleven supportive housing program for persons with disabilities in this congressional session our committee has worked to streamline hud's administration for all of these section two zero two and a levin programs so that they may function more effectively in the world of mixed financing of affordable housing projects this manager's amendment simply applies to h r thirty three twenty nine the lessons learned during bipartisan consideration of h r twenty nine thirty the supportive housing for the elderly act which the house passed last december and more recently of h r five seven seven to the frank melville eight eleven supportive housing investment act in addition the amendment ensures that the authorized program works well with the low income housing tax credit thereby improving the attractiveness of these projects to private investors among other things the amendment provides additional protections to owners of authorized projects by ensuring that hud operating assistance keeps pace with the actual property cost hud would be required to make a just minutes to operating assistance to cover a reasonable cost increases including increases associated with the service coordinators and emergency situations beyond the control of the owner the amendment also requires delegation of the processing of capital advances for mixed finances grants to an experienced state or housing finance authority which is something that nonprofit project sponsors have pushed hard for in the two zero two and eighty eleven the manager's amendment also permits the use of private financing and low income housing tax credit credits in combination with the capital fund the bill itself authorizes by enabling for profit limited partnerships to own such properties provided that the sole are managing general partner is a private nonprofit organization it also prevents on due benefits shut up project cease to provide housing assistance to low income veterans except for projects that cease providing this housing due solely to the failure of federal rental assistance to be renewed these provisions are of key importance to tax credit investors all all of whom all the cone a cornerstone cornerstone of affordable housing finance in the current environment urge my colleagues to support this amendment i have having just read the statement of the subcommittee chairwoman i believe it appropriate that i relinquish the chair and allow her to come to finish her does any member desire to strike the last word powers recognized for five minutes i think the chairman like to read a statement on behalf of shelly capital on this issue in her words she says i would like to thank the chairman for yielding the time to speak on this legislation would august also like to thank mr green for being the legislation's sponsor of the bill under consideration today would create a new special assistant for veterans affairs expand the supply of housing for very low income veterans and increase the number of vouchers for homeless veterans the special assistant for veterans affairs would ensure veterans receive the proper access to as housing assistance programs coordinate all hood programs and activities pertaining to veterans and act as a liaison between hud in the department of veterans affairs the bill authorizes two hundred million dollars in appropriations project rental assistance project rental assistance and for capital in vance's and planning grants to provide non profits and consumer cooperatives for the construction in the rehabilitation of permanent supportive housing for very low income veterans incomes not exceeding fifty percent of the medium income appropriations are also authorized for additional two hundred twenty thousand housing choice after for homeless veterans each year starting if watch two thousand and eight while i commend mr green for his efforts to ensure our nation's veterans receive the best possible housing benefits i do have some reservations at the creation of special assistant would be of current efforts within her to coordinate these benefits nevertheless we should move forward and continue to work with hud to ensure that there is appropriate coordination between the department of veterans affairs and i yield back my time as any other member does are to be h i will recognize myself for five minutes no other members designed to be heard i would like to thank the members capital for her comments and her support of this legislation this legislation is absolutely needed legislation in our country currently we have about eight hundred thousand homeless people two hundred thousand of whom are veterans on any given night two hundred thousand veterans may be found in need of a place to call home these veterans many of them are persons who are very low income and who cannot afford the housing that we traditionally provide persons in the state of texas we have about sixteen thousand homeless veterans in my city and houston we have approximately two thousand five hundred and this bill is going to provide two hundred million dollars in supportive housing and services it will also provide twenty thousand vosh vouchers for our veterans this is a crucial time in our country we have veterans who are returning from war in iraq and afghanistan they too will need the benefits that this bill can provide or ma need the benefits that this bill can provide so i'm asking all of my colleagues to please the legislation and i will yield back the balance of my time like to thank you for all of the work that you put into making sure that we make it possible for veterans to receive the benefits that this congress and other congress have so wanted them to receive by way of providing assistance for housing it seems to me what you have done here in addition to making sure that we kind of get a one stop  shop is to make sure that the various pieces of legislation are aligned in ways that would certainly benefit our veterans as i understand it there are those who would make the argument that it is duplicat but does not currently have the equivalent of a special assistant for veterans affairs and of course we understand her it is improving its working relationship with the a largely because of the appropriation of hud bash boucher and the school year two thousand and eight required them to there's no layers on at the level of a special assistant that currently authorized veterans resource and it's really more of an information clearinghouse for veterans on hud and  better that's fine but in no way accomplishes what particularly this section two of h r three three two nine does so i would ask course a sport but this manager's amendment it again a command to mr graham for the work that you have legislation increasingly i think a small smaller and smaller number of our citizens are serving in uniform and sacrificing for the for the greater good facing death and injury and also in many times sacrificing financially and sacrificing educational opportunities  that if the that train were to pass away that the family could still be allowed to stay in the home and still have the voucher that their deceased veteran had dollar is the quarter that we're used to and i hope there's a bill we can all support we all i think are familiar with the popular fifty state quarter program which is authored almost completed now sequentially every state in the nation with design of its choosing on the back of the about the things that made each state special programs a natural follow up but again honors important things in each state and territory but instead of honoring itself it focuses on the great national beauty of our national parks and on the other national sites such as seashore of farce or wildlife refuges or monuments just to mix things up a little bit instead of honoring the states in the order they were made to the union honors national sites in order in which they were recognized i know it was some chagrin but in the spirit of fairness mr chairman just a lot of the western states t join the union later before the original thirteen states and insurers of my own state of delaware will not again be first a matter of fact dollar will be last because we don't have a national park the bill also creates a special new investment grade coin that will be three inches in diameter made of five ounces of silver bearing exact duplicate of each quarter in available only in the year in which the equivalent quarter design is issued although normally our investment grade coins are distributed only through a small network of highly specialized dealers this legislation allows a national park service a gentleman  puerto program that was so successful for the state quarters this will have national parks it's a teaching tool many teachers are using lesson plans that educate the young people about the various states and their national parks it also raises revenue for the treasury and i fully and strongly supported and urging yes but the question is there any amendment offered to the bill if not the question is on passing the bill those inflatable say i oppose no  strike the last word mr chairman today i ask for the committee's support in passing h r forty four sixty one the community building codes administration grant act this legislation which has bipartisan support including many members on this committee will provide federal assistance the development of local building codes responsible the building is essential to reduce vulnerability to future hazards i study conducted in two thousand and five by the national institute of building sciences found that for every one dollar spent on mitigation of the federal level the american taxpayer saves approximately four dollars one to four dollars in disaster office assistance state and local building codes assure that new homes comply with safety standards acquiring the skills and knowledge to become a code inspector is a time consuming process though and paying for personnel to conduct inspections and force codes are on the books consume scarce financial resources at the local level while there are no dedicated federal funds for building code administration community development block grant funds have been used for this purpose in the past along administrative allowances from themis three medication programs hazard mitigation grant program pre disaster mitigating grant program and flood mitigation assistance program but competition for these funds mr chairman is intense and infrastructure projects typically receive preference over building code enforcement for these reasons the states must fund these activities without real assistance relying often on building permit these and sometimes general funding to operate offices that are overworked and understaffed this means that codes on the books cannot be enforced leaving communities more vulnerable and driving up insurance premiums in those areas to address this issue mr chairman h r forty four sixty one a stablish is a competitive national program that provides awards to local governments for building the community building code administration grant program will not infringe upon local and state authority to an act of force building codes it simply provides sorely needed funding for them to do so because specifically the bill includes a five year sunset of the program authorizes one hundred million dollars over that period to execute it caps awards at one million dollars per recipient requires recipients to match a portion of funds received and outlines eligible uses of funds and selection criteria with preference offered to governments in financial distress additionally each grant proposal must contain a plan for local governmental action to be taken to establish and sustain local building code for enforcement administration functions without contending with federal support at a level at least equivalent to that proposed the gra chairman this legislation will help ensure the safety of buildings across the country and ultimately will reduce the cost the american tax taxpayer after disaster thank you mr chairman i appreciate your bringing this up and i look forward to passages with their cards on the bill the gentleman texas resources to provide training because it is my understanding that communities that get community development block grant money can actually use that money for for that purpose currently no every community in this have a large enforcement i'm trying to get a handle here of while we would want to make every community eligible for that in there there is a preference given to communities with million dollars in appropriations for each of the school years two thousand and eight through two thousand and thirteen to h q day to carry out the provisions of this act my and then it would alter this section to reduce the authorized appropriations to twenty million dollars a year for each of the fiscal years two thousand and nine through two thousand and thirteen this will insure a total authorized appropriation of one hundred million dollars over the course of five years and will ensure that the program authorization will begin fiscal year zero nine and carry through for five years for fiscal year two able to go forward on suspension under the rules of the house she spent exactly that you spend your rules if there is subsequent to action in this committee agreement between the two parties on any aspect of any of the bills that we've adopted those can be incorporated into this expansion so i want to tell people that you know that you don't have to go to the committee what we do is final i would say this in the spirit of suspension i wouldn't not bring forward any bill that did not have bipartisan agreement but on a lot of these are open to a subsequent bipartisan agreement so i would urge members who have questions talk obviously with the schedule the way it is none of these are go fully designated to general minnesota's regular minutes mr chairman let me start by thanking you and ranking member baucus for holding this market today on this important piece of legislation to protect low income children in public housing from lead exposure let me also thank housing sub committee chairwoman waters and ranking member capitol and their staff for all the work they've done on this legislation i also like to thank all of the members of the community who have been involved with this process everybody's contributed in a productive way r sixty three zero nine is an expanded version of h r three three nine seven the lead safe housing for kids act of two thousand and seven a bill that was introduced last year i introduced h r sixty three three nine two to require the department of housing and urban development hud update its blood led intervention regulations to reflect the levels used by the center for disease control and prevention my legislation simply requires hut to update it blood lead regulations from the current twenty micrograms per deciliter of lead to ten micrograms per deciliter as the c d c recommends or if the c d c updates the standards to a lower number that lower number poisoning is one of the for largest environmental hazards affecting children's health in the united states it is also preventable children of color and children from low income families and children living in older homes face the greatest r three three nine seven was marked up by the subcommittee on housing and community opportunity on may fourteenth it was passed out of the subcommittee on a voice vote and was reported to the financial services committee with a favorable recommendation i introduced sixty three zero nine specifically to address the concerns raised at markup by representative capital about other sources of lead contamination i was happy to work with her and the language has been added to address this concern this language starts on page two of r sixty three zero nine lines twenty five to twenty six and continues on page three additionally in response to concerns re raised by landlord groups the new bill authorizes such sums that may be necessary to implement the act lastly the new bill also requires a study of what's progress in implementing its big buy program created to mitigate lead based paint hazards and pre nine hundred seventy eight assisted housing though i am committed to providing source providing resources to implement this legislation i think it's important that we hold her accountable for the monies previously appropriated for this purpose mr chairman as a result of the congressional action one nine hundred ninety s and the work of our local partners our country has seen significant progress reduction of children letting jill been exposed to lead between one hundred ninety one and one hundred ninety four we saw four point four percent of children under age six or more had eight hundred thousand children had unacceptably high levels of le in their blood ten percent ten micrograms per deciliter or higher the c d c now estimates that this numbers drop to one point six percent of children or more than three hundred thousand children though this is progress it still leaves three hundred thousand children too many mr chairman my legislation is just one attempt to tackle this problem i look forward to working with you and my fellow colleagues in congress to someday eradicate this problem of lead exposure for all the thank you for the time and based paint is is not just occurring in the home place we've we've heard about toys and other things lunchboxes thomas the tank engine toys and other things children's pajamas where the high levels of le are problematic so i appreciate mr else and addressing that concern in his new bill through the submitted version that we see here today the national goal i thought this is very compelling but the national go eliminating childhood lead poisoning by the year two thousand and ten which is just around the corner is and is a lot of the goal and i think it's it's reachable i think we all believe that this is something we we can address and i think that with this bill in front of us will push that item to the forefront i do have an amendment that we've worked out between the we've been working on to try to address some other concerns in terms of funding and some of the folks who have  facilities were concerned about the eventual costs but i appreciate his work on this issue i do believe that for every parent and every family member who has a young a young child we know they have a great tendency to put a lot of things in their mouths and touch a lot of things and and to think that you could be endangering yourself or and or themselves or possibly leading their blood level to raise to a point where it could be extremely toxic to them and possibly result in terrible catastrophe is is a troublesome thing for any for any parent so i thank the gentleman movement on this bill and i look for these new obligations would be covered by hud we've been working on this language back and forth and i believe what we've come up with in this amendment will move this legislation with a greater consensus it basically clarifies that the cost of the new obligations will be covered by hud and that these obligations will not be reaped will not be required to be met and less hot has the funding to do that i would like to thank mr nelson again for working with us and look forward to continu greatly help us in identifying and helping children who may have an elevated blood lead levels h r sixty three zero nine would update hurd's blood lead standard so that it matches the current c d c standard lead poisoning his serious and long term effects on a child's physical and mental help children exposed to live have lower i q's reduced educational achievement in a more likely to display delinquent behaviors these effects are blood lead level of concerned at twenty micrograms per deciliter a level twice as high as the c d c standard however according to c d c data in two thousand and six one point two percent of children between the ages of one in six years have blood lead levels about ten micrograms per deciliter these children are more likely to be african american live in poverty and live in housing well before nine hundred fifty i'm concerned that many of these children live in los angeles according committee on may fourteenth on a voice vote with a paper ball recommendation to the full committee at that markup mr ellison committed to working with the ranking member of the subcommittee and housing industry groups to address their concerns about other sources of lead contamination i am pleased to report that the bill contains this language i appreciate the work that the members in stamp of done to address these concerns and i believe that the final product is a bill that improves the lives of the nation's children i am aware of concerns that have been raised by certain housing industry groups about the potential cost of this legislation the gentleman from minnesota and the subcommittees ranking members have worked extensively to address these concerns i hope that committe  able to support the help of the nation's children by passing h r six three zero nine today and i thank you very much mr chairman and your back the balance of my time is there for the discussion on the amendment if not to question the general minnesota asset management bill whether or not we are able to move forward on the bill on the payment system and internet gambling depends on a ruling that is pending from the parliamentarians we may have to postpone  thank the chairman for scheduling this bill for markup today and also for his co sponsorship i would also like to thank ranking member baucus and financial institutions subcommittee ranking member biggert for their co sponsorship in support of this bill this bil money service businesses that addresses the critical problem of money service businesses being denied access to the banking system m s b have experienced blanket terminations of their commercial accounts over the past several years due in part to banks responding to an clear guidance from regulators this bill establishes a mechanism that would allow him s b s to sell certify their compliance with bank secrecy act an anti money laundering requirements w allowing banks to make risk based decisions about banking particular m s b m s p's which include check cashers money transmitters and money order issuers have served our nation's communities for years these are businesses that our constituents rely on for a wide variety of convenient efficient and cost effective financial products if this issue is left unaddressed the viability of them as bees will be compromised potentially pushing many of these transactions underground and potentially untraceable to law enforcement banks reacting to regulatory fears have terminated m s b accounts in a blanket fashion an attempt to minimize exposure to so called high risk businesses without a banking relationship in most bees are unable to provide financial services to communities making it difficult for millions of americans to pay bills and money or cash checks federal regulatory agencies recognizing the problem species have sought to address this issue through agency guidance and regulatory changes with little effect this legislation addresses this problem by enabling m s b to self certify their compliance with bank secrecy act  anti money laundering requirements this approach is not new or novel it is similar in principle to that use for international correspondent banking it would not relieve banks of their due diligence responsibilities with regard to m s b customers rather it would permit appropriate reliance on self certification to relieve banks of being the defacto regulators only of him s b s bank secrecy act and anti money laundering compliance despite these changes m s p as we continue to be responsible for compliance and are subject to rigorous on site examinations by i r s examiners m s p as are also state regulated in many juristic currently twenty eight states and the district of columbia requiring them to be licensed and or regulated by the state banking agency any violation of their self certification would render the same civil and criminal penalties provided for by the bank secrecy act and other anti money laundering provisions again i thank the chairman and ranking member baucus and my colleagues who have co sponsored it and i urge my colleagues to support this legislation gentleman from not commend her for leading that effort money service businesses or provide a valuable service to their customers and in some instances are the only financial services providers available in their communities in recent years many face the terminations of their banking relationship with depository institutions concerned about heightening red with tory scrutiny that such accounts attract from the federal banking agencies no one disagrees that banks should comply with all applicable and money laundering guidance nonetheless terminating accounts services to an entire regulated industry and forcing both it and its customers into the underground financial system itself creates a significant money laundering risk the measure before our committee today drafted with a great deal of bipartisan aeration well the gentle lady from new york would set up a system in which the treasury secretary post a set of guidelines that m s b's would need to meet to satisfy and the money laundering requirements and then would self certify their compliance this self sort of cation function is balanced by strict connel to use for those that misrepresent their compliance and it would in no way  banks from reporting any suspicious suspicious activities under the laws and regulations of the banks but it also would relieve banks of the requirement to be the defacto regulator of the m s b which is not the bank job or obligation mr chairman this industry is supported by both the m s b community and the banking industry it deserves support of all our colleagues on the committee and are just adoption you know back to bounce from a time big be considered part of the well no payday lenders are not part of this these are check cashers just cash the checks it's not paid and while pretty lenders do cash checks and me and i know that based on the work that you have done particularly on the credit cards that you are concerned about the citizens of this country and their ability to get services that a fair price and to be treated early so i know that you have the best interest of all of our citizens at hand but i'd like to raise a few issues because i think it's work that we have to do for the future  i think that we need to check about payday lenders because i do believe that they are covered in this bill and they as you know some of us have been focused on payday lenders for quite some  time who are charging up to four hundred percent interest rates and that troubles me now i also know that many of the citizens of this country particularly in the poor areas are unbanked and they need to have a services for check cashin and transmitting money and all of that but let us recognize that the policies that we have developed for offshore countries in the caribbean a very tough and they make sure that they have to adopt policies that we have dictated on know your customer laws eccentric cetera what we're doing here with this sap certification is we're making our laws a lot weaker than the laws that we're demanding that many of these other countries have particularly those in the caribbean they don't have any step certification they have to be in compliance with bank secrecy and anti matter in money laundering and all of that so while i know that you're you're doing everything that you can to credibly act in the best interest of many of these citizens who without these services would have no way of basically doing their money business that i would like us just to remember that we've got a lot of work to do on payday lenders and others who are charging our customers an extraordinarily authority amount of money to provide from some of these services in the memorandum from the financial services committee it talks about these m s b s that include check cashers money transmitters money audit issues and others provide a wide variety of convenient efficient and cost effective financial products i would disagree with cost effective by most of them however i bring this to our attention so that it but it addresses a problem that's happening in new york where all of the banks will refuse to even have a banking account for him s b s there's only one bank that allows a banking account for him s b s now they are held responsible to the bank secrecy act in the anti money laundering act they have to know their customers they have to they have to be responsible and they are under invest review and vigorous oversight from the i r s the state level stin face penalties if they do not comply with this is really about is just allowing them to have a banking account so they can continue to be in business and that the banks will not be responsible for the self certification or know that customer standard of the of the m s b s that are cashing the checks and and i join your concern about the high fees of payday lenders and i gotta tell you that some of these credit card companies are charging even more than the payday lenders in terms of fines fees in interest rates this is providing a banking account so that they can conduct their business i would like to add that they're in the process of starting their own bank so that they can continue but in the meantime if we this and perhaps our chairman can provide us with some leadership on this in the future one of the things that we have to pay more attention to is our oversight of the regulators the regulators have gotten us in trouble because they did not take the exotic products that were offered that's causing us this foreclosure problem this is a regulator problem as the banks are saying we're not we can't be the enforces on this we can't do all of this  work so we're just going to cut these people operate had a bank account i understand the position that they're in and then as a member of congress you're trying to do what you can to make sure that these businesses don't go underground and that they can deal with the banks but our job i really do believe is to get those regulators in here in front of this committee and ask them why they have not come up with regulations that are necessary been engaged in oversight in various editions voting in particular the obligation of the bank regulated under the federal trade act every one for intercept practices code we've also seen the federal reserve move because we've got a credit card show yes she's been a priority for us and will continue to be not always possible to do everything it wants but this is one of the issues where one areas where we have been moving it is it is it not is it defined somewhere else penalties should they make a material rep misrepresentation with the gentleman nothing wrong with that i appreciate that those are obviously the i r s and pinsent a particular law enforcement functions aimed at preventing this regulator the secretary of the treasury for any purposes i guess i'm trying to get an answer to whether to ms waters question whether payday lenders  and so far as i can let me just ask the question i asked once again then the language on page ten of the bill last page of the bill  lines nineteen to twenty four well that in effect make the secretary of the treasury the regulator that will have responsibility over this or will he have money transmitters now and money remember regulate them to the extent that they can't do anything illegal but regulate them regulation is  consumer protection agency so the regulations obviously would be to prevent this from being a means of tax evasion the i r s regulation would be purely from the standpoint of the tax code so in terms of consumer freeing them up from that extent of regulation i guess the question that the general audience is everybody is asking is if we're freeing them up from the banks regulating them who is going to regulate them their customers the banks now self certified know their customers but they will not take these accounts because they although they may know the m s b they don't know every single one of the m s b customers so they  do not want to get into the business of having to know every one of the m s p customers so what the bill does is it makes it clear that the bank is not responsible for the m s b customers but the m s b are responsible for their customers and if they are incorrect if they are misleading then they are libel with criminal sanctions and everything else but what has happened in my district and probably many other districts across the country is that the banks do not want any more risk they don't want high risk and i actually support removing the responsibility from the banks that's one side of the equation that i'm fully supportive of that objective i think the questions that are being raised have to do with if the banks are not doing it which they shouldn't have to i'm not suggesting they should if the banks are not doing it who is going to do it  certifications self certifications that are coming from these money transmitting entities are they going to be those sel certification is going to be filed with the secretary of treasury are they going to be file with state banking agencies who are they who are these self certifications even going to go to i guess that's the question i'm i'm not suggesting they ought to be going to the banks i'm fully supportive of of removing responsibility from the banks some my question and i think the question that ms waters was getting to is if the banks are not doing  if the if the regulators don't have the authority to do it and we are giving very limited authority under this bill to the secretary of treasury who is going to regulate these folks will the gen i kind of raised the question because i think it's a big hole here well i'm count of an agreement with a gentle lady i'm fully supportive of the of the purpose of the bill there's no discomfort removing this responsibility from the banks i think the discomfort is that we may be creating a monster here that nobody has really any authority to do to take care of these the regulation through the secretary of treasury and there's a lot of a lot of they serve a useful purpose in communities but there's a lot of discomfort with some of the things they do in communities too and somebody ought to be overseeing them regardless of how to recognize myself for five minutes you know back and uniforms money service business combined with the money laundering and counterterrorism financing obligations the problem is it does not appear to be any federal regulation now and that is on the consumer side so and i think we reasonable we don't want banks doing things wrong but i think burdening the banks with law enforcement responsibilities that they're not good at that empowered to do and i think the whole notion of private law enforcement makes a lot of us nervous anyway that if we would have that representative of new york is trying to make here because we have a lot of the remainders who have businesses that try to send money to various points of the around the world and he they have been systematically in minnesota being having their accounts limited these are small business people trying to earn a living trying to feed their families and trying to help other folks send money back to countries where there is extreme poverty tremendous over unemployment places like liberia and others of police this thing that's not our job we don't want to spend our time doing that so it's just a lot easier for them just to eliminate this bill i think puts the liability where it should be which is on the individual  know i think this is a very very helpful i would i'm going to vote for the bill going forward members who make their own choice i think it does clarify that the banks are not the cop here but that the problem is both before and after an after this bill no we don't have it once this is done and the banks are not the position of being the cops then who should be the consumer protection then that's that's a subject of another hearing and another bill that is that addresses consumer protection that's what we just institutions who have on file the self sort of cation of an m s b this amendment makes it clear that financial institutions are not the defacto regulators of the bank secrecy act and anti money laundering compliance and as such do not requirement or liability connected to their self certification this is critical to the success of the legislation because if we pass this bill and we are not abundantly clear that the self certification of an m s p allows the financial institution to fulfill their bank secrecy act in anti money laundering requirements they will not have the assurances they need to bank m s p so i do i do want to to be clear that the m s b s will continue to have rigorous oversight and on site examinations by the i r s will continue to be regulated and or license at the state level will continue their registration with vinson and will face civil and criminal penalties should they have a material misrepresentation of their self certification without regard to whether such a violation was willful this is the appropriate avenue to ensure compliance and i thank the chairman for his for recognizing vision and i a your further discussion m m german california yes and i understand what the general light is tempting to do and i think we've all agreed that the banks should not be put in the position of of regulating this industry i'm a little bit worried about the money laundering portion of this it appears to relieve the banks of all responsibility relative to money laundering and working with any of these entities i would reputations for money laundering drug dealing i mean we're not relieving them of all responsibility but generally to you yes they still have a responsibility for sars and c in they still have that responsibility but they relieve them from saying that they know every single one of the customers of the of the of the of the bank service accounts that's correct yeah but we will i think just to be sure we might want to run another letter saying does this go too far and i think the edge will be no but it's not a bad thing to ask the question is now i that is adopted i will note that i believe a hearing on this question of who does have the regulation is relevant and sounds like a good oversight subcommittee hearing to me but we will pursue that