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SECTION 1. SHORT TITLE.

This Act may be cited as the ''Small Business Advocacy Improvement
Act of 2002''.

SEC. 2. FINDINGS AND PURPOSES.

(a) Findings.--Congress finds the following:
(1) Excessive regulations continue to burden the Nation's
small businesses.
(2) Federal agencies continue to propose regulations that
impose disproportionate burdens on small businesses.
(3) An independent office of small business advocacy will
help to ensure that Federal agencies are responsive to small
businesses and that those agencies comply with their statutory
obligations with respect to small businesses.
(4) The independence of an office that acts as an advocate
for small businesses is essential to ensure that it can serve
as an effective advocate without being restricted by the views
or policies of the Small Business Administration or any other
Federal executive branch agency.
(5) To be effective an office that acts as an advocate for
small businesses needs sufficient resources to conduct
creditable economic studies and research which are necessary
for the maintenance of small business databases and for the
accurate assessment of the impact of regulations on small
businesses, the role of small business in the Nation's economy,
and the barriers to the growth of small businesses.
(6) The research, information, and expertise provided by an
independent office of small business advocacy will be a
valuable source of information and advice for Congress and
Federal agencies with which the office will work on behalf of
small businesses.
(b) Purposes.--The purposes of this Act are--
(1) to ensure that there exists an entity that has the
statutory independence and adequate financial resources to
effectively advocate for and on behalf of small business;
(2) to require that such an entity report to the Chairmen
and Ranking Members of the Committee on Small Business of the
House of Representatives and the Committee on Small Business
and Entrepreneurship of the Senate, and to the Administrator of
the Small Business Administration in order to keep them fully
and currently informed about issues and regulations affecting
small business concerns and the necessity for corrective action
by the regulatory agency or Congress;
(3) to provide a separate authorization for appropriations
for such an entity; and
(4) to strengthen the role of the Small Business and
Agriculture Regulatory Enforcement Ombudsman by ensuring
greater cooperation between the Ombudsman and the Office of
Advocacy of the Small Business Administration.

SEC. 3. APPOINTMENT OF CHIEF COUNSEL OF ADVOCACY.

(a) In General.--Section 201 of Public Law 94-305 (15 U.S.C. 634a)
is amended--
(1) by inserting ''(a)'' before ''There is established'';
(2) by striking the second sentence; and
(3) by adding at the end the following:
''(b) 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, and who
should be appointed without regard to political affiliation and on the
basis of fitness to perform the duties of the office.
''(c) No individual may be appointed under subsection (b) if such
individual has served as an officer or employee of the Small Business
Administration during the 5-year period preceding the date of such
individual's appointment.
''(d) Any Chief Counsel appointed after the date of the enactment
of this subsection shall be paid at a rate not to exceed the rate of
basic pay for level III of the Executive Schedule.
''(e) After the expiration of the term of a President, the Chief
Counsel may continue to serve at the pleasure of the President for a
period of not to exceed one year until such date as a successor to the
Chief Counsel is nominated.''.
(b) Incumbent Chief Counsel for Advocacy.--The individual serving
as the Chief Counsel for Advocacy of the Small Business Administration
on the date of the enactment of this Act shall continue to serve in
that position after such date in accordance with section 201 of Public
Law 94-305 (15 U.S.C. 634a), as amended by this section.

SEC. 4. PRIMARY FUNCTIONS OF OFFICE OF ADVOCACY.

Section 202 of Public Law 94-305 (15 U.S.C. 634b) is amended--
(1) in paragraph (6) by striking ''to minority
enterprises'' and inserting ''to small business concerns owned
and controlled by socially and economically disadvantaged
individuals, to small business concerns owned and controlled by
women, and to small business concerns owned and controlled by
veterans'';
(2) in paragraph (7) by striking ''minority enterprises''
and inserting ''small business concerns owned and controlled by
socially and economically disadvantaged individuals, small
business concerns owned and controlled by women, and small
business concerns owned and controlled by veterans'';
(3) in paragraph (8) by striking ''minority and other small
business enterprises'' and inserting ''small business concerns
owned and controlled by socially and economically disadvantaged
individuals, small business concerns owned and controlled by
women, small business concerns owned and controlled by
veterans, and other small businesses'';
(4) in paragraph (9) by striking ''complete'' and inserting
''compete'';
(5) by striking paragraph (11);
(6) by redesignating paragraph (12) as paragraph (11);
(7) in paragraph (11) (as so redesignated)--
(A) by striking ''serviced-disabled'' and inserting
''service-disabled''; and
(B) by striking the period at the end and inserting
''; and''; and
(8) by adding at the end the following:
''(12) make such recommendations and submit such reports as
the Chief Counsel determines appropriate to the President, to
the Chairmen and Ranking Members of the Committee on Small
Business of the House of Representatives and the Committee on
Small Business and Entrepreneurship of the Senate, and to the
Administrator of the Small Business Administration, with
respect to issues and regulations affecting small businesses
and the necessity for corrective action by any Federal agency
or by Congress.''.

SEC. 5. ADDITIONAL FUNCTIONS.

(a) In General.--Section 203 of Public Law 94-305 (15 U.S.C. 634c)
is amended--
(1) by inserting ''(a)'' before ''The Office of Advocacy
shall also perform''; and
(2) in subsection (a) (as so designated)--
(A) in paragraph (4) by striking ''and'' at the
end;
(B) in paragraph (5) by striking the period at the
end and inserting a semicolon; and
(C) by adding at the end the following:
''(6) maintain economic databases and make the information
contained therein available to the Administrator of the Small
Business Administration and to Congress;
''(7) carry out the responsibilities of the Chief Counsel
under chapter 6 of title 5, United States Code; and
''(8) enter into a memorandum of understanding with the
Small Business and Agriculture Regulatory Enforcement Ombudsman
regarding methods and procedures for cooperation between the
Ombudsman and the Office of Advocacy and transmit a copy of
such memorandum to the Committee on Small Business of the House
of Representatives and the Committee on Small Business and
Entrepreneurship of the Senate.''.
(b) Appropriation Request.--Section 203 of Public Law 94-305 (15
U.S.C. 634c) is further amended by adding at the end the following:
''(b)(1) For each fiscal year, the Chief Counsel shall transmit the
Office of Advocacy's appropriation estimate and request to the Office
of Management and Budget, the Committee on Small Business of the House
of Representatives, the Committee on Small Business and
Entrepreneurship of the Senate, and the Committees on Appropriations of
the House of Representatives and the Senate.
''(2) Each budget of the United States Government submitted by the
President shall include a separate statement of the amount of
appropriations requested for the Office of Advocacy.''.

SEC. 6. DEPUTY CHIEF COUNSELS AND REGIONAL ADVOCATES.

Section 204 of Public Law 94-305 (15 U.S.C. 634d) is amended--
(1) by inserting ''(a)'' before ''In carrying out''; and
(2) by adding at the end the following:
''(b)(1) The Chief Counsel may appoint 2 individuals to serve as
Deputy Chief Counsels.
''(2) Notwithstanding any other provision of this section, the pay
rate for each Deputy Chief Counsel may not exceed the rate of basic pay
for level III of the Senior Executive Service.
''(3) Individuals appointed to positions under this subsection
shall not be counted toward the limitation contained in subsection
(a)(1) regarding the number of individuals who may be compensated at a
rate in excess of the lowest rate for GS-15 of the General Schedule.
''(c) The Chief Counsel may appoint regional advocates within each
Standard Federal Region as appropriate. Such regional advocates shall--
''(1) assist in examining the role of small business in the
economy of the United States by identifying academic and other
research institutions that focus on small business concerns and
linking these research resources to research activities
conducted by the Office of Advocacy;
''(2) assist in representing the views and interests of
small business concerns before Federal agencies whose policies
and activities may affect small business;
''(3) in coordination with the Small Business and
Agriculture Regulatory Enforcement Ombudsman, assist the
functioning of regional small business fairness boards;
''(4) assist in enlisting 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 business concerns and the means by which small
business concerns can participate in or make use of such
programs and services; and
''(5) carry out such duties pursuant to the mission of the
Office of Advocacy as the Chief Counsel may assign.''.

SEC. 7. OVERHEAD AND ADMINISTRATIVE SUPPORT.

Section 205 of Public Law 94-305 (15 U.S.C. 634e) is amended by
inserting before ''Each department'' the following:
''(a) 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 of the Administration,
together with such equipment, office supplies, communications
facilities, and personnel and maintenance services as may be necessary
for the operation of such offices.
''(b)''.

SEC. 8. REPORTS.

Section 206 of Public Law 94-305 (15 U.S.C. 634f) is amended by
striking ''The Chief Counsel may'' and all that follows through ''on
his activities.'' and inserting the following:
''(a) Not less than annually, the Chief Counsel shall submit to the
President, the Committee on Small Business of the House of
Representatives, the Committee on Small Business and Entrepreneurship
of the Senate, the Committee on Government 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, and the Administrator of the Small Business
Administration a report on agency compliance with chapter 6 of title 5,
United States Code.
''(b) In addition to the reports required by this title, the Chief
Counsel may prepare and publish such other reports as the Chief Counsel
determines appropriate.
''(c)''.

SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

Section 207 of Public Law 94-305 (15 U.S.C. 634g) is amended by
striking ''not to exceed $1,000,000'' and inserting ''$10,000,000 for
fiscal year 2003, $12,000,000 for fiscal year 2004, and $14,000,000 for
fiscal year 2005''.

SEC. 10. CONFORMING AMENDMENTS.

(a) Executive Pay Schedule.--Title 5, United States Code, is
amended--
(1) in section 5314 by adding at the end the following:
''Chief Counsel for Advocacy, Small Business
Administration.''; and
(2) in section 5315 by striking the following:
''Chief Counsel for Advocacy, Small Business
Administration.''.
(b) Rural Tourism Training Program.--Section 311 of the Small
Business Administration Reauthorization and Amendments Act of 1990 (15
U.S.C. 653 note; 104 Stat. 2832) is amended by striking ''Chief Counsel
for Advocacy'' and inserting ''Administrator''.
(c) Small Business and Agriculture Regulatory Enforcement
Ombudsman.--Section 30(b)(2) of the Small Business Act (15 U.S.C.
657(b)(2)) is amended--
(1) in subparagraph (D), by striking ''and'' at the end;
(2) in subparagraph (E), by striking the period and
inserting ''; and''; and
(3) by adding at the end the following:
''(F) enter into a memorandum of understanding with
the Office of Advocacy regarding methods and procedures
for cooperation between the Ombudsman and the Office of
Advocacy.''.

Passed the House of Representatives May 21, 2002.

Attest:

JEFF TRANDAHL,

Clerk.
Small Business Advocacy Improvement Act of 2002 - Requires appointment to the position of Chief Counsel of the Office of Advocacy of the Small Business Administration (SBA) without regard to political affiliation and on the basis of fitness to perform duties. Prohibits appointment of an individual who has served as an SBA officer or employee within the last five years.Requires the Office to: (1) recommend methods for the delivery of financial assistance to small businesses owned and controlled by socially and economically disadvantaged individuals, women, and veterans; (2) make recommendations and submit relevant reports to the President, the chairmen and ranking members of the congressional small business committees, and the SBA Administrator; (3) maintain economic databases and make such information available to the Administrator and Congress; and (4) coordinate functions with the Small Business and Agriculture Regulatory Enforcement Ombudsman.Requires the Chief Counsel to submit annually to the Office of Management and Budget and the congressional small business and appropriations committees the Office's appropriation estimate and request. Requires each budget of the United States submitted by the President to include a separate statement of the amount of appropriations requested for the Office of Advocacy.Authorizes the Chief Counsel to appoint two Deputy Chief Counsels, as well as regional advocates.Requires the Administrator to provide the Office with appropriate office space, equipment, supplies, communications facilities, and personnel and maintenance services.Requires the Chief Counsel to report at least annually to the President, specified congressional committees, and the Administrator on Federal agency regulatory flexibility exercised with respect to small businesses.Increases, and extends through FY 2005, the authorization of appropriations for the Office.Requires the Administrator (currently, the Chief Counsel) to conduct an SBA program for the development of rural small businesses engaged in tourism-related activities.