CQ TODAY ONLINE NEWS
March 20, 2012 – 11:21 p.m.
Small-Business Bill Still in Play
By Ben Weyl and Joseph J. Schatz, CQ Staff
The Senate will take a crucial procedural vote Wednesday on legislation to relax securities regulations that affect smaller companies, setting up likely passage of the bill by week’s end, although the measure might still go back to the House.
Having disposed of two amendments that drew vigorous Republican opposition, and despite the misgivings of some Democrats, the Senate is expected to invoke cloture and cut off debate on the measure. The bill is intended to make it simpler and less costly for smaller, closely held companies to raise capital and make initial stock offerings to the public.
Before passing the bill, the Senate might adopt an amendment to narrow the reach of some of its provisions, a step that would send the measure back to the House, where it passed overwhelmingly two weeks ago.
It is uncertain how the House might proceed if that were to happen. The amendment that might be adopted in the Senate presumably will be a portion of one that was effectively rejected Tuesday, when the Senate refused to invoke cloture on it.
One other issue, reauthorization of the Export-Import Bank, is no longer in play on the small-business securities bill. Cloture on an amendment to add Ex-Im Bank language to the bill was also rejected, and the fate of the export-financing agency, whose charter expires in two months, is unsettled.
Amendments Fall
The underlying securities regulation bill (
After the House passed the bill on a 390-23 vote March 8, with the president’s backing, Senate Democrats opted to simply take up the House measure rather than offer their own version.
As the bill gained steam last week, several senior Democrats, including
Senate Republicans, however, opposed substantial changes to the measure. And a Tuesday cloture vote to allow the Senate to take up a substitute amendment offered by Democratic critics fell short of the necessary 60 votes. The cloture motion was rejected, 55-44.
That outcome had been expected. But rejection of a second cloture motion to allow the Ex-Im Bank amendment caught Democrats by surprise and appeared to increase their doubts about the bill. The White House has highlighted reauthorization of the Ex-Im Bank as a central element of its manufacturing agenda, and Senate Democrats viewed that provision as a legislative sweetener for the underlying bill.
The Ex-Im amendment had been expected to be adopted with broad bipartisan support, but Senate Republicans backed off in reaction to objections from House conservatives, who did not want the Ex-Im language added.
The Senate voted 55-44 against limiting debate on the amendment, which was offered by Democrat
Small-Business Bill Still in Play
After the Senate rejected the cloture motion, which required 60 votes, Democrats huddled for roughly an hour to decide their next steps. Majority Whip
Levin said “absolutely” it is possible that a sufficient number of Democrats would vote against cloture on the bill itself Wednesday, dooming the measure. But Levin also said that Majority Leader
If cloture is invoked, non-germane amendments may not be offered, but germane amendments can be brought to a vote and would require only a majority for adoption. Levin said a piece of the rejected substitute intended to improve investor protections would probably be offered as a germane amendment.
Levin declined to say which provision that would be. But bipartisan language offered by Sens.
Their amendment would place restrictions on the use of social media channels and the Internet — a practice referred to as crowdfunding — to finance new businesses. Specifically, they would require anyone acting as a crowdfunding intermediary to register with securities regulators.
What’s Next for Ex-Im
Some Republican supporters of the Ex-Im reauthorization, including
Also Tuesday, Senate Minority Leader
But Reid said the Senate had other, more pressing matters to consider and warned Republicans that they would rue their “nay” votes. “You may be surprised at how this ends up,” Reid said.
A Rare GOP Response
The Ex-Im vote was a rare Republican rebuke to the business community. Although free-market champions such as the Club for Growth object to the Ex-Im Bank, the National Association of Manufacturers, the U.S. Chamber of Commerce and other business groups see the lender as essential to promoting U.S. exports abroad.
The next debate over the bank is likely to occur later this month in the House, where many conservatives oppose the agency on ideological grounds.
House Majority Leader
Small-Business Bill Still in Play
Cantor also has proposed a series of policy changes aimed at addressing the concerns of Delta Air Lines and other domestic carriers, which contend that the bank’s effort to help Air India buy Boeing planes has put U.S. airlines at a disadvantage.
The bank is expected to reach its lending cap in coming weeks, and its charter is set to expire at the end of May. It is designed to help finance the purchase of U.S.-made goods overseas when private loans are unavailable or unaffordable, often because of the political or economic risks in certain overseas markets.
The Ex-Im Bank provides direct loans to foreign buyers as well as loan guarantees to other lenders and credit insurance to companies.