114 S2812 IS: SBIR and STTR Reauthorization and Improvement Act of 2016
U.S. Senate
2016-04-18
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
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This Act may be cited as the SBIR and STTR Reauthorization and Improvement Act of 2016
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2.The table of contents for this Act is as follows:Sec. 1. Short title. Sec. 2. Table of contents. TITLE I—Reauthorization of programs Sec. 101. Permanency of SBIR program and STTR program. TITLE II—Enhanced small business access to Federal innovation investments Sec. 201. Allocation increases and transparency in base calculation. Sec. 202. Regular oversight of award amounts. TITLE III—Commercialization improvements Sec. 301. Permanency of the commercialization pilot program for civilian agencies. Sec. 302. Enforcement of national small business goal for Federal research and development. Sec. 303. Tracking rapid innovation fund awards in annual congressional report. Sec. 304. Intellectual property protection for technology development. Sec. 305. Annual GAO audit of compliance with commercialization goals. Sec. 306. Clarifying the Phase III preference. Sec. 307. Improvements to technical and business assistance. TITLE IV—Program diversification initiatives Sec. 401. Regional SBIR State collaborative initiative pilot program. Sec. 402. Federal and State Technology Partnership Program. TITLE V—Oversight and simplification initiatives Sec. 501. Data modernization summit. Sec. 502. Implementation of outstanding reauthorization provisions. Sec. 503. Strengthening of the requirement to shorten the application review and decision time. Sec. 504. Continued GAO oversight of allocation compliance and accuracy in funding base calculations. TITLE VI—Technical changes Sec. 601. Uniform reference to the Department of Health and Human Services. Sec. 602. Flexibility for Phase II award invitations. <enum>I</enum><header>Reauthorization of programs</header> <section id="id90592F3FDBCB47158005F087AD6F9E7D"><enum>101.</enum><header>Permanency of SBIR program and STTR program</header> <subsection id="id1220B431CA2C4B30997DFA01D82C7A40"><enum>(a)</enum><header>SBIR</header><text>Section 9(m) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(m)</external-xref>) is amended—</text>
<paragraph id="id5389BBDA3B24461EB06AEF0BF0CA76B3"><enum>(1)</enum><text>in the subsection heading, by striking <quote><header-in-text level="subsection" style="OLC">Termination</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">SBIR program authorization</header-in-text></quote>; and</text> </paragraph><paragraph id="id0AE7382C0D224B36BC3C2BD994E37944"><enum>(2)</enum><text>by striking <quote>terminate on September 30, 2017</quote> and inserting <quote>be in effect for each fiscal year</quote>.</text>
</paragraph></subsection><subsection id="id433D95285AE74FF4A9DACE56EFDD3AA1"><enum>(b)</enum><header>STTR</header><text>Section 9(n)(1)(A) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(n)(1)(A)</external-xref>) is amended by striking <quote>through fiscal year 2017</quote>.</text> </subsection></section><enum>II</enum><header>Enhanced small business access to Federal innovation investments</header> <section id="id0EC32FD573C34555A6F3660BCBB2BD3E"><enum>201.</enum><header>Allocation increases and transparency in base calculation</header> <subsection id="id4D30556ED5274BB59427A7BDFAB88D79"><enum>(a)</enum><header>SBIR</header><text>Section 9(f) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(f)</external-xref>) is amended—</text>
<paragraph id="idE54F18897D1D48A891170848D0465BA8"><enum>(1)</enum><text>in paragraph (1)—</text> <subparagraph id="id2EDCF097E2984C5E8676F9EDCC81D4E8"><enum>(A)</enum><text>in the matter preceding subparagraph (A), by striking <quote>expend</quote> and inserting <quote>obligate for expenditure</quote>;</text>
</subparagraph><subparagraph id="idA2F8FDD3515F458D94279D8514F906E1"><enum>(B)</enum><text>in subparagraph (H), by striking <quote>and</quote> at the end;</text> </subparagraph><subparagraph id="id62644B3C2D444E89B9A99F7B2FA6AF20"><enum>(C)</enum><text>in subparagraph (I), by striking <quote>and each fiscal year thereafter,</quote> and inserting a semicolon; and</text>
</subparagraph><subparagraph id="idAE5FBE05204E4719B8F9A0EF3B2B7802"><enum>(D)</enum><text>by inserting after subparagraph (I) the following:</text> <quoted-block display-inline="no-display-inline" id="id8ED883FB79B74BBBB5854D99B5CA460B" style="OLC"> <subparagraph id="id5F51AA34620145889CA19A672FCE47BA"><enum>(J)</enum><text>for a Federal agency other than the Department of Defense—</text>
<clause id="id8B78EF1444A345418D068BAE5B1E1935"><enum>(i)</enum><text>not less than 3.5 percent of the extramural budget for research or research and development of the Federal agency in each of fiscal years 2018 and 2019;</text>
</clause><clause id="idA632FE7DAC7941AB8358FDA740D99FB1"><enum>(ii)</enum><text>not less than 4 percent of such extramural in each of fiscal years 2020 and 2021;</text>
</clause><clause id="idA750CD78EDCD41C9AB110CBB8E15C0C4"><enum>(iii)</enum><text>not less than 4.5 percent of such extramural in each of fiscal years 2022 and 2023;</text>
</clause><clause id="id511328C752134E039A69323FECAAC0D7"><enum>(iv)</enum><text>not less than 5 percent of such extramural in each of fiscal years 2024 and 2025;</text>
</clause><clause id="id333EFB0F29E2443C818DF9906294125B"><enum>(v)</enum><text>not less than 5.5 percent of such extramural in each of fiscal years 2026 and 2027; and</text>
</clause><clause id="id864403FF9E4E4F8D93EF1B2C46A6B0C2"><enum>(vi)</enum><text>not less than 6 percent of such extramural in fiscal year 2028 and each fiscal year thereafter; and</text>
</clause></subparagraph><subparagraph id="id5E4E5DC0374241859CF93BAA35ADA228"><enum>(K)</enum><text>for the Department of Defense—</text> <clause id="id296FF471ACEE46F5A7FF7591273E732B"><enum>(i)</enum><text>not less than 2.5 percent of the budget for research and development of the Department of Defense in each of fiscal years 2018 and 2019;</text>
</clause><clause id="idB35D5BCA7AA848F7A3DDF2E900D6E621"><enum>(ii)</enum><text>not less than 3 percent of such budget in each of fiscal years 2020 and 2021;</text> </clause><clause id="id8D90E9B166ED47D8A7F36742DEA86D33"><enum>(iii)</enum><text>not less than 3.5 percent of such budget in each of fiscal years 2022 and 2023;</text>
</clause><clause id="id07A27BD54DA94813AD1BF396B8FA1071"><enum>(iv)</enum><text>not less than 4 percent of such budget in each of fiscal years 2024 and 2025;</text> </clause><clause id="idAB50CB6D54AB439EAE130B67E17E2708"><enum>(v)</enum><text>not less than 4.5 percent of such budget in each of fiscal years 2026 and 2027; and</text>
</clause><clause id="id29A2A1C21BE843EBBDD304B7FBA61D2C"><enum>(vi)</enum><text>not less than 5 percent of such budget in fiscal year 2028 and each fiscal year thereafter,</text></clause></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id478203315C134DE29A42B584A6E184C8"><enum>(2)</enum><text>in paragraph (2)(B), by inserting <quote>(or for the Department of Defense, an amount of the budget for basic research of the Department of Defense)</quote> after <quote>research</quote>; and</text>
</paragraph><paragraph id="idBEF743CE16494D66832B28BF9B2E30F7"><enum>(3)</enum><text>in paragraph (4), by inserting <quote>(or for the Department of Defense an amount of the budget for research of the Department of Defense)</quote> after <quote>of the agency</quote>.</text>
</paragraph></subsection><subsection id="idF4C558B4C1904926AB9051EC6959FA52"><enum>(b)</enum><header>STTR</header><text>Section 9(n)(1) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(n)(1)</external-xref>) is amended—</text> <paragraph id="id24578AB7E6CB4FEE90715FB57114C4E3"><enum>(1)</enum><text>in subparagraph (A)—</text>
<subparagraph id="id9407EBF92BB34CE49CC369415127DB1E"><enum>(A)</enum><text>by striking <quote>expend</quote> and inserting <quote>obligate for expenditure</quote>; and</text> </subparagraph><subparagraph id="idE4455EB094CB4A74AC759E1BB0668680"><enum>(B)</enum><text>by striking <quote>not less than the percentage of that extramural budget specified in subparagraph (B)</quote> and inserting <quote>for a Federal agency other than the Department of Defense, not less than the percentage of that extramural budget specified in subparagraph (B) and, for the Department of Defense, not less than the percentage of the budget for research and development of the Department of Defense specified in subparagraph (B)</quote>; and</text>
</subparagraph></paragraph><paragraph id="id618C710B414A45DF89078F0E1F520844"><enum>(2)</enum><text>in subparagraph (B)—</text> <subparagraph id="id25828C66244A40E8AB73233E14170E71"><enum>(A)</enum><text>in the matter preceding clause (i), by striking <quote>the extramural budget required to be expended by an agency</quote> and inserting <quote>the extramural budget, for a Federal agency other than the Department of Defense, and of the budget for research and development, for the Department of Defense, required to be obligated for expenditure with small business concerns</quote>;</text>
</subparagraph><subparagraph id="idD4DAE854BAC245B0B1174C8F46F29791"><enum>(B)</enum><text>in clause (iv), by striking <quote>and</quote> at the end;</text> </subparagraph><subparagraph id="id68E02FA058F24F0FB6E52AAD9B426116"><enum>(C)</enum><text>in clause (v), by striking <quote>fiscal year 2016 and each fiscal year thereafter.</quote> and inserting <quote>each of fiscal years 2016 and 2017;</quote>; and</text>
</subparagraph><subparagraph id="idEF95A4AF30F849C68EC32BB1C06D070E"><enum>(D)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id3E1AAC865A854ED79620C3BF19880FB2" style="OLC"> <clause id="idac8363ced1c34f0ab53deacc99b214f2"><enum>(vi)</enum><text>0.55 percent for each of fiscal years 2018 and 2019;</text>
</clause><clause id="idd000fc001a264e4ebd89dd4dccc6d4c8"><enum>(vii)</enum><text>0.65 percent for each of fiscal years 2020 and 2021;</text> </clause><clause id="id8cb74e10c41942e3b5b7cf70ec5d58b6"><enum>(viii)</enum><text>0.75 percent for each of fiscal years 2022 and 2023; and</text>
</clause><clause id="id8D1D7CB37F1041269458775DA613455D"><enum>(ix)</enum><text>1 percent for fiscal year 2024 and each fiscal year thereafter.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph></subsection></section><section id="id9353202263F4483383374AD7D0416799"><enum>202.</enum><header>Regular oversight of award amounts</header> <subsection id="id21E331FD4CFF4B27BA45FF469365B609"><enum>(a)</enum><header>Elimination of automatic inflation adjustments</header><text>Section 9(j) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(j)</external-xref>) is amended—</text>
<paragraph id="id5697DB44B3A44AAB90A304BBCF5E4492"><enum>(1)</enum><text>in paragraph (2)(D), by inserting <quote>through fiscal year 2016</quote> after <quote>every year</quote>; and</text> </paragraph><paragraph id="id17A7C810DA584FD3BC68044765C4EC1A"><enum>(2)</enum><text>by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idD56C817BA6544EEC94180A906A06DBED" style="OLC">
<paragraph id="id87427DA198BD4D499B2C191D68F466D3"><enum>(4)</enum><header>2016 modifications for dollar value of awards</header><text>Not later than 120 days after the date of enactment of the <short-title>SBIR and STTR Reauthorization and Improvement Act of 2016</short-title>, the Administrator shall modify the policy directives issued under this subsection to—</text> <subparagraph id="idb96efd1924a34ca590e85dea544a08c9"><enum>(A)</enum><text>eliminate the annual adjustments for inflation of the dollar value of awards described in paragraph (2)(D); and</text>
</subparagraph><subparagraph id="id497C79FE25C948DAA8205C4B88756134"><enum>(B)</enum><text>clarify that Congress intends to review the dollar value of awards every 3 fiscal years.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id80EC75C746D24FDFAE7FB097E5E9B783"><enum>(b)</enum><header display-inline="yes-display-inline">Sense of Congress regarding regular review of the award sizes</header><text display-inline="yes-display-inline">It is the sense of Congress that for fiscal year 2019, and every third fiscal year thereafter, Congress should evaluate whether the maximum award sizes under the Small Business Innovation Research Program under section 9 of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638</external-xref>) should be adjusted and, if so, take appropriate action to direct that such adjustments be made under the policy directives issued under subsection (j) of such section.</text>
</subsection><subsection id="id1D0C6A5A04034B16B6DFB1C724487063"><enum>(c)</enum><header>Clarification of sequential Phase II awards</header><text>Section 9(ff) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(ff)</external-xref>) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id1B711747F51445828124B7DAE7805727" style="OLC">
<paragraph id="id6CC8454D079E4B60A394A92A06BB0F9C"><enum>(3)</enum><header>Clarification of sequential Phase II awards</header><text>The head of a Federal agency shall ensure that any sequential Phase II award is made in accordance with the limitations on award sizes under subsection (aa).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><enum>III</enum><header>Commercialization improvements</header>
<section id="id7b23c3ef91f942f4b8f6a75357ad99e4"><enum>301.</enum><header>Permanency of the commercialization pilot program for civilian agencies</header><text display-inline="no-display-inline">Section 9(gg) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(gg)</external-xref>) is amended—</text> <paragraph id="id5E4842CFF15448AEB637732B2A3E6651"><enum>(1)</enum><text>in the subsection heading, by striking <quote><header-in-text level="subsection" style="OLC">Pilot Program</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">Commercialization development awards</header-in-text></quote>;</text>
</paragraph><paragraph id="idFD51178274AA4218BCD22A62FDCCEE49"><enum>(2)</enum><text>by striking paragraphs (2), (7), and (8);</text> </paragraph><paragraph id="idB63374B0CF6C4CB59DD3294E08BFD3B2"><enum>(3)</enum><text>by redesignating paragraphs (3), (4), (5), and (6) as paragraphs (2), (3), (4), and (5), respectively;</text>
</paragraph><paragraph id="id5C5E9420F08E4D5C86EAB3BB301BB7E6"><enum>(4)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="idAE6A3CC1FBC14DE3BFD9AFF4D7584644" style="OLC"> <paragraph id="idDB6DA86CAF9F454382DD00D54588CA3F"><enum>(6)</enum><header>Definitions</header><text>In this subsection—</text>
<subparagraph id="id2EA1ED5A105C4FEBA9E0DC5101D5CCCF"><enum>(A)</enum><text>the term <term>commercialization development program</term> means a program established by a covered Federal agency under paragraph (1); and</text> </subparagraph><subparagraph id="idA7124B6F62E54AD6AECBC66E0B121687"><enum>(B)</enum><text>the term <term>covered Federal agency</term>—</text>
<clause id="IDB20984ECF5554C31B8ACA2BC8745FF22"><enum>(i)</enum><text>means a Federal agency participating in the SBIR program or the STTR program; and</text> </clause><clause id="ID5C5B48AE6A3E4D7C8E4AF4679C41B47C"><enum>(ii)</enum><text>does not include the Department of Defense.</text></clause></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idD20E9773EA414CF5AC040C20346B1ABC"><enum>(5)</enum><text>by striking <quote>pilot program</quote> each place it appears and inserting <quote>commercialization development program</quote>.</text> </paragraph></section><section id="id4e91839f83c24af1873cf0528fbbc5a7"><enum>302.</enum><header>Enforcement of national small business goal for Federal research and development</header><text display-inline="no-display-inline">Section 9(h) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(h)</external-xref>) is amended by inserting <quote>, which may not be less than 10 percent for fiscal year 2018, and each fiscal year thereafter, </quote> after <quote>shall establish goals</quote>.</text>
</section><section id="id391fbd773c6f4879bc05f4c5dcae7f98"><enum>303.</enum><header>Tracking rapid innovation fund awards in annual congressional report</header><text display-inline="no-display-inline">Section 9(b)(7) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(b)(7)</external-xref>) is amended—</text> <paragraph id="idB08B035FFCA74F6F8979002D59CDDC4D"><enum>(1)</enum><text display-inline="yes-display-inline">in subparagraph (F), by striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="id4FB06B7E31C34CD5849BBE3AA0DEF91C"><enum>(2)</enum><text display-inline="yes-display-inline">in subparagraph (G), by striking the period at the end and inserting <quote>; and</quote>; and</text> </paragraph><paragraph id="id1A28629C71E2482EAD2C2EB04DE6CD3A"><enum>(3)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idB9729A1EF0EE40D8884BB1EAF9D095D5" style="OLC">
<subparagraph id="id71A99516E4744D0BBA3614EC616C6D1D"><enum>(H)</enum><text>information regarding awards under the Rapid Innovation Program under section 1073 of the Ike Skelton National Defense Authorization Act for Fiscal Year 2011 (<external-xref legal-doc="public-law" parsable-cite="pl/111/383">Public Law 111–383</external-xref>; 124 Stat. 4366; <external-xref legal-doc="usc" parsable-cite="usc/10/2359">10 U.S.C. 2359</external-xref> note), including—</text>
<clause id="id35645412886B4492B637E253229824BE"><enum>(i)</enum><text>the number and dollar amount of awards made under the Rapid Innovation Program to business concerns receiving an award under the SBIR program or the STTR program;</text>
</clause><clause id="id5DDBEB574462450AB1E485ABA53CDFE3"><enum>(ii)</enum><text>the proportion of awards under the Rapid Innovation Program made to business concerns receiving an award under the SBIR program or the STTR program;</text>
</clause><clause id="idCFA93C165F7243ACB87FBE5DB6FD86D9"><enum>(iii)</enum><text>the proportion of awards under the Rapid Innovation Program made to small business concerns; and</text> </clause><clause commented="no" id="idE7C13EA41F90455FAB4AE81F52C035E9"><enum>(iv)</enum><text>a projection of the effect on the number of awards under the Rapid Innovation Program if amounts to carry out the program were made available as a fixed allocation of the amount appropriated to the Department of Defense for research, development, test, and evaluation, excluding amounts appropriated for the defense universities;</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="id3DB50F8BAE2E4ECCBCE58E51991A459F"><enum>304.</enum><header>Intellectual property protection for technology development</header>
<text display-inline="no-display-inline">Section 9 of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638</external-xref>) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id48ABCBE224674D89A57B61E2CACBE0B6" style="OLC">
<subsection id="id192013D210A94FAD838E153B1A5CCE72"><enum>(tt)</enum><header>Intellectual property protections</header>
<paragraph id="idE83ADA3DE3DD4198BED092C91B56D7ED"><enum>(1)</enum><header>In general</header><text>Subject to paragraph (2)(B), the cost of seeking protection for intellectual property, including a trademark, copyright, or patent, that was created through work performed under an SBIR or STTR award is allowable as an indirect cost under that award.</text>
</paragraph><paragraph id="idA48266E61EA54C8FA88274D8577BAD61"><enum>(2)</enum><header>Clarification of patent costs</header>
<subparagraph id="id4E285B3746E344C695CF9446FF20A5F3"><enum>(A)</enum><header>In general</header><text>A Federal agency shall not directly or indirectly inhibit, through the policies, directives, or practices of the Federal agency, an otherwise eligible small business concern performing under an SBIR or STTR award from recovering patent costs incurred as requirements under that award, including—</text>
<clause id="idE23CD18B5CEA4E169FF47EEFA565E18D"><enum>(i)</enum><text>the costs of preparing—</text> <subclause id="id96CB3DC1B9A6421A84CFB19CAA180551"><enum>(I)</enum><text>invention disclosures;</text>
</subclause><subclause id="idED18607E0E0349128A97286254853390"><enum>(II)</enum><text>reports; and</text> </subclause><subclause id="id73656C8023D04AEA891E15DE006E4CE2"><enum>(III)</enum><text>other documents;</text>
</subclause></clause><clause id="idF8709B4CB4B248FAAD1ABEC9E4CEA5DC"><enum>(ii)</enum><text>the costs for searching the art to the extent necessary to make the invention disclosures;</text> </clause><clause id="idF0376FA12C274CE29393319951253512"><enum>(iii)</enum><text>other costs in connection with the filing and prosecution of a United States patent application where title or royalty-free license is to be conveyed to the Federal Government; and</text>
</clause><clause id="id5954752062AA423F80DF18F489A15E05"><enum>(iv)</enum><text>general counseling services relating to patent matters, including advice on patent laws, regulations, clauses, and employee agreements.</text>
</clause></subparagraph><subparagraph id="idBA2BDB1686D445DDA3502607CF0238BF"><enum>(B)</enum><header>Recovery limitations</header><text>After consultation with contracting or auditing authorities, the patent costs described in subparagraph (A) shall be allowable for technology developed under a—</text>
<clause id="idD263D1F81CD84B788F8D503DB6C5FD04"><enum>(i)</enum><text>Phase I award, as indirect costs in an amount not greater than $5,000;</text> </clause><clause id="idF56E1059F80C4657B40E61EDAB08DBFC"><enum>(ii)</enum><text>Phase II award, as indirect costs in an amount not greater than $15,000; and</text>
</clause><clause id="id5F4D6A5E18F04CBA9607A67FAEE56FE2"><enum>(iii)</enum><text>Phase III award in which the Federal Government has government purpose rights (as defined in section 227.7103–5 of title 48, Code of Federal Regulations).</text></clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="id7781631bf96c4af8a1bcb6033b636b2a"><enum>305.</enum><header>Annual GAO audit of compliance with commercialization goals</header><text display-inline="no-display-inline">Section 9(nn) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(nn)</external-xref>) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="idB894CD926DF5478F90E0395C77AD3759" style="OLC"> <subsection id="id1625708154D9487F9097F3F5C84B5A31"><enum>(nn)</enum><header>Annual GAO report on Government compliance with goals, incentives, and Phase III preference</header><text>Not later than 1 year after the date of enactment of the <short-title>SBIR and STTR Reauthorization and Improvement Act of 2016</short-title>, and every year thereafter until the date that is 5 years after the date of enactment of the <short-title>SBIR and STTR Reauthorization and Improvement Act of 2016</short-title>, the Comptroller General of the United States shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report that—</text>
<paragraph id="id28a67f5bd681455a9d68c0b467bb5de8"><enum>(1)</enum><text>discusses the status of the compliance of Federal agencies with the requirements or authorities established under—</text>
<subparagraph id="id5080d01e6131493686423d6732191293"><enum>(A)</enum><text>subsection (h), relating to the establishment by certain Federal agencies of a goal for funding agreements for research and research and development with small business concerns;</text>
</subparagraph><subparagraph id="id7793859b8ef84f97901f68799df5c36b"><enum>(B)</enum><text>subsection (y)(5)(A), relating to the requirement for the Department of Defense to establish goals for the transition of Phase III technologies in subcontracting plans;</text>
</subparagraph><subparagraph id="id4d9b0bff686a488cb0f90a919afa57ae"><enum>(C)</enum><text>subsection (y)(5)(B), relating to the requirement for the Department of Defense to establish procedures for a prime contractor to report the number and dollar amount of contracts with small business concerns for Phase III SBIR projects or STTR projects of the prime contractor; and</text>
</subparagraph><subparagraph id="id8c911726417a49aaaa33fcd25482960f"><enum>(D)</enum><text>subsection (y)(6), relating to the requirement for the Department of Defense to set a goal to increase the number of Phase II SBIR and STTR contracts that transition into programs of record or fielded systems;</text>
</subparagraph></paragraph><paragraph id="id1a51b2a3ffeb46008b983416dc93656b"><enum>(2)</enum><text>includes, for a Federal agency that is in compliance with a requirement described under paragraph (1), a description of how the Federal agency achieved compliance; and</text>
</paragraph><paragraph id="id8721201def524bb784d6e8ab14560819"><enum>(3)</enum><text>includes a list, organized by Federal agency, of small business concerns that have asserted that—</text> <subparagraph id="id9186218EACBD4788ABC527C90D028DCF"><enum>(A)</enum><text>technology of the small business concern was stolen by the Government or a prime contractor; or</text>
</subparagraph><subparagraph id="idAACBF883095548BDB961722B6C57A0BE"><enum>(B)</enum><text>the Federal agency solicited bids for a contract that was for work that derived from, extended, or completed efforts made under prior funding agreements under the SBIR program or STTR program.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="idF52EE83F6CE441C38DEB9DC2E57F7CD0"><enum>306.</enum><header>Clarifying the Phase III preference</header><text display-inline="no-display-inline">Section 9(r) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(r)</external-xref>) is amended—</text> <paragraph id="idF7C5721896534CD0BBA76E47E73044C4"><enum>(1)</enum><text display-inline="yes-display-inline">by striking paragraph (4);</text>
</paragraph><paragraph id="id7CF70BF68BC74482837E94558942B391"><enum>(2)</enum><text>by redesignating paragraph (2) as paragraph (4), and transferring such paragraph to after paragraph (3); and</text>
</paragraph><paragraph id="id5BC878873B1743A2ACB7E589E3A0A2C3"><enum>(3)</enum><text>by inserting after paragraph (1) the following:</text> <quoted-block display-inline="no-display-inline" id="idDB4F23C5D79641B2BDA6B8F1CB1088A2" style="OLC"> <paragraph id="id4d53f96d5af247ca8655eaebb73f3ce0"><enum>(2)</enum><header>Phase III award direction for agencies and prime contractors</header><text>To the greatest extent practicable, Federal agencies and Federal prime contractors shall issue Phase III awards relating to technology, including sole source awards and awards under the Defense Research and Development Rapid Innovation Program under section 1073 of the Ike Skelton National Defense Authorization Act for Fiscal Year 2011 (<external-xref legal-doc="public-law" parsable-cite="pl/111/383">Public Law 111–383</external-xref>; 124 Stat. 4366; <external-xref legal-doc="usc" parsable-cite="usc/10/2359">10 U.S.C. 2359</external-xref> note), to the SBIR and STTR award recipients that developed the technology.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="idC0D30996B8D24CBDB979062A3B7EC8B6"><enum>307.</enum><header>Improvements to technical and business assistance</header>
<text display-inline="no-display-inline">Section 9(q) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(q)</external-xref>) is amended—</text> <paragraph id="id63095133E1B04907BD88D58881886A8D"><enum>(1)</enum><text>in the subsection heading, by inserting <quote><header-in-text level="subsection" style="OLC">and business</header-in-text></quote> after <quote><header-in-text level="subsection" style="OLC">technical</header-in-text></quote>;</text>
</paragraph><paragraph id="id46B59EAFD9764F98BEDEED651363727F"><enum>(2)</enum><text>in paragraph (1)—</text> <subparagraph id="idB0C4194E252F40EA8C30EA83ECA7159A"><enum>(A)</enum><text>in the matter preceding subparagraph (A)—</text>
<clause id="id328FC92987B44FE5A18DA5B4BE802171"><enum>(i)</enum><text>by inserting <quote>and business</quote> before <quote>assistance services</quote>; and</text> </clause><clause id="id9F4E2E66FD724D168F0A85D6BCA24319"><enum>(ii)</enum><text>by inserting <quote>assistance with product sales, intellectual property protections, market research,</quote> after <quote>technologies,</quote>; and</text>
</clause></subparagraph><subparagraph id="id80214BCEAAB541AC9768F5F323CBE182"><enum>(B)</enum><text>in subparagraph (D), by inserting <quote>, including intellectual property protections</quote> before the period at the end; and</text> </subparagraph></paragraph><paragraph id="id950A8D12EDEA4B44A8C26E6019E6FBA5"><enum>(3)</enum><text>in paragraph (3)—</text>
<subparagraph id="idABD54E1708554DACBA658C97097CCB62"><enum>(A)</enum><text>in subparagraph (A), by striking <quote>$5,000 per year</quote> each place that term appears and inserting <quote>$6,500 per project</quote>;</text> </subparagraph><subparagraph id="idB5EDF9589FE04248823AF5A1E928AA9C"><enum>(B)</enum><text>in subparagraph (B), by striking <quote>$5,000 per year</quote> each place that term appears and inserting <quote>$15,000 per project</quote>;</text>
</subparagraph><subparagraph id="idCB34613B93A34C5592E7D75660DB3C28"><enum>(C)</enum><text>in subparagraph (C), by inserting <quote>or business</quote> after <quote>technical</quote>; and</text> </subparagraph><subparagraph id="id6D1E609F576745FB945A3739D25CF8E7"><enum>(D)</enum><text>in subparagraph (D), by inserting <quote>or business</quote> after <quote>technical</quote> each place that term appears.</text>
</subparagraph></paragraph></section><enum>IV</enum><header>Program diversification initiatives</header>
<section id="id6515e5c7-1789-487a-9087-edcf2dda5c1e"><enum>401.</enum><header>Regional SBIR State collaborative initiative pilot program</header><text display-inline="no-display-inline">Section 9 of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638</external-xref>) is amended—</text> <paragraph id="idf698c7c9-fbb0-4fff-9710-ca3768ff2bf0"><enum>(1)</enum><text>in subsection (mm)—</text>
<subparagraph id="idFD0DAF8CD5744282ACA01D458FD9425C"><enum>(A)</enum><text>in paragraph (1), in the matter preceding subparagraph (A), by striking <quote>2017</quote> and inserting <quote>2021</quote>; and</text> </subparagraph><subparagraph id="id97A64B6ABD2E4F3491AAD27EACB72BB7"><enum>(B)</enum><text>by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idc5c4e42e-a657-4d98-8d28-a565f2183242" style="OLC">
<paragraph id="idd7899f3d-6b26-4db4-a7f4-afc0febc24d5"><enum>(7)</enum><header>SBIR and STTR programs; FAST program</header>
<subparagraph id="id5099811DDB3F4CB18CFF6AF55AB8BF30"><enum>(A)</enum><header>Definition</header><text>In this paragraph, the term <term>covered Federal agency</term> means a Federal agency that—</text> <clause id="idD7EB6651FF874DD4B8978A28B7908CA3"><enum>(i)</enum><text>is required to conduct an SBIR program; and</text>
</clause><clause id="idB599098F01304E64AFB29455A7CAB35F"><enum>(ii)</enum><text>elects to use the funds allocated to the SBIR program of the Federal agency for the purposes described in paragraph (1).</text>
</clause></subparagraph><subparagraph id="id9F89065D8F9B42EA91FE20E5EB610512"><enum>(B)</enum><header>Requirement</header><text>Each covered Federal agency shall transfer an amount equal to 15 percent of the funds that are used for the purposes described in paragraph (1) to the Administration—</text>
<clause id="idd5aaed58-f4a1-4c4d-bd8b-c2664377ec1d"><enum>(i)</enum><text>for the Regional SBIR State Collaborative Initiative Pilot Program established under subsection (uu);</text>
</clause><clause id="ida8bbb054-f10c-4084-b3e9-f9e50c620af9"><enum>(ii)</enum><text>for the Federal and State Technology Partnership Program established under section 34; and</text> </clause><clause id="id54d9dcb7-caf2-475c-bd14-b05094783141"><enum>(iii)</enum><text>to support the Office of the Administration that administers the SBIR program and the STTR program, subject to agreement from other agencies about how the funds will be used, in carrying out those programs and the programs described in clauses (i) and (ii).</text>
</clause></subparagraph></paragraph><paragraph id="id694b0233-f110-4858-8317-b7a12972c18e"><enum>(8)</enum><header>Pilot program</header>
<subparagraph id="idCB186F2430D34E1182E429D22C17B48A"><enum>(A)</enum><header>In general</header><text>Of amounts provided to the Administration under paragraph (7), not less than $5,000,000 shall be used to provide awards under the Regional SBIR State Collaborative Initiative Pilot Program established under subsection (uu) for each fiscal year in which the program is in effect.</text>
</subparagraph><subparagraph id="id25AE9DBB5A1A4EBDAE7B7BB686B46507"><enum>(B)</enum><header>Disbursement flexibility</header><text>The Administration may use any unused funds made available under subparagraph (A) as of April 1 of each fiscal year for awards to carry out clauses (ii) and (iii) of paragraph (7)(B) after providing written notice to—</text>
<clause id="idA2DF62DC61484D1C9824D262C111427D"><enum>(i)</enum><text>the Committee on Small Business and Entrepreneurship and the Committee on Appropriations of the Senate; and</text>
</clause><clause id="id8258218BAF4F4957B448C7D5EB696308"><enum>(ii)</enum><text>the Committee on Small Business and the Committee on Appropriations of the House of Representatives.</text></clause></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id304bb763-16f6-4a7c-b1bb-202a8a7cad12"><enum>(2)</enum><text>by adding after subsection (tt), as added by section 304 of this Act, the following:</text> <quoted-block display-inline="no-display-inline" id="id14b4bd02-010f-4056-8ad7-7074b9e3027e" style="OLC"> <subsection id="ide19a5d67-5ca5-463d-9308-e264b50e17a5"><enum>(uu)</enum><header>Regional SBIR State collaborative initiative pilot program</header> <paragraph id="id5f1485b8-8a38-47c4-a6bf-fe5ec1359c20"><enum>(1)</enum><header>Definitions</header><text>In this subsection—</text>
<subparagraph id="ida3a41b32-f4f7-4173-8ede-99c3b3dd8330"><enum>(A)</enum><text>the term <term>eligible entity</term> means—</text> <clause id="id9099f98e-2cf4-43bc-9409-2a5fa95841e3"><enum>(i)</enum><text>a research institution; and</text>
</clause><clause id="ide5d80e2a-806c-4dd2-b1f8-87bcb60a603f"><enum>(ii)</enum><text>a small business concern;</text> </clause></subparagraph><subparagraph id="id59b803cb-1050-42ed-9119-0bffd3946c97"><enum>(B)</enum><text>the term <term>eligible State</term> means—</text>
<clause id="idb1f3ab84-df15-4819-b65c-36c12e7b708c"><enum>(i)</enum><text>a State that the Administrator determines is in the bottom half of States, based on the average number of annual SBIR program awards made to companies in the State for the preceding 3 years for which the Administration has applicable data; and</text>
</clause><clause id="id214029c1-590b-4cd3-9b3c-988c696224d6"><enum>(ii)</enum><text>an EPSCoR State that—</text> <subclause id="id66a72cf1-700e-4f51-b2fa-e1d1ce51083e"><enum>(I)</enum><text>is a State described in clause (i); or</text>
</subclause><subclause id="id6c767e1f-3348-4f51-a300-e6654469b6fa"><enum>(II)</enum><text>is—</text> <item id="id51125267-912c-4a3a-a0f5-e30a636faba7"><enum>(aa)</enum><text>not a State described in clause (i); and</text>
</item><item id="idbb64b9f4-e342-4611-98ee-61d7f6f49c06"><enum>(bb)</enum><text>invited to participate in a regional collaborative;</text> </item></subclause></clause></subparagraph><subparagraph id="id4c7806dc-40c4-4135-b7df-0e92aecb842e"><enum>(C)</enum><text>the term <term>EPSCoR State</term> means a State that participates in the Experimental Program to Stimulate Competitive Research of the National Science Foundation, as established under section 113 of the National Science Foundation Authorization Act of 1988 (<external-xref legal-doc="usc" parsable-cite="usc/42/1862g">42 U.S.C. 1862g</external-xref>);</text>
</subparagraph><subparagraph id="idf6e3fa63-d44f-45f7-b0d0-c6e1b861c8dd"><enum>(D)</enum><text>the term <term>FAST program</term> means the Federal and State Technology Partnership Program established under section 34;</text> </subparagraph><subparagraph id="idfcc4613b-b361-40d8-8c0c-43e5993284d4"><enum>(E)</enum><text>the term <term>pilot program</term> means the Regional SBIR State Collaborative Initiative Pilot Program established under paragraph (2);</text>
</subparagraph><subparagraph id="id1da9ba19-c6d8-4950-bb46-902ba21f3dca"><enum>(F)</enum><text>the term <term>regional collaborative</term> means a collaborative consisting of eligible entities that are located in not less than 3 eligible States; and</text>
</subparagraph><subparagraph id="id61418df1-ed39-4c88-811d-b2a215ac508c"><enum>(G)</enum><text>the term <term>State</term> means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and any territory or possession of the United States.</text>
</subparagraph></paragraph><paragraph id="id1c4b2873-d0f1-4c8d-936a-3f5c67f28a2a"><enum>(2)</enum><header>Establishment</header><text>The Administrator shall establish a pilot program, to be known as the Regional SBIR State Collaborative Initiative Pilot Program, under which the Administrator shall provide awards to regional collaboratives to address the needs of small business concerns in order to be more competitive in the proposal and selection process for awards under the SBIR program and the STTR program and to increase technology transfer and commercialization.</text>
</paragraph><paragraph id="idd09334a2-3c48-4a4d-8b68-b3a3735b7d5f"><enum>(3)</enum><header>Goals</header><text>The goals of the pilot program are—</text> <subparagraph id="idf88b74db-9460-4658-acc5-ac2a046b0b7d"><enum>(A)</enum><text>to create regional collaboratives that allow eligible entities to work cooperatively to leverage resources to address the needs of small business concerns;</text>
</subparagraph><subparagraph id="id22f33894-677d-40f3-b9e0-5afa55af58d1"><enum>(B)</enum><text>to grow SBIR program and STTR program cooperative research and development and commercialization through increased awards under those programs;</text>
</subparagraph><subparagraph id="id67860b4b-8d51-4c19-8fd5-d2edb05dbd5d"><enum>(C)</enum><text>to increase the participation of States that have historically received a lower level of awards under the SBIR program and the STTR program;</text>
</subparagraph><subparagraph id="id864ab20b-fb3b-492e-9a13-f2b1712a2c7b"><enum>(D)</enum><text>to utilize the strengths and advantages of regional collaboratives to better leverage resources, best practices, and economies of scale in a region for the purpose of increasing awards and increasing the commercialization of the SBIR program and STTR projects;</text>
</subparagraph><subparagraph id="id893d6055-5fc2-414e-8f08-29df2c1fdcd7"><enum>(E)</enum><text>to increase the competitiveness of the SBIR program and the STTR program;</text> </subparagraph><subparagraph id="id41993a26-2f29-41fb-9415-2971868e46f9"><enum>(F)</enum><text>to identify sources of outside funding for applicants for an award under the SBIR program or the STTR program, including venture capitalists, angel investor groups, private industry, crowd funding, and special loan programs; and</text>
</subparagraph><subparagraph id="id3e328011-6bc7-4302-9668-836dedceb300"><enum>(G)</enum><text>to offer increased one-on-one engagements with companies and entrepreneurs for SBIR program and STTR program education, assistance, and successful outcomes.</text>
</subparagraph></paragraph><paragraph id="id06ad11ce-bdbd-4cb9-9a21-0b74705d4569"><enum>(4)</enum><header>Application</header>
<subparagraph id="idb19db40a-b2a8-4ebf-89d1-14e8d60ee707"><enum>(A)</enum><header>In general</header><text>A regional collaborative that desires to participate in the pilot program shall submit to the Administrator an application at such time, in such manner, and containing such information as the Administrator may require.</text>
</subparagraph><subparagraph id="id42620451-a602-4a44-b30d-1a9ec60f5335"><enum>(B)</enum><header>Inclusion of lead eligible entities and coordinator</header><text>A regional collaborative shall include in an application submitted under subparagraph (A)—</text> <clause id="idaa399fa5-03a2-4c6a-80ce-2502a7a25b43"><enum>(i)</enum><text>the name of each lead eligible entity from each eligible State in the regional collaborative, as designated under paragraph (5)(A); and</text>
</clause><clause id="idabb83ff2-a566-4e11-b47a-85bd501689f7"><enum>(ii)</enum><text>the name of the coordinator for the regional collaborative, as designated under paragraph (6).</text> </clause></subparagraph><subparagraph id="idF339FB7A840C44C5AEBAD7220AAC96B1"><enum>(C)</enum><header>Avoidance of duplication</header><text>A regional collaborative shall include in an application submitted under subparagraph (A) an explanation as to how the activities of the regional collaborative under the pilot program would differ from other State and Federal outreach activities in each eligible State in the regional collaborative.</text>
</subparagraph></paragraph><paragraph id="id596fe8ac-ef8a-41cb-a6e9-edab59bed718"><enum>(5)</enum><header>Lead eligible entity</header>
<subparagraph id="idf8f098e4-bc69-4bd7-9d5f-507536a92715"><enum>(A)</enum><header>In general</header><text>Each eligible State in a regional collaborative shall designate 1 eligible entity located in the eligible State to serve as the lead eligible entity for the eligible State.</text>
</subparagraph><subparagraph id="id30a36f33-83c6-42d3-ac80-e35d577df6ab"><enum>(B)</enum><header>Authorization by Governor</header><text>Each lead eligible entity designated under subparagraph (A) shall be authorized to act as the lead eligible entity by the Governor of the applicable eligible State.</text>
</subparagraph><subparagraph id="ida861ab7d-5404-4d3c-92b7-d0b8abb2efbe"><enum>(C)</enum><header>Responsibilities</header><text>Each lead eligible entity designated under subparagraph (A) shall be responsible for administering the activities and program initiatives described in paragraph (7) in the applicable eligible State.</text>
</subparagraph></paragraph><paragraph id="idc39e19e4-9de7-4d82-8257-c17598fad879"><enum>(6)</enum><header>Regional collaborative coordinator</header><text>Each regional collaborative shall designate a coordinator from amongst the eligible entities located in the eligible States in the regional collaborative, who shall serve as the interface between the regional collaborative and the Administration with respect to measuring cross-State collaboration and program effectiveness and documenting best practices.</text>
</paragraph><paragraph id="iddc99d25d-35d7-44e5-8380-5d41a17429c2"><enum>(7)</enum><header>Use of Funds</header><text>Each regional collaborative that is provided an award under the pilot program may, in each eligible State in which an eligible entity of the regional collaborative is located—</text>
<subparagraph id="idf458d608-f561-4a38-b3ad-ca13491b7c3e"><enum>(A)</enum><text>establish an initiative under which first-time applicants for an award under the SBIR program or the STTR program are reviewed by experienced, national experts in the United States, as determined by the lead eligible entity designated under paragraph (5)(A);</text>
</subparagraph><subparagraph id="id385413bd-0ee4-46a9-b392-55e396d64cd1"><enum>(B)</enum><text>engage national mentors on a frequent basis to work directly with applicants for an award under the SBIR program or the STTR program, particularly during Phase II, to assist with the process of preparing and submitting a proposal;</text>
</subparagraph><subparagraph id="id5a382e74-18f9-444e-a3d6-23910e22b291"><enum>(C)</enum><text>create and make available an online mechanism to serve as a resource for applicants for an award under the SBIR program or the STTR program to identify and connect with Federal labs, prime government contractor companies, other industry partners, and regional industry cluster organizations;</text>
</subparagraph><subparagraph id="id35cd9ec1-1d8e-4092-b597-ad77461c4954"><enum>(D)</enum><text>conduct focused and concentrated outreach efforts to increase participation in the SBIR program and the STTR program by small business concerns owned and controlled by women, small business concerns owned and controlled by veterans, small business concerns owned and controlled by socially and economically disadvantaged individuals (as defined in section 8(d)(3)(C)), and historically black colleges and universities;</text>
</subparagraph><subparagraph id="id7d2fd62f-1037-4907-87d8-68f59f5f6491"><enum>(E)</enum><text>administer a structured program of training and technical assistance—</text> <clause id="id0e247743-4a99-47e0-bd83-9d98c8e0ca95"><enum>(i)</enum><text>to prepare applicants for an award under the SBIR program or the STTR program—</text>
<subclause id="id8f876931-a6b8-4325-8151-41f29c94f974"><enum>(I)</enum><text>to compete more effectively for Phase I and Phase II awards; and</text> </subclause><subclause id="id373c70d0-6a42-4dba-9ad3-dc6fbef416c8"><enum>(II)</enum><text>to develop and implement a successful commercialization plan;</text>
</subclause></clause><clause id="id5145C331DE794892992FAA36AB77959C"><enum>(ii)</enum><text>to assist eligible States focusing on transition and commercialization to win Phase III awards from public and private partners;</text>
</clause><clause id="id628a9379-cf9c-4c8a-8e53-6ff38aa4fc59"><enum>(iii)</enum><text>to create more competitive proposals to increase awards from all Federal sources, with a focus on awards under the SBIR program and the STTR program; and</text>
</clause><clause id="idDE53117A7FE746B89C2E4D847E3729A9"><enum>(iv)</enum><text>to assist first-time applicants by providing small grants for proof of concept research; and</text> </clause></subparagraph><subparagraph id="id77c70706-a30c-41a2-963d-7d7707eb2886"><enum>(F)</enum><text>assist applicants for an award under the SBIR program or the STTR program to identify sources of outside funding, including venture capitalists, angel investor groups, private industry, crowd funding, and special loan programs.</text>
</subparagraph></paragraph><paragraph id="idcb6153e0-dd81-479c-8601-8191d2ce808d"><enum>(8)</enum><header>Award amount</header>
<subparagraph id="idc26522a8-f480-4aec-b327-7938588a5da8"><enum>(A)</enum><header>In general</header><text>The Administrator shall provide an award to each eligible State in which an eligible entity of a regional collaborative is located in an amount that is not more than $300,000 to carry out the activities described in paragraph (7).</text>
</subparagraph><subparagraph id="idb96d8007-ef6b-4e66-8ec0-55d17f96b0a8"><enum>(B)</enum><header>Limitation</header>
<clause id="id66405167-5b49-4f17-a7fd-0162c03eb723"><enum>(i)</enum><header>In general</header><text>An eligible State may not receive an award under both the FAST program and the pilot program for the same year.</text>
</clause><clause id="id1924b68d-c666-4590-a1a2-accd50043472"><enum>(ii)</enum><header>Rule of construction</header><text>Nothing in clause (i) shall be construed to prevent an eligible State from applying for an award under the FAST program and the pilot program for the same year.</text>
</clause></subparagraph></paragraph><paragraph id="idc3e68c66-d9ac-48c5-a74a-955d3725779f"><enum>(9)</enum><header>Duration of award</header><text>An award provided under the pilot program shall be for a period of not more than 1 year, and may be renewed by the Administrator for 1 additional year.</text>
</paragraph><paragraph id="id92a12d1e-7ca1-4da0-886a-9919239d7a88"><enum>(10)</enum><header>Termination</header><text>The pilot program shall terminate on September 30, 2021.</text> </paragraph><paragraph id="id1b590e37-343f-49a9-b277-cc9249fb052b"><enum>(11)</enum><header>Report</header><text>Not later than February 1, 2021, the Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report on the pilot program, which shall include—</text>
<subparagraph id="idb510a764-b382-4b60-8965-1cd94a754d69"><enum>(A)</enum><text>an assessment of the pilot program and the effectiveness of the pilot program in meeting the goals described in paragraph (3);</text>
</subparagraph><subparagraph id="idaff6f0a3-d09b-44ea-8fab-bdd54487422d"><enum>(B)</enum><text>an assessment of the best practices, including an analysis of how the pilot program compares to the FAST program and a single-State approach; and</text>
</subparagraph><subparagraph id="idb8d3938e-cf5f-4f75-9e5f-dafc613451d9"><enum>(C)</enum><text>recommendations as to whether any aspect of the pilot program should be extended or made permanent.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="id5d21816d-9ef7-4add-bc0d-39eac4e433f8"><enum>402.</enum><header>Federal and State Technology Partnership Program</header><text display-inline="no-display-inline">Section 34 of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/657d">15 U.S.C. 657d</external-xref>) is amended—</text>
<paragraph id="idac3a4da7-f083-46e5-977a-bdc39676466e"><enum>(1)</enum><text>in subsection (h)—</text> <subparagraph id="ida66b1bea-ce9a-4f3a-83fd-12cd69713e72"><enum>(A)</enum><text>in paragraph (1), by striking <quote>2001 through 2005</quote> and inserting <quote>2017 through 2021</quote>; and</text>
</subparagraph><subparagraph id="id736a94ce-b981-42c6-b9e6-d879fa2739c1"><enum>(B)</enum><text>in paragraph (2), by striking <quote>fiscal years 2001 through 2005</quote> and inserting <quote>each of fiscal years 2017 through 2021</quote>; and</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idfe425757-bd1a-4b87-a09a-2536208b9fdc"><enum>(2)</enum><text>in subsection (i), by striking <quote>September 30, 2005</quote> and inserting <quote>September 30, 2021</quote>.</text>
</paragraph></section><enum>V</enum><header>Oversight and simplification initiatives</header>
<section id="id402889f985bd40fe88aae4268414a6a0"><enum>501.</enum><header>Data modernization summit</header>
<subsection id="id63f99d8943ff46809f006ba7a83a4c36"><enum>(a)</enum><header>Definitions</header><text>In this section—</text> <paragraph id="id2F91DC82BBC241AF8DCF1C851DA4CA78"><enum>(1)</enum><text>the term <term>Administration</term> means the Small Business Administration;</text>
</paragraph><paragraph id="idA2D317B7C03A457A98CF95FA46E71BC1"><enum>(2)</enum><text>the term <term>Committee</term> means the SBIR and STTR Interagency Policy Committee established under subsection (b);</text> </paragraph><paragraph id="id6C52E778135F49BF8EA2624F4DDD4222"><enum>(3)</enum><text>the terms <term>Federal agency</term>, <term>SBIR</term>, and <term>STTR</term> have the meanings given such terms under section 9(e) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(e)</external-xref>);</text>
</paragraph><paragraph id="id7744D60C904F4D47BFE68A3E8C3AA58C"><enum>(4)</enum><text>the term <term>participating Federal agency</term> means a Federal agency with an SBIR program or an STTR program;</text> </paragraph><paragraph id="id1E1F8149CC0F4517B6DC40B0A930170B"><enum>(5)</enum><text>the term <term>phase</term> means Phase I, Phase II, and Phase III, as those terms are defined under section 9(e) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(e)</external-xref>); and</text>
</paragraph><paragraph id="id5373DF95008E48DC880B6ABB824C3EE7"><enum>(6)</enum><text>the term <term>small business concern</term> has the meaning given that term under section 3 of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/632">15 U.S.C. 632</external-xref>).</text> </paragraph></subsection><subsection id="id7A514B1DCBA54FBF8E541B267C3AC4A9"><enum>(b)</enum><header>Establishment</header><text>There is established an interagency committee to be known as the <quote>SBIR and STTR Interagency Policy Committee</quote>.</text>
</subsection><subsection id="id28B781AA47D34BA1A756C55DA81A6AB3"><enum>(c)</enum><header>Membership</header><text>The Committee shall include—</text> <paragraph id="id53F1B21E8047401BBA797B4A3CEC088B"><enum>(1)</enum><text>2 representatives from each participating Federal agency, of which—</text>
<subparagraph id="idAE87587F7C124544A8A196DFF404521E"><enum>(A)</enum><text>1 shall have expertise with respect to the SBIR program and STTR program of the Federal agency; and</text> </subparagraph><subparagraph id="id2A6CD1644F2D41E5BCD011546361D8DC"><enum>(B)</enum><text>1 shall have expertise with respect to the information technology systems of the Federal agency; and</text>
</subparagraph></paragraph><paragraph id="idA946FE76AF5645A19EB9AA4C54DBF446"><enum>(2)</enum><text>2 representatives from the Administration, of which—</text> <subparagraph id="id4BC8DD37ACD543A1B99C4ADA066845CB"><enum>(A)</enum><text>1 shall serve as chairperson of the Committee; and</text>
</subparagraph><subparagraph id="id8DA97347F74B4FBF864FA92B98F8AA86"><enum>(B)</enum><text>1 shall be from the Information Technology Development Team of the Office of Investment and Innovation of the Administration.</text>
</subparagraph></paragraph></subsection><subsection id="id27479BD6EBD544B4B9C81B86ABB4942F"><enum>(d)</enum><header>Duties</header><text>The Committee shall review the recommendations made in the report to Congress by the Office of Science and Technology of the Administration entitled <quote>SBIR/STTR TechNet Public & Government Databases</quote>, dated September 15, 2014, and the practices of participating Federal agencies to—</text>
<paragraph id="id4574FCCC92DF4886A3704865B695ED7C"><enum>(1)</enum><text>determine how to collect data on achievements by small business concerns in each phase of the SBIR program and the STTR program and ensure collection and dissemination of such data in a timely, efficient, and uniform manner;</text>
</paragraph><paragraph id="iddd46fa1099ac44e6a679c073b9f0ace7"><enum>(2)</enum><text>establish a uniform baseline for metrics that support improving the solicitation, contracting, funding, and execution of program management in the SBIR program and the STTR program;</text>
</paragraph><paragraph id="id1BB9CC2035954B6C9A6284312E595086"><enum>(3)</enum><text>normalize formatting and database usage across participating Federal agencies; and</text> </paragraph><paragraph id="id6AA2E8A033204AD580A7196AB3337713"><enum>(4)</enum><text>determine the feasibility of developing a common system across all participating Federal agencies and the paperwork requirements under such a common system.</text>
</paragraph></subsection><subsection id="id5356517b932b41848cbb4ca67f986c03"><enum>(e)</enum><header>Implementation</header><text>Not later than September 31, 2018, the Committee shall brief the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives on the solutions identified by the Committee under subsection (d) and resources needed to execute the solutions.</text>
</subsection></section><section id="id73e632fa06cc4fb09c401c268479cb91"><enum>502.</enum><header>Implementation of outstanding reauthorization provisions</header>
<subsection id="id860A0C3017A54CA89CEC04094FF0B836"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 9(mm) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(mm)</external-xref>), as amended by section 401(1) of this Act, is amended—</text>
<paragraph id="idd75233a27d4b4e2a8aa0b647ee783782"><enum>(1)</enum><text>in paragraph (1), by striking <quote>paragraph (3)</quote> and inserting <quote>paragraphs (3) and (9)</quote>; and</text> </paragraph><paragraph id="id0372A466BA464D8383DA610365085848"><enum>(2)</enum><text>by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idB7D67FD42EC84F0B8DFF3CE1E307D86B" style="OLC">
<paragraph id="ide839711f30c54f3da88acd429101625c"><enum>(9)</enum><header>Suspension of funding</header>
<subparagraph id="id902F2172047E4C519F5E0D50BA15EE56"><enum>(A)</enum><header>For Federal agencies</header>
<clause id="id652064314ED846C7AEB82512709A7ABA"><enum>(i)</enum><header>In general</header><text>For fiscal years 2018 and 2019, any Federal agency that has not implemented each provision of law described in clause (ii)—</text>
<subclause id="id9BC7DB9D234740ECA25D3F9827E1AFFE"><enum>(I)</enum><text>shall continue to provide amounts to the Administration in accordance with paragraph (7)(B); and</text> </subclause><subclause id="id100A960F51214E05B1D8C24E4EF3DADE"><enum>(II)</enum><text>may not use any additional amounts as described in paragraph (1) until 30 days after the date on which the Federal agency submits to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives documentation demonstrating that the Federal agency has implemented and is in compliance with each provision of law described in clause (ii).</text>
</subclause></clause><clause id="idE123A9A858C04E419170C5B0ED3A8354"><enum>(ii)</enum><header>Provisions</header><text>The provisions of law described in this subparagraph are the following:</text> <subclause id="id1B2E1ACA8BBD4F1BA7C1DB608722533F"><enum>(I)</enum><text>Subsection (r)(4), relating to Phase III preferences.</text>
</subclause><subclause id="idB243B5BF53BE42F7BFFB46F637F51D9D"><enum>(II)</enum><text>Paragraphs (5) and (6) of subsection (y), relating to insertion goals.</text> </subclause><subclause id="id2A554001E629494297F7245A26DC7D7C"><enum>(III)</enum><text>Subsection (g)(4)(B), relating to shortening the decision time for SBIR awards.</text>
</subclause><subclause id="id384F2216B30B49B6A95EEE5B1A658E6D"><enum>(IV)</enum><text>Subsection (o)(4)(B), relating to shortening the decision time for STTR awards.</text> </subclause><subclause id="idAFD0A308EFF844C9885825186C7E77A6"><enum>(V)</enum><text>Subsection (v), relating to reducing paperwork and compliance burdens.</text>
</subclause></clause></subparagraph><subparagraph id="id0278CB19562F4726963E186C3049CA32"><enum>(B)</enum><header>For Administration</header><text>For fiscal years 2018 and 2019, if the Administration is not in compliance with subsection (b)(7), relating to annual reports to Congress, the Administration may not use amounts received under paragraph (7)(B) of this subsection for a purpose described in clause (iii) of such paragraph (7)(B).</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id60305872C78848778665276D1400C44B"><enum>(b)</enum><header>Clarification of reporting requirement</header><text>Section 9(b)(7) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(b)(7)</external-xref>) is amended in the matter preceding subparagraph (A), by striking <quote>not less than annually</quote> and inserting <quote>not later than February 1 of each year</quote>.</text>
</subsection></section><section id="id8396fbc1d7de4727a94de01f180e2d49"><enum>503.</enum><header>Strengthening of the requirement to shorten the application review and decision time</header><text display-inline="no-display-inline">Section 9 of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638</external-xref>) is amended—</text> <paragraph id="idc5758d4130744aa18ec17cb78ca2b6d5"><enum>(1)</enum><text>in subsection (g)(4), by striking subparagraph (B) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id2e4a12774356483e8a69d7dffa4d295f" style="OLC">
<subparagraph id="id6d6d8718235e4a1ebde4af6ca0bd458b"><enum>(B)</enum><text>make a final decision on each proposal submitted under the SBIR program—</text> <clause id="id3a67939ffcba4af1aee2b1ee58a3dd94"><enum>(i)</enum><text>for the Department of Health and Human Services, not later than 1 year after the date on which the applicable solicitation closes, with a goal to reduce the review and decision time to less than 10 months by September 30, 2019;</text>
</clause><clause id="id1f712cdf62fd47a0b756bee5653ecd68"><enum>(ii)</enum><text>for the Department of Agriculture and the National Science Foundation, not later than 6 months after the date on which the applicable solicitation closes; or</text>
</clause><clause id="id25e50f3ab27648169d241566265528d9"><enum>(iii)</enum><text>for any other Federal agency—</text> <subclause id="id117ee6500d2c4353b06c0b9b988501e3"><enum>(I)</enum><text>not later than 90 days after the date on which the applicable solicitation closes; or</text>
</subclause><subclause id="id0ef969bf92be465790be65398ddf4a02"><enum>(II)</enum><text>if the Administrator authorizes an extension with respect to a solicitation, not later than 90 days after the date that would otherwise be applicable to the Federal agency under subclause (I);</text></subclause></clause></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block>
</paragraph><paragraph id="id181b2402a7814e03afddedfe2c5722f5"><enum>(2)</enum><text>in subsection (o)(4), by striking subparagraph (B) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="idba5af1199b2340c58f96e2df1f585e28" style="OLC"> <subparagraph id="idc40419c842a749008c87775a16b4aff2"><enum>(B)</enum><text>make a final decision on each proposal submitted under the STTR program—</text>
<clause id="id45bbf9b0595047a0879bb668dbc83c21"><enum>(i)</enum><text>for the Department of Health and Human Services, not later than 1 year after the date on which the applicable solicitation closes, with a goal to reduce the review and decision time to less than 10 months by September 30, 2019;</text>
</clause><clause id="id101df80a199146b98d8b845a372a47e9"><enum>(ii)</enum><text>for the Department of Agriculture and the National Science Foundation, not later than 6 months after the date on which the applicable solicitation closes; or</text>
</clause><clause id="idc21d5b7dacec44e1ba9ddbc3c92014d1"><enum>(iii)</enum><text>for any other Federal agency—</text> <subclause id="id76e05885245241538ea8c5f7c540493e"><enum>(I)</enum><text>not later than 90 days after the date on which the applicable solicitation closes; or</text>
</subclause><subclause id="idce43abda50744acd9976e685514f6381"><enum>(II)</enum><text>if the Administrator authorizes an extension with respect to a solicitation, not later than 90 days after the date that would otherwise be applicable to the Federal agency under subclause (I);</text></subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="ida7680a6ba3f74b91b5fa05f8ca1a94f3"><enum>504.</enum><header>Continued GAO oversight of allocation compliance and accuracy in funding base calculations</header><text display-inline="no-display-inline">Section 5136(a) of the National Defense Authorization Act for Fiscal Year 2012 (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638</external-xref> note) is amended—</text>
<paragraph id="id37384a722b2a458dba9b49c9d3a364eb"><enum>(1)</enum><text>in the matter preceding paragraph (1), by striking <quote>until the date that is 5 years after the date of enactment of this Act</quote> and inserting <quote>until the date on which the Comptroller General of the United States submits the report relating to fiscal year 2019</quote>;</text>
</paragraph><paragraph id="id69ede8e3656d44e3af676cbd6f931543"><enum>(2)</enum><text>in paragraph (1), by striking subparagraph (C) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id070E8BA36B4544CB9DE92F685D088516" style="OLC"> <subparagraph id="idD3EC8C6E27AB45098CBE7AA99952D019"><enum>(C)</enum><text>assess whether the change in the base funding for the Department of Defense as required by subparagraphs (J) and (K) of section 9(f)(1) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(f)(1)</external-xref>)—</text>
<clause id="id3DF739368CA64817BB53FFF66DB8E7F5"><enum>(i)</enum><text>improves transparency for determining whether the Department is complying with the allocation requirements;</text>
</clause><clause id="idBD7373626B1F4A16AC27F5616BF819BF"><enum>(ii)</enum><text>reduces the burden of calculating the allocations; and</text> </clause><clause id="id05B6E114BD3D434BA0B6B485A96A5D79"><enum>(iii)</enum><text>improves the compliance of the Department with the allocation requirements; and</text></clause></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block>
</paragraph><paragraph id="id5e77148fd8b44fb09bdeb716c049d068"><enum>(3)</enum><text>in paragraph (2) by striking <quote>under subparagraph (B)</quote> and inserting <quote>under subparagraphs (B) and (C)</quote>.</text> </paragraph></section><enum>VI</enum><header>Technical changes</header> <section id="idD7287392AF354882883A93387B5BFA88"><enum>601.</enum><header>Uniform reference to the Department of Health and Human Services</header><text display-inline="no-display-inline">Section 9 of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638</external-xref>) is amended—</text>
<paragraph id="idD536FEF940CF4608B8EAA020F4894D42"><enum>(1)</enum><text>in subsection (cc), by striking <quote>National Institutes of Health</quote> and inserting <quote>Department of Health and Human Services</quote>; and</text> </paragraph><paragraph id="id070D33CB1C574F0A8C01F3130FF277B9"><enum>(2)</enum><text>in subsection (dd)(1)(A), by striking <quote>Director of the National Institutes of Health</quote> and inserting <quote>Secretary of Health and Human Services</quote>.</text>
</paragraph></section><section id="id77ef3a41984a4dd8b343fcccac03f14c"><enum>602.</enum><header>Flexibility for Phase II award invitations</header><text display-inline="no-display-inline">Section 9(e)(4)(B) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(e)(4)(B)</external-xref>) is amended in the matter preceding clause (i)—</text>
<paragraph id="idc9665842e5e74b8b9e982d7d141b4d9c"><enum>(1)</enum><text>by striking <quote>, which shall not include any invitation, pre-screening, or pre-selection process for eligibility for Phase II,</quote>; and</text>
</paragraph><paragraph id="id477f88c18b974a9cb6a2e813227d537b"><enum>(2)</enum><text>by inserting <quote>in which eligibility for an award shall not be based only on an invitation, pre-screening, or pre-selection process and</quote> before <quote>in which awards</quote>.</text></paragraph></section>