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[House Report 110-350]
[From the U.S. Government Publishing Office]

110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    110-350

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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.

                         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:

             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;
                  ``(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.''.

                                  
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