[House Hearing, 116 Congress]
[From the U.S. Government Publishing Office]
ORGANIZATIONAL MEETING FOR THE 116TH CONGRESS
=======================================================================
HEARING
BEFORE THE
COMMITTEE ON SMALL BUSINESS
UNITED STATES
HOUSE OF REPRESENTATIVES
ONE HUNDRED SIXTEENTH CONGRESS
FIRST SESSION
__________
HEARING HELD
FEBRUARY 6, 2019
__________
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
Small Business Committee Document Number 116-001
Available via the GPO Website: www.govinfo.gov
__________
U.S. GOVERNMENT PUBLISHING OFFICE
34-740 WASHINGTON : 2019
-----------------------------------------------------------------------------------
For sale by the Superintendent of Documents, U.S. Government Publishing Office,
http://bookstore.gpo.gov. For more information, contact the GPO Customer Contact Center,
U.S. Government Publishing Office. Phone 202-512-1800, or 866-512-1800 (toll-free).
E-mail, [email protected].
HOUSE COMMITTEE ON SMALL BUSINESS
NYDIA VELAZQUEZ, New York, Chairwoman
ABBY FINKENAUER, Iowa
ANDY KIM, New Jersey
SHARICE DAVIDS, Kansas
JARED GOLDEN, Maine
JASON CROW, Colorado
JUDY CHU, California
MARC VEASEY, Texas
DWIGHT EVANS, Pennsylvania
BRAD SCHNEIDER, Illinois
ADRIANO ESPAILLAT, New York
ANTONIO DELGADO, New York
CHRISSY HOULAHAN, Pennsylvania
VACANT
STEVE CHABOT, Ohio, Ranking Member
AUMUA AMATA COLEMAN RADEWAGEN, American Samoa, Vice Ranking Member
TRENT KELLY, Mississippi
TROY BALDERSON, Ohio
KEVIN HERN, Oklahoma
JIM HAGEDORN, Minnesota
PETE STAUBER, Minnesota
TIM BURCHETT, Tennessee
ROSS SPANO, Florida
JOHN JOYCE, Pennsylvania
Adam Minehardt, Majority Staff Director
Melissa Jung, Majority Deputy Staff Director and Chief Counsel
Kevin Fitzpatrick, Staff Director
C O N T E N T S
OPENING STATEMENT
Page
Hon. Nydia Velazquez............................................. 1
Hon. Steve Chabot................................................ 3
APPENDIX
Additional Material for the Record:
Rules and Procedures......................................... 9
Oversight Plan of the Committee on Small Business for the One
Hundred Sixteenth Congress................................. 23
ORGANIZATIONAL MEETING
----------
WEDNESDAY, FEBRUARY 6, 2019
House of Representatives,
Committee on Small Business,
Washington, DC.
The Committee met, pursuant to call, at 10:34 a.m., in Room
2360, Rayburn House Office Building. Hon. Nydia Velazquez
[chairwoman of the Committee] presiding.
Present: Representatives Velazquez, Finkenauer, Kim,
Davids, Golden, Crow, Chu, Veasey, Evans, Espaillat, Schneider,
Delgado, Chabot, Radewagen, Kelly, Balderson, Hern, Hagedorn,
Stauber, Burchett, Spano, and Joyce.
Chairwoman VELAZQUEZ. Good morning, everyone.
I call the Small Business Committee Organizational Meeting
to order.
I want to first welcome all returning and new Members.
Before we introduce new Members, I want to recognize Ranking
Member Steve Chabot, who has served on this Committee with me
for so many years now. We both know what it is like being in
the majority and the minority, and together we have proven just
what bipartisanship looks like. Just as Mr. Chabot has done in
his tenure as Chairman, I intend to continue this Committee's
history of working together to foster a healthy business
climate for America's entrepreneurs. I look forward to working
with you and other Members of the Committee to accomplish this
goal.
Small businesses continue to make unprecedented
contributions to our economy. They create nearly two-thirds of
net new jobs and account for nearly half of all private sector
employment. But, they need our help as they are facing
challenges accessing capital, identifying a skilled workforce,
and complying with an overly complex Tax Code. As we move
forward, it is our duty to make sure they are given all the
resources they need to prosper.
But to do so it is important to address these issues in a
constructive and inclusive manner. My belief has always been
that there is not a Republican or Democratic approach to small
businesses. Good ideas come from both sides of the aisle and we
need to encourage that, which is why I will make it a priority
to work in a bipartisan fashion.
During the last 2 years we did just that and accomplished a
great deal together. Small businesses deserve our partnership.
We have a diverse Committee and that is our strength because we
will ensure our work benefits all entrepreneurs, no matter
their location, industry, or background.
I look forward to collaborating with the Ranking Member and
with all Committee Members this Congress.
Now, let me take this opportunity to introduce the Members
on my side. There are a few new Democratic Members of the
Committee.
Congressman Marc Veasey, now in his fourth term, previously
served in the Texas House of Representatives, and has been
dedicated to addressing the challenges of many middle-class
Americans. We are excited to have his experience.
The rest of our new Members are from our ambitious crop of
freshmen.
Abby Finkenauer served in the Iowa House of Representatives
before her election to Congress. She has a passion for rural
economic development and will be a true asset to our Committee.
Andy Kim brings extensive foreign affairs experience to
Congress after serving at the Pentagon, the State Department,
the White House National Security Council, and in Afghanistan
as a civilian advisor.
Sharice Davids from Kansas brings her knowledge as a
businesswoman, lawyer, and professional mixed martial artist.
Do not mess around with her.
Jared Golden is a veteran of the U.S. Marine Corps, and in
2014, he was elected to the Maine House of Representatives
where he served as the Democratic Assistant Majority Leader in
2016.
Jason Crow is a former Army Ranger and a lawyer who has
served multiple tours overseas and earned a Bronze Star for his
combat actions. As the son of small business owners, he
understands the hard work our nation's job creators put into
creating jobs and growing our economy. Thank you for your
service.
Antonio Delgado hails from my home state of New York. He is
a Rhodes Scholar with diverse professional experience that
includes working in the music industry and as a lawyer where he
dedicated significant pro bono work fighting for criminal
justice reform.
Chrissy Houlahan, like many of our colleagues, also served
our country before being elected to Congress. She served in the
Air Force, but also brings her background as an engineer and
entrepreneur through her work here on the Committee.
We welcome you all to Congress and are excited you will be
serving on the House Small Business Committee.
I would also like to welcome back the Members who served on
the Committee in the 115th Congress.
Judy Chu is in her sixth term in Congress and fifth with
the Committee. She has a Ph.D. in psychology and also served in
the California State Assembly.
Joining us from Pennsylvania is Dwight Evans, who
previously served as the Ranking Member of our Subcommittee on
Economic Growth, Tax, and Capital Access. We are very lucky to
have him back in his new position as the Committee's Vice
Chair. His dedication to small business issues is clear as he
has served for over 35 years in the Pennsylvania House of
Representatives before coming to Congress.
Mr. Schneider is in his third term serving on this
Committee where his over 2 decades in business and management
consulting has helped him address the needs of small businesses
as they hire and grow their businesses.
Last, but not least, Adriano Espaillat, also from the great
state of New York, is rejoining the Committee for his second
term. Originally born in the Dominican Republic, he is the
first Dominican American to serve in Congress.
We are very fortunate to have you all back on this
Committee.
I now yield to the Ranking Member, Mr. Chabot, for his
opening statement and to introduce his new Members.
Mr. CHABOT. Thank you, Madam Chairwoman. And as we begin I
want to mention, as you did, that Chairwoman Velazquez and I
have served on this Committee for over 20 years together.
Twenty-three to be exact, but who is counting? And we have both
held the position of Chair and Ranking Member, depending on
which party controlled the house. We have worked together in a
very bipartisan manner at nearly every step of the way and I
want to thank her for continuing this tradition, at least so
far in the 116th Congress, although we are not very far in it
yet but I am sure we are going to continue those bipartisan
efforts.
For new Members of Congress, I am sure that a lot of you
have seen Committee hearings on TV or on the Internet that have
been filled with bitter partisanship and that could give a
preconceived notion of how things work around here but let me
assure you that while you may find that in other Committees
that you sit on, you will not find it here, at least not
usually. Of course, there will be philosophical differences. We
have real differences on health care and taxes and a whole
range of issues, but on this Committee we do truly work
together across the aisle for the betterment of America's small
businesses.
We do this because small businesses are the key to our
economy. We must ensure that small companies are healthy so
they can create jobs and continue to grow. Policies that expand
capital access, create new incentives, and spur investment will
continue that economic expansion.
Small businesses employ over half of America's workers and
create about 70 percent of new jobs in the American economy.
They represent approximately 99 percent. So 99 out of 100
businesses in America are by definition small businesses. They
comprise about half of the nation's private sector payroll and
produce about half of our private non-farm gross domestic
product.
The past 2 years have brought great news for small firms.
Optimism continues to push all-time highs. Small firms are
investing more capital into their businesses. Wage growth for
employees at small firms continues to grow and profits are up.
But as with everything, we can always fine tune the engine to
get a better performance.
I look forward to working with you Madam Chairwoman and the
other Members of the Committee on both sides of the aisle over
the next 2 years.
Now, I would like to introduce our new Members, the new
Republican Members of the Small Business Committee.
I will begin with Representative Kevin Hern of Oklahoma,
who started his first small business in 1985 specializing in
computer and software applications. Then he started saving to
purchase his first McDonald's restaurant. Starting several
small business ventures along the way, writing computer
programs to automate tasks for other businesses, real estate,
and even hog farming. We welcome him here.
Representative Jim Hagedorn of Minnesota started his career
as a congressional staffer for Minnesota congressman Arlan
Strangeland here in Washington, D.C. Later, he worked as
director for legislative and public affairs for the Financial
Management Service, the U.S. Department of Treasury, and in the
Congressional Affairs Shop for the Bureau of Engraving and
Printing.
Representative Pete Stauber of Minnesota began his career
as a police officer in the early 1990s. He served both as the
president of the Law Enforcement Labor Services Union, Local
363, and as an area commander with the Duluth Police
Department. He later became a city councilman and county
commissioner, and he is a heck of a hockey player as well, both
at the college level, winning national championships and the
pros as well.
Representative Tim Burchett of Tennessee founded a small
business early in his life. He then dedicated himself to public
service, serving in the Tennessee State House, Senate, and most
recently as mayor of Knox County, Tennessee. And we welcome him
as well.
Representative Ross Spano of Florida spent most of his
career as a shareholder of his own law practice, representing
individuals and small businesses in Hillsborough County. In
2012, he successfully won a seat in Florida's House of
Representatives where he served for 3 terms.
Representative John Joyce of Pennsylvania, is a physician
who began his medical career working with the Navy at
Portsmouth Naval Hospital in Virginia during Operations Desert
Shield and Desert Storm. He returned to his hometown to open
his own practice and has been caring for Central Pennsylvanians
ever since.
We welcome all our new Members, and this Committee
considers many issues that are related to our nation's economy,
so I know the knowledge and expertise of our new Members will
be extremely helpful. We welcome all of you to the Committee.
I also want to recognize the Republican Members who are
returning to the Committee.
Amata Radewagen of American Samoa, who will serve as our
Vice Ranking Member for the 116th Congress. And Trent Kelly of
Mississippi and Troy Balderson of Ohio. Each of them has made
significant contributions to our Committee's consideration of
policy. And I know that their experience will be invaluable as
we contemplate the critical issues facing our nation's small
businesses.
So Madam Chairwoman, I look forward to another 2 productive
years working with you and working on policies that will help
America's entrepreneurs succeed.
And I yield back the balance of my time.
Chairwoman VELAZQUEZ. Thank you. The gentleman yields back.
And I look forward to the discussion and debates that I know
will transpire over the next 2 years.
And now we will move to the rules package. With today's
rules package, I believe we are making it clear to the small
business community that we are committed to working together
and advocating on their behalf.
Pursuant to Clause 2(a) of House Rule 11, today's first
order of business is to adopt the Committee rules for the 116th
Congress. The adoption of the rules is central to the work we
do and the tone we set in this body. Perhaps most importantly
they must ensure that all points of view are considered and
that the minority retains their full rights to be heard. In
this context, the rules remain largely unchanged from the 115th
Congress. The rules have been modified slightly to conform with
House Rules adopted last month. That change clarifies that
weekends and holidays when the House is not in session are not
counted for purposes of the 3 days rule for markups. Hearings
are one of our best platforms and offer tremendous insight and
we welcome non-Committee Members to participate. Our rules now
make it clear that they are welcome to attend our hearings with
appropriate notice and to question witnesses with the approval
of the Chair and Ranking Member. However, they cannot be
counted for purposes of a quorum or to participate in any vote.
The rules package also institutes a longstanding practice
of the Committee to extend the 5 minute oral testimony of a
witness as long as the Chair and Ranking Member agree.
Finally, the rules rename three of our Subcommittees which
reflect the changing nature of small business challenges. The
new Subcommittees are the Subcommittee on Contracting and
Infrastructure, formerly Contracting and Workforce; the
Subcommittee on Innovation and Workforce Development, formerly
Health and Technology; and the Subcommittee on Rural
Development, Agriculture, Trade, and Entrepreneurship, formerly
Agriculture, Energy, and Trade.
This Committee needs to run in a cooperative manner. I
believe the best way to do that is to make sure both sides have
an equal voice and are treated in a way that is fair. Through
adoption of these rules we will continue this practice.
I would like to thank the staff on both sides for working
closely on the rules package. Thank you.
At this point I would like to yield to Ranking Member
Chabot for any comments he may have on the rules.
Mr. CHABOT. Thank you, Madam Chairwoman. I want to thank
you and your staff for working so collaboratively on the
Committee rules package. This package provides continued
protection for the rights of the minority, now that we are in
the minority, and we had those same protections for my
colleagues on the other side of the aisle when they were in the
minority. And the opportunity for minorities' input into the
operation of the Committee.
I want to take a moment to highlight just several rules,
and you have already mentioned these. But the first, the
minority will continue to have control of fully a third of the
Committee's budget. This rule goes a long way toward
maintaining the collegial tone of the Committee.
Second, witnesses, as you mentioned, will limit their oral
presentation to 5 minutes of written testimony. They can
summarize it, of course, which has been the Committee's rule in
the past. In the new rules the Chairwoman, in consultation with
the Ranking Member, may now extend that time if we think that
that would be helpful for the Committee.
Finally, Members who are not Members of the Committee on
Small Business occasionally join the Committee to participate
in a hearing. These Members are not permitted to vote for the
purpose of establishing a quorum or on any matter, but in the
proposed rules may question witnesses if permitted by the Chair
in consultation with the Ranking Member. We support those
efforts and those changes.
Again, I appreciate the Chairwoman and her staff for
working closely with the minority in bringing this rules
package forward. And I urge my colleagues to support it.
And I yield back the balance of my time.
Chairwoman VELAZQUEZ. Thank you, Mr. Chabot.
Are there any Members that wish to be recognized on the
rules?
The Committee now moves to consideration of the rules
package. The clerk will read the title of the document.
The CLERK. Rules and Procedures Adopted by the Committee.
Chairwoman VELAZQUEZ. I ask unanimous consent that the
rules package be considered as read and open for amendment in
its entirety.
Does any Member seek recognition for the purpose of
offering an amendment?
Seeing none, the question is on adopting the rules.
All those in favor say aye.
All those opposed say no.
In the opinion of the Chair, the ayes have it and the
proposed rules are adopted and staff is authorized to make
technical and grammatical changes.
Pursuant to House Rules, the rules adopted by the Committee
on Small Business for the 116th Congress will be published in
the congressional record and made available to the public on
the Committee's website.
Now, we will approve our Subcommittee Chairs and Ranking
Members. The Full Committee Vice Chair will be Representative
Dwight Evans, who was elected by a vote of the Democratic
Caucus.
Representative Jared Golden will be the Chair of the
Subcommittee on Contracting and Infrastructure.
Representative Andy Kim will be Chair of the Subcommittee
on Economic Growth, Tax, and Capital Access.
Representative Jason Crow will be the Chair of the
Subcommittee on Innovation and Workforce Development.
Representative Judy Chu will be Chair of the Subcommittee
on Investigations, Oversight, and Regulations.
And Representative Abby Finkenauer will be the Chair on the
Subcommittee on Rural Development, Agriculture, Trade, and
Entrepreneurship.
I now yield to the Ranking Member, Mr. Chabot, for any
remarks that he may have to introduce the Subcommittee Ranking
Members.
Mr. CHABOT. Thank you, Madam Chairwoman.
I will now introduce the Subcommittee Ranking Members for
the republican side of the Committee.
Representative John Joyce--I would not mind if the Members
could kind of just raise their hand so everybody knows who they
are.
Representative John Joyce from Pennsylvania will be the
Ranking Member for the Subcommittee on Rural Development,
Agriculture, Trade, and Entrepreneurship.
Representative Troy Balderson of Ohio will be the Ranking
Member for the Subcommittee on Innovation and Workforce
Development.
Representative Kevin Hern from Oklahoma will be the Ranking
Member for the Subcommittee on Economic Growth, Tax, and
Capital Access.
Representative Ross Spano from Florida will be the Ranking
Member for the Subcommittee on Investigations, Oversight, and
Regulations.
And Representative Pete Stauber from Minnesota will be the
Ranking Member for the Subcommittee on Contracting and
Infrastructure.
We have an excellent crop of newcomers on the Committee on
our side, and I know that the folks on the other side of the
aisle are pretty good, too. And these folks will be going along
with the really fantastic Members that are already on the
Committee. So we appreciate them being here.
And I look forward to working with our colleagues on the
other side of the aisle in the 116th Congress, and as we have
already indicated, we actually accomplish a lot in a bipartisan
manner on this Committee and we appreciate that.
And I now yield back.
Chairwoman VELAZQUEZ. Thank you.
I move that the list of Subcommittee Chairs and Ranking
Members and Vice Chair as set forth in the roster be approved.
All those in favor say aye.
Those opposed say no.
In the opinion of the Chair the ayes have it and the Chairs
and Ranking Members are appointed.
This concludes the order of business for today's meeting.
Does any Member seek recognition for debate before we
conclude?
If not, without--yes?
Mr. BURCHETT. I am Tim Burchett. I am a new Member. I am
not sure if I am breaking protocol here but I saw on the news
where you stepped up and did the right thing. I saw in your
district where there was, I believe a jail without heat. And as
a county mayor, I know that a lot of people in our jails are
not guilty and a lot of people in Knox County maybe do not
speak the language or are just caught in a bad situation
financially, and I wanted to thank you for looking at the least
amongst us. I cannot imagine anything more horrible than being
in a jail or knowing that your loved one is in there and did
not have heat or anything there in horrible weather conditions.
So I wanted to thank you.
Chairwoman VELAZQUEZ. Thank you so much.
Mr. BURCHETT. And if that costs me votes in Knox County, so
be it. But thank you.
Chairwoman VELAZQUEZ. Thank you so much.
Mr. CHABOT. My guess is it will not.
Chairwoman VELAZQUEZ. I appreciate it. Really appreciate
it.
Any other Member who wishes to make any comment or ask any
questions?
If not, without objection, this meeting of the Committee on
Small Business stands adjourned and the Committee will stand in
recess for a few moments to prepare for the Committee hearing.
Thank you. Thank you all.
[Whereupon, at 10:56 a.m., the Committee was adjourned.]
A P P E N D I X
[GRAPHICS NOT AVAILABLE IN TIFF FORMAT]
[all]