Mr. Chairman, it is clear, when I have the ranking member of the Small Business Committee who has an enormous history of commitment to small businesses, and the ranking member of the Judiciary…
Mr. Chairman, it is clear, when I have the ranking member of the Small Business Committee who has an enormous history of commitment to small businesses, and the ranking member of the Judiciary Committee, both former chairs, opposing this bill, then we obviously know that it is problematic.
What I know of small businesses is that they, frankly, want to have an anchor to promote and propel their business needs. The regulatory scheme and the underlying premise of this bill is to eliminate any anchor for our small businesses. And when you do that, you're clearly undermining their growth and opportunity.
I would add, as well, that I challenge as to whether or not this debate today creates any opportunity for small business, provides them access to credit, guarantees any loans, creates any jobs. Absolutely not, and it is absurd that we would suggest that agencies that are trying to promote small businesses are stopping small businesses and, therefore, we want to implode the regulatory scheme.
The APA provides an opportunity for due process through the court system. If our colleagues have problems with regulations, they can run to the courts. You don't have to implode the process to be able to address the problem.
Let's help small businesses, let's discuss how to create jobs, and let's vote against this legislation.
I have an amendment at the desk.
Mr. Chairman, I yield myself such time as I may consume.
I rise today to call upon the rational and reasonable thinking of my colleagues on both sides of the aisle and really discuss an amendment that speaks the obvious.
The underlying bill puts into process a regulatory scheme that delays the implementation of regulations. Whether you agree or disagree with that approach, we all recognize that securing the homeland continues to be a top priority for this Nation.
I'm standing alongside some of our first responders looking over one of the Nation's major ports. Many who live in those areas recognize the vulnerability of America through her ports or aviation or mass transit or highways or bridges or dams.
Every moment after 9/11 is a new moment in this Nation. My amendment simply says to waive the provisions of this bill, H.R. 527, when it deals with homeland security.
I hold in my hand the National Security Threat List that lists the issues that our Homeland Security Department and intelligence communities have to address. The listing is not classified, so I will mention the many tasks that they have to address: terrorism, espionage, proliferation, the moving forward on the question of economic espionage, targeting the national information structure, cybersecurity. Why would we want to interfere with the movement of regulations to protect the homeland under the premise of this bill?
I ask my colleagues to support the Jackson Lee amendment that would waive the bill's provisions in light of protecting the homeland.
I reserve the balance of my time.
Mr. Chairman, I yield myself the balance of my time.
Let me again appeal to the bipartisanship of my colleagues. This is a very troublesome bill, and this bill interferes with the normal process, if you will, of dealing with the regulatory scheme. Although it's called the Regulatory Flexibility Act, I can assure you that the purpose of this legislation is, one, not to create jobs, and certainly not to help us secure the homeland.
The bill would add new review requirements to an already long and complicated process allowing special interest lobbyists to second-guess the work of respected scientists and staff through legal challenges, sparking a wave of litigation. This is what Homeland Security regulations would have to go through.
Since the creation of the Department of Homeland Security in 2002 and since my membership on the committee that was a select committee, we've overhauled the government in ways we've never done before. Steps have been taken to ensure that the communication failures that led to 9/11 are corrected.
More than 220 million tons of cargo moved, for example, through the Port of Houston in 2010. That cargo has to be inspected. And the port ranked first in foreign waterborne tonnage for the 15th consecutive year. Just imagine a regulation dealing with the scanning or the security of that tonnage to be interfered with by H.R. 527.
If Coast Guard intelligence had evidence of a potential attack on the Port of Houston and they wanted the Department of Homeland Security to address it or they used a regulation or there was a regulation in process, then it would have to be stopped by this legislation.
It is important to recognize that homeland security is not security by appointment. It is not security by ``let me address regulations by having them vetted by H.R. 527.''
This is a commonsense amendment that simply says, as it deals with the homeland security or the securing of our Nation as we look to be better than what occurred in 9/11 where agencies were not communicating with each other, where the fault of the cybersecurity system did not work, and we had the heinous tragedy of losing 3,000-plus of our souls in New York City. As we see the franchising of terrorism where there is the shoe bomber and the Christmas Day bomber and the Times Square bomber, it's important not to have a fettered Homeland Security Department in a regulatory process that is stopped by overlying legislation.
This legislation is a job-killer, we already know. Let's not let it be a killer of Americans because it gets in the way of Homeland Security efforts doing the work that is necessary.
I ask my colleagues to support the Jackson Lee amendment that asks simply for a waiver of this legislation as it addresses the question of securing the homeland and the regulatory scheme that is needed by intelligence agencies, our Border Patrol agencies, our TSOs that deal with aviation security, our cargo inspectors. As it relates to that work, our front line, let us waive this legislation.
Mr. Chair, I rise today in support of my amendment to H.R. 527, the Regulatory Flexibility Improvements Act of 2011. This bill would amend the Regulatory Flexibility Act, RFA. The bill would expand the number of rules covered by the RFA and requires Federal agencies to perform additional analysis of regulations that affect small businesses.
As a senior member of the Homeland Security and ranking member of the Transportation Security Subcommittee, I am very concerned about any legislation that would hinder the Department of Homeland Security's ability to respond to an emergency, which is why the Department of Homeland Security, DHS, should be exempt from this legislation.
This bill delays the promulgation of federal regulations, and delays a Federal agency's ability to issue regulations when responding to an emergency and grants the Small Business Administration's, SBA, Office of Advocacy additional authority to intervene in agency rulemaking, without providing additional funding. Further, H.R. 527 repeals an agency's authority to waive regulatory analysis during an emergency.
The bill would add new review requirements to an already long and complicated process, allowing special interest lobbyists to second- guess the work of respected scientists and staff through legal challenges, sparking a wave of litigation that would add more costs and delays to the rulemaking process, potentially putting the lives, health and safety of millions of Americans at risk.
The Department of Homeland Security simply does not have the time to be hindered by frivolous and unnecessary litigation, especially when the safety and security of the American people are at risk.
According to a study conducted by the Economic Policy Institute, public protections and regulations ``do not tend to significantly impede job creation'', and furthermore, over the course of the last several decades, the benefits of Federal regulations have significantly outweighed their costs.
There is no need for this legislation, aside from the need of some of my colleagues to protect corporate interests. This bill would make it more difficult for the government to protect its citizens, and in the case of the Department of Homeland Security, it endangers the lives of our citizens.
In our post 9/11 climate, homeland security continues to be a top priority for our Nation. As we continue to face threats from enemies foreign and domestic, we must ensure that we are doing all we can to protect our country. The Department of Homeland Security cannot react to the constantly changing threat landscape effectively if they are subject to this bill.
Since the creation of the Department of Homeland Security in 2002, we have overhauled the government in ways never done before. Steps have been taken to ensure that the communication failures that led to 9/11 do not happen again. The Department of Homeland Security has helped push the United States forward in how we protect our Nation. Continuing to make advances in homeland security and intelligence is the best way to combat the threats we still face.
Hindering the ability of DHS to make changes to rules and regulations puts the entire country at risk. As the Representative for the 18th District of Texas, I know about vulnerabilities in security firsthand. The Coast Guard, under the directive of the Department of Homeland Security, is tasked with protecting our ports of entry. Of the 350 major ports in America, the Port of Houston is one of the busiest.
More than 220 million tons of cargo moved through the Port of Houston in 2010, and the port ranked first in foreign waterborne tonnage for the 15th consecutive year. The port links Houston with over 1,000 ports in 203 countries, and provides 785,000 jobs throughout the state of Texas. Maritime ports are centers of trade, commerce, and travel along our Nation's coastline, protected by the Coast Guard, under the direction of DHS.
If Coast Guard intelligence has evidence of a potential attack on the port of Houston, I want the Department of Homeland Security to be able to protect my constituents, by issuing the regulations needed without being subject to the constraints of this bill.
The Department of Homeland Security deserves an exemption not only because they may need to quickly change regulations in response to new information or threats, but also because they are tasked with emergency preparedness and response.
There are many challenges our communities face when we are confronted with a catastrophic event or a domestic terrorist attack. It is important for people to understand that our capacity to deal with hurricanes directly reflects our ability to respond to a terrorist attack in Texas or New York, an earthquake in California, or a nationwide pandemic flu outbreak.
On any given day the City of Houston and cities across the United States face a widespread and ever-changing array of threats, such as: terrorism, organized crime, natural disasters and industrial accidents.
Cities and towns across the nation face these and other threats. Indeed, every day, ensuring the security of the homeland requires the interaction of multiple Federal departments and agencies, as well as operational collaboration across Federal, State, local, tribal, and territorial governments, nongovernmental organizations, and the private sector. We can hinder the Department of Homeland Security's ability to protect the safety and security of the American people.
This bill expands the review that agencies must conduct before issuing new regulations and the review they must conduct of existing rules to include an evaluation of the ``indirect'' costs of regulations, and grants the SBA authority to intervene in agency rulemaking. The measure also expands the ability of small businesses and other small entities impacted by an agency's regulations to challenge those rules in court.
Under current law, the process already takes as long as eight years to complete. Given the nature of its mission, the Department of Homeland Security is the last agency that needs to be subject to more levels of regulation and scrutiny. Some advocates groups also have expressed concern that by extending the rulemaking process, regulatory uncertainty could increase, which may make it more cost effective for agencies to seek enforcement through the courts, and thereby reduce the public's ability to participate in the process.
These costs add to the cost of doing business with the Department of Homeland Security, and eat away at the profits of our businesses, particularly our small businesses which often are not as equipped to absorb additional costs. Moreover, many businesses dealing with national security have higher costs because of expensive equipment, and as such are already working with lower profit margins.
The prolonged or indefinite delay of these life saving regulations threaten the security, stability, and the delivery of vital services to the American people. I cannot speak for my colleagues on the other side of the aisle, but I certainly do not want to slow the promulgation of regulations to a drip.
I have offered this amendment to mitigate the uncertainty regarding federal laws and rulemaking in the area of national security because of the increased urgency when dealing with these often sensitive matters. The Department of Homeland Security is the newest federal agency, and as such already is subject to pioneering levels of oversight and scrutiny.
I urge the Committee to make my amendment in order to ensure that life saving regulations promulgated by the Department of Homeland Security are not unnecessarily delayed by this legislation.
Mr. Chairman, I demand a recorded vote.
Mr. Chairman, I have an amendment at the desk.
Mr. Chairman, I yield myself such time as I may consume.
I would like to think that our colleagues are in their offices communicating with their constituents and doing much of the work that we do and writing probably other great legislative initiatives, and they are paying attention to this debate and they keep hearing the words ``small businesses'' and they want to know why would any of us have a disagreement about small businesses when we have, I think, a consensus that small business are in fact the backbone of America; they are the job creators of America.
I recall many of us have initiatives. I have an initiative of visiting small businesses. Just a couple of weeks ago, I donned the clothing of a medical practice. I went to a beauty school and tried to do a little bit of hair design. I went to an energy company. I went on to a small export-import company, and I stood out as a safety officer for a construction company owned by a single mother.
So we all speak the language of small businesses. And you would think that my good friends on the other side of the aisle would have looked more closely at how damaging H.R. 527 is because, for those who may be listening in their offices and others, right now you have a three- agency framework of reviewing regulations dealing with small businesses.
Now you're going to include that all the agencies have to get into the act in stifling small businesses' activities and their growth and opportunity. Remember now, right now we have three, and then we're going to open up the lot so that every agency now has to go through a regulatory process to determine its impact on small businesses. It expands the use of small business review panels to review rules promulgated by all agencies to include all major rules, and some of these, of course, having the positive impact on our small businesses.
What is the significant economic impact? Nobody knows. It forces agencies to engage in wasteful, speculative analysis. It imposes an absurd and wasteful requirement on those agencies.
So I have a simple amendment. Ask the question beforehand: What is the economic impact of all of this vast new inclusion of other agencies to come down on our small businesses? It requires my amendment, a GAO study, to determine the cost of carrying out this bill and the effect it will have on Federal agency rulemaking. Simple, bipartisan amendment, I ask my colleagues to join me in supporting it.
I reserve the balance of my time.
I thank the gentleman.
Let me just continue looking for bipartisanship. I am hoping that I can convince my friend from Texas to not desire to have a can of worms, a potpourri of agencies coming out with the hand of oppression on small businesses.
This is a simple question that I'm asking. The GAO, the Government Accountability Office, simply would be asking the question: What is the significant economic impact on a substantial number of small entities which will greatly slow down the rulemaking process and substantially empower other competitors to small business to throw sand in the gears of rulemaking that will help small businesses, women-owned businesses, minority-owned businesses, disabled veterans?
What is the reason for not agreeing to an important study? It forces agencies to again engage in wasteful, speculative analysis, including an assessment of all reasonably foreseeable indirect economic effects.
We can do it ahead of time. Will this kill jobs is the question. It expands judicial review to include all agency actions and not just final agency action.
Mr. Chairman, can we not find an opportunity to come together on this? I would much rather have a report to tell me how many small businesses will shut down waiting for agency review of the rules that would be helpful to them.
Have we engaged with the Small Business Committee? Has anyone
asked the ranking member of that committee, even the chairman of that committee, who are champions of small business? I don't think I have seen the chairperson, but I have seen the ranking member, who listens to small businesses across the country. If there is a regulation that is going to help a small business, this bill kills it.
The small businesses are hanging on for dear life. Pass the rule. Pass the rule. Now you have put in all these agencies, dilly-dallying around trying to be able to find a way to stifle the growth of the small business.
Mr. Chairman, common sense tells Members that it doesn't hurt to have just this one bipartisan effort to get the answer of the economic impact beforehand. Down in Texas we say, close the barn door before the cow gets out, or the cart before the horse, the horse before the cart. We've got all of that. We've got confusion.
I am simply having a simple amendment that would allow the GAO to report on how we can better serve our small businesses and create the jobs that are necessary. I ask my colleagues, including Mr. Smith, to support this amendment.
Mr. Chair, I rise today in support of my amendment to H.R. 527, the ``Regulatory Flexibility Improvements Act of 2011.'' My amendment would require a GAO study to determine the cost of carrying out this bill and the effect it will have on federal agency rulemaking. In addition, the report must contain information on the impact of repealing the ability of an agency to waive provisions in the Regulatory Flexibility Act when responding to an emergency.
This bill would amend the Regulatory Flexibility Act of 1980 in such a manner that it would result in significant delays in the agency rule- making processes by mandating multi-agency analyses of both direct and indirect costs for rules proposed or finalized by a single agency.
My amendment simply requires that the Comptroller General, within 2 years after the enactment of the legislation, issue a report to Congress on the cost effectiveness of the changes implemented by this Act.
The report would list all additional costs and resources that each agency will have to expend to carry out this Act and the amendments made by the Act.
It would also show the effect of this Act and its amendments on the efficiency of the rule making process, including the amount of time required to make and implements a new rule.
This study would report on any impact that this Act or its amendments would have on the ability to implement new agencies in the event of an emergency. Lastly, this study would examine the overall compliance of agencies with the Regulatory Flexibility Improvement Act (RFIA).
By requiring that multiple agencies conduct detailed economic analyses of a rule proposed by a single agency, each agency will have to expend time and resources to uncover the indirect economic effects of the proposed rule. This is unduly burdensome on a process that is already sufficient in length, as rules currently require a 30 day period after publication prior to effectiveness.
There is one overarching problem with H.R. 527. Although it claims to make improvements, one thing it does not do is provide the needed clarification that the GAO has repeatedly pointed out, and that the agencies have asked for.
In the past, there have been GAO reports showing incidents of agency noncompliance with the current regulatory flexibility rules for rule making. The reports cited that this noncompliance is due largely to confusion surrounding the meaning of ``significant economic impact on a substantial number of small entities.'' Agencies have expressed the need to better clarification of this clause to aide them in determining when rule making analysis and review is necessary.
Another part of this expanded review and analysis called for in H.R. 527 that concerns me is the potential it has to impede upon emergency rulemaking. Every so often, there are instances when an agency has to implement a new rule or regulation in response to an emergency. Under the current law, there is an exception allowing agencies to bypass the review process in the event of an emergency. The provisions of this bill cloud that exception.
Furthermore, the rule-making process is made more cumbersome and expensive by requiring multi-agency review. If the purported reason for amending the Regulatory Flexibility Act with this bill is to save the American taxpayers money by including provisions requiring analyses of direct and indirect effects of proposed rules, then it should follow that the costs of implementing such provisions should not outweigh the benefits they provide.
My amendment will ensure just that by requiring the Comptroller General to issue a report to Congress that includes (1) the additional costs and resources that each agency must expend to maintain compliance with this Act, (2) an analysis of the effect that this Act has on the efficiency of the rule-making process, and (3) an analysis of the potential difficulties that may arise in an emergency situation in which an agency must implement new rules.
If the process by which government agencies create rules is changed to require the disclosure of all costs associated with a proposed rule, then shouldn't the Act that makes such changes have its own costs to the American taxpayers disclosed? My amendment will ensure that this disclosure is made to the public upon this legislation's enactment.
I yield back the balance of my time.