[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2763 Reported in House (RH)]

<DOC>





                                                 Union Calendar No. 223
115th CONGRESS
  1st Session
                                H. R. 2763

                  [Report No. 115-313, Parts I and II]

     To amend the Small Business Act to improve the Small Business 
  Innovation Research program and Small Business Technology Transfer 
                    program, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 30, 2017

  Mr. Knight (for himself and Mrs. Murphy of Florida) introduced the 
following bill; which was referred to the Committee on Small Business, 
and in addition to the Committee on Science, Space, 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

                           September 14, 2017

         Additional sponsor: Miss Gonzalez-Colon of Puerto Rico

                           September 14, 2017

    Reported from the Committee on Small Business with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

                           September 14, 2017

 Reported from the Committee on Science, Space, and Technology with an 
 amendment, committed to the Committee of the Whole House on the State 
                of the Union, and ordered to be printed
 [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 May 30, 
                                 2017]


_______________________________________________________________________

                                 A BILL


 
     To amend the Small Business Act to improve the Small Business 
  Innovation Research program and 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.

    This Act may be cited as the ``Small Business Innovation Research 
and Small Business Technology Transfer Improvements Act of 2017''.

SEC. 2. REPORTING REQUIREMENTS.

    (a) Annual Report to Congress.--Section 9(b)(7) of the Small 
Business Act (15 U.S.C. 638(b)(7)) is amended by striking ``to report 
not less than annually'' and inserting ``to submit a report not later 
than December 31 of each year''.
    (b) Annual Report to SBA and the Office of Science and Technology 
Policy.--Section 9(g)(9) of the Small Business Act (15 U.S.C. 
638(g)(9)) is amended--
            (1) by striking ``make an annual report'' and inserting 
        ``not later than March 30 of each year, submit a report''; and
            (2) by striking ``and the Office of Science and Technology 
        Policy'' and inserting ``, the Office of Science and Technology 
        Policy, the Committee on Science, Space, and Technology and the 
        Committee on Small Business of the House of Representatives, 
        and the Committee on Small Business and Entrepreneurship of the 
        Senate''.

SEC. 3. REQUIRING INSERTION INCENTIVES.

    Section 9(y)(5) of the Small Business Act (15 U.S.C. 638(y)(5)) is 
amended by striking ``is authorized to'' and inserting ``shall''.

SEC. 4. SBIR PHASE FLEXIBILITY.

    Section 9(cc) of the Small Business Act (15 U.S.C. 638(cc)) is 
amended by striking ``During fiscal years'' and all that follows 
through ``may each provide'' and inserting ``During fiscal years 2018 
through 2022, all agencies participating in the SBIR program may 
provide''.

SEC. 5. ESTABLISHING THE CIVILIAN AGENCY COMMERCIALIZATION READINESS 
              PROGRAM.

    Section 9(gg) of the Small Business Act (15 U.S.C. 638(gg)) is 
amended--
            (1) by amending the subsection heading to read as follows: 
        ``Civilian Agency Commercialization Readiness Program'';
            (2) in paragraph (1), by inserting ``to establish a 
        Civilian Agency Commercialization Readiness Program for 
        civilian agencies'' after ``the covered Federal agency'';
            (3) in paragraph (2)(A)--
                    (A) by striking ``establish a pilot program'' and 
                inserting ``establish a Civilian Agency 
                Commercialization Readiness Program under this 
                subsection''; and
                    (B) by striking ``the pilot program'' and inserting 
                ``such Civilian Agency Commercialization Readiness 
                Program'';
            (4) in paragraphs (3) and (4), by striking ``a pilot 
        program'' each place such term appears and inserting ``a 
        Civilian Commercialization Readiness Program'';
            (5) in paragraph (6), by striking ``the pilot program'' and 
        inserting ``a Civilian Agency Commercialization Readiness 
        Program'';
            (6) by striking paragraph (7) and redesignating paragraph 
        (8) as paragraph (7); and
            (7) in paragraph (7) (as so redesignated), by amending 
        subparagraph (B) to read as follows:
                    ``(B) the term `Civilian Agency Commercialization 
                Readiness Program' means each program established under 
                paragraph (1).''.

SEC. 6. EXTENSION OF DEADLINE FOR ASSISTANCE FOR ADMINISTRATIVE, 
              OVERSIGHT, AND CONTRACT PROCESSING COSTS.

    Section 9(mm)(1) of the Small Business Act (15 U.S.C. 638(mm)(1)) 
is amended by striking ``September 30, 2017'' and inserting ``September 
30, 2022''.

SEC. 7. INCREASED UNDERSERVED POPULATION PARTICIPATION WAIVER REMOVED.

    (a) In General.--Section 9(mm)(2) of the Small Business Act (15 
U.S.C. 638(mm)(2)) is amended to read as follows:
            ``(2) Outreach and technical assistance.--A Federal agency 
        participating in the program under this subsection shall use a 
        portion of the funds authorized for uses under paragraph (1) to 
        carry out the policy directive required under subsection 
        (j)(2)(F) and to increase the participation of States with 
        respect to which a low level of SBIR awards have historically 
        been awarded.''.
    (b) Conforming Amendment.--Section 9(mm)(6) of the Small Business 
Act (15 U.S.C. 638(mm)(6)) is amended by striking ``paragraph (2)(A) 
and any use of the waiver authority under paragraph (2)(B)'' and 
inserting ``paragraph (2)''.

SEC. 8. ANNUAL MEETING.

    (a) In General.--Section 9 of the Small Business Act (15 U.S.C. 
638) is amended by adding at the end the following new subsection:
    ``(tt) Annual Meeting.--
            ``(1) In general.--The head of each Federal agency required 
        to have a program under this section (or a designee) and the 
        Administrator (or a designee) shall meet annually to discuss 
        methods--
                    ``(A) to improve the collection of data under this 
                section;
                    ``(B) to improve the reporting of data to the 
                Administrator under this section;
                    ``(C) to make the application processes for 
                programs under this section more efficient; and
                    ``(D) to increase participation in the programs 
                established under this section.
            ``(2) Report.--Not later than 60 days after the date on 
        which an annual meeting required under paragraph (1) is held, 
        the Administrator shall submit to the Committee on Small 
        Business and Entrepreneurship of the Senate and the Committee 
        on Small Business and the Committee on Science, Space, and 
        Technology of the House of Representatives, a report on the 
        findings of such meeting and recommendations on how to 
        implement changes to programs under this section.''.
    (b) Funding for Annual Meeting.--Section 9(mm)(1) of the Small 
Business Act (15 U.S.C. 638(mm)(1)), as amended by this Act, is further 
amended--
            (1) in subparagraph (I), by striking the ``and'' at the 
        end;
            (2) in subparagraph (J), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following new subparagraph:
                    ``(K) the annual meeting required under subsection 
                (tt).''.

SEC. 9. COMPLIANCE OF PHASE III AWARDS WITH COMPETITIVE PROCEDURES.

    Section 9(r)(4) of the Small Business Act (15 U.S.C. 638(r)(4)) is 
amended by striking ``, including sole source awards,'' and inserting 
``as direct follow-on awards issued without further competition''.

SEC. 10. COMMERCIALIZATION ASSISTANCE PILOT PROGRAMS.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
section 8, is further amended by adding at the end the following new 
subsection:
    ``(uu) Commercialization Assistance Pilot Programs.--
            ``(1) Pilot programs implemented.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), not later than one year after the 
                date of the enactment of this subsection, a covered 
                agency shall implement a commercialization assistance 
                pilot program, under which an eligible entity may 
                receive a subsequent Phase II SBIR award.
                    ``(B) Exception.--If the Administrator determines 
                that a covered agency has a program that is 
                sufficiently similar to the commercialization 
                assistance pilot program established under this 
                subsection, such covered agency shall not be required 
                to implement a commercialization assistance pilot 
                program under this subsection.
            ``(2) Percent of agency funds.--The head of each covered 
        agency may allocate not more than 5 percent of the funds 
        allocated to the SBIR program of the covered agency for the 
        purpose of making a subsequent Phase II SBIR award under the 
        commercialization assistance pilot program.
            ``(3) Termination.--A commercialization assistance pilot 
        program established under this subsection shall terminate on 
        September 30, 2022.
            ``(4) Application.--To be selected to receive a subsequent 
        Phase II SBIR award under a commercialization assistance pilot 
        program, an eligible entity shall submit to the covered agency 
        implementing such pilot program an application at such time, in 
        such manner, and containing such information as the covered 
        agency may require, including--
                    ``(A) an updated Phase II commercialization plan; 
                and
                    ``(B) the source and amount of the matching funding 
                required under paragraph (5).
            ``(5) Matching funding.--
                    ``(A) In general.--The Administrator shall require, 
                as a condition of any subsequent Phase II SBIR award 
                made to an eligible entity under this subsection, that 
                a matching amount (excluding any fees collected by the 
                eligible entity receiving such award) equal to the 
                amount of such award be provided from an eligible 
                third-party investor.
                    ``(B) Ineligible sources.--An eligible entity may 
                not use funding from ineligible sources to meet the 
                matching requirement of subparagraph (A).
            ``(6) Award.--A subsequent Phase II SBIR award made to an 
        eligible entity under this subsection--
                    ``(A) may not exceed the limitation described under 
                subsection (aa)(1); and
                    ``(B) shall be disbursed during Phase II.
            ``(7) Use of funds.--The funds awarded to an eligible 
        entity under this subsection may only be used for research and 
        development activities that build on eligible entity's Phase II 
        program and ensure the research funded under such Phase II is 
        rapidly progressing towards commercialization.
            ``(8) Selection.--In selecting eligible entities to 
        participate in a commercialization assistance pilot program 
        under this subsection, the head of a covered agency shall 
        consider--
                    ``(A) the extent to which such award could aid the 
                eligible entity in commercializing the research funded 
                under the eligible entity's Phase II program;
                    ``(B) whether the updated Phase II 
                commercialization plan submitted under paragraph (4) 
                provides a sound approach for establishing technical 
                feasibility that could lead to commercialization of 
                such research;
                    ``(C) whether the proposed activities to be 
                conducted under such updated Phase II commercialization 
                plan further improve the likelihood that such research 
                will provide societal benefits;
                    ``(D) whether the small business concern has 
                progressed satisfactorily in Phase II to justify 
                receipt of a subsequent Phase II SBIR award;
                    ``(E) the expectations of the eligible third-party 
                investor that provides matching funding under paragraph 
                (5); and
                    ``(F) the likelihood that the proposed activities 
                to be conducted under such updated Phase II 
                commercialization plan using matching funding provided 
                by such eligible third-party investor will lead to 
                commercial and societal benefit.
            ``(9) Evaluation report.--Not later than 3 years after the 
        date of the enactment of this subsection, the Comptroller 
        General of the United States shall submit to the Committee on 
        Science, Space, and Technology and the Committee on Small 
        Business of the House of Representatives, and the Committee on 
        Small Business and Entrepreneurship of the Senate, a report 
        including--
                    ``(A) a summary of the activities of 
                commercialization assistance pilot programs carried out 
                under this subsection;
                    ``(B) a detailed compilation of results achieved by 
                such commercialization assistance pilot programs, 
                including the number of eligible entities that received 
                awards under such programs;
                    ``(C) the rate at which each eligible entity that 
                received a subsequent Phase II SBIR award under this 
                subsection commercialized research of the recipient;
                    ``(D) the growth in employment and revenue of 
                eligible entities that is attributable to participation 
                in a commercialization assistance pilot program;
                    ``(E) a comparison of commercialization success of 
                eligible entities participating in a commercialization 
                assistance pilot program with recipients of an 
                additional Phase II SBIR award under subsection (ff);
                    ``(F) demographic information, such as ethnicity 
                and geographic location, of eligible entities 
                participating in a commercialization assistance pilot 
                program;
                    ``(G) an accounting of the funds used at each 
                covered agency that implements a commercialization 
                assistance pilot program under this subsection;
                    ``(H) the amount of matching funding provided by 
                eligible third-party investors, set forth separately by 
                source of funding;
                    ``(I) an analysis of the effectiveness of the 
                commercialization assistance pilot program implemented 
                by each covered agency; and
                    ``(J) recommendations for improvements to the 
                commercialization assistance pilot program.
            ``(10) Definitions.--For purposes of this subsection:
                    ``(A) Covered agency.--The term `covered agency' 
                means a Federal agency required to have an SBIR 
                program.
                    ``(B) Eligible entity.--The term `eligible entity' 
                means a small business concern that has received a 
                Phase II award under an SBIR program and an additional 
                Phase II SBIR award under subsection (ff) from the 
                covered agency to which such small business concern is 
                applying for a subsequent Phase II SBIR award.
                    ``(C) Eligible third-party investor.--The term 
                `eligible third-party investor' means a small business 
                concern other than an eligible entity, a venture 
                capital firm, an individual investor, a non-SBIR 
                Federal, State or local government, or any combination 
                thereof.
                    ``(D) Ineligible sources.--The term `ineligible 
                sources' means the following:
                            ``(i) The eligible entity's internal 
                        research and development funds.
                            ``(ii) Funding in forms other than cash, 
                        such as in-kind or other intangible assets.
                            ``(iii) Funding from the owners of the 
                        eligible entity, or the family members or 
                        affiliates of such owners.
                            ``(iv) Funding attained through loans or 
                        other forms of debt obligations.
                    ``(E) Subsequent phase ii sbir award.--The term 
                `subsequent Phase II SBIR award' means an award granted 
                to an eligible entity under this subsection to carry 
                out further commercialization activities for research 
                conducted pursuant to an SBIR program.''.

SEC. 11. PROCUREMENT CENTER REPRESENTATIVES AND OTHER ACQUISITION 
              PERSONNEL IN THE SBIR AND STTR PROGRAMS.

    (a) Definition of Senior Procurement Executive.--Section 9(e) of 
the Small Business Act (15 U.S.C. 638(e)) is amended--
            (1) in paragraph (12)(B), by striking ``and'' at the end;
            (2) in paragraph (13)(B), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(14) the term `senior procurement executive' means an 
        official designated under section 1702(c) of title 41, United 
        States Code, as the senior procurement executive of a Federal 
        agency participating in a SBIR or STTR program.''.
    (b) Inclusion of Senior Procurement Executives in SBIR and STTR.--
            (1) In general.--Section 9(b) of the Small Business Act (15 
        U.S.C. 638(b)) is amended--
                    (A) in paragraph (8), by striking ``and'' at the 
                end;
                    (B) in paragraph (9), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(10) to coordinate, where appropriate, with the senior 
        procurement executive of the relevant Federal agency to assist 
        small business concerns participating in a SBIR or STTR program 
        with commercializing research developed under such a program 
        before such small business concern is awarded a contract from 
        such Federal agency.''.
            (2) Technical amendment.--Section 9(b)(3) of the Small 
        Business Act (15 U.S.C. 638(b)(3)) is amended by striking 
        ``and'' at the end.
    (c) Modifications Relating to Procurement Center Representatives 
and Other Acquisition Personnel.--
            (1) SBIR amendment.--Section 9(j) of the Small Business Act 
        (15 U.S.C. 638(j)) is amended by adding at the end the 
        following new paragraph:
            ``(4) Modifications relating to procurement center 
        representatives.--Upon the enactment of this paragraph, the 
        Administrator shall modify the policy directives issued 
        pursuant to this subsection to require procurement center 
        representatives (as described in section 15(l)) to assist small 
        business concerns participating in the SBIR program, 
        particularly in Phase III. The procurement center 
        representatives shall coordinate with the appropriate 
        contracting officer and the appropriate Director of the Office 
        of Small and Disadvantaged Business Utilization established 
        pursuant to section 15(k) for the agency letting the 
        contract.''.
            (2) STTR amendment.--Section 9(p)(2) of the Small Business 
        Act (15 U.S.C. 638(p)(2)) is amended--
                    (A) in subparagraph (E)(ii), by striking ``and'' at 
                the end;
                    (B) in subparagraph (F), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(G) procedures to ensure that procurement center 
                representatives (as described in section 15(l))--
                            ``(i) assist small business concerns 
                        participating in the STTR program, particularly 
                        in Phase III; and
                            ``(ii) coordinate with the appropriate 
                        contracting officer and the appropriate 
                        Director of the Office of Small and 
                        Disadvantaged Business Utilization established 
                        pursuant to section 15(k) for the Federal 
                        agency letting the contract in providing the 
                        assistance described in clause (i).''.
    (d) Amendment to Duties of Procurement Center Representatives.--
Section 15(l)(2) of the Small Business Act (15 U.S.C. 644(l)(2)) is 
amended--
            (1) in subparagraph (I), by striking ``and'' at the end;
            (2) by redesignating subparagraph (J) as subparagraph (L); 
        and
            (3) by inserting after subparagraph (I) the following new 
        subparagraphs:
                    ``(J) assist small business concerns participating 
                in a SBIR or STTR program under section 9 with Phase 
                III;
                    ``(K) coordinate with the appropriate contracting 
                officer and the appropriate Director of the Office of 
                Small and Disadvantaged Business Utilization 
                established pursuant to subsection (k) for the agency 
                letting the contract; and''.
    (e) Amendment to the Duties of the Director of Small and 
Disadvantaged Business Utilization for Federal Agencies.--Section 15(k) 
of the Small Business Act (15 U.S.C. 644(k)) is amended--
            (1) in paragraph (19), by striking ``and'' at the end;
            (2) in paragraph (20), by striking the period at the end 
        and inserting a semicolon; and
            (3) by adding at the end the following new paragraphs:
            ``(21) shall assist small business concerns participating 
        in a SBIR or STTR program under section 9 with researching 
        applicable solicitations for the award of a Federal contract 
        (particularly with the Federal agency that has a funding 
        agreement (as defined under section 9) with the concern) to 
        market the research developed by such concern under such SBIR 
        or STTR program; and
            ``(22) shall provide technical assistance to small business 
        concerns participating in a SBIR or STTR program under section 
        9 to submit a bid for an award of a Federal contract, including 
        coordination with procurement center representatives and the 
        appropriate senior procurement executive for the agency letting 
        the contract.''.

SEC. 12. IMPROVEMENTS TO TECHNICAL AND BUSINESS ASSISTANCE IN THE SBIR 
              AND STTR PROGRAMS.

    Section 9(q) of the Small Business Act (15 U.S.C. 638(q)) is 
amended--
            (1) in the subsection heading, by inserting ``and 
        Business'' after ``Technical'';
            (2) in paragraph (1)--
                    (A) in the matter preceding subparagraph (A)--
                            (i) by striking ``a vendor selected under 
                        paragraph (2)'' and inserting ``1 or more 
                        vendors selected under paragraph (2)(A)'';
                            (ii) by inserting ``and business'' before 
                        ``assistance services''; and
                            (iii) by inserting ``assistance with 
                        product sales, intellectual property 
                        protections, market research, market 
                        validation, and development of regulatory plans 
                        and manufacturing plans,'' after 
                        ``technologies,''; and
                    (B) in subparagraph (D), by inserting ``, including 
                intellectual property protections'' before the period 
                at the end;
            (3) in paragraph (2)--
                    (A) by striking ``Each agency may select a vendor 
                to assist small business concerns to meet'' and 
                inserting the following:
                    ``(A) In general.--Each agency may select 1 or more 
                vendors from which small business concerns may obtain 
                assistance in meeting''; and
                    (B) by adding at the end the following:
                    ``(B) Selection by small business concern.--A small 
                business concern may, by contract or otherwise, select 
                1 or more vendors to assist the small business concern 
                in meeting the goals listed in paragraph (1).''; and
            (4) in paragraph (3)--
                    (A) by inserting ``(A)'' after ``paragraph (2)'' 
                each place it appears;
                    (B) in subparagraph (A), by striking ``$5,000 per 
                year'' each place it appears and inserting ``$6,500 per 
                project'';
                    (C) in subparagraph (B)--
                            (i) by striking ``$5,000 per year'' each 
                        place it appears and inserting ``$35,000 per 
                        project''; and
                            (ii) in clause (ii), by striking ``which 
                        shall be in addition to the amount of the 
                        recipient's award'' and inserting ``which may, 
                        as determined appropriate by the head of the 
                        agency, be included as part of the recipient's 
                        award or be in addition to the amount of the 
                        recipient's award'';
                    (D) in subparagraph (C)--
                            (i) by inserting ``or business'' after 
                        ``technical'';
                            (ii) by striking ``the vendor'' and 
                        inserting ``a vendor''; and
                            (iii) by adding at the end the following: 
                        ``Business-related services aimed at improving 
                        the commercialization success of a small 
                        business concern may be obtained from an 
                        entity, such as a public or private 
                        organization or an agency of or other entity 
                        established or funded by a State that 
                        facilitates or accelerates the 
                        commercialization of technologies or assists in 
                        the creation and growth of private enterprises 
                        that are commercializing technology.'';
                    (E) in subparagraph (D)--
                            (i) by inserting ``or business'' after 
                        ``technical'' each place it appears; and
                            (ii) in clause (i), by striking ``the 
                        vendor'' and inserting ``1 or more vendors''; 
                        and
                    (F) by adding at the end the following:
                    ``(E) Multiple award recipients.--The Administrator 
                shall establish a limit on the amount of technical and 
                business assistance services that may be received or 
                purchased under subparagraph (B) by a small business 
                concern that has received multiple Phase II SBIR or 
                STTR awards for a fiscal year.''.

SEC. 13. ADDITIONAL SBIR AND STTR TECHNOLOGY INSERTION REPORTING 
              REQUIREMENT.

    Section 9(y)(6) of the Small Business Act (15 U.S.C. 638(y)(6)) is 
amended--
            (1) in subparagraph (B), by striking ``and'' at the end;
            (2) in subparagraph (C)(iii), by striking the period at the 
        end and inserting ``; and''; and
            (3) by adding at the end the following new subparagraph:
                    ``(D) not later than 120 days after the date of the 
                enactment of this subparagraph, and not later than 
                December 31 of each year thereafter, submit to the 
                Committee on Science, Space, 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, a report describing 
                the goals set under subparagraph (A) and the incentives 
                used or created under subparagraph (B).''.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business Innovation Research 
and Small Business Technology Transfer Improvements Act of 2017''.

SEC. 2. REPORTING REQUIREMENTS.

    (a) Annual Report to Congress.--Section 9(b)(7) of the Small 
Business Act (15 U.S.C. 638(b)(7)) is amended by striking ``to report 
not less than annually'' and inserting ``to submit a report not later 
than December 31 of each year''.
    (b) Annual Report to SBA and the Office of Science and Technology 
Policy.--Section 9(g)(9) of the Small Business Act (15 U.S.C. 
638(g)(9)) is amended--
            (1) by striking ``make an annual report'' and inserting 
        ``not later than March 30 of each year, submit a report''; and
            (2) by striking ``and the Office of Science and Technology 
        Policy'' and inserting ``, the Office of Science and Technology 
        Policy, the Committee on Science, Space, and Technology and the 
        Committee on Small Business of the House of Representatives, 
        and the Committee on Small Business and Entrepreneurship of the 
        Senate''.

SEC. 3. REQUIRING INSERTION INCENTIVES.

    Section 9(y)(5) of the Small Business Act (15 U.S.C. 638(y)(5)) is 
amended by striking ``is authorized to'' and inserting ``shall''.

SEC. 4. SBIR PHASE FLEXIBILITY.

    Section 9(cc) of the Small Business Act (15 U.S.C. 638(cc)) is 
amended by striking ``During fiscal years'' and all that follows 
through ``may each provide'' and inserting ``During fiscal years 2018 
through 2022, all agencies participating in the SBIR program may 
provide''.

SEC. 5. ESTABLISHING THE CIVILIAN AGENCY COMMERCIALIZATION READINESS 
              PROGRAM.

    Section 9(gg) of the Small Business Act (15 U.S.C. 638(gg)) is 
amended--
            (1) by amending the subsection heading to read as follows: 
        ``Civilian Agency Commercialization Readiness Program'';
            (2) in paragraph (1), by inserting ``to establish a 
        Civilian Agency Commercialization Readiness Program for 
        civilian agencies'' after ``the covered Federal agency'';
            (3) in paragraph (2)(A)--
                    (A) by striking ``establish a pilot program'' and 
                inserting ``establish a Civilian Agency 
                Commercialization Readiness Program under this 
                subsection''; and
                    (B) by striking ``the pilot program'' and inserting 
                ``such Civilian Agency Commercialization Readiness 
                Program'';
            (4) in paragraphs (3) and (4), by striking ``a pilot 
        program'' each place such term appears and inserting ``a 
        Civilian Commercialization Readiness Program'';
            (5) in paragraph (6), by striking ``the pilot program'' and 
        inserting ``a Civilian Agency Commercialization Readiness 
        Program'';
            (6) by striking paragraph (7) and redesignating paragraph 
        (8) as paragraph (7); and
            (7) in paragraph (7) (as so redesignated), by amending 
        subparagraph (B) to read as follows:
                    ``(B) the term `Civilian Agency Commercialization 
                Readiness Program' means each program established under 
                paragraph (1).''.

SEC. 6. EXTENSION OF DEADLINE FOR ASSISTANCE FOR ADMINISTRATIVE, 
              OVERSIGHT, AND CONTRACT PROCESSING COSTS.

    Section 9(mm)(1) of the Small Business Act (15 U.S.C. 638(mm)(1)) 
is amended by striking ``September 30, 2017'' and inserting ``September 
30, 2022''.

SEC. 7. IMPROVEMENTS TO TECHNICAL AND BUSINESS ASSISTANCE IN THE SBIR 
              AND STTR PROGRAMS.

    Section 9(q) of the Small Business Act (15 U.S.C. 638(q)) is 
amended--
            (1) in the subsection heading, by inserting ``and 
        Business'' after ``Technical'';
            (2) in paragraph (1)--
                    (A) in the matter preceding subparagraph (A)--
                            (i) by striking ``a vendor selected under 
                        paragraph (2)'' and inserting ``1 or more 
                        vendors selected under paragraph (2)(A)'';
                            (ii) by inserting ``and business'' before 
                        ``assistance services''; and
                            (iii) by inserting ``assistance with 
                        product sales, intellectual property 
                        protections, market research, market 
                        validation, and development of regulatory plans 
                        and manufacturing plans,'' after 
                        ``technologies,''; and
                    (B) in subparagraph (D), by inserting ``, including 
                intellectual property protections'' before the period 
                at the end;
            (3) in paragraph (2)--
                    (A) by striking ``Each agency may select a vendor 
                to assist small business concerns to meet'' and 
                inserting the following:
                    ``(A) In general.--Each agency may select 1 or more 
                vendors from which small business concerns may obtain 
                assistance in meeting''; and
                    (B) by adding at the end the following:
                    ``(B) Selection by small business concern.--A small 
                business concern may, by contract or otherwise, select 
                1 or more vendors to assist the small business concern 
                in meeting the goals listed in paragraph (1).''; and
            (4) in paragraph (3)--
                    (A) by inserting ``(A)'' after ``paragraph (2)'' 
                each place it appears;
                    (B) in subparagraph (A), by striking ``$5,000 per 
                year'' each place it appears and inserting ``$6,500 per 
                project'';
                    (C) in subparagraph (B)--
                            (i) by striking ``$5,000 per year'' each 
                        place it appears and inserting ``$35,000 per 
                        project''; and
                            (ii) in clause (ii), by striking ``which 
                        shall be in addition to the amount of the 
                        recipient's award'' and inserting ``which may, 
                        as determined appropriate by the head of the 
                        agency, be included as part of the recipient's 
                        award or be in addition to the amount of the 
                        recipient's award'';
                    (D) in subparagraph (C)--
                            (i) by inserting ``or business'' after 
                        ``technical'';
                            (ii) by striking ``the vendor'' and 
                        inserting ``a vendor''; and
                            (iii) by adding at the end the following: 
                        ``Business-related services may be obtained 
                        from an entity, such as a public or private 
                        organization or an agency of or other entity 
                        established or funded by a State, that 
                        facilitates or accelerates the 
                        commercialization of technologies or assists in 
                        the creation and growth of private enterprises 
                        that are commercializing technology.'';
                    (E) in subparagraph (D)--
                            (i) by inserting ``or business'' after 
                        ``technical'' each place it appears; and
                            (ii) in clause (i)--
                                    (I) by striking ``the vendor'' and 
                                inserting ``1 or more vendors''; and
                                    (II) by striking ``provides'' and 
                                inserting ``provide''; and
                    (F) by adding at the end the following:
                    ``(E) Multiple award recipients.--The Administrator 
                shall establish a limit on the amount of technical and 
                business assistance services that may be received or 
                purchased under subparagraph (B) by a small business 
                concern that has received multiple Phase II SBIR or 
                STTR awards for a fiscal year.''.

SEC. 8. ADDITIONAL SBIR AND STTR TECHNOLOGY INSERTION REPORTING 
              REQUIREMENT.

    Section 9(y)(6) of the Small Business Act (15 U.S.C. 638(y)(6)) is 
amended--
            (1) in subparagraph (B), by striking ``and'' at the end;
            (2) in subparagraph (C)(iii), by striking the period at the 
        end and inserting ``; and''; and
            (3) by adding at the end the following new subparagraph:
                    ``(D) not later than 120 days after the date of the 
                enactment of this subparagraph, and not later than 
                December 31 of each year thereafter, submit to the 
                Committee on Science, Space, 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, a report describing 
                the goals set under subparagraph (A) and the incentives 
                used or created under subparagraph (B).''.

SEC. 9. CONTINGENT LIMITATION ON USE OF CERTAIN FUNDS PENDING 
              SUBMISSION OF REPORT.

    (a) Report Deadline.--The Administrator of the Small Business 
Administration shall submit the annual report required under section 
9(b)(7) of the Small Business Act (15 U.S.C. 638(b)(7)) not later than 
the last day of each calendar year.
    (b) Prohibition on Availability of Funds for Failure to Submit 
Report.--If the Administrator does not meet the deadline for submission 
under subsection (a) with respect to a calendar year, no funds 
authorized to be appropriated or otherwise made available to the Small 
Business Administration by this Act, or any other Act, may be obligated 
or expended for travel by the Administrator for the following calendar 
year until such time as the Administrator submits the report described 
under subsection (a).

SEC. 10. ENCOURAGING INNOVATION IN UNITED STATES MANUFACTURING.

    Section 9 of the Small Business Act (15 U.S.C. 638) is amended by 
adding at the end the following:
    ``(tt) Encouraging Innovation in United States Manufacturing.--In 
carrying out this section, the Administrator shall--
            ``(1) ensure that, in selecting small business concerns to 
        participate in SBIR or STTR programs under this section, 
        Federal agencies give high priority to small manufacturing 
        companies and other small business concerns that are engaged in 
        manufacturing research and development for the purpose of 
        developing and producing new products and technologies in the 
        United States; and
            ``(2) include in the annual report to Congress under 
        subsection (b)(7) a determination of whether the priority 
        described in paragraph (1) is being carried out.''.

SEC. 11. ENCOURAGING INNOVATION IN CYBERSECURITY.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
section 10 of this Act, is further amended by adding at the end the 
following:
    ``(uu) Encouraging Innovation in Cybersecurity.--In carrying out 
this section, the Administrator shall--
            ``(1) ensure that, in selecting small business concerns to 
        participate in SBIR or STTR programs under this section, 
        Federal agencies give high priority to small business concerns 
        that are engaged in cybersecurity research and development, for 
        the purpose of developing and implementing technology services 
        and products to strengthen the security of United States 
        Government and private computer systems, including software, 
        hardware, and portable devices; and
            ``(2) include in the annual report to Congress under 
        subsection (b)(7) a determination of whether the priority 
        described in paragraph (1) is being carried out.''.

SEC. 12. INNOVATIVE APPROACHES TO TECHNOLOGY TRANSFER.

    Section 9(jj) of the Small Business Act (15 U.S.C. 638(jj)) is 
amended to read as follows:
    ``(jj) Innovative Approaches to Technology Transfer.--
            ``(1) Grant program.--
                    ``(A) In general.--Each Federal agency required by 
                subsection (n) to establish an STTR program shall carry 
                out an Innovative Approaches to Technology Transfer 
                Grant Program (hereinafter referred to as a `Program') 
                to support innovative approaches to technology transfer 
                at institutions of higher education (as defined in 
                section 101(a) of the Higher Education Act of 1965 (20 
                U.S.C. 1001(a)), nonprofit research institutions, and 
                Federal laboratories in order to accelerate the 
                commercialization of federally funded research and 
                technology by small business concerns, including new 
                businesses.
                    ``(B) Awarding of grants to qualifying 
                institutions.--
                            ``(i) In general.--Each Federal agency 
                        described in subparagraph (A) shall provide 
                        grants, through a competitive, merit-based 
                        process, in the amounts listed in subparagraph 
                        (C)(i) to institutions of higher education, 
                        technology transfer organizations that 
                        facilitate the commercialization of 
                        technologies developed by one or more such 
                        institutions of higher education, Federal 
                        laboratories, other public and private 
                        nonprofit entities, and consortia thereof, for 
                        initiatives that help identify high-quality, 
                        commercially viable federally funded research 
                        and technologies and to facilitate and 
                        accelerate their transfer into the marketplace.
                            ``(ii) Selection process and 
                        applications.--Qualifying institutions seeking 
                        a grant under this subsection shall submit an 
                        application to a Federal agency described in 
                        subparagraph (A) at such time, in such manner, 
                        and containing such information as the agency 
                        may require. The application shall include, at 
                        a minimum--
                                    ``(I) a description of innovative 
                                approaches to technology transfer, 
                                technology development, and commercial 
                                readiness that have the potential to 
                                increase or accelerate technology 
                                transfer outcomes and can be adopted by 
                                other qualifying institutions, or a 
                                demonstration of proven technology 
                                transfer and commercialization 
                                strategies, or a plan to implement 
                                proven technology transfer and 
                                commercialization strategies, that can 
                                achieve greater commercialization of 
                                federally funded research and 
                                technologies with Program funding;
                                    ``(II) a description of how the 
                                qualifying institution will contribute 
                                to local and regional economic 
                                development efforts; and
                                    ``(III) a plan for sustainability 
                                beyond the duration of the funding 
                                award.
                            ``(iii) Use of funds.--Activities supported 
                        by grants under this subsection may include--
                                    ``(I) providing early-stage proof 
                                of concept funding for translational 
                                research;
                                    ``(II) identifying research and 
                                technologies at recipient institutions 
                                that have the potential for accelerated 
                                commercialization;
                                    ``(III) technology maturation 
                                funding to support activities such as 
                                prototype construction, experiment 
                                analysis, product comparison, and 
                                collecting performance data;
                                    ``(IV) technical validations, 
                                market research, clarifying 
                                intellectual property rights position 
                                and strategy, and investigating 
                                commercial and business opportunities; 
                                and
                                    ``(V) programs to provide advice, 
                                mentoring, entrepreneurial education, 
                                project management, and technology and 
                                business development expertise to 
                                innovators and recipients of technology 
                                transfer licenses to maximize 
                                commercialization potential.
                            ``(iv) Program oversight board.--
                                    ``(I) In general.--Successful 
                                applications required under clause (ii) 
                                shall include a plan to assemble a 
                                Program Oversight Board, the members of 
                                which shall have technical, scientific, 
                                or business expertise and shall be 
                                drawn from industry, start-up 
                                companies, venture capital, technical 
                                enterprises, financial institutions, 
                                and business development organizations.
                                    ``(II) Project awards.--A Program 
                                Oversight Board shall--
                                            ``(aa) establish award 
                                        programs for individual 
                                        projects;
                                            ``(bb) provide rigorous 
                                        evaluation of project 
                                        applications;
                                            ``(cc) determine which 
                                        projects should receive awards, 
                                        in accordance with guidelines 
                                        established by the Board;
                                            ``(dd) establish milestones 
                                        and associated award amounts 
                                        for projects that reach 
                                        milestones;
                                            ``(ee) determine whether 
                                        awarded projects are reaching 
                                        milestones; and
                                            ``(ff) develop a process to 
                                        reallocate outstanding award 
                                        amounts from projects that are 
                                        not reaching milestones to 
                                        other projects with more 
                                        potential.
                    ``(C) Grant and award amounts.--
                            ``(i) Grant amounts.--Each Federal agency 
                        described in subparagraph (A) may make grants 
                        under subparagraph (B) to qualifying 
                        institutions for up to $1,000,000 per year for 
                        up to 3 years.
                            ``(ii) Award amounts.--Each qualifying 
                        institution that receives a grant under 
                        subparagraph (B) shall provide awards for 
                        individual projects of not more than $150,000, 
                        to be provided in phased amounts, based on 
                        reaching the milestones established by the 
                        qualifying institution's Program Oversight 
                        Board.
                    ``(D) Authorized expenditures for the program.--
                            ``(i) Percentage.--The percentage of the 
                        extramural budget that each Federal agency 
                        described under subparagraph (A) expends on a 
                        Program shall be--
                                    ``(I) 0.05 percent for each of 
                                fiscal years 2018 and 2019; and
                                    ``(II) 0.1 percent for each of 
                                fiscal years 2020 and 2021.
                            ``(ii) Treatment of expenditures.--Any 
                        portion of the extramural budget expended by a 
                        Federal agency on a Program shall apply towards 
                        the agency's expenditure requirements under 
                        subsection (n).
            ``(2) Program evaluation and data collection and 
        dissemination.--
                    ``(A) Evaluation plan and data collection.--Each 
                Federal agency required by paragraph (1)(A) to 
                establish a Program shall develop a program evaluation 
                plan and collect, annually, such information from 
                grantees as is necessary to assess the Program. Program 
                evaluation plans shall require the collection of data 
                aimed at identifying outcomes resulting from the 
                transfer of technology with assistance from the 
                Program, such as--
                            ``(i) specific follow-on funding identified 
                        or obtained, including follow-on funding 
                        sources, such as Federal sources or private 
                        sources;
                            ``(ii) the number of projects which result 
                        in a license to a start-up company or an 
                        established company with sufficient resources 
                        for effective commercialization within 5 years 
                        of receiving an award under paragraph 
                        (1)(C)(ii);
                            ``(iii) invention disclosures and patents;
                            ``(iv) the number of projects supported by 
                        qualifying institutions receiving a grant under 
                        paragraph (1)(C)(i) that secure Phase I or 
                        Phase II SBIR or STTR awards;
                            ``(v) available information on revenue, 
                        sales, or other measures of products that have 
                        been commercialized as a result of projects 
                        awarded under paragraph (1)(C)(ii);
                            ``(vi) the number and location of jobs 
                        created resulting from projects awarded under 
                        paragraph (1)(C)(ii); and
                            ``(vii) other data as considered 
                        appropriate by a Federal agency required by 
                        this subparagraph to develop a program 
                        evaluation plan.
                    ``(B) Evaluative report to congress.--The head of 
                each Federal agency that has a Program shall submit to 
                the Committee on Science, Space, and Technology and the 
                Committee on Small Business of the House of 
                Representatives and the Committee on Small Business and 
                Entrepreneurship of the Senate an evaluative report 
                regarding the activities of the Program. The report 
                shall include--
                            ``(i) a detailed description of the 
                        implementation of the Program;
                            ``(ii) a detailed description of the 
                        grantee selection process;
                            ``(iii) an accounting of the funds used in 
                        the Program; and
                            ``(iv) a summary of the data collected 
                        under subparagraph (A).
                    ``(C) Data dissemination.--For purposes of Program 
                transparency and dissemination of best practices, the 
                Administrator shall include, on the public database 
                under subsection (k)(1), information on the Program, 
                including--
                            ``(i) the program evaluation plan required 
                        under subparagraph (A);
                            ``(ii) a list of recipients of awards under 
                        paragraph (1)(C)(ii); and
                            ``(iii) information on the use of grants 
                        under paragraph (1)(C)(i) by recipient 
                        institutions.''.
                                                 Union Calendar No. 223

115th CONGRESS

  1st Session

                               H. R. 2763

                  [Report No. 115-313, Parts I and II]

_______________________________________________________________________

                                 A BILL

     To amend the Small Business Act to improve the Small Business 
  Innovation Research program and Small Business Technology Transfer 
                    program, and for other purposes.

_______________________________________________________________________

                           September 14, 2017

    Reported from the Committee on Small Business with an amendment

                           September 14, 2017

 Reported from the Committee on Science, Space, and Technology with an 
 amendment, committed to the Committee of the Whole House on the State 
                of the Union, and ordered to be printed