[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 3362 Reported in Senate (RS)]






                                                       Calendar No. 943
110th CONGRESS
  2d Session
                                S. 3362

                          [Report No. 110-447]

 To reauthorize and improve the SBIR and STTR programs, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                July 29 (legislative day, July 28), 2008

  Mr. Kerry (for himself, Ms. Snowe, Mr. Lieberman, Ms. Landrieu, Mr. 
Bayh, Mr. Cardin, Mr. Coleman, Mr. Levin, and Mr. Brown) introduced the 
 following bill; which was read twice and referred to the Committee on 
                  Small Business and Entrepreneurship

              August 22 (legislative day, August 1), 2008

Reported under authority of the order of the Senate of August 1, 2008, 
                    by Mr. Kerry, without amendment

_______________________________________________________________________

                                 A BILL


 
 To reauthorize and improve the SBIR and STTR programs, 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 ``SBIR/STTR Reauthorization Act of 
2008''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
         TITLE I--REAUTHORIZATION OF THE SBIR AND STTR PROGRAMS

Sec. 101. Extension of termination dates.
Sec. 102. Status of the office of technology.
Sec. 103. SBIR cap increase.
Sec. 104. STTR cap increase.
Sec. 105. SBIR and STTR award levels.
Sec. 106. Agency and program collaboration.
Sec. 107. Elimination of Phase II invitations.
Sec. 108. Majority-venture investments in SBIR firms.
Sec. 109. SBIR and STTR special acquisition preference.
Sec. 110. Collaborating with Federal laboratories and research and 
                            development centers.
Sec. 111. Notice requirement.
          TITLE II--OUTREACH AND COMMERCIALIZATION INITIATIVES

Sec. 201. Rural and State outreach.
Sec. 202. SBIR-STEM Workforce Development Grant Pilot Program.
Sec. 203. Technical assistance for awardees.
Sec. 204. Commercialization pilot program at Department of Defense.
Sec. 205. Commercialization Pilot Program for civilian agencies.
Sec. 206. Nanotechnology initiative.
Sec. 207. Accelerating cures.
                  TITLE III--OVERSIGHT AND EVALUATION

Sec. 301. Streamlining annual evaluation requirements.
Sec. 302. Data collection from agencies for SBIR.
Sec. 303. Data collection from agencies for STTR.
Sec. 304. Public database.
Sec. 305. Government database.
Sec. 306. Accuracy in funding base calculations.
Sec. 307. Continued evaluation by the National Academy of Sciences.
Sec. 308. Technology insertion reporting requirements.
Sec. 309. Intellectual property protections.
                      TITLE IV--POLICY DIRECTIVES

Sec. 401. Conforming amendments to the SBIR and the STTR policy 
                            directives.

SEC. 3. DEFINITIONS.

    In this Act--
            (1) the terms ``Administration'' and ``Administrator'' mean 
        the Small Business Administration and the Administrator 
        thereof, respectively;
            (2) the terms ``extramural budget'', ``Federal agency'', 
        ``Small Business Innovation Research Program'', ``SBIR'', 
        ``Small Business Technology Transfer Program'', and ``STTR'' 
        have the meanings given such terms in section 9 of the Small 
        Business Act (15 U.S.C. 638); and
            (3) the term ``small business concern'' has the same 
        meaning as under section 3 of the Small Business Act (15 U.S.C. 
        632).

         TITLE I--REAUTHORIZATION OF THE SBIR AND STTR PROGRAMS

SEC. 101. EXTENSION OF TERMINATION DATES.

    (a) SBIR.--Section 9(m) of the Small Business Act (15 U.S.C. 
638(m)) is amended by striking ``2008'' and inserting ``2022''.
    (b) STTR.--Section 9(n)(1)(A) of the Small Business Act (15 U.S.C. 
638(n)(1)(A)) is amended by striking ``2009'' and inserting ``2023''.

SEC. 102. STATUS OF THE OFFICE OF TECHNOLOGY.

    Section 9(b) of the Small Business Act (15 U.S.C. 638(b)) 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'';
            (3) by redesignating paragraph (8) as paragraph (9); and
            (4) by adding at the end the following:
            ``(10) to maintain an Office of Technology--
                    ``(A) to carry out its responsibilities under this 
                section, headed by the Assistant Administrator for 
                Technology, who shall report directly to the 
                Administrator; and
                    ``(B) which shall be independent from the Office of 
                Government Contracting and sufficiently staffed and 
                funded to comply with the oversight, reporting, and 
                public database responsibilities assigned to the Office 
                of Technology by the Administrator.''.

SEC. 103. SBIR CAP INCREASE.

    Section 9(f) of the Small Business Act (15 U.S.C. 638(f)) is 
amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (B), by striking ``and'' at the 
                end; and
                    (B) by striking subparagraph (C) and inserting the 
                following:
                    ``(C) not less than 2.5 percent of such budget in 
                fiscal year 2009;
                    ``(D) not less than 2.6 percent of such budget in 
                fiscal year 2010;
                    ``(E) not less than 2.7 percent of such budget in 
                fiscal year 2011;
                    ``(F) not less than 2.8 percent of such budget in 
                fiscal year 2012;
                    ``(G) not less than 2.9 percent of such budget in 
                fiscal year 2013;
                    ``(H) not less than 3.0 percent of such budget in 
                fiscal year 2014;
                    ``(I) not less than 3.1 percent of such budget in 
                fiscal year 2015;
                    ``(J) not less than 3.2 percent of such budget in 
                fiscal year 2016;
                    ``(K) not less than 3.3 percent of such budget in 
                fiscal year 2017;
                    ``(L) not less than 3.4 percent of such budget in 
                fiscal year 2018; and
                    ``(M) not less than 3.5 percent of such budget in 
                fiscal year 2019 and each fiscal year thereafter,''; 
                and
            (2) in paragraph (2)--
                    (A) by redesignating subparagraphs (A) and (B) as 
                clauses (i) and (ii), respectively, and adjusting the 
                margins accordingly;
                    (B) by striking ``A Federal agency'' and inserting 
                the following:
                    ``(A) In general.--A Federal agency''; and
                    (C) by adding at the end the following:
                    ``(B) Department of defense and department of 
                energy.--For the Department of Defense and the 
                Department of Energy, to the greatest extent 
                practicable, the increased percentage of expenditures 
                required under subparagraphs (D) through (M) of 
                paragraph (1) shall not be used for new Phase I or 
                Phase II awards and shall be used for activities that 
                further the technology readiness levels of technologies 
                being developed under Phase II awards, including to 
                conduct testing and evaluation, in order to promote the 
                transition of such technologies into commercial or 
                defense products or systems furthering the mission 
                needs of the Department of Defense or the Department of 
                Energy, as the case may be.
                    ``(C) Department of health and human services.--
                Subparagraphs (D) through (M) of paragraph (1) shall 
                not apply to the Department of Health and Human 
                Services. For fiscal year 2009, and each fiscal year 
                thereafter, the Department of Health and Human Services 
                shall expend with small business concerns not less than 
                2.5 percent of the extramural budget for research or 
                research and development of the department of Health 
                and Human Services.''.

SEC. 104. STTR CAP INCREASE.

    Section 9(n)(1)(B) of the Small Business Act (15 U.S.C. 
638(n)(1)(B)) is amended--
            (1) in clause (i), by striking ``and'' at the end;
            (2) in clause (ii), by striking ``thereafter.'' and 
        inserting ``through fiscal year 2009;''; and
            (3) by adding at the end the following:
                            ``(iii) 0.4 percent for fiscal years 2010 
                        and 2011;
                            ``(iv) 0.5 percent for fiscal years 2012 
                        and 2013; and
                            ``(v) 0.6 percent for fiscal year 2014 and 
                        each fiscal year thereafter.''.

SEC. 105. SBIR AND STTR AWARD LEVELS.

    (a) SBIR Adjustments.--Section 9(j)(2)(D) of the Small Business Act 
(15 U.S.C. 638(j)(2)(D)) is amended--
            (1) by striking ``$100,000'' and inserting ``$150,000''; 
        and
            (2) by striking ``$750,000'' and inserting ``$1,000,000''.
    (b) STTR Adjustments.--Section 9(p)(2)(B)(ix) of the Small Business 
Act (15 U.S.C. 638(p)(2)(B)(ix)) is amended--
            (1) by striking ``$100,000'' and inserting ``$150,000''; 
        and
            (2) by striking ``$750,000'' and inserting ``$1,000,000''.
    (c) Triennial Adjustments.--Section 9 of the Small Business Act (15 
U.S.C. 638) is amended--
            (1) in subsection (j)(2)(D)--
                    (A) by striking ``5 years'' and inserting ``3 
                years''; and
                    (B) by striking ``and programmatic 
                considerations''; and
            (2) in subsection (p)(2)(B)(ix) by striking ``greater or 
        lesser amounts to be awarded at the discretion of the awarding 
        agency,'' and inserting ``and an adjustment for inflation of 
        such amounts once every 3 years,''.
    (d) Limitation on Certain Awards.--Section 9 of the Small Business 
Act (15 U.S.C. 638) is amended by adding at the end the following:
    ``(aa) Limitation on Certain Awards.--No Federal agency may issue 
an award under the SBIR program or the STTR program if the size of the 
award exceeds the award guidelines established under this section by 
more than 50 percent. Participating agencies shall maintain information 
on awards exceeding the guidelines, including award amounts, 
justification for exceeding the amount, identities and locations of 
recipients, whether a recipient has received venture capital investment 
and, if so, if the recipient is majority-owned and controlled by 
multiple venture capital companies, and the Administration shall 
include such information in its annual report to Congress.''.

SEC. 106. AGENCY AND PROGRAM COLLABORATION.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
this Act, is amended by adding at the end the following:
    ``(bb) Subsequent Phases.--
            ``(1) Agency collaboration.--A small business concern that 
        received an award from a Federal agency under this section 
        shall be eligible to receive an award for a subsequent phase 
        from another Federal agency, if the head of each relevant 
        Federal agency or its component makes a written determination 
        that the topics of the relevant awards are the same and both 
        agencies report the awards to the Administration for inclusion 
        in the public database under subsection (k).
            ``(2) SBIR and sttr collaboration.--A small business 
        concern which received an award under this section under the 
        SBIR program or the STTR program may receive an award under 
        this section for a subsequent phase in either the SBIR program 
        or the STTR program and the participating agency or agencies 
        shall report the awards to the Administration for inclusion in 
        the public database under subsection (k).''.

SEC. 107. ELIMINATION OF PHASE II INVITATIONS.

    Section 9(e) of the Small Business Act (15 U.S.C. 638(e)) is 
amended--
            (1) in paragraph (4)(B), by striking ``to further'' and 
        inserting: ``not encumbered by any invitation, pre-screening, 
        pre-selection, or down-selection process between the first 
        phase and the second phase that will further''; and
            (2) in paragraph (6)(B), by striking ``to further develop 
        proposed ideas to'' and inserting ``not encumbered by any 
        invitation, pre-screening, pre-selection, or down-selection 
        process between the first phase and the second phase that will 
        further develop proposals which''.

SEC. 108. MAJORITY-VENTURE INVESTMENTS IN SBIR FIRMS.

    (a) In General.--Section 9 of the Small Business Act (15 U.S.C. 
638), as amended by this Act, is amended by adding at the end the 
following:
    ``(cc) Majority-Venture Investments in SBIR Firms.--
            ``(1) Authority and determination.--
                    ``(A) In general.--Upon a written determination 
                provided not later than 30 days in advance to the 
                Administrator and to the Committee on Small Business 
                and Entrepreneurship of the Senate and the Committee on 
                Small Business of the House of Representatives--
                            ``(i) the head of the SBIR program of the 
                        National Institutes of Health may award not 
                        more than 18 percent of the SBIR funds of the 
                        National Institutes of Health allocated in 
                        accordance with this Act, in the first full 
                        fiscal year beginning after the date of 
                        enactment of this subsection, and each fiscal 
                        year thereafter, to small business concerns 
                        that are owned in majority part by venture 
                        capital companies and that satisfy the 
                        qualification requirements under paragraph (2) 
                        through competitive, merit-based procedures 
                        that are open to all eligible small business 
                        concerns; and
                            ``(ii) the head of any other Federal agency 
                        participating in the SBIR program may award not 
                        more than 8 percent of the SBIR funds of the 
                        Federal agency allocated in accordance with 
                        this Act, in the first full fiscal year 
                        beginning after the date of enactment of this 
                        subsection, and each fiscal year thereafter, to 
                        small business concerns that are owned in 
                        majority part by venture capital companies and 
                        that satisfy the qualification requirements 
                        under paragraph (2) through competitive, merit-
                        based procedures that are open to all eligible 
                        small business concerns.
                    ``(B) Determination.--A written determination under 
                subparagraph (A) shall demonstrate that the use of the 
                authority under that subparagraph will induce 
                additional venture capital funding of small business 
                innovations, substantially contribute to the mission of 
                the funding Federal agency, demonstrate a need for 
                public research, and otherwise fulfill the capital 
                needs of small business concerns for additional 
                financing for the SBIR project.
            ``(2) Qualification requirements.--The Administrator shall 
        establish requirements relating to the affiliation by small 
        business concerns with venture capital companies, which may not 
        exclude a United States small business concern from 
        participation in the program under paragraph (1) on the basis 
        that the small business concern is owned in majority part by, 
        or controlled by, more than 1 United States venture capital 
        company, so long as no single venture capital company owns more 
        than 49 percent of the small business concern.
            ``(3) Registration.--Any small business concern that is 
        majority owned and controlled by multiple venture capital 
        companies and qualified for participation in the program 
        authorized under paragraph (1) shall--
                    ``(A) register with the Administrator on the date 
                that the small business concern submits an application 
                for an award under the SBIR program; and
                    ``(B) indicate whether the small business concern 
                is registered under subparagraph (A) in any SBIR 
                proposal.
            ``(4) Compliance.--A Federal agency described in paragraph 
        (1) shall collect data regarding the number and dollar amounts 
        of phase I, phase II, and all other categories of awards under 
        the SBIR program, and the Administrator shall report on the 
        data and the compliance of each such Federal agency with the 
        maximum amounts under paragraph (1) as part of the annual 
        report by the Administration under subsection (b)(7).
            ``(5) Enforcement.--If a Federal agency awards more than 
        the amount authorized under paragraph (1) for a purpose 
        described in paragraph (1), the amount awarded in excess of the 
        amount authorized under paragraph (1) shall be transferred to 
        the funds for general SBIR programs from the non-SBIR research 
        and development funds of the Federal agency within 60 days of 
        the date on which the Federal agency awarded more than the 
        amount authorized under paragraph (1) for a purpose described 
        in paragraph (1).''.
    (b) Technical and Conforming Amendment.--Section 3 of the Small 
Business Act (15 U.S.C. 632) is amended by adding at the end the 
following:
    ``(t) Venture Capital Company.--In this Act, the term `venture 
capital company' means an entity described in clause (i), (v), or (vi) 
of section 121.103(b) of title 13, Code of Federal Regulations (or any 
successor thereto).''.
    (c) Assistance for Determining Affiliates.--Not later than 30 days 
after the date of enactment of this Act, the Administrator shall post 
on the website of the Administration (with a direct link displayed on 
the homepage of the website of the Administration or the SBIR website 
of the Administration)--
            (1) a clear explanation of the SBIR affiliation rules under 
        part 121 of title 13, Code of Federal Regulations; and
            (2) contact information for officers or employees of the 
        Administration who--
                    (A) upon request, shall review an issue relating to 
                the rules described in paragraph (1); and
                    (B) shall respond to a request under subparagraph 
                (A) not later than 20 business days after the date on 
                which the request is received.

SEC. 109. SBIR AND STTR SPECIAL ACQUISITION PREFERENCE.

    Section 9(r) of the Small Business Act (15 U.S.C. 638(r)) is 
amended by adding at the end the following:
            ``(4) Phase iii awards.--Congress intends that, to the 
        greatest extent practicable, Federal agencies and Federal prime 
        contractors shall issue Phase III awards, including sole source 
        awards, to the SBIR and STTR award recipients that developed 
        the technology.''.

SEC. 110. COLLABORATING WITH FEDERAL LABORATORIES AND RESEARCH AND 
              DEVELOPMENT CENTERS.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
this Act, is amended by adding at the end the following:
    ``(dd) Collaborating With Federal Laboratories and Research and 
Development Centers.--
            ``(1) Authorization.--Subject to the limitations under this 
        section, the head of each participating Federal agency may 
        issue SBIR and STTR awards to any eligible small business 
        concern that--
                    ``(A) intends to enter into an agreement with a 
                Federal laboratory or federally funded research and 
                development center for portions of the activities to be 
                performed under that award; or
                    ``(B) has entered into a cooperative research and 
                development agreement (as defined in section 12(d) of 
                the Stevenson-Wydler Technology Innovation Act of 1980 
                (15 U.S.C. 3710a(d))) with a Federal laboratory.
            ``(2) Prohibition.--No Federal agency shall--
                    ``(A) condition a SBIR or STTR award upon entering 
                into agreement with any Federal laboratory or any 
                federally funded laboratory or research and development 
                center for any portion of the activities to be 
                performed under that award;
                    ``(B) approve an agreement between a small business 
                concern receiving a SBIR or STTR award and a Federal 
                laboratory or federally funded laboratory or research 
                and development center, if the small business concern 
                performs a lesser portion of the activities to be 
                performed under that award than required by this 
                section and by the SBIR and STTR Policy Directives; or
                    ``(C) approve an agreement that violates any 
                provision, including any data rights protections 
                provision, of this section or the SBIR and the STTR 
                Policy Directives.
            ``(3) Implementation.--Not later than 180 days after the 
        date of enactment of this subsection, the Administrator shall 
        modify the SBIR Policy Directive and the STTR Policy Directive 
        issued under this section to ensure that small business 
        concerns--
                    ``(A) have the flexibility to use the resources of 
                the Federal laboratories and federally funded research 
                and development centers; and
                    ``(B) are not mandated to enter into agreement with 
                any Federal laboratory or any federally funded 
                laboratory or research and development center as a 
                condition of an award.''.

SEC. 111. NOTICE REQUIREMENT.

    The head of any Federal agency involved in a case or controversy 
before any Federal judicial or administrative tribunal concerning the 
SBIR program or the STTR program shall provide timely notice, as 
determined by the Administrator, of the case or controversy to the 
Administrator.

          TITLE II--OUTREACH AND COMMERCIALIZATION INITIATIVES

SEC. 201. RURAL AND STATE OUTREACH.

    (a) Outreach.--Section 9 of the Small Business Act (15 U.S.C. 638) 
is amended by inserting after subsection (r) the following:
    ``(s) Outreach.--
            ``(1) Definition of eligible state.--In this subsection, 
        the term `eligible State' means a State--
                    ``(A) if the total value of contracts awarded to 
                the State under this section during the most recent 
                fiscal year for which data is available was less than 
                $5,000,000; and
                    ``(B) that certifies to the Administration 
                described in paragraph (2) that the State will, upon 
                receipt of assistance under this subsection, provide 
                matching funds from non-Federal sources in an amount 
                that is not less than 50 percent of the amount provided 
                under this subsection.
            ``(2) Program authority.--Of amounts made available to 
        carry out this section for each of the fiscal years 2000 
        through 2014, the Administrator may expend with eligible States 
        not more than $5,000,000 in each such fiscal year in order to 
        increase the participation of small business concerns located 
        in those States in the programs under this section.
            ``(3) Amount of assistance.--The amount of assistance 
        provided to an eligible State under this subsection in any 
        fiscal year--
                    ``(A) shall be equal to not more than 50 percent of 
                the total amount of matching funds from non-Federal 
                sources provided by the State; and
                    ``(B) shall not exceed $100,000.
            ``(4) Use of assistance.--Assistance provided to an 
        eligible State under this subsection shall be used by the 
        State, in consultation with State and local departments and 
        agencies, for programs and activities to increase the 
        participation of small business concerns located in the State 
        in the programs under this section, including--
                    ``(A) the establishment of quantifiable performance 
                goals, including goals relating to
                            ``(i) the number of program awards under 
                        this section made to small business concerns in 
                        the State; and
                            ``(ii) the total amount of Federal research 
                        and development contracts awarded to small 
                        business concerns in the State;
                    ``(B) the provision of competition outreach support 
                to small business concerns in the State that are 
                involved in research and development;
                    ``(C) the development and dissemination of 
                educational and promotional information relating to the 
                programs under this section to small business concerns 
                in the State; and
                    ``(D) the establishment of initiatives to reach out 
                to women and minorities with the goal of increasing 
                their involvement in the SBIR and STTR programs.''
    (b) Federal and State Program Extension.--Section 34 of the Small 
Business Act(15 U.S.C. 657d) is amended--
            (1) in subsection (h), by striking ``2001 through 2005'' 
        each place it appears and inserting ``2009 through 2014''; and
            (2) in subsection (i), by striking ``2005'' and inserting 
        ``2014''.
    (c) Rural Areas.--Section 34(e)(2) of the Small Business Act (15 
U.S.C. 657d(e)(2)) is amended--
            (1) by redesignating subparagraphs (C) and (D) as 
        subparagraphs (D) and (E), respectively; and
            (2) by inserting after subparagraph (B) the following:
                    ``(C) Rural areas.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), the non-Federal share of the cost 
                        of the activity carried out using an award or 
                        under a cooperative agreement under this 
                        section shall be 50 cents for each Federal 
                        dollar that will be directly allocated by a 
                        recipient described in paragraph (A) to serve 
                        small business concerns located in a rural 
                        area.
                            ``(ii) Enhanced rural awards.--For a 
                        recipient located in a rural area that is 
                        located in a State described in subparagraph 
                        (A)(i), the non-Federal share of the cost of 
                        the activity carried out using an award or 
                        under a cooperative agreement under this 
                        section shall be 35 cents for each Federal 
                        dollar that will be directly allocated by a 
                        recipient described in paragraph (A) to serve 
                        small business concerns located in the rural 
                        area.
                            ``(iii) Definition of rural area.--In this 
                        subparagraph, the term `rural area' has the 
                        meaning given that term in section 1393(a)(2)) 
                        of the Internal Revenue Code of 1986.''.

SEC. 202. SBIR-STEM WORKFORCE DEVELOPMENT GRANT PILOT PROGRAM.

    (a) Pilot Program Established.--From amounts made available to 
carry out this section, the Administrator shall establish a SBIR-STEM 
Workforce Development Grant Pilot Program to encourage the business 
community to provide workforce development opportunities for college 
students, in the fields of science, technology, engineering, and math 
(in this section referred to as ``STEM college students''), by 
providing a SBIR bonus grant.
    (b) Eligible Entities Defined.--In this section the term ``eligible 
entity'' means a grantee receiving a grant under the SBIR Program on 
the date of the bonus grant under subsection (a) that provides an 
internship program for STEM college students.
    (c) Awards.--An eligible entity shall receive a bonus grant equal 
to 10 percent of either a Phase I or Phase II grant, as applicable, 
with a total award maximum of not more than $10,000 per year.
    (d) Evaluation.--Following the fourth year of funding under this 
section, the Administrator shall submit a report to Congress on the 
results of the SBIR-STEM Workforce Development Grant Pilot Program.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            (1) $1,000,000 for fiscal year 2010;
            (2) $1,000,000 for fiscal year 2011;
            (3) $1,000,000 for fiscal year 2012;
            (4) $1,000,000 for fiscal year 2013; and
            (5) $1,000,000 for fiscal year 2014.

SEC. 203. TECHNICAL ASSISTANCE FOR AWARDEES.

    Section 9(q)(3) of the Small Business Act (15 U.S.C. 638(q)(3)) is 
amended--
            (1) in subparagraph (A), by striking ``$4,000'' and 
        inserting ``$5,000'';
            (2) in subparagraph (B)--
                    (A) by striking ``with funds available from their 
                SBIR awards'' and inserting ``which shall be in 
                addition to the amount of the recipient's award'';
                    (B) by striking ``$4,000'' and inserting 
                ``$5,000''; and
                    (C) by striking the period at the end and inserting 
                a semicolon; and
            (3) by adding at the end the following:
                    ``(C) Flexibility.--In carrying out subparagraphs 
                (A) and (B), each Federal agency shall provide the 
                allowable amounts to a recipient that meets the 
                eligibility requirements under the applicable 
                subparagraph, if the recipient requests to seek 
                technical assistance from an individual or entity other 
                than the vendor selected under paragraph (2) by the 
                Federal agency.
                    ``(D) Limitation.--A Federal agency may not--
                            ``(i) use the amounts authorized under 
                        subparagraph (A) or (B) unless the vendor 
                        selected under paragraph (2) provides the 
                        technical assistance to the recipient; or
                            ``(ii) enter a contract with a vendor under 
                        paragraph (2) under which the amount provided 
                        for technical assistance is based on total 
                        number of Phase I or Phase II awards.''.

SEC. 204. COMMERCIALIZATION PILOT PROGRAM AT DEPARTMENT OF DEFENSE.

    Section 9(y) of the Small Business Act (15 U.S.C. 638(y)) is 
amended--
            (1) in paragraph (1)--
                    (A) by inserting ``or Small Business Technology 
                Transfer Program'' after ``Small Business Innovation 
                Research Program''; and
                    (B) by adding at the end the following: ``The 
                authority to create and administer a Commercialization 
                Pilot Program under this subsection may not be 
                construed to eliminate or replace any other SBIR 
                program or STTR program that enhances the insertion or 
                transition of SBIR or STTR technologies, including any 
                such program in effect on the date of enactment of the 
                National Defense Authorization Act for Fiscal Year 2006 
                (Public Law 109-163; 119 Stat. 3136).'';
            (2) in paragraph (2), by inserting ``or Small Business 
        Technology Transfer Program'' after ``Small Business Innovation 
        Research Program'';
            (3) by redesignating paragraphs (5) and (6) as paragraphs 
        (7) and (8), respectively;
            (4) by inserting after paragraph (4) the following:
            ``(5) Insertion incentives.--For any contract with a value 
        of not less than $100,000,000, the Secretary of Defense is 
        authorized to--
                    ``(A) establish goals for transitioning Phase III 
                technologies in subcontracting plans; and
                    ``(B) require a prime contractor on such a contract 
                to report the number and dollar amount of contracts 
                entered into by that prime contractor for Phase III 
                SBIR or STTR projects.
            ``(6) Goal for sbir and sttr technology insertion.--The 
        Secretary of Defense shall--
                    ``(A) set a goal to increase the number of Phase II 
                SBIR contracts and the number of Phase II STTR 
                contracts awarded by that Secretary that lead to 
                technology transition into programs of record or 
                fielded systems;
                    ``(B) use incentives in effect on the date of 
                enactment of the SBIR/STTR Reauthorization Act of 2008, 
                or create new incentives, to encourage agency program 
                managers and prime contractors to meet the goal under 
                subparagraph (A); and
                    ``(C) include in the annual report to Congress the 
                percentage of contracts described in subparagraph (A) 
                awarded by that Secretary, which shall include 
                information on the ongoing status of projects funded 
                through the Commercialization Pilot Program and efforts 
                to transition these technologies into programs of 
                record or fielded systems.''; and
            (5) in paragraph (8), as so redesignated, by striking 
        ``fiscal year 2009'' and inserting ``fiscal year 2014''.

SEC. 205. COMMERCIALIZATION PILOT PROGRAM FOR CIVILIAN AGENCIES.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
this Act, is amended by adding at the end the following:
    ``(ee) Pilot Program.--
            ``(1) Authorization.--Except for the Department of Defense, 
        the head of each participating Federal agency may set aside not 
        more than 10 percent of the SBIR and STTR funds of such agency 
        for further technology development, testing, and evaluation of 
        SBIR and STTR Phase II technologies (in this section referred 
        to as a `pilot program').
            ``(2) Requirements.--
                    ``(A) In general.--A Federal agency may not 
                establish a pilot program unless such agency makes a 
                written application to the Administrator, not less than 
                90 days prior to the beginning of the fiscal year in 
                which such pilot program is to be established, based on 
                a compelling reason that additional investment in SBIR 
                or STTR technologies is required due to unusually high 
                regulatory, systems integration, or other costs 
                relating to development or manufacturing of 
                identifiable, highly promising small business 
                technologies or a class of such technologies expected 
                to substantially advance the agency's mission.
                    ``(B) Determination.--The Administrator shall--
                            ``(i) make a determination regarding an 
                        application submitted under subparagraph (A) 
                        not later than 30 days before the beginning of 
                        the fiscal year for which such application is 
                        submitted;
                            ``(ii) publish such decision in the Federal 
                        Register; and
                            ``(iii) make a copy of such decision, and 
                        any related materials available to the 
                        Committee on Small Business and 
                        Entrepreneurship of the Senate and the 
                        Committee on Small Business of the House of 
                        Representatives.
                    ``(C) Maximum amount.--No award under a pilot 
                program may be made in excess of 2 times the dollar 
                amounts generally established for Phase II awards under 
                this section.
                    ``(D) Matching.--No award may be made under a pilot 
                program unless new private, Federal non-SBIR, or 
                Federal non-STTR funding which at least matches the 
                award from the Federal agency is dedicated towards SBIR 
                or STTR Phase II technology.
                    ``(E) Eligibility.--Awards under a pilot program 
                may be made to any applicant that is eligible to 
                receive a Phase III award related to such SBIR or STTR 
                Phase II technology.
                    ``(F) Registration.--Applicants receiving awards 
                under a pilot program shall register with the 
                Administrator in a publicly available registry.
                    ``(G) Termination.--The authority to establish a 
                pilot program under this section expires at the end of 
                fiscal year 2014.''.

SEC. 206. NANOTECHNOLOGY INITIATIVE.

    (a) In General.--Section 9 of the Small Business Act (15 U.S.C. 
638), as amended by this Act, is amended by adding at the end the 
following:
    ``(ff) Nanotechnology Initiative.--Each Federal agency 
participating in the SBIR or STTR program shall encourage the 
submission of applications for support of nanotechnology related 
projects to such program.''.
    (b) Sunset.--Effective October 1, 2014, subsection (ff) of the 
Small Business Act, as added by subsection (a) of this section, is 
repealed.

SEC. 207. ACCELERATING CURES.

    The Small Business Act (15 U.S.C. 631 et seq.) is amended--
            (1) by redesignating section 44 as section 45; and
            (2) by inserting after section 43 the following:

``SEC. 44. SMALL BUSINESS INNOVATION RESEARCH PROGRAM.

    ``(a) NIH Cures Pilot.--
            ``(1) Establishment.--An independent advisory board shall 
        be established at the National Academy of Sciences to conduct 
        periodic evaluations of the SBIR program (as that term is 
        defined in section 9) of all the National Institutes of Health 
        (referred to in this section as the `NIH') institutes and 
        centers for the purpose of improving the management of the SBIR 
        program through data-driven assessment.
            ``(2) Membership.--
                    ``(A) In general.--The advisory board shall consist 
                of--
                            ``(i) the Director of the NIH, the Director 
                        of the SBIR program, senior NIH agency 
                        managers, industry experts, and other program 
                        stakeholders; and
                            ``(ii) awardees under the SBIR program of 
                        the NIH.
                    ``(B) Equal representation.--The number of members 
                of the advisory board described in clause (i) of 
                subparagraph (A) shall be equal to the number of 
                members of the advisory board described in clause (ii) 
                of subparagraph (A).
    ``(b) Addressing Data Gaps.--In order to enhance the evidence-base 
guiding SBIR program decisions and changes, the Director of the SBIR 
program of the NIH shall address the gaps and deficiencies in the data 
collection concerns identified in the 2007 National Academies of 
Science's report entitled `An Assessment of the Small Business 
Innovation Research Program at the NIH'.
    ``(c) Pilot Program.--
            ``(1) In general.--The Director of the SBIR program of the 
        NIH may initiate a pilot program, under a formal mechanism for 
        designing, implementing, and evaluating pilot programs, to spur 
        innovation and to test new strategies that may enhance the 
        development of cures and therapies.
            ``(2) Considerations.--The Director of the SBIR program of 
        the NIH may consider conducting a pilot program to include 
        individuals with successful SBIR program experience in study 
        sections, hiring individuals with small business development 
        experience for staff positions, separating the commercial and 
        scientific review processes, and examining the impact of the 
        trend toward larger awards on the overall program.
    ``(d) Report to Congress.--The Director of the NIH shall submit an 
annual report to Congress and the independent advisory board described 
in subsection (a) on the activities of the SBIR program of the NIH 
under this section.
    ``(e) SBIR Grants and Contracts.--
            ``(1) In general.--In awarding grants and contracts under 
        the SBIR program of the NIH each SBIR program manager shall 
        place an emphasis on applications that identify from the onset 
        products and services that may enhance the development of cures 
        and therapies.
            ``(2) Examination of commercialization and other metrics.--
        The independent advisory board described in subsection (a) 
        shall evaluate the implementation of the requirement under 
        paragraph (1) by examining increased commercialization and 
        other metrics, to be determined and collected by the SBIR 
        program of the NIH.
            ``(3) Phase i and ii.--To the greatest extent practicable, 
        the Director of the SBIR program of the NIH shall reduce the 
        time period between Phase I and Phase II funding of grants and 
        contracts under the SBIR program of the NIH to 6 months.
    ``(f) Limit.--Not more than a total of 1 percent of the extramural 
budget (as defined in section 9 of the Small Business Act (15 U.S.C. 
638)) of the NIH for research or research and development may be used 
for the pilot programs under subsection (c) and to carry out subsection 
(e).
    ``(g) Sunset.--This section shall cease to be effective on the date 
that is 5 years after the date of enactment of the SBIR/STTR 
Reauthorization Act of 2008.''.

                  TITLE III--OVERSIGHT AND EVALUATION

SEC. 301. STREAMLINING ANNUAL EVALUATION REQUIREMENTS.

    Section 9(b) of the Small Business Act (15 U.S.C. 638(b)), as 
amended by section 103 of this Act, is amended--
            (1) in paragraph (7)--
                    (A) by striking ``STTR programs, including the 
                data'' and inserting the following: ``STTR programs, 
                including--
                    ``(A) the data'';
                    (B) by striking ``(g)(10), (o)(9), and (o)(15), the 
                number'' and all that follows through ``under each of 
                the SBIR and STTR programs, and a description'' and 
                inserting the following: ``(g)(8) and (o)(9); and
                    ``(B) the number of proposals received from, and 
                the number and total amount of awards to, HUBZone small 
                business concerns and firms with venture capital 
                investment (including those majority owned and 
                controlled by multiple venture capital firms) under 
                each of the SBIR and STTR programs;
                    ``(C) a description of the extent to which each 
                Federal agency is increasing outreach and awards to 
                firms owned and controlled by women and minorities 
                under each of the SBIR and STTR programs;
                    ``(D) general information about the implementation 
                and compliance with the allocation of funds for firms 
                majority owned and controlled by multiple venture 
                capital firms under each of the SBIR and STTR programs;
                    ``(E) a detailed description of appeals of Phase 
                III awards and notices of noncompliance with the SBIR 
                and the STTR Policy Directives filed by the 
                Administrator with Federal agencies; and
                    ``(F) a description''; and
            (2) by inserting after paragraph (7) the following:
            ``(8) to coordinate the implementation of electronic 
        databases at each of the participating agencies, including the 
        technical ability of the participating agencies to 
        electronically share data;''.

SEC. 302. DATA COLLECTION FROM AGENCIES FOR SBIR.

    Section 9(g) of the Small Business Act (15 U.S.C. 638(g)) is 
amended--
            (1) by striking paragraph (10);
            (2) by redesignating paragraphs (8) and (9) as paragraphs 
        (9) and (10), respectively;
            (3) by inserting after paragraph (7) the following:
            ``(8) collect, and maintain in a common format in 
        accordance with the simplified reporting requirements under 
        subsection (v), such information from awardees as is necessary 
        to assess the SBIR program, including information necessary to 
        maintain the database described in subsection (k), including--
                    ``(A) whether an awardee--
                            ``(i) has venture capital or is majority 
                        owned and controlled by multiple venture 
                        capital firms, and, if so--
                                    ``(I) the amount of venture capital 
                                that the awardee has received as of the 
                                date of the award; and
                                    ``(II) the amount of additional 
                                capital that the awardee has invested 
                                in the SBIR technology, which shall be 
                                collected on an annual basis;
                            ``(ii) has an investor who--
                                    ``(I) is an individual who is not a 
                                citizen of the United States or a 
                                lawful permanent resident of the United 
                                States, and if so, the name of any such 
                                individual; or
                                    ``(II) is a person that is not an 
                                individual and is not organized under 
                                the laws of a State or the United 
                                States, and if so the name of any such 
                                person;
                            ``(iii) is owned by a woman or has a woman 
                        as a principal investigator;
                            ``(iv) is owned by a minority or has a 
                        minority as a principal investigator;
                            ``(v) received assistance under the FAST 
                        program under section 34 or the outreach 
                        program under subsection (s); or
                            ``(vi) is university faculty or a 
                        university student; and
                    ``(B) a justification statement from the agency, if 
                an awardee receives an award in an amount that is more 
                than the award guidelines under this section;''; and
            (4) in paragraph (10), as so redesignated, by adding 
        ``and'' at the end.

SEC. 303. DATA COLLECTION FROM AGENCIES FOR STTR.

    Section 9(o) of the Small Business Act (15 U.S.C. 638(o)) is 
amended--
            (1) by striking paragraph (9) and inserting the following:
            ``(9) collect, and maintain in a common format in 
        accordance with the simplified reporting requirements under 
        subsection (v), such information from applicants and awardees 
        as is necessary to assess the STTR program outputs and 
        outcomes, including information necessary to maintain the 
        database described in subsection (k), including--
                    ``(A) whether an applicant or awardee--
                            ``(i) has venture capital or is majority 
                        owned and controlled by multiple venture 
                        capital firms, and, if so--
                                    ``(I) the amount of venture capital 
                                that the applicant or awardee has 
                                received as of the date of the 
                                application or award, as applicable; 
                                and
                                    ``(II) the amount of additional 
                                capital that the applicant or awardee 
                                has invested in the SBIR technology, 
                                which shall be collected on an annual 
                                basis;
                            ``(ii) has an investor who--
                                    ``(I) is an individual who is not a 
                                citizen of the United States or a 
                                lawful permanent resident of the United 
                                States, and if so, the name of any such 
                                individual; or
                                    ``(II) is a person that is not an 
                                individual and is not organized under 
                                the laws of a State or the United 
                                States, and if so the name of any such 
                                person;
                            ``(iii) is owned by a woman or has a woman 
                        as a principal investigator;
                            ``(iv) is owned by a minority or has a 
                        minority as a principal investigator;
                            ``(v) received assistance under the FAST 
                        program under section 34 or the outreach 
                        program under subsection (s); or
                            ``(vi) is university faculty or a 
                        university student; and
                    ``(B) a justification statement from the agency, if 
                an awardee receives an award in an amount that is more 
                than the award guidelines under this section;'';
            (2) in paragraph (14), by adding ``and'' at the end;
            (3) by striking paragraph (15); and
            (4) by redesignating paragraph (16) as paragraph (15).

SEC. 304. PUBLIC DATABASE.

    Section 9(k)(1) of the Small Business Act (15 U.S.C. 638(k)(1)) is 
amended--
            (1) in subparagraph (D), by striking ``and'' at the end;
            (2) in subparagraph (E), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(F) for each small business concern that has 
                received a Phase I or Phase II SBIR or STTR award from 
                a Federal agency, whether the small business concern--
                            ``(i) has venture capital and, if so, 
                        whether the small business concern is 
                        registered as majority owned and controlled by 
                        multiple venture capital companies as required 
                        under subsection (cc)(3);
                            ``(ii) is owned by a woman or has a woman 
                        as a principal investigator;
                            ``(iii) is owned by a minority or has a 
                        minority as a principal investigator;
                            ``(iv) received assistance under the FAST 
                        program under section 34 or the outreach 
                        program under subsection (s); or
                            ``(v) is owned by university faculty or a 
                        university student.''.

SEC. 305. GOVERNMENT DATABASE.

    Section 9(k)(2) of the Small Business Act (15 U.S.C. 638(k)(2)) is 
amended--
            (1) by redesignating subparagraphs (C), (D), and (E) as 
        subparagraphs (D), (E), and (F), respectively;
            (2) by inserting after subparagraph (B) the following:
                    ``(C) includes, for each awardee--
                            ``(i) the name, size, location, and any 
                        identifying number assigned by the 
                        Administration;
                            ``(ii) whether the awardee has venture 
                        capital, and, if so--
                                    ``(I) the amount of venture capital 
                                as of the date of the award;
                                    ``(II) the percentage of ownership 
                                of the awardee held by a venture 
                                capital firm, including whether the 
                                awardee is majority owned and 
                                controlled by multiple venture capital 
                                firms; and
                                    ``(III) the amount of additional 
                                capital that the awardee has invested 
                                in the SBIR technology, which shall be 
                                collected on an annual basis;
                            ``(iii) the names and locations of any 
                        affiliates of the awardee;
                            ``(iv) the number of employees of the 
                        awardee;
                            ``(v) the number of employees of the 
                        affiliates of the awardee; and
                            ``(vi) the names and percentage of 
                        ownership of the awardee held by--
                                    ``(I) an individual who is not a 
                                citizen of the United States or a 
                                lawful permanent resident of the United 
                                States; or
                                    ``(II) a person that is not an 
                                individual and is not organized under 
                                the laws of a State or the United 
                                States;''; and
            (3) in subparagraph (D), as so redesignated--
                    (A) in clause (ii), by striking ``and'' at the end; 
                and
                    (B) by adding at the end, the following:
                            ``(iv) whether the applicant was majority 
                        owned and controlled by multiple venture 
                        capital firms; and
                            ``(v) the number of employees of the 
                        applicant;''.

SEC. 306. ACCURACY IN FUNDING BASE CALCULATIONS.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, and every 3 years thereafter, the Comptroller General of 
the United States shall--
            (1) conduct a fiscal and management audit of the SBIR 
        program and the STTR program for the applicable period to 
        determine whether Federal agencies are complying with the 
        allocation requirements of this title and the amendments made 
        by this title;
            (2) assess the extent of compliance with the requirements 
        of subparagraphs (A) and (B) of section 9(i)(2) of the Small 
        Business Act (15 U.S.C. 638(i)(2)) by participating agencies 
        and the Administration;
            (3) assess whether it would be more consistent and 
        effective to base the amount of the allocations under the SBIR 
        program and the STTR program on a percentage of the research 
        and development budget of a Federal agency, rather than the 
        extramural budget of the Federal agency;
            (4) determine the portion of the extramural research or 
        research and development budget of a Federal agency that each 
        Federal agency is spending for administrative purposes relating 
        to the SBIR program or STTR program, and for what specific 
        purposes, including whether and, if so, the portion of such 
        budget the Federal agency is spending for salaries and 
        expenses, travel to visit applicants, outreach events, 
        marketing, and technical assistance; and
            (5) submit a report to the Committee on Small Business and 
        Entrepreneurship of the Senate and the Committee on Small 
        Business of the House of Representatives regarding the audit 
        conducted under paragraph (1), the assessments required under 
        paragraphs (2) and (3), and the determination made under 
        paragraph (4).
    (b) Definition of Applicable Period.--In this section, the term 
``applicable period'' means--
            (1) for the first report submitted under this section, the 
        period beginning on October 1, 2000, and ending on September 30 
        of the last full fiscal year before the date of enactment of 
        this Act for which information is available; and
            (2) for the second and each subsequent report submitted 
        under this section, the period--
                    (A) beginning on October 1 of the first fiscal year 
                after the end of the most recent full fiscal year 
                relating to which a report under this section was 
                submitted; and
                    (B) ending on September 30 of the last full fiscal 
                year before the date of the report.

SEC. 307. CONTINUED EVALUATION BY THE NATIONAL ACADEMY OF SCIENCES.

    Section 108 of the Small Business Reauthorization Act of 2000 
(Public Law 106-554; 114 Stat. 2763A-671) is amended by adding at the 
end the following:
    ``(e) Extensions and Enhancements of Authority.--
            ``(1) In general.--Not later than 6 months after the date 
        of enactment of the SBIR/STTR Reauthorization Act of 2008, the 
        head of each agency described in subsection (a), in 
        consultation with the Small Business Administration, shall 
        cooperatively enter into an agreement with the National Academy 
        of Sciences for the National Research Council to conduct a 
        study described in subsection (a)(1) and make recommendations 
        described in subsection (a)(2) not later than 4 years after the 
        date of enactment of the SBIR/STTR Reauthorization Act of 2008, 
        and every 4 years thereafter.
            ``(2) Reporting.--An agreement under paragraph (1) shall 
        require that not later than 4 years after the date of enactment 
        of the SBIR/STTR Reauthorization Act of 2008, and every 4 years 
        thereafter, the National Research Council shall submit to the 
        head of the agency entering into the agreement, the Committee 
        on Small Business and Entrepreneurship of the Senate, and the 
        Committee on Small Business of the House of Representatives a 
        report regarding the study conducted under paragraph (1) and 
        containing the recommendations described in paragraph (1).''.

SEC. 308. TECHNOLOGY INSERTION REPORTING REQUIREMENTS.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
this Act, is amended by adding at the end the following:
    ``(gg) Phase III Reporting.--The annual SBIR or STTR report to 
Congress by the Administration under subsection (b)(7) shall include, 
for each Phase III award by the Federal agency--
            ``(1) the name of the contracting agency;
            ``(2) the identity of the agency or company making the 
        Phase III award;
            ``(3) the identity of the company or individual receiving 
        the Phase III award;
            ``(4) the dollar amount of the Phase III award; and
            ``(5) the Federal agency, or component of a Federal agency, 
        making the Phase III award.''.

SEC. 309. INTELLECTUAL PROPERTY PROTECTIONS.

    (a) In General.--The Comptroller General of the United States shall 
conduct a study of the SBIR program to assess whether--
            (1) Federal agencies are adhering to the data rights 
        protections for SBIR awardees and the technologies of SBIR 
        awardees;
            (2) the laws and policy directives intended to clarify the 
        scope of data rights, including in prototypes and mentor-
        protege relationships and agreements with Federal laboratories, 
        are sufficient to protect SBIR awardees; and
            (3) there is an effective grievance tracking process for 
        SBIR awardees who have grievances against a Federal agency 
        regarding data rights and a process for resolving those 
        grievances.
    (b) Report.--Not later than 18 months after the date of enactment 
of this Act, the Comptroller General 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 regarding the 
study conducted under subsection (a).

                      TITLE IV--POLICY DIRECTIVES

SEC. 401. CONFORMING AMENDMENTS TO THE SBIR AND THE STTR POLICY 
              DIRECTIVES.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Administrator shall promulgate amendments to 
the SBIR Policy Directive and the STTR Policy Directive to conform such 
directives to this Act and the amendments made by this Act.
    (b) Publishing SBIR Policy Directive and the STTR Policy Directive 
in the Federal Register.--The Administration shall publish the amended 
SBIR Policy Directive and the amended STTR Policy Directive in the 
Federal Register.
                                                       Calendar No. 943

110th CONGRESS

  2d Session

                                S. 3362

                          [Report No. 110-447]

_______________________________________________________________________

                                 A BILL

 To reauthorize and improve the SBIR and STTR programs, and for other 
                               purposes.

_______________________________________________________________________

              August 22 (legislative day, August 1), 2008

                       Reported without amendment