Donald Manzullo

Mr. MANZULLO

Mr. MANZULLO. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 923) to amend the Small Business Investment Act of 1958 to allow certain premier certified lenders to elect to maintain an alternative loss reserve, as amended.

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

Mr. MANZULLO. Mr. Speaker, I yield back the balance of my time.

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

Mr. MANZULLO. Mr. Speaker, I yield 5 minutes to the gentleman from California (Mr. Doolittle), my good friend and colleague, the author of the bill.

Mr. MANZULLO. Mr. Speaker, I yield myself such time as I may consume. The SBA's 504 Certified Development Company program provides small businesses with long-term, fixed-rate financing for the purchase of fixed assets such as land, buildings and equipment for business expansion purposes. The loans are made by CDCs, usually nonprofit corporations organized to contribute to the economic development of a particular community or region. The entire 504 program runs totally on user fees charged to small business borrowers. It does not receive an annual appropriation. SBA has a Premier Certified Lender program that gives discretion to certain qualified CDCs to approve 504 loans subject to the borrower being eligible and the available loan authority. In return for this lower regulatory oversight, these premier CDCs must set aside more money in order to cover potentially bad loans than regular CDCs. Some premier CDCs believe that this amount of reserve is well beyond what is prudently required. My good friend and colleague, the gentleman from California (Mr. Doolittle), introduced H.R. 923 for the purpose of allowing premier CDCs to take a cue from the private sector by using a risk-based management approach to calculate the loan loss reserve requirements. I agree with this approach subject to certain conditions to protect the taxpayer and to ensure that no unintended consequences result from this change in policy such as higher loan fees. Our staffs have met to develop an acceptable compromise which unanimously passed the committee last month. I am pleased to present it to my colleagues before the full House today. This bipartisan compromise creates a 2-year pilot program that permits qualified premier CDCs to use a risk-based approach to calculate their loan loss reserve requirements. In order to ensure that premier CDCs' loan loss reserves are sufficient to protect the taxpayer, the compromise establishes a Bureau of PCLP oversight within the Office of Lender Oversight at SBA. For those premier CDCs not in the new pilot program, they can withdraw from their loss such amounts that are in excess of 1 percent of their total outstanding loan balances. Finally, this compromise provides for a study to evaluate alternative loan loss reserve approaches. H.R. 923 is about providing more liquidity and capital into the hands of small businesses without any additional cost to the taxpayer. I urge my colleagues to support H.R. 923. Mr. Speaker, I reserve the balance of my time.

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

Mr. MANZULLO

Mr. MANZULLO. Mr. Speaker, I yield myself such time as I may consume. This is a good bill. It advances the cause of an independent Office of Advocacy. It enhances the budget. It makes the administration, whether Republican or Democratic, more responsive to the person who occupies the Office of Advocacy; and I would urge my colleagues for a ``yes'' vote. Mr. Speaker, I yield back the balance of my time.

Mr. MANZULLO. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, the Office of Advocacy of the Small Business Administration is unique within the executive branch. The main role of the Chief Counsel for Advocacy is to ensure that proposed regulations and policies do not unduly burden small businesses even if it means opposing part of the President's agenda. In the past, this independence has been put to the test. The purpose of this legislation is to protect the Office of Advocacy from threats of funding cuts in order to enhance its independence. H.R. 1772 is nearly identical to legislation this House passed unanimously on May 21, 2002. In fact, H.R. 1772 is essentially a conference report agreed to with the other body last year, but unfortunately there was not enough time on the Senate floor to get this passed. The only differences between H.R. 1772 and the advocacy bill from last year is that there would be only one instead of two principal deputies at the Office of Advocacy and the rank of Chief Counsel is not elevated one level. However, the heart of this bill creating a separate budgetary line item for the Office of Advocacy is the same as last year. To ensure that there are no games played with the Chief Counsel's budget, Congress will also get a sneak peek at the initial budget request he submits to the Office of Management and Budget before it becomes part of the President's official budget request. A separate budgetary line item is the top legislative priority for Tom Sullivan, the current Chief Counsel for the Office of Advocacy, and I am pleased to assist him in strengthening this office in moving this legislation. I want to commend two of our subcommittee chairmen, the gentleman from Missouri (Mr. Akin) and the gentleman from Virginia (Mr. Schrock) for championing this legislation on focus and other important priorities. H.R. 1772 is one part of the overall solution to help reinvigorate our struggling small manufacturers battle unsound government regulations. Mr. Speaker, I reserve the balance of my time.

Mr. MANZULLO. Mr. Speaker, I yield 5 minutes to the distinguished gentleman from Missouri (Mr. Akin), the chairman of the Subcommittee on Workforce, Empowerment and Government Programs.

Mr. MANZULLO. Mr. Speaker, I yield 5 minutes to the distinguished gentleman from Virginia (Mr. Schrock), the chairman of the Subcommittee on Regulatory Reform and Oversight.

Mr. MANZULLO. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 1772) to improve small business advocacy, and for other purposes, as amended.

Mr. MANZULLO. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks and include extraneous material on H.R. 1772.

Mr. MANZULLO

Mr. MANZULLO. My understanding is that the gentleman was going to reserve a point of order so I could get my point across.

Mr. MANZULLO. Mr. Chairman, the American economy is in the midst of a manufacturing crisis. Over the past 3 years, we have lost 2.6 million manufacturing jobs. In the past 12 months, 53,000 manufacturing jobs each month have been lost in this country. These are good-paying jobs. Small business manufacturers pay on average 20 percent more to their employees than other small businesses and provide a vast majority of the basic products such as tools, dies and molds that are essential to our national security and essential to our defense industrial base. In 1981, Rockford, Illinois, my district's largest city, had an unemployment rate of 24.9 percent, the highest in the Nation. Today it is around 11 percent. I do not want to see a recurrence of what happened in 1981. But we are losing our industrial base in this country. Unlike the past when factories were closed during an economic downturn but reopened when times improved, today a too-frequent outcome is the permanent closure of the factory. The jobs leave forever. Young people entering the workforce do not have a manufacturing career choice left open to them as they did in the past. Since 1933, the Buy American Act has safeguarded the interests of American manufacturers by requiring the Federal Government to purchase domestically produced products. But that only means 50.001 percent has to be American goods. The Department of Labor's May employment report showed again the 34th consecutive month of loss of manufacturing jobs. Let me tell my colleagues what happened in Rockford, Illinois. After 112 years in business, Ingersoll Milling ceased operations. The Rockford machine tool maker was one of only two companies to make machines to shape radar absorbent composites into the skin of stealthy warplanes. In bankruptcy, a Chinese state-owned enterprise is trying to buy Ingersoll. The only plant that is left in the United States is in Kentucky and that is Cincinnati Machine. They have just downsized from 750 people to 350 people. We are losing the ability to have manufacturing facilities to defend the United States. The purpose of this amendment is to build that manufacturing core to say, wake up, Washington, wake up, America, the manufacturing jobs are gone, the security of our Nation is being imperiled. This amendment simply increases the Buy American content from 50 percent to 65 percent. It is so simple. The money that is being used to protect America, we are only asking 65 cents of that be used to buy American products. This is a very simple amendment. We would ask that this body take its part in restoring American manufacturing in this country. I would urge my colleagues, urge them, beg them, beseech them, to adopt this amendment to help the restoration of our manufacturing base.

Mr. MANZULLO

Mr. MANZULLO. I yield to the gentleman from Wisconsin.

Mr. MANZULLO. Mr. Speaker, reclaiming my time, that is a government- run pool with a government-run subsidy, and that will end up like every other government-run program: it will bankrupt the country, and the small businessperson will be at the end of it. Try this. See if this works. This is so simple. If it works for the labor unions, why can it not work for Frank and Mary Ann Manzullo?

Mr. MANZULLO. I yield to the gentleman from Wisconsin.

Mr. MANZULLO. Mr. Speaker, as the chairman of the Committee on Small Business, our Nation's small businessmen and -women tell me over and over that accessible and affordable health care is their number one priority. I have heard from thousands of small employers in America who have been pleading for options to help them manage their surging health care costs. In fact, so many letters came in, we put them into a binder called ``Health Care Horror Stories from America's Small Employers.'' The NFIB assisted us in putting this together for us. The small business owners tell us regularly how they struggle to provide their workers with health insurance but, each year, they face double-digit increases. Small business owners tell me they do not know how much longer they can continue to provide health care for their employees. Mom and pop businesses tell me they want to provide health care for their employees, but they cannot because of the expense of the policy. My own brother who runs a family restaurant is drowning in the surging costs and the exorbitant costs of health care insurance. This is a family business. We know personally what it costs when you are little, when you have a very small pool. People like my brother Frank are horrified at the thought of not being able to have insurance. As one of my small business constituents wrote, ``I have always wanted to take care of my employees and provide them with competitive benefits and wages, but each year it gets more and more difficult. Our health insurance costs were raised 43 percent last year and 34 percent this year.'' Another constituent: ``Health care costs and insurance are draining us. Last year we had a 14 percent increase, and now the costs are going up 21 percent again. I have nowhere else to go.'' So they go out of business because they cannot afford insurance. Today we bring forward a great option, association health plans, to help control these outrageous costs. Of the 41 million Americans with no health insurance, 60 percent of these are small entrepreneurs, their families and their employees. Why should the small businesses of this country not have the same right to band together as local labor unions do to purchase their insurance in large pools? That is all this is. It is just that simple. The more people you have in the pool, the cheaper the rates are for the insurance. It is a matter of equity. The little guys out there, the people that are struggling, why can they not have the same right, the same legal right to get together as labor unions? Why does there have to be a double standard, to allow labor unions to get together and do the smart thing, which they have been doing for 60 or 70 years, and using the union as the center post around which to buy their insurance, and allow associations as a center post around which to buy insurance for the small business people? It is simply a matter of equity, it is a matter of fairness, and the biggest argument that we have here is this: the larger the pool, the lower the rate. There is not anybody here on the floor today or in this country that can dispute that fact. My brother is a pool of two, him and his wife, at the restaurant. As the Chairman of the Small Business Committee, our nation's small business men and women tell me over and over that accessible and affordable health care is their number one priority. I have heard from thousands of small employers in America who have been pleading for options to help them manage their surging health care costs. Small business owners tell me regularly how they struggle to provide their workers health insurance, but each year they face double digit increases. Small business owners tell me they don't know how much longer they can continue to provide health care for their employees because each year the premiums rise, their coverage decreases and out of pocket expenses soar. ``Mom and Pop'' businesses tell me how they want to provide healthcare for their employees, but they cannot because of the expense for a policy that covers less then ten people. My own brother, who runs the family restaurant, is staggering at the exorbitant cost of health care insurance. They are horrified at the thought of leaving their workers high and dry without health insurance. As one of my small business constituents wrote, ``I've always wanted to take care of my employees and provide them with competitive benefits and wages, but each year it is getting more and more difficult. Our health insurance costs were raised 43 percent last year and 34 percent this year and there is nothing we can do about it.`` Another constituent writes, ``Health care costs and insurance are draining us. Last year, we had a 14 percent increase. Now, the costs are going up 21 percent again. I have nowhere to go.'' They are hopeless. Our entrepreneurs, whose ingenuity and hard work ethic have driven the American economy, have run out of options to battle this crisis. They need our help. And today, we bring forward a great option--Association Health Plans--to help them control these outrageous costs and continue offering vital health insurance to their employees and their families. Of the 41 million Americans with no health insurance, 60 percent are small entrepreneurs, their families and their employees. One of the reasons small businesses cannot afford health coverage for their employees is that they are unable to achieve the economies of scale and purchasing power of larger corporations and unions. Small businesses suffer from unequal treatment--what they want most is a level playing field when it comes to health care. Large corporations and labor unions use the purchasing power of thousands of employees to offer affordable health insurance to their workers. Small business owners have to find their insurance on an individual basis, making it very difficult and expensive to find affordable health coverage. The premiums that small businesses pay for health insurance are typically 20-30 percent higher than those of large companies or unions which can self-insure. Additionally, the administrative costs incurred by small businesses are likewise higher than those of large businesses; 25-27 percent versus 5-11 percent for large businesses. Association Health Plans can provide hope to those who lack health care by expanding the pool of people and bringing down costs by 15 to 30 percent. For small businesses, that savings can mean the difference between providing health care or not. That savings can be the difference between profitability or losing money. In March, I held a Small Business Committee hearing on this very topic. The Washington State Farm Bureau testified to the success they have enjoyed operating an AHP for the last 3\1/2\ years. Traditionally, farmers have had great difficulty buying health insurance because their business is usually made up entirely of their family. Of those who have taken advantage of the Washington State Farm Bureau's AHP, 25 percent did not have health insurance prior to enrolling. Additionally, the Washington State Farm Bureau AHP has operated with a 99 percent retention rate. The proof is irrefutable. AHPs work. I urge all of my colleagues to support H.R. 660.

Mr. MANZULLO

Mr. MANZULLO. Mr. Speaker, enclosed are Committee on Small Business Rules for the 108th Congress for submission to the Congressional Record in accordance with clause 2(a)(2) of rule XI. Rules and Procedures of the Committee on Small Business U.S. House of Representatives, 108th Congress 1. general provisions The Rules of the House of Representatives, and in particular the committee rules enumerated in rule XI, are the rules of the Committee on Small Business to the extent applicable and by this reference are incorporated. Each subcommittee on the Committee on Small Business (hereinafter referred to as the ``committee'') is a part of the committee and is subject to the authority and direction of the committee, and to its rules to the extent applicable. 2. referral of bills by chairman Unless retained for consideration by the full committee, all legislation and other matters referred to the committee shall be referred by the Chairman to the subcommittee of appropriate jurisdiction within 2 weeks. Where the subject matter of the referral involves the jurisdiction of more than one subcommittee or does not fall within any previously assigned jurisdictions, the Chairman shall refer the matter, as he may deem advisable. 3. Date of Meeting The regular meeting date of the committee shall be the second Thursday of every month when the House is in session. A regular meeting of the committee may be dispensed with if, in the judgment of the Chairman, there is no need for the meeting. Additional meetings may be called by the Chairman as he may deem necessary or at the request of a majority of the members of the committee in accordance with clause 2(c) of rule XI of the House. At least 3 days notice of such an additional meeting shall be given unless the Chairman determines that there is good cause to call the meeting on less notice. The determination of the business to be considered at each meeting shall be made by the Chairman subject to clause 2(c) of rule XI of the House. A regularly scheduled meeting need not be held if there is no business to be considered or, upon at least 3 days notice, it may be set for a different date. 4. announcement of Hearings Unless the Chairman, with the concurrence of the ranking minority member, or the committee by majority vote, determines that there is good cause to begin a hearing at an earlier date, public announcement shall be made of the date, place and subject matter of any hearing to be conducted by the committee at least 1 week before the commencement of that hearing. After announcement of a hearing, the committee shall make available as soon as practicable to all Members of the Committee a tentative witness list and to the extent practicable a memorandum explaining the subject matter of the hearing (including relevant legislative reports and other necessary material). In addition, the Chairman shall make available as soon as practicable to the Members of the Committee any official reports from departments and agencies on the subject matter as they are received. Meetings and Hearings Open to the Public (A) Meetings Each meeting of the committee or its subcommittees for the transaction of business, including the markup of legislation, shall be open to the public, including to radio, television and still photography coverage, except as provided by clause 4 of rule XI of the House, except when the committee or subcommittee, in open session and with a majority present, determines by record vote that all or part of the remainder of the meeting on that day shall be closed to the public because disclosure of matters to be considered would endanger national security, would compromise sensitive law enforcement information, or would tend to defame, degrade or incriminate any person or otherwise would violate any law or rule of the House: Provided, however, that no person other than members of the committee, and such congressional staff and such executive branch representatives as they may authorize, shall be present in any business meeting or markup session which has been closed to the public. (B) Hearings Each hearing conducted by the committee or its subcommittees shall be open to the public, including radio, television and still photography coverage, except when the committee or subcommittee, in open session and with a majority present, determines by record vote that all or part of the remainder of the hearing on that day shall be closed to the public because disclosure of testimony, evidence or other matters to be considered would endanger the national security, would compromise sensitive law enforcement information, or would violate any law or rule of the House; Provided, however, that the committee or subcommittee may be the same procedure vote to close one subsequent day of hearings. Notwithstanding the requirements of the preceding sentence, a majority of those present, there being in attendance the requisite number required under the rules of the committee to be present for the purpose of taking testimony, (i) may vote to close the hearing for the sole purpose of discussing whether testimony or evidence to be received would endanger the national security, would compromise sensitive law enforcement information, or violate clause 2(k)(5) of rule XI of the House; or (ii) may vote to close the hearing, as provided in clause 2(k)(5) of rule XI of the House. No member of the House may be excluded from non- participatory attendance at any hearing of the committee or any subcommittee, unless the House of Representatives shall by majority vote authorize the committee or subcommittee, for purposes of a particular series of hearings on a particular article of legislation or on a particular subject of investigation, to close its hearing to members by the same procedures designated for closing hearings to the public. 6. witnesses (A) Statement of Witnesses Each witness who is to appear before the committee or subcommittee shall file with the committee at least two business days before the day of his or her appearance, 100 copies of his or her written statement of proposed testimony. At least one copy of the statement of each witness shall be furnished directly to the ranking minority member. In addition, all witnesses shall be required to submit with their testimony a resume or other statement describing their education, employment, professional affiliations and other background information pertinent to their testimony unless waived by the Chairman. Each witness shall also submit to the committee a copy of his or her final prepared statement in an electronic format no later than the day of the hearing unless waived by the Chairman. The committee will provide public access to its printed materials, including the proposed testimony of witnesses, in electronic form. (B) Interrogation of Witnesses Whenever any hearing is conducted by the committee or any subcommittee upon any measure or matter, the minority party members on the committee shall be entitled, upon request to the Chairman by a majority of those minority members, to call one witness selected by the minority to testify with respect to that measure or matter. The witness requested by the minority shall furnish at least one copy of his or her statement and any supplementary materials directly to the Chairman within two business days before the day of his or her appearance unless waived by the Chairman. Except when the committee adopts a motion pursuant to subdivisions (B) and (C) of clause 2(j)(2) of rule XI of the rules of the House, committee members may question witnesses only when they have been recognized by the Chairman for that purpose, and only for a 5-minute period until all members present have had an opportunity to question a witness. The 5- minute period for questioning a witness by any one member can be extended only with the unanimous consent of all members present. The Chairman, followed by the ranking minority member and all other members alternating between the majority and minority, shall initiate the questioning of witnesses in both the full and subcommittee hearings. In recognizing members to question witnesses, the Chairman may take into consideration the ratio of majority and minority members present in such a manner as not to disadvantage the Members of either party. The Chairman, in consultation with the ranking minority member, may decrease the 5-minute time period in order to accommodate the needs of all the Members present and the schedule of the witnesses. 7. subpoenas A subpoena may be authorized and issued by the Chairman of the committee in the conduct of any investigation or series of investigations or activities to require the attendance and testimony of such witness and the production of such books, records, correspondence, memoranda, papers and documents, as he deems necessary. The ranking minority member shall be promptly notified of the issuance of such a subpoena. Such a subpoena may be authorized and issued by the chairman of a subcommittee with the approval of a majority of the members of the subcommittee and the approval of the Chairman of the committee. 8. quorum No measure or recommendation shall be reported unless a majority of the committee was actually present. For purposes of taking testimony or receiving evidence, two members shall constitute a quorum. For all other purposes, one-third of the members (or 12 Members) shall constitute a quorum. 9. amendments during mark-up Any amendment offered to any pending legislation before the committee must be made available in written form when requested by any member of the committee. If such amendment is not available in written form when requested, the Chairman shall allow an appropriate period for the provision thereof. 10. proxies No vote by any member of the committee or any of its subcommittees with respect to any measure or matter may be cast by proxy. 11. postponement of proceedings The Chairman in consultation with the Ranking Minority Member may postpone further proceedings when a record vote is ordered on the question of approving any measure or matter or adopting an amendment. The Chairman may resume proceedings on a postponed request at any time. In exercising postponement authority, the Chairman shall take all reasonable steps necessary to notify members on the resumption of proceedings on any postponed recorded vote. When proceedings resume on a postponed question, notwithstanding any intervening order for the previous question, an underlying proposition shall remain subject to further debate or amendment to the same extent as when the question was postponed. 12. number and jurisdiction of subcommittees There will be four subcommittees as follows: Workforce, Empowerment and Government Programs (seven Republicans and six Democrats) Regulatory Reform and Oversight (seven Republicans and six Democrats) Rural Enterprises, Agriculture and Technology (six Republicans and five Democrats) Tax, Finance and Exports (eight Republicans and seven Democrats) During the 108th Congress, the Chairman and ranking minority members shall be ex officio members of all subcommittees, without vote, and the full committee shall have the authority to conduct oversight of all areas of the committee's jurisdiction. In addition to conducting oversight in the area of their respective jurisdiction, each subcommittee shall have the following jurisdiction: workforce, empowerment and government programs Oversight and investigative authority over problems faced by small businesses in attracting and retaining a high quality workforce, including but not limited to wages and benefits such as health care. Promotion of business growth and opportunities in economically depressed areas. Oversight and investigative authority over regulations and other government policies that impact small businesses located in high risk communities. Opportunities for minority, women, veteran and disabled- owned small businesses, including the SBA's 8(a) program. General oversight of programs targeted toward urban relief. Small Business Act, Small Business Investment Act, and related legislation. Federal Government programs that are designed to assist small business generally. Participation of small business in Federal procurement and Government contracts. regulatory reform and oversight Oversight and investigative authority over the regulatory and paperwork policies of all Federal departments and agencies. Regulatory Flexibility Act. Paperwork Reduction Act. Competition policy generally. Oversight and investigative authority generally, including novel issues of special concern to small business. rural enterprises, agriculture and technology Promotion of business growth and opportunities in rural areas. Oversight and investigative authority over agricultural issues that impact small businesses. General oversight of programs targeted toward farm relief. Oversight and investigative authority for small business technology issues. tax, finance and exports Tax policy and its impact on small business. Access to capital and finance issues generally. Export opportunities and oversight over Federal trade policy and promotion programs. 13. committee staff (a) Majority Staff The employees of the committee, except those assigned to the minority as provided below, shall be appointed and assigned, and may be removed by the Chairman. The Chairman shall fix their remuneration, and they shall be under the general supervision and direction of the Chairman. (B) Minority Staff The employees of the committee assigned to the minority shall be appointed and assigned, and their remuneration determined, as the ranking minority member of the committee shall determine. (C) Subcommittee Staff The Chairman and ranking minority member of the full committee shall endeavor to ensure that sufficient staff is made available to each subcommittee to carry out its responsibilities under the rules of the committee. 14. powers and duties of subcommittees Each subcommittee is authorized to meet, hold hearings, receive evidence, and report to the full committee on all matters referred to it. Subcommittee chairman shall set meeting and hearing dates after consultation with the Chairman of the full committee. Meetings and hearings of subcommittees shall not be scheduled to occur simultaneously with meetings or hearings of the full committee. 15. subcommittee reports (A) Investigative Hearings The report of any subcommittee on a matter which was the topic of a study or investigation shall include a statement concerning the subject of the study or investigation, the findings and conclusions, and recommendations for corrective action, if any, together with such other material as the subcommittee deems appropriate. Such proposed reports shall first be approved by a majority of the subcommittee members. After such approval has been secured, the proposed report shall be sent to each member of the full committee for his or her supplemental, minority, or additional views. Any such views shall be in writing and signed by the member and filed with the clerk of the full committee within 5 calendar days (excluding Saturdays, Sundays, and legal holidays) from the date of the transmittal of the proposed report to the members. Transmittal of the proposed report to members shall be by hand delivery to the members' offices. After the expiration of such 5 calendar days, the report may be filed as a House report. (B) End of Congress Each subcommittee shall submit to the full committee, not later than November 15 of each even-numbered year, a report on the activities of the subcommittee during the Congress. 16. RECORDS The committee shall keep a complete record of all actions, which shall include a record of the votes on any question on which a record vote is demanded. The result of each subcommittee record vote, together with a description of the matter voted upon, shall promptly be made available to the full committee. A record of such votes shall be made available for inspection by the public at reasonable times in the offices of the committee. The committee shall keep a complete record of all committee and subcommittee activity which, in the case of any meeting or hearing transcript, shall include a substantially verbatim account of remarks actually made during the proceedings, subject only to technical, grammatical, and typographical corrections authorized by the person making the remarks involved. The records of the committee at the National archives and Records Administration shall be made available in accordance with rule VII of the Rules of the House. The Chairman of the full committee shall notify the ranking minority member of the full committee of any decision, pursuant to clause 3(b)(3) or clause 4(b) of rule VII of the House, to withhold a record otherwise available, and the matter shall be presented to the committee for a determination of the written request of any member of the committee. 17. ACCESS TO CLASSIFIED OR SENSITIVE INFORMATION Access to classified or sensitive information supplied to the committee and attendance at closed sessions of the committee or its subcommittees shall be limited to members and necessary committee staff and stenographic reporters who have appropriate security clearance when the Chairman determines that such access or attendance is essential to the functioning of the committee. The procedures to be followed in granting access to those hearings, records, data, charts, and files of the committee which involve classified information or information deemed to be sensitive shall be as follows: (a) Only Members of the House of Representatives and specifically designated committee staff of the Committee on Small Business may have access to such information. (b) Members who desire to read materials that are in the possession of the committee should notify the clerk of the committee. (c) The clerk will maintain an accurate access log, which identifies the circumstances surrounding access to the information, without revealing the material examined. (d) If the material desired to be reviewed is material which the committee or subcommittee deems to be sensitive enough to require special handling, before receiving access to such information, individuals will be required to sign an access information sheet acknowledging such access and that the individual has read and understands the procedures under which access is being granted. (e) Material provided for review under this rule shall not be removed from a specified room within the committee offices. (f) Individuals reviewing materials under this rule shall make certain that the materials are returned to the proper custodian. (g) No reproductions or recordings may be made of any portion of such materials. (h) The contents of such information shall not be divulged to any person in any way, form, shape, or manner, and shall not be discussed with any person who has not received the information in an authorized manner. (i) When not being examined in the manner described herein, such information will be kept in secure safes or locked file cabinets in the committee offices. (j) These procedures only address access to information the committee or a subcommittee deems to be sensitive enough to require special treatment. (k) If a member of the House of Representatives believes that certain sensitive information should not be restricted as to dissemination or use, the member may petition the committee or subcommittee to so rule. With respect to information and materials provided to the committee by the executive branch, the classification of information and materials as determined by the executive branch shall prevail unless affirmatively changed by the committee or the subcommittee involved, after consultation with the appropriate executive agencies. (1) Other materials in the possession of the committee are to be handled in accordance with the normal practices and traditions of the committee. 18. OTHER PROCEDURES The Chairman of the full committee may establish such other procedures and take such actions as may be necessary to carry out the foregoing rules or to facilitate the effective operation of the committee. The committee may not be committed to any expense whatever without the prior approval of the Chairman of the full committee. 19. AMENDMENTS TO COMMITTEE RULES The rules of the committee may be modified, amended or repealed by a majority of the members, at a meeting specifically called for such purpose, but only if written notice of the proposed change has been provided to each such member at least 3 days before the time of the meeting.

Mr. MANZULLO

Mr. MANZULLO. No, because the estates would have been more than that.

Mr. MANZULLO. It was probably worth more than the $3 million.

Mr. MANZULLO. Mr. Speaker, will the gentleman yield?

Mr. MANZULLO. Mr. Speaker, the death tax falls most heavily on small businesses because they are asset rich but cash poor. This bill allows small businesses to be passed from one generation to the next without having to sell assets to pay the punitive tax. This bill is not about Bill Gates. It is not about Warren Buffett. If they have problems with repealing the death tax, let them write a check to the government. This bill is about the Beuth family of Winnebago, Illinois, and the Hall family of Ogle County, Illinois, who live in my congressional district. Richard and Judy Beuth of Seward almost lost the family farm several years ago when Richard's father died and the IRS hit them with a $185,000 death tax bill. Factual, not philosophical, factual. Not Warren Buffett, not Bill Gates, but Richard and Judy Beuth of Seward, Illinois. Gary Hall and his four sisters of Lindenwood had to sell equipment, had to sell part of their land, and take out huge loans to pay a $2.7 million death tax bill they received shortly after their father died in 1996. Real live people, real live farmers, my constituents, forced to go out of business because of the capital- intensive farming operations that they have to make their living. This tax is immoral. It has devastated too many family farms and mom and pop businesses. These families worked hard all their lives to put food on the dinner tables, and this is about giving that family farm, that family business on to succeeding generations. Of all of the small businesses in this country, fewer than 30 percent are passed on to succeeding generations and fewer than 13 percent make it to the third generation. I urge that this bill to repeal the death tax be made permanent.

Mr. MANZULLO

Mr. MANZULLO. Mr. Chairman, I yield myself such time as I may consume. Mr. Chairman, this amendment provides simply for a study of what has taken place in the past. It changes no law. Mr. Chairman, I yield 1 minute to the gentleman from Florida (Chairman Mica).