I 111th CONGRESS 1st Session H. R. 2767 IN THE HOUSE OF REPRESENTATIVES June 9, 2009 Mr. Graves introduced the following bill; which was referred to the Committee on Small Business, and in addition to the Committee on Science and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To amend the Small Business Act to extend and improve the Small Business Innovation Research Program and the Small Business Technology Transfer Program, and for other purposes.

1.

Short title

This Act may be cited as the Investing in Tomorrow’s Technology Act.

2.

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 2011. (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 2011.

3.

Ensuring that innovative small businesses with substantial investment from venture capital operating companies are able to participate in the SBIR and STTR programs

Section 9 of the Small Business Act (15 U.S.C. 638) is amended by adding at the end the following: (aa)

Venture capital operating companies

Effective only for the SBIR and STTR programs the following shall apply: (1)A business concern that has more than 500 employees shall not qualify as a small business concern. (2)In determining whether a small business concern is independently owned and operated under section 3(a)(1) or meets the small business size standards instituted under section 3(a)(2), the Administrator shall not consider a business concern to be affiliated with a venture capital operating company (or with any other business that the venture capital operating company has financed) if— (A)the venture capital operating company does not own 50 percent or more of the business concern; and (B)employees of the venture capital operating company do not constitute a majority of the board of directors of the business concern. (3)A business concern shall be deemed to be independently owned and operated if— (A)it is owned in majority part by one or more natural persons or venture capital operating companies; (B)there is no single venture capital operating company that owns 50 percent or more of the business concern; and (C)there is no single venture capital operating company the employees of which constitute a majority of the board of directors of the business concern. (4)If a venture capital operating company controlled by a business with more than 500 employees (in this paragraph referred to as a VCOC under large business control) has an ownership interest in a small business concern that is owned in majority part by venture capital operating companies, the small business concern is eligible to receive an award under the SBIR or STTR program only if— (A)not more than two VCOCs under large business control have an ownership interest in the small business concern; (B)the VCOCs under large business control do not collectively own more than 20 percent of the small business concern; and (C)the VCOCs under large business control do not collaborate with each other to exercise more control over the small business concern than they could otherwise exercise individually. (5)The term venture capital operating company means a business concern— (A)that— (i)is a Venture Capital Operating Company, as that term is defined in regulations promulgated by the Secretary of Labor; or (ii)is an entity that— (I)is registered under the Investment Company Act of 1940 (15 U.S.C. 80a–51 et seq.); or (II)is an investment company, as defined in section 3(c)(14) of such Act (15 U.S.C. 80a–3(c)(14)), which is not registered under such Act because it is beneficially owned by less than 100 persons; and (B)that is itself organized or incorporated and domiciled in the United States, or is controlled by a business concern that is incorporated and domiciled in the United States. .