UNFAIR COMPETITION WITH SMALL BUSINESS

FROM GOVERNMENT AND NOT-FOR-PROFITS:
ASSESSING THE CURRENT STATE
STATE OF THE
PROBLEM AND THE RECOMMENDATIONS OF
THE 1995 WHITE HOUSE CONFERENCE ON
SMALL BUSINESS

HEARING

BEFORE THE

COMMITTEE ON SMALL BUSINESS

HOUSE OF REPRESENTATIVES

ONE HUNDRED FOURTH CONGRESS

SECOND SESSION

WASHINGTON, DC, JULY 16 and 18, 1996

Printed for the use of the Committee on Small Business

Serial No. 104-86

26-158 CC

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON: 1996

For sale by the U.S. Government Printing Office

Superintendent of Documents, Congressional Sales Office, Washington, DC 20402

COMMITTEE ON SMALL BUSINESS

JAN MEYERS, Kansas, Chair

JENIFER LOON, Staff Director JEANNE M. ROSLANOWICK, Minority Staff Director

Hearing held on July 16, 1996
Hearing held on July 18, 1996

CONTENTS

WITNESSES

TUESDAY, JULY 16, 1996

Boissevain, Elaine, Highland Orchards Resort Park, North Stonington, Con-
necticut, representing National Association of RV Parks and Campgrounds.
Gorin, David, Chairman, Business Coalition for Fair Competition (BCFC)
and President, National Association of RV Parks and Campgrounds, Vi-
enna, Virginia

Granese, Nancy, Director of Government Relations, National Child Care Asso-
ciation, Arlington, Virginia

Greene, Molly F., President, General Engineering Laboratories, Charleston,

South Carolina, representing ACIL, The Association of Independent Sci-

entific, Engineering, and Testing Firms and the International Association

of Environmental Testing Laboratories (IAETL)

Hoffmann, Rick, Surdex Corporation, Chesterfield, Missouri, representing

Management Association for Private Photogrammetric Surveyors (MAPPS)

Jensen, Frank L. Jr., President, Helicopter Association International, Alexan-

dria, Virginia.

WITNESSES

THURSDAY, JULY 18, 1996

Garber, Charles A., President, Structure Probe, West Chester, Pennsylvania ..

Hanson, Philip C., Vice President, The C.H. Hanson Company, Desoto, Texas

Kemp, Evan J., Jr., Evan Kemp and Associates, Capitol Heights, Maryland

Liberman, Michael, President, Valley Forge Flag Company, Womelsdorf,

Pennsylvania

McGee, Michael K., National Environmental Testing, Inc., Cedar Falls, Iowa,
representing the International Association of Environmental Testing Lab-
oratories (IAETL)

Meier, Gene, Owner, Lewistown Propane and Fertilizer, Lewistown, Montana,
representing National Federation of Independent Business (NFIB)

O'Brien, Lou, Chairman, Model-Star Services, Danville, Illinois, representing

Textile Rental Services Association of America

Ralph, Roger S., President, Bel Air Health Club, Bel Air, Maryland, rep-

resenting International Health, Racquet, and Sportsclub Association

(IHRSA)

41

Scanlan, Thomas J., Vice Chairman, Business Coalition for Fair Competition
(BCFC), Washington, DC

Stack, Robert P., President, Community Options, Bordentown, New Jersey

APPENDIX

Page

26

36

Additional Materials from Member Associations of BCFC and others:

Statement for the Record from the International Hearing Society

Letter from James M. Goldberg, Esquire, Goldberg and Associates,

on behalf of the North American Retail Dealers Association

(NARDA).

Materials Relating to Unfair Competition by Federally-Funded Research and

Development Centers (FFRDCs):

Letter from Victor A. DeMarines, President and Chief Executive

Officer of The MITRE Corporation, Bedford, MA.

Materials Relating to Unfair Competition with Testing Laboratories:

Letter from Anthony P. Pagliaro, Director of Government Relations,

ACIL, The Association of Independent Scientific, Engineering and

Testing Firms.

Report from International Association of Environmental Testing Lab-

oratories (IATEL) entitled IAETL Data Report on Federal and

State Government Environmental Testing Analysis Trends.

Letter from Dr. Mary J.R. Gilchrist, Ph.D., Director of the State

of Iowa Hygienic Laboratory at the University of Iowa, Iowa City,

IA.

Letter and statement for the record by Edward F. Treick, President,

S-F Analytical Laboratories, Inc. Milwaukee, WI, on behalf of the

Wisconsin Environmental Laboratories Association.

Materials Relating to Unfair Competition with RV Parks and Campgrounds:

Statement by Ronald R. Brice, Owner, Payson Campground, Payson,

AZ, for the National Association of RV Parks and Campgrounds

(ARVC).

Materials Relating to Unfair Competition from Not-for-Profit Cooperatives:

Additional letter for the record from Gene Meier, Owner, Lewistown

Propane and Fertilizer.

135

136

138

139

165

171

173

210

214

218

224

249

274

277

286

290

291

301

342

350

354

362

Statement for the record by Russell C. Notar, President and Chief

Executive Officer, National Cooperative Business Association.

Statement for the record by Wayne A. Boutwell, President, National

Council of Farmer Cooperatives.

363

Materials Relating to Unfair Competition with For-Profit Child Care Provid-

ers:

Letter and statement for the record from Dr. William J. Tobin, Exec-

utive Director, Early Childhood Development Center Legislative

Coalition, Falls Church, VA.

Materials Relating to Unfair Competition with For-Profit Travel Service Pro-

viders:

Letter from Barbara E. O'Hara, Director of Government Affairs for

the American Association of Travel Agents (ASTA) submitted on

behalf of ASTA, the American Bus Association, the American Hotel

and Motel Association, the National Tour Association, and the

United Motorcoach Association including a series of recommenda-

tions furnished to the Internal Revenue Service regarding Travel

and Tour Operations by Tax-Exempt Entities.

365

372

382