[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2737 Introduced in Senate (IS)]
108th CONGRESS
2d Session
S. 2737
To facilitate the development of science parks, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 22, 2004
Mr. Bingaman introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To facilitate the development of science parks, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Science Park Administration Act of
2004''.
SEC. 2. DEVELOPMENT OF SCIENCE PARKS.
(a) Finding.--Section 2 of the Stevenson-Wydler Technology
Innovation Act of 1980 (15 U.S.C. 3701) is amended by adding at the end
the following new paragraph:
``(12) It is in the best interests of the Nation to
encourage the formation of science parks to promote the
clustering of innovation through high technology activities.''.
(b) Definition.--Section 4 of such Act (15 U.S.C. 3703) is amended
by adding at the end the following new paragraph:
``(14) `Science park' means a group of interrelated
companies and institutions, including suppliers, service
providers, institutions of higher education, and trade
associations that cooperate as well as compete and are located
in a specific area whose administration promotes real estate
development, technology transfer, and partnerships between such
companies and institutions.''.
(c) Promotion of Development of Science Parks.--Section 5(c) of
such Act (15 U.S.C. 3704(c)) is amended--
(1) in paragraph (14), by striking ``and'' at the end;
(2) in paragraph (15), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(16) promote the formation of science parks.''.
(d) Science Parks.--Such Act is further amended by adding at the
end the following new section:
``SEC. 24. SCIENCE PARKS.
``(a) Development of Plans for Construction of Science Parks.--
``(1) In general.--The Secretary shall award grants and
enter into contracts and cooperative agreements for the
development of plans for the construction of science parks.
``(2) Limitation on amount of grants, contracts, or
agreements.--The amount of a grant awarded, or contract or
cooperative agreement entered into, under this subsection may
not exceed $500,000.
``(3) Award or entry.--
``(A) Competition required.--The Secretary shall
award any grant, or enter into any contract or
cooperative agreement, for project under this
subsection pursuant to a peer-reviewed competition.
``(B) Advertising.--The Secretary shall advertise
any competition under this paragraph in the Commerce
Business Daily.
``(C) Selection criteria.--The Secretary shall
publish the criteria to be utilized in any competition
under this paragraph to select recipients of grants, or
parties to contracts or cooperative agreements, under
this subsection. Such criteria shall include
requirements relating to--
``(i) the number of jobs to be created at
the science park each year for a period of 5
years;
``(ii) the funding to be required to
construct the science park over the first 5
years;
``(iii) the amount and type of cost
matching by the applicant;
``(iv) the types of businesses and research
entities expected in the science park over the
first 5 years;
``(v) letters of intent by businesses and
research entities to locate in the science
park;
``(vi) the capacity of the science park for
expansion over a period of 25 years;
``(vii) the quality of life at the science
park for employees at the science park;
``(viii) the capability to attract a well
trained workforce to the science park;
``(ix) the management of the science park,
including a business plan of the management
entity to become self-sufficient;
``(x) expected risks in the construction
and operation of the science park;
``(xi) risk mitigation;
``(xii) transportation and logistics; and
``(xiii) physical infrastructure, including
telecommunications.
``(4) Authorization of appropriations.--There is authorized
to be appropriated for each of fiscal years 2005 through 2010,
$7,500,000 to carry out this subsection.
``(b) Revolving Loan Program for Development of Science Park
Infrastructure.--
``(1) In general.--The Secretary shall make grants to six
regional centers for the development of science park
infrastructure through the operation of revolving loan funds by
such centers.
``(2) Selection of centers.--
``(A) In general.--The Secretary shall select the
regional centers to be awarded grants under this
subsection utilizing such criteria as the Secretary
shall prescribe.
``(B) Criteria.--The criteria prescribed by the
Secretary under this paragraph shall include criteria
relating to revolving loan funds and revolving loan
fund operators under paragraph (4), including--
``(i) the qualifications of principal
officers;
``(ii) non-Federal cost matching
requirements;
``(iii) auditing of loan funds according to
Generally Accepted Accounting Principles
(GAAP);
``(iv) conditions for the termination of
loan funds; and
``(v) annual reporting requirements.
``(3) Limitation on project amount.--The amount of any
project for the development of science park infrastructure that
is funded under this subsection may not exceed $1,000,000.
``(4) Revolving loan funds.--
``(A) In general.--A regional center receiving a
grant under this subsection shall fund the development
of science park infrastructure through the utilization
of a revolving loan fund.
``(B) Operation and integrity.--The Secretary shall
prescribe regulations to maintain the proper operation
and financial integrity of revolving loan funds under
this paragraph.
``(C) Efficient administration.--The Secretary
may--
``(i) at the request of a grantee, amend
and consolidate grant agreements governing
revolving loan funds to provide flexibility
with respect to lending areas and borrower
criteria;
``(ii) assign or transfer assets of a
revolving loan fund to a third party for the
purpose of liquidation, and a third party may
retain assets of the fund to defray costs
related to liquidation; and
``(iii) take such actions as are
appropriate to enable revolving loan fund
operators to sell or securitize loans (except
that the actions may not include issuance of a
Federal guaranty by the Secretary).
``(D) Treatment of actions.--An action taken by the
Secretary under this paragraph with respect to a
revolving loan fund shall not constitute a new
obligation if all grant funds associated with the
original grant award have been disbursed to the
recipient.
``(E) Preservation of securities laws.--
``(i) Not treated as exempted securities.--
No securities issued pursuant to subparagraph
(C)(iii) shall be treated as exempted
securities for purposes of the Securities Act
of 1933 or the Securities Exchange Act of 1934,
unless exempted by rule or regulation of the
Securities and Exchange Commission.
``(ii) Preservation.--Except as provided in
clause (I), no provision of this paragraph or
any regulation issued by the Secretary under
this paragraph shall supersede or otherwise
affect the application of the securities laws
(as such term is defined in section 2(a)(47) of
the Securities Exchange Act of 1934) or the
rules, regulations, or orders of the Securities
and Exchange Commission or a self-regulatory
organization thereunder.
``(5) Authorization of appropriations.--There is authorized
to be appropriated for each of fiscal years 2005 through 2010,
$60,000,000 to carry out this subsection.
``(c) Loan Guarantees for Science Park Infrastructure.--
``(1) In general.--The Secretary shall guarantee loans for
projects for the construction of science park infrastructure.
``(2) Limitations on guarantee amounts.--The maximum amount
of loan principal guaranteed under this subsection may not
exceed--
``(A) $50,000,000 with respect to any single
project; and
``(B) $1,000,000,000 with respect to all projects.
``(3) Selection of guarantee recipients.--The Secretary
shall select recipients of loan guarantees under this
subsection utilizing such criteria as the Secretary shall
prescribe.
``(4) Oversight.--The Comptroller General of the United
States shall, on a biennial basis, conduct an audit of the
loans guaranteed under this subsection, and shall submit to
Congress a report on each audit conducted under this paragraph.
``(5) Termination.--No loan may be guaranteed under this
subsection after September 30, 2010.
``(6) Authorization of appropriations.--There is authorized
to be appropriated $1,000,000,000 for the cost, as defined in
section 502(5) of the Federal Credit Reform Act of 1990, of
loans guaranteed under this subsection.
``(d) National Academy of Sciences Evaluation of Science Park
Development.--
``(1) In general.--The Secretary shall enter into an
agreement with the National Academy of Sciences under which the
Academy shall evaluate, on an annual basis, the development of
science parks pursuant to activities under this section.
``(2) Annual report.--Under the agreement under paragraph
(1), the Academy shall submit to the Secretary each year a
report on its evaluation of science park development under that
paragraph. Each report may include such recommendations as the
Academy considers appropriate for additional activities to
promote and facilitate the development of science parks in the
United States.
``(e) Annual Report.--Not later than March 31 each year, the
Secretary shall submit to Congress a report on the activities under
this section during the preceding year, including the results of any
audit by the Comptroller General under subsection (c)(4) during such
year and any recommendations made by the National Academy of Sciences
under subsection (d)(2) during such year. Each report may include such
recommendations for legislative or administrative action as the
Secretary considers appropriate to further promote and facilitate the
development of science parks in the United States.
``(f) Regulations.--
``(1) Regulations.--The Secretary shall prescribe
regulations to carry out this section.
``(2) Deadline.--The Secretary shall prescribe such
regulations not later than one year after the date of the
enactment of the Science Park Administration Act of 2004.''.
SEC. 3. SCIENCE PARK VENTURE CAPITAL FUND PILOT PROGRAM.
Title III of the Small Business Investment Act of 1958 (15 U.S.C.
681 et seq.) is amended by adding at the end the following:
``PART C--SCIENCE PARK VENTURE CAPITAL FUND PILOT PROGRAM
``SEC. 371. DEFINITIONS.
``As used in this part, the following definitions shall apply:
``(1) Equity capital.--The term `equity capital' means
common or preferred stock or a similar instrument, including
subordinated debt with equity features.
``(2) High-technology.--The term `high-technology' means
any of the high technology industries in the North American
Industrial Classification System, as listed in table 8-25 of
the National Science Board publication entitled `Science and
Engineering Indicators 2004'.
``(3) Leverage.--The term `leverage' includes--
``(A) debentures purchased or guaranteed by the
Administrator;
``(B) participating securities purchased or
guaranteed by the Administrator; and
``(C) preferred securities outstanding as of the
date of enactment of this part.
``(4) Mezzanine financing.--The term `mezzanine financing'
means late-stage venture capital usually associated with the
final round of financing prior to an initial public offering.
``(5) Operational assistance.--The term `operational
assistance' means management, marketing, and other technical
assistance that assists high-technology start-up companies with
business development.
``(6) Participation agreement.--The term `participation
agreement' means an agreement, between the Administrator and a
company granted final approval by the Administrator under
section 374(e), that--
``(A) details the operating plan and investment
criteria of the company; and
``(B) requires the company to make investments in
high-technology start-up companies within a science
park.
``(7) Private capital.--The term `private capital'--
``(A) means the total of--
``(i)(I) the paid-in capital and paid-in
surplus of a corporate science park venture
capital company;
``(II) the contributed capital of the
partners of a partnership science park venture
capital company; or
``(III) the equity investment of the
members of a limited liability company science
park venture capital company; and
``(ii) unfunded binding commitments from
investors that meet criteria established by the
Administrator to contribute capital to the
science park venture capital company, except
that--
``(I) unfunded commitments may be
counted as private capital for purposes
of approval by the Administrator of any
request for leverage; and
``(II) leverage shall not be funded
based on the commitments; and
``(B) does not include--
``(i) any funds borrowed by a science park
venture capital company from any source;
``(ii) any funds obtained through the
issuance of leverage; or
``(iii) any funds obtained directly or
indirectly from Federal, State, or local
government, except for--
``(I) funds obtained from the
business revenues of any federally
chartered or government-sponsored
enterprise established before the date
of enactment of this part;
``(II) funds invested by an
employee welfare benefit plan or
pension plan; and
``(III) any qualified nonprivate
funds, if the investors of such funds
do not directly or indirectly control
the management, board of directors,
general partners, or members of the
science park venture capital company.
``(8) Program.--The term `Program' means the Science Park
Venture Capital Program established under section 372.
``(9) Qualified nonprivate funds.--The term `qualified
nonprivate funds' means--
``(A) any funds directly or indirectly invested in
any applicant or science park venture capital company
on or before the date of enactment of this part, by any
Federal agency other than the Administration, under a
law explicitly mandating the inclusion of those funds
in the definition of the term private capital; and
``(B) any funds invested in any applicant or
science park venture capital company by 1 or more
entities of any State, including any guarantee extended
by any such entity, in an aggregate amount not to
exceed 33 percent of the private capital of the
applicant or science park venture capital company.
``(10) Science park.--The term `science park' means a group
of interrelated companies and institutions, including
suppliers, service providers, institutions of higher education,
and trade associations that cooperate as well as compete and
are located in a specific area whose administration promotes
real estate development, technology transfer, and partnerships
between such companies and institutions.
``(11) Science park venture capital.--The term `science
park venture capital' means equity capital investments in high-
technology start-up businesses located in science parks to
foster economic development and technological innovation.
``(12) Science park venture capital company.--The term
`science park venture capital company' means a company that--
``(A) meets the requirements under section 373;
``(B) has been granted final approval by the
Administrator under section 374(e); and
``(C) has entered into a participation agreement
with the Administrator.
``(13) Start-up company.--The term `start-up company' means
a company that has developed intellectual property protection
of research and development, but has not reached the stage
associated with mezzanine financing.
``(14) State.--The term `State' means each of the several
States of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, the Virgin Islands, Guam, American
Samoa, the Commonwealth of the Northern Mariana Islands, and
any other commonwealth, territory, or possession of the United
States.
``SEC. 372. ESTABLISHMENT.
``There is established a Science Park Venture Capital Program,
under which the Administrator may--
``(1) enter into participation agreements with companies
granted final approval under section 373(e);
``(2) guarantee the debentures issued by science park
venture capital companies under section 374; and
``(3) award grants to science park venture capital
companies under section 376.
``SEC. 373. REQUIREMENTS FOR SCIENCE PARK VENTURE CAPITAL COMPANIES.
``(a) Organization.--For purposes of this part, a science park
venture capital company--
``(1) shall be an incorporated body, a limited liability
company, or a limited partnership organized and chartered, or
otherwise existing under State law solely for the purpose of
performing the functions and conducting the activities
authorized by this part;
``(2) if incorporated, shall have succession for a period
of not less than 30 years unless earlier dissolved by the
shareholders of the company;
``(3) if a limited partnership or a limited liability
company, shall have succession for a period of not less than 10
years; and
``(4) shall possess the powers reasonably necessary to
perform the functions and conduct the activities.
``(b) Articles.--The articles of any science park venture capital
company--
``(1) shall specify in general terms--
``(A) the purposes for which the company is formed;
``(B) the name of the company;
``(C) the area or areas in which the operations of
the company are to be carried out;
``(D) the place where the principal office of the
company is to be located; and
``(E) the amount and classes of the shares of
capital stock of the company;
``(2) may contain any other provisions consistent with this
part that the science park venture capital company may
determine to be appropriate to adopt for the regulation of the
business of the company and the conduct of the affairs of the
company; and
``(3) shall be subject to the approval of the
Administrator.
``(c) Capital Requirements.--
``(1) In general.--Except as provided in paragraph (2), the
private capital of each science park venture capital company
shall be not less than--
``(A) $5,000,000; or
``(B) $10,000,000, with respect to each science
park venture capital company authorized or seeking
authority to issue participating securities to be
purchased or guaranteed by the Administrator under this
part.
``(2) Exception.--The Secretary may, in the discretion of
the Administrator, and based on a showing of special
circumstances and good cause, permit the private capital of
science park venture capital company described in paragraph
(1)(B) to be less than $10,000,000, but not less than
$5,000,000, if the Administrator determines that the action
would not create or otherwise contribute to an unreasonable
risk of default or loss to the Federal Government.
``(3) Adequacy.--In addition to the requirements under
paragraph (1), the Administrator shall--
``(A) determine whether the private capital of each
science park venture capital company is adequate to
ensure a reasonable prospect that the company will be
operated soundly and profitably, and managed actively
and prudently in accordance with the articles of the
company;
``(B) determine that the science park venture
capital company will be able to comply with the
requirements of this part;
``(C) ensure that the science park venture capital
company is designed primarily to meet equity capital
needs of the businesses in which the company invests
and not to compete with traditional financing by
commercial lenders of high-technology startup
businesses; and
``(D) require that the science park venture capital
company makes short-term non-equity investments of less
than 5 years only to the extent necessary to preserve
an existing investment.
``(d) Diversification of Ownership.--The Administrator shall ensure
that the management of each science park venture capital company
licensed after the date of enactment of this part is sufficiently
diversified from, and unaffiliated with, the ownership of the company
so as to ensure independence and objectivity in the financial
management and oversight of the investments and operations of the
company.
``SEC. 374. SELECTION OF SCIENCE PARK VENTURE CAPITAL COMPANIES.
``(a) Eligibility.--A company is eligible to participate as a
science park venture capital company in the Program if the company--
``(1) is a newly formed for-profit entity or a newly formed
for-profit subsidiary of an existing entity;
``(2) has a management team in the science park with
experience in development financing or relevant venture capital
financing; and
``(3) has a primary objective of economic development of
the science park and its surrounding geographic area.
``(b) Application.--Any eligible company that desires to
participate as a science park venture capital company in the Program
shall submit an application to the Administrator, which shall include--
``(1) a business plan describing how the company intends to
make successful venture capital investments in start up
companies within the science park;
``(2) a description of the qualifications and general
reputation of the management of the company;
``(3) an estimate of the ratio of cash to in-kind
contributions of binding commitments to be made to the company
under the Program;
``(4) a description of the criteria to be used to evaluate
whether, and to what extent, the company meets the objectives
of the Program;
``(5) information regarding the management and financial
strength of any parent firm, affiliated firm, or other firm
essential to the success of the business plan of the company;
and
``(6) such other information as the Administrator may
require.
``(c) Status.--Not later than 90 days after the initial receipt by
the Administrator of an application under this section, the
Administrator shall provide to the applicant a written report that
describes the status of the applicants and any requirements remaining
for completion of the application.
``(d) Matters Considered.--In reviewing and processing any
application under this section, the Administrator--
``(1) shall determine if--
``(A) the applicant meets the requirements under
subsection (e); and
``(B) the management of the applicant is qualified
and has the knowledge, experience, and capability
necessary to comply with this part;
``(2) shall take into consideration--
``(A) the need for and availability of financing
for high-technology start-up companies in the science
park in which the applicant is to commence business;
``(B) the general business reputation of the owners
and management of the applicant; and
``(C) the probability of successful operations of
the applicant, including adequate profitability and
financial soundness; and
``(3) shall not take into consideration any projected
shortage or unavailability of grant funds or leverage.
``(e) Approval; License.--The Administrator may approve an
applicant to operate as a science park venture capital company under
this part and license the applicant as a science park venture capital
company, if--
``(1) the Administrator determines that the application
satisfies the requirements under subsection (b);
``(2) the Administrator approves--
``(A) the area in which the science park venture
capital company is to conduct its operations; and
``(B) the establishment of branch offices or
agencies (if authorized by the articles); and
``(3) the applicant enters into a participation agreement
with the Administrator.
``SEC. 375. DEBENTURES.
``(a) Guarantees.--The Administrator may guarantee the timely
payment of principal and interest, as scheduled, on debentures issued
by any science park venture capital company.
``(b) Terms and Conditions.--The Administrator may make guarantees
under this section on such terms and conditions as the Administrator
determines to be appropriate, except that the term of any debenture
guaranteed under this section shall not exceed 15 years.
``(c) Full Faith and Credit of the United States.--The full faith
and credit of the United States is pledged to pay all amounts that may
be required to be paid under any guarantee under this part.
``(d) Maximum Guarantee.--The Administrator may--
``(1) guarantee the debentures issued by a science park
venture capital company only to the extent that the total face
amount of outstanding guaranteed debentures of such company
does not exceed the lesser of--
``(A) 300 percent of the private capital of the
company, or
``(B) $100,000,000; and
``(2) provide for the use of discounted debentures.
``SEC. 376. ISSUANCE AND GUARANTEE OF TRUST CERTIFICATES.
``(a) Issuance.--The Administrator may issue trust certificates
representing ownership of all or a part of debentures issued by a
science park venture capital company and guaranteed by the
Administrator under this part, if such certificates are based on and
backed by a trust or pool approved by the Administrator and composed
solely of guaranteed debentures.
``(b) Guarantee.--
``(1) In general.--The Administrator may, under such terms
and conditions as it deems appropriate, guarantee the timely
payment of the principal of and interest on trust certificates
issued by the Administrator or its agents for purposes of this
section.
``(2) Limitation.--Each guarantee under this subsection
shall be limited to the extent of principal and interest on the
guaranteed debentures that compose the trust or pool.
``(3) Prepayment or default.--
``(A) In general.--In the event that a debenture in
a trust or pool is prepaid, or in the event of default
of such a debenture, the guarantee of timely payment of
principal and interest on the trust certificates shall
be reduced in proportion to the amount of principal and
interest such prepaid debenture represents in the trust
or pool.
``(B) Interest.--Interest on prepaid or defaulted
debentures shall accrue and be guaranteed by the
Administrator only through the date of payment of the
guarantee.
``(C) Redemption.--At any time during its term, a
trust certificate may be called for redemption due to
prepayment or default of all debentures.
``(c) Full Faith and Credit.--The full faith and credit of the
United States is pledged to pay all amounts that may be required to be
paid under any guarantee of a trust certificate issued by the
Administrator or its agents under this section.
``(d) Subrogation and Ownership Rights.--
``(1) Subrogation.--If the Administrator pays a claim under
a guarantee issued under this section, it shall be subrogated
fully to the rights satisfied by such payment.
``(2) Ownership rights.--No provision of Federal, State, or
local law shall preclude or limit the exercise by the
Administrator of its ownership rights in the debentures
residing in a trust or pool against which 1 or more trust
certificates are issued under this section.
``(e) Management and Administration.--
``(1) Registration.--The Administrator may provide for a
central registration of all trust certificates issued under
this section.
``(2) Contracting of functions.--
``(A) In general.--Notwithstanding any other
provision of law, the Administrator may contract with
an agent or agents to carry out on behalf of the
Administrator the pooling and the central registration
functions provided for in this section, including--
``(i) maintenance, on behalf of and under
the direction of the Administrator, of such
commercial bank accounts or investments in
obligations of the United States as may be
necessary to facilitate the creation of trusts
or pools backed by debentures guaranteed under
this part; and
``(ii) the issuance of trust certificates
to facilitate the creation of such trusts or
pools.
``(B) Fidelity bond or insurance requirement.--Any
agent performing functions on behalf of the
Administrator under this paragraph shall provide a
fidelity bond or insurance in such amounts as the
Administrator determines necessary to fully protect the
interests of the United States.
``(C) Regulation of brokers and dealers.--The
Administrator may regulate brokers and dealers in trust
certificates issued under this section.
``(D) Electronic registration.--Nothing in this
subsection may be construed to prohibit the use of a
book entry or other electronic form of registration for
trust certificates issued under this section.
``SEC. 377. OPERATIONAL ASSISTANCE GRANTS.
``(a) In General.--
``(1) Grants authorized.--The Administrator may award
grants to science park venture capital companies and other
entities to provide operational assistance to high-technology
start-up companies financed, or expected to be financed, by
such companies.
``(2) Terms.--Grants under this subsection shall be made
over a period not to exceed 10 years, under such other terms as
the Administrator may require.
``(3) Grant amount.--Each grant awarded under this
subsection shall be equal to the lesser of--
``(A) 10 percent of the private capital raised by
the science park venture capital company; or
``(B) $1,000,000.
``(4) Other entities.--The amount of a grant made under
this subsection to any entity other than a science park venture
capital company shall be equal to the resources (in cash or in
kind) raised by the entity in accordance with the requirements
applicable to science park venture capital companies under this
part.
``(b) Supplemental Grants.--
``(1) In general.--The Administrator may award supplemental
grants to science park venture capital companies and other
entities, under such terms as the Administrator may require, to
provide additional operational assistance to start-up companies
financed, or expected to be financed, by such companies or
entities.
``(2) Matching requirement.--The Administrator may require,
as a condition of any supplemental grant made under this
subsection, that the company or entity receiving the grant
provide a matching contribution equal to the amount of the
supplemental grant from non-Federal cash or in-kind resources.
``(c) Limitation.--None of the assistance made available under this
section may be used for any overhead or general and administrative
expense of a science park venture capital company or other entity.
``SEC. 378. REPORTING REQUIREMENTS.
``(a) Science Park Venture Capital Companies.--Each science park
venture capital company shall provide the Administrator with such
information as the Administrator may require, including information
relating to the criteria described in section 374(b)(4).
``(b) Public Reports.--
``(1) In general.--The Administrator shall prepare and make
available to the public an annual report on the Program, which
shall include detailed information on--
``(A) the number of science park venture capital
companies licensed by the Administrator during the
previous fiscal year;
``(B) the aggregate amount of leverage that science
park venture capital companies have received from the
Federal Government during the previous fiscal year;
``(C) the aggregate number of each type of
leveraged instruments used by science park venture
capital companies during the previous fiscal year, and
how each such number compares to the number in previous
fiscal years;
``(D) for the previous fiscal year, the number of--
``(i) science park venture capital company
licenses surrendered; and
``(ii) the number of science park venture
capital companies placed in liquidation;
``(E) the amount and type of leverage each such
company has received from the Federal Government;
``(F) the amount of losses sustained by the Federal
Government as a result of operations under this part
during the previous fiscal year and an estimate of the
total losses that the Federal Government can reasonably
expect to incur as a result of the operations during
the current fiscal year;
``(G) actions taken by the Administrator to
maximize recoupment of funds of the Federal Government
expended to implement and administer the Program during
the previous fiscal year and to ensure compliance with
the requirements of this part, including implementing
regulations;
``(H) the amount of Federal Government leverage
that each licensee received in the previous fiscal year
and the types of leverage instruments used by each
licensee;
``(I) for each type of financing instrument, the
sizes, types of geographic locations, and other
characteristics of the small business investment
companies using the instrument during the previous
fiscal year, including the extent to which the
investment companies have used the leverage from each
instrument to make loans or equity investments in
science parks; and
``(J) the actions of the Administrator to carry out
this part.
``(2) Prohibition.--In compiling the report required under
paragraph (1), the Administrator may not--
``(A) compile the report in a manner that permits
identification of any particular type of investment by
an individual science park venture capital company in
which a science park venture capital company invests;
or
``(B) release any information that is prohibited
under section 1905 of title 18, United States Code.
``SEC. 379. EXAMINATIONS.
``(a) In General.--Each science park venture capital company that
participates in the Program shall be subject to examinations made at
the direction of the Administrator, in accordance with this section.
``(b) Assistance of Private Sector Entities.--An examination under
this section may be conducted with the assistance of a private sector
entity that has the qualifications and expertise necessary to conduct
such an examination.
``(c) Costs.--
``(1) In general.--The Administrator may assess the cost of
an examination under this section, including compensation of
the examiners, against the science park venture capital company
examined.
``(2) Payment.--Any science park venture capital company
against which the Administrator assesses costs under this
subsection shall pay the costs assessed.
``(d) Deposit of Funds.--Funds collected under this section--
``(1) shall be deposited in the account that incurred the
costs for carrying out this section;
``(2) shall be made available to the Administrator to carry
out this section, without further appropriation; and
``(3) shall remain available until expended.
``SEC. 380. BANK PARTICIPATION.
``(a) In General.--Except as provided under subsection (b), any
national bank, any member bank of the Federal Reserve System, and, to
the extent permitted under applicable State law, any insured bank that
is not a member of such system, may invest in--
``(1) any science park venture capital company; or
``(2) any entity established to invest solely in science
park venture capital companies.
``(b) Limitation.--No bank described in subsection (a) may make
investments described in that subsection that are greater than 5
percent of the capital and surplus of the bank.
``SEC. 381. FEES.
``(a) In General.--Except as provided under subsection (b), the
Administrator may charge such fees as it determines to be appropriate
with respect to any guarantee or grant issued under this part.
``(b) Exception.--The Administrator shall not collect a fee for any
guarantee of a trust certificate under this section. Any agent of the
Administrator may collect a fee, upon the approval of the
Administrator, for the functions described in section 376(e)(2).
``SEC. 382. APPLICABLE LAW.
``(a) In General.--The provisions relating to New Market Venture
Capital companies under sections 361 through section 366 shall apply to
science park venture capital companies.
``(b) Purchase of Guaranteed Obligations.--Section 318 shall not
apply to any debenture issued by a science park venture capital company
under this part.
``SEC. 383. REGULATIONS.
`` Not later than 12 months after the date of enactment of this
part, the Administrator shall issue such regulations as it determines
necessary to carry out this part.
``SEC. 384. AUTHORIZATIONS OF APPROPRIATIONS.
``(a) In General.--There are authorized to be appropriated to the
Administration for each of the fiscal years 2005 through 2010, to
remain available until expended--
``(1) such subsidy budget authority as may be necessary to
guarantee $1,000,000,000 of debentures under this part; and
``(2) $50,000,000 to make grants under this part.
``(b) Funds Collected for Examinations.--Funds deposited pursuant
to section 362(d) may only be used for--
``(1) examinations under section 362; and
``(2) other oversight activities of the Program.''.
SEC. 4. TAX INCENTIVES FOR INVESTMENT IN SCIENCE PARKS.
(a) Expensing.--
(1) In general.--Section 179(d) of the Internal Revenue
Code of 1986 (relating to definitions and special rules) is
amended by adding at the end the following new paragraph:
``(11) Application of section to property placed in service
in science parks.--
``(A) In general.--In the case of any section 179
property placed in service in any science park, this
section shall be applied without regard to paragraphs
(1) and (2) of subsection (b).
``(B) Science park.--The term `science park' means
a group of interrelated companies and institutions,
including suppliers, service providers, institutions of
higher education, and trade associations that cooperate
as well as compete and are located in a specific area
approved by the Secretary and whose administration
promotes real estate development, technology transfer,
and partnerships between such companies and
institutions.''.
(2) Effective date.--The amendment made by this subsection
shall apply with respect to property placed in service after
the date of the enactment of this Act.
(b) Wage Credit.--
(1) Member of targeted group.--Section 51(d)(1) of the
Internal Revenue Code of 1986 (defining members of targeted
groups) is amended by striking ``or'' at the end of
subparagraph (G), by striking the period at the end of
subparagraph (H) and inserting ``, or'', and by adding at the
end the following new subparagraph:
``(I) a science park employee.''.
(2) Science park employee.--Section 51(d) of such Code is
amended by adding at the end the following new paragraph:
``(13) Science park employee.--
``(A) In general.--The term `science park employee'
means, with respect to any period, any employee of any
trade or business located in a science park if
substantially all the services performed during such
period by such employee for such business are performed
in such science park.
``(B) Science park.--The term `science park' means
a group of interrelated companies and institutions,
including suppliers, service providers, institutions of
higher education, and trade associations that cooperate
as well as compete and are located in a specific area
approved by the Secretary and whose administration
promotes real estate development, technology transfer,
and partnerships between such companies and
institutions.''.
(3) Effective date.--The amendments made this subsection
shall apply to any amount paid or incurred to an individual who
begins work for the employer after the date of the enactment of
this Act.
(c) Tax Credit for Research Activities.--
(1) In general.--Section 41(a) of the Internal Revenue Code
of 1986 (relating to credit for increasing research activities)
is amended by striking ``and'' at the end of paragraph (1)(B),
by striking the period at the end of paragraph (2) and
inserting ``, and'', and by adding at the end the following new
paragraph:
``(3) 20 percent of the qualified research expenses paid or
incurred by the taxpayer during the taxable year in carrying on
any trade or business located in a science park.''.
(2) Space park.--Section 41(f) of such Code (relating to
special rules) is amended by adding at the end the following
new paragraph:
``(6) Science park.--The term `science park' means a group
of interrelated companies and institutions, including
suppliers, service providers, institutions of higher education,
and trade associations that cooperate as well as compete and
are located in a specific area approved by the Secretary and
whose administration promotes real estate development,
technology transfer, and partnerships between such companies
and institutions.''.
(3) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after the date of the
enactment of this Act.
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