1.Short title; table of
contents
(a)This Act may be cited
as the Enhancing Small Business
Research and Innovation Act of 2009
.
(b)The table of
contents for this Act is as follows:
Sec. 1. Short title; table of contents.
Title I—Program extension and venture capital operating company
involvement
Sec. 101. Extension of termination dates.
Sec. 102. Ensuring that innovative small businesses with
substantial investment from venture capital operating companies are able to
participate in the SBIR and STTR programs.
Title II—Commercialization activities and research topics
deserving special consideration
Sec. 201. Focus on commercialization.
Sec. 202. Inclusion of energy-related research topics and rare
disease-related research topics as deserving special
consideration
as SBIR research topics.
Sec. 203. Nanotechnology-related research topics.
Sec. 204. Clarifying the definition of Phase
Three
.
Sec. 205. Agency research goals.
Sec. 206. Commercialization programs.
Title III—Rural development and outreach
Sec. 301. Outreach and support activities.
Sec. 302. Rural preference.
Sec. 303. Obtaining SBIR applicant’s consent to release contact
information to economic development organizations.
Sec. 304. Increased partnerships between SBIR awardees and
prime contractors, venture capital investment companies, and larger
businesses.
Title IV—SBIR and STTR enhancement
Sec. 401. Increased number of research topic solicitations
annually and shortened period for final decisions on applications.
Sec. 402. Agencies should fund vital R&D projects with the
potential for commercialization.
Sec. 403. Federal agency engagement with SBIR awardees that
have been awarded multiple Phase One awards but have not been awarded Phase Two
awards.
Sec. 404. Funding for administrative, oversight, and contract
processing costs.
Sec. 405. Comptroller general audit of how Federal agencies
calculate extramural research budgets.
Sec. 406. Agency databases to support program
evaluation.
Sec. 407. Agency databases to support technology
utilization.
Sec. 408. Interagency Policy Committee.
Sec. 409. National Research Council SBIR Study.
Sec. 410. Express authority to fast-track
Phase
Two awards for promising Phase One research.
Sec. 411. Increased SBIR and STTR award levels.
Sec. 412. Express authority for an agency to award sequential
Phase Two awards for SBIR-funded projects.
Sec. 413. First phase required.
<enum>I</enum><header>Program extension
and venture capital operating company involvement</header>
<section id="HB07D36A320EF40E0A62A486AA31EE953"><enum>101.</enum><header>Extension of
termination dates</header>
<subsection id="HEF6158244A4B43C799F8905947DF1164"><enum>(a)</enum><header>SBIR</header><text display-inline="yes-display-inline">Section 9(m) of the Small Business Act (15
U.S.C. 638(m)) is amended by striking <quote>2008</quote> and inserting
<quote>2011</quote>.</text>
</subsection><subsection commented="no" id="H29E19AD6C43C42BA8ECBEAA79A5C047E"><enum>(b)</enum><header>STTR</header><text display-inline="yes-display-inline">Section 9(n)(1)(A) of the Small Business
Act (15 U.S.C. 638(n)(1)(A)) is amended by striking <quote>2009</quote> and
inserting <quote>2011</quote>.</text>
</subsection></section><section id="H63BF5F442F5D46ACA3F2525C49A17005"><enum>102.</enum><header>Ensuring that
innovative small businesses with substantial investment from venture capital
operating companies are able to participate in the SBIR and STTR
programs</header><text display-inline="no-display-inline">Section 9 of the
Small Business Act (15 U.S.C. 638) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="H2B17A07594AC433FAA9B724551D79CC7" style="OLC">
<subsection id="H567B2E375BBD4D72ADDB203B93DBF14F"><enum>(aa)</enum><header>Venture capital
operating companies</header><text display-inline="yes-display-inline">Effective
only for the SBIR and STTR programs the following shall apply:</text>
<paragraph id="H099EA108AF4D4DA3BD960E302E1CAF35"><enum>(1)</enum><text>A business concern
that has more than 500 employees shall not qualify as a small business
concern.</text>
</paragraph><paragraph id="H0779C73778364EFD812C0D0408D2CCE9"><enum>(2)</enum><text display-inline="yes-display-inline">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—</text>
<subparagraph id="H0105DAA4A9A0498BABA22B464CF8E9F9"><enum>(A)</enum><text>the venture
capital operating company does not own 50 percent or more of the business
concern; and</text>
</subparagraph><subparagraph id="H6C0399DA55AD4F3B85887D1FCADE6313"><enum>(B)</enum><text>employees of the
venture capital operating company do not constitute a majority of the board of
directors of the business concern.</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HE1FF1413762140D19E7DE53639B0D2FD"><enum>(3)</enum><text>A business concern
shall be deemed to be <term>independently owned and operated</term> if—</text>
<subparagraph id="H4DFEC7804F8049BCB23A0E85801A2B98"><enum>(A)</enum><text>it is owned in
majority part by one or more natural persons or venture capital operating
companies;</text>
</subparagraph><subparagraph id="HBBD5C82956614389B70412A7F1D9855D"><enum>(B)</enum><text>there is no single
venture capital operating company that owns 50 percent or more of the business
concern; and</text>
</subparagraph><subparagraph id="HD583F649AF6D43EE90D06AD92C3705DF"><enum>(C)</enum><text>there is no single
venture capital operating company the employees of which constitute a majority
of the board of directors of the business concern.</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HB0A82FE01B9F4D259B1464DA5D41F197"><enum>(4)</enum><text display-inline="yes-display-inline">If a venture capital operating company
controlled by a business with more than 500 employees (in this paragraph
referred to as a <term>VCOC under large business control</term>) 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—</text>
<subparagraph id="H4662DEA3C8134E53AD8616F2E07F5A33"><enum>(A)</enum><text>not more than two
VCOCs under large business control have an ownership interest in the small
business concern; and</text>
</subparagraph><subparagraph id="H98CF17F3AF09405FA29F5D338091B816"><enum>(B)</enum><text>the VCOCs under
large business control do not collectively own more than 20 percent of the
small business concern.</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H26E357E3736A46C6A6C340A7FA625C3E"><enum>(5)</enum><text>The term
<term>venture capital operating company</term> means a business concern—</text>
<subparagraph id="H39F06B2CACE24A989D7C36DDC5C7AAB5"><enum>(A)</enum><text>that—</text>
<clause id="H8AED60A5CC514E108A7C02694D071E03"><enum>(i)</enum><text>is
a Venture Capital Operating Company, as that term is defined in regulations
promulgated by the Secretary of Labor; or</text>
</clause><clause id="H05535BC75D004044986D13295C394495"><enum>(ii)</enum><text>is an entity
that—</text>
<subclause id="HEC7E349A66D5450680F6C6D70D16AB4F"><enum>(I)</enum><text>is registered
under the Investment Company Act of 1940 (15 U.S.C. 80a–51 et seq.); or</text>
</subclause><subclause id="HB3384F8330B5460BA85C5AD4D7FFAEF5"><enum>(II)</enum><text>is an investment
company, as defined in section 3(c)(1) of such Act (15 U.S.C. 80a–3(c)(1)),
which is not registered under such Act because it is beneficially owned by less
than 100 persons; and</text>
</subclause></clause></subparagraph><subparagraph id="HD3C5FC918E504962B740F2D86B563DD2"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><enum>II</enum><header>Commercialization
activities and research topics deserving special consideration</header>
<section id="H206DC7BE02AE4B0A80EB1F573928CF16"><enum>201.</enum><header>Focus on
commercialization</header><text display-inline="no-display-inline">Section 9(a)
of the Small Business Act (15 U.S.C. 638(a)) is amended by adding at the end
the following: <quote>It is further the policy of Congress that the programs
established in this section should focus on promoting research and development
of projects governed by commercial business plans, which have significant
potential to produce products or services for the marketplace or for
acquisition by Federal agencies.</quote>.</text>
</section><section id="H04B0790D0E8B4B8CA7E19B4EB7D133BD"><enum>202.</enum><header>Inclusion of
energy-related research topics and rare disease-related research topics as
deserving <quote>special consideration</quote> as SBIR research
topics</header><text display-inline="no-display-inline">Section 9(g)(3) of the
Small Business Act (15 U.S.C. 638(g)(3)) is amended—</text>
<paragraph id="H514EBEEE37C1425F88D8B3F44ED649B1"><enum>(1)</enum><text>in the matter
preceding subparagraph (A) by inserting after <quote>critical
technologies</quote> the following: <quote>or pressing research
priorities</quote>;</text>
</paragraph><paragraph id="H22EBDF73BD044F13AE0BBA3BFE6FC302"><enum>(2)</enum><text display-inline="yes-display-inline">at the end of subparagraph (A) by striking
<quote>or</quote>; and</text>
</paragraph><paragraph id="HAC23283C7E1A4452BF1667FA553D86B7"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HF6DEA32DB94F428E864998DE43CF091D" style="OLC">
<subparagraph id="H4D80E0D8E1914FB0B56F790052447B78"><enum>(C)</enum><text display-inline="yes-display-inline">the National Academy of Sciences, in the
final report issued by the <quote>America’s Energy Future: Technology
Opportunities, Risks, and Tradeoffs</quote> project, and in subsequent reports
issued by the National Academy of Sciences on sustainability, energy, and
alternative fuels;</text>
</subparagraph><subparagraph id="HDBD9F27A13534F40B38F130B16BDA101"><enum>(D)</enum><text>the National
Institutes of Health, in the annual report on the rare diseases research
activities of the National Institutes of Health for fiscal year 2005, and in
subsequent reports issued by the National Institutes of Health on rare diseases
research activities; or</text>
</subparagraph><subparagraph id="H9D13C5D1C12440EB81A267B9A9C09A57"><enum>(E)</enum><text display-inline="yes-display-inline">the National Academy of Sciences, in the
final report issued by the ‘Transit Research and Development: Federal Role in
the National Program’ project and the ‘Transportation Research, Development and
Technology Strategic Plan (2006–2010)’ issued by the United States Department
of Transportation Research and Innovative Technology Administration, and in
subsequent reports issued by the National Academy of Sciences and United States
Department of Transportation on transportation and
infrastructure;</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H6667254A1F904A34903028C71FE17AC5"><enum>203.</enum><header>Nanotechnology-related
research topics</header>
<subsection id="H2C362E5E67154791ADB879AA67A1E39A"><enum>(a)</enum><header>SBIR</header><text display-inline="yes-display-inline">Section 9(g)(3) of the Small Business Act
(15 U.S.C. 638(g)(3)), as amended, is further amended—</text>
<paragraph id="H0996C592002045C0ADABC6737E5002D3"><enum>(1)</enum><text>at the end of
subparagraph (D) by striking <quote>or</quote>;</text>
</paragraph><paragraph id="H122329852CF44D0EAEE86F1C65A1A365"><enum>(2)</enum><text>at the end of
subparagraph (E) by adding <quote>or</quote>; and</text>
</paragraph><paragraph id="H8BE0C309735947FE8E2B1449BC301641"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H10770D8183AC44899DDBC3E46C71D19F" style="OLC">
<subparagraph id="H16DBD4BBC05946ADB9D192D1186C2B99"><enum>(F)</enum><text display-inline="yes-display-inline">the national nanotechnology strategic plan
required under section 2(c)(4) of the 21st Century Nanotechnology Research and
Development Act (15 U.S.C. 7501(c)(4)) and in subsequent reports issued by the
National Science and Technology Council Committee on Technology, focusing on
areas of nanotechnology identified in such
plan;</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HF6D545CB6B3A43AD9474DB8ACA5D6357"><enum>(b)</enum><header>STTR</header><text>Section
9(o)(3) of the Small Business Act (15 U.S.C. 638(o)(3)) is amended—</text>
<paragraph id="HB51D0DD194354388BCE5B8B45AFF3735"><enum>(1)</enum><text>at the end of
subparagraph (A) by striking <quote>or</quote>;</text>
</paragraph><paragraph id="H11BFE7BFB8FA408889BAF353A03CC9ED"><enum>(2)</enum><text>at the end of
subparagraph (B) by adding <quote>or</quote>; and</text>
</paragraph><paragraph id="H595C4222B84E4685AA9D28323CAF2476"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HBBFEBAB44A5E4C0A92C5BA31EC72ED9D" style="OLC">
<subparagraph id="H443564B26E5847908D9874D7411D2A06"><enum>(C)</enum><text display-inline="yes-display-inline">by the national nanotechnology strategic
plan required under section 2(c)(4) of the 21st Century Nanotechnology Research
and Development Act (15 U.S.C. 7501(c)(4)) and in subsequent reports issued by
the National Science and Technology Council Committee on Technology, focusing
on areas of nanotechnology identified in such
plan;</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="H134C40B2C98849DF99EBF3B12560E8E4"><enum>204.</enum><header>Clarifying the
definition of <quote>Phase Three</quote></header><text display-inline="no-display-inline">Section 9(e) of the Small Business Act (15
U.S.C. 638(e)) is amended—</text>
<paragraph id="HCEF3F65E0215486B95D2742783F19975"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (4)(C) in the matter preceding
clause (i) by inserting after <quote>a third phase</quote> the following:
<quote>, which shall consist of work that derives from, extends, or logically
concludes efforts performed under prior SBIR funding agreements (which may be
referred to as <quote>Phase III</quote>)</quote>;</text>
</paragraph><paragraph display-inline="no-display-inline" id="HA4E8308A6CF14D54AB6177219CE83A07"><enum>(2)</enum><text>in paragraph (8)
by striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="HD6674FD6B2C04BCB9E60EF8549D0DC1A"><enum>(3)</enum><text>in paragraph (9)
by striking the period at the end and inserting <quote>; and</quote>;
and</text>
</paragraph><paragraph id="H83FE162185124E2E88D73B563DDAAA44"><enum>(4)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H5B16034F95084380B08A4585980A8F92" style="OLC">
<paragraph id="H502EA5BCFB9D47AA8837E56C7E070263"><enum>(10)</enum><text display-inline="yes-display-inline">the term <term>commercialization</term>
means the process of developing marketable products or services and producing
and delivering products or services for sale (whether by the originating party
or by others) to government or commercial
markets.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H0F110B0F82374A0B87C9A29CCBF993CC"><enum>205.</enum><header>Agency research
goals</header><text display-inline="no-display-inline">Section 9 of the Small
Business Act (15 U.S.C. 638), as amended, is further amended by striking
subsection (h) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H94251D63767B4D19946C346120BC71CE" style="OLC">
<subsection id="H2617869C6C284235A913C163AE4C0E5B"><enum>(h)</enum><header>Agency research
goals</header>
<paragraph id="H0CB8D05684194A0D977C9E03F499B33E"><enum>(1)</enum><header>In
general</header><text>In addition to the requirements of subsection (f), each
Federal agency that is required by this section to have an SBIR program and
that awards annually $5,000,000,000 or more in procurement contracts shall,
effective for fiscal year 2010 and each fiscal year thereafter, establish
annual goals for commercialization of projects funded by SBIR awards.</text>
</paragraph><paragraph id="H364957DE2D644C57819542C50997EDE9"><enum>(2)</enum><header>Specific
goals</header><text>The goals required by paragraph (1) shall include specific
goals for each of the following:</text>
<subparagraph id="H910BD7DD25EF475E81A160B12E85F0D4"><enum>(A)</enum><text>The percentage of
SBIR projects that receive funding for the third phase (as defined in
subsection (e)(4)(C)).</text>
</subparagraph><subparagraph id="HAC04613A2E46402D8BA37F8FED674951"><enum>(B)</enum><text>The percentage of
SBIR projects that are successfully integrated into a program of record.</text>
</subparagraph><subparagraph id="HEDC5C8FF357A4431A7DDCB345CD40B76"><enum>(C)</enum><text>The amount of
Federal dollars received by SBIR projects through Federal contracts, not
including dollars received through the SBIR program.</text>
</subparagraph></paragraph><paragraph id="H3B5EE8554B1E4B0DAECFE1BC7405E957"><enum>(3)</enum><header>Submission to
committees</header><text>For each fiscal year for which goals are required by
paragraph (1), the agency shall submit to the Committee on Small Business and
the Committee on Science and Technology of the House of Representatives and the
Committee on Small Business and Entrepreneurship of the Senate—</text>
<subparagraph id="HA4532159C2D34FFB9CF4269D49B5F2F6"><enum>(A)</enum><text>not later than 60
days after the beginning of the fiscal year, the goals; and</text>
</subparagraph><subparagraph id="H6AD7A3C32D3F47B6A00CBEE85050C3D6"><enum>(B)</enum><text>not later than 90
days after the end of the fiscal year, data on the extent to which the goals
were met and a description of the methodology used to collect such
data.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H3636D223195944E6804606948C1B358E"><enum>206.</enum><header>Commercialization
programs</header><text display-inline="no-display-inline">Section 9 of the
Small Business Act (15 U.S.C. 638) as amended, is further amended, by adding at
the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H71E64E20E1F643A093FCD184436B396A" style="OLC">
<subsection id="HC2859B9D24584F85913A632C700220D9"><enum>(bb)</enum><header>Commercialization
programs</header>
<paragraph id="HBD9CFB01223F4A399A5B5532A7D92DC0"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Each agency required
by this section to conduct an SBIR program shall establish a commercialization
program that supports the progress of SBIR awardees to the third phase. The
commercialization program may include activities such as partnership databases,
partnership conferences, multiple second phases, mentoring between prime
contractors and SBIR awardees, multiple second phases with matching private
investment requirements, jumbo awards, SBIR helpdesks, and transition
assistance programs. The agency shall include in its annual report an analysis
of the various activities considered for inclusion in the commercialization
program and a statement of the reasons why each activity considered was
included or not included, as the case may be.</text>
</paragraph><paragraph display-inline="no-display-inline" id="H2CF74FEB0F8F4E8FA092F633BB69FBD1"><enum>(2)</enum><header>Funding for
commercialization programs</header>
<subparagraph id="HFB3B2E62A41D414FBEF37A6251600EAD"><enum>(A)</enum><header>In
general</header><text>From amounts made available to carry out this paragraph,
the Administrator may, on petition by agencies required by this section to
conduct an SBIR program, transfer funds to such agencies to support the
commercialization programs of such agencies.</text>
</subparagraph><subparagraph id="HE49C34E24E854B4F9E46E36C8AF3D04E"><enum>(B)</enum><header>Petitions</header><text>The
Administrator shall establish rules for making transfers under subparagraph
(A). The initial set of rules shall be promulgated not later than 90 days after
the date of the enactment of this paragraph.</text>
</subparagraph><subparagraph id="HF5793AF0C11C47789BFF18EC8B706676"><enum>(C)</enum><header>Authorization of
appropriations</header><text>There is authorized to be appropriated to the
Administrator to carry out this paragraph $27,500,000 for fiscal year 2010 and
each fiscal year thereafter.</text>
</subparagraph></paragraph><paragraph id="H3733B224597D499DAFA15ACE76F420E4"><enum>(3)</enum><header>Funding
limitation</header><text display-inline="yes-display-inline">For payment of
expenses incurred to administer the commercialization programs described in
paragraphs (1) and (2), the head of an agency may use not more than an amount
equal to 1 percent of the funds set aside for the agency’s Small Business
Innovation Research program. Such funds—</text>
<subparagraph id="H635BA0A0171844DFBC71624ABDEABB52"><enum>(A)</enum><text>shall not be
subject to the limitations on the use of funds in subsection (f)(2); and</text>
</subparagraph><subparagraph id="HE5814A30E55E4AEC9F28C465A45640CA"><enum>(B)</enum><text>shall not be used
for the purpose of funding costs associated with salaries and expenses of
employees of the Federal
Government.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><enum>III</enum><header>Rural
development and outreach</header>
<section id="H739D8FD66ADB4BAAA53178CFA80FC6B0"><enum>301.</enum><header>Outreach and
support activities</header><text display-inline="no-display-inline">Section 9
of the Small Business Act (15 U.S.C. 638), as amended, is further amended by
inserting after subsection (r) the following:</text>
<quoted-block display-inline="no-display-inline" id="HB730D1956390475993D6D2026B90E627" style="OLC">
<subsection id="H7EAC382F67F1480BBA6DC0C088595C85"><enum>(s)</enum><header>Outreach and
support activities</header>
<paragraph id="H8EE702DC78DD41F682F7FF6DAD2CED43"><enum>(1)</enum><header>In
general</header><text>Subject to the other provisions of this subsection, the
Administrator shall make grants on a competitive basis to organizations, to be
used by the organizations to do one or both of the following:</text>
<subparagraph id="H5F8D6FBF116B46329E6893F0A6214B80"><enum>(A)</enum><text>To conduct
outreach efforts to increase participation in the programs under this
section.</text>
</subparagraph><subparagraph display-inline="no-display-inline" id="H7DB02794A697448695A4B0759F153A1E"><enum>(B)</enum><text>To provide
application support and entrepreneurial and business skills support to
prospective participants in the programs under this section.</text>
</subparagraph></paragraph><paragraph id="HD8AA8E4E51714126AB0891D7025B448B"><enum>(2)</enum><header>Authorization of
appropriations</header><text display-inline="yes-display-inline">There is
authorized to be appropriated to the Administrator $10,000,000 to carry out
paragraph (1) for each of fiscal years 2010 and 2011.</text>
</paragraph><paragraph id="H5B8BE29D46AF4262A88F2906313B4622"><enum>(3)</enum><header>Amount of
assistance</header><text>For each of subparagraphs (A) and (B) of paragraph
(1), the amount of assistance provided to an organization under that
subparagraph in any fiscal year—</text>
<subparagraph id="HA10248B209C64743A501334B0632A99A"><enum>(A)</enum><text>shall be equal to
the total amount of matching funds from non-Federal sources provided by the
organization; and</text>
</subparagraph><subparagraph id="HC9C6741BD80049F7B5ED03C0DDF829E4"><enum>(B)</enum><text>shall not exceed
$250,000.</text>
</subparagraph></paragraph><paragraph id="HB4142017259348A8894F4F5C5D557FE3"><enum>(4)</enum><header>Direction</header><text>An
organization receiving funds under paragraph (1) shall, in using those funds,
direct its activities at one or both of the following:</text>
<subparagraph id="HB7ABA7D8421B4DED8984AC4B41815558"><enum>(A)</enum><text>Small business
concerns located in geographic areas that are underrepresented in the programs
under this section.</text>
</subparagraph><subparagraph id="H39459F7197474BBD8B6C642766265D57"><enum>(B)</enum><text>Small business
concerns owned and controlled by women, small business concerns owned and
controlled by service-disabled veterans, and small business concerns owned and
controlled by minorities.</text>
</subparagraph></paragraph><paragraph id="HDDEA91B743994971B7D68489737AC851"><enum>(5)</enum><header>Advisory
board</header>
<subparagraph id="H4572C5C8D1F34C7D80331AC9136D2413"><enum>(A)</enum><header>Establishment</header><text>Not
later than 90 days after the date of the enactment of this subsection, the
Administrator shall establish an advisory board for the activities carried out
under this subsection.</text>
</subparagraph><subparagraph id="H19BB38EF9285454E8821D68A716A7795"><enum>(B)</enum><header>Non-applicability
of FACA</header><text>The Federal Advisory Committee Act (5 U.S.C. App.) shall
not apply to the advisory board.</text>
</subparagraph><subparagraph id="HB3A0081E6220400888DEEA65184BD428"><enum>(C)</enum><header>Members</header><text>The
members of the advisory board shall include the following:</text>
<clause id="H3369EA6B9B4A4B42B83D1B788AE9D320"><enum>(i)</enum><text>The Administrator
(or the Administrator’s designee).</text>
</clause><clause id="HB25D5A0F3E8F4FE0A80B51CCB8CB31D1"><enum>(ii)</enum><text>For each Federal
agency required by this section to conduct an SBIR program, the head of the
agency (or the designee of the head of the agency).</text>
</clause><clause id="H454493499CCA44248124FB0B63EB9F64"><enum>(iii)</enum><text>Representatives
of small business concerns that are current or former recipients of SBIR
awards, or representatives of organizations of such concerns.</text>
</clause><clause id="H1C89D58C55634FF9B366850C77F8E8AB"><enum>(iv)</enum><text>Representatives
of service providers of SBIR outreach and assistance, or representatives of
organizations of such service providers.</text>
</clause></subparagraph><subparagraph id="HF91DA950C91B4E4FACC5A4E3DA110499"><enum>(D)</enum><header>Duties</header><text>The
advisory board shall have the following duties:</text>
<clause id="H665BCCEA67B34061AFA4465E4BC41531"><enum>(i)</enum><text display-inline="yes-display-inline">To develop guidelines for awards under
paragraph (1), including guidelines relating to award sizes, proposal
requirements, measures for monitoring awardee performance, and measures for
determining the overall value of the activities carried out by the
awardees.</text>
</clause><clause id="HDEF6F7FEAB9949E29A737271BBA00978"><enum>(ii)</enum><text>To identify
opportunities for coordinated outreach, technical assistance, and
commercialization activities among Federal agencies, the recipients of the
awards under paragraph (1), and applicants and recipients of SBIR awards,
including opportunities such as—</text>
<subclause id="H883E7D1653A543DA9944C69B8AA1833A"><enum>(I)</enum><text>podcasting or
webcasting for conferences, training workshops, and other events;</text>
</subclause><subclause id="HD3D8C381FD8C4EDFAE71C6DA7ED54FBB"><enum>(II)</enum><text>shared online
resources to match prospective applicants with the network of paragraph (1)
recipients; and</text>
</subclause><subclause id="H9D1CECA091FA441F92B468B231D31CA5"><enum>(III)</enum><text>venture capital
conferences tied to technologies and sectors that cross agencies.</text>
</subclause></clause><clause id="H2D2B1BF46C004A6DA9B25ABCEB826AAE"><enum>(iii)</enum><text>To review and
recommend revisions to activities under paragraph (1).</text>
</clause><clause id="H3F018010ABC544299D55F3E1C089A52D"><enum>(iv)</enum><text>To submit to the
Committee on Small Business and Entrepreneurship of the Senate and the
Committee on Small Business and the Committee on Science and Technology of the
House of Representatives an annual report on the activities carried out under
paragraph (1) and the effectiveness and impact of those activities.</text>
</clause></subparagraph></paragraph><paragraph id="H2A77E88DCEBE4081A5EA5DE3491DBAAC"><enum>(6)</enum><header>Selection
criteria</header><text>In awarding grants under this subsection, the
Administrator shall use selection criteria developed by the advisory board
established under paragraph (5). The criteria shall include—</text>
<subparagraph id="HDE539E447A18497BBDBE3B5B884A848D"><enum>(A)</enum><text>criteria designed
to give preference to applicants who propose to carry out activities that will
reach either an underperforming geographic area or an underrepresented
population group (as measured by the number of SBIR applicants);</text>
</subparagraph><subparagraph id="HB3EA56282ED842378C5BE481E4980E28"><enum>(B)</enum><text>criteria designed
to give preference to applicants who propose to carry out activities that
complement, and are integrated into, the existing public-private innovation
support system for the targeted region or population;</text>
</subparagraph><subparagraph id="HC9CBC7F7325941068349F388678BDB73"><enum>(C)</enum><text display-inline="yes-display-inline">criteria designed to give preference to
applicants who propose to measure the effectiveness of the proposed activities;
and</text>
</subparagraph><subparagraph id="H71E0A1E99FE44D15B1AA5EB009DB6973"><enum>(D)</enum><text display-inline="yes-display-inline">criteria designed to give preference to
applicants who include a Small Business Development Center program that is
accredited for its technology services.</text>
</subparagraph></paragraph><paragraph id="H270AEB90C3C542EBA55742880F0E5223"><enum>(7)</enum><header>Peer
review</header><text>In awarding grants under this subsection, the
Administrator shall use a peer review process. Reviewers shall include—</text>
<subparagraph id="H6C766C1090E64C24B444688E3496BED6"><enum>(A)</enum><text>SBIR program
managers for agencies required by this section to conduct SBIR programs;
and</text>
</subparagraph><subparagraph id="HBB420A3FB40D462B9D4115EC9EC1245F"><enum>(B)</enum><text display-inline="yes-display-inline">private individuals and organizations that
are knowledgeable about SBIR, the innovation process, technology
commercialization, and State and regional technology-based economic development
programs.</text>
</subparagraph></paragraph><paragraph id="H825E9B6F8E9042D9AF9D32A3AACF23E9"><enum>(8)</enum><header>Per-State
limitations</header>
<subparagraph id="HDF6B1D73E91641F5BF42163F7D03E14F"><enum>(A)</enum><header>In
general</header><text>To be eligible to receive a grant under this subsection,
the applicant must have the written endorsement of the Governor of the State
where the targeted regions or populations are located (if the regions or
populations are located in more than one State, the applicant must have the
written endorsement of the Governor of each such State). Such an endorsement
must indicate that the Governor will ensure that the activities to be carried
out under the grant will be integrated with the balance of the State’s
portfolio of investments to help small business concerns commercialize
technology.</text>
</subparagraph><subparagraph id="HD91423D05A144FE2889053AAD6A9B88F"><enum>(B)</enum><header>Limitation</header><text display-inline="yes-display-inline">Each fiscal year, a Governor may have in
effect not more than one written endorsement for a grant under paragraph
(1)(A), and not more than one written endorsement for a grant under paragraph
(1)(B).</text>
</subparagraph></paragraph><paragraph id="HE9CE3A1E203E496A9FD4D3AF28C7FF75"><enum>(9)</enum><header>Specific
requirements for awards</header><text display-inline="yes-display-inline">In
making awards under paragraph (1) the Administrator shall ensure that each
award shall be for a period of 2 fiscal years. The Administrator shall
establish rules and performance goals for the disbursement of funds for the
second fiscal year, and funds shall not be disbursed to a recipient for such a
fiscal year until after the advisory board established under this subsection
has determined that the recipient is in compliance with the rules and
performance
goals.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H3CC6FCAB63CA4CC388B704D0753E08A2"><enum>302.</enum><header>Rural
preference</header><text display-inline="no-display-inline">Section 9 of the
Small Business Act (15 U.S.C. 638), as amended, is further amended by adding at
the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HDB1F411F30064E3A9F66F06ABB49BB67" style="OLC">
<subsection id="HE5424754D2C74FFE9AEAB748AA997795"><enum>(cc)</enum><header>Rural
preference</header><text display-inline="yes-display-inline">In making awards
under this section, Federal agencies shall give priority to applications so as
to increase the number of SBIR and STTR award recipients from rural
areas.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H812D660A3E6B492A9FF2ED8AF9F753CB"><enum>303.</enum><header>Obtaining SBIR
applicant’s consent to release contact information to economic development
organizations</header><text display-inline="no-display-inline">Section 9 of the
Small Business Act (15 U.S.C. 638), as amended, is further amended by adding at
the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HCEF14B44542540099CAF081645DAE41C" style="OLC">
<subsection id="H9BD55EF8B43045A396D1D2E75198FF34"><enum>(dd)</enum><header>Consent To
release contact information to organizations</header>
<paragraph id="H03BE774141CF48C59F45541DBBC3428A"><enum>(1)</enum><header>Enabling concern
to give consent</header><text display-inline="yes-display-inline">Each Federal
agency required by this section to conduct an SBIR program shall enable a small
business concern that is an SBIR applicant to indicate to the agency whether
the agency has its consent to—</text>
<subparagraph id="H296D8642C858487E8E123F5E0DEFBCF9"><enum>(A)</enum><text>identify the
concern to appropriate local and State-level economic development organizations
as an SBIR applicant; and</text>
</subparagraph><subparagraph id="H7CE8EFE50885416CABA3518DB4C05C55"><enum>(B)</enum><text>release the
concern’s contact information to such organizations.</text>
</subparagraph></paragraph><paragraph id="HC47A5D000B92457BBABF40A56E6F27F5"><enum>(2)</enum><header>Rules</header><text>The
Administrator shall establish rules to implement this subsection. The rules
shall include a requirement that the agency include in its SBIR application
forms a provision through which the applicant can indicate consent for purposes
of paragraph
(1).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H2D146F253EDF47F49DC5F482D332D3C9"><enum>304.</enum><header>Increased
partnerships between SBIR awardees and prime contractors, venture capital
investment companies, and larger businesses</header><text display-inline="no-display-inline">Section 9 of the Small Business Act (15
U.S.C. 638), as amended, is further amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="H79191DBDAD4B421FB454E234A2C6B83D" style="OLC">
<subsection id="H514B883712D14FD0916A8584BC7CB8F3"><enum>(ee)</enum><header>Increased
partnerships</header>
<paragraph id="HCA737DD1AC8848A6B66C345C0339A110"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Each agency required
by this section to conduct an SBIR program shall establish initiatives by which
the agency encourages partnerships between SBIR awardees and prime contractors,
venture capital investment companies, business incubators, and larger
businesses, for the purpose of facilitating the progress of the SBIR awardees
to the third phase.</text>
</paragraph><paragraph id="H2065048540AB43268D4916CDB0414F95"><enum>(2)</enum><header>Definition</header><text display-inline="yes-display-inline">In this subsection, the term <term>business
incubator</term> means an entity that provides coordinated and specialized
services to entrepreneurial businesses which meet selected criteria during the
businesses' startup phases, including providing services such as shared office
space and office services, access to equipment, access to telecommunications
and technology services, flexible leases, specialized management assistance,
access to financing, mentoring and training services, or other coordinated
business or technical support services designed to provide business development
assistance to entrepreneurial businesses during these businesses’ startup
phases.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><enum>IV</enum><header>SBIR
and STTR enhancement</header>
<section id="H6D0E9F693ACE481CB28EF9A4E54FCF96"><enum>401.</enum><header>Increased
number of research topic solicitations annually and shortened period for final
decisions on applications</header>
<subsection id="H4CFA8981DBA34224A7F6FCF1C97CA2F7"><enum>(a)</enum><header>Increased number
of research topic solicitations annually</header><text display-inline="yes-display-inline">Section 9(g)(2) of the Small Business Act
(15 U.S.C. 638(g)(2)) is amended by inserting before the semicolon at the end
the following: <quote>, but not less often than twice per year</quote>.</text>
</subsection><subsection id="HEE67B299E16A4FC4AED0C8AA3A49D858"><enum>(b)</enum><header>Shortened period
for final decisions on applications</header><text display-inline="yes-display-inline">Section 9(g)(4) of the Small Business Act
(15 U.S.C. 638(g)(4)) is amended by inserting before the semicolon at the end
the following: <quote>, but a final decision on each proposal shall be rendered
not later than 90 days after the date on which the solicitation closes unless
the Administrator determines, on a case by case basis, that a decision may be
extended from 90 days to 180 days</quote>.</text>
</subsection></section><section id="H4FDE7640442C4D0886157B1CBE7ADB19"><enum>402.</enum><header>Agencies should
fund vital R&D projects with the potential for
commercialization</header><text display-inline="no-display-inline">Section 9 of
the Small Business Act (15 U.S.C. 638), as amended, is further amended by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H2C992296F1E84A6FAB6795BC50C26DA7" style="OLC">
<subsection id="H7BD187A4BD364969B27102E06B1603DA"><enum>(ff)</enum><header>Multiple first
phase SBIR awards report</header><text display-inline="yes-display-inline">The
Administrator shall, on an annual basis, submit to the Committee on Small
Business and the Committee on Science and Technology of the House of
Representatives and the Committee on Small Business and Entrepreneurship of the
Senate a list identifying each small business concern that, for the period
covered by the preceding 5 fiscal years, received 15 or more first phase SBIR
awards and no second phase SBIR
awards.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H8CAC2FB081204BD8AF93B841C4B3E1AD"><enum>403.</enum><header>Federal agency
engagement with SBIR awardees that have been awarded multiple Phase One awards
but have not been awarded Phase Two awards</header><text display-inline="no-display-inline">Section 9 of the Small Business Act (15
U.S.C. 638), as amended, is further amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="H0F921134C18B41EEA1E5AB42A3EE4821" style="OLC">
<subsection id="HA1D8939EEEEF495897B180512CA583EC"><enum>(gg)</enum><header>Requirements
relating to Federal agency engagement with certain first phase SBIR
awardees</header><text display-inline="yes-display-inline">Each Federal agency
required by this section to conduct an SBIR program shall engage with SBIR
awardees that have been awarded multiple first phase SBIR awards but have not
been awarded any second phase SBIR awards and shall develop performance
measures with respect to awardee progression in the SBIR
program.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HB00FA528B1B54E21A1C4847F796DD9CC"><enum>404.</enum><header>Funding for
administrative, oversight, and contract processing costs</header><text display-inline="no-display-inline">Section 9 of the Small Business Act (15
U.S.C. 638), as amended, is further amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="H907BD6658114495A8815D327178575D9" style="OLC">
<subsection id="H673E65D6FD174F91BB1A76A5074ABBCC"><enum>(hh)</enum><header>Assistance for
administrative, oversight, and contract processing costs</header>
<paragraph id="H03A910E141464B368364E01EAE37E9F8"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">From amounts made
available to carry out this subsection, the Administrator may, on petition by
Federal agencies required by this section to conduct an SBIR program, transfer
funds to such agencies to assist with the administrative, oversight, and
contract processing costs relating to such program.</text>
</paragraph><paragraph id="H30DBFE18376E4DBF9029379ACED5515B"><enum>(2)</enum><header>Petitions</header><text>The
Administrator shall establish rules for making transfers under paragraph (1).
The initial set of rules shall be promulgated not later than 180 days after the
date of the enactment of this subsection.</text>
</paragraph><paragraph id="H66ECD927ED784BC0B8A9BD3B9CB2918A"><enum>(3)</enum><header>Limit on
transfer</header><text>A Federal agency may not receive under this subsection
in a fiscal year an amount greater than 3 percent of the SBIR budget of such
agency for such fiscal year.</text>
</paragraph><paragraph id="H78C09D1814334833A2AB0BBD48B0CF63"><enum>(4)</enum><header>Authorization of
appropriations</header><text>There is authorized to be appropriated to the
Administrator to carry out this subsection $27,500,000 for each of fiscal years
2010 and
2011.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H6BA4D8EE100441FE8C2D36FE54D7D169"><enum>405.</enum><header>Comptroller
general audit of how Federal agencies calculate extramural research
budgets</header><text display-inline="no-display-inline">The Comptroller
General of the United States shall carry out a detailed audit of how Federal
agencies calculate extramural research budgets for purposes of calculating the
size of the agencies’ Small Business Innovation Research Program and Small
Business Technology Transfer Program budgets. Not later than 1 year after the
date of the enactment of this Act, the Comptroller General shall submit to the
Committee on Small Business and the Committee on Science and Technology of the
House of Representatives and the Committee on Small Business and
Entrepreneurship of the Senate a report on the results of the audit.</text>
</section><section id="H3D7F5759247440A5B2F70F0CC4938225"><enum>406.</enum><header>Agency
databases to support program evaluation</header><text display-inline="no-display-inline">Section 9(k) of the Small Business Act (15
U.S.C. 638(k)) is amended—</text>
<paragraph commented="no" id="H6505802B45B3446BB39A5EB0F825D374"><enum>(1)</enum><text>in paragraph
(2)(A)—</text>
<subparagraph commented="no" id="H1C23B5D12BA3479FBF2D0C6818EF7273"><enum>(A)</enum><text>by striking
<quote>and</quote> at the end of clause (ii);</text>
</subparagraph><subparagraph commented="no" id="H3849983B92274D5FA35DD6DC012D63A4"><enum>(B)</enum><text>by inserting
<quote>and</quote> at the end of clause (iii); and</text>
</subparagraph><subparagraph commented="no" id="H8E20BDCCF0FE492982289296913DE53C"><enum>(C)</enum><text>by adding at the
end the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="HCB137C1C8A1B4825ACC3711FA39883E5" style="OLC">
<clause commented="no" id="H9A3AC52742B94F57A744E7B519689A9D"><enum>(iv)</enum><text display-inline="yes-display-inline">information on the ownership structure of
award recipients, both at the time of receipt of the award and upon completion
of the award
period;</text>
</clause><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" id="H9D4FF61ADAB3437481369FE6DBE320D0"><enum>(2)</enum><text>by amending
paragraph (3) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HC0CC7DCB4F5848D48F6C6838B44958B6" style="OLC">
<paragraph commented="no" id="HF605542855134F8999595D217EE364A9"><enum>(3)</enum><header>Updating
information for database</header>
<subparagraph commented="no" id="HDD30209B086448AC9A861500B9C007B5"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">A Federal agency
shall not make a Phase I or Phase II payment to a small business concern under
this section unless the small business concern has provided all information
required under this subsection and available at the time with respect to the
award under which the payment is made, and with respect to any other award
under this section previously received by the small business concern or a
predecessor in interest to the small business concern.</text>
</subparagraph><subparagraph commented="no" id="HC8A7431B91AC4A7E9EED3E798B6274D5"><enum>(B)</enum><header>Apportionment</header><text>In
complying with this paragraph, a small business concern may apportion sales or
additional investment information relating to more than one second phase award
among those awards, if it notes the apportionment for each award.</text>
</subparagraph><subparagraph commented="no" id="H1193505DD3984ACC8369CEACCF6D258A"><enum>(C)</enum><header>Annual updates
upon termination</header><text display-inline="yes-display-inline">A small
business concern receiving an award under this section shall—</text>
<clause commented="no" id="H0E405E3C71A34030B54CF9840D0CE416"><enum>(i)</enum><text display-inline="yes-display-inline">in the case of a second phase award, update
information in the databases required under paragraphs (2) and (6) concerning
that award at the termination of the award period;</text>
</clause><clause commented="no" id="HE51EEF07CA4A43818FCC9BFF5137D58F"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of award recipients not
described in clause (iii), be requested to voluntarily update such information
annually thereafter for a period of 5 years; and</text>
</clause><clause commented="no" id="H9045A655536B4E29B55CEB167C82D50C"><enum>(iii)</enum><text display-inline="yes-display-inline">in the case of a small business concern
applying for a subsequent first phase or second phase award, be required to
update such information annually thereafter for a period of 5
years.</text>
</clause></subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="H31259CFB33F14F62A9C77997E771474B"><enum>(3)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H7C2BEF68DB0646EDAEC368C0D5B977A5" style="OLC">
<paragraph commented="no" id="HB863DEF705DF45D09506761F473ABF5F"><enum>(6)</enum><header>Agency program
evaluation databases</header><text display-inline="yes-display-inline">Each
Federal agency required to establish an SBIR or STTR program under this section
shall develop and maintain, for the purpose of evaluating such programs, a
database containing information required to be contained in the database under
paragraph (2). Each such database shall be designed to be accessible to other
agencies that are required to maintain a database under this paragraph. Each
such database shall be developed and operated in a manner to ensure that each
such database is relevant to and contributes to the agency’s oversight and
evaluation of the SBIR and STTR programs. Paragraphs (4) and (5) apply to each
database under this
paragraph.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H1561D64B652D47C5B2718040F700BAD7"><enum>407.</enum><header>Agency
databases to support technology utilization</header><text display-inline="no-display-inline">Section 9(k) of the Small Business Act (15
U.S.C. 638(k)), as amended, is further amended by adding at the end the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HA65FB978EE564668AE1B3B8C6EAAB964" style="OLC">
<paragraph commented="no" id="HF93B75D4C7D74415BCA37A434072184A"><enum>(7)</enum><header>Agency databases
to support technology utilization</header><text display-inline="yes-display-inline">Each Federal agency with an SBIR or STTR
program shall create and maintain a technology utilization database, which
shall be available to the public and shall contain data supplied by the award
recipients specifically to help them attract customers for the products and
services generated under the SBIR or STTR project, and to attract additional
investors and business partners. Each database created under this paragraph
shall include information on the other databases created under this paragraph
by other Federal agencies. Participation in a database under this paragraph
shall be voluntary, except that such participation is required of all award
recipients who received supplemental payments from SBIR and STTR program funds
above their initial Phase II award. Each database created under this paragraph
shall be developed and operated in a manner to ensure that each such database
is relevant to and contributes to the agency’s oversight and evaluation of the
SBIR and STTR
programs.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H6012843E0171456A82FAA66E56C2D9FF"><enum>408.</enum><header>Interagency
Policy Committee</header>
<subsection commented="no" id="HB7B7ABA3D0A64985A714C75817B39862"><enum>(a)</enum><header>Establishment</header><text display-inline="yes-display-inline">The Director of the Office of Science and
Technology Policy shall establish an Interagency SBIR/STTR Policy Committee
comprised of one representative from each Federal agency with an SBIR
program.</text>
</subsection><subsection commented="no" id="H5B0A86A1DDE14B58BCFA81EFE2013D22"><enum>(b)</enum><header>Cochairs</header><text display-inline="yes-display-inline">The Director of the Office of Science and
Technology Policy and the Director of the National Institute of Standards and
Technology shall jointly chair the Interagency SBIR/STTR Policy
Committee.</text>
</subsection><subsection commented="no" id="H672D329C068F4708B70C1A808DBEE52D"><enum>(c)</enum><header>Duties</header><text display-inline="yes-display-inline">The Interagency SBIR/STTR Policy Committee
shall review the following issues and make policy recommendations on ways to
improve program effectiveness and efficiency:</text>
<paragraph commented="no" id="HAE79BA0B0C8F4E7A940651F5CE2EEEE1"><enum>(1)</enum><text>The public and
government databases described in section 9(k) (1) and (2) of the Small
Business Act (15 U.S.C. 638(k) (1) and (2)).</text>
</paragraph><paragraph commented="no" id="HB0FB1B6C6CF4449698E5BAC53E4E6B40"><enum>(2)</enum><text>Federal agency
flexibility in establishing Phase I and II award sizes, and appropriate
criteria to exercise such flexibility.</text>
</paragraph><paragraph commented="no" id="H91F30ABA5F0C418F977B48428EC65D42"><enum>(3)</enum><text>Commercialization
assistance best practices in Federal agencies with significant potential to be
employed by other agencies, and the appropriate steps to achieve that leverage,
as well as proposals for new initiatives to address funding gaps business
concerns face after Phase II but before commercialization.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H8071B7F2BD6F4833897A404CFBA6BAE1"><enum>(d)</enum><header>Reports</header><text display-inline="yes-display-inline">The Interagency SBIR/STTR Policy Committee
shall transmit to the Committee on Science and Technology and the Committee on
Small Business of the House of Representatives, and to the Committee on Small
Business and Entrepreneurship of the Senate—</text>
<paragraph commented="no" id="HDE2E616E47D34F6E93B5A5D030E1A9D6"><enum>(1)</enum><text>a report on its
review and recommendations under subsection (c)(1) not later than 1 year after
the date of enactment of this Act;</text>
</paragraph><paragraph commented="no" id="HBA9E2BD051AE4BBCB50E9AD3A6030219"><enum>(2)</enum><text>a report on its
review and recommendations under subsection (c)(2) not later than 18 months
after the date of enactment of this Act; and</text>
</paragraph><paragraph commented="no" id="HA091908163C240E88E271D291275863A"><enum>(3)</enum><text>a report on its
review and recommendations under subsection (c)(3) not later than 2 years after
the date of enactment of this Act.</text>
</paragraph></subsection></section><section id="H5E06D206F82F49D9BC4C68F137389274"><enum>409.</enum><header>National
Research Council SBIR Study</header><text display-inline="no-display-inline">Section 108(d) of the Small Business
Reauthorization Act of 2000, enacted into law by reference under section
1(a)(9) of the Consolidated Appropriations Act, 2001 (Public Law 106–554), is
amended—</text>
<paragraph commented="no" id="H102CD9FC3C734AF0A5812FBD18252503"><enum>(1)</enum><text>by striking
<quote>of the Senate</quote> and all that follows through <quote>not later than
3</quote> and inserting <quote>of the Senate, not later than 3</quote>;
and</text>
</paragraph><paragraph commented="no" id="H5A7E3E5BE0BF405B9A109AF929611256"><enum>(2)</enum><text>by striking
<quote>; and</quote> and all that follows through <quote>update of such
report</quote>.</text>
</paragraph></section><section id="HF74D47378D8B42D1A10D932924533D92"><enum>410.</enum><header>Express
authority to <term>fast-track</term> Phase Two awards for promising Phase One
research</header><text display-inline="no-display-inline">Section 9 of the
Small Business Act (15 U.S.C. 638), as amended, is further amended by adding at
the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HA996CA0273894973A06996D44B5831A1" style="OLC">
<subsection id="H8711A2EA6376454796FAEE8885299DD4"><enum>(ii)</enum><header>Authority To
<term>fast-track</term> phase two awards for promising phase one
research</header><text display-inline="yes-display-inline">To address the delay
between an award for the first phase of an SBIR program and the application for
and extension of an award for the second phase of such program, each Federal
agency with an SBIR program may develop <term>fast-track</term> programs to
eliminate such delay by issuing second phase SBIR awards as soon as
practicable, including in appropriate cases simultaneously with the issuance of
the first phase SBIR award. The Administrator shall encourage the development
of such <term>fast-track</term>
programs.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HAF0D4B50CE9B48B5BCDE52B2A99BCD1A"><enum>411.</enum><header>Increased SBIR
and STTR award levels</header>
<subsection id="HD44FFF2A169544DDAC949AB140651BEE"><enum>(a)</enum><header>SBIR award level
and annual adjustments</header><text display-inline="yes-display-inline">Section 9(j) of the Small Business Act (15
U.S.C. 638(j)) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HD2DE551DE5804CE1B1AE3C1CF5D64046" style="OLC">
<subsection id="H8CCBC472B8BD4F5CAFAC5F71D3DACF7A"><enum>(4)</enum><header>Further
additional modifications</header><text display-inline="yes-display-inline">Not
later than 180 days after the date of enactment of this paragraph and
notwithstanding paragraph (2)(D), the Administrator shall modify the policy
directives issued pursuant to this subsection to provide for an increase to
$250,000 in the amount of funds which an agency may award in the first phase of
an SBIR program, and to $2,000,000 in the second phase of an SBIR program, and
a mandatory annual adjustment of such amounts to reflect economic adjustments
and programmatic
considerations.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H1B9250DB90B84682A7E69B7930F56C61"><enum>(b)</enum><header>STTR award level
and annual adjustments</header><text display-inline="yes-display-inline">Section 9(p)(2)(B)(ix) of the Small
Business Act (15 U.S.C. 638(p)(2)(B)(ix)) is amended—</text>
<paragraph id="H0823E0FFFF284EAC818D840F3BA27CCF"><enum>(1)</enum><text>by striking
<quote>$100,000</quote> and <quote>$750,000</quote> and inserting
<quote>$250,000</quote> and <quote>$2,000,000</quote>, respectively; and</text>
</paragraph><paragraph id="H97F84BD05838485285A311921F00D16A"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>greater or lesser
amounts</quote> and inserting <quote>with a mandatory annual adjustment of such
amounts to reflect economic adjustments and programmatic considerations, and
with lesser amounts</quote>.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="HC50B2FD1AC5C4E05BA7EDF4DA9D32C2D"><enum>(c)</enum><header>Limitation on
certain awards</header><text>Section 9 of the Small Business Act (15 U.S.C.
638), as amended, is further amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H6723EB51DC1F4CA79CDC0EC4F4CE35E8" style="OLC">
<subsection id="H92491EA01F4148F9AB91EE7AD0799296"><enum>(jj)</enum><header>Limitation on
phase I and II awards</header><text display-inline="yes-display-inline">No
Federal agency shall issue an award under the SBIR program or the STTR program
if the size of the award exceeds the amounts established under subsections
(j)(4) and
(p)(2)(B)(ix).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H1DCEFCA380AA4846A4B6C77F6B6A0EE6"><enum>412.</enum><header>Express
authority for an agency to award sequential Phase Two awards for SBIR-funded
projects</header><text display-inline="no-display-inline">Section 9 of the
Small Business Act (15 U.S.C. 638), as amended, is further amended by adding at
the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H83B6BB365CB54AE18EE60A472A90F978" style="OLC">
<subsection id="HAC4B4C4DDC0B438EAEB1EFCB0A129187"><enum>(kk)</enum><header>Requirements
relating to additional second phase SBIR awards</header>
<paragraph id="HC8865FA1E92C4516A136BB7091A9AF99"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">A small business
concern that receives a second phase SBIR award for a project remains eligible
to receive additional second phase SBIR awards for such project.</text>
</paragraph><paragraph id="HE986ABC2E778433AB94FC5439E860B1C"><enum>(2)</enum><header>Technical or
weapons systems</header><text>Agencies are expressly authorized to provide
additional second phase SBIR awards for testing and evaluation assistance for
the insertion of SBIR technologies into technical or weapons
systems.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H263BE9C853A848C1BEF672069BD4021F"><enum>413.</enum><header>First phase
required</header><text display-inline="no-display-inline">Section 9 of the
Small Business Act (15 U.S.C. 638), as amended, is further amended by adding at
the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HB89805A581B94E5D8E47645DB3780CF8" style="OLC">
<subsection id="H4F5BD408947D43119F28BD42BFB8BE95"><enum>(ll)</enum><header>First phase
required</header><text display-inline="yes-display-inline">Under this section,
a Federal agency shall provide to a small business concern an award for the
second phase of an SBIR program with respect to a project only if such agency
finds that the small business concern has been provided an award for the first
phase of an SBIR program with respect to such project or has completed the
determinations described in subsection (e)(4)(A) with respect to such project
despite not having been provided an award for the first
phase.</text>
</subsection><after-quoted-block>.
</after-quoted-block></quoted-block>
</section>