SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Independent Office of Advocacy and 
Small Business Regulatory Reform Act of 2008''.

SEC. 2. PURPOSES.

    The purposes of this Act are--
            (1) to ensure that the Office of Advocacy of the Small 
        Business Administration (referred to in this section as the 
        ``Office'') has adequate financial resources to advocate for 
        and on behalf of small business concerns;
            (2) to provide a separate authorization of appropriations 
        for the Office; and
            (3) to enhance the role of the Office pursuant to chapter 6 
        of title 5, United States Code.

SEC. 3. OFFICE OF ADVOCACY.

    (a) In General.--Section 203 of Public Law 94-305 (15 U.S.C. 634c) 
is amended--
            (1) in paragraph (4), by striking ``and'' at the end;
            (2) in paragraph (5), by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following:
            ``(6) carry out the responsibilities of the Office of 
        Advocacy under chapter 6 of title 5, United States Code.''.
    (b) Budgetary Line Item and Authorization of Appropriations.--Title 
II of Public Law 94-305 (15 U.S.C. 634a et seq.) is amended by striking 
section 207 and inserting the following:

``SEC. 207. BUDGETARY LINE ITEM AND AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Appropriation Requests.--Each budget of the United States 
Government submitted by the President under section 1105 of title 31, 
United States Code, shall include a separate statement of the amount of 
appropriations requested for the Office of Advocacy of the Small 
Business Administration, which shall be designated in a separate 
account in the General Fund of the Treasury.
    ``(b) Administrative Operations.--The Administrator of the Small 
Business Administration shall provide the Office of Advocacy with 
appropriate and adequate office space at central and field office 
locations, together with such equipment, operating budget, and 
communications facilities and services as may be necessary, and shall 
provide necessary maintenance services for such offices and the 
equipment and facilities located in such offices.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this title. Any 
amount appropriated under this subsection shall remain available, 
without fiscal year limitation, until expended.''.

SEC. 4. REGULATORY FLEXIBILITY REFORM FOR SMALL BUSINESSES.

    (a) Requirements Providing for More Detailed Analyses.--
            (1) Initial regulatory flexibility analysis.--Section 603 
        of title 5, United States Code, is amended by adding at the end 
        the following:
    ``(d) An agency shall notify the Chief Counsel for Advocacy of the 
Small Business Administration of any draft rules that may have a 
significant economic impact on a substantial number of small entities 
either--
            ``(1) when the agency submits a draft rule to the Office of 
        Information and Regulatory Affairs at the Office of Management 
        and Budget under Executive Order 12866, if that order requires 
        such submission; or
            ``(2) if no submission to the Office of Information and 
        Regulatory Affairs is so required, at a reasonable time prior 
        to publication of the rule by the agency.''.
            (2) Final regulatory flexibility analysis.--
                    (A) Inclusion of response to comments on 
                certification of proposed rule.--Section 604(a)(2) of 
                title 5, United States Code, is amended by inserting 
                ``(or certification of the proposed rule under section 
                605(b))'' after ``initial regulatory flexibility 
                analysis''.
                    (B) Inclusion of response to comments filed by 
                chief counsel for advocacy.--Section 604(a) of title 5, 
                United States Code, is amended--
                            (i) by redesignating paragraphs (3), (4), 
                        and (5) as paragraphs (4), (5), and (6), 
                        respectively; and
                            (ii) by inserting after paragraph (2) the 
                        following:
            ``(3) the response of the agency to any comments filed by 
        the Chief Counsel for Advocacy of the Small Business 
        Administration in response to the proposed rule, and a detailed 
        statement of any changes made to the proposed rule in the final 
        rule as a result of such comments;''.
                    (C) Publication of analyses on website.--
                            (i) Initial regulatory flexibility 
                        analysis.--Section 603 of title 5, United 
                        States Code, as amended by this Act, is amended 
                        by adding at the end the following:
    ``(e) An agency shall publish any initial regulatory flexibility 
analysis required under this section on the website of the agency.''.
                            (ii) Final regulatory flexibility 
                        analysis.--Section 604(b) of title 5, United 
                        States Code, is amended to read as follows:
    ``(b) The agency shall make copies of the final regulatory 
flexibility analysis available to the public, including placement of 
the entire analysis on the website, and shall publish in the Federal 
Register the final regulatory flexibility analysis, or a summary 
thereof that includes the telephone number, mailing address, and link 
to the website where the complete analysis may be obtained.''.
            (3) Cross-references to other analyses.--Section 605(a) of 
        title 5, United States Code, is amended to read as follows:
    ``(a) A Federal agency shall be treated as satisfying any 
requirement regarding the content of an agenda or regulatory 
flexibility analysis under section 602, 603, or 604, if such agency 
provides in such agenda or analysis a cross-reference to the specific 
portion of another agenda or analysis that is required by any other law 
and which satisfies such requirement.''.
            (4) Certifications.--The second sentence of section 605(b) 
        of title 5, United States Code, is amended by inserting 
        ``detailed'' before ``statement''.
            (5) Quantification requirements.--Section 607 of title 5, 
        United States Code, is amended to read as follows:
``Sec. 607. Quantification requirements
    ``In complying with sections 603 and 604, an agency shall provide--
            ``(1) a quantifiable or numerical description of the 
        effects of the proposed or final rule and alternatives to the 
        proposed or final rule; or
            ``(2) a more general descriptive statement and a detailed 
        statement explaining why quantification is not practicable or 
        reliable.''.
    (b) Technical and Conforming Amendments.--
            (1) Heading.--The heading of section 605 of title 5, United 
        States Code, is amended to read as follows:
``Sec. 605. Incorporations by reference and certifications''.
            (2) Table of sections.--The table of sections for chapter 6 
        of title 5, United States Code, is amended--
                    (A) by striking the item relating to section 605 
                and inserting the following:

``605. Incorporations by reference and certifications.'';
                and
                    (B) by striking the item relating to section 607 
                and inserting the following:

``607. Quantification requirements.''.

SEC. 5. OVERSIGHT OF REGULATORY ENFORCEMENT.

    Section 30 of the Small Business Act (15 U.S.C. 657) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) by inserting ``(A)'' before ``Not later 
                        than'';
                            (ii) by striking ``Nothing in this section 
                        is intended to replace'' and inserting the 
                        following:
            ``(B) Nothing in this section--
                    ``(i) is intended to replace'';
                            (iii) by striking the period at the end and 
                        inserting ``; or''; and
                            (iv) by adding at the end the following:
                    ``(ii) may be construed to exempt an agency from 
                providing relevant information to the Ombudsman upon 
                request.'';
                    (B) in paragraph (2)--
                            (i) in subparagraph (A)--
                                    (I) by inserting ``(i)'' before 
                                ``work with each agency'';
                                    (II) by inserting ``fine, 
                                forfeiture,'' before ``or other 
                                enforcement related''; and
                                    (III) by adding at the end the 
                                following: ``or
                    ``(ii) refer any substantiated comment to the 
                affected agency for response to the Ombudsman;''; and
                            (ii) by amending subparagraph (C) to read 
                        as follows:
                    ``(C) based on cases that are substantiated by the 
                Ombudsman, annually submit to Congress and affected 
                agencies a report evaluating the enforcement activities 
                of agency personnel, including--
                            ``(i) ratings of the responsiveness to 
                        small business concerns; and
                            ``(ii) a description of the policies, 
                        actions, and activities impacting small 
                        business concerns described in subparagraph 
                        (A), for each Federal agency and regional or 
                        program office of each Federal agency, as 
                        determined appropriate by the Ombudsman.'';
            (2) in subsection (d)(1), by inserting ``, in coordination 
        with the Ombudsman,'' after ``hold such hearings''; and
            (3) by adding at the end the following:
    ``(e) The Board shall coordinate with the Ombudsman regarding any 
official correspondence to be sent by the Board.''.
Independent Office of Advocacy and Small Business Regulatory Reform Act of 2008 - Requires the Office of Advocacy (Office) of the Small Business Administration (SBA) to carry out responsibilities concerning the analysis of regulatory functions, including regulatory flexibility analyses.

Requires: (1) each federal budget to include a separate statement of the amount requested for the Office, designated in a separate account in the General Fund of the Treasury; and (2) the SBA Administrator to provide the Office with appropriate and adequate office space, together with necessary equipment, operating budget, and communications facilities and services, and to provide necessary maintenance services for such offices and equipment.

Requires: (1) each federal agency to notify the SBA's Chief Counsel for Advocacy of any agency draft rules that may have a significant impact on a substantial number of small businesses; (2) each agency's final regulatory analysis of a final rule to include the agency's response to any comments of the Chief Counsel for Advocacy with respect to that rule, as well as changes made as a result of such comments; and (3) agencies to make final regulatory flexibility analyses available to the public, including on a website.
A bill to ensure the independent operation of the Office of Advocacy of the Small Business Administration, ensure complete analysis of potential impacts on small entities of rules, and for other purposes.