FOR IMMEDIATE RELEASE
For Information Contact:
Kevin Dillard, 314-993-1700, ext. 525
kdillard@aaortho.org
ST. LOUIS, May 9, 2010 — The American Association of Orthodontists (AAO) has endorsed a small business safe harbor amendment to the financial regulatory bill (S. 3217) currently being debated in the U.S. Senate. The amendment makes it clear that the proposed new Bureau of Consumer Financial Protection does not include jurisdiction over the daily business activities of healthcare professionals like orthodontists and dentists.
The amendment was introduced by Senator Olympia Snowe (R-ME), the Ranking Member of the Senate Small Business Committee, and Senator Mary Landrieu (D-LA), Chairman of the Small Business Committee. Senator Chris Dodd (D-CT), who chairs the Senate Banking, Housing & Urban Affairs Committee which is drafting the bill, also helped lead development of the amendment.
Senator Snowe and Senator Landrieu introduced their amendment to clarify Congressional intent that the new Bureau of Consumer Financial Protection would not have jurisdiction over small businesses that don’t regularly sell financial services products. The AAO, the American Dental Association, and other healthcare professionals had expressed concern that ambiguous language in the original bill could inadvertently result in subjecting a doctor or dentist’s regular business activity to the jurisdiction of the new bureau. The AAO worked with Senator Snowe, Senator Landrieu and Senator Dodd to develop a more definitive exemption for the small business community.
After listening to the advocacy of the AAO, Senator Snowe and Senator Landrieu introduced an amendment that exempts entities that meet a three-part test: (1) They do not offer financial services products to customers or patients; (2) they do not securitize loans; and (3) they meet the Small Business Administration’s current definition of a "small business."
“Main Street small businesses like orthodontists and other healthcare professionals are at the heart of the American economy and had nothing to do with the financial crisis that is being addressed in this reform legislation,” said AAO President Dr. Lee W. Graber. “We appreciate the hard work and leadership demonstrated by Senator Dodd, Senator Snowe and Senator Landrieu as they worked with us to develop clear language that focuses the Bureau of Consumer Financial Protection jurisdiction on financial services products instead of on the small business community. Small businesses will lead our economy out of recession and put millions back to work so long as we remain free of unnecessary regulatory oversight. The AAO endorses the exemption language in the amendment as a common-sense fix that addresses our concerns.”