IB 

Union Calendar No. 80

108TH CONGRESS 

1ST SESSION H. R. 1772

[Report No. 108–162] 

To improve small business advocacy, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 11, 2003

Mr. AKIN (for himself and Mr. SCHROCK) introduced the following bill; which 

was referred to the Committee on Small Business 

JUNE 18, 2003

Reported with an amendments, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Omit the part struck through and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on April 11, 2003] 

A BILL

To improve small business advocacy, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Small Business Advo5 cacy Improvement Act of 2003’’. 
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1 SEC. 2. FINDINGS AND PURPOSES. 

2 (a) FINDINGS.—Congress finds the following: 

3 (1) Excessive regulations continue to burden 

4 the Nation’s small businesses. 

5 (2) Federal agencies continue to propose regu6 lations that impose disproportionate burdens on 

7 small businesses. 

8 (3) An independent office of small business ad9 vocacy will help to ensure that Federal agencies are 

10 responsive to small businesses and that those agen11 cies comply with their statutory obligations with re12 spect to small businesses. 

13 (4) The independence of an office that acts as 

14 an advocate for small businesses is essential to en15 sure that it can serve as an effective advocate with16 out being restricted by the views or policies of the 

17 Small Business Administration or any other Federal 

18 executive branch agency. 

19 (5) To be effective an office that acts as an ad20 vocate for small businesses needs sufficient resources 

21 to conduct creditable economic studies and research 

22 which are necessary for the maintenance of small 

23 business databases and for the accurate assessment 

24 of the impact of regulations on small businesses, the 

25 role of small business in the Nation’s economy, and 

26 the barriers to the growth of small businesses. 
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1 (6) The research, information, and expertise 

2 provided by an independent office of small business 

3 advocacy will be a valuable source of information 

4 and advice for Congress and Federal agencies with 

5 which the office will work on behalf of small busi6 nesses. 

7 (b) PURPOSES.—The purposes of this Act are—

8 (1) to ensure that there exists an entity that 

9 has the statutory independence and adequate finan10 cial resources to effectively advocate for and on be11 half of small business; 

12 (2) to require that such an entity report to the 

13 Chairmen and Ranking Members of the Committee 

14 on Small Business of the House of Representatives 

15 and the Committee on Small Business and Entrepre16 neurship of the Senate, and to the Administrator of 

17 the Small Business Administration in order to keep 

18 them fully and currently informed about issues and 

19 regulations affecting small business concerns and the 

20 necessity for corrective action by the regulatory 

21 agency or Congress; 

22 (3) to provide a separate authorization for ap23 propriations for such an entity; and 

24 (4) to strengthen the role of the Small Business 

25 and Agriculture Regulatory Enforcement Ombuds-
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1 man by ensuring continued cooperation between the 

2 Ombudsman and the Office of Advocacy of the 

3 Small Business Administration. 

4 SEC. 3. APPOINTMENT OF CHIEF COUNSEL OF ADVOCACY. 

5 (a) IN GENERAL.—Section 201 of Public Law 94–

6 305 (15 U.S.C. 634a) is amended—

7 (1) by inserting ‘‘(a)’’ before ‘‘There is estab8 lished’’; 

9 (2) by striking the second sentence; and 

10 (3) by adding at the end the following: 

11 ‘‘(b) The management of the Office shall be vested 

12 in a Chief Counsel for Advocacy who shall be appointed 

13 from civilian life by the President, by and with the advice 

14 and consent of the Senate, and who should be appointed 

15 without regard to political affiliation and on the basis of 

16 fitness to perform the duties of the office. 

17 ‘‘(c) No individual may be appointed under sub18 section (b) if such individual has served as an officer or 

19 employee of the Small Business Administration during the 

20 5-year period preceding the date of such individual’s ap21 pointment. 

22 ‘‘(d) An individual serving as Chief Counsel on the 

23 date of the expiration of any term of the President may 

24 not continue to serve as Chief Counsel for more than 1 

25 year after such date unless such individual is reappointed
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1 after such date by the President, by and with the advice 

2 and consent of the Senate. The preceding sentence shall 

3 not apply in the case of the expiration of a term of an 

4 individual holding the office of President if such individual 

5 is elected to the office of President for a term successive 

6 to such term.’’. 

7 (b) INCUMBENT CHIEF COUNSEL FOR ADVOCACY.—

8 The individual serving as the Chief Counsel for Advocacy 

9 of the Small Business Administration on the date of the 

10 enactment of this Act shall continue to serve in that posi11 tion after such date in accordance with section 201 of 

12 Public Law 94–305 (15 U.S.C. 634a), as amended by this 

13 section. 

14 SEC. 4. PRIMARY FUNCTIONS OF OFFICE OF ADVOCACY. 

15 Section 202 of Public Law 94–305 (15 U.S.C. 634b) 

16 is amended—

17 (1) in paragraph (6) by striking ‘‘to minority 

18 enterprises’’ and inserting ‘‘to small business con19 cerns owned and controlled by socially and economi20 cally disadvantaged individuals, to small business 

21 concerns owned and controlled by women, and to 

22 small business concerns owned and controlled by vet23 erans’’; 

24 (2) in paragraph (7) by striking ‘‘minority en25 terprises’’ and inserting ‘‘small business concerns 
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1 owned and controlled by socially and economically 

2 disadvantaged individuals, small business concerns 

3 owned and controlled by women, and small business 

4 concerns owned and controlled by veterans’’; 

5 (3) in paragraph (8) by striking ‘‘minority and 

6 other small business enterprises’’ and inserting 

7 ‘‘small business concerns owned and controlled by 

8 socially and economically disadvantaged individuals, 

9 small business concerns owned and controlled by 

10 women, small business concerns owned and con11 trolled by veterans, and other small businesses’’; 

12 (4) in paragraph (9) by striking ‘‘complete’’ 

13 and inserting ‘‘compete’’; 

14 (5) by striking paragraph (11); 

15 (6) by redesignating paragraph (12) as para16 graph (11); 

17 (7) in paragraph (11) (as so redesignated)—

18 (A) by striking ‘‘serviced-disabled’’ and in19 serting ‘‘service-disabled’’; and 

20 (B) by striking the period at the end and 

21 inserting ‘‘; and’’; and 

22 (8) by adding at the end the following: 

23 ‘‘(12) make such recommendations and submit 

24 such reports as the Chief Counsel determines appro25 priate to the President, to the Chairmen and Rank-
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1 ing Members of the Committee on Small Business of 

2 the House of Representatives and the Committee on 

3 Small Business and Entrepreneurship of the Senate, 

4 and to the Administrator of the Small Business Ad5 ministration, with respect to issues and regulations 

6 affecting small businesses and the necessity for cor7 rective action by any Federal agency or by Con8 gress.’’. 

9 SEC. 5. ADDITIONAL FUNCTIONS. 

10 (a) IN GENERAL.—Section 203 of Public Law 94–

11 305 (15 U.S.C. 634c) is amended—

12 (1) by inserting ‘‘(a)’’ before ‘‘The Office of Ad13 vocacy shall also perform’’; and 

14 (2) in subsection (a) (as so designated)—

15 (A) in paragraph (4) by striking ‘‘and’’ at 

16 the end; 

17 (B) in paragraph (5) by striking the period 

18 at the end and inserting a semicolon; and 

19 (C) by adding at the end the following: 

20 ‘‘(6) maintain economic databases and make 

21 the information contained therein available to the 

22 Administrator of the Small Business Administration 

23 and to Congress; 
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1 ‘‘(7) carry out the responsibilities of the Chief 

2 Counsel under chapter 6 of title 5, United States 

3 Code; and 

4 ‘‘(8) maintain a memorandum of understanding 

5 with the Small Business and Agriculture Regulatory 

6 Enforcement Ombudsman regarding methods and 

7 procedures for cooperation between the Ombudsman 

8 and the Office of Advocacy and transmit a copy of 

9 such memorandum to the Committee on Small Busi10 ness of the House of Representatives and the Com11 mittee on Small Business and Entrepreneurship of 

12 the Senate.’’. 

13 (b) APPROPRIATION REQUEST.—Section 203 of Pub14 lic Law 94–305 (15 U.S.C. 634c) is further amended by 

15 adding at the end the following: 

16 ‘‘(b)(1) For each fiscal year, the Chief Counsel shall 

17 transmit the Office of Advocacy’s appropriation estimate 

18 and request to the Office of Management and Budget, the 

19 Committee on Small Business of the House of Representa20 tives, the Committee on Small Business and Entrepre21 neurship of the Senate, and the Committees on Appropria22 tions of the House of Representatives and the Senate. 

23 ‘‘(2) Each budget of the United States Government 

24 submitted by the President shall include a separate state-
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1 ment of the amount of appropriations requested for the 

2 Office of Advocacy.’’.

3 ‘‘(3) Each such budget shall also include a statement 

4 indicating whether the proportion of the funds requested for 

5 the Office of Advocacy when compared to the funds re6 quested for the Small Business Administration has in7 creased, decreased, or stayed the same relative to the propor8 tion of the amount appropriated for the Office of Advocacy 

9 for the previous fiscal year when compared to the amount 

10 appropriated for the Small Business Administration for the 

11 previous fiscal year.’’.

12 SEC. 6. PRINCIPAL DEPUTY CHIEF COUNSEL AND RE13 GIONAL ADVOCATES. 

14 Section 204 of Public Law 94–305 (15 U.S.C. 634d) 

15 is amended—

16 (1) by inserting ‘‘(a)’’ before ‘‘In carrying out’’; 

17 and 

18 (2) by adding at the end the following: 

19 ‘‘(b)(1) The Chief Counsel may appoint 1 individual 

20 to serve as Principal Deputy Chief Counsel. 

21 ‘‘(2) The Principal Deputy Chief Counsel shall be 

22 paid at an annual rate not less than the minimum rate, 

23 nor more than the maximum rate, for the Senior Execu24 tive Service under chapter 53 of title 5, United States 

25 Code.
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1 ‘‘(3) An individual appointed to a position under this 

2 subsection shall not be counted toward the limitation con3 tained in subsection (a)(1) regarding the number of indi4 viduals who may be compensated at a rate in excess of 

5 the lowest rate for GS–15 of the General Schedule. 

6 ‘‘(c) The Chief Counsel may appoint regional advo7 cates within each Standard Federal Region as appro8 priate. Such regional advocates shall—

9 ‘‘(1) assist in examining the role of small busi10 ness in the economy of the United States by identi11 fying academic and other research institutions that 

12 focus on small business concerns and linking these 

13 research resources to research activities conducted 

14 by the Office of Advocacy; 

15 ‘‘(2) assist in representing the views and inter16 ests of small business concerns before Federal agen17 cies whose policies and activities may affect small 

18 business; 

19 ‘‘(3) assist the functioning of regional small 

20 business fairness boards in coordination with the 

21 Small Business and Agriculture Regulatory Enforce22 ment Ombudsman; 

23 ‘‘(4) assist in enlisting the cooperation and as24 sistance of public and private agencies, businesses, 

25 and other organizations in disseminating information 
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1 about the programs and services provided by the 

2 Federal Government that are of benefit to small 

3 business concerns and the means by which small 

4 business concerns can participate in or make use of 

5 such programs and services; and 

6 ‘‘(5) carry out such duties pursuant to the mis7 sion of the Office of Advocacy as the Chief Counsel 

8 may assign.’’. 

9 SEC. 7. OVERHEAD AND ADMINISTRATIVE SUPPORT. 

10 Section 205 of Public Law 94–305 (15 U.S.C. 634e) 

11 is amended by inserting before ‘‘Each department’’ the 

12 following: 

13 ‘‘(a) The Administrator of the Small Business Ad14 ministration shall provide the Office of Advocacy with ap15 propriate and adequate office space at central and field 

16 office locations of the Administration, together with such 

17 equipment, office supplies, communications facilities, and 

18 personnel and maintenance services as may be necessary 

19 for the operation of such offices. 

20 ‘‘(b)’’. 

21 SEC. 8. REPORTS. 

22 Section 206 of Public Law 94–305 (15 U.S.C. 634f) 

23 is amended by striking ‘‘The Chief Counsel may’’ and all 

24 that follows through ‘‘on his activities.’’ and inserting the 

25 following: 
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1 ‘‘(a) Not less than annually, the Chief Counsel shall 

2 submit to the President, the Committee on Small Business 

3 of the House of Representatives, the Committee on Small 

4 Business and Entrepreneurship of the Senate, the Com5 mittee on Government Affairs of the Senate, the Com6 mittee on Government Reform of the House of Represent7 atives, and the Committees on the Judiciary of the Senate 

8 and the House of Representatives, and the Administrator 

9 of the Small Business Administration a report on agency 

10 compliance with chapter 6 of title 5, United States Code. 

11 ‘‘(b) In addition to the reports required by this title, 

12 the Chief Counsel may prepare and publish such other re13 ports as the Chief Counsel determines appropriate. 

14 ‘‘(c)’’. 

15 SEC. 9. AUTHORIZATION OF APPROPRIATIONS. 

16 Section 207 of Public Law 94–305 (15 U.S.C. 634g) 

17 is amended by striking ‘‘not to exceed $1,000,000’’ and 

18 inserting ‘‘$10,000,000 for fiscal years 2003 and 2004, 

19 $12,000,000 for fiscal year 2005, and $14,000,000 for fis20 cal year 2006’’. 

21 SEC. 10. CONFORMING AMENDMENTS. 

22 (a) RURAL TOURISM TRAINING PROGRAM.—Section 

23 311 of the Small Business Administration Reauthorization 

24 and Amendments Act of 1990 (15 U.S.C. 653 note; 104 
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1 Stat. 2832) is amended by striking ‘‘Chief Counsel for Ad2 vocacy’’ and inserting ‘‘Administrator’’. 

3 (b) SMALL BUSINESS AND AGRICULTURE REGU4 LATORY ENFORCEMENT OMBUDSMAN.—Section 30(b)(2) 

5 of the Small Business Act (15 U.S.C. 657(b)(2)) is 

6 amended—

7 (1) in subparagraph (D), by striking ‘‘and’’ at 

8 the end; 

9 (2) in subparagraph (E), by striking the period 

10 and inserting ‘‘; and’’; and 

11 (3) by adding at the end the following: 

12 ‘‘(F) maintain a memorandum of under13 standing with the Office of Advocacy regarding 

14 methods and procedures for cooperation be15 tween the Ombudsman and the Office of Advo16 cacy.’’.
Union Calendar No. 80

108TH CONGRESS 

1ST SESSION H. R. 1772

[Report No. 108–162] 

A BILL

To improve small business advocacy, and for other 

purposes 

JUNE 18, 2003

Reported with an amendments, committed to the Committee of the Whole House on State of the Union, and 

ordered to be printed