| Weekly Update from Sam |
| Dear Friends,
This week, the Committee’s hearings focused on congressional oversight of two very different problems that have something in common – they both highlight the bureaucratic burden on small businesses.
In recent years, Committee members worked at length on various reforms to increase participation of small businesses in federal contracting, and they were very pleased to see these changes signed into law on January 2, 2013 as part of major defense legislation. That was a year-and-a-half ago, and so far, the Obama Administration has been slow to implement these provisions of the law on behalf of small businesses. This week, the Committee heard testimony lamenting this inertia and predicting that many of the benefits of the reforms won’t be felt until 2017. Read the Washington Post report here.
The federal bureaucracy isn’t the only source of regulatory burdens, as the states also add costs and requirements that can impact growth. One common way states impose costs and burdens on would-be entrepreneurs – or actually limit competition – is through occupational licenses. These requirements are becoming more expensive and sweeping, covering more occupations. What used to be thought of as a safety provision for 5 percent of professions, such as doctors and engineers, is now being applied to professions that pose little public threat. Various states now license professions such as interior designers, florists, or even fortune tellers, and today these requirements impact 30 percent of occupations. These hurdles are harder to clear for lower and middle income Americans and are standing in the way of economic opportunity. I represent a district in Missouri, a state which consistently ranks among those with the lowest license burden, but even here one entrepreneur’s effort to start hair-braiding business ran into roadblocks.
We’ll continue to work for common sense policies that remove obstacles to growth and job creation.
Sincerely,
Sam Graves
Chairman
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Latest Committee Action
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| On Tuesday, the Subcommittee on Contracting and Workforce, under the chairmanship of Rep. Richard Hanna (R-NY), examined the slow implementation of the numerous small business procurement reforms included in the National Defense Authorization Act (NDAA) for Fiscal Year 2013. This legislation was signed by the President on January 2, 2013, but many small business provisions have not yet been implemented by the Small Business Administration and other agencies. The reforms make changes to procurement law that help small businesses compete for federal contracts, including making small business goals part of senior agency employee reviews and bonus discussions, preventing contracting fraud by penalizing companies that front for large businesses, and changing limitations on subcontracting to make it easier for small companies to team on larger contracts.
On Wednesday, the Committee examined the barriers that certain state licensing requirements impose on entrepreneurs and individuals seeking economic opportunity, and how the Federal Trade Commission (FTC) can utilize advocacy and enforcement of federal anti-trust laws to prohibit anticompetitive regulations. On March 26, 2014, the Subcommittee on Contracting and the Workforce held a hearing with testimony from entrepreneurs who encountered licensing obstacles to starting small businesses, even when those licenses did not directly apply to a business or protect public health and safety. This week’s second hearing focused on the FTC’s role in combating onerous licensure through the enforcement of federal anti-trust laws that promote competition. Andrew Gavil, Director of the Office of Policy Planning, Federal Trade Commission, testified.
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News from Washington
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| On Tuesday, the House passed the bipartisan Highway and Transportation Funding Act (H.R. 5021), which funds various highway safety, transit and improvement programs through the Highway Trust Fund, and ensures current highway projects have the funding to continue through May 2015.
On Wednesday, the House passed the FY 2015 Financial Services & General Government Appropriations Act (H.R. 5016), which provides $862 million in total resources for small business programs and the Small Business Administration, including funds for Small Business Development Centers, Women’s Business Centers, business loans and disaster loans. The bill provides annual funding of the Treasury Department, the Judiciary and law enforcement programs. The bill reduces funding for the Internal Revenue Service, and in total saves $566 million from last year’s legislation.
On Thursday, the House passed the America Gives More Act (H.R. 4719), which combines five bipartisan bills to provide more certainty to charitable organizations. The legislation simplifies and extends tax policies that invite the generosity of Americans through charitable giving. Together, these provisions fight poverty and hunger, and will ensure that charitable organizations do not lose money because of expiring provisions in the tax code. Read the Washington Business Journal’s report here.
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| Notable Op-Ed |
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Roll Call:
EPA's Backyard Blitz Imperiled
By Sam Graves
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| July 18, 2014 |
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| What We're Reading |
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Small Biz Resources
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| Tweet of the Week |
@SmallBizGOP "The metrics you requested are not currently available.” The unacceptable response received from #HHS concerning SHOP http://wapo.st/1oXw3vc
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