[Congressional Record Volume 145, Number 97 (Monday, July 12, 1999)]
[Senate]
[Pages S8267-S8268]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BOND:
  S. 1346. A bill to ensure the independence and nonpartisan operation 
of the Office of Advocacy of the Small Business Administration; to the 
Committee on Small Business.


                   independent office of advocacy act

 Mr. BOND. Mr. President, today, I am introducing the 
Independent Office of Advocacy Act. This bill has been drafted to build 
on the success of the Office of Advocacy over the past 23 years. It is 
intended to strengthen the foundation to make the Office of Advocacy a 
stronger and more effective advocate for all small businesses 
throughout the United States.
  The Office of Advocacy is a unique office within the Federal 
government. It is part of the Small Business Administration (SBA/
Agency), and its director, the Chief Counsel for Advocacy, is nominated 
by the President and confirmed by the Senate. At the same time, the 
Office is also intended to be the independent voice for small business 
within the Federal government. It is supposed to develop proposals for 
changing government policies to help small businesses, and it is 
supposed to represent the views and interests of small businesses 
before other Federal agencies.
  As the director of the Office of Advocacy, the Chief Counsel for 
Advocacy has a dual responsibility. On the one hand, he is the 
independent watchdog for small business. On the other hand, he is also 
a part of the President's Administration. As you can imagine, those are 
sometimes very difficult roles to play simultaneously.
  The Independent Office of Advocacy Act is designed to make the Office 
of Advocacy and Chief Counsel for Advocacy a fully independent advocate 
within the Executive Branch acting on behalf of the small business 
community. The bill would establish a clear mandate that the Office of 
Advocacy will fight on behalf of small businesses regardless of the 
position taken on critical issues by the President and his 
Administration.
  The Office of Advocacy as envisioned by the Independent Office of 
Advocacy Act will be unique within the executive branch. The Chief 
Counsel for Advocacy will be a wide-ranging advocate, who will be free 
to take positions contrary to the Administration's policies and to 
advocate change in government programs and attitudes as they impact 
small businesses.
  In 1976, Congress established the Office of Advocacy in the SBA to be 
the eyes, ears and voice for small business within the Federal 
government. Over time, it has been assumed that the Office of Advocacy 
is the ``independent'' voice for small business. While I strongly 
believe that the Office of Advocacy and the Chief Counsel for Advocacy 
should be independent and free to advocate or support positions that 
might be contrary to the administration's policies, I have come to find 
that the Office is not as independent as necessary to do the job 
adequately for small business.
  For example, funding for the Office of Advocacy comes from the 
Salaries and Expense Account of the SBA's budget. Staffing is allocated 
by the SBA Administrator to the Office of Advocacy from the overall 
staff allocation for the Agency. In 1990, there were 70 full-time 
employees working on behalf of small businesses in the Office of 
Advocacy. Today's allocation of staff is 49, and fewer are actually on-
board as the result of the hiring freeze imposed by the SBA 
Administrator. The Independence of the Office is diminished when the 
Office of Advocacy staff is reduced to allow for increased staffing for 
new programs and additional initiatives in other areas of SBA, at the 
discretion of the Administrator.
  In addition, the General Accounting Office (GAO) recently completed a 
report for me on personnel practices at the SBA (GAO/GGD-99-68). I was 
alarmed by the GAO's finding that Assistant and Regional Advocates 
hired by the Office of Advocacy share many of the attributes of 
Schedule C political appointees. In fact, Regional Advocates are 
frequently cleared by the White House personnel office--the same 
procedure followed for approving Schedule C political appointees.

  The facts discussed in the GAO Report cast the Office of Advocacy in 
a

[[Page S8268]]

whole new light--one that had not been apparent until now. The report 
raises questions, concerns and suspicious regarding the independence of 
the Office of Advocacy. Has there been a time when the Office did not 
pursue a matter as vigorously as it might have were it not for direct 
or indirect political influence? Prior to receipt of the GAO Report, my 
response was a resounding ``No.'' But now, a question mark arises.
  Let me take a moment and note that I will be unrelenting in my 
efforts to insure the complete independence of the Office of Advocacy 
in all matters, at all times, for the continued benefit of all small 
businesses. However, so long as the Administration controls the budget 
allocated to the Office of Advocacy and controls who is hired, the 
independence of the Office may be in jeopardy. We must correct this 
situation, and the sooner we do it, the better it will be for the small 
business community.
  The Independent Office of Advocacy Act builds a firewall to prevent 
the political intrustion into the management of day-to-day operations 
of the Office of Advocacy. The bill requires that the SBA's budget 
include a separate account for the Office of Advocacy. No longer would 
its funds come from the general operating account of the Agency. The 
separate account would also provide for the number of full-time 
employees who would work within the Office of Advocacy. No longer would 
the Chief Counsel for Advocacy have to seek approval from the SBA 
Administrator to hire staff for the Office of advocacy.
  The bill also continues the practice of allowing the Chief Counsel to 
hire individuals critical to the mission of the Office of Advocacy 
without going through the normal competitive procedures directed by 
federal law and the Office of Personnel Management (OPM). I beleive 
this special hiring authority, which is limited only to employees 
within the Office of Advocacy, is beneficial because it allows the 
Chief Counsel to hire quickly those persons who can best assist the 
Office in responding to changing issues and problems confronting small 
businesses.
  Mr. Presdient, the Independent Office of Advocacy Act is a sound 
bill. The bill is the product of a great deal of thoughtful, objective 
review and consideration by me, the staff of the Committee on Small 
Business, representatives of the small business community, former Chief 
Councels for Advocacy and others. These individuals have also devoted 
much time and effort in actively participating in a Committee 
Roundtable discussion on the Office of Advocacy, which my Committee 
held on April 21, 1999. It is my hope the Committee on Small Business 
will be able to consider the Independent Office of Advocacy Act in the 
near future.
                                 ______