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What Small Business Owners Are Saying About Obama's Regulatory Record

House Small Business Committee News - Wed, 05/08/2013 - 12:00am

 

Small companies don’t have the resources that large corporations have to focus on regulatory compliance, and as a result, small businesses bear a regulatory cost that is 36% higher than large businesses. 

Ahead of today's committee hearing on this very topicsmall business owners shared how current regulations, under the Obama Administration, affect their plans for the future through the Committee’s interactive website, “Small Biz Open Mic.” 

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As a small defense contractor, my company faces the same issues documented in this forum. I would also highlight the following: a. The Affordable Health Care Act - I am still under the size that REQUIRES coverage, I OFFER a full HC package in order to attract and retain my employees. As my corporate premiums rise, I have been absorbing the costs out of corporate profits. While I could discontinue the coverage and let my employees 'fend for themselves' on the state exchanges, I won't. They have been loyal and I'll do whatever it takes to return the trust. b. Banking Regulation - I have positive cash flow, 3 years of growth and no longer qualify for a line of credit because of the new stricter requirements. This means I can't increase my workforce until I have enough cash in the bank to cover the increased payroll for at least 90 days. I have refrained from yelling at my local banker, since his hands are tied. So we're back to: If you need a loan, you automatically don't qualify because you need a loan. What have I done, as far as cost control? - My salary stopped 3 years ago.

Judith McCarty (Huntsville, AL) Interoptek, Inc 5/6/2013
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We experienced a 7% payroll tax increase which affected our small bottom line drastically. I am on the edge of dropping health care because of a 22% increase coming as a DIRECT result of Obamacare. My premiums actually dropped the last 2 years. Recently I had to go through a vetting process by the Veterans Administration in order to provide services. The process looked into my personal finances and deeply into my business financials. I don't show my tax returns and personal finances to the private sector and the VA nor any other agency should be looking at these things. The biggest issue at hand is that I can't get loans to expand our business. the SBA process and scrutiny does not encourage loans.

Lynn Williams (Houston, TX) Advanced Imaging Management 5/8/2013
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SAS is an independent company that administers consumer accounts in response to referrals by attorney firms and other regulated entities who provide a variety of services. Federal Trade Commission Telecommunication Sales Rule (TSR) Section 310.4(a)(5)(ii) mandates this level of consumer protection and describes how the process must be structured. We have been diligent in following the guidelines when setting up these consumer accounts with our chosen financial institution. Recently, our financial institution notified us that it would no longer maintain our accounts effective June 17, 2013 citing unacceptable risk detailed by the Office of the Comptroller of the Currency rule, OCC 2001-47. This action points up the contradictory nature of competing Federal agencies designing laws with no regard to the adverse effects on consumers who number in the thousands, if not millions. If a replacement institution cannot be found in the time allotted, our company will be forced by this regulatory conflict to cease operations leading to certain consumer harm. It would seem that the zeal with which Federal regulatory agencies write law must be tempered to avoid these sorts of consequences.

Steve Stratford (Lake Havasu City, AZ) Secure Account Service, LLC 5/6/2013
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I currently cover 100% of the medical costs for my employees to include premium payments and maximum contributions to HSA accounts. I have recently received an updated quote from my insurance provider. Citing the Affordable Care Act, my insurance provider is quoting a 100+% increase in the cost of my premiums next year. While we are shopping around, this may result in my no longer being able to cover the entire cost of my employee's medical benefits, impacting my employees and eventually my business as my ability to recruit and retain is degraded.

Jason Keen (Huntsville, AL) IERUS Technologies 5/6/2013
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Recently we have been contacted by the Commerce Dept to complete this survey Space Deep Dive which admittedly will take 14 hours to complete and asks for confidential financial information. Attached is the response I got from one person at the Commerce Department when I complained about being selected. "Thank you for your email. I apologize for the delay in our response. Your company was identified to be an indirect supplier to the space industry through the supply chain. This study is designed to analyze the entire supply chain of the space industry as well as learn about your company's capabilities, directly space-related or otherwise. Our fundamental goal in this assessment is to highlight your company's capabilities to current and potential customers in the U.S. Government. Your contribution is important to the general understanding of the space industrial base, and will help promote better strategic planning on the part of the U.S. Government." I spent at least 14 hours completing this and I am still getting emails asking further questions. I don't have time to complete surveys for the government and run my business. Why don't they understand this.

Debara Valeri (North Wales, PA) Laurell Tech 5/6/2013
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For us this question comes too late for our small business. After 23 years in business, we closed our business this year. Between the economy, and the additional costs to support our employees we were forced out of business. If we had received payroll tax relief when Obama took office, we would still be in business, as we were an S corp. And the other reason was capital lending to small businesses because of the bank bailout, was non-existent. Small businesses take the largest hits in the American economy, and work the most hours and worry the most every night where to get the capital to continue. Small businesses worry about employees, payroll, taxes and cash flow. America is built on a capitalistic free market economy yet we do not support the foundations (small businesses) of our economy.

Debbie Engel (Portland, OR) JRE 5/6/2013
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    We have lead laws, OSHA, DOT, Wetlands, critical dunes, and on and on. We have too many regulations to be enforced. We can not afford to enforce them. Examine why, then at what cost. 

Zeak DeWyse (Engadine, MI) Dewyse Construction 5/6/2013
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Our company helps US manufacturers compete in a globalized environment by conducting "Last Mile Manufacturing" here in the US. We help US companies protect their Intellectual Property (IP), reduce risks exposure to foreign manufacturers, become more flexible and reduce the impact of transportation costs. "Last Mile Manufacturing" is a truly revolutionary idea whose time has come and is especially valuable in protecting American IP. However, it is difficult to compete against international manufacturers when payroll taxes, medical insurance costs, and workman's comp costs are as high as they are. To really bring back manufacturing jobs, I think some kind of reduced cost scheme in the above areas along with an effort to evangelize the benefits of manufacturing domestically would be helpful.

Sandeep Duggal (Milpitas, CA) Extron, Inc. 5/6/2013
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We have been audited by the IRS three times in four years. It is very hard to run my business by their harassment. We have created nineteen good paying jobs and have always paid our taxes on time. We asked why the do this and they said the computer kicks out our tax return but the do not know why, they said it just the luck of the draw. We have to hire a CPA at $75.00 per hour to answer their questions, this had made a hardship onour small business because we would like to hire more people but can not.

Glenn Spencer (Jeffersonville, IN) Spencer Machine & Tool Co. Inc. 5/6/2013
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My husband and I are the owners and sole employees of a small, high tech business. He's a ballistic genius, with US patents on ammo technologies. We design, manufacture, and sell very high performance ammo for SWAT teams, bomb squads, and serious hunters and shooters throughout the USA. The innovations we've created could solve numerous security and environmental problems... if we were allowed to actually work at our own business. Instead, in our two person business, we spend over half of our time dealing with required government paperwork: licenses, permits, special reports and taxes. We are required to maintain over a dozen separate licenses or permits from the federal, state, and local governments to run our business -- over a dozen, for a two person business. We had foreign governments seriously inquire about purchasing our ammunition for use by their air marshals, but exporting even one round of small arms ammunition is so highly regulated that the permit fees and time make it impossible to export unless you are a very large business. Nonetheless, simply because foreign governments asked, the US Dept of State, Directorate of Defense Trade Control, wants us to spend two weeks of time and pay over $5,000/year to register with them. We refuse to comply because we can't afford to export with the fees and time required, and I don't think we should have to register unless we export. We ship our ammo to qualified buyers throughout the USA, with a better vetting process (approved by the ATF) than is required for in-person sales. Despite being licensed by the federal government to make ammo for sale to others, to ship that same ammo by air, rather than ground, would require special classes and a $300 fee in how to fill out HazMat paperwork. Again, business logic dictates the prudent solution of shipping by ground to avoid insane HazMat fees and paperwork.To say that excessive government regulations are unfairly applied to small, innovative, cutting edge businesses, and are effectively killing entepreneurship and innovation in this country would be a gross understatement. Expecting us to deal with dozens of licenses, rules, regulations, and bureaucracies, and their conflicting policies makes it impossible to be profitable and successful as a very innovative, but very small, start-up business. We truly are the poster child for how government is inadvertently killing small businesses. 

Becky Davis (Goleta, CA) Custom Cartridge, Inc. 5/7/2013
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Recognizing the importance of entrepreneurs’ feedback in the process of shaping the very policies that will help determine their business sustainability and growth, Chairman Graves launched Small Biz Open Mic in September of 2011.

VIDEO RELEASE: Kline Urges Support for Working Families Flexibility Act

Education & the Workforce Committee - Wed, 05/08/2013 - 12:00am

Right now the House is considering H.R. 1406, the Working Families Flexibility Act of 2013. This commonsense legislation modernizes an outdated federal law that prevents private-sector employers from offering employees the option to accrue paid time off or ‘comp time’ for working overtime hours.  

Moments ago House Education and the Workforce Committee Chairman John Kline (R-MN) highlighted the ways H.R. 1406 empowers private-sector employees with greater workplace flexibility.   

At the heart of the legislation is worker choice. Workers choose whether to accept comp time; workers choose when to cash out their accrued comp time; and workers choose when to use their paid time off so long as they follow the same standard public-sector employees do. Americans sacrifice a lot to provide for their families. Let’s get the federal government out of the way and give workers the flexibility they need to thrive at home and at work.

To learn more about the Working Families Flexibility Act of 2013, visit edworkforce.house.gov/YourTime.

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VIDEO RELEASE: Roundtable Discussion with Working Parents Highlights Need for More Workplace Flexibility

Education & the Workforce Committee - Tue, 05/07/2013 - 6:30pm

House Republicans today met with working parents to discuss the need for more flexibility in the workplace. At the CENTECH GROUP Inc. office in Falls Church, Virginia, members listened as small business owners and private-sector employees described how the Working Families Flexibility Act of 2013 (H.R. 1406) would help more Americans juggle the demands of family and work. Sponsored by Rep. Martha Roby (R-AL), the legislation would allow private-sector employers to offer employees the opportunity to accrue paid time off, or ‘comp time,’ for working overtime hours. 

House Education and the Workforce Committee Chairman John Kline (R-MN), Majority Leader Eric Cantor (R-VA), Conference Chair Cathy McMorris Rodgers (R-WA), Representative Martha Roby (R-AL), and Representative Renee Ellmers (R-NC) joined working parents to highlight the commonsense proposal that will help families nationwide.

Following the roundtable, members discussed the legislation in a short media availability. Watch the members’ remarks below:

 

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On putting parents before politics
The bill is very simple.  If you are a working parent – as I am – you know one thing all of us have in common and that all of us need is more time. That’s what this bill will allow. It is a commonsense bill that puts parents before politics. – Rep. Eric Cantor (R-VA)

On helping workers attend to the needs of their families
There are single dads and [families] where both parents are working and they want to spend time with their kids, going to parent-teacher conferences, baseball games... Time is so important and this bill addresses that need. – Rep. John Kline (R-MN)

On modernizing an outdated law
The times have changed and the number of women in the workforce has changed, yet so many of our federal laws and regulations have not kept pace. They were written at a different time… We need to update these laws. – Rep. Cathy McMorris Rodgers (R-WA)

On getting government out of the way of working families
This is your time. You get to choose how to use it. Our message to all working Americans is very clear: We want to get Washington out of the business of telling Americans how to use their time. – Rep. Martha Roby (R-AL)

On empowering workers with more options
We shouldn’t have to be faced with the decision of taking our child to the pediatrician or spending that special time with them in lieu of a conference call or a business decision that we have to make – we should be able to make those decisions. – Rep. Renee Ellmers (R-NC)
 

NOTE
: The House is expected to vote on the Working Families Flexibility Act of 2013 tomorrow. Watch the debate here.

To learn more about H.R. 1406, visit edworkforce.house.gov/YourTime.

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ObamaCare Burden Keeps Growing and Growing

Education & the Workforce Committee - Tue, 05/07/2013 - 2:30pm

The Ways and Means, Education and the Workforce, and Energy and Commerce Committees today released an updated version of the ObamaCare Burden Tracker (#ObamaCareBurden), which reveals the burden on employers and families has increased to almost 190 million hours. The Burden Tracker, first released in February, is a real-time, online resource to help the public keep track of all of the new government mandates, rules, and red tape resulting from ObamaCare.

The burden of ObamaCare is already being felt, even though many provisions of the law, including the requirement for most Americans to buy government-approved health insurance or pay a tax, are not set to take effect until 2014. According to the Obama administration’s own estimates, ObamaCare will require American job creators, families, and health care providers to spend almost 190 million hours per year on compliance.* This burden has increased over 60 million hours since February of this year.

Every hour and dollar spent complying with the Democrats’ health care law are time and resources being taken from spending time with family, growing a business and creating jobs, or caring for patients. Since many small businesses do not employ in-house lawyers and accountants, compliance costs are especially expensive and burdensome. Given the new demands of complying with the law, it is not surprising that over 70 percent of small businesses cite the health care law as a major obstacle to job creation.

What could be done in 189,822,836 hours? 

  • Mount Rushmore, which took 14 years to build, could be constructed 1,547 times.
  • Halley’s comet, seen from Earth once every 76 years, could be spotted 285 times.
  • The Empire State building, which took 7 million man hours to build, could be constructed 27 times.

*Based on administration estimates released by the Office of Management and Budget.

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Independent Regulatory Agencies’ Compliance with the Regulatory Flexibility Act

Office of Advocacy - Tue, 05/07/2013 - 1:03pm
Page summary: 

 

The Office of Advocacy is often asked if there is a noticeable difference in the RFA compliance patterns of independent agencies compared with executive-branch agencies. Independent federal agencies are subject to the Regulatory Flexibility Act, as amended (RFA) (see table for a list of independent agencies with abbreviations). Because they fall outside of presidential authority, however, independent agencies are not subject to executive orders concerning regulatory impact analysis or to OMB review of analysis.
The objective of this study is to characterize and assess the RFA compliance of independent agencies.

Full Report

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Categories: Latest News, SBA Advocate

Bipartisan Group of Senators Introduces Legislation to Combat Cyber Theft

The United States would take aggressive new steps against computer espionage and theft of valuable commercial data under bipartisan legislation introduced today by Chairman John D. (Jay) Rockefeller IV and Sens. Carl Levin, D-Mich.; John McCain, R-Ariz.; and Tom Coburn, R-Okla.

Rockefeller Requests New Information from Cruise Industry on Passenger Safety and Security

Chairman John D. (Jay) Rockefeller IV today sent letters to the three largest cruise line companies requesting information about their passenger safety, security, and health practices. Rockefeller’s letters, sent to Carnival, Royal Caribbean, and Norwegian Cruise Line, follow a series of oversight letters he sent in February 2012.

Credit Reports: What Accuracy and Errors Mean for Consumers

WASHINGTON, D.C.—The U.S. Senate Subcommittee on Consumer Protection, Product Safety, and Insurance will hold a hearing on Tuesday, May 7, 2013 at 2:30 p.m. titled "Credit Reports: What Accuracy and Errors Mean for Consumers."

Kline, Roe Statement on Court Striking Down NLRB Poster Regulation

Education & the Workforce Committee - Tue, 05/07/2013 - 12:00am

House Committee on Education and the Workforce Chairman John Kline (R-MN) and Subcommittee on Health, Employment, Labor, and Pensions Chairman Phil Roe (R-TN) released the following joint statement after the U.S. Court of Appeals for the District of Columbia invalidated a National Labor Relations Board (NLRB) rule that would have punished employers for failing to post a biased notice of workers’ labor rights in the workplace:

Today’s federal appeals court decision is a win for workers and job creators nationwide. The NLRB’s vague and biased poster regulation was nothing more than a marketing campaign for Big Labor at the expense of workers and employers. It’s time the board stopped rewriting the law to advance a political agenda and started applying the law as prescribed by Congress.

NOTE: In December 2012, House Republicans filed an amicus brief with the U.S. Court of Appeals for the District of Columbia to urge the court the strike down the poster regulation. The congressional brief raised two critical legal issues:

  1. Congress did not – and has not – granted the board the authority to require a general notice posting by employers. Unlike the National Labor Relations Act, other labor and employment laws explicitly authorize notice postings. Absent that explicit authority, and a clear intent by the authors of the National Labor Relations Act to withhold that authority, the board’s regulation exceeds its lawful powers; and
       
  2. Congress has restricted the board’s authority to actual parties, in pending cases, and adjudicated facts based on an evidentiary hearing. The limited scope of the board’s authority is central to the law’s constitutional standing, and it cannot be expanded at the whim of the board majority.

A similar brief was filed in two federal district courts in 2011.

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Kline: States, School Districts Deserve Flexible, Dynamic Education Policies

Education & the Workforce Committee - Tue, 05/07/2013 - 12:00am

The House Committee on Education and the Workforce, chaired by Rep. John Kline (R-MN), today held a hearing to examine the appropriate federal role in accountability and explore innovative state and local efforts to hold schools accountable for student performance.

In his opening remarks, Chairman Kline reiterated the importance of reauthorizing the nation’s K-12 education law, known as the Elementary and Secondary Education Act (ESEA) or No Child Left Behind, and outlined four Republican priorities for rewriting the law: restore local control, reduce the federal footprint, improve teacher effectiveness, and empower parents.

“We have an opportunity to work together in good faith to bring true reform to America’s K-12 schools. To change the law to more effectively support the teachers, school leaders, superintendents, and parents who are working tirelessly each and every day to ensure our children have the skills they need to succeed,” Chairman Kline said. “We laid a considerable amount of groundwork last Congress, holding 14 hearings with dozens of witnesses to explore the challenges and opportunities facing our schools. I hope we can build upon that progress as we move forward with legislation that will change the law by offering states and school districts the flexible, dynamic education policies they deserve.”

During the hearing, members listened as education leaders described local reforms that have helped raise the bar on student performance and offered recommendations for federal education reforms.

Louisiana State Superintendent of Education John White urged a simpler federal framework for K-12 schools: “Congress must promulgate a framework of accountability, choice, and high quality teaching while keeping its parameters simple for leaders of states, districts, and schools, whose greatest challenge day to day is achieving coherent planning around the needs of students.”

Mr. White added, “A strong ESEA reauthorization will be uncompromising in its commitment to accountability but humble in its view of the federal role and its potential to create confusion more than coherence.”

Dr. Chris Richardson, superintendent of Northfield Public Schools in Northfield, Minnesota, stated, “Congress needs to reauthorize the Elementary and Secondary Education Act as soon as possible, providing all schools and students with relief from the broken, outdated components of current law.” Dr. Richardson stressed the need to “reestablish and recalibrate” the federal and state roles in education. “Federal investment in public education represents, on average, just ten percent of total district expenditures,” he said. “As such, any reauthorization should ensure that federal policy establishes, at most, a proportional role, to avoid the proverbial ‘tail wagging the dog.’”

Mr. Matthew Given, Chief Development Officer of the education solutions firm EdisonLearning, stated, “Reauthorization of the Elementary and Secondary Education Act presents a tremendous opportunity to further innovation that leads to measurable, sustainable improvement for all students. We all agree that schools must be held accountable for teaching all students and cannot walk away from failure.”

To read witness testimony, opening statements, or watch an archived webcast of today’s hearing, visit www.edworkforce.house.gov/hearings.

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Kline Statement: Hearing on “Raising the Bar: Exploring State and Local Efforts to Improve Accountability”

Education & the Workforce Committee - Tue, 05/07/2013 - 12:00am

Last month marked the 30th anniversary of the landmark “Nation at Risk” report. By starkly illuminating the failures in K-12 schools, this Reagan-era report sparked a national conversation on the state of education in America.

Without a doubt, “Nation at Risk” could be considered the catalyst for the modern education reform movement. In the years following the report’s release, states and school districts advanced a number of initiatives aimed at raising the bar for students. The federal government doubled education spending and, through the groundbreaking No Child Left Behind law, took steps to narrow student achievement gaps, strengthen curricula, and demand greater accountability.

But as I’ve said before, hindsight is 20/20. Despite the best of intentions, we can now see clearly that our federal efforts haven’t worked as we’d hoped. The ‘Adequate Yearly Progress’ metric is entirely too rigid and actually limits states’ and school districts’ ability to effectively gauge student learning. The antiquated ‘Highly Qualified Teacher’ requirements value tenure and credentials above a teacher’s ability to actually teach. Strict mandates and red tape result in unprecedented federal intrusion in classrooms, stunting innovation. And despite a monumental investment of taxpayer resources, student achievement levels are still falling short.

It’s time to change the law.

Last Congress, we advanced a series of legislative proposals to rewrite No Child Left Behind. Instead of working with Congress to fix the law, however, the Obama administration chose to offer states temporary waivers from some of No Child Left Behind’s most onerous requirements in exchange for new mandates dictated by the Department of Education.

As more states adopt the administration’s waivers, my concerns grow. These waivers are a short-term fix to a long-term problem, and leave states and school districts tied to a failing law. School leaders face uncertainty, knowing the federal requirements they must meet to maintain their waiver are subject to change with the whims of the administration.

In the coming months, we will again move forward with a proposal to rewrite No Child Left Behind. This legislation will be based on four principals that my Republican colleagues and I believe are critical to rebuilding and strengthening our nation’s education system.

First, we must restore local control, and encourage the kind of flexibility states and school districts need to develop their own accountability plans that provide parents more accurate and meaningful information about school performance.

Second, it’s time to reduce the federal footprint. The Department of Education operates more than 80 programs tied to K-12 classrooms, many of which are duplicative or ineffective, each with its own set of strict rules. Innovation and effective reform cannot be mandated from Washington. We must put control back in the hands of the state and local leaders who know their students best.

Third, we need to shift our focus to teacher effectiveness. We should value our educators based on their ability to motivate students in the classroom, not their degrees and diplomas. States or school districts must be granted the opportunity to develop their own teacher evaluation systems based in part on student achievement, enabling educators to be judged fairly on their effectiveness in the classroom.

Finally, we’ve got to empower parents. Any effort to provide students with a top-quality education must include the involvement and support of parents. Whether through charter schools, scholarships, tax credits, open enrollment policies, or other options, parents should be free to select the school that best fits their children’s needs.

As the “Nation at Risk” report concluded, “Reform of our educational system will take time and unwavering commitment. It will require equally widespread, energetic, and dedicated action.”

We have an opportunity to work together in good faith to bring true reform to America’s K-12 schools. To change the law to more effectively support the teachers, school leaders, superintendents, and parents who are working tirelessly each and every day to ensure our children have the skills they need to succeed.

We laid a considerable amount of groundwork last Congress, holding 14 hearings with dozens of witnesses to explore the challenges and opportunities facing our schools. I hope we can build upon that progress as we move forward with legislation that will change the law by offering states and school districts the flexible, dynamic education policies they deserve. Today’s hearing is an important part of that effort, and I look forward to our witnesses’ testimony.

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Patent Trends among Small and Large Innovative Firms during the 2007-2009 Recession

Office of Advocacy - Mon, 05/06/2013 - 2:42pm
Page summary: 

According to the National Bureau of Economic Research (NBER), the Great Recession commenced in December 2007 and ended in June 2009. This research examines whether observable differences in patent behavior between small and large firms occur during this 2007-2009 period.

 

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Categories: Latest News, SBA Advocate

Anti-Hydraulic Fracturing Activists Focus Firepower on California

WLF Legal Pulse - Mon, 05/06/2013 - 9:00am
Cross-posted at WLF’s Forbes.com contributor page With a budget profoundly in the red and an unemployment rate hovering around 10%, one would think that elected officials and citizens’ groups in California would be figuring out how to move forward development of the massive shale “play” shown here to the right — The Monterey Shale. But [...]
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