Scott Garrett

Mr. GARRETT

Mr. GARRETT. Mr. Speaker, I yield such time as he may consume to the gentleman from Arkansas (Mr. Hill), the sponsor of this legislation.

Mr. GARRETT. Mr. Speaker, having no further speakers at this time and appreciating the fact that this prioritizes the 50 front burners at the SEC, I yield back the balance of my time.

Mr. GARRETT. Mr. Speaker, on that I demand the yeas and nays.

Mr. GARRETT

Mr. GARRETT. Mr. Speaker, I stand today to remember and honor the life, faith, and service of Rachel Margaret Houston. A former legislative assistant in my office, Rachel passed away on April 10, 2016, at the far-too-young age of 32. Those of us who had the honor to know Rachel knew her kind heart, deep faith, and compassion for others. Friends and former co-workers remembered her as a ``wonderful'' and ``lovely person,'' and a ``soft, sweet spirit,'' with a ``bright smile, kind words, and warm heart.'' Rachel was that rare person who could reach out to someone new and make him or her feel welcomed, supported, and encouraged. Her kindness left a mark on all who knew and worked with her--whether for a short time, or over the course of years. In her professional life, Rachel exemplified qualities worth emulating. In her work for the people of New Jersey's 5th Congressional District, she demonstrated a commitment to excellence and always strove to give her best. Her colleagues and friends alike, both on and off Capitol Hill, recognized her for her sharp mind, loving spirit, and inner strength. Rachel was devoted to causes greater than herself and impacted many lives beyond her work in Congress. In 2006, she participated in the Family Research Council's Witherspoon Fellowship program to prepare for leadership and service in the public arena. She was an accomplished writer, and she also shared her faith, time, and talent through various mission trips as well as through her church family. Rachel was a blessing in the lives of all who knew her. She loved her God, her country, and her fellow man--and she will be missed. My prayer is that God will comfort her family and friends during this time, and that they will know that Rachel's life will be remembered.

Mr. GARRETT

Mr. GARRETT. Mr. Speaker, I thank the chairman for the time. I want to thank the gentleman from Minnesota (Mr. Emmer) for putting forth a piece of legislation that will shine the light of day on some of Dodd- Frank's most secretive creations. We often hear our friends from the other side of the aisle and regulators talking about their concerns over the so-called shadow banking system. The FSOC and its members have used this sinister term on multiple occasions to strike fear in the hearts of the public in order to advance, basically, their growth-strangling regulatory regime. But the real threat is not from shadow banking. The real threat comes from the shadow regulatory system that basically operates outside of our system of checks and balances with absolutely no accountability to the public and with little or no input from the Congress to conduct our proper oversight. You see, the FSOC and the OFR are the embodiment of this shadow system. For years now, the FSOC has continuously denied our committee's simple request for some information about how it operates and about its proceedings. Really, all we know about these meetings are a few sentences that it drops into their press releases. Meanwhile, even though the OFR embarrassed itself with its asset manager report that was issued back in 2013, that office basically still operates largely outside of the public eye. So it is time to shine the light of day on both of these bodies, Mr. Speaker, particularly in light of the recent invalidation of MetLife's too-big-to-fail designation by FSOC. The underlying legislation would restore Congress' Article I authority by putting Congress back in charge of funding both FSOC and OFR, by requiring OFR to submit regular reports to Congress that the American public can see. It is time to stop letting bureaucrats in this town run wild, let's put Congress back in charge, and let's put back the checks and balances for these troubling agencies.

Mr. GARRETT

Mr. GARRETT. Mr. Speaker, I rise today to recognize the 75th anniversary of an iconic American candy first made in the great State of New Jersey. On March 3, 1941, in Newark, New Jersey, Mars began producing M&Ms as military rations for those serving in World War II. Over the 75 years since their founding, M&Ms grew to become an internationally recognized brand and a symbol of American innovation and quality. To this day, Mars continues to produce M&Ms in my district in Hackettstown, New Jersey. New Jersey is also home to Mars Global Chocolate headquarters, and they operate four facilities in a State employing over 1,700 associates. Mars has remained active in New Jersey communities over the years, and I applaud their philanthropic endeavors and their commitment to our local towns. No doubt New Jersey is a sweeter place because of M&Ms. On behalf of the Fifth District of New Jersey, I am pleased to have the opportunity to recognize this extraordinary anniversary for M&Ms.

Mr. GARRETT

Mr. GARRETT. Mr. Speaker, I rise today to observe the 69th commemoration of Taiwan's ``2-28 Massacre.'' On February 28, 1947, the brutal arrest of a female civilian in Taipei led to large-scale protests by the native Taiwanese against the Chinese Nationalist government. During the following days, government troops arrived from mainland China. These soldiers began capturing and executing leading Taiwanese lawyers, doctors, students, and other citizens. It is estimated that between 10,000 and 30,000 people lost their lives during the turmoil. Throughout the following four decades, Taiwan remained under martial law that lasted until 1987. The ``2-28'' Massacre had far-reaching implications. The Taiwanese democracy movement that grew out of the incident helped pave the way for Taiwan's momentous transformation from living under a dictatorship to a thriving democracy. I urge other Members to join me in commemorating this important historical event.

Mr. GARRETT

Mr. GARRETT. Mr. Chairman, I thank the chairman. I want to commend Mr. Hultgren, Mr. Hill, and all of the sponsors who have worked so hard on the underlying legislation and for the dedication to doing what? Improving the capital markets and creating jobs in this country. Mr. Chairman, the last decade has really not been kind to middle class Americans and to lower income Americans as well, where people are struggling to make it to the 15th of the month or the end of the month. We have not experienced in this country a 3 percent GDP since, I think, back in 2005. Middle class income wages are basically stagnating, and the number of people in poverty in this country during this administration has reached an astonishing 50 million people. Did you hear that? Fifty million people during the Obama administration find themselves still in poverty right now. Yet, the Obama administration continues--if you listen to him and our committee meetings from the other side of the aisle, they tout the supposed strength of the recovery, despite the fact that, under President Obama, only the rich in this country have gotten richer while the poor and the middle class continue to struggle. Today our committee brings to the floor a package of bills that will do what, they will help small businesses. They will help people get new jobs. They will help the creation of new hiring. They will help those hardworking Americans who want to get a better job and improve themselves to create wealth in this country and not just rely, as in the past, on taxpayer economic sugar highs provided by the Federal Reserve or wasteful stimulus programs. What do we have right now? We have five bills. We have Mr. Hultgren's legislation that will help hardworking Americans by giving Americans more chance to do what? Invest their money so they can work. We have Mr. Hurt's legislation initiatives to hold the SEC accountable, yes, hold American bureaucrats accountable and reduce Washington's unnecessary burdens on small public companies. We have Mr. Huizenga's bill to make it easier for small businesses to simply receive advice from professionals. Finally, we have Mr. Hill's bill over here that will allow investors greater access to research on investment funds before they invest their money. Mr. Chairman, what we have here is that not a single one of these provisions will grow the bureaucracy, not a single one of these provisions will throw more taxpayer dollars at the situation in the hopes that it will solve some perceived problem out there, and not a single one of these provisions include any new Federal mandates on the job creators of this country: small businesses. Each and every one of these is a positive solution to our economic problems. As an added bonus, they all have the benefit of being bipartisan. Again, I thank you and all the sponsors for their support. I urge my colleagues to support H.R. 1675.

Mr. GARRETT

Mr. GARRETT. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 2187) to direct the Securities and Exchange Commission to revise its regulations regarding the qualifications of natural persons as accredited investors, as amended.

Mr. GARRETT. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days to revise and extend their remarks and to include any extraneous materials on this bill.

Mr. GARRETT. Mr. Speaker, I yield myself 3 minutes. Mr. Speaker, I rise in support of H.R. 2187, the Fair Investment Opportunities for Professional Experts Act. I would like to thank Mr. Schweikert from Arizona for his diligent work on this bill and members on both sides of the aisle who approved this bill in the Financial Services Committee by an overwhelming vote of 54-2. Mr. Speaker, small and emerging companies play a significant role as drivers of the U.S. economic activity, innovation, and job creation. In fact, the majority of net jobs created in the U.S. are from companies less than 5 years old. Most of these companies are privately held companies, and their ability to raise capital in the private market is critical to the economic well-being of the U.S. and millions of American families. But in order for small companies to raise capital in the private market, under SEC regulations they must sell securities only to what are known as ``accredited investors.'' And what exactly determines whether an investor is accredited? Well, the SEC has for years determined that an individual investor's financial status should be the sole proxy for determining whether or not they are able to understand the risks and rewards. In other words, the SEC has taken the position that only very wealthy individuals should be allowed to invest in such offerings. That really makes very little sense. Under the SEC's logic, a random winner of the Powerball lottery would be automatically deemed a sophisticated investor. But an individual who holds advanced degrees and works in finance or a related field, but who happens to make slightly below what the SEC's threshold is, that person would be barred from investing in private offerings. You see, despite the paternalistic view taken by Washington regulators, there are plenty--plenty--of hardworking and smart Americans who are plenty capable of understanding investments in private businesses. Congress must, therefore, amend the definition of ``accredited investor'' in order to expand the pool of potential investors in a private placement market. H.R. 2187 will do just that by codifying the current accredited investor income and net worth thresholds, adjusted for inflation going forward. Additionally, it will extend accredited investor status to persons who the SEC determines have a demonstrable education or job experience to qualify as having professional subject matter knowledge related to that investment. In other words, the expansion of the accredited definition will enhance small companies' ability to raise capital and to grow by increasing the pool of potential investors, while at the same time increase investment opportunities for more Americans. In fact, allowing more individuals to invest in both public and private companies could ultimately have the effect of decreasing the risk in these portfolios themselves. Finally, as SEC Commissioner Mike Piwowar pointed out in a speech last year: ``By holding a diversified portfolio of assets, investors reap the benefits of diversification, that is, the risk of the portfolio as a whole is lower than the risk of any individual asset . . . if the correlations are low enough, the overall portfolio risk could actually decrease.'' Mr. Speaker, what that means is H.R. 2187 has a double benefit of affording American businesses more opportunities to raise capital, while actually providing hardworking Americans a greater opportunity to create wealth for themselves and their families. I ask my colleagues on both sides of the aisle to join me in supporting H.R. 2187. I reserve the balance of my time.

Mr. GARRETT. Mr. Speaker, I yield such time as he may consume to the gentleman from Arizona (Mr. Schweikert), the sponsor of the underlying legislation, and the gentleman who has put all the time and hard work on this great bipartisan piece of legislation.

Mr. GARRETT. Mr. Speaker, how much time do I have remaining?

Mr. GARRETT. Mr. Speaker, I yield such time as he may consume to the gentleman from Arkansas (Mr. Hill).

Mr. GARRETT. Mr. Speaker, I yield myself 10 seconds to again thank Mr. Carney, and especially the gentleman from Arizona (Mr. Schweikert) for his work on this. I yield back the balance of my time.

Mr. GARRETT

Mr. GARRETT. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 3784) to amend the Securities Exchange Act of 1934 to establish an Office of the Advocate for Small Business Capital Formation and a Small Business Capital Formation Advisory Committee, and for other purposes, as amended.

Mr. GARRETT. Mr. Chairman, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and to include any extraneous material with regard to this bill.

Mr. GARRETT. Mr. Speaker, I yield myself such time as I may consume. I rise in support of H.R. 3784, the SEC Small Business Advocate Act. I would like to thank the gentleman from Delaware (Mr. Carney) and the gentleman from Wisconsin (Mr. Duffy) of the Financial Services Committee, as well as the gentleman from Florida (Mr. Crenshaw) and the gentleman from Illinois (Mr. Quigley) of the Appropriations Committee, for working together in a bipartisan manner on this bill. In doing so, it has resulted in the Financial Services Committee's favorably reporting H.R. 3784 out of committee by a unanimous vote. Mr. Speaker, the SEC has a three-part mission: to protect investors, to maintain fair and orderly and efficient markets, and to also facilitate capital formation. Yet, if you think about it, the SEC has really given a short shrift to the capital formation part of its statutory mandate, and it is to the detriment of entrepreneurs and to the startup ventures. Although small companies are at the proverbial forefront of technological innovation and also of job creation, they often face significant obstacles in obtaining the necessary capital and funding. These obstacles, if you will, are often attributable to the proportionally large burden that security regulations place on them. They are often written for large public companies, and they are placed then on small companies which then seek to go public. By failing to fulfill this important part of its mandated mission, the SEC is basically hurting the small companies. It is impeding economic growth, and it is basically hindering job creation, which is so desperately needed in this country. When the SEC has failed to advance its mission in facilitating capital formation, Congress has stepped into this vacuum, most notably through the enactment of the JOBS Act back in 2012. You see, while the JOBS Act has made it easier for these companies to go public, the JOBS Act alone has not been enough. It has not been enough to entirely overcome all of the obstacles that the companies face in trying to go public. So now we have H.R. 3784. It creates the SEC small business capital formation advocate, and he will provide an independent voice for small business capital formation on par with the SEC's investor advocate. This new advocate will support the interests of small businesses and provide guidance to the SEC on advancing a post-JOBS Act capital formation agenda, something that, unfortunately, if you look at the track record, the SEC has failed to do for years. The small business advocate will support the interests not only of entrepreneurs and of job creators, but they will do so also on behalf of investors. Finally, it is clear that fundamental change is needed within the SEC in order to get this agency to focus on the capital formation mandate. H.R. 3784 will provide a permanent voice for small businesses at the SEC, and it will help them ensure that the SEC does not neglect, anymore, this important mandate in the future. Again, I ask my colleagues to support H.R. 3784 in a bipartisan manner, just as was done in committee. Mr. Speaker, I reserve the balance of my time.

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

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

Mr. GARRETT. Mr. Speaker, I yield myself the balance of my time. Again, I commend the gentleman for his work on this legislation and for the bipartisan nature of this and of most of the bills, actually, that will be coming to the floor today that were passed out of committee in a bipartisan manner. I yield back the balance of my time.

Mr. GARRETT

Mr. GARRETT. Mr. Speaker, I yield such time as he may consume to the gentleman from Minnesota (Mr. Emmer).

Mr. GARRETT. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 4168) to amend the Small Business Investment Incentive Act of 1980 to require an annual review by the Securities and Exchange Commission of the annual government-business forum on capital formation that is held pursuant to such Act.

Mr. GARRETT

Mr. GARRETT. Mr. Speaker, I have two additional speakers. I yield such time as he may consume to the gentleman from Maine (Mr. Poliquin).

Mr. GARRETT. Mr. Speaker, I yield such time as he may consume to the gentleman from New Mexico (Mr. Pearce).