[Congressional Record Volume 145, Number 127 (Monday, September 27, 1999)]
[House]
[Pages H8762-H8767]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 SMALL BUSINESS INNOVATION RESEARCH PROGRAM REAUTHORIZATION ACT OF 1999

  Mrs. KELLY. Madam Speaker, I move to suspend the rules and pass the 
bill (H.R. 2392) to amend the Small Business Act to extend the 
authorization for the Small Business Innovation Research Program, and 
for other purposes, as amended.
  The Clerk read as follows:

[[Page H8763]]

                               H.R. 2392

       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 Program Reauthorization Act of 1999''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) the small business innovation research program 
     established under the Small Business Innovation Development 
     Act of 1982 and reauthorized by the Small Business Research 
     and Development Enhancement Act of 1992 (in this section 
     referred to as the ``SBIR program'') is highly successful in 
     involving small businesses in federally funded research and 
     development;
       (2) the SBIR program made the cost-effective and unique 
     research and development capabilities possessed by the small 
     businesses of this Nation available to Federal agencies and 
     departments;
       (3) the innovative goods and services developed by small 
     businesses that participated in the SBIR program have 
     produced innovations of critical importance in a wide variety 
     of high-technology fields, including biology, medicine, 
     education, and defense;
       (4) the SBIR program is a catalyst in the promotion of 
     research and development, the commercialization of innovative 
     technology, the development of new products and services, and 
     the continued excellence of this Nation's high-technology 
     industries; and
       (5) the continuation of the SBIR program will provide 
     expanded opportunities for one of the Nation's vital 
     resources, its small businesses, will foster invention, 
     research, and technology, will create jobs, and will increase 
     this Nation's competitiveness in international markets.

     SEC. 3. EXTENSION OF SBIR PROGRAM.

       Section 9(m) of the Small Business Act (15 U.S.C. 638(m)) 
     is amended to read as follows:
       ``(m) Termination.--The authorization to carry out the 
     Small Business Innovation Research Program established under 
     this section shall terminate on September 30, 2007.''.

     SEC. 4. ANNUAL REPORT.

       Section 9(b)(7) of the Small Business Act (15 U.S.C. 
     638(b)(7)) is amended by striking ``and the Committee on 
     Small Business of the House of Representatives'' and 
     inserting ``, and to the Committee on Science and the 
     Committee on Small Business of the House of 
     Representatives,''.

     SEC. 5. THIRD PHASE ASSISTANCE.

       Section 9(e)(4)(C)(i) of the Small Business Act (15 U.S.C. 
     638(e)(4)(C)(i)) is amended by striking ``; and'' and 
     inserting ``; or''.

     SEC. 6. RIGHTS TO DATA.

       Section 9(j) of the Small Business Act (15 U.S.C. 638(j)) 
     is amended by adding at the end the following:
       ``(3) Additional modifications.--Not later than 90 days 
     after the enactment of the Small Business Innovation Research 
     Program Reauthorization Act of 1999, the Administrator shall 
     modify the policy directives issued pursuant to this 
     subsection to clarify that the rights provided for under 
     subparagraph (2)(A) of this subsection apply to all Federal 
     funding awards falling under the definitions of `first 
     phase', `second phase', or `third phase', as specified in 
     subsection (e)(4).''.

     SEC. 7. REPORT ON PROGRAMS FOR ANNUAL PERFORMANCE PLAN.

       Section 9(g) of the Small Business Act (15 U.S.C. 638(g)) 
     is amended--
       (1) in paragraph (7), by striking ``and'' at the end;
       (2) in paragraph (8), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(9) include, as part of its annual performance plan as 
     required by subsections (a) and (b) of section 1115 of title 
     31, United States Code, a section on its SBIR program, and 
     shall submit such section to the Committee on Small Business 
     of the Senate, and the Committee on Science and the Committee 
     on Small Business of the House of Representatives.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
New York (Mrs. Kelly) and the gentlewoman from California (Ms. 
Millender-McDonald) each will control 20 minutes.
  The Chair recognizes the gentlewoman from New York (Mrs. Kelly).
  Mrs. KELLY. Madam Speaker, I yield myself such time as I may consume.
  Madam Speaker, I rise today to ask my colleagues to support H.R. 
2392, the Small Business Innovation and Research Program 
Reauthorization Act of 1999. The Small Business Innovation and Research 
Program was established in 1982 as a vehicle for helping give small 
businesses the most dynamic and innovative segment of our economy 
access to millions of dollars of Federal research and development 
funds.
  The SBIR program operates at every Federal agency with an extramural 
research budget of more than $100 million and offers funding to small 
businesses in three phases: phase one, the initial research and 
development; phase two, continuing research for the most promising 
projects; and, phase three, the final assistance for moving 
technologies to the Federal procurement marketplace and to the private 
sector.
  The result has been an unqualified success. Small businesses given 
access to these Federal dollars have created exciting new technologies, 
created new jobs along with them, and helped expand their business and 
our economy.
  Let me give my colleagues just one example. PCA, Incorporated, a 
small company in New York, has developed, through the SBIR program, new 
quality-assurance software that is being used in almost every system at 
the Department of Defense. This innovative software allows our armed 
forces to debug the software and check the metrics in every software 
system they have from the on-board systems in an F-16 fighter to the 
navigation systems in all of the Navy's attack submarines, new 
technology that will enable the Navy to protect our country.
  That is the SBIR program, harnessing the entrepreneurial spirit and 
technological skill of small business and putting it to work in 
defense, medicine, and commerce.
  Let me briefly describe the provisions of H.R. 2392. It has 10 
provisions, not including the short title. Section 2 of H.R. 2392 
expresses the sense of Congress regarding the overwhelming success of 
the SBIR program.
  Section 3 will authorize the SBIR program for 7 years.
  Section 4 includes the Committee on Science in certain reporting 
requirements regarding the SBIR program.
  Section 5 clarifies the funding requirements for third-phase 
participation in the SBIR program.
  Section 6 requires the SBA to clarify, through policy directives, the 
rights and technical data that are granted to SBIR awardees.
  Section 7 requires that agencies participating in SBIR include the 
program in their annual performance plans.
  Sections 8 through 11 are new provisions, added with the bipartisan 
cooperation and assistance of our colleagues at the Committee on 
Science.
  Section 8 provides for the creation of a database to compile 
information on the project's funding through the SBIR program. It also 
contains technical corrections to improve the data collection currently 
required by the program.
  Section 9 authorizes the SBA to issue new policy directives to SBIR 
program managers at the various Federal agencies. These new directives 
would allow them to increase under certain situations the funding 
levels provided to small businesses in phase 2 of SBIR.
  Section 10 will require SBIR to phase 2 award winners to file a 
commercial plan detailing their marketing strategies and plans for the 
new technologies they are developing.
  Finally, section 11 of H.R. 2392 will authorize the National Research 
Council, in consultation with the SBA Office of Advocacy and other 
interested parties, to conduct a comprehensive study of the SBIR 
program.
  Mr. Speaker, these are all simple, common sense improvements to a 
successful program with strong congressional support. This support is 
exemplified by H.R. 2392's 7-year reauthorization, which is a serious 
commitment to this program.
  The Committee on Small Business believes that this extended 
authorization will allow SBIR program managers to plan for future 
years' activities without concern over the status of the program.
  In closing, let me urge all of my colleagues to support H.R. 2392 and 
the SBIR program. This is an outstanding program which enables small 
businesses to contribute to our economy, health, and national defense. 
It deserves our continued support and this reauthorization.
  Madam Speaker, I reserve the balance of my time.
  Ms. MILLENDER-McDONALD. Madam Speaker, I yield myself such time as I 
may consume.
  Madam Speaker, today we will be considering H.R. 2392, the Small 
Business Innovation Research Act of 1999, SBIR. One of the most 
important jobs for us serving on the Committee on Small Business is to 
provide small businesses with every opportunity to succeed. This 
bipartisan piece of legislation does just that. It levels the playing 
field for small businesses engaging in research and development, 
providing them with the tools they need to succeed in today's 
technologically intensive market.
  America is currently experiencing one of the longest periods of 
economic

[[Page H8764]]

growth in its history. One of the biggest reasons for this unparalleled 
economic growth is the innovation and technological advances made by 
our small businesses. Our small entrepreneurs have always been at the 
forefront of technological research and innovation. There are many 
reasons for this, ranging from lower costs, greater flexibility, and 
closer contact with customers to a greater willingness to engage in 
high-risk research and development products.
  Despite their remarkable track record, however, small firms often 
lack the capital or the access to the Federal research and development 
budgets they need to transform a great idea into a commercial success.
  To strengthen and expand the competitiveness of U.S. small business 
technology in the Federal marketplace, a Democratic Congress 
established the Small Business Innovation Research Program in 1982. The 
goal of the SBIR program is to strengthen the role of small innovative 
firms in federally funded research and development.
  Under this program, Federal agencies with extramural research budgets 
in excess of $100 million per year set aside a small part of their R&D 
budget, currently 2.5 percent, for innovative small firms. SBIR 
provides an information pipeline to the high technology small business 
community, and gives small businesses an unrivaled opportunity to 
produce cutting-edge research and development and take their findings 
to the marketplace.
  Comparatively, this is a small amount. Since its inception, the SBIR 
program has a proven record of bringing high-quality products and 
services to the market.
  One of the most important areas SBIR has helped is in the war against 
cancer by providing breakthroughs in the areas of medicine, 
pharmaceuticals, and the environment.
  For example, through R&D funds from the National Cancer Institute 
facilitated by the SBIR program, GMA Industries has engaged in several 
projects that have led to technological innovations resulting in lower 
costs that are significantly under industry norms for document imaging 
and capture and database development.
  Additionally, thanks to this program, jobs have been created, the 
economy has grown and America has remained at the forefront of 
innovation.
  INC Magazine has even called the SBIR program the most important 
piece of small business legislation yet enacted in our lifetime.
  Small businesses may not have the huge budgets that some larger firms 
have, but what they lack in size they make up in ideas.
  What this program does is level the playing field. This program gives 
most of those with the ideas, but lacking resources, an opportunity to 
develop their innovations.

                              {time}  1500

  It makes sure that those ideas are looked at and funded. SBIR and its 
participants keep this Nation ahead of the curve and ahead of the 
world.
  As a testament to its success, SBIR has been modeled and copied by 
several countries around the world. Representatives from the 
governments throughout the world come here to study this program so 
they can implement it back to their own countries.
  The legislation we have before us today will reauthorize SBIR for 7 
years and make some minor technical changes. Even though authorization 
does not lapse until October of 2000, it is critical that we act, Madam 
Speaker, now so that participating agencies are able to properly 
develop guidelines and assess their research needs to ensure that 
America's cutting edge firms continue to have opportunities available 
to them.
  The other changes made by this legislation will allow small firms to 
continue research on marketable ideas developed under their grant, 
providing them with the continuity that firms working on research and 
development need.
  The SBIR program has proven to be an essential element for our 
Nation's growing technological sectors. Both sides have worked closely 
on this issue because both sides agree that this is an essential 
program for the success of small firms.
  I urge by colleagues to cast a ``yes'' vote on this bipartisan piece 
of legislation that will ensure our small firms having a level playing 
field in the high technology market.
  I would like to thank the gentleman from Missouri (Mr. Talent), 
chairman, and the gentlewoman from New York (Ms. Velazquez), ranking 
member, for their tenacity in bringing this bipartisan bill to us.
  Madam Speaker, I reserve the balance of my time.
  Mrs. KELLY. Madam Speaker, I have no speakers at this time, and I 
reserve the balance of my time.
  Ms. MILLENDER-McDONALD. Madam Speaker, I yield 3 minutes to the 
gentleman from New York (Mr. LaFalce), the former ranking member on the 
Committee on Small Business.
  (Mr. LaFALCE asked and was given permission to revise and extend his 
remarks.)
  Mr. LaFALCE. Madam Speaker, I am especially pleased to rise today in 
support of H.R. 2392, the bill reauthorizing the Small Business 
Innovation Research Program. This bill is particularly meaningful for 
me for, about 17 years ago, I authored and managed floor consideration 
of the bill that created the SBIR program. We were on the House floor 
in a hotly contested issue at that time for 3 days. But with the help 
of Members from both sides of the aisle, the small business community 
won a major victory.
  The purpose of the SBIR program was and is to strengthen the role of 
the small innovative firms in federally funded research and development 
and to utilize Federal research and development as a base for 
technological innovation to meet agency needs and to contribute to the 
growth and strength of our Nation's economy.
  We can look back with great pride in what we accomplished over the 
past 17 years because the SBIR program, during that period, has 
established itself as perhaps the most effective technology program in 
the Federal Government. Study after study by the GAO and SBA show that 
this program has generated a remarkable amount of innovation by small 
companies.
  According to an April 1998 GAO study, nearly 50 percent of SBIR 
research is commercialized or receives additional research and 
development funding. That is a very competitive success rate. It is 
also a great example of Federal agencies working together with small 
businesses to develop technologies to solve specific problems and fill 
procurement needs in a cost effective way.
  But the significance of the program transcends the small business 
community and the Federal R&D effort. It goes to the much larger issue 
of long-term economic growth in our country. In the effort to continue 
long-term growth, nothing is more important than new technology. 
According to growth accounting studies, technological advances account 
for nearly 50 percent of the growth in GNP per person.
  In short, the SBIR program creates jobs, increases our capacity for 
technological innovation, and boosts our international competitiveness. 
It certainly should be reauthorized.
  Mrs. KELLY. Madam Speaker, I yield 5 minutes to the gentlewoman from 
Maryland (Mrs. Morella).
  Mrs. MORELLA. Madam Speaker, I thank the gentlewoman from New York 
for yielding me the time, and I thank her for her work on this 
legislation and her work on the Committee on Small Business. I also 
thank the ranking member of the committee.
  Madam Speaker, today I rise in support of H.R. 2392. This is a bill 
to reauthorize the Small Business Innovation Research Program called 
SBIR. The SBIR program expires on September 30 of next year.
  Now, within H.R. 2392, the Small Business Technology Transfer will be 
reauthorized at its current set-aside level through fiscal year 2006.
  My Subcommittee on Technology of the Committee on Science held a 
hearing on SBIR this past summer. I am pleased that provisions worked 
on by the committee have been incorporated into H.R. 2392.
  So on behalf of the Committee on Science, the gentleman from 
Wisconsin (Chairman Sensenbrenner), the gentleman from Texas (Mr. 
Hall), the ranking member, as well as the gentleman from Michigan (Mr. 
Barcia), ranking member of the Subcommittee on Technology, and myself, 
I want to thank the gentleman from Missouri

[[Page H8765]]

(Mr. Talent), chairman of the Committee on Small Business, and the 
gentlewoman from New York (Ms. Velazquez), the ranking member, for the 
effective and bipartisan work that was done by both the Committee on 
Science and the Committee on Small Businesses.
  H.R. 2392 requires any small business that applies for a Phase II 
award submit a commercialization plan with their application. The plan 
is not intended to be submitted separate from the proposal, nor is it 
to be as elaborate as a formal business plan. It is merely to ensure 
that the small business has thought through the commercialization 
process, whether it ends up on the marketplace shelves or is procured 
by the funding agency.
  It should be noted that any work done under SBIR for agency mission 
purposes would be considered commercialization and would require a 
commercialization plan under this provision.
  H.R. 2392 also includes a comprehensive study and review of the 
current operation and functions of the SBIR program. Aside from GAO 
reports on the SBIR program, very little outside academic review has 
been published about the program.
  SBIR is a very important tool of innovation within the small business 
community, and its impact in developing leading-edge technology is well 
documented through success stories shared with both committees.
  However, the study required in this legislation is an attempt to 
investigate SBIR's impact by looking at how it stimulated the 
technological innovation of small businesses and has assisted small 
businesses in meeting the research and development needs of the 
participating agencies.
  These are primary goals of the SBIR program, and by conducting a 
comprehensive study, Congress will be better able to understand how the 
program is advancing them.
  Also included in the legislation is a requirement that the Small 
Business Administration keep an up-to-date database on SBIR awards. The 
database is intended solely for purposes of evaluation. It asks that 
the basic information needed to evaluate the SBIR program be kept in an 
electronic format.
  There has been some concern that keeping commercialization statistics 
will not reflect the program's true record of success because it will 
unfairly include those projects that are not geared toward 
commercialization but still within the mission of SBIR such as research 
development.
  This is remedied within the database itself. For instance, the 
government database requires that each second phase award contain 
information on the revenue generated by that product or service unless 
it is a research or research development service. Such a distinction 
can be made at the time the information is input into the system, thus 
avoiding unfair evaluation of those awards.
  Madam Speaker, H.R. 2392 is a bill that continues the success of SBIR 
and provides for some important reforms to improve this worthwhile 
program. I urge my colleagues to support its passage.
  Ms. MILLENDER-McDONALD. Madam Speaker, I yield 3 minutes to the 
gentlewoman from the Virgin Islands (Mrs. Christensen).
  Mrs. CHRISTENSEN. Madam Speaker, I rise today in support of H.R. 
2392, the Small Business Innovative Research Program Reauthorization. I 
want to take this opportunity to commend my colleagues, the gentlewoman 
from California (Ms. Millender-McDonald), the gentlewoman from New York 
(Mrs. Kelly), the gentlewoman from New York (Ms. Velazquez), our 
ranking member, and the gentleman from Missouri (Mr. Talent) for their 
hard work and leadership on our committee.
  The SBIR research program is one of the most effective and successful 
technology programs for entrepreneurs. Today's vote will take us one 
step closer to extending the program for another 7 years.
  Without research and development budgets, small businesses rely on 
the SBIR program to help them fund important innovative research and 
development. As a member of the Committee on Small Business and ranking 
member on the Subcommittee on Rural Enterprises, Business Opportunities 
and Special Small Business Problems, it is my priority to ensure that 
small businesses continue to have every opportunity to succeed and that 
our government is a partner in that endeavor. An important part of this 
effort is the continued funding of SBIR.
  Agency programs report that SBIR awards are much more likely to 
result in commercial products than other government-funded programs. In 
addition, approximately 12 percent of the SBIR awards made under the 
program are given to minority and disadvantaged businesses. This 
translates into over $850 million since the program began, providing 
real opportunities for many businesses that might not otherwise have 
this funding.
  As we have seen with companies such as Microsoft and others, small 
businesses provide the innovation that makes this country the leader in 
technological advances. SBIR has helped companies create innovations in 
medical and pharmaceutical research to fight cancer and other diseases. 
These advances have not only enhanced business performance domestically 
and helped companies increase their export sales, but they have helped 
countless individuals and their families to live healthier, longer, and 
better lives.
  SBIR is a win-win situation. I am pleased to support H.R. 2392 
through which Congress would do more to ensure that valuable research 
dollars continue to be available to small businesses, and I ask for the 
support of my colleagues.
  Ms. MILLENDER-McDONALD. Madam Speaker, I yield myself the balance of 
my time.
  Madam Speaker, a little while ago in a major address, Alan Greenspan 
credited our Nation's productivity advances as a major contributor of 
the Nation's phenomenal economic performance. Booming economic growth 
without inflation is impossible to sustain without productivity gains. 
At the center of productivity is new superior technology. Technological 
advances accounts for nearly 50 percent of growth in GNP per person 
employed. It is small businesses that deliver new innovations more 
effectively and efficiently.
  The National Science Foundation found, for example, that the cost of 
R&D is significantly lower in small firms than in large ones. Another 
series of studies found that small firms are more innovative per dollar 
or per employee than other R&D sources. Simply put, Madam Speaker, the 
taxpayer gets more bang for his or her bucks when small dynamic 
companies do the job.
  This should not surprise us, Madam Speaker. The SBIR program is one 
of the most competitive programs there is for research. The Federal 
managers for the program have told us that the research done is at 
least as good as and in some cases superior to the research they would 
get from traditional sources and that SBIR awards are much more likely 
to result in commercial products than other government-funded R&D.

                              {time}  1515

  During our hearings we discovered that the private sector awards of 
R&D to small businesses in the marketplace has indeed been growing at a 
rapid pace.
  Finally, Madam Speaker, the Small Business Development Innovation 
Research Program, created 18 years ago, has remained one of the most 
effective technology programs in the Federal Government. Repeatedly 
studied by GAO, the SBA, and individual Federal agencies, the program 
has shown strong performance and has given remarkable impetus to the 
technological innovation that feeds growth. Its purpose remains meeting 
the Federal Government's research and development needs, and no one can 
question that it does just that.
  I do urge my colleagues to vote in favor of this important bipartisan 
piece of legislation that allows our Nation's most innovative small 
firms to have a level playing field in this highly competitive market. 
It is to all America's benefit to see our small businesses succeed, 
because they are a driving force in our economy.
  Madam Speaker, I have no further requests for time, and I yield back 
the balance of my time.
  Mrs. KELLY. Madam Speaker, I yield myself such time as I may consume.

[[Page H8766]]

  In closing, Madam Speaker, I would like to thank the chairman of the 
Committee on Small Business, the gentleman from Missouri (Mr. Talent). 
I would also like to thank the committee's ranking member, the 
gentlewoman from New York (Ms. Velazquez). And I would also like to 
thank the gentlewoman from California, the chairman, and ranking 
members of the Committee on Science and the committee staffs of both 
committees who have worked on this piece of legislation.
  Mr. UDALL of Colorado. Madam Speaker, I rise in support of H.R. 2392, 
the Small Business Innovation Research Program Authorization of 1999 
and urge its adoption.
  The SBIR program was established by the Small Business Innovation 
Development Act in 1982, based on a successful pilot program at the 
National Science Foundation. Today's vote takes us one step closer to 
extending this valuable program for another 7 years.
  Mr. Speaker, Colorado is home to many cutting-edge small businesses. 
As creative as these companies are, they often struggle to come up with 
the funds necessary to refine their ideas, turn them into products, and 
to take those products to the commercial marketplace. Along the Front 
Range of Colorado we have experienced tremendous growth in high-tech 
businesses during the last decade. I feel that the tremendous high-tech 
growth we have enjoyed can be directly traced to the hundreds of SBIR 
recipients working in our region.
  The Small Business Innovation Research Program has filled a real need 
for these companies over the years. Although the main purpose of the 
program remains meeting the federal government's research and 
development needs, small businesses have turned SBIR-inspired research 
into commercial products that have improved our economy and scientific 
advances that have helped to improve the health of people everywhere.
  We have made some improvements in the bill as introduced which are 
supported by the National Venture Capital Association. Venture 
capitalists have told us that they look at the quality of the 
management team as much or more than the quality of the product to be 
commercialized when funding a start-up company. They feel there is much 
more to commercial success than a great idea. This is why H.R. 2392 
asks each Phase II applicant to submit a commercialization plan to show 
that in addition to thinking through what it will take to achieve 
technological success, each Phase II awardee is planning for commercial 
success as well. If the company plans to license a successful 
technology, the plan will need to describe how it plans to locate the 
licensee and get the technology to the point where it meets the 
licensee's needs. If the company plans to do its own manufacturing, the 
plan should describe the steps the company will take to acquire 
manufacturing expertise. These plans are not meant to be long, 
exhaustive, or burdensome to the companies. Rather, they are just meant 
to show that commercialization is being taken seriously and that there 
is a good chance the product developed under SBIR will penetrate 
intended markets. Of course, if the problem being addressed is unique 
to the government, the company's commercialization plan should be 
geared to penetrating the federal procurement system or otherwise 
meeting the needs of the government customer.
  Madam Speaker, the SBIR program simply seeks to level the playing 
field for small businesses. Small businesses might not have the 
colossal R&D departments that some larger businesses have, but they do 
have the colossal ideas. SBIR makes sure those ideas are looked at and 
funded. I urge my colleagues to vote ``yes'' on extending this 
important program.
  Ms. JACKSON-LEE of Texas. Madam Speaker, I rise to strongly support 
this measure. As Calvin Coolidge once wrote, ``The chief business of 
the American people is business.'' I wholeheartedly agree. But we must 
acknowledge that all sectors of our society must have equal access to 
the business world, not just big businesses. To achieve such a goal, it 
is vitally important that we provide opportunities for small, minority-
owned, and women-owned businesses.
  This bill reauthorizes the Small Business Innovation Research 
Program, SBIR, a program that assists small businesses in obtaining 
federal research and development funding. This program also was formed 
to bolster the involvement of minority and disadvantaged persons in 
technological innovation and to help small businesses meet federal 
research and development needs.
  I have always been an advocate of small business opportunities for 
minority and disadvantaged persons in technological innovation. In an 
effort to provide even greater opportunities, I sponsored an amendment 
that passed in the House that incorporated Historically Black Colleges 
and Universities and Hispanic Serving Institutions in the language of 
the FAA Authorization Act of 1997. This amendment targeted research at 
institutions that involved undergraduates in their research on subjects 
of relevance to the FAA.
  Almost four million Texans work in businesses with less than 500 
employees, generating a total payroll of about $100 billion a year. 
This sector of business is growing. From 1992 to 1996, small businesses 
have added 162,201 new jobs. In 1998, Texas businesses with less than 
100 employees employed 42.4 percent of the Texas, non-farm workforce, 
up from 40.6 percent in 1996. Small and medium businesses account for 
more than 67 percent of the Texas workforce.
  Minority-owned businesses are another fast growing segment of the 
business world. In 1997, our nation's more than 3.2 million minority-
owned businesses generated $495 billion in revenues and employed nearly 
4 million workers. From 1987 to 1997, the number of minority-owned 
firms increased 168 percent while their revenues and employees grew 
nearly twice as fast.
  Sadly, minority-owned businesses traditionally have not received a 
fair share of contracting dollars. In 1996, small disadvantaged 
businesses had the ability to capture 40.2 percent of the contracting 
dollars but were actually awarded only 26.4 percent. We must provide 
more opportunities for these minority-owned businesses.
  Women-owned businesses are equally important. As of 1999, there are 
9.1 million women-owned businesses in the United States, employing over 
27.5 million people and generating over $3.6 trillion in sales. Between 
1987 and 1999, the number of women-owned firms increased by 103 percent 
nationwide, employment increased by 320 percent, and sales grew by 436 
percent. As of 1999, women-owned firms accounted for 38 percent of all 
firms in the United States.
  We must assist and advocate small businesses, minority-owned 
businesses, and women-owned businesses. Not only do these businesses 
provide jobs for our citizens, but they also bolster our nation's 
strong economy. To ignore such an important sector of our nation would 
be a grave misjudgment on our part. For that reason, I urge my 
colleagues to support this bill.
  Mr. SENSENBRENNER. Madam Speaker, I rise today in support of H.R. 
2392, a bill to reauthorize the Small Business Innovation Research, 
SBIR, program through Fiscal Year 2006. As Chairman of the House 
Science Committee, I am pleased that H.R. 2392 continues to recognize 
the important role that small businesses play in supporting federal 
research and development efforts.
  SBIR is designed to promote innovation in federal research by 
increasing the participation of small businesses across the country 
through a 2.5 percent set-aside of an agency's extramural R&D budget. 
Currently, 10 federal agencies participate in the SBIR program.
  In order to allow H.R. 2392 to move forward expeditiously, the 
Committee on Small Business agreed to incorporate into the legislation 
certain provisions authored by the Science Committee. The provisions 
are of importance to the science community and allow for greater 
accountability of the multibillion-dollar program.
  For example, H.R. 2392 takes important steps to enhance Congressional 
oversight by requiring each agency that participates in the SBIR 
program to submit to Congress a performance plan consistent with the 
Government Performance and Results Act.
  Next, the Small Business Administration will be required to maintain 
an electronic database that will enable Congress, the Administration, 
and participating agencies to accurately evaluate the program's 
performance.
  In that same light of evaluation, H.R. 2392 calls for the National 
Research Council to conduct a comprehensive review of the SBIR program. 
This review follows up on the earlier report done by the NRC at the 
request of the Science Committee, on how best to evaluate federal 
research and development. The SBIR study should use that report as its 
guideline in developing its evaluation methods.
  Finally, the bill also allows for awards to exceed the Phase I and 
Phase II caps on time and duration, provided that the awarding agency 
justifies such action to the Administration. Preference is to be given 
to small businesses that have commitments for second and third phase 
funding from sources outside the SBIR program. This provision improves 
the program's administrative flexibility.
  I would like to thank the Ranking Member of the Science Committee, 
Mr. Hall, the Chairwoman of the Subcommittee on Technology, Mrs. 
Morella, and the Ranking Member Mr. Barcia for their work in bringing 
this bill to the floor. I would also like to thank the Chairman of the 
Small Business Committee, Mr. Talent, and Ranking Member Ms. Velazquez, 
for working with the Science Committee.
  Madam Speaker, H.R. 2392 is a good bill and I urge all members to 
support its swift enactment.
  Mrs. KELLY. Madam Speaker, I have no further requests for time, and I 
yield back the balance of my time.

[[Page H8767]]

  The SPEAKER pro tempore (Mrs. Biggert). The question is on the motion 
offered by the gentlewoman from New York (Mrs. Kelly) that the House 
suspend the rules and pass the bill, H.R. 2392, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

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