Legislative focus: small business lending and tax relief, tax extenders

The HOUSE convened at 2 p.m. today to take up four measures under suspension of the rules. Tuesday, and the balance of the week, the House is expected to take up ten measures under suspension of the rules and four measures subject to a rule.

The House will spend this week working on a handful of bills designed to improve economic conditions for small businesses, while the Senate is scheduled to resume work on a bill that would extend expired tax provisions.

The House is set to begin debate of the Small Business Jobs Tax Relief Act (H.R. 5486). The legislation would create tax incentives to promote job creation by small businesses. The bill, introduced late last week by House Ways and Means Chairman Sander Levin (D-MI), includes provisions to increase the tax deduction for trade or business start-up expenditures from $5,000 to $20,000, and to exclude from gross income any amount paid under the Small Business Borrower Assistance Program. The legislation also would increase by 7.75 percent the estimated tax installment for certain large corporations in the third quarter of 2015.

The House is also expected this week to consider another bill to assist small firms, the Small Business Lending Fund Act (H.R. 5297). Sponsored by House Financial Services Committee Chairman Barney Frank (D-MA), the bill is designed to increase lending to small businesses by creating a $30 billion fund that would be used to provide capital to community banks. The fund would be completely separate from the Troubled Asset Relief Program (TARP). The House Rules Committee has scheduled a meeting on June 14 at 5 p.m. to set the procedure for floor debate of both bills.

The SENATE convened at 2 p.m. today to continue consideration of the tax extenders bill (H.R. 4213).

The Senate is scheduled to resume consideration of the House-amended version of the American Jobs, Closing Tax Loopholes, and Preventing Outsourcing Act (H.R. 4213). The Senate began consideration of the legislation June 8, but took a break from the bill to vote on resolution disapproving an Environmental Protection Agency's regulation on greenhouse gas emissions (S.J. Res. 26).

The tax bill, which originally passed the Senate in March on a vote of 62-36, would extend through the end of the year $31 billion in tax code provisions that expired at the end of 2009. The bill includes provisions related to charitable contributions, disaster relief, and the purchase of hybrid vehicles. The House's amendment to the bill removes several provisions, including an extension of federal assistance to state for Medicaid and subsidized insurance for displaced workers. Several Senate amendments are pending, including an amendment introduced by Sen. Bernie Sanders (I-VT) amendment (4318) (to 4301) that would close tax loopholes for oil and gas companies, with the additional tax revenues to be used to reduce the budget deficit and invest in energy efficiency and conservation.

KEY HEARINGS & MARKUPS

The House Rules Committee: The House Rules Committee will consider rules for floor debate for pending legislation, concerning HR 5297 to create the Small Business Lending Fund Program and HR 5486 to amend the Internal Revenue Code of 1986.
Monday June 14, 5:00 p.m., H-313 Captiol Building.

The Senate Energy and Natural Resources Committee: The Energy Subcommittee of the Senate Energy and Natural Resources Committee will hold a hearing on pending energy legislation.
Tuesday, June 15, 2:30 p.m., 336 Dirksen Building.

The Senate Health, Education, Labor and Pensions Committee: The Senate Health, Education, Labor and Pensions Committee will hold a hearing titled “Evaluating the Health Impacts of the Gulf of Mexico Oil Spill”. 
Tuesday, June 15, 2:30 p.m., 430 Dirksen Building.

The Senate Homeland Security and Governmental Affairs Committee: The Senate Homeland Security and Governmental Affairs Committee will hold a hearing titled “Protecting Cyberspace as a National Asset: Comprehensive Legislation for the 21^st Century”. 
Tuesday, June 15, 3:00 p.m., 342 Dirksen Building.

The Federal Financial Management, Government Information, Federal Services, and International Security Subcommittee of The Senate Homeland Security and Governmental Affairs Committee will hold a hearing titled “The Gulf of Mexico Oil Spill: Ensuring a Financially Responsible Recovery”.
Wednesday, June 16, 3:00 p.m., 342 Dirksen Building.

The Senate Small Business and Entrepreneurship Committee: The Senate Small Business and Entrepreneurship Committee will hold a hearing on efforts to harness small business innovation, focusing on navigating the evaluation process for Gulf Coast oil spill cleanup proposal.
Thursday, June 17, 10:00 a.m., Dirksen Building.

The Senate Veterans’ Affairs Committee: The Senate Veterans’ Affairs Committee will hold a hearing on VA health care in rural areas.
Wednesday, June 16, 9:30 a.m., 418 Russell Building.

The House Agriculture Committee: The General Farm Commodities and Risk Management Subcommittee of the House Agriculture Committee will hold a hearing on issues related to the 1212 farm bill.
Thursday, June 17, 10:00 a.m., 1300 Longworth Building.

The House Budget Committee: The House Budget Committee will hold a hearing on the administration’s expedited recession proposal. 
Thursday, June 17, 10:00 a.m., 2010 Cannon Building.

The House Education and Labor Committee: The House Education and Labor Committee will hold a hearing on the review of standards for program length conducted by the inspector general of the Department of Education.
Thursday, June 17, 10:00 a.m., 2175 Rayburn Building.

The House Energy and Commerce Committee:  The energy and Environment Subcommittee of the House Energy and Commerce Committee will hold a hearing titled “Drilling Down on America’s Energy Future: Safety, Security and Clean Energy”.
Tuesday, June 15, 9:30 a.m., 2131 Rayburn Building.

Health Subcommittee of House Energy and Commerce Committee will hold a hearing on actions taken by the by the Department of Health and Human Services to identify and address health effects of the BP oil spill. 
Wednesday, June 16, 2:00 p.m., 2123 Rayburn Building.

Communications, Technology and the Internet Subcommittee of House Energy and Commerce Committee will hold a hearing on pending draft proposals and legislation relating to a nationwide, interoperable public safety communications network. 
Thursday, June 17, 10:00 a.m., 2322 Rayburn Building.

Oversight and Investigations Subcommittee of House Energy and Commerce Committee will hold a hearing on the accident in the Gulf of Mexico involving the BP offshore oil rig Deepwater Horizon. 
Thursday, June 17, 10:00 a.m., 2123 Rayburn Building.

The House Homeland Security Committee: The Emergency Communications, Preparedness, and Response Subcommittee of The House Homeland Security Committee will hold a hearing titled “Caring for Special Needs During Disasters: What’s being done for Vulnerable Populations?” 
Tuesday, June 15, 10:00 a.m. 311 Cannon Building.

The House Homeland Security Committee will hold a hearing titled “ Cyber Security: DHS’ Role, Federal Efforts and National Policy”.
Tuesday, June 16, 10:00 a.m., 311 Cannon Building.

Border, Maritime and Global Counterterrorism Subcommittee of The House Homeland Security Committee and Management, Investigations, and Oversight Subcommittee of the House Homeland Security Committee will hold a joint hearing titled “SBInet: Does it Pass the Border Security Test?”. 
Thursday, June 17, 10:00 a.m., 311 Cannon Building.

The House Judiciary Committee: Commercial and Administrative Law Subcommittee of The House Judiciary Committee will hold a hearing on legislation that would prohibit states or local governments from levying or collecting a discriminatory tax on the rental of motor vehicles. 
Tuesday, June 15, 11:00 a.m., 2141 Rayburn Building.

The House Natural resources Committee: The Water and Power Subcommittee of House Natural Resources Committee will hold a hearing on pending legislation.
Thursday, June 17, 10:00 a.m., 1334 Longworth Building. 

 
HOUSE PANEL APPROVES SAFE DRINKING WATER REAUTHORIZATION

Last month, the House Energy and Commerce Committee marked up H.R. 5320, the Assistance, Quality and Affordability Act of 2010, or AQUA Act.  It was approved 45-1. 

The Act raises funding for the Drinking Water State Revolving Fund and works to ensure that public drinking water supplies are healthy and safe to drink.  This is accomplished by funding projects to improve the long term viability of drinking water supplies, prioritizes assistance to disadvantaged communities, reduces the legal amount of lead for pipes and fixtures, and encourages public water systems that are more environmentally friendly. 

Last week, the Congressional Budget Office released its cost estimate for the bill, which can be found here.

 
SENATE REJECTS BID TO OVERTURN THE EPA

On June 10, the Senate rejected 47-53 Senator Lisa Murkoski's (R-AK) joint resolution (S.J. Res. 26) to overturn the EPA's recent finding that greenhouse gas emissions from cars is a danger to public health.  6 Democrats joined all 41 Republicans in support of the measure.

Many believe the resolution may have passed if not for the last minute decision by Senate leadership to guarantee a vote on a bill offered by Senator Jay Rockefeller (D-WV) which would delay implementation of EPA's finding by two years.  Conservative Democrats, and likely many Republicans, view this option as a compromise, but its success will depend on finding a proper vehicle for the bill, which is not likely to advance as a standalone bill.

Murkowski's resolution was viewed as a test for broader global warming legislation proposed by Senators in both parties.  This vote would indicate that a climate change bill would still lack the 60 votes necessary to pass the Senate.

The EPA published their finding on December 15 ruling that greenhouse gasses are harmful to people and can be regulated under the Clean Air Act.  This finding allowed the EPA to legally issue rules controlling greenhouse gas emissions from cars. 

Critics of the EPA ruling say it will force millions of small businesses to adopt costly new requirements.  Opponents of Murkowski's resolution claim it would overturn the EPA's greenhouse gas restrictions on cars and would lead to increased oil consumption.    

The House passed the Hoover Dam bill (H.R. 4349), sponsored by Grace Napolitano (D-CA). The bill would reauthorize the distribution of power to Nevada, California and Arizona for another 50 years.  The current agreement expires in 2017.  Representative Napolitano's bill is almost identical to the one introduced by Senator Harry Reid (D-NV).

In addition, starting in 2017, the bill would allocate 5 percent of the power from each state to federally recognized American Indian tribes.  That power will jointly be distributed by the Western Area Power Administration along with the Arizona Power Authority and the Colorado River Commission of Nevada. 

The bill has yet to come for a vote on the Senate side where it is being debated in the Water and Power Subcommittee of the Senate's Energy and Natural Resources Committee.  Public comment has been extended until September 30 on the matter.

Last week, Rep. Bill Pascrell (D-N.J.) and Rep. Peter King (R-N.Y.), Ranking Member on the House Homeland Security Committee, introduced the WMD Prevention and Preparedness Act of 2010, H.R. 5498. 

The legislation seeks to address the recommendations made by the Commission on the Prevention of WMD Proliferation and Terrorism in their report issued December 2008. Among other things, the bill would establish a WMD Intelligence and Information Sharing unit at the Department of Homeland Security (DHS), require DHS to prepare biennial bioterrorism risk assessments, and require new measures to strengthen the security at laboratories handling high-risk biological materials.

In addition, the legislation would authorize grants to state and local governments to enhance security at certain laboratories and require that vulnerability assessments and security plans for these laboratories be shared with state and local government authorities.