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Committee to Vote on Bills Designed to Spur New Jobs, Cut Unnecessary Red Tape

Washington, June 20, 2011 - The Financial Services Committee on Wednesday will vote on several bills designed to spur private sector job growth and remove government barriers to job creation.

“The burden of excessive regulations makes it harder for companies, particularly small businesses, to hire new workers.  In fact, the Small Business Administration reports smaller firms spend almost $11,000 per employee just to comply with government red tape.  We need to rein in unnecessary government overreach and instead promote job creation in America again,” said Financial Services Committee Chairman Spencer Bachus.

The Committee is scheduled to vote on:

H.R. 1062, the Burdensome Data Collection Relief Act, introduced by Rep. Nan Hayworth.  This bill repeals a section of the Dodd-Frank Act that requires all publicly traded companies to disclose the annual median total compensation of all employees and a ratio comparing employees’ compensation with that of CEOs.  Testimony before the Committee revealed compliance with this mandate would be excessively time-consuming and costly, and yield information that is of little value to investors.  Repealing this unnecessary burden will enable companies to re-direct resources toward investments and new jobs.

“Placing additional paperwork burdens on our public companies to generate information that is immaterial to investors and shareholders squanders resources that could be used for job creation,” said Rep. Hayworth.  “The Burdensome Data Collection Relief Act repeals an expensive and unnecessary requirement, and frees funds to create the jobs that are our nation's first priority.”

H.R. 1070, the Small Company Capital Formation Act of 2011, introduced by Rep. David Schweikert.  H.R. 1070 makes it easier for small businesses to go public.  It decreases burdensome regulation on small businesses by increasing the offering threshold for companies exempted from SEC registration under Regulation A from $5 million to $50 million.  Though the Regulation A threshold has periodically increased from its initial ceiling of $100,000 in 1933 to the current $5 million ceiling in 1992, it has not been adjusted to reflect the rising costs associated with bringing a small company public over the last two decades.

“Taking a small business public is an important, but expensive, process that requires millions in underwriting costs,” said Rep. Schweikert. “My legislation is intended to relieve companies from these costs and excessive paperwork. At a time when so many small businesses are in need of capital, this is a common sense proposal that will make our capital markets more vibrant and competitive.”

H.R. 1082, the Small Business Capital Access and Job Preservation Act, sponsored by Rep. Robert Hurt.  This bill removes a costly Dodd-Frank Act mandate to allow small businesses easier access to private capital by exempting private equity fund advisers from having to register with the SEC.  Given the costs of registration and compliance, subjecting private equity advisers to this regulation diverts capital, time, and effort from activities that result in job creation.  By tailoring registration requirements to exempt private equity funds, H.R. 1082 strikes a better balance between the benefits of adviser registration and its costs.

“By reducing burdensome and costly government mandates that were placed on those who are making long term investments in our economy, small businesses will have the ability to access capital more easily so that more jobs can be created and more jobs can be preserved,” said Rep. Hurt.

H.R. 2072, the Securing American Jobs Through Exports Act of 2011, introduced by Rep. Gary Miller.  This legislation reauthorizes the Export-Import Bank for four years, through September 30, 2015.  The Export-Import Bank, established in 1934, helps finance the export of U.S. goods and services to international markets, which creates jobs for U.S. workers.

“This bipartisan bill focuses on domestic job creation, which is the key to our nation’s economic recovery,” said Rep. Miller, who serves as Chairman of the International Monetary Policy and Trade Subcommittee.  “It ensures the Export-Import Bank continues to create U.S. jobs by supporting American companies as they compete to secure export opportunities around the world.”

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