Velazquez on Regulatory Flexibility and Small Business Size Standards

WASHINGTON, July 13, 2011 /PRNewswire-USNewswire/ -- Rep. Nydia M. Velázquez (D-NY), the Ranking Member of the House Committee on Small Business, spoke today during a Committee markup.  During the markup, the Committee considered two bills, H.R. 527, "The Regulatory Flexibility Improvement Act," and H.R. 585, "The Small Business Size Standards Flexibility Act."  Following is Velazquez's opening statement:  

"Thank you, Mr. Chairman.   No task before this Committee - indeed for all of Congress - is more important than helping small businesses create new jobs.  With recent surveys suggesting that almost two-thirds of small firms are hesitant to hire more workers, all options should be on the table as we consider ways to foster small business job growth.    

"The two bills before the Committee today are certainly focused on issues critical to entrepreneurs.  Ensuring small companies are not needlessly burdened by regulation is important to helping firms expand.   Small enterprises with fewer than 20 employees are disproportionately affected by regulations, paying 36 percent more in regulatory costs than their larger counterparts.  Ensuring federal agencies take effects like these into account when implementing new rules is vital for our economy's long term health.

"On a similar note, small business size standards are also a critical matter, determining which firms qualify for a wide range of technical assistance and counseling -- to say nothing of billions of dollars in federal procurement actions that are set aside for small companies, each year.  

"While I agree these are important topics that must be addressed, during our previous hearings, the Committee heard numerous misgivings about the two bills before us.  As just one example, a witness invited by the Majority testified that the SBA's Office of Advocacy does not have the resources or expertise to take responsibility for setting size standards.   Other concerns centered on whether the legislation expands the Regulatory Flexibility Act too broadly, making the system inefficient.  

"Unfortunately, matters like these have gone completely unaddressed in the legislation before the Committee today.  If we are to enact legislation that achieves the Committee's goals, then more effort should be made to correct the weaknesses in these bills before proceeding.  

"I am also concerned procedural issues will cause problems, going forward.  H.R. 527, the regulatory bill we are marking up, is substantively different from the measure recently approved by the House Judiciary Committee.   How the legislative product coming from this Committee will be reconciled with the Judiciary Committee's remains an open question.  It would be particularly disconcerting if Members' amendments prepared for today's markup are ultimately discarded when a final package moves to the Rules Committee and then the floor.

"Mr. Chairman, Members on both sides of the aisle recognize the need to reduce small businesses' regulatory burdens and reform the SBA's size standards system.  However, I remain concerned that the legislation before us does not reflect the best work of the Committee.  If we are to truly support America's small businesses, we must develop legislation that makes not just for good sound bites, but also for effective policy.

"I thank the Chairman for yielding."

CONTACT: Alex Haurek
(202) 225-2361

SOURCE Representative Nydia M. Velazquez, Ranking Member, House Committee on Small Business