[House Hearing, 117 Congress] [From the U.S. Government Publishing Office] ORGANIZATIONAL MEETING ======================================================================= HEARING BEFORE THE COMMITTEE ON SMALL BUSINESS UNITED STATES HOUSE OF REPRESENTATIVES ONE HUNDRED SEVENTEENTH CONGRESS FIRST SESSION __________ HEARING HELD FEBRUARY 4, 2021 __________ [GRAPHIC NOT AVAILABLE IN TIFF FORMAT] Small Business Committee Document Number 117-001 Available via the GPO Website: www.govinfo.gov __________ U.S. GOVERNMENT PUBLISHING OFFICE 43-320 WASHINGTON : 2021 -------------------------------------------------------------------------------------- HOUSE COMMITTEE ON SMALL BUSINESS NYDIA VELAZQUEZ, New York, Chairwoman JARED GOLDEN, Maine JASON CROW, Colorado SHARICE DAVIDS, Kansas KWEISI MFUME, Maryland DEAN PHILLIPS, Minnesota MARIE NEWMAN, Illinois CAROLYN BOURDEAUX, Georgia JUDY CHU, California DWIGHT EVANS, Pennsylvania ANTONIO DELGADO, New York CHRISSY HOULAHAN, Pennsylvania ANDY KIM, New Jersey ANGIE CRAIG, Minnesota BLAINE LUETKEMEYER, Missouri, Ranking Member ROGER WILLIAMS, Texas JIM HAGEDORN, Minnesota PETE STAUBER, Minnesota DAN MEUSER, Pennsylvania ANDREW GARBARINO, New York YOUNG KIM, California BETH VAN DUYNE, Texas BYRON DONALDS, Florida MARIA SALAZAR, Florida SCOTT FITZGERALD, Wisconsin Melissa Jung, Majority Staff Director Justin Pelletier, Majority Deputy Staff Director and Chief Counsel David Planning, Staff Director C O N T E N T S OPENING STATEMENTS Page Hon. Nydia Velazquez............................................. 1 Hon. Blaine Luetkemeyer.......................................... 3 APPENDIX Additional Material Submitted for the Record: Rules and Procedures......................................... 8 ORGANIZATIONAL MEETING ---------- THURSDAY, FEBRUARY 4, 2021 House of Representatives, Committee on Small Business, Washington, DC. The Committee met, pursuant to call, at 9:35 a.m., in room 2360, Rayburn House Office Building, Hon. Nydia M. Velazquez [chairwoman of the Committee] presiding. Present: Representatives Velazquez, Golden, Crow, Davids, Mfume, Phillips, Newman, Bourdeaux, Chu, Evans, Delgado, Houlahan, Kim of New Jersey, Craig, Luetkemeyer, Donalds, Fitzgerald, Garbarino, Hagedorn, Kim of California, Meuser, Salazar, Stauber, Van Duyne, and Williams. Chairwoman VELAZQUEZ. Good morning. I call the Small Business Committee organizational meeting to order. Without objection, the Chair is authorized to declare a recess at any time. I would like to begin by noting some important requirements. During the covered period as designated by the Speaker, the committee will operate in accordance with H.R. 965, which was incorporated into the 117th House rule under H.R. 8. Just as we did last Congress, we will follow guidance from the Rules Committee to respect the rights of all Members to participate. Standing House and Committee rules and practice will continue to apply during hybrid proceedings as well. House regulations require Members to be visible through a video connection throughout the proceeding. Due to the nature of a mark-up, it is extremely important that Members follow this rule to ensure a quorum can be established and that Members' votes can be recorded by the clerk. As a reminder, Members can participate in only one proceeding at a time, so if you have another committee proceeding or meeting, please sign off and rejoin later. If a Member wishes to offer an amendment that has not been prefiled, we will take a brief recess to allow for its uploading, printing, and distribution, then resume. We may also recess briefly to address technical issues in the event a Member or witness cannot be recognized to speak. Finally, for those Members physically present in the committee room today, we will also be following the health and safety guidance issued by the attending physician. That includes social distancing, and especially the use of masks. I request Members and staff to wear masks at all times while in the hearing room, and I thank you in advance for your commitment to a safe environment for all. I want to first welcome all returning and new Members to the Small Business Committee. Before we introduce new Members, I want to recognize Mr. Blaine Luetkemeyer, who is returning to the Committee as Ranking Member. Most everyone on the Committee knows that the former Ranking Member, Steve Chabot, and I shared a wonderful working relationship. Over the years, we moved hundreds of bipartisan bills to make the world a little brighter for small businesses. While Steve will be sorely missed, I look forward to working with Blaine and hope that we can continue this committee's tradition of working together. As a former small business owner, Ranking Member Luetkemeyer brings a breadth of firsthand experience to this committee, and he has been a strong voice in Congress for programs that benefit small firms. We all know that small employers are facing challenging times. The pandemic has disproportionately hurt small businesses and workers from every corner of our country, and they fear losing their livelihoods. It is our duty to implement policies to help them rebuild and reshape our nation's entrepreneurial landscape. During the last Congress, we worked together to pass nearly 40 bipartisan bills through the committee and the House. It is my hope that, given the membership we have this year and the defining moment this is for our country, the Small Business Committee will achieve even more for small firms in the 117th Congress. 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. We are their voice in Congress. While we may not always agree, it is my hope we can have a productive dialogue and do so in a respectful manner. I look forward to collaborating with each of you this Congress. Now let me take this opportunity to introduce the new Members on my side. There are a few new Democratic Members of the committee. Dean Phillips is a small businessman from Minnesota who is committed to working across the aisle. He drafted the Paycheck Protection Program Flexibility Act with Representative Chip Roy, helping thousands of small employers. He will be a true asset to our committee. Marie Newman of Illinois brings a breadth of small business experience as a former owner of a consulting firm. Throughout her career, she has also been an advocate for national issues, such as healthcare, LGBTQ, and economic rights. I am confident she will be a champion and powerful voice for small businesses. Carolyn Bourdeaux of Georgia was a professor of public management and policy at the Andrew Young School of Policy Studies at Georgia State University before joining us in Congress. During the Great Recession, Carolyn was the director of the Georgia Senate Budget and Evaluation Office, where she worked with both parties to balance Georgia's budget and get the state economy back on track. Her experience coupled with her commitment to bipartisanship will be instrumental in helping small businesses recover from the pandemic. We welcome you--all of you, and we are excited that you will be serving in this committee. I would also like to welcome back the Members who served on the committee in the 116th Congress: Jared Golden from Maine, Jason Crow from Colorado, Sharice Davids of Kansas, Kweisi Mfume from Maryland, Judy Chu from California, Dwight Evans of Pennsylvania, Antonio Delgado from New York, Chrissy Houlahan of Pennsylvania, Andy Kim from New Jersey, Angie Craig from Minnesota. We are very fortunate to have all you back on this committee. Now I yield to the Ranking Member, Mr. Luetkemeyer, for his opening statement and to introduce his new members. Mr. LUETKEMEYER. Thank you, Madam Chairwoman. I look forward to working with you. You and I have known each other a long time--about 12 years, I think, in total--ten on this committee. I stepped off a couple years ago, but we are back. And, working with you on Financial Services, I think there are a lot of areas I believe we can find some common ground. I look forward to that opportunity. I also want to welcome back the returning Members of the committee on both sides of the aisle, and welcome all the new Members. As we begin this Congress, I want to say that I look forward to continuing the tradition of bipartisanship that we fostered on this committee on behalf of the nation's entrepreneurs and innovators. We always say that small businesses are an important economic driver for our nation. Now, we must ensure that the small businesses that are struggling from the COVID-19 pandemic can keep their doors open and have the tools and freedom they need to recover. My focus and concentration will be on policies that allow small businesses to recover quickly. Additionally, we must create an environment where small businesses grow and expand. Access to capital, a smart regulatory environment, and an appropriate level of taxation are priorities to get that done. I look forward to lively debate and informative hearings, and productive markups as we address these very important topics that will assist the nation's job creators. First, I want to recognize Republican Members who are returning to the committee: Jim Hagedorn and Pete Stauber, both of Minnesota, have made significant contributions to our committee's consideration of legislation and policy, and their experience will be invaluable as we contemplate the very critical issues now facing our nation's small businesses. Next, I would like to introduce the new Members of the committee: Representative Roger Williams of Texas, who is not new to Congress, but new to our committee. He is a small business owner, former Texas Secretary of State, and former Major League Baseball player, Atlanta Braves. I am sure you are going to hear, ``Play ball,'' often this year. Representative Dan Meuser of Pennsylvania, who is also not new to Congress, but new to our committee. Before coming to Congress, he worked for a small healthcare products manufacturer where he helped create thousands of jobs, and actually marketed his products around the world. Representative Andrew Garbarino of New York, a third- generation small business owner, practicing law with his father. Representative Young Kim of California, one of the first Korean Americans to serve in Congress and a former Member of the California State Assembly. Representative Beth Van Duyne of Texas, a former city council member and mayor, who is used to solving problems that we are going to be looking at over the next couple of years. Representative Byron Donalds of Florida, who worked in the banking, finance, and insurance industries and served in the Florida House of Representatives. Representative Maria Salazar of Florida, a five-time Emmy Award-winning journalist. And Representative Scott Fitzgerald of Wisconsin, a former Army officer, newspaper owner, and Wisconsin State Senator. As this committee considers the many issues related to our nation's COVID-19 recovery and economy, I know the knowledge and expertise of all of our new Members will be extremely helpful. Madam Chairwoman, I look forward to working with you and our colleagues in a bipartisan manner to address these issues impacting the small businesses. With that, I would like to present you with a letter of what I think are some great topics to begin the year with, things that I think are important to our small businesses and economy and their role in our economy. And it is pretty lengthy. I won't go into discussing it, but I think it gives us a lot of topics to begin to discuss in the hearings, and I think we are going to need to be able to address a lot of these issues. So, with that, I would like to yield the balance of my time to our Vice Chair, Roger Williams from Texas. Mr. WILLIAMS. Thank you, Mr. Ranking Member. I am also honored to serve with the Chairwoman. We also served on Financial Services and have a long relationship as a Ranking Member, as a dear friend on this Small Business Committee. In the 117th Congress, this committee has never been more important with the things that we are going to be going over. And I will turn my microphone on. After 10 years, I ought to know that. But this committee will never be--never be more important. As someone who has owned a business and still owns a business for 51 years, there is a lot of challenges out there for us, and I know that this committee is the lifeblood, along with small business, of our economy. And Main Street America will ultimately turn this country around from the devastation we have seen from COVID-19. So, Madam Chairwoman, I give you my time back. Thank you. Chairwoman VELAZQUEZ. Thank you. The gentleman yields back. Colleagues, I look forward to the robust discussions and debates that I know will transpire over the next 2 years, and now we will move to the rules package. With the adoption of 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 the House rule XI, today's first order of business is to adopt the committee rules for the 117th Congress. The adoption of the rule 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 mirror those of the 116th Congress with some minor conforming and clarifying changes. Most notable are the renaming of three of the five subcommittees and clarifying the Member question order for subcommittee hearings. Three subcommittee names were modified to reflect the change in nature of small business policy priorities. They are Innovation, Entrepreneurship, and Workforce Development, formerly Innovation and Workforce Development; the next subcommittee, Underserved, Agricultural, and Rural Business Development, formerly Rural Development, Agricultural Trade, and Entrepreneurship; and Oversight, Investigation and Regulations, formerly Investigations, Oversight, and Regulations. The second rule change will clarify Member question order for subcommittee hearings. During the 116th Congress, many Members of the full committee participated in subcommittee hearings when they were not members of that subcommittee. While this is permissible under the rules, a lack of clarity in the rules for this scenario led to confusion with the question order. For the 117th Congress, the rules have been amended to clearly state that subcommittee Members will be recognized to ask questions first before turning to non-subcommittee Members with their question order based on full committee seniority. 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. At this point, I would like to yield to Ranking Member Luetkemeyer for any comments he may have on the rules. Mr. LUETKEMEYER. Thank you, Madam Chair. The committee's rules package before us this morning is a product of both sides working together. The rules provide opportunities for the majority and the minority to participate within all facets of the committee. I thank you for your collaboration, and I look forward to working in a bipartisan manner on many issues to come. I would like to take this time to mention a few of the provisions within the rules. All subcommittees now have a ratio of six majority Members to five minority Members, which allows for appropriate representation across the jurisdictional scope of the committee. Three subcommittees, as you mentioned earlier, have slightly altered names. We appreciate the Chairwoman retaining ``agricultural'' in the new Underserved, Agricultural, and Rural Business Development Subcommittee, as many of our members, including the 3rd District of Missouri, have agricultural land and family farms. The Subcommittee on Innovation and Workforce Development is now the Subcommittee on Innovation, Entrepreneurship, and Workforce Development. And the Subcommittee on Investigations, Oversight, and Regulations is now the Subcommittee on Oversight, Investigations, and Regulations. But make no mistake. No matter the name of the subcommittees, our Members, Republican and Democrat, are equally committed to continuing the rigorous oversight for which the committee is known. Additionally, the new rules now provide, at subcommittee hearings, Members of the full committee who are not subcommittee Members will have the opportunity to question witnesses after the Ranking woman and Ranking Member of both the subcommittee and the full committee if they are in attendance and all subcommittee Members have inquired. This is the way questioning is handled in other House Committees, so it make sense that we follow that protocol as well. Finally, because of social distancing during the 116th Congress, this committee has sometimes been in rooms other than 2360 Rayburn, our customary hearing room. Our rules now state that, for hearings held by the committee or a subcommittee in the committee's hearing room or another assigned hearing room in Washington, D.C., a quorum will be deemed present if one Member from the majority and one Member from the minority are present. However, the rules continue to state that the Chair will exercise reasonable comity by waiting for the Ranking Member, even if a quorum is present, before striking the gavel. Again, I thank the Chairwoman for working with me on this rules package. They provide for a smooth operation of the committee, and I urge my colleagues to support it. I yield back the balance of my time. Chairwoman VELAZQUEZ. The gentleman yields back. 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 on Small Business. 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 purposes of offering an amendment? Seeing no amendments, 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 117th Congress will be published in the Congressional Record and made available to Members and the public on the committee's website. Now we will approve our Subcommittee Chairs and Ranking Members. The full committee Vice Chair will be Mr. Kweisi Mfume from Maryland. Mr. Jared Golden will be the Chair of the Subcommittee on Underserved, Agricultural, and Rural Business Development. Mr. Jason Crow will be the Chair on the Subcommittee on Innovation, Entrepreneurship, and Workforce Development. Ms. Sharice Davids will be the Chair of the Subcommittee on Economic Growth, Tax, and Capital Access. Mr. Kweisi Mfume will be the Chair of the Subcommittee on Contracting and Infrastructure. Mr. Dean Phillips will be the Chair of the Subcommittee on Oversight, Investigations, and Regulations. I now yield to the Ranking Member, Mr. Luetkemeyer, for any remarks that he may have to introduce the subcommittee Ranking Members. Mr. LUETKEMEYER. Thank you, Madam Chair. I am pleased to introduce the Republican Ranking Members for the 117th Congress. First, I want to recognize Roger Williams of Texas, who has agreed to serve as Vice Ranking Member of the full Committee. Next is Jim Hagedorn of Minnesota, who will serve as a Ranking Member for the Subcommittee on Underserved, Agricultural, and Rural Business Development. Ranking Member for the Subcommittee on Innovation, Entrepreneurship, and Workforce Development will be Young Kim of California. Ranking Member for the Subcommittee on Economic Growth, Tax, and Capital Access will be Dan Meuser of Pennsylvania. Beth Van Duyne of Texas will be the Ranking Member for the Subcommittee on Oversight, Investigations, and Regulations. And Maria Salazar of Florida will serve as Ranking Member for the Subcommittee on Contracting and Infrastructure. I believe the experience of all these talented Members will be invaluable as we consider the important issues facing our nation's small businesses. And, Madam Chair, with that, I yield back. Chairwoman VELAZQUEZ. The gentleman yields back. 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 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 a Committee hearing. [Whereupon, at 9:55 a.m., the Committee was adjourned.] A P P E N D I X [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] [all]