Bill Huizenga

Mr. HUIZENGA

Mr. HUIZENGA. Mr. Speaker, I rise today with deep hesitation in supporting another clean extension of the National Flood Insurance Program through November of this year. While I completely agree that letting this program lapse in the middle of hurricane season is deeply problematic, it is inconceivable to me that even extremely modest reforms to this troubled program are not included in this legislation. The House amendment to S. 1182 is a simple piece of legislation with a simple extension. What is notable, however, is the fact that the legislation contains none of the reforms passed by this House in a bipartisan manner in November, nor does the legislation contain any of the more modest reforms recently introduced by my colleagues from California and Oregon, Representatives Royce and Blumenauer. Mr. Speaker, as the gentleman from Missouri said, this will be extension number 7 in less than a year. This is even after Congress forgave that $16 billion in NFIP debt, all while fewer than 2 percent of the 5 million policies that are out there have absorbed more than $8 billion in payments. These numbers are staggering. Instead of passing clean extension after clean extension, the Senate should--no, wait a minute--the Senate must do its job and take up bipartisan reform that we passed in November. I urge my colleagues to be responsible and work toward crafting a long-term reauthorization of this, a program that needs to shift towards risk-based rates, increasing private sector involvement in the program, and to address repetitive loss properties, all of which will put the program on a more sustainable financial path. I grew up in a floodplain in Michigan right along Lake Michigan and the Great Lakes. This is real for those of us in west Michigan. But at the end of the day, with this legislation, a ``no'' vote is not a lack of willingness or interest to address this issue, as it may be portrayed; but, equally, a ``yes'' vote should not be acceptance of the status quo. Hopefully, by this bill moving forward, there may be action in the Senate. Frankly, at the end of the day, Members are being put in an impossible no-win situation; not for us, Mr. Speaker, but for our constituents, the taxpayers, it is a no-win situation.

Mr. HUIZENGA

Mr. HUIZENGA. Mr. Chairman, I will repeat a couple of things very briefly. All of these proxy proposals have garnered 23 percent, average, support, so there is not widespread support among the investors. And again, I will repeat that three-pronged mission that the Securities and Exchange Commission has: ``protect investors; maintain fair, orderly, and efficient markets; and facilitate capital formation.'' This particular effort does none of those things, advances none of those things, and that is why I oppose the amendment. Mr. Chairman, I yield back the balance of my time

Mr. HUIZENGA. Mr. Chairman, since the courts have weighed in, Democrats have been attempting to use the securities laws to mandate the disclosure of companies' political spending activities in order to name and shame companies from engaging in such free speech activity. Time and time again, when the issue of political disclosure has come up as a shareholder proposal at every company's annual proxy meeting where it has been proposed, it has been shot down. It has been defeated. In fact, according to Proxy Monitor, the average percentage vote in favor of a political disclosure shareholder proposal in 2016 was just 23 percent support. Shareholders have repeatedly weighed in against requiring disclosure of this information and do not believe it is important in making their own investment decisions regarding that company. Our securities laws and disclosure requirements have always centered on the concept of materiality, as determined by the Supreme Court, whether an omitted fact is material by looking at ``whether there is a substantial likelihood that a reasonable shareholder would consider it important in deciding how to vote.'' In fact, under the Obama administration, former SEC Chair Mary Jo White declined to advance a political disclosure rule, stating it was ``not one of the priorities we are advancing.'' Additionally, former Chair White was vocal about ensuring that disclosures were not causing informational overload for investors. As a member of the Financial Services Committee, we heard repeated-- repeated--testimony on that fact. This provision to prevent the SEC from issuing a political disclosure rule has continually been part of appropriations packages that have been signed into law by Presidents of both parties and should continue to stay as part of this package. Now, earlier you heard that the mission of the SEC is to provide transparency. Let me read exactly what the mission of the Securities and Exchange Commission is: ``The mission of the U.S. Securities and Exchange Commission is to protect investors; maintain fair, orderly, and efficient markets; and facilitate capital formation.'' This simply does not fit into that tripartite mission of the Securities and Exchange Commission. Now, with that being said, nothing--and let me repeat that, nothing-- prevents companies from voluntarily reporting this information if they believe that it is important for them to make such disclosures or for their shareholders to also vote that way. So all companies, private and public, should remain free to do just that: make that decision as they decide is the best course for that particular company. Mr. Chairman, I reserve the balance of my time.

Mr. HUIZENGA. Mr. Chairman, I claim the time in opposition to the amendment.

Mr. HUIZENGA

Mr. HUIZENGA. Mr. Speaker, I rise today regarding missed votes due to a flight delay. Had I been present for roll call vote number 329, H.R. 4946 to designate the facility of the United States Postal Service located at 1075 North Tustin Street in Orange, California, as the ``Specialist Trevor A. Win'E Post Office'', I would have voted Yea. Had I been present for roll call vote number 330, H.R. 4960 to designate the facility of the United States Postal Service located at 511 East Walnut Street in Columbia, Missouri, as the ``Spc. Sterling William Wyatt Post Office Building'', I would have voted Yea.

Mr. HUIZENGA

Mr. HUIZENGA. Mr. Speaker, I thank the chairman for the opportunity to lead this effort. Mr. Speaker, the United States has the strongest, deepest, and most liquid markets in the world, which has helped hardworking Americans save for everything from college, to home ownership, to retirement. However, over time, our capital markets have become, frankly, less stable, less efficient, and less liquid due to the one-size-fits-all securities regulations currently in place. In fact, small and midsized companies, which are the heartbeat of the American economy, are struggling the most because of this outdated regulatory structure. They have the most difficult time obtaining the necessary capital and financial resources needed in order to expand and create jobs because they are drowning in regulation and increased compliance costs. Although the bipartisan Jumpstart Our Business Startups Act, JOBS Act, back from a few years ago was an important first step in helping appropriately tailor regulation and promote capital formation, particularly for the small and emerging growth companies, it is clear that Congress needs to do more. Today's bill, the JOBS and Investor Confidence Act, is a compilation of 32 bipartisan bills that will promote capital formation and ensure that our regulatory structure is appropriately tailored to allow the free flow of capital, strengthen job creation, and increase economic growth. Mr. Speaker, our economy is finally starting to fire on all cylinders. With this reform-minded legislation, we can further unleash American innovation, economic growth, and job creation while providing greater investment opportunities for Mr. and Mrs. 401(k). Today, we can deliver some very commonsense regulatory relief, while also providing an important layer of investor protections, and make our capital markets even more efficient. By voting in support of this important progrowth jobs package, we can open the door to innovation, enhance small-business job creation, and increase opportunity for hardworking Americans in west Michigan and across the Nation. Mr. Speaker, I urge all my colleagues to support S. 488, the JOBS and Investor Confidence Act, and, again, I say thank you to the chairman, the ranking member, and my subcommittee chair as well for their work.

Mr. HUIZENGA

Mr. HUIZENGA. Mr. Speaker, I rise today regarding missed votes due to meeting with a constituent. Had I been present for rollcall vote No. 328, H.R. 50 Unfunded Mandates Information and Transparency Act of 2017, I would have voted ``yea.'' Personal Explanation

Mr. HUIZENGA

Mr. HUIZENGA. Mr. Speaker, it has been a long afternoon. We have covered a lot of territory, eight different bills, I think, today. As I had said earlier, there is no magic bill that is going to somehow cure or remedy some of the challenges that our capital markets have seen over the last number of years, but this is a step towards that. H.R. 5970 and so many of these other bills are important steps that this House is taking on a very bipartisan basis. I commend everybody who has worked on this--Mr. Gottheimer and Mrs. Wagner in this particular case--and I look forward to continuing to work with my colleagues across the aisle to search for true solutions in policy and to set aside the politics of what needs to happen. Mr. Speaker, I urge my colleagues to vote in favor of H.R. 5970, and I yield back the balance of my time.

Mr. HUIZENGA. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I commend my colleague, Mrs. Wagner, from Missouri for her work on this very important bill. This is part of a series of bills that we have seen, not just today but throughout the time that we have put forth on the Capital Markets Subcommittee, as well as the Financial Services Committee overall, because we know that there is no one thing that has ground the gears of our economy to a halt or to slow it down, and there is also no one magic thing that can happen or be passed that will suddenly spring it to life. It is a little like throwing sand in the gears of a machine. Over time, it just gets harder and harder and harder for that machine to grind on. We are here through a whole series of bills, both today and at other times, to add a little oil to the machine, to try to make sure that our capital markets are continuing to move and to be the envy of the world. We know, Mr. Speaker, that our capital markets here in the United States have been and continue to be the envy of the world, and they are a vibrant ecosystem fueling America's economic growth and generating millions of private sector jobs. These capital markets provide financing and needed resources to the smallest startups and to the very largest of the international companies that we have here in the United States. However, smaller companies have often been penalized for their size. As we have talked about in previous bills, the number of IPOs, or initial public offerings, that have occurred in the United States have plummeted. We have tried to fix that or tried to help improve that through things like the JOBS Act, but these small companies still face significant regulatory and market impediments that disincentivize them from accessing capital via the public markets. The Federal securities laws require that most SEC registrants disclose certain information on an ongoing basis, including a quarterly report on what is called the form 10Q. Form 10Q includes condensed financial information and other data prepared by a company and reviewed, though generally unaudited, by its independent auditor. The purpose is to provide a continuing view of the company's financial position during the year. The report must be filed for each of the first three fiscal quarters of the company's fiscal year. The SEC's current corporate disclosure system imposes a number of outdated, duplicative, burdensome, and unnecessary requirements on U.S. companies diverting private sector resources toward regulatory compliance and away from innovation, growth, and job creation, where it really should be. Moreover, this outdated disclosure regime leads to unnecessarily long, complicated, and often immaterial public company disclosures, resulting in widespread investor confusion and, potentially, suboptimal investment decisions. While the SEC has often recognized the need to study and streamline the corporate disclosure regime, it has recently been Congress that has actually spurred them on in this regard. Through provisions such as the JOBS Act and the FAST Act, the SEC is required to study current regulations and then eliminate these outdated, duplicative, and unnecessary disclosure obligations. Form 10Q can create extreme administrative costs. A 2011 report of the IPO Task Force found that 92 percent of public companies said that ``administrative burden of public reporting'' was a significant challenge to completing an IPO and becoming a public company. We have talked about, Mr. Speaker, earlier, that lack of ability for retail investors, the Joe and Jane investor, to have the same opportunity that some sort of well-financed, professional investor or fund that is out there is going to have. We need to allow them to have access into these pools of companies so that they may catch the upside of so many of these companies that are seeing extreme growth. That is the reason why we need to have these IPOs. In addition to filing forms 10K annually and 10Q quarterly, companies must file current reports on form 8K, often within 4 business days after the occurrence of specified events; these are things that could move their stock price, for example, and is relevant disclosure that needs to happen. They are then required to file these form 8Ks. In other words, by the time a quarterly report is filed, many material events have already been reported by a company through these 8Ks; and according to widespread economic views regarding efficiency of markets, that information has then been priced into the cost of an equity. Granting early growth companies the option of issuing a press release or other short form that includes earnings results, as opposed to a full 10Q form, would provide investors with important quarterly financial information but reduce unnecessary burdens and complexities associated with the current quarterly reporting system. Again, it is extremely important that investors have access to that information. This bill does nothing to diminish that. In fact, it makes it more approachable and more accessible to the average investor. Nonetheless, this bill does not require any action by the SEC to change the 10Q reporting regime. It simply requires the SEC to consider the issue and report back to Congress on it. In doing so, the SEC can consider the substantial costs of these financial disclosures and aim to modernize the disclosure process in a manner that encourages investors to make more efficient use of the information filed with the SEC. Specifically, H.R. 5970, the Modernizing Disclosures for Investors Act, would require the SEC to provide a report to Congress with a cost- benefit analysis for emerging growth companies' use of the SEC form 10Q and recommendations for decreasing costs, increasing transparency, and increasing efficiency of quarterly financial reporting by emerging growth companies within 180 days after enactment of this bill. I would like to commend my colleagues, Representative Wagner and Representative Gottheimer, for their bipartisan work on this very important bill. This bill, it is important to note, Mr. Speaker, passed the Financial Services Committee by a vote of 56-0. That is very important information because I believe that this is bipartisan and should be a bicameral step toward maintaining the health of our capital markets. Mr. Speaker, I urge all of my colleagues to vote for H.R. 5970, and I reserve the balance of my time.

Mr. HUIZENGA. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on the bill.

Mr. HUIZENGA. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 5970) to require the Securities and Exchange Commission to implement rules simplifying the quarterly financial reporting regime, as amended.

Mr. HUIZENGA

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

Mr. HUIZENGA. Mr. Speaker, I yield myself the balance of my time. Mr. Speaker, there is an old adage: If it ain't broke, don't fix it. Well, guess what, folks; this is kind of broke. We need to look for different ways of fixing it. This bill today that my colleague from Missouri (Mr. Cleaver) and my colleague from Wisconsin (Mr. Duffy) have been working on is that attempt to look for those answers. We do truly have common goals. They are common goals of opportunity, reward, and upward mobility for all Americans and to give them that opportunity. Whether you are watching on C-SPAN or maybe in the gallery right now, what you are seeing on the floor may not compute with what you are seeing in the news all the time. We actually are agreeing on things. We actually are trying to move ahead and trying to better our citizens and our constituents in a way that will ultimately benefit not just them and their families individually, but their communities, our collective State, and, by extension, our country. That is what we are trying to do here today. I just, again, want to commend the gentlemen from Wisconsin and Missouri for their work on this and for the leadership of the ranking member and Chairman Hensarling, as well, on this. As we move forward to try to provide that opportunity to provide that upward mobility, to give citizens the real choice of what to do with their lives and how to live their lives, I can think of no better way than starting off with this pilot program. And, hopefully, as I share the confidence with my friend from Wisconsin, I believe this will work. When it works, we will have that proof to go back and to use things like that Harvard study and others that have shown that upward mobility is achievable and that people aren't locked into one location or one mindset or one community. They can choose to be a part of that, but if they know they are going to have greater opportunity somewhere else, then the Federal Government shouldn't stand in the way of that opportunity. This bill does exactly that. Mr. Speaker, I want to suggest to my colleagues that they vote for this very important piece of legislation, and I yield back the balance of my time.

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

Mr. HUIZENGA. Mr. Speaker, I yield such time as he may consume to the gentleman from Wisconsin (Mr. Duffy), who is the chairman of the Housing and Insurance Subcommittee. I commend him on his fine work.

Mr. HUIZENGA. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise today in support of much-needed legislation that would authorize the Secretary of Housing and Urban Development to carry out a housing choice voucher mobility demonstration program that would encourage families receiving such voucher assistance to move to communities of their own choice and to expand their access to opportunity areas. The Housing Choice Voucher Mobility Demonstration Act of 2018 is a bipartisan piece of legislation that passed out of our committee with a vote of 53-0. This unanimous vote shows its need and showcases the broad support of the legislation across the political spectrum. The legislation would further improve voucher mobility to help more households using housing vouchers move to communities of their choice, including those with access to better paying jobs, good schools, transportation, and greater healthcare opportunities. Through the demonstration, HUD and the public housing agencies, also known as PHAs, would be able to develop new models for improving voucher mobility and provide counseling to help HUD-assisted families move to these areas of opportunity. A recent Harvard study showed that giving housing vouchers to low- income families significantly improved their lives and provided children with greater opportunity and a better shot at success. The study estimated that moving a child out of public housing to a low- poverty area will increase the child's total lifetime earnings by nearly $302,000. The study clearly demonstrates that offering low-income families housing vouchers and assistance in moving to these lower poverty neighborhoods has substantial benefits for the families themselves, for the communities, and for taxpayers. Helping all Americans afford decent, stable homes is the key to ensuring that people have the opportunity to lead healthy and productive lives. Enacting this legislation is an important step that Congress can and should take to address this challenge. Mr. Speaker, I urge my colleagues to support this bill, and I reserve the balance of my time.

Mr. HUIZENGA. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks and to include any extraneous material on the bill.

Mr. HUIZENGA. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 5793) to authorize the Secretary of Housing and Urban Development to carry out a housing choice voucher mobility demonstration to encourage families receiving such voucher assistance to move to lower-poverty areas and expand access to opportunity areas.

Mr. HUIZENGA

Mr. HUIZENGA. Mr. Speaker, I would like to point out to the ranking member that that could, too, be a unifying part of the House of Representatives, our collective frustration with the airlines and delays in getting us all here in a timely fashion for important things like this. But that little bipartisan sentiment aside, I, too, want to commend Mr. Heck and Mr. Duffy for their work on this, and I urge all of my colleagues to support this underlying bill. Mr. Speaker, I yield back the balance of my time.

Mr. HUIZENGA. Mr. Speaker, I yield such time as he may consume to the gentleman from Wisconsin (Mr. Duffy). My friend and colleague is a leader of this effort.

Mr. HUIZENGA. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, first I would like to commend my friends, Mr. Duffy and Mr. Heck, for their work on this very important issue. For over 150 years, U.S. insurance companies of every kind--including property- casualty, life, reinsurance, health, and auto--have all been regulated primarily by the States. Congress and the States have occasionally reviewed the effectiveness of the State-based regulation of insurance and coordinated efforts that they have to achieve greater regulatory uniformity. In fact, in 1945, Congress passed the McCarran-Ferguson Act, which confirmed the States' regulatory authority over insurance except where a Federal law expressly provides otherwise. As a former State representative in the Michigan Legislature, I know firsthand that Michigan does a better job of protecting policyholders within their borders than the Federal Government can do. I have seen it in action. Even more, Michigan certainly knows how to maintain a robust insurance marketplace that works for Michigan consumers. I would assume the exact same thing in Wisconsin and in Washington and in California and all throughout the States. However, there are those who believe Washington knows best. In fact, title V of the Dodd-Frank Act enlarged the Federal Government's role in the insurance industry by creating a Federal office specifically tasked with insurance matters. The Dodd-Frank Act established FIO, or the Federal Insurance Office, at the U.S. Department of the Treasury and charged the FIO Director with the responsibility to both represent the interests of U.S. insurers during the negotiation of international agreements and then advise the Office of the United States Trade Representative during trade negotiations. At the same time, the Dodd-Frank Act changed domestic insurance regulation. Dodd-Frank led to changes in the U.S. participation at the International Association of Insurance Supervisors, also known as IAIS, which develops international insurance regulations for its 190 jurisdictions in more than 140 countries. Mr. Speaker, I know that I am not the only one who is concerned that this could influence the Federal Government to look at replacing our State-based regulatory insurance model with some sort of international standards that were created, frankly, by unelected European bureaucrats. The outcomes of these discussions could have significant impact on the U.S. insurance markets, consumers, and the companies that provide those products. Therefore, the U.S. needs to maintain a strong, unified voice that will ensure our successful State-based, policyholder-centric system of insurance regulation is the model for the discussions and the basis of the official United States position abroad. H.R. 4537, the International Insurance Standards Act, introduced by my friend and colleague, Representative Duffy, would require the United States to recognize the primacy of the U.S. State-based insurance regulatory regime when entering into and agreeing to international insurance negotiations. Additionally, this bill would provide needed transparency throughout the negotiation process and provide Congress with final approval authorization. As the IAIS works on topics like global capital standards, governance, and market conduct, H.R. 4537 would position the U.S. to participate in the discussions, while also protecting itself from European standards that could be detrimental to U.S. consumers, insurers, and markets. Mr. Speaker, I would like to commend, again, Representative Duffy and Representative Heck for their bipartisan work on this important bill, which passed the Financial Services Committee on a vote of 56-4. I urge my colleagues on both sides of the aisle to protect an insurance regulatory model that has worked well for over 150 years and vote in favor of H.R. 4537. Mr. Speaker, I reserve the balance of my time. Committee on Ways and Means, House of Representatives, Washington, DC, June 22, 2018. Hon. Jeb Hensarling, Chairman, Committee on Financial Services, Washington, DC. Dear Chairman Hensarling: I am writing with respect to the jurisdictional interest of the Committee on Ways and Means in matters being considered in H.R. 4537, the International Insurance Standards Act of 2018. As a result of your having consulted with us on provisions in H.R. 4537 that fall within the Rule X jurisdiction of the Committee on Ways and Means, I agree to waive formal consideration of this bill so that it may move expeditiously to the floor. The Committee on Ways and Means takes this action with the mutual understanding that we do not waive any jurisdiction over the subject matter contained in this or similar legislation, and the Committee will be appropriately consulted and involved as the bill or similar legislation moves forward so that we may address any remaining issues that fall within our jurisdiction. The Committee also reserves the right to seek appointment of an appropriate number of conferees to any House-Senate conference involving this or similar legislation, and requests your support for such request. Finally, I would appreciate your response to this letter confirming this understanding, and would ask that a copy of our exchange of letters on this matter be included in the Congressional Record during floor consideration of H.R. 4537. Sincerely, Kevin Brady, Chairman.

Mr. HUIZENGA. Mr. Speaker, I ask unanimous consent that all Members have 5 legislative days to revise and extend their remarks and to include any extraneous material on the bill.

Mr. HUIZENGA. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 4537) to preserve the State-based system of insurance regulation and provide greater oversight of and transparency on international insurance standards setting processes, and for other purposes, as amended.

Mr. HUIZENGA

Mr. HUIZENGA. Mr. Speaker, I, too, want to commend our colleagues for working in a bipartisan manner, Mr. Loudermilk and Mr. Sherman, not only for dealing with this in committee; there was some trust that was shown on all sides to move forward on that, and this is the way the system is supposed to work. Congratulations. I look forward to supporting this bill and request that all of my colleagues do the same. Mr. Speaker, I yield back the balance of my time.

Mr. HUIZENGA. Mr. Speaker, I yield such time as he may consume to the gentleman from Georgia (Mr. Loudermilk), my colleague from the Financial Services Committee, the author of the BUILD Act.