Oversight Hearings to Examine Compliance Costs, Regulatory Process, and Crowdfunding Proposals from President Obama and Congress
(WASHINGTON)— President Obama and his Administration can immediately take action to create jobs and grow the economy by working with House Oversight and Government Reform Committee leaders to address regulatory reform and a broken rulemaking process that creates market uncertainty—a disincentive to entrepreneurs and new investment.
Next week, the Committee will hold three hearings to address these regulatory challenges and review some of the ideas presented by President Obama during his September 8 address to Congress.
“One area where Congress and the President can work together to create jobs and grow the economy is in the area of regulatory reform and uncertainty.” Chairman Darrell Issa (R-CA) said.
Issa pointed out that 75 new major regulations imposed by the Obama Administration will cost American businesses some $38 billion per year in compliance and that the ranks of government regulators would grow by 10,000 employees this year and next, contrasted with job losses in the private sector. Issa said the regulatory climate was “putting a brake on entrepreneurs and hurting job creation.”
“Entrepreneurs tell me they are not investing or expanding because there is regulatory uncertainty—they can’t plan for or anticipate regulations and related costs they are implemented without regard for the long-term, planning needs of businesses. This money sits on the sidelines—and capital withheld is money not invested to grow a firm, create jobs or pursue new opportunities,” Issa said. “Job creating capital follows the path of least uncertainty,” he added.
On Tuesday, the Subcommittee on Regulatory Affairs, Stimulus Oversight and Government Spending will examine President Obama’s new jobs proposal. Wednesday, the full Committee will focus on Office of Information and Regulatory Affairs (OIRA) oversight of regulators, problems within the rulemaking process, and the impact of these regulations on the U.S. economy. Thursday, the Subcommittee on TARP, Financial Services, and Bailouts of Public and Private Programs will examine reforms to the small business capitalization process that could expand innovation and job creation.
President Obama’s jobs plan suggests that an exemption be created for “crowdfunding” under SEC registration requirements for certain firms. The Committee brought this issue to the attention of Securities and Exchange Commission Chairman Mary Shapiro in March. The agency later confirmed to the Committee the efficacy of this type of funding.
A detailed media advisory including hearing times and locations is available here.