Business and Economic Development (BED) Policy Committee

A RESOLUTION ENCOURAGING ECONOMIC FAIRNESS AND ACCESS FOR SMALL BUSINESSES

WHEREAS, the Small Business Administration has reported that there are 28.2 Million small businesses operating in the U.S., approximately 99.7 percent of all U.S. businesses;

WHEREAS, minorities own 15.1 percent of all U.S. businesses and more than 1/3 of the minority owned small businesses in America are owned by members of the Hispanic community and African-American ownership makes up only 28.1 percent of minority small businesses in the U.S.;

WHEREAS, U.S. Census Bureau studies, as recently as 2012, have shown that African-American small business ownership at 2.6 million firms and has risen as much as 35 percent from similar studies in 2007;

WHEREAS, small business owners have significant burdens to start, manage, and grow their businesses including administrative burdens around managing employees and regulations and access to capital;

WHEREAS, the Small Business Administration has invested in partnerships and programs to provide resources to all communities, like Startup-in-a-Day and the Small Business Technology coalition;

WHEREAS, technology platforms are making it easier to provide benefits, access health insurance, advertise, and track customer engagements;

WHEREAS, access to capital investment is seen as a significant roadblock to new African-American entrepreneurs creating small businesses and that less than 50 percent of requested funding dollars are provided to any small business regardless of color;

WHEREAS, according to recent studies by the Corporation for Enterprise Development and the Institute for Policy Studies it will take 228 years for African-Americans to accumulate the same wealth as White Americans have now if current policies stay in place;

WHEREAS, studies found that over the past 30 years, the average wealth of white families has grown by 84 percent; three times the growth rate for African-Americans and 1.2 times the growth rate for Hispanics;

WHEREAS, contracts through local and state governments comprise a significant opportunity for capital investment through guaranteed contracts and in most cases, have small carve outs for local or minority owned
businesses;

WHEREAS, the National Black Caucus of State Legislators (NBCSL) seeks to increase the number of African
-American small businesses and bridge the wealth divide through common sense policies at the local, state,
and federal level;

WHEREAS, NBCSL seeks to provide entrepreneurs with the local, state, and federal resources and toolkits
needed to be successful;

WHEREAS, NBCSL seeks to support policies that will create new capital investment opportunities to small
businesses in the minority community as well as identifying increased public contract carve outs for local and
minority businesses.

THEREFORE BE IT RESOLVED, that the National Black Caucus f State Legislators (NBCSL) support local,
state, and federal programs that make the process of opening and managing a small business easier such as
Start Up in a Day programs, mentoring programs, and local Small Business Development Centers;

BE IT FURTHER RESOLVED, that NBCSL members seek funding for and encourage programs that foster
relationships with government led toolkits such as the Small Business Technology Coalition;

BE IT FURTHER RESOLVED, that NBCSL members encourage partnerships with free technology solutions
dedicated to making entrepreneurship easier;

BE IT FURTHER RESOLVED, that NBCSL members call on the next administration to continue programs
like the SBA’s Small Business Technology Coalition and invest in programs that will make African-American
small businesses more competitive;

BE IT FURTHER RESOLVED that NBCSL members should call on the White House and members of
Congress to identify policies that perpetuate a wealth divide through a government-wide audit of policies and
procedures and to resolve tax policies to help families of color build wealth;

BE IT FURTHER RESOLVED, that NBCSL members call on Congress and the Administration to develop
more competitive and available investment models that will provide universal access to capital and work with
state and local governments to increase procurement opportunities to Minority and Women owned businesses;
and

BE IT FINALLY RESOLVED, that a copy of this resolution be transmitted to the President of the United
States, the Vice President of the United States, members of the United States House of Representatives and the United State Senate, and other federal, state and local government officials as appropriate.

• SPONSOR: Representative Karla May (MO)
• Committee of Jurisdiction: Business and Economic Development Policy Committee
• Certified by Committee Chair: Senator Jeffery Hayden (MN)
• Ratified in Plenary Session: Ratification Date is December 3, 2016
• Ratification is certified by: Senator Catherine Pugh (MD), President

A RESOLUTION CALLING FOR AN END TO ABUSIVE DEBT COLLECTION PRACTICES

WHEREAS, 77 million Americans have debt in collections reported on their credit files, with African American neighborhoods more likely to have residents who have debts in collection;

WHEREAS, as outlined by the US Senate Banking, Housing and Urban Affairs Committee in a report supporting the federal Fair Debt Collection Practices Act, the overwhelming majority of people who are in debt and being pursued by debt collectors are not in debt by choice, but due to circumstances such as unexpected job loss, divorce or marital problems, overextension, and serious illness;

WHEREAS, the Federal Trade Commission (FTC), Consumer Financial Protection Bureau (CFPB), and many state Attorneys General receive more complaints about debt collection than any other industry;

WHEREAS, the top complaint by consumers to the Consumer Financial Protection Bureau on debt collection is being pursued for debts not owed;

WHEREAS, debt collectors often use aggressive tactics to collect debts, including pursuing the wrong person, attempting to collect debts not owed or already paid, making harassing and threatening phone calls, and filing wrongful lawsuits;

WHEREAS, debt collectors, when they acquire or purchase debts, often receive limited or outdated information about the debts they are collecting and individuals who allegedly owe the debts and rarely receive account documentation establishing that the debt is owed;

WHEREAS, debt collectors file hundreds of thousands of lawsuits each year in state courts to collect debts, even if they lack sufficient information and documentation on the debts to establish that an individual owes a specific debt;

WHEREAS, the vast majority of debt collection cases result in judgments in favor of the debt collector, often because an individual does not defend against the case for reasons including lack of notice of the lawsuit, inability to afford an attorney, a lack of understanding of the legal process, or inability to get off work;

WHEREAS, in most states, a court judgment, which can last for a decade or more, enables a debt collector to garnish wages, freeze bank accounts, and place a lien on property to satisfy the judgment;

WHEREAS, court judgments are included in consumer credit reports, have a negative impact on credit scores, and as a result, may impede access to affordable credit and housing and shut individuals out of job opportunities;

WHEREAS, abusive debt collection tactics result in individuals paying money for debts they may not owe or are not legally required to pay;

WHEREAS, consumers suffer financial harm as a result of lawsuits filed using inadequate information, whether due to defending a wrongful lawsuit or for wages garnished following a judgment, and this is particularly true for debts not owed;

WHEREAS, black neighborhoods suffer a disproportionate share of debt collection lawsuits and judgments than white neighborhoods – black neighborhoods have two times the number of judgments than white neighborhoods, regardless of income level;

WHEREAS, armed with those judgments, debt collectors and creditors extract millions of dollars from black neighborhoods each year, some for debts they cannot prove or the individual does not owe, causing residents to struggle to make ends meet;

WHEREAS, the Consumer Financial Protection Bureau is currently considering the first ever federal rule on debt collection to address abusive debt collection practices;

WHEREAS, the federal government currently lacks regulations requiring debt collectors to possess, and creditors to pass on, necessary information and documentation before initiating debt collection activities, including filing lawsuits;

WHEREAS, some states have taken steps to enact important protections against abusive debt collection practices, many state governments and judiciaries similarly lack strong rules on documentation of debts and ownership required prior to attempting to collect, bringing suit, and obtaining judgments against consumers in court; and

WHEREAS, federal and state laws on wage garnishment are outdated and often do not protect enough income from seizure to allow families to subsist or provide for basic living expenses.

THEREFORE BE IT RESOLVED, the National Black Caucus of State Legislators believes, individuals have the right to be free from unfair, abusive, and deceptive debt collection practices that result in harassment, coerced payments, or wrongful court judgments;

BE IT FURTHER RESOLVED, the NBCSL condemns abusive debt collection tactics that subject individuals to harassment and threats, cause them to pay money for debts they do not owe, and subject individuals to wrongful lawsuits and court judgments;

BE IT FURTHER RESOLVED, the NBCSL calls on state legislatures to adopt legislation requiring more detailed and accurate information and documentation when debt collectors seek to collect debts in their states, including filing lawsuits;

BE IT FURTHER RESOLVED, the NBCSL encourages state judiciaries to tighten evidentiary requirements for obtaining judgments – including default and summary judgments – against consumers in debt-related cases;

BE IT FURTHER RESOLVED, the NBCSL urges the Consumer Financial Protection Bureau to issue strong rules that bring needed reforms to abusive debt collection practices;

BE IT FURTHER RESOLVED, the NBCSL urges federal regulators, including federal banking regulators, to bring oversight to creditor debt collection practices, including the sale of old debts;

BE IT FURTHER RESOLVED, the NBCSL urges federal regulators, especially the Consumer Financial Protection Bureau in its upcoming debt collection rule, to prohibit the initiation of collection efforts on any debt unless the debt collector has the information necessary to substantiate and verify the debt being sought;

BE IT FURTHER RESOLVED, the NBCSL encourages federal and state legislators to pass legislation that protects more income and property from wage garnishment and seizure, particularly for lower‐income households; and

BE IT FINALLY RESOLVED, that a copy of this resolution be transmitted to the President of the United States, the Vice President of the United States, members of the United States House of Representatives and the United States Senate, and other federal and state government officials as appropriate.

• SPONSOR: Senator Floyd B. McKissick, Jr. (NC)
• Committee of Jurisdiction: Business and Economic Development Policy Committee
• Certified by Committee Chair: Senator Jeffery Hayden (MN)
• Ratified in Plenary Session: Ratification Date is December 3, 2016
• Ratification is certified by: Senator Catherine Pugh (MD), President

A RESOLUTION URGING THE U.S. ENVIRONMENTAL PROTECTION AGENCY TO ADOPT RULES ADDRESSING PROBLEMS IMPACTING MINORITY CONSUMERS AND SMALL BUSINESSES IN THE RENEWABLE IDENTIFICATION NUMBERS MARKET

WHEREAS, Congress adopted a renewable fuel standard in 2005, and expanded it in 2007, to put more biofuels in the U.S. market in order to improve the environment and energy security;

WHEREAS, the Environmental Protection Agency developed Renewable Identification Numbers (RINs) as a way to keep track of each qualifying gallon of renewable fuels;

WHEREAS, big integrated oil companies and large gasoline convenience store chain are able to earn and sell RINs;

WHEREAS, Renewable Identification Numbers can be sold and traded on a secondary market, separately from biofuels, increasing the likelihood of fraud;

WHEREAS, the current method the EPA has chosen to demonstrate compliance with that standard, has caused both excessive Wall Street speculation and fraud in the market for renewable fuels, endangering the very purpose of the program;

WHEREAS, adverse impacts on refining related to these implementation problems endanger gasoline supply and price, creating substantial unequal impacts for consumers living on fixed incomes and in communities of color;

WHEREAS, people of color own about 42 percent of independent gasoline retail stations, which are often squeezed by these implementation problems;

WHEREAS, these implementation problems also create competitive disadvantages for small gasoline retailers and convenience stores with large numbers of minority owners; and

WHEREAS, a simple administrative change to the program moving the point of obligation for providing renewable identification numbers, or RINs, downstream could fix the problem for gasoline consumers and small businesses.

THEREFORE BE IT RESOLVED, the National Black Caucus of State Legislators (NBCSL) calls on the U.S. Environmental Protection Agency to adopt a rule to address problems in the RINs market by moving the point of obligation in order to eliminate incentives for excessive speculation and fraud;

BE IT FURTHER RESOLVED, the newly created Quality Assurance Program should have a component that addresses how fraud impacts minority owners and communities of color; and

BE IT FINALLY RESOLVED, that NBCSL send a copy of this resolution to the President of the United States, the Vice President of the United States, members of Congress, and other federal and state government officials as appropriate.

• SPONSOR: Representative Billy Mitchell (GA)
• Committee of Jurisdiction: Business and Economic Development Policy Committee
• Certified by Committee Chair: Senator Jeffery Hayden (MN)
• Ratified in Plenary Session: Ratification Date is December 3, 2016
• Ratification is certified by: Senator Catherine Pugh (MD), President

A RESOLUTION FOR NBCSL TO REAFFIRM SUPPORT FOR STATEHOOD FOR THE DC; SUPPORTS REFERENDUMS ON THE QUESTION

WHEREAS, the NBCSL has robust, established policy in support of the home rule, budget autonomy and Congressional representation which come with full statehood for the residents of the District of Columbia in resolutions from 1978, 2002, 2004, 2005, 2006, 2007, and 2011;

WHEREAS, the residents of the District of Columbia pay federal taxes, serve in the U.S. military, and participate in jury service like all other Americans citizens;

WHEREAS, almost half of all the people living in the District of Columbia identify themselves as “Black” or “African American”;

WHEREAS, according to the U.S. Census Bureau, there are more than 601,000 people living in the District of Columbia at the time of the most recent census, compared to Wyoming, which had less than 564,000 yet which has full voting representation in Congress with two Senators and one Congressperson;

WHEREAS, in fiscal year 2016, the gross state product for the District of Columbia was estimated to be more than $120 billion, more than that of 16 states;

WHEREAS, as of 2015, Washington, D.C. residents paid $1.6 billion a year in federal taxes -more per person than the residents of every state;

WHEREAS, in 2016, as a show of fiscal independence and for the first time, the elected officials of the District of Columbia plan to enact a local spending plan totaling $13 billion — without Congressional appropriation of those funds. Instead, the city will begin spending its money in a manner determined by locally elected officials unless federal lawmakers act to stop it;

WHEREAS, there is also a move to put a referendum on the ballot in November 2016 allowing the residents of the District of Columbia to decide on whether or not they want statehood; and

WHEREAS, if such a ballot were to be placed on the ballot and ultimately approved, it would provide District of Columbia residents and their struggle for statehood with more and much-needed national impact.

THEREFORE, BE IT RESOLVED, that the National Black Caucus of State Legislators (NBCSL) reaffirms its resolutions from 1978, 2002, 2004, 2005, 2006,07, and 2011 supporting residents of the District of Columbia in their struggle for home rule, Budget autonomy, and representation in Congress;

BE IT FURTHER RESOLVED, that NBCSL supports a referendum which would give the residents of the District of Columbia the full representation they so rightly deserve, and the rights and responsibilities inherent in statehood; and

BE IT FINALLY RESOLVED, that NBCSL send a copy of this resolution to the President of the United States, the Vice President of the United States, members of Congress, and other federal and state government officials as appropriate.

• SPONSOR: Representative Brenda Gilmore (TN)
• Committee of Jurisdiction: Business and Economic Development Policy Committee
• Certified by Committee Chair: Senator Jeffery Hayden (MN)
• Ratified in Plenary Session: Ratification Date is December 3, 2016
• Ratification is certified by: Senator Catherine Pugh (MD), President