NYDIA M. VELAZQUEZ, New York SAM GRAVES, Missours
Congress of the Wnited States
.S. Vouse of Representatives
Committee on Small Business
23561 Ranbum Mouse Office Building
Washington, DE 20515-0515.
April 26, 2010
‘The Honorable Chris Dodd
Chairman
U.S. Senate Committee on Banking, Housing & Urban Affairs
448 Russell Senate Office Building
Washington, DC 20510
Dear Chairman Dodd:
As the Senate moves forward with financial reform, I write regarding a critical issue that
could affect thousands of small healthcare practices across the nation. In particular, I am
concerned about Section 1027 of the “Restoring American Financial Stability Act of
2010” (S. 3217). Though Section 1027 does provide for businesses and entities subject to
regulation, I am concerned that the current language could be interpreted as applying to
small healthcare practitioners (such as dentists and physicians). If such an interpretation
is made, this could lead to unnecessary costs and increased administrative burdens for
practitioners, Moreover, it is unclear, whether there would be any added benefit for
consumers.
Given the scope and reach of the Restoring American Financial Stability Act, the
assertion that solo and small group practitioners would be covered by the legislation is,
more than likely. A recent determination by the Federal Trade Commission (FTC) which
found that dental and law practices were creditors highlights how agencies can have such
broad interpretations.’
While the Senate Committee Report references exclusions for “merchants, retailers, or
sellers of nonfinancial goods or services that are not engaged significantly in offering or
providing consumer financial products or services”, such language does not carry the
force of law. The statute leaves open the possibility for varying interpretations and
potentially creating unintended outcomes such as the recent FTC decision.
" Identity Theft Red Flags and Address Discrepancies Under the Fair and Accurate Credit Transactions Act
of 2003, 72 Fed, Reg, 63718 (Nov. 9, 2007).In closing, as Chair of the Small Business Committee, I urge legislative changes to be
included making sure small healtheare practices are protected. I recognize that while the
report languages makes clear this is the intent, legislative text will guarantee clarity in
this matter. T appreciate your consideration and applaud your efforts to reform our
financial system to protect consumers and small businesses.
If you have any further questions regarding this matter, please do not hesitate to contact
me,
Sincerely,
The I os
le Nydlia M. Velézquez
Chairwoman
House Committee on Small Business
Ce: The Honorable Barney Frank
Chairman
U.S. House Financial Services Committee
The Honorable Spencer Bachus
Ranking Member
U.S. House Financial Services Committee
‘The Honorable Richard Shelby
Ranking Member
U.S. Senate Committee on Banking, Housing & Urban Affairs