[Congressional Record (Bound Edition), Volume 145 (1999), Part 20]
[Senate]
[Pages 28849-28853]
[From the U.S. Government Publishing Office, www.gpo.gov]



                   INDEPENDENT OFFICE OF ADVOCACY ACT

  Mr. DOMENICI. Mr. President, I ask unanimous consent the Senate now 
proceed to consideration of Calendar No. 267, S. 1346.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The assistant legislative clerk read as follows:

       A bill (S. 1346) to ensure the independence and nonpartisan 
     operation of the Office of Advocacy of the Small Business 
     Administration.

  There being no objection, the Senate proceeded to consider the bill, 
which had been reported from the Committee on Small Business, with 
amendments; as follows:
  (The parts of the bill intended to be stricken are shown in boldface 
brackets and the parts of the bill intended to be inserted are shown in 
italic.)

                                S. 1346

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

[[Page 28850]]



     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 [within 30 days after] 
     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

[[Page 28851]]

     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 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.

  Mr. BOND. Mr. President, I rise in support of the ``Independent 
Office of Advocacy Act'' (S. 1346). This bill is designed to build on 
the success achieved by the Office of Advocacy over the past 23 years. 
It is intended to strengthen that foundation to make the Office of 
Advocacy a stronger, more effective advocate for all small businesses 
throughout the United States. I introduced the ``Independent Office of 
Advocacy Act'' on July 1, 1999. Two weeks later, on July 15th, the 
Committee on Small Business voted unanimously, 17-0, in favor of this 
important legislation.
  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 difficult roles to play simultaneously.
  The ``Independent Office of Advocacy Act'' would make the Office of 
Advocacy and the 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.
  S. 1346 would direct the Chief Counsel to submit an annual report on 
Federal agency compliance with the Regulatory Flexibility Act to the 
President and the Senate and House Committees on Small Business. The 
``Reg Flex Act'' is a very important weapon in the war against the 
over-regulation of small businesses. At the request of Senator Fred 
Thompson, Chairman of the Government Affairs Committee, I am offering a 
noncontroversial amendment to S. 1346 that would direct the Chief 
Counsel for Advocacy to send a copy of the report to the Senate 
Government Affairs Committee. In addition, my amendment would also 
require that copies of the report be sent to the House Committee on 
Government Reform and the House and Senate Committees on the Judiciary. 
It makes good sense for each of the committees to receive this report 
on Reg Flex compliance, and I urge my colleagues to support the 
amendment.
  The Office of Advocacy as envisioned by the ``Independent Office of 
Advocacy Act'' would be unique with the Executive Branch. The Chief 
Counsel for Advocacy would be a wide-ranging advocate, who would 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. During consideration of the bill, the Committee 
adopted unanimously an amendment I offered, which was cosponsored by 
Senator John Kerry, the Committee's Ranking Democrat, to require the 
Chief Counsel to be appointed ``from civilian life.'' This 
qualification is intended to emphasize that the person nominated to 
serve in this important role should have a strong small business 
background.
  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 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 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 whole new light--one that had not been apparent until earlier this 
year. The report raises the questions, concerns and suspicions 
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

[[Page 28852]]

the Office of Advocacy in all matters, at all times, for the continued 
benefit of all small business. 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 intrusion into the management of day-to-day 
operations of the Office of Advocacy. The bill would require 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 would also continue 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 
believe 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. President, the ``Independent Office of Advocacy Act'' is a sound 
bill. It 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 Counsels 
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. And I stated earlier, the Committee on Small Business 
approved this bill by a unanimous 17-0 vote. Therefore, I strongly urge 
my colleagues in the Senate to vote in favor of the ``Independent 
Office of Advocacy Act.''
  Mr. DOMENICI. I ask unanimous consent the committee amendment be 
agreed to.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The committee amendment was agreed to.


                           Amendment No. 2544

(Purpose: To make an amendment with respect to the submission of annual 
                                reports)

  Mr. DOMENICI. Mr. President, Senator Bond has an amendment at the 
desk. I ask for its immediate consideration.
  The PRESIDING OFFICER. The clerk will report.
  The assistant legislative clerk read as follows:

       The Senator from New Mexico [Mr. Domenici], for Mr. Bond, 
     proposes an amendment numbered 2544.

  The amendment is as follows:

       On page 12, line 12, insert after ``Representatives'' the 
     following: ``; 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''.

  Mr. DOMENICI. I ask consent the amendment be agreed to, the bill be 
read a third time and passed, the motion to reconsider be laid on the 
table, and any statements relating to the bill be printed in the 
Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 2544) was agreed to.
  The bill (S. 1346), as amended, was read the third time and passed, 
as follows:

                                S. 1346

       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

[[Page 28853]]

     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.

                          ____________________