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 
        (1) shall remain available, without fiscal year limitation, 
        until expended.''.
    (b) Repeal.--Title II of Public Law 94-305 (15 U.S.C. 634a et seq.) 
is repealed.
    (c) Incumbent Chief Counsel for Advocacy.--The individual serving 
as the Chief Counsel for Advocacy of the Small Business Administration 
on the date of enactment of this Act shall continue to serve in that 
position after such date in accordance with section 32 of the Small 
Business Act, as amended by this section.

            Passed the Senate November 5, 1999.

            Attest:

                                                    GARY SISCO,

                                                             Secretary.
Directs the Chief Counsel of the Office to report at least annually to specified congressional committees on Federal agency compliance with certain small business deregulation requirements.
Authorizes appropriations.
Independent Office of Advocacy Act