Rep. Vern Buchanan held a town-hall meeting to discuss health care, jobs and the economy.
Rep. Aaron Schock appeared on Fox Business to discuss the Senate Finance Committee health care legislation.
Must-Reads from the Week:
MSNBC: Small businesses want, fear health care reform
Washington Post: Small Businesses Urged to Prepare for Disruptions From Swine Flu
Administration and the SBA:
Monday was the one year anniversary of the collapse of Lehman Brothers. President Barack Obama marked the occasion by giving a speech designed to build support behind various financial reform proposals aimed at avoiding another economic collapse. President Obama is calling on Congress to create tighter regulation of banks and capital markets to better protect consumers.
The Department of Homeland Security (DHS) and the Small Business Administration (SBA) released a guide for small businesses on how to prepare their companies for a potential H1N1 outbreak. The DHS and SBA guide for small business H1N1 preparation is available at www.sba.gov/flu. According to SBA Administrator Karen Mill, “for countless small businesses, having even one or two employees out for a few days has the potential to negatively impact operations and their bottom line. A thoughtful plan will help keep employees and their families healthy, as well as protect small businesses and local economies."
Review of House Activity:
On Wednesday the House passed H.R. 3246, the Advanced Vehicle Technology Act, by a vote of 312-114. This legislation authorizes $2.9 billion through fiscal year 2014 for the Energy Department program to improve the research and development of fuel efficient U.S. made automobiles. House Science and Technology Committee Chairman Bart Gordon (D-TN) thought that given the current economic climate, it is difficult for the auto industry to focus on research and technology development, and the federal government can help fill the gap. Republicans raised concerns over the bill’s price tag, but all efforts to substantively modify the bill were defeated.
On Thursday, the House passed H.R. 3221, the Student Aid and Fiscal Responsibility Act of 2009 by a 253-171 margin. This legislation effectively makes the government the only provider of student loans. According to CQ, H.R. 3221 replaces the Federal Family Education Loans program with direct government lending, effectively removing the middleman from the lending equation and saving billions of dollars in fees and subsidies. Critics of the bill raised concerns over the jobs that would be lost because of this change. Legislation has yet to be introduced in the Senate.
Legislation and Letters Circulating Around the House: (If you would like to publicize your small business effort in Congress, please email Paul J. Sass at Paul.Sass@mail.house.gov)
Rep. Austria (R-OH) Seeks Cosponsors for the Health Savings and Affordability (HSA) Act of 2009- Almost everyone agrees that our health care system can be improved, but we must be responsible and focus on lowering health care costs and providing more access. Rep. Austria will soon be introducing the Health Savings and Affordability (HSA) Act of 2009, and he is currently seeking co-sponsors. The HSA Act makes improvements and expansions to Health Savings Accounts, as well as makes health insurance tax deductible for everyone. If you would like more information or to cosponsor this bill, please contact Courtney Temple at Courtney.Temple@mail.house.gov or at 5-4324.
Rep. Hensarling (R-TX) Seeks Co-Signers for a Letter about Chinese Tire Tariffs- In light of the Administration’s decision to impose additional tariffs on tire imports from China, Congressman Hensarling is circulating a letter for signatures asking President Obama to reconsider this decision. Members already signed onto the letter include: Tom Price, Michele Bachmann, Lamar Smith, Kenny Marchant, Mary Fallin, and Phil Gingrey. To sign onto the letter, please contact Kyle Jackson (kyle.jackson@mail.house.gov). The deadline for signing onto this letter is COB on September 22.
Rep. Issa (R-CA) Seeks Cosponsors for H.R. 3438, the “Access to Insurance for All Americans Act”- The Access to Insurance for All Americans Act allows non-federal employees to enroll in the same health care plan that is currently accessible to Members of Congress and federal employees through the Federal Employee Health Benefit Program (FEHBP). All Americans, including small businesses and the self-employed, would have the opportunity to provide affordable health coverage to employees. Currently, more than 300 private health care options are available regardless of pre-existing conditions. Coverage is portable, so employees can take their coverage with them when they change jobs. This legislation would allow for a tax deduction equal to the amount paid for premiums during the taxable year for coverage for the taxpayer, spouse, and dependents. This proposal will not make health insurance mandatory, plans would not be subsidized by the taxpayers, and this bill does not create a government-run insurance program. For more information or to cosponsor, please contact Molly Boyl (6-1085) or Molly.Boyl@mail.house.gov.
Review of Senate Activity:
Senator Max Baucus (D-MT) introduced his highly anticipated health care reform bill this week. Republican and Democrat senators and downtown interest groups expressed overwhelming concerns with the $856 billion bill and not one Republican senator signed onto the measure. Discussions are ongoing and a markup is scheduled to start next week.
On Thursday, the Senate passed H.R. 3288, the Transportation, Housing and Urban Development appropriations bill for Fiscal year 2010. The $122 billion bill passed by a vote of 73-25. The Senate and House bills both would provide almost $75.8 billion for the Transportation Department. The Senate bill would spend $45.8 billion for the Housing and Urban Development Department compared with $47 billion in the House bill. The most significant difference in spending between the House and Senate version is high-speed rail, which is a priority of the Obama Administration.
On Wednesday, the Senate Committee on Small Business and Entrepreneurship reported out favorably the nominations of Peggy E. Gustafson to be the Small Business Administration’s (SBA) Inspector General and Winslow Lorenzo Sargeant to be the Agency’s Chief Counsel for Advocacy. Gustafson and Sargeant must now be confirmed by the full Senate. The Committee voted unanimously for Ms. Gustafson’s nomination, and favorably reported Dr. Sargeant’s nomination by a vote of 13-6. Concerns raised about Dr. Sargeant focused on his lack of relevant regulatory experience and the fact that he is not an attorney. Visit here to view the Committee’s press release.
On Friday, the Senate Small Business and Entrepreneurship Committee will be conducting a field hearing in Galveston, Texas. The field hearing is entitled “A year later: Lessons Learned and Progress Made After Hurricane Ike.”
House Small Business Committee hearing summary this week:
On September 16, 2009, the Subcommittee on Rural Development, Entrepreneurship, and Trade held a hearing examining the role of auto dealerships in rural economies. Witnesses who provided the Subcommittee with testimony were: Daniel Allison of Allison’s Chevrolet in Sylva, North Carolina; Donald Thomas, Owner and President of Thomas Motors in Moberly, Missouri; and, Ernie Goss, Ph.D., MacAllister Chair and Professor of Economics at Creighton University in Omaha, Nebraska.
The hearing examined the significant role auto dealerships have on the economies of rural communities. A specific focus was placed on the recent actions of both Chrysler and General Motors (GM) to eliminate a significant portion of their dealership networks. Both Messers. Thomas and Allison have been instructed by GM to wind down their businesses by October 2010, at which time GM will not be renewing their leases. Both men had similar testimony, explaining that they are the only GM dealerships in a several county area and have grave concerns that their customers will face significant hardships finding places to get their GM automobiles services. Both dealers expressed concerns about the impact their closures will have on their local economies. It is not only the loss of employment for their employees that concerns them, but also the ripple effect it will have on their suppliers, the local media outlets who rely on their advertising dollars, and peers in their small business community who depend on their employees to spend money in their stores.
Dr. Goss examined the methods by which Chrysler and GM determined which dealerships would close. He testified that GM and Chrysler did not appear to include a cost-benefit analysis as part of the dealer termination process. He also presented evidence that rural communities appeared to be over represented in the total number of terminations. Dr. Goss explained that he could see very little to no reasoning as to why rural dealerships appeared to be hit harder than those in urban areas.
Other Small Business off the Hill:
The National Small Business Association released a study on On-Bill Financing that examines ways small businesses can reduce emissions and energy use while improving profitability.
Looking Forward:
House Small Business Committee hearings next week:
Full Committee Hearing, September 23, 2009, 1:00 pm entitled, “The Impact of Financial Regulatory Restructuring on Small Businesses and Community Lenders.” 2360 Rayburn House Office Building.
Subcommittee Hearing, September 24, 2009, 1:00 pm entitled, “The Roles of Federal Labs in Spurring Innovation and Entrepreneurship Across the U.S.” 2360 Rayburn House Office Building.
