Home > 106th Congressional Bills > S. 1346 (is) To ensure the independence and nonpartisan operation of the Office of Advocacy of the Small Business Administration. [Introduced in Senate] ...S. 1346 (is) To ensure the independence and nonpartisan operation of the Office of Advocacy of the Small Business Administration. [Introduced in Senate] ...
106th CONGRESS
1st Session
S. 1346
_______________________________________________________________________
AN ACT
To ensure the independence and nonpartisan operation of the Office of
Advocacy of the Small Business Administration.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Independent Office of Advocacy
Act''.
SEC. 2. FINDINGS.
Congress finds that--
(1) excessive regulations continue to burden our Nation's
small businesses;
(2) Federal agencies are reluctant to comply with the
requirements of chapter 6 of title 5, United States Code, and
continue to propose regulations that impose disproportionate
burdens on small businesses;
(3) the Office of Advocacy of the Small Business
Administration (referred to in this Act as the ``Office'') is
an effective advocate for small businesses that can help ensure
that agencies are responsive to small businesses and that
agencies comply with their statutory obligations under chapter
6 of title 5, United States Code and under the Small Business
Regulatory Enforcement Fairness Act of 1996 (Public Law 104-
121; 106 Stat. 4249 et seq.);
(4) the independence of the Office is essential to ensure
that it can serve as an effective advocate for small businesses
without being restricted by the views or policies of the Small
Business Administration or any other executive branch agency;
(5) the Office needs sufficient resources to conduct the
research required to assess effectively the impact of
regulations on small businesses; and
(6) the research, information, and expertise of the Office
make it a valuable adviser to Congress as well as the executive
branch agencies with which the Office works on behalf of small
businesses.
SEC. 3. PURPOSES.
The purposes of this Act are--
(1) to ensure that the Office has the statutory
independence and adequate financial resources to advocate for
and on behalf of small business;
(2) to require that the Office report to the Chairmen and
Ranking Members of the Committees on Small Business of the
Senate and the House of Representatives and the Administrator
of the Small Business Administration in order to keep them
fully and currently informed about issues and regulations
affecting small businesses and the necessity for corrective
action by the regulatory agency or Congress;
(3) to provide a separate authorization for appropriations
for the Office;
(4) to authorize the Office to report to the President and
to Congress regarding agency compliance with chapter 6 of title
5, United States Code; and
(5) to enhance the role of the Office pursuant to chapter 6
of title 5, United States Code.
SEC. 4. OFFICE OF ADVOCACY.
(a) In General.--The Small Business Act (15 U.S.C. 631 et seq.) is
amended--
(1) by redesignating section 32 as section 33; and
(2) by inserting after section 31 the following:
``SEC. 32. OFFICE OF ADVOCACY.
``(a) Definitions.--In this section--
``(1) the term `Chief Counsel' means the Chief Counsel for
Advocacy appointed under subsection (b); and
``(2) the term `Office' means the Office of Advocacy
established under subsection (b).
``(b) Establishment.--
``(1) In general.--There is established in the
Administration an Office of Advocacy (referred to in this
section as the `Office').
``(2) Chief counsel for advocacy.--
``(A) In general.--The management of the Office
shall be vested in a Chief Counsel for Advocacy who
shall be appointed from civilian life by the President,
by and with the advice and consent of the Senate,
without regard to political affiliation and solely on
the ground of fitness to perform the duties of the
office.
``(B) Employment restriction.--The individual
appointed to the office of Chief Counsel for Advocacy
may not serve as an officer or employee of the Small
Business Administration during the 5-year period
preceding the appointment.
``(C) Removal.--The Chief Counsel for Advocacy may
be removed from office by the President and the
President shall notify Congress of any such removal not
later than 30 days before the removal.
``(3) Appropriation request.--Each appropriation request
prepared and submitted by the Administration under section 1108
of title 31, United States Code, shall include a separate
request relating to the Office.
``(c) Primary Functions.--The Office shall--
``(1) examine the role of small businesses in the economy
of the United States and the contribution that small businesses
can make in improving competition, encouraging economic and
social mobility for all citizens, restraining inflation,
spurring production, expanding employment opportunities,
increasing productivity, promoting exports, stimulating
innovation and entrepreneurship, and providing the means by
which new and untested products and services can be brought to
the marketplace;
``(2) assess the effectiveness of Federal subsidy and
assistance programs for small businesses and the desirability
of reducing the emphasis on those programs and increasing the
emphasis on general assistance programs designed to benefit all
small businesses;
``(3) measure the direct costs and other effects of
government regulation of small businesses, and make
legislative, regulatory, and nonlegislative proposals for
eliminating the excessive or unnecessary regulation of small
businesses;
``(4) determine the impact of the tax structure on small
businesses and make legislative, regulatory, and other
proposals for altering the tax structure to enable all small
businesses to realize their potential for contributing to the
improvement of the Nation's economic well-being;
``(5) study the ability of financial markets and
institutions to meet small business credit needs and determine
the impact of government demands on credit for small
businesses;
``(6) determine financial resource availability and
recommend methods for--
``(A) delivery of financial assistance to minority
and women-owned enterprises, including methods for
securing equity capital;
``(B) generating markets for goods and services;
``(C) providing effective business education, more
effective management and technical assistance, and
training; and
``(D) assistance in complying with Federal, State,
and local laws;
``(7) evaluate the efforts of Federal agencies and the
private sector to assist minority and women-owned enterprises;
``(8) make such recommendations as may be appropriate to
assist the development and strengthening of minority, women-
owned, and other small businesses;
``(9) recommend specific measures for creating an
environment in which all businesses will have the opportunity
to--
``(A) compete effectively and expand to their full
potential; and
``(B) ascertain any common reasons for small
business successes and failures;
``(10) determine the desirability of developing a set of
rational, objective criteria to be used to define small
business, and to develop such criteria, if appropriate; and
``(11) make recommendations and submit reports to the
Chairmen and Ranking Members of the Committees on Small
Business of the Senate and the House of Representatives and the
Administrator with respect to issues and regulations affecting
small businesses and the necessity for corrective action by the
Administrator, any Federal department or agency, or Congress.
``(d) Additional Functions.--The Office shall, on a continuing
basis--
``(1) serve as a focal point for the receipt of complaints,
criticisms, and suggestions concerning the policies and
activities of the Administration and any other department or
agency of the Federal Government that affects small businesses;
``(2) counsel small businesses on the means by which to
resolve questions and problems concerning the relationship
between small businesses and the Federal Government;
``(3) develop proposals for changes in the policies and
activities of any agency of the Federal Government that will
better fulfill the purposes of this section and communicate
such proposals to the appropriate Federal agencies;
``(4) represent the views and interests of small businesses
before other Federal agencies whose policies and activities may
affect small business;
``(5) enlist the cooperation and assistance of public and
private agencies, businesses, and other organizations in
disseminating information about the programs and services
provided by the Federal Government that are of benefit to small
businesses, and information on the means by which small
businesses can participate in or make use of such programs and
services; and
``(6) carry out the responsibilities of the Office under
chapter 6 of title 5, United States Code.
``(e) Staff and Powers.--
``(1) Staff.--
``(A) In general.--The Chief Counsel may, without
regard to the civil service laws and regulations,
appoint and terminate such additional personnel as may
be necessary to enable the Office to perform its duties
under this section.
``(B) Compensation.--The Chief Counsel may fix the
compensation of personnel appointed under this
paragraph without regard to the provisions of chapter
51 and subchapter III of chapter 53 of title 5, United
States Code, relating to classification of positions
and General Schedule pay rates, but at rates not to
exceed the minimum rate payable for a position at GS-15
of the General Schedule, except that not more than 14
employees of the Office at any one time may be
compensated at a rate not to exceed the maximum rate
payable for a position at GS-15 of the General
Schedule.
``(2) Powers.--In carrying out this section, the Chief
Counsel may--
``(A) procure temporary and intermittent services
to the same extent as is authorized by section 3109 of
title 5, United States Code;
``(B) consult with--
``(i) experts and authorities in the fields
of small business investment, venture capital,
investment and commercial banking, and other
comparable financial institutions involved in
the financing of business; and
``(ii) individuals with regulatory, legal,
economic, or financial expertise, including
members of the academic community, and
individuals who generally represent the public
interest;
``(C) use the services of the National Advisory
Council established under section 8(b) and, in
accordance with that section, appoint such other
advisory boards or committees as the Chief Counsel
determines to be reasonably necessary and appropriate
to carry out this section; and
``(D) hold hearings and sit and act at such times
and places as the Chief Counsel determines to be
appropriate.
``(f) Overhead and Administrative Support.--The Administrator shall
provide the Office with appropriate and adequate office space at
central and field office locations of the Administration, together with
such equipment, office supplies, and communications facilities and
services as may be necessary for the operation of such offices, and
shall provide necessary maintenance services for such offices and the
equipment and facilities located therein.
``(g) Information From Federal Agencies.--The Chief Counsel may
secure directly from any Federal department or agency such information
as the Chief Counsel considers to be necessary to carry out this
section. Upon request of the Chief Counsel, the head of such department
or agency shall furnish such information to the Office.
``(h) Reports.--
``(1) Annual reports.--Not less than annually, the Chief
Counsel shall submit to the President and to the Committees on
Small Business of the Senate and the House of Representatives,
the Committee on Governmental Affairs of the Senate, the
Committee on Government Reform of the House of Representatives,
and the Committees on the Judiciary of the Senate and the House
of Representatives a report on agency compliance with chapter 6
of title 5, United States Code.
``(2) Additional reports.--In addition to the reports
required under paragraph (1) of this subsection and subsection
(c)(12), the Chief Counsel may prepare and publish such reports
as the Chief Counsel determines to be appropriate.
``(3) Prohibition.--No report under this section shall be
submitted to the Office of Management and Budget or to any
other department or agency of the Federal Government for any
purpose before submission of the report to the President and to
Congress.
``(i) Authorization of Appropriations.--
``(1) In general.--There are authorized to be appropriated
to the Office to carry out this section such sums as may be
necessary for each fiscal year.
``(2) Availability.--Any sums appropriated under paragraph
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