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.

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.