CELEBRITY IN CHIEF BARRY O IS A LITTLE BITCH BOI AND, AS SUCH, HE CAN'T HELP BUT BRING OUT THE BITCH IN OTHERS.
CASE IN POINT, HARRY REID WHO HAS DECIDED THAT HE DOESN'T WANT TO BE SENATE MAJORITY LEADER, HE WANTS TO BE A FISH WIFE, A GOSSIPY SHREW WHO GOES AROUND REPEATING FALSEHOODS.
REACHED FOR COMMENT, REID EXPLAINED TO THESE REPORTERS, "IT'S SO MUCH FUN TO BE CATTY. I WISH I HAD DISCOVERED THIS YEARS AGO. NOW, IF YOU'LL EXCUSE ME, THAT MAN IN THE WINDOW OVER THERE LOOKS LIKE AN IDIOT AND THOSE DOUBLE CHINS! I NEED TO GO INSULT HIM."
WITH THAT, HARRY REID HURRIED OFF BEFORE THESE REPORTERS COULD INFORM HIM THAT WASN'T A WINDOW, IT WAS A MIRROR ON THE WALL AND HE'D BEEN LOOKING AT HIS OWN REFLECTION.
FROM THE TCI WIRE:
With the non-stop wars of the last years, there are a
large number of veterans in the US population. Some of them would like
to start their own businesses. Gordon Block (Watertown Daily Times) reports
on "soldiers and veterans" who turned out for a seminar on that topic
that New York Governor Andrew Cuomo was behind. Those attending were
able to ineract with "Empire State Development; the Departments of
State, Labor, and Taxation and Finance; the state Liquor Authority and
the Workers' Compensation Board." Governor Cuomo's Deputy Secretary for
Civil Rights, Alphonso B. David, explains, "We want them to understand
there are these resources." This week the Deputy Administrator of the
US Small Business Administration Marie C. Johns explored the topic at The Huffington Post and noted,
"In fact, over nine percent of veterans start or purchase a business
once they return home. And the ripple effect of their entrepreneurial
spirit is evident in the rate of small business ownership across the
nation. Currently, there are over two million veteran entrepreneurs
employing close to six million people across the nation."
Veteran
businesses, Congress was told today, that apply for to be recognized as
such by the VA suffer from a 60% initial rejection rate and there is a
40% rejection rate for those who apply a second time. The VA's Leney
stated that the VA believed, this year alone, 59 businesses had
fraudulently applied for veteran status and that they had referred those
59 to the Office of Inspector General. This is more than double the
2011 numbers (25 referred) and 2012 is not yet over.
Chair
Marlin Stutzman: Everyone here knows about the problems VA has had
implementing the small business provisions of a series of public laws
beginning Public Law 109-461 and we'll hear more about it today, I'm
sure. While addressing those continuing issues is important, especially
those that may include criminal activity, the past is not my focus
today. I want to know how and -- equally important -- when VA will put
in place the systems and the policies that will shorten the time,
decrease the level of effort needed to pass muster to lower the costs
and finally create a community of veteran owned businesses that is
reasonably free from unqualified companies. This is not just a VA
task. There are issues we in Congress need to deal with as well.
"We
have patiently waited for signs of progress following the installation
of a new Executive Director of Smll and Veteran Business Programs at the
VA," declared Chair Bill Johnson this morning. "And while some
improvements have been made, unfortunately the goals established nearly
a year ago have yet to be achieved. This Committee has an oversight
responsibility to the American people to ensure that tax dollars
administered by the VA are going to legitimate, qualified, veteran owned
businesses. I am hopeful that today's hearing will encourage and
assist the VA in reaching their goals of improving the CVE [Center for
Veterans Enterprise] once and for all."
Stutzman
and Johnson were co-chairing a joint hearing of two House Veterans
Affairs subcommittees -- the Subcommittee on Economic Opportunity
(Johnson) and the Subcommittee on Oversight and Investigation
(Stutzman).
The first panel was the
Executive Director of VA's Office of Small and Disadvantaged Business
Utilization, Thomas Leney. That's what we're emphasizing today because I
want it on the record here that the Congress believes the VA is not in
compliance with the law. In addition, we're going to note the most
puzzling and troubling moment of the hearing. This also took place on
the first panel. If you're a veteran wanting to start a small business,
you may need money. One way to get money for your business is to bring
in investors. But while, in the real world, doing that will not
penalize you, in the faux world of VA classifications, it turns out many
veteran owned businesses are not getting recognized as such -- which
can mean that they are not allowed to bid for VA contracts. VA is
operating under a defintion of ownership and control that is unique to
the world of VA and clearly puzzled the members of Subcommittees --
Democrats and Republicans.
First up, the issue of the law. Excerpt:
Chair
Bill Johnson: Mr. Leney, you heard the quote I read just a little bit
before from the Federal District Judge for the District of Columbia.
He said "several of the groups cited by the CVE as a basis for denying
the application for inclusion in the VetBiz VIP database are described
in such generalized and ambiguous terms that the Court is essentially
left to guess as to the precise basis for the agency's decision." So
what steps has the CVE taken to ensure that decisions for appeals are
sufficiently reasoned so that, if the issue does go to court, a judge
can properly exercise judicial review.
Thomas Leney: Uh -- sir, I find that, uh, judicial concern, uh, troubling --
Chair
Bill Johnson: Okay, I know you find it troubling. And we've got a lot
of witnesses to hear from today. I don't want to -- I don't want to
spin our wheels. Have you made any improvements as a result of that
District Judge's findings and the input that we've given you from this
Committee -- Subcommittee -- to make sure that appeals are sufficiently
reasoned to make sure that they can be understood? Has any action been
taken?
Thomas
Leney: Yes, sir. As I mentioned in my oral statement every request for
reconsideration receives a legal review from our Office of General
Counsel on the basis of are we prepared to defend it in court?
Chair Bill Johnson: Have you made any changes to your process to make sure that they are --
Thomas Leney: That is the change to the process. Every one of our requests for reconsideration receives a legal review.
Chair Bill Johnson: Okay. And that wasn't being done prior to --
Thomas Leney: That was not being done prior.
Chair
Bill Johnson: Does -- does VA possess the necessary expertice in
making determinations of ownership under their current process?
Thomas Leney: Yes, sir.
Chair
Bill Johnson: Okay. Does -- VA does not allow for affiliatons whereas
because you testified a few minutes ago that because your processes are
consistent, your regulations are consistent with SBA regulations if I
heard you correct.
Thomas Leney: Yes, sir.
Chair
BIll Johnson: The VA does not allow for affiliatons whereas
government-wide rules do allow for affiliatons. Why is there a
difference between SBA and VA's interpretation?
Thomas
Leney: Sir, in response to engagement with this Committee, we
undertook a review of our regulation with respect to 13 CFR 125 and 13
CFR 124 which are the SBA regulations. We found that not only are our
regulations similar, our interpretations are similar as well. In fact,
based on our review to date the SBA regulations routinely reaches
similar if not identical decisions as the VA. We have -- We have
undertaken a review of the regulation. We're doing that in
collaboration with the SBA and, in fact, one of the elements, if you
compare the two regulations, our regulation is much more detailed than
13 CFR 125.
Chair
Bill Johnson: What about 13 CFR 121, Mr. Leney, that's also a part of
this disccusion that describes the intent of the Congress? How do you
-- how do you involve 13 CFR 121 in your process?
Thomas Leney: Sir, the 13 CFR 121 is one of the regulations we are now looking at as part of our review of our regulations.
Chair
Bill Johnson: But it's been for a long time and we've suggested that
you include it for a long time. And you're just now looking at it?
Thomas
Leney: Sir, our focus -- my focus has been to implement the
regulations that the VA utilizes for the verification program.
Chair Bill Johnson: But shouldn't the regulation be based on the law, Mr. Leney?
Thomas Leney: The regulation, we believe, is based on the law, sir.
Chair Bill Johnson: But not if you exclude, uhm, 121.
Thomas
Leney: Sir, like I say, the Secretary [of the VA Eric Shinseki] has
directed us to review the regulation. We are doing so in conjunction
with the SBA and stakeholders. I cannot -- I cannot speak to why it was
not being done previously. But it is being done now.
Chair Bill Johnson: How long have you been here, Mr. Leney?
Thomas Leney: Sir, I've been here a year.
Chair Bill Johnson: And this is not the first time that you've testified before this Subcommittee.
Thomas Leney: This is not the first time.
Chair Bill Johnson: We've talked about 121 before.
Thomas Leney: Yes, sir.
Chair Bill Johnson: Okay. So why are you waiting for the Secretary to tell you to do something that the law clearly requires?
Thomas
Leney: Sir, as I stated, my focus has been to implement the regulation
that is in place with the VA. That regulation has been long standing
and it has been tested. We are now reviewing that regulation based on
an extensive series of stakeholder engagements. And I'll be happy to
come back and report --
Chair
Bill Johnson: You'll get a chance to come back, Mr. Leney, because
it's a violation of the law. 121 is part of the process and that's what
this Subcommittee demands, it's what the American people demand.
That's why we're losing patience with the process -- because we keep
making these suggestions and we keep spinning our wheels and chasing
this same rabbit around the corner over and over again. So I'm sure
I'll have more questions but I'm going to go now to Mr. Stutzman for his
questions.
Chair
Marlin Stutzman: Thank you, Mr. Chairman. I believe the VA has a
fairly robust statistical analysis section. Is that correct?
Thomas Leney: Sir, I can't speak to that. I don't know.
Chair Marlin Stutzman: You don't know that --
Thomas Leney: I don't know the extent of the statistical analysis.
Chair Marlin Stutzman: You do have -- You do have one?
Thomas Leney: I can't speak to that. I do not know.
Now
let's move over to issues of ownership and control and, again, we're
just on the first panel and the one witness, Thomas Leney.
US
House Reps Jerry McNerney and Phil Roe asked about veterans who are
turned down despite owning 51% of their company. They can't get a
veterans small business contract if they own 51% because that's not
"control." Roe explained that if you owned 51% of GM stock, you control
General Motors. However, that's not the VA definition. The VA
definition is that the owner must have 100% control. There can be
partners, but they can't have control or even voting rights because, as
the VA is interpreting it, even voting rights waters down control. No,
that doesn't make any sense at all.
Chair
Bill Johnson: You said you're going towards lines of clear
delineation. Give us the definition of control. You ought to be able
to do that. You're the Director of this department. Tell this
Subcommittee right now, tell the people that are listening today what is
the defintion of control if 51% ownership doesn't qualify. What is it?
Thomas
Leney: The definition of 100% control is that you can do anything you
want with that business, make any decision concerning that business to
include selling that business for a dollar and no one else in that
business to include other owners -- other minority owners -- can do
anything to prevent you from doing so.
Chair
Bill Johnson: Mr. Leney, do you know of any business in the world that
has more than one owner where that defintion would qualify? Can you
name me one business? One?
Thomas Leney: I can name you thousands of businesses
Chair Bill Johnson: Where that definition qualifies?
Thomas Leney: Yes, sir.
Chair Bill Johnson: Under a court of law?
Thomas Leney: Yes, sir.
Chair Bill Johnson: I'd like to see them. Would you write them down and submit them to this Committee?
Thomas Leney: Yes, sir.
Chair Bill Johnson: I'd like you to do that. I'd like to see that.
Those
were among the big moments in the hearing today. Time and space
permitting, we'll note some other moments from the hearing tomorrow.
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