[Congressional Record Volume 167, Number 194 (Thursday, November 4, 2021)]
[Senate]
[Pages S7924-S7925]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 4416. Mr. COONS submitted an amendment intended to be proposed by 
him to the bill H.R. 4350, to authorize appropriations for fiscal year 
2022 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe military personnel strengths for such fiscal year, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. COMMERCIALIZATION ACTIVITIES IN THE SBIR AND STTR 
                   PROGRAMS.

       (a) Improvements to Commercialization Selection.--
       (1) In general.--Section 9 of the Small Business Act (15 
     U.S.C. 638) is amended--
       (A) in subsection (g)--
       (i) in paragraph (4)(B)(i), by striking ``1 year'' and 
     inserting ``180 days'';
       (ii) in paragraph (11), by striking ``and'' at the end;
       (iii) in paragraph (12), by striking the period at the end 
     and inserting ``; and''; and
       (iv) by adding at the end the following:
       ``(13) with respect to peer review carried out under the 
     SBIR program, to the extent practicable, include in the peer 
     review--
       ``(A) the likelihood of commercialization in addition to 
     scientific and technical merit and feasibility; and
       ``(B) not less than 1 reviewer with commercialization 
     expertise who is capable of assessing the likelihood of 
     commercialization.'';
       (B) in subsection (o)--
       (i) in paragraph (4)(B)(i), by striking ``1 year'' and 
     inserting ``180 days'';
       (ii) in paragraph (15), by striking ``and'' at the end;
       (iii) in paragraph (16), by striking the period at the end 
     and inserting ``; and''; and
       (iv) by adding at the end the following:
       ``(17) with respect to peer review carried out under the 
     STTR program, to the extent practicable, include in the peer 
     review--
       ``(A) the likelhood of commercialization in addition to 
     scientific and technical merit and feasibility; and
       ``(B) not less than 1 reviewer with commercialization 
     expertise who is capable of assessing the likelihood of 
     commercialization.'';
       (C) in subsection (cc)--
       (i) by striking ``During fiscal years 2012 through 2022, 
     the National Institutes of Health, the Department of Defense, 
     and the Department of Education'' and inserting the 
     following:
       ``(1) In general.--During fiscal years 2022 through 2027, 
     each Federal agency with an SBIR or STTR program''; and
       (ii) by adding at the end the following:
       ``(2) Limitation.--The total value of awards provided by a 
     Federal agency under this subsection in a fiscal year shall 
     be--
       ``(A) except as provided in subparagraph (B), not more than 
     10 percent of the total funds allocated to the SBIR and STTR 
     programs of the Federal agency during that fiscal year; and
       ``(B) with respect to the National Institutes of Health, 
     not more than 15 percent of the total funds allocated to the 
     SBIR and STTR programs of the National Institutes of Health 
     during that fiscal year.
       ``(3) Extension.--During fiscal years 2026 and 2027, each 
     Federal agency with an SBIR or STTR program may continue 
     phase flexibility as described in this subsection only if the 
     reports required under subsection (tt)(1)(B) have been 
     submitted to the appropriate committees.'';
       (D) in subsection (hh)(2)(A)(i), by inserting ``application 
     process and requirements'' after ``simplified and 
     standardized''; and
       (E) by adding at the end the following:
       ``(vv) Technology Commercialization Official.--Each Federal 
     agency participating in the SBIR or STTR program shall 
     designate a Technology Commercialization Official in the 
     Federal agency, who shall--
       ``(1) have sufficient commercialization experience;
       ``(2) provide assistance to SBIR and STTR program awardees 
     in commercializing and transitioning technologies;
       ``(3) identify SBIR and STTR program technologies with 
     sufficient technology and commercialization readiness to 
     advance to Phase III awards or other non-SBIR or STTR program 
     contracts;
       ``(4) coordinate with the Technology Commercialization 
     Officials of other Federal agencies to identify additional 
     markets and commercialization pathways for promising SBIR and 
     STTR program technologies;
       ``(5) submit to the Administration an annual report on the 
     number of technologies from the SBIR or STTR program that 
     have advanced commercialization activities, including 
     information required in the commercialization impact 
     assessment under subsection (xx);
       ``(6) submit to the Administration an annual report on 
     actions taken by the Federal agency, and the results of those 
     actions, to simplify, standardize, and expedite the 
     application process and requirements, procedures, and 
     contracts as required under subsection (hh) and described in 
     subsection (xx)(E); and
       ``(7) carry out such other duties as the Federal agency 
     determines necessary.''.
       (2) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Administrator of the Small 
     Business Administration shall submit to the Committee on 
     Small Business and Entrepreneurship of the Senate and the 
     Committee on Small Business of the House of Representatives 
     summarizing the metrics relating to and an evaluation of the 
     authority provided under section 9(cc) of the Small Business 
     Act, as amended by subsection (a), which shall include the 
     size and location of the small business concerns receiving 
     awards under the SBIR or STTR program.
       (b) Improvements to Technical and Business Assistance; 
     Commercialization Impact Assessment; Patent Assistance.--
     Section 9 of the Small Business Act (15 U.S.C. 638), as 
     amended by subsection (a), is amended--
       (1) in subsection (q)--
       (A) in paragraph (1), in the matter preceding subparagraph 
     (A)--
       (i) by striking ``may enter into an agreement with 1 or 
     more vendors selected under paragraph (2)(A)'' and inserting 
     ``shall authorize recipients of awards under the SBIR or STTR 
     program to select, if desired, commercialization activities 
     provided under subparagraph (A), (B), or (C) of paragraph 
     (2)''; and
       (ii) by inserting ``, cybersecurity assistance'' after 
     ``intellectual property protections'';
       (B) in paragraph (2), by adding at the end the following:
       ``(C) Staff.--A small business concern may, by contract or 
     otherwise, use funding provided under this section to hire 
     new staff, augment staff, or direct staff to conduct or 
     participate in training activities consistent with the goals 
     listed in paragraph (1).'';
       (C) in paragraph (3), by striking subparagraphs (A) and (B) 
     and inserting the following:
       ``(A) Phase i.--A Federal agency described in paragraph (1) 
     shall authorize a recipient of a Phase I SBIR or STTR award 
     to utilize not more than $6,500 per project, included as part 
     of the award of the recipient or in addition to the amount of 
     the award of the recipient as determined appropriate by the 
     head of the Federal agency, for the services described in 
     paragraph (1)--
       ``(i) provided through a vendor selected under paragraph 
     (2)(A);
       ``(ii) provided through a vendor other than a vendor 
     selected under paragraph (2)(A);
       ``(iii) achieved through the activities described in 
     paragraph (2)(C); or
       ``(iv) provided or achieved through any combination of 
     clauses (i), (ii), and (iii).
       ``(B) Phase ii.--A Federal agency described in paragraph 
     (1) shall authorize a recipient of

[[Page S7925]]

     a Phase II SBIR or STTR award to utilize not more than 
     $50,000 per project, included as part of the award of the 
     recipient or in addition to the amount of the award of the 
     recipient as determined appropriate by the head of the 
     Federal agency, for the services described in paragraph (1)--
       ``(i) provided through a vendor selected under paragraph 
     (2)(A);
       ``(ii) provided through a vendor other than a vendor 
     selected under paragraph (2)(A);
       ``(iii) achieved through the activities described in 
     paragraph (2)(C); or
       ``(iv) provided or achieved through any combination of 
     clauses (i), (ii), and (iii).''; and
       (D) by adding at the end the following:
       ``(5) Targeted review.--A Federal agency may perform 
     targeted reviews of technical and business assistance funding 
     as described in subsection (mm)(1)(F).''; and
       (2) by adding at the end the following:
       ``(ww) I-Corps Participation.--
       ``(1) In general.--Each Federal agency that is required to 
     conduct an SBIR or STTR program with an Innovation Corps 
     (commonly known as `I-Corps') program shall--
       ``(A) provide an option for participation in an I-Corps 
     teams course by recipients of an award under the SBIR or STTR 
     program; and
       ``(B) authorize the recipients described in subparagraph 
     (A) to use an award provided under subsection (q) to provide 
     additional technical assistance for participation in the I-
     Corps teams course.
       ``(2) Cost of participation.--The cost of participation by 
     a recipient described in paragraph (1)(A) in an I-Corps 
     course may be provided by--
       ``(A) an I-Corps team grant;
       ``(B) funds awarded to the recipient under subsection (q);
       ``(C) the participating teams or other sources as 
     appropriate; or
       ``(D) any combination of sources described in subparagraphs 
     (A), (B), and (C).
       ``(xx) Commercialization Impact Assessment.--
       ``(1) In general.--The Administrator shall coordinate with 
     each Federal agency with an SBIR or STTR program to develop 
     an annual commercialization impact assessment report of the 
     Federal agency, which shall measure, for the 5-year period 
     preceding the report--
       ``(A) for Phase II contracts--
       ``(i) the total amount of sales of new products and 
     services to the Federal Government or other commercial 
     markets;
       ``(ii) the total outside investment from partnerships, 
     joint ventures, or other private sector funding sources;
       ``(iii) the total number of technologies licensed to other 
     companies;
       ``(iv) the total number of acquisitions of small business 
     concerns participating in the SBIR program or the STTR 
     program that are acquired by other entities;
       ``(v) the total number of new spin-out companies;
       ``(vi) the total outside investment from venture capital or 
     angel investments;
       ``(vii) the total number of patent applications;
       ``(viii) the total number of patents acquired;
       ``(ix) the year of first Phase I award and the total number 
     of employees at time of first Phase I award;
       ``(x) the total number of employees from the preceding 
     completed year; and
       ``(xi) the percent of revenue, as of the date of the 
     report, generated through SBIR or STTR program funding;
       ``(B) the total number and value of subsequent Phase II 
     awards, as described in subsection (bb), awarded for each 
     particular project or technology;
       ``(C) the total number and value of Phase III awards 
     awarded subsequent to a Phase II award;
       ``(D) the total number and value of non-SBIR and STTR 
     program Federal awards and contracts; and
       ``(E) actions taken by the Federal agency, and the results 
     of those actions, relating to developing a simplified and 
     standardized application process and requirements, 
     procedures, and model contracts throughout the Federal agency 
     for Phase I, Phase II, and Phase III SBIR program awards in 
     subsection (hh).
       ``(2) Publication.--A commercialization impact assessment 
     report described in paragraph (1) of a Federal agency shall 
     be--
       ``(A) included in the annual report of the Federal agency 
     required under this section; and
       ``(B) published on the website of the Administration.
       ``(yy) Patent Assistance.--
       ``(1) Definitions.--In this subsection--
       ``(A) the term `low bono services' means services provided 
     at a reduced fee; and
       ``(B) the term `USPTO' means the United States Patent and 
     Trademark Office.
       ``(2) Assistance.--The Administrator shall enter into an 
     interagency agreement with the USPTO to assist recipients of 
     an award under the SBIR or STTR program (in this paragraph 
     referred to as `SBIR and STTR recipients') relating to 
     intellectual property protection through--
       ``(A) track one processing, under which the USPTO may--
       ``(i) allocate--

       ``(I) not less than 5 percent or 500 track one requests, 
     whichever is greater, per year to SBIR and STTR recipients on 
     a first-come, first-served basis; and
       ``(II) not more than 2 track one requests to an individual 
     SBIR and STTR recipient, to expedite final disposition on 
     SBIR and STTR program patent applications; and

       ``(ii) waive the track one fee requirement for SBIR and 
     STTR recipients; and
       ``(B) through the USPTO Patent Pro Bono Program, providing 
     SBIR and STTR recipients--
       ``(i) pro bono services if the recipient--

       ``(I) had a total gross income of more than $150,000 but 
     less than $5,000,000 in the preceding calendar year, and 
     expects a total gross income of more than $150,000 but less 
     than $5,000,000 in the current calendar year;
       ``(II) is not under any obligation to assign the rights to 
     the invention to another entity other than the Federal 
     Government; and
       ``(III) has not previously received USPTO pro bono or low 
     bono services; or

       ``(ii) low bono services if the recipient--

       ``(I) had a total gross income of more than $5,000,000 but 
     less than $10,000,000 in the preceding calendar year, and 
     expects a total gross income of more than $5,000,000 but less 
     than $10,000,000 in the current calendar year;
       ``(II) is not under any obligation to assign the rights to 
     the invention to another entity other than the Federal 
     Government; and
       ``(III) has not previously received USPTO pro bono or low 
     bono services.

       ``(3) Outreach.--The Administrator shall coordinate with 
     the USPTO to provide outreach regarding the pro se assistance 
     program and scam prevention services of the USPTO.''.
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