Nydia Velázquez

Ms. VELAZQUEZ

Ms. VELAZQUEZ. Mr. Speaker, in every State and every district when we meet with small business owners, their number one concern is rising health care costs. Even as we sit here, the cost of health care continues to rise. Today's legislation will help address this problem. Association health plans will provide an employer-based solution to help the sector of the economy that is being hit the hardest: small businesses. Critics of the bill will come forward today and tell you how association health plans are going to lead to a devastating impact on small businesses and the insurance market. Well, from where I stand, it is hard to imagine that it could get any worse. We have 45 million Americans without health insurance and over half are small businesses and their employees. This includes up to 7 million children that have family members working for small firms. And for the last 5 years, small businesses have seen insurance costs increase by over 60 percent. These are statistics that are so often stated in this town that we forget what the real impact is. When an employer has to spend an additional $3,000 a year for coverage per employee year after year, it is easy to understand why some are dropping coverage all together. We have a modest solution before us today that no one can claim will address all of the problems, but it can provide some help in a market that needs it. I think it is important to talk about what association health plans are and what they are not. These plans will be under the same set of rules that apply to corporate and union plans. In fact, the requirements for association health plans are even more strict. It will require that an association health plan have sufficient reserves to pay all claims. It includes protections against cherry-picking to prevent adverse selection. It provides a structure to ensure that the DOL can monitor these plans. Critics will cite an outdated CBO study that does not even examine the legislation before us today. Will association health plans cure all of the problems when it comes to health insurance in the small group market? Absolutely not. But will it bring some elements of affordability and competition in these markets? I think so. By some estimates, this bill is estimated to provide as many as 8 million Americans with insurance, no small sum. One of the best indicators as to whether AHPs will increase competition is the strong opposition from insurance companies. They are worried that they will lose their stranglehold on the small-group market. These insurance companies with highly paid lobbyists from Blue Cross/Blue Shield, for example, that hold monopolies on State markets are worried that they will have to start negotiating premiums rather than dictating them. I rise in strong support of this legislation. I ask my colleagues to do the same. Just as important, I call on the Senate to act on this legislation and the administration to put its full backing behind this bill. This Nation's entrepreneurs deserve it.

Ms. VELAZQUEZ

Ms. VELAZQUEZ. I thank the gentleman from New York (Mr. Boehlert) for supporting my amendment. Mr. Chairman, I yield back the balance of my time.

Ms. VELAZQUEZ. I yield to the gentleman from Tennessee.

Ms. VELAZQUEZ. Mr. Chairman, I would like to clarify the gentleman's statement. This is not to construct buildings. This funding in this amendment will not pay for the construction of facilities. $4 million does not pay for facilities. It will give the funds that these minority-serving institutions need to do capacity building, to start the partnership, to set up the partnership, and to manage it. It will not use one penny to build physical facilities.

Ms. VELAZQUEZ. Mr. Chairman, will the gentleman yield?

Ms. VELAZQUEZ. Mr. Chairman, will the gentleman yield?

Ms. VELAZQUEZ. Mr. Chairman, I yield myself 30 seconds for clarification. I am the author of this legislation or this amendment. It does not say here in any way to build a physical facility. It says ``development of physical.'' And I want for the Record to reflect that I do not mean to build physical facilities.

Ms. VELAZQUEZ. Mr. Chairman, I yield myself such time as I may consume. With limited job opportunity in this country, more than ever minorities are turning to entrepreneurship, with 15 percent of this Nation's small businesses being minority owned today. Clearly this business ownership rate is well below the mainstream rate, especially in high tech fields. My amendment will begin to change this by creating a 4-year pilot grant program focused on the development of technology laboratories at our Nation's minority institutions. In these on-campus facilities, through a simple partnership, NASA experts will work with some of our brightest students to expose them to innovative technology development. This will help to shore up current programs that are too narrowly focused on basic science and limited by the technological capabilities of these institutions. This has successfully been done in more mainstream centers of learning. If you look at the Massachusetts Institute of Technology, investment by the government and private sector created an environment that allowed it to become the world renown center of study that it is now. The tie to entrepreneurship and the development of minority students in the technological field is quite clear. Entrepreneurs who have founded technology oriented enterprises emerged from institutions with a strong affiliation to government and industry applied research. These are exactly the type of facilities this amendment will create. As ranking member of the Committee on Small Business, I am constantly talking to agencies about their small business contracting performance. One of the agencies who struggles the most is NASA, which has regularly failed to meet its goal, and awards to minorities have decreased by 25 percent in the last 4 years. I believe that there are several reasons for this. One is we need to develop more minority technology companies capable of meeting NASA's requirements. By making sure our science and engineering students are exposed to these opportunities early in their careers, we are increasing their ability to learn and develop. This would pay dividends in the future. The adoption of this amendment will go a long way in opening up a culture which can seem closed and intimidating when you do not know it. We also provide these future entrepreneurs with a vital opportunity to receive mentoring and develop the understanding of the inner workings of NASA. This will greatly increase the willingness of those at the agency to take a chance on bright individuals with innovative ideas but who may not have the history that more established entities do. This amendment is supported by the National Black Chamber of Commerce, the Minority Business Enterprise Legal Defense Fund and the Latin American Management Association. The adoption of this amendment is a win for all those involved. NASA will win because they will have the access to the minority high tech sector they are so desperately looking for, and the minority-serving institutions and their students will win because they will be advancing technology development. But most importantly, our Nation wins as we create the next generation of high tech firms that will be so critical to advancing this Nation's economy in years to come. I urge adoption of the amendment. Mr. Chairman, I reserve the balance of my time.

Ms. VELAZQUEZ. Mr. Chairman, I yield myself the balance of my time to close. Mr. Chairman, this is a commonsense amendment. It is not only good for all those involved but it will also empower us to take a huge step toward closing the technology gap that is so prevailing among the minority population. The truth is that this approach has already been taken with some of the most highly renowned research facilities across the country and has proven successful. The only difference now is that it will focus on bringing these advancements to minority-serving institutions and, ultimately, closing this Nation's technology gap. The timing could not be better for this as NASA starts fresh, undertaking a review of their facilities, leasing activities, and partnership agreements. Mr. Chairman, I urge adoption of this amendment. Mr. Chairman, I yield back the balance of my time.

Ms. VELAZQUEZ. I mean by the minority-serving institution to develop the physical facility and develop the relationship. I will propose to the gentleman that he adopt the amendment, and it is a matter of semantics and that we will work to clarify it.

Ms. VELAZQUEZ. I yield to the gentleman from New York.

Ms. VELAZQUEZ. Mr. Chairman, I would like to take this opportunity to thank the gentleman from Tennessee (Mr. Gordon), the ranking member, for supporting my amendment. Mr. Chairman, I reserve the balance of my time.

Ms. VELAZQUEZ. Mr. Chairman, I yield myself such time as I may consume. Mr. Chairman, the Federal marketplace is doing record levels today, with nearly every agency buying more than ever before. NASA alone has increased their contracting volume by 30 percent in the past 4 years. Despite NASA's significant increase in procurement volume, small firms continue to fare poorly when it comes to working with this agency. NASA's small business contracts have declined by 50 percent in the past 4 years. The amendment I am offering today will help to change this. Small companies represent the majority of businesses in this country, and they are the most innovative. They issue more patents per employee than their large business counterparts. One would assume that this innovation would shine through in agencies that rely on scientific knowledge and expertise. However, this has not been the case. NASA is an agency that relies heavily on scientific expertise while, at the same time, they control a large segment of the Federal marketplace. They are consistently ranked third out of all Federal agencies in terms of procurement volume, buying more than the Department of Health and Human Services, the Department of Agriculture, and the Department of Interior combined. Clearly, NASA has the capability to meet their small business goals; however, they do need some assistance and we have no way to evaluate whether or not their efforts in increasing small business contracts are truly yielding results. This agency has an array of options when it comes to identifying small companies, whether they work with them individually, host national conferences, or connect with the SBA to identify contracting possibilities. But whatever they are doing is not yielding an increase in small business contracts. My amendment would guarantee that these outreach methods are examined so that we can pinpoint the best way for NASA to reach out to small firms. This would allow us to truly see what works, what does not work, and what industries are more likely to successfully penetrate NASA's procurement opportunities. It will also enable the Small Business Committee and the Science Committee to move forward in ensuring NASA is taking the right steps to meet their small business contracting goal. This amendment is a good government solution to a problem that has been facing our Nation's small companies for years now, their ability to access the Federal marketplace, and it is supported by the U.S. Women's Chamber of Commerce. Clearly, as stewards of taxpayer dollars, one of our most important charges is ensuring that these resources are used in the most effective and efficient manner possible. One of the best ways to go about this is to ensure accountability exists, and adoption of this amendment will achieve just that. This amendment will begin the process of identifying the barriers that prevent small companies from doing business with NASA. It will also assist NASA in honing its efforts at increasing small business access to contracts to those endeavors that have proven successful. I urge a ``yes'' vote on this amendment.

Ms. VELAZQUEZ. For clarification, it says here, ``shall enter into a cooperative agreement with a non-profit organization that has experience developing relationships between industry, minority institutions . . . '' It does not say physical or construction of physical facilities. And ``develop'' does not mean build.

Ms. VELAZQUEZ. Mr. Chairman, I offer an amendment.

Ms. VELAZQUEZ. Mr. Chairman, I offer an amendment.

Ms. VELAZQUEZ. Mr. Chairman, I demand a recorded vote.

Ms. VELAZQUEZ

Ms. VELAZQUEZ. Mr. Chairman, I offer an amendment.

Ms. VELAZQUEZ. Mr. Chairman, I yield myself such time as I may consume. Mr. Chairman, small businesses still struggle to participate in the Federal marketplace. For the past 4 years, the Federal Government has not met its small business contracting goal, costing entrepreneurs billions of dollars in lost opportunities. By failing to take advantage of their exceptional quality and reasonable prices, the Federal Government is losing out on the best value for taxpayers' dollars. One of the primary reasons the Federal Government has failed is because of contract bundling. These megacontracts have been responsible for a 56 percent drop in available contracts to small businesses in 9 years. After all this time, we have yet to see one dime in savings of taxpayers' dollars. The latest chapter in small business lost opportunity comes from the General Services Administration. GSA is moving forward with an ill- conceived megacontract called e-travel. With this contract, GSA is poised to eliminate a whole sector of the small business community, travel agents, from working with the government. This is an industry small businesses dominate, as 99 percent of its firms have 30 employees or less. This move is despite the President's small business agenda and his repeated statements that contracts should be broken into smaller pieces. Completely ignoring this, GSA is cutting small businesses out, all in the name of streamlining, which they cannot even prove. It is not a new issue. In fact, recognizing the potential harmful impact that this contract will have for small businesses and local economies, the conference report for the fiscal year 2004 omnibus appropriation took the extraordinary step of telling GSA it needs to preserve these contracts for small businesses. Despite this mandate, GSA did just the opposite, and made the e- travel project mandatory barely 1 month after the conference report. This means that no local or Federal office can use their neighborhood travel agency, even if they already have for years. The results of GSA's actions are massive losses which industry estimates project costing small travel agencies at least $100 million in contracting opportunities, and possibly more. With only 78,000 jobs being created last month, can we afford to lose out on more opportunity in areas of the country that so desperately need jobs? GSA is ignoring the President's small business agenda designed to increase contracting opportunities. They are ignoring the will of Congress. They care nothing about saving taxpayers' dollars. The amendment I am offering today will make sure they listen and stop pushing small businesses out of the Federal marketplace. Let us not forget the important role small travel agencies have played. On September 11, when thousands of people were stranded in airports, they took as long as was necessary to figure out ways to get people home. When people stopped traveling out of fear, they got them going again. The thanks they got from the airline industry was a loss of booking fees and direct competition. The airline industry decided it could do their job. Now the Federal Government is telling them that their services are no longer needed. This is not only shortsighted, but it fails to recognize the value that these companies add. My amendment will balance contracting opportunities in the travel industry, much like the previous system. It would allow large providers to perform on the national contracts, but it would not prevent a Federal agency from using a local travel agent if that is what they prefer to do. Let me make one thing clear. If this amendment is not adopted, not one single small business travel agent will be able to do business with Federal agencies, and this is outrageous. These megacontracts have clearly gone too far; and it is time that we say enough is enough. This amendment has received the support of the Society of Government Travel Professionals, as well as the U.S. Women's Chamber of Commerce. I am urging my colleagues today to protect small business contracting by supporting this amendment. Mr. Chairman, I reserve the balance of my time.

Ms. VELAZQUEZ. Mr. Chairman, I demand a recorded vote.

Ms. VELAZQUEZ. Mr. Chairman, will the gentleman yield?

Ms. VELAZQUEZ. Mr. Chairman, I just would like to respond for the record to a statement made by the chairman that the e-travel will save taxpayers' money. Let me just say that an industry review of the booking fees listed on the Federal Supply Schedule, it appears that GSA's figures on travel booking fees may have been estimated too high by as much as $20 per transaction, and these are the big industries, the big travel agencies, not the small businesses.

Ms. VELAZQUEZ

Ms. VELAZQUEZ. Mr. Chairman, I move to strike the requisite number of words. Mr. Chairman, I rise in strong support of restoring funding for Section 8 vouchers. Providing decent, safe affordable housing is one area that must not be overlooked in the greater debate on spending priorities. This bill funds Section 8 at the level of $314 million below the President's request, jeopardizing the housing of low-income families across the country. Without restored funding, hardworking families struggling to make ends meet will be left without homes and will be forced to turn to the already crowded shelter system. If you are committed to end homelessness as we know it, today you have the opportunity to vote for this amendment. The Nadler-Velazquez- Frank amendment will restore $100 million for Section 8 providing vouchers for approximately 15,000 families by reducing funding for HUD's working capital fund which provides for the technology needs of the Department. This increase will ensure that families working to create a better life for their children will have a safe, decent place to call home. Stable housing is the first step to economic advancement and positive outcomes for children. Without a steady home, children suffer from being shifted between shelters and the homes of family and relatives, missing school and lacking opportunity for the lasting relationships so crucial to healthy development. The Nadler-Velazquez-Frank amendment will help address this issue by restoring critical funding to a program that has had a tremendous impact on the lives of low-income families around the country. The Section 8 program is a lifeline for hundreds of thousands of families without which they would face the cold reality of life on the streets or the uncertainty of navigating our Nation's swelling shelter system. This amendment will prevent 15,000 families from losing their homes, continuing the support so needed as they strive to achieve economic stability in the face of challenging circumstances. In this body, day in and day out, we hear talk about family values. What issue could be more linked to the morals we espouse than providing safe and decent homes for America's families? The Section 8 program serves the approximately 2 million Americans in greatest need, and these families are depending on us here today. The Nadler-Velazquez-Frank amendment will restore $100 million in funding for 15,000 vouchers. This is a modest but important increase to protect the homes of families working to overcome obstacles in difficult economic times. I urge support of this amendment.

Ms. VELAZQUEZ. Mr. Chairman, I ask unanimous consent to strike the requisite number of words.

Ms. VELAZQUEZ. Mr. Chairman, I would like to respond to the chairman's statement regarding the fact that HUD did not use all the money last year. Let me just say that HUD only funded one third of all grants applications that were submitted to HUD last year; so clearly there is a need. Today we have the opportunity to send a strong message to the estimated 310,000 children that every year are poisoned by lead. Lead paint is a serious problem, taking an especially hard toll on low- income minority communities. If we do not address this issue now by investing in preventative measures, we run the risk of suffering the ramifications for decades to come. We cannot put a price on a child's health. However, we can recognize the impact cutting funding for HUD's lead hazard control grants will have on the health and safety of children around the country. This amendment will simply restore funding to last year's level while maintaining adequate funding levels for the programs it reduces through off-sets. With the need for this program outpacing the ability of community organizations to work with affected neighborhoods, we cannot sit idly by and fail to, at the very least, maintain current funding for such crucial services. I urge the Members to support this amendment and vote in favor of holding the line to protect the lives of children in all our districts.