Panel agenda: product safety, minority businesses, CFIUS

The Energy and Commerce Subcommittee on Commerce, Trade, and Consumer Protection enjoys jurisdiction over a wide array of federal statutes and agencies that play a key role in protecting U.S. consumers and stimulating U.S. economic competitiveness in domestic and international trade.

During the 111th Congress, my subcommittee will build on the effective legislative track record set, this year, by engaging in rigorous oversight of three agencies in particular: the Consumer Product Safety Commission, the Department of Commerce, and the Committee on Foreign Investment in the United States.

Our hearings, next year, will focus on evaluating those agencies’ effectiveness in safeguarding American consumers and promoting the national economic interest with a particular focus on small businesses. And, as conditions warrant, our work may lead to legislation that will improve their underlying statutes.

In August of this year, the president signed into law the Consumer Product Safety  Improvement Act of 2008, a piece of legislation that was the product of months of exhaustive, bipartisan negotiations to revitalize the Consumer Product Safety Commission. This bill, also known as Rush-Pryor, contains a number of trade-related provisions, whose implementation will be the subject of scrutiny by my subcommittee.

I intend to examine whether the CPSC is properly using its new authority to block the export of dangerous consumer products, as it is my strong conviction that other countries should not be a dumping ground for unsafe U.S. goods.  I am also concerned about the CPSC’s timely development of a risk assessment methodology for the identification of shipments of dangerous consumer goods bound for the United States.

Rush-Pryor directs the CPSC to develop this type of methodology and I will hold that agency accountable for its responsibility to improve its capacity to halt the entry of unsafe imported products into U.S. commerce. Finally, I look forward to receiving the Rush-Pryor-mandated GAO study on additional statutory authority required by the CPSC for ensuring better import safety. The subcommittee will hold a hearing on this report and consider possible legislation to implement the report’s suggestions.

Within the Department of Commerce, the Minority Business Development Agency (MBDA), the Economic Development Administration (EDA), and the Manufacturing Extension Partnership (MEP) administer programs to stimulate economic growth and extend its benefits to underserved communities.  As some of the negative effects of globalization on our country have become more pronounced, I believe that the programs provided by these important agencies are more important than ever because of the support for change and innovation they offer to America’s small business community.

In brief, it will be my goal in the new Congress to make certain that programs administered by MBDA, EDA and MEP are effectively run and not further eviscerated by a lack of funding.  In the case of minority businesses, securing access to equity capital and debt financing has long been an impediment to their success in the global marketplace. Moreover, minority businesses often suffer for lack of adequate input regarding their long-term growth strategies.

I intend to examine the effectiveness of MBDA’s efforts to improve minority businesses’ access to these essential development tools. I will seek the counsel of some of the best minds in the minority- and women-owned business community and will provide input concerning the agency’s strategic plan for minority business development.  Additionally, one of my goals in the 111th Congress and beyond is to ensure that minority businesses are fostered and become full partners in the economic trade agenda of the United States.

With regard to EDA, I was troubled by the administration’s request for a $149 million cut in funding for 2009, thereby lowering the number of estimated jobs that would have been created under full funding. I am also concerned that this cut shifts EDA away from its primary mission of providing grants to offering services in the form of development consulting. I intend to hold hearings on the comparable value of grants versus consulting on job creation in order to establish a more accurate framework for evaluating economic development programs.

Lastly, the subcommittee will scrutinize the effects of reduced funding to MEP on the nation’s manufacturing sector and use this evidence to support full funding for this program.

Next year we will also exercise thorough oversight of the Committee on Foreign Investment in the United States (CFIUS) to make certain that a balance between national security and the need to attract foreign investment is maintained. I believe that promoting foreign investment in the U.S. is necessary for our country’s ability to compete globally, but this investment should not come at the risk of our country’s security.

In early 2007, the subcommittee played a key role in advancing legislation to strengthen CFIUS’ review and approval process. This legislation, the Foreign Investment and National Security Act of 2007, is now in effect and requires CFIUS to submit annual reports on all reviews and transactions it completes during the preceding year. The subcommittee will insist that these reports be submitted as required and review them thoroughly to ascertain whether further amendments to the CFIUS process are necessary.  

While this represents an ambitious agenda for the Subcommittee on Commerce, Trade, and Consumer Protection, I believe it is necessary to improve the effectiveness of the federal government’s contribution to the responsible growth of the national economy and the safety of its consumers.

Rush is chairman of the House Energy and Commerce Committee’s Subcommittee on Commerce, Trade, and Consumer Protection.