• Credit Cardholders Protected From Arbitrary Rate Hikes And Fees
• Small Business Committee Passes Research Funding Bill
• Lawmakers, Professionals Gather To Work Out Kinks Of Health IT

Credit Cardholders Protected From Arbitrary Rate Hikes And Fees

House lawmakers dealt a blow to the credit card industry by approving legislation to bar highly contested billing practices, including unexpected rate hikes. Cardholders have complained about rate increases on existing balances and excessive fees. “About half of micro-business owners turn to credit cards regularly for business expenses, evening relying on them as a means of start-up financing,” said Kristie Darien, executive director of the NASE legislative offices. “Micro-businesses already struggle to find financing to start and maintain their ventures, so the NASE is particularly supportive of legislation that would protect them from undue harm.” A key obstacle facing small and micro-businesses is the lack of access to financing, which is essential for their start up and continued growth. As a result, many entrepreneurs turn to credit cards. While the bill requires additional consideration and passage by the House of Representatives and the Senate before coming law, the Federal Reserve gave a nod to the legislation when issuing their own guidelines proposal in May. Read the Credit Cardholder Bill of Rights here.

Small Business Committee Passes Research Funding Bill The Senate recently approved the SBIR/STTR Reauthorization Act of 2008, which provides funding for the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. The bill will allow majority-owned venture capital firms to kick in funds in order to help support the program, a new development from reauthorizations past. Currently, eleven federal agencies have Small Business Innovation Research (SBIR) programs. According to the Senate Committee on Small Business and Entrepreneurship, the bill will: Reauthorize the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs for 14 years. Include a compromise on the issue of the participation of companies majority owned and controlled by multiple venture capital companies in the SBIR program. Increase the SBIR allocation and double the STTR allocation. Increase the award size guidelines for the SBIR and STTR programs. Attempt to increase geographic participation, particularly in rural states. Call for better and streamlined data collection and assessment. Include protections to address jumbo awards. The bill will now move to the full Senate for consideration and debate. Visit the Senate Committee on Small Business and Entrepreneurship for more information.

Lawmakers, Professionals Gather To Work Out Kinks Of Health IT The use of electronic health records (EHRs) has increased across the nation, but cost and privacy concerns have caused participation to be lagging amongst small medical practices. The House Committee on Small Business met with doctors and other health professionals to shed light upon the bumps in the road that have slowed small firm adoption. According to the committee, four out of five non-emergency visits occur in practices with ten or fewer doctors; however, only 13% of these offices have basic electronic health record systems. Larger health offices are three times as likely to use the systems, since they have more resources and can shoulder installation and maintenance costs. Privacy stipulations within the Health Insurance Portability and Accountability Act (HIPPA), enacted in 1996, are also causing small practitioners to drag their feet. Dr. Robert M. Plovnick of the American Psychiatric Association says many practitioners simply cannot take the chance to change a system that works, regardless of how cumbersome it may be. “Breaches in the privacy of sensitive medical data, including that relating to mental health and substance use disorder treatment, can have significant personal and professional consequences for individuals,” Plovnick said. “Even the possibility of privacy violations erodes an individual's expectation of confidentiality in medical encounters and undermines the sharing of medically essential information with one's physician.” For more information, visit www.house.gov.

Lawmakers and media outlets across the country rely on and regularly cite the NASE as a source of small and micro-business expertise. Help the NASE make sure the micro-business perspective is heard by taking this month’s poll. Click here to log-in and participate. Washington Watch Online Visit the NASE Advocacy Web page to view archived editions of Washington Watch. While you’re there, read the latest updates from the Washington, D.C. office, write your Congressperson, and find out how you can join the fight for micro-business. Web site: http://advocacy.NASE.org.