II 111th CONGRESS 1st Session H. R. 2965 IN THE SENATE OF THE UNITED STATES July 9, 2009 Received AN ACT To amend the Small Business Act with respect to the Small Business Innovation Research Program and the Small Business Technology Transfer Program, and for other purposes.
1.
Short title; table of contents
(a)
Short title
This Act may be cited as the Enhancing Small Business Research and Innovation Act of 2009. (b)
Table of contents
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 renewable 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. Preferences. 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. Sec. 414. Involvement of Chief Counsel for Advocacy. Sec. 415. Minority institution program. Sec. 416. Areas that have lost a major source of employment. Sec. 417. Enhancing veteran participation in SBIR. Sec. 418. Veteran preference. Sec. 419. Medical technology. Title V—Improving water use and transmission technology Sec. 501. Improving water use and transmission technology. Title VI—GAO study with respect to venture capital operating company involvement Sec. 601. GAO study with respect to venture capital operating company involvement.
<enum>I</enum><header>Program extension and venture capital operating company involvement</header> <section id="H7E2AD535B0F74A6EBEF607D9E1BDE27C"><enum>101.</enum><header>Extension of termination dates</header> <subsection id="H0CD8139892894A5493ABF035D7047AFF"><enum>(a)</enum><header>SBIR</header><text display-inline="yes-display-inline">Section 9(m) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(m)</external-xref>) is amended by striking <quote>2008</quote> and inserting <quote>2011</quote>.</text> </subsection><subsection commented="no" id="HCDB34AEEA4A044648C193DD13291F62E"><enum>(b)</enum><header>STTR</header><text display-inline="yes-display-inline">Section 9(n)(1)(A) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(n)(1)(A)</external-xref>) is amended by striking <quote>2009</quote> and inserting <quote>2011</quote>.</text> </subsection></section><section id="HF201C3381EF84F458552F94D95D968FA"><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 (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638</external-xref>) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HC9B09CA4084F411D978730B2DE43C1D2" style="OLC"> <subsection id="H06DE730204B94F71ABE632B01F2E3C66"><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="HACCBD354653A45B584362965A0ED62A9"><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="H48EF8278767D46D692A6964D42650F80"><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="H3B6F3E30263C41CAB14F1F25D7CB17E9"><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="H48F89005B9DF42B7B7E57FD96B7C66C0"><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="HD968BA8261EE4F08B8DB54CCEE13CE35"><enum>(3)</enum><text>A business concern shall be deemed to be <term>independently owned and operated</term> if—</text> <subparagraph id="HF2E49A7B43A5486580F8764174B26B95"><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="HFAB7A95F63A042A9A4B3F0A20EDDBDF7"><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="H750396690BEE44B1BF3FC2A96578489F"><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="HE325C31307674FE7AD5EE953FB924310"><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="H02E4D65300F94FAA8F71B311BAA05D0C"><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="HB45D8AC0F0034A1584373D2C8CD8DABD"><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="HF149D8AC2F104A609BA36E62564B14AB"><enum>(5)</enum><text>The term <term>venture capital operating company</term> means a business concern—</text> <subparagraph id="HF1F92BF971CD424986ED7B292086C971"><enum>(A)</enum><text>that—</text> <clause id="H727EED58ACC64754817D91E25AC3B8B9"><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="H1CE20FD51E224B41A4D9AFBA0181C6FB"><enum>(ii)</enum><text>is an entity that—</text> <subclause id="HBC9119EA698141A786B589327DA265DB"><enum>(I)</enum><text>is registered under the Investment Company Act of 1940 (<external-xref legal-doc="usc" parsable-cite="usc/15/80a-51">15 U.S.C. 80a–51 et seq.</external-xref>); or</text> </subclause><subclause id="H52F1C6E69D844A6AA10B0C9D8B94EFF0"><enum>(II)</enum><text display-inline="yes-display-inline">is an investment company, as defined in subsection (a)(1) of section 3 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/15/80a-3">15 U.S.C. 80a–3</external-xref>), which is not registered under such Act because of an exemption under subsection (c)(1) or subsection (c)(7) of such section; and</text> </subclause></clause></subparagraph><subparagraph id="HE19DA936C64A437F89A5CF97D4F78EEF"><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="H65F382E104084156B585DC68E95112BD"><enum>201.</enum><header>Focus on commercialization</header><text display-inline="no-display-inline">Section 9(a) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(a)</external-xref>) 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="HF3B877A108F342B0B857316C43674D67"><enum>202.</enum><header>Inclusion of renewable 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 (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(g)(3)</external-xref>) is amended—</text> <paragraph id="H02469A06436743398274D9CD2D5CBA4D"><enum>(1)</enum><text>in the matter preceding subparagraph (A) by inserting after <quote>critical technologies</quote> the following: <quote>or pressing research priorities (including renewable energy-related technologies)</quote>;</text> </paragraph><paragraph id="H921714981D3F409F9ADE3824D398B767"><enum>(2)</enum><text display-inline="yes-display-inline">in subparagraph (A) by striking <quote>or</quote> at the end; and</text> </paragraph><paragraph id="HE94EFB244DF6465E84FD6E9A40A2C896"><enum>(3)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H864BEC4E556F401B8A0CB3D34C7DD825" style="OLC"> <subparagraph id="HBC04C47ADC8B4D878371A4EB8554DCD7"><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="H27D3D64572C94A3887AD85B065A28CE0"><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="H36B9A2C9C275409BA35F65A2C01B39C1"><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="H51548F88C3D044CCB80F836FEB30030C"><enum>203.</enum><header>Nanotechnology-related research topics</header> <subsection id="HE42B061C0FEF4B4B96B043082B0E206B"><enum>(a)</enum><header>SBIR</header><text display-inline="yes-display-inline">Section 9(g)(3) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(g)(3)</external-xref>), as amended, is further amended—</text> <paragraph id="HC6A8313397C44772BAF80BF70371B5A8"><enum>(1)</enum><text>in subparagraph (D) by striking <quote>or</quote> at the end;</text> </paragraph><paragraph id="H6D49EC038064478FA13384AF3067A00C"><enum>(2)</enum><text>in subparagraph (E) by adding <quote>or</quote> at the end; and</text> </paragraph><paragraph id="HE9D5C3BC39DA4B3992DC6D3C541F286A"><enum>(3)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H2499C1A4B135455DA1903E40F16F46EC" style="OLC"> <subparagraph id="HDB3F5F4C3FD14087ABC6B0FE01CF0C17"><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 (<external-xref legal-doc="usc" parsable-cite="usc/15/7501">15 U.S.C. 7501(c)(4)</external-xref>) 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="H3282DC60E0EA4B27A155CDD85101F17C"><enum>(b)</enum><header>STTR</header><text>Section 9(o)(3) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(o)(3)</external-xref>) is amended—</text> <paragraph id="HCBAE276CC37A4231A792FD3D44324E50"><enum>(1)</enum><text>in subparagraph (A) by striking <quote>or</quote> at the end;</text> </paragraph><paragraph id="HFE34895320C64C68A1F8E98BE2153508"><enum>(2)</enum><text>in subparagraph (B) by adding <quote>or</quote> at the end; and</text> </paragraph><paragraph id="HF1D1965070D145BF8EC03E0DD31356A5"><enum>(3)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HAB5B15A97D564204A0ACD85F865EDDD0" style="OLC"> <subparagraph id="H0759CBCFF9034B37972DF1AA9FE7FE25"><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 (<external-xref legal-doc="usc" parsable-cite="usc/15/7501">15 U.S.C. 7501(c)(4)</external-xref>) 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="HCDDA696DEB294DF9832675AEB173EAB6"><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 (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(e)</external-xref>) is amended—</text> <paragraph id="H7BB142071C5142719D032B66AFA3C850"><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="H3162634F59864D63AF19066430BF0BE0"><enum>(2)</enum><text>in paragraph (8) by striking <quote>and</quote> at the end;</text> </paragraph><paragraph id="H1FC6357270854181B9059BDF877D0AB0"><enum>(3)</enum><text>in paragraph (9) by striking the period at the end and inserting <quote>; and</quote>; and</text> </paragraph><paragraph id="H3947143AB8A342928BBE58BE72D8213C"><enum>(4)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H4004B18D1FA448239394461A42157454" style="OLC"> <paragraph id="HF6AD003F5D104E088AC0F800761B801D"><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="HE942BB7CA4EA474EB0349C2A2202414F"><enum>205.</enum><header>Agency research goals</header><text display-inline="no-display-inline">Section 9 of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638</external-xref>), as amended, is further amended by striking subsection (h) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="H2589E9722B7545FA836355745895C8A0" style="OLC"> <subsection id="HDFDE79921BDD4BE1A758B3CDC0F8E2EA"><enum>(h)</enum><header>Agency research goals</header> <paragraph id="H0508B36CEEC74EE4BF130FFFBA5498C1"><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="H4F76AEAB2B234BD4A8054C10C5E4053A"><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="H63AC932B9572473BAFCBEB37D066A9DE"><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="H23096EA55E8D4DD9A43660F0574A018B"><enum>(B)</enum><text>The percentage of SBIR projects that are successfully integrated into a program of record.</text> </subparagraph><subparagraph id="H418A92AED90E4B5688B56ADF4F9BBCBD"><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="H45F52F7EED3548BB9BE0B5552CCEAD95"><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="H8DF86C560DA74C95B9FF86DB65A29B94"><enum>(A)</enum><text>not later than 60 days after the beginning of the fiscal year, the goals; and</text> </subparagraph><subparagraph id="H851C4542EDEC4963A76DC462CB746A04"><enum>(B)</enum><text display-inline="yes-display-inline">not later than 90 days after the end of the fiscal year, data on the extent to which the goals were met, a description of the methodology used to collect such data, and a description of the reasons why the goals were met or not met.</text> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H3E9A3615983D4B54B3ADA72CA8F948AF"><enum>206.</enum><header>Commercialization programs</header><text display-inline="no-display-inline">Section 9 of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638</external-xref>) as amended, is further amended, by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H0CCAF52FB82D4B599853970EF0D27702" style="OLC"> <subsection id="HAA41E79747D94DAB9F593F94A7BD7903"><enum>(bb)</enum><header>Commercialization programs</header> <paragraph id="HF4F79CF5ABAE4E09A9B6274318D2AA13"><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="H381E405D68A542F6B4FE24AB1F0BB0AD"><enum>(2)</enum><header>Space shuttle program</header><text display-inline="yes-display-inline">Each agency required to establish a commercialization program under paragraph (1) and that carries out construction, assembly, or research and development activities with respect to the space shuttle program (also known as the space transportation system) shall include, as part of such commercialization program, activities to assist small business concerns affected by the termination of the space shuttle program to commercialize technologies through SBIR. Activities to assist such small business concerns may include activities described in paragraph (1) and other activities to assist small business concerns making the transition from work relating to the space shuttle program to work in related or unrelated industries.</text> </paragraph><paragraph display-inline="no-display-inline" id="H4A4F9794A1CB4D4ABCD512525C0BFC04"><enum>(3)</enum><header>Funding for commercialization programs</header> <subparagraph id="H4DA91E7BE370445D83AF288CB26610E7"><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="H8EFD9B6A9A894E878A9D87C76716B0AD"><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="H5A14AA8429D644D0B43730517F77D4F5"><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="H50C1D20A26C047D587A9840F2FA4ABBE"><enum>(4)</enum><header>Funding limitation</header><text display-inline="yes-display-inline">For payment of expenses incurred to administer the commercialization programs described in this subsection, 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="H13D473B1789D4002B5E0B7D6A832F486"><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="H9B0795A794CD4BC1BCFA2BB04A06DB50"><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="HA784D536630040A9B3A6E2784004FA81"><enum>301.</enum><header>Outreach and support activities</header><text display-inline="no-display-inline">Section 9 of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638</external-xref>), as amended, is further amended by inserting after subsection (r) the following:</text> <quoted-block display-inline="no-display-inline" id="H3A9F1C1B2D8646AABE8C51C909D0CCFB" style="OLC"> <subsection id="H1329D5D858694335AD115CA590472519"><enum>(s)</enum><header>Outreach and support activities</header> <paragraph id="HD9995289D6CB4A8B9D378AE152D3FCF8"><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="H8080EC7A07B84CAD98509D04FDCD0236"><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="H065FEB65DF4E49069E9BE8716D9335DC"><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="H8F0EF34CBD2B4915A0A919B4AAFF0963"><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="H90DC67C6453943D8A55E93A23A71F195"><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="H3F296A3A6AAA4C1797D1B2184E40D8C0"><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="HA5D436732DD949D39DDC5B3C2AEB5CD7"><enum>(B)</enum><text>shall not exceed $250,000.</text> </subparagraph></paragraph><paragraph id="H56420359F3CF450A98D56A2A2292C97C"><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 more of the following:</text> <subparagraph id="HB17FEB101A324F9CAA6F7497AD536BDB"><enum>(A)</enum><text>Small business concerns located in geographic areas that are underrepresented in the programs under this section.</text> </subparagraph><subparagraph id="H190E7B7B6293451FA97FDF33CBC74E55"><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><subparagraph id="H2BA710D4BF3D408BBB638114AF912F76"><enum>(C)</enum><text display-inline="yes-display-inline">Small business concerns owned and controlled by Native Americans.</text> </subparagraph><subparagraph id="HB779C573A5E644309EA9575E1280B384"><enum>(D)</enum><text display-inline="yes-display-inline">Small business concerns located in geographic areas with an unemployment rate that exceeds the national unemployment rate.</text> </subparagraph></paragraph><paragraph id="H3813481EB2BF45A8BAB492329A6E6422"><enum>(5)</enum><header>Advisory board</header> <subparagraph id="HC5A8BCB318EF48728313AFF40671CE6D"><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="H5B0894816D52473BBD04BA1D5B12A614"><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="HEDE9D249E41D44E786514AA4E5EADAA2"><enum>(C)</enum><header>Members</header><text>The members of the advisory board shall include the following:</text> <clause id="H23D4B6EB5C1D456B984C187C1307AE21"><enum>(i)</enum><text>The Administrator (or the Administrator’s designee).</text> </clause><clause id="H76797114CA384221AECF6B3866CFC791"><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="H8B109D28503444078BBDC7025BBD2C2A"><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="H5F1BFDD77E794773934E4174E05A404B"><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="HD4698DB96185428C85518DDF9F1EEB18"><enum>(D)</enum><header>Duties</header><text>The advisory board shall have the following duties:</text> <clause id="H25A2351C73174061AEF1827FE88B1677"><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="HF41E69CADE8442E2A347E1B88E861B23"><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="H33A5847C02BC470BB6671A6075B6FA36"><enum>(I)</enum><text>podcasting or webcasting for conferences, training workshops, and other events;</text> </subclause><subclause id="HFEBF78F1B23848E9920A453AC55774B1"><enum>(II)</enum><text>shared online resources to match prospective applicants with the network of paragraph (1) recipients; and</text> </subclause><subclause id="HF0BB67F8DEA24F9C85D9F01FEA1A6536"><enum>(III)</enum><text>venture capital conferences tied to technologies and sectors that cross agencies.</text> </subclause></clause><clause id="H5CDACE2B88AF42AF80D5A6495F93F723"><enum>(iii)</enum><text>To review and recommend revisions to activities under paragraph (1).</text> </clause><clause id="H014BE742E640489BB211EB66639810B6"><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="H9BCF9A35250C452CA2489B60070172EC"><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="H7C04D503A9964917828A2D2F7D4E7AA6"><enum>(A)</enum><text display-inline="yes-display-inline">criteria designed to give preference to applicants who propose to carry out activities that will reach either an underperforming geographic area (including geographic areas with an unemployment rate that exceeds the national unemployment rate) or an underrepresented population group (as measured by the number of SBIR applicants);</text> </subparagraph><subparagraph display-inline="no-display-inline" id="H969A904493974EF4A755FF24E7F4C714"><enum>(B)</enum><text display-inline="yes-display-inline">criteria designed to give preference: (i) to applicants serving underrepresented States and regions; and (ii) to applicants who are women-, service-disabled veterans-, or minority-owned.</text> </subparagraph><subparagraph id="H3733360BF30648DCBEDBC34E8CF113A8"><enum>(C)</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="H39019B683BB743C1B1DC062E3622BF13"><enum>(D)</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="H19EC6BE0854F4460A761C4973F18FB8F"><enum>(E)</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="H8A1CB6D049B9442587FDCBDC8ED736DE"><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="H73C69FFD16D7489DB7F182C29B54F36E"><enum>(A)</enum><text>SBIR program managers for agencies required by this section to conduct SBIR programs; and</text> </subparagraph><subparagraph id="H7EC7642FB10349CCB20ADE8FC6AF6334"><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="H8B49195BADA94C9C8D29B0F12587DF6D"><enum>(8)</enum><header>Per-State limitations</header> <subparagraph id="HF93356F537314B20AA159F0DA66B908D"><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="HB9B42633005C46FAAC4163C0C1005241"><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="H5B5EB6A1322849FAB4823AC28253D01E"><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="HF3A576ABD14C4C8DBB03B17EAE4BAF8C"><enum>302.</enum><header>Preferences</header><text display-inline="no-display-inline">Section 9 of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638</external-xref>), as amended, is further amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HC2CCFD33A9C3484FB5402C112AB14435" style="OLC"> <subsection id="HFF86B5A9AA9F4D548FE227724DC5458D"><enum>(cc)</enum><header>Preferences</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 that are from areas with an unemployment rate that exceeds the national unemployment rate, that are from rural areas, or that are small business concerns owned and controlled by Native Americans. The Administrator shall submit an annual report to Congress setting forth how many small business concerns owned and controlled by Native Americans were recipients of assistance under this section.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H9E1F323F11A842DEB9EDCF09A7C0490F"><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 (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638</external-xref>), as amended, is further amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H1752375BC4AD4B6F857C151FD7FD3C76" style="OLC"> <subsection id="H095ED00AB5954435A8DA32129357B907"><enum>(dd)</enum><header>Consent To release contact information to organizations</header> <paragraph id="H685FE26475DC46158F7A254211441A66"><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="H96A86245E1E544B7B5F0C0823267E9FC"><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="H414BD293BB20407FB1004CA206224D5C"><enum>(B)</enum><text>release the concern’s contact information to such organizations.</text> </subparagraph></paragraph><paragraph id="H2EA357F023E34803943B8D9EAF6C9791"><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="HF1F7379A80CE46D7B8D1307A1CA8AAC4"><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 (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638</external-xref>), as amended, is further amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H9882770F9E9B4924B8430DC617418B20" style="OLC"> <subsection id="H6173EE348FBF4214834F1D920170C3D4"><enum>(ee)</enum><header>Increased partnerships</header> <paragraph id="H9ECC3CA97FF6430FB68D53EA35D3A833"><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="H8F0B15EA04D146BCBFCB65F69B83C91D"><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="H4E02582A07D14B69ACAF96861A19B0CF"><enum>401.</enum><header>Increased number of research topic solicitations annually and shortened period for final decisions on applications</header> <subsection id="H7E91C44F057C40C8B49C5E89D773DBC5"><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 (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(g)(2)</external-xref>) 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="H36AA84E835034F0CB1D41F178161719E"><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 (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(g)(4)</external-xref>) 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="HEA1083EF622E4755B48C0612ACDE3AB6"><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 (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638</external-xref>), as amended, is further amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H374D2E95E697499A8BC46C3DCA5A79E1" style="OLC"> <subsection id="H7C61D69FB31B4460B0D7C03096922AB1"><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="H7180FF5D23CC4D2E80EAEE888952BCB0"><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 (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638</external-xref>), as amended, is further amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H1970A974E8D247FD8B18C4D114BAAE9F" style="OLC"> <subsection id="HDE738C57DBBB436D817A32872FAB20CC"><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="H8A60E3917278446BB24C7F78CF88D693"><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 (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638</external-xref>), as amended, is further amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H62E2B3987FF741428CEA7E9DAB9600BD" style="OLC"> <subsection id="H24FA2468D5094A8B96557970093A5928"><enum>(hh)</enum><header>Assistance for administrative, oversight, and contract processing costs</header> <paragraph id="H053805773B7F4F7F8E8DF68299AF5D18"><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="HF7560E45BEF04C6C97CF8BF8DF86B98D"><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="HBEF8DF066F16450D90C7F1356E6794BC"><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="H03B58370E8BB488DB172569F7C63EEA7"><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="H5C0EEEF2768F4F418F0133E22E73B132"><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="H3048540FB422462CAC6BD73E2490B2BE"><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 (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(k)</external-xref>) is amended—</text> <paragraph commented="no" id="H5CF3803DE6994D77B54829CA8D73A8D8"><enum>(1)</enum><text>in paragraph (2)(A)—</text> <subparagraph commented="no" id="HBD089E580FF64000B1E62CF5396CB509"><enum>(A)</enum><text>by striking <quote>and</quote> at the end of clause (ii);</text> </subparagraph><subparagraph commented="no" id="H0D5D3CF7D4D84EE1AB96ADA860B5852B"><enum>(B)</enum><text>by inserting <quote>and</quote> at the end of clause (iii); and</text> </subparagraph><subparagraph commented="no" id="H089DC48A297C4C7898EB6E6E98635830"><enum>(C)</enum><text>by adding at the end the following new clause:</text> <quoted-block display-inline="no-display-inline" id="HD3A5A82436B844479DBCE8651903BA33" style="OLC"> <clause commented="no" id="H24D9FBFB5703484EA598759772A215E4"><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="HDE5EF87D0FDB4448B94EA569A7F34B80"><enum>(2)</enum><text>by amending paragraph (3) to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H93B10590A1DB4AC78C3B6097697B42C6" style="OLC"> <paragraph commented="no" id="H03210A3BD81346FC9E8D21CE443D467D"><enum>(3)</enum><header>Updating information for database</header> <subparagraph commented="no" id="H6504E66E42464DE18A9CB680797DCBB4"><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="H5789BF311B0A4BFEB4C1E6BBE6E7CE23"><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="H1B828A334E0B4818828ECB6E4350F544"><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="HDC5DFFB0DDD44E068278DA205B344E57"><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="HEAD5D11D0F184F9BB4B6A51FB96C2559"><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="H05612247D70149D98C74FC2ABC794924"><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="H0B65E1647373412EBBBBD4E3121C30EF"><enum>(3)</enum><text>by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="HF3C7B853B70346ACA1EEB58E66C18832" style="OLC"> <paragraph commented="no" id="H32B3A82E538D4DA7A0004135F1D5B5F9"><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="H949E02FB376741648D963DCF98FB438D"><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 (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(k)</external-xref>), as amended, is further amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="HB5DB11DB699A44EEAB65A7A36B1AEF1E" style="OLC"> <paragraph commented="no" id="H140A6F4B897A446BA7C7FC3A183F983E"><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="H4A1CD9344F834C6097DBB5B915F118D7"><enum>408.</enum><header>Interagency Policy Committee</header> <subsection commented="no" id="HAE17D2007B5A4002B4D05AACC8487820"><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 and the Office of Management and Budget.</text> </subsection><subsection commented="no" id="H307C477F3F4847A492C39EC6DAFD5480"><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="H0293BBB5A5944477A127888153D25632"><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="H277377FBBF774951955ABFEEE95E5087"><enum>(1)</enum><text>The public and government databases described in section 9(k) (1) and (2) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(k)</external-xref> (1) and (2)).</text> </paragraph><paragraph commented="no" id="H751BDF2BD5CA4080A6A24FB691154743"><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="H6DA60E4762DE4DF1B1A414E84D851F4A"><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><paragraph id="H574A698A999B41B39E1F8AD61DF451AF"><enum>(4)</enum><text>Development and incorporation of a standard evaluation framework to enable systematic assessment of SBIR and STTR, including through improved tracking of awards and outcomes and development of performance measures for individual agency programs.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HDA245B83C2E74F29865B4D4C0BD507CF"><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="H2E64215001B648268EB2582E20D8BD20"><enum>(1)</enum><text>a report on its review and recommendations under subsections (c)(1) and (c)(4) not later than 1 year after the date of enactment of this Act;</text> </paragraph><paragraph commented="no" id="HB671B2503F964905AA05AB892E310270"><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="HC82D128769684ABEAB858F82975BA963"><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="HFD2FA74E61D84CF488F6845D36DFC403"><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 (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638</external-xref> note), enacted into law by reference under section 1(a)(9) of the Consolidated Appropriations Act, 2001 (<external-xref legal-doc="public-law" parsable-cite="pl/106/554">Public Law 106–554</external-xref>), is amended—</text> <paragraph commented="no" id="H4FAB46E3924E4C40A821059566F3E20F"><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="HD57DB55C698B441897DAA593014BDCDA"><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="HD8C4E7009D484FBA8D9F20BCE1FAB9C9"><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 (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638</external-xref>), as amended, is further amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H94A23C5B55994E9F9A67AFAF93E5292B" style="OLC"> <subsection id="HDBA616FDE78A45768DFDA4EFEEC00397"><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="H1750E47C5AA34F47987713B15CBBAA4B"><enum>411.</enum><header>Increased SBIR and STTR award levels</header> <subsection id="HDC6ED38F2D6C4DD59D29EB70D442C1D9"><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 (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(j)</external-xref>) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H9FF76A79F97F49D88B9BDDB0900557D9" style="OLC"> <subsection id="HF5601279EFB94FDE9B9AF12A96BB18E9"><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="H2FD316B3A8084542A40CD60F2F40E10E"><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 (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(p)(2)(B)(ix)</external-xref>) is amended—</text> <paragraph id="HD3C40EE5A5AF42CEB4927ED696D551D4"><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="HD1BB07744D1D43098C29CC09C9D56F6B"><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="H9CB265F82EC148388EF71151F7ACD309"><enum>(c)</enum><header>Limitation on certain awards</header><text>Section 9 of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638</external-xref>), as amended, is further amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H7FF1EC158FAA4589BEBCD35486B4DDBF" style="OLC"> <subsection id="H31E4311D9EA54FCF8C789C6A4174AC41"><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="H0DFB37833A3A4994AC818D4E2B1C8086"><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 (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638</external-xref>), as amended, is further amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HC5169B91425346A59B2EA4A7DE0F9226" style="OLC"> <subsection id="H37EFF87DD2B549C39AB55294FA6A9C3F"><enum>(kk)</enum><header>Requirements relating to additional second phase SBIR awards</header> <paragraph id="HEE8C626C42404CACBCC7697BD6B3DFBA"><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="H07224B0E561944998DE7DA0D6718D4DA"><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="H8B8B5D50CCC64C54A87D2909F392D729"><enum>413.</enum><header>First phase required</header><text display-inline="no-display-inline">Section 9 of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638</external-xref>), as amended, is further amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HEBD28231D2464F17ADC4C9DE8BD89C1C" style="OLC"> <subsection id="H5BC218C4DA234ADF9995E860C268F219"><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><section id="H3F741E2DF90E42A38F01BA8261B15F3E"><enum>414.</enum><header>Involvement of Chief Counsel for Advocacy</header><text display-inline="no-display-inline">Section 9 of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638</external-xref>), as amended, is further amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H8B831D01BAAE4AC2B438C488F1CA682C" style="OLC"> <subsection id="H5C6859B6594E4300A01148ACE1391A43"><enum>(mm)</enum><header>Involvement of Chief Counsel for Advocacy</header><text display-inline="yes-display-inline">The Chief Counsel for Advocacy, as described in section 201 of <external-xref legal-doc="public-law" parsable-cite="pl/94/305">Public Law 94–305</external-xref> (<external-xref legal-doc="usc" parsable-cite="usc/15/634a">15 U.S.C. 634a</external-xref>), and any individual reporting to the Chief Counsel for Advocacy, without regard to whether such individual was hired under section 204 of <external-xref legal-doc="public-law" parsable-cite="pl/94/305">Public Law 94–305</external-xref> (<external-xref legal-doc="usc" parsable-cite="usc/15/634d">15 U.S.C. 634d</external-xref>), may not provide to the Administrator, to any individual who reports directly or indirectly to the Administrator, or to any Federal agency any advice, guidance, oversight, or review with respect to the programs authorized under this section.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="HCE79A1D4286049298D5528862050A387"><enum>415.</enum><header>Minority institution program</header><text display-inline="no-display-inline">Section 9 of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638</external-xref>), as amended, is further amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H9DD0BC337FCA4200860FDCB3AA06DBFD" style="OLC"> <subsection id="H2AEF1FDC614A49D485B673A226F9974F"><enum>(nn)</enum><header>Minority institution program</header> <paragraph id="H94DC913787F040D6BE111E1D84872610"><enum>(1)</enum><header>Establishment</header><text display-inline="yes-display-inline">From amounts made available to carry out this subsection, the Administrator shall establish and carry out a program to make grants to minority institutions that partner with nonprofit organizations that have experience developing relationships between industry, minority institutions, and other entities, for the purpose of increasing the number of SBIR and STTR program applications by minority-owned small businesses.</text> </paragraph><paragraph id="H4034525923E84A5EB9D4A06B26DB18D0"><enum>(2)</enum><header>Application</header><text display-inline="yes-display-inline">To be eligible to receive a grant under paragraph (1), a minority institution shall submit an application to the Administrator at such time, in such manner, and containing such information and assurances as the Administrator may require.</text> </paragraph><paragraph id="H4E0500F6B5544087BC1168C8153DBEC6"><enum>(3)</enum><header>Matching requirement</header><text display-inline="yes-display-inline">As a condition of a grant under paragraph (1), the Administrator shall require that a minority institution provide a matching amount from a source other than the Federal Government that is equal to the amount of the grant.</text> </paragraph><paragraph id="H8C01CC1009BD44D785CA4C59B846AF40"><enum>(4)</enum><header>Minority institution defined</header><text display-inline="yes-display-inline">In this subsection, the term <quote>minority institution</quote> has the meaning given that term in section 365(3) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1067k">20 U.S.C. 1067k(3)</external-xref>).</text> </paragraph><paragraph id="HA708A40930964C8BA7AF176540CD1DB3"><enum>(5)</enum><header>Authorization of appropriations</header><text display-inline="yes-display-inline">There is authorized to be appropriated to carry out this subsection $4,000,000 for each of fiscal years 2010 and 2011.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="HE9FD257DD3484B32AD35FC67D6F77F19"><enum>416.</enum><header>Areas that have lost a major source of employment</header><text display-inline="no-display-inline">Section 9 of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638</external-xref>), as amended, is further amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HF121F427046144D7B4F50B4922FE2881" style="OLC"> <subsection id="H58D5E1DDEEFE469582D5628B6EAB3838"><enum>(oo)</enum><header>Areas that have lost a major source of employment</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 geographic areas determined by the Administrator to have lost a major source of employment.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="HD83FD8610B684400A2F6142AF6D71FB8"><enum>417.</enum><header>Enhancing veteran participation in SBIR</header><text display-inline="no-display-inline">Section 9 of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638</external-xref>), as amended, is further amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HB6A53778C139461296205DE53424DCC1" style="OLC"> <subsection id="H2C582F1C860B426AA7BD0652A964602C"><enum>(pp)</enum><header>Enhancing veteran participation in SBIR</header><text display-inline="yes-display-inline">Notwithstanding any other provision of this section, a small business concern owned and controlled by veterans may—</text> <paragraph id="HDE6F20941CE34493A1604742962CFB49"><enum>(1)</enum><text>receive an award in the amount of $300,000 in the first phase of an SBIR program and in the amount of $2,250,000 in the second phase of an SBIR program, with such amounts able to be exceeded if the Federal agency making the award notifies the Administrator of such excess; and</text> </paragraph><paragraph id="H5A5935F2EC5D4D049E73A4337A3DEAC5"><enum>(2)</enum><text>receive an award for the second phase of an SBIR program with respect to a project without having received a first phase award with respect to such project.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="HD8879F524ADD492987B605C5E8B0DD0F"><enum>418.</enum><header>Veteran preference</header><text display-inline="no-display-inline">Section 9 of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638</external-xref>), as amended, is further amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HCA1827D4A3B640C48FD8CDFFC57093C5" style="OLC"> <subsection id="H7AA5E01AD24A40C4ACBB24EBC91EC94B"><enum>(qq)</enum><header>Veteran 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 that are small business concerns owned and controlled by veterans.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H45DE14216F304175B6F3C9934279B5B0"><enum>419.</enum><header>Medical technology</header><text display-inline="no-display-inline">Section 9(g)(3) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/638">15 U.S.C. 638(g)(3)</external-xref>), as amended, is further amended in the matter preceding subparagraph (A) by inserting after <quote>broad research topics</quote> the following: <quote>and research topics relating to medical technology</quote>.</text> </section><enum>V</enum><header>Improving water use and transmission technology</header> <section id="HD63823161481468BA79B182789CF82C8"><enum>501.</enum><header>Improving water use and transmission technology</header><text display-inline="no-display-inline">Not later than 1 year after the date of the enactment of this Act, Federal agencies with an SBIR program, as appropriate, shall jointly develop and issue a small business innovation research solicitation that requests research proposals with respect to improving the efficiency of water delivery systems and usage patterns in the United States and its territories through the use of technology.</text> </section><enum>VI</enum><header>GAO study with respect to venture capital operating company involvement</header> <section id="H9838163D05A146AEB4A9F9DCBBAD5CD5"><enum>601.</enum><header>GAO study with respect to venture capital operating company involvement</header><text display-inline="no-display-inline">The Comptroller General of the United States shall carry out a study of the impact of requirements relating to venture capital operating company involvement under section 9(aa) of the Small Business Act, as added by section 102 of this Act. Not later than 1 year after the date of the enactment of this Act, the Comptroller General shall submit to Congress a report on the results of the study.</text> </section> Passed the House of Representatives July 8, 2009. Lorraine C. Miller, Clerk.