[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2392 Reported in Senate (RS)]






                                                       Calendar No. 541
106th CONGRESS
  2d Session
                                H. R. 2392

                          [Report No. 106-289]


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 28, 1999

  Received; read twice and referred to the Committee on Small Business

                              May 10, 2000

                Reported by Mr. Bond, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 AN ACT


 
  To amend the Small Business Act to extend the authorization for the 
  Small Business Innovation Research Program, and for other purposes.

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

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Small Business Innovation 
Research Program Reauthorization Act of 1999''.</DELETED>

<DELETED>SEC. 2. FINDINGS.</DELETED>

<DELETED>    Congress finds that--</DELETED>
        <DELETED>    (1) the small business innovation research program 
        established under the Small Business Innovation Development Act 
        of 1982 and reauthorized by the Small Business Research and 
        Development Enhancement Act of 1992 (in this section referred 
        to as the ``SBIR program'') is highly successful in involving 
        small businesses in federally funded research and 
        development;</DELETED>
        <DELETED>    (2) the SBIR program made the cost-effective and 
        unique research and development capabilities possessed by the 
        small businesses of this Nation available to Federal agencies 
        and departments;</DELETED>
        <DELETED>    (3) the innovative goods and services developed by 
        small businesses that participated in the SBIR program have 
        produced innovations of critical importance in a wide variety 
        of high-technology fields, including biology, medicine, 
        education, and defense;</DELETED>
        <DELETED>    (4) the SBIR program is a catalyst in the 
        promotion of research and development, the commercialization of 
        innovative technology, the development of new products and 
        services, and the continued excellence of this Nation's high-
        technology industries; and</DELETED>
        <DELETED>    (5) the continuation of the SBIR program will 
        provide expanded opportunities for one of the Nation's vital 
        resources, its small businesses, will foster invention, 
        research, and technology, will create jobs, and will increase 
        this Nation's competitiveness in international 
        markets.</DELETED>

<DELETED>SEC. 3. EXTENSION OF SBIR PROGRAM.</DELETED>

<DELETED>    Section 9(m) of the Small Business Act (15 U.S.C. 638(m)) 
is amended to read as follows:</DELETED>
<DELETED>    ``(m) Termination.--The authorization to carry out the 
Small Business Innovation Research Program established under this 
section shall terminate on September 30, 2007.''.</DELETED>

<DELETED>SEC. 4. ANNUAL REPORT.</DELETED>

<DELETED>    Section 9(b)(7) of the Small Business Act (15 U.S.C. 
638(b)(7)) is amended by striking ``and the Committee on Small Business 
of the House of Representatives'' and inserting ``, and to the 
Committee on Science and the Committee on Small Business of the House 
of Representatives,''.</DELETED>

<DELETED>SEC. 5. THIRD PHASE ASSISTANCE.</DELETED>

<DELETED>    Section 9(e)(4)(C)(i) of the Small Business Act (15 U.S.C. 
638(e)(4)(C)(i)) is amended by striking ``; and'' and inserting ``; 
or''.</DELETED>

<DELETED>SEC. 6. RIGHTS TO DATA.</DELETED>

<DELETED>    Section 9(j) of the Small Business Act (15 U.S.C. 638(j)) 
is amended by adding at the end the following new paragraph:</DELETED>
        <DELETED>    ``(3) Additional modifications.--Not later than 90 
        days after the enactment of the Small Business Innovation 
        Research Program Reauthorization Act of 1999, the Administrator 
        shall modify the policy directives issued pursuant to this 
        subsection to clarify that the rights provided for under 
        subparagraph (2)(A) of this subsection apply to all Federal 
        funding awards falling under the definitions of `first phase', 
        `second phase', or `third phase', as specified in subsection 
        (e)(4).''.</DELETED>

<DELETED>SEC. 7. REPORT ON PROGRAMS FOR ANNUAL PERFORMANCE 
              PLAN.</DELETED>

<DELETED>    Section 9(g) of the Small Business Act (15 U.S.C. 638(g)) 
is amended--</DELETED>
        <DELETED>    (1) in paragraph (7), by striking ``and'' at the 
        end;</DELETED>
        <DELETED>    (2) in paragraph (8), by striking the period at 
        the end and inserting ``; and''; and</DELETED>
        <DELETED>    (3) by adding at the end the following new 
        paragraph:</DELETED>
        <DELETED>    ``(9) include, as part of its annual performance 
        plan as required by subsections (a) and (b) of section 1115 of 
        title 31, United States Code, a section on its SBIR program, 
        and shall submit such section to the Committee on Small 
        Business of the Senate, and the Committee on Science and the 
        Committee on Small Business of the House of 
        Representatives.''.</DELETED>

<DELETED>SEC. 8. OUTPUT AND OUTCOME DATA.</DELETED>

<DELETED>    (a) Collection.--Section 9(g) of the Small Business Act 
(15 U.S.C. 638(g)) is amended--</DELETED>
        <DELETED>    (1) by striking ``and'' at the end of paragraph 
        (7);</DELETED>
        <DELETED>    (2) by striking the period at the end of paragraph 
        (8) and inserting ``; and''; and</DELETED>
        <DELETED>    (3) by adding at the end the following new 
        paragraph:</DELETED>
        <DELETED>    ``(9) collect and include in the report required 
        by paragraph (8) such data from awardees as is necessary to 
        assess SBIR program outputs and outcomes, including data 
        necessary to maintain the data base described in subsection 
        (k).''.</DELETED>
<DELETED>    (b) Report to Congress.--Section 9(b)(7) of the Small 
Business Act (15 U.S.C. 638(b)(7)) is further amended by inserting ``, 
including the data on output and outcomes collected pursuant to 
subsections (g)(8) and (o)(9) and a description of the extent to which 
Federal agencies are providing in a timely manner information needed to 
maintain the data base described in subsection (k)'' before the period 
at the end.</DELETED>
<DELETED>    (c) Data Base.--Section 9 of the Small Business Act (15 
U.S.C. 638) is amended by adding after subsection (j) the following new 
subsection:</DELETED>
<DELETED>    ``(k) Data Base.--</DELETED>
        <DELETED>    ``(1) Public data base.--Not later than 180 days 
        after the date of the enactment of the Small Business 
        Innovation Research Program Reauthorization Act of 1999, the 
        Administrator shall develop, maintain, and make available to 
        the public a searchable, up-to-date, electronic data base that 
        includes--</DELETED>
                <DELETED>    ``(A) the name, size, and location, and an 
                identifying number assigned by the Administration, of 
                each small business concern that has received a first 
                phase or second phase SBIR award from a Federal agency; 
                and</DELETED>
                <DELETED>    ``(B) a description of each first phase or 
                second phase SBIR award received by that small business 
                concern, including--</DELETED>
                        <DELETED>    ``(i) an abstract of the project 
                        funded by the award;</DELETED>
                        <DELETED>    ``(ii) the Federal agency making 
                        the award; and</DELETED>
                        <DELETED>    ``(iii) the date and amount of the 
                        award.</DELETED>
        <DELETED>    ``(2) Government data base.--Not later than 180 
        days after the date of the enactment of the Small Business 
        Innovation Research Program Reauthorization Act of 1999, the 
        Administrator, in consultation with Federal agencies required 
        to have an SBIR program pursuant to subsection (f)(1), shall 
        develop and maintain a data base to be used for SBIR program 
        evaluation that--</DELETED>
                <DELETED>    ``(A) contains information, for each 
                second phase award made by a Federal agency, on--
                </DELETED>
                        <DELETED>    ``(i) revenue from the sale of new 
                        products or services (other than research or 
                        research and development services) resulting 
                        from the technology developed under the award; 
                        and</DELETED>
                        <DELETED>    ``(ii) additional investment from 
                        any source, other than the SBIR or STTR 
                        program, in activities that further the 
                        development or commercialization of the 
                        technology developed under the award, with 
                        commercialization investment identified 
                        separately;</DELETED>
                <DELETED>    ``(B) includes any brief narrative 
                information that a small business concern receiving a 
                second phase award submits to further describe the 
                outputs and outcomes of its award;</DELETED>
                <DELETED>    ``(C) includes for each applicant for a 
                first phase or second phase award which does not 
                receive an award--</DELETED>
                        <DELETED>    ``(i) the name, size, and 
                        location, and an identifying number assigned by 
                        the Administration;</DELETED>
                        <DELETED>    ``(ii) an abstract of the project; 
                        and</DELETED>
                        <DELETED>    ``(iii) the Federal agency to 
                        which the application was made; and</DELETED>
                <DELETED>    ``(D) is available for use only for 
                program evaluation purposes by the Federal Government 
                or by other authorized persons who are subject to a use 
                and nondisclosure agreement with the Federal Government 
                covering the use of the data base.</DELETED>
        <DELETED>    ``(3) Protection of information.--Information 
        provided under paragraph (2) shall be considered privileged and 
        confidential and not subject to disclosure pursuant to section 
        552 of title 5, United States Code.''.</DELETED>

<DELETED>SEC. 9. AWARD AMOUNT AND DURATION.</DELETED>

<DELETED>    Section 9(j) of the Small Business Act (15 U.S.C. 638(j)) 
is further amended by adding at the end the following new 
paragraph:</DELETED>
        <DELETED>    ``(4) Further modification.--Not later than 30 
        days after the date of enactment of the Small Business 
        Innovation Research Program Reauthorization Act of 1999, the 
        Administrator shall modify the policy directives issued 
        pursuant to this subsection to--</DELETED>
                <DELETED>    ``(A) authorize awards exceeding the 
                amounts established under paragraph (2)(D) or for time 
                periods greater than those established pursuant to this 
                subsection;</DELETED>
                <DELETED>    ``(B) require agencies to give preference 
                when providing second phase awards that exceed the 
                amounts established under paragraph (2)(D) to projects 
                that have met the requirements of subsection 
                (e)(4)(B)(ii) and (iii); and</DELETED>
                <DELETED>    ``(C) require that notice of and a 
                justification for any award described in subparagraph 
                (A) be included in the report required under subsection 
                (g)(8).''.</DELETED>

<DELETED>SEC. 10. SECOND PHASE COMMERCIAL PLAN.</DELETED>

<DELETED>    Section 9(j)(2) of the Small Business Act (15 U.S.C. 
638(j)(2)) is further amended--</DELETED>
        <DELETED>    (1) by striking ``and'' at the end of subparagraph 
        (H);</DELETED>
        <DELETED>    (2) by striking the period at the end of 
        subparagraph (I) and inserting ``; and''; and</DELETED>
        <DELETED>    (3) by adding at the end the following new 
        subparagraph:</DELETED>
                <DELETED>    ``(J) the requirement of a commercial plan 
                with each application for a second phase 
                award.''.</DELETED>

<DELETED>SEC. 11. NATIONAL RESEARCH COUNCIL REPORT.</DELETED>

<DELETED>    (a) Study and Recommendations.--The heads of each agency 
with a budget of more than $65,000,000 for its SBIR program for fiscal 
year 1999 shall, not later than 6 months after the date of the 
enactment of this Act, cooperatively enter into an agreement with the 
National Research Council for such Council, in consultation with the 
Office of Advocacy of the Small Business Administration and other 
interested parties, to--</DELETED>
        <DELETED>    (1) conduct a comprehensive study of how the Small 
        Business Innovation Research Program has stimulated 
        technological innovation and used small businesses to meet 
        Federal research and development needs, including--</DELETED>
                <DELETED>    (A) a review of the importance that 
                Federal research agencies are assigning to the Small 
                Business Innovation Research Program, and of the 
                quality of research being conducted under such 
                program;</DELETED>
                <DELETED>    (B) an evaluation of the economic rate of 
                return of the Small Business Innovation Research 
                Program over the life of the program;</DELETED>
                <DELETED>    (C) a comparison of the rate of 
                technological innovation by small businesses with that 
                of large businesses and universities;</DELETED>
                <DELETED>    (D) a comparison of the allocation for 
                fiscal year 1999 of Federal research and development 
                funds to small businesses with such allocation for 
                fiscal year 1983; and</DELETED>
                <DELETED>    (E) an analysis of whether Federal 
                agencies, in fulfilling their procurement needs, are 
                making sufficient effort to use small businesses that 
                have completed a second phase award; and</DELETED>
        <DELETED>    (2) make recommendations with respect to--
        </DELETED>
                <DELETED>    (A) measures of outcomes for strategic 
                plans submitted under section 306 of title 5, United 
                States Code, and performance plans submitted under 
                section 1115 of title 31, United States Code, of each 
                Federal agency participating in the Small Business 
                Innovation Research Program;</DELETED>
                <DELETED>    (B) whether companies who can demonstrate 
                project feasibility, but who have not received a first 
                phase award, should be eligible for second phase 
                awards, and the potential impacts of such awards on the 
                competitive selection process of the program;</DELETED>
                <DELETED>    (C) whether the Federal Government should 
                be permitted to recoup some or all of its expenses if a 
                controlling interest in a company receiving an SBIR 
                award is sold to a foreign company or to a company 
                which is not a small business concern;</DELETED>
                <DELETED>    (D) how to increase the use by the Federal 
                Government in its programs and procurements of 
                technology-oriented small businesses; and</DELETED>
                <DELETED>    (E) improvements to the SBIR 
                program.</DELETED>
<DELETED>    (b) Report.--Not later than 4 years after the date of the 
enactment of this Act, the heads of agencies entering into an agreement 
under this section shall cooperatively transmit to the Committee on 
Science and the Committee on Small Business of the House of 
Representatives, and to the Committee on Small Business of the Senate, 
a report including the results of the study conducted under subsection 
(a)(1) and recommendations made under subsection (a)(2).</DELETED>

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Small Business 
Innovation Research Program Reauthorization Act of 2000''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Extension of SBIR program.
Sec. 4. Third phase assistance.
Sec. 5. Rights to data.
Sec. 6. Report on programs for annual performance plan.
Sec. 7. Collection, reporting, and maintenance of information.
Sec. 8. Federal agency expenditures for the SBIR program.
Sec. 9. Federal and State technology partnership program.
Sec. 10. Mentoring Networks.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) the small business innovation research program 
        established under the Small Business Innovation Development Act 
        of 1982, and reauthorized by the Small Business Research and 
        Development Enhancement Act of 1992 (referred to in this 
        section as ``SBIR'' or the ``SBIR program''), is highly 
        successful in involving small business concerns in federally 
        funded research and development;
            (2) the SBIR program made the cost-effective and unique 
        research and development capabilities possessed by the small 
        business concerns of this Nation available to Federal 
        departments and agencies;
            (3) the innovative goods and services developed by small 
        business concerns that participated in the SBIR program have 
        produced innovations of critical importance in a wide variety 
        of high-technology fields, including biology, medicine, 
        education, electronics, information technology, materials, and 
        defense;
            (4) the SBIR program is a catalyst in the promotion of 
        research and development, the commercialization of innovative 
        technology, the development of new products and services, the 
        attraction of private investment, and the continued excellence 
        of the high-technology industries of this Nation; and
            (5) the continuation of the SBIR program will--
                    (A) provide expanded opportunities for one of the 
                vital resources of the Nation, its small business 
                concerns;
                    (B) foster invention, research, and technology;
                    (C) create jobs; and
                    (D) increase economic growth and the 
                competitiveness of this Nation in international 
                markets.

SEC. 3. EXTENSION OF SBIR PROGRAM.

    Section 9(m) of the Small Business Act (15 U.S.C. 638(m)) is 
amended to read as follows:
    ``(m) Termination.--The authorization to carry out the Small 
Business Innovation Research Program established under this section 
shall terminate on September 30, 2010.''.

SEC. 4. THIRD PHASE ASSISTANCE.

    Section 9(e)(4)(C)(i) of the Small Business Act (15 U.S.C. 
638(e)(4)(C)(i)) is amended by striking ``; and'' and inserting ``; 
or''.

SEC. 5. RIGHTS TO DATA.

    Section 9(j) of the Small Business Act (15 U.S.C. 638(j)) is 
amended by adding at the end the following:
    ``(3) Additional modifications.--Not later than 120 days after the 
date of enactment of the Small Business Innovation Research Program 
Reauthorization Act of 2000, the Administrator shall modify the policy 
directives issued under this subsection to clarify that the rights 
provided for under paragraph (2)(A) apply to all Federal funding 
awards, including--
            ``(A) the first phase (as described in subsection 
        (e)(4)(A));
            ``(B) the second phase (as described in subsection 
        (e)(4)(B)); and
            ``(C) the third phase (as described in subsection 
        (e)(4)(C)).''.

SEC. 6. REPORT ON PROGRAMS FOR ANNUAL PERFORMANCE PLAN.

    Section 9(o)(8) of the Small Business Act (15 U.S.C. 638(o)(8)) is 
amended--
            (1) by striking ``its STTR program'' and inserting ``the 
        SBIR and STTR programs of the agency''; and
            (2) by inserting before the semicolon ``, and to the 
        Administrator''.

SEC. 7. COLLECTION, REPORTING, AND MAINTENANCE OF INFORMATION.

    (a) Collection.--Section 9(g) of the Small Business Act (15 U.S.C. 
638(g)) is amended--
            (1) in paragraph (7), by striking ``and'' at the end;
            (2) in paragraph (8), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(9) collect, and maintain in a common format, such 
        information from awardees as is necessary to assess the SBIR 
        program, including information necessary to maintain the 
        database described in subsection (k).''.
    (b) Report to Congress.--Section 9(b)(7) of the Small Business Act 
(15 U.S.C. 638(b)(7)) is amended by inserting before the period at the 
end the following: ``, including the information collected under 
subsections (g)(9) and (o)(9) and a description of the extent to which 
Federal agencies are providing in a timely manner information needed to 
maintain the database described in subsection (k)''.
    (c) Public Database.--Section 9(k) of the Small Business Act (15 
U.S.C. 638(k)) is amended to read as follows:
    ``(k) Public Database.--Not later than 180 days after the date of 
enactment of the Small Business Innovation Research Program 
Reauthorization Act of 2000, the Administrator shall develop, maintain, 
and make available to the public a searchable, up-to-date, electronic 
database that includes--
            ``(1) the name, size, location, and an identifying number 
        assigned by the Administrator, of each small business concern 
        that has received a first phase or second phase SBIR award from 
        a Federal agency;
            ``(2) a description of each first phase or second phase 
        SBIR award received by that small business concern, including--
                    ``(A) an abstract of the project funded by the 
                award;
                    ``(B) the Federal agency making the award; and
                    ``(C) the date and amount of the award;
            ``(3) an identification of any business concern or 
        subsidiary established for the commercial application of a 
        product or service for which an SBIR award is made; and
            ``(4) information regarding mentors and Mentoring Networks, 
        as required by section 35(e).''.

SEC. 8. FEDERAL AGENCY EXPENDITURES FOR THE SBIR PROGRAM.

    Section 9(i) of the Small Business Act (15 U.S.C. 638(i)) is 
amended--
            (1) by striking ``(i) Each Federal'' and inserting the 
        following:
    ``(i) Annual Reporting.--
            ``(1) In general.--Each Federal''; and
            (2) by adding at the end the following:
            ``(2) Calculation of extramural budget.--
                    ``(A) Methodology.--Not later than 4 months after 
                the date of enactment of each appropriations Act for a 
                Federal agency required by this section to have an SBIR 
                program, the comptroller of that Federal agency shall 
                submit to the Administrator a report, which shall 
                include a description of the methodology used for 
                calculating the amount of the extramural budget of that 
                Federal agency (as defined in subsection (e)(1)).
                    ``(B) Administrator's analysis.--The Administrator 
                shall include an analysis of the methodology received 
                from each Federal agency referred to in subparagraph 
                (A) in the report required by subsection (b)(7).''.

SEC. 9. FEDERAL AND STATE TECHNOLOGY PARTNERSHIP PROGRAM.

    (a) Findings.--Congress finds that--
            (1) programs to foster economic development among small 
        high-technology firms vary widely among the States;
            (2) States that do not aggressively support the development 
        of small high-technology firms, including participation by 
        small business concerns in the Small Business Innovation 
        Research Program (referred to in this section as ``SBIR'' or 
        the ``SBIR program''), are at a competitive disadvantage in 
        establishing a business climate that is conducive to technology 
        development; and
            (3) building stronger national, State, and local support 
        for science and technology research in these disadvantaged 
        States will expand economic opportunities in the United States, 
        create jobs, and increase the competitiveness of the United 
        States in the world market.
    (b) Federal and State Technology Partnership Program.--The Small 
Business Act (15 U.S.C. 631 et seq.) is amended--
            (1) by redesignating section 34 as section 36; and
            (2) by inserting after section 33 the following:

``SEC. 34. FEDERAL AND STATE TECHNOLOGY PARTNERSHIP PROGRAM.

    ``(a) Definitions.--In this section--
            ``(1) the term `applicant' means an entity, organization, 
        or individual that submits a proposal for an award or a 
        cooperative agreement under this section;
            ``(2) the terms `business advice and counseling', `mentor', 
        and `Mentoring Network' have the same meanings as in section 
        35(b);
            ``(3) the term `recipient' means a person that receives an 
        award or becomes party to a cooperative agreement under this 
        section;
            ``(4) the term `SBIR program' has the same meaning as in 
        section 9(e)(4);
            ``(5) the term `State' means any of the 50 States of the 
        United States, the District of Columbia, and Puerto Rico; and
            ``(6) the term `STTR program' has the same meaning as in 
        section 9(e)(6).
    ``(b) Establishment of Program.--The Administrator shall establish 
a program to be known as the Federal and State Technology Partnership 
Program (referred to in this section as `FAST' ), the purpose of which 
shall be to strengthen the technological competitiveness of small 
business concerns in the States.
    ``(c) Grants and Cooperative Agreements.--
            ``(1) Joint review.--In carrying out the FAST program under 
        this section, the Administrator and the SBIR program managers 
        at the National Science Foundation and the Department of 
        Defense shall jointly review proposals submitted by applicants 
        and may make awards or enter into cooperative agreements under 
        this section based on the factors for consideration set forth 
        in paragraph (2), in order to enhance or develop in a State--
                    ``(A) technology research and development by small 
                business concerns;
                    ``(B) technology transfer from university research 
                to technology-based small business concerns;
                    ``(C) technology deployment and diffusion 
                benefiting small business concerns;
                    ``(D) the technological capabilities of small 
                business concerns through the establishment or 
                operation of consortia comprised of entities, 
                organizations, or individuals, including--
                            ``(i) State and local development agencies 
                        and entities;
                            ``(ii) representatives of technology-based 
                        small business concerns;
                            ``(iii) industries and emerging companies;
                            ``(iv) universities; and
                            ``(v) small business development centers; 
                        and
                    ``(E) outreach, financial support, and technical 
                assistance to technology-based small business concerns 
                interested in participating in the SBIR program, 
                including initiatives--
                            ``(i) to make grants or loans to companies 
                        to pay a portion or all of the cost of 
                        developing SBIR proposals;
                            ``(ii) to establish or operate a Mentoring 
                        Network within the FAST program to provide 
                        business advice and counseling that will assist 
                        small business concerns that have been 
                        identified by FAST program participants, 
                        program managers of participating SBIR 
                        agencies, the Administration, or other entities 
                        that are knowledgeable about the SBIR and STTR 
                        programs as good candidates for the SBIR and 
                        STTR programs, and that would benefit from 
                        mentoring, in accordance with section 35;
                            ``(iii) to create or participate in a 
                        training program for individuals providing SBIR 
                        outreach and assistance at the State and local 
                        levels; and
                            ``(iv) to encourage the commercialization 
                        of technology developed through SBIR program 
                        funding.
            ``(2) Selection considerations.--In making awards or 
        entering into cooperative agreements under this section, the 
        Administrator and the SBIR program managers referred to in 
        paragraph (1)--
                    ``(A) may only consider proposals by applicants 
                that intend to use a portion of the Federal assistance 
                provided under this section to provide outreach, 
                financial support, or technical assistance to 
                technology-based small business concerns participating 
                in or interested in participating in the SBIR program; 
                and
                    ``(B) shall consider, at a minimum--
                            ``(i) whether--
                                    ``(I) the applicant has 
                                demonstrated that the assistance to be 
                                provided would address unmet needs of 
                                small business concerns in the 
                                community; and
                                    ``(II) it is important to use 
                                Federal funding for the proposed 
                                activities;
                            ``(ii) whether the applicant has 
                        demonstrated that a need exists to increase the 
                        number and success of small high-technology 
                        businesses in the State, as measured by the 
                        number of first phase and second phase SBIR 
                        awards that have historically been received by 
                        small business concerns in the State;
                            ``(iii) whether the projected costs of the 
                        proposed activities are reasonable;
                            ``(iv) whether the proposal integrates and 
                        coordinates the proposed activities with other 
                        State and local programs assisting small high-
                        technology firms in the State; and
                            ``(v) the manner in which the applicant 
                        will measure the results of the activities to 
                        be conducted.
            ``(3) Proposal limit.--Not more than 1 proposal may be 
        submitted for inclusion in the FAST program under this section 
        to provide services in any one State in any fiscal year.
            ``(4) Process.--Proposals and applications for assistance 
        under this section shall be in such form and subject to such 
        procedures as the Administrator shall establish.
    ``(d) Cooperation and Coordination.--In carrying out the FAST 
program under this section, the Administrator shall cooperate and 
coordinate with--
            ``(1) Federal agencies required by section 9 to have an 
        SBIR program; and
            ``(2) entities, organizations, and individuals actively 
        engaged in enhancing or developing the technological 
        capabilities of small business concerns, including--
                    ``(A) State and local development agencies and 
                entities;
                    ``(B) State committees established under 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 (42 U.S.C. 1862g)), to the 
                extent that such committees exist in the States;
                    ``(C) State science and technology councils, to the 
                extent that such councils exist in the States; and
                    ``(D) representatives of technology-based small 
                business concerns.
    ``(e) Administrative Requirements.--
            ``(1) Competitive basis.--Awards and cooperative agreements 
        under this section shall be made or entered into, as 
        applicable, on a competitive basis.
            ``(2) Matching requirements.--
                    ``(A) In general.--The non-Federal share of the 
                cost of an activity (other than a planning activity) 
                carried out using an award or under a cooperative 
                agreement under this section shall be--
                            ``(i) 50 cents for each Federal dollar, in 
                        the case of a recipient that will serve small 
                        business concerns located in one of the 18 
                        States receiving the fewest SBIR first phase 
                        awards (as described in section 9(e)(4)(A));
                            ``(ii) 1 dollar for each Federal dollar, in 
                        the case of a recipient that will serve small 
                        business concerns located in one of the 16 
                        States receiving the greatest number of such 
                        SBIR first phase awards; and
                            ``(iii) 75 cents for each Federal dollar, 
                        in the case of a recipient that will serve 
                        small business concerns located in a State that 
                        is not described in clause (i) or (ii) that is 
                        receiving such SBIR first phase awards.
                    ``(B) Types of funding.--The non-Federal share of 
                the cost of an activity carried out by a recipient 
                shall be comprised of not less than 50 percent cash and 
                not more than 50 percent of indirect costs and in-kind 
                contributions, except that no such costs or 
                contributions may be derived from funds from any other 
                Federal program.
                    ``(C) Rankings.--For purposes of subparagraph (A), 
                the Administrator shall reevaluate the ranking of a 
                State once every 2 fiscal years, beginning with fiscal 
                year 2001, based on the most recent statistics compiled 
                by the Administrator.
            ``(3) Duration.--Awards may be made or cooperative 
        agreements entered into under this section for multiple years, 
        not to exceed 3 years in total.
    ``(f) Reports.--
            ``(1) Initial report.--Not later than 120 days after the 
        date of enactment of the Small Business Innovation Research 
        Program Reauthorization Act of 2000, the Administrator shall 
        prepare and submit to the Committees on Small Business of the 
        Senate and the House of Representatives a report, which shall 
        include, with respect to the FAST program, including Mentoring 
        Networks (as defined in section 35)--
                    ``(A) a description of the structure and procedures 
                of the program;
                    ``(B) a management plan for the program; and
                    ``(C) a description of the merit-based review 
                process to be used in the program.
            ``(2) Annual reports.--The Administrator shall submit an 
        annual report to the Committees on Small Business of the Senate 
        and the House of Representatives regarding--
                    ``(A) the number and amount of awards provided and 
                cooperative agreements entered into under the FAST 
                program during the preceding year;
                    ``(B) a list of recipients under this section, 
                including their location and the activities being 
                performed with the awards made or under the cooperative 
                agreements entered into; and
                    ``(C) the Mentoring Networks and the mentoring data 
                base, as provided for under section 35, including--
                            ``(i) the status of the inclusion of 
                        mentoring information in the database required 
                        by section 9(k); and
                            ``(ii) the status of the implementation and 
                        description of the usage of the Mentoring 
                        Networks (as defined in section 35).
    ``(g) Reviews by Inspector General.--
            ``(1) In general.--The Office of the Inspector General of 
        the Administration shall conduct a review of--
                    ``(A) the extent to which recipients under the FAST 
                program are measuring the performance of the activities 
                being conducted and the results of such measurements; 
                and
                    ``(B) the overall management and effectiveness of 
                the FAST program.
            ``(2) Report.--During the first quarter of fiscal year 
        2004, the Office of the Inspector General of the Administration 
        shall submit a report to the Committees on Small Business of 
        the Senate and the House of Representatives on the review 
        conducted under paragraph (1).
    ``(h) Program Levels.--
            ``(1) In general.--Subject to an appropriations Act, there 
        is authorized to be appropriated to carry out the FAST program, 
        including Mentoring Networks, under this section and section 
        35, $10,000,000 for each of fiscal years 2001 through 2005.
            ``(2) Mentoring database.--Of the total amount made 
        available under paragraph (1) for fiscal years 2001 through 
        2005, a reasonable amount, not to exceed a total of $500,000, 
        may be used by the Administration to carry out section 35(e).
    ``(i) Termination.--The authorization to carry out the FAST program 
under this section shall terminate on September 30, 2005.''.
    (d) Coordination of Technology Development Programs.--Section 9 of 
the Small Business Act (15 U.S.C. 638) is amended by adding at the end 
the following:
    ``(u) Coordination of Technology Development Programs.--
            ``(1) Definition of technology development program.--In 
        this subsection, the term `technology development program' 
        means--
                    ``(A) 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 
                (42 U.S.C. 1862g);
                    ``(B) the Defense Experimental Program to Stimulate 
                Competitive Research of the Department of Defense;
                    ``(C) the Experimental Program to Stimulate 
                Competitive Technology of the Department of Commerce;
                    ``(D) the Experimental Program to Stimulate 
                Competitive Research of the Department of Energy;
                    ``(E) the Experimental Program to Stimulate 
                Competitive Research of the Environmental Protection 
                Agency;
                    ``(F) the Experimental Program to Stimulate 
                Competitive Research of the National Air and Space 
                Administration;
                    ``(G) the Institutional Development Award Program 
                of the National Institutes of Health; and
                    ``(H) the National Research Initiative Competitive 
                Grants Program of the Department of Agriculture.
            ``(2) Coordination requirements.--Each Federal agency that 
        is subject to subsection (f) and that has established a 
        technology development program shall, in each fiscal year--
                    ``(A) review for funding under that technology 
                development program--
                            ``(i) any proposal from an entity, 
                        organization, or individual located in a State 
                        that is eligible to participate in that program 
                        to provide outreach and assistance to 1 or more 
                        small business concerns interested in 
                        participating in the SBIR program, including 
                        any proposal to make a grant or loan to a 
                        company to pay a portion or all of the cost of 
                        developing an SBIR proposal; or
                            ``(ii) any proposal for the first phase of 
                        the SBIR program from a small business concern 
                        located in a State that is eligible to 
                        participate in a technology development program 
                        if the proposal, though meritorious, is not 
                        funded through the SBIR program for that fiscal 
                        year due to funding restraints; and
                    ``(B) consider proposals described in subparagraph 
                (A) to be eligible for funding, as described in 
                subparagraph (A), if the applicant is located in a 
                State that is an eligible State.
            ``(3) Definition of `eligible state'.--In this subsection, 
        the term `eligible State' means a State in which the total 
        value of contracts awarded to small business concerns under the 
        SBIR program is less than the total value of contracts awarded 
        to small business concerns in a majority of other States, as 
        determined by the Administrator in biennial fiscal years, 
        beginning with fiscal year 2000, based on the most recent 
        statistics compiled by the Administrator.''.

SEC. 10. MENTORING NETWORKS.

    The Small Business Act (15 U.S.C. 631 et seq.) is amended by 
inserting before section 36, as redesignated by this Act, the 
following:

``SEC. 35. MENTORING NETWORKS.

    ``(a) Findings.--Congress finds that--
            ``(1) the SBIR and STTR programs create jobs, increase 
        capacity for technological innovation, and boost international 
        competitiveness;
            ``(2) increasing the quantity of applications from all 
        States to the SBIR and STTR programs would enhance competition 
        for such awards and the quality of the completed projects; and
            ``(3) mentoring is a natural complement to the FAST program 
        of reaching out to new companies regarding the SBIR and STTR 
        programs as an effective and low-cost way to improve the 
        likelihood that such companies will succeed in such programs in 
        developing and commercializing their research.
    ``(b) Definitions.--In this section--
            ``(1) the term `business advice and counseling' means 
        providing advice and assistance on matters described in 
        subsection (d)(2)(B) to small business concerns to guide them 
        through the SBIR and STTR program processes, from application 
        to award and successful completion of each phase of the 
        program;
            ``(2) the term `mentor' means an individual described in 
        subsection (d)(2); and
            ``(3) the term `Mentoring Network' means an association, 
        organization, coalition, or other entity (including an 
        individual) that meets the requirements of subsection (d).
    ``(c) Authorization for Mentoring Networks.--The recipient of an 
award or participant in a cooperative agreement under section 34 may 
use a reasonable amount of such assistance for the establishment of a 
Mentoring Network under this section.
    ``(d) Criteria for Mentoring Networks.--A Mentoring Network 
established using assistance under section 34 shall--
            ``(1) provide business advice and counseling to high 
        technology small business concerns located in the State or 
        region served by the network and identified under section 
        34(c)(1)(E)(ii) as potential candidates for the SBIR or STTR 
        programs;
            ``(2) identify volunteer mentors who--
                    ``(A) are persons associated with a small business 
                concern that has successfully completed one or more 
                SBIR or STTR funding agreements; and
                    ``(B) have agreed to guide small business concerns 
                through all stages of the SBIR or STTR program process, 
                including providing assistance relating to--
                            ``(i) proposal writing;
                            ``(ii) marketing;
                            ``(iii) Government accounting;
                            ``(iv) Government audits;
                            ``(v) project facilities and equipment;
                            ``(vi) human resources;
                            ``(vii) phase III partners;
                            ``(viii) commercialization;
                            ``(ix) venture capital networking; and
                            ``(x) other matters relevant to the SBIR 
                        and STTR programs;
            ``(3) have experience working with small business concerns 
        participating in the SBIR and STTR programs;
            ``(4) contribute information to the national database 
        referred to in subsection (e); and
            ``(5) agree to reimburse volunteer mentors for out-of-
        pocket expenses related to service as a mentor under this 
        section.
    ``(e) Mentoring Database.--The Administrator shall--
            ``(1) include in the database required by section 9(k), in 
        cooperation with the SBIR, STTR, and FAST programs, information 
        on Mentoring Networks and mentors participating under this 
        section, including a description of their areas of expertise;
            ``(2) work cooperatively with Mentoring Networks to 
        maintain and update the database;
            ``(3) take such action as may be necessary to aggressively 
        promote Mentoring Networks under this section; and
            ``(4) fulfill the requirements of this subsection either 
        directly or by contract.''.




                                                       Calendar No. 541

106th CONGRESS

  2d Session

                               H. R. 2392

                          [Report No. 106-289]

_______________________________________________________________________

                                 A BILL

  To amend the Small Business Act to extend the authorization for the 
  Small Business Innovation Research Program, and for other purposes.

_______________________________________________________________________

                              May 10, 2000

                       Reported with an amendment