[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 4047 Introduced in Senate (IS)]

111th CONGRESS
  2d Session
                                S. 4047

To establish the Federal Acceleration of State Technologies Deployment 
                   Program and for related purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           December 17, 2010

  Mr. Bennett introduced the following bill; which was read twice and 
   referred to the Committee on Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
To establish the Federal Acceleration of State Technologies Deployment 
                   Program and for related purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Acceleration of State 
Technologies Deployment Act of 2009'' or the ``FAST Deployment Act of 
2010''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Individual States are currently investing approximately 
        $5,000,000,000 annually into new technology development and 
        deployment to support the local economies in the States and to 
        create jobs, with little or no direct high technology 
        deployment assistance from the Federal Government.
            (2) Based on 2 National Centers of Excellence reports, the 
        level of technology deployment investment by States is now more 
        than 10 times the amount of the investment nationwide just a 
        decade ago and State budgets for technology deployment 
        investment are increasing 8 to 10 times faster than State 
        budgets as a whole.
            (3) In order to continue the investment by States into the 
        deployment and commercialization of new technologies and 
        innovations under increasingly difficult economic 
        circumstances, it is essential that the Federal Government 
        become a strategic partner in the technology deployment efforts 
        of the States.
            (4) The Federal Government is investing less than 2 percent 
        (approximately $2,650,000,000) of the annual Federal budget for 
        research and development budget of $150,000,000,000 into 
        industry for the benefit of small business concerns and the 
        Nation through the Small Business Innovative Research program 
        and the Small Business Technology Transfer program under 
        section 9 of the Small Business Act (15 U.S.C. 638), to help 
        create innovative products a Federal agency, not the private 
        sector market, has determined are needed.
            (5) The Association of University Technology Managers that 
        represents all research universities in the United States 
        recently conducted a survey of 157 major research universities 
        and found the total return on investment on funded research in 
        the form of royalties received back by the universities over a 
        10-year period was less than 5 percent, meaning, on average, 
        for every $100,000,000 invested in research during the past 
        decade, the aggregate return over that 10-year period is less 
        than $5,000,000.
            (6) Most university technologies have been licensed to a 
        limited number of the 3,000 largest manufacturers in the United 
        States representing less than 2 percent of all manufacturers in 
        the United States, while small- and medium-sized manufacturing 
        entities constitute 98 percent of all manufacturing in the 
        United States, and have little to no interaction with research 
        universities or national labs, and research institutions do not 
        have the resources to promote technologies to each of the 
        300,000 small- and medium-sized manufacturing entities in the 
        United States.
            (7) Only about 10 percent of the new technologies and 
        innovations from research universities and national labs are 
        ever licensed for incorporation into commercial private sector 
        products while the remaining 90 percent of new technologies and 
        innovations resulting from such national research and 
        development remain in inventory, completely unlicensed and 
        unused.
            (8) Private industry generates 15 to 20 times more patented 
        innovations and technologies each year than structured research 
        universities and Federal labs combined and private industry 
        consistently commercializes about 35 percent of the patented 
        ideas developed by private industry, compared to less than 10 
        percent from higher education and Federal labs.
            (9) The Federal Government should allocate a portion of the 
        total annual Federal research and development budget each year 
        to match funding that individual States are appropriating from 
        their budgets to expand and accelerate the development and 
        deployment of new technologies and innovations through small 
        manufacturing businesses in the United States, which comprise 
        more than 95 percent of all manufacturing companies in the 
        United States.

SEC. 3. PURPOSES.

    The purposes of this Act are--
            (1) to establish within the Economic Development 
        Administration the Federal Acceleration of State Technologies 
        Deployment Program or FAST Deployment Program to provide 
        matching funds to qualified States for the acceleration of 
        local commercialization of newly developed technologies and the 
        promotion of small manufacturing and the innovation and 
        deployment of new technologies by small manufacturing 
        enterprises in the United States; and
            (2) to establish a national manufacturing technology needs 
        database.

SEC. 4. FEDERAL ACCELERATION OF STATE TECHNOLOGIES DEPLOYMENT PROGRAM.

    (a) Definitions.--In this section.
            (1) Assistant secretary.--The term ``Assistant Secretary'' 
        means the Assistant Secretary of Commerce for Economic 
        Development.
            (2) Deployment.--The term ``deployment'', relating to 
        technology, means--
                    (A) detailed designing of a new or improved product 
                resulting from a new innovation or technology;
                    (B) developing production processes, techniques, 
                and methods relating specifically to a new or improved 
                product;
                    (C) identifying, securing, or developing 
                facilities, equipment, and related supply chain 
                necessary to produce a new or improved product;
                    (D) developing expertise and training of the 
                employees or contractors necessary to produce a new or 
                improved product; and
                    (E) developing and implementing marketing 
                activities necessary to introduce a new or improved 
                product into the market place.
            (3) Extramural budget and research and development.--The 
        terms ``extramural budget'' and ``research and development'' 
        have the meanings given those terms in section 9 of the Small 
        Business Act (15 U.S.C. 638).
            (4) FAST deployment program.--The term ``FAST Deployment 
        Program'' means the Federal Acceleration of State Technologies 
        Deployment Program established under subsection (b).
            (5) FAST deployment program funds.--The term ``FAST 
        Deployment Program funds'' means the amounts appropriated to 
        the Assistant Secretary pursuant to subsection (c)(1).
            (6) FAST grant funds.--The term ``FAST grant funds'' means 
        94 percent of the FAST Deployment Program funds for a fiscal 
        year.
            (7) Qualified state.--The term ``qualified State'' means a 
        State that meets the criteria established by the Assistant 
        Secretary under subsection (d).
            (8) Small manufacturing enterprise.--The term ``small 
        manufacturing enterprise'' means a business concern with less 
        than 500 employees in an industry assigned a North American 
        Industry Classification System code for manufacturing that is 
        majority-owned by citizens of the United States.
            (9) State.--The term ``State'' has the meaning given the 
        term in section 3 of the Public Works and Economic Development 
        Act of 1965 (42 U.S.C. 3122).
    (b) Establishment.--The Assistant Secretary shall establish a 
Federal Acceleration of State Technologies Deployment Program to 
distribute matching Federal funds to qualifying States in accordance 
with this section.
    (c) FAST Deployment Program Authority.--
            (1) Authorization of appropriations.--In each fiscal year, 
        there is authorized to be appropriated to the Assistant 
        Secretary of Commerce for Economic Development to carry out the 
        FAST Deployment Program an amount equal to 0.05 percent of the 
        aggregate of the amounts appropriated for that fiscal year for 
        the extramural budgets of all other Federal agencies for 
        research and development.
            (2) Matching grants.--For each fiscal year, the Assistant 
        Secretary shall make grants from FAST Deployment Program funds 
        to qualified States.
            (3) Availability.--FAST Deployment Program funds shall 
        remain available to the Assistant Secretary until expended.
            (4) Establishment of manufacturing technology database.--
        The Assistant Secretary shall, in accordance with subsection 
        (k), establish as part of the FAST Deployment Program a 
        national manufacturing technology database.
    (d) Qualification for Grants.--The Assistant Secretary shall 
promulgate regulations establishing criteria for being designated a 
qualified State, which shall include that--
            (1) for the fiscal year before the fiscal year for which a 
        grant under subsection (c)(2) is made (in this paragraph 
        referred to as the ``previous fiscal year''), the State 
        funded--
                    (A) the promotion of manufacturing;
                    (B) deployment of new technologies and innovations;
                    (C) the acceleration of new technology deployment; 
                or
                    (D) the promotion of new product development by 
                small manufacturing enterprises located in the State; 
                and
            (2) a State desiring to be designated as a qualified State 
        shall certify for each fiscal year that if the State received 
        funds under the FAST Deployment Program during the previous 
        fiscal year, the State complied with subsection (g) during such 
        previous fiscal year.
    (e) Distribution of Funds.--
            (1) In general.--The Assistant Secretary shall make grants 
        using the FAST grant funds to qualified States for making 
        competitive grants to small manufacturing enterprises to 
        support specific, detailed technology deployment projects.
            (2) Minimum distribution.--For each fiscal year, the 
        Assistant Secretary shall make available to each qualified 
        State not less than $10,000,000 in FAST grant funds.
            (3) Remaining funds.--Subject to paragraph (4), for each 
        fiscal year, the Assistant Secretary shall distribute the FAST 
        grant funds remaining after the minimum distribution under 
        paragraph (2) to qualified States on a pro rata basis, based on 
        the number of small manufacturing enterprises located in each 
        qualified State.
            (4) Maximum distribution.--A qualified State may not 
        receive more than 5 percent of the FAST grant funds available 
        for any fiscal year.
            (5) Undistributed funds.--If all FAST grant funds are not 
        distributed to qualified States under paragraphs (1) through 
        (4), the Assistant Secretary may use the undistributed FAST 
        grant funds--
                    (A) to award grants on a competitive basis to 
                States--
                            (i) to assist a State that is not a 
                        qualified State in developing investment 
                        programs to promote the rapid deployment of new 
                        technologies for manufacturing within the 
                        State; and
                            (ii) to accelerate the establishment of the 
                        national manufacturing technology database 
                        established pursuant to subsection (c)(4); and
                    (B) for activities of the Economic Development 
                Administration that promote and provide training on 
                implementing manufacturing best practices and 
                deployment of technology.
    (f) Use of Funds.--
            (1) In general.--A qualified State shall--
                    (A) use FAST grant funds exclusively to make grants 
                to small manufacturing enterprises on a competitive 
                basis for technology deployment project assistance 
                projects approved by the qualified State;
                    (B) allocate FAST grant funds based on guidelines 
                that the Assistant Secretary shall establish, 
                qualifications established by the qualified State, and 
                the technology needs as assessed by the Assistant 
                Secretary and the qualified State;
                    (C) evaluate applications for grants under the FAST 
                Deployment Program and rank the applications in 
                accordance with the qualifications established by the 
                qualified State and the economic needs and interests of 
                the qualified State; and
                    (D) make grants from FAST grant funds to the small 
                manufacturing enterprises with the highest scores, 
                determined in accordance with subparagraph (C), for 
                deployment of a technology that is--
                            (i) a newly patented technology or a 
                        technology for which the small manufacturing 
                        enterprise has applied for a patent;
                            (ii) a licensed technology from a public 
                        research and development institution, a Federal 
                        laboratory, or the private sector; or
                            (iii) an innovation that, when incorporated 
                        into a product, will provide a distinct 
                        difference and a substantial benefit, based on 
                        an evaluation using a nationally accepted 
                        system of business idea evaluation and 
                        assessment.
            (2) Prohibited uses.--FAST grant funds may not be used by a 
        qualified State or a small manufacturing enterprise receiving a 
        grant under the FAST Deployment Program--
                    (A) for start-up capital; or
                    (B) to enhance the availability of venture capital 
                within a State.
            (3) Period of availability.--
                    (A) In general.--A qualified State shall expend 
                FAST grant funds not later than 2 years after the date 
                on which the qualified State receives the FAST grant 
                funds.
                    (B) Rescission.--Any FAST grant funds not expended 
                by a qualified State during the period specified in 
                subparagraph (A) shall be rescinded.
    (g) Matching Fund Requirements.--For each fiscal year, a qualified 
State that receives FAST Deployment Program funds shall make available 
non-Federal funds to carry out the FAST Deployment Program in an amount 
not less than the total amount of FAST Deployment Program funds 
received by the qualified State.
    (h) Reporting.--
            (1) Annual reports by qualified states to assistant 
        secretary.--Each fiscal year, each qualified State that 
        receives FAST Deployment Program funds for a fiscal year shall 
        submit to the Assistant Secretary a report describing--
                    (A) the use of the FAST Deployment Program funds by 
                the qualified State during the fiscal year; and
                    (B) the benefits to manufacturing within the 
                qualified State, including the new technologies and 
                innovations deployed and the jobs created or retained.
            (2) Semiannual reports by assistant secretary to federal 
        agencies.--In order to assist the heads of Federal agencies in 
        carrying out the responsibilities of such Federal agencies 
        relating to research and development budgeted for under the 
        extramural budgets of such agencies, the Assistant Secretary 
        shall, not less frequently than twice each year, submit to such 
        heads a report on the FAST Deployment Program.
    (i) Administrative Funding.--
            (1) In general.--The Assistant Secretary may use not more 
        than 6 percent of the FAST Deployment Program funds for a 
        fiscal year for administrative and project support purposes, in 
        accordance with this subsection.
            (2) Program support and operations.--The Assistant 
        Secretary may use not more than 3 percent of the FAST 
        Deployment Program funds for a fiscal year for administration 
        and management of the FAST Deployment Program and other 
        programs of the Economic Development Administration relating to 
        technology innovation and deployment, including--
                    (A) training of officials of qualified States 
                regarding the operation and management of the FAST 
                Deployment Program, and other programs of the 
                Administration relating to technology innovation and 
                deployment determined appropriate by the Assistant 
                Secretary;
                    (B) to assist small manufacturing enterprises to 
                secure low interest funding for new or modified 
                facilities and equipment in order to manufacture the 
                products resulting from technology deployment;
                    (C) providing small manufacturing enterprises 
                receiving a grant under the FAST Deployment Program 
                with uniform guidance relating to strategic and 
                business planning, in accordance with the metrics 
                established under paragraph (3); and
                    (D) facilitating access for small manufacturing 
                enterprises receiving a grant under the FAST Deployment 
                Program to the metrics established under paragraph (3) 
                to conduct detailed enterprise, product, and staffing 
                assessments.
            (3) Metrics.--The Assistant Secretary shall establish a 
        system of metrics to evaluate the performance of the FAST 
        Deployment Program and the participants in such program.
            (4) States program support and operations.--
                    (A) In general.--The Assistant Secretary shall make 
                available to qualified States that receive FAST grant 
                funds for a fiscal year 0.9 percent of the FAST 
                Deployment Program funds for the fiscal year for 
                program implementation and management, in accordance 
                with this paragraph.
                    (B) Minimum distribution.--
                            (i) In general.--Except as provided in 
                        clause (ii), for each fiscal year, the 
                        Assistant Secretary shall make available to 
                        each qualified State receiving FAST grant funds 
                        for the fiscal year $300,000 for program 
                        support and operations.
                            (ii) Modification.--The Assistant Secretary 
                        may modify the minimum distribution under 
                        clause (i) for a fiscal year based on the total 
                        amount of FAST Deployment Program funds 
                        available for the fiscal year.
                    (C) Remaining funds.--Subject to subparagraph (D), 
                for each fiscal year, the Assistant Secretary shall 
                distribute the amounts described in subparagraph (A) 
                remaining after the minimum distribution under 
                subparagraph (B) on a prorated basis, based on the 
                number of small manufacturing enterprises located in 
                each qualified State receiving FAST grant funds for the 
                fiscal year.
                    (D) Maximum amount.--A qualified State may not 
                receive more than 5 percent of the total amount made 
                available under subparagraph (A) for a fiscal year.
                    (E) Use of funds.--Amounts made available to a 
                qualified State under this paragraph shall be used 
                for--
                            (i) soliciting, evaluating, and 
                        prioritizing proposals for technology 
                        deployment funding from small manufacturing 
                        enterprises, consistent with the economic 
                        development objectives of the qualified State;
                            (ii) supporting projects to implement 
                        technology deployment; and
                            (iii) administering the solicitation and 
                        evaluation activities of the FAST Deployment 
                        Program.
            (5) Operational support.--
                    (A) In general.--For each fiscal year, the 
                Assistant Secretary shall use 1 percent of the FAST 
                Deployment Program funds--
                            (i) to assess the technology needs of small 
                        manufacturing enterprises;
                            (ii) to maintain a database of all projects 
                        receiving funds under the FAST Deployment 
                        Program; and
                            (iii) to develop best practices to refine 
                        and to improve the efficiency and effectiveness 
                        of the FAST Deployment Program.
                    (B) Grants.--The Assistant Secretary may carry out 
                the requirements of subparagraph (A) through the 
                awarding of grants to non-Federal experts.
    (j) Coordination With Federal Agencies.--In carrying out the FAST 
Deployment Program, the Assistant Secretary shall coordinate with the 
heads of other Federal agencies to ensure the grants made under the 
FAST Deployment Program are a complement to and enhance the efforts and 
programs of other Federal agencies to promote and support small 
manufacturing enterprises in the United States.
    (k) Establishment of Manufacturing Technology Database.--
            (1) Establishment of national manufacturing technology 
        needs database.--The Assistant Secretary shall establish a 
        national manufacturing technology database for the purposes of 
        assembling information relating to new manufacturing 
        technologies created throughout the United States to 
        efficiently disseminate the information to manufacturing 
        enterprises within the United States. Such database shall 
        include comprehensive information about patents held by United 
        States persons that are available for licensing and the 
        technology needs of United States manufacturers.
            (2) Coordination with existing database.--The Assistant 
        Secretary shall ensure that the database established under 
        paragraph (1) is coordinated with the national manufacturing 
        technology needs database established by the Garn Advanced 
        Manufacturing Business Innovation and Technologies Center to 
        ensure the ongoing maintenance of a national repository for new 
        manufacturing technologies.
            (3) Protection of intellectual property.--The Assistant 
        Secretary shall take appropriate measures to protect the 
        intellectual property of participants in the database 
        established under paragraph (1).
            (4) Availability.--The Assistant Secretary shall make the 
        database established under paragraph (1) available to--
                    (A) manufacturers located in the United States that 
                seek new technologies or innovations to improve 
                manufacturing or to promote new manufacturing for the 
                primary purpose of deploying new technologies and 
                innovations developed within the United States to small 
                manufacturing enterprises located in the United States;
                    (B) National Laboratories, research universities in 
                the United States, and other patent holders in the 
                United States for--
                            (i) determining if any technologies already 
                        developed or under development have potential 
                        for filling the technology needs defined in the 
                        database;
                            (ii) identifying technology needs to 
                        improve manufacturing in the United States or 
                        to introduce new products to small 
                        manufacturing enterprises;
                            (iii) identifying the technology needs of 
                        small manufacturing enterprises which might be 
                        addressed by technologies or innovations 
                        developed or used by other small manufacturing 
                        enterprises and that could be licensed or 
                        otherwise accessed; and
                            (iv) promoting the use of patents of such 
                        laboratories, research universities, and other 
                        patent holders.
            (5) Assessment.--The Assistant Secretary shall--
                    (A) annually survey not less than 10 percent of 
                small manufacturing enterprises in the United States to 
                assess the technology needs of small manufacturing 
                enterprises; and
                    (B) incorporate information from each annual survey 
                under subparagraph (A) into the database established 
                under this subsection, in a manner that appropriately 
                protects confidentiality and intellectual property 
                rights.
    (l) Regulations.--The Assistant Secretary shall, in consultation 
with the States, promulgate regulations for the distribution of FAST 
Deployment Program funds to all qualified States and the use of FAST 
Deployment Program funds in accordance with this section.
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