Ken Buck

Mr. BUCK

Mr. BUCK. Mr. Speaker, I have an inquiry for the Speaker, if I may. What is the title of this bill?

Mr. BUCK. Mr. Speaker, I yield back the balance of my time, and I move the previous question on the resolution.

Mr. BUCK. Mr. Speaker, I ask unanimous consent that all Members have 5 legislative days to revise and extend their remarks.

Mr. BUCK. Mr. Speaker, for the purpose of debate only, I yield the customary 30 minutes to the gentleman from Massachusetts (Mr. McGovern), pending which I yield myself such time as I may consume. During consideration of this resolution, all time yielded is for the purpose of debate only. General Leave

Mr. BUCK. Mr. Speaker, by direction of the Committee on Rules, I call up House Resolution 242 and ask for its immediate consideration.

Mr. BUCK. Mr. Speaker, I have no further speakers, and I reserve the balance of my time.

Mr. BUCK. Mr. Speaker, I rise today in support of the rule and the underlying legislation. H.R. 1219, the Supporting America's Innovators Act of 2017, will allow America's small businesses to thrive, creating jobs, developing incredible products and services, and growing our Nation's economy. Starting a business, designing a product, developing a service, these projects often require upfront capital. For entrepreneurs and startups in this country, access to capital is one of the biggest hurdles they will face. Without it, they may not have the cash on hand for research and development, the funds to make payroll at the end of the month, or the raw material needed to start production. Mr. Speaker, H.R. 1219 seeks to provide more sources of funding for our small businesses by raising the cap that requires a group of investors to register as an investment company. This change in the law is important. It allows angel funds, which are basically a pool of accredited investors, to permit up to 250 investors in one fund as opposed to the 100 permitted by current law. As long as the fund does not exceed $10 million in capital commitments, it would be considered a qualified venture capital fund that is exempt from costly registration with the SEC. Angel funds allow individuals who may not otherwise invest in startups to join together and direct their investment dollars to promising young companies. Without raising the cap on the size of these funds, we may be pushing potential investors out of the market. Small businesses, in their earliest stages, often have nowhere to turn for credit. While banks have historically been a source of funds, in recent years, small business loans from banks have declined. That is where these groups of individual investors come in. In many cases, they are providing just enough cash to push businesses off the ground to the next level of funding; but by overregulating groups of angel investors, we are blocking significant sources of capital from ever reaching startups. We need to wisely regulate in this country, and this legislation doesn't eliminate the need for larger investment funds to register with the SEC. It simply raises the cap for smaller groups of individuals to contribute a limited amount of funds to the American small business community. For businesses on the receiving end, these funds may be the difference between success and bankruptcy. Thankfully, the Jumpstart Our Business Startups Act has already raised the cap requiring companies to register with the SEC from 500 investors to 2,000 investors. By allowing small companies to seek more individual investors, these businesses can expand the number of individuals who have a stake in the company's future, the number of individuals who will ensure the venture succeeds. H.R. 1219 is a natural complement to the JOBS Act, allowing those potential investors to more easily join their resources to efficiently and successfully invest in America's small businesses. In fact, the current limit on the number of investors who can join together, set by the Investment Company Act of 1940, is a relic from nearly 80 years ago. In the past 80 years, our financial market and our economy have drastically changed. The barriers to entry for small businesses in many industries are lower than ever. Just yesterday, I spent time with Etash Kalra. Etash is a young man from my district who won the Congressional App Challenge. Already, in high school, he takes computer science classes and codes smartphone apps. He even started a club to teach others programming. He and students like him have many of the skills needed to start a small business. They have the ability to create software programs that consumers want and need. They may start small, they may start in high school, but they hold great potential. Many individual investors may see that potential. This bill allows those investors to make a down payment on the future of these young entrepreneurs. Without growing the sources and amount of capital available to these businesses, we will end up stifling the innovation and entrepreneurial spirit that our country is known for. Our Nation is successful because Americans are innovators and hard workers. Those Americans who start businesses embody this spirit. We are not here asking for the government to help these people succeed. No, these individuals are fully capable of building businesses on their own. But we are here asking the government to step out of the way so that our fellow citizens can help American small businesses succeed. This rule and the underlying legislation should not be controversial. Last Congress, similar legislation passed the Financial Services Committee by a vote of 57-2. It then passed the House by a vote of 388- 9. Yesterday, I came to the House floor and spoke about the importance of passing bipartisan bills. Many Americans see their Capital awash in partisanship and bickering. They suffer under poorly crafted policies, while politicians in D.C. fail to find consensus on legislation that would help. They wonder why politicians who talk about bipartisanship on the campaign trail can't come together in Washington to pass commonsense legislation. The challenge before us is to find solutions to our Nation's problems that overlap the principles held by both parties. That is why this bill is refreshing. It stands as an exemplar of the sort of consensus-driven legislation that can earn America's trust. Everyone can agree that innovative companies help the American economy grow and add to the quality of life in our Nation. Everyone recognizes how important access to capital is for small businesses. This bill was reported out of the Financial Services Committee with overwhelming support. I ask now that the entire House support the rule and this underlying legislation. Mr. Speaker, I reserve the balance of my time.

Mr. BUCK. Mr. Speaker, I yield myself the balance of my time. Mr. Speaker, I appreciate my friend from Massachusetts quoting me yesterday, and I would love to just emphasize a few of the words that he said a moment ago: I also shudder to think if Hillary Clinton won the Presidency. My friend was kind enough to focus his half hour on H.R. 1219, Supporting America's Innovators Act of 2017. It is, in fact, a great piece of legislation, and I am proud to close now on that bill. We have the opportunity today to improve access to capital for America's entrepreneurs and startups. The men and women who start companies in this Nation put everything on the line. They give of their time and their financial resources. They give of their weekends and evenings and vacations. Our economy relies on the small businesses that these men and women create. Small businesses are the backbone of the American economy. They provide jobs and important products and services. They contribute to the life of their communities. If we want to grow our economy, if we want to increase hiring, if we want to improve our quality of life, then we need to unleash America's entrepreneurs and startups. That is why we need to support this bill. We must expand access to credit for small-business owners. We need to make it easier for angel investors to take a risk on young companies. We are not asking the American taxpayer to take a risk or spend any money on this. We are simply asking the Federal Government to allow angel investors to join together in larger groups to invest in promising young American companies. I am encouraged that this bill represents a bipartisan effort to make small-business owners in this country more rewarding. When the cost of starting a small business is outweighed by the reward, our country will benefit from the resulting innovation and job creation. We simply need to give entrepreneurs the tools they need to succeed, and one of those tools is access to capital. America's entrepreneurs and startups need H.R. 1219. Americans who want to work for small businesses need H.R. 1219. Americans who want to buy great products, access incredible services, and visit amazing websites all need H.R. 1219. I thank Chief Deputy Whip McHenry for introducing this important bill, and I thank Chairman Hensarling for bringing this legislation before us. I also thank Representative Velazquez, Representative Hollingsworth, Representative Sherman, and Representative Gottheimer for cosponsoring this legislation. I ask my colleagues to vote ``yes'' on the rule and vote ``yes'' on the bill.

Mr. BUCK

Mr. BUCK. Mr. Speaker, by direction of the Committee on Rules, I call up House Resolution 240 and ask for its immediate consideration.

Mr. BUCK. Mr. Speaker, I have no other speakers, and I reserve the balance of my time.

Mr. BUCK. Mr. Speaker, I yield back the balance of my time, and I move the previous question on the resolution.

Mr. BUCK. Mr. Speaker, I yield myself the balance of my time. Mr. Speaker, we often talk about coming together in support of good policy. We all have friends on both sides of the aisle, and we routinely promise to work together on issues upon which we agree. Most of us speak in front of our constituents about our desire to work with the other party. However, we all know that Americans perceive us to be constantly engaged in partisan conflict. It is unfortunate that we are not able to work together on good legislation more often. It is understandable that Americans feel disappointed by Washington's partisan sniping. But here before us today is a bill with wide bipartisan support. Not only has it already received numerous bipartisan votes, there were only two amendments offered to the bill. One amendment was withdrawn because it was not germane. The other amendment from my good friend from Colorado and the Rules Committee, Mr. Polis, is simply requiring a report. Why is this bill so noncontroversial? I believe it has to do with the process by which we received this legislation. The Committee on Financial Services held hearings as far back as 2015 in which problems with the SEC rule were raised by small- business owners. The sponsor of this bill, Mr. Hultgren, worked with his Democratic colleagues on the committee and introduced a proposal to reform the SEC rule. Chairman Hensarling held a full committee markup last month which allowed for full debate and amendment, and now we have the bill on the floor this week. Good process produces good policy. But perhaps equally as important, good process helps instill faith in this institution. When Americans see us take up an issue, hear their concerns, and work together to find a commonsense solution, they will trust us to tackle even bigger problems. This may not be the largest legislative product that Chairman Hensarling and the Financial Services Committee produce in this Congress, but, nevertheless, it is an important work that is helping us solve problems faced by American small businesses. This legislation ensures that the employees of America's small businesses can take ownership in their companies and their jobs. It reduces regulatory encroachment on America's job creators and helps our small businesses expand and grow. I thank Representative Hultgren for bringing this bill before us. I commend Chairman Hensarling for working with both sides of the aisle and for following a good process on this legislation. Mr. Speaker, I urge my colleagues to vote ``yes'' on the rule and vote ``yes'' on the bill.

Mr. BUCK. Mr. Speaker, I reserve the balance of my time.

Mr. BUCK. Mr. Speaker, I yield 4 minutes to the gentleman from Michigan (Mr. Huizenga).

Mr. BUCK. Mr. Speaker, I just want to respond briefly to my friend from Colorado's comments about the nature of the rule. The Rules Committee did make in order every single germane rule that was offered to this bill. Mr. Speaker, I yield such time as he may consume to the gentleman from Illinois (Mr. Hultgren).

Mr. BUCK. Mr. Speaker, for the purpose of debate only, I yield the customary 30 minutes to the gentleman from Colorado (Mr. Polis), pending which I yield myself such time as I may consume. During consideration of this resolution, all time yielded is for the purpose of debate only. General Leave

Mr. BUCK. Mr. Speaker, I ask unanimous consent that all Members have 5 legislative days to revise and extend their remarks.

Mr. BUCK. Mr. Speaker, I rise today in support of the rule and the underlying legislation. Americans have always been a people known for taking ownership. We take ownership of our lives and livelihoods, working hard to provide for our families. We take ownership in our communities, setting standards of conduct. We take ownership in all our political process, voting for the right candidates. We have even taken ownership in our world, fighting evil actors and regimes to maintain peace. H.R. 1343, the bill we are discussing today, allows employees to take ownership in their companies. This is the American way. Under SEC rule 701, private companies can offer their own securities to employees, enabling those employees to take a stake in the company. This is a great deal for both businessowners and employees. I doubt either side of the aisle would disagree. Rule 701 allows employers to better recruit talented employees and pay them without having to borrow money or sell securities. For some companies, especially younger ones, compensating employees through equity is vital for survival. These younger companies need the top talent but often can't pay the top salaries. Rule 701 allows them to offer potential recruits a tradeoff: accept a lower salary now for more equity in the company later. By giving the employees a stake in the company, businessowners reward the employees for their continued hard work and innovation. Workers have an opportunity to buy into the mission and future of the company. They have the opportunity to reap what they sow, making their work more meaningful and fulfilling. Mr. Speaker, H.R. 1343 simply raises the reporting threshold for companies who issue securities to their employees as compensatory benefits. Right now, any company that issues more than $5 million of securities in a yearlong period faces significant reporting requirements, including financial statements and disclosure of risk factors. These requirements cost small businesses time and money, making them less likely to issue stock as compensation for their employees. That is why this legislation moves the threshold up to $10 million. The original $5 million threshold was added to rule 701 in 1999 and hasn't been updated since. By easing the threshold and indexing it to inflation every 5 years, we allow companies to increase the amount of stock they offer to employees. Additionally, raising the threshold will prevent private companies from having to disclose confidential financial information. America is known for taking ownership, but we are also known for innovation. Our technology industry, especially, has propelled our economy and quality of life forward. But so many great tech companies started as small startups, struggling along from month to month before the financial rewards of their hard work could be achieved. Thinking about the young companies right now that have grand innovative visions for improving our quality of life, this legislation will help them thrive. The employees already pour so much of their livelihoods into the venture. This bill will reward those workers with equity so that their perseverance and investment will pay off. Mr. Speaker, before I close, I would like to discuss the broad support for this bill. I indicated earlier that both sides of the aisle can support this legislation, and I want to highlight that bipartisan support for the bill. H.R. 1343 has equal numbers of Republican and Democratic sponsors. Further, the bill passed out of the Financial Services Committee 48-11. A majority of the Democrats on the committee supported the bill. A similar bill passed with a bipartisan vote last Congress, with more than two dozen Democrats joining Republicans to pass the bill. And in the Senate, this same basic proposal passed the Senate Banking Committee by a voice vote just a few weeks ago. Mr. Speaker, it is clear to see why this proposal is generating so much bipartisan support. With a higher threshold, companies can focus their time on innovating and creating jobs instead of filling out paperwork. Employees, meanwhile, can take a stake in their company and their own future. I urge my colleagues to vote for this important rule and the underlying legislation. Mr. Speaker, I reserve the balance of my time.

Mr. BUCK

Mr. BUCK. Mr. Chairman, I have an amendment at the desk.

Mr. BUCK. Mr. Chairman, I yield back the balance of my time.

Mr. BUCK. Mr. Chairman, I rise today in support of my amendment to H.R. 1367. First, I thank Chairman Roe and Representative Wenstrup for bringing this bill before us today and for consideration of my amendment. As Americans, as Members of Congress, our job is to serve and care for our veterans once they return home. That is what H.R. 1367 does. My amendment strengthens this important bill, guaranteeing that the Department of Veterans Affairs can employ the best people to care for our veterans. My amendment makes clear that former political appointees at the VA are not eligible for direct hire authority for competitively selected positions without first going through the proper civil service hiring process. America's veterans deserve the top care from people who are devoted to serving them. The VA is run by hardworking civil servants, men and women hired in a competitive, merit-based process that assessed their skill and their passion for serving our Nation's veterans. Political appointees, on the other hand, are meant to serve their appointing President's agenda for a temporary period of time. Part of their duty to the Nation is to know when it is time to step down from their position of power. My amendment prevents former VA political appointees from using their political connections to jump ahead of other qualified individuals, burrowing into a high-paying career position at the VA. Along with my friend and colleague Representative Lieu, I have already introduced a bill to address the problem of political burrowing. H.R. 1132 would prevent political appointees from burrowing into the civil service across the government for 2 years after leaving their political position. Until that bill is enacted, this amendment will ensure that the most qualified workers are filling the crucial jobs at the VA, providing our veterans the treatment they deserve. We must protect the independence of our merit-based civil service, we must employ the best people in the VA, and we must guard our veterans from the failed policies and practices of administrations past. I urge a ``yes'' vote on my amendment, and I reserve the balance of my time.

Mr. BUCK. Mr. Chairman, I yield 1 minute to the gentleman from Ohio (Mr. Wenstrup), my friend and colleague.

Mr. BUCK

Mr. BUCK. Mr. Speaker, I yield the gentleman an additional 2 minutes.

Mr. BUCK. Mr. Speaker, I yield 2 minutes to my friend from Georgia (Mr. Collins).

Mr. BUCK. Mr. Speaker, may I inquire how much time I have remaining?