[House Report 110-350]
[From the U.S. Government Publishing Office]
110th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 110-350
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PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 3567) TO AMEND THE SMALL
BUSINESS INVESTMENT ACT OF 1958 TO EXPAND OPPORTUNITIES FOR INVESTMENTS
IN SMALL BUSINESSES, AND FOR OTHER PURPOSES
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September 26, 2007.--Referred to the House Calendar and ordered to be
printed
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Mr. Cardoza, from the Committee on Rules, submitted the following
R E P O R T
[To accompany H. Res. 682]
The Committee on Rules, having had under consideration
House Resolution 682, by a non-record vote, report the same to
the House with the recommendation that the resolution be
adopted.
SUMMARY OF PROVISIONS OF THE RESOLUTION
The resolution provides for consideration of H.R. 3567, the
Small Business Investment Expansion Act of 2007, under a
structured rule. The rule provides one hour of general debate
equally divided and controlled by the chairman and ranking
minority member of the Committee on Small Business. The rule
waives all points of order against consideration of the bill
except clauses 9 and 10 of rule XXI. The rule provides that the
bill shall be considered as read. All points of order against
provisions in the bill are waived.
The rule makes in order only those amendments printed in
this report. The amendments made in order may be offered only
in the order printed in this report, may be offered only by a
Member designated in this report, shall be considered as read,
shall be debatable for the time specified in this report
equally divided and controlled by the proponent and an
opponent, shall not be subject to amendment, and shall not be
subject to a demand for a division of the question in the House
or in the Committee of the Whole. All points of order against
the amendments except for clauses 9 and 10 of rule XXI are
waived. The rule provides one motion to recommit with or
without instructions. Finally the rule provides that,
notwithstanding the operation of the previous question, the
Chair may postpone further consideration of the bill to a time
designated by the Speaker.
EXPLANATION OF WAIVERS
The waiver of all points of order against consideration of
the bill (except for clauses 9 and 10 of rule XXI) includes a
waiver of clause 4(a) of rule XIII, requiring a three-day
layover of the committee report. The committee is not aware of
any points of order against provisions in the bill. The waiver
of all points of order against provisions in the bill is
prophylactic in nature.
COMMITTEE VOTES
The results of each record vote on an amendment or motion
to report, together with the names of those voting for and
against, are printed below:
Rules Committee record vote No. 318
Date: September 26, 2007.
Measure: H.R. 3567.
Motion by: Mr. Dreier.
Summary of motion: To grant an open rule.
Results: Defeated 3-8.
Vote by Members: Hastings (FL)--Nay; Matsui--Nay; Cardoza--
Nay; Welch--Nay; Castor--Nay; Arcuri--Nay; Sutton--Nay;
Dreier--Yea; Diaz-Balart--Yea; Hastings (WA)--Yea; Slaughter--
Nay.
SUMMARY OF AMENDMENTS MADE IN ORDER
Chabot (OH), The amendment establishes a bright line
standard of majority stock ownership for determining whether a
venture capital company is affiliated with the companies in
which it invests. (10 minutes)
Inslee (WA)/Welch (VT), The amendment expands the
definition of operational assistance in Section 351 of the
Small Business Investment Act, to include assistance to help
small businesses achieve energy efficiency and implement
sustainable practices that reduce the use of non-renewable
resources or minimize environmental impact and reduce overall
costs and increase health of employees. (10 minutes)
Inslee (WA)/Welch (VT), The amendment would direct the SBA
Administrator to give consideration to investments for small
businesses that are creating new technologies, manufactured
goods, or materials, or providing services to reduce carbon
emissions in the US, reduce the use of non-renewable resources,
minimize environmental impact, and relate people with the
natural environment. (10 minutes)
TEXT OF AMENDMENTS MADE IN ORDER UNDER THE RULE
1. An Amendment To Be Offered by Representative Chabot of Ohio, or His
Designee, Debatable for 10 Minutes
Strike title V and insert the following:
TITLE V--VENTURE CAPITAL INVESTMENT STANDARDS
SEC. 501. DETERMINING WHETHER BUSINESS CONCERN IS INDEPENDENTLY OWNED
AND OPERATED.
Section 3(a) of the Small Business Act (15 U.S.C. 632(a)) is
amended by adding at the end the following:
``(5) Non-affiliation of venture capital from
consideration of small business concern.--For purposes
of determining whether a small business concern is
independently owned and operated under paragraph (1) or
meets the small business size standards instituted
under paragraph (2), the Administrator shall not
consider a business concern to be affiliated with a
venture capital operating company (or with any other
business that the venture capital operating company has
financed) if--
``(A) the venture capital operating company
does not own 50 percent or more of the business
concern; and
``(B) employees of the venture capital
operating company do not constitute a majority
of the board of directors of the business
concern.
``(6) Definition of `independently owned and
operated'.--For purposes of this section, a business
concern shall be deemed to be `independently owned and
operated' if--
``(A) it is owned in majority part by one or
more natural persons or venture capital
operating companies;
``(B) there is no single venture capital
operating company that owns 50 percent or more
of the business concern; and
``(C) there is no single venture capital
operating company the employees of which
constitute a majority of the board of directors
of the business concern.
``(7) Definition of `venture capital operating
company'.--For purposes of this section, the term
`venture capital operating company' means a business
concern--
``(A) that--
``(i) is a Venture Capital Operating
Company, as that term is defined in
regulations promulgated by the
Secretary of Labor; or
``(ii) is an entity that--
``(I) is registered under the
Investment Company Act of 1940
(15 U.S.C. 80a-51 et seq.);
``(II) is an investment
company, as defined in section
3(c)(14) of such Act (15 U.S.C.
80a-3(c)(14)), which is not
registered under such Act
because it is beneficially
owned by less than 100 persons;
or
``(III) is a nonprofit
organization affiliated with,
or serving as a patent and
licensing organization for, a
university or other institution
of higher education and that
invests primarily in small
business concerns; and
``(B) that is not controlled by any business
concern that is not a small business concern
within the meaning of section 3;
``(C) that has fewer than 500 employees; and
``(D) that is itself a concern incorporated
and domiciled in the United States, or is
controlled by a concern that is incorporated
and domiciled in the United States.''.
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2. An Amendment To Be Offered by Representative Inslee of Washington,
or His Designee, Debatable for 10 Minutes
Section 206, add at the end the following:
(c) Expanded Definition of Operational Assistance.--Section
351(5) of the Small Business Investment Act of 1958 (15 U.S.C.
689(5)) is amended by inserting before the period at the end
the following: ``, including assistance on how to implement
energy efficiency and sustainable practices that reduce the use
of non-renewable resources or minimize environmental impact and
reduce overall costs and increase health of employees''.
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3. An Amendment To Be Offered by Representative Inslee of Washington,
or His Designee, Debatable for 10 Minutes
Redesignate section 104 as 105 and insert after section 103
the following:
SEC. 104. INCREASED INVESTMENTS IN SMALL BUSINESSES CREATING NEW
TECHNOLOGIES, MANUFACTURED GOODS, OR MATERIALS OR
PROVIDING SERVICES TO REDUCE CARBON EMISSIONS IN
THE UNITED STATES, REDUCE THE USE OF NON-RENEWABLE
RESOURCES, MINIMIZE ENVIRONMENTAL IMPACT, AND
RELATE PEOPLE WITH THE NATURAL ENVIRONMENT.
Section 303 of the Small Business Investment Act of 1958 (15
U.S.C. 683), as amended by this Act, is further amended by
adding at the end the following:
``(k) Increased Investments in Small Businesses.--The
Administrator shall give consideration to investments in small
businesses that are creating new technologies, manufactured
goods, or materials, or providing services to reduce carbon
emissions in the United States, reduce the use of non-renewable
resources, minimize environmental impact, and relate people
with the natural environment.''.