[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2965 Reported in House (RH)]
Union Calendar No. 102
111th CONGRESS
1st Session
H. R. 2965
[Report No. 111-190, Parts I and II]
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.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 19, 2009
Mr. Altmire (for himself, Mr. Wu, Mr. Graves, Ms. Velazquez, Mr.
Schock, Mr. Nye, Mrs. Halvorson, and Mr. Bright) introduced the
following bill; which was referred to the Committee on Small Business,
and in addition to the Committee on Science and Technology, for a
period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
June 26, 2009
Reported from the Committee on Small Business with an amendment
[Strike out all after the enacting clause and insert the part printed
in italic]
June 26, 2009
Referral to the Committee on Science and Technology extended for a
period ending not later than July 7, 2009
July 7, 2009
Additional sponsors: Mr. Lujan and Mrs. Biggert
July 7, 2009
Reported from the Committee on Science and Technology with an amendment
[Strike out all after the enacting clause and insert the part printed
in boldface roman]
[For text of introduced bill, see copy of bill as introduced on June
19, 2009]
_______________________________________________________________________
A BILL
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 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 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.
Sec. 414. Involvement of Chief Counsel for Advocacy.
TITLE I--PROGRAM EXTENSION AND VENTURE CAPITAL OPERATING COMPANY
INVOLVEMENT
SEC. 101. EXTENSION OF TERMINATION DATES.
(a) SBIR.--Section 9(m) of the Small Business Act (15 U.S.C.
638(m)) is amended by striking ``2008'' and inserting ``2011''.
(b) STTR.--Section 9(n)(1)(A) of the Small Business Act (15 U.S.C.
638(n)(1)(A)) is amended by striking ``2009'' and inserting ``2011''.
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.
Section 9 of the Small Business Act (15 U.S.C. 638) is amended by
adding at the end the following:
``(aa) Venture Capital Operating Companies.--Effective only for the
SBIR and STTR programs the following shall apply:
``(1) A business concern that has more than 500 employees
shall not qualify as a small business concern.
``(2) In determining whether a small business concern is
independently owned and operated under section 3(a)(1) or meets
the small business size standards instituted under section
3(a)(2), the Administrator shall not consider a business
concern to be affiliated with a venture capital operating
company (or with any other business that the venture capital
operating company has financed) if--
``(A) the venture capital operating company does
not own 50 percent or more of the business concern; and
``(B) employees of the venture capital operating
company do not constitute a majority of the board of
directors of the business concern.
``(3) A business concern shall be deemed to be
`independently owned and operated' if--
``(A) it is owned in majority part by one or more
natural persons or venture capital operating companies;
``(B) there is no single venture capital operating
company that owns 50 percent or more of the business
concern; and
``(C) there is no single venture capital operating
company the employees of which constitute a majority of
the board of directors of the business concern.
``(4) If a venture capital operating company controlled by
a business with more than 500 employees (in this paragraph
referred to as a `VCOC under large business control') has an
ownership interest in a small business concern that is owned in
majority part by venture capital operating companies, the small
business concern is eligible to receive an award under the SBIR
or STTR program only if--
``(A) not more than two VCOCs under large business
control have an ownership interest in the small
business concern; and
``(B) the VCOCs under large business control do not
collectively own more than 20 percent of the small
business concern.
``(5) The term `venture capital operating company' means a
business concern--
``(A) that--
``(i) is a Venture Capital Operating
Company, as that term is defined in regulations
promulgated by the Secretary of Labor; or
``(ii) is an entity that--
``(I) is registered under the
Investment Company Act of 1940 (15
U.S.C. 80a-51 et seq.); or
``(II) is an investment company, as
defined in section 3(c)(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
``(B) that is itself organized or incorporated and
domiciled in the United States, or is controlled by a
business concern that is incorporated and domiciled in
the United States.''.
TITLE II--COMMERCIALIZATION ACTIVITIES AND RESEARCH TOPICS DESERVING
SPECIAL CONSIDERATION
SEC. 201. FOCUS ON COMMERCIALIZATION.
Section 9(a) of the Small Business Act (15 U.S.C. 638(a)) is
amended by adding at the end the following: ``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.''.
SEC. 202. INCLUSION OF ENERGY-RELATED RESEARCH TOPICS AND RARE DISEASE-
RELATED RESEARCH TOPICS AS DESERVING ``SPECIAL
CONSIDERATION'' AS SBIR RESEARCH TOPICS.
Section 9(g)(3) of the Small Business Act (15 U.S.C. 638(g)(3)) is
amended--
(1) in the matter preceding subparagraph (A) by inserting
after ``critical technologies'' the following: ``or pressing
research priorities'';
(2) in subparagraph (A) by striking ``or'' at the end; and
(3) by adding at the end the following:
``(C) the National Academy of Sciences, in the
final report issued by the `America's Energy Future:
Technology Opportunities, Risks, and Tradeoffs'
project, and in subsequent reports issued by the
National Academy of Sciences on sustainability, energy,
and alternative fuels;
``(D) 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
``(E) 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;''.
SEC. 203. NANOTECHNOLOGY-RELATED RESEARCH TOPICS.
(a) SBIR.--Section 9(g)(3) of the Small Business Act (15 U.S.C.
638(g)(3)), as amended, is further amended--
(1) in subparagraph (D) by striking ``or'' at the end;
(2) in subparagraph (E) by adding ``or'' at the end; and
(3) by adding at the end the following:
``(F) 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;''.
(b) STTR.--Section 9(o)(3) of the Small Business Act (15 U.S.C.
638(o)(3)) is amended--
(1) in subparagraph (A) by striking ``or'' at the end;
(2) in subparagraph (B) by adding ``or'' at the end; and
(3) by adding at the end the following:
``(C) 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;''.
SEC. 204. CLARIFYING THE DEFINITION OF ``PHASE THREE''.
Section 9(e) of the Small Business Act (15 U.S.C. 638(e)) is
amended--
(1) in paragraph (4)(C) in the matter preceding clause (i)
by inserting after ``a third phase'' the following: ``, 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 `Phase III')'';
(2) in paragraph (8) by striking ``and'' at the end;
(3) in paragraph (9) by striking the period at the end and
inserting ``; and''; and
(4) by adding at the end the following:
``(10) the term `commercialization' 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.''.
SEC. 205. AGENCY RESEARCH GOALS.
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:
``(h) Agency Research Goals.--
``(1) In general.--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.
``(2) Specific goals.--The goals required by paragraph (1)
shall include specific goals for each of the following:
``(A) The percentage of SBIR projects that receive
funding for the third phase (as defined in subsection
(e)(4)(C)).
``(B) The percentage of SBIR projects that are
successfully integrated into a program of record.
``(C) The amount of Federal dollars received by
SBIR projects through Federal contracts, not including
dollars received through the SBIR program.
``(3) Submission to committees.--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--
``(A) not later than 60 days after the beginning of
the fiscal year, the goals; and
``(B) 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.''.
SEC. 206. COMMERCIALIZATION PROGRAMS.
Section 9 of the Small Business Act (15 U.S.C. 638) as amended, is
further amended, by adding at the end the following:
``(bb) Commercialization Programs.--
``(1) In general.--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.
``(2) Funding for commercialization programs.--
``(A) In general.--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.
``(B) Petitions.--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.
``(C) Authorization of appropriations.--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.
``(3) Funding limitation.--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--
``(A) shall not be subject to the limitations on
the use of funds in subsection (f)(2); and
``(B) shall not be used for the purpose of funding
costs associated with salaries and expenses of
employees of the Federal Government.''.
TITLE III--RURAL DEVELOPMENT AND OUTREACH
SEC. 301. OUTREACH AND SUPPORT ACTIVITIES.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended, is
further amended by inserting after subsection (r) the following:
``(s) Outreach and Support Activities.--
``(1) In general.--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:
``(A) To conduct outreach efforts to increase
participation in the programs under this section.
``(B) To provide application support and
entrepreneurial and business skills support to
prospective participants in the programs under this
section.
``(2) Authorization of appropriations.--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.
``(3) Amount of assistance.--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--
``(A) shall be equal to the total amount of
matching funds from non-Federal sources provided by the
organization; and
``(B) shall not exceed $250,000.
``(4) Direction.--An organization receiving funds under
paragraph (1) shall, in using those funds, direct its
activities at one or both of the following:
``(A) Small business concerns located in geographic
areas that are underrepresented in the programs under
this section.
``(B) 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.
``(5) Advisory board.--
``(A) Establishment.--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.
``(B) Non-applicability of faca.--The Federal
Advisory Committee Act (5 U.S.C. App.) shall not apply
to the advisory board.
``(C) Members.--The members of the advisory board
shall include the following:
``(i) The Administrator (or the
Administrator's designee).
``(ii) 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).
``(iii) Representatives of small business
concerns that are current or former recipients
of SBIR awards, or representatives of
organizations of such concerns.
``(iv) Representatives of service providers
of SBIR outreach and assistance, or
representatives of organizations of such
service providers.
``(D) Duties.--The advisory board shall have the
following duties:
``(i) 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.
``(ii) 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--
``(I) podcasting or webcasting for
conferences, training workshops, and
other events;
``(II) shared online resources to
match prospective applicants with the
network of paragraph (1) recipients;
and
``(III) venture capital conferences
tied to technologies and sectors that
cross agencies.
``(iii) To review and recommend revisions
to activities under paragraph (1).
``(iv) 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.
``(6) Selection criteria.--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--
``(A) 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);
``(B) 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;
``(C) criteria designed to give preference to
applicants who propose to measure the effectiveness of
the proposed activities; and
``(D) criteria designed to give preference to
applicants who include a Small Business Development
Center program that is accredited for its technology
services.
``(7) Peer review.--In awarding grants under this
subsection, the Administrator shall use a peer review process.
Reviewers shall include--
``(A) SBIR program managers for agencies required
by this section to conduct SBIR programs; and
``(B) private individuals and organizations that
are knowledgeable about SBIR, the innovation process,
technology commercialization, and State and regional
technology-based economic development programs.
``(8) Per-state limitations.--
``(A) In general.--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.
``(B) Limitation.--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).
``(9) Specific requirements for awards.--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.''.
SEC. 302. RURAL PREFERENCE.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended, is
further amended by adding at the end the following:
``(cc) Rural Preference.--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.''.
SEC. 303. OBTAINING SBIR APPLICANT'S CONSENT TO RELEASE CONTACT
INFORMATION TO ECONOMIC DEVELOPMENT ORGANIZATIONS.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended, is
further amended by adding at the end the following:
``(dd) Consent To Release Contact Information to Organizations.--
``(1) Enabling concern to give consent.--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--
``(A) identify the concern to appropriate local and
State-level economic development organizations as an
SBIR applicant; and
``(B) release the concern's contact information to
such organizations.
``(2) Rules.--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).''.
SEC. 304. INCREASED PARTNERSHIPS BETWEEN SBIR AWARDEES AND PRIME
CONTRACTORS, VENTURE CAPITAL INVESTMENT COMPANIES, AND
LARGER BUSINESSES.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended, is
further amended by adding at the end the following:
``(ee) Increased Partnerships.--
``(1) In general.--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.
``(2) Definition.--In this subsection, the term `business
incubator' 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.''.
TITLE IV--SBIR AND STTR ENHANCEMENT
SEC. 401. INCREASED NUMBER OF RESEARCH TOPIC SOLICITATIONS ANNUALLY AND
SHORTENED PERIOD FOR FINAL DECISIONS ON APPLICATIONS.
(a) Increased Number of Research Topic Solicitations Annually.--
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: ``,
but not less often than twice per year''.
(b) Shortened Period for Final Decisions on Applications.--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: ``, 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''.
SEC. 402. AGENCIES SHOULD FUND VITAL R&D PROJECTS WITH THE POTENTIAL
FOR COMMERCIALIZATION.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended, is
further amended by adding at the end the following:
``(ff) Multiple First Phase SBIR Awards Report.--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.''.
SEC. 403. FEDERAL AGENCY ENGAGEMENT WITH SBIR AWARDEES THAT HAVE BEEN
AWARDED MULTIPLE PHASE ONE AWARDS BUT HAVE NOT BEEN
AWARDED PHASE TWO AWARDS.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended, is
further amended by adding at the end the following:
``(gg) Requirements Relating to Federal Agency Engagement With
Certain First Phase SBIR Awardees.--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.''.
SEC. 404. FUNDING FOR ADMINISTRATIVE, OVERSIGHT, AND CONTRACT
PROCESSING COSTS.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended, is
further amended by adding at the end the following:
``(hh) Assistance for Administrative, Oversight, and Contract
Processing Costs.--
``(1) In general.--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.
``(2) Petitions.--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.
``(3) Limit on transfer.--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.
``(4) Authorization of appropriations.--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.''.
SEC. 405. COMPTROLLER GENERAL AUDIT OF HOW FEDERAL AGENCIES CALCULATE
EXTRAMURAL RESEARCH BUDGETS.
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.
SEC. 406. AGENCY DATABASES TO SUPPORT PROGRAM EVALUATION.
Section 9(k) of the Small Business Act (15 U.S.C. 638(k)) is
amended--
(1) in paragraph (2)(A)--
(A) by striking ``and'' at the end of clause (ii);
(B) by inserting ``and'' at the end of clause
(iii); and
(C) by adding at the end the following new clause:
``(iv) information on the ownership
structure of award recipients, both at the time
of receipt of the award and upon completion of
the award period;'';
(2) by amending paragraph (3) to read as follows:
``(3) Updating information for database.--
``(A) In general.--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.
``(B) Apportionment.--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.
``(C) Annual updates upon termination.--A small
business concern receiving an award under this section
shall--
``(i) 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;
``(ii) 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
``(iii) 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.''; and
(3) by adding at the end the following new paragraph:
``(6) Agency program evaluation databases.--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.''.
SEC. 407. AGENCY DATABASES TO SUPPORT TECHNOLOGY UTILIZATION.
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:
``(7) Agency databases to support technology utilization.--
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.''.
SEC. 408. INTERAGENCY POLICY COMMITTEE.
(a) Establishment.--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.
(b) Cochairs.--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.
(c) Duties.--The Interagency SBIR/STTR Policy Committee shall
review the following issues and make policy recommendations on ways to
improve program effectiveness and efficiency:
(1) 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)).
(2) Federal agency flexibility in establishing Phase I and
II award sizes, and appropriate criteria to exercise such
flexibility.
(3) 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.
(4) 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.
(d) Reports.--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--
(1) 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;
(2) 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
(3) a report on its review and recommendations under
subsection (c)(3) not later than 2 years after the date of
enactment of this Act.
SEC. 409. NATIONAL RESEARCH COUNCIL SBIR STUDY.
Section 108(d) of the Small Business Reauthorization Act of 2000
(15 U.S.C. 638 note), enacted into law by reference under section
1(a)(9) of the Consolidated Appropriations Act, 2001 (Public Law 106-
554), is amended--
(1) by striking ``of the Senate'' and all that follows
through ``not later than 3'' and inserting ``of the Senate, not
later than 3''; and
(2) by striking ``; and'' and all that follows through
``update of such report''.
SEC. 410. EXPRESS AUTHORITY TO ``FAST-TRACK'' PHASE TWO AWARDS FOR
PROMISING PHASE ONE RESEARCH.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended, is
further amended by adding at the end the following:
``(ii) Authority To `Fast-track' Phase Two Awards for Promising
Phase One Research.--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 `fast-track' 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 `fast-track' programs.''.
SEC. 411. INCREASED SBIR AND STTR AWARD LEVELS.
(a) SBIR Award Level and Annual Adjustments.--Section 9(j) of the
Small Business Act (15 U.S.C. 638(j)) is amended by adding at the end
the following:
``(4) Further Additional Modifications.--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.''.
(b) STTR Award Level and Annual Adjustments.--Section
9(p)(2)(B)(ix) of the Small Business Act (15 U.S.C. 638(p)(2)(B)(ix))
is amended--
(1) by striking ``$100,000'' and ``$750,000'' and inserting
``$250,000'' and ``$2,000,000'', respectively; and
(2) by striking ``greater or lesser amounts'' and inserting
``with a mandatory annual adjustment of such amounts to reflect
economic adjustments and programmatic considerations, and with
lesser amounts''.
(c) Limitation on Certain Awards.--Section 9 of the Small Business
Act (15 U.S.C. 638), as amended, is further amended by adding at the
end the following:
``(jj) Limitation on Phase I and II Awards.--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).''.
SEC. 412. EXPRESS AUTHORITY FOR AN AGENCY TO AWARD SEQUENTIAL PHASE TWO
AWARDS FOR SBIR-FUNDED PROJECTS.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended, is
further amended by adding at the end the following:
``(kk) Requirements Relating to Additional Second Phase SBIR
Awards.--
``(1) In general.--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.
``(2) Technical or weapons systems.--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.''.
SEC. 413. FIRST PHASE REQUIRED.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended, is
further amended by adding at the end the following:
``(ll) First Phase Required.--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.''.
SEC. 414. INVOLVEMENT OF CHIEF COUNSEL FOR ADVOCACY.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended, is
further amended by adding at the end the following:
``(mm) Involvement of Chief Counsel for Advocacy.--The Chief
Counsel for Advocacy, as described in section 201 of Public Law 94-305
(15 U.S.C. 634a), and any individual reporting to the Chief Counsel for
Advocacy, without regard to whether such individual was hired under
section 204 of Public Law 94-305 (15 U.S.C. 634d), 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.''.
SECTION 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 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.
TITLE I--PROGRAM EXTENSION AND VENTURE CAPITAL OPERATING COMPANY
INVOLVEMENT
SEC. 101. EXTENSION OF TERMINATION DATES.
(a) SBIR.--Section 9(m) of the Small Business Act (15 U.S.C.
638(m)) is amended by striking ``2008'' and inserting ``2011''.
(b) STTR.--Section 9(n)(1)(A) of the Small Business Act (15 U.S.C.
638(n)(1)(A)) is amended by striking ``2009'' and inserting ``2011''.
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.
Section 9 of the Small Business Act (15 U.S.C. 638) is amended by
adding at the end the following:
``(aa) Venture Capital Operating Companies.--Effective only for the
SBIR and STTR programs the following shall apply:
``(1) A business concern that has more than 500 employees
shall not qualify as a small business concern.
``(2) In determining whether a small business concern is
independently owned and operated under section 3(a)(1) or meets
the small business size standards instituted under section
3(a)(2), the Administrator shall not consider a business
concern to be affiliated with a venture capital operating
company (or with any other business that the venture capital
operating company has financed) if--
``(A) the venture capital operating company does
not own 50 percent or more of the business concern; and
``(B) employees of the venture capital operating
company do not constitute a majority of the board of
directors of the business concern.
``(3) A business concern shall be deemed to be
`independently owned and operated' if--
``(A) it is owned in majority part by one or more
natural persons or venture capital operating companies;
``(B) there is no single venture capital operating
company that owns 50 percent or more of the business
concern; and
``(C) there is no single venture capital operating
company the employees of which constitute a majority of
the board of directors of the business concern.
``(4) If a venture capital operating company controlled by
a business with more than 500 employees (in this paragraph
referred to as a `VCOC under large business control') has an
ownership interest in a small business concern that is owned in
majority part by venture capital operating companies, the small
business concern is eligible to receive an award under the SBIR
or STTR program only if--
``(A) not more than two VCOCs under large business
control have an ownership interest in the small
business concern; and
``(B) the VCOCs under large business control do not
collectively own more than 20 percent of the small
business concern.
``(5) The term `venture capital operating company' means a
business concern--
``(A) that--
``(i) is a Venture Capital Operating
Company, as that term is defined in regulations
promulgated by the Secretary of Labor; or
``(ii) is an entity that--
``(I) is registered under the
Investment Company Act of 1940 (15
U.S.C. 80a-51 et seq.); or
``(II) is an investment company, as
defined in section 3(c)(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
``(B) that is itself organized or incorporated and
domiciled in the United States, or is controlled by a
business concern that is incorporated and domiciled in
the United States.''.
TITLE II--COMMERCIALIZATION ACTIVITIES AND RESEARCH TOPICS DESERVING
SPECIAL CONSIDERATION
SEC. 201. FOCUS ON COMMERCIALIZATION.
Section 9(a) of the Small Business Act (15 U.S.C. 638(a)) is
amended by adding at the end the following: ``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.''.
SEC. 202. INCLUSION OF ENERGY-RELATED RESEARCH TOPICS AND RARE DISEASE-
RELATED RESEARCH TOPICS AS DESERVING ``SPECIAL
CONSIDERATION'' AS SBIR RESEARCH TOPICS.
Section 9(g)(3) of the Small Business Act (15 U.S.C. 638(g)(3)) is
amended--
(1) in the matter preceding subparagraph (A) by inserting
after ``critical technologies'' the following: ``or pressing
research priorities'';
(2) in subparagraph (A) by striking ``or'' at the end; and
(3) by adding at the end the following:
``(C) the National Academy of Sciences, in the
final report issued by the `America's Energy Future:
Technology Opportunities, Risks, and Tradeoffs'
project, and in subsequent reports issued by the
National Academy of Sciences on sustainability, energy,
and alternative fuels;
``(D) 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
``(E) 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;''.
SEC. 203. NANOTECHNOLOGY-RELATED RESEARCH TOPICS.
(a) SBIR.--Section 9(g)(3) of the Small Business Act (15 U.S.C.
638(g)(3)), as amended, is further amended--
(1) in subparagraph (D) by striking ``or'' at the end;
(2) in subparagraph (E) by adding ``or'' at the end; and
(3) by adding at the end the following:
``(F) 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;''.
(b) STTR.--Section 9(o)(3) of the Small Business Act (15 U.S.C.
638(o)(3)) is amended--
(1) in subparagraph (A) by striking ``or'' at the end;
(2) in subparagraph (B) by adding ``or'' at the end; and
(3) by adding at the end the following:
``(C) 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;''.
SEC. 204. CLARIFYING THE DEFINITION OF ``PHASE THREE''.
Section 9(e) of the Small Business Act (15 U.S.C. 638(e)) is
amended--
(1) in paragraph (4)(C) in the matter preceding clause (i)
by inserting after ``a third phase'' the following: ``, 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 `Phase III')'';
(2) in paragraph (8) by striking ``and'' at the end;
(3) in paragraph (9) by striking the period at the end and
inserting ``; and''; and
(4) by adding at the end the following:
``(10) the term `commercialization' 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.''.
SEC. 205. AGENCY RESEARCH GOALS.
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:
``(h) Agency Research Goals.--
``(1) In general.--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.
``(2) Specific goals.--The goals required by paragraph (1)
shall include specific goals for each of the following:
``(A) The percentage of SBIR projects that receive
funding for the third phase (as defined in subsection
(e)(4)(C)).
``(B) The percentage of SBIR projects that are
successfully integrated into a program of record.
``(C) The amount of Federal dollars received by
SBIR projects through Federal contracts, not including
dollars received through the SBIR program.
``(3) Submission to committees.--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--
``(A) not later than 60 days after the beginning of
the fiscal year, the goals; and
``(B) 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.''.
SEC. 206. COMMERCIALIZATION PROGRAMS.
Section 9 of the Small Business Act (15 U.S.C. 638) as amended, is
further amended, by adding at the end the following:
``(bb) Commercialization Programs.--
``(1) In general.--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.
``(2) Funding for commercialization programs.--
``(A) In general.--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.
``(B) Petitions.--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.
``(C) Authorization of appropriations.--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.
``(3) Funding limitation.--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--
``(A) shall not be subject to the limitations on
the use of funds in subsection (f)(2); and
``(B) shall not be used for the purpose of funding
costs associated with salaries and expenses of
employees of the Federal Government.''.
TITLE III--RURAL DEVELOPMENT AND OUTREACH
SEC. 301. OUTREACH AND SUPPORT ACTIVITIES.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended, is
further amended by inserting after subsection (r) the following:
``(s) Outreach and Support Activities.--
``(1) In general.--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:
``(A) To conduct outreach efforts to increase
participation in the programs under this section.
``(B) To provide application support and
entrepreneurial and business skills support to
prospective participants in the programs under this
section.
``(2) Authorization of appropriations.--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.
``(3) Amount of assistance.--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--
``(A) shall be equal to the total amount of
matching funds from non-Federal sources provided by the
organization; and
``(B) shall not exceed $250,000.
``(4) Direction.--An organization receiving funds under
paragraph (1) shall, in using those funds, direct its
activities at one or both of the following:
``(A) Small business concerns located in geographic
areas that are underrepresented in the programs under
this section.
``(B) 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.
``(5) Advisory board.--
``(A) Establishment.--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.
``(B) Non-applicability of faca.--The Federal
Advisory Committee Act (5 U.S.C. App.) shall not apply
to the advisory board.
``(C) Members.--The members of the advisory board
shall include the following:
``(i) The Administrator (or the
Administrator's designee).
``(ii) 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).
``(iii) Representatives of small business
concerns that are current or former recipients
of SBIR awards, or representatives of
organizations of such concerns.
``(iv) Representatives of service providers
of SBIR outreach and assistance, or
representatives of organizations of such
service providers.
``(D) Duties.--The advisory board shall have the
following duties:
``(i) 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.
``(ii) 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--
``(I) podcasting or webcasting for
conferences, training workshops, and
other events;
``(II) shared online resources to
match prospective applicants with the
network of paragraph (1) recipients;
and
``(III) venture capital conferences
tied to technologies and sectors that
cross agencies.
``(iii) To review and recommend revisions
to activities under paragraph (1).
``(iv) 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.
``(6) Selection criteria.--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--
``(A) 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);
``(B) 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;
``(C) criteria designed to give preference to
applicants who propose to measure the effectiveness of
the proposed activities; and
``(D) criteria designed to give preference to
applicants who include a Small Business Development
Center program that is accredited for its technology
services.
``(7) Peer review.--In awarding grants under this
subsection, the Administrator shall use a peer review process.
Reviewers shall include--
``(A) SBIR program managers for agencies required
by this section to conduct SBIR programs; and
``(B) private individuals and organizations that
are knowledgeable about SBIR, the innovation process,
technology commercialization, and State and regional
technology-based economic development programs.
``(8) Per-state limitations.--
``(A) In general.--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.
``(B) Limitation.--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).
``(9) Specific requirements for awards.--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.''.
SEC. 302. RURAL PREFERENCE.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended, is
further amended by adding at the end the following:
``(cc) Rural Preference.--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.''.
SEC. 303. OBTAINING SBIR APPLICANT'S CONSENT TO RELEASE CONTACT
INFORMATION TO ECONOMIC DEVELOPMENT ORGANIZATIONS.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended, is
further amended by adding at the end the following:
``(dd) Consent To Release Contact Information to Organizations.--
``(1) Enabling concern to give consent.--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--
``(A) identify the concern to appropriate local and
State-level economic development organizations as an
SBIR applicant; and
``(B) release the concern's contact information to
such organizations.
``(2) Rules.--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).''.
SEC. 304. INCREASED PARTNERSHIPS BETWEEN SBIR AWARDEES AND PRIME
CONTRACTORS, VENTURE CAPITAL INVESTMENT COMPANIES, AND
LARGER BUSINESSES.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended, is
further amended by adding at the end the following:
``(ee) Increased Partnerships.--
``(1) In general.--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.
``(2) Definition.--In this subsection, the term `business
incubator' 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.''.
TITLE IV--SBIR AND STTR ENHANCEMENT
SEC. 401. INCREASED NUMBER OF RESEARCH TOPIC SOLICITATIONS ANNUALLY AND
SHORTENED PERIOD FOR FINAL DECISIONS ON APPLICATIONS.
(a) Increased Number of Research Topic Solicitations Annually.--
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: ``,
but not less often than twice per year''.
(b) Shortened Period for Final Decisions on Applications.--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: ``, 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''.
SEC. 402. AGENCIES SHOULD FUND VITAL R&D PROJECTS WITH THE POTENTIAL
FOR COMMERCIALIZATION.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended, is
further amended by adding at the end the following:
``(ff) Multiple First Phase SBIR Awards Report.--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.''.
SEC. 403. FEDERAL AGENCY ENGAGEMENT WITH SBIR AWARDEES THAT HAVE BEEN
AWARDED MULTIPLE PHASE ONE AWARDS BUT HAVE NOT BEEN
AWARDED PHASE TWO AWARDS.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended, is
further amended by adding at the end the following:
``(gg) Requirements Relating to Federal Agency Engagement With
Certain First Phase SBIR Awardees.--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.''.
SEC. 404. FUNDING FOR ADMINISTRATIVE, OVERSIGHT, AND CONTRACT
PROCESSING COSTS.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended, is
further amended by adding at the end the following:
``(hh) Assistance for Administrative, Oversight, and Contract
Processing Costs.--
``(1) In general.--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.
``(2) Petitions.--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.
``(3) Limit on transfer.--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.
``(4) Authorization of appropriations.--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.''.
SEC. 405. COMPTROLLER GENERAL AUDIT OF HOW FEDERAL AGENCIES CALCULATE
EXTRAMURAL RESEARCH BUDGETS.
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.
SEC. 406. AGENCY DATABASES TO SUPPORT PROGRAM EVALUATION.
Section 9(k) of the Small Business Act (15 U.S.C. 638(k)) is
amended--
(1) in paragraph (2)(A)--
(A) by striking ``and'' at the end of clause (ii);
(B) by inserting ``and'' at the end of clause
(iii); and
(C) by adding at the end the following new clause:
``(iv) information on the ownership
structure of award recipients, both at the time
of receipt of the award and upon completion of
the award period;'';
(2) by amending paragraph (3) to read as follows:
``(3) Updating information for database.--
``(A) In general.--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.
``(B) Apportionment.--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.
``(C) Annual updates upon termination.--A small
business concern receiving an award under this section
shall--
``(i) 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;
``(ii) 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
``(iii) 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.''; and
(3) by adding at the end the following new paragraph:
``(6) Agency program evaluation databases.--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.''.
SEC. 407. AGENCY DATABASES TO SUPPORT TECHNOLOGY UTILIZATION.
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:
``(7) Agency databases to support technology utilization.--
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.''.
SEC. 408. INTERAGENCY POLICY COMMITTEE.
(a) Establishment.--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.
(b) Cochairs.--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.
(c) Duties.--The Interagency SBIR/STTR Policy Committee shall
review the following issues and make policy recommendations on ways to
improve program effectiveness and efficiency:
(1) 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)).
(2) Federal agency flexibility in establishing Phase I and
II award sizes, and appropriate criteria to exercise such
flexibility.
(3) 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.
(4) 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.
(d) Reports.--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--
(1) 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;
(2) 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
(3) a report on its review and recommendations under
subsection (c)(3) not later than 2 years after the date of
enactment of this Act.
SEC. 409. NATIONAL RESEARCH COUNCIL SBIR STUDY.
Section 108(d) of the Small Business Reauthorization Act of 2000
(15 U.S.C. 638 note), enacted into law by reference under section
1(a)(9) of the Consolidated Appropriations Act, 2001 (Public Law 106-
554), is amended--
(1) by striking ``of the Senate'' and all that follows
through ``not later than 3'' and inserting ``of the Senate, not
later than 3''; and
(2) by striking ``; and'' and all that follows through
``update of such report''.
SEC. 410. EXPRESS AUTHORITY TO ``FAST-TRACK'' PHASE TWO AWARDS FOR
PROMISING PHASE ONE RESEARCH.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended, is
further amended by adding at the end the following:
``(ii) Authority To `Fast-track' Phase Two Awards for Promising
Phase One Research.--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 `fast-track' 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 `fast-track' programs.''.
SEC. 411. INCREASED SBIR AND STTR AWARD LEVELS.
(a) SBIR Award Level and Annual Adjustments.--Section 9(j) of the
Small Business Act (15 U.S.C. 638(j)) is amended by adding at the end
the following:
``(4) Further Additional Modifications.--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.''.
(b) STTR Award Level and Annual Adjustments.--Section
9(p)(2)(B)(ix) of the Small Business Act (15 U.S.C. 638(p)(2)(B)(ix))
is amended--
(1) by striking ``$100,000'' and ``$750,000'' and inserting
``$250,000'' and ``$2,000,000'', respectively; and
(2) by striking ``greater or lesser amounts'' and inserting
``with a mandatory annual adjustment of such amounts to reflect
economic adjustments and programmatic considerations, and with
lesser amounts''.
(c) Limitation on Certain Awards.--Section 9 of the Small Business
Act (15 U.S.C. 638), as amended, is further amended by adding at the
end the following:
``(jj) Limitation on Phase I and II Awards.--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).''.
SEC. 412. EXPRESS AUTHORITY FOR AN AGENCY TO AWARD SEQUENTIAL PHASE TWO
AWARDS FOR SBIR-FUNDED PROJECTS.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended, is
further amended by adding at the end the following:
``(kk) Requirements Relating to Additional Second Phase SBIR
Awards.--
``(1) In general.--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.
``(2) Technical or weapons systems.--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.''.
SEC. 413. FIRST PHASE REQUIRED.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended, is
further amended by adding at the end the following:
``(ll) First Phase Required.--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.''.
Union Calendar No. 102
111th CONGRESS
1st Session
H. R. 2965
[Report No. 111-190, Parts I and II]
_______________________________________________________________________
A BILL
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.
_______________________________________________________________________
July 7, 2009
Reported from the Committee on Science and Technology with an amendment