59–008 

110TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 110–350 

PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 3567) TO AMEND THE 

SMALL BUSINESS INVESTMENT ACT OF 1958 TO EXPAND OPPORTUNITIES FOR INVESTMENTS IN SMALL BUSINESSES, AND FOR OTHER PURPOSES 

SEPTEMBER 26, 2007.—Referred to the House Calendar and ordered to be printed 

Mr. CARDOZA, from the Committee on Rules, 

submitted the following 

R E P O R T 

[To accompany H. Res. 682] 

The Committee on Rules, having had under consideration House 

Resolution 682, by a non-record vote, report the same to the House 

with the recommendation that the resolution be adopted. 

SUMMARY OF PROVISIONS OF THE RESOLUTION

The resolution provides for consideration of H.R. 3567, the Small 

Business Investment Expansion Act of 2007, under a structured 

rule. The rule provides one hour of general debate equally divided 

and controlled by the chairman and ranking minority member of 

the Committee on Small Business. The rule waives all points of 

order against consideration of the bill except clauses 9 and 10 of 

rule XXI. The rule provides that the bill shall be considered as 

read. All points of order against provisions in the bill are waived. 

The rule makes in order only those amendments printed in this 

report. The amendments made in order may be offered only in the 

order printed in this report, may be offered only by a Member designated in this report, shall be considered as read, shall be debatable for the time specified in this report equally divided and controlled by the proponent and an opponent, shall not be subject to 

amendment, and shall not be subject to a demand for a division of 

the question in the House or in the Committee of the Whole. All 

points of order against the amendments except for clauses 9 and 

10 of rule XXI are waived. The rule provides one motion to recommit with or without instructions. Finally the rule provides that, 

notwithstanding the operation of the previous question, the Chair 

may postpone further consideration of the bill to a time designated 

by the Speaker. 


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EXPLANATION OF WAIVERS

The waiver of all points of order against consideration of the bill 

(except for clauses 9 and 10 of rule XXI) includes a waiver of clause 

4(a) of rule XIII, requiring a three-day layover of the committee report. The committee is not aware of any points of order against 

provisions in the bill. The waiver of all points of order against provisions in the bill is prophylactic in nature. 

COMMITTEE VOTES

The results of each record vote on an amendment or motion to 

report, together with the names of those voting for and against, are 

printed below: 

Rules Committee record vote No. 318 

Date: September 26, 2007. 

Measure: H.R. 3567. 

Motion by: Mr. Dreier. 

Summary of motion: To grant an open rule. 

Results: Defeated 3–8. 

Vote by Members: Hastings (FL)—Nay; Matsui—Nay; Cardoza—

Nay; Welch—Nay; Castor—Nay; Arcuri—Nay; Sutton—Nay; 

Dreier—Yea; Diaz-Balart—Yea; Hastings (WA)—Yea; Slaughter—

Nay. 

SUMMARY OF AMENDMENTS MADE IN ORDER

Chabot (OH), The amendment establishes a bright line standard 

of majority stock ownership for determining whether a venture capital company is affiliated with the companies in which it invests. 

(10 minutes) 

Inslee (WA)/Welch (VT), The amendment expands the definition 

of operational assistance in Section 351 of the Small Business Investment Act, to include assistance to help small businesses 

achieve energy efficiency and implement sustainable practices that 

reduce the use of non-renewable resources or minimize environmental impact and reduce overall costs and increase health of employees. (10 minutes) 

Inslee (WA)/Welch (VT), The amendment would direct the SBA 

Administrator to give consideration to investments for small businesses that are creating new technologies, manufactured goods, or 

materials, or providing services to reduce carbon emissions in the 

US, reduce the use of non-renewable resources, minimize environmental impact, and relate people with the natural environment. (10 

minutes) 

TEXT OF AMENDMENTS MADE IN ORDER UNDER THE RULE

1. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE CHABOT OF

OHIO, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Strike title V and insert the following: 


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TITLE V—VENTURE CAPITAL 

INVESTMENT STANDARDS 

SEC. 501. DETERMINING WHETHER BUSINESS CONCERN IS INDEPENDENTLY OWNED AND OPERATED. 

Section 3(a) of the Small Business Act (15 U.S.C. 632(a)) is 

amended by adding at the end the following: 

‘‘(5) NON-AFFILIATION OF VENTURE CAPITAL FROM CONSIDERATION OF SMALL BUSINESS CONCERN.—For purposes of determining whether a small business concern is independently 

owned and operated under paragraph (1) or meets the small 

business size standards instituted under paragraph (2), the Administrator shall not consider a business concern to be affiliated with a venture capital operating company (or with any 

other business that the venture capital operating company has 

financed) if— ‘‘(A) the venture capital operating company does not own 

50 percent or more of the business concern; and ‘‘(B) employees of the venture capital operating company 

do not constitute a majority of the board of directors of the 

business concern. ‘‘(6) DEFINITION OF ‘INDEPENDENTLY OWNED AND OPERATED’.—For purposes of this section, a business concern shall 

be deemed to be ‘independently owned and operated’ if—

‘‘(A) it is owned in majority part by one or more natural 

persons or venture capital operating companies; 

‘‘(B) there is no single venture capital operating company 

that owns 50 percent or more of the business concern; and 

‘‘(C) there is no single venture capital operating company 

the employees of which constitute a majority of the board 

of directors of the business concern. 

‘‘(7) DEFINITION OF ‘VENTURE CAPITAL OPERATING COMPANY’.—For purposes of this section, the term ‘venture capital 

operating company’ means a business concern—

‘‘(A) that—

‘‘(i) is a Venture Capital Operating Company, as 

that term is defined in regulations promulgated by the 

Secretary of Labor; or 

‘‘(ii) is an entity that—

‘‘(I) is registered under the Investment Company Act of 1940 (15 U.S.C. 80a–51 et seq.); 

‘‘(II) is an investment company, as defined in 

section 3(c)(14) of such Act (15 U.S.C. 80a–

3(c)(14)), which is not registered under such Act 

because it is beneficially owned by less than 100 

persons; or 

‘‘(III) is a nonprofit organization affiliated with, 

or serving as a patent and licensing organization 

for, a university or other institution of higher education and that invests primarily in small business concerns; and 

‘‘(B) that is not controlled by any business concern that 

is not a small business concern within the meaning of section 3; 


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‘‘(C) that has fewer than 500 employees; and 

‘‘(D) that is itself a concern incorporated and domiciled 

in the United States, or is controlled by a concern that is 

incorporated and domiciled in the United States.’’. 

2. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE INSLEE OF

WASHINGTON, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Section 206, add at the end the following: 

(c) EXPANDED DEFINITION OF OPERATIONAL ASSISTANCE.—Section 

351(5) of the Small Business Investment Act of 1958 (15 U.S.C. 

689(5)) is amended by inserting before the period at the end the following: ‘‘, including assistance on how to implement energy efficiency and sustainable practices that reduce the use of non-renewable resources or minimize environmental impact and reduce overall costs and increase health of employees’’. 

3. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE INSLEE OF

WASHINGTON, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Redesignate section 104 as 105 and insert after section 103 the 

following: 

SEC. 104. INCREASED INVESTMENTS IN SMALL BUSINESSES CREATING 

NEW TECHNOLOGIES, MANUFACTURED GOODS, OR MATERIALS OR PROVIDING SERVICES TO REDUCE CARBON 

EMISSIONS IN THE UNITED STATES, REDUCE THE USE OF 

NON-RENEWABLE RESOURCES, MINIMIZE ENVIRONMENTAL IMPACT, AND RELATE PEOPLE WITH THE NATURAL ENVIRONMENT. 

Section 303 of the Small Business Investment Act of 1958 (15 

U.S.C. 683), as amended by this Act, is further amended by adding 

at the end the following: ‘‘(k) INCREASED INVESTMENTS IN SMALL BUSINESSES.—The Administrator shall give consideration to investments in small businesses that are creating new technologies, manufactured goods, or 

materials, or providing services to reduce carbon emissions in the 

United States, reduce the use of non-renewable resources, minimize 

environmental impact, and relate people with the natural environment.’’. 

Æ 


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