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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

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