E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 113 CONGRESS, FIRST SESSION

Vol. 159 WASHINGTON, WEDNESDAY, DECEMBER 4, 2013 No. 171 Senate The Senate was not in session today. Its next meeting will be held on Monday, December 9, 2013, at 2 p.m. House of Representatives WEDNESDAY, DECEMBER 4, 2013

The House met at 10 a.m. and was fact that President Karzai has refused would like to read the last paragraph called to order by the Speaker pro tem- to sign the proposal offered by the ad- of his editorial. He writes: pore (Mr. COOK). ministration. Is this the neighborhood we want to stay f Since we have been in Afghanistan, in? And fight for? And throw more money at? 2,285 Americans have given their lives We have achieved our goals in Afghanistan. DESIGNATION OF SPEAKER PRO for our country, and 19,514 have been We have won. It is time for our troops to TEMPORE wounded. The time has come for Con- come home. If we stay for another decade, The SPEAKER pro tempore laid be- gress to understand history. From the our good war could come to a very bad end. fore the House the following commu- days of Alexander the Great, to the So, again, Mr. Speaker, it is my hope nication from the Speaker: British, to the Russians, no one has that when we get into 2014, that both parties will come together and say that WASHINGTON, DC, ever changed Afghanistan. December 4, 2013. The American people are tired of the we need to debate on whether this I hereby appoint the Honorable PAUL COOK cost of war, both life and money. As I agreement for 10 years is worth one life to act as Speaker pro tempore on this day. said yesterday, it is my hope that, in or one dollar. And I believe it will be a JOHN A. BOEHNER, early 2014, the leadership of the House vigorous debate. I think it will be good Speaker of the House of Representatives. will permit a debate and a vote on the that the American people can see that f agreement that will obligate our coun- we hear them as it relates to this war in Afghanistan. MORNING-HOUR DEBATE try to Afghanistan for at least 10 more years. I realize that the vote will not Mr. Speaker, before I close, I have The SPEAKER pro tempore. Pursu- change the agreement, because the got a poster from the Greensboro News ant to the order of the House of Janu- President does have the authority, but & Record dated February 27, 2011. It is ary 3, 2013, the Chair will now recog- this will give us a chance to represent the military carrying a flag-draped cof- nize Members from lists submitted by the people of America who, the major- fin off the back of a plane. How many the majority and minority leaders for ity, are opposed to this agreement. more young Americans will have to go morning-hour debate. It is unacceptable that we will con- and walk the roads of Afghanistan and The Chair will alternate recognition tinue to spend billions of dollars at a be killed and lose their limbs? between the parties, with each party time when, according to Special In- I hope that my colleagues in both limited to 1 hour and each Member spector General John Sopko, the waste, parties will join those of us in both other than the majority and minority fraud, and abuse is worse in Afghani- parties who want to have this debate leaders and the minority whip limited stan today than it was 11 years ago. on Afghanistan in 2014. to 5 minutes, but in no event shall de- We in Congress continue to cut fund- Mr. Speaker, I will close now by ask- bate continue beyond 11:50 a.m. ing for programs for the American peo- ing God to please bless our men in uni- f ple, but we refuse to withhold one sin- form, to bless the families of our men gle dollar from Karzai in Afghanistan. and women in uniform, and God to hold AFGHANISTAN No wonder the American people have in His arms the families who have The SPEAKER pro tempore. The given Congress an approval rating of 9 given a child dying for freedom in Af- Chair recognizes the gentleman from percent. ghanistan and Iraq. North Carolina (Mr. JONES) for 5 min- It is time to end the senseless waste f utes. of American lives and American money Mr. JONES. Mr. Speaker, yesterday, in Afghanistan. THE GAS TAX I came to the floor to speak about the I want to thank Roger Simon for his The SPEAKER pro tempore. The bilateral strategic agreement and the editorial in today’s Politico, and I Chair recognizes the gentleman from

b This symbol represents the time of day during the House proceedings, e.g., b 1407 is 2:07 p.m. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor.

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VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00001 Fmt 0636 Sfmt 0634 E:\CR\FM\A04DE7.000 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE H7450 CONGRESSIONAL RECORD — HOUSE December 4, 2013 Oregon (Mr. BLUMENAUER) for 5 min- broad and persuasive requesting Con- ring nationwide to the concept of a rep- utes. gress to tax them. resentative republic, the constant ask- Mr. BLUMENAUER. Mr. Speaker, for Any resources would have a powerful ing of the question: Has this become as long as I have been in Congress, both effect on the economy. The relatively too gridlocked? Has it become too par- parties and two successive administra- small amount in the Recovery Act for tisan? Has it become too hard to be tions have danced around the issue of infrastructure created many jobs be- able to get things done? our infrastructure deficit. For all the cause there is a strong multiplier ef- Maybe we need to do it a different attention to the various fiscal cliffs, fect, about 36,000 jobs for each billion way. Quite frankly, the American peo- the looming infrastructure deficit is dollars invested. And these are family- ple know in their hearts that they every bit as critical. wage jobs all across America that should be represented, they should be For two centuries, infrastructure was aren’t going to be outsourced overseas. heard, justice should be done, trust a bipartisan issue, from Lincoln, with In less than a year, the transpor- should be here, common sense should the transcontinental railroad, to tation bill expires, and absent congres- prevail. The basic principle among so Democrats and Republicans coming to- sional action, we face a precipitous many people, that we should speak for gether to launch the interstate freeway drop in transportation funding next those who cannot speak for themselves, system signed into law by President year and a reduction of 30 percent over- that every American should be heard, Eisenhower. Subsequent road, transit all for the next decade. it goes from the Book of Proverbs to and water investments helped fuel our It doesn’t need to be this way. I am the very foundation of our constitu- economy and tie the Nation together. proposing we implement the three-step, tional system now. More recently, the failure to address 15-cent-per-gallon tax increase that So what do we do about that? long-term funding has also been bipar- was part of the Simpson-Bowles deficit Well, around the world we see it. We tisan. The Bush administration ignored reduction proposal. Communities and see the frustration of other people in strong recommendations from their industry need certainty, especially for other countries. We see it in Syria as own private sector experts that they larger projects that are multistate and they are split up in a civil war. We see empanelled to give advice. multiyear. it in Cairo, in the streets at yet an- Although the Obama administration And this should be the last Federal other set of protests. We see in Thai- did request and employ some modest gas tax increase. Over the next 10 land, the absolute corruption of their funding in the Recovery Act and has years, we need to replace funding for government breaking out in things. We proposed an infrastructure bank and transportation that is based on gallons see votes in the Parliament in the talked extensively and, I think, sin- of fuel consumed, which is going to be Ukraine right now as worldwide, con- cerely about the need for investment, declining, with something more sus- tinent by continent, there is constant what has been lacking has been a spe- tainable, a reasonable adjustment now frustration with their government and cific, concrete proposal from either and a permanent fix in the future, so people rise up in the streets. party to address infrastructure financ- we can stop this dance of avoidance. What do we do about it? How do we ing in America. We will find broad support for this lead? We are the leaders in our coun- While the political maneuvering has form of user fee, which, historically, try. So what do we do? occurred here in Washington, the gap has been acceptable to Republicans as Here is my quick admonition to us: in the highway trust fund has been well, including Ronald Reagan, who in- Stop running down America and each growing, and conditions of our roads, creased the gas tax a nickel a gallon other. We are different. We think dif- bridges, and transit systems have been back when that was real money in 1982, ferent, we function different, our fami- deteriorating. This puts America at a and he established the mass transit lies function different, but we should competitive disadvantage, complicates trust fund account. still be able to honor each other. the movement of goods and people, and Let’s address the infrastructure def- We see each other’s worst. We see on contributes to congestion and pollu- icit, stabilizing transportation funding, the social media sites and we see on tion. and help revitalize and enhance Amer- the press reports and we see everything At the same time the needs grow, the ica’s all-too-slow economic recovery. else. We know so much about each resources are in significant decline. The time is now. other that there is this sense that it is The gas tax has not been increased f different now. But quite frankly, Amer- since the Clinton administration 20 icans have always been flawed people. years ago. The future prospects are AN ADMONITION AND A But we are people that are gathered even worse. Demands are increasing REDIRECTION around our work, our faith, our com- and deferred maintenance takes its toll The SPEAKER pro tempore. The munity, and our family, and that has while we watch the bottom fall out of Chair recognizes the gentleman from made us different. the highway trust fund. Oklahoma (Mr. LANKFORD) for 5 min- We have got to stop demeaning a rep- We have seen a slowdown in revenue utes. resentative republic. This constant due to the near collapse of the econ- Mr. LANKFORD. Mr. Speaker, I rise statement of ‘‘we are gridlocked and omy, a shift in driving patterns while today for an admonition and a redirec- things aren’t working’’ implies to peo- people, especially young people, drive tion, somewhat of a philosophical con- ple all over the country maybe this less, and, of course there is improved versation. system of government that made us fuel efficiency. It is scheduled to fur- America started with a great, the most powerful economy, the most ther reduce gas consumption dramati- healthy reality of what government powerful military, the greatest bastion cally with improved mileage for con- can do and what government cannot for freedom the world has ever known, ventional vehicles, to say nothing of do. A government can’t really control maybe it doesn’t work anymore. hybrids, plug-in hybrids, and electric all of what is happening in every State The problem is not a representative vehicles. from one central area. We begin at the republic. The problem is not our Con- It is time for Congress to act. We very beginning with individual States, stitution. The problem is we are trying have seen our partners at the State individual local government, individ- to do something that is not that. We level increase transportation funding uals making decisions for their family. are shifting away from the way that we in 13 States, but they need Congress to Right now, we see in every poll, in were founded into something that act to maintain that partnership. every conversation, that every one of doesn’t really exist. There is a large coalition that stands us has this great frustration that is ris- Quite frankly, the partisan gridlock ready to support Congress. U.S. cham- ing among the American people. That is not something new. The patron saint ber, the national AFL–CIO, building frustration is not rising because the of Oklahoma is Will Rogers. You can trades, trucking industry, numerous American vision, the American Dream, take every joke he made about Con- associations of small and medium busi- and the American spirit is failing. That gress in the 1920s and pull it up today nesses, local chambers of commerce, frustration is rising somewhat because and it is still funny because things local government, professional organi- of what we are doing and because of haven’t changed on that because, quite zations, bicyclists, the coalition is this constant challenge that is occur- frankly, we think different. But that is

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00002 Fmt 0636 Sfmt 0634 E:\CR\FM\K04DE7.013 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE December 4, 2013 CONGRESSIONAL RECORD — HOUSE H7451 the nature of a country that is like that height. The women who survived Workers had no reason to suspect ours. the fall were broken, crippled, and un- that Walmart walked away due to safe- We have all these voices from all able to support their children. ty concerns because Walmart garments over the country that should come to- Since the Tazreen fire, several brands still dominated the production there. gether and that should work together; have stepped up with payments for sur- By quietly walking away and failing to but they should find us with solutions, vivors, and yet some of the companies tell anybody who could remedy the not getting into their life and taking that were presumably profiting quite danger—workers, trade associations, things over. They need to see a govern- nicely from production at the Tazreen and the government—Walmart left the ment that is thinking for them, not factory have opted not to compensate a Tazreen factory vulnerable to a fire trying to make them the servant. They single victim. that would engulf them. The Walmart see it. Walmart is one of those. They have actions were calibrated to evade re- chosen not to compensate a single b 1015 sponsibility, and they put those women woman who died in the factory, was at risk. Why did we have to vote this week crippled in the factory, had lost their The pattern of evasion was repeated about lead in fire hydrants? Isn’t that job in the factory all because of the fire at Rana Plaza, where 1,132 workers— a no-brainer issue? The government in the unsafe factory. again, mostly women—were killed has become so strong and so powerful The Tazreen factory was known as a when the factory collapsed earlier this in communities that communities are deathtrap. Windows were barred, and year. Walmart claims it did not permit not sure if they can replace their fire the management locked the doors in production there, but evidence found in hydrants anymore? Why is it that the stairwells, leaving workers with no the rubble of that collapsed factory Americans can’t get insurance any- way to escape. shows that Rana Plaza was producing more? Because they are waiting on a Walmart knew this factory was a jeans for Walmart less than a year be- government Web site and they are wor- deathtrap. The company had commis- fore the collapse. ried about what is going to happen in a sioned a series of audits in 2011. Their There is a theme here: when trage- month because they are waiting in line audits uncovered that Tazreen was an dies occur, Walmart claims production for that. overcrowded factory without proper was not authorized as a way to disown Why is it that the education out- fire alarms or smoke detectors, that it responsibility. But every brand comes continue to decline when we in- lacked sufficient fire fighting equip- sourcing garments from Bangladesh crease Federal control year after year ment, with partially blocked exits and knows that extensive subcontracting is after year, and yet our outcomes con- stairwells, and did not post adequate part of the business model. That is how tinue to decline? Even this week, there evacuation plans. fast-fashion is produced. is another international poll coming Because factory management failed You can cut your direct dealings out for that. to improve conditions, Walmart termi- with a specific factory, but there is a Why is it getting harder and harder nated the contracts with the factory. chance someone in your supply chain is to start a company, find a job, pay However, Tazreen factory workers con- going to subcontract right back to that your gas bill? Why is it tougher to fill tinued to produce for Walmart, even factory. The ethics are not com- up your car with gas or pay the bill for though they terminated their contract. plicated. your cell phone? According to documents found in the The United Nations Principles on It is because of increasing regula- ashes, more than half of the factory’s Business and Human Rights call upon tions, increasing fees, increasing con- total production was dedicated to multinationals to conduct due dili- trol, and Americans continue to get Walmart just 2 months before the col- gence through the many layers of their frustrated because they know this is lapse. So while Walmart left the fac- supply chains where the risks are the not what we were designed to be. We tory because it was unsafe, over half of greatest to identify, mitigate, and pre- are doing too many things. We have the production, according to the docu- vent the problems. got to get back to trusting the Amer- ments, was still for Walmart, knowing Had Walmart done that, maybe 1,000 ican people, our State leaders, our they were producing in an unsafe fac- women would be alive today and not local leaders, and we have got to set tory that claimed the lives of 112 have had a factory collapse on them. the standard for what leadership looks women. Maybe 112 women would be alive today. like in America by our rhetoric and by Walmart now claims that the Maybe those women who had to jump our actions. Tazreen factory was an unauthorized out of the third and fourth floor win- We can honor people and honor each subcontractor. Half of the work in the dows to survive the fire would not be other, even in our differences, but we factory was there because supposedly crippled today, would be able to sup- have got to get back to doing this Na- Walmart, whose hallmark of efficiency port their families, and live somewhat tion’s business the way that the Amer- is their supply chain, didn’t know their of a normal life. ican people in their hearts know it subcontractor was placing these very Audits don’t absolve companies of re- should be done, where their voices are significant orders in a factory that sponsibility. If terminating a contract heard, and where they get to make the they abandoned and was also owned, could lead to even greater harm, there decisions. overall, by another company that they is a special obligation, according to f were doing business with. these recognized principles of the I think Walmart is trying to con- United Nations, to stay and remedy the ACCOUNTABILITY FOR LABOR struct a process so that they can deny CONDITIONS IN BANGLADESH problem. Brands have an obligation to the responsibility for the deaths of the both audit working conditions and to The SPEAKER pro tempore. The women, the responsibility to pay help remedy the risk of the most vul- Chair recognizes the gentleman from maybe a benefit to those families who nerable in their supply chain. California (Mr. GEORGE MILLER) for 5 were crushed by the loss of their bread- Walmart, accept responsibility, and minutes. winner, their mother, their sister, their start doing business in a humane way. Mr. GEORGE MILLER of California. wife. It is time to accept that responsi- f Mr. Speaker, a year has passed since bility. the 112 garment workers—mostly When Walmart terminated direct WWW.HEALTHCARE.GOV WEB SITE women—were killed in a factory in contracts at the factory, it never told CYBERSECURITY ISSUES Bangladesh that produced clothing for the workers that it was leaving or why The SPEAKER pro tempore. The brands like Walmart, Sears, and it was leaving. Chair recognizes the gentleman from Kmart. At a recent public forum, Walmart Alabama (Mr. BROOKS) for 5 minutes. Earlier this year, I went to Ban- said that its only responsibility was to Mr. BROOKS of Alabama. Mr. Speak- gladesh and met with women who leapt notify the factory owner, but that is er, the Science, Space, and Technology from the third and fourth floor win- like notifying a criminal that you are Committee recently held a hearing on dows of the factory to escape the fire. aware of his crime while you keep his www.healthcare.gov cybersecurity There is no good way to jump from next potential victim in the dark. threats. Our bipartisan expert witness

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00003 Fmt 0636 Sfmt 0634 E:\CR\FM\K04DE7.003 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE H7452 CONGRESSIONAL RECORD — HOUSE December 4, 2013 panel included Dr. Frederick Chang, a use the Web site because the security determination to make a difference in computer science professor at SMU; Dr. risks associated with the world. Aviel Rubin, a computer science pro- www.healthcare.gov are simply too For more than 17 years, he has joined fessor at Johns Hopkins University; great. with his friends Muhammad Ali and David Kennedy, formerly chief security Mr. Speaker, the ObamaCare Web Gary U.S. Bonds. They haven’t boxed, officer of Diebold Incorporated and cur- site, www.healthcare.gov, is the moth- they haven’t sung, but they have rently the principal security consult- er lode for identity theft, Internet worked to put a light in the darkness ant for TrustedSec; and Morgan fraud, and other criminal activity. of the lives of so many. Wright, formerly with Cisco security For emphasis, Mr. Speaker, a bipar- His career has spanned many aspects. and now CEO of Crowd Sourced Inves- tisan panel of cybersecurity experts He even wrote jingles. He even was able tigations. publicly warns that the to put forward a unique form of music. Now, I am not a cybersecurity ex- www.healthcare.gov cybersecurity But I would say that one of his greatest pert, but I can read the words of those threat is so great that no one should challenges and greatest successes is who are. The SST committee’s hearing use it. Based on their expert advice, I that everywhere he goes, he takes his charter informs members that, in order concur and encourage all Americans to product that he has developed, Vitapro, to fully use www.healthcare.gov, Amer- avoid www.healthcare.gov, the and he changes the hearts and minds of ican citizens must input or verify high- ObamaCare Web site, in any way, those who are suffering. ly personal information, such as: date shape, or form, until its cybersecurity He started donating some of his food of birth and Social Security numbers risks are fixed. products to various charities and NGOs for all family members, household sal- f in Canada and the U.S. Soon, Yank’s ary, debt information, credit card in- HUMANITARIAN YANK BARRY, dear friend Muhammad, as I indicated, formation, place of employment, home FOUNDER OF THE GLOBAL VIL- joined the Global Village, and they addresses, and the like, information LAGE CHAMPIONS FOUNDATION brought food, medical supplies, cloth- that is a treasure trove for ing, and educational tools to refugee cybercriminals and identity thieves. The SPEAKER pro tempore. The camps and orphanages in areas strick- Further, the ObamaCare Web site Chair recognizes the gentlewoman from en by disaster all over the world, from interacts with the IRS and Social Se- Texas (Ms. JACKSON LEE) for 5 minutes. Africa to Bulgaria and places beyond curity Administration databases, Ms. JACKSON LEE. Mr. Speaker, our imagination. As well, he worked thereby exposing Americans to even with a lot of enthusiasm, I rise to rec- with those like Celine Dion, Michael greater risk of theft of their most pri- ognize and to acknowledge a renais- Jordan, Buzz Aldrin, and many others. vate personal information. In their sance man, a man with a sense of humor, who, along with his wife, written testimony, these experts warn b 1030 the following about the Yvette, was determined to help make www.healthcare.gov Web site: the lives of children around the world As a result of his ongoing fight ‘‘There are clear indicators that even much better. Yes, he had a sense of against hunger, Mr. Barry has received basic security was not built into the humor, and he was also a musician, and nearly two dozen awards since 1995, in- www.healthcare.gov Web site.’’ he visualized a day without hunger, cluding the India Humanitarian Serv- ‘‘The vast amount of hoping for it to be December 31, 2013. ice Award; the Bahamian Red Cross www.healthcare.gov code also means Yank Barry has many sides to him, but Humanitarian Award; the Cote d’Ivoire applying industry standard security enthusiastically, he takes each chal- Humanitarian Award; the Juarez, Mex- practices is a task that can have no lenge—some that he has overcome in ico, Hands of Love and Hope Award. real chance of success.’’ life—and put on the boxing gloves and And it goes on and on and on. Www.healthcare.gov ‘‘creates mas- simply won. He does not do this for the awards. sive opportunity for fraud, scams, de- I am excited that he joined in part- He does this for the simplicity of being ceptive trade practices, identity theft, nership with Gary U.S. Bonds and Mu- able to go into Bulgaria, where those and more.’’ hammad Ali to form the Global Village fleeing from the oppression of Syria Mr. Speaker, these threats to Amer- Champions Foundation not just for were in camps that were not ready for ican family finances prompted me to boxing but really to take boxers and humankind. Because of his frustration ask the panel of cybersecurity experts box the troubles of the world away. In and because of his heart, he decided to whether, under ObamaCare, Americans the course of his work, he has served look for hotels that he could lease so could seek compensation from the Fed- almost 1 billion meals—954 million—on he could move some of these desperate eral Government for financial losses his way to 1 billion. He also didn’t take Syrian refugees that were already op- caused by their use of ‘‘no’’ for an answer in working to re- pressed, already having lost loved ones, www.healthcare.gov. In reply, not one lease five Bulgarian nurses and a Pales- into those hotels with clean water and expert—not one—indicated ObamaCare tinian in Libya a few years ago, which places for their families to be. requires the Federal Government to was not an easy task. As I chatted with him, I was moved compensate American citizens for cy- So along with his 30-year music ca- by the story of a family of 17. He didn’t bersecurity financial losses caused by reer, jamming with Jimi Hendrix, writ- think anything of moving them out of their forced use of the ing jingles, and, yes, singing with the a room smaller than a classroom and www.healthcare.gov Web site. Kingsmen of ‘‘Louie, Louie’’ fame, we giving them space in a hotel so that If these experts are right, and if you can be grateful that he and his wife, they could live in dignity and maybe are an American citizen who obeys Yvette, turned to a very important even think of going back to a Syria ObamaCare dictates, and you suffer challenge, the Global Village Cham- that would be free from oppression and from identity theft or other financial pions Foundation, which strives to be- devastation. losses, the White House response is es- come the undisputed world leader in And so it is good that—his roots sentially, Tough luck; you are on your private humanitarian delivery of nutri- being in our neighboring country, Can- own. Well, that is unsatisfactory and tion to needy persons everywhere, sus- ada—he came here to the United States insufferable. taining human life and helping to to make a difference. I next asked the bipartisan panel of eradicate hunger from the face of the I am delighted today to recognize Mr. experts, ‘‘Given www.healthcare.gov Earth. Yank Barry for his humanitarian serv- security issues and assuming for the As someone who has worked with the ice to all of the world and to be able to moment that you would be personally Congressional Children’s Caucus, it ex- say to him, Well done in life. Continue responsible for all damages incurred, if cites me to note that he continues to to serve and save others. any, from your advice, would any of provide support for the children that Mr. Speaker, I rise today to pay tribute and you advise an American citizen to use we are already supplying with meals to recognize the humanitarian deeds of an this Web site as the security issues now and other necessities. He spans the icon in the music industry and a giant on the exist?’’ Their bipartisan response was a Global Village Champions team to in- world scene to eradicate hunger from the face stunning and unanimous, No; do not clude people with diverse skills and a of the Earth. Yank Barry was born in Montreal,

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00004 Fmt 0636 Sfmt 9920 E:\CR\FM\K04DE7.005 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE December 4, 2013 CONGRESSIONAL RECORD — HOUSE H7453 Canada in 1948. A gifted musician, Yank en- families, who fled Syria, are getting a chance onciling House and Senate versions of joyed 27 years in the music industry as a sing- at a fresh start and living. Yank’s goal is to the farm legislation is now taking er, composer, arranger and producer. His ca- provide these refugees with stable living con- place. reer began in 1965 as the lead singer of the ditions and food. It is important for all Americans to Footprints, singing Never Say Die and in Working hand-in-hand with local agencies understand that the farm bill is not 1967, he became the lead singer of the tour- and NGOs, he has helped countless people in just about farms or food; but it is also ing Kingsmen, best known for Louie, Louie. their time of need, often traveling to politically a jobs bill, a trade bill, an energy bill, He has enjoyed success in the field of adver- unstable areas when very few would lend a a conservation bill, and even a national tising jingles including Kellogg’s Raisin Bran, helping hand. Yank’s goal is to have delivered security bill. One out of every 12 jobs Dr. Pepper, Kodak, Red Lobster and General 1 billion meals by Dec. 31, 2013. in the United States is related to agri- Motors. f culture. Barry pioneered the first quadraphonic RURAL AMERICA In the House version of the bill, I album—now known as surround sound—along strongly support initiatives that help with Robert Lifton and Ben Lanzarone at Re- The SPEAKER pro tempore. The beginning farmers and ranchers start gent Sound Studios in New York in 1970. In Chair recognizes the gentleman from their agriculture operations. I support 1971, he recorded the rock opera ‘‘The Diary Nebraska (Mr. FORTENBERRY) for 5 min- initiatives to promote the development of Mr. Gray’’, which put him on the cover of utes. of local food markets, tighten payment many trade magazines and produced the Mr. FORTENBERRY. Mr. Speaker, it limitations, and enact reasonable re- Broadway show ‘‘Let My People Come’’ at the has been said that there is nothing that forms to the SNAP program while also Imperial Theater in 1979. He has also ap- is wrong in America that can’t be fixed protecting those with food security peared on the The Mike Douglas Show, The by what is right in America. needs. I am hopeful that the final bill Merv Griffin Show, The Smothers Brothers Clearly, there are very significant written will retain the important re- Comedy Hour and The Sally Jessy Raphael difficulties in this body. There is tur- forms that actually help save taxpayer Show. And in 1975, Yank was commissioned moil in our health care system. The pa- money and ensure farmers receive im- by the White House to write and compose ralysis in Washington, a sluggish econ- portant risk management tools. ‘‘Welcome Home P.O.W.s’’. omy, and a fractured culture all lend In 1990, Yank developed Vitapro, a dehy- themselves to a search for deeper Mr. Speaker, a recent University of drated soy-based meat-replacement product. ideals and for something to cling to. Nebraska survey showed that a major- While traveling on business, Yank witnessed Mr. Speaker, we are quite fortunate ity of students desire to move home to desperate living conditions that touched his where I live in Nebraska to maintain a their rural hometowns, given the right heart. He started donating some of his food strong tradition and connection to the opportunity to provide for themselves product to various charities and NGOs in Can- past, which gives guidance for the time and raise a family. In recent years, our ada and the U.S. Soon Yank’s dear friend Mu- in which we live. But we don’t often re- State, through hard work, personal re- hammad Ali joined Global Village Champions flect upon our strength. In the final sponsibility, and responsible govern- and they brought food, medical supplies, cloth- analysis, it really is our land, it is our ance, has distinguished itself as an ing and educational tools to refugee camps, people, and it is our values. ideal place to live, work, and to raise a orphanages and areas stricken by disaster all Recently, in the heart of America’s family. More than any one piece of leg- over the world. farm country, I had the pleasure of islation, these are the deeper values In 1995 Yank Barry founded the Global Vil- speaking with very attentive and en- that we need to nurture and protect. lage Champions Foundation which has been gaged high school students eager to Those of us in farm country have a used as a vehicle through which Yank, Mu- discuss the issues before our Nation. great story to tell. We have the re- hammad Ali, Evander Holyfield and numerous We discussed the proud history of our sources and sensible stewardship to use other World Class Champions have provided country, the Declaration of Independ- them responsibly. We have a great tra- nearly a billion meals to people in need across ence, the ties that continue to define dition of values that keeps us tethered the globe. Celine Dion, Michael Jordan, Buzz us as a Nation, and the debates that to an honorable past, which also serves Aldrin, King Mohammed VI of Morocco and will define us as to where we go as a as a guide for the future. Dr. Michael Nobel are only a few of the excep- country. Mr. Speaker, an essential part of re- Mr. Speaker, I believe this will help tional people who have joined Yank as he America find her way. strives for ‘‘A Day Without Hunger’’ on a glob- gaining our balance as a Nation is to al scale. understand, celebrate, and enhance As a result of his ongoing Fight Against America’s rural heritage. As Ameri- f Hunger, Mr. Yank Barry has received nearly cans are more and more removed from two dozen awards since 1995 including the farm life, we don’t think about the con- PUERTO RICO’S TERRITORY STA- India Humanitarian Service Award 2008, Ba- tribution rural life makes to the coun- TUS IS THE PRIMARY CAUSE OF hamian Red Cross Humanitarian Award, the try as a whole. ITS ECONOMIC PROBLEMS Production agriculture remains a Cote D’Ivoire Humanitarian Peace award and The SPEAKER pro tempore. The key strength of America’s economy. the Juarez, Mexico Hands of Love and Hope Chair recognizes the gentleman from Award for his determined efforts to deliver Exciting new opportunities are emerg- Puerto Rico (Mr. PIERLUISI) for 5 min- ing. Expanding domestic food markets food and bring hope to hungry people around utes. the world. In November of 2010 Yank received such as those for natural and organic the Gusi Peace Prize for Social Services, Phi- foods grown within local food systems Mr. PIERLUISI. Mr. Speaker, over lanthropy and International Humanitarianism in provides new opportunities for young the last several months, the press has Manila, The Philippines. Yank was also named and beginning farmers. There is also a been filled with stories about the se- Philanthropist of the Year at the GLA 2011 new bio-based economy that converts, vere economic problems in the U.S. ter- Awards in Kuala Lumpur, Malaysia. This for instance, corncobs to pop bottles ritory of Puerto Rico. These economic award was presented by The Leaders Maga- and livestock waste to electricity, problems have aggravated social prob- zine and the American Leadership Develop- while bringing about a new kind of lems like crime, have generated anx- ment Association. The most recent acknowl- American manufacturing based upon iety for individuals and institutions edgement of Yank’s humanitarian efforts is his the resources of rural communities. that have invested in Puerto Rico’s nomination for the 2012 & 2013 Nobel Peace Another notable point is this, Mr. bonds, and have caused island residents Prize. These awards are a byproduct of Mr. Speaker: young men and women from to relocate to the 50 States in unprece- Barry sharing his good fortune in a tangible rural areas of America serve in the dented numbers. way. military in much more significant The statistics are staggering. In re- Most recently, Yank Barry and the Global numbers. cent years, Puerto Rico’s population Village Champions Foundation along with Farm policy has an important role in has fallen by more than 4 percent, Evander Holyfield have freed more than 50 growing new opportunities in rural while the number of Puerto Ricans liv- Syrian refugees, many of them children who America. Mr. Speaker, we need to pass ing in the States has increased by over are now beginning new lives in Bulgaria. The a farm bill. The arduous process of rec- 45 percent.

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00005 Fmt 0636 Sfmt 0634 E:\CR\FM\A04DE7.003 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE H7454 CONGRESSIONAL RECORD — HOUSE December 4, 2013 As Puerto Rico’s representative in which is why 125 of them have cospon- under expanded medical assistance, it Congress, it pains me to read media ac- sored legislation I introduced that pro- is true that hospitals will be paid, but counts of the island’s troubles, espe- vides for an up-or-down vote in Puerto they are going to be paid 40 to 60 cents cially because I know that my con- Rico on the territory’s admission as a for every dollar of care that they pro- stituents are just as capable and indus- state and outlines the steps the Fed- vide—not exactly a sustainable margin. trious as their fellow citizens in any eral Government will take if a major- More accurately, it is a pathway to other jurisdiction. Puerto Rico has ity of voters favor admission. bankruptcy for hospitals when coupled enormous potential, but the reality is There are many reasons to oppose with the new-found population of unin- that this potential is not being ful- Puerto Rico’s territory status, which is sured. filled. unequal, undemocratic, and un-Amer- Mix this with the cost of compliance Although the island’s problems have ican. One of the most important rea- that will be rolling out from the certainly grown worse in recent sons why Puerto Rico must discard this Obama administration of the approxi- months, it is critical for policymakers status in favor of either statehood or mately 130 new regulatory agencies and the American public to understand nationhood is because the current sta- founded under the ObamaCare legisla- that these problems are not of recent tus has failed—and will continue to tion. vintage. To the contrary, for at least fail—to provide the island’s 3.6 million Today, the cost of compliance with four decades, Puerto Rico’s economic American citizens with the economic government mandates, including Medi- performance—and by extension, qual- opportunities and the quality of life care billing and HIPAA, account for a ity of life on the island—has been far they deserve. significant part of any hospital’s over- worse than any State, according to Those who refuse to acknowledge head expenses. Multiply this by 100 every indicator, including unemploy- this fundamental truth for ideological under the yet-to-be-administered man- ment, average household income, and reasons are doing a great disservice to dates and the costs of care will have to the ratio of government debt to eco- the people of Puerto Rico. They are on dramatically increase just to keep the nomic production. the wrong side of history. doors open and the lights on for every In other words, Puerto Rico’s dif- f hospital. ficulties have endured in more or less The human resources cost of pro- the same form, regardless of who holds OBAMACARE IMPACT ON viding health care coverage for hos- power in Washington and San Juan and HOSPITALS pitals, whose number one asset is a irrespective of the public policies they The SPEAKER pro tempore. The qualified and trained employee, will in- formulate. Chair recognizes the gentleman from crease as the ObamaCare employer To be sure, fiscal mismanagement at Pennsylvania (Mr. THOMPSON) for 5 mandate is finally implemented just a the local level and insufficient atten- minutes. year from now. tion at the Federal level have both Mr. THOMPSON of Pennsylvania. Finally, consider the fees and taxes been factors contributing to Puerto Mr. Speaker, there has been much doc- imposed on hospitals in 2014, just Rico’s problems, but the record clearly umented and published about the prob- weeks away. establishes that they are not the main lems resulting from the Affordable Earlier this week a hospital CEO factor. Health Care Act. Millions of Americans from my district reported: What, then, is the principle source of are waking up to the cancelation of We’re going to have to pay close to $200,000 Puerto Rico’s longstanding woes? health insurance policies that they next year, as will every hospital. In a recent editorial, The Washington Hospitals will see various new fees, Post correctly identified the culprit, have depended on to meet their fami- including a $5,000 levy so the govern- noting that the territory’s economic lies’ needs at an affordable price. There ment can do research on the effective- problems are ‘‘structural—traceable, are skyrocketing premiums and de- ness of hospitals working within the ultimately, to its muddled political ductible increases under the pressures plan. Additionally, hospitals will pay a status.’’ Curiously, The Post then as- of paying for coverage mandates they serted that ‘‘there will be time enough do not want, cannot afford, or may $19,500 health insurer’s fee and a to debate’’ the status issue later and even have a moral objection to. $160,000 transitional reinsurance fee that Puerto Rico, for the time being, One area that has received little at- that will go into a pot to protect insur- should concentrate on fixing its fi- tention so far in this debate is what ance companies against the risk of nances. the impact will be on our hospitals, winding up with numerous high-risk As I observed in a letter to The where much of the needed health care customers. Post’s editor, this is like a doctor rec- is provided by caring and competent These are added costs for the hos- ommending medicine to alleviate a pa- professionals. pitals that Americans rely on for ac- tient’s symptoms but doing nothing to As a health care professional who cess to health care. I have to wonder treat the underlying disease. served in rural hospitals for nearly 30 what now is so affordable about the Af- As long as Puerto Rico remains a ter- years as a therapist and a manager, I fordable Care Act. Bankrupt hospitals ritory, deprived of equal treatment am confident that the future of rural serve no one. under critical Federal spending and tax and underserved urban hospitals is not Americans deserve better. credit programs, forced to borrow heav- good under the pressures and the man- f ily to make up the difference, and lack- dates of ObamaCare. b 1045 ing the ability to vote for the Presi- While some point to tens of millions dent and Members of Congress who of Americans who were uninsured and THE AFFORDABLE CARE ACT AND make our national laws, the island will now having some type of coverage—a PREVENTIVE HEALTH be in a position merely to manage, plus for the bottom lines of hospitals— The SPEAKER pro tempore. The rather than surmount, its economic I would encourage a closer and more Chair recognizes the gentlewoman from problems. This is the only reasonable thoughtful look. Connecticut (Ms. DELAURO) for 5 min- conclusion to draw from decades of em- First, the CBO has estimated that, utes. pirical evidence. even after full implementation, there Ms. DELAURO. Mr. Speaker, 27 years A majority of my constituents under- will still be tens of millions of Ameri- ago, I was diagnosed with ovarian can- stand this, which is why they voted to cans uninsured. Based on current re- cer. I was lucky. I had excellent doc- reject territory status in a referendum ports from across America, this may tors who detected the cancer by chance held 1 year ago. The Obama adminis- include a lot of middle class Americans in stage 1. I underwent radiation treat- tration recognizes this as well, which is who find themselves, for the first time, ment for 21⁄2 months. Because of the why it proposed the first federally unable to afford what ObamaCare dic- grace of God and biomedical research, I sponsored status vote in Puerto Rico’s tated. stand here today, and I am fortunate to history to resolve the issue once and For hospitals, that ensures the con- say that I have been cancer free ever for all. tinuation of bad debt and charity care since. And, finally, Members of Congress that hampers their balance sheets. For I can tell you for a fact that access to from both parties comprehend this, lower-income individuals now insured preventive health care saved my life. If

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00006 Fmt 0636 Sfmt 0634 E:\CR\FM\K04DE7.008 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE December 4, 2013 CONGRESSIONAL RECORD — HOUSE H7455 my ovarian cancer had not been diag- for the upcoming year, and by law, across the aisle. For many, it really nosed and caught in stage 1, I might April 15 was the deadline by which the gave hope and a belief in our govern- not be here today, but many women budget was to have been completed, ment that we are still capable of put- are not so lucky as over 15,000 die every but that hasn’t happened. Now it is De- ting aside political posturing and of year from ovarian cancer. While I sur- cember 4, so that means that their bill building consensus around the difficult vived by that off chance of luck in that is 234 days overdue. In fact, tech- issues that face our country. diagnosis, no one should have to sur- nically, the Federal fiscal year began But today, as I speak, Americans are vive by luck, which is why my Demo- on October 1. The majority’s bill is ac- asking: What happened? They are con- cratic colleagues and I worked hard. tually 7 months and 20 days overdue. A fused as to why the House of Rep- We worked very hard to make sure parking ticket that old might land you resentatives can’t do the same thing that prevention and wellness are such a in jail. Not making your car payments that the Senate did and pass immigra- critical part of the Affordable Care for 7 months might likely result in tion reform. They are even more con- Act. Before we passed this trans- your car’s being repossessed, right? fused as to why the House can’t even formative piece of legislation, one in The Budget Committee is supposed to dignify the issue with a simple up-or- five women over age 50 had not had a finish its one bill by April 15, but it down vote. mammogram in the past 2 years, most- just can’t seem to find a way to do it. ly because she could not afford one. Those people have not gone away, Then, if it were to have done that, Mr. Speaker. Oh, no. In fact, today, the Now mammograms are covered—they the Appropriations Committee, which are covered for all Americans—with no call to action is still as loud and clear depends on the Budget Committee for a as it has ever been. out-of-pocket costs. So are annual total budget number, could get its checkups, colonoscopies, diabetes, and work done to produce not just the one Just yesterday, I visited the Fast for other cancer screenings—at no cost. but the 12 bills it is mandated to move Families movement on The National Let me repeat that. They are the bene- through to passage to run the Federal Mall, where faith leaders had actually ficiaries of lifesaving treatments. departments of the Government of the been fasting for 22 days—22 days with Preventive care not only helps to United States of America—everything no food. Some were hospitalized to keep Americans healthier; it also helps from the Forest Service, to the vet- safely break the fast per the doctor’s to drive down the cost of health care so erans’ clinics, to the Social Security orders, but others pressed on. Replace- that people can get access to the serv- Administration, department after de- ment fasters stepped up, including our ices that they need. Chronic and often partment. own Representative KENNEDY, who, in preventable diseases, such as heart dis- The American people are waiting for the legacy of his grandfather, Bobby, ease and diabetes, cause seven out of 10 this House, led by the Republican ma- acknowledged the need to embrace the deaths in the United States of Amer- jority, to get the job done of producing immigrant issue. ica, and they account for 75 percent of the 2014 budget. America doesn’t need So I ask my colleagues in the major- our health spending. Preventive care any more beauty pictures of committee ity, my colleagues on the other side of can help Americans avoid these ail- chairs prancing and posturing in front the aisle: What are we waiting for? Our ments or to catch them before it is too of cameras. They need to go into the job creators want reform. Our work- late. force wants it, and our spiritual leaders That is what the Affordable Care Act committee rooms and get the work say it is the right thing to do. Over- does. That is what the people of this done. The majority is 234 days overdue. whelmingly, so do the American peo- country need to know. There are Tomorrow, it will be 235 days overdue. My goodness. There are only 26 days ple. countless stories, after stories, after stories of people’s lives being saved be- left in this calendar year. Even Santa The facts are so clear that reform cause they have the opportunity to get Claus must be shaking his head in dis- will tremendously benefit all of our a treatment or something that says belief. Talk about running the ship of country. In fact, the Congressional you may be at risk for a particular dis- state aground. Let the majority Budget Office has followed the money, ease, and you can get that identifica- produce the budget bill. It is way over and it estimates that immigration re- tion not by luck but as a routine time. form will increase the gross domestic checkup. No one in the United States Don’t hold up our Republic anymore. product by $700 billion in 2023 and by of America should survive by luck. You are 234 days overdue, and we are $1.4 trillion in 2033; but here we are Now we have an opportunity through all counting. today, facing government shutdowns the Affordable Care Act, which is the f and sequester levels that eviscerate law of the land today, to make sure OUR BROKEN IMMIGRATION services that so many vulnerable that everyone—man and woman—can SYSTEM Americans rely on. get those services. This is where we are stuck. It has The SPEAKER pro tempore. The If you expand access to preventive been 5 months since the Senate passed Chair recognizes the gentlewoman from health, it drives the costs down, but its bill; yet we have only 6 days sched- most importantly, it saves lives. Isn’t Wisconsin (Ms. MOORE) for 5 minutes. Ms. MOORE. Mr. Speaker, I rise uled until the end of the year, and we that worth doing, to be able to save haven’t had one serious vote on immi- someone’s life? That is what the Af- today to implore you and the House majority to reach across the aisle to gration reform. Americans have put fordable Care Act is all about. It is just their differences aside for the common one of the many ways that it is good find common ground, to reach out their hands to fix our broken immigration good of our country, and they expect us for men, for women, for families in this to do the same thing in this, our be- Nation, and it is good for America to system. Last summer, Republicans and loved democracy. move in this direction. Democrats in the Senate came to- Once again, I want to reiterate that I f gether and passed comprehensive im- stand here, ready to work with my col- NONEXISTENT REPUBLICAN migration reform with a strong bipar- leagues on the other side of the aisle in BUDGET tisan vote, a vote of 68–32. That is like order to move our country forward. I applaud my brave colleagues on the The SPEAKER pro tempore. The a super-duper majority. In fact, one other side who have already taken a Chair recognizes the gentlewoman from poll last month showed that 63 percent stand and have put politics aside, and I Ohio (Ms. KAPTUR) for 5 minutes. of Americans—two-thirds of Ameri- Ms. KAPTUR. So, here is a ‘‘Jeop- cans—support a path to citizenship for encourage more of my colleagues to ardy’’ question for you, Mr. Speaker: undocumented immigrants. Business answer that calling and meet us half- How many days is the Republican leaders, chambers of commerce, labor way. majority now overdue in getting its unions, faith groups, immigrant fami- The American people are fed up with work done to produce a budget for the lies, law enforcement officials, and the status quo and gridlock here in Nation for 2014? Americans of every race, creed, color, Washington. Let’s come together and Our Nation needs a budget to operate and ethnicity all across our country strengthen our businesses, our econ- the Government of the United States applauded our Senators for reaching omy, our workforce, and our families.

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00007 Fmt 0636 Sfmt 0634 E:\CR\FM\K04DE7.009 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE H7456 CONGRESSIONAL RECORD — HOUSE December 4, 2013 JOBS FOR HEROES ACT Manella had his convoy attacked. new laws that Congress has explicitly The SPEAKER pro tempore. The While it was attacked, it left him with refused to enact. Chair recognizes the gentlewoman from a traumatic brain injury. James Madison, the father of the Illinois (Mrs. BUSTOS) for 5 minutes. Sergeant Manella’s story is one of Constitution, said that its single most Mrs. BUSTOS. Mr. Speaker, I rise hope and the power of resilience. As important feature was giving the legis- today to talk about a piece of legisla- part of Sergeant Manella’s recovery, he lative and not the executive branch the tion I will be introducing that will help focused on training for the Army’s Best decision of war or peace. Yet the execu- put our brave veterans back to work in Warrior Competition. tive now asserts the authority to at- good-paying jobs in the communities Back in August of this year, I had the tack other nations without congres- across our country. It is called the opportunity to visit Afghanistan. I was sional authorization. Jobs for Heroes Act—good for vets and able to meet with soldiers, men and The Bill of Rights protects every good for the economy. women, serving from California’s 15th American from retribution for express- It would extend and expand two tax Congressional District. Over in Afghan- ing their political beliefs; it protects a credits for businesses that prioritize istan, I saw firsthand what our men free press from intimidation; it pro- hiring veterans. Without congressional and women in the armed services en- tects the free and open expression reli- action, both of these tax credits are set dure each day to make sure that we rid gious beliefs; it protects the means of to expire at the end of the month. The Afghanistan as a breeding ground for individuals to protect themselves and time to act is now. terrorism and make sure that never their freedom; it protects every indi- again the United States is attacked vidual from having their records b 1100 from enemies created abroad. searched or their property seized with- Last month, I traveled to all corners I am very thankful for the service of out due process of law. Yet, these fun- of my district to meet with local vet- people like Sergeant Manella and those damental rights have been made a erans to listen to their priorities and I met with while I was in Afghanistan. mockery of by the agents of this ad- to their concerns. I also hosted an eco- I know that Operation Enduring Free- ministration from the IRS to the Jus- nomic summit attended by roughly 200 dom has led to thousands of Americans tice Department to the NSA. people whom I am here to serve. being wounded who served over in Af- The rot began long before this admin- This was all about jobs and all about ghanistan and are healing today back istration, but under this administra- the economy, and this is also about our home on their own path to recovery. tion it has become a crisis. All this is veterans. Making sure veterans have Sergeant Manella’s story is truly one happening, we are told, for the common access to good-paying jobs came up ev- that is uplifting for every soldier, man good. Ours wouldn’t be the first civili- erywhere I went from Pekin to Peoria, and woman, who is recovering. zation to succumb to the siren song of Rock Island to Rockford. Literally, ev- Congratulations again to Sergeant a benevolent and all-powerful govern- erywhere I went. Manella. Your strength, your deter- ment, but every society that has fallen Legislation to help prioritize the hir- mination, and your character is an in- for this lie has awakened one morning ing of veterans is especially crucial due spiration to thousands of other wound- to discover that the benevolence is to the high unemployment rate of ed men and women of our armed serv- gone and that the all-powerful govern- young veterans. Veterans between the ices. ment is still there. ages of 18 and 24 have an unemploy- f Much of the structure of the Amer- ment rate of more than 20 percent. ican Constitution that has preserved PRESERVE THE CONSTITUTION That is 5 percent higher than non- our liberty for 225 years, that has con- veterans of the same age. That is abso- The SPEAKER pro tempore. The tained the unwarranted expansion of lutely shameful. Chair recognizes the gentleman from governmental power, and that has pre- I hope all Members of Congress will California (Mr. MCCLINTOCK) for 5 min- served the natural and individual join me in supporting my commonsense utes. rights of every citizen has been allowed bill to help put veterans back to work Mr. MCCLINTOCK. Mr. Speaker, the to decay. and to making sure that those who House Judiciary Committee yesterday The form is still there—the institu- have served always remain a priority— raised the overarching question of our tions continue to function—but they good for veterans, good for the econ- generation: Will the American Con- no longer serve their principle role to omy, and good for America. stitution stand? protect the rule of law and the liberty f All the laws passed under that Con- of the people. stitution have elaborate enforcement Here in this Capitol, we are sur- CONGRATULATING SERGEANT mechanisms backed by armed force, rounded by the symbols of the Roman MANELLA FOR WINNING ARMY’S but the Constitution itself has no such Republic. They should be a warning to BEST WARRIOR COMPETITION enforcement mechanism. It was de- us. The Roman Senate continued to The SPEAKER pro tempore. The signed to be internally self-enforcing, exist 400 years after the fall of the Re- Chair recognizes the gentleman from with the powers of government clearly public, but its nature and purpose had California (Mr. SWALWELL) for 5 min- divided among three separate and equal become empty. utes. branches of government. Chairman GOODLATTE quoted Gibbon Mr. SWALWELL of California. Mr. But this self-enforcement mechanism yesterday, who observed that ‘‘the Speaker, today I rise to recognize Ser- can only work when the powers are principles of a free Constitution are ir- geant First Class Jason Manella, who evenly divided, when those who exer- revocably lost when the legislative recently won the Non-Commissioned cise those powers are devoted to the power is dominated by the executive.’’ Officer of the Year Award last week Constitution, and when the American That is precisely what is happening. during the Army’s best warrior com- people insist on it. That is the great The institutions of our American Re- petition. Jason is from my district in question for our generation and for public continue to operate, but the Fremont, California, and recently which we are deeply answerable. Are structures within it are rapidly degrad- moved within my district to Hayward, we allowing the Constitution to dis- ing. In this condition, our Constitution California. integrate before our eyes? is becoming like a rotting porch: we The Army’s best warrior competition The Constitution makes very clear can still discern its form and purpose, is a 3-day event that tests the soldier’s that only Congress may make laws and but the structure that gave it strength physical and mental toughness. Ser- that the principal responsibility of the and support is hollowing out through geant Manella is the first ever reservist executive is to take care that the laws years of abuse and neglect until one to win this prestigious Army-wide be faithfully executed. Yet the execu- day it will simply collapse. title. tive branch has increasingly asserted The Judiciary Committee hearing Sergeant Manella is a member of the sweeping powers to unilaterally nullify yesterday was the first step by Con- Reserve’s 445th Civil Affairs Battalion laws that it dislikes, to pick and gress to assess the harm already done based in Mountain View. While serving choose who must obey the law and who and to begin reversing that damage be- in Afghanistan in 2012, Sergeant need not, and even to impose entirely fore it is too late. But I must warn that

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00008 Fmt 0636 Sfmt 0634 E:\CR\FM\K04DE7.010 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE December 4, 2013 CONGRESSIONAL RECORD — HOUSE H7457 in its current divided condition Con- I pledge allegiance to the Flag of the ence $336 billion in lost growth over the gress cannot do so alone. Ultimately, it United States of America, and to the Repub- next 5 years due to inadequate infra- will require the active assistance of the lic for which it stands, one nation under God, structure. rightful owners of the Constitution, indivisible, with liberty and justice for all. I urge my colleagues to understand the American people. f that a robust infrastructure invest- How ironic it would be if the liberties ANNOUNCEMENT BY THE SPEAKER ment not only creates jobs but pro- of this Nation, heroically defended by motes pro-business policies that sus- the sacrifices of nine generations of The SPEAKER. The Chair will enter- tain and produce economic growth. tain up to 15 requests for 1-minute Americans on far-off battlefields, f might someday be carelessly thrown speeches on each side of the aisle. WHEN WILL THE DEMOCRATS away here at home. f START LISTENING TO THE Let that not be said of our genera- MARY COTHRAN: AN ADVOCATE AMERICAN PEOPLE tion. Let it be said instead that just when our Constitution seemed most in (Mr. WILSON of South Carolina (Mr. BOEHNER asked and was given peril, this generation rose up, insisted asked and was given permission to ad- permission to address the House for 1 on absolute fidelity to the Constitution dress the House for 1 minute and to re- minute.) by those it elected, and then went on vise and extend his remarks.) Mr. BOEHNER. Mr. Speaker, the to revive, restore, and preserve that Mr. WILSON of South Carolina. Mr. American people work hard, and they Constitution for the many generations Speaker, the President has broken have got a right to expect their elected of Americans who followed. multiple promises to the American Representatives to do the same. House people. Constituents living in South Republicans are listening. To date, the f Carolina’s Second Congressional Dis- House has passed nearly 150 bills this RECESS trict have lost their coverage and ac- Congress that the United States Senate The SPEAKER pro tempore. Pursu- cess to doctors because of the Presi- has failed to act on. Many of them ant to clause 12(a) of rule I, the Chair dent’s health care takeover, which de- would help our economy and boost job declares the House in recess until noon stroys jobs. And now citizens are see- creation. today. ing massive premium increases. Nearly 150 bills passed by this House Accordingly (at 11 o’clock and 8 min- James from Lexington says: have yet to be acted on by the Senate. utes a.m.), the House stood in recess. My son got a letter from his employer in- These bills would do things like in- forming him that his health insurance would crease the supply of American energy f increase $179 per month, 52 percent more and build the Keystone pipeline, roll than he is presently paying. He is a plumber b 1200 back red tape and unnecessary regula- and his wife works as a home health aide. tions, provide for flexibility to working AFTER RECESS Now their dream of home ownership is high- families, reform and improve job train- ly unlikely. The recess having expired, the House ing programs, protect Americans from Mary Cothran of Williston was tire- was called to order by the Speaker at cyberattacks, help schools to recruit less promoting limited government and noon. and keep the best teachers, delay the advocating alternatives to ObamaCare. individual mandate and allow the f Congress should work together to re- American people to keep the health PRAYER place it with reforms such as those in- care plans that they would like, or to troduced by Congressman Dr. TOM The Chaplain, the Reverend Patrick scrap the health care law that is PRICE which have been ignored by the wreaking havoc on our economy. Every J. Conroy, offered the following prayer: media, which is failing to fulfill its Eternal God, we give You thanks for single one of these bills has been First Amendment opportunities. blocked by Washington Democrats. The giving us another day. In conclusion, God bless our troops, Once again we come to You to ask Senate and the President continue to and we will never forget September the stand in the way of the people’s prior- wisdom, patience, peace, and under- 11th in the global war on terrorism. standing for the Members of this peo- ities. ple’s House. f Now we are trying to come to an agreement on the budget and on the Give them the generosity of heart WE NEED A PRO-BUSINESS POLICY and the courage of true leadership to farm bill, amongst other issues that (Mr. HIGGINS asked and was given are in conference. Chairman RYAN and work toward a common solution to the permission to address the House for 1 many issues facing our Nation. Chairman LUCAS have made serious minute.) good faith efforts to Senate Democrats. As true statesmen and -women, may Mr. HIGGINS. Mr. Speaker, last they find the fortitude to make judg- When will they learn to say ‘‘yes’’ to month the President and CEO of FedEx common ground? When will they start ments to benefit all Americans in their Freight spoke at a conference for the time of need. listening to the American people? National Industrial Transportation f May all that is done this day be for League. He warned that our Nation’s Your greater honor and glory. roads, highways, and bridges weren’t 250TH ANNIVERSARY OF THE Amen. equipped to handle current or future TOURO SYNAGOGUE f needs. (Mr. CICILLINE asked and was given The American Society of Civil Engi- THE JOURNAL permission to address the House for 1 neers reports that there are 69,000 minute.) The SPEAKER. The Chair has exam- structurally deficient bridges in this Mr. CICILLINE. Mr. Speaker, I rise ined the Journal of the last day’s pro- country—meaning that every second of today to recognize the 250th anniver- ceedings and announces to the House every day, seven cars are driving over a sary of the Touro Synagogue in New- his approval thereof. bridge that is structurally deficient— port, Rhode Island, the oldest syna- Pursuant to clause 1, rule I, the Jour- and that $3.6 trillion will be needed by gogue in America. Dedicated in 1763, nal stands approved. 2020 to address our aging infrastruc- the Touro Synagogue has been a monu- f ture. Despite this, the most recent ment to the history of religious toler- transportation bill passed by Congress ance in Rhode Island and the legacy of PLEDGE OF ALLEGIANCE spends a pathetically weak $52 billion a religious freedom in America. The SPEAKER. Will the gentle- year on infrastructure. Before construction even began, the woman from Kansas (Ms. JENKINS) Companies like FedEx understand design of the building was conceived as come forward and lead the House in the the long-term benefits of efficient a balance between European architec- Pledge of Allegiance. transportation of people and goods. ture and traditional Jewish worship. Ms. JENKINS led the Pledge of Alle- The United States Chamber of Com- This synagogue became a symbol of the giance as follows: merce estimates that we will experi- freedom to worship in peace widely

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00009 Fmt 0636 Sfmt 0634 E:\CR\FM\K04DE7.012 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE H7458 CONGRESSIONAL RECORD — HOUSE December 4, 2013 promoted across our new Nation in the acies of our past. In the past few years, erans, serving them across our great 17th century and championed by Roger many States have introduced legisla- State of North Carolina. Williams. tion that would restrict access to a The influential book of which he was In 1790, in a letter reassuring the voting booth. These discriminatory ac- coauthor, ‘‘The Rational Clinical members of the Hebrew congregation of tions prove that the protections in the Exam,’’ is a comprehensive guide for their right to the free exercise of reli- Voting Rights Act are still necessities patient exams and has become a power- gion, George Washington famously de- in our world today. ful reference tool for those in the field clared the values of our Nation at its So this week, as we remember the of medicine. start, pledging that the United States struggles and sacrifices made to ensure Dr. Simel’s enduring commitment to would give ‘‘to bigotry no sanction, to basic rights for all Americans, I urge his family, his students, his patients, persecution no assistance.’’ my colleagues to continue fighting to and to our veterans make him an ex- This weekend, it was my honor to at- ensure that no American is denied emplary citizen. His passion for medi- tend the rededication of the Touro their right to vote. cine and improving the health of others Synagogue, which remains a testament f will continue to benefit our veterans to the enduring freedoms of our Nation and North Carolinians for years to SAGE GROUSE and the tradition of religious freedom come. that began in my home State and that (Mr. TIPTON asked and was given Indeed, we should honor those who is now deeply embedded in the Amer- permission to address the House for 1 serve our veterans and set an example, ican experience. minute and to revise and extend his re- like Dr. Simel has done. And we also f marks.) honor him for his intelligence, compas- Mr. TIPTON. Mr. Speaker, the pro- sion, and selfless dedication. We pray IRAN posed Endangered Species Act for the that he and his family will receive (Ms. JENKINS asked and was given Gunnison Sage-Grouse and the Greater God’s richest blessings, and we are permission to address the House for 1 Sage-Grouse will impact millions of thankful for role models like Dr. minute and to revise and extend her re- acres in Colorado and hinder existing Simel, who serves those who served our marks.) conservation efforts. It will put private country. Ms. JENKINS. Mr. Speaker, on No- lands off-limits to most use and devel- f vember 20, during critical negotiations opment, including agricultural produc- in Geneva about Tehran’s nuclear pro- tion, without providing any compensa- FARMINGTON: MINNESOTA’S FIRST gram, Iran’s supreme leader tweeted tion. It will kill jobs, devastate com- YELLOW RIBBON CITY this disturbing statement: ‘‘Israel is munities, and disrupt effective species (Mr. KLINE asked and was given per- the sinister, unclean rabid dog of the preservation efforts currently under mission to address the House for 1 region.’’ That same day, he added, The way. It won’t, however, more effec- minute and to revise and extend his re- United States and Israel are a ‘‘threat tively preserve the grass. marks.) to the world’’ and ‘‘enemies’’ that In my district, plans at the local Mr. KLINE. Mr. Speaker, I rise today ‘‘should be resisted.’’ level are under way to effectively pre- to recognize Farmington’s commit- This is the Iranian regime we are serve the species. Because they take ment to our veterans and the commu- dealing with. They have ignored diplo- into account the unique geography and nity’s 5-year anniversary of being matic efforts for years, and they can- environment of the region, these ef- named Minnesota’s first Yellow Ribbon not be trusted. An interim deal might forts are seeing success. City. seem like good news, but it does not Interior Department bureaucrats When I first championed legislation make our Nation or our allies in the have yet to provide measurable species to make the Minnesota National Middle East safer, especially when Iran preservation goals so that State and Guard’s invaluable Yellow Ribbon re- claims the agreement is a victory over local officials can meet them. Local integration program available nation- the great aggressor—the West. conservation efforts are all too often wide, one of the pillars of this initia- This rhetoric leaves me skeptical disrupted by Federal attempts to im- tive was to increase awareness among that any progress has been made, and I plement blanket plans. One-size-fits-all communities and local organizations to encourage our leaders and inter- plans create endless litigation that ties improve relationships between vet- national partners to take the necessary up resources that could be used for erans and their communities. measures to halt Iran’s nuclear pro- preservation. Mr. Speaker, the people of Farm- gram, not only for our own security, If the true goal is species preserva- ington understand the important role a but that of our allies and democracies tion, then I hope Secretary Jewell will community plays in the successful re- around the world. come to Colorado and see firsthand the integration of our troops returning f effective work being done to preserve home. Farmington built a model Yel- the sage grouse and provide measurable low Ribbon organization centered EQUALITY FOR ALL AMERICANS species preservation laws. around relationships with neighbors, (Ms. KELLY of Illinois asked and was f veterans organizations, and local, given permission to address the House State, and Federal leaders. Farmington for 1 minute.) A TRIBUTE TO DAVID LEE SIMEL, rallied around the needs of area vet- Ms. KELLY of Illinois. Mr. Speaker, I M.D. erans and their families by hosting rise today to recognize a historic week. (Mr. MCINTYRE asked and was given monthly dinners for veterans and holi- On Sunday, we celebrated Rosa Parks permission to address the House for 1 day cookie walks. You can’t beat that. Day; Thursday, we observed the start minute and to revise and extend his re- As their Yellow Ribbon organization of the Montgomery bus boycott; and marks.) grew and their efforts expanded, they Friday, we commemorate the 148th an- Mr. MCINTYRE. Mr. Speaker, I rise recognized success and shared those niversary of the Thirteenth Amend- today to pay tribute to a truly out- best practices with other inspired com- ment, which ended slavery. standing doctor, loving father, and ex- munities, leaving their Yellow Ribbon As we reflect on these historic ceptional North Carolinian, Dr. David fingerprint across the great State of events, we see how far our Nation has Lee Simel of Durham. Minnesota. come in advancing equality for all Dr. Simel was raised in Greensboro Mr. Speaker, I rise today not simply Americans. However, recent actions before attending the University of to recognize Farmington on this 5-year like the Supreme Court’s decision to North Carolina at Chapel Hill. After anniversary, but to thank the entire gut the Voting Rights Act remind us graduation, he completed medical community for being a Yellow Ribbon that we have much more work ahead. school and an internal medicine resi- trailblazer and for demonstrating their Although I dream of a day that the dency at Duke University. He is now a continued commitment to our service- Voting Rights Act is unnecessary, the professor of medicine and vice chair for members, veterans, and their families. truth is that voter discrimination and veterans affairs at Duke. And he has As the Farmington Yellow Ribbon hon- suppression live on today as ugly leg- dedicated himself wholly to our vet- ors our sons and daughters in uniform,

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00010 Fmt 0636 Sfmt 0634 E:\CR\FM\K04DE7.016 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE December 4, 2013 CONGRESSIONAL RECORD — HOUSE H7459 I would like to honor them. And I sa- tion system, our criminal code, and his DENNIS DENBO AND OBAMACARE lute the entire community of Farm- signature health care law. (Mr. TAKANO asked and was given ington, Minnesota, for helping with Mr. Speaker, neither this President, permission to address the House for 1 that noble cause. nor any President, should grant them- minute and to revise and extend his re- f selves extra-constitutional authority marks.) to change laws they don’t like. If the Mr. TAKANO. Mr. Speaker, I rise HEALTH CARE AND COMPREHEN- President himself does not follow the SIVE IMMIGRATION REFORM today to speak about the benefits of law, it sets a dangerous example. ObamaCare. (Ms. JACKSON LEE asked and was f Dennis Denbo, a 63-year-old con- given permission to address the House stituent of mine, spoke to our local for 1 minute.) SNAP: CHILDREN newspaper, the Press-Enterprise, to Ms. JACKSON LEE. Mr. Speaker, (Mrs. DAVIS of California asked and share his story. during this holiday season, it appears was given permission to address the Mr. Denbo, who was laid off recently that all our fellow Americans are hear- House for 1 minute.) from his computer sales job, went to ing is a sense of pessimism; but I rise Mrs. DAVIS of California. Mr. Speak- the Covered California Web site and to talk about the optimism of this Na- er, this holiday season, my constitu- found that he and his wife Jean will tion and the great strides that we have ents have inspired me by writing in save $300 a month on a plan comparable made, particularly as it relates to our about the importance of food aid and to what they have now. seniors. the SNAP program. A few weeks ago, Mr. Denbo wrote to The Affordable Care Act has taken All of us here in Congress have the my office to tell me personally about the brunt of everybody’s criticism. My luxury of knowing that we can provide his experience and how deeply he be- friends on the other side of the aisle our families with healthy food; but lieves in America’s ability to achieve are singing a broken record, not a there are so many people in our coun- great things. Christmas carol. try that will go this holiday without In his letter he said: It is important to note that seniors such a blessing, and, sadly, most of We are Americans. We can solve whatever have benefited. The Affordable Care those in dire need are children. In fact, issues or tactical challenges that come up in Act recognizes the financial burdens 70 percent of all households that de- the implementation of a nationwide health that seniors face. No group has been pend on SNAP are families with chil- care solution. We can make it efficient, cost- hit harder by soaring health care costs. dren. effective, accessible, and a valuable service for all Americans. But now, under the Affordable Care In my district, a 16-year-old girl Act, seniors can have preventative care named Maya was hospitalized last year I couldn’t agree more, Mr. Denbo. services without any copay, coinsur- for issues related to malnutrition. She The benefits of ObamaCare are real. ance, or deductible. had struggled in school and showed This body should be concerned with Services like wellness visits, choles- signs of depression. Maya’s hospitaliza- finding ways to improve access to af- terol testing, and others, sing a good tion triggered her father to apply for fordable health care instead of delay- song, yet we sing a negative song to SNAP benefits. Having a more reliable ing and defunding. those who are lining the streets for source of food gave Maya the energy to f comprehensive immigration reform. improve her grades and help her fam- ZEELAND WEST HIGH SCHOOL The families who have been fasting ily. She helped her family out by get- FOOTBALL DIVISION 3 STATE have been suffering. ting a part-time job. CHAMPIONS Let’s sing a good song for health care As we debate the farm bill, let’s re- (Mr. HUIZENGA of Michigan asked and do comprehensive immigration re- member that there are children like and was given permission to address form. Maya. Let’s work together to protect the House for 1 minute and to revise SNAP. f and extend his remarks.) b 1215 f Mr. HUIZENGA of Michigan. Mr. Speaker, I rise today to congratulate PRESIDENTIAL CONSTITUTIONAL HONORING JIMMIE JOHNSON Zeeland West High School’s football RESPONSIBILITY TO ENFORCE (Mr. PITTENGER asked and was team on winning the 2013 Division 3 LAWS given permission to address the House State championship on Saturday, No- (Mr. HOLDING asked and was given for 1 minute and to revise and extend vember 30, at Ford Field in Detroit. permission to address the House for 1 his remarks.) The Zeeland Dux rushed for over 440 minute and to revise and extend his re- Mr. PITTENGER. Mr. Speaker, I rise yards during the game, resulting in a marks.) today to honor my fastest constituent, 34–27 win over DeWitt. Their 13–1 Mr. HOLDING. Mr. Speaker, when Jimmie Johnson, who recently won his record this season is a testament to the the President picks and chooses which sixth NASCAR Sprint Cup champion- players’ dedication, hard work, and laws to enforce, it undermines the ship. self-sacrifice. In fact, the program foundations of our democracy. In a remarkable display of teamwork, itself has become an example of hard Yesterday, in the House Judiciary consistency, and a burning desire to al- work and leadership. This is the Dux’s Committee, we held a hearing to exam- ways improve, Jimmie Johnson won six third State title since the program’s ine the President’s constitutional re- NASCAR championships in the last 8 inception only 9 years ago. sponsibility to ‘‘faithfully execute’’ the years. Mr. Speaker, I would be remiss if I law. Our Founding Fathers formed the More importantly, Jimmie is a cham- didn’t also congratulate Dux Head structure of our government specifi- pion off the track. Since 2006, the Coach John Shillito and his coaching cally so that none of the three Jimmie Johnson Foundation has con- staff for a job well done with his play- branches could become too powerful. If tributed more than $5 million to char- ers, as he leads them not only on the we ignore our system of checks and ity, with a special focus on improving field, but off the field. balances, our government will become K–12 education in North Carolina, Again, congratulations to the Dux on unstable and chaotic. Oklahoma, and California. In Char- their big win last Saturday. Mr. Speaker, unfortunately, this lotte, Jimmie is a supporter of Project f President and his administration have LIFT, a private-public partnership abused their executive power. Presi- working to improve the graduation AFFORDABLE CARE ACT dent Obama continues to violate his rate in some of Charlotte’s toughest (Ms. ROYBAL-ALLARD asked and constitutional duty to enforce the laws neighborhoods. was given permission to address the and instead chooses when, where, and Thank you, Jimmie, for using your House for 1 minute and to revise and which laws to enforce. He has enforced on-track success to make a lasting im- extend her remarks.) laws and policies based on preferences, pact on the lives of thousands of chil- Ms. ROYBAL-ALLARD. Mr. Speaker, like making changes to our immigra- dren. I rise to highlight the positive impact

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00011 Fmt 0636 Sfmt 0634 E:\CR\FM\K04DE7.017 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE H7460 CONGRESSIONAL RECORD — HOUSE December 4, 2013 the Affordable Care Act is having in Web site healthcare.gov appear to be Ms. WASSERMAN SCHULTZ. Mr. my home State of California. largely behind us, it is important that Speaker, I rise to highlight how the Af- A woman by the name of Melanie we cut through the partisan noise and fordable Care Act is already helping wrote the following letter to the L.A. look at some facts. thousands of breast cancer survivors Times: One fact is that in 2 days—Sunday and those with preexisting conditions. My daughter and I have been without and Monday alone—almost 30,000 In late 2007, I heard those terrible health care for 3 years following my loss of Americans have gone to healthcare.gov words, ‘‘You have breast cancer.’’ I un- employer-provided insurance. In that period, to sign up for health insurance. Many derwent seven surgeries, but in some I have paid handsomely for those times when of these families are families with pre- ways, I was one of the fortunate ones my mother-ministrations were not sufficient existing conditions that would have no because I had health insurance cov- and I had to seek the care of a very expen- way to get health insurance other than erage. sive doctor. I’ve been waiting eagerly for healthcare.gov and the ACA. I have spoken to women who have ObamaCare for the two of us since the law In my own State of Connecticut, with foregone mammograms and even can- was enacted in 2010. Did I run into problems when I first tried less than 1 percent of the American cer treatments because the cost was to sign up in California? I did. population, 22,000 families have signed simply too great to bear. Now, the Af- Did I persevere? I did. up for health insurance. fordable Care Act emphasizes preven- Did I finally get through? I did. Mr. Speaker, from the President tion by making it possible for Ameri- In January, I’ll be able to take care of a down, we were concerned by people los- cans to get screenings, like mammo- condition I’ve ignored for the last 2 years, ing their health care plans in the rath- grams, without a copay. and my college-age daughter will be covered er small individual market. But it is It also finally ends the egregious as well. Although the subsidy certainly important for the American people to practice of denying coverage to pa- helps, I will be paying something for cov- understand that when they hear the tients with preexisting conditions, like erage we haven’t had for years. To those who cry foul, I say ‘‘score.’’ word ‘‘repeal,’’ they need to understand my south Florida constituent Carolyn that repeal means that the tens of Newman, a survivor who will save Mr. Speaker, I couldn’t have said it thousands, the hundreds of thousands, $7,000 a year with an affordable plan, better. The reality is that because of the millions of Americans who will get thanks to the Affordable Care Act. She ObamaCare, millions of vulnerable insurance because of the ACA will lose can save even more by shopping on the Americans now ‘‘score.’’ it. exchange. f Millions of Americans will lose their With the Affordable Care Act making IN MEMORY OF DR. PERRY new-found insurance if this word ‘‘re- it possible for more women to access INHOFE peal’’ ever becomes law. That is not preventive services and not be denied right; and on that, I think we should coverage, we can work to eradicate (Mr. BRIDENSTINE asked and was agree. breast cancer once and for all. given permission to address the House for 1 minute.) f f Mr. BRIDENSTINE. Mr. Speaker, CONGRATULATING CORPORAL b 1230 last week, we celebrated Thanksgiving. MATTHEW HAMPTON AFFORDABLE CARE ACT We gathered with family and friends to (Mr. DESJARLAIS asked and was thank God for his provision, his good- (Mr. PERLMUTTER asked and was given permission to address the House given permission to address the House ness, and his mercy. for 1 minute and to revise and extend But for some families, this Thanks- for 1 minute.) his remarks.) Mr. PERLMUTTER. Mr. Speaker, giving was bittersweet. Such was the Mr. DESJARLAIS. Mr. Speaker, it is today, I rise to tell the story of the case for Senator JIM INHOFE’s family. with great pride that I rise today to Montez Family, who live in my con- They lost their son, Perry, in a tragic honor Corporal Matthew Hampton, an gressional district in Colorado. aviation accident on November 10. outstanding citizen of our community They live in Arvada, Colorado, and Dr. Perry Inhofe was a highly skilled and a true American patriot. because of the Affordable Care Act, surgeon associated with Central States In recognition of his service to this they will now be able to afford health Orthopedics in Tulsa. David Long, Cen- country, Matthew was recently award- insurance. This is a success story of tral States’ CEO, said: ed the 28th Palmer Veterans Apprecia- the Affordable Care Act and of its im- Dr. Inhofe was known as a very caring and tion Award. proving access to quality, affordable compassionate physician. He was the kind of Following his graduation from health care. doctor who made you feel you had his full at- Grundy County High School, Matthew Both Joaquin and Rosalee Montez are tention and that your health was the most volunteered for the United States Ma- important thing to him. employed, but neither of their employ- rine Corps and was deployed to Iraq, ers provides coverage to their employ- Continuing an Inhofe family tradi- where he served as a Huey and Cobra ees. They have a daughter in college, a tion, Perry loved flying with his chil- helicopter crew chief and gunner. 13-year-old son, and a 4-year-old daugh- dren and teaching them about flying. Corporal Hampton’s exemplary serv- ter. With rates ranging from $450 to From what I understand, he was a good ice as a ‘‘devil dog’’ is reflected in the $600 per month, purchasing private in- pilot. numerous commendations and military surance was too expensive for the Dr. Inhofe is survived by his wife, decorations he received, including the Montez Family, especially with three Nancy, and two sons, Glade and Cole. Naval Achievement Medal, Combat Ac- kids, a house payment, and a car pay- I wish to express condolences to the tion Ribbon, Presidential Unit Cita- ment. Due to a constrained budget, the whole Inhofe family. I pray they will be tion, and National Defense Medal. only time the kids were receiving comforted and strengthened by the fact Mr. Speaker, this recognition is a health care was when they were ‘‘real- that Perry was a believer in the living testament to the heroism and dedica- ly, really, really sick,’’ and always at Christ, who said: tion to duty that marked Corporal an urgent care center. One time after I am the resurrection and the life. Whoever Hampton’s exemplary service in the their daughter got E. coli, the Montez believes in me, though he die, yet shall he United States Marine Corps. I, along Family was stuck with a $17,000 hos- live. with a grateful Nation, congratulate pital bill. Amen. him on receiving the Palmer Veterans Thanks to the help of a navigator, f Appreciation Award and thank him for they were able to get insurance his outstanding service to our Nation. through the Affordable Care Act, which DO NOT REPEAL OBAMACARE f is a success for this Nation. (Mr. HIMES asked and was given per- f mission to address the House for 1 ACA AND BREAST CANCER minute and to revise and extend his re- (Ms. WASSERMAN SCHULTZ asked BUDGET marks.) and was given permission to address (Ms. HANABUSA asked and was Mr. HIMES. Mr. Speaker, now that the House for 1 minute and to revise given permission to address the House the notorious problems with the ACA and extend her remarks.) for 1 minute.)

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00012 Fmt 0636 Sfmt 0634 E:\CR\FM\K04DE7.018 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE December 4, 2013 CONGRESSIONAL RECORD — HOUSE H7461 Ms. HANABUSA. Mr. Speaker, De- about the Affordable Care Act that fo- PROVIDING FOR CONSIDERATION cember 13 is 9 days away. This is part cuses especially on women’s health. I OF H.R. 3309, INNOVATION ACT; of that side agreement when the CR am absolutely delighted to come to the AND PROVIDING FOR CONSIDER- was agreed to and when the debt ceil- floor to address that issue in that—and ATION OF H.R. 1105, SMALL BUSI- ing was suspended. The budget is a I hope every woman in America under- NESS CAPITAL ACCESS AND JOB statement of the House’s and Senate’s stands this—because of the Affordable PRESERVATION ACT values and priorities, and that is what Care Act, being a woman is no longer a Mr. NUGENT. Mr. Speaker, by direc- is to be agreed to by December 13. preexisting medical condition. As the tion of the Committee on Rules, I call One of the things we must say, Mr. mother of five children—four daughters up House Resolution 429 and ask for its Speaker, at the very minimum, is that and one son—I am very excited about immediate consideration. sequestration has to go. The CBO says this. The Clerk read the resolution, as fol- it will cost up to 1.6 million jobs if it is Over the break, I had the privilege of lows: allowed to stand. Conversely, it will being at a meeting with some research- H. RES. 429 add 900,000 new jobs if it is gotten rid ers on the subject of breast cancer in Resolved, That at any time after adoption of. particular, and they spent a good deal of this resolution the Speaker may, pursuant Sequestration has affected programs of the time telling us what the possi- to clause 2(b) of rule XVIII, declare the like Head Start, SNAP, programs of bilities were with research that should House resolved into the Committee of the the National Institutes of Health, men- be funded—that is a budget issue, an- Whole House on the state of the Union for tal health issues—just to name a few— consideration of the bill (H.R. 3309) to amend other subject, but one that is related title 35, United States Code, and the Leahy- as well as our defense industry. There here—and that we could remove this Smith America Invents Act to make im- is no longer any room in these budgets threat to women’s health with proper provements and technical corrections, and to accommodate all of these expenses research. for other purposes. The first reading of the just to pay what we need to pay to They took time to say that one thing bill shall be dispensed with. All points of keep these programs going. that was helping women with breast order against consideration of the bill are waived. General debate shall be confined to That is why we have to say that se- cancer more than anything was the Af- questration has got to go. That is why, the bill and shall not exceed one hour equal- fordable Care Act—that they would ly divided and controlled by the chair and in the next 9 days, you will hear more have access to care without being dis- ranking minority member of the Committee and more speak about sequestration criminated against because of a pre- on the Judiciary. After general debate the and the fact that we must act on it. existing medical condition, that no bill shall be considered for amendment under f longer would they have annual or life- the five-minute rule. In lieu of the amend- time limits on the health insurance ment in the nature of a substitute rec- CLIMATE CHANGE ommended by the Committee on the Judici- that they would receive. The relief of (Mr. MORAN asked and was given ary now printed in the bill, it shall be in the stress from all of that is a very order to consider as an original bill for the permission to address the House for 1 healthy thing for people who have a di- minute and to revise and extend his re- purpose of amendment under the five-minute agnosis. rule an amendment in the nature of a sub- marks.) So whatever it is—whether it is stitute consisting of the text of Rules Com- Mr. MORAN. Mr. Speaker, for 100 mammograms as my colleague Con- mittee Print 113-28. That amendment in the consecutive days, the Safe Climate nature of a substitute shall be considered as gresswoman DEBBIE WASSERMAN Caucus has brought to the House floor read. All points of order against that amend- SCHULTZ so generously shared her story the reality and the ramifications of cli- ment in the nature of a substitute are with us about her experience or, ear- mate change. waived. No amendment to that amendment lier, as Congresswoman DELAURO There was a recent report from three in the nature of a substitute shall be in order shared hers and as other Members except those printed in part A of the report very reputable think tanks, entitled, shared the stories of their constitu- of the Committee on Rules accompanying ‘‘The Arab Spring and Climate ents—this is really very important. this resolution. Each such amendment may Change.’’ Let me just quote from a cou- Moms are the hubs of families. Many of be offered only in the order printed in the re- ple of the troubling but illuminating port, may be offered only by a Member des- them fear this diagnosis. Many fami- conclusions that it comes to. ignated in the report, shall be considered as lies in America have been affected by read, shall be debatable for the time speci- A prolonged and severe drought during the it. winter of 2010 in China ‘‘contributed to glob- fied in the report equally divided and con- al wheat shortages and skyrocketing bread With our investments in research and trolled by the proponent and an opponent, prices in Egypt, the world’s largest wheat with the Affordable Care Act, women shall not be subject to amendment, and shall importer,’’ accelerating political instability have reason to be very, very hopeful not be subject to a demand for division of the question in the House or in the Committee of ... that this can be prevented with early the Whole. All points of order against such And in another part of the report, in detection—and not only with early de- amendments are waived. At the conclusion quotes, ‘‘social, economic, environmental, tection but with regular detection. of consideration of the bill for amendment and climate changes in Syria . . . eroded the Then, on top of that, if they have that the Committee shall rise and report the bill social contract between citizen and govern- to the House with such amendments as may ment . . . strengthening the case for the op- feared diagnosis, they will receive the have been adopted. Any Member may de- position movement and irreparably dam- care that they deserve. mand a separate vote in the House on any aging the legitimacy of the Assad regime.’’ There is one other point I want to amendment adopted in the Committee of the The authors conclude that global make about it because we all worship Whole to the bill or to the amendment in the warming may not have caused the Arab at the altar of biomedical research and nature of a substitute made in order as origi- Spring but that it clearly made it come what it means for our country and the nal text. The previous question shall be con- earlier. thought that we could be rid of breast sidered as ordered on the bill and amend- The stresses climate change is impos- cancer in a handful of years: we want ments thereto to final passage without inter- ing today on nations across the globe to make sure every woman in America vening motion except one motion to recom- mit with or without instructions. are harbingers of more severe con- and every person in America benefits from that research. The vehicle for SEC. 2. Upon adoption of this resolution it sequences in the future. We have to ad- shall be in order to consider in the House the dress the reality and the ramifications that is the Affordable Care Act. It bill (H.R. 1105) to amend the Investment Ad- of climate change now. stands right there with Social Secu- visers Act of 1940 to provide a registration rity, with Medicare, with affordable— f exemption for private equity fund advisers, and that is the word, ‘‘affordable’’— and for other purposes. All points of order AFFORDABLE CARE ACT health care for all Americans as a pil- against consideration of the bill are waived. (Ms. PELOSI asked and was given lar of health and economic security for An amendment in the nature of a substitute permission to address the House for 1 the American people. consisting of the text of Rules Committee Print 113-29 shall be considered as adopted. minute and to revise and extend her re- Today, we focus on moms—we focus The bill, as amended, shall be considered as marks.) on women—and we say, Thank God. No read. All points of order against provisions Ms. PELOSI. Mr. Speaker, today, the longer will being a woman be a pre- in the bill, as amended, are waived. The pre- President put forth some conversation existing medical condition. vious question shall be considered as ordered

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00013 Fmt 0636 Sfmt 0634 E:\CR\FM\K04DE7.020 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE H7462 CONGRESSIONAL RECORD — HOUSE December 4, 2013 on the bill, as amended, and on any further monetary consequences for them—none In fact, in 2012, Florida ranked fifth amendment thereto, to final passage without at all. They aren’t on the hook for in the Nation in attracting private eq- intervening motion except: (1) one hour of legal fees like their counterparts are. uity investment. That investment is a debate equally divided and controlled by the As you can see, for small companies, vital tool for growing companies, and chair and ranking minority member of the Committee on Financial Services; (2) the fur- this system is inherently unfair. Our we are needlessly handcuffing their ther amendment printed in part B of the re- small businesses are our most impor- ability to do just that. port of the Committee on Rules accom- tant innovators in this country. They H.R. 1105 will help these smaller panying this resolution, if offered by Rep- are largely responsible for the new funds and increase the capital avail- resentative Carolyn Maloney of New York or products and services we, as con- able for real companies so their busi- her designee, which shall be in order without sumers, enjoy. They are also a critical nesses can thrive. Make no mistake, intervention of any point of order, shall be factor in growing our economy and cre- this is a jobs bill and it will help grow considered as read, shall be separately debat- ating jobs. We ought to provide fair- our economy. able for 10 minutes equally divided and con- I support this rule that will allow us trolled by the proponent and an opponent, ness to them by leveling the playing and shall not be subject to a demand for divi- field in the patent litigation process. to consider these bills, and I hope that sion of the question; and (3) one motion to We ought to ensure that our patent my colleagues on both sides of the aisle recommit with or without instructions. system isn’t stifling innovation but en- will do the same. The SPEAKER pro tempore (Mr. POE couraging it. Unfortunately, this just With that, I reserve the balance of of Texas). The gentleman from Florida isn’t the case right now. my time. is recognized for 1 hour. Patent trolling is a destructive prac- Mr. POLIS. Mr. Speaker, I yield my- Mr. NUGENT. Mr. Speaker, for the tice that saps resources from small self such time as I may consume. purpose of debate only, I yield the cus- businesses and increases costs for con- There are many things that my good tomary 30 minutes to the gentleman sumers. friend from Florida said that I agree with. I will be discussing some of the from Colorado (Mr. POLIS), pending b 1245 which I yield myself such time as I merits of these bills, but it is worth- may consume. During consideration of And its negative impact isn’t limited while to bring forward before dis- this resolution, all time yielded is for to just the tech sector either. Patent cussing what these bills are, what the purpose of debate only. trolling affects businesses and indus- these bills are not. tries of all types, including the health GENERAL LEAVE It has been 159 days and 14 hours industry and even grocers. It is abso- Mr. NUGENT. Mr. Speaker, I ask since the Senate passed a comprehen- lutely a drag on our economy. unanimous consent that all Members sive immigration reform bill. This An issue like this undoubtedly de- have 5 legislative days to revise and ex- body’s failure to act on immigration serves to be debated by the House. This tend their remarks. reform has already cost our economy The SPEAKER pro tempore. Is there rule will ensure that a deliberative nearly $6 billion. Each additional day, objection to the request of the gen- process takes place. The rule also al- each day that we delay action costs $37 tleman from Florida? lows for consideration of H.R. 1105, the million in revenue; hundreds of thou- There was no objection. Small Business Capital Access and Job sands of jobs lost; failure to secure the Mr. NUGENT. Mr. Speaker, I rise Preservation Act. border; failure to restore the rule of today in support of this rule, House This legislation would remove the re- law to our country; countless families Resolution 429. quirement that small private equity torn apart. House Resolution 429 provides a firms register with the Securities and While the Judiciary Committee has structured rule for both H.R. 3309, the Exchange Commission, the SEC. How- found the time to move asbestos bills Innovation Act, and H.R. 1105, the ever, it would retain the option of reg- and patent reform bills to the floor Small Business Capital Access and Job istering if they choose to. with ease, immigration reform remains Preservation Act. The rule gives the Under current law, small private eq- stagnant. The Judiciary Committee House the opportunity to debate a vari- uity firms are being grouped by behe- has reported out four immigration re- ety of important amendments offered moths despite the fact that they played form bills: the Legal Workforce Act, by Members on both sides of the aisle. no contributing role in the financial the Agricultural Guestworker Act, the The Innovation Act seeks to address crisis we just went through. Even the SAFE Act, and the SKILLS Visa Act. a growing problem of abusive patent chairman of the SEC in a letter to They reported these four bills out prior litigation, commonly known as ‘‘pat- Chairman HENSARLING admitted that to the asbestos bill which was rushed ent trolling.’’ Patent trolls are non- the private equity funds were not an immediately to the floor and prior to practicing entities. In other words, underlying cause of the recent finan- the patent bill which was rushed to the they don’t make or sell products, and cial crisis. floor after a hearing in the Rules Com- they don’t supply services. Instead, Furthermore, private equity does not mittee yesterday. they exist only to secure fees from pose a systemic risk to the economy. My question to the gentleman from businesses that use technologies cov- So why are we taking limited resources Florida—and I will be happy to yield ered by the patents they own. They do at the SEC away from their mission for a moment—is why we are giving this by acquiring weak patents and and shifting them to oversee firms that such treatment to asbestos and patent then filing numerous patent infringe- pose no systemic risk at all? Why are reform when immigration reform ment lawsuits or sending blanket de- we burdening these small companies would create so many more jobs and re- mand letters to a business. with SEC registration costs that, ac- duce our deficit by so much more? The victims of these frivolous law- cording to the Private Equity Growth I would like to know if the gen- suits are all too often small businesses Council, can exceed over $1 million per tleman from Florida has an answer to or start-ups that are ill-equipped to year? that question. protect themselves. They simply don’t More money in unnecessary compli- I yield to the gentleman from Flor- have the resources available to mount ance costs means less money to invest ida. an adequate defense. It is, by defini- in companies, particularly newer ones, Mr. NUGENT. I thank the gentleman tion, a lose-lose scenario for them. De- which allow them to grow and create from Colorado, but I will tell you this: fendants pay millions in damages if the jobs we desperately need. the House is moving through the Judi- they lose and millions in legal fees if In my own State of Florida, there are ciary Committee at a pace to make they win. More often, defendants are over 1,000 private equity-backed com- sure that we do this right in regards to forced to settle, despite the merits of a panies. Let me repeat that: there are immigration. case, in order to avoid expensive legal over 1,000 private equity-backed com- Where the Senate has rushed through costs. panies in Florida alone. There are over a bill that is so comprehensive and so Meanwhile, patent trolls are aided by 100 private equity firms within the large, it will be similar to ObamaCare law firms that operate on contingency State of Florida. These companies sup- before we actually—— fees. This means that, if nonpracticing port more than 800,000 workers Mr. POLIS. Reclaiming my time, 68 entities lose their cases, there are no throughout the country. Members of the Senate, including

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00014 Fmt 0636 Sfmt 0634 E:\CR\FM\A04DE7.002 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE December 4, 2013 CONGRESSIONAL RECORD — HOUSE H7463 many Republicans, including former their revenue from litigation and li- defendants don’t need to guess the na- Presidential Republican nominee JOHN censing, cost significant overhang to ture of the allegations against them. MCCAIN, supported the Senate immi- other businesses and to consumers for The underlying legislation further re- gration reform bill. whom many of these costs are passed quires patent-holders to disclose addi- I certainly understand the desire to along in the products or services that tional information to the PTO, the get it right, but bills don’t get right by we all enjoy. The majority of the tar- court, and the accused infringer, in- themselves. These are four bills that gets of patent trolls were start-ups— cluding the patent ownership, who have passed in the Judiciary Com- hospitals, restaurants, retailers, ho- owns the patent, and parties with fi- mittee. We in Rules like to make them tels, and other important job-creation nancial interest in the patent. These right by allowing good, thoughtful engines in our economy. provisions will help stop patent trolls amendments from colleagues on both The reforms made in the America In- who engage in illegitimate litigation sides of the aisle. I hope that next week vents Act, enacted 2 years ago, went a campaigns and extortion against start- or when we are back, we will be able to little ways in this regard, but did not ups and small businesses. move forward the immigration bills do much to halt or put a stop to or re- While I strongly support these patent with the same alacrity that we have duce patent troll litigation or improve reforms that are a modest step towards moved forward asbestos and patent re- the quality of patents. In the case of improving our patent system, the liti- form. software patents, growing patent back- gation reforms alone don’t have enough I hope the same thing happens that logs, lack of training and resources to benefit start-ups and small compa- as these bills move through Judiciary available to PTO examiners, and ambi- nies that are targeted by patent trolls that we do see them in the Rules Com- guity regarding patentability stand- who send pre-litigation demand letters. mittee and that they ultimately come ards have led to approval of low-qual- I am very appreciative of the chair- to this floor for debate. ity software patents that have not even man’s effort to allow, and the Rules Mr. Speaker, I do support the under- stood up when brought to litigation. Committee’s effort to allow, for the lying bills that are contained under Thankfully, the momentum is grow- discussion of my amendment, along this rule. I support H.R. 1105, the bipar- ing to address patent reform. I want to with Mr. CHAFFETZ, Mr. CONNOLLY, and tisan Small Business Capital Access be clear—and I discussed this with Mr. MARINO, who have been working in this regard to see stronger language on and Job Preservation Act. It exempts Chairman GOODLATTE in the Rules private equity funds which are very Committee yesterday—this bill is not the issue of pre-litigation demand let- lightly leveraged in helping to grow patent reform. I believe the gentleman, ters. And I am grateful that we have made in order an amendment to in- companies and jobs from costly and un- Mr. GOODLATTE, agrees this is not pat- crease accountability in the demand necessary SEC registration and report- ent reform. It may be a few steps in the letter process. ing requirements like venture capital right direction. It may be a good start. We will be discussing that amend- firms that are already exempted and It doesn’t fundamentally create an in- ment in a more thorough basis shortly; substantially have very similar busi- tellectual property protection system but, in brief, the problem is that before ness models to private equity firms. for the digital era in the 21st century. a patent troll even files a suit, it typi- These registration requirements are an It continues to put, constructively, cally sends a demand letter, or many impediment to business and an impedi- Band-Aids on a 1913 system, which I do demand letters, demanding some form ment to job growth and have nothing believe it is high time to rethink. I of payment. Under current law, the to do with creating systemic risk in look forward to an upcoming sympo- sender does not even have to disclose our economy. sium in my district at the University even the most basic information. As Importantly, this bill would only ex- of Colorado this Friday that we will be such, entities often hide behind numer- empt private equity firms with low having on sort of ‘‘blue sky’’ intellec- ous shell corporations or send vague or debt-to-equity ratios leveraged at a tual property protection mechanisms overbroad letters that don’t even iden- ratio of less than 2 to 1. Once you get for the 21st century in the digital econ- tify the owner of the patent or the to talking about much higher debt-to- omy to encourage growth and to pro- basis of their legal claim, essentially equity ratios, there is potentially sys- tect inventors. This bill does not do leading particularly small companies temic risk if you are talking about that. However, it is a step forward in to have to hire lawyers or attorneys at funds in the multi-billions of dollars many regards. great expense. When you have a com- that are highly leveraged. It is still While I strongly support many of pany that is a $300,000-a-year company, hard to see how that could happen. It these patent system improvements, it a $500,000-a-year company, and you re- had nothing to do with the financial won’t fix our patent system. Patent ceive one or more of these notices, you meltdown of ’08-’09. But in this case, we trolls have targeted every form of busi- can imagine how that takes away from are being extremely safe in saying if ness. It should come as no surprise that your growth, your margins, your abil- they are leveraged 2 to 1, they are no the Innovation Act enjoys support ity to hire more people, if you have to systemic risk to the economy. from Members from both sides of the retain professional counsel to even un- My State and my district know first- aisle, from companies, from academics. derstand what is being alleged that hand the benefits that private equity I submitted a letter from 67 professors your company did. provides to employees, to companies, at law universities who practice in IP Importantly, the underlying bill re- to investors, including pensions, and from a broad ideological perspective quires patent-holders seeking to bring our economy. There are nearly 500 pri- into the record in our Rules Committee willful infringement claims to provide vate equity-backed companies yesterday expressing their support for their targets with a minimum level of headquartered in Colorado, many more this bill. disclosure information. The amend- that operate with employees, more This bill maintains protections for ment enhances that and builds upon than 124,000 workers in Colorado facili- inventors’ rights to enforce their pat- the language and would mandate that ties. In 2012, there were 67 private eq- ent claims. Specifically, this bill allo- demand letters include information uity investments in Colorado totaling cates the burden of patent litigation identifying the parent entity of the over $26 billion that were brought to more fairly. It includes a provision claimant. This language will help en- our State because of this investment that restores financial accountability sure that patent trolls can no longer mechanism, placing Colorado third in to the patent system by making it hide under shell companies to conceal the States receiving the most private easier for courts to impose sanctions their true entity and their legitimacy equity investment. on anyone who brings a frivolous pat- from the demand letter recipient. The underlying rule also makes in ent suit. I look forward to discussing these order H.R. 3309, the Innovation Act, The bill also requires the disclosure bills further, and I reserve the balance which I also support. In 2011, ‘‘patent of critical details when a patent-holder of my time. assertion entities,’’ some of whom are files a suit, such as what patent and Mr. NUGENT. Mr. Speaker, first, I bad actors which are sometimes re- claims are being infringed, so the per- want to respond to my good friends ferred to as ‘‘patent trolls,’’ who often son or entity receiving the letter can from Colorado. I appreciate that he ap- produce little or nothing and derive know what is being discussed so that preciates the approach that this House

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00015 Fmt 0636 Sfmt 0634 E:\CR\FM\K04DE7.024 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE H7464 CONGRESSIONAL RECORD — HOUSE December 4, 2013 is taking, particularly as it relates to State of Georgia, I hear from hotels, stay away from litigation. That is real- both of the bills that are the under- retailers and start-ups alike on the ly the underlying purpose of the bill. lying aspect of this rule. It is about economically devastating impact that Now, what we have got to make sure moving in a deliberative manner to vague demand letters and the threat of of as Members of this House and as make sure that we get it right. I thank costly and frivolous litigation has on Members of the legislature is that we Mr. POLIS for pointing that out. their ability to do business. don’t advantage one party over an- I yield 3 minutes to the gentleman End-users are often attacked and other. And the gentleman from Cali- from Georgia (Mr. COLLINS). often threatened for infringement of an fornia (Mr. ROHRABACHER) made a good Mr. COLLINS of Georgia. Mr. Speak- unidentified patent they previously point, Mr. Speaker, last night at the er, I appreciate the gentleman for bought in a store. This is why the cus- Rules Committee that you don’t want yielding. tomer protections in section 5 of the to disadvantage small inventors who I rise in strong support of the rule bill are so important and should not be have come up with a good idea or a and the underlying legislation, particu- weakened or eliminated. As a strong great product, something very novel, larly H.R. 3309, the Innovation Act. conservative, I believe our government and some major corporation takes that As a member of the Judiciary Com- shouldn’t be in the business of picking idea or that product away and doesn’t mittee, I have seen firsthand the dili- winners and losers in the marketplace. pay for it. That is the purpose of pat- gent and deliberative effort put forth Innovation thrives when government ent litigation. by Chairman GOODLATTE and the rest takes a hands-off approach, but there At the same time, you don’t want to of the committee to bring forth to this are time when Congress must step in to have some small company that buys a body a pro-business, pro-growth, pro- ensure that our laws operate as they Wi-Fi service all of a sudden getting liberty bill to reform our patent laws. were intended. This is exactly why we sued by some company they never As my friend from Colorado stated, need H.R. 3309. heard of and they are saying wait a there is more that can be done, but this I urge my colleagues to support this minute, we are not a patent infringer. is a very positive step. I agree with rule and the underlying bills; and I also I say all of this because the purpose is him, and I appreciate that support. The ask that each Member carefully con- to have good litigation where there committee vote speaks for that as well sider any amendment that would weak- isn’t extortion and there isn’t theft as when it is 33–5 reported out of com- en or compromise the provisions of the result of some patent infringement. mittee on final passage. H.R. 3309, and particularly section 5. What is done in this bill, I think, In the time that I have been yielded, But I will say this before I leave be- though, is micromanagement of the I would like to also talk about a mis- cause I have come and spoken on many courtroom and its processes. Each of conception that some in the higher bills, and my dear friend from Colorado these cases stands and falls on it own education community seem to have continues to bring up immigration. I merits, and the courts are best about a fee-shifting provision in this just want to remind the Speaker that equipped to determine their own rules bill. there was a time a few years ago when and their own procedures as to how Despite the claims of some, the bill there was a golden era in which his these cases should move forward. language protects plaintiffs who bring party controlled the House, the Senate, I am generally going to support this. a reasonable and good faith case and and the Presidency. I offered an amendment which was not who do not engage in litigation mis- The SPEAKER pro tempore. The adopted by the Rules Committee last conduct. In fact, even if a plaintiff’s time of the gentleman has expired. night to delay until December of 2015 case is rejected by a court, the plaintiff Mr. NUGENT. I yield an additional 30 the effect of section 6 of the bill so that is still immune from a fee award if his seconds to the gentleman. the courts could create their own rules case ‘‘had a reasonable basis in both Mr. COLLINS of Georgia. I thank the and not have the legislature do it; 100 law and fact.’’ gentleman. years ago we passed the Rules Enabling I am a strong supporter of our uni- There were choices made, and there Act which allows the courts to set versities and the incredible research were plenty of choices you made, and their own procedure which is then they are doing. I believe our patent even one to this day that we are talk- overseen by the legislature. That is laws should protect them, just as they ing about, health care legislation. One sort of discarded in this bill, and we should protect the small businesses and of those choices, from your point of create some very specific rules, and I start-ups that rely on our world-class view, sadly, was not taken, and that think that is a mistake, and I think we patent system. The ability to enforce was immigration. Today we are dealing could have some real winners and los- one’s patent in court is essential to with bills that we both agree on, but ers. And I think the small guy, the preserving the value of the patent and let’s not forget the fact that when you small inventor, the small purchaser is the inherent right of the patent- had a chance, you didn’t do it. could be in trouble. So I would just holder. The SPEAKER pro tempore. Mem- suggest to the House and to the Rules Nothing in the Innovation Act bers are advised to direct their re- Committee that we do look at delaying changes this. Ensuring fair and equi- marks to the Chair and not to indi- so that the courts can offer their own table access to our courts isn’t done at vidual Members in the second person. procedure. the expense of universities, but at the Mr. POLIS. And I certainly wish that I do want to address two other benefit of all patent-holders. we had acted on immigration reform. things. It has been over 150 days since We did pass under Democratic control we started this legislature. We should 1300 b a DREAM Act, if the gentleman will be dealing with immigration reform. As we move forward to general de- recall, in the waning days of the 111th We are not doing that. And I want to bate and the consideration of amend- Congress, and did take at least one finish my story about the Montez fam- ments made in order by this rule, I constructive step with an immigration ily who are from Arvada, Colorado, urge my colleagues to be very cautious bill that we brought to the full floor of who could never get affordable insur- in supporting amendments that would this House and passed. ance and now are able to under the Af- gut or upset the careful balance I would like to yield 3 minutes to the fordable Care Act. achieved by this bill. gentleman from Colorado (Mr. PERL- The SPEAKER pro tempore. The Many of the sections in H.R. 3309 are MUTTER), a member of the Financial time of the gentleman has expired. intertwined, and the result is a pack- Services Committee and a former Mr. POLIS. I yield an additional 30 age of reforms that collectively will member of the Rules Committee. seconds to the gentleman. help American businesses and job cre- Mr. PERLMUTTER. Mr. Speaker, Mr. PERLMUTTER. They have three ators, both large and small, combat a first I want to address H.R. 3309, the In- children. They work two jobs. Neither business model designed solely to ben- novation Act, which is generally a good employer of the mom or dad provides efit from exploitation of our patent bill. It is trying to deal with issues of health insurance. Finally, after all system. nuisance litigation where somebody is these years, they have been able to get And make no mistake, this isn’t just sued and the costs of litigation are so health insurance at about $150 using a Silicon Valley problem. In my home extreme that they pay money just to the credits that are available under the

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00016 Fmt 0636 Sfmt 0634 E:\CR\FM\K04DE7.025 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE December 4, 2013 CONGRESSIONAL RECORD — HOUSE H7465 Affordable Care Act and the children’s The patent system is nothing short of vation Act. This bill will allow busi- health program that this Congress has a net for them to cast in hopes of ex- nesses of all sizes and in all industries passed. These people have health care torting settlement fees. Right now, to devote their time and resources to for the first time in their marriage, this scheme is costing our economy $29 job creation, research and develop- which is a couple of decades, and they billion every year. ment, and to continue to support the are very thankful. So this is a good While the bill is not perfect, the In- innovation that makes U.S. companies Thanksgiving season for the Montez novation Act is a promising first step so competitive in our global market. family of Arvada, Colorado. towards reining in these abusive tac- I have heard from businesses and as- Mr. NUGENT. Mr. Speaker, I yield 2 tics. I still have concerns with provi- sociations in a cross-section of indus- minutes to the distinguished gen- sions that address fee shifting and the tries asking for the passage of this bill tleman from Texas (Mr. SMITH). Federal judiciary, and we need to en- so they can more fully dedicate them- Mr. SMITH of Texas. Mr. Speaker, I sure that the Patent Office is fully selves to building their businesses and thank the gentleman from Florida for funded. But this conversation will con- the U.S. economy. I have heard for sup- yielding me this time. tinue beyond today’s vote, and my port for H.R. 3309 from the Motion Pic- Mr. Speaker, I support H.R. 3309, the hope is to see these concerns addressed ture Association of America and movie Innovation Act, and the rule we are de- for the American people. studios such as 20th Century Fox who bating now. This bipartisan legislation Mr. NUGENT. Mr. Speaker, I yield 1 are economic drivers in Los Angeles brings much-needed reforms to our pat- minute to the gentleman from Cali- and all across the country. There are ent litigation process, which continues fornia (Mr. ROHRABACHER). other widespread and bipartisan sup- to be plagued by patent trolls. Mr. ROHRABACHER. Mr. Speaker, I porters, such as the U.S. Chamber of Patent trolls use weak patents to ex- rise reluctantly to favor the rule be- Commerce, the National Association of tort millions of dollars from innocent cause it makes an extremely important Realtors, the National Association of business owners through demand let- amendment, my own and several oth- Broadcasters, which shows how essen- ters and frivolous patent infringement ers, it approves them to come on the tial patent reform is for American lawsuits. Businesses are forced to de- floor; but I oppose final passage be- businesses and all industries. While we can all agree that this is cide between years of costly litigation cause even with those amendments, not a perfect bill, its passage will allow or a settlement. they do not do enough to make this bill our businesses to fuel the U.S. eco- The number of patent infringement worth supporting. nomic recovery rather than battle abu- claims has almost doubled in the past 3 One of the most important amend- sive litigation. I urge my colleagues to years, and The New York Times re- ments is my amendment, as I stated, which would strike the section of this support innovation by voting ‘‘yes’’ on ported that one lawyer filed patent final passage of the Innovation Act. lawsuits against 1,638 companies in the legislation which eliminates for the small inventor, for the independent in- CHAMBER OF COMMERCE OF THE past 5 years. These lawsuits soak up ventor, the right of judicial review if UNITED STATES OF AMERICA, capital that is better spent on invest- his case is being mishandled by the Washington, DC, November 20, 2013. ment, innovation, and job creation. Hon. BOB GOODLATTE, In fact, a 2012 study by the Boston patent system. And let me just note that if, indeed, this was to protect, if Chairman, Committee on the Judiciary, House University School of Law found that of Representatives. Washington, DC. we were going to protect the little guy, patent trolls cost the American econ- DEAR CHAIRMAN GOODLATTE: The U.S. if that was the purpose of this bill, omy $80 billion annually. The study Chamber of Commerce, the world’s largest there wouldn’t be a question here. But business federation representing the inter- also found that defendants paid $29 bil- here we are eliminating the little guy’s ests of more than three million businesses of lion to patent trolls in 2011 alone. right to even go to court if he is being all sizes, sectors, and regions, as well as The Innovation Act targets abusive mistreated by the patent system. state and local chambers and industry asso- patent litigation while protecting le- Also, an amendment not made in ciations, and dedicated to promoting, pro- gitimate patent infringement claims. tecting, and defending America’s free enter- order was MARCY KAPTUR’s amendment prise system, commends you for advancing It provides accountability on the front which would have, again, protected the end of litigation by requiring parties to the patent litigation reform debate by intro- little guy. We are being told this pro- ducing and moving to markup H.R. 3309, the state exactly why they are filing suit. tects the little guy; yet they won’t ‘‘Innovation Act.’’ H.R. 3309 also requires parties who file allow MARCY KAPTUR’s amendment, The Chamber strongly supports the protec- meritless patent claims to pay the at- which is aimed at protecting the little tion of legitimate intellectual property torneys’ fees of their victims as a dis- guy, from even coming to a vote. rights. The patent system fosters innova- incentive to pursue their baseless tions and economic growth across a wide va- The SPEAKER pro tempore. The riety of industries. The ability for legitimate claims. time of the gentleman has expired. These reforms are vital to restore ac- patent holders to defend their intellectual Mr. NUGENT. I yield an additional 30 property is vital to keeping U.S. businesses countability and rein in abusive, frivo- seconds to the gentleman. strong and competitive—both domestically lous, and costly patent lawsuits. I urge Mr. ROHRABACHER. We hear over and globally. my colleagues to support this impor- and over again that this is about pat- At the same time, however, the Chamber is tant legislation, and I thank Chairman ent trolls and hinting that there are il- acutely aware of the problems associated GOODLATTE for introducing this bipar- legitimate patents that we are talking with excessive and abusive patent litigation. tisan bill. In too many instances, elements of the plain- about. We are talking about legitimate tiffs’ bar leverage the potentially astronom- Mr. POLIS. I yield 11⁄2 minutes to the patents; and the patent troll, let us ical cost of patent litigation to force abusive gentlewoman from California (Ms. just note, who is he going against sup- and coercive settlements. The Chamber is CHU), a member of the Judiciary Com- posedly, it is multinational mega— particularly concerned by the increasing mittee, one of the key architects and mega—corporations that routinely in- prevalence of third party litigation financing somebody who worked very hard on fringe on the little guy. Yet MARCY to fund frivolous and abusive patent cases, this bill. KAPTUR, while trying to protect the the increased use of procedural maneuvers Ms. CHU. Mr. Speaker, I rise today in rights of the little guy against these designed to further escalate the cost of liti- support of the Innovation Act. This bill gation and force settlements, and the plain- giant corporations—like Google—in- tiffs’ bar’s use of patent demand letters to will help curb abusive lawsuits brought stead, we have not permitted her extract settlements from innocent users and by patent assertion entities, more com- amendment to come forward. sellers of a product. H.R. 3309 seeks to ad- monly known as patent trolls. This is the greatest attack, this bill, dress these very real patent litigation prob- Rather than relying on patents to on the small inventor that I have ever lems. protect investments in new innovative seen in 25 years. I ask support for the While the various concerns raised by ele- technologies, these actors abuse our rule, but oppose the bill itself. ments of the business community with H.R. patent system. They threaten legiti- 3309 will need to be addressed through the Mr. POLIS. Mr. Speaker, I yield 2 overall legislative process, the Chamber is mate businesses and consumers with minutes to the gentleman from Cali- pleased that you are moving this legislation costly litigation for selling or using a fornia (Mr. CA´ RDENAS). forward. The Chamber views this as a posi- product that falls under their overly Mr. CA´ RDENAS. Mr. Speaker, I rise tive development and appreciates your work broad patent. today in support of H.R. 3309, the Inno- on this important issue.

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00017 Fmt 0636 Sfmt 0634 E:\CR\FM\K04DE7.026 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE H7466 CONGRESSIONAL RECORD — HOUSE December 4, 2013 The Chamber looks forward to working sociation of America; Online Pub- Mr. NUGENT. I do not. with you, your congressional colleagues, and lishers Association; Overstock.com, other interested stakeholders as H.R. 3309 Inc.; Printing Industries of America; b 1315 moves through the legislative process in The R Street Institute; U.S. Travel As- Mr. POLIS. Mr. Speaker, I am pre- order to ensure that demonstrable patent sociation. pared to close, so I yield myself such litigation abuses are addressed appro- time as I may consume. priately, while preserving America’s strong NATIONAL ASSOCIATION OF REALTORS, The gentleman from Georgia (Mr. tradition of protecting intellectual property Washington, DC, December 2, 2013. COLLINS), rightly asserted that the rights. Re Support H.R. 3309—Scheduled for Floor Sincerely, Vote This Week. Democrats did not, in fact, when they were in charge of the legislature in R. BRUCE JOSTEN, Hon. JOHN BOEHNER, Executive Vice President, Speaker, House of Representatives, U.S. Capitol, both Chambers, fix our broken immi- Government Affairs. Washington, DC. gration system. However, we did pass Hon. NANCY PELOSI, the DREAM Act. And given that this is DECEMBER 3, 2013. Minority Leader, House of Representatives, U.S. football season and I think that my Hon. JOHN BOEHNER, Capitol, Washington, DC. friend, the gentleman from Georgia, Speaker, House of Representatives. DEAR SPEAKER BOEHNER AND MINORITY perhaps shares affinity for football, Hon. NANCY PELOSI, LEADER PELOSI, On behalf of the more than Minority Leader, House of Representatives. that while we did not in fact score a one million members of the NATIONAL AS- touchdown and fix our broken immi- DEAR SPEAKER BOEHNER AND MINORITY SOCIATION OF REALTORS® (NAR), I urge LEADER PELOSI: The broad-ranging group of you to support H.R. 3309, ‘‘the Innovation gration system, at least the Democrats undersigned industries and main street Act’’ (Goodlatte, R–VA), scheduled for a vote got a field goal when we were in American businesses, responsible for tens of on the House floor this week. Our members charge. We are still waiting for the Re- millions of U.S. jobs and hundreds of billions view the reforms in this bill as an important publicans to match our field goal here of dollars in economic activity, support pas- step in protecting innovators and main if we can’t score a touchdown with sage of the Innovation Act of 2013 (H.R. 3309). street businesses from broad claims of patent We believe this legislation aims to address comprehensive immigration reform, infringement based on patents of question- and we look forward to improving the widespread abuses of the legal system by able validity, all brought by non-practicing certain patent assertion entities, commonly entities. these bills that have passed out of the referred to as patent trolls. NAR, whose members identify themselves committee before the asbestos bill, be- During this time of economic need, we be- as REALTORS®, represents a wide variety of fore the patent reform bill, and need lieve enactment of H.R. 3309 is integral to real estate industry professionals. REAL- the work of the full membership of this curbing frivolous and costly patent litiga- TORS® have been early adopters of tech- body to improve them. tion that currently hinders our ability to in- nology and are industry innovators who un- Legislation is not like a fine wine, novate, create jobs and promote positive eco- derstand that consumers today are seeking that when it sits in a barrel it im- nomic growth. Such frivolous lawsuits by real estate information and services that are patent trolls are an expensive distraction for fast, convenient and comprehensive. Increas- proves itself. It needs to be actively many diverse, mainstream American indus- ingly, technology innovations are driving worked upon to improve it, and I hope tries, and the staggering growth of patent the delivery of real estate services and the that it is a matter of days or hours or troll activity in recent years has caused our future of REALTORS’® businesses. minutes until we can dust off these im- businesses to receive thousands of threat- As technology users, NAR and several of migration bills that Chairman GOOD- ening demand letters and forced more than its members recently faced onerous patent LATTE and the Judiciary Committee 7,000 lawsuits (a 400% increase since 2006), infringement litigation over questionable have worked on and improve upon patents dealing with location based search costing the U.S. economy more than $80 bil- them so that this body can actually lion in 2011 alone. capabilities. These suits were brought by Simply, patent trolls do not innovate, cre- patent holding companies and other non- move forward and score a field goal, a ate jobs or promote economic growth. Our practicing entities. They were eventually touchdown or more, and finally replace businesses do. settled in a multi-million dollar settlement. our broken immigration system with To make clear, patent trolls no longer only In addition, our broker and agent members one that reflects our values as Ameri- threaten large technology companies. In are increasingly dealing with demand letters cans, restores the rule of law, reduces 2012, patent trolls filed more lawsuits to license commonly used technologies like our deficit by $200 billion, creates 6 against small and medium-sized non-tech scanner-copiers and online alert functions. million jobs for American citizens, se- Our members know firsthand that ‘‘patent businesses than against tech companies. The cures our borders, and implements many targets of this abuse, ranging from trolls’’ divert significant time and money food providers, retail stores and media com- from their businesses. workplace enforcement of our immi- panies to financial institutions, hotels, gam- The Innovation Act will bring needed re- gration system. I am confident that we ing entertainment companies and other in- forms to address the troll problem by in- can do that working together, just as dustries that drive the U.S. economy, have creasing transparency, and pleading speci- we are working together on these bills been left with no choice but to defend them- ficity among other things. Taken together, that are before us today. selves through inefficient and burdensome the reforms in the Innovation Act will shift As I indicated earlier, that while the processes, rarely avoiding costly litigation. the burden of frivolous litigation from small patent bill does harvest some low- We believe American businesses must be able business defendants to the trolls themselves. Without needed reforms that assure that hanging fruit, there remains a lot of to defend against these consequential at- asserted patent rights are legitimate and work to be done to create a 21st cen- tacks more efficiently and less expensively. While we recognize there may be no single frivolous litigation schemes are curtailed, tury intellectual property protection the ability of businesses owned by REAL- system for our country. solution that addresses all complexities sur- ® rounding our nation’s patent process, but TORS , many of which are small businesses, One such effort was an amendment one thing is clear: The Innovation Act of 2013 to grow, innovate and better serve modern that I offered, Polis amendment 5, that has significant bipartisan support on Capitol consumers will be put at risk. NAR supports was not allowed under this rule. This the reforms in the Innovation Act as a way Hill and throughout many sectors, small and to rebalance a patent system that is increas- amendment reflects a bill that I spon- large, of the American business community. ingly a target of uncertainty and abuse. sor with Mr. MARINO that regards the This broad support and willingness to work Most REALTORS® are entrepreneurs and Demand Letter Transparency Act. De- together is a true testament to its impor- small business owners, and we help to create pending on a start-up’s resources, even tance and we urge House passage of H.R. new jobs in our communities. We urge you to 3309. the recipient of one demand letter can vote in favor of The Innovation Act of 2013 so even be a death sentence for a small Sincerely: that the threat of patent trolls is mitigated Alliance of Automobile Manufacturers; one-, two-, three-person company. The in the future, allowing us to return to our es- threat of a demand letter alone can American Gaming Association; Amer- sential mission: to serve our clients. ican Hotel & Lodging Association; Coa- Sincerely, jeopardize a company’s ability to raise lition for Patent Fairness; Competitive STEVE BROWN, funds, can scare away potential cus- Carriers Association; Footwear Dis- 2014 President, tomers, and, God forbid, actually de- tributors & Retailers of America; National Association of Realtors®. fending a patent lawsuit can cost hun- International Franchise Association; dreds of thousands to millions of dol- MPA—The Association of Magazine Mr. NUGENT. Mr. Speaker, I reserve Media; National Association of Broad- the balance of my time. lars in legal bills, which to a one-, casters; National Cable and Tele- Mr. POLIS. Mr. Speaker, I would like two-, or three-person company is sim- communications Association; National to inquire if the gentleman has any ply a matter of shutting the doors be- Restaurant Association; Newspaper As- other speakers. cause they cannot afford to do that.

VerDate Mar 15 2010 02:50 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00018 Fmt 0636 Sfmt 0634 E:\CR\FM\A04DE7.007 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE December 4, 2013 CONGRESSIONAL RECORD — HOUSE H7467 At the Rules Committee yesterday, I to aggregate their resources to buy Our Nation cannot afford to maintain offered my bipartisan amendment stock equity in companies. We have a a 20th century intellectual property based on legislation that I introduced cap on the debt equity ratio of two to protection system in a digital and bio- with Representative MARINO and Rep- one, and they do what they do. People logical era. This bill does not correct resentative DEUTCH that would provide earn money and people lose money, and that. It does not change that. It is a a comprehensive approach to increas- that is how the economy works, but modest step forward and an important ing transparency and accountability in there is absolutely no systemic risk. part of reforming parts of the process the demand letter process. While our Some of these dollar amounts sound that Democrats, Republicans, and amendment was not made in order, I high, but what we talked about in the many stakeholders can agree are bro- am grateful we did include at least Rules Committee yesterday is that you ken. some slight provisions regarding who might have a private equity fund that The measure contains bipartisan bal- owns shell corporations, amendment 4 is $300 million. That sounds like a lot anced proposals, just as H.R. 15 does, was allowed. We plan to continue to of money. That is the amount of money the comprehensive immigration reform press forward on the need to address they have to invest over a period of bill in the House, with over 190 bipar- this issue through meaningful legisla- years. With $300 million, they invest tisan sponsors. And just as this bill tion. that over 5, 6, or 7 years. That is not will continue to incentivize entrepre- Our bill would require certain enti- their operational budget. Their oper- neurship, so too—times 10, times 100— ties to provide additional disclosure in- ational budget is 2 percent or less of would comprehensive immigration re- formation to the PTO and to the de- that every year. So a $300 million pri- form, which includes a start-up visa mand letter recipient so that these vate equity fund might have an annual that allows entrepreneurs who have al- start-ups and mom-and-pop restaurant budget of $6 million. ready received commitments of invest- Again, $6 million sounds like a lot of owners and stores will know who is ment to come to this country and cre- money. It certainly is. But when com- sending these demand letters and ate their jobs here. We are turning jobs pliance with the SEC reform is $500,000, whether the claims they are making for Americans away every day we fail as has been estimated, you are talking are truthful or grounded at all or just to act on immigration reform. We can about a sizeable percentage of your an- a scam. bring H.R. 15 to the Rules Committee nual operating budget. So that means Our bill would establish a searchable and to the floor of the House next week you have to hire a couple of people less. and accessible public registry of de- or we can stay the following week and mand letters and clarify that the Fed- You might not be able to do that extra investment that you didn’t have the give this body the opportunity to send eral Trade Commission could use its ability to do the diligence in. You a bill to President Obama’s desk to fi- authority to impose civil penalties to might not be able to invest in that ad- nally replace our broken immigration go after patent trolls. While the FTC ditional company and help it grow and system with one that works. has announced its intent to investigate create jobs because of regulatory com- Mr. Speaker, if we defeat the pre- PAEs, our bill would clarify the FTC’s pliance that has nothing to do with vious question, I will offer an amend- role to use its enforcement powers systemic risk. ment to the rule to bring up House against PAEs who engage in unfair and Mr. Speaker, as this session of Con- Resolution 424, Ranking Member deceptive trade practices to find as a gress comes to a close, the first session SLAUGHTER’s resolution, that prohibits violation the provisions of our bill. of the 113th Congress, there is much an adjournment of the House until we Our amendment would prevent pat- that this body has left undone. While adopt a budget conference report. This ent trolls from hiding behind anony- the other Chamber across the way has body should not adjourn until we have mous shell companies and empower de- acted on overwhelmingly bipartisan completed a budget conference report fendants to take collective action and measures that help fix our immigration that could help prevent a second gov- share information and increase report- system, saving $200 billion, creating ernment shutdown and prevent a fiscal ing so that the regulatory authorities over 6 million jobs, securing our bor- crisis. and the PTL are on alert as to which ders, restoring the rule of law, and Mr. Speaker, I ask unanimous con- patents are being frivolously asserted uniting families, this body has not sent to insert the text of the amend- by whom. passed a single bill in that area. ment in the RECORD, along with extra- In conjunction with litigation re- While the other body has passed a neous material, immediately prior to forms that are proposed in this under- bill that would prevent companies from the vote on the previous question. lying bill, our proposal would produce a discriminating against gay and lesbian The SPEAKER pro tempore. Is there more robust patent market and a more employees with strong bipartisan sup- objection to the request of the gen- productive and predictable and com- port, this body has not even brought tleman from Colorado? petitive economy. such a bill to committee or the floor. There was no objection. Our proposal is supported by a di- While I am pleased to see the bipar- Mr. POLIS. Mr. Speaker, while I am verse group of individuals and organi- tisan Innovation Act and Small Busi- actively encouraging Members on both zations, including DISH Network, Pub- ness Capital Access and Job Preserva- sides of the aisle to get behind the In- lic Knowledge, the National Res- tion Act come to the floor today, al- novation Act and the Small Business taurant Association, the Electronic though I would like to see them with a Capital Access and Job Preservation Frontier Foundation, the National Re- more open process that allowed more Act, I must urge my colleagues to vote tail Federation, the Direct Marketing ideas from both sides of the aisle to be ‘‘no’’ and defeat the previous question, Association, the Mobile Marketing As- introduced as amendments, I only hope as well as a ‘‘no’’ vote on the restric- sociation, the Association of American that a majority of this body sees fit to tive rule. Advertising Agencies, and the Hotel & hold votes on other issues such as im- I hope that we can send the message Lodging Association, among many oth- migration reform and employment that we need to bring immigration re- ers. nondiscrimination, which I am con- form to the floor of this House, rather Mr. Speaker, for once, this body is fident would pass the floor of the House than let the four bills that have al- moving forward on bipartisan legisla- today. ready emerged out of committee stay tion that will help spur innovation and As I talk to many tech companies sitting and aging and not getting any economic growth. The first bill that we and small businesses in my district, better while we fast-track asbestos and are considering with regard to private many of the purported beneficiaries of while we fast-track modest patent re- equity will help increase job growth this modest patent reform bill, they forms. and job creation in our country by re- support it, but they support immigra- The time has come to act on immi- moving a regulatory burden that was tion reform more. They say, Good job. gration reform. Please join me on vot- put in without the proper justification. Now get immigration reform done. ing ‘‘no’’ on the previous question and Private equity funds had nothing to do That is what I am hearing from em- ‘‘no’’ on the rule. with the meltdown in 2008 and 2009, nor ployers and businesses in my district. I I yield back the balance of my time. do they represent any systemic risk to hope that my colleagues on the other Mr. NUGENT. Mr. Speaker, I yield our economy. They simply allow people side of the aisle are hearing the same. myself such time as I may consume.

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00019 Fmt 0636 Sfmt 0634 E:\CR\FM\K04DE7.029 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE H7468 CONGRESSIONAL RECORD — HOUSE December 4, 2013 I am speaking to some of the com- just as this bill will do. What we did merely a procedural vote. A vote against or- ments that were made, particularly as was say, Guess what? We are no longer dering the previous question is a vote it relates to football. We talked about going to be blackmailed into giving against the Republican majority agenda and a vote to allow the Democratic minority to a field goal and 3 points, but here is the money. On a legitimate case, you are offer an alternative plan. It is a vote about position that the majority has taken in going to settle; but on a case that is what the House should be debating. the House as it relates to immigration. frivolous, we would say, No thanks. Mr. Clarence Cannon’s Precedents of the It is about first downs. It is about mov- Let’s go to trial. They never want to do House of Representatives (VI, 308–311), de- ing the ball forward in measured steps, that because it is expensive on their scribes the vote on the previous question on about getting it right the first time, end, too, particularly when they could the rule as ‘‘a motion to direct or control the consideration of the subject before the House not going through what we have gone wind up paying for that. being made by the Member in charge.’’ To through with these huge bills. Mr. Speaker, a lot has been said defeat the previous question is to give the Mr. POLIS. Will the gentleman today, and I think a lot more is going opposition a chance to decide the subject be- yield? to be said after we pass this rule. As we fore the House. Cannon cites the Speaker’s Mr. NUGENT. I yield to the gen- talk about what I think is fair, that ruling of January 13, 1920, to the effect that tleman from Colorado. abusive patent litigation is a growing ‘‘the refusal of the House to sustain the de- Mr. POLIS. It seems more like we problem—we have heard that from both mand for the previous question passes the have been in a timeout for 3 months control of the resolution to the opposition’’ sides today. in order to offer an amendment. On March since these bills have passed com- b 1330 15, 1909, a member of the majority party of- mittee. fered a rule resolution. The House defeated Mr. NUGENT. Reclaiming my time, Under current patent systems, small the previous question and a member of the it takes time, as you know, to move businesses and startups simply don’t opposition rose to a parliamentary inquiry, meaningful legislation through and to have the resources to compete with the asking who was entitled to recognition. get it right the first time. patent trolls. They are easy targets. Speaker Joseph G. Cannon (R–Illinois) said: You have to live with some things They routinely settle, regardless of the ‘‘The previous question having been refused, merits of the case, to avoid hefty legal the gentleman from New York, Mr. Fitz- when you have these megabills with gerald, who had asked the gentleman to thousands of pages, such as a 1,000-page costs. yield to him for an amendment, is entitled to immigration bill or 2,500 pages for the We understand that, therefore, it is the first recognition.’’ Affordable Care Act. At the end of the important that we level the playing The Republican majority may say ‘‘the day, let’s do this in a reasonable ap- field for our innovators, our innovators vote on the previous question is simply a proach, because we want immigration that actually create something, an idea vote on whether to proceed to an immediate vote on adopting the resolution . . . [and] reform, because we know we have a out of thin air, and create something that can be turned into jobs in the fu- has no substantive legislative or policy im- broken immigration system. We abso- plications whatsoever.’’ But that is not what lutely know that. I think this House ture. they have always said. Listen to the Repub- has taken the right approach in doing Regardless of where the Members of lican Leadership Manual on the Legislative things in a measured way to get first this body fall on the underlying legisla- Process in the United States House of Rep- downs until we get to the end zone tion, it seems that we are all in agree- resentatives, (6th edition, page 135). Here’s where we all want to be. ment that we need to combat this de- how the Republicans describe the previous structive practice. question vote in their own manual: ‘‘Al- As we notice on this bill, even though though it is generally not possible to amend there is strong bipartisan support on We are also in agreement that we need jobs. The rule provides for consid- the rule because the majority Member con- both of these pieces of legislation, we trolling the time will not yield for the pur- still have some that aren’t happy be- eration of a bill that will give small pose of offering an amendment, the same re- cause sometimes bills never get to ex- companies more access to capital, sult may be achieved by voting down the pre- actly where everybody wants them to more opportunities to grow, more op- vious question on the rule . . . When the mo- be. I get that. In a perfect world, we portunities to create jobs. The rule tion for the previous question is defeated, control of the time passes to the Member would get everything we want. It is not makes in order important germane amendments addressing this. who led the opposition to ordering the pre- a perfect world. We don’t get every- vious question. That Member, because he thing we want. But it is about moving Mr. Speaker, we heard a call to vote ‘‘no’’ on the rule for other reasons. then controls the time, may offer an amend- the ball forward, and I think that my ment to the rule, or yield for the purpose of good friend from Colorado has talked Let’s talk about creating jobs in Amer- amendment.’’ eloquently about the issues as relate to ica. Let’s talk about protecting our In Deschler’s Procedure in the U.S. House of Representatives, the subchapter titled patent reform and private equity be- innovators. Let’s not get caught up in the poli- ‘‘Amending Special Rules’’ states: ‘‘a refusal cause I know he has been part of that tics of the day. Let’s do the right thing to order the previous question on such a rule world. He speaks from experience in for the American people today, the [a special rule reported from the Committee those areas. thing that is going to be heard today in on Rules] opens the resolution to amend- Is it everything that you want? Prob- ment and further debate.’’ (Chapter 21, sec- this House. Let’s vote on a rule, and ably not. We have heard from the tion 21.2) Section 21.3 continues: ‘‘Upon re- let’s pass that rule. I support this rule, chairman of the committee that it is jection of the motion for the previous ques- and I encourage my colleagues to vote not everything he wants. But it is a tion on a resolution reported from the Com- ‘‘yes’’ on the rule as well. mittee on Rules, control shifts to the Mem- step in the right direction. It is moving The material previously referred to ber leading the opposition to the previous the ball forward. It is getting the first by Mr. POLIS is as follows: question, who may offer a proper amendment down. It is moving it so that we can or motion and who controls the time for de- AN AMENDMENT TO H. RES. 429 OFFERED BY win the game—not a political party, bate thereon.’’ MR. POLIS OF COLORADO but the American people. Consumers Clearly, the vote on the previous question At the end of the resolution, add the fol- can win. The holders of patents can on a rule does have substantive policy impli- lowing new section: cations. It is one of the only available tools win. That is what this is all about. SEC. 3. Immediately upon adoption of this for those who oppose the Republican major- With regard to demand letters, I resolution, the House shall proceed to the ity’s agenda and allows those with alter- lived through this as a sheriff. We used consideration of the resolution (H. Res. 424) native views the opportunity to offer an al- to get demand letters that we were prohibiting the consideration of a concurrent ternative plan. going to get sued, and the whole idea resolution providing for adjournment unless Mr. NUGENT. Mr. Speaker, with that the House has adopted a conference report on behind it was the fact that they I yield back the balance of my time, thought we would settle for $30,000 or the budget resolution by December 13, 2013, if called up by Representative Slaughter of and I move the previous question on $40,000 to make them go away. Here is New York or her designee. All points of order the resolution. what happened. against the resolution and against its consid- The SPEAKER pro tempore. The The sheriffs got smart, and they put eration are waived. question is on ordering the previous together a consortium of sheriffs, 60 THE VOTE ON THE PREVIOUS QUESTION: WHAT IT question. out of 67, in a sheriffs self-insurance REALLY MEANS The question was taken; and the fund. Guess what? We changed the ta- This vote, the vote on whether to order the Speaker pro tempore announced that bles and the dynamics in regard to it previous question on a special rule, is not the ayes appeared to have it.

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00020 Fmt 0636 Sfmt 0634 E:\CR\FM\K04DE7.030 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE December 4, 2013 CONGRESSIONAL RECORD — HOUSE H7469 Mr. POLIS. Mr. Speaker, on that I [Roll No. 618] Fudge Lujan Grisham Roybal-Allard demand the yeas and nays. Gabbard (NM) Ruiz YEAS—220 Gallego Luja´ n, Ben Ray Ruppersberger The yeas and nays were ordered. Aderholt Graves (GA) Pittenger Garamendi (NM) Ryan (OH) The SPEAKER pro tempore. Pursu- Amash Griffin (AR) Pitts Garcia Lynch Sa´ nchez, Linda ant to clause 8 of rule XX, further pro- Amodei Griffith (VA) Poe (TX) Green, Al Maffei T. Maloney, ceedings on this question will be post- Bachmann Grimm Pompeo Green, Gene Sanchez, Loretta Bachus Guthrie Posey Grijalva Carolyn Sarbanes Maloney, Sean poned. Barletta Hall Price (GA) Gutie´rrez Schakowsky Matheson Barr Hanna Reichert Hahn Schiff Matsui f Barton Harper Renacci Hanabusa Schneider McCollum Benishek Harris Ribble Hastings (FL) Schrader McDermott RECESS Bentivolio Hartzler Rice (SC) Heck (WA) Schwartz McGovern Bilirakis Hastings (WA) Rigell Higgins Scott (VA) The SPEAKER pro tempore. Pursu- Bishop (UT) Heck (NV) Himes McIntyre Scott, David Roby McNerney ant to clause 12(a) of rule I, the Chair Black Hensarling Hinojosa Serrano Roe (TN) Meeks Blackburn Holding Holt Sewell (AL) declares the House in recess subject to Rogers (AL) Meng Boustany Hudson Rogers (KY) Honda Shea-Porter the call of the Chair. Brady (TX) Huelskamp Michaud Rogers (MI) Horsford Sherman Accordingly (at 1 o’clock and 32 min- Bridenstine Huizenga (MI) Miller, George Rohrabacher Hoyer Sinema Brooks (AL) Hultgren Moore utes p.m.), the House stood in recess. Rokita Huffman Slaughter Brooks (IN) Hunter Moran Rooney Israel Smith (WA) Broun (GA) Hurt Murphy (FL) f Ros-Lehtinen Jackson Lee Speier Buchanan Issa Nadler Roskam Jeffries Napolitano Swalwell (CA) 1402 Bucshon Jenkins Johnson (GA) Takano b Burgess Ross Neal Johnson (OH) Johnson, E. B. Thompson (CA) Calvert Johnson, Sam Rothfus Negrete McLeod Kaptur Thompson (MS) AFTER RECESS Camp Jones Royce Nolan Keating Tierney Cantor Jordan Runyan O’Rourke The recess having expired, the House Kelly (IL) Titus Capito Joyce Ryan (WI) Owens Kennedy Tonko was called to order by the Speaker pro Carter Kelly (PA) Salmon Pallone Kildee Tsongas OMACK Cassidy King (IA) Sanford Pascrell tempore (Mr. W ) at 2 o’clock and Kilmer Van Hollen Chabot King (NY) Scalise Pastor (AZ) 2 minutes p.m. Kind Vargas Chaffetz Kingston Schock Payne Kirkpatrick Veasey Coble Kinzinger (IL) Schweikert Pelosi f Kuster Vela Coffman Kline Scott, Austin Perlmutter Langevin ´ Cole Labrador Sensenbrenner Peters (CA) Velazquez ANNOUNCEMENT BY THE SPEAKER Collins (GA) LaMalfa Sessions Larsen (WA) Peters (MI) Visclosky PRO TEMPORE Collins (NY) Lamborn Shimkus Larson (CT) Peterson Walz Conaway Lance Shuster Lee (CA) Pingree (ME) Wasserman The SPEAKER pro tempore. Pursu- Cook Lankford Simpson Levin Pocan Schultz ant to clause 8 of rule XX, proceedings Cotton Latham Smith (MO) Lewis Polis Waters Lipinski Watt Cramer Latta Smith (NE) Price (NC) will resume on questions previously Loebsack Waxman Crawford LoBiondo Smith (NJ) Quigley postponed. Lofgren Rahall Welch Crenshaw Long Smith (TX) Lowenthal Rangel Wilson (FL) Votes will be taken in the following Daines Lucas Southerland Lowey Richmond Yarmuth order: Davis, Rodney Luetkemeyer Stewart The question on ordering the pre- Denham Marchant Stivers NOT VOTING—17 Dent Marino Stutzman vious question on House Resolution Bishop (GA) Grayson Miller, Gary DeSantis Massie Terry Campbell Herrera Beutler Radel 429; and DesJarlais McAllister Thompson (PA) Culberson Lummis Reed Adoption of the resolution, if or- Diaz-Balart McCarthy (CA) Thornberry Enyart McCarthy (NY) Rush Duffy McCaul Tiberi dered. Gingrey (GA) McMorris Sires Duncan (SC) McClintock Tipton The first electronic vote will be con- Duncan (TN) McHenry Graves (MO) Rodgers Stockman Turner Ellmers McKeon ducted as a 15-minute vote. The re- Upton Farenthold McKinley b 1428 maining electronic vote will be con- Valadao Fincher Meadows Wagner ducted as a 5-minute vote. Fitzpatrick Meehan Messrs. O’ROURKE, LEVIN, JOHN- Walberg Fleischmann Messer SON of Georgia, DEUTCH, and BEN f Fleming Mica Walden ´ Walorski RAY LUJAN of New Mexico changed Flores Miller (FL) their vote from ‘‘yea’’ to ‘‘nay.’’ PROVIDING FOR CONSIDERATION Forbes Miller (MI) Weber (TX) Webster (FL) Mr. POE of Texas changed his vote OF H.R. 3309, INNOVATION ACT; Fortenberry Mullin Foxx Mulvaney Wenstrup from ‘‘nay’’ to ‘‘yea.’’ AND PROVIDING FOR CONSIDER- Franks (AZ) Murphy (PA) Westmoreland So the previous question was ordered. ATION OF H.R. 1105, SMALL BUSI- Whitfield Frelinghuysen Neugebauer The result of the vote was announced NESS CAPITAL ACCESS AND JOB Gardner Noem Williams Wilson (SC) as above recorded. PRESERVATION ACT Garrett Nugent Gerlach Nunes Wittman The SPEAKER pro tempore. The The SPEAKER pro tempore. The un- Gibbs Nunnelee Wolf question is on the resolution. finished business is the vote on order- Gibson Olson Womack Gohmert Palazzo Woodall The question was taken; and the ing the previous question on the reso- Goodlatte Paulsen Yoder Speaker pro tempore announced that lution (H. Res. 429) providing for con- Gosar Pearce Yoho the ayes appeared to have it. sideration of the bill (H.R. 3309) to Gowdy Perry Young (AK) Granger Petri Young (IN) RECORDED VOTE amend title 35, United States Code, and Mr. POLIS. Mr. Speaker, I demand a the Leahy-Smith America Invents Act NAYS—194 recorded vote. to make improvements and technical Andrews Carson (IN) Davis, Danny A recorded vote was ordered. corrections, and for other purposes; Barber Cartwright DeFazio Barrow (GA) Castor (FL) DeGette The SPEAKER pro tempore. This is a and (H.R. 1105) to amend the Invest- 5-minute vote. ment Advisers Act of 1940 to provide a Bass Castro (TX) Delaney Beatty Chu DeLauro The vote was taken by electronic de- registration exemption for private eq- Becerra Cicilline DelBene vice, and there were—ayes 229, noes 185, Bera (CA) Clarke Deutch uity fund advisers, and for other pur- not voting 17, as follows: poses, on which the yeas and nays were Bishop (NY) Clay Dingell Blumenauer Cleaver Doggett [Roll No. 619] ordered. Bonamici Clyburn Doyle AYES—229 The Clerk read the title of the resolu- Brady (PA) Cohen Duckworth tion. Braley (IA) Connolly Edwards Aderholt Benishek Brooks (AL) Brown (FL) Conyers Ellison Amash Bentivolio Brooks (IN) The SPEAKER pro tempore. The Brownley (CA) Cooper Engel Amodei Bilirakis Broun (GA) question is on ordering the previous Bustos Costa Eshoo Bachmann Bishop (UT) Buchanan question. Butterfield Courtney Esty Bachus Black Bucshon The vote was taken by electronic de- Capps Crowley Farr Barber Blackburn Burgess Capuano Cuellar Fattah Barletta Boustany Calvert vice, and there were—yeas 220, nays Ca´ rdenas Cummings Foster Barr Brady (TX) Camp 194, not voting 17, as follows: Carney Davis (CA) Frankel (FL) Barton Bridenstine Cantor

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00021 Fmt 0636 Sfmt 0634 E:\CR\FM\K04DE7.033 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE H7470 CONGRESSIONAL RECORD — HOUSE December 4, 2013 Capito Huizenga (MI) Renacci Kind Nadler Schwartz sisting of the text of Rules Committee Ca´ rdenas Hultgren Ribble Kirkpatrick Napolitano Scott (VA) Print 113–29 shall be considered as Carter Hunter Rice (SC) Kuster Neal Scott, David Cassidy Hurt Rigell Langevin Negrete McLeod Serrano adopted, and the bill, as amended, shall Chabot Issa Roby Larsen (WA) Nolan Sewell (AL) be considered read. Chaffetz Jenkins Roe (TN) Larson (CT) O’Rourke Shea-Porter The text of the bill, as amended, is as Lee (CA) Owens Coble Johnson (OH) Rogers (AL) Sherman follows: Coffman Johnson, Sam Rogers (KY) Levin Pallone Slaughter Lewis Pascrell Cole Jones Rogers (MI) Smith (WA) H.R. 1105 Collins (GA) Jordan Lipinski Pastor (AZ) Rohrabacher Speier Be it enacted by the Senate and House of Rep- Loebsack Payne Collins (NY) Joyce Rokita Lofgren Pelosi Swalwell (CA) resentatives of the United States of America in Conaway Kelly (PA) Rooney Cook King (IA) Lowenthal Perlmutter Takano Congress assembled, Ros-Lehtinen Cooper King (NY) Lowey Peters (CA) Thompson (CA) SECTION 1. SHORT TITLE. Roskam Cotton Kingston Lujan Grisham Peters (MI) Thompson (MS) This Act may be cited as the ‘‘Small Business Ross Tierney Cramer Kinzinger (IL) (NM) Peterson Capital Access and Job Preservation Act’’. Crawford Kline Rothfus Luja´ n, Ben Ray Pingree (ME) Titus Crenshaw Labrador Royce (NM) Pocan Tonko SEC. 2. REGISTRATION AND REPORTING EXEMP- Daines LaMalfa Runyan Lynch Polis Tsongas TIONS RELATING TO PRIVATE EQ- Davis, Rodney Lamborn Ryan (WI) Maffei Price (NC) Van Hollen UITY FUNDS ADVISORS. Denham Lance Salmon Maloney, Quigley Vargas Section 203 of the Investment Advisers Act of Dent Lankford Sanford Carolyn Rangel Veasey 1940 (15 U.S.C. 80b–3) is amended by adding at DeSantis Latham Scalise Maloney, Sean Richmond Vela the end the following: Schock DesJarlais Latta Matheson Roybal-Allard Vela´ zquez ‘‘(o) EXEMPTION OF AND REPORTING REQUIRE- Schweikert Diaz-Balart LoBiondo Matsui Ruiz Visclosky Scott, Austin MENTS BY PRIVATE EQUITY FUNDS ADVISORS.— Duckworth Long McCollum Ruppersberger Walz Sensenbrenner McDermott ‘‘(1) IN GENERAL.—Except as provided in this Duffy Lucas Ryan (OH) Wasserman Duncan (SC) Luetkemeyer Sessions McGovern Sa´ nchez, Linda subsection, no investment adviser shall be sub- Schultz Duncan (TN) Marchant Shimkus McNerney T. ject to the registration or reporting requirements Waters Ellmers Marino Shuster Meeks Sanchez, Loretta of this title with respect to the provision of in- Watt Farenthold Massie Simpson Meng Sarbanes vestment advice relating to a private equity Fincher McAllister Sinema Michaud Schakowsky Waxman Welch fund or funds, provided that each such fund Fitzpatrick McCarthy (CA) Smith (MO) Miller, George Schiff has not borrowed and does not have out- Moore Schneider Wilson (FL) Fleischmann McCaul Smith (NE) standing a principal amount in excess of twice Fleming McClintock Smith (NJ) Moran Schrader Yarmuth Flores McHenry its invested capital commitments. Smith (TX) NOT VOTING—17 Forbes McIntyre Southerland ‘‘(2) MAINTENANCE OF RECORDS AND ACCESS BY Fortenberry McKeon Stewart Bishop (GA) Grayson Miller, Gary COMMISSION.—Not later than 6 months after the Foxx McKinley Stivers Campbell Herrera Beutler Radel date of enactment of this subsection, the Com- Franks (AZ) Meadows Stutzman Culberson Lummis Reed mission shall issue final rules— Frelinghuysen Meehan Terry Enyart McCarthy (NY) Rush ‘‘(A) to require investment advisers described Gardner Messer Thompson (PA) Gingrey (GA) McMorris Sires in paragraph (1) to maintain such records and Garrett Mica Thornberry Graves (MO) Rodgers Stockman Gerlach Miller (FL) provide to the Commission such annual or other Tiberi ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE reports as the Commission taking into account Gibbs Miller (MI) Tipton fund size, governance, investment strategy, risk, Gibson Mullin Turner The SPEAKER pro tempore (during Gohmert Mulvaney Upton the vote). There are 2 minutes remain- and other factors, as the Commission determines Goodlatte Murphy (FL) Valadao necessary and appropriate in the public interest Gosar Murphy (PA) ing. Wagner and for the protection of investors; and Gowdy Neugebauer Walberg b 1434 ‘‘(B) to define the term ‘private equity fund’ Granger Noem Walden Graves (GA) Nugent So the resolution was agreed to. for purposes of this subsection.’’. Griffin (AR) Nunes Walorski Weber (TX) The result of the vote was announced The SPEAKER pro tempore. After 1 Griffith (VA) Nunnelee hour of debate on the bill, as amended, Grimm Olson Webster (FL) as above recorded. Guthrie Palazzo Wenstrup A motion to reconsider was laid on it shall be in order to consider the fur- Hall Paulsen Westmoreland the table. ther amendment printed in part B of Hanna Pearce Whitfield House Report 113–283, if offered by the Harper Perry Williams PERSONAL EXPLANATION Harris Petri Wilson (SC) Mr. GINGREY of Georgia. Mr. Speaker, on gentlewoman from New York (Mrs. Hartzler Pittenger Wittman rollcall No. 618 on ordering the previous ques- MALONEY), or her designee, which shall Hastings (WA) Pitts Wolf tion on H. Res. 429, providing consideration of be considered read and shall be sepa- Heck (NV) Poe (TX) Womack rately debatable for 10 minutes equally Hensarling Pompeo Woodall the bills H.R. 1105—the Small Business Cap- Himes Posey Yoder ital Access and Job Preservation Act—and divided and controlled by the pro- Holding Price (GA) Yoho H.R. 3309—the Innovation Act—I am not re- ponent and an opponent. Hudson Rahall Young (AK) The gentleman from Texas (Mr. HEN- Huelskamp Reichert Young (IN) corded due to a family medical emergency. Had I been present. I would have voted ‘‘yea.’’ SARLING) and the gentlewoman from NOES—185 Mr. Speaker, on rollcall No. 619 on adoption California (Ms. WATERS) each will con- trol 30 minutes. Andrews Connolly Gallego of H. Res. 429, providing consideration of the Barrow (GA) Conyers Garamendi bills H.R. 1105—the Small Business Capital The Chair recognizes the gentleman Bass Costa Garcia from Texas. Beatty Courtney Green, Al Access and Job Preservation Act—and H.R. GENERAL LEAVE Becerra Crowley Green, Gene 3309—the Innovation Act—I am not recorded Bera (CA) Cuellar Grijalva due to a family medical emergency. Had I Mr. HENSARLING. Mr. Speaker, I Bishop (NY) Cummings Gutie´rrez been present, I would have voted ‘‘yea.’’ ask unanimous consent that all Mem- Blumenauer Davis (CA) Hahn bers have 5 legislative days within Bonamici Davis, Danny Hanabusa f Brady (PA) DeFazio Hastings (FL) which to revise and extend their re- Braley (IA) DeGette Heck (WA) SMALL BUSINESS CAPITAL AC- marks and submit extraneous material Brown (FL) Delaney Higgins CESS AND JOB PRESERVATION for the RECORD on H.R. 1105, currently Brownley (CA) DeLauro Hinojosa ACT Bustos DelBene Holt under consideration. Butterfield Deutch Honda Mr. HENSARLING. Mr. Speaker, pur- The SPEAKER pro tempore. Is there Capps Dingell Horsford suant to House Resolution 429, I call up objection to the request of the gen- Capuano Doggett Hoyer the bill (H.R. 1105) to amend the Invest- tleman from Texas? Carney Doyle Huffman Carson (IN) Edwards Israel ment Advisers Act of 1940 to provide a There was no objection. Cartwright Ellison Jackson Lee registration exemption for private eq- Mr. HENSARLING. Mr. Speaker, I Castor (FL) Engel Jeffries uity fund advisers, and for other pur- yield myself such time as I may con- Castro (TX) Eshoo Johnson (GA) Chu Esty Johnson, E. B. poses, and ask for its immediate con- sume. Cicilline Farr Kaptur sideration in the House. Mr. Speaker, since Congress was not Clarke Fattah Keating The Clerk read the title of the bill. in session last week, perhaps some of Clay Foster Kelly (IL) The SPEAKER pro tempore. Pursu- my colleagues missed the front page Cleaver Frankel (FL) Kennedy Clyburn Fudge Kildee ant to House Resolution 429, an amend- headline from The Washington Post. I Cohen Gabbard Kilmer ment in the nature of a substitute con- read: ‘‘Among American Workers, Poll

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00022 Fmt 0636 Sfmt 0634 E:\CR\FM\A04DE7.006 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE December 4, 2013 CONGRESSIONAL RECORD — HOUSE H7471 Finds Unprecedented Anxiety About volved from one that provides a service Street, but let me tell you what pri- Jobs and Economy.’’ for a customer into one that provides vate equity is not. Private equity it is According to the report, American that same service as an afterthought not Wall Street. It is not complex de- workers are living with ‘‘unprece- while our real efforts go into paper- rivatives trading. It is not currency dented economic anxiety.’’ More than work.’’ swaps. Mr. Speaker, it is not about sys- six in 10 worry that they will lose their b 1445 temic risk. That is not what this is jobs. Nearly one in 3 say they worry a about. And so, again, this was a provi- lot about losing their jobs. Mr. Speaker, we can debate the rel- sion aimed at Wall Street that, unfor- The article goes on to mention an ative merits or demerits of the Dodd- tunately, is hitting Main Street. American named John Stewart who Frank Act; but even the primary au- It is time to make sure that Ameri- wakes up every morning at 1:30 a.m. for thor himself, former Chairman Frank, cans like John in Philadelphia can live a 2-hour commute to catch two dif- admitted that perhaps not every aspect like a human being. It is time to make ferent buses in Philadelphia so he can of Dodd-Frank achieved perfection. sure that constituents like mine, Ida And many of us would argue on a bi- get to work on time. In the newspaper, and her husband, don’t have to drive partisan basis that the part of the act he said: ‘‘I can’t save money to buy the 3,500 miles a week just so they can put that requires small business investors things I need to live as a human food on the table. being.’’ who are private equity advisers to reg- Mr. Speaker, it is time, again, for ister with the SEC is perhaps one of Mr. Speaker, we don’t have to read this institution to put jobs first, not those provisions that is in need of re- The Washington Post. All we have to regulators first, but jobs first. I urge do is listen to our own constituents, form. This is a provision, Mr. Speaker, that all of my colleagues to adopt H.R. 1105. since even today millions—millions—of I reserve the balance of my time. many of us believe was aimed at Wall our fellow countrymen remain unem- Ms. WATERS. Mr. Speaker, I ask Street, but ends up hurting Main ployed and underemployed. unanimous consent that the gentleman Street. Because of this provision em- I hear these stories every week my- from Massachusetts (Mr. LYNCH) man- bedded in Dodd-Frank, smaller firms self. Recently, I heard from Ida in Wills age the time at this time. that invest in entrepreneurs and in Point, Texas, in the Fifth Congres- The SPEAKER pro tempore. Is there small businesses face yet one more sig- sional District that I represent. She objection to the request of the gentle- nificant regulatory cost, regulatory woman from California? and her 79-year-old husband own a burden, more red tape. small trucking company. She wrote me As one of the small business inves- There was no objection. that ‘‘because of increasing regulations tors testified before our committee, it Mr. LYNCH. Mr. Speaker, I yield my- in taxes in the past 4 years, we have is going to cost his company $200,000 self such time as I may consume. I rise today in opposition to H.R. lost all but two of our trucks.’’ She every year to comply with the regula- 1105, which will create a gaping loop- goes on to write me: ‘‘My husband is tion. He went on to say: hole for private equity fund advisers the only driver right now because I can While for some larger firms this is an in- no longer drive. He drives full-time significant cost, for a medium-sized firm and deprive investors and regulators of 3,500 miles a week most weeks because such as ours that offers capital to small busi- important information about the risk we can’t live on his Social Security.’’ nesses, it is a significant expense. these funds pose. She says: ‘‘We are really stuck in a And pay attention to this, Mr. The Dodd-Frank Act wisely required hole.’’ Speaker. He said: that advisers to all hedge funds, pri- Millions, Mr. Speaker, are ‘‘stuck in This money comes directly out of our vate equity funds, and other private a hole.’’ funds intended for investment into Main funds register and file regular reports Today, we have an opportunity, Mr. Street. with the SEC. It did this for two rea- Speaker, to do something to help raise In today’s economy, to help pull sons: one, to help regulators better un- many of our fellow countrymen out of these people out of this hole of eco- derstand the systemic risks that these that hole of economic anxiety and eco- nomic anxiety, we need more private funds pose to the overall financial sys- nomic hardship. Today, we have the op- sector, more private equity investment tem, and to provide investors in these portunity to pass H.R. 1105, the Small into Main Street. Private equity equals funds with meaningful information Business Capital Access and Jobs Pres- small business jobs. about the funds’ governance. ervation Act. In fact, Mr. Speaker, between 1995 This bill would exempt nearly every I want to commend the bipartisan and 2010, 23,000 different companies private equity fund adviser from these group of Members—two Republicans across our Nation benefited from pri- important disclosure requirements. and two Democrats—who introduced vate equity investment, employing 3 Some of my colleagues who support the bill: Mr. HURT of Virginia, Mr. million different people, and the in- this bill will argue that because private HIMES of Connecticut, Mr. GARRETT of vestments that are made by private eq- equity funds were not the cause of the New Jersey, and Mr. COOPER of Ten- uity historically have grown jobs at last crisis, we should not subject them nessee. three times the rate of other compa- to these modest transparency and ac- As chairman of the Financial Serv- nies. countability requirements. ices Committee, Mr. Speaker, I want to And so what does this look like? I But one of the most important les- thank all the members of the com- have to tell you, Mr. Speaker, it look sons we did learn during the financial mittee who came together across party likes an outfit called New Mountain crisis is that systemic threats seem to lines to approve the bill. Mr. Speaker, Capital that invested in a company always bubble up from the opaque and nearly one-third of the Democrats who named Inmar, a national coupon and unregulated sectors of the market. Giv- sit on our committee joined with 30 Re- reverse logistics processing company. ing this exemption will allow threats publicans in supporting H.R. 1105. In By helping them update their IT with a to once again grow in the dark corners short, Mr. Speaker, this is, indeed, a bi- $100 million investment, they now sup- of our financial system, only showing partisan jobs bill. port 4,200 different employees. themselves when it is too late to pre- We know that small businesses face The face of private equity looks like vent serious harm to the American tax- an incredible red tape burden. In fact, a Capital South Partners that invested payer. recent survey of the National Federa- in a North Carolina firm, Vita Supporters of this bill, while well-in- tion of Independent Business said that Nonwovens, and now they have 95 em- tended, will point to the provision that ‘‘government regulations and red tape ployees in High Point, North Carolina, ensures advisers to private equity are the single most important chal- and I should add parenthetically, an- funds with leverage ratios over 2:1 will lenge that small businesses face in cre- other 55 employees in my native Texas. still have to register. This may sound ating and preserving jobs.’’ This is the face of private equity. attractive on its surface until you real- Mr. Speaker, I heard from another These are some of the small business ize that every private equity fund is small business person in Grand Saline, jobs that are being created. basically within that parameter. Pri- Texas, in my district. He said because Now, we may hear from some that vate equity funds invest in companies, of overregulation ‘‘our business has de- this is needed to somehow battle Wall and it is these portfolio companies that

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00023 Fmt 0636 Sfmt 0634 E:\CR\FM\K04DE7.039 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE H7472 CONGRESSIONAL RECORD — HOUSE December 4, 2013 load up on leverage and that have the In Virginia’s Fifth District, my dis- In the end, the costs of unnecessary potential to take on outside risk, pil- trict, there are literally thousands of registration represent real capital that ing on the leverage while the private jobs that exist because of the invest- otherwise could be used to invest in equity fund itself appears on its surface ment of private equity. These critical companies such as Virginia Candle in to be modestly leveraged. A private eq- investments allow our small businesses our district—a company that, through uity fund could have a leverage ratio to innovate, expand their operations, private equity investment, expanded well below 2:1, while its portfolio com- and create the jobs that our commu- from a garage in Lynchburg, Virginia, panies are leveraged in excess of 30:1 nities need. If enacted, the unnecessary to millions of homes across the world. masking the actual risk that these burdens on advisers to private equity Beyond Virginia Candle in Virginia, funds pose. Nearly every private equity funds that do not have excessive lever- private equity-backed companies em- fund in existence today would come in age would be eliminated, and they ploy over 7.5 million people. Let me say below the 2:1 leverage cap. This is a would be given the same exemption that again: private equity-backed com- hollow limitation that provides no pro- from the SEC’s registration require- panies employ over 7.5 million people tection to the funds’ investors or to the ments that venture capital advisers nationwide in over 17,000 U.S. compa- American taxpayer. enjoy. nies. The impact of the registration re- Mr. Speaker, we learned the hard These registration requirements, quirements stand to diminish job cre- way after the recent financial crisis which do not make the financial sys- ation in each of the congressional dis- that systemic risks grow in the dark tem any more stable, impose an undue tricts represented on this floor today. corners of our financial markets and burden on small and mid-sized private I ask all of my colleagues today to that the more information we can equity firms, and decrease the ability join me in voting ‘‘yes’’ on H.R. 1105 gather about how the markets work, of their investment to create jobs. and pass this bill from the House in the safer we will be. The registration During our Financial Services Com- order to increase the flow of private and reporting requirements for private mittee hearing on the bill, witnesses capital to our small businesses so that equity advisers are modest and nar- discussed the cost these requirements they can innovate, grow, and create rowly tailored, but they provide inves- have imposed on private equity firms. jobs for the American people. tors and regulators with important in- They force investment advisers to pri- SMALL BUSINESS INVESTOR ALLIANCE, formation. Rolling back these reforms vate equity to expend substantial re- December 3, 2013. now moves us in the wrong direction. I sources that disproportionately affect Hon. JOHN A. BOEHNER, urge my colleagues to oppose H.R. 1105. small and mid-sized funds with costs of Speaker, House of Representatives, I reserve the balance of my time. hundreds of thousands of dollars annu- Washington, DC. Mr. HENSARLING. Mr. Speaker, I ally, or more, to comply with these re- Hon. NANCY PELOSI, am now privileged to yield 5 minutes to quirements. Democratic Leader, House of Representatives, It is important to note that most Washington, DC. the gentleman from Virginia (Mr. DEAR SPEAKER BOEHNER AND DEMOCRATIC people, including SEC Chair Mary Jo HURT), the primary author of this leg- LEADER PELOSI: On behalf of the Small Busi- islation, a real leader on our com- White, concede that private equity ness Investor Alliance (SBIA), the premier mittee and in this Congress in creating funds did not cause the 2008 financial organization of lower middle market private jobs. crisis and are not a source of systemic equity funds and investors, we urge you to Mr. HURT. Mr. Speaker, I rise in sup- risk, despite that argument being the support passage of the bipartisan Small port of H.R. 1105, the Small Business impetus for the registration require- Business Capital Access and Job Preserva- Capital Access and Job Preservation ment under Dodd-Frank. These funds tion Act (H.R. 1105), sponsored by Represent- are not highly interconnected with atives Robert Hurt (VA–5), Jim Himes (CT– Act, a bipartisan bill that our col- 4), Scott Garrett (NJ–5), and Jim Cooper leagues, Representatives COOPER, other financial market participants; (TN–5). Passage of H.R. 1105 would reduce ex- HIMES, GARRETT, and I introduced ear- and, therefore, the failure of a private pensive regulatory costs for small business lier this year. I thank all of them for equity fund would be highly unlikely investors enabling increased capital forma- their leadership on this issue. to trigger cascading losses that would tion and job creation for growing small busi- I would also like to thank Chairman lead to a similar financial crisis. Addi- nesses. HENSARLING and again Chairman GAR- tionally, these funds invest primarily Private equity funds are critical to the capital raising process for many small busi- RETT for their support and leadership in illiquid assets, including small Main nesses. In fact, a Pepperdine University on this bill, as we were able to achieve Street businesses found across our study found that private equity backed busi- a bipartisan vote out of the Financial country. These businesses are diversi- nesses generated 129 percent more revenue Services Committee. fied across multiple industries and growth and 257 percent more employment Every Member of this body can agree therefore lack concentrated exposure growth than non-private equity backed busi- that with millions of Americans out of to any single sector. nesses. America needs more private equity work, our top focus in Congress should Furthermore, investors in private eq- small business investing, not less. be, and it must be, enacting policies to uity firms are all sophisticated inves- It is commonly overlooked that small busi- spur job creation throughout our Na- tors who negotiate for the strongest in- ness investors are generally small businesses vestor protections. These sophisticated too. They are being held back by expensive tion. regulatory costs as a result of new expanded Today, the House takes up another investors include public pension funds, SEC registration requirements put into place bill to encourage economic growth and university endowments, nonprofit by the Dodd-Frank Act. Investment Adviser job creation by increasing the flow of foundations—many of whom are the registration is very costly in both money private capital to small businesses that primary beneficiaries of private equity and time, especially for smaller funds that are found on Main Streets all across successes. Those investors typically do most of the small business investing. America. At a time when the available are represented by counsel and heavily Most of our private equity funds do not have avenues of capital and credit for small negotiate fund terms in advance of in- legal departments, compliance teams, and businesses continue to decrease, cap- vesting, including reporting govern- other forms of overhead that are required by ital investments from private equity ance and conflicts of interest. the new regulatory system. Compliance costs are often $250,000 or more per year—a heavy into our communities are more impor- It should also be noted that H.R. 1105 expense to a small business investment fund. tant than ever. does nothing to change current Federal Many of the new burdens are caused by the Unfortunately, Dodd-Frank has law with respect to common law and fact that the SEC rules are designed to deal placed a costly and unnecessary regu- statutory fiduciary protections owed with publicly traded businesses and invest- latory burden of SEC registration on by investors to advisers to private eq- ing, not for investing in domestic, privately- advisers to private equity while ex- uity funds. There are already existing held small businesses. Small business inves- empting advisers to similar investment significant investor protections avail- tors are not mutual funds, multi-national funds. These registration requirements able both contractually and in the conglomerates, or giant financial institu- do not improve the stability of our fi- tions and should not be treated as such. form of State and Federal fiduciary du- Private equity funds, particularly those nancial system, and they restrict the ties and antifraud protections—inves- supporting small businesses, are not a sys- ability of private equity to invest cap- tor protections that exist whether or temic risk and did not contribute to the fi- ital in our small businesses to spur job not the advisers are registered with the nancial crisis. H.R. 1105 would reduce regu- growth. SEC. latory costs, but would still maintain record

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00024 Fmt 0636 Sfmt 0634 E:\CR\FM\K04DE7.040 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE December 4, 2013 CONGRESSIONAL RECORD — HOUSE H7473 retention and information for regulators and to meet short-term and long-term growth hanced SEC oversight. Choosing to increase thus maintain investor safeguards. needs. This diversity of capital has provided regulation on private equity and growth cap- Congress can reduce unnecessary burdens the liquidity needed for different sized firms ital will require a disproportionately large for our private equity funds and allow them to be able to have the opportunity to achieve level of resources from the SEC’s budget and to do what they do best—invest in job cre- success. Congress recognized these facts and divert focus from protecting retail investors ating small businesses to empower them to the needs to increase diverse portals of cap- and ensuring market integrity. succeed, create jobs, and grow the economy. ital access in passing the bipartisan Furthermore, registration does not provide SBIA strongly supports passage of the bipar- Jumpstart Our Business Startups Act additional investor protections, and it sig- tisan Small Business Capital Access and Job (‘‘JOBS Act’’) last year. nificantly increases the cost of compliance Preservation Act. Private equity financing is an important for private equity and growth capital firms. Sincerely, form of financing for smaller businesses that These registration regulations treat private BRETT PALMER, are trying to grow. In fact, between 1995 and equity and growth capital firms like invest- President. 2010 over 23,000 businesses, employing 3 mil- ment advisers with retail clients. In con- lion people, were backed by private capital. trast, private equity works with sophisti- SMALL BUSINESS & These businesses grew jobs at a rate of 64% cated, accredited investors who mostly con- ENTREPRENEURSHIP COUNCIL, compared to other businesses which only sist of pension funds, charitable foundations December 2, 2013. grew jobs at a rate of 18%. It should also be and university endowments. These investors Hon. ROBERT HURT, noted that private equity financing was not are typically represented by legal counsel House of Representatives, a cause of the financial crisis and that under and heavily negotiate fund terms in advance Washington, DC. its business model does not pose inter- of investing in a fund. Negotiated items DEAR CONGRESSMAN HURT: On behalf of the connected risk to the economy. Yet, the often include reporting, governance and con- Small Business & Entrepreneurship Council Dodd-Frank Wall Street Reform and Con- flicts of interest. Investors obtain little if (SBE Council), I am writing to support H.R. sumer Protection Act requires that private any benefit from the added SEC registration 1105, the Small Business Capital Access and equity firms must register with the Securi- requirements, yet the time and resources Job Preservation Act. A late September 2013 ties and Exchange Commission. needed to comply with SEC registration dis- survey by SBE Council found a disturbingly These requirements are not only costly, tracts from private equity’s core mission of large percentage of entrepreneurs (62%) who but are also designed for public company in- investing in, strengthening and growing said the outlook for their firms had not im- vestors and not investors in privately held great companies. proved (or had worsened) since the financial companies. These requirements are a mis- The private equity and growth capital in- crisis more than five years ago. For growth- match for the investment model and the dustry strongly supports the passage of H.R. oriented firms responding to the survey, ac- costs involved may be prohibitive for smaller 1105, The Small Business Capital Access and cess to capital remains a worrisome issue. firms that specialize in investing in the mid- Job Preservation Act. If you would like more That is why SBE Council continues to sup- dle markets. Accordingly, the failure to pass information about the positive impact of pri- port initiatives such as H.R. 1105, which will this bill could cut off funding sources for vate equity in your state, please visit help improve U.S. capital formation and ac- small businesses. www.PrivateEquityAtWork.com/state-by- cess for small businesses. Passage of H.R. 1105 would serve as an im- state. The overly broad Dodd-Frank law imposed portant step forward towards promoting effi- Thank you, again, for advancing this legis- SEC registration and compliance rules on cient capital markets conducive to long- lation. We look forward to working with you private equity when, quite simply, none were term economic growth and job creation. The to get this proposal enacted. needed. There was and is no evidence of per- Chamber may consider including votes on, or Sincerely, vasive problems with private equity, or that in relation to, this bill in our annual How STEVE JUDGE, it poses systemic risk to the marketplace. Ir- They Voted scorecard. President & CEO. relevant and time-consuming procedures as Sincerely, required by Dodd-Frank, only hamstring pri- R. BRUCE JOSTEN, NATIONAL ASSOCIATION OF vate equity’s role in efficiently serving the Executive Vice President, INVESTMENT COMPANIES, many small businesses that benefit from the Government Affairs. Washington, DC, December 3, 2013. capital and expertise it provides. Hon. JOHN A. BOEHNER, Lifting the redundant and burdensome PRIVATE EQUITY GROWTH Speaker, House of Representatives, Washington, Dodd-Frank regulations on private equity— CAPITAL COUNCIL, DC. as H.R. 1105 proposes to do—will improve Washington, DC, December 2, 2013. Hon. NANCY PELOSI, capital markets efficiency, and therefore Hon. ROBERT HURT, Minority Leader, House of Representatives, make a meaningful difference for entre- House of Representatives, Cannon House Office Washington, DC. preneurs. The (SEC) can also better meet its Building, Washington, DC. DEAR SPEAKER BOEHNER AND MINORITY core responsibility of protecting markets Hon. SCOTT GARRETT, LEADER PELOSI: On behalf of the National and retail investors. House of Representatives, Rayburn House Office Association of Investment Companies Please let SBE Council know how we can Building, Washington, DC. (NAIC), an advocacy association that rep- help advance H.R. 1105 into law. Hon. JIM HIMES, resents private equity member firms, includ- Sincerely, House of Representatives, Cannon House Office ing women and ethnic minorities who remain KAREN KERRIGAN, Building, Washington, DC. significantly under-represented in private President & CEO. Hon. JIM COOPER, equity, we are writing to support passage of House of Representatives, Longworth House Of- the Small Business Capital Access and Job CHAMBER OF COMMERCE OF THE fice Building, Washington, DC. Preservation Act (H.R. 1105). H.R. 1105 is bi- UNITED STATES OF AMERICA, DEAR CONGRESSMEN, Thank you for your partisan legislation sponsored by Represent- Washington, DC, December 2, 2013. leadership in advancing H.R. 1105, The Small atives Robert Hurt (VA–5), Jim Nimes (CT– TO THE MEMBERS OF THE U.S. HOUSE OF Business Capital Access and Job Preserva- 4), Scott Garrett (NJ–5), and Jim Cooper REPRESENTATIVES: The U.S. Chamber of tion Act. As you know, the bill is scheduled (TN–5). Commerce, the world’s largest business fed- for a Floor vote this week. The Private Eq- The fastest growing sector of the U.S. eration representing the interests of more uity Growth Capital Council (PEGCC) economy is the $6 trillion annual market of than three million businesses of all sizes, strongly supports this legislation. minority consumers, who within decades will sectors, and regions, as well as state and Private equity and growth capital invest- comprise the majority of consumers. NAIC local chambers and industry associations, ment drives economic activity and growth member firms represent companies that in- and dedicated to promoting, protecting, and across the U.S. economy by investing in vest in this growth sector of the U.S. econ- defending America’s free enterprise system, promising companies looking to grow and omy. Passage of H.R. 1105 reduces compli- supports H.R. 1105, the ‘‘Small Business Cap- those in need of a turnaround. Last year ance costs for private equity firms and would ital Access and Job Preservation Act.’’ This alone, private equity and growth capital in- allow our member firms to increase capital bill would amend the Investment Advisers vested $347 billion in more than 2,000 U.S.- investment in areas of the economy that are Act of 1940 to exempt private equity fund in- based businesses located in all 50 states and under-represented in their ability to access vestment advisers from its registration and every congressional district. There are 17,700 capital to create jobs. reporting requirements, provided that each companies based in the U.S. that are backed The exorbitant cost of SEC registration private equity fund has not borrowed and by private equity investment, and these can take resources away from making in- does not have outstanding a principal companies employ more than 7.5 million peo- vestments in Women- and minority-owned amount exceeding twice its invested capital ple worldwide. businesses. Annual SEC registration costs commitments. This bill would additionally The stated goal of the Dodd-Frank Act is often run as high as $250,000, as SEC reg- enhance the capital formation needed to to reduce systemic risk in the U.S. financial istered fund must spend precious resources build new businesses, expand existing busi- system. Private equity and growth capital on hiring compliance and legal services to be nesses, and create jobs. pose no systemic risk to the economy, did fully compliant with SEC rules. H.R. 1105 Businesses small and large, particularly not contribute the financial crisis and, would reduce these costs by removing some new businesses, need a mix of capital sources therefore, should not be subjected to en- of the inapplicable SEC investment adviser

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00025 Fmt 0636 Sfmt 0634 E:\CR\FM\A04DE7.012 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE H7474 CONGRESSIONAL RECORD — HOUSE December 4, 2013 rules that are unworkable for private equity on this important issue. We urge all mem- regulation, no matter how good or how funds. bers of Congress to support their efforts and bad and just regulation in general. This NAIC strongly supports passage of the vote in favor of H.R. 1105. has been a theme around here, and I Small Business Capital Access and Job Pres- Sincerely, urge Members to be suspicious of it. ervation Act and we urge your support of GARY LABRANCHE, FASAE, CAE, this important bipartisan legislation. President and CEO. It should also be considered that when this bill is in front of us, we Sincerely, Mr. LYNCH. Mr. Speaker, I yield my- JENNELL F. LYNCH, should know that people have looked self 1 minute. carefully at it. Members who are won- Vice President. I do want to respond to the gentle- dering what they want to do on this man’s invoking of the SEC chair, Mary ASSOCIATION FOR CORPORATE GROWTH, bill, they should consider that the Jo White. Judging from the gentle- Chicago, IL, December 2, 2013. Obama administration has strongly op- man’s remarks, you would think she RE Support the ‘‘Small Business Capital and posed this bill, with senior advisers might be in favor of this bill. Well, let Job Preservation Act of 2013’’ (H.R. 1105). recommending a veto. This is a bill me talk about what she says about this Hon. JOHN A. BOEHNER, that is not going to become law. There bill in particular: Speaker, House of Representatives, Washington, is no Senate companion. I just checked DC. Our markets would not be well served by and have been advised that there is no Hon. NANCY PELOSI, narrowing the scope of the commission’s ju- Minority Leader, House of Representatives, risdiction in oversight of these advisers. Senate companion. So we are really here talking about a bill that is going Washington, DC. That is with respect to this bill. She DEAR SPEAKER BOEHNER AND MINORITY to be a threatened veto by the Presi- also said: LEADER PELOSI: On behalf of the Association dent and has no Senate companion, but for Corporate Growth (ACG) and our 14,500 Private equity investors are in need of the is also opposed by SEC Chair Mary Jo same protections as other private fund inves- members and the 26,000 ‘‘Main Street’’ busi- White and the Council of Institutional nesses they operate, we urge Members of the tors. Investors, an organization which has House of Representatives to vote in favor of Lastly, she has also said that the investors’ interests in mind as this bill H.R. 1105, the Small Business Capital and commission has brought enforcement is trying to make investor information Job Preservation Act when it comes before actions, talking about the advisability more opaque, and Americans for Finan- the full body later this week. of having oversight over advisers and Founded in 1954, ACG is an organization cial Reform, not to mention the Con- having these disclosures made: with 46 chapters in the United States rep- sumer Federation of America, the resenting professionals from private equity The commission has brought enforcement AFL–CIO, and State securities regu- firms, corporations and lenders that invest actions against private equity funds and their advisory personnel involving unlawful lators. in middle-market companies, as well as from So the people who work with these law, accounting, investment banking and pay-to-play schemes, insider trading, con- other firms that provide advisory services. flicts of interest, valuation, and misappro- regulations all the time don’t think ACG represents more private equity firms priation of assets. they are the right thing to do. Even if than any other association in the United The SPEAKER pro tempore. The some Members might consider that States—virtually all of which invest in time of the gentleman has expired. maybe this might get capital to some- smaller and middle-market companies. Mr. LYNCH. I yield myself another 30 body who wouldn’t otherwise get it, the It is important that the application of the seconds. people who regulate and use these reg- Dodd-Frank Act uphold the original spirit Now, when you think about the pro- ulations every day have carefully con- and intent of the legislation without con- sidered H.R. 1105 and have come to the straining capital. Yet, Dodd-Frank requires tections that are necessary for pension that virtually all private equity firms must funds, especially where these workers conclusion that it is bad for investors, register with the Securities and Exchange have invested their whole lives in these that it creates less transparency, not Commission (SEC) under the Investment Ad- pension funds, you understand the need more, and, therefore, is, in fact, a risk visers Act of 1940, despite the fact that pri- for this disclosure. to our financial well-being. vate equity funds are structured and operate At this time I yield 3 minutes to the The SPEAKER pro tempore. The almost identically to venture capital funds, gentleman from Minnesota (Mr. ELLI- time of the gentleman has expired. which under the Dodd-Frank Act are ex- SON). Mr. LYNCH. I yield the gentleman an empted from having to register. additional 1 minute. This bipartisan legislation, introduced b 1500 Mr. ELLISON. Americans are obvi- Representatives Robert Hurt (R–VA), Jim Mr. ELLISON. Mr. Speaker, let me Himes (D–CT), Jim Cooper (D–TN) and Scott ously looking for jobs. This is the big Garrett (R–NJ), would amend the Investment thank the gentleman from Massachu- hook, the way to get anybody to vote Advisers Act of 1940 to exempt private equity setts. for anything around here. It says it is fund investment advisers from its registra- Before I launch into the substantive going to create jobs. Of course, there tion and reporting requirements, so long as critique of this bill and I urge Members has been no demonstration of how this the fund has not borrowed and does not have to vote ‘‘no,’’ I would like to make a is going to create jobs. an outstanding principal amount of debt ex- preliminary observation, and that is The point is that it will create a situ- ceeding twice its invested capital obliga- that when our chairman of our com- ation where there is less information tions. Since private equity funds were not a mittee begins his presentation, making for investors who need it, and it is im- cause of the financial crisis and its business model does not pose any interconnected risk a broad-based critique and attack on portant for Members to know that the to the economy, ACG believes H.R. 1105 is a regulation, Members should be very SEC has taken enforcement actions necessary piece of legislation that will help careful about this because good regula- against private equity firms. ensure the continued flow of capital to busi- tion is good for the American people. For example, at Knelman Asset Man- nesses. H.R. 1105 strikes a proper balance be- We need health and safety protections. agement Group, the SEC found that tween access to capital and protection from We need to be protected from unsafe registered private equity funds-to- systemic risk. H.R. 1105 also re-establishes water, unsafe products. And investors funds adviser Knelman Asset Manage- regulatory parity between private equity and need to be protected, as well. Any time ment Group, LLC, Irving Knelman, a venture capital. Private capital can be found in every cor- a Member of Congress or anyone comes managing director, chief executive offi- ner of our nation and the bipartisan Small up and says regulations are bad, this is cer and former CEO, violated the Ad- Business Capital Access and Job Preserva- obviously wrong and the American peo- visers Act custody, antifraud compli- tion Act will preserve private equity funding ple know it. Therefore, when you are ance reporting, and books and records as a pipeline of capital for growing busi- being told to do something just because provisions. This is a case where you nesses. ACG stands ready to assist and serve regulations are always bad, you should have the SEC using information to as a resource to Members of the U.S. House be very suspicious of what is going on bring accountability in the private eq- of Representatives as they aim to achieve and dig deeper into the situation. uity arena. sound financial policies and enhancements of I urge Members to just consider how the Dodd-Frank Act that accomplish contin- The SPEAKER pro tempore. The ued growth in the middle-market. important good, solid, well-tailored time of the gentleman has again ex- We thank Representatives Robert Hurt (R- regulation is to benefit the American pired. VA), Jim Himes (D-CT), Jim Cooper (D–TN) people, and I push back on anybody Mr. LYNCH. I yield the gentleman an and Scott Garrett (R-NJ) for their leadership who just makes a frontal assault on all additional 20 seconds.

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00026 Fmt 0636 Sfmt 0634 E:\CR\FM\A04DE7.013 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE December 4, 2013 CONGRESSIONAL RECORD — HOUSE H7475 Mr. ELLISON. Let me wrap up by Fannie Mae and Freddie Mac, private the SEC to go after risks that do actu- saying that we urge Members to vote equity did not cause the financial crisis ally exist. ‘‘no,’’ to look out for advisers. Even and is not—and never has been—a I now yield 3 minutes to the gen- private equity advisers need trans- source of systemic risk. tleman from Connecticut (Mr. HIMES), parency, not less information. A ‘‘no’’ As former SEC Chair Mary Schapiro a cosponsor of the bill. vote is urged here. admitted back in 2011: ‘‘Private equity Mr. HIMES. Mr. Speaker, I would Mr. HENSARLING. Mr. Speaker, at funds have less potential to pose sys- like to thank my friend from Massa- this time I am very happy to yield 4 temic risk than any other type of pri- chusetts for the time and Ranking minutes to the gentleman from New vate funds.’’ Indeed, if the SEC is so Member WATERS for being willing to Jersey (Mr. GARRETT), a coauthor of concerned about the systemic risk of hear different perspectives on this bill the legislation and the chairman of the private equity funds, their recent ex- from our side. Capital Markets and GSE Sub- aminations of private equity advisers I want to start by saying that Dodd- committee. certainly do not show it. Frank, which I think I can say I con- Mr. GARRETT. Mr. Speaker, I thank As Chair White recently said: Neither tributed more than my share to, was, the chair. the SEC’s examinations staff nor the on balance, a very good and very im- Before I give my remarks, I just want Division of Investment Management portant thing. The dragging of deriva- to say in response that I believe the ‘‘has conducted examinations of an ad- tives into the light of day, trading on chairman said that he is not opposed to viser to a private fund based primarily exchanges, clearing through clearing- all regulations. I think he said he is in on systemic risk concerns.’’ houses, the creation of the CFPB, tak- favor of regulation, but make sure that She also said: SEC examiners ‘‘have ing steps to eliminate too big to fail, it is smart and appropriate regula- not to date reviewed systemic risk there is lots of stuff in Dodd-Frank tion—at least, that is my position, as issues as part of their examinations of which is important and good. well. private funds.’’ But not everything in Dodd-Frank is Understand, too, to the gentleman’s Thirdly: None of the advisers to pri- important and good. Like all other point, that even when this legislation vate funds that withdrew their reg- works of mortals, there are things in is passed, the SEC still will have sig- istration in 2012 ‘‘had systemic market this that are probably unintended and nificant authority, will still have its impact.’’ perhaps overreaching. I happen to be- enforcement division, will still have its And so now we must ask ourselves lieve that the requirement that private new asset management unit, which has this question: Do we really want the equity funds register with the SEC is recently recruited industry profes- SEC, already saddled with a multitude one of those areas. sionals with asset management experi- of unfinished, nongermane Dodd-Frank Why is that? ence to serve as specialists in this unit mandates expending valuable resources First, private equity funds, as has to do the investigations that the gen- on risks that don’t even exist? In addi- been pointed out on the floor today, tleman wants to have continue, and it tion, because only sophisticated inves- were a million miles from the bad will continue even after the passage of tors may invest in these private equity mortgages from Fannie Mae, from this legislation. funds, the need to protect investors in Freddie Mac, from the subprime mort- With that said, I want to again thank this case is more limited compared to gages, from all of those things that the chairman. I want to thank the gen- other areas of the security market. caused the failures in 2008. They tleman from Virginia (Mr. HURT), and While I wholeheartedly support the weren’t anywhere close. also the gentleman from Connecticut SEC’s mission to protect investors, the Secondly, investor protection is im- (Mr. HIMES), as well, for their hard agency with limited resources should portant, but, by law, the only people work on this very important legisla- be devoted, first and foremost, to pro- who can invest in these funds are ac- tion, as well as all our cosponsors on tecting the less sophisticated, the re- credited investors or institutional in- both sides of the aisle. For that reason, tail mom-and-pop investors. They need vestors who don’t just sign up. They I am pleased to support H.R. 1105. And the most protection. hire attorneys to negotiate partnership do make no mistake about it; this is bi- It was Paul Kanjorski, who was in agreements. They negotiate with these partisan legislation, and it is all about Congress when Dodd-Frank went private equity funds for disclosure, for helping small businesses and helping to through. He said: the terms, and all of those sorts of create more jobs in this country. I, for one, could care less about high- things. So we are not talking about re- Today, more than 17,700 companies, wealth individuals who want to contribute tail investors here. backed by private equity employ over their money to a group of investors. If they Finally, the issue of leverage. We 7.5 million people. In my home State of want to take the shot of losing it, it does not have finally gotten to the point where New Jersey alone, 597 private equity- really affect the rest of society. people acknowledge that these are not backed companies support more than It also bears mentioning that this large leverage funds. The point is made 377,000 workers, while the New Jersey legislation in no way alters the many that the leverage is at the investment Division of Pensions and Benefits has existing tools the SEC already has to company level. That is true. Private invested billions on behalf of retirees prevent and punish fraud in the private equity firms do buy companies, invest and private equity firms. Hopefully, all equity industry for the benefit of so- in them, and then those companies those facts give you the facts you need phisticated investors and the broader take on leverage. The average leverage to know how important it is to the cre- economy. across the entire universe of private ation of jobs. Yet despite their long I urge support of H.R. 1105 at a time equity-sponsored companies is less track record supporting small business when most small businesses continue than 3 to 1. It is not 30 to 1, but 3 to 1. nationwide, the Dodd-Frank Act has to have difficulty getting credit and It is less than 3 to 1. By way of com- imposed enormous and numerous bur- need to grow. Passing this bipartisan parison, hedge funds, on average, are dens on private equity firms, forcing legislation, commonsense legislation, leveraged 15 to 1. Lehman Brothers, most fund advisers to spend literally should be no a no-brainer. when it went down, was leveraged in millions of dollars complying with new Mr. LYNCH. Mr. Speaker, I yield my- excess of 30 to 1. We are talking about SEC registration and reporting require- self 1 minute to respond to some of companies which are assuming the ments. these allegations. same kind of debt that any other small While these burdensome regulations In respect to sophisticated investors, business assumes out there, less than 3 no doubt crimp the flow of much-need- the Council of Institutional Investors, to 1. ed investment dollars to America’s which is an association representing What we have happening right now is small businesses, there is little or no corporate, union, and public pensions, we have examiners and the intention evidence that they are needed to pro- foundations and endowments, largely and the resources of the SEC, which mote the stability of our financial sys- very sophisticated investors with com- has terribly important missions around tem or to protect investors. Unlike, bined assets of $3 trillion, opposes this real estate and mortgages and deriva- say, Federal housing policy and the bill. They oppose this bill because of tives and finding the next Bernie government-sponsored enterprises the record of enforcement actions of Madoff, going to $175 million funds and

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00027 Fmt 0636 Sfmt 0634 E:\CR\FM\K04DE7.043 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE H7476 CONGRESSIONAL RECORD — HOUSE December 4, 2013 examining these funds on behalf of the I ask my colleagues to support H.R. So I hope my colleagues, particularly sophisticated investors. That does not 1105. I am a proud cosponsor and be- among new Democrats and Blue Dogs, make sense. lieve we should pass this important will understand this is a job-creation Dodd-Frank exempted venture cap- bill. issue. This is a bipartisan job-creation ital funds from this registration re- Mr. LYNCH. Mr. Speaker, may I ask opportunity. quirement. Venture capital funds do how much time is remaining for each H.R. 1105 should pass with over- the exact same thing with the exact side. whelming, bipartisan support. Let’s get same investors that private equity The SPEAKER pro tempore. The gen- this through the Senate, and let’s cre- funds do; they just do it in an earlier tleman from Massachusetts has 163⁄4 ate more jobs in America. stage in the company’s history. The minutes remaining. The gentleman I thank the chairman for yielding only reason for that exemption is that from Texas has 121⁄2 minutes remain- time, and I hope all my colleagues will we like venture capital funds more ing. vote for H.R. 1105. than we like private equity funds. They Mr. LYNCH. Mr. Speaker, at this Mr. HENSARLING. Mr. Speaker, I sound better. They make nice things in time I yield 3 minutes to the gen- now yield 11⁄2 minutes to the gentle- garages in Palo Alto. Private equity tleman from Tennessee (Mr. COOPER). woman from Missouri (Mrs. WAGNER). sounds more ominous; therefore, they Mr. COOPER. I thank my friend, the Mrs. WAGNER. Mr. Speaker, I want have been subjected to registration. gentleman from Massachusetts. We are to thank Chairman HENSARLING of our The SPEAKER pro tempore. The seatmates on the Government Reform Financial Services Committee and also time of the gentleman has expired. Committee, and it is a pleasure to the gentleman from Virginia (Mr. Mr. LYNCH. Mr. Speaker, I yield the serve with you. It is also a pleasure to HURT), my friend, for their very hard gentleman an additional 1 minute. support this bill. work in bringing this important legis- Mr. HIMES. Mr. Speaker, we exempt- Mr. Speaker, I want to address my lation to the floor today. ed venture capital funds from the Ad- remarks particularly to the new Demo- Mr. Speaker, today I rise in support visers Act of 1940 registration. The crats and Blue Dog Democrats because of H.R. 1105, the Small Business Capital same set of investors, same types of in- not everyone in this body is an expert Access and Job Preservation Act. This vesting. Actually, a more risky asset on private equity or venture capital. legislation addresses yet another mis- class than private equity. We exempted This sounds like a complicated topic. It guided provision of the Dodd-Frank them for no other reason than that we sounds technical, but it is really all Act that will help ensure that private like venture capital better than we about jobs. equity maintains its critical role in our like private equity. That is fine. But in There is nothing we are asked about economy. statute and in regulation, we should be more back home than about creating Private equity firms provide capital consistent. jobs. There is nothing we talk more to Main Street businesses in Missouri So I think that you can argue that about here than creating jobs. Passing and all across our country and, impor- venture capitalists should be subject to this bill is a good way to do that. tantly, private equity often invests in the same kind of registration require- It is easy to get wound up in the de- companies when others are unwilling ments that private equity is or you can tails, but the bottom line is this: pri- to do so. These investments support argue, as I do, that probably both types vate equity creates jobs. These are nearly 18,000 businesses in the United of funds don’t need to be registered funds that have wealthy investors in- States that employ some 7.5 million under the Advisers Act of 1940, but you vesting in them, and they lend their workers. can’t support Dodd-Frank and say ven- money, they invest in growth compa- Unfortunately, the Dodd-Frank Act ture capitalists are exempt and private nies that create jobs. seeks to make it more difficult for pri- equity is not and be consistent in pol- My friend from New Jersey men- vate equity to maintain this important icy. tioned they have already helped create economic role. To my knowledge, no So I urge my colleagues, in the inter- 7.5 million jobs in America, some 17,000 evidence has been produced which est of balancing a very good piece of individual companies. These are the shows that private equity was the legislation, to support H.R. 1105. companies we try to recruit to our dis- cause of the 2008 financial crisis, or Mr. HENSARLING. Mr. Speaker, I tricts. These are the companies that we that it presents a systemic risk to our am now pleased to yield 2 minutes to try to grow back home so that more of financial system. the gentleman from Illinois (Mr. our good people back home can have It makes little sense, then, to impose HULTGREN). good jobs. unnecessary and costly red tape bur- b 1515 The paperwork requirement that, un- dens on private equity investors which Mr. HULTGREN. Thank you, Chair- fortunately, and I think probably inad- will only make it more difficult for man HENSARLING. vertently, was put on them by the them to invest in American businesses Mr. Speaker, what we are trying to Dodd-Frank bill needs to be removed. and create jobs. do here today is to get small business SEC registration is not appropriate for H.R. 1105 is, therefore, a necessary re- jobs growing again, and private equity these funds. It costs between three- sponse to an overreach of the Dodd- helps do that. The infusion of private quarters of a million dollars and $1 mil- Frank Act and will help support Main investment helps these small busi- lion a year for them just to do the pa- Street businesses and jobs all through- nesses create jobs so we can get the perwork. That is money taken away out our country. economy moving again. from job creation. That is money that I am pleased to support this very bi- Over the last 15 years, private capital is embalmed in red tape. partisan bill and urge my colleagues to has helped about 23,000 small busi- So this is a chance, and we do need to vote in support of H.R. 1105. nesses, employing approximately 3 mil- make sure there is a Senate companion Mr. LYNCH. Mr. Speaker, I yield my- lion people. Businesses backed by pri- to this bill once it passes the House. I self such time as I may consume. vate capital grew jobs 3.5 times faster am proud of my colleagues for being in- I do want to point out, in response to than other businesses. volved in a bipartisan job-creation ef- the gentleman from Tennessee’s re- We need to encourage this kind of fort because folks who really under- marks about this bill going on voice growth by bringing more opportunity, stand venture capital and private eq- vote in committee, I just want to re- not more regulation. Capital is better uity know this is a great way to help mind the Members and the public that spent getting people back to work and create more jobs in this country, by re- during that debate there was a need for growing our small businesses than it is moving a little bit of the red tape that further work on this bill. tied up in compliance costs. probably shouldn’t have been there to I think, in a moment of bipartisan- In Illinois, my home State, more begin with. ship, we agreed, both Democrat and Re- than $200 billion has been invested in This bill passed the Financial Serv- publican, to allow the bill to go by local companies. Private equity is ices Committee last session of Con- voice vote with the promise to work on about skin in the game, and we need to gress by voice vote. This shouldn’t some of those issues going forward. So keep these resources in the economy, even be controversial. This year the it was an agreement to try to continue not on the sidelines. vote was overwhelming, 38–18. to agree and to work on the bill. It was

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00028 Fmt 0636 Sfmt 0634 E:\CR\FM\K04DE7.044 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE December 4, 2013 CONGRESSIONAL RECORD — HOUSE H7477 not a vote in favor of any particular Recently, the Commission filed a there is already important fraud detec- provisions within this bill. case against Yorkville Advisors, where tion and fraud enforcement actions There has been a lot of talk here Yorkville allegedly inflated the values that are available to the SEC in the about the risks that don’t exist, and I of certain liquid assets. While cases of these investors being taken ad- do want to just point out some of Yorkville managed hedge funds, the vantage of. those. As a result of this bill, funds in- valuation issues are very similar to So at a time when private equity is vesting more than $300 billion a year, ones we see in private equity. helping provide over 6 million jobs in much of which is the retirement sav- Finally, the KCAP valuation case in- America, we should be doing every- ings of workers like teachers, fire- volved alleged overstatements of the thing we can to actually encourage fighters, police officers, they would no value of certain debt securities and more activity by private equity, to en- longer be required to provide basic in- CLOs held in the investment portfolio, courage more jobs in America, not bur- vestor protections. highlighting the division and AMU’s dening them with big regulations. Specifically, H.R. 1105 would deprive emphasis on pursuing valuation cases. I want to just make four quick investors of basic disclosures about an And in the Ranieri Partners case, the points. These middle-market private employee of a fund adviser who, for in- SEC also found that an investment equity firms, like we have in towns stance, violated securities law, or the manager knowingly used a sanctioned, like Columbus, Ohio, where I live, con- adviser’s businesses practices, its fees, unregistered broker-dealer to solicit tribute a lot toward job creation, but any conflict of interest on the part of capital for a pooled investment vehicle. not a lot toward systemic risk. that adviser. So all of these illegal activities And the compliance costs for these It would also eliminate a compliance would be made unavailable to private smaller firms in towns like Columbus, program and code of ethics within the equity investors under this bill. That is Ohio, will be especially high as a per- bill, within Dodd-Frank, and would what the risk is. That is not fiction. centage; and it could drive many of eliminate the need for a chief compli- Those are actual cases that the SEC them out of business. ance officer for each fund manager. has introduced enforcement actions on. Many of these firms that manage H.R. 1105, the bill under consider- So there is real risk here for investors both SBIC and non-SBIC funds already ation here, would also prevent the SEC and for the markets themselves. from conducting compliance exams of face multiple layers of regulation. Mr. Speaker, I reserve the balance of private equity fund adviser, even And the fourth point is many of these my time. though SEC Chairman Mary Jo White investment adviser rules are not really Mr. HENSARLING. Mr. Speaker, I notes that the Commission has already pertinent to private equity funds. yield myself 30 seconds to say that the uncovered issues such as unlawful pay- b 1530 gentleman from Massachusetts sets up to-play schemes, insider trading that a straw man and then knocks it down. So I stand in support of the Small we have all read about recently, con- The activities that he describes as ille- Business Capital Access and Job Pres- flicts of interest, valuation issues, and gal continue to be illegal, and I would ervation Act. I want to thank the gen- misappropriation of assets. tleman from Virginia, Representative I want to talk about some of these say that private equity funds provide HURT, for his hard work on this. I think since there has been a complete dis- extensive reporting to investors, in- it is a win for job creation, and I urge missal of any risk here. I think the cluding audited annual financial state- all my colleagues to support it. record speaks to the risk. ments. The SEC has brought several enforce- Private fund equity advisers are sub- Mr. LYNCH. Mr. Speaker, I yield my- ment actions against private equity ject to the antifraud provisions of the self 2 minutes. firms. While the defendants do not nec- Investment Advisors Act of 1940, We need not worry about small firms essarily represent all private equity whether they are registered or not, and in this. They are already exempt under firms, they do highlight the need for a fund offerings are subject to the anti- this bill. They are already exempt. So strong police officer with the authority fraud provisions of the Securities Act the concerns about small firms being to examine all private equity advisers. of 1933. covered by this, they are already ex- Capital formation relies on investor The real choice becomes, are we empt, number one. confidence in the underlying assets; going to get even greater protections Number two, the other scenario that and without registration with the SEC, for millionaire investors, or are we has been posited here is that somehow, investors will no longer have a cop on going to help struggling single moms by allowing private equity firms the the beat that can enforce the rule of trying to find a job in this economy? right to keep secret—or to refuse to law, reducing investor demand. Mr. Speaker, at this time I am happy disclose that their employees have In Knelman, for example here, there to yield 2 minutes to the gentleman been prosecuted for violating securities have been broad violations related to from Ohio (Mr. STIVERS). laws, by allowing that to remain undis- fraud, custody, compliance, and report- Mr. STIVERS. Mr. Speaker, I would closed, that somehow that is going to ing. In Knelman Asset Management like to thank the gentleman from help some single mom go to work, I Group, the SEC found that registered Texas for yielding time. don’t think that is a rational assump- private equity fund-of-funds adviser The Small Business Capital Access tion. Knelman Asset Management Group, and Job Preservation Act is an impor- Mr. Speaker, I will now enter into LLC, and Irving P. Knelman, KAMG’s tant bill that I believe will allow more the RECORD letters from the following managing director, chief executive offi- capital to go and flow to small business organizations who are all opposed to cer, and former CCO, violated the Ad- so they can create jobs. this bill: Americans for Financial Re- visers Act’s custody, antifraud, compli- You know, at a time when we have form, the Council of Institutional In- ance, reporting, and books-and-records 7.3 percent unemployment, and under- vestors, the North American Securities provisions. employment over 10 percent, we have a Administrators Association, and a In insider trading enforcement, the need for more capital to flow into our Statement of Administration Policy Gowrish insider trading case involved businesses so they can create jobs. from the Obama administration. an individual who allegedly stole con- Meanwhile, the Dodd-Frank Act cre- I reserve the balance of my time. fidential acquisition information, TPG ated burdensome new SEC registration AMERICANS FOR Capital, and sold that information to on private equity firms but, as the gen- FINANCIAL REFORM, two friends who made $500,000 in illicit tleman from Connecticut said earlier, Washington, DC. trading profits. not on venture capital firms that do DEAR REPRESENTATIVE: On behalf of Ameri- Valuation related enforcement ac- exactly the same thing. So, in fact, I cans for Financial Reform, we are writing to tions, the Oppenheimer/Brian would argue that venture capital firms express our opposition to HR 1105. Contrary Williamson matters concern an invest- have more risk than private equity. to its title, this bill is not designed to ben- efit small business. Instead, it would exempt ment adviser and portfolio manager There already are important protec- private equity fund advisers—who include who misrepresented material details tions, consumer protections, around some of the wealthiest and most significant about his valuation methodology to his private equity. You have to be a so- entities on Wall Street—from basic reporting investors. phisticated, accredited investor, and requirements designed to help regulators

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00029 Fmt 0636 Sfmt 0634 E:\CR\FM\K04DE7.045 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE H7478 CONGRESSIONAL RECORD — HOUSE December 4, 2013 monitor systemic risk in the financial sys- they are major beneficiaries of the favorable ment; The Fuel Savers Club; The Leadership tem and protect investors and the public. treatment for ‘carried interest’, as well as Conference on Civil and Human Rights; The Prior to the Dodd-Frank Act, hedge and the general tax subsidy to debt costs. It is Seminal; TICAS; U.S. Public Interest Re- private equity funds received almost no reg- totally inappropriate to also grant such search Group; UNITE HERE. ulatory monitoring, despite the fact that funds a blanket exemption from even the United Food and Commercial Workers; combined they manage some $3 trillion in as- limited and basic Dodd-Frank regulatory re- United States Student Association; sets and played a significant intermediary porting requirements. Such a blanket ex- USAction; Veris Wealth Partners; Western role in the financial crisis. Section 404 of the emption would make it more difficult for States Center; We the People Now; Wood- Dodd-Frank Act created more transparency regulators to monitor systemic risk and stock Institute; World Privacy Forum; for this previously dark portion of the mar- risks to investors, solely in order to exempt UNET; Union Plus; Unitarian Universalist kets, by requiring advisers to hedge and pri- wealthy managers of large private equity for a Just Economic Community. vate equity funds to report basic financial funds from a minor administrative task. HR LIST OF STATE AND LOCAL AFFILIATES information relevant to systemic risk to the 1105 should be rejected. Alaska PIRG; Arizona PIRG; Arizona Ad- Securities and Exchange Commission (SEC). Thank you for your consideration. For vocacy Network; Arizonans For Responsible The experience of the 2008 crisis—where risks more information please contact AFR’s Pol- Lending; Association for Neighborhood and emerged from parts of the markets not being icy Director, Marcus Stanley. Housing Development NY; Audubon Partner- monitored by regulators—clearly dem- Sincerely, ship for Economic Development LDC, New onstrates the importance of ensuring that AMERICANS FOR FINANCIAL REFORM. York NY; BAC Funding Consortium Inc., regulators can track financial risks wherever FOLLOWING ARE THE PARTNERS OF AMERICANS Miami FL; Beech Capital Venture Corpora- they originate. FOR FINANCIAL REFORM The Section 404 reporting requirements as tion, Philadelphia PA; California PIRG; Cali- implemented by the SEC are far from oner- All the organizations support the overall fornia Reinvestment Coalition; Century ous. All advisers with below $150 million in principles of AFR and are working for an ac- Housing Corporation, Culver City CA; assets under management are completely ex- countable, fair and secure financial system. CHANGER NY; Chautauqua Home Rehabili- empted, and advisers with up to $1.5 billion Not all of these organizations work on all of tation and Improvement Corporation (NY); in assets under management must report the issues covered by the coalition or have Chicago Community Loan Fund, Chicago IL. Chicago Community Ventures, Chicago IL; only limited and basic information once per signed on to every statement.; Chicago Consumer Coalition; Citizen Pota- year. Advisers to large private equity funds A New Way Forward; AFL–CIO; AFSCME; watomi CDC, Shawnee OK; Colorado PIRG; are required to respond only once per year Alliance For Justice; American Income Life Coalition on Homeless Housing in Ohio; (advisers to other large funds report quar- Insurance; American Sustainable Business Community Capital Fund, Bridgeport CT; terly). Council; Americans for Democratic Action, HR 1105 would exempt almost all private Inc; Americans United for Change; Campaign Community Capital of Maryland, Baltimore equity fund advisers from reporting require- for America’s Future; Campaign Money; Cen- MD; Community Development Financial In- ments to the Securities and Exchange Com- ter for Digital Democracy; Center for Eco- stitution of the Tohono O’odham Nation, mission. The sole requirement for the ex- nomic and Policy Research; Center for Eco- Sells AZ; Community Redevelopment Loan emption is that the fund must not have out- nomic Progress; Center for Media and De- and Investment Fund, Atlanta GA; Commu- standing borrowings that exceed twice the mocracy; Center for Responsible Lending; nity Reinvestment Association of North fund’s invested capital. But this requirement Center for Justice and Democracy. Carolina; Community Resource Group, Fay- places little if any real limitation on the ex- Center of Concern; Center for Effective etteville A; Connecticut PIRG; Consumer As- emption, since the great majority of bor- Government; Change to Win; Clean Yield sistance Council; Cooper Square Committee rowing connected with private equity activ- Asset Management; Coastal Enterprises Inc.; (NYC). ity is conducted through portfolio compa- Color of Change; Common Cause; Commu- Cooperative Fund of New England, Wil- nies, not at the fund level. (That is, compa- nications Workers of America; Community mington NC; Corporacion de Desarrollo nies owned by private equity funds borrow Development Transportation Lending Serv- Economico de Ceiba, Ceiba PR; Delta Foun- large amounts as the direction of the fund, ices; Consumer Action; Consumer Associa- dation, Inc., Greenville MS; Economic Op- but the fund itself rarely borrows a great tion Council; Consumers for Auto Safety and portunity Fund (EOF), Philadelphia PA; Em- deal). Reliability; Consumer Federation of Amer- pire Justice Center NY; Empowering and It is particularly distressing that Congress ica; Consumer Watchdog; Consumers Union. Strengthening Ohio’s People (ESOP), Cleve- would consider granting this exemption at a Corporation for Enterprise Development; land OH; Enterprises, Inc., Berea KY; Fair time when concern is growing among regu- CREDO Mobile; CTW Investment Group; Housing Contact Service OH; Federation of lators and market observers about risks cre- Demos; Economic Policy Institute; Essential Appalachian Housing; Fitness and Praise ated by a possible bubble in the leveraged Action; Greenlining Institute; Good Business Youth Development, Inc., Baton Rouge LA; loan market, which is dominated by loans International; HNMA Funding Company; Florida Consumer Action Network; Florida sponsored by private equity firms. Several Home Actions; Housing Counseling Services; PIRG; Funding Partners for Housing Solu- warnings have been issued recently by regu- Home Defender’s League; Information Press; tions, Ft. Collins CO; Georgia PIRG. lators concerning the risks being created in Institute for Global Communications; Insti- Grow Iowa Foundation, Greenfield IA; these markets. As Moody’s investor’s service tute for Policy Studies: Global Economy Homewise, Inc., Santa Fe NM; Idaho Nevada has stated: Project. CDFI, Pocatello ID; Idaho Chapter, National ‘‘Private equity firms have been exploiting International Brotherhood of Teamsters; Association of Social Workers; Illinois PIRG; investors’’ willingness to lend to speculative- Institute of Women’s Policy Research; Krull Impact Capital, Seattle WA; Indiana PIRG; grade companies . . . Higher yields are draw- & Company; Laborers’ International Union Iowa PIRG; Iowa Citizens for Community ing investors to riskier structures at a time of North America; Lawyers’ Committee for Improvement; JobStart Chautauqua, Inc., when interest rates remain at historical Civil Rights Under Law; Main Street Alli- Mayville NY; La Casa Federal Credit Union, lows.’’ ance; Move On; NAACP; NASCAT; National Newark NJ; Low Income Investment Fund, Since leveraged loans are also being sold to Association of Consumer Advocates; Na- San Francisco CA; Long Island Housing small retail investors, a bubble could impact tional Association of Neighborhoods; Na- Services NY; MaineStream Finance, Bangor both the stability of the broader financial tional Community Reinvestment Coalition; ME. system and the retirement savings of retail National Consumer Law Center (on behalf of Maryland PIRG; Massachusetts Con- investors. The situation in the leveraged its low-income clients); National Consumers sumers’ Coalition; MASSPIRG; Massachu- loan market clearly demonstrates the con- League; National Council of La Raza. setts Fair Housing Center; Michigan PIRG; nection between private equity activity and National Council of Women’s Organiza- Midland Community Development Corpora- important risks to financial stability and to tions; National Fair Housing Alliance; Na- tion, Midland TX; Midwest Minnesota Com- investors. tional Federation of Community Develop- munity Development Corporation, Detroit An additional source of concern is the dan- ment Credit Unions; National Housing Re- Lakes MN; Mile High Community Loan ger that the exemption granted in HR 1105 source Center; National Housing Trust; Na- Fund, Denver CO; Missouri PIRG; Mortgage could too easily be exploited to reach beyond tional Housing Trust Community Develop- Recovery Service Center of L.A.; Montana private equity firms alone. The distinction ment Fund; National NeighborWorks Asso- Community Development Corporation, Mis- between a hedge fund and a private equity ciation; National Nurses United; National soula MT; Montana PIRG; Neighborhood fund is not a formal legal distinction, it is People’s Action; National Urban League; Economic Development Advocacy Project; simply a differentiation between general in- Next Step; OpenTheGovernment.org; Oppor- New Hampshire PIRG. vestment strategies. While HR 1105 grants tunity Finance Network; Partners for the New Jersey Community Capital, Trenton the SEC the ability to define more precisely Common Good; PICO National Network. NJ; New Jersey Citizen Action; New Jersey what a private equity fund is, if that defini- Progress Now Action; Progressive States PIRG; New Mexico PIRG; New York PIRG; tion is at all overbroad then it could be Network; Poverty and Race Research Action New York City Aids Housing Network; New taken advantage of by a wide range of hedge Council; Public Citizen; Sargent Shriver Yorkers for Responsible Lending; NOAH funds in order to avoid oversight. Center on Poverty Law; SEIU; State Voices; Community Development Fund, Inc., Boston Private equity funds already receive sig- Taxpayer’s for Common Sense; The Associa- MA; Nonprofit Finance Fund, New York NY; nificant subsidies through the tax system, as tion for Housing and Neighborhood Develop- Nonprofits Assistance Fund, Minneapolis M;

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00030 Fmt 0636 Sfmt 0634 E:\CR\FM\A04DE7.030 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE December 4, 2013 CONGRESSIONAL RECORD — HOUSE H7479 North Carolina PIRG; Northside Community unchecked—exempt from regulation, compli- tion Act (Dodd-Frank Act), investment ad- Development Fund, Pittsburgh PA; Ohio ance examinations, disclosure requirements, visers to private funds with fewer than 15 cli- Capital Corporation for Housing, Columbus and unencumbered by leverage limits. ents were not required to register with the OH; Ohio PIRG. By requiring private equity fund advisors U.S. Securities and Exchange Commission OligarchyUSA; Oregon State PIRG; Our to register with the SEC and abide by disclo- (SEC) and precious little was known about Oregon; PennPIRG; Piedmont Housing Alli- sure requirements, the Dodd-Frank Act adds the capital market activities of these funds ance, Charlottesville VA; Michigan PIRG; a meaningful layer of protection for inves- and other shadow banking actors. Rocky Mountain Peace and Justice Center, tors. Registration ensures that investors Title IV of the Dodd-Frank Act closed this CO; Rhode Island PIRG; Rural Community have access to basic information about the regulatory gap by requiring nearly all advis- Assistance Corporation, West Sacramento adviser’s compensation, disciplinary history, ers to private funds with more than $150 mil- CA; Rural Organizing Project OR; San Fran- and investment strategies; it safeguards lion in regulatory assets under management cisco Municipal Transportation Authority; against the possibility for an advisor’s con- (RAUM) within the United States to register Seattle Economic Development Fund; Com- flict of interest; it ensures that advisers es- with the SEC. Advisers to private funds with munity Capital Development; TexPIRG. tablish formal compliance programs and act less than $150 million in RAUM were exempt- The Fair Housing Council of Central New in the best interests of their clients; and it ed from SEC registration but required to re- York; The Loan Fund, Albuquerque NM; allows the SEC to collect data and examine port basic data and risk metrics on a con- Third Reconstruction Institute NC; Vermont advisers for compliance weaknesses and po- fidential basis. The SEC finalized the rules PIRG; Village Capital Corporation, Cleve- tential fraud. By eliminating the registra- to implement the registration and reporting land OH; Virginia Citizens Consumer Coun- tion and reporting requirements on private requirements in November 2011 and, for the cil; Virginia Poverty Law Center; War on fund advisors, H.R. 1105 would deny investors two years since, advisers to private funds Poverty—Florida; WashPIRG; Westchester in private equity funds these important pro- have been subject to the regulatory over- Residential Opportunities Inc.; Wigamig tections, and it would restrict the SEC from sight of the SEC. Owners Loan Fund, Inc., Lac du Flambeau garnering regulatory information critical for Private fund advisers wishing to return to WI; WISPIRG. assessing systemic risk in a comprehensive the shadows of the unregulated financial SMALL BUSINESSES manner. services industry have argued that the new registration and reporting requirements are Blu; Bowden-Gill Environmental; Commu- Furthermore, H.R. 1105 does not define burdensome and provide little benefit in nity MedPAC; Diversified Environmental what constitutes a ‘‘private equity fund,’’ monitoring systemic risk within our finan- Planning; Hayden & Craig, PLLC; Mid City but instead requires the SEC to develop spe- cial markets. While any regulation entails Animal Hospital, Pheonix AZ; The Holo- cific parameters for an otherwise ambiguous some measure of cost, the costs in this con- graphic Repatteming Institute at Austin; asset class within a mere six months of pas- text are specifically scaled to the size of the UNETO. sage. We believe it may be imprudent to ex- empt a broad asset class without first under- adviser-limited, basic disclosure on the Form standing the boundaries of such an exemp- ADV for exempt reporting advisers and COUNCIL OF tion, especially considering the notion wide- scaled-down disclosure on the Form PF for INSTITUTIONAL INVESTORS, certain registered private equity fund advis- Washington, DC, December 3, 2013. ly held by many industry experts that ‘‘there is no fundamental legal distinction between ers. Only private fund advisers managing at Hon. JOHN BOEHNER, least a billion dollars in specific asset class Speaker of the House, House of Representatives, private equity funds, hedge funds and ven- funds are required to complete the more de- Washington, DC. ture capital funds . . . there is no telling how broad or narrow [the SEC’s] definition tailed sections of Form PF. For those large Hon. NANCY PELOSI, firms handling billions of dollars, which is House Minority Leader, House of Representa- will be.’’ the case for approximately a third of all pri- tives, Washington, DC. Finally, we note that the Dodd-Frank Act vate equity funds, cost arguments become DEAR MR. SPEAKER AND MINORITY LEADER also creates a special exemption from SEC specious at best. PELOSI: I am writing on behalf of the Council registration for venture capital funds under In terms of systemic risk, private equity of Institutional Investors (Council), a non- $150 million. H.R. 1105 attempts to create a fund advisers reported managing approxi- profit association of corporate, union, and similar exemption for private equity funds, mately $1.6 trillion as of May 2013. While in- public pension funds, foundations, and en- yet the Bill fails to include size limits akin dividual fund outcomes are not expected to dowments, with combined assets that exceed to those in place for venture capital funds. It cause catastrophic loss, most would agree $3 trillion. Most member funds are major is similarly imprudent to exempt large pri- the market as a whole is sizeable enough to shareowner with a duty to protect the retire- vate equity funds from the protections typi- warrant some oversight. Those in doubt ment assets of millions of American workers. cally afforded to investors via SEC registra- should consider a number of recent SEC en- Significantly affected by the financial crisis, tion. forcement actions that illustrate the kinds Council member funds have a strong interest Thank you for considering our members’ of misconduct that were occurring in the un- in meaningful regulatory reform. views in connection with this critical finan- regulated private equity space prior to the The purpose of this letter is to share with cial regulatory issue. We look forward to SEC oversight before taking any steps to you the Council’s views on The Small Busi- continuing to work with you to restore con- cloak that market in darkness once more. ness Capital Access and Job Preservation fidence in our economy by improving the Investor confidence in our markets is Act (H.R. 1105) that the House of Representa- transparency and oversight of the U.S. finan- strengthened through prudent regulations tives is scheduled to consider in open session cial system. that bring transparency to the marketplace tomorrow, December 4, 2013. Our views are in If you have any questions, or would like and promote accountability. Any concerns part informed by the findings of the Inves- additional information regarding our views regarding the structure or costs associated tors’ Working Group (IWG). The IWG was an please feel free to contact me. Additionally, with the SEC’s regulation of advisers to pri- independent nonpartisan commission of in- General Counsel Jeff Mahoney is available. vate equity firms is best addressed to the dustry experts sponsored in 2009 by the CFA Sincerely, SEC in rulemaking that can adjust the re- Institute and the Council to provide an in- JORDAN LOFARO. porting, registration, and examination re- vestor perspective on ways to improve U.S. NORTH AMERICAN SECURITIES quirements accordingly. financial system regulation. As you may be For the reasons advanced previously and aware, many of the IWG’s findings and rec- ADMINISTRATORS ASSOCIATION, INC., Washington, DC, December 4, 2013. set forth above, we respectfully urge you to ommendations were adopted by the 111th oppose H.R. 1105 in its present form. Should Congress during the development of the Re The Small Business Capital Access and Job Preservation Act (H.R. 1105). you have any questions, please feel free to Dodd-Frank Wall Street Reform and Con- contact me or Michael Canning, NASAA’s Hon. JOHN BOEHNER, sumer Protection Act (Dodd-Frank Act). Director of Policy. Speaker, House of Representatives, The Capitol, The Council opposes the Small Business Sincerely, Capital Access and Job Preservation Act. We Washington, DC. RUSS IUCULANO, Hon. NANCY PELOSI, strongly believe that all private equity advi- NASAA Executive Director. sors available to U.S. investors should be Minority Leader, House of Representatives, The subject to oversight and registration with Capitol, Washington, DC. STATEMENT OF ADMINISTRATION POLICY the Securities and Exchange Commission DEAR SPEAKER BOEHNER AND LEADER H.R. 1105—SMALL BUSINESS CAPITAL ACCESS AND (SEC), and we concur with SEC Chairman PELOSI: On behalf of the North American Se- White’s letter to the House Financial Serv- curities Administrators Association JOB PRESERVATION ACT ices Committee leadership in that ‘‘our mar- (NASAA), I’m writing to reiterate concerns (Rep. Hurt, R–VA, and 12 cosponsors, Dec. 3, kets would not be well-served’’ by such a de- the association previously expressed regard- 2013) crease in the SEC’s authority. ing H.R. 1105, the ‘‘Small Business Capital The Administration strongly opposes pas- Private equity funds play a significant role Access and Job Preservation Act,’’ which the sage of H.R. 1105, which would amend the In- in the economy as a source of capital, as an House is scheduled to consider later this vestment Advisers Act of 1940 to exempt investment vehicle, and as a growing job pro- week. nearly all private equity fund advisers from vider. However, prior to the Dodd-Frank Act Prior to enactment of the Dodd-Frank registration. The legislation effectively pro- many private equity fund advisors operated Wall Street Reform and Consumer Protec- vides a blanket registration and reporting

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00031 Fmt 0636 Sfmt 0634 E:\CR\FM\A04DE7.031 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE H7480 CONGRESSIONAL RECORD — HOUSE December 4, 2013 exemption for private equity funds, under- that cost this country $16 trillion, and just that, protect the investors but mining advances in investor protection and I would venture to say that we should simplify the forms and maintain the regulatory oversight implemented by the Se- be more focused on protecting inves- cost. curities and Exchange Commission (SEC) tors, not removing investor protec- If their goal is to save money for the under Title IV of the Dodd-Frank Wall small firms, then let’s do that, but let’s Street Reform and Consumer Protection Act tions. And I would say that all inves- (Wall Street Reform). tors deserve to be protected—sophisti- not erase very important investor pro- The Administration is committed to build- cated investors, retail investors, pen- tections in the process. ing a safer, more stable financial system. sion investors. All investors should be Mr. HENSARLING. Mr. Speaker, I H.R. 1105 represents a step backwards from protected, which is why the Obama ad- yield myself 1 minute. the progress made to date, given that private ministration has come out so strongly Again, I want to address the gen- equity fund advisers have been filing reports in opposition to the underlying bill and tleman from Massachusetts who, again, with the SEC for over a year. The bill’s pas- why the Securities and Exchange Com- I believe, sets up a straw man only to sage would deny investors access to impor- knock it down. mission, whose mission is to protect in- tant information intended to increase trans- I would urge all Members to actually parency and accountability and to minimize vestors, is so adamantly, strongly op- read the bill. I know that many of my conflicts of interest. Moreover, H.R. 1105 posed to this bill. Democratic colleagues now have buy- would exempt private equity funds from the Now, I am sympathetic to the point er’s remorse from not reading the 2,000- disclosure requirements that the Congress that my colleagues have raised on the page ObamaCare bill, but, Mr. Speaker, laid out in Wall Street Reform to allow regu- other side of the aisle and on this side lators to assess potential systemic risks. this is a two-page bill, 36 lines. of the aisle that some of the reporting And I would say to my friend, the Private equity funds are already subject to and registration requirements are on- less stringent reporting requirements com- gentleman from Massachusetts, that pared to other types of private funds and to erous. So let’s address that. Let’s di- on page 2, that the SEC can ‘‘require an annual, rather than quarterly, filing re- rect the SEC to come forward with investment advisers described in para- quirement. In addition, private fund advisers simplified forms, to do it quickly, graph (1) to maintain such records and with under $150 million in assets under man- within 6 months. Let’s save money. provide to the Commission such annual agement are exempted from registration and Let’s simplify the process. But let’s not or other reports as the Commission subject only to recordkeeping and reporting remove important investors’ protec- taking into account fund size, govern- requirements. tions, such as the fiduciary duty to act ance, investment strategy, risk, and If the President were presented with H.R. in the client’s best interest. What is 1105, his senior advisors would recommend other factors, as the Commission deter- that he veto the bill. wrong with that? I think that is a mines necessary.’’ moral responsibility, such as the obli- So to make the assertion that these Mr. HENSARLING. Mr. Speaker, I gation to disclose conflicts of interest. records of foul play could never exist is am very pleased now to yield 1 minute Now, that is not onerous. How dif- simply not true. to the gentleman from Tennessee (Mr. ficult is it to say, yes or no, I have not The SPEAKER pro tempore. The FINCHER). had any conflict of interest? Or if you time of the gentleman has expired. Mr. FINCHER. I thank the chairman are advising your client to invest in Mr. HENSARLING. I yield myself an for yielding. your business, then disclose your con- additional 30 seconds. Mr. Speaker, strong job creation is flict of interest. What is so onerous I would say to my friend, the gentle- the foundation for a healthy economy, about that? That is not onerous. That lady from New York who made the as- while overregulation kills jobs. Private is easy. sertion that the SEC is opposed to this equity provides much-needed capital And what is wrong with the obliga- bill, that the SEC has not opposed this and better investment returns to pen- tion to disclose fees? Everyone talks bill. One member, Mary Jo White, has sion plans, university endowments, about transparency. That is why we are issued an opinion that she does not charitable foundations, and other in- opposing this bill. We want it to be support the legislation, but the SEC vestors than if they simply deposited transparent, and we want to protect in- has taken no official position. their money in a bank. The various vestors. With respect to a threatened veto, I forms of capital provided by private eq- The SPEAKER pro tempore. The don’t recall that when my Democratic uity in our economy result in more re- time of the gentlewoman has expired. colleagues had the majority here that sources for companies to operate their Mr. LYNCH. I yield the gentlewoman they refused to pass bills simply be- firms, expand their facilities, and cre- an additional 1 minute. cause President Bush threatened to ate more jobs. Mrs. CAROLYN B. MALONEY of New veto. But I must admit, our committee H.R. 1105, sponsored by my good York. I feel that there are many ways has produced, I believe it is, at least 10 friend from Virginia (Mr. HURT), would that we could address this that would or 11 bipartisan bills which all received help expand private equity by relieving come forward with a strong piece of veto threats from a President who says certain advisers’ private equity funds legislation that President Obama could he wants to work on a bipartisan basis. from the burdensome and unnecessary sign into law. Instead, he has got a lot This is most regrettable. process of registering with the SEC. Mr. LYNCH. I yield myself 2 minutes. of ink in his veto pen, and he has said Mr. Speaker, I would now like to This bill would simply allow advisers right out front that he would veto this enter into the RECORD statements from and private equity firms to do what bill. the following organizations which all they do best: invest in promising com- Now, if they want to simplify disclo- oppose H.R. 1105: the AFL–CIO, Cali- panies in order to help them expand sure and registration requirements, fornia Public Employees’ Retirement and create more jobs. then let’s do that. Let’s require the System, and North American Securi- Let’s support job growth in this SEC to come forward with it. Let’s ties Administrators Association. country by voting in favor of H.R. 1105. simplify the process and save the cost And regarding reading the bill, I cer- Mr. LYNCH. Mr. Speaker, could I ask for small businesses. We want to save tainly did read the bill, and my point is how much time remains on each side. that cost. that the bill does not require public The SPEAKER pro tempore. The gen- Honest private equity firms have disclosure of those matters, as the gen- 3 tleman from Massachusetts has 7 ⁄4 grown jobs in this country, and it is tleman points out. It just goes to the minutes remaining, and the gentleman important to grow jobs. It is important Commission. So it doesn’t go to the 1 from Texas has 7 ⁄2 minutes remaining. to support them in every single way. public. The public doesn’t get the infor- Mr. LYNCH. I yield 2 minutes to the But removing all investor protections, mation. It stays within the custody of gentlelady from New York (Mrs. MALO- according to the Obama administra- the Commission. NEY). tion, would literally assault the safety Mr. HENSARLING. Will the gen- Mrs. CAROLYN B. MALONEY of New and soundness and the strong financial tleman yield? York. I thank the gentleman for yield- security that we are trying to build in Mr. LYNCH. I yield to the gentleman ing. this country. from Texas. Mr. Speaker, I would like to remind What is wrong with protecting inves- Mr. HENSARLING. By definition, it my colleagues that we are still recov- tors? That is what we are saying. I is private equity. It is not a public ering from a massive financial crisis have an amendment which would do fund.

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00032 Fmt 0636 Sfmt 0634 E:\CR\FM\A04DE7.033 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE December 4, 2013 CONGRESSIONAL RECORD — HOUSE H7481 Mr. LYNCH. Reclaiming my time, boards accountable for their stewardship of 953(b) as currently enacted is unartful and that is right. But those are public in- those funds. This is why shareowner rights its critics properly identify a number of po- vestors. They are the ones that need are vital to the functioning of markets, in- tential ambiguities. However, we strongly the information. cluding the ability of investors to propose support the spirit of the disclosure and be- candidates to boards of directors (known in lieve that the SEC has the regulatory flexi- Mr. Speaker, I yield the balance of short as ‘proxy access’) and to remove direc- bility to provide companies with guidance on my time to the gentlelady from Cali- tors who fail. how to comply with this section. fornia (Ms. WATERS), our ranking mem- Third, regulation needs to ensure trans- However, if Congress believes the SEC is ber and a real champion of America’s parency, so that markets can play their vital unable to implement section 953(b) as cur- working families. role in pricing risk. Timely, relevant and re- rently written, we would encourage Congress liable information is the currency of risk to amend the section and retain the require- Legislative Proposals to Relieve the Red management. Those agencies which have a ment. HR 1135 seeks only to repeal this re- Tape Burden on Investors and Job Creators role in channeling that information need to quirement and for the reasons discussed UNITED STATES HOUSE OF REPRESENTATIVES be fit for that purpose. (Credit ratings agen- above, we would strongly discourage the COMMITTEE ON FINANCIAL SERVICES SUB- cies were found wanting in this regard.) committee from advancing this bill. COMMITTEE ON CAPITAL MARKETS AND GOV- Fourth, regulation needs to address con- H.R. 1105 ERNMENT SPONSORED ENTERPRISES flicts of interest and perverse incentives (Statement of Anne Simpson Senior Port- which can undermine the market’s ability to Prior to the enactment of Dodd-Frank, we folio Manager, Investments Director of allocate capital effectively. (Short term, testified that the fundamental risk posed by Global Governance California Public Em- risk-free compensation for executives has private pools of capital is that they can ployees’ Retirement System, May 23, 2013) fueled poor decision taking, as one example choose to operate outside the regulatory structure of the United States. CalPERS Chairman Garrett, Ranking Member Malo- of this). Chief Investment Officer Joe Dear warned ney, and Members of the Committee, on be- Fifth, regulation needs to ensure it does the Senate Securities Subcommittee of the half of the California Public Employees’ Re- not prevent institutional investors from fi- overall risks to the financial system ‘‘when tirement System (CalPERS), we thank you nancing legitimate strategies, and taking these entities operate in the shadows of the for convening this hearing. CalPERS is advantage of new opportunities. Regulation financial system’’ and when ‘‘regulatory au- pleased to submit testimony for the record is not there to prevent risk taking, it is thorities lack basic information about expo- to reassert our strong support for efficient there to ensure that risks are disclosed, and sures, leverage ratios, counterparty risks and effective financial regulation, as enacted can be managed. and other information.’’ Less than three by the Dodd-Frank Wall Street Reform and Finally, regulation needs to be propor- years after the enactment of Dodd-Frank, Consumer Protection Act (‘‘Dodd-Frank’’). tionate. For CalPERS, we balance the addi- these risks have been mitigated by the re- This statement includes a brief overview of tional costs that are required with the po- quirement for private fund advisors to reg- CalPERS, including how we benefit from ef- tential for financial ruin. To those who ques- ister and be subject to reasonable regulation. fective financial markets regulation and the tion whether we can afford to invest in Although HR 1105 would only exempt funds role that shareowner rights and corporate smart regulation, we reply, how can we af- with low leverage ratios, it would constitute governance play in building investor con- ford not to? The financial crisis dealt a crip- a large step away from the comprehensive fidence. It also includes a discussion of our pling blow to many investors, and the under- regulation of market participants that Dodd- views on HR 1135, HR 1105, and HR 1564. lying sub-prime mortgage scandal triggered widespread loss for ordinary people through- Frank sought to impose. Dodd-Frank has al- SOME BACKGROUND ON CALPERS out the country. The devastating impact on ready provided small private fund advisors CalPERS is the largest public pension fund the real economy is still with us. The costs an exemption to registration and regulation, in the United States with approximately $266 of regulation need to be weighed against this and we believe it is therefore unnecessary for billion in global assets and equity holdings loss. large, albeit unleveraged, fund advisors. in over 9,000 companies. CalPERS pays out We see smart regulation as an investment H.R. 1564 over $14 billion annually in retirement bene- in safety and soundness of financial markets fits to more than 1.6 million public employ- The issues surrounding auditor independ- which generate the vast bulk of the returns ence and audit firm rotation are of great im- ees, retirees, their families and beneficiaries. to our fund. Smart regulation is an invest- This is not only an important source of daily portance to CalPERS. ment in the effective functioning of capital Clearly, auditors play a vital role in the in- income for those individuals; it also provides markets, which is critical not just to our a positive economic multiplier to the local tegrity of financial reporting and the effi- fund, but to the recovery of the wider econ- ciency of the capital markets. As a long- economy. We fully understand the virtuous omy. circle between savings, investment and eco- term investor, and a strong advocate of re- nomic growth. That is at the heart of the H.R. 1135 form we believe independence of an auditor CalPERS agenda. It is widely acknowledged that the 2008 fi- is critical to investor confidence and the sta- As a significant institutional investor with nancial crisis represented a massive failure bility and effective functioning of the capital a long-term investment time horizon, of oversight. Too many CEOs pursued exces- markets. It is the important role of auditors CalPERS fundamentally relies upon the in- sively risky strategies or investments that that brings standardization and discipline to tegrity and efficiency of the capital markets. bankrupted their companies or weakened corporate accounting which in turn enhances For every dollar that we pay in benefits to them financially for years to come. Boards of investor confidence. our members, 64 cents are generated by in- directors were often complacent, failing to CalPERS Global Principles of Accountable vestment returns. The financial crisis hit us challenge or rein in reckless senior execu- Corporate Governance (Principles) highlight hard with $70 billion wiped from CalPERS as- tives who threw caution to the wind. And too the importance of auditor independence re- sets. While we are pleased that we have been many boards approved executive compensa- quiring audit committees to assess the inde- able to recover these losses over the last sev- tion plans that rewarded excessive risk tak- pendence of their external auditor on an an- eral years, we simply cannot afford another ing. nual basis. Also, as part of the engagement drawdown on our fund. Accountability is critical to motivating we recommend that audit committees re- We rely upon the safety and soundness of people to do a better job in any organization quire written disclosure from the external capital markets, and more broadly, sustain- or activity. An effective board of directors auditor of: able economic growth, to provide the long can help every business understand and con- all relationships between the registered term returns that allow us to meet our li- trol its risks, thereby encouraging safety public accounting firm or any affiliates of abilities. However, there is still much to be and stability in our financial system and re- the firm and the potential audit clients or done to bring about smart regulation. ducing the pressure on regulators, who, even persons in a financial reporting oversight In our view, smart regulation should be if adequately funded, will be unlikely to find role that may have a bearing on independ- structured as follows: and correct every problem. Unfortunately, ence; First, regulation needs to be complete and long-standing inadequacies in investor pro- the potential effects of these relationships coordinated. Innovation in financial markets tection have limited shareowners’ ability to on the independence in both appearance and has led to the development of new financial hold boards accountable. fact of the registered public accounting firm; instruments and pools. Regulation needs to Fortunately, Dodd-Frank contains a num- and keep pace with financial innovation and the ber of reforms that when fully implemented the substance of the registered accounting attendant risks in order to be relevant. (De- and effectively enforced will provide long- firm’s discussion with the audit committee. rivatives are an example of that innovation, term investors like CalPERS with better CalPERS expressly supported mandatory but it is innovation that has been outside the tools, including better information, to hold rotation in the wake of the scandals which reach of regulation historically.) directors more accountable going forward. led to the Sarbanes-Oxley Act of 2002. Second, regulation needs to allow market These included a provision that requires ad- CalPERS communicated its view to the Eu- players to exercise their proper role and re- ditional disclosure involving the ratio be- ropean Parliament Committee on Legal Af- sponsibilities. Capitalism was designed to tween the CEO’s total compensation and the fairs, that ‘‘mandatory auditor rotation is an allow the providers of finance a market role median total compensation for all the other effective means of increasing auditor inde- in allocating investment, and then holding company employees. To be clear, section pendence’’. CalPERS Principles state that

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The inclusion of fund tion of the auditor to ensure a fresh perspec- urge you to support their funding requests. leverage limits in the bill attenuate tive and review of the financial reporting Thank you in advance for considering the NASAA’s concerns with respect to systemic framework.’’ views of a long-term investor like CalPERS risk, and we understand that private equity We believe that audit committees should when you decide on how to proceed with funds were not a catalyst of the financial cri- endorse expanding the pool of auditors for these important issues. sis of 2008; however, this information is nev- the annual audit to help improve market ertheless critical to regulators and investors competition and minimize the concentration NORTH AMERICAN SECURITIES alike. Specifically, regulators use the infor- of audit firms from which to engage for audit ADMINISTRATORS ASSOCIATION, INC., mation to measure risk and assess compli- services. We support audit committees hav- Washington, DC, June 18, 2013. ance; investors use the information to guide ing the ability to determine audit independ- Re H.R. 1105, the Small Business Capital and choices in picking advisers and under- ence by requiring auditors to provide 3 prior Job Preservation Act. standing their operations. years of activities, relationships and services Hon. JEB HENSARLING, Second, even if the language in H. R. 1105 (including tax services) with the company, Chairman, House Committee on Financial Serv- were clarified, the legislation would remain affiliate of the company and persons in fi- ices, Rayburn House Office Building, Wash- significantly ambiguous as to the type and nancial reporting oversight roles that may ington DC. size of adviser to which it would apply. This impact the independence of the audit firm. Hon. MAXINE WATERS, is because the legislation does not define Additionally, we would note that the Pub- Ranking Member, House Committee on Finan- ‘‘private equity fund’’ but rather delegates lic Company Accounting Oversight Board’s cial Services, Rayburn House Office Build- this task to the SEC, which would be given (PCAOB) Investor Advisory Group (IAG), of ing, Washington DC. six months to promulgate rules necessary to which I am a member, urged the agency to DEAR CHAIRMAN HENSARLING AND RANKING establish the record keeping and reporting consider firm rotation in the context of les- MEMBER WATERS: On behalf of the North obligations of these advisers. Though the bill sons learned from the financial crisis. The American Securities Administrators Asso- appears to treat advisers to ‘‘private equity PCAOB IAG indicated that the purpose of an ciation (NASAA), I’m writing to express con- funds’’ similar to advisers to venture capital audit is to provide confidence to investors cerns with H.R. 1105, the Small Business Cap- funds for the purposes of exemption, it fails that an independent set of eyes have looked ital and Job Preservation Act. NASAA ap- to include the limits currently applicable to at the numbers reported by management and preciates and shares the desire of the Com- the exemption for advisers to venture capital objectively without bias determined they mittee to facilitate job creation. Investor funds. Without more specificity and a clear can indeed be relied upon. If investors’ con- confidence in our markets is strengthened definition of what constitutes a ‘‘private eq- fidence in this process is diminished or lost, through efforts that are designed to bring uity fund’’, it is unknown what types of enti- the benefits of the audit and its costs may be transparency to the marketplace and pro- ties are covered by the exemption. This is questioned. mote accountability. Unfortunately, H.R. problematic because without statutory clari- Over the last two years, the PCAOB has 1105 could frustrate this goal by establishing fication of the universe of ‘‘private equity,’’ thoughtfully reviewed auditor independence an exemption from the registration require- any assessment of risk to financial stability and mandatory rotation, holding a series of ments in federal law designed to promote posed by such capital investment would be roundtables on the issues. We note the issue transparency and accountability. Moreover, invalid. Moreover, it seems unwise to estab- of mandatory rotation has been addressed by while NASAA considers the inclusion of fund lish an exemption before defining what is the European Commission (EC). The EC has leverage limits in the bill to be an improve- covered by the exemption; as AFL–CIO Pol- voted to draft law to open up the European ment, we believe Congress would be remiss icy Director Damon Silver testified to the Union audit services market and improve to ignore the question of the size of funds, in Committee on May 23rd: audit quality and transparency including terms of assets, in making determinations ‘‘There is no fundamental legal distinction mandatory rotation of the auditor whereby about which private equity firms should be between private equity funds, hedge funds an auditor may inspect a company’s books subject to the registration exemption. and venture capital funds. These are terms for a maximum of 14 years. We believe that The Dodd-Frank Act provided exemptions that describe broad investment strategies, it is essential and beneficial for the PCAOB for advisers who solely advise ‘‘venture cap- not legal structures. So the bill directs the to collaborate with non-U.S. regulators and ital funds’’ as defined by the SEC and for ad- SEC to define what a private equity fund is. standard-setters on this matter. visers who solely advise private funds and And there is no telling how broad or narrow, Ultimately, we believe that audit commit- have assets under management in the United or gameable, such a definition will be.’’ tees are in the best position to select the States of less than $150 million; however, in Moreover, the enactment of the JOBS Act auditor. However, we are strong supporters each case such exempted advisers remain and the removal of the long-standing prohi- of the PCAOB and have faith in their subject to SEC recordkeeping and reporting bition on general solicitation and adver- thoughtful approach to the regulation of the requirements. H.R. 1105 would insert an addi- tising in Regulation D, Rule 506 offerings re- audit profession. If they ultimately conclude tional exemption for private equity fund ad- inforces NASAA’s belief that, as a general that mandatory rotation is appropriate, we visers from registration or reporting require- matter, the risk to investors and regulators will support this judgment consistent with ments. Unlike the exemptions contained in that would accompany the exemptions con- our support for the position taken by the EC. Dodd-Frank, H.R. 1105 does not limit the ex- templated by H.R. 1105 far exceed the bill’s Accordingly, because HR 1564 would elimi- emption to advisers solely to private funds potential benefits as a tool for capital forma- nate the PCAOB’s discretion in this area, we nor does it contain a cap that would limit tion and job creation. cannot support the measure. the exemption to smaller advisers. Thank you for your consideration of these REGULATORY AGENCY FUNDING Furthermore, at least two fundamental concerns. We look forward to working with Finally, although the hearing has not fo- components of the proposed legislation are you as these bills move through the legisla- cused directly on the funding for the SEC, we so vague that they undermine any benefits tive process. If you have questions, or if would be remiss if we didn’t highlight the the bill purports to confer on small business. NASAA can be of assistance, please contact vital role of the SEC and PCAOB in fostering First, the bill is unclear as to what, if any, me or Michael Canning, NASAA’s Director of capital formation and protecting investors in reporting requirements are required for pri- Policy. financial markets. CalPERS has long recog- vate equity fund advisers. Section 2 provides Sincerely, nized that for financial regulators to achieve that an adviser to a ‘‘private equity fund,’’ A. HEATH ABSHURE, their stated objectives, they must be well- regardless of assets under management, NASAA President and managed, well-staffed and that means they would be exempt from both registration and Arkansas Securities Commissioner. must be well-funded. Rules without enforce- reporting requirements. This proposed ex- ment are little better than useless. In 2001, emption from all registration and reporting AMERICAN FEDERATION OF LABOR CalPERS testified in support of legislation requirements would seem to run contrary to AND CONGRESS OF INDUSTRIAL OR- that would put SEC staff salaries on par with the basic and obvious interest of investors in GANIZATIONS, other financial regulators and was pleased private equity funds, since registration Washington, DC, June 19, 2013. that pay-parity provisions were enacted into under the Investment Advisers Act serves to LEGISLATIVE ALERT law that year. More recently, we called for protect investors from conflicts of interest Hon. JEB HENSARLING, lawmakers to provide the SEC and U.S. Com- and other risks associated with entrusting Chairman, House Financial Services Committee, modity Futures Trading Commission (CFTC) their assets to advisers. The exemption Rayburn House Office Building, Wash- with stable, independent funding. Although would to have the unintended consequence of ington, DC. no such mechanisms were included in Dodd- depriving the SEC of important regulatory Hon. MAXINE WATERS, Frank, it remains imperative that the SEC information critical for assessing systemic Ranking Minority Member, House Financial and CFTC be given sufficient resources to ef- risk and protecting investors. The registra- Services Committee, Rayburn House Office fectively police the U.S. capital and futures tion regimes long in place for advisers, and Building, Washington, DC. markets. recently the reporting regimes established DEAR CHAIRMAN HENSARLING AND RANKING We believe the SEC FY2014 funding request under Dodd-Frank for certain private fund MINORITY MEMBER WATERS: The AFL–CIO, a reflects the importance of their traditional advisers, are designed to help insure that labor federation of 57 unions representing 12 core responsibility, as well as the new au- regulators and investors have access to im- million working men and women with over

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$4 trillion in assets in benefit plans, opposes ‘‘THE AUDITOR INTEGRITY AND JOB PROTECTION OPPOSE BILL (H.R. 2374) TO UNDERMINE the Small Business Capital Access and Job ACT.’’ (H.R. 1564) PROTECTIONS FOR VULNERABLE INVESTORS Preservation Act (H.R. 1105); the Burden- H.R. 1564 seeks to prevent the Public Com- H.R. 2374 launches a two-stage attack on some Data Collection Relief Act (H.R. 1135); pany Accounting Oversight Board (PCAOB) federal regulators’ attempts to improve pro- the Audit Integrity and Job Protection Act from placing limits on the length of time a tections for average, unsophisticated inves- (H.R. 1564); and the Retail Investor Protec- public company can use the same audit firm, tors in their dealings with predatory and tion Act (H.R. 2374) scheduled for markup in referred to as auditor rotation. H.R. 1564 self-dealing investment professionals. First, committee this week. The AFL–CIO testified amends Sarbanes-Oxley by adding a limita- it would throw new roadblocks in the way of in May before this Committee in opposition tion on PCAOB authority which states, ‘‘The the Securities and Exchange Commission to these bills and we reiterate, in brief, Board shall have no authority under this (SEC) as it attempts to close a gaping regu- below our continued opposition. This pack- title to require that audits conducted for a latory loophole that permits broker-dealers age of bills is a clear indication that some in particular issuer in accordance with the to provide investment ‘‘advice’’ to retail in- Congress have every intention to take us standards set forth under this section be con- vestors that is not designed to serve the best down the road of deregulation, yet again. Since 1980, the United States has gone ducted by specific auditors, or that such au- interests of those investors. Second, it would through several cycles of financial deregula- dits be conducted for an issuer by different inappropriately tie the ability of the Depart- tion. The first of these episodes led to the auditors on a rotating basis.’’ ment of Labor (DOL) to update its fiduciary savings and loan fiasco of the early 1990’s, H.R. 1564 both substantively weakens the definition under ERISA to the SEC’s success- the second to the tech bubble collapse in 2000 ability of the PCAOB to play its role in pro- ful completion of its separate rulemaking and the wave of corporate scandals and tecting our economy against systemic risk, under the securities laws. bankruptcies that began with Enron in 2001. and it weakens the independence of auditor Over the years, brokers have been per- And the third, and by far the most dev- regulation. Both results are contrary to the mitted to call themselves financial advisers astating, was the residential real estate bub- public interest, and consequently the AFL– and offer extensive advisory services without ble driven by a deregulated banking sector CIO opposes this bill. having to meet the best interest standard in- cluded as part of the fiduciary duty that ap- through the use of mortgage backed securi- ‘‘THE RETAIL INVESTOR PROTECTION ACT’’ (H.R. plies to all other investment advisers. As a ties, and the subsequent collapse of that bub- 2374) ble starting in 2007. Surely members of the result, many investors are deceived into be- H.R. 2374 would require the SEC to identify Committee don’t want to be associated with lieving they are dealing with a trusted ad- whether the different standards of conduct arguably the next and fourth devastating viser when, in fact, they are dealing with a that apply to broker-dealers and investment round of deregulation. salesperson—a salesperson, moreover, who is advisers result in harm to retail investors. In free to put his or her own financial interests ‘‘THE SMALL BUSINESS CAPITAL ACCESS AND addition, the bill requires the SEC’s Chief ahead of the interests of the investor and JOB PRESERVATION ACT.’’ (H.R. 1105) Economist to conduct a cost benefit analysis often receives financial incentives to encour- Despite its title, H.R. 1105 has nothing to of such a change. make a formal finding that age such practices. Investors who place their do with small business and everything to do the rule would reduce investor confusion, trust in these salesmen in advisers’ clothing with ensuring some of the richest and most and coordinate with other federal regulators. can end up paying excessively high costs for powerful, and most tax subsidized, Wall Finally, the bill would prohibit the SEC from higher risk or poorly performing invest- Street firms are allowed to continue to oper- proposing rules applicable to broker-dealers’ ments that satisfy a suitability standard, ate, and build up system-wide leverage, in se- standard of conduct without simultaneously but not a fiduciary duty. That is money most cret. Specifically, H.R. 1105 would exempt all proposing rules that would ‘‘address any middle income investors can ill afford to private equity fund advisers from the reg- harm to retail customers resulting from dif- istration and reporting requirements in the waste. ferences in the registration, supervision, and This legislation would make it more dif- Dodd-Frank Act, unless each fund has out- examination requirements applicable to bro- standing borrowings that exceed two times ficult for the SEC to address this problem by kers, dealers, and investment advisers.’’ requiring further study of an issue that has the fund’s invested capital commitments. H.R. 2374 suggests these changes despite The impact of H.R. 1105 would be to pre- already been studied extensively. Indeed, the the fact that the SEC is currently collecting vent the SEC from collecting the informa- SEC has been studying the issue of the data to support an economic analysis before tion necessary to monitor a significant standard of conduct that should apply to any rulemaking is undertaken. The bill source of systemic risk. Section 404 of the brokers’ investment advice for over a decade. Dodd-Frank Act gave the Securities and Ex- would significantly delay and perhaps derail In the process, it has conducted focus group change Commission (SEC) authority to es- these long overdue efforts of the SEC to raise testing of disclosures designed (without suc- tablish recordkeeping and reporting require- the standard of conduct that applies to bro- cess) to clarify the differing legal standards ments ‘‘as necessary and appropriate in the kers when they give advice to retail inves- that apply to brokerage and advisory ac- public interest and for the protection of in- tors and accordingly the AFL–CIO opposes counts, commissioned a comprehensive inde- vestors, or for the assessment of systemic H.R. 2374. pendent study intended to lay the foundation risk by the Financial Stability Oversight For the above reasons we urge you to vote for further rulemaking, and conducted a Council. H.R. 1105 would exempt private eq- against this cluster of bills that seek to undo staff study of the issues to be addressed by uity funds from this recordkeeping and re- much needed reforms enacted in the Dodd- rulemaking. Over the years, the SEC has col- porting framework and direct the SEC to re- Frank Act. lected reams of comment from all interested place it with one that omits consideration of Sincerely, parties with a stake in the issue, and it has potential systemic risks and is exclusively WILLIAM SAMUEL, recently issued an additional Request for In- for use by the SEC. The AFL–CIO continues Director Government Affairs Department. formation to form the basis of a thorough to oppose any bill that weakens investor pro- economic analysis to accompany any rule- tections and increases systemic risk. CONSUMER FEDERATION OF AMERICA, making it might decide to undertake. ‘‘THE BURDENSOME DATA COLLECTION RELIEF June 18, 2013. Clearly, the additional cost-benefit anal- ACT’’ (H.R. 1135) Hon. JEB HENSARLING, ysis requirements in H.R. 2374 are not de- H.R. 1135 seeks to keep secret the relation- Chairman, Financial Services Committee, House signed to address any shortcomings in the ship between CEO pay and the median pay of of Representatives. SEC approach to economic analysis of this other employees at public companies, by re- Hon. MAXINE WATERS, issue. Instead, their primary effect would be pealing section 953(b) of the Dodd-Frank Act, Ranking Member, Financial Services Committee, to create additional grounds for legal chal- which requires such disclosure. It is a bill de- House of Representatives. lenge by fringe industry groups that oppose signed to hide material information from in- DEAR CHAIRMAN HENSARLING, RANKING any rulemaking that might force them to vestors and boards which ultimately be- MEMBER WATERS AND MEMBERS OF THE COM- abandon predatory practices that allow them comes detrimental in efforts to fight income MITTEE: The Financial Services Committee is to profit at their customers’ expense. The inequality. scheduled to mark-up yet another set of bills best outcome, if this legislation were adopt- Investors have long had multiple concerns this week that would weaken investor pro- ed, would be further delay of a rule that is about CEO pay—starting with the raw num- tection and undermine the transparency and already years overdue. More likely is that bers that come out of investors’ ’pockets. integrity of our capital markets. I am writ- the legislation would inhibit SEC rule- Top executives at large public companies ing on behalf of the Consumer Federation of making altogether or result in a rule so now keep for themselves an average of 10% of America to urge you to oppose these bills. weak as to be entirely devoid of meaningful. their companies’ net profits, approximately While CFA opposes each of the bills sched- new protections for investors. Middle income double the rate in the early 1990s. The disclo- uled for mark-up for reasons described brief- investors who need to make every dollar sure requirements of 953(b) would help reveal ly below, our primary focus is the cynically count would be the ultimate victims of these the true nature of disparities between CEO’s titled ‘‘Retail Investor Protection Act,’’ bureaucratic games. and their employees enabling investors and which would undermine the ability of federal But retail investors would not be the only boards to also consider and take action ac- agencies to ensure that Americans receive victims of this legislation. Working Ameri- cordingly. As such, the AFL–CIO strongly appropriate protections in their dealings cans attempting to prepare for a secure re- opposes H.R. 1135 and the repeal of 953(b) dis- with financial/professionals who purport to tirement would also be denied appropriate closure requirements. offer investment advice. protections, perhaps indefinitely. Loopholes

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00035 Fmt 0636 Sfmt 0634 E:\CR\FM\A04DE7.036 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE H7484 CONGRESSIONAL RECORD — HOUSE December 4, 2013 in the definition of investment advice under ments (H.R. 1105), tie the hands of regulators ties, for both investor protection and market ERISA make DOL’s fiduciary standard all seeking to address a persistent market fail- efficiency purposes. but unenforceable. This bill would prevent ure (H.R. 1564), deprive investors of informa- Beyond this, to base exemptions from reg- DOL from acting to address that problem tion that could provide a check on excessive istration on investment strategy or leverage until after the SEC completes an entirely CEO pay (H.R. 1135), and impede the ability would result in the securities laws generally separate fiduciary rulemaking under the se- of federal regulators to act to protect unso- favoring or disfavoring particular strategies, curities laws. It would impede DOL action phisticated investors from predatory indus- which should be avoided when the objective despite repeated assurances that the SEC try practices (H.R. 2374). We urge you to vote is a fair and level playing field. and DOL are coordinating their efforts and NO on each of these bills. Thank you for UNIFORM FIDUCIARY STANDARD OF CONDUCT that any rules adopted will not conflict. DOL your attention to our concerns. You may Section 913 of the Dodd-Frank Act added has responded to criticism of its original ap- contact me if you have any questions about new express authority for the Commission to proach by withdrawing that proposal in our position on the issues. adopt a uniform fiduciary standard of con- order to conduct a thorough economic anal- Respectfully submitted, duct and to consider other potential options ysis, redraft the proposal, and clarify how BARBARA ROPER, for the harmonization of the regulation of the revised definition would interact with Director of Investor Protection. broker-dealers and investment advisers. Al- prohibited transaction exemptions. DOL de- though there are differing views on this serves to have the resulting reproposal UNITED STATES SECURITIES issue, many investor advocates and industry judged on its merits, not halted based on un- AND EXCHANGE COMMISSION, participants support the establishment of a substantiated fears about the form that rule- Washington, DC, June 18, 2013. uniform fiduciary standard of conduct. The making might take. For all these reasons, Hon. JEB HENSARLING, new restrictions on the Commission’s au- we urge you to vote NO on H.R. 2374. Chairman, Committee on Financial Services, thority that would be imposed under H.R. House of Representatives, Rayburn House OPPOSE ANTI-INVESTOR BILLS TO UNDERMINE 2374, however, would make it difficult for the Office Building, Washington, DC. MARKET TRANSPARENCY AND INTEGRITY Commission to adopt such a rule should it Hon. MAXINE WATERS, The Committee is also scheduled to mark determine to do so. Ranking Member, Committee on Financial Serv- up three other bills, each of which would in The Commission has pursued the consider- ices, House of Representatives, Rayburn its own way undermine market transparency ation of possible rulemaking under section House Office Building, Washington, DC. and integrity. 913 with care and diligence. Section 913 re- DEAR CHAIRMAN HENSARLING AND RANKING H.R. 1564, the ‘‘Audit Integrity and Job quired the Commission to conduct a study MEMBER WATERS: I understand that the Protection Act,’’ would prevent the Public regarding obligations of broker-dealers and House Committee on Financial Services is Company Accounting Oversight Board investment advisers. That study, published scheduled this week to consider several bills (PCAOB) from adopting a rule to require ro- in 2011, contained two primary recommenda- pending before it, including H.R. 1105 and tation of auditors at public companies even tions from Commission staff—one in favor of H.R. 2374. I write to briefly express my views if it determines, based on a thorough review a uniform fiduciary standard of conduct and on these two bills. The views expressed in of the evidence, that doing so is necessary to another calling for enhanced harmonization this letter are my own and do not nec- address the persistent lack of independence of the regulatory requirements for broker- essarily reflect the views of the full Commis- and professional skepticism in the audits of dealers and investment advisers. Following public companies. The PCAOB has not yet sion or any Commissioner. The Small Business Capital Access and Job publication of the study, Commissioners and decided on a regulatory approach and is in- Preservation Act (H.R. 1105) would amend Commission staff have met with relevant stead engaged in carefully weighing the evi- the Investment Advisers Act of 1940 (Invest- parties and maintained an open dialogue dence. In contrast to the PCAOB’s balanced ment Advisers Act) to generally exempt in- with those interested in these issues. To fur- and thoughtful approach, this legislation vestment advisers to private equity funds ther its review, the Commission in March would decide the issue without any consider- from the registration requirements of the In- 2013 published a request for additional data ation of the evidence on audit failures tied to vestment Advisers Act, unless such funds and other information, in particular quan- lack of auditor independence, a problem that have borrowed and have outstanding prin- titative data and economic analysis. Any has been highlighted by regulators both here cipal amounts in excess of twice their in- rulemaking under section 913 would include and abroad. We urge you to protect the inde- vested capital commitments. The Retail In- a rigorous economic analysis. pendence of the PCAOB and the audit proc- vestor Protection Act (H.R. 2374) would im- If, after such fact-finding and delibera- ess by voting NO on H.R. 1564. tions, the Commission should determine to H.R. 1105, the Small Business Capital Ac- pose new restrictions on the Commission’s ability to adopt a uniform fiduciary standard propose a uniform fiduciary standard of con- cess and Job Preservation Act, would exempt duct, H.R. 2374 would layer on new statutory a large swath of ‘‘private equity’’ funds from of conduct for investment advisers and broker-dealers. requirements for the Commission to satisfy registration with the SEC without showing before finalizing any such rules, which could any reason why such an exemption is nec- REGISTRATION OF PRIVATE EQUITY ADVISERS impede this investor-focused initiative in essary or appropriate. The bill would leave it Regarding H.R. 1105, registration under the what already has been a multi-year process. to the agency to define the scope of funds Investment Advisers Act serves to protect I hope that this information is helpful to that might qualify for the exemption, set- investors from conflicts of interest and other you and to the other members of the Com- ting up an inevitable regulatory race to the risks associated with investors’ entrusting mittee. Please do not hesitate to contact me bottom as funds pressure the agency to write their assets to advisers. Title IV of the Dodd- or have your staff contact Tim Henseler, as expansive an exemption as possible. As Frank Wall Street Reform and Consumer Acting Director of the Office of Legislative such, the bill would limit the ability of the Protection Act (Dodd-Frank Act) mandated and Intergovernmental Affairs, if I can be of agency to provide effective oversight of a that advisers to private equity funds with as- further assistance. portion of the securities business with a sets under management above $150 million Sincerely, proven capacity to spread risk through the register with the Commission. Although pri- MARY JO WHITE, financial system. We urge you to vote NO on vate equity funds were not an underlying Chair. H.R. 1105, which would undermine efforts to cause of the recent financial crisis, private protect the financial system from systemic equity fund advisers represent a significant Ms. WATERS. I thank the gentleman threats. and influential part of the financial land- from Massachusetts for managing in H.R. 1135, the ‘‘Burdensome Data Collec- scape. In my view, our markets would not be my absence. tion Relief Act,’’ would undermine market well-served by narrowing the scope of the Mr. Speaker, I am pleased to have transparency by denying investors informa- Commission’s jurisdiction and oversight of the opportunity to come back to the tion about the relationship between CEO and these advisers. floor to add a few comments. worker pay at the companies in which they Private equity fund investors are in need Prior to leaving, the chairman of this invest. Not only would this bill hide material of the same protections as other private fund committee talked about this being a information from the owners of public com- investors. As with other types of funds and panies, but it would also undermine efforts advisers, the Commission has brought en- job creation bill. He wrapped this bill to rein in out-of-control CEO pay. Opposition forcement actions against private equity in jobs creation. And I must say that I to this disclosure is clearly based not on any funds and their advisory personnel involving don’t think that the gentleman has excessive costs or insurmountable burdens unlawful pay to play schemes, insider trad- much else he could say about why they associated with making the disclosure, but ing, conflicts of interest, valuation, and mis- are trying to exempt all of these pri- on the fact that the information is likely to appropriation of assets. Registration pro- vate equity funds from registering with be embarrassing to many companies and vides the Commission with tools to discover the SEC. could provide the impetus for reform. We and prevent fraud and other violations of the Wrapping it in this notion of they are urge you to stand up for market trans- securities laws, enhancing confidence in our parency and economic equality by voting NO capital markets and promoting fair dealing. creating all of these jobs and we should on H.R. 1135. It is important, therefore, that the Commis- all be very appreciative is one way to Taken together, these bills would reduce sion, as a capital markets regulator, have an deflect attention from the fact that oversight of potentially risky market seg- appropriate level of oversight of these enti- here we have private equity funds. $180

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00036 Fmt 0636 Sfmt 0634 E:\CR\FM\A04DE7.037 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE December 4, 2013 CONGRESSIONAL RECORD — HOUSE H7485 million from the smaller private equity And I would say to my friends, you sounds big. Actually, that is around a funds have been exempted already. have to oppose this bill. There will be $3 million business. And now you are Those firms that have $180 million in an amendment coming up that was asking that $3 million business to have those funds or less are already exempt- mentioned by the gentlewoman from to pay upwards of half a million dollars ed. That was done in the Dodd-Frank New York (Mrs. MALONEY) that makes each year for all their compliance costs legislation. Now they are coming back good sense. And if they had gone to and the examination, which goes to the and they are saying exempt everybody. that simply as a way of trying to help last point by the gentlelady from New What is it you are trying to hide? out in this area, they could have got- York. Why is it you do not want these firms ten a lot of support, but they have The SPEAKER pro tempore. The to register? stepped way over the line when they time of the gentleman has expired. Well, first of all, they are registered say no oversight, no scrutiny by the Mr. HENSARLING. I yield the gen- at this point. The SEC is given the SEC or anybody else. tleman an additional 30 seconds. oversight and the regulation that they The SPEAKER pro tempore. The Mr. GARRETT. We would love to try need, and they are finding that it is time of the gentlewoman has expired. to find some common ground on her very important for them to do so be- b 1545 amendment, but her amendment sim- cause they are finding that there are ply goes to the first point and the ini- Mr. HENSARLING. Mr. Speaker, I unlawful pay-to-play schemes, insider tial filing of the forms and what have am very happy to yield 2 minutes to trading, conflicts of interest, and mis- you. After that, there is the extraneous the gentleman from New Jersey (Mr. appropriations of assets, et cetera. additional examinations and all the GARRETT), a coauthor of the legislation That is not to say that all private eq- other costs that are so overly burden- and the chairman of our Capital Mar- uity funds are doing these things, but some that we have found both in a bi- kets and GSE Subcommittee. weeding out the bad actors is ex- partisan manner, as Mr. HIMES from tremely important. Mr. GARRETT. I thank the chairman for yielding. Connecticut has already pointed out, is The SEC is our cop on the block. overly burdensome and unnecessary. They are there to protect the inves- Mr. Speaker, let’s step back for a mo- ment and just see where we may agree If there was some other way to pull tors. This is their number one responsi- this together in a bipartisan manner bility, and we want them to do this. on certain points. I guess at the 30,000-foot level we more so than we have already done, I Just as you have CalPERS from Cali- would do so, but I am glad that the fornia, which is against this bill, they agree on the fact that we want to work together on legislation that will try to gentleman from Virginia and also the should be against this bill. They have gentleman from Connecticut have been the retirement funds of policemen and prevent the next financial crisis. We agree that we want to try to protect in- able to come together on all the points firemen and all of the middle class peo- to come to a final bill in a bipartisan ple that make up the basis of this econ- vestors. It is after that level, however, when manner. And I support the legislation. omy. Mr. HENSARLING. Mr. Speaker, I Well, let me just add to the ones that we get into the details that we dis- agree. yield myself the balance of my time. were mentioned by my friend from Mr. Speaker, listening to some of my Massachusetts. We also have Ameri- As far as protecting and trying to colleagues on the other side of the cans for Financial Reform. We also make sure the next financial crisis aisle, it is hard not to conclude that have the Consumer Federation and all does not occur, there has been no evi- some of them have never met a regula- of the State regulators who are against dence either today on the floor or in tion that they didn’t like, regardless of this bill. And the President’s advisers the committee process during the dis- what it does to the hopes, dreams, and have said they are recommending a cussion of this debate or in any of the aspirations of the unemployed and un- veto. debates when we discussed Dodd-Frank What do you have to hide? Why don’t that the origin of the last financial cri- deremployed in America. you want registration? That is the sis was from private equity. No evi- As I look over your chair, Mr. Speak- question that must be asked. That is dence. Or from hedge funds. No evi- er, and see the words, ‘‘In God We the question that has really not been dence. Or from venture capital. No evi- Trust,’’ I sometimes question whether answered. dence whatever. So to say that we need some Members would like to take down Mr. Speaker and Members, I would to have extensive, overbearing, over- the word ‘‘God’’ and replace it with ask for a ‘‘no’’ vote on this bill because lapping, extraneous regulation on pri- ‘‘regulators’’: In Regulators We Trust. we endanger the investors that they vate equity to prevent the next one, The question has never been, Mr. claim they want to protect because they have no evidence to say that was Speaker, the question between regula- they claim they want them to produce the cause in the past. tion and deregulation. The question is all of these jobs, and certainly that We say, just as the gentleman from between smart regulation and dumb will never happen if we allow the kinds Connecticut said before, venture cap- regulation; and in order to make that of situations to continue to happen ital is excluded from it. Why not pri- determination, one needs to see what that were described in the discussion vate equity as well? And that is why we cost is being imposed, again, on the about Bain Capital in the Presidential have come together in a bipartisan hopes and dreams and aspirations of election debates. manner to make sure the next crisis the unemployed and the under- Further, let me just say that we have doesn’t occur in an area such as this. employed. worked very, very hard to try to make In the second area, the point was Why does this underlying regulation sure that we have protection. That is made as far as the cost. The gentleman need to be there in the first place? Is it the role of the SEC. And again, they al- from Massachusetts said, Well, we’re systemic risk? Well, even the chairman ready have these registered private eq- talking about the larger funds here. If of the SEC has admitted that private uity firms that they are taking a look he was at the hearing last night in the equity played no role in the financial at, and they are learning things about Rules Committee, he would have heard crisis. them. And this information will be one of his colleagues, Mr. POLIS from We know in terms of the economy, used to make sure that we have the Colorado, refute that point. private equity may represent some- kind of private equity funds that can Why is that? This is what he said. where on the order of 1.5 to 2 percent of do the kind of jobs that we want them When you are talking about firms, $150 GDP. There is no evidence of inter- to do. million, $200 million sounds like large connectedness, which many maintain Yes, we appreciate investment. Yes, firms, right? But that is just how much is at the root of systemic risk. we want job creation. But why should money is under management. The ac- So what are they trying to protect? we have private equity funds that tual money they are actually spending Well, investor protection. This is all somehow have no oversight, that don’t in the company is just a fraction of it. about giving additional protection to have anybody scrutinizing what they A little tiny fraction, as he pointed millionaire investors at the expense of are doing? Why is it we don’t want any out. It is around 2 percent. single moms trying to make ends meet. regulatory agencies looking at them? So if you are talking about a $150 I am not really sure that meets the That just doesn’t make good sense. million fund under management, it test of smart regulation.

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00037 Fmt 0636 Sfmt 0634 E:\CR\FM\K04DE7.049 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE H7486 CONGRESSIONAL RECORD — HOUSE December 4, 2013 We know already that private equity sors Act of 1940 to generally exempt private The Chair recognizes the gentle- fund advisers are subject, as they well equity fund investment advisors from its reg- woman from New York. should be, to the antifraud provisions istration and reporting requirements, subject to Mrs. CAROLYN B. MALONEY of New of the Investment Advisers Act of 1940, certain conditions. York. Mr. Speaker, I first want to com- whether they are registered or not. Proponents of this legislation argue that pri- mend the chairman and the ranking Fund offerings are subject to the anti- vate equity funds were not the source of sys- member for their hard and dedicated fraud provisions of the Securities Act temic risk during the most recent financial cri- work on the Financial Services Com- of 1933. The SEC still has the ability to sis and therefore that their investment advi- mittee. ensure that proper documentation is sors should not be subject to registration and I would also like to commend the maintained. reporting requirements under current law. vice-chairman, Congressman HURT, for No, we do not want to see any inves- While private equity funds can play an impor- his work on this bill. I agree with him tor, regardless of sophistication or in- tant role in capital formation, and I would that private equity funds did not cause come, be subject to coercion or fraud. agree that private equity funds were not the the financial crisis. But, at the same time, we don’t want principal source of systemic risk during the I also agree that many private equity to deny small businesses—the job en- last financial crisis, that does not mean it funds—and especially the small private gine in America—the funding they need would be impossible for private equity firms to equity funds that invest in middle-mar- to put America back to work. become a source of systemic risk at some ket businesses—support jobs across our There are many companies today point in the future. country. I also agree that for many that we recognize—Dunkin’ Donuts, Moreover, as Securities and Exchange small equity funds, the cost of com- Baskin-Robbins, Petco, Skype, Commission Chair Mary Jo White has pointed plying with every single requirement J.Crew—that all have benefited from out, registration and reporting requirements in the Investment Advisers Act can be private equity. Where would the tens of are not used solely for systemic risk preven- burdensome and costly. thousands, if not hundreds of thou- tion. Just as importantly, they are also used However, while I share the goal of re- sands, of jobs they represent be today for investor protection. In that regard, it is ducing unnecessary regulatory burdens if private equity had to face yet an- worth noting that the SEC has brought en- on small private equity funds with other burden that is going to cost these forcement actions against unscrupulous pri- under $1 billion in assets, I believe that small investment firms half a million vate equity funds involving unlawful pay to there are better ways to accomplish dollars, a million dollars? play schemes, insider trading, conflicts of in- this goal to reduce the burden, to re- Today, we haven’t really heard that terest, valuation issues and misappropriation duce costs without eliminating impor- much about company likes Entrust or of assets. This investor protection function will tant investor protections. Universal Smart Comp, but maybe become even more important once the SEC fi- I would say that we should have they are tomorrow’s Petco or tomor- nalizes implementation of a provision in the re- equality in this country—and equality row’s Toys ‘‘R’’ Us. cently enacted Jumpstart Our Business of treatment for everyone, including And so it really comes down to this, Startups (JOBS) Act permitting the general so- investors. If you are a small investor, a Mr. Speaker, again: Are there going to licitation and advertising of private equity large investor, a teacher, an unem- be additional protections for multi- funds and private securities. ployed worker, and you have invested, millionaire investors, or are there For these reasons, I will be opposing this whoever you are, you should have pro- going to be additional protections and bill. tections. Aren’t we a country of laws opportunities for unemployed single The SPEAKER pro tempore. All time and equality of treatment? So my moms trying to make ends meet? for debate has expired. amendment would direct the SEC to Our side of the aisle said, Let’s help AMENDMENT NO. 1 PRINTED IN PART B OF HOUSE create a simplified disclosure form for the single mom. Let’s pass H.R. 1105, REPORT 113–283 OFFERED BY MRS. CAROLYN B. fund advisers between $150 million and and put America back to work. MALONEY OF NEW YORK $1 billion, while also retaining impor- I yield back the balance of my time. Mrs. CAROLYN B. MALONEY of New tant investor protections. Mr. STUTZMAN. Mr. Speaker, I rise today York. Mr. Speaker, I have an amend- We would reduce the burden, reduce in support of H.R. 1105, the Small Business ment at the desk. the reporting, reduce the disclosure, The SPEAKER pro tempore. The Capital Access and Job Preservation Act. simplify the forms, make it easier, but Clerk will designate the amendment. Washington can’t regulate its way to the top protect the fiduciary duty to act in a The text of the amendment is as fol- while red tape puts American jobs at risk. client’s best interest. Isn’t that the lows: Too often big-government builds barriers to moral, right thing to do? success but men and women in the real econ- Page 1, strike line 10 and all that follows There is the obligation to disclose through page 2, line 17, and insert the fol- omy know how to get the job done. In nearly lowing: conflicts of interest and the obligation every sector of our economy, thousands of ‘‘(o) SIMPLIFIED REGISTRATION AND DISCLO- to disclose fees. I thought we all sup- companies are backed by private equity and SURE FOR SMALL PRIVATE EQUITY FUND AD- ported transparency. Well, let’s have employ millions of hardworking Americans. VISERS.— transparency in these investment Unfortunately, Dodd-Frank places unneces- ‘‘(1) IN GENERAL.—Subject to paragraph (2), funds, too. sary and burdensome regulations on private the Commission shall promulgate rules pro- I would ask my colleagues on the firms that invest hundreds of billions of dollars viding for a simplified procedure for registra- other side of the aisle who are object- tion and disclosure under this section for ing to this amendment how much of a each year to open doors for new opportunities. any investment adviser acting as an invest- Instead of creating jobs, these requirements ment adviser to a private equity fund or burden is it to disclose whether or not increase costs, divert capital, and consume funds that, in the aggregate, have assets you have a conflict of interest. You time. under management in the United States of just have to check yes or no, I have a Private equity is critical to a strong recovery between $150,000,000 and $1,000,000,000. conflict of interest. Then maybe you and works best when advisers look ahead for ‘‘(2) TAILORED APPLICATION.—The rules pro- have to disclose what that conflict is. new opportunities, not when they’re constantly mulgated under paragraph (1) shall take into But that is the fair and right thing to forced to worry about red tape. Today, we account compliance costs, fund size, govern- do. ance, and any other factors that the Com- How burdensome is it to disclose have an opportunity to reduce Dodd-Frank’s mission determines necessary. fees? Tell people what you are charging unfair burdens on responsible investment advi- ‘‘(3) PRIVATE EQUITY FUND DEFINED.—Not sors. later than 6 months after the date of enact- them. And how burdensome is it to It’s time to pass this common-sense legisla- ment of this subsection, the Commission have the necessary fiduciary duty to tion and unleash new opportunities for job shall issue final rules to define the term ‘pri- act in the client’s best interest? Most growth. vate equity fund’ for purposes of this sub- people think that you are acting in I thank my colleague Representative HURT section.’’. their best interest. I think they would for his work on this issue and Chairman HEN- The SPEAKER pro tempore. Pursu- be horrified to know that some Mem- SARLING for his leadership. I urge my col- ant to House Resolution 429, the gen- bers of this body want to roll back that leagues to vote yes. tlewoman from New York (Mrs. CARO- protection for them. Mr. VAN HOLLEN. Mr. Speaker, today’s LYN B. MALONEY) and a Member op- I would also like to note that in Au- legislation would amend the Investment Advi- posed each will control 5 minutes. gust the SEC did provide relief for

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00038 Fmt 0636 Sfmt 0634 E:\CR\FM\K04DE7.050 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE December 4, 2013 CONGRESSIONAL RECORD — HOUSE H7487 smaller private equity funds from what According to the Private Equity I urge this body to defeat this amend- the industry tells me is one of the most Growth Council, on average it is taking ment and to vote in favor of the under- burdensome aspects of registration— $1.8 million for the initial Dodd-Frank lying bill. the so-called custody rule—which re- compliance cost and an additional $1.3 Mr. HENSARLING. Mr. Speaker, how quires that the funds use independent million each year in Dodd-Frank com- much time do I have remaining? custodians for stocks that don’t even pliance costs. All for what? We already The SPEAKER pro tempore. The gen- trade. So private equity funds have al- have underlying investor protections in tleman from Texas has 11⁄2 minutes re- ready gotten relief, and I applaud the place. maining. SEC for this commonsense decision. There is no evidence presented what- Mr. HENSARLING. I yield myself the The reforms in my amendment would soever that this has anything to do balance of my time. build on this relief and would direct with systemic risk, all at the cost of Mr. Speaker, again, historically, pri- the SEC to act quickly on simplified jobs, at a time when, again, Mr. Speak- vate equity has invested in tens of forms—within 6 months—and save er, tens of millions of our countrymen thousands of small businesses, and it these small businesses money so that are struggling. They are under- has helped create millions of jobs in money can go out into the community. employed, unemployed. America. The underlying bill grants a com- b 1600 The question today is: Are we going plete exemption to private equity fund to put a roadblock in place of private advisers with under 2 to 1 leverage, Again, who are we going to help? Are equity—the small business investment which is pretty much the entire indus- we going to help regulators? Are we engines—so that we can somehow help try, because the funds themselves are going to help millionaire investors? regulators? not leveraged. It is the companies the Are we going to help struggling Ameri- With all due respect to our regu- funds invest in that are leveraged. cans trying to pay the bills? We should lators—and there are many good ones The underlying bill is opposed by the oppose this amendment, Mr. Speaker. and many great ones at the SEC—I Securities and Exchange Commission, At this time, I would be very happy have never met a regulator who turned whose prime mission is to protect in- to yield 2 minutes to the gentleman down the opportunity to regulate vestors, and by President Obama’s ad- from Virginia (Mr. HURT), again, the more. I have never met him. ministration. He has even threatened a author of H.R. 1105. So the question is: Are we going to veto. Mr. HURT. I thank the chairman. grant an even greater ability to take If the problem is the high cost of reg- Mr. Speaker, I rise in opposition to istry at the SEC and preparing the re- funds away from small businesses to the gentlelady’s amendment. create a work product that doesn’t quired disclosures, then the solution is I appreciate her work and interest on to simplify the registration and disclo- meet the commonsense test, the jobs this important issue; but with all due test, the smell test—or any other sures for small equity funds. That is respect, this amendment would defeat what my bill does. But it also protects test—at a time when people are still the entire purpose of the bill. suffering and wondering how are they investors. If adopted, all advisers to private eq- It does not exempt the entire indus- going to put gas in the tank; how are uity who are currently undergoing the they going to take their kids to school; try from investor protection, which is burdensome and unnecessary registra- what the underlying bill does, and I do how are they going to afford their tion process would still be required to health care bills since, clearly, they not believe that that is the intent of do so. Additionally, it would establish my colleagues on either side of the cannot keep their health insurance an entirely subjective, so-called ‘‘sim- even if they want to. aisle. plified’’ compliance standard that So my amendment accomplishes the How are they going to do this? would have to be defined by the Securi- express goal of saving money and sim- We need private equity to fund small ties and Exchange Commission. There plifying, but protects the integrity of business to get America back to work. is no reason to believe that such a so- our financial system and investors. We need to defeat this amendment. We I urge everyone to support my called simplified standard would pro- need to pass the underlying bill. It is amendment, and I yield back the bal- vide any meaningful relief for those time to be pro-jobs. ance of my time. private equity companies investing in With that, Mr. Speaker, I yield back Mr. HENSARLING. Mr. Speaker, I small companies across this country. the balance of my time. rise in opposition to the amendment. As has been stated, small and mid- The SPEAKER pro tempore. All time The SPEAKER pro tempore. The gen- sized private equity firms are expend- for debate has expired. tleman from Texas is recognized for 5 ing hundreds of thousands of dollars in Pursuant to the rule, the previous minutes. annual compliance costs and would question is ordered on the bill, as Mr. HENSARLING. I yield myself still have to be registered with the amended, and on the amendment of- such time as I may consume. SEC. Instead of addressing this prob- fered by the gentlewoman from New Mr. Speaker, the amendment, regard- lem, this amendment, if adopted, would York (Mrs. CAROLYN B. MALONEY). less of how well-intentioned it may be, continue to restrict the ability of small The question is on the amendment by functionally guts the bill and is essen- and mid-sized private equity firms to the gentlewoman from New York (Mrs. tially redundant of current law in invest in small businesses. CAROLYN B. MALONEY). Dodd-Frank. As Members of both parties have The question was taken; and the And I grant the gentlelady, who is a pointed out, there are not persuasive very senior and thoughtful member of Speaker pro tempore announced that arguments that private equity gen- the noes appeared to have it. our committee, that her provision is erates systemic risk; and, indeed, to perhaps more articulate than the un- Mrs. CAROLYN B. MALONEY of New the extent that leverage at the fund York. Mr. Speaker, on that I demand derlying law, but section 408(n) of level could potentially trigger such Dodd-Frank already says: the yeas and nays. risk, we have already adopted a stand- The yeas and nays were ordered. In prescribing regulations to carry out the ard proposed by Mr. HIMES in com- requirements of this section with respect to The vote was taken by electronic de- mittee that would require registration vice, and there were—yeas 186, nays investment advisers acting as investment ad- for advisers to firms with leverage that visers to mid-sized private funds, the Com- 225, not voting 20, as follows: exceeds 2 to 1. mission shall take into account the size, gov- [Roll No. 620] ernance, investment strategy of such funds. I know that the gentlelady under- YEAS—186 It goes on to say: stands that access to private capital is the lifeblood for small business. The Andrews Brady (PA) Carney The Commission shall provide for registra- Barber Braley (IA) Carson (IN) tion and examination procedures with re- current SEC registration requirements Bass Brown (FL) Cartwright spect to the investment advisers of such are unnecessary. They produce a sig- Beatty Brownley (CA) Castor (FL) funds which reflect the level of systemic nificant burden on private equity firms Becerra Bustos Castro (TX) risk. and, therefore, restrict the flow of pri- Bera (CA) Butterfield Chu Bishop (NY) Capps Cicilline So, again, it is essentially redundant vate capital to small businesses across Blumenauer Capuano Clarke of what is already in current law. the country. Bonamici Ca´ rdenas Clay

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00039 Fmt 0636 Sfmt 0634 E:\CR\FM\K04DE7.052 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE H7488 CONGRESSIONAL RECORD — HOUSE December 4, 2013 Cleaver Johnson, E. B. Perlmutter McHenry Renacci Smith (NJ) ‘‘(B) publicly reports on a quarterly basis Clyburn Jones Peters (CA) McIntyre Ribble Smith (TX) the number of jobs eliminated at each com- Cohen Kaptur Peters (MI) McKeon Rice (SC) Southerland pany owned and controlled by the fund.’’. Connolly Keating Pingree (ME) McKinley Rigell Stewart Conyers Kelly (IL) Pocan Meadows Roby Stivers Mr. HURT (during the reading). Mr. Courtney Kennedy Price (NC) Meehan Roe (TN) Stutzman Speaker, I ask unanimous consent that Crowley Kildee Quigley Messer Rogers (AL) Terry the reading of the motion be dispensed Mica Rogers (KY) Thompson (PA) Cummings Kilmer Rahall with. Davis (CA) Kind Rangel Miller (FL) Rogers (MI) Thornberry Davis, Danny Kirkpatrick Richmond Miller (MI) Rohrabacher Tiberi The SPEAKER pro tempore. Is there DeFazio Kuster Roybal-Allard Mullin Rokita Tipton objection to the request of the gen- DeGette Langevin Ruiz Mulvaney Rooney Turner tleman from Virginia? Delaney Larsen (WA) Ruppersberger Murphy (PA) Ros-Lehtinen Upton There was no objection. DeLauro Larson (CT) Neugebauer Roskam Valadao Ryan (OH) The SPEAKER pro tempore. Pursu- DelBene Lee (CA) Sa´ nchez, Linda Noem Ross Wagner Deutch Levin T. Nugent Rothfus Walberg ant to the rule, the gentleman from Dingell Lewis Sanchez, Loretta Nunes Royce Walden Nevada is recognized for 5 minutes in Nunnelee Runyan Walorski Doggett Lipinski Sarbanes support of his motion. Doyle Loebsack Olson Ryan (WI) Weber (TX) Schakowsky Duckworth Lofgren Palazzo Salmon Webster (FL) Mr. HORSFORD. Mr. Speaker, this is Schiff Edwards Lowenthal Paulsen Sanford Wenstrup the final amendment to the bill which Schneider Ellison Lowey Pearce Scalise Westmoreland Schwartz will not kill the bill or send it back to Engel Lujan Grisham Perry Schock Whitfield Scott (VA) committee. If adopted, the bill will im- Eshoo (NM) Peterson Schrader Williams Esty Luja´ n, Ben Ray Scott, David Petri Schweikert Wilson (SC) mediately proceed to final passage, as Farr (NM) Serrano Pittenger Scott, Austin Wittman amended. Fattah Lynch Sewell (AL) Pitts Sensenbrenner Wolf Shea-Porter The underlying bill would exempt al- Foster Maffei Poe (TX) Sessions Womack most every private equity fund from Frankel (FL) Maloney, Sherman Polis Shimkus Woodall Fudge Carolyn Sinema Pompeo Shuster Yoder registration and reporting require- Gabbard Maloney, Sean Slaughter Posey Simpson Yoho ments under Dodd-Frank. It is another Gallego Matsui Smith (WA) Price (GA) Smith (MO) Young (AK) attempt by House Republicans to turn Garamendi McCollum Speier Reichert Smith (NE) Young (IN) Swalwell (CA) back the clock on progress that we Garcia McDermott NOT VOTING—20 Gibson McGovern Takano have made to make sure Wall Street is Green, Al McNerney Thompson (CA) Bishop (GA) Graves (MO) Miller, Gary helping Main Street. Green, Gene Meeks Thompson (MS) Campbell Grayson Radel This bill, despite being titled the Grijalva Meng Tierney Cantor Herrera Beutler Reed Gutie´rrez Michaud Titus Cramer Lummis Rush Small Business Capital Access and Job Hahn Miller, George Tonko Culberson McCarthy (NY) Sires Preservation Act, has nothing to do Hanabusa Moore Tsongas Enyart McMorris Stockman with small business or creating jobs, Hastings (FL) Moran Van Hollen Gingrey (GA) Rodgers Vargas and everything to do with chipping Heck (WA) Murphy (FL) Veasey Higgins Nadler Vela b 1631 away at the safeguards put in place Himes Napolitano Vela´ zquez Messrs. NEUGEBAUER, GRIFFITH when Congress passed financial sector Visclosky Hinojosa Neal of Virginia, DUFFY, SAM JOHNSON of reform. Holt Negrete McLeod Walz Wall Street reform has made the fi- Honda Nolan Wasserman Texas, HUELSKAMP, GRIFFIN of Ar- Horsford O’Rourke Schultz kansas, BACHUS, RYAN of Wisconsin, nancial system more transparent, re- Hoyer Owens Waters and COSTA changed their vote from duced risk, and protected against sys- Huffman Pallone Watt temic failure. Private equity fund ad- Israel Pascrell Waxman ‘‘yea’’ to ‘‘nay.’’ Jackson Lee Pastor (AZ) Welch Mrs. CAPPS, Mr. MCDERMOTT, Ms. visers have been filing reports with the Jeffries Payne Wilson (FL) SLAUGHTER, Messrs. ELLISON, SEC for over a year now. We shouldn’t Johnson (GA) Pelosi Yarmuth RAHALL, and KIND changed their vote be trying to gut the system of account- from ‘‘nay’’ to ‘‘yea.’’ ability and oversight, we should be NAYS—225 So the amendment was rejected. building it up. We should be working Aderholt Crenshaw Hartzler The result of the vote was announced together to make the reforms work and Amash Cuellar Hastings (WA) as above recorded. Amodei Daines Heck (NV) make them stronger. Bachmann Davis, Rodney Hensarling The SPEAKER pro tempore (Mr. H.R. 1105 would roll back the progress Bachus Denham Holding HECK of Nevada). The question is on by providing blanket registration and Barletta Dent Hudson the engrossment and third reading of reporting exemptions, seriously ham- Barr DeSantis Huelskamp the bill. Barrow (GA) DesJarlais Huizenga (MI) pering oversight. Barton Diaz-Balart Hultgren The bill was ordered to be engrossed The motion to recommit I am offer- Benishek Duffy Hunter and read a third time, and was read the ing would amend the underlying bill so Bentivolio Duncan (SC) Hurt third time. that investment funds are only eligible Bilirakis Duncan (TN) Issa MOTION TO RECOMMIT Bishop (UT) Ellmers Jenkins if they do not own a controlling inter- Black Farenthold Johnson (OH) Mr. HORSFORD. Mr. Speaker, I have est in companies that outsource Amer- Blackburn Fincher Johnson, Sam a motion to recommit at the desk. ican jobs to other countries. We would Boustany Fitzpatrick Jordan The SPEAKER pro tempore. Is the also require reporting about any Brady (TX) Fleischmann Joyce Bridenstine Fleming Kelly (PA) gentleman opposed to the bill? downsizing at each company owned and Brooks (AL) Flores King (IA) Mr. HORSFORD. I am opposed in its controlled by the fund. Brooks (IN) Forbes King (NY) current form. Instead of decreasing transparency Broun (GA) Fortenberry Kingston The SPEAKER pro tempore. The by Wall Street, we should be demand- Buchanan Foxx Kinzinger (IL) Clerk will report the motion to recom- Bucshon Franks (AZ) Kline ing greater public disclosure to protect Burgess Frelinghuysen Labrador mit. consumers. We should not be encour- Calvert Gardner LaMalfa The Clerk read as follows: aging outsourcing of American jobs Camp Garrett Lamborn Mr. Horsford moves to recommit the bill overseas. We should be incentivizing Capito Gerlach Lance H.R. 1105 to the Committee on Financial Carter Gibbs Lankford Services with instructions to report the companies to keep jobs right here in Cassidy Gohmert Latham America, or to bring them back. And Chabot Goodlatte Latta same back to the House forthwith with the Chaffetz Gosar LoBiondo following amendment: we should not be encouraging Coble Gowdy Long Page 2, line 17, strike the quotation marks downsizing or the elimination of jobs, Coffman Granger Lucas and final period and insert after such line but incentivizing companies to hire Cole Graves (GA) Luetkemeyer the following: employees and to get the American Collins (GA) Griffin (AR) Marchant ‘‘(3) PROTECTING AMERICAN JOBS.—The ex- Collins (NY) Griffith (VA) Marino public back to work. emption described under paragraph (1) shall Now, when I go home to my district Conaway Grimm Massie only apply to an investment adviser pro- Cook Guthrie Matheson viding investment advice to a fund that— in Nevada and meet with constituents, Cooper Hall McAllister they want to know what Congress is Costa Hanna McCarthy (CA) ‘‘(A) does not own a controlling interest in Cotton Harper McCaul a company that outsources American jobs to doing to create jobs. They aren’t ask- Crawford Harris McClintock other countries; and ing me to roll back reforms that make

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00040 Fmt 0636 Sfmt 0634 E:\CR\FM\A04DE7.015 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE December 4, 2013 CONGRESSIONAL RECORD — HOUSE H7489 financial markets more stable. They U.S. companies. This bill is about en- The vote was taken by electronic de- aren’t asking me to make life easier couraging private capital investment vice, and there were—ayes 185, noes 227, for Wall Street. They want this Con- in those Main Street jobs. This bill is not voting 19, as follows: gress focused on one street, Main about not adding $500,000 in compliance [Roll No. 621] Street, and on creating middle class costs to Main Street job creation. AYES—185 jobs to help grow the economy and put To put this in perspective, I dare say, Americans back to work. of every congressional district rep- Andrews Grijalva O’Rourke Barber Gutie´rrez Owens And so it is telling that for this Con- resented on this floor, this bill is about Barrow (GA) Hahn Pallone gress, with so few legislative days re- a window manufacturer in Rocky Bass Hanabusa Pascrell maining in this year, we are focusing Mount, Virginia, in Virginia’s Fifth Beatty Hastings (FL) Pastor (AZ) District, our district, which has oper- Becerra Heck (WA) Payne our precious time on private equity Bera (CA) Higgins ated there for the last 70 years. It has Pelosi fund advisers. This bill focuses the at- Bishop (NY) Hinojosa Perlmutter tention of Congress on the policy de- provided good jobs in our community. Blumenauer Holt Peters (CA) sires of an elite group that is doing just It has provided jobs for generations of Bonamici Honda Peters (MI) Brady (PA) Horsford Pingree (ME) fine. They are asking for more secrecy. people living in Franklin County, Vir- Braley (IA) Hoyer Pocan ginia, and for families who have Brown (FL) Huffman Why? That is not what we should be Price (NC) Brownley (CA) Israel spending our time on. worked there for generations. In the Quigley last 10–20 years in Rocky Mount, Vir- Bustos Jackson Lee Instead of bringing an infrastructure Butterfield Jeffries Rahall bill to the floor that would create mid- ginia, just like all across southside Vir- Capps Johnson (GA) Rangel dle class jobs, instead of passing com- ginia and so many congressional dis- Capuano Johnson, E. B. Richmond Roybal-Allard prehensive immigration reform, Mr. tricts across this country, we have seen Ca´ rdenas Jones Carney Kaptur Ruiz Speaker, to fix our broken system and hard times because of the loss of thou- Carson (IN) Keating Ruppersberger to grow the economy, instead of pass- sands of manufacturing jobs. We have Cartwright Kelly (IL) Ryan (OH) ing workplace protections that prevent seen over the last 10–20 years double Castor (FL) Kennedy Sa´ nchez, Linda digit unemployment. Castro (TX) Kildee T. Americans from being fired because of Chu Kilmer Sanchez, Loretta who they love, instead of working to b 1645 Cicilline Kind Sarbanes reduce food insecurity, instead of re- Clarke Kirkpatrick Schakowsky This window manufacturing plant placing the harmful sequester that is Clay Kuster Schiff was able to survive because of private Cleaver Langevin Schneider hurting everything from military con- equity investment, and now that win- Clyburn Larsen (WA) Schwartz tractors to economic activity for all Cohen Larson (CT) dow manufacturing company boasts Scott (VA) Americans, instead of doing any of Connolly Lee (CA) Scott, David 1,000 employees. Those jobs still exist that, of doing what the American peo- Conyers Levin Serrano today because of a private equity in- Costa Lewis Sewell (AL) ple are demanding of this Congress, the vestment. Courtney Lipinski Shea-Porter Crowley Loebsack House GOP, through H.R. 1105, are fo- Last night we had a meeting of the Sherman cusing their energy on gutting Wall Cuellar Lofgren Sinema Rules Committee, and one member of Cummings Lowenthal Slaughter Street reform. the committee asked a question. He Davis (CA) Lowey So we have serious business that this Smith (WA) said: If a big PE firm has to pay an Davis, Danny Lujan Grisham Speier body could be focused on, business that DeFazio (NM) Swalwell (CA) extra $500,000 for compliance costs, DeGette Luja´ n, Ben Ray many of our constituents on both sides Takano DeLauro (NM) what is the big deal? Thompson (CA) of the aisle say they want us to ad- DelBene Lynch It seems to me that it would be bet- Thompson (MS) Deutch Maloney, dress. But, instead, we have H.R. 1105, a Tierney ter, perhaps, to ask that question to an Dingell Carolyn focus to gut Wall Street reform; and it Titus employee at that windows manufac- Doggett Maloney, Sean is a quiet, but concerted, effort to once Doyle Matsui Tonko turing firm in Rocky Mount. If asked, Tsongas again turn back the clock on the Amer- I suspect he would say, you know: I Duckworth McCollum ican people. Not to mention, the under- Duncan (TN) McDermott Van Hollen have a good job. I love my job. I work Vargas lying bill is also a futile attempt be- Edwards McGovern 60 hours a week to be able to pay my Ellison McIntyre Veasey cause the President has already said he Engel McNerney Vela mortgage, to pay my bills and take Vela´ zquez would veto the legislation. care of my family. He would say, Eshoo Meeks I urge my colleagues to vote ‘‘yes’’ Esty Meng Visclosky Please, to all of you in Washington, do Walz on the motion to recommit and for the Farr Michaud everything that you can to make sure Fattah Miller, George Wasserman House of Representatives to do the peo- that 1 year from now I still have my Frankel (FL) Moore Schultz Fudge Moran Waters ple’s business, and I yield back the bal- job and make sure that my neighbor ance of my time. Gabbard Nadler Watt has a job, too. Gallego Napolitano Waxman Mr. HURT. Mr. Speaker, I rise in op- That is a big deal, and that is what Garcia Neal Welch position to the motion to recommit. this bill is about. I urge the defeat of Green, Al Negrete McLeod Wilson (FL) The SPEAKER pro tempore. The gen- Green, Gene Nolan Yarmuth this motion to recommit, I urge the tleman from Virginia is recognized for adoption of this good jobs bill, and I NOES—227 5 minutes. ask for your vote for H.R. 1105. Aderholt Carter Ellmers Mr. HURT. Mr. Speaker, with all due Mr. Speaker, I yield back the balance Amash Cassidy Farenthold respect to the gentleman from Nevada, of my time. Amodei Chabot Fincher the problem with his motion to recom- The SPEAKER pro tempore. Without Bachmann Chaffetz Fitzpatrick mit is that it would punish a company Bachus Coble Fleischmann objection, the previous question is or- Barletta Coffman Fleming like Vitamin Shoppe. Vitamin Shoppe dered on the motion to recommit. Barr Cole Flores is a leading U.S.-based vitamin and There was no objection. Barton Collins (GA) Forbes supplements distributor. Earlier this Benishek Collins (NY) Fortenberry The SPEAKER pro tempore. The Bentivolio Conaway Foster year, Vitamin Shoppe went global, question is on the motion to recommit. Bilirakis Cook Foxx opening its first international fran- The question was taken; and the Bishop (UT) Cooper Franks (AZ) chise in Panama City, Panama. By Speaker pro tempore announced that Black Cotton Frelinghuysen partnering with a private equity fund, Blackburn Cramer Garamendi the noes appeared to have it. Boustany Crawford Gardner Vitamin Shoppe grew its business from RECORDED VOTE Brady (TX) Crenshaw Garrett a Northeast-based specialty retailer to Mr. HORSFORD. Mr. Speaker, I de- Bridenstine Daines Gerlach a national chain, adding more than 400 mand a recorded vote. Brooks (AL) Davis, Rodney Gibbs Brooks (IN) Delaney Gibson stores and 2,500 new jobs. A recorded vote was ordered. Broun (GA) Denham Gohmert With all due respect, this bill is not The SPEAKER pro tempore. Pursu- Buchanan Dent Goodlatte about overseas jobs. This bill is not ant to clause 9 of rule XX, the Chair Bucshon DeSantis Gosar about Wall Street. This bill is about will reduce to 5 minutes the minimum Burgess DesJarlais Gowdy Calvert Diaz-Balart Granger Main Street American jobs to the tune time for any electronic vote on the Camp Duffy Graves (GA) of 7.5 million jobs working in 17,000 question of passage. Capito Duncan (SC) Griffin (AR)

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00041 Fmt 0636 Sfmt 0634 E:\CR\FM\K04DE7.057 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE H7490 CONGRESSIONAL RECORD — HOUSE December 4, 2013 Griffith (VA) McClintock Royce Bucshon Hudson Price (GA) Higgins Matsui Schakowsky Grimm McHenry Runyan Burgess Huelskamp Quigley Hinojosa McCollum Schiff Guthrie McKeon Ryan (WI) Butterfield Huizenga (MI) Rahall Holt McDermott Schwartz Hall McKinley Salmon Calvert Hultgren Reichert Honda McGovern Scott (VA) Hanna Meadows Sanford Camp Hunter Renacci Horsford McNerney Scott, David Harper Meehan Scalise Capito Hurt Ribble Hoyer Meng Serrano Harris Messer Schock Ca´ rdenas Israel Rice (SC) Huffman Michaud Shea-Porter Hartzler Mica Schrader Carney Issa Rigell Jeffries Miller, George Sherman Hastings (WA) Miller (FL) Johnson (GA) Moore Schweikert Carter Jackson Lee Roby Slaughter Heck (NV) Miller (MI) Cassidy Jenkins Johnson, E. B. Moran Scott, Austin Roe (TN) Smith (WA) Hensarling Mullin Chabot Johnson (OH) Jones Nadler Sensenbrenner Rogers (AL) Speier Himes Mulvaney Chaffetz Johnson, Sam Rogers (KY) Kaptur Napolitano Sessions Swalwell (CA) Holding Murphy (FL) Coble Jordan Rogers (MI) Keating Neal Shimkus Takano Hudson Murphy (PA) Coffman Joyce Rohrabacher Kelly (IL) Negrete McLeod Shuster Thompson (CA) Huelskamp Neugebauer Simpson Cole Kelly (PA) Rokita Kennedy Nolan Huizenga (MI) Noem Kildee Thompson (MS) Smith (MO) Collins (GA) Kind Rooney O’Rourke Hultgren Nugent Kilmer Pallone Tierney Smith (NE) Collins (NY) King (IA) Ros-Lehtinen Hunter Nunes Conaway King (NY) Kuster Pascrell Titus Smith (NJ) Roskam Hurt Nunnelee Cook Kingston Langevin Pastor (AZ) Tonko Smith (TX) Ross Issa Olson Cooper Kinzinger (IL) Larsen (WA) Payne Tsongas Southerland Rothfus Jenkins Palazzo Costa Kirkpatrick Larson (CT) Pelosi Van Hollen Stewart Royce Johnson (OH) Paulsen Cotton Kline Lee (CA) Perlmutter Vela Stivers Ruiz Johnson, Sam Pearce Cramer Labrador Levin Peters (CA) ´ Stutzman Runyan Velazquez Jordan Perry Crawford LaMalfa Ryan (WI) Lewis Peters (MI) Visclosky Joyce Peterson Terry Crenshaw Lamborn Lipinski Pingree (ME) Thompson (PA) Salmon Walz Kelly (PA) Petri Cuellar Lance Sanford Loebsack Pocan Wasserman King (IA) Pittenger Thornberry Lofgren Daines Lankford Scalise Price (NC) Schultz King (NY) Pitts Tiberi Davis, Rodney Lowenthal Rangel Latham Schneider Waters Kingston Poe (TX) Tipton Denham Latta Lowey Richmond Turner Schock Watt Kinzinger (IL) Polis Dent LoBiondo Schrader Lujan Grisham Roybal-Allard Kline Pompeo Upton (NM) Ruppersberger Waxman DeSantis Long Schweikert Labrador Posey Valadao Luja´ n, Ben Ray Ryan (OH) Welch DesJarlais Lucas Scott, Austin LaMalfa Price (GA) Wagner (NM) Sa´ nchez, Linda Wilson (FL) Diaz-Balart Luetkemeyer Sensenbrenner Lamborn Reichert Walberg Lynch T. Yarmuth Duckworth Maffei Sessions Lance Renacci Walden Duffy Maloney, Sean Maloney, Sanchez, Loretta Sewell (AL) Lankford Ribble Walorski Duncan (SC) Marchant Carolyn Sarbanes Shimkus Latham Rice (SC) Weber (TX) Duncan (TN) Marino Shuster Latta Rigell Wenstrup Ellmers Massie NOT VOTING—18 Simpson LoBiondo Roby Westmoreland Esty Matheson Bishop (GA) Grayson Radel Sinema Long Roe (TN) Whitfield Farenthold McAllister Campbell Herrera Beutler Reed Smith (MO) Lucas Rogers (AL) Williams Fincher McCarthy (CA) Cantor Lummis Smith (NE) Rush Luetkemeyer Rogers (KY) Wilson (SC) Fitzpatrick McCaul Culberson McCarthy (NY) Smith (NJ) Sires Maffei Rogers (MI) Wittman Fleischmann McClintock Enyart McMorris Smith (TX) Stockman Marchant Rohrabacher Wolf Fleming McHenry Gingrey (GA) Rodgers Southerland Marino Rokita Womack Flores McIntyre Graves (MO) Miller, Gary Stewart Massie Rooney Woodall Forbes McKeon Matheson Ros-Lehtinen Yoder Fortenberry McKinley Stivers b 1700 Stutzman McAllister Roskam Yoho Foxx Meadows So the bill was passed. McCarthy (CA) Ross Young (AK) Franks (AZ) Meehan Terry McCaul Rothfus Young (IN) Frelinghuysen Meeks Thompson (PA) The result of the vote was announced Gallego Messer Thornberry as above recorded. NOT VOTING—19 Garcia Mica Tiberi A motion to reconsider was laid on Bishop (GA) Grayson Radel Gardner Miller (FL) Tipton Turner the table. Campbell Herrera Beutler Reed Garrett Miller (MI) Upton PERSONAL EXPLANATION Cantor Lummis Rush Gerlach Mullin Valadao Culberson McCarthy (NY) Sires Gibbs Mulvaney Mr. GINGREY of Georgia. Mr. Speaker, on Vargas Enyart McMorris Stockman Gibson Murphy (FL) Veasey rollcall No. 620 on the Maloney Amendment to Gingrey (GA) Rodgers Webster (FL) Gohmert Murphy (PA) Graves (MO) Miller, Gary Goodlatte Neugebauer Wagner H.R. 1105—the Small Business Capital Ac- Gosar Noem Walberg cess and Job Preservation Act, I am not re- Gowdy Nugent Walden corded due to a death in the family. Had I b 1653 Granger Nunes Walorski Graves (GA) Nunnelee Weber (TX) been present, I would have voted ‘‘no.’’ Mr. JONES changed his vote from Griffin (AR) Olson Webster (FL) Mr. Speaker, on rollcall No. 621 on the Mo- ‘‘no’’ to ‘‘aye.’’ Griffith (VA) Owens Wenstrup tion to Recommit to H.R. 1105—the Small So the motion to recommit was re- Grimm Palazzo Westmoreland Business Capital Access and Job Preservation jected. Guthrie Paulsen Whitfield Hall Pearce Williams Act—offered by Mr. HORSFORD of Nevada, I The result of the vote was announced Hanna Perry Wilson (SC) am not recorded due to a death in the family. as above recorded. Harper Peterson Wittman Had I been present, I would have voted ‘‘no.’’ The SPEAKER pro tempore. The Harris Petri Wolf Mr. Speaker on rollcall No. 622 on Final Hartzler Pittenger Womack question is on the passage of the bill. Hastings (WA) Pitts Woodall Passage of H.R. 1105—the Small Business The question was taken; and the Heck (NV) Poe (TX) Yoder Capital Access and Job Preservation Act, I am Speaker pro tempore announced that Hensarling Polis Yoho not recorded due to a death in the family. Had the ayes appeared to have it. Himes Pompeo Young (AK) I been present, I would have voted ‘‘yea.’’ Holding Posey Young (IN) RECORDED VOTE PERSONAL EXPLANATION Ms. WATERS. Mr. Speaker, I demand NOES—159 Mrs. MCMORRIS RODGERS. Mr. Speaker, a recorded vote. Andrews Clarke Doyle on rollcall No. 618 on Ordering the Previous A recorded vote was ordered. Bass Clay Edwards Question, H. Res. 429, A resolution providing Beatty Cleaver Ellison for the consideration of H.R. 1105—Small The SPEAKER pro tempore. This is a Becerra Clyburn Engel 5-minute vote. Bishop (NY) Cohen Eshoo Business Capital Access and Jobs Preserva- The vote was taken by electronic de- Blumenauer Connolly Farr tion Act and H.R. 3309—Innovation Act, I am vice, and there were—ayes 254, noes 159, Bonamici Conyers Fattah not recorded because I was absent due to the Brady (PA) Courtney Foster not voting 18, as follows: Braley (IA) Crowley Frankel (FL) birth of my daughter. Had I been present, I [Roll No. 622] Brown (FL) Cummings Fudge would have voted ‘‘yea.’’ Brownley (CA) Davis (CA) Gabbard AYES—254 Mr. Speaker, on rollcall No. 619 on Agree- Bustos Davis, Danny Garamendi ing to the Resolution, H. Res. 429, A resolu- Aderholt Barrow (GA) Blackburn Capps DeFazio Green, Al Amash Barton Boustany Capuano DeGette Green, Gene tion providing for the consideration of H.R. Amodei Benishek Brady (TX) Carson (IN) Delaney Grijalva 1105—Small Business Capital Access and Bachmann Bentivolio Bridenstine Cartwright DeLauro Gutie´rrez Jobs Preservation Act and H.R. 3309—Inno- Bachus Bera (CA) Brooks (AL) Castor (FL) DelBene Hahn vation Act, I am not recorded because I was Barber Bilirakis Brooks (IN) Castro (TX) Deutch Hanabusa Barletta Bishop (UT) Broun (GA) Chu Dingell Hastings (FL) absent due to the birth of my daughter. Had Barr Black Buchanan Cicilline Doggett Heck (WA) I been present, I would have voted ‘‘yea.’’

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00042 Fmt 0636 Sfmt 9920 E:\CR\FM\A04DE7.017 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE December 4, 2013 CONGRESSIONAL RECORD — HOUSE H7491 Mr. Speaker, on rollcall No. 620 on H.R. And that’s just the way it is. AFFORDABLE CARE ACT SUCCESS 1105, on Agreeing to the Amendment offered STORY f by Mrs. MALONEY of New York, I am not re- (Mr. VEASEY asked and was given corded because I was absent due to the birth TRIBUTE TO ROSA PARKS permission to address the House for 1 of my daughter. Had I been present, I would minute.) have voted ‘‘nay.’’ (Mrs. BEATTY asked and was given permission to address the House for 1 Mr. VEASEY. Mr. Speaker, I have Mr. Speaker, on rollcall No. 621 on H.R. risen before to talk about the fact that 1105, on Motion to Recommit with Instruc- minute.) Mrs. BEATTY. Mr. Speaker, today I the congressional district that I rep- tions, the Small Business Capital Access and resent has the highest uninsured rate Jobs Preservation Act, I am not recorded be- rise to pay tribute to a woman who is considered the modern mother of the out of any congressional district in the cause I was absent due to the birth of my entire country. daughter. Had I been present, I would have civil rights movement, Rosa Parks. This past Sunday, we celebrated the About 40 percent of the constituents voted ‘‘nay.’’ that I represent don’t have health care Mr. Speaker, on rollcall No. 622 on H.R. 58th anniversary of Rosa Parks refus- ing to give up her seat on that bus in insurance, and I wanted to talk today 1105, on Passage, the Small Business Capital about how the Affordable Care Act is Access and Jobs Preservation Act, I am not Montgomery, Alabama. I am so proud to stand here from the already helping many of those con- recorded because I was absent due to the stituents in the very district that I birth of my daughter. Had I been present, I great State of Ohio, because it was the great State of Ohio that was the first represent. would have voted ‘‘yea.’’ Yesterday, I found out that a con- f State in this Nation to name December 1 Rosa Parks Day. stituent who resides in the district I REMOVAL OF NAME OF MEMBER On Thursday and Friday of this week, represent, Jason Roberts, had suffered AS COSPONSOR OF H.R. 3313 in our district, we will bring people from cancer and that he had been run- ning out of options, but when the Af- Mr. LAMALFA Mr. Speaker, I ask from all over the State to pay tribute fordable Care Act kicked in, he found unanimous consent that Representa- to her, and we will bring in more than out that his COBRA benefits would be tive RUIZ, at his request, be removed as 600 little children who will learn about saved. a cosponsor from my bill, H.R. 3313. civil rights and understand the value of Because of the options offered The SPEAKER pro tempore. Is there working together. through the Affordable Care Act, objection to the request of the gen- That day in 1955, she started some- Jason, who, again, had suffered from tleman from California? thing larger than herself. She sat down cancer, he actually dropped his month- There was no objection. so we could stand up. Mr. Speaker, it is ly premiums by $251 and his deductible f my honor to be a part of the legislation that created December 1 in Ohio as by $1,500. That is an overall savings of HOUR OF MEETING ON TOMORROW Rosa Parks Day. about $4,500 a year for what Jason de- Mr. LAMALFA Mr. Speaker, I ask scribes as ‘‘great coverage.’’ unanimous consent that when the f The simple fact that he and so many House adjourns today, it adjourn to others are actually able to keep their RESTORING MEDICARE ADVAN- meet at 9 a.m. tomorrow. insurance, even if they have a pre- TAGE CHOICE FOR OUR SENIORS The SPEAKER pro tempore. Is there existing condition like Jason had with objection to the request of the gen- (Mr. ROTHFUS asked and was given cancer, is a true testament to the bene- tleman from California? permission to address the House for 1 fits of the health care law. There was no objection. minute and to revise and extend his re- Let’s work together to make sure that this health care law works for all f marks.) Mr. ROTHFUS. Mr. Speaker, Medi- of the uninsured like Jason and that it THE PRESIDENT WILL DO AS HE care Advantage provides quality cov- continues to work for all Americans. PLEASES erage to many seniors in western Penn- f (Mr. POE of Texas asked and was sylvania. It is popular because it pro- given permission to address the House vides more options and increased care THE INTERIM AGREEMENT WITH for 1 minute and to revise and extend coordination. IRAN IS A BAD DEAL his remarks.) Until 2011, seniors were able to take (Mr. COFFMAN asked and was given Mr. POE of Texas. Mr. Speaker, the advantage of an annual open enroll- permission to address the House for 1 President has taken an oath to uphold ment period from January through minute and to revise and extend his re- the Constitution, but this President March and make adjustments if the marks.) has refused to follow and enforce cer- plan they chose did not meet their Mr. COFFMAN. Mr. Speaker, last tain laws. needs. Unfortunately, the Affordable month I was joined by my colleagues in He doesn’t enforce all immigration Care Act eliminated this option. sending a letter to Secretary of State laws. He doesn’t enforce the mandatory The Wall Street Journal recently re- Kerry to express concern about a po- minimum punishments. He doesn’t en- ported that one of the Nation’s largest tential interim agreement with Iran. force the work requirement for welfare Medicare Advantage providers had Two weeks ago, such a deal was recipients. He doesn’t enforce the mari- dropped thousands of doctors from its reached. It is a bad deal. The world juana laws. network. As a result, seniors may be rolls back sanctions without Iran fully He illegally made recess appoint- unsure about whether they need to dismantling its nuclear weapons pro- ments. He illegally changed switch plans to continue seeing their gram. ObamaCare by postponing implementa- doctors when the current open enroll- Sanctions have impacted Iran’s econ- tion for Big Business, Small Business ment period ends this Saturday. omy, leading its people to elect a less and individuals, and granting arbitrary This uncertainty underscores the im- confrontational President. This recent waivers to special people. portance of the Medicare Beneficiary political shift, in addition to pressure He unconstitutionally took America Preservation of Choice Act, H.R. 2453, from sanctions, drove Iran to the nego- to war in Libya. which Congressman KURT SCHRADER tiating table. Regardless, the Aya- All of these actions are unilateral, and I introduced earlier this year. This tollah, the real power in Iran, con- unlawful, and unconstitutional. The bill would restore seniors’ freedom to tinues spewing hateful language at Constitution requires the President to try their plans and make changes. Israel and the West. execute and enforce law, not create his I thank my 13 Republican and Demo- Now is not the time to ease sanctions own laws or ignore the rule of law. crat colleagues for joining me in advo- that have been effective for a mere However, this President, the former cating for our seniors, and I encourage promise that Iran’s nuclear weapons constitutional law professor, seems to Members on both sides of the aisle to program will be temporarily suspended. think the Constitution is a mere sug- support this commonsense and bipar- The sanctions’ intent was to prevent a gestion, and he will do as he pleases. tisan legislation. nuclear Iran. Anything less than the

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00043 Fmt 0636 Sfmt 0634 E:\CR\FM\A04DE7.026 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE H7492 CONGRESSIONAL RECORD — HOUSE December 4, 2013 complete dismantling of its nuclear PAYING TRIBUTE TO MAJOR tion to duty and service to the U.S. Army and weapons program is unacceptable. THOMAS E. LAMB’S DEDICATED the United States of America. Tom has served SERVICE TO OUR NATION for the last 2 years as a Congressional Budget f (Mr. KINGSTON asked and was given Liaison for the United States Army and will permission to address the House for 1 soon depart for his next duty assignment. A THEFT OF INTELLECTUAL minute and to revise and extend his re- native of Washington State, Tom earned his PROPERTY marks.) commission at the United States Military Acad- ´ Mr. KINGSTON. Mr. Speaker, one of emy at West Point in 2002. As our nation’s (Mr. CARDENAS asked and was the great pleasures of serving on the armed forces were at war combating the evils given permission to address the House Defense Committee is that we get to be of terrorism, Tom prepared to join that fight for 1 minute.) associated with a large number of peo- ´ soon after graduation. At his first duty assign- Mr. CARDENAS. Mr. Speaker, the ple who are in the Armed Services, and ment with 1–4 Air Defense Artillery in Ger- U.S. motion picture and television in- one such acquaintance and friend is many, Tom deployed and led an infantry scout dustry has broad economic benefits in Major Tom E. Lamb. platoon in combat in Iraq. Following his first many districts across the Nation. This Tom Lamb is the congressional budg- combat tour, he then served in the 2nd Infan- vibrant industry supported 1.9 million et liaison for the Army to the Appro- try Division, forward deployed on Freedom’s jobs and $104 billion in total wages in priations Committee, does an excellent Frontier in the Republic of Korea from 2004 to 2011. U.S. film exports enjoy a positive job in that capacity. He was also the 2005. After returning to the United States for trade balance, with a surplus of $12.2 military fellow in our office and got to five months, Tom again deployed to Iraq in billion recorded in 2011. However, theft know the good folks in south Georgia 2006 to serve as a staff officer and deputy of intellectual property threatens our and our staff, and we all grew to love commander of a Military Transition Team industry’s success, and India is a major Tom. charged with training Iraqi Security Forces. source of that threat. I am going to submit for the RECORD After a year and a half stateside, Tom de- India accounts for more than half of a number of things about Tom’s life, ployed once again, this time to Afghanistan in all illegal movie recordings in the but I have got to tell one story about 2009, as a company commander. Asia-Pacific region. These pirated cop- him. And you, Mr. Speaker, as a mem- After returning from his third deployment ies are sold online and on the black ber of the military, will appreciate and a total of 35 months in combat, Tom market, not only in India, but around this. began his studies as an Army Congressional We were traveling in a remote part of the globe. India’s irresponsible policies Fellow, earning a Master of Professional Stud- the world and had to make an unex- need to change. They need to pass ies degree in Legislative Affairs from The pected stop because of a weather delay anticamcording laws. George Washington University. He was then in our travel and had to get into a dirt We want to share our onscreen treas- assigned as a Congressional Fellow in my of- runway in a particular location, and ures with the world, but we can’t stand fice and served as my principal advisor on de- then we had to split up the group be- by and let them be stolen at the ex- fense matters. He provided critical insight and cause of a weight problem and weather pense of the hardworking Americans assistance to me in my role on the Defense who bring these films to life. problem and just complications. So one of Tom’s duties was to reassign people Appropriations Subcommittee. As Representa- tive to four major military installations and the f on a new and a different airplane that was a smaller airplane, and he was hav- many brave Soldiers, Sailors, Airmen and Ma- ing trouble getting everybody on board rines that call the 1st District of Georgia home, HONORING THE SERVICE OF because of the weight issue. And fi- I relied daily on Tom’s military acumen. He WILLIAM D. RICKETT nally, I said to Tom: Tom, what is the transitioned to the Pentagon for assignment as (Mr. FITZPATRICK asked and was problem? I am counting up the number a Congressional Budget Liaison Officer in the given permission to address the House of seats, and there should be enough office of the Assistant Secretary of the Army for 1 minute.) room. for Financial Management and Comptroller Mr. FITZPATRICK. Mr. Speaker, for He said: Sir, we have to go by weight, where he was tasked with managing the 14 years, Bill Rickett was the man who and I have asked each Member of Con- Army’s challenging military construction, instal- kept Bucks County moving. Mr. gress what their weight is and, sir, not lations, energy and environmental portfolios. Rickett served, since 1999, as the found- everybody is giving me their accurate Tom skillfully advised the Army’s senior lead- ing Executive Director for the Bucks weight, and so I am having to do a lit- ers, fostering and strengthening the relation- County Transportation Management tle bit of balancing and avoid embar- ship between the Congress and the United Association. rassment to everybody. States Army. Major Lamb’s leadership throughout his ca- Under Bill’s leadership, the Bucks It was just amazing to me that here reer thus far has positively impacted his peers County TMA successfully completed a is this guy, a military officer, an Iraqi and superiors, Soldiers and civilians alike. As number of projects to improve trans- and an Afghan veteran, and yet he had a Congressional Budget Liaison Officer he portation access and mobility through- the aplomb and the diplomacy to han- worked directly with the House and Senate out the area, including connecting dle a situation like this with a smile, Appropriations Committees to inform Rep- commuters to regional rail service by with humor, and get us out of this loca- resentatives, Senators, and staff about the di- shuttle and improvements to the Route tion by splitting up everybody and not verse and important Army installations and in- 13 corridor in Lower Bucks County, as causing any turmoil or friction. That is just a small example of the frastructure that support the training and well well as many others. kind of things that today’s military being of our Soldiers. On behalf of a grateful Aside from his service at the TMA, leaders can do. And I know there were nation, I join my colleagues today in recog- Mr. Rickett worked with community a lot bigger issues that he dealt with nizing and commending Major Tom Lamb for organizations to make Bucks County a when he was in Iraq and Afghanistan over a decade of active service in the United better place to live and to work, in- and, indeed, working in the budget of- States Army. cluding serving on boards of both the fice—I worked with him on lots and We wish Tom and his wife, Emilie, all the Lower Bucks County Chamber of Com- lots of different issues—but Tom Lamb, best as they continue their journey of service merce and the Development Advisory to me, Mr. Speaker, represents the fin- to our great Nation. Board of the Bucks County Enterprise est in the military and the finest in the f Zone. United States of America. Thanks to his efforts, Bucks County I wish Tom and his wife, Emilie, the b 1715 continues to find new and innovative best in their next duty assignment. IN REMEMBRANCE OF HAZEL ways to enhance the quality of life for Tom, thank you for all the great REED its residents. On behalf of his cowork- service you have given the United ers and a grateful county, I want to States Government, the Congress, and (Mr. LAMALFA asked and was given thank Mr. Rickett and wish him noth- our office in particular. permission to address the House for 1 ing but the best in his well-deserved re- Mr. Speaker, I rise to pay tribute to Major minute and to revise and extend his re- tirement. Thomas E. Lamb for his extraordinary dedica- marks.)

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00044 Fmt 0636 Sfmt 0634 E:\CR\FM\K04DE7.064 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE December 4, 2013 CONGRESSIONAL RECORD — HOUSE H7493 Mr. LAMALFA. Mr. Speaker, I appre- branch of government. We have century, and I have worked with the ciate the opportunity to memorialize a worked, we have passed sanctions that nonproliferation experts. The fact is friend who just passed away recently are robust and dynamic that are not that this uranium oxide, this huge new here in northern California. I knew her taken up by the false claim of the Ira- additional stockpile to be created over from Paradise, California. Her name nians, a false promise of future con- the next 6 months can be converted was Hazel Reed. Everybody referred to duct. We need our colleagues on the back to gaseous form and then en- her as Haze, and that is kind of the other side of the rotunda to take on a riched further. And converting it back part of the fun of who she was. very rigorous sanctions bill and to to gaseous form will take only a couple I know she enjoyed visiting our ranch push back very, very aggressively. of weeks. on occasion and was always very active Because here is the thing: the Ira- So this agreement provides that Iran in our community with political-type nians are allowed to enrich under this makes substantial progress toward issues and the standing up for the free- proposed deal. There is no investiga- more low-enriched uranium, building dom and values that this country is tion as it relates to the warheads. its stockpile toward a real collection of founded on. And so I always appre- There is no investigation as it relates nuclear bombs. ciated her greatly for her spirit, her to their missile capacity. And so what We are also told that we have given feistiness, and that she would take the is happening? The Iranians gain an ad- up very little in this agreement. We time out of her life to be involved in vantage of time and money, and we have given up far more than you can the political process and more impor- squander both. This is the time when find in the text because the most im- tantly standing up for our community the United States needed to be clear portant thing about our sanctions is and its values. and not ambiguous. momentum. And we passed additional So again, I’m happy to at least at So there are Members who are gath- sanctions in 2010, 2011, 2012; and, if this date memorialize her, though we ered here today, Mr. Speaker, to talk hadn’t been for this agreement, the will miss her. Hazel Reed known as about the seriousness of this issue, to Senate would have passed the bill that Haze from Paradise, California. So God admonish the administration and en- we worked on in the summer, and we bless her. courage them to change course; and we would have passed additional sanctions f hope to highlight the significant na- in 2013. The content of those sanctions is im- IRAN ture of this shift in American foreign policy that we are seeing lay out before portant, but even more important is The SPEAKER pro tempore (Mr. us as we speak. the momentum. If you are a multi- PERRY). Under the Speaker’s an- So toward that end, I would be hon- national corporation, you can find a nounced policy of January 3, 2013, the ored at this point to yield to the gen- law firm that will find loopholes in our gentleman from Illinois (Mr. ROSKAM) existing sanctions, but you will decide tleman from California (Mr. SHERMAN), is recognized for 60 minutes as the des- my colleague and friend. not to invest a lot into that business ignee of the majority leader. Mr. SHERMAN. Mr. Speaker, I thank plan because you know Congress is GENERAL LEAVE the gentleman for yielding. going to pass more sanctions. Mr. ROSKAM. Mr. Speaker, I ask The political pundits are all focused Well, now you know we are not pass- unanimous consent that all Members on was this a good deal, was this a bad ing any sanctions in 2013; and the ques- have 5 legislative days in which to re- deal. But we’re not here in Congress to tion before us, as legislators, is wheth- vise and extend their remarks and in- give a grade to the administration. We er we will be passing sanctions in 2014. Why is momentum so important not clude extraneous materials on the sub- are here in Congress to decide what just to those international businesses ject of this Special Order. legislation should be passed. Congress The SPEAKER pro tempore. Is there trying to decide whether to invest in is a policymaking body, although so objection to the request of the gen- exploiting the loopholes? Most of eco- often those in the administration think tleman from Illinois? nomics is psychology. It is currency There was no objection. that we are, at most, advisers or crit- values. It is consumer confidence. It is Mr. ROSKAM. Mr. Speaker, there are ics; but let us take a look at this deal, business confidence. It is investment. hinge points in history. There are and we’ll see that what we get out of And we saw the celebrations in Tehran times at which you can sense that his- this is at least overstated by its pro- as the business community celebrated tory is moving almost on a hinge from ponents. this agreement because it ends the con- one trajectory to another trajectory, Because we are told that this halts tinuing momentum toward additional and my sense and my observation is their enrichment of uranium. It is true sanctions. that the United States is experiencing that it limits their 20 percent uranium; But we are not here, again, to grade such a hinge right now. and Iran will not be making progress the administration. That is for poll- Okay, what is the hinge? What is the during the 6-month period of this deal sters and pundits. We are here to de- change? What is going on? Here is what toward its first bomb, but they will be cide whether to pass legislation. is happening. The administration has making very substantial progress to- It is very clear we are not going to made a decision that is moving subtly ward their eighth, ninth, and 10th pass legislation that becomes effective in some ways, but I think the results bomb. And Iran is not a nuclear power in 2013. The question before us is are going to be very, very consequen- until they have some to hide, one or whether we will pass legislation which, tial and the subtleties will be lost, and two to test. It is not their objective to by its terms, becomes effective June 1, we are going to be at a very different have but one, because throughout this 2014. And the reason the administra- position. In other words, the hinge will agreement it is very clear the cen- tion sent some of its top officials to move us from our current policy which trifuges keep spinning, the amount of brief us in a classified briefing today is says that Iran shall not be a nuclear low enriched uranium keeps growing; because they want to convince us not power. That is the stated position of but we’re told that Iran will not be in- to take any action in the first 5 or 6 the United States. It is unambiguous. creasing its stockpile. If you read the months of 2014. Well, what does that There is no ambiguity about that, at agreement, yes, they will, but they mean? That means, in effect, we are least not up until now. have to convert to uranium oxide not going to take action in 2014. Why is But the hinge that is changing is a metal, that which they produced dur- that? direction that begins to say, well, ing the term of this agreement. Most people think that this deal ex- maybe not. Maybe instead we need a There are some proponents of the pires in late May, 6 months after it was policy of containment, and that is very agreement that say, Well, that means adopted on November 24, 2013. That is dangerous, Mr. Speaker. That is a di- that they are neutralizing all that they not the case. The start date is some rection that we ought not go. It is a di- produce under the agreement. That is day to be determined sometime prob- rection, unfortunately, that the Obama hardly true. ably in late January. So if we, as a administration is leading us in right I have been the chair or ranking Congress, are convinced not to take now, and I’m convinced it is a mistake. member of the Terrorism and Non- any action, not to pass any legislation, The House of Representatives has a proliferation Subcommittee since it not to go through the committee proc- responsibility as part of a coequal was created in the early part of this ess and the markup until after this

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00045 Fmt 0636 Sfmt 0634 E:\CR\FM\K04DE7.065 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE H7494 CONGRESSIONAL RECORD — HOUSE December 4, 2013 agreement has terminated, we are talk- do the right thing in the last few days Mr. ROSKAM. Mr. Speaker, I yield to ing about late July. Well, at the end of of July, as if Congress turns on a dime, the gentleman from Colorado (Mr. July, we go on break. We come back as if the State Department has been LAMBORN). for, what, 2 or 3 weeks between then unsuccessful in delaying, defeating, Mr. LAMBORN. I thank Representa- and the November elections. and diluting sanctions in the past. tive PETER ROSKAM, a leader on the So if the administration can convince That, I think, would be a mistake. U.S.-Israel relationship here in Con- us to not do anything until 6 months With that, I would point out that this gress. He and I are two of the cochairs after the trigger date, which is a date deal calls for a rollback of sanctions of the Republican Israel Caucus. to be determined sometime in January, that violates American law in a num- I share with many colleagues on both they can assure the Iranians that no ber of respects. It will not be the first sides of the aisle deep concern over the new sanctions will be adopted in 2014. time that an administration has re- interim agreement that this adminis- And that will be apparent to those fused to enforce the sanctions bills tration has reached with Iran over its doing business in Iran and those doing passed by Congress. nuclear program. We have struck a business with Iran. I will say that from 2010 through 2013 deal that irreversibly weakens sanc- The administration complimented us this administration has done a much tions against a country that is infa- more than once, saying these sanctions better job of enforcing such legislation mous for deception and deceit—a deal are what brought Iran to the table, but than either of the prior two adminis- that does nothing about the infrastruc- let us remember that the administra- trations. But as a technical matter, the ture of its nuclear program. tion opposed the adoption of these administration has agreed to waive In the weeks since the accord was an- sanctions every single time. The reason that which the law does not allow it to nounced, we already see the first signs we did not adopt any sanctions against waive, particularly section 504. And I of how these sanctions—which are Iran in 2009 was because of opposition will go into the details in some other what brought Iran to the negotiating from the administration and the tre- forum. table in the first place—are being erod- mendous intellectual clout and credi- Mr. ROSKAM. I thank the gentleman ed by other countries eager to resume bility that the State Department and for his insight and for his leadership on trade with Iran, as many of us pre- administration bring. this important issue, and particularly dicted. But it is not just this administration. his highlighting that the timing, Mr. Weakening the sanctions now with- We didn’t pass any sanctions during Speaker, is an illusion, as the gen- out demanding that Iran dismantle its the entire 8 years of the prior adminis- tleman said, to think this all turns on nuclear program takes away our lever- tration. Oh, we passed some through a dime on the 1st of June. age. They have not stopped a single one the House, but they stopped them in With that, I would like to yield to of its 19,000 centrifuges from enriching the Senate, and with considerable ef- the gentleman from North Carolina uranium. They are not dismantling fort. Not one bill became law. So we (Mr. HUDSON). their plutonium plant either, a plant have seen two administrations do their Mr. HUDSON. Mr. Speaker, the nu- which has absolutely no peaceful civil- best to delay, dilute, prevent, and de- clear deal agreed upon with Iran is ian purpose. feat sanctions legislation. shameful. There is no better example of We are witnessing a recurrence of the So now they say, Isn’t it great we this than Iran’s announcement just kind of effort that failed to prevent have this legislation, but don’t pass days after the agreement was reached North Korea from acquiring nuclear any new legislation. Let us remember, to open a new nuclear weapon plant weapons, but in an even more volatile we were against the legislation they that is not even subject to IAEA in- and dangerous region of the world. All now say is so great. The best example of this is the Kirk- spection. this is being done with a country that Menendez amendment in 2011. That was Any nuclear deal must include swift our own State Department has long de- the bill that prevented Iran’s central and decisive action that forces Iran to fined as the chief state sponsor of bank from clearing their petroleum completely abandon its crusade to ac- international terrorism and which is dollar-denominated transactions quire a nuclear weapons capability. We determined to get nuclear weapons. through the American banking system. must not give a dangerous regime with By giving up our leverage in return Well, what did the administration say a penchant for terrorism and extre- for a flawed interim agreement, we are in the form of a letter from Secretary mism the capability to build a weapon only reducing the chances that a pro- Geithner? He wrote on December 1, before the world can react. ductive accord can ever be reached 2011: ‘‘I am writing to express the ad- A nuclear-equipped Iran is the most with Iran over its nuclear program ministration’s strong opposition to dangerous threat to Israel, the world, where Iran actually renounces its right this amendment because, in its current and to the stability of the Middle East. to enrich uranium. form, it threatens to undermine the ef- Indeed, with a nuclear weapons capa- Mr. ROSKAM. I thank the gen- fective’’ sanctions. ‘‘In addition, the bility, Iran is a direct threat to the tleman. Mr. Speaker, I yield to the gentleman amendment would potentially yield a United States. Mr. Speaker, negotiations like this from Illinois (Mr. RODNEY DAVIS). net economic benefit to the Iranian re- require serious discussions about our Mr. RODNEY DAVIS of Illinois. gime.’’ foreign policy in the Middle East, not a Thank you to my good friend and col- b 1730 reckless decision by President Obama league from the great State of Illinois There is only one reason Iran is at that weakens our national security, (Mr. ROSKAM) for leading this Special the table today. It is because of the threatens our allies, and lacks the sup- Order on a very important subject. sanctions we have adopted the last 3 port of this Congress and, frankly, the We have concerns. We should have years. And the most important of those American people. concerns over a deal with Iran, espe- was the Menendez-Kirk sanctions that Reducing sanctions now merely re- cially as Americans. It wasn’t too long the administration fought against. wards bad behavior and fundamentally ago that President Clinton told us that What we ought to do is adopt legisla- halts the progress we have already North Korea would abide by a similar tion providing additional sanctions. made. Indeed, instead of reducing our deal. They agreed to stop their nuclear And we have already written them. We influence and taking steps backward, ambitions in order to get sanctions passed the bill in June, with 400 votes we must pursue every avenue to ensure lifted and get billions in aid from the on this floor. We should have those that Iran does not engage in nuclear United States. But they went ahead sanctions—and I would think others— weapons proliferation and, most impor- and secretly continued their program. I go into effect on June 1, unless Con- tantly, does not develop a nuclear caution this administration and the gress, in an expedited proceeding, weapon. American people to make sure that passes a resolution saying, Hold off. The only suitable agreement is one this doesn’t happen again with Iran. We’ve seen enough progress. These that starts with Iran ending their ura- This interim deal allows Iran to con- sanctions don’t need to go into force. nium enrichment program; otherwise, tinue enriching uranium to the 5 per- Instead, and the other choice, we can we should not loosen sanctions on this cent purity level and to keep building do nothing on the theory that we will bad actor. new centrifuges to repair old ones. It

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00046 Fmt 0636 Sfmt 0634 E:\CR\FM\K04DE7.066 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE December 4, 2013 CONGRESSIONAL RECORD — HOUSE H7495 calls for Iran to convert 20 percent of weapons capability, the world will step And let’s be frank. There is nobody enriched uranium either to fuel or to a into the shadow of nuclear terrorism. with a straight face that is saying that diluted 5 percent stock. But these proc- Terrorists the world over will have in- the Iranians have any interest in pur- esses can easily be reversed, especially direct access to nuclear weapons. My suing nuclear technology because of an since this interim deal does not force children and those of the Members in interest in global warming. This is not Iran to disassemble the infrastructure this body will face a forever future that an energy pursuit at all. It is clearly a that allowed it to produce enriched is uncertain every step they take. pursuit to manipulate the world stage uranium in the first place. Mr. Speaker, about 8 years ago, I toward their ends that are oftentimes A nuclear Iran is a grave danger to stood here in this same spot and called driven by terror. our friend and greatest ally in the Mid- for Iran to be referred to the Security One of the great advocates of a dle East, the State of Israel; the rest of Council. At that time, they had only strong U.S.-Israeli relationship and one our allies throughout the world; and 160 centrifuges. Of course, the call for of the great advocates of a strong U.S. our own American foreign policy inter- them to be referred to the Security foreign policy is the gentlelady from ests. As Henry Kissinger noted in The Council was diminished in that people Florida, former chairman of the For- Wall Street Journal: said they needed 3,000 centrifuges for a eign Affairs Committee, Ms. ILEANA The heart of the problem is Iran’s con- full-blown nuclear weapons program. ROS-LEHTINEN, to whom I now yield. struction of massive nuclear infrastructure Today, Mr. Speaker, Iran has 19,000 Ms. ROS-LEHTINEN. Mr. Speaker, I and stockpile of enriched uranium far out of centrifuges. Those centrifuges will con- want to thank Mr. ROSKAM for his lead- proportion to any plausible civilian energy tinue to spin—most of them—under ership in spearheading this discussion production. this agreement that the President has on the dangers of last month’s interim I am very concerned that this in- announced. nuclear agreement deal with Iran. terim deal does not address the issues This agreement the President has an- As we have had more time to dissect at hand. nounced ignores not only U.S. law, but this deal, it is becoming clearer and Furthermore, easing sanctions as ignores the UN sanctions that are in clearer that, despite Secretary Kerry’s part of the interim deal causes us to place. It also ignores the fact that Iran claim that no deal is better than a bad lose leverage at the negotiating table. has not made any concessions in this deal, we have been had. As many of my colleagues have already area in the last 30 years. It also ignores In exchange for the one thing that mentioned, it is these sanctions that the position that this deal puts Israel Iran so desperately needs—sanctions brought them to the negotiating table. in—one that is untenable and more im- relief to jump-start its flailing econ- We cannot lose sight of their effective- possible than any I have seen in my omy—the administration received ness. lifetime. nothing more than window dressing to I actually happen to agree with my The naivete of this administration in stop Iran’s nuclear program. colleagues here in the House, like Mr. dealing with Iran is something that is This interim deal is the unraveling of ROSKAM, and my Senator, MARK KIRK, simply breathtaking. the sanctions policy that was so pains- that we should increase sanctions. Mr. Speaker, I would just suggest to takingly crafted over the past 10 years. That would give us a stronger negoti- you that if Iran gains nuclear weapons, It was aimed at bringing Iran’s nuclear ating stance and draw more conces- we will need a new calendar. It will program to an end. We have already sions from Iran. change our reality in the world that seen other nations eager to get back The world needs to be a much safer much. And I would say to you that, into the Iranian market, and it will place for all of us. The only way to while there is still time, we need to now be nearly impossible to stop the make it a safer place is to stop Iran’s act. cash infusion into the Iranian regime. nuclear capabilities. Mr. Speaker, this Mr. Speaker, there is that moment in 1745 deal does not do that. the life of every problem when it is big b Mr. ROSKAM. Mr. Speaker, I will enough to be seen and still small How can we stop this? yield to the gentleman from Arizona enough to be addressed, but in terms of This deal is contrary to U.S. sanc- (Mr. FRANKS). As he is approaching the Iran’s nuclear weapons pursuit, that tions law. It is contrary to U.N. Secu- microphone, let me just make one window is closing quickly. And what- rity Council resolutions that explicitly point, and that is something that Mr. ever this body can do, whatever this prohibit Iran from being able to enrich DAVIS just highlighted. President can do to prevent Iran from its own uranium. Sanctions are working. Sanctions gaining a nuclear weapons capability, By accepting this deal, the adminis- have brought the Iranians to the table. must be done, because soon they will tration has acquiesced to Iran’s illegit- So think of it this way. You have got a have the ability to ignore our en- imate claim to a right to enrich ura- hold of a pit bull. You have got it. It is treaties and only a military interven- nium, and it has done nothing to dis- a very dangerous animal and it is fero- tion will prevent it. mantle the nuclear infrastructure of cious, and if you let go of it, it may Mr. Speaker, whatever our cost is for Iran’s. Any temporary pause in Iran’s come and attack you. Why in the preventing Iran from gaining nuclear progress can now be easily started world, if you have got it under control weapons, it will pale in its significance right up again with no real detriment or under some semblance of control, compared to the cost of allowing Iran to Tehran’s march toward nuclear would you say, ‘‘You know what? Let’s to become a nuclear-armed nation. weapons capability. loosen our grip and try this again’’? Mr. ROSKAM. I thank the gen- The administration has struck a deal It doesn’t make any sense. tleman. with an Iranian regime that is one of I yield to the gentleman from Ari- Mr. Speaker, it is an amazing thing the world’s biggest supporters of ter- zona. to think about how aggressive Iran has rorism and is a U.S.-designated state Mr. FRANKS of Arizona. I certainly been without a nuclear weapon. It is a sponsor of terrorism. It has offered thank the gentleman. worldwide sponsor of terror, incredibly sanctions relief to the very same man Mr. Speaker, I would suggest there aggressive, and going after and making who only 10 years ago, while serving as are two components to every threat in threats about the Strait of Hormuz and the chief nuclear negotiator of Iran to terms of national security that this so forth. Can you even imagine what it the West, boasted of using deception to country and other nations face. That would be like as a nation if it had a nu- buy time for Iran’s nuclear program to first component is that of intent, and clear threat behind it? It would change progress. Yet the administration has the second is that of capacity. the dynamic entirely. fallen for what I call the ‘‘Rouhani If one listens to the rhetoric that the I think one of the weaknesses of the ruse.’’ Iranian leaders have spoken in recent administration’s proposed deal is this: We have already seen Iran announce years, the intent issue should be set- it puts the imprimatur of approval on that it will continue construction on tled clearly in our minds. The question enrichment. Up until now, it has been its plutonium plant at Arak, with some that remains is their capacity. American policy that says, You can’t experts believing that Iran will exploit I would suggest to you, Mr. Speaker, enrich. You have no right to a nuclear a possible loophole in the agreement to that if, indeed, Iran gains a nuclear capability. allow it to build important components

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00047 Fmt 0636 Sfmt 0634 E:\CR\FM\K04DE7.067 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE H7496 CONGRESSIONAL RECORD — HOUSE December 4, 2013 of this heavy water reactor off site; and as well as having passed multiple (4) Publicly apologize to America and we continue to see Iran make advances pieces of legislation strengthening an Israel for calling them the large and on other nuclear weapons programs not Iranian sanctions policy in the hopes of small Satan; addressed in the interim agreement, halting their progress. A number of (5) Recognize Israel’s right to exist as such as the development of ballistic resolutions calling for sanctions, in- a Jewish state; missile technology needed to launch a creased scrutiny and the cessation of (6) Withdraw from Syria if they want nuclear payload over long distances. enrichment have also passed the U.N. to prove that Iran is serious. Mr. Speaker, not only is this interim Security Council. Yet instead of tight- (7) Wait a year to show the world deal dangerous for the precedent that ening the sanctions policy—a policy they are serious, and perform those six it sets—that rogue regimes will get re- which has forced Iran to the negotia- functions. We want action, Mr. Speak- warded at the expense of our friends tions table in the first place—this ad- er, not promises. and allies who do play by the rules— ministration seems hell-bent on easing As former Senator Phil Gramm once but the deal is also dangerous because those sanctions and on allowing the re- stated: it weakens our credibility and harms lease of billions of dollars in assets and If the lion is going to lie down with the our relations with other countries. finances to Iran. Even more incred- lamb, then we want America to be the lion. This sends a terrible message to ulous, we still don’t have a finalized We want to use our strength, to show other countries in the region that have deal, much less even know the details our strength, to negotiate from a posi- long feared Iran becoming nuclear but of what they are planning. tion of strength. To do anything else have refrained from seeking their own As a result of this administration’s may make Israel the sacrificial lamb. nuclear programs because the United easement, Iran is already threatening This current administration needs to States had promised that we would not an oil price war within OPEC, and com- understand that this deal is a bad deal. allow Iran to enrich uranium or to panies around the world are jockeying I am RANDY WEBER, and there you complete its heavy water reactor. This to play in a country that still has no have it. deal will create a loss of trust from restrictions upon enrichment or upon Mr. ROSKAM. I thank the gentleman other regional allies, such as Saudi nuclear weaponization. The terms of for his insight and for his perspective Arabia and others, who now see a dou- the so-called ‘‘deal,’’ still under nego- and for his admonition for action. ble standard from the United States. tiation, allow Iran to continue enrich- Mr. Speaker, at this point, I would Our closest friend and ally—the demo- ment, directly violating multiple U.N. like to yield to the gentlelady from In- cratic Jewish State of Israel—con- resolutions, directly violating U.S. diana (Mrs. WALORSKI), a member of tinues to feel an existential threat stated policy, and directly violating the Armed Services Committee. Mrs. WALORSKI. Thank you, Mr. from Iran. international stated policy. President Obama has weakened the The Institute for Science and Inter- ROSKAM, for your leadership on the trust and the credibility of the United national Security recently published a issue and for the opportunity to speak States and, in exchange, has strength- report indicating that Iran was a mere about this issue tonight. Mr. Speaker, in his State of the ened the legitimacy of the illegitimate few months away from reaching that Union address on January 24, 2012, Iranian regime. It is a double wham- nuclear threshold. However, this ad- President Barack Obama said: my—we lose stature while elevating a ministration’s negotiations do nothing dangerous regime. And all for what— regarding dismantling systems obvi- Let there be no doubt: America is deter- mined to prevent Iran from getting a nuclear our ability to prevent a nuclear-armed ously aimed at weaponization. They do weapon, and I will take no options off the Iran and an all-out arms race in the nothing regarding the removal of ura- table to achieve that goal. Middle East? It is not going to happen. nium enriched beyond civilian needs. On March 4, 2012, President Obama We are going to see a nuclear-armed They do nothing regarding work on de- again stated his desire to prevent a nu- Iran, and we are going to see an all-out livery systems or ballistic missiles, clear-armed Iran. He said: arms race in the Middle East. We have and they do nothing to stop the enrich- Iran’s leaders should understand that I do tarnished our relationships with our ment currently taking place. In es- not have a policy of containment; I have a trusted allies. sence, Iran has received everything it policy to prevent Iran from obtaining a nu- I remain committed, Mr. Speaker has wanted, and we have gotten noth- clear weapon. and Mr. ROSKAM, to ensuring that Iran ing. Christmas has come early in Iran. On October 22, 2012, President Obama never becomes a nuclear-capable coun- The Iranian Government, Mr. Speak- said of Iran: try. I urge my colleagues in the Senate er, is not to be trusted. It has been The clock is ticking . . . and we are going to take up the sanctions legislation demonstrated time and time again. If to make sure that, if they do not meet the that we in the House overwhelmingly we intend to keep our country safe and demands of the international community, passed earlier this year. strong, we cannot grant concessions then we are going to take all options nec- Mr. Speaker, Iran has no right what- without first verifying behavioral essary to make sure they don’t have a nu- soever to enrichment. There can be no changes from politically unstable clear weapon. ambiguity here. The United States countries like Iran. We tried that tact, Fourteen months later, the clock is must not accept any new deal with Mr. Speaker, in North Korea. How has still ticking, and Iran is now closer to Iran that does not end Iran’s enrich- that been working for us? acquiring a nuclear weapons capa- ment program completely and that Members of Congress should refuse to bility. does not completely dismantle the nu- stay silent on this issue. It is time for Now that world leaders have reached clear infrastructure of this dangerous the Senate to step up to the plate and an interim agreement on Iran’s illegal regime. pass the Nuclear Iran Prevention Act. nuclear program, we must be able to I thank Mr. ROSKAM for his leader- It is way past time for our administra- verify compliance and demand that any ship, and we will continue to fight. tion and our negotiators to take a final deal completely dismantle Mr. ROSKAM. I thank the gentle- hard-line stand against this evil. Tehran’s existing nuclear program. lady. Here is a plan to do that. Let’s de- There are three reasons this is imper- At this time, I would like to yield to mand some action. I will give you ative and for the international commu- the gentleman from Texas (Mr. seven things: nity to demand the suspension of nu- WEBER). (1) Demand that Iran stops human clear enrichment: Mr. WEBER of Texas. I thank the rights violations and releases all polit- First, Tehran must stop all enrich- gentleman from Illinois, our distin- ical hostages, including Americans like ment activities because Iran is in non- guished deputy whip. Pastor Saeed Abedini, former U.S. ma- compliance with the highest form of Mr. Speaker, this House disagrees on rine Amir Hekmati, and ex-FBI agent international law: almost every issue brought before it. Robert Levinson; Iran is in direct violation of manda- However, this is one issue on which (2) Stop the exportation of terrorism tory U.N. Security Council resolutions this House agrees: we all agree that we and renounce terrorism; demanding them to suspend all enrich- must never allow a nuclear-armed Iran. (3) Stop all the centrifuges; destroy ment and reprocessing. By not requir- Repeatedly, this Congress has passed them; and allow unlimited access from ing Iran to abide by multiple U.N. reso- resolutions condemning a nuclear Iran the IAEA; lutions, we are rewarding bad behavior.

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00048 Fmt 0636 Sfmt 0634 E:\CR\FM\K04DE7.069 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE December 4, 2013 CONGRESSIONAL RECORD — HOUSE H7497 We are signaling to the entire world Why do I say that? I say that because If we were serious about stopping that we are not serious about pre- the Obama administration and the ne- Iran from creating a nuclear weapon, venting the spread of nuclear weap- gotiators of the Obama administration there are several simple things we onry; have entered into a deal that could ef- would do. We would make sure that Second, a nuclear-armed Iran threat- fectively guarantee that Iran will ob- Iran would shut down the heavy water ens our national security. The threat tain the certainty of a nuclear weapon. plutonium reactor and we would make of a nuclear-armed Iran is not some- Now, I know that it is the stated inten- sure that Iran would dismantle, take a thing that is just talked about in the tion of the Obama administration that sledgehammer to the centrifuges. Halls of this Congress. Every time I am just the opposite of that will happen, Gone. That hasn’t happened. Not to home, I hear the fears of Hoosiers who but there is a big difference between one. The centrifuges remain. So if you worry about how acts of terrorism theory and intention and the outcome have centrifuges enriching, if you have might impact gas prices, food prices, of the result. enriched uranium, if you are con- and the well-being of loved ones. Since Today, we listened to members from tinuing to enrich, I would say you have 1984, our government has designated the Obama administration and mem- got a program. Iran as a state sponsor of terrorism. bers of the negotiating team from the This is very interesting because we The State Department has character- Obama administration, and they seem just concluded a negotiation. From my ized Iran as the ‘‘most active state quite convinced in the theory of stop- experience as a former Federal tax liti- sponsor of terrorism’’ in the world. ping Iran from obtaining a nuclear gation attorney—I did a lot of negoti- Iran has provided weapons, training weapon. The theory goes something ating—usually when two sides are ne- and funding to terrorist groups, includ- like this. It says we believe that Iran gotiating, they do it for a reason, and ing Hamas, Hezbollah and Shiite mili- has the capacity to continue to enrich the reason is because they want to be tias in Iraq, who are responsible for the uranium and do it for a peaceful pur- better off, both parties, they want to murders of hundreds of U.S. service- pose. They believe that it is possible to be better off based upon the agreement members and innocent civilians; verify that Iran would do that. that they negotiated. It seems to me But what about the reality? What is Third, a nuclear-armed Iran threat- something happened along the way the reality of what the supreme leader ens to further destabilize an already during this negotiation. It makes me of Iran has said their intentions are volatile region: If Iran is allowed to wonder if the Obama administration with this program? Just prior to the further pursue its nuclear ambitions, negotiators forgot which side they signing of the agreement, the supreme the region—highlighted by perpetual were negotiating for. conflict in places like Iraq, Syria and leader was not vague; he was quite Why do I say that? I say that because clear. He gave a speech on press TV. He Yemen—will become more destabilized. take a look at what Iran got out of the wanted the world to know what his in- Furthermore, a nuclear-armed Iran deal. And I want to give full attribu- tentions were. He gave a speech in will jeopardize the safety of our allies tion to Illinois Senator MARK KIRK, front of tens of thousands of para- and partners in the region, like Israel. who created this terrific graphic. This I believe—now more than ever—the military troops in the Iranian Revolu- is what Senator KIRK let’s us know United States must renew our unbreak- tionary Guard. He said that ‘‘it will be about the agreement. able commitment to Israel and her in- Iran’s position that we will not change What we are getting out of the deal herent right to self-defense. our nuclear program one iota.’’ So ap- are zero centrifuges dismantled. These Iran’s continued violation of U.N. parently, according to the supreme are the machines that create the fuel and International Atomic Energy leader, the program that Iran has origi- for a nuclear weapon. Not one will be Agency restrictions have only given nally envisioned it will go on. ‘‘It will dismantled out of 19,000. Zero uranium the world good reason to question go on at the same pace that it was of the 9 to 10 tons will be shipped out Iran’s willingness to abide by any fu- going on before without any change.’’ of Iran. So the material remains in ture international agreement. Once the agreement was struck, Iran. The ability to continue to create Mr. ROSKAM and Mr. Speaker, I call there was a real question, and the ques- on the President to remember his tion was this: Will Iran maintain the more material remains in Iran. It looks words to the American people about indigenous inherent ‘‘right’’ to enrich like a pretty good get for Iran. Zero nuclear facilities are closed. We preventing Tehran from obtaining a uranium? You see, that is the whole know that there is even more than we nuclear weapon, and I urge the Presi- ball game, Mr. Speaker: Will Iran have thought originally. There is Natanz, dent to use all tools at his disposal, in- the right to enrich uranium? there is Fordo, Parchin, and the pluto- cluding additional sanctions, to per- What do you need to build a nuclear nium reactor at Iraq, let alone other suade Iran from developing nuclear weapon? You need fuel for that weapon, covert programs we are not aware of. weapons. whether it is plutonium or whether it Mr. ROSKAM. Thank you, Mrs. is uranium. Iran wants to make sure There is also no delay on the pluto- nium reactor. In fact, the supreme WALORSKI. that they achieve the goal, so they are Mr. Speaker, at this point, I would engaging both in developing plutonium leader in Iran made it abundantly like to yield to the gentlelady from and uranium. They have a heavy water clear. They said, we read the agree- Minnesota (Mrs. BACHMANN), a member reactor, the Iraq facility, and the Iraq ment to say that we are not going to of the House Intelligence Committee. facility is under construction. We have stop any construction on the pluto- Mrs. BACHMANN. Mr. Speaker, I a 6-month interim agreement where we nium Iraq reactor. I would say that is want to say thank you to my col- are supposed to get to a final negotia- a violation of the agreement right league, PETER ROSKAM. We came in to- tion. The plutonium facility is not there. gether when we won our election in built yet, but it is under construction. What has been the reaction of the 2006. It has been a privilege to serve One of those items is building a road Obama administration? What has been with Mr. ROSKAM, who is not only the to the reactor. That road continues to the reaction of the negotiators? Do head and cochair of the Israel Caucus be built. There is no effort to stop that they have egg on their faces? Do they but who is also a strong defender of a from being done. There is virtually no look a little foolish from this agree- strong United States national security way for us to be able to stop mobile ment that they struck? We haven’t posture—one that has helped to lead components from being built elsewhere heard anything from the current nego- the world into safety for decades and and eventually brought into the heavy tiators. one that we continue to maintain for water reactor for the plutonium site. There is also no stop in the missile the benefit of the American people. That is an issue. That is a big issue, testing. So if Iran has a nuclear weap- and the other one being enrichment. on, if they have the fuel for a nuclear b 1800 We know today that Iran has some- weapon, and if they have the capability You see, this is a very interesting thing like 19,000 centrifuges. A min- to deliver that weapon through missile time that we are in. We have virtually imum 10,000 of those centrifuges are testing, I would say they have got watched the hinge of history turn just spinning, so much so that the estimate something. There is also no stopping in the events of these last several is they have somewhere between 9 and terrorism from Iran and there is no weeks. 10 tons of enriched uranium. stopping human rights abuses.

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00049 Fmt 0636 Sfmt 0634 E:\CR\FM\K04DE7.070 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE H7498 CONGRESSIONAL RECORD — HOUSE December 4, 2013 Many Americans aren’t aware that incredibly robust. It has been bipar- their loved ones’ welfare, and what it will ulti- there are Americans who are being held tisan. We have had insight from mem- mately take to get them home. This speaks hostage today in Iran. When Ronald bers of the Intelligence Committee, the volumes about the intents and reputability of Reagan dealt with the Soviet Union to Armed Services Committee, Members the Iranian regime—how can we trust a gov- try to end the Cold War, Ronald who have had a long-term interest in ernment to follow through on an agreement Reagan handed the Soviets a list of dis- Middle Eastern affairs and American about nuclear issues when they continue to sidents that he wanted freed in order military affairs, all of whom, Mr. hold our citizens captive? for him to begin these talks with the Speaker, have a clear view of history. I am also very concerned about the implicit Soviet Union. He sent a signal to the A clear view of history says let’s look acceptance, if not endorsement, of Iran’s right Soviet Union. It said, in America we back at past activities as the best indi- to enrich uranium. Numerous United Nations believe every American life counts. cator of what the future is going to be Security Council resolutions have stipulated That sent a very strong message. like. that Iran must stop enrichment and set-aside In the case of the Obama administra- In summary, Mr. Speaker, what we its nuclear program. Yet, somehow, this tion negotiators, they didn’t even bring know is this. That the administration agreement falls short of that previously estab- it up. They didn’t demand that one has struck a bad deal, maybe for all the lished UN mandate. While it may be acknowl- American be released before we talk. right reasons, but they have struck a edging the nuclear capacity that Iran has Now, this is interesting because the bad deal. It is the responsibility of Con- achieved, I cannot accept that. Obama administration put a lot of gress not to put its imprimatur of sup- It is unclear to me what peaceful need Iran pressure on Prime Minister Netanyahu port on a bad deal, but to act as a co- has for uranium enrichment. There are inter- of Israel. He said, You, Mr. Prime Min- equal branch of government and say, national offers on the table to develop and fuel ister, have to agree to release over 100 We ought not do this. We have got to nuclear power plants and to provide medically murderous thugs, including murderers recognize the weakness of it. We have necessary isotopes for Iran, in order to elimi- who murdered an American, before the got to recognize the long-term con- nate their purported need for indigenous nu- Palestinians will come to the table to sequences of it, and we have got to hold clear capability. But Iran would prefer to deny negotiate with you on the Israel-Pales- this administration accountable. those offers, and use the ruse of power and tinian conflict. That was our President I yield back the balance of my time. medicine to enable its pursuit of nuclear weap- who put pressure under the prime min- ons. ister—you have got to release thugs in GENERAL LEAVE Mr. ROSKAM. Mr. Speaker, I ask This agreement even allows Iran to maintain order to negotiate. We would put that the facilities, centrifuges and basic stockpiles unanimous consent that all Members kind of pressure on Israel and we that have enabled their nuclear pursuits. Re- have 5 legislative days in which to re- wouldn’t put that kind of pressure on markably, the Iranian military facility at vise and extend their remarks on the Iran? Parchin, where research on a nuclear weapon subject of the Special Order today. You see, that is why, Mr. Speaker, I has been widely suspected, is not included in ask the question: Did the negotiators The SPEAKER pro tempore. Is there objection to the request of the gen- the inspection program and imposes no re- forget which Nation they were negoti- strictions on activities at this site. tleman from Illinois? ating for? Because it looks to me like Though the opportunity to use these imple- There was no objection. the score is pretty clear: United States ments may be forestalled for now, should a Mr. LIPINSKI. Mr. Speaker, a few weeks zero, Iran made out on the deal. subsequent agreement not materialize, Iran ago, we learned that the Obama Administra- The sad thing about that final could return to its current nuclear capacity in tion, along with representatives of the so- score—and let’s hope it is not the final short order, and have billions of dollars’ worth called P5+1 countries, had reached an agree- score—is that, again, the hinge of his- of sanctions relief in hand, with little long-term ment with Iran on freezing nuclear enrichment tory turns. If you have an Iran with a benefit to show from this short-term accord. nuclear weapon, it won’t be just Iran. and relieving a portion of the sanctions that Yet, an agreement has been reached and You will explode proliferation. Saudi have been rightfully levied against Iran. we have to accept that as the reality at the Arabia will have a nuclear weapon. I think it is a positive step to have engaged moment. Nonetheless, I think it is important for Egypt will have a nuclear weapon. We Iran and to have reached a multilateral agree- the U.S. Congress to continue to pursue new will have a nuclear weapon most likely ment. Certainly, freezing their nuclear enrich- sanctions that are contingent on Iran’s abso- in Lebanon. And then at that point, ment, diluting the enrichment levels of Iran’s lute adherence to this agreement, and earnest what will happen with terrorist organi- uranium stocks, and reestablishing intrusive engagement towards a deeper, longer-term zations like Hezbollah, al Qaeda, the IAEA inspections are improvements over the agreement that further removes Iran’s nuclear al-Nusra Front, and on and on from current situation. capacity. We must make clear that there will there? The world changes. The hinge of However, while I appreciate the need for a be swift and severe consequences should Iran history turns. course of action that addresses the threat of deviate from the agreement. And, we must That is why this isn’t political. That a nuclear armed Iran, I maintain strong con- continue to aggressively counter their ter- is why it is bipartisan here tonight. It cerns about this agreement. rorism threat, meddling in the security affairs is why Mr. ROSKAM has taken this very Foremost, I have serious doubts about the of the region, and abuse of human and reli- important courageous step of holding amount of trust we can extend to Iran. Engag- gious rights. this time when Members of Congress ing in negotiations that merely freeze their nu- We must maintain a strong posture towards can weigh in, because we aren’t about clear enrichment is a far cry from Iran the Iranian regime, as they have done nothing bashing the Obama administration. foreswearing nuclear weapons, not to mention to earn the trust of the United States, or the That is not why we are here. We are their abhorrent support for terrorism in Iraq, western world in general. Iran remains a threat here because we believe in national se- Syria, Lebanon and beyond. We must recall to regional and global security, and we must curity—America’s national security, that this is the same fundamentalist regime not neglect or forget that. Israel’s national security—and peace that has supported the murder of Israelis in Implementing this agreement and pursuing across the world. That is Pax Ameri- Argentina, has cast doubt on the existence of any longer-term accord must be done with cana. America doing everything that the Holocaust, and that enabled attacks on open eyes to the real threat that Iran has been we can to be forward of keeping the American military personnel in Iraq and Af- and continues to be. peace in the world. ghanistan. f This action nearly guarantees war Amazingly, despite the supposed goodwill of and a threat of a nuclear strike. We the agreement, three Americans continue to CONGRESSIONAL PROGRESSIVE can prevent that. But the final deal be detained in Iran. I find it extremely regret- CAUCUS that comes out in these final P5+1 ne- table that the release of these Americans— The SPEAKER pro tempore. Under gotiations must be very simple: close Pastor Saeed Abedini, former U.S. Marine the Speaker’s announced policy of Jan- down the plutonium reactor, zero right Amir Hekmati and ex-FBI Agent Robert uary 3, 2013, the gentleman from Wis- to enrich for Iran, and zero processing. Levinson—was considered marginal to the nu- consin (Mr. POCAN) is recognized for 60 If you do that, then we will have a clear issue, and could not be addressed simul- minutes as the designee of the minor- deal. taneously while negotiations occurred in Ge- ity leader. Mr. ROSKAM. Mr. Speaker, we have neva. These Americans’ families are under- Mr. POCAN. Mr. Speaker, I rise had a discussion tonight that has been standably left in pain as they wonder about today on behalf of the Congressional

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00050 Fmt 0636 Sfmt 0634 E:\CR\FM\K04DE7.071 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE December 4, 2013 CONGRESSIONAL RECORD — HOUSE H7499 Progressive Caucus to talk about the ing. Something is wrong when in the type of a college education, an asso- engine of our economy—the American richest country in the world, full-time ciate degree or a bachelor’s degree or worker. The American worker is workers have to strike because they higher. And 56 percent of those low- known for their ingenuity, their work can’t afford their basic living expenses. wage workers are women. And yet the ethic, their drive, and their ability to When millions of Americans who work critics still persist with these myths get things done faster, better, and hard and play by the rules can’t sup- that somehow raising the minimum more efficiently than our competition. port themselves or their families, when wage will slow down hiring, especially But also, unfortunately, the American they live in poverty, we face an eco- for small businesses. worker is working harder than ever nomic crisis. Consumer spending goes Just last month, Speaker BOEHNER and they still aren’t getting ahead. down, deficits go up, and the gap be- was asked about the minimum wage The obstacles facing our workforce tween the small group of the very rich and he said: have never been greater. Too many and the large group of the very poor When you raise the price of employment, people are still unemployed or under- grows even wider. guess what happens, you get less of it. employed, too few possess 21st century Mark Zandi, a chief economist for He continued: skills needed by employers, and the Moody’s Analytics, recently said for At a time when the American people are workforce protections fought for by the economy to thrive, we need every- still asking the question, Where are the jobs? generations are under attack like one participating. Mr. Speaker, cor- why would we want to make it harder for never before. porate profits are thriving. The stock small employers to hire people? But tonight, the Congressional Pro- market is thriving. The top 10 percent Well, Speaker BOEHNER has a very gressive Caucus would like to focus on of the country are thriving. different experience than we have two issues promoting worker fairness: According to tax expert David Cay heard from experts across the country First, we want to ensure that we value Johnston, the top 10 percent earners and my experience as a legislator in and respect work through a fair wage; took in 150 percent of the increased in- the State of Wisconsin. Every single and second, we want to ensure that our come in this country between 2009 and time we raised the minimum wage in country pursues fair—not free, but 2011. In fact, 40 percent of the increased recent history in Wisconsin, more peo- fair—trade deals that ensure American income since 2009 went to the top 1 per- ple entered the workforce. It actually workers can compete on a level playing cent of the top 1 percent, those making created more jobs by offering that in- field. at least $8 million in 2011. creased wage. More people decided they Mr. Speaker, we are now in the big- But do you know who is not thriving? were willing to go out and work. The gest sales season of the year. Having Well, pretty much everyone else. Dur- same has been shown to be true at the already passed Black Friday and Cyber ing that same time period, incomes fell national level. Monday, businesses are relying on the for the bottom 90 percent of Ameri- I support raising the minimum wage, sales of the next month for their yearly cans, and the minimum wage continued as do Businesses For a Fair Minimum profits. But a major problem faces our to lose its value. This is not a sustain- Wage. So does the U.S. Women’s Cham- retailers this season. Too many people, able future for our economy. ber of Commerce and the American many of them employed by retailers As the President said today in a Sustainable Business Council. A num- themselves, do not make enough speech, the combined trends of in- ber of business organizations see the money to purchase the consumer goods creased inequality and decreasing mo- very key to helping fix the economy is that drive our economy. bility pose a fundamental threat to the to help raise that minimum wage. In It has been 4 years since minimum American Dream, our way of life, and fact, two-thirds of small business own- wage workers have received a pay what we stand for around the globe. ers across the country, according to a raise. Since that point, incomes of the Democrats proposed a solution, and poll by Greenberg Quinlan Rosner Re- top 1 percent have grown more than 31 we are honored to have the President’s search on behalf of Small Business Ma- percent, while CEO pay is 354 times backing. Congressman GEORGE MILLER jority, two-thirds of small business that of the average employee. Mean- of California and Senator TOM HARKIN owners across the country support rais- while, the minimum wage, in its real of Iowa have introduced the Fair Min- ing the minimum wage because small value, is at historic lows. Adjusted for imum Wage Act of 2013. This bill, business owners, like myself—I have inflation, the 1968 minimum wage was which already has 150 cosponsors in the owned a small business for 25 years— at $10.60 an hour in 2013 dollars, accord- House of Representatives, would gradu- understand two things. First, when you ing to the Bureau of Labor Statistics’ ally increase the minimum wage over 3 pay your workers with a decent wage Consumer Price Index. The minimum years from $7.25 an hour to $10.10 an and treat them with respect, you earn wage today is only $7.25. That comes hour, and it would be indexed in the fu- their loyalty. You get their hard work, out to approximately $15,000 a year for ture to increases in inflation there- and your business does better. That’s an individual and $30,000 a year for a after. why 85 percent of small business own- family with two parents. The typical I have already detailed the negative ers already pay their workers more big business CEO, who got a 16 percent effects of today’s unlivable minimum than the minimum wage. Second, small raise in 2012, got paid $15.1 million. wage; but if we pass the Fair Minimum business owners know that we need That person will make more in a cou- Wage Act, 30 million Americans would customers and we need people making ple of hours than a full-time minimum receive a pay raise. Thirty million enough money to afford the very prod- wage worker will make in an entire Americans would have more money in ucts and services that we sell. year. their wallets to support their families When you give a pay increase to the and therefore support our still-recov- people who need it the most, that b 1815 ering economy. And who are these 30 money goes directly back into the Making $15,000 a year working full million Americans, Mr. Speaker? Crit- economy and helps support a rising time is simply not enough to get by in ics charge that these are all a bunch of tide, lifting all boats in the economy. the United States. Think about the high school students trying to make a Sixty-five percent of small business cost of rent, food, transportation. little extra cash, get some work experi- owners agree that ‘‘increasing the min- These costs keep going up, but the ence, and if you raise the minimum imum wage will help the economy be- minimum wage does not. Is there any wage, you will take away opportunities cause the people with the lowest in- wonder why tomorrow Americans from young people. comes are the most likely to spend any across the country will strike at food Well, let me put that claim to rest. It pay increases buying necessities they stores for a livable wage. is a myth. Nearly 90 percent of the could not afford before, which will I joined one of these food strikes ear- workers who make the minimum wage boost sales at businesses. This will in- lier this year in Madison, and I was in- are 20 years or older. More than half crease the customer demand that busi- spired by the encourage of workers are over 25 years old, and 55 percent nesses need to retain or hire more em- when they spoke out and took the risk work full time. In other words, they ployees.’’ of losing their job in order to talk rely on minimum wage for their full- This is backed up by research, con- about the low wages they were receiv- time work; and 44 percent have some trary to what Speaker BOEHNER and

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00051 Fmt 0636 Sfmt 0634 E:\CR\FM\K04DE7.073 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE H7500 CONGRESSIONAL RECORD — HOUSE December 4, 2013 other critics will say. Extensive re- Let me read from another business passage of NAFTA. A recent report search refutes the claim that increas- owner specifically about raising the found that the U.S. actually experi- ing the minimum wage causes in- minimum wage. This is David enced a net loss of 700,000 jobs to Mex- creased unemployment and business Bolotsky, founder and CEO of Uncom- ico from NAFTA. As a small business closures. In fact, according to the Eco- mon Goods in Brooklyn, New York: owner myself, I have seen the number nomic Policy Institute, raising the Businesses don’t expect the cost of energy, of American-made products dwindle minimum wage would actually have a rent, transportation, and other expenses to that used to be available and made positive impact on our economy by in- remain constant; yet some want to keep the here in the United States. vesting those dollars right now in the minimum wage the same year after year de- The record on trade surpluses is economy when we need it the most. spite increases in the cost of living. That equally as damaging. The year before kind of business model traps workers in pov- NAFTA went into effect, we had $1.66 When we increase the minimum wage, erty and undermines our economy. The min- we raise wages for 30 million Ameri- imum wage should require that all busi- billion trade surplus in goods with cans, increasing salaries by $51.5 billion nesses pay employees a wage that people can Mexico. Last year, we tallied a $62 bil- over the next 3 years. live on. lion deficit. And just 1 year after the And that is not just helping the I have more and more stories from U.S.-Korea FTA took effect in March wages of people who make minimum small business owners who get that the 2012, our trade deficit in goods with wage, but for millions of Americans best thing we can do right now is pro- South Korea has increased by $5.5 bil- whose salaries are pegged to the min- vide the minimum-wage worker an in- lion, a 46 percent increase. Meanwhile, in countries from Mexico imum wage. That is extra earnings crease in pay, put that money into the to Colombia to Bahrain, promises of that could be put in our economy right economy, create those jobs, and let’s improved labor rights have instead now when we need it the most. We give a boost to what we need to most in been replaced with reports by Human could increase consumer spending at a America. time when weak consumer demand is But the second issue that we want to Rights Watch, Amnesty International, one of the biggest obstacles facing our address with the Congressional Pro- and the U.S. Department of State of economy. These extra earnings would gressive Caucus Special Order hour on continued, and oftentimes worsening, increase the gross domestic product by the American worker is a trade deal abuses. So with all of these examples behind $33 billion over the bill’s 3-year period, that is coming down the pike possibly us, and with our economy continuing generating 140,000 jobs. as early as the end of year, and that is So when we increase wages, we in- to recover slowly from the financial the Trans-Pacific Partnership. crisis, it should be our Nation’s pri- crease consumers’ ability to buy, which We have spoken a lot today about the ority to pursue transparent trade poli- increases the gross domestic product need to ensure workers receive a fair cies that promote American industry, and therefore increases jobs. At the wage for a hard day’s work, but we are protect American workers, and im- very worst, raising minimum wage has also concerned about another way our prove the economic interests of middle no effect on employment, but it does workers can get the short end of the provide a greater standard of living for class families across our country. stick, and that is with unfair trade But as I have mentioned before, the millions of American workers. That is deals that decimate American indus- why 80 percent of Americans support TPP is no better than the deals of the tries and ship jobs overseas. Unfortu- past, and it could even be worse. raising the minimum wage, including nately, we appear to have a massive, 57 percent of Republicans and 59 per- secret, and likely very harmful unfair b 1830 cent of self-identified conservatives. It trade deal on our hands. At this time, I yield to my colleague is a commonsense economic policy; and The Trans-Pacific Partnership, or the from the State of Connecticut (Ms. as a small business owner, I know it is TPP for short, is a NAFTA-style agree- DELAURO). She is the cochair of the a good business policy. ment between the U.S. and 11 other na- Steering and Policy Committee and The Senate will hopefully consider an tions that have been largely negotiated the ranking member on the Labor, increase by the end of the year, and I in secret, and seems to not just repeat Health and Human Services, Edu- encourage the people’s House to do the but perhaps worsen the mistakes made cation, and Related Agencies Appro- very same. in the past. priation Subcommittee. She is also a That is one issue that is really im- In fact, this coming week, TPP nego- long-time legislator and a hero of mine portant, but I want to just read a cou- tiators are going to meet again in in Congress. ple of quotes from business people spe- Singapore, and they plan to have a deal Ms. DELAURO. I want to say thank cifically about raising the minimum by the end of the year, in less than a you to my colleague from Wisconsin wage. Let me read a quote from Busi- month. That means we may be less and thank you for all of your efforts ness For a Fairer Minimum Wage di- than 30 days away from having a final and what you have been doing. It is an rector Holly Sklar who said: TPP deal, a deal that we have no idea honor for me to serve with you. The biggest problem Main Street busi- what it may contain. While we may not At the heart of soul of what your in- nesses face is a lack of customer demand. know what is in the bill, we do know terests are all about is what that chart With the Federal minimum wage stuck at $7.25 an hour, just $15,080 a year, workers what we have been promised, and it is reflects. It is about people who are now have less buying power than they did a similar to promises that people across making the minimum wage. What is half century ago in 1956, and far less than the country and in my State of Wis- their life about? What are we doing in they had when the minimum wage was $10.55, consin have been told before about terms of the policies that we create in a high point in 1968, adjusted for inflation. these massive trade deals, from this institution, which is an institution We can’t build a strong economy on NAFTA to CAFTA to the U.S.-Korea which historically has been about pro- downwardly mobile wages. It is time to raise Free Trade Agreement. viding opportunity? A drop in the min- America by raising the minimum wage. We have been told that free trade imum wage is not an opportunity for There are small business owners who would lead to increased U.S. jobs; it future success. Your characterization have said the exact same thing, who re- would reduce our trade deficits; it of the Trans-Pacific Partnership in cre- alize what we need to do with the econ- would boost our exports; and it would ating this kind of an effort is abso- omy. Camille Moran, owner of Caramor lead to improved human rights and lutely on target. Industries and 4 Seasons Christmas labor standards around the globe. Un- In terms of this agreement, next Tree Farm in Louisiana said: fortunately, almost every single one of week, as you know, the trade ministers A minimum wage increase is long overdue. those promises has gone unfulfilled. from 12 nations are going to meet in It is not right or smart for any business to In Wisconsin, we have seen the dev- Singapore. As U.S. trade negotiators pay a wage that impoverishes not only their astating effects of free trade agree- continue to push for this partnership, working men and women and their families, ments such as NAFTA to our local but also impoverishes our communities and the TPP agreement, they want to push our Nation. Boosting the wages of low-paid manufacturing industries and our jobs. to move it so that we can do something workers who could then purchase goods and In fact, according to the Bureau of by the end of this year. services they need is the best medicine for Labor Statistics, 5 million Americans You made a point before that this our ailing economy. have lost manufacturing jobs since the could have been a new opportunity. It

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00052 Fmt 0636 Sfmt 0634 E:\CR\FM\K04DE7.074 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE December 4, 2013 CONGRESSIONAL RECORD — HOUSE H7501 represented an effort to create some- both sides of the aisle, have not had authority to ‘‘regulate commerce with thing that was new, a sustainable that same access to the information in foreign nations’’ and write the Nation’s model that promoted economic devel- this trade agreement, and it is our con- laws. Over the last few decades, Presi- opment with shared prosperity. But, as stitutional authority as Members of dents have increasingly taken over you know, unfortunately the talks Congress to approve trade agreements. both of those powers through a mecha- have gone down the same road as pre- We cannot be frozen out any longer. We nism known as ‘‘fast track.’’ What it vious trade agreements: export of more are not going to tolerate that. does is erode Congress’ ability to shape jobs, not more goods; unsafe imports; We know, for example, that the the content of the free trade agree- and threats to the public health, agreement will likely lead to increases ment, which today, as I said again ear- among other things. You made that in U.S. imports of shrimp and other lier, clearly goes well beyond tariff clear. seafood from Vietnam and Malaysia. issues of the shaping of the trade The country lost more than 5 million Here is something I believe my col- agreement, but it then becomes—if you manufacturing jobs, millions of service league knows but others need to know: provide for fast track authority, then sector jobs since the North American In 2012, imported seafood products that means it comes to this body. My Free Trade Agreement, which I will from Vietnam were refused entry 206 colleague from Wisconsin knows this. tell my colleague that I was proud to times because of contamination con- He served in legislative bodies. We will vote against when that came before cerns while some exporters in Malaysia have no ability to amend, and you just this body, and the World Trade Organi- have acted as a conduit to transit Chi- come and you rubber-stamp it. No zation. Both of those went into effect, nese shrimp to the United States in more. No more. and we have seen the loss of more than order to circumvent both FDA import Under the recent iteration of fast 5 million jobs. alerts and antidumping duties. track—which expired, by the way, in Again, your point is well stated. When I said they had been stopped, 2007—U.S. trade negotiations required Wages in the United States have de- why have they been stopped? Filthy various stages of congressional con- creased and economic inequality is product, contaminated product, anti- sultation before and during the nego- something that is talked about a lot biotic-laced product putting in jeop- tiations. But even that minimal level today. It is not an abstract concept. It ardy the public health of people in the of congressional consultation has not is not an abstract construct. It is the United States. And rather than im- occurred with regard to the Trans-Pa- result of public policy that has fostered proving food safety enforcement and cific Partnership treaty, which is why economic inequality in the United regulations in partner nations, the myself and so many of my other col- States, and that has increased as a re- agreement may lead to a drain of re- leagues from both sides of the aisle, in- sult of these past trade agreements. sources needed to ensure that food cluding my colleague from Wisconsin The recent trade agreement with safety at agencies like the FDA are (Mr. POCAN), have made it clear that Korea reinforced why we cannot con- called in to resolve these disputes with the 20th century fast track and its lack tinue to do more of the same. In its other countries. The agreement may of any meaningful input from Congress first year, U.S. exports to Korea even undermine critical U.S. food safe- in the formative stages of an agree- dropped 10 percent as imports from ty regulations. ment is not appropriate for the 21st Korea increased. The trade deficit with We also know from the recently century trade agreements like the Korea exploded by 37 percent in just 1 leaked text that U.S. trade nego- Trans-Pacific Partnership. More fast year, which equates to a net loss of ap- tiators—I say ‘‘recently leaked’’ be- track is a nonstarter. proximately 40,000 more U.S. jobs. Why cause we don’t have access to the infor- What we need to do is to create a 21st in an economy that is so difficult for mation. We are not able to come in and century mechanism to negotiate ap- people today are we embarking on pub- have people lay it out for us. proved trade agreements that ensure lic policy initiatives that increase lost We now know from the leaked text that they benefit more Americans. jobs, lost wages, more economic uncer- that U.S. trade negotiators are pro- Don’t decrease their wages. Don’t de- tainty, and insecurity for families in posing unbalanced intellectual prop- crease the minimum wage. Give them a the United States? It is wrongheaded. erty provisions that are going to fighting chance to help themselves and There is no reason to believe that the hinder our trading partners’ access to their families. We cannot approve a Trans-Pacific Partnership deal will not safe and more affordable drugs. This is Trans-Pacific Partnership agreement be the same kind of a raw deal for U.S. not only going to raise the price of that continues to follow the same workers and more as this agreement medicines overseas, preventing mil- failed trade template that has hurt would be unprecedented in scope. lions from getting the medical care working families for so long, that jeop- The President himself has com- that they need, but it limits the ability ardizes our public health here and mented that the pact would establish of United States companies exporting abroad, and that creates binding poli- rules that extend far beyond tradi- these drugs to grow internationally cies on future Congresses that we had tional trade matters to include ‘‘a and to generate more jobs at home. no input in creating. whole range of new trade issues that Incredibly, even as the administra- If we are to uphold the trust of our are going to be coming up in the fu- tion is proposing to lower drug costs constituents, for them, for this econ- ture: innovation, regulatory conver- for consumers here in the United omy, for our country, we need to do gence, how we are thinking about the States by proposing in its budget to better, and the content and the process Internet and intellectual property.’’ modify the length of exclusivity on of the Trans-Pacific Partnership does The agreement will create binding brand name biologics from 12 to 7 not allow us to do better by our con- policies on future Congresses in numer- years, our trade negotiators are de- stituents or the great people of the ous areas to include those that are re- manding 12 years of data exclusivity United States. This is a treaty that lated to labor, patent and copyright, from our trading partners, denying needs to be restarted. Instead of being land use, food, agriculture and product their people quicker access to more af- brought up and finished by the end of standards, natural resources, the envi- fordable drugs. the year, we need to restart the effort, ronment, state-owned enterprises, and How can the United States be in that have congressional input, and do some- government procurement policies, as business? It is morally unacceptable thing that will help to make a dif- well as financial, health care, energy, that people overseas will have less ac- ference in the lives of the people that telecommunications, and other service cess to lifesaving drugs. That is not we serve. sector regulations. This is a treaty who we are as a Nation. That is not I thank the gentleman for having that goes beyond tariffs. The scope is, where our values lie. this Special Order to focus on this as I have outlined, unbelievable. These and other critical areas are issue. I know that he will, as I will, We also know that the lack of trans- being negotiated without sufficient continue to try to make clear to the parency on this treaty is unbelievable. congressional consultation, even public what we are talking about, what It is interesting to note that industry though, as I mentioned, under the Con- is in this legislation, which is not has had great access to the process and stitution, the Congress, not the Execu- going to benefit themselves and their what is going on. Members of Congress, tive, has the exclusive constitutional families. That is something that I

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00053 Fmt 0636 Sfmt 0634 E:\CR\FM\K04DE7.076 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE H7502 CONGRESSIONAL RECORD — HOUSE December 4, 2013 know that you are committed to and I years of advocacy for the American cussions on our economy and our work- am committed to, as well. And we are worker and your continued strong pas- ers, once again, there is word that we going to continue this battle. As far as sionate advocacy on behalf of the are hearing they are going to try to I am concerned—I won’t speak for American worker. Thank you. fast track this through Congress. And you—we are not going to make that One of the things that, as we talked that simply is not acceptable. end-of-the-year treaty. There are going about the various provisions, there are Given all the lingering questions that to be many roadblocks before that oc- literally over 20 chapters that involve we have out there on the Trans-Pacific curs. everything from labor conditions, the Partnership, I firmly believe that rush- I thank the gentleman for allowing environment, procurement, food safety, ing this bill through Congress is both me to participate in this Special Order intellectual property, on and on. This dangerous and irresponsible. tonight. is a wide, wide variety of topics that Just earlier this year, I led a letter, Mr. POCAN. Thank you, Representa- are covered in the trade deal. with 35 other freshman Democrats, ex- tive DELAURO, not only for your long And the fact that Congress could pressing similar concerns about trans- history of standing up for the Amer- maybe lose its say through a fast track parency and making sure that we have ican worker and trying to get fair agreement would be completely egre- a bill, a trade deal that is in the best trade and not just free trade, but also gious because we are elected by the interest of our constituents, our work- for really giving a strong explanation people. We have to represent our con- ers. about the problem with food coming stituents and make sure we defend that Madam Speaker, our job in Congress into our country. worker in our district. is to represent the people who sent us Ms. DELAURO. The food issue is su- If you take away Congress’ voice, here. It is not our job to represent the preme, and this usually stays under the that is wrong. Whether it is done by a interests of foreign corporations or radar. We are bringing it to the fore. Democrat or a Republican, we must CEOs who want to find the cheapest Mr. POCAN. And medicine. Much less have our say. labor they can to increase their profit labor standards. We know in Vietnam People will say that somehow we are margins, and it is not our job to sit on the wage is 28 cents an hour. That is 4 anti-trade. We are, in fact, very much the sidelines while more bad trade percent of our currently already low pro-trade. We just want it to be fair deals get passed through this body. minimum wage. To think that some- trade. We want it to be drafted care- We have a responsibility to the how we can have fair trade with a fully and correctly, and I believe you American worker to ensure that they country that has 28 cents as minimum can do that. can compete on an even playing field wage, that the factories have violated But when you have an agreement with workers across the world. If we safety requirements eight out of 10 like we have seen with past agreements compete on an even playing field, we times they have been inspected, that and what we expect so far to see in the will always win. We have the work workers routinely fail to get the min- TPP from some of the leaked text, it ethic. We have the ability to do that. imum 4 days a month of rest. looks again that the interest of global But unless we are given that equal b 1845 corporations will be ahead of the good opportunity, the American workforce This is not a trade partner that you of the American worker. cannot be treated in a fair and sustain- can have in a trade agreement that is There are situations where a foreign- able way. They can’t compete when going to at least raise the level for owned business could have more power their jobs are shipped overseas, or their American workers. It can only lower than our own sovereign courts on wages get driven down so low that they the level. issues, and where Buy American poli- face almost unlivable conditions. And another concern I know you and cies can be undermined, where corpora- We can and must do better for our I have had, Representative DELAURO, tions can be incentivized to move their workforce. We can raise the minimum has been on procurement and what ex- production offshore, and it can engage wage. We can pass job-first trade deals. actly is in this agreement on procure- us in a race to the bottom on worker We can invest in our workforce ment. I was an author, when I was in protections, wages and rights. And the through education and job-training the State Legislature in Wisconsin, of American worker gets left behind. programs that prepare the American Buy America laws, to make sure that We simply can’t do that. We need to people for the challenges of the 21st our tax dollars went to goods that sup- make sure that Congress has every pos- century. ported American workers. sible say in a trade agreement, espe- That is what the Congressional Pro- The very language that has been in cially something as wide as the Trans gressive Caucus is committed to doing, these trade agreements could take Pacific Partnership can include. and that is what I am committed to away our ability to have Buy Local and We need to know what is in these doing. That is why I encourage the en- Buy American laws, and we need to laws; and if you think about it, we tire body to help us move forward. change that. don’t know that. You just heard Rep- Madam Speaker, the Congressional So, again, thank you so much for resentative DELAURO and me, who have Progressive Caucus has done the best your efforts on this. We are going to been following this issue, we don’t even we could tonight to try to raise—— work with many other colleagues on know exactly what is being negotiated Mr. POLIS. Will the gentleman both sides of the aisle to do what we in this agreement. yield? can to defeat this fast track. So we have a lot of questions, and we Mr. POCAN. I yield to the gentleman Ms. DELAURO. I think it is impor- have very few answers. from Colorado. tant to note that there is bipartisan Does the agreement do anything to Mr. POLIS. I will be happy to talk support in opposition to a fast track tackle currency manipulation? We about TPP for a moment. I have some authority unless it gets changed to in- don’t know. time coming up on a different topic. clude congressional input, as well as bi- Does it include enforceable environ- But one of the issues around it has partisan support in opposition to this mental and labor standards? We don’t been the secrecy under which it has trade agreement for what it does, be- know. been negotiated. I actually, some cause people being hurt don’t have a And how much does it deal with the months ago—to show that these are party label. blatantly non-trade items from, food not just partisan concerns—sent a bi- The minimum wage, the drop in the safety to financial regulations to Inter- partisan letter, with DARRELL ISSA, re- minimum wage, affects Democrats, Re- net freedom? questing that there is more trans- publicans, Independents. I don’t care Once again, the answer is we don’t parency about this process. where you are and who you are, it is af- know. I have had the opportunity on three fecting your life and the life of your Yet, despite all these unanswered occasions to review the text in my of- family. questions, despite the fact that most fice. My own staff wasn’t allowed to So I thank the gentleman again and Members of Congress have barely got- even be there with me. look forward to our continuing efforts. ten a chance to see leaked portions of The American people are unable to Mr. POCAN. Thank you again, Rep- the agreement, and despite the fact execute the proper oversight over resentative DELAURO, for your many that this deal will have lasting reper- something that is of great economic

VerDate Mar 15 2010 02:46 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00054 Fmt 0636 Sfmt 0634 E:\CR\FM\K04DE7.077 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE December 4, 2013 CONGRESSIONAL RECORD — HOUSE H7503 importance to our country because of Erika Andiola. I had the opportunity In my State of Colorado, according to the secrecy under which it is being ne- to meet Erika and her mother today, the 2011 census, over 11 percent of our gotiated. and I hope that her story will inspire workforce is comprised of immigrants. Mr. POCAN. Thank you, Representa- this body to finally reform our broken Among them, unauthorized immigrants tive POLIS from Colorado. Again, you immigration system. comprise nearly 5 percent of Colorado’s have been an outstanding advocate on Erika wrote this letter to many of workforce. That is according to a study behalf of the American worker. her friends, including some of your by the Perryman Group. And I too did the exact same thing. I staffers, Madam Speaker, just the If we were to remove unauthorized looked at sections of this, and my staff other day about why she is leaving: immigrants from Colorado tomorrow, weren’t allowed; but even more trou- Dear friends, today is my last day on the our State, my State, would lose $8 bil- bling, I wasn’t allowed to take notes Hill. While ‘‘last day on the job emails’’ are lion in economic activity, $3.6 billion about the language of these agree- customary, I wanted to share the unfortu- in gross state product, and it would ments. nate reason I am leaving. A few days ago, I cost our State almost 40,000 jobs for But from what I saw in the agree- informed my boss I would be leaving my job Americans that would be destroyed if ments was definitely no better than on Capitol Hill to return home to Mesa, Ari- zona, and fight against efforts to deport my we didn’t have the people that are in past agreements and very likely could mother. Colorado today already working and be worse when it comes to labor stand- After a year as a congressional staffer, dur- simply lack a legal way to do that that ards and when it comes to our procure- ing the push to bring millions of people out only this body can fix. ment policies allowing us to have Buy of the shadows in the U.S., I am now needed Nationwide, the millions of undocu- American laws. most as a daughter to my mother. mented immigrant workers are often So the Congressional Progressive In many ways, my life represents a broad marginalized and exploited. In many Caucus today really wanted to high- spectrum of experience for undocumented young people in our country. I am facing the cases, they have harvested our Thanks- light the American worker. And the most painful aspect of the record-setting de- giving dinners. They have harvested two issues that we wanted to highlight portations of the Obama Administration: our onions, packed our tomatoes, per- tonight, one was the need to raise the family separation by deportation. haps cleaned your hotel room, Madam minimum wage, something we expect My home was raided by ICE on the same Speaker, or mine, washed our dishes. the Senate may be taking up yet this date I began my work in Congress. The raid Yet, their immigration status means year, and that we hope this body will stemmed from a traffic stop. While ICE is that when unscrupulous employers try take up. And let’s raise that minimum supposed to prioritize deportations for vio- to take advantage, they often lack a wage to $10.10, just like the proposal lent crimes, they decided to go after my mother, who has never committed a violent voice to stand up for stable and fair that we have before Congress. crime. working conditions or to report crimes. Secondly, let’s make sure we have Families being separated is nothing new. Undocumented workers around our fair trade deals, not just free trade, but The administration is currently nearing the country engage in difficult, dangerous fair trade deals that protect the Amer- 2 million deportation mark. Behind that work under the harsh conditions. They ican worker, protect the environment, number is an even larger number of families, often live in fear of detention or depor- protect our businesses around intellec- like my family, being left behind. tation. tual property and other concerns. We I had the opportunity to meet Erika b 1900 can do that. And the Congressional Andiola and her mother earlier today, Progressive Caucus will continue to do and I can tell you we will miss her Consider the example of a worker in that. service in this body for the Member she Nashville who, while cleaning the res- Mr. Speaker, I yield back the balance worked for. She has her legal status, taurant where she was employed, cut of my time. thanks to President Obama’s Deferred herself, yet her managers refused for 4 f Action program, or DACA, that allows hours to take her to the hospital. Even her the paperwork to work, again a re- after receiving medical treatment, her IMMIGRATION REFORM sult of the inaction of this body, that employer refused to pay any of the The SPEAKER pro tempore (Mrs. the Executive had to take action, with costs for an employment-related in- WALORSKI). Under the Speaker’s an- the limited authority he has, to at jury. And the injury caused her a per- nounced policy of January 3, 2013, the least give a temporary reprise to manent handicap, with limited mobil- Chair recognizes the gentleman from Erika. But no such help for her mother. ity in her hand. Colorado (Mr. POLIS) for 30 minutes. And who among us wouldn’t, if forced Or consider the case of Raul, a North Mr. POLIS. Madam Speaker, I am to choose between our job and our fam- Carolina farmworker who lacks docu- here today, unfortunately, to talk ily, who wouldn’t choose our family? mentation. Raul shares a room and about the continuing inaction of this As Erika returns home to Arizona, I dirty and freezing bathrooms and show- body on immigration reform. It has wish her and her mother well and good ers with six others. Raul rises every been 159 days since the Senate passed a luck in ensuring that they can stay to- day to provide for his family and give commonsense immigration reform bill gether in a country that I hope values them the life he never had. Because his securing our borders, creating jobs for families, just as it valued Erika’s serv- family is in another country, he hasn’t Americans, restoring the rule of law, ice to her country as a congressional seen his children in 5 years and misses requiring employment verification, staffer. them terribly, but his immigration sta- uniting families. And this body has I encourage everyone to share tus prevents him from even visiting his failed to act. Erika’s story and to get involved at family back home and being able to re- The House’s failure to act on immi- keepustogether.org to help keep turn to his job here. gration reform has already cost our Erika’s family together. Or consider the case of Guadalupe economy over $6 billion. Today, Madam Our inaction on immigration reform Hernandez, a returned migrant and Speaker, I want to talk about the has also impacted our immigrant work- former undocumented farmworker who human cost as well. force, a critical part of our economy. came to the U.S. at the age of 12 and In the week following the Thanks- Roughly 16 percent of all workers in has been back and forth three times giving holidays, I want to recognize the U.S. are foreign born, in diverse since. Guadalupe endures working for those individuals that are suffering be- sectors from agriculture to informa- 12 to 14 hours a day at minimum wage cause of our inaction, families that are tion technology to hospitality to self- in order to provide for schooling for her torn apart, immigrant workers so crit- employed entrepreneurs. five children. ical for our economic success, living in As the Aspen Institute’s November So while Congress is working 113 the United States, who even helped put series of ‘‘Working in America’’ noted, days next session, 113 days next year— our Thanksgiving dinners on the table the experience of immigrant workers that is how much we will be here. I this year. varies significantly. Some achieve sure hope it is enough time to reform I want to begin by telling the inspir- great success, while others are em- our immigration system. So while Con- ing story of a Capitol Hill staffer, ployed in low-paying and substandard gress is working 113 days, the average sadly, a former Capitol Hill staffer, working conditions. undocumented farmworker’s workload

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00055 Fmt 0636 Sfmt 0634 E:\CR\FM\K04DE7.078 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE H7504 CONGRESSIONAL RECORD — HOUSE December 4, 2013 is close to 200 days a year squeezed into you were of Irish descent, you were our oranges and vegetables. They are 36 weeks of seasonal work, working treated badly; if you were Russian, you pretty good, but they are not Amer- double shifts to be able to put food on were treated badly; if you were Chi- ican-made. our tables for Thanksgiving. nese, you were treated badly; if you Immigrants contribute to our econ- While Congress works an average of 3 were Eastern European, you were omy through taxes. The State and days per week and Members of Con- treated unfairly. local taxes paid in 2010 alone by house- gress earn $3,500 a week, undocumented Unfortunately, what we have had in holds headed by undocumented immi- workers work 53 hours a week at an av- our country are phases where one par- grants was over $11 billion. And this is erage salary of $318 a week. ticular person who looks a certain according to the Institute on Taxation In the time it takes Congress to hold way—and especially when you think and Economic Policy. Undocumented our first vote in a series of votes—15 after 9/11—that people are treated dif- immigrants contributed as much as $13 minutes, how long it takes people to ferently. And the problem that I have billion in payroll taxes to the Social come here and cast their vote—the av- with that is that that is not the Amer- Security program in 2010 but only took erage immigrant worker has picked ica I was born into, and that is not the $1 billion in benefits, creating a net four 30-pound buckets of grapes. America that I want to represent, and positive effect on our Social Security Our current immigration system has that is not the America that is going system that benefits Americans, and allowed the situation to persist and to make this country prosper. this is according to the Social Security worsen. The current system lacks a Immigrants make up a critical com- Administration. pathway to citizenship without a fam- ponent of the American labor force. Despite their contributions, immi- ily member who is already a U.S. cit- Immigrants accounted for nearly one- grants face exploitation and significant izen or permanent legal resident. Even half of the U.S. labor force growth barriers to advancement; and again, legal guest workers under our current since the mid-1990s. Immigrants con- that is not the America we should feel immigration laws are subject to work- tribute to innovation, business cre- proud of. place abuse, are poorly paid, often risk ation, and job creation. Immigrants are We have an opportunity to pass com- having their identity documents seized, more likely than native-born Ameri- prehensive immigration reform in this and often live in reprehensible living cans to start their own businesses. great country on this floor. All we need conditions. Immigrant-owned businesses em- is the opportunity to put a bill up for H–2 guest workers, low-skilled sea- ployed 4.7 million Americans in 2007 a vote. And I believe that the majority sonal jobs, are bound to employers who alone. In 2011, immigrant businesses of Members of this House will do the hire them and can’t even search for were estimated to generate $775 billion righteous thing, the right thing, and other work. They are often overloaded in revenue, $125 billion in payroll, and welcome those immigrants and inte- with debt because of the fees that re- $100 billion in income. grate them into our system; and we cruiters charge to bring them from Immigrants also help to slow the will see the economy of the United their own country and arrange for aging of our labor force and the cor- States of America flourish once again transportation. responding economic burdens that like we all want it to, like we hope it Comprehensive immigration reform come with that. should, and how we all deserve to see would protect American workers by Immigrants make up a critical com- happen. For example, immigrants of legal preventing unauthorized immigrants ponent of America’s agricultural indus- status earn 10 percent more than those from undermining wage and safety try, in particular. That is what brought who are undocumented, again, boosting laws and protecting U.S. workers’ my father to this country. He worked the economy. Comprehensive immigra- rights. in the fields in the Central Valley of tion reform would allow immigrant H.R. 15, the bipartisan comprehensive California so that my mother could students—DREAMers, as some of us immigration reform bill I am proud to stay home and raise, eventually, the 11 call them—to gain a greater earning have helped introduce in the House, children that they had together. About boost as more are able to attend col- would provide relief and help to all 77 percent of the farmworker labor lege and become productive members workers. The bill is similar to the Sen- force is foreign-born, like my father, of our labor force. Comprehensive labor ate’s immigration reform bill that and at least one-half of the farm- reform would allow undocumented en- passed with more than two-thirds of workers are undocumented. trepreneurs the ability to expand their the Senate support, including agri- Farmworker work is one of the most businesses and hire American citizens. culture, business, labor, tech, and hazardous occupations in our country When we look at how important im- many others in a broad-based coalition. and in the world, and many of these migrants are to our economy, it comes We are joined here on the floor by a jobs would go unfilled without immi- as no surprise that when we help immi- champion of immigration reform, a grant workers. grants succeed, America succeeds. Our Member of the House from the great That is another thing that my father country is built on the backs of immi- State of California. It is my honor to wanted for me. He worked in the fields grants from Europe, from Africa, from yield to the gentleman from California tirelessly. His hands would bleed so the Americas, from Canada, from every (Mr. CA´ RDENAS). that we, Americans, could have fresh ´ part of this world. We are the country Mr. CARDENAS. I thank the gen- fruits and vegetables on our table. But where dreams come true. We are the tleman for yielding. he dreamed that his children, Amer- country where freedom rings true. Madam Speaker, I want to just ex- ican-born children, could actually go to But right now, 11 million human plain some facts to my fellow Ameri- college and surpass his dreams, as he beings do not enjoy those freedoms, yet cans. I want to remind us that immi- only had a first grade education in the they are here toiling, working, and we grants contribute tremendously to our country that he came from. are benefiting from that. And that is a economy as workers, taxpayers, and With the help of immigrant farm- shame. We are better than that, Amer- consumers. But despite their contribu- workers in America, the value of U.S. ica. We deserve an opportunity to see tions, immigrants face exploitation agricultural exports rose 2.5 times be- this legislative body vote on com- and significant barriers to advance- tween 1989 and 2009, and exports of prehensive immigration reform. ment in our country. When we look at high-value agricultural products, in- And I will say it once again: If we how important immigrants are to our cluding fruits and vegetables, more don’t do it because it is just the right economy, it comes as no surprise that than tripled. thing to do, let’s do it for the selfish when we help immigrants succeed, we America, it is really important for us reason that it will boost the economy help our economy succeed. to understand, when we don’t welcome of the United States of America more And one of the things I want every- those hardworking immigrants to be than we have seen in over 50 years. body to remember, as I speak for the part of our integrated workforce, what Mr. POLIS. One of the ways that H.R. next few minutes, is that at any given happens is that places like Argentina, 15 was actually brought to the floor of time in our great Nation’s history, who would love to compete with us, the House and introduced was by the somebody in your ancestry was treated they laugh at us, and they say, We will chief sponsor of the bill. The gen- less-than. There was a time where if sell you our products. We will sell you tleman from Florida, in his short time

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00056 Fmt 0636 Sfmt 0634 E:\CR\FM\K04DE7.080 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE December 4, 2013 CONGRESSIONAL RECORD — HOUSE H7505 in the House, has made an enormous in the United States, like her brother. H.R. 15 from coming to the floor? Will impression, and particularly in pushing While she eventually was granted de- the Speaker understand that? for comprehensive immigration reform. ferred action, both of her parents have The SPEAKER pro tempore. The gen- H.R. 15, which is very similar to the been deported. tleman will suspend. Senate bill—and if we were to pass it in Mr. POLIS. Will the Speaker under- b 1915 this body, it would be able to be rati- stand that? Will the Speaker under- fied with the changes and sent to the Neither were criminals. In fact, her stand that? President’s desk—continues to gain father owned a small business. The SPEAKER pro tempore. The gen- support in this body. And I am happy There are millions of Joses and tleman may proceed. to yield to its principal author, the Lourdeses and Secias. They grow our Mr. POLIS. Will the Speaker under- gentleman from Florida (Mr. GARCIA). food, they build our homes, and they stand that the Speaker is preventing Mr. GARCIA. I thank the gentleman care for our families. They often work H.R. 15 from coming to the floor, and from Florida. at jobs that no one wants and start that is why there are men and women Madam Speaker, I don’t know of any businesses that create jobs when there in the gallery that potentially face de- other district in the United States that were none before and in areas where portation and their families are being more clearly shows the economic con- they are needed most. torn apart. tributions of immigrants than my own. Our Nation would not be the society It is very simple, Madam Speaker. You see it everywhere, from the lan- it is today without the generations of Very simple. We need an immigration guages spoken on the street to the di- immigrants who came to our shores system that reflects our values as verse businesses on every corner. searching for a better life. The 11 mil- Americans—a Nation of immigrants Miami is a town built by immigrants. lion undocumented individuals living and a Nation of laws. One that creates It is a perfect example of what happens here today are no different. They are jobs for Americans; one that reduces when, instead of forcing people to live American in every way but on paper. our deficit by over $200 billion; secures in the shadows, you welcome immi- If we want to secure our economic fu- our border; prevents terrorists from en- grants and you allow them to work and ture, we need to fix our broken immi- tering our country so we know who is become valued members of the commu- gration system in a way that addresses here; and ensures that crimes are re- nity. our need for immigrant workers and ported. We can do that, Madam Speaker. Over the last 50 years, south Florida recognizes the incredible sacrifices and And I have heard it said that perhaps has seen unprecedented growth and has hard work that immigrants endure. some prefer to do it piecemeal. Let’s become the gateway to Latin America Jose, Lourdes, and Secia have waited see what the pieces are and let’s have a and its economy. None of this—none of long enough. The time to pass immi- meal. That is what the Thanksgiving this—would be possible without the gration reform is now. spirit is all about. We will be happy to hard work of immigrants who came to If the gentleman from Colorado look at the pieces. Let’s see them. my community searching for the would permit, I also want to recognize In fact, the Judiciary Committee has American Dream, just like my parents those folks who labor in my commu- reported out four bills. Those bills did. I would like to share a few of their nity at this a long time. They spend aren’t perfect, by any means; but stories. enormous hours and effort trying to through the Rules Committee and the Jose lives in Homestead. It is an area pass this. From our communities they amendment process on the floor, I hope in my district that produces nearly come here and make a difference. We that we could potentially make them half of the winter vegetables consumed thank them. Some of them are in the part of a bill. But those four bills have in the entire United States. He came to audience today. I appreciate their languished. this country in 1986 and, despite his work. Among them, Nora Santiago, has In the meantime, other bills that best efforts, was unable to gain status. done a wonderful job for years, not have come through the Judiciary Com- Even after suffering from a workplace only in moving the issue but in caring mittee, for instance, an asbestos bill, accident that resulted in his finger for some of these children that get left found a fast track to the floor. Patent being amputated and another in which behind when their parents get de- reform, fast track to the floor. Four he injured his back and arm, he still ported. immigration bills passed out of com- wakes up every day at 5 a.m. to do With that, I yield to the gentleman mittee. Weeks go by, months ago by, whatever needs to be done on the farm, from Colorado. and nobody hears a thing. from cleaning to planting to packing. The SPEAKER pro tempore. All Why aren’t we considering those Jose’s wife was deported. He is now the Members are reminded that it is not in bills, Madam Speaker? primary breadwinner for his family. order to bring to the attention of the Even I support this patent bill that Both of his parents died in Mexico. He House an occupant of the gallery. we will be voting on tomorrow. But was unable to say good-bye. Jose does Mr. POLIS. Madam Speaker, the even from our friends in the tech com- his job, pays his taxes, and serves as an gentle people in the gallery, the men munity, job creators, major companies, advocate and mentor for other farm- and women who are spending their they like this bill, in many cases. But workers, but our immigration system time here, would not have to be in you know what they really want? Im- has done nothing but turn a blind eye those galleries advocating if this House migration reform. They will say, Fine, to his sacrifice. simply took up the bill. you helped us out finding a few patent Lourdes started working in the fields Do you think they want to be spend- trolls. Now get immigration reform at the age of 10, picking asparagus, to- ing their time here, Madam Speaker? Is done, because we will be able to create matoes, and cucumbers all over the that what you think, they want to be jobs for Americans. east coast. Despite having to drop out spending their time here in the gallery, That is what we are here for, Madam of high school because of the work and probably traveling at their own ex- Speaker: uniting American families, the constant moving, Lourdes eventu- pense to Washington? creating jobs for Americans. ally was able to complete her social And you are saying we are addressing We do that, Madam Speaker, by pass- work degree 20 years after she started, them, and that is what you are upset ing H.R. 15, by passing pieces and hav- and all of her children have been able about, Madam Speaker? ing a meal, however you want to do it. to go to college. Last year, she was rec- I want you, Madam Speaker, to ad- In fact, how about we invite our friends ognized by the White House as a cham- dress the reason that they are here. from across the aisle, Republicans, to pion of change and is now an advocate They are here because our government join us here next week to talk about for the farmworker community and is a is tearing apart their families, Madam immigration reform and a path for- proud champion of immigration re- Speaker. ward? form. The SPEAKER pro tempore. Will the We have been down here every week And finally, I want to talk about gentleman from Colorado understand since the Senate passed comprehensive someone who is sitting in the gallery, all Members—— immigration reform demanding the Secia Soza. Until the age of 8, she had Mr. POLIS. Will the Speaker under- House bring up pieces or bring up com- always assumed that she had been born stand that the Speaker is obstructing prehensive immigration reform, and we

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00057 Fmt 0636 Sfmt 0634 E:\CR\FM\K04DE7.081 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE H7506 CONGRESSIONAL RECORD — HOUSE December 4, 2013 invite our Republicans friends to dis- Americans know how the middle Protection Agency, transmitting the Agen- cuss this with us. class has been shrinking, how incomes cy’s final rule — Approval and Promulgation There is no Democratic or Repub- have been shrinking, how production of Air Quality Implementation Plans; New lican solution. This takes us working from coast to coast has been York; Determination of Clean Data for the together for an American solution. We 1987 PM10 Standard for the New York County outsourced. Area [Docket No.: EPA-R02-OAR-2013-0618; know that, Madam Speaker. H.R. 15 is I associate myself with the remarks FRL-9903-24-Region-2] received November 26, not a Democratic bill or Republican with the Special Order this evening 2013, pursuant to 5 U.S.C. 801(a)(1)(A); to the bill. It is a bipartisan bill, with prin- that calls on the administration to re- Committee on Energy and Commerce. cipals from both parties. More than balance our trade accounts. They could 3985. A letter from the Director, Regu- two-thirds of the Senate support its take up a bill that I have authored to latory Management Division, Environmental commonsense approach. rebalance America’s trade accounts Protection Agency, transmitting the Agen- We can improve upon the pieces and cy’s final rule — Approval and Promulgation and take a look at all of these nations of Implementation Plans; Florida: General have a meal, or we can pass com- with which we have amassed these prehensive immigration reform to re- Requirements and Gasoline Vapor Control; huge, huge deficits while our produc- Correcting Amendment [EPA-R04-OAR-2012- flect our values as Americans and cre- tion is being outsourced. 0385; FRL-9903-23-Region 4] received Novem- ate jobs for Americans and protect our Madam Speaker, let’s table the ber 26, 2013, pursuant to 5 U.S.C. 801(a)(1)(A); borders. Trans-Pacific Partnership deal. Let’s to the Committee on Energy and Commerce. The longer that we fail to act, the table fast track and develop a brand- 3986. A letter from the Director, Regu- latory Management Division, Environmental more men and women will have to be in new trade model that benefits the these galleries here, Madam Speaker— Protection Agency, transmitting the Agen- United States of America and its peo- cy’s final rule — Metaldehyde; Pesticide Tol- perhaps against your wishes—will have ple again so their incomes can rise. to be fasting; will have to quit their erances [EPA-HQ-OPP-2012-0706; FRL-9399-8] jobs working in Congress, like Erika, f received November 26, 2013, pursuant to 5 U.S.C. 801(a)(1)(A); to the Committee on En- because her mother is facing deporta- LEAVE OF ABSENCE ergy and Commerce. tion. By unanimous consent, leave of ab- 3987. A letter from the Director, Regu- Is that the America we want when we sence was granted to: latory Management Division, Environmental look at ourselves in the mirror? Protection Agency, transmitting the Agen- Mr. GINGREY of Georgia (at the re- Madam Speaker, is that what we are cy’s final rule — Electronic Reporting Under quest of Mr. CANTOR) for today and the proud of as Americans? Is that our val- the Toxic Substances Control Act [EPA-HQ- balance of the week on account of a ues? Are we proud that a young, tal- OPPT-2011-0519; FRL-9394-6] (RIN: 2070-AJ75) death in the family. ented staff person like Erika, working received November 26, 2013, pursuant to 5 Mr. RUSH (at the request of Ms. on behalf of her country for her Con- U.S.C. 801(a)(1)(A); to the Committee on En- PELOSI) for December 2 through De- ergy and Commerce. gresswoman here in the United States cember 5 on account of attending to 3988. A letter from the Director, Regu- Capitol has to quit her own job because family acute medical care and hos- latory Management Division, Environmental our own government is deporting her Protection Agency, transmitting the Agen- pitalization. own mother, who hasn’t committed cy’s final rule — Octadecanoic Acid, 12-Hy- any criminal or violent crime? It might f droxy-, Homopolymer, Ester with 2- have cost the taxpayers tens of thou- ADJOURNMENT Methyloxirane Polymer with Oxirane sands of dollars for deportation and at Monobutyl Ether; Tolerance Exemption Ms. KAPTUR. Madam Speaker, I [EPA-HQ-OPP-2013-0526; FRL-9903-18] re- the cost of tearing a family apart and move that the House do now adjourn. ceived November 26, 2013, pursuant to 5 preventing Erika from offering all that The motion was agreed to; accord- U.S.C. 801(a)(1)(A); to the Committee on En- she had to give to our great country. ingly (at 7 o’clock and 25 minutes ergy and Commerce. We can do better, Madam Speaker. 3989. A letter from the Director, Regu- p.m.), under its previous order, the We can do better by the handful of peo- latory Management Division, Environmental House adjourned until tomorrow, ple in this gallery and the millions of Protection Agency, transmitting the Agen- Thursday, December 5, 2013, at 9 a.m. families across this country that are cy’s final rule — Quinclorac; Pesticide Toler- demanding action now, and the hun- f ances [EPA-HQ-OPP-2012-0429; FRL-9902-15] received November 26, 2013, pursuant to 5 dreds of million—yes, every American EXECUTIVE COMMUNICATIONS, U.S.C. 801(a)(1)(A); to the Committee on En- man, woman, and child who stands to ETC. ergy and Commerce. benefit by immediate action here in Under clause 2 of rule XIV, executive 3990. A letter from the Director, Regu- the House of Representatives. communications were taken from the latory Management Division, Environmental Protection Agency, transmitting the Agen- I yield back the balance of my time. Speaker’s table and referred as follows: f cy’s final rule — Revisions to the Arizona 3981. A letter from the Director — Office of State Implementation Plan, Maricopa Coun- TPP TRADE AGREEMENT Legislative Affairs, Federal Deposit Insur- ty Area [EPA-R09-OAR-2013-0194; FRL-9838-6] (Ms. KAPTUR asked and was given ance Corporation, transmitting the Corpora- received November 26, 2013, pursuant to 5 tion’s final rule — Deposit Insurance Regula- permission to address the House for 1 U.S.C. 801(a)(1)(A); to the Committee on En- tions; Definition of Insured Deposit (RIN: ergy and Commerce. minute.) 3064-AE00) received December 2, 2013, pursu- 3991. A letter from the Chief Legal Officer, Ms. KAPTUR. Madam Speaker, I rise ant to 5 U.S.C. 801(a)(1)(A); to the Committee Privacy and Civil Liberites Board, Privacy tonight to associate myself with the on Financial Services. and Civil Liberties Oversight Board, trans- Special Order opposing any fast track 3982. A letter from the Director, Regu- mitting the Board’s final rule — Freedom of deal for the Trans-Pacific Partnership, latory Management Division, Environmental Information, Privacy Act, and Government or the TPP trade agreement as it is Protection Agency, transmitting the Agen- in the Sunshine Act Procedures [PCLOB; called. cy’s final rule — Etofenprox; Pesticide Toler- Docket No. 2013-0003; Sequence 1] (RIN: 0311- It is simply the same old trade model ances [EPA-HQ-OPP-2011-0905; FRL-9902-39] AA01) received November 18, 2013, pursuant received November 26, 2013, pursuant to 5 since 1975 that has caused this country to 5 U.S.C. 801(a)(1)(A); to the Committee on U.S.C. 801(a)(1)(A); to the Committee on En- Oversight and Government Reform. to rack up over $9 trillion of trade def- ergy and Commerce. 3992. A letter from the Deputy Assistant icit—more imports coming in here than 3983. A letter from the Director, Regula- Administrator for Regulatory Programs, exports going out. An incredible debt. tion Management Division, Environmental NMFS, National Oceanic and Atmospheric We talk about the budget deficit. The Protection Agency, transmitting the Agen- Administration, transmitting the Adminis- reason we have a budget deficit is be- cy’s final rule — Approval and Promulgation tration’s final rule — Endangered and cause we have a trade deficit and the of Implementation Plans; Tennessee; Revi- Threatened Wildlife; Notice of 12-Month outsourcing of jobs from coast to coast. sions to the Knox County Portion of the Ten- Finding on a Petition To List the Sperm There is simply no reason to bring up nessee State Implementation Plan [EPA- Whale (Physeter macrocephalus) as an En- a deal under the fast track procedure R04-OAR-2013-0455; FRL-9903-17-Region-4] re- dangered of Threatened Distinct Population ceived November 26, 2013, pursuant to 5 Segment (DPS) in the Gulf of Mexico [Dock- which will not permit amendment on U.S.C. 801(a)(1)(A); to the Committee on En- et No.: 1206013325-3912-03] (RIN: 0648-XA983) this floor—a deal negotiated in secret ergy and Commerce. received December 2, 2013, pursuant to 5 by yet another Presidential adminis- 3984. A letter from the Director, Regu- U.S.C. 801(a)(1)(A); to the Committee on Nat- tration. latory Management Division, Environmental ural Resources.

VerDate Mar 15 2010 02:28 Dec 05, 2013 Jkt 039060 PO 00000 Frm 00058 Fmt 0636 Sfmt 0634 E:\CR\FM\K04DE7.082 H04DEPT1 pwalker on DSK7TPTVN1PROD with HOUSE December 4, 2013 CONGRESSIONAL RECORD — HOUSE H7507 3993. A letter from the Chief, Publications H.R. 3654. A bill to establish a renewable Congress has the power to enact this legis- and Regulations, Internal Revenue Service, electricity standard, and for other purposes; lation pursuant to the following: transmitting the Service’s final rule — to the Committee on Energy and Commerce. This bill is enacted pursuant to the power Health Insurance Providers Fee [TD 9643] By Mr. RYAN of Ohio (for himself and granted to Congress under Article I, Section (RIN: 1545-BL20) received December 2, 2013, Mr. JOYCE): 8, Clause 18 of the United States Constitu- pursuant to 5 U.S.C. 801(a)(1)(A); to the Com- H.R. 3655. A bill to award a Congressional tion. mittee on Ways and Means. Gold Medal to Simeon Booker in recognition By Mr. CROWLEY: f of his achievements in the field of jour- H.R. 3650. nalism, including reporting during the Civil Congress has the power to enact this legis- PUBLIC BILLS AND RESOLUTIONS Rights movement, as well as social and polit- lation pursuant to the following: Under clause 2 of rule XII, public ical commentary; to the Committee on Fi- Article I, Section 8, Clause 3: The Congress bills and resolutions of the following nancial Services. shall have Power . . . To regulate Commerce titles were introduced and severally re- By Mr. GERLACH (for himself and Mr. with foreign Nations, and among the several ferred, as follows: FATTAH): States, and with the Indian Tribes; H. Con. Res. 68. Concurrent resolution pro- By Mr. HASTINGS of Florida: By Mr. JEFFRIES (for himself and Mr. viding official recognition of the massacre of H.R. 3651. KING of New York): 11 African-American soldiers of the 333rd Congress has the power to enact this legis- H.R. 3646. A bill to direct the Secretary of Field Artillery Battalion of the United lation pursuant to the following: the Army to give priority to projects and States Army who had been captured in U.S. Const., Art. I, § 8, cl. 3: Congress shall studies for hurricane and storm damage risk Wereth, Belgium, during the Battle of the have the power to regulate commerce with reduction, and for other purposes; to the Bulge on December 17, 1944; to the Com- foreign nations and among the various Committee on Transportation and Infra- mittee on Armed Services. states. structure. By Ms. SPEIER (for herself, Mr. By Mr. HOLDING: By Mr. AMODEI: CICILLINE, Mr. DEUTCH, Mr. ELLISON, H.R. 3652. H.R. 3647. A bill to amend title 38, United Mr. GRIJALVA, Mr. KEATING, Mr. Congress has the power to enact this legis- States Code, to improve the provision of MORAN, Ms. TSONGAS, Mr. SEAN PAT- lation pursuant to the following: guide dogs to veterans blinded by a service- RICK MALONEY of New York, Ms. The authority to enact this bill is derived connected injury; to the Committee on Vet- SCHWARTZ, Ms. SCHAKOWSKY, Mr. from, but may not be limited to, Article I, erans’ Affairs. MCGOVERN, Ms. MCCOLLUM, Mr. Section 8, Clause 3 of the United States Con- By Mr. BRALEY of Iowa: stitution. H.R. 3648. A bill to amend the Internal Rev- POCAN, Mrs. DAVIS of California, and By Mr. KING of New York: enue Code of 1986 to allow the work oppor- Mr. LOWENTHAL): H. Con. Res. 69. Concurrent resolution ex- H.R. 3653. tunity credit to small businesses which hire pressing the sense of Congress that efforts by Congress has the power to enact this legis- individuals who are members of the Ready lation pursuant to the following: Reserve or National Guard, and for other mental health practitioners to change an in- Article I, Section 8, Clause 1 purposes; to the Committee on Ways and dividual’s sexual orientation is dangerous The Congress shall have Power to lay and Means. and harmful and should be prohibited from collect Taxes, Duties, Imposts and Excises, By Mrs. BUSTOS: being practiced on minors; to the Committee H.R. 3649. A bill to amend the Internal Rev- on Energy and Commerce. to pay the Debts and provide for the common enue Code of 1986 to allow the work oppor- By Mr. JONES (for himself and Ms. Defence and general Welfare of the United tunity credit for hiring individuals who are SPEIER): States; but all Duties, Imposts and Excises veterans or members of the Ready Reserve or H. Res. 430. A resolution expressing the shall be uniform throughout the United National Guard, to make permanent the sense of the House of Representatives that States. work opportunity credit, and to expand and the President should ensure that the Govern- By Mr. POLIS: make permanent the employer wage credit ment of the Islamic Republic of Afghanistan H.R. 3654. for employees who are active duty members is making significant progress in fulfilling Congress has the power to enact this legis- of the uniformed services; to the Committee its deliverable requirements under the lation pursuant to the following: on Ways and Means. Tokyo Conference Agreement in order to re- Article I, Section 8, Clause 3 (relating to By Mr. CROWLEY (for himself, Ms. ceive United States financial assistance; to the power of Congress to regulate Commerce MENG, Ms. SCHAKOWSKY, Mr. the Committee on Foreign Affairs. with foreign Nations, and among the several QUIGLEY, Mr. HIMES, Mr. MEEKS, Mr. f States, and with the Indian Tribes). ISRAEL, and Mr. SIRES): By Mr. RYAN of Ohio: H.R. 3650. A bill to amend title 49, United CONSTITUTIONAL AUTHORITY H.R. 3655. States Code, to prohibit the operation of cer- STATEMENT Congress has the power to enact this legis- tain aircraft not complying with stage 4 Pursuant to clause 7 of rule XII of lation pursuant to the following: noise levels, and for other purposes; to the To make Rules for the Government and the Rules of the House of Representa- Regulation of the land and naval Forces. Committee on Transportation and Infra- tives, the following statements are sub- structure. To make all Laws which shall be necessary By Mr. HASTINGS of Florida (for him- mitted regarding the specific powers and proper for carrying into Execution the self, Mr. CONYERS, and Ms. LEE of granted to Congress in the Constitu- foregoing Powers, and all other Powers vest- California): tion to enact the accompanying bill or ed by this Constitution in the Government of H.R. 3651. A bill to establish a commission joint resolution. the United States or in any Department or Officer thereof. to study employment and economic insecu- By Mr. JEFFRIES: rity in the United States workforce; to the H.R. 3646. f Committee on Education and the Workforce. Congress has the power to enact this legis- By Mr. HOLDING: lation pursuant to the following: ADDITIONAL SPONSORS H.R. 3652. A bill to amend title 18, United Article I, Section 8, Clause I of the United Under clause 7 of rule XII, sponsors States Code, to provide for penalties for ag- States Constitution (related to general wel- were added to public bills and resolu- gravated identity theft facilitated by em- fare of the United States). tions as follows: ployment at an agency implementing the Pa- By Mr. AMODEI: tient Protection and Affordable Care Act; to H.R. 3647. H.R. 15: Mr. VISCLOSKY. the Committee on the Judiciary. Congress has the power to enact this legis- H.R. 107: Mrs. ELLMERS. By Mr. KING of New York (for himself, lation pursuant to the following: H.R. 129: Mr. YOHO. Mr. POE of Texas, Ms. KELLY of Illi- The constitutional authority on which this H.R. 183: Mr. AL GREEN of Texas. nois, Mr. GRIMM, Mr. WEBSTER of bill rests is the power of Congress to make H.R. 184: Mrs. BEATTY. Florida, and Mr. OLSON): rules for the government and regulation of H.R. 207: Mr. DUNCAN of Tennessee. H.R. 3653. A bill to amend the Internal Rev- the land and naval forces, as enumerated in H.R. 490: Mr. NEAL. enue Code of 1986 to allow an increased work Article I, Section 8, Clause 14 of the United H.R. 503: Mr. PEARCE, Mrs. BACHMANN, Mr. opportunity credit with respect to recent States Constitution. RICE of South Carolina, Mr. WALBERG, Mr. veterans, and for other purposes; to the Com- By Mr. BRALEY of Iowa: FRANKS of Arizona, Mr. WENSTRUP, Mr. mittee on Ways and Means, and in addition H.R. 3648. MCALLISTER, and Mr. CARTER. to the Committee on Veterans’ Affairs, for a Congress has the power to enact this legis- H.R. 517: Mr. DOYLE. period to be subsequently determined by the lation pursuant to the following: H.R. 543: Mr. FARR. Speaker, in each case for consideration of This bill is enacted pursuant to the power H.R. 647: Mr. KILDEE and Mr. WESTMORE- such provisions as fall within the jurisdic- granted to Congress under Article I, Section LAND. tion of the committee concerned. 8, Clause 18 of the United States Constitu- H.R. 715: Ms. EDDIE BERNICE JOHNSON of By Mr. POLIS (for himself, Mr. BEN tion. Texas, Mr. NADLER, Ms. NORTON, Mr. PRICE RAY LUJA´ N of New Mexico, and Ms. By Mr. BUSTOS: of Georgia, Mr. SESSIONS, Mr. SCOTT of Vir- KUSTER): H.R. 3649. ginia, and Mr. YOUNG of Alaska.

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H.R. 725: Mr. HUFFMAN. H.R. 2831: Ms. CHU. H.R. 3581: Mr. PAULSEN. H.R. 855: Mr. GUTIERREZ. H.R. 2901: Mr. KEATING, Ms. TITUS, Mr. H.R. 3589: Mr. POSEY, Mr. FRANKS of Ari- H.R. 863: Mr. ISRAEL. WAXMAN, Mr. CICILLINE, Mr. BERA of Cali- zona, and Mrs. BACHMANN. H.R. 914: Mr. PEARCE. fornia, and Mr. PETRI. H.R. 3590: Mr. YOUNG of Alaska and Mr. H.R. 924: Mr. LOWENTHAL and Mr. GARCIA. H.R. 2906: Mr. KING of New York. BENISHEK. H.R. 961: Mr. LARSON of Connecticut. H.R. 2921: Mr. GIBSON. H.R. 3595: Mr. LANKFORD, Mr. RICE of South H.R. 962: Mr. GENE GREEN of Texas, Mr. H.R. 2995: Mr. KIND, Ms. SCHWARTZ, and Mr. Carolina, Mr. HARRIS, and Mr. DUNCAN of RIBBLE, and Ms. PINGREE of Maine. RENACCI. South Carolina. H.R. 984: Mr. ROONEY. H.R. 3040: Mr. KENNEDY, Mr. DAVID SCOTT H.R. 3599: Mr. GOHMERT. H.R. 1015: Mr. HONDA. of Georgia, and Mr. PRICE of North Carolina. H.R. 3609: Mr. JEFFRIES. H.R. 1078: Mr. MARCHANT. H.R. 3061: Mr. PRICE of North Carolina and H.R. 3612: Ms. BONAMICI. H.R. 1150: Ms. TSONGAS. Mr. CUMMINGS. H.R. 3625: Mr. STOCKMAN, Mr. ADERHOLT, H.R. 1209: Mr. KIND, Mr. ROKITA, Mr. H.R. 3111: Ms. DUCKWORTH. Mr. HALL, Mr. SCHWEIKERT, Mr. BERA of Cali- AMODEI, Mr. ENGEL, Ms. TITUS, Mr. NUNES, H.R. 3122: Mr. CAPUANO. fornia, Mr. MURPHY of Florida, Mr. OLSON, Ms. CHU, Mr. ROYCE, Ms. GABBARD, Mr. H.R. 3179: Mr. CASTRO of Texas. Mr. SMITH of Texas, Mr. PALAZZO, Ms. SE- H.R. 3311: Mrs. BROOKS of Indiana and Mr. PITTS, Mr. DENHAM, Mr. VALADAO, Ms. HAHN, WELL of Alabama, Mr. COFFMAN, Mr. CREN- LONG. Mr. GRIMM, Mr. WILSON of South Carolina, SHAW, Mr. KILMER, and Mr. BACHUS. H.R. 3318: Mr. LOEBSACK and Ms. Mr. WOLF, Ms. DUCKWORTH, Mr. ROHR- H.R. 3627: Mr. MURPHY of Florida and Mr. WASSERMAN SCHULTZ. ABACHER, and Mr. KLINE. SWALWELL of California. H.R. 3335: Mr. WALBERG. H.R. 1226: Mr. LANKFORD. H.R. 3630: Ms. CASTOR of Florida. H.R. 3367: Mr. VARGAS. H.R. 1252: Mr. KILDEE. H.R. 3633: Mr. COURTNEY. H.R. 3370: Mr. LONG, Mr. SCHNEIDER, Mr. H.R. 1318: Mr. THOMPSON of Mississippi. H.R. 3634: Mr. GIBSON, Mr. PETERS of Cali- RAHALL, Mr. MCALLISTER, Mr. BERA of Cali- H.R. 1354: Mr. RUIZ, Mr. LOWENTHAL, and fornia, Ms. SINEMA, Ms. KUSTER, Mrs. CARO- fornia, Ms. HERRERA BEUTLER, and Mr. Mr. PETERS of Michigan. LYN B. MALONEY of New York, Mr. DELANEY, FORBES. H.R. 1380: Mr. HONDA. Mr. NADLER, Mr. ENGEL, and Mr. HANNA. H.R. 3384: Mr. PETERS of Michigan. H.R. 1701: Mr. ROKITA. H.R. 3639: Mr. LAMBORN. H.R. 3401: Mr. CAPUANO and Mr. THOMPSON H.R. 1726: Mr. PITTS and Ms. LOFGREN. of Mississippi. H.R. 3641: Mr. WILLIAMS. H.R. 1750: Mr. PERLMUTTER and Mr. ADER- ONYERS ANGEVIN H.R. 3407: Mr. CLAY. H.R. 3643: Mr. C and Mr. L . HOLT. H.R. 3413: Mrs. BLACKBURN. H.J. Res. 43: Mr. KILDEE and Mr. H.R. 1751: Mr. HUFFMAN. H.R. 3445: Mr. GEORGE MILLER of Cali- GARAMENDI. H.R. 1771: Ms. HANABUSA. fornia, Ms. SCHAKOWSKY, Mr. RUSH, and Ms. H.J. Res. 47: Mr. WOLF. H.R. 1814: Mr. HURT and Mr. RICHMOND. SHEA-PORTER. H.J. Res. 104: Mr. BENTIVOLIO. H.R. 1843: Ms. ESTY. H.R. 3461: Mr. PRICE of North Carolina, Mr. H. Con. Res. 52: Mr. DUNCAN of Tennessee. H.R. 1845: Mr. DEFAZIO. DELANEY, Mr. GRIJALVA, Ms. SPEIER, and Mr. H. Res. 19: Mr. DOGGETT. H.R. 1851: Ms. EDWARDS and Mr. RUIZ. CARTWRIGHT. H. Res. 47: Mr. FOSTER. H.R. 1852: Mr. SESSIONS. H.R. 3471: Mr. SCHIFF, Mr. KILMER, Ms. H. Res. 112: Ms. CASTOR of Florida. H.R. 1875: Mr. CAPUANO. SHEA-PORTER, Mr. PETERS of California, Mr. H. Res. 147: Mr. POMPEO. H.R. 1905: Mr. PERLMUTTER and Mr. LEVIN. MURPHY of Florida, Mr. WAXMAN, Ms. WILSON H. Res. 231: Mr. YARMUTH, Mr. WOLF, Mr. H.R. 1920: Ms. KELLY of Illinois, Mr. BRADY of Florida, and Ms. PINGREE of Maine. FINCHER, and Mr. RUPPERSBERGER. of Pennsylvania, Mr. PALAZZO, and Mr. H.R. 3473: Mr. KIND and Mr. PETERS of Cali- H. Res. 254: Mr. O’ROURKE and Ms. CHU. O’ROURKE. fornia. H. Res. 284: Mr. ENGEL. H.R. 1975: Mr. DOGGETT. H.R. 3474: Mr. BENTIVOLIO. H. Res. 365: Mr. MAFFEI, Mr. BEN RAY H.R. 1992: Mr. LOWENTHAL. H.R. 3479: Mrs. BACHMANN. LUJA´ N of New Mexico, Mr. LYNCH, Mr. RAN- H.R. 2000: Mr. CARTWRIGHT. H.R. 3482: Mr. BUCHANAN, Mr. RIGELL, Mr. GEL, Mr. PETERS of California, Mr. CART- H.R. 2012: Mr. MURPHY of Florida, Ms. ISRAEL, Mr. OLSON, Mr. RICHMOND, Ms. WRIGHT, Ms. DUCKWORTH, and Mr. GUTIE´ RREZ. SCHWARTZ, Mr. SHERMAN, and Mr. MEEHAN. SCHWARTZ, and Mr. POE of Texas. H. Res. 401: Mr. RYAN of Ohio. H.R. 2023: Mr. PRICE of North Carolina and H.R. 3485: Mr. GOODLATTE and Mr. MILLER H. Res. 406: Mr. PRICE OF North Carolina. Mr. CONNOLLY. of Florida. H. Res. 410: Mr. KING of Iowa and Ms. HAHN. H.R. 2073: Mr. ISRAEL and Mr. COURTNEY. H.R. 3486: Mr. CULBERSON. H. Res. 422: Mr. POLIS, Mr. MORAN, Mr. H.R. 2288: Ms. DUCKWORTH and Mr. CART- H.R. 3488: Mr. SCHOCK, Mr. BLUMENAUER, PETERSON, and Mr. BENTIVOLIO. WRIGHT. Mr. THOMPSON of California, Mr. PAULSEN, H. Res. 423: Mr. CONNOLLY, Mr. MCNERNEY, H.R. 2300: Mr. HARRIS, Mrs. BLACK, Mrs. Mr. COFFMAN, Mr. HANNA, Mr. MEEKS, and and Mr. ENGEL. BLACKBURN, Mr. MARCHANT, Mr. CONAWAY, Mr. MATHESON. H. Res. 424: Mr. MCGOVERN, Mr. COOPER, Mr. WOODALL, and Mr. CALVERT. H.R. 3489: Mr. REED. Mrs. CAROLYN B. MALONEY of New York, Mr. H.R. 2376: Mr. THOMPSON of Pennsylvania. H.R. 3494: Ms. PINGREE of Maine, Mr. NAD- CONYERS, Mr. HASTINGS of Florida, Mr. H.R. 2429: Mr. HALL, Mr. BROOKS of Ala- LER, Mr. CONNOLLY, Ms. DELBENE, MS. POCAN, Mr. DINGELL, Ms. KUSTER, Ms. TSON- bama and Mr. FRELINGHUYSEN. BROWNLEY of California, Mr. MORAN, Mr. GAS, Mr. LOEBSACK, Ms. DUCKWORTH, Ms. H.R. 2430: Ms. LEE of California and Mr. HUFFMAN, Mr. VELA, Mr. BEN RAY LUJA´ N of SHEA-PORTER, Mr. TONKO, Mr. WELCH, Mrs. TURNER. New Mexico, Mr. TIERNEY, Mr. CAPUANO, and CAPPS, Ms. EDDIE BERNICE JOHNSON of Texas, H.R. 2445: Mr. GRIFFITH of Virginia. Mr. LARSEN of Washington. Mr. CICILLINE, Mr. MICHAUD, Mr. RICHMOND, H.R. 2476: Mr. MEADOWS. H.R. 3538: Ms. MICHELLE LUJAN GRISHAM of Mr. GEORGE MILLER of California, Mr. CROW- H.R. 2484: Mr. PETERS of Michigan, Mr. New Mexico, Mr. FATTAH, Ms. ROYBAL- LEY, Mr. HIGGINS, and Mr. OWENS. RAHALL, and Mr. CARTWRIGHT. ALLARD, Mr. CA´ RDENAS, Mr. GALLEGO, and H. Res. 425: Mr. RIBBLE. H.R. 2548: Mr. KINZINGER of Illinois. Mr. O’ROURKE. H.R. 2560: Ms. TITUS. H.R. 3541: Mr. NEUGEBAUER, Mr. MARINO, f H.R. 2575: Mr. HASTINGS of Washington. Mr. LAMALFA, Mr. PITTENGER, and Mrs. H.R. 2591: Mr. PRICE of North Carolina and BACHMANN. Mr. SMITH of Washington. H.R. 3571: Mr. KEATING, Ms. LEE of Cali- DELETION OF SPONSORS FROM H.R. 2619: Ms. MCCOLLUM and Mr. MCGOV- fornia, Mr. CONYERS, Mr. MCGOVERN, Mr. PUBLIC BILLS AND RESOLUTIONS ERN. BRALEY of Iowa, Mr. LEVIN, Mr. MAFFEI, and Under clause 7 of rule XII, sponsors H.R. 2663: Mr. CARSON of Indiana. Mr. MCDERMOTT. were deleted from public bills and reso- H.R. 2697: Mr. MCGOVERN. H.R. 3574: Ms. SLAUGHTER. H.R. 2725: Mr. HECK of Nevada. H.R. 3578: Mr. FLORES, Mrs. HARTZLER, and lutions as follows: H.R. 2767: Mr. DUNCAN of South Carolina. Mr. PETRI. H.R. 3313: Mr. RUIZ.

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