To improve the bill.

SBIR/STTR REAUTHORIZATION ACT OF 2009

Mr. REID. Mr. President, I ask unanimous consent that the Senate
proceed to the consideration of Calendar No. 94, S. 1233.
The PRESIDING OFFICER. The clerk will report the bill by title.
The assistant legislative clerk read as follows:

A bill (S. 1233) to reauthorize and improve the SBIR and
STTR programs, and for other purposes.

There being no objection, the Senate proceeded to consider the bill,
which had been reported from the Committee on Small Business and
Entrepreneurship, with an amendment to strike all after the enacting
clause and insert in lieu thereof the following:

SECTION 1. SHORT TITLE.

This Act may be cited as the ``SBIR/STTR Reauthorization
Act of 2009''.

SEC. 2. TABLE OF CONTENTS.

The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.

TITLE I--REAUTHORIZATION OF THE SBIR AND STTR PROGRAMS

Sec. 101. Extension of termination dates.
Sec. 102. Status of the Office of Technology.
Sec. 103. SBIR allocation increase.
Sec. 104. STTR allocation increase.
Sec. 105. SBIR and STTR award levels.
Sec. 106. Agency and program collaboration.
Sec. 107. Elimination of Phase II invitations.
Sec. 108. Majority-venture investments in SBIR firms.
Sec. 109. SBIR and STTR special acquisition preference.
Sec. 110. Collaborating with Federal laboratories and research and
development centers.
Sec. 111. Notice requirement.

TITLE II--OUTREACH AND COMMERCIALIZATION INITIATIVES

Sec. 201. Rural and State outreach.
Sec. 202. SBIR-STEM Workforce Development Grant Pilot Program.
Sec. 203. Technical assistance for awardees.
Sec. 204. Commercialization program at Department of Defense.
Sec. 205. Commercialization Pilot Program for civilian agencies.
Sec. 206. Nanotechnology initiative.
Sec. 207. Accelerating cures.

TITLE III--OVERSIGHT AND EVALUATION

Sec. 301. Streamlining annual evaluation requirements.
Sec. 302. Data collection from agencies for SBIR.
Sec. 303. Data collection from agencies for STTR.
Sec. 304. Public database.
Sec. 305. Government database.
Sec. 306. Accuracy in funding base calculations.
Sec. 307. Continued evaluation by the National Academy of Sciences.
Sec. 308. Technology insertion reporting requirements.
Sec. 309. Intellectual property protections.

TITLE IV--POLICY DIRECTIVES

Sec. 401. Conforming amendments to the SBIR and the STTR Policy
Directives.

SEC. 3. DEFINITIONS.

In this Act--
(1) the terms ``Administration'' and ``Administrator'' mean
the Small Business Administration and the Administrator
thereof, respectively;
(2) the terms ``extramural budget'', ``Federal agency'',
``Small Business Innovation Research Program'', ``SBIR'',
``Small Business Technology Transfer Program'', and ``STTR''
have the meanings given such terms in section 9 of the Small
Business Act (15 U.S.C. 638); and
(3) the term ``small business concern'' has the same
meaning as under section 3 of the Small Business Act (15
U.S.C. 632).

TITLE I--REAUTHORIZATION OF THE SBIR AND STTR PROGRAMS

SEC. 101. EXTENSION OF TERMINATION DATES.

(a) SBIR.--Section 9(m) of the Small Business Act (15
U.S.C. 638(m)) is amended by striking ``2008'' and inserting
``2023''.
(b) STTR.--Section 9(n)(1)(A) of the Small Business Act (15
U.S.C. 638(n)(1)(A)) is amended by striking ``2009'' and
inserting ``2023''.

SEC. 102. STATUS OF THE OFFICE OF TECHNOLOGY.

Section 9(b) of the Small Business Act (15 U.S.C. 638(b))
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'';
(3) by redesignating paragraph (8) as paragraph (9); and
(4) by adding at the end the following:
``(10) to maintain an Office of Technology to carry out the
responsibilities of the Administration under this section,
which shall be--
``(A) headed by the Assistant Administrator for Technology,
who shall report directly to the Administrator; and
``(B) independent from the Office of Government Contracting
of the Administration and sufficiently staffed and funded to
comply with the oversight, reporting, and public database
responsibilities assigned to the Office of Technology by the
Administrator.''.

SEC. 103. SBIR ALLOCATION INCREASE.

Section 9(f) of the Small Business Act (15 U.S.C. 638(f))
is amended--
(1) in paragraph (1)--
(A) in the matter preceding subparagraph (A), by striking
``Each'' and inserting ``Except as provided in paragraph
(2)(C), each'';
(B) in subparagraph (B), by striking ``and'' at the end;
and
(C) by striking subparagraph (C) and inserting the
following:
``(C) not less than 2.5 percent of such budget in each of
fiscal years 2009 and 2010;
``(D) not less than 2.6 percent of such budget in fiscal
year 2011;
``(E) not less than 2.7 percent of such budget in fiscal
year 2012;
``(F) not less than 2.8 percent of such budget in fiscal
year 2013;
``(G) not less than 2.9 percent of such budget in fiscal
year 2014;
``(H) not less than 3.0 percent of such budget in fiscal
year 2015;
``(I) not less than 3.1 percent of such budget in fiscal
year 2016;
``(J) not less than 3.2 percent of such budget in fiscal
year 2017;
``(K) not less than 3.3 percent of such budget in fiscal
year 2018;
``(L) not less than 3.4 percent of such budget in fiscal
year 2019; and
``(M) not less than 3.5 percent of such budget in fiscal
year 2020 and each fiscal year thereafter,''; and
(2) in paragraph (2)--
(A) by redesignating subparagraphs (A) and (B) as clauses
(i) and (ii), respectively, and adjusting the margins
accordingly;
(B) by striking ``A Federal agency'' and inserting the
following:
``(A) In general.--A Federal agency''; and
(C) by adding at the end the following:
``(B) Department of defense and department of energy.--For
the Department of Defense and the Department of Energy, to
the greatest extent practicable, the percentage of the
extramural budget in excess of 2.5 percent required to be
expended with small business concerns under subparagraphs (D)
through (M) of paragraph (1)--
``(i) may not be used for new Phase I or Phase II awards;
and
``(ii) shall be used for activities that further the
readiness levels of technologies developed under Phase II
awards, including conducting testing and evaluation to
promote the transition of such technologies into commercial
or defense products, or systems furthering the mission needs
of the Department of Defense or the Department of Energy, as
the case may be.''.

SEC. 104. STTR ALLOCATION INCREASE.

Section 9(n)(1)(B) of the Small Business Act (15 U.S.C.
638(n)(1)(B)) is amended--
(1) in clause (i), by striking ``and'' at the end;
(2) in clause (ii), by striking ``thereafter.'' and
inserting ``through fiscal year 2010;''; and
(3) by adding at the end the following:
``(iii) 0.4 percent for fiscal years 2011 and 2012;
``(iv) 0.5 percent for fiscal years 2013 and 2014; and
``(v) 0.6 percent for fiscal year 2015 and each fiscal year
thereafter.''.

SEC. 105. SBIR AND STTR AWARD LEVELS.

(a) SBIR Adjustments.--Section 9(j)(2)(D) of the Small
Business Act (15 U.S.C. 638(j)(2)(D)) is amended--
(1) by striking ``$100,000'' and inserting ``$150,000'';
and
(2) by striking ``$750,000'' and inserting ``$1,000,000''.
(b) STTR Adjustments.--Section 9(p)(2)(B)(ix) of the Small
Business Act (15 U.S.C. 638(p)(2)(B)(ix)) is amended--
(1) by striking ``$100,000'' and inserting ``$150,000'';
and
(2) by striking ``$750,000'' and inserting ``$1,000,000''.
(c) Triennial Adjustments.--Section 9 of the Small Business
Act (15 U.S.C. 638) is amended--
(1) in subsection (j)(2)(D)--
(A) by striking ``5 years'' and inserting ``3 years''; and
(B) by striking ``and programmatic considerations''; and
(2) in subsection (p)(2)(B)(ix) by striking ``greater or
lesser amounts to be awarded at the discretion of the
awarding agency,'' and inserting ``an adjustment for
inflation of such amounts once every 3 years,''.
(d) Limitation on Certain Awards.--Section 9 of the Small
Business Act (15 U.S.C. 638) is amended by adding at the end
the following:
``(aa) Limitation on Certain Awards.--
``(1) Limitation.--No Federal agency may issue an award
under the SBIR program or the STTR program if the size of the
award exceeds

[[Page S7427]]

the award guidelines established under this section by more
than 50 percent.
``(2) Maintainance of information.--Participating agencies
shall maintain information on awards exceeding the guidelines
established under this section, including--
``(A) the amount of each award;
``(B) a justification for exceeding the award amount;
``(C) the identity and location of each award recipient;
and
``(D) whether a recipient has received any venture capital
investment and, if so, whether the recipient is majority-
owned and controlled by multiple venture capital companies.
``(3) Reports.--The Administrator shall include the
information described in paragraph (2) in the annual report
of the Administrator to Congress.
``(4) Rule of construction.--Nothing in this subsection
shall be construed to prevent a Federal agency from
supplementing an award under the SBIR program or the STTR
program using funds of the Federal agency that are not part
of the SBIR program or the STTR program of the Federal
agency.''.

SEC. 106. AGENCY AND PROGRAM COLLABORATION.

Section 9 of the Small Business Act (15 U.S.C. 638), as
amended by this Act, is amended by adding at the end the
following:
``(bb) Subsequent Phases.--
``(1) Agency collaboration.--A small business concern that
received an award from a Federal agency under this section
shall be eligible to receive an award for a subsequent phase
from another Federal agency, if the head of each relevant
Federal agency or the relevant component of the Federal
agency makes a written determination that the topics of the
relevant awards are the same and both agencies report the
awards to the Administrator for inclusion in the public
database under subsection (k).
``(2) SBIR and sttr collaboration.--A small business
concern which received an award under this section under the
SBIR program or the STTR program may receive an award under
this section for a subsequent phase in either the SBIR
program or the STTR program and the participating agency or
agencies shall report the awards to the Administrator for
inclusion in the public database under subsection (k).''.

SEC. 107. ELIMINATION OF PHASE II INVITATIONS.

(a) In General.--Section 9(e) of the Small Business Act (15
U.S.C. 638(e)) is amended--
(1) in paragraph (4)(B), by striking ``to further'' and
inserting: ``which shall not include any invitation, pre-
screening, pre-selection, or down-selection process for
eligibility for the second phase, that will further''; and
(2) in paragraph (6)(B), by striking ``to further develop
proposed ideas to'' and inserting ``which shall not include
any invitation, pre-screening, pre-selection, or down-
selection process for eligibility for the second phase, that
will further develop proposals that''.
(b) Technical and Conforming Amendments.--The Small
Business Act (15 U.S.C. 638) is amended--
(1) in section 9--
(A) in subsection (e)--
(i) in paragraph (8), by striking ``and'' at the end;
(ii) in paragraph (9)--

(I) by striking ``the second or the third phase'' and
inserting ``Phase II or Phase III''; and
(II) by striking the period at the end and inserting a
semicolon; and

(iii) by adding at the end the following:
``(10) the term `Phase I' means--
``(A) with respect to the SBIR program, the first phase
described in paragraph (4)(A); and
``(B) with respect to the STTR program, the first phase
described in paragraph (6)(A);
``(11) the term `Phase II' means--
``(A) with respect to the SBIR program, the second phase
described in paragraph (4)(B); and
``(B) with respect to the STTR program, the second phase
described in paragraph (6)(B); and
``(12) the term `Phase III' means--
``(A) with respect to the SBIR program, the third phase
described in paragraph (4)(C); and
``(B) with respect to the STTR program, the third phase
described in paragraph (6)(C).'';
(B) in subsection (j)--
(i) in paragraph (1)(B), by striking ``phase two'' and
inserting ``Phase II'';
(ii) in paragraph (2)--

(I) in subparagraph (B)--

(aa) by striking ``the third phase'' each place it appears
and inserting ``Phase III''; and
(bb) by striking ``the second phase'' and inserting ``Phase
II'';

(II) in subparagraph (D)--

(aa) by striking ``the first phase'' and inserting ``Phase
I''; and
(bb) by striking ``the second phase'' and inserting ``Phase
II'';

(III) in subparagraph (F), by striking ``the third phase''
and inserting ``Phase III'';
(IV) in subparagraph (G)--

(aa) by striking ``the first phase'' and inserting ``Phase
I''; and
(bb) by striking ``the second phase'' and inserting ``Phase
II''; and

(V) in subparagraph (H)--

(aa) by striking ``the first phase'' and inserting ``Phase
I'';
(bb) by striking ``second phase'' each place it appears and
inserting ``Phase II''; and
(cc) by striking ``third phase'' and inserting ``Phase
III''; and
(iii) in paragraph (3)--

(I) in subparagraph (A)--

(aa) by striking ``the first phase (as described in
subsection (e)(4)(A))'' and inserting ``Phase I'';
(bb) by striking ``the second phase (as described in
subsection (e)(4)(B))'' and inserting ``Phase II''; and
(cc) by striking ``the third phase (as described in
subsection (e)(4)(C))'' and inserting ``Phase III''; and

(II) in subparagraph (B), by striking ``second phase'' and
inserting ``Phase II'';

(C) in subsection (k)--
(i) by striking ``first phase'' each place it appears and
inserting ``Phase I''; and
(ii) by striking ``second phase'' each place it appears and
inserting ``Phase II'';
(D) in subsection (l)(2)--
(i) by striking ``the first phase'' and inserting ``Phase
I''; and
(ii) by striking ``the second phase'' and inserting ``Phase
II'';
(E) in subsection (o)(13)--
(i) in subparagraph (B), by striking ``second phase'' and
inserting ``Phase II''; and
(ii) in subparagraph (C), by striking ``third phase'' and
inserting ``Phase III'';
(F) in subsection (p)--
(i) in paragraph (2)(B)--

(I) in clause (vi)--

(aa) by striking ``the second phase'' and inserting ``Phase
II''; and
(bb) by striking ``the third phase'' and inserting ``Phase
III''; and

(II) in clause (ix)--

(aa) by striking ``the first phase'' and inserting ``Phase
I''; and
(bb) by striking ``the second phase'' and inserting ``Phase
II''; and
(ii) in paragraph (3)--

(I) by striking ``the first phase (as described in
subsection (e)(6)(A))'' and inserting ``Phase I'';
(II) by striking ``the second phase (as described in
subsection (e)(6)(B))'' and inserting ``Phase II''; and
(III) by striking ``the third phase (as described in
subsection (e)(6)(A))'' and inserting ``Phase III'';

(G) in subsection (q)(3)--
(i) in subparagraph (A)--

(I) in the subparagraph heading, by striking ``First
phase'' and inserting ``Phase i''; and
(II) by striking ``first phase'' and inserting ``Phase I'';
and

(ii) in subparagraph (B)--

(I) in the subparagraph heading, by striking ``Second
phase'' and inserting ``Phase ii''; and
(II) by striking ``second phase'' and inserting ``Phase
II'';

(H) in subsection (r)--
(i) in the subsection heading, by striking ``Third Phase''
and inserting ``Phase III'';
(ii) in paragraph (1)--

(I) in the first sentence--

(aa) by striking ``for the second phase'' and inserting
``for Phase II'';
(bb) by striking ``third phase'' and inserting ``Phase
III''; and
(cc) by striking ``second phase period'' and inserting
``Phase II period''; and

(II) in the second sentence--

(aa) by striking ``second phase'' and inserting ``Phase
II''; and
(bb) by striking ``third phase'' and inserting ``Phase
III''; and
(iii) in paragraph (2), by striking ``third phase'' and
inserting ``Phase III''; and
(I) in subsection (u)(2)(B), by striking ``the first
phase'' and inserting ``Phase I'';
(2) in section 34--
(A) in subsection (c)(2)(B)(ii), by striking ``first phase
and second phase SBIR awards'' and inserting ``Phase I and
Phase II SBIR awards (as defined in section 9(e))''; and
(B) in subsection (e)(2)(A)--
(i) in clause (i), by striking ``first phase awards'' and
all that follows and inserting ``Phase I awards (as defined
in section 9(e));''; and
(ii) by striking ``first phase'' each place it appears and
inserting ``Phase I''; and
(3) in section 35(c)(2)(B)(vii), by striking ``third
phase'' and inserting ``Phase III''.

SEC. 108. MAJORITY-VENTURE INVESTMENTS IN SBIR FIRMS.

(a) In General.--Section 9 of the Small Business Act (15
U.S.C. 638), as amended by this Act, is amended by adding at
the end the following:
``(cc) Majority-venture Investments in SBIR Firms.--
``(1) Authority and determination.--
``(A) In general.--Upon a written determination provided
not later than 30 days in advance to the Administrator and to
the Committee on Small Business and Entrepreneurship of the
Senate and the Committee on Small Business of the House of
Representatives--
``(i) the Director of the National Institutes of Health may
award not more than 18 percent of the SBIR funds of the
National Institutes of Health allocated in accordance with
this Act, in the first full fiscal year beginning after the
date of enactment of this subsection, and each fiscal year
thereafter, to small business concerns that are owned in
majority part by venture capital companies and that satisfy
the qualification requirements under paragraph (2) through
competitive, merit-based procedures that are open to all
eligible small business concerns; and
``(ii) the head of any other Federal agency participating
in the SBIR program may award not more than 8 percent of the
SBIR funds of the Federal agency allocated in accordance with
this Act, in the first full fiscal year beginning after the
date of enactment of this subsection, and each fiscal year
thereafter, to small business concerns that are majority
owned by venture capital companies and that satisfy the
qualification requirements under paragraph (2) through
competitive, merit-based procedures that are open to all
eligible small business concerns.
``(B) Determination.--A written determination made under
subparagraph (A) shall explain how the use of the authority
under that subparagraph will induce additional venture
capital funding of small business innovations, substantially
contribute to the mission of the funding Federal agency,
demonstrate a need for public research, and otherwise fulfill
the capital

[[Page S7428]]

needs of small business concerns for additional financing for
the SBIR project.
``(2) Qualification requirements.--The Administrator shall
establish requirements relating to the affiliation by small
business concerns with venture capital companies, which may
not exclude a United States small business concern from
participation in the program under paragraph (1) on the basis
that the small business concern is owned in majority part by,
or controlled by, more than 1 United States venture capital
company, so long as no single venture capital company owns
more than 49 percent of the small business concern.
``(3) Registration.--A small business concern that is
majority owned and controlled by multiple venture capital
companies and qualified for participation in the program
authorized under paragraph (1) shall--
``(A) register with the Administrator on the date that the
small business concern submits an application for an award
under the SBIR program; and
``(B) indicate whether the small business concern is
registered under subparagraph (A) in any SBIR proposal.
``(4) Compliance.--A Federal agency described in paragraph
(1) shall collect data regarding the number and dollar
amounts of phase I, phase II, and all other categories of
awards under the SBIR program, and the Administrator shall
report on the data and the compliance of each such Federal
agency with the maximum amounts under paragraph (1) as part
of the annual report by the Administration under subsection
(b)(7).
``(5) Enforcement.--If a Federal agency awards more than
the amount authorized under paragraph (1) for a purpose
described in paragraph (1), the amount awarded in excess of
the amount authorized under paragraph (1) shall be
transferred to the funds for general SBIR programs from the
non-SBIR research and development funds of the Federal agency
within 60 days of the date on which the Federal agency
awarded more than the amount authorized under paragraph (1)
for a purpose described in paragraph (1).''.
(b) Technical and Conforming Amendment.--Section 3 of the
Small Business Act (15 U.S.C. 632) is amended by adding at
the end the following:
``(t) Venture Capital Company.--In this Act, the term
`venture capital company' means an entity described in clause
(i), (v), or (vi) of section 121.103(b)(5) of title 13, Code
of Federal Regulations (or any successor thereto).''.
(c) Assistance for Determining Affiliates.--Not later than
30 days after the date of enactment of this Act, the
Administrator shall post on the website of the Administration
(with a direct link displayed on the homepage of the website
of the Administration or the SBIR website of the
Administration)--
(1) a clear explanation of the SBIR affiliation rules under
part 121 of title 13, Code of Federal Regulations; and
(2) contact information for officers or employees of the
Administration who--
(A) upon request, shall review an issue relating to the
rules described in paragraph (1); and
(B) shall respond to a request under subparagraph (A) not
later than 20 business days after the date on which the
request is received.

SEC. 109. SBIR AND STTR SPECIAL ACQUISITION PREFERENCE.

Section 9(r) of the Small Business Act (15 U.S.C. 638(r))
is amended by adding at the end the following:
``(4) Phase iii awards.--To the greatest extent
practicable, Federal agencies and Federal prime contractors
shall issue Phase III awards relating to technology,
including sole source awards, to the SBIR and STTR award
recipients that developed the technology.''.

SEC. 110. COLLABORATING WITH FEDERAL LABORATORIES AND
RESEARCH AND DEVELOPMENT CENTERS.

Section 9 of the Small Business Act (15 U.S.C. 638), as
amended by this Act, is amended by adding at the end the
following:
``(dd) Collaborating With Federal Laboratories and Research
and Development Centers.--
``(1) Authorization.--Subject to the limitations under this
section, the head of each participating Federal agency may
make SBIR and STTR awards to any eligible small business
concern that--
``(A) intends to enter into an agreement with a Federal
laboratory or federally funded research and development
center for portions of the activities to be performed under
that award; or
``(B) has entered into a cooperative research and
development agreement (as defined in section 12(d) of the
Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C.
3710a(d))) with a Federal laboratory.
``(2) Prohibition.--No Federal agency shall--
``(A) condition an SBIR or STTR award upon entering into
agreement with any Federal laboratory or any federally funded
laboratory or research and development center for any portion
of the activities to be performed under that award;
``(B) approve an agreement between a small business concern
receiving a SBIR or STTR award and a Federal laboratory or
federally funded laboratory or research and development
center, if the small business concern performs a lesser
portion of the activities to be performed under that award
than required by this section and by the SBIR Policy
Directive and the STTR Policy Directive of the Administrator;
or
``(C) approve an agreement that violates any provision,
including any data rights protections provision, of this
section or the SBIR and the STTR Policy Directives.
``(3) Implementation.--Not later than 180 days after the
date of enactment of this subsection, the Administrator shall
modify the SBIR Policy Directive and the STTR Policy
Directive issued under this section to ensure that small
business concerns--
``(A) have the flexibility to use the resources of the
Federal laboratories and federally funded research and
development centers; and
``(B) are not mandated to enter into agreement with any
Federal laboratory or any federally funded laboratory or
research and development center as a condition of an
award.''.

SEC. 111. NOTICE REQUIREMENT.

The head of any Federal agency involved in a case or
controversy before any Federal judicial or administrative
tribunal concerning the SBIR program or the STTR program
shall provide timely notice, as determined by the
Administrator, of the case or controversy to the
Administrator.

TITLE II--OUTREACH AND COMMERCIALIZATION INITIATIVES

SEC. 201. RURAL AND STATE OUTREACH.

(a) Outreach.--Section 9 of the Small Business Act (15
U.S.C. 638) is amended by inserting after subsection (r) the
following:
``(s) Outreach.--
``(1) Definition of eligible state.--In this subsection,
the term `eligible State' means a State--
``(A) for which the total value of contracts awarded to the
State under this section during the most recent fiscal year
for which data is available was less than $5,000,000; and
``(B) that certifies to the Administrator that the State
will, upon receipt of assistance under this subsection,
provide matching funds from non-Federal sources in an amount
that is not less than 50 percent of the amount provided under
this subsection.
``(2) Program authority.--Of amounts made available to
carry out this section for each of fiscal years 2010 through
2014, the Administrator may expend with eligible States not
more than $5,000,000 in each such fiscal year in order to
increase the participation of small business concerns located
in those States in the programs under this section.
``(3) Amount of assistance.--The amount of assistance
provided to an eligible State under this subsection in any
fiscal year--
``(A) shall be equal to not more than 50 percent of the
total amount of matching funds from non-Federal sources
provided by the State; and
``(B) shall not exceed $100,000.
``(4) Use of assistance.--Assistance provided to an
eligible State under this subsection shall be used by the
State, in consultation with State and local departments and
agencies, for programs and activities to increase the
participation of small business concerns located in the State
in the programs under this section, including--
``(A) the establishment of quantifiable performance goals,
including goals relating to--
``(i) the number of program awards under this section made
to small business concerns in the State; and
``(ii) the total amount of Federal research and development
contracts awarded to small business concerns in the State;
``(B) the provision of competition outreach support to
small business concerns in the State that are involved in
research and development; and
``(C) the development and dissemination of educational and
promotional information relating to the programs under this
section to small business concerns in the State.''.
(b) Federal and State Program Extension.--Section 34 of the
Small Business Act (15 U.S.C. 657d) is amended--
(1) in subsection (h), by striking ``2001 through 2005''
each place it appears and inserting ``2010 through 2014'';
and
(2) in subsection (i), by striking ``2005'' and inserting
``2014''.
(c) Matching Requirements.--Section 34(e)(2) of the Small
Business Act (15 U.S.C. 657d(e)(2)) is amended--
(1) in subparagraph (A)--
(A) in clause (i), by striking ``50 cents'' and inserting
``35 cents''; and
(B) in clause (iii), by striking ``75 cents'' and inserting
``50 cents'';
(2) in subparagraph (B), by striking ``50 cents'' and
inserting ``35 cents'';
(3) by redesignating subparagraphs (C) and (D) as
subparagraphs (D) and (E), respectively; and
(4) by inserting after subparagraph (B) the following:
``(C) Rural areas.--
``(i) In general.--Except as provided in clause (ii), the
non-Federal share of the cost of the activity carried out
using an award or under a cooperative agreement under this
section shall be 35 cents for each Federal dollar that will
be directly allocated by a recipient described in paragraph
(A) to serve small business concerns located in a rural area.
``(ii) Enhanced rural awards.--For a recipient located in a
rural area that is located in a State described in
subparagraph (A)(i), the non-Federal share of the cost of the
activity carried out using an award or under a cooperative
agreement under this section shall be 15 cents for each
Federal dollar that will be directly allocated by a recipient
described in paragraph (A) to serve small business concerns
located in the rural area.
``(iii) Definition of rural area.--In this subparagraph,
the term `rural area' has the meaning given that term in
section 1393(a)(2)) of the Internal Revenue Code of 1986.''.

SEC. 202. SBIR-STEM WORKFORCE DEVELOPMENT GRANT PILOT
PROGRAM.

(a) Pilot Program Established.--From amounts made available
to carry out this section, the Administrator shall establish
a SBIR-

[[Page S7429]]

STEM Workforce Development Grant Pilot Program to encourage
the business community to provide workforce development
opportunities for college students, in the fields of science,
technology, engineering, and math (in this section referred
to as ``STEM college students''), by providing a SBIR bonus
grant.
(b) Eligible Entities Defined.--In this section the term
``eligible entity'' means a grantee receiving a grant under
the SBIR Program on the date of the bonus grant under
subsection (a) that provides an internship program for STEM
college students.
(c) Awards.--An eligible entity shall receive a bonus grant
equal to 10 percent of either a Phase I or Phase II grant, as
applicable, with a total award maximum of not more than
$10,000 per year.
(d) Evaluation.--Following the fourth year of funding under
this section, the Administrator shall submit a report to
Congress on the results of the SBIR-STEM Workforce
Development Grant Pilot Program.
(e) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section--
(1) $1,000,000 for fiscal year 2011;
(2) $1,000,000 for fiscal year 2012;
(3) $1,000,000 for fiscal year 2013;
(4) $1,000,000 for fiscal year 2014; and
(5) $1,000,000 for fiscal year 2015.

SEC. 203. TECHNICAL ASSISTANCE FOR AWARDEES.

Section 9(q)(3) of the Small Business Act (15 U.S.C.
638(q)(3)) is amended--
(1) in subparagraph (A), by striking ``$4,000'' and
inserting ``$5,000'';
(2) in subparagraph (B)--
(A) by striking ``, with funds available from their SBIR
awards,''; and
(B) by striking ``$4,000 per year'' and inserting ``$5,000
per year, which shall be in addition to the amount of the
recipient's award''; and
(3) by adding at the end the following:
``(C) Flexibility.--In carrying out subparagraphs (A) and
(B), each Federal agency shall provide the allowable amounts
to a recipient that meets the eligibility requirements under
the applicable subparagraph, if the recipient requests to
seek technical assistance from an individual or entity other
than the vendor selected under paragraph (2) by the Federal
agency.
``(D) Limitation.--A Federal agency may not--
``(i) use the amounts authorized under subparagraph (A) or
(B) unless the vendor selected under paragraph (2) provides
the technical assistance to the recipient; or
``(ii) enter a contract with a vendor under paragraph (2)
under which the amount provided for technical assistance is
based on total number of Phase I or Phase II awards.''.

SEC. 204. COMMERCIALIZATION PROGRAM AT DEPARTMENT OF DEFENSE.

Section 9(y) of the Small Business Act (15 U.S.C. 638(y))
is amended--
(1) in the subsection heading, by striking ``Pilot'';
(2) by striking ``Pilot'' each place that term appears;
(3) in paragraph (1)--
(A) by inserting ``or Small Business Technology Transfer
Program'' after ``Small Business Innovation Research
Program''; and
(B) by adding at the end the following: ``The authority to
create and administer a Commercialization Program under this
subsection may not be construed to eliminate or replace any
other SBIR program or STTR program that enhances the
insertion or transition of SBIR or STTR technologies,
including any such program in effect on the date of enactment
of the National Defense Authorization Act for Fiscal Year
2006 (Public Law 109-163; 119 Stat. 3136).'';
(4) in paragraph (2), by inserting ``or Small Business
Technology Transfer Program'' after ``Small Business
Innovation Research Program'';
(5) in paragraph (4), by inserting ``or Small Business
Technology Transfer Program'' after ``Small Business
Innovation Research Program'';
(6) by striking paragraph (6);
(7) by redesignating paragraph (5) as paragraph (7); and
(8) by inserting after paragraph (4) the following:
``(5) Insertion incentives.--For any contract with a value
of not less than $100,000,000, the Secretary of Defense is
authorized to--
``(A) establish goals for the transition of Phase III
technologies in subcontracting plans; and
``(B) require a prime contractor on such a contract to
report the number and dollar amount of contracts entered into
by that prime contractor for Phase III SBIR or STTR projects.
``(6) Goal for sbir and sttr technology insertion.--The
Secretary of Defense shall--
``(A) set a goal to increase the number of Phase II SBIR
contracts and the number of Phase II STTR contracts awarded
by that Secretary that lead to technology transition into
programs of record or fielded systems;
``(B) use incentives in effect on the date of enactment of
the SBIR/STTR Reauthorization Act of 2009, or create new
incentives, to encourage agency program managers and prime
contractors to meet the goal under subparagraph (A); and
``(C) include in the annual report to Congress the
percentage of contracts described in subparagraph (A) awarded
by that Secretary, and information on the ongoing status of
projects funded through the Commercialization Program and
efforts to transition these technologies into programs of
record or fielded systems.''.

SEC. 205. COMMERCIALIZATION PILOT PROGRAM FOR CIVILIAN
AGENCIES.

Section 9 of the Small Business Act (15 U.S.C. 638), as
amended by this Act, is amended by adding at the end the
following:
``(ee) Pilot Program.--
``(1) Authorization.--The head of each covered Federal
agency may set aside not more than 10 percent of the SBIR and
STTR funds of such agency for further technology development,
testing, and evaluation of SBIR and STTR Phase II
technologies.
``(2) Application by federal agency.--
``(A) In general.--A covered Federal agency may not
establish a pilot program unless such agency makes a written
application to the Administrator, not later than 90 days
before to the first day of the fiscal year in which the pilot
program is to be established, that describes a compelling
reason that additional investment in SBIR or STTR
technologies is necessary, including unusually high
regulatory, systems integration, or other costs relating to
development or manufacturing of identifiable, highly
promising small business technologies or a class of such
technologies expected to substantially advance the mission of
the agency.
``(B) Determination.--The Administrator shall--
``(i) make a determination regarding an application
submitted under subparagraph (A) not later than 30 days
before the first day of the fiscal year for which the
application is submitted;
``(ii) publish the determination in the Federal Register;
and
``(iii) make a copy of the determination and any related
materials available to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives.
``(3) Maximum amount of award.--The head of a Federal
agency may not make an award under a pilot program in excess
of 3 times the dollar amounts generally established for Phase
II awards under subsection (j)(2)(D) or (p)(2)(B)(ix).
``(4) Matching.--The head of a Federal agency may not make
an award under a pilot program for SBIR or STTR Phase II
technology that will be acquired by the Federal Government
unless new private, Federal non-SBIR, or Federal non-STTR
funding that at least matches the award from the Federal
agency is provided for the SBIR or STTR Phase II technology.
``(5) Eligibility for award.--The head of a Federal agency
may make an award under a pilot program to any applicant that
is eligible to receive a Phase III award related to
technology developed in Phase II of an SBIR or STTR project.
``(6) Registration.--Any applicant that receives an award
under a pilot program shall register with the Administrator
in a registry that is available to the public.
``(7) Termination.--The authority to establish a pilot
program under this section expires at the end of fiscal year
2014.
``(8) Definitions.--In this section--
``(A) the term `covered Federal agency'--
``(i) means a Federal agency participating in the SBIR
program or the STTR program; and
``(ii) does not include the Department of Defense; and
``(B) the term `pilot program' means the program
established under paragraph (1).''.

SEC. 206. NANOTECHNOLOGY INITIATIVE.

(a) In General.--Section 9 of the Small Business Act (15
U.S.C. 638), as amended by this Act, is amended by adding at
the end the following:
``(ff) Nanotechnology Initiative.--Each Federal agency
participating in the SBIR or STTR program shall encourage the
submission of applications for support of nanotechnology
related projects to such program.''.
(b) Sunset.--Effective October 1, 2014, subsection (ff) of
the Small Business Act, as added by subsection (a) of this
section, is repealed.

SEC. 207. ACCELERATING CURES.

The Small Business Act (15 U.S.C. 631 et seq.) is amended--
(1) by redesignating section 44 as section 45; and
(2) by inserting after section 43 the following:

``SEC. 44. SMALL BUSINESS INNOVATION RESEARCH PROGRAM.

``(a) NIH Cures Pilot.--
``(1) Establishment.--An independent advisory board shall
be established at the National Academy of Sciences (in this
section referred to as the `advisory board') to conduct
periodic evaluations of the SBIR program (as that term is
defined in section 9) of each of the National Institutes of
Health (referred to in this section as the `NIH') institutes
and centers for the purpose of improving the management of
the SBIR program through data-driven assessment.
``(2) Membership.--
``(A) In general.--The advisory board shall consist of--
``(i) the Director of the NIH;
``(ii) the Director of the SBIR program of the NIH;
``(iii) senior NIH agency managers, selected by the
Director of NIH;
``(iv) industry experts, selected by the Council of the
National Academy of Sciences in consultation with the
Associate Administrator for Technology of the Administration
and the Director of the Office of Science and Technology
Policy; and
``(v) owners or operators of small business concerns that
have received an award under the SBIR program of the NIH,
selected by the Associate Administrator for Technology of the
Administration.
``(B) Number of members.--The total number of members
selected under clauses (iii), (iv), and (v) of subparagraph
(A) shall not exceed 10.
``(C) Equal representation.--The total number of members of
the advisory board selected under clauses (i), (ii), (iii),
and (iv) of subparagraph (A) shall be equal to the number of
members of the advisory board selected under subparagraph
(A)(v).
``(b) Addressing Data Gaps.--In order to enhance the
evidence-base guiding SBIR program

[[Page S7430]]

decisions and changes, the Director of the SBIR program of
the NIH shall address the gaps and deficiencies in the data
collection concerns identified in the 2007 report of the
National Academies of Science entitled `An Assessment of the
Small Business Innovation Research Program at the NIH'.
``(c) Pilot Program.--
``(1) In general.--The Director of the SBIR program of the
NIH may initiate a pilot program, under a formal mechanism
for designing, implementing, and evaluating pilot programs,
to spur innovation and to test new strategies that may
enhance the development of cures and therapies.
``(2) Considerations.--The Director of the SBIR program of
the NIH may consider conducting a pilot program to include
individuals with successful SBIR program experience in study
sections, hiring individuals with small business development
experience for staff positions, separating the commercial and
scientific review processes, and examining the impact of the
trend toward larger awards on the overall program.
``(d) Report to Congress.--The Director of the NIH shall
submit an annual report to Congress and the advisory board on
the activities of the SBIR program of the NIH under this
section.
``(e) SBIR Grants and Contracts.--
``(1) In general.--In awarding grants and contracts under
the SBIR program of the NIH each SBIR program manager shall
place an emphasis on applications that identify products and
services that may enhance the development of cures and
therapies.
``(2) Examination of commercialization and other metrics.--
The advisory board shall evaluate the implementation of the
requirement under paragraph (1) by examining increased
commercialization and other metrics, to be determined and
collected by the SBIR program of the NIH.
``(3) Phase i and ii.--To the greatest extent practicable,
the Director of the SBIR program of the NIH shall reduce the
time period between Phase I and Phase II funding of grants
and contracts under the SBIR program of the NIH to 6 months.
``(f) Limit.--Not more than a total of 1 percent of the
extramural budget (as defined in section 9 of the Small
Business Act (15 U.S.C. 638)) of the NIH for research or
research and development may be used for the pilot program
under subsection (c) and to carry out subsection (e).
``(g) Sunset.--This section shall cease to be effective on
the date that is 5 years after the date of enactment of the
SBIR/STTR Reauthorization Act of 2009.''.

TITLE III--OVERSIGHT AND EVALUATION

SEC. 301. STREAMLINING ANNUAL EVALUATION REQUIREMENTS.

Section 9(b) of the Small Business Act (15 U.S.C. 638(b)),
as amended by section 102 of this Act, is amended--
(1) in paragraph (7)--
(A) by striking ``STTR programs, including the data'' and
inserting the following: ``STTR programs, including--
``(A) the data'';
(B) by striking ``(g)(10), (o)(9), and (o)(15), the
number'' and all that follows through ``under each of the
SBIR and STTR programs, and a description'' and inserting the
following: ``(g)(8) and (o)(9); and
``(B) the number of proposals received from, and the number
and total amount of awards to, HUBZone small business
concerns and firms with venture capital investment (including
those majority owned and controlled by multiple venture
capital firms) under each of the SBIR and STTR programs;
``(C) a description of the extent to which each Federal
agency is increasing outreach and awards to firms owned and
controlled by women and social or economically disadvantaged
individuals under each of the SBIR and STTR programs;
``(D) general information about the implementation and
compliance with the allocation of funds required under
subsection (cc) for firms majority owned and controlled by
multiple venture capital firms under each of the SBIR and
STTR programs;
``(E) a detailed description of appeals of Phase III awards
and notices of noncompliance with the SBIR and the STTR
Policy Directives filed by the Administrator with Federal
agencies; and
``(F) a description''; and
(2) by inserting after paragraph (7) the following:
``(8) to coordinate the implementation of electronic
databases at each of the Federal agencies participating in
the SBIR program or the STTR program, including the technical
ability of the participating agencies to electronically share
data;''.

SEC. 302. DATA COLLECTION FROM AGENCIES FOR SBIR.

Section 9(g) of the Small Business Act (15 U.S.C. 638(g))
is amended--
(1) by striking paragraph (10);
(2) by redesignating paragraphs (8) and (9) as paragraphs
(9) and (10), respectively;
(3) by inserting after paragraph (7) the following:
``(8) collect annually, and maintain in a common format in
accordance with the simplified reporting requirements under
subsection (v), such information from awardees as is
necessary to assess the SBIR program, including information
necessary to maintain the database described in subsection
(k), including--
``(A) whether an awardee--
``(i) has venture capital or is majority owned and
controlled by multiple venture capital firms, and, if so--

``(I) the amount of venture capital that the awardee has
received as of the date of the award; and
``(II) the amount of additional capital that the awardee
has invested in the SBIR technology;

``(ii) has an investor that--

``(I) is an individual who is not a citizen of the United
States or a lawful permanent resident of the United States,
and if so, the name of any such individual; or
``(II) is a person that is not an individual and is not
organized under the laws of a State or the United States, and
if so the name of any such person;

``(iii) is owned by a woman or has a woman as a principal
investigator;
``(iv) is owned by a socially or economically disadvantaged
individual or has a socially or economically disadvantaged
individual as a principal investigator;
``(v) received assistance under the FAST program under
section 34 or the outreach program under subsection (s);
``(vi) is a faculty member or a student of an institution
of higher education, as that term is defined in section 101
of the Higher Education Act of 1965 (20 U.S.C. 1001); or
``(vii) is located in a State described in subsection
(u)(3); and
``(B) a justification statement from the agency, if an
awardee receives an award in an amount that is more than the
award guidelines under this section;''; and
(4) in paragraph (10), as so redesignated, by adding
``and'' at the end.

SEC. 303. DATA COLLECTION FROM AGENCIES FOR STTR.

Section 9(o) of the Small Business Act (15 U.S.C. 638(o))
is amended--
(1) by striking paragraph (9) and inserting the following:
``(9) collect annually, and maintain in a common format in
accordance with the simplified reporting requirements under
subsection (v), such information from applicants and awardees
as is necessary to assess the STTR program outputs and
outcomes, including information necessary to maintain the
database described in subsection (k), including--
``(A) whether an applicant or awardee--
``(i) has venture capital or is majority owned and
controlled by multiple venture capital firms, and, if so--

``(I) the amount of venture capital that the applicant or
awardee has received as of the date of the application or
award, as applicable; and
``(II) the amount of additional capital that the applicant
or awardee has invested in the SBIR technology;

``(ii) has an investor that--

``(I) is an individual who is not a citizen of the United
States or a lawful permanent resident of the United States,
and if so, the name of any such individual; or
``(II) is a person that is not an individual and is not
organized under the laws of a State or the United States, and
if so the name of any such person;

``(iii) is owned by a woman or has a woman as a principal
investigator;
``(iv) is owned by a socially or economically disadvantaged
individual or has a socially or economically disadvantaged
individual as a principal investigator;
``(v) received assistance under the FAST program under
section 34 or the outreach program under subsection (s);
``(vi) is a faculty member or a student of an institution
of higher education, as that term is defined in section 101
of the Higher Education Act of 1965 (20 U.S.C. 1001); or
``(vii) is located in a State in which the total value of
contracts awarded to small business concerns under all STTR
programs is less than the total value of contracts awarded to
small business concerns in a majority of other States, as
determined by the Administrator in biennial fiscal years,
beginning with fiscal year 2008, based on the most recent
statistics compiled by the Administrator; and
``(B) if an awardee receives an award in an amount that is
more than the award guidelines under this section, a
statement from the agency that justifies the award amount;'';
(2) in paragraph (14), by adding ``and'' at the end;
(3) by striking paragraph (15); and
(4) by redesignating paragraph (16) as paragraph (15).

SEC. 304. PUBLIC DATABASE.

Section 9(k)(1) of the Small Business Act (15 U.S.C.
638(k)(1)) is amended--
(1) in subparagraph (D), by striking ``and'' at the end;
(2) in subparagraph (E), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(F) for each small business concern that has received a
Phase I or Phase II SBIR or STTR award from a Federal agency,
whether the small business concern--
``(i) has venture capital and, if so, whether the small
business concern is registered as majority owned and
controlled by multiple venture capital companies as required
under subsection (cc)(3);
``(ii) is owned by a woman or has a woman as a principal
investigator;
``(iii) is owned by a socially or economically
disadvantaged individual or has a socially or economically
disadvantaged individual as a principal investigator;
``(iv) received assistance under the FAST program under
section 34 or the outreach program under subsection (s); or
``(v) is owned by a faculty member or a student of an
institution of higher education, as that term is defined in
section 101 of the Higher Education Act of 1965 (20 U.S.C.
1001).''.

SEC. 305. GOVERNMENT DATABASE.

Section 9(k)(2) of the Small Business Act (15 U.S.C.
638(k)(2)) is amended--
(1) by redesignating subparagraphs (C), (D), and (E) as
subparagraphs (D), (E), and (F), respectively;

[[Page S7431]]

(2) by inserting after subparagraph (B) the following:
``(C) includes, for each awardee--
``(i) the name, size, location, and any identifying number
assigned to the awardee by the Administrator;
``(ii) whether the awardee has venture capital, and, if
so--

``(I) the amount of venture capital as of the date of the
award;
``(II) the percentage of ownership of the awardee held by a
venture capital firm, including whether the awardee is
majority owned and controlled by multiple venture capital
firms; and
``(III) the amount of additional capital that the awardee
has invested in the SBIR technology, which information shall
be collected on an annual basis;

``(iii) the names and locations of any affiliates of the
awardee;
``(iv) the number of employees of the awardee;
``(v) the number of employees of the affiliates of the
awardee; and
``(vi) the names of, and the percentage of ownership of the
awardee held by--

``(I) any individual who is not a citizen of the United
States or a lawful permanent resident of the United States;
or
``(II) any person that is not an individual and is not
organized under the laws of a State or the United States;'';
and

(3) in subparagraph (D), as so redesignated--
(A) in clause (ii), by striking ``and'' at the end; and
(B) by adding at the end, the following:
``(iv) whether the applicant was majority owned and
controlled by multiple venture capital firms; and
``(v) the number of employees of the applicant;''.

SEC. 306. ACCURACY IN FUNDING BASE CALCULATIONS.

(a) In General.--Not later than 1 year after the date of
enactment of this Act, and every 3 years thereafter, the
Comptroller General of the United States shall--
(1) conduct a fiscal and management audit of the SBIR
program and the STTR program for the applicable period to--
(A) determine whether Federal agencies comply with the
expenditure amount requirements under subsections (f)(1) and
(n)(1) of section 9 of the Small Business Act (15 U.S.C.
638), as amended by this Act;
(B) assess the extent of compliance with the requirements
of section 9(i)(2) of the Small Business Act (15 U.S.C.
638(i)(2)) by Federal agencies participating in the SBIR
program or the STTR program and the Administration;
(C) assess whether it would be more consistent and
effective to base the amount of the allocations under the
SBIR program and the STTR program on a percentage of the
research and development budget of a Federal agency, rather
than the extramural budget of the Federal agency; and
(D) determine the portion of the extramural research or
research and development budget of a Federal agency that each
Federal agency spends for administrative purposes relating to
the SBIR program or STTR program, and for what specific
purposes, including the portion, if any, of such budget the
Federal agency spends for salaries and expenses, travel to
visit applicants, outreach events, marketing, and technical
assistance; and
(2) submit a report to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives regarding the audit
conducted under paragraph (1), including the assessments
required under subparagraphs (B) and (C), and the
determination made under subparagraph (D) of paragraph (1).
(b) Definition of Applicable Period.--In this section, the
term ``applicable period'' means--
(1) for the first report submitted under this section, the
period beginning on October 1, 2000, and ending on September
30 of the last full fiscal year before the date of enactment
of this Act for which information is available; and
(2) for the second and each subsequent report submitted
under this section, the period--
(A) beginning on October 1 of the first fiscal year after
the end of the most recent full fiscal year relating to which
a report under this section was submitted; and
(B) ending on September 30 of the last full fiscal year
before the date of the report.

SEC. 307. CONTINUED EVALUATION BY THE NATIONAL ACADEMY OF
SCIENCES.

Section 108 of the Small Business Reauthorization Act of
2000 (15 U.S.C. 638 note) is amended by adding at the end the
following:
``(e) Extensions and Enhancements of Authority.--
``(1) In general.--Not later than 6 months after the date
of enactment of the SBIR/STTR Reauthorization Act of 2009,
the head of each agency described in subsection (a), in
consultation with the Small Business Administration, shall
cooperatively enter into an agreement with the National
Academy of Sciences for the National Research Council to
conduct a study described in subsection (a)(1) and make
recommendations described in subsection (a)(2) not later than
4 years after the date of enactment of the SBIR/STTR
Reauthorization Act of 2009, and every 4 years thereafter.
``(2) Reporting.--An agreement under paragraph (1) shall
require that not later than 4 years after the date of
enactment of the SBIR/STTR Reauthorization Act of 2009, and
every 4 years thereafter, the National Research Council shall
submit to the head of the agency entering into the agreement,
the Committee on Small Business and Entrepreneurship of the
Senate, and the Committee on Small Business of the House of
Representatives a report regarding the study conducted under
paragraph (1) and containing the recommendations described in
paragraph (1).''.

SEC. 308. TECHNOLOGY INSERTION REPORTING REQUIREMENTS.

Section 9 of the Small Business Act (15 U.S.C. 638), as
amended by this Act, is amended by adding at the end the
following:
``(gg) Phase III Reporting.--The annual SBIR or STTR report
to Congress by the Administration under subsection (b)(7)
shall include, for each Phase III award made by the Federal
agency--
``(1) the name of the agency or component of the agency or
the non-Federal source of capital making the Phase III award;
``(2) the name of the small business concern or individual
receiving the Phase III award; and
``(3) the dollar amount of the Phase III award.''.

SEC. 309. INTELLECTUAL PROPERTY PROTECTIONS.

(a) In General.--The Comptroller General of the United
States shall conduct a study of the SBIR program to assess
whether--
(1) Federal agencies comply with the data rights
protections for SBIR awardees and the technologies of SBIR
awardees under section 9 of the Small Business Act (15 U.S.C.
638);
(2) the laws and policy directives intended to clarify the
scope of data rights, including in prototypes and mentor-
protege relationships and agreements with Federal
laboratories, are sufficient to protect SBIR awardees; and
(3) there is an effective grievance tracking process for
SBIR awardees who have grievances against a Federal agency
regarding data rights and a process for resolving those
grievances.
(b) Report.--Not later than 18 months after the date of
enactment of this Act, the Comptroller General shall submit
to the Committee on Small Business and Entrepreneurship of
the Senate and the Committee on Small Business of the House
of Representatives a report regarding the study conducted
under subsection (a).

TITLE IV--POLICY DIRECTIVES

SEC. 401. CONFORMING AMENDMENTS TO THE SBIR AND THE STTR
POLICY DIRECTIVES.

(a) In General.--Not later than 180 days after the date of
enactment of this Act, the Administrator shall promulgate
amendments to the SBIR Policy Directive and the STTR Policy
Directive to conform such directives to this Act and the
amendments made by this Act.
(b) Publishing SBIR Policy Directive and the STTR Policy
Directive in the Federal Register.--Not later than 180 days
after the date of enactment of this Act, the Administrator
shall publish the amended SBIR Policy Directive and the
amended STTR Policy Directive in the Federal Register.

Ms. LANDRIEU. Mr. President, I ask my colleagues to support passage
of S. 1233, the SBIR/STTR Reauthorization Act of 2009, with an
amendment from Dr. Coburn and Senator Feingold.
This legislation is important because it reauthorizes two extremely
successful programs--the Small Business Innovation Research and Small
Business Technology Transfer programs--otherwise known as SBIR and
STTR. These programs foster partnerships between small businesses and
the Federal Government to develop cutting-edge products and
technologies important to our country. The bill makes improvements to
these programs that will allow them to work better for small
businesses, while contributing to our economy, fulfilling the priority
research needs of the Nation, and expanding and diversifying our
military's supply base.
The SBIR program expires on July 31, 2009, so time is of the essence
for Congress to pass this legislation and get it to President Obama's
desk. While we need to act fast, we have not acted in haste. We have
given these programs full deliberation with numerous hearings,
roundtables, and meetings since 2006, including a hearing on July 12,
2006, a roundtable on August 1, 2007, a roundtable on October 18, 2007,
and a roundtable on June 4, 2009. We have also reviewed the nine
studies by the National Research Council, and studies by the Government
Accountability Office, on the SBIR program since it was last authorized
in 2000 to help guide the committee in drafting not only this bill, S.
1233, but also the SBIR and STTR reauthorization bills that the
committee adopted unanimously in the 109th Congress, S. 3778, and in
the 110th Congress, S. 3362.
The SBIR and STTR programs are two of the very few Federal programs
that tap into the scientific and technical community found in America's
small businesses. As I noted earlier, these programs foster government-
industry partnerships by making competitive awards to firms with the
best scientific proposals in response to the research needs of our
agencies and by helping to move technologies from the lab to the
marketplace or from the lab to insertion in a government program or
system.
The SBIR program was designed in 1982 to harness the innovative
capacity of America's small businesses to meet the needs of our Federal
agencies and

[[Page S7432]]

to help grow small, high-tech firms that, in turn, grow local economies
all across the Nation. The STTR program was originally created as a
pilot program in 1992 to stimulate partnerships between small
businesses and nonprofit research institutions, such as universities
like LSU and Louisiana Tech.
Since their inception, both programs have exceeded all expectations,
playing an unprecedented role in stimulating technological innovation,
in allowing small business to meet Federal research and development
needs, and in providing seed capital for small business to develop
ideas until they are able to attract outside investment.
The SBIR program has awarded more than $24 billion to more than
100,000 projects since it started. Recipients of SBIR and STTR awards
have produced more than 85,000 patents and have generated millions of
well-paying jobs across all 50 States. Both programs have garnered high
praise from well-respected sources, and governments around the world
are increasingly adopting SBIR-type programs to encourage innovation in
their countries.
In drafting this bill, we had many policy goals and interests to
balance. We wanted to improve the diversity of the programs,
geographically and otherwise, so that more States and individuals could
participate in Federal research and development for our country. We
also wanted to maintain a fair playing field so true small businesses
could continue to compete for this very small percent of the overall
Federal R&D budget. We wanted to encourage exploration of high-risk,
cutting-edge research. These goals, along with many others, were taken
into consideration in forging this bill. We made a number of important
compromises in this legislation--and the result is a fair bill that
will maintain the strength of these programs.
To keep these innovation programs strong, the bill reauthorizes the
programs for 8 years, as reflected in the amendment by Dr. Coburn,
instead of 14 years as adopted by the committee; increases the SBIR
program allocation by 1 percent, from 2.5 to 3.5 percent, at all
agencies, including the NIH, spread out over 10 years; increases the
STTR program allocation from .3 percent to .6 percent spread out over 6
years; makes firms majority owned and controlled by multiple venture
capital firms eligible for up to 18 percent of the SBIR funds at NIH
and up to 8 percent of the funds at the other agencies; and increases
the award guidelines for SBIR and STTR awards from $100,000 to $150,000
for Phase I and from $750,000 to $1 million for Phase II.
The bill also reauthorizes and enhances the Federal and State
Technology Partnership Program, or FAST Program, that was created by
Senator Bond in 2000, and the Rural Outreach Program, programs that
have been very effective in States such as Louisiana and Missouri in
increasing the participation of small business in Federal research and
development and the start-up of high-tech firms; strengthens the Office
of Technology at the SBA so that it has the authority and resources to
carry out its duty to oversee the SBIR and STTR programs across the
government; streamlines and improves data collection and reporting
requirements for the SBIR and STTR programs, including developing
metrics for annual evaluations by each participating agency, as
reflected in the amendment by Dr. Coburn; helps SBIR and STTR companies
move their technologies across the ``valley of death'' between the lab
and the marketplace and into products and technologies for the
agencies; and addresses ``jumbo'' awards, those awards that have
greatly exceeded the $100,000 and $750,000 guidelines for Phase I and
Phase II and cut out other businesses.
Reauthorizing these programs will ensure that small businesses
continue to play a part in our Federal research and development.
Currently, small businesses receive only about 4 percent of Federal
research and development dollars despite the fact that they employ
nearly 40 percent of America's scientists and engineers, produce more
than 14 times more patents than large businesses and universities, and
produce patents that are of higher quality and are more than twice as
likely to be cited. This legislation will help maintain and improve the
role of small businesses in our Federal research and development.
The SBIR and STTR programs have spurred so many amazing technologies.
I would just like to share a few of them with you here today. Among the
technologies pioneered by SBIR-funded small businesses are a machine
that uses lasers and computer cameras to sort and inspect bullets at a
much finer level than the human eye can manage, the technology that
creates the ``invisible'' condensation trail of the B-2 bomber, a
therapeutic drug to treat chronic inflammatory disease, and a nerve gas
protection system.
With regard to the bullet sorting technology, developed by CyberNet
Systems, a small, women-owned business located in Ann Arbor, MI, and
currently in use in Iraq and Afghanistan, that SBIR technology is
estimated to have saved taxpayers more than $300 million. Those are
real cost savings and tangible technological improvement.
In Louisiana, one company that has had great success in recent years
is Network Foundation Technologies, known as NiFTy. I visited this
company in Ruston, LA, a rural part of the State, in August 2008 and
was extremely impressed. NiFTy used an SBIR grant from the National
Science Foundation to develop technology that permits live streaming
video over the Internet without using large amounts of bandwidth. They
have been particularly successful bringing sporting events live over
the Internet. NiFTy has grown to more than 40 employees, many drawn
from the ranks of the Louisiana Tech science and engineering programs.
These are new, high-paying jobs that have been a strong asset to north
Louisiana's economy.
SBIR is a program that helps spur technology research and innovation
in areas you would not normally think of as high-tech corridors. Folks
think of California or Massachusetts, but not our growing high-tech
corridor in rural north Louisiana. LA Tech, UL-Monroe, Grambling
University, LSU-Shreveport, and Centenary College are all in that
corridor. For those who don't know, Ruston is between Monroe and
Shreveport, and LA Tech helps attract good companies because we have
good scientists and engineers. With SBIR and STTR, those entrepreneurs
started a company.
It is stories such as these that make the SBIR and STTR programs so
special to the economic and technological growth of this country. I
want to once again thank all those involved for their hard work on this
legislation, particularly our ranking member, Senator Snowe, and her
staff, as well as Senator Levin and his staff on the Committee on Armed
Services, Senator Durbin and his Appropriations staff, and Dr. Coburn
and Senator Feingold on the final amendment to the bill. It is my hope
that we can now pass this bill in the Senate and work expeditiously
with the House to get a bill on President Obama's desk before July 31.
Mr. REID. Mr. President, Senators Coburn and Feingold have an
amendment at the desk, and I ask unanimous consent for its
consideration; that the amendment be agreed to and the motion to
reconsider be laid upon the table; that the committee-reported
substitute, as amended, be agreed to and the motion to reconsider be
laid upon the table; that the bill, as amended, be read a third time.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment (No. 1502) was agreed to, as follows:

On page 61, line 20, strike ``2023'' and insert ``2017''.
On page 61, line 23, strike ``2023'' and insert ``2017''.
At the end, add the following:

SEC. 402. PRIORITIES FOR CERTAIN RESEARCH INITIATIVES.

(a) In General.--Section 9 of the Small Business Act (15
U.S.C. 638), as amended by this Act, is amended by adding at
the end the following:
``(hh) Research Initiatives.--To the extent that such
projects relate to the mission of the Federal agency, each
Federal agency participating in the SBIR program or STTR
program shall encourage the submission of applications for
support of projects relating to security, energy,
transportation, or improving the security and quality of the
water supply of the United States to such program.''.
(b) Sunset.--Effective October 1, 2014, section 9(hh) of
the Small Business Act, as added by subsection (a) of this
section, is repealed.

SEC. 403. REPORT ON SBIR AND STTR PROGRAM GOALS.

Section 9 of the Small Business Act (15 U.S.C. 638), as
amended by this Act, is amended by adding at the end the
following:

[[Page S7433]]

``(ii) Annual Report on SBIR and STTR Program Goals.--
``(1) Development of metrics.--The head of each Federal
agency required to participate in the SBIR program or the
STTR program shall develop metrics to evaluate the
effectiveness, and the benefit to the people of the United
States, of the SBIR program and the STTR program of the
Federal agency that--
``(A) are science-based and statistically driven;
``(B) reflect the mission of the Federal agency; and
``(C) include factors relating to the economic impact of
the programs.
``(2) Evaluation.--The head of each Federal agency
described in paragraph (1) shall conduct an annual evaluation
using the metrics developed under paragraph (1) of--
``(A) the SBIR program and the STTR program of the Federal
agency; and
``(B) the benefits to the people of the United States of
the SBIR program and the STTR program of the Federal agency.
``(3) Report.--
``(A) In general.--The head of each Federal agency
described in paragraph (1) shall submit to the appropriate
committees of Congress and the Administrator an annual report
describing in detail the results of an evaluation conducted
under paragraph (2).
``(B) Public availability of report.--The head of each
Federal agency described in paragraph (1) shall make each
report submitted under subparagraph (A) available to the
public online.
``(C) Definition.--In this paragraph, the term `appropriate
committees of Congress' means--
``(i) the Committee on Small Business and Entrepreneurship
of the Senate; and
``(ii) the Committee on Small Business and the Committee on
Science and Technology of the House of Representatives.''.

SEC. 404. COMPETITIVE SELECTION PROCEDURES FOR SBIR AND STTR
PROGRAMS.

Section 9 of the Small Business Act (15 U.S.C. 638), as
amended by this Act, is amended by adding at the end the
following:
``(jj) Competitive Selection Procedures for SBIR and STTR
Programs.--All funds awarded, appropriated, or otherwise made
available in accordance with subsection (f) or (n) must be
awarded pursuant to competitive and merit-based selection
procedures.''.

The committee amendment in the nature of a substitute, as amended,
was agreed to.
The bill (S. 1233), as amended, was ordered to be engrossed for a
third reading, and was read the third time.
Mr. REID. Mr. President, I now ask unanimous consent that the Senate
proceed to H.R. 2965, the House companion, which is at the desk; that
all after the enacting clause be stricken and the text of S. 1233, as
amended, be inserted in lieu thereof; the bill, as amended, be read a
third time and passed, and the motion to reconsider be laid upon the
table; that upon passage of H.R. 2965, S. 1233 be returned to the
calendar, with no intervening action or debate.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment was ordered to be engrossed and the bill to be read a
third time.
The bill was read the third time.
The bill (H.R. 2965), as amended, was passed, as follows:

H.R. 2965

Resolved, That the bill from the House of Representatives
(H.R. 2965) entitled ``An Act to amend the Small Business Act
with respect to the Small Business Innovation Research
Program and the Small Business Technology Transfer Program,
and for other purposes.'', do pass with the following
amendment:
Strike out all after the enacting clause and insert:

SECTION 1. SHORT TITLE.

This Act may be cited as the ``SBIR/STTR Reauthorization
Act of 2009''.

SEC. 2. TABLE OF CONTENTS.

The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.

TITLE I--REAUTHORIZATION OF THE SBIR AND STTR PROGRAMS

Sec. 101. Extension of termination dates.
Sec. 102. Status of the Office of Technology.
Sec. 103. SBIR allocation increase.
Sec. 104. STTR allocation increase.
Sec. 105. SBIR and STTR award levels.
Sec. 106. Agency and program collaboration.
Sec. 107. Elimination of Phase II invitations.
Sec. 108. Majority-venture investments in SBIR firms.
Sec. 109. SBIR and STTR special acquisition preference.
Sec. 110. Collaborating with Federal laboratories and research and
development centers.
Sec. 111. Notice requirement.

TITLE II--OUTREACH AND COMMERCIALIZATION INITIATIVES

Sec. 201. Rural and State outreach.
Sec. 202. SBIR-STEM Workforce Development Grant Pilot Program.
Sec. 203. Technical assistance for awardees.
Sec. 204. Commercialization program at Department of Defense.
Sec. 205. Commercialization Pilot Program for civilian agencies.
Sec. 206. Nanotechnology initiative.
Sec. 207. Accelerating cures.

TITLE III--OVERSIGHT AND EVALUATION

Sec. 301. Streamlining annual evaluation requirements.
Sec. 302. Data collection from agencies for SBIR.
Sec. 303. Data collection from agencies for STTR.
Sec. 304. Public database.
Sec. 305. Government database.
Sec. 306. Accuracy in funding base calculations.
Sec. 307. Continued evaluation by the National Academy of Sciences.
Sec. 308. Technology insertion reporting requirements.
Sec. 309. Intellectual property protections.

TITLE IV--POLICY DIRECTIVES

Sec. 401. Conforming amendments to the SBIR and the STTR Policy
Directives.
Sec. 402. Priorities for certain research initiatives.
Sec. 403. Report on SBIR and STTR program goals.
Sec. 404. Competitive selection procedures for SBIR and STTR programs.

SEC. 3. DEFINITIONS.

In this Act--
(1) the terms ``Administration'' and ``Administrator'' mean
the Small Business Administration and the Administrator
thereof, respectively;
(2) the terms ``extramural budget'', ``Federal agency'',
``Small Business Innovation Research Program'', ``SBIR'',
``Small Business Technology Transfer Program'', and ``STTR''
have the meanings given such terms in section 9 of the Small
Business Act (15 U.S.C. 638); and
(3) the term ``small business concern'' has the same
meaning as under section 3 of the Small Business Act (15
U.S.C. 632).

TITLE I--REAUTHORIZATION OF THE SBIR AND STTR PROGRAMS

SEC. 101. EXTENSION OF TERMINATION DATES.

(a) SBIR.--Section 9(m) of the Small Business Act (15
U.S.C. 638(m)) is amended by striking ``2008'' and inserting
``2017''.
(b) STTR.--Section 9(n)(1)(A) of the Small Business Act (15
U.S.C. 638(n)(1)(A)) is amended by striking ``2009'' and
inserting ``2017''.

SEC. 102. STATUS OF THE OFFICE OF TECHNOLOGY.

Section 9(b) of the Small Business Act (15 U.S.C. 638(b))
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'';
(3) by redesignating paragraph (8) as paragraph (9); and
(4) by adding at the end the following:
``(10) to maintain an Office of Technology to carry out the
responsibilities of the Administration under this section,
which shall be--
``(A) headed by the Assistant Administrator for Technology,
who shall report directly to the Administrator; and
``(B) independent from the Office of Government Contracting
of the Administration and sufficiently staffed and funded to
comply with the oversight, reporting, and public database
responsibilities assigned to the Office of Technology by the
Administrator.''.

SEC. 103. SBIR ALLOCATION INCREASE.

Section 9(f) of the Small Business Act (15 U.S.C. 638(f))
is amended--
(1) in paragraph (1)--
(A) in the matter preceding subparagraph (A), by striking
``Each'' and inserting ``Except as provided in paragraph
(2)(C), each'';
(B) in subparagraph (B), by striking ``and'' at the end;
and
(C) by striking subparagraph (C) and inserting the
following:
``(C) not less than 2.5 percent of such budget in each of
fiscal years 2009 and 2010;
``(D) not less than 2.6 percent of such budget in fiscal
year 2011;
``(E) not less than 2.7 percent of such budget in fiscal
year 2012;
``(F) not less than 2.8 percent of such budget in fiscal
year 2013;
``(G) not less than 2.9 percent of such budget in fiscal
year 2014;
``(H) not less than 3.0 percent of such budget in fiscal
year 2015;
``(I) not less than 3.1 percent of such budget in fiscal
year 2016;
``(J) not less than 3.2 percent of such budget in fiscal
year 2017;
``(K) not less than 3.3 percent of such budget in fiscal
year 2018;
``(L) not less than 3.4 percent of such budget in fiscal
year 2019; and
``(M) not less than 3.5 percent of such budget in fiscal
year 2020 and each fiscal year thereafter,''; and
(2) in paragraph (2)--
(A) by redesignating subparagraphs (A) and (B) as clauses
(i) and (ii), respectively, and adjusting the margins
accordingly;
(B) by striking ``A Federal agency'' and inserting the
following:
``(A) In general.--A Federal agency''; and
(C) by adding at the end the following:
``(B) Department of defense and department of energy.--For
the Department of Defense and the Department of Energy, to
the greatest extent practicable, the percentage of the
extramural budget in excess of 2.5 percent required to be
expended with small business concerns under subparagraphs (D)
through (M) of paragraph (1)--
``(i) may not be used for new Phase I or Phase II awards;
and

[[Page S7434]]

``(ii) shall be used for activities that further the
readiness levels of technologies developed under Phase II
awards, including conducting testing and evaluation to
promote the transition of such technologies into commercial
or defense products, or systems furthering the mission needs
of the Department of Defense or the Department of Energy, as
the case may be.''.

SEC. 104. STTR ALLOCATION INCREASE.

Section 9(n)(1)(B) of the Small Business Act (15 U.S.C.
638(n)(1)(B)) is amended--
(1) in clause (i), by striking ``and'' at the end;
(2) in clause (ii), by striking ``thereafter.'' and
inserting ``through fiscal year 2010;''; and
(3) by adding at the end the following:
``(iii) 0.4 percent for fiscal years 2011 and 2012;
``(iv) 0.5 percent for fiscal years 2013 and 2014; and
``(v) 0.6 percent for fiscal year 2015 and each fiscal year
thereafter.''.

SEC. 105. SBIR AND STTR AWARD LEVELS.

(a) SBIR Adjustments.--Section 9(j)(2)(D) of the Small
Business Act (15 U.S.C. 638(j)(2)(D)) is amended--
(1) by striking ``$100,000'' and inserting ``$150,000'';
and
(2) by striking ``$750,000'' and inserting ``$1,000,000''.
(b) STTR Adjustments.--Section 9(p)(2)(B)(ix) of the Small
Business Act (15 U.S.C. 638(p)(2)(B)(ix)) is amended--
(1) by striking ``$100,000'' and inserting ``$150,000'';
and
(2) by striking ``$750,000'' and inserting ``$1,000,000''.
(c) Triennial Adjustments.--Section 9 of the Small Business
Act (15 U.S.C. 638) is amended--
(1) in subsection (j)(2)(D)--
(A) by striking ``5 years'' and inserting ``3 years''; and
(B) by striking ``and programmatic considerations''; and
(2) in subsection (p)(2)(B)(ix) by striking ``greater or
lesser amounts to be awarded at the discretion of the
awarding agency,'' and inserting ``an adjustment for
inflation of such amounts once every 3 years,''.
(d) Limitation on Certain Awards.--Section 9 of the Small
Business Act (15 U.S.C. 638) is amended by adding at the end
the following:
``(aa) Limitation on Certain Awards.--
``(1) Limitation.--No Federal agency may issue an award
under the SBIR program or the STTR program if the size of the
award exceeds the award guidelines established under this
section by more than 50 percent.
``(2) Maintenance of information.--Participating agencies
shall maintain information on awards exceeding the guidelines
established under this section, including--
``(A) the amount of each award;
``(B) a justification for exceeding the award amount;
``(C) the identity and location of each award recipient;
and
``(D) whether a recipient has received any venture capital
investment and, if so, whether the recipient is majority-
owned and controlled by multiple venture capital companies.
``(3) Reports.--The Administrator shall include the
information described in paragraph (2) in the annual report
of the Administrator to Congress.
``(4) Rule of construction.--Nothing in this subsection
shall be construed to prevent a Federal agency from
supplementing an award under the SBIR program or the STTR
program using funds of the Federal agency that are not part
of the SBIR program or the STTR program of the Federal
agency.''.

SEC. 106. AGENCY AND PROGRAM COLLABORATION.

Section 9 of the Small Business Act (15 U.S.C. 638), as
amended by this Act, is amended by adding at the end the
following:
``(bb) Subsequent Phases.--
``(1) Agency collaboration.--A small business concern that
received an award from a Federal agency under this section
shall be eligible to receive an award for a subsequent phase
from another Federal agency, if the head of each relevant
Federal agency or the relevant component of the Federal
agency makes a written determination that the topics of the
relevant awards are the same and both agencies report the
awards to the Administrator for inclusion in the public
database under subsection (k).
``(2) SBIR and sttr collaboration.--A small business
concern which received an award under this section under the
SBIR program or the STTR program may receive an award under
this section for a subsequent phase in either the SBIR
program or the STTR program and the participating agency or
agencies shall report the awards to the Administrator for
inclusion in the public database under subsection (k).''.

SEC. 107. ELIMINATION OF PHASE II INVITATIONS.

(a) In General.--Section 9(e) of the Small Business Act (15
U.S.C. 638(e)) is amended--
(1) in paragraph (4)(B), by striking ``to further'' and
inserting: ``which shall not include any invitation, pre-
screening, pre-selection, or down-selection process for
eligibility for the second phase, that will further''; and
(2) in paragraph (6)(B), by striking ``to further develop
proposed ideas to'' and inserting ``which shall not include
any invitation, pre-screening, pre-selection, or down-
selection process for eligibility for the second phase, that
will further develop proposals that''.
(b) Technical and Conforming Amendments.--The Small
Business Act (15 U.S.C. 638) is amended--
(1) in section 9--
(A) in subsection (e)--
(i) in paragraph (8), by striking ``and'' at the end;
(ii) in paragraph (9)--

(I) by striking ``the second or the third phase'' and
inserting ``Phase II or Phase III''; and
(II) by striking the period at the end and inserting a
semicolon; and

(iii) by adding at the end the following:
``(10) the term `Phase I' means--
``(A) with respect to the SBIR program, the first phase
described in paragraph (4)(A); and
``(B) with respect to the STTR program, the first phase
described in paragraph (6)(A);
``(11) the term `Phase II' means--
``(A) with respect to the SBIR program, the second phase
described in paragraph (4)(B); and
``(B) with respect to the STTR program, the second phase
described in paragraph (6)(B); and
``(12) the term `Phase III' means--
``(A) with respect to the SBIR program, the third phase
described in paragraph (4)(C); and
``(B) with respect to the STTR program, the third phase
described in paragraph (6)(C).'';
(B) in subsection (j)--
(i) in paragraph (1)(B), by striking ``phase two'' and
inserting ``Phase II'';
(ii) in paragraph (2)--

(I) in subparagraph (B)--

(aa) by striking ``the third phase'' each place it appears
and inserting ``Phase III''; and
(bb) by striking ``the second phase'' and inserting ``Phase
II'';

(II) in subparagraph (D)--

(aa) by striking ``the first phase'' and inserting ``Phase
I''; and
(bb) by striking ``the second phase'' and inserting ``Phase
II'';

(III) in subparagraph (F), by striking ``the third phase''
and inserting ``Phase III'';
(IV) in subparagraph (G)--

(aa) by striking ``the first phase'' and inserting ``Phase
I''; and
(bb) by striking ``the second phase'' and inserting ``Phase
II''; and

(V) in subparagraph (H)--

(aa) by striking ``the first phase'' and inserting ``Phase
I'';
(bb) by striking ``second phase'' each place it appears and
inserting ``Phase II''; and
(cc) by striking ``third phase'' and inserting ``Phase
III''; and
(iii) in paragraph (3)--

(I) in subparagraph (A)--

(aa) by striking ``the first phase (as described in
subsection (e)(4)(A))'' and inserting ``Phase I'';
(bb) by striking ``the second phase (as described in
subsection (e)(4)(B))'' and inserting ``Phase II''; and
(cc) by striking ``the third phase (as described in
subsection (e)(4)(C))'' and inserting ``Phase III''; and

(II) in subparagraph (B), by striking ``second phase'' and
inserting ``Phase II'';

(C) in subsection (k)--
(i) by striking ``first phase'' each place it appears and
inserting ``Phase I''; and
(ii) by striking ``second phase'' each place it appears and
inserting ``Phase II'';
(D) in subsection (l)(2)--
(i) by striking ``the first phase'' and inserting ``Phase
I''; and
(ii) by striking ``the second phase'' and inserting ``Phase
II'';
(E) in subsection (o)(13)--
(i) in subparagraph (B), by striking ``second phase'' and
inserting ``Phase II''; and
(ii) in subparagraph (C), by striking ``third phase'' and
inserting ``Phase III'';
(F) in subsection (p)--
(i) in paragraph (2)(B)--

(I) in clause (vi)--

(aa) by striking ``the second phase'' and inserting ``Phase
II''; and
(bb) by striking ``the third phase'' and inserting ``Phase
III''; and

(II) in clause (ix)--

(aa) by striking ``the first phase'' and inserting ``Phase
I''; and
(bb) by striking ``the second phase'' and inserting ``Phase
II''; and
(ii) in paragraph (3)--

(I) by striking ``the first phase (as described in
subsection (e)(6)(A))'' and inserting ``Phase I'';
(II) by striking ``the second phase (as described in
subsection (e)(6)(B))'' and inserting ``Phase II''; and
(III) by striking ``the third phase (as described in
subsection (e)(6)(A))'' and inserting ``Phase III'';

(G) in subsection (q)(3)--
(i) in subparagraph (A)--

(I) in the subparagraph heading, by striking ``First
phase'' and inserting ``Phase i''; and
(II) by striking ``first phase'' and inserting ``Phase I'';
and

(ii) in subparagraph (B)--

(I) in the subparagraph heading, by striking ``Second
phase'' and inserting ``Phase ii''; and
(II) by striking ``second phase'' and inserting ``Phase
II'';

(H) in subsection (r)--
(i) in the subsection heading, by striking ``Third Phase''
and inserting ``Phase III'';
(ii) in paragraph (1)--

(I) in the first sentence--

(aa) by striking ``for the second phase'' and inserting
``for Phase II'';
(bb) by striking ``third phase'' and inserting ``Phase
III''; and
(cc) by striking ``second phase period'' and inserting
``Phase II period''; and

(II) in the second sentence--

(aa) by striking ``second phase'' and inserting ``Phase
II''; and
(bb) by striking ``third phase'' and inserting ``Phase
III''; and
(iii) in paragraph (2), by striking ``third phase'' and
inserting ``Phase III''; and
(I) in subsection (u)(2)(B), by striking ``the first
phase'' and inserting ``Phase I'';
(2) in section 34--
(A) in subsection (c)(2)(B)(ii), by striking ``first phase
and second phase SBIR awards'' and inserting ``Phase I and
Phase II SBIR awards (as defined in section 9(e))''; and
(B) in subsection (e)(2)(A)--
(i) in clause (i), by striking ``first phase awards'' and
all that follows and inserting

[[Page S7435]]

``Phase I awards (as defined in section 9(e));''; and
(ii) by striking ``first phase'' each place it appears and
inserting ``Phase I''; and
(3) in section 35(c)(2)(B)(vii), by striking ``third
phase'' and inserting ``Phase III''.

SEC. 108. MAJORITY-VENTURE INVESTMENTS IN SBIR FIRMS.

(a) In General.--Section 9 of the Small Business Act (15
U.S.C. 638), as amended by this Act, is amended by adding at
the end the following:
``(cc) Majority-venture Investments in SBIR Firms.--
``(1) Authority and determination.--
``(A) In general.--Upon a written determination provided
not later than 30 days in advance to the Administrator and to
the Committee on Small Business and Entrepreneurship of the
Senate and the Committee on Small Business of the House of
Representatives--
``(i) the Director of the National Institutes of Health may
award not more than 18 percent of the SBIR funds of the
National Institutes of Health allocated in accordance with
this Act, in the first full fiscal year beginning after the
date of enactment of this subsection, and each fiscal year
thereafter, to small business concerns that are owned in
majority part by venture capital companies and that satisfy
the qualification requirements under paragraph (2) through
competitive, merit-based procedures that are open to all
eligible small business concerns; and
``(ii) the head of any other Federal agency participating
in the SBIR program may award not more than 8 percent of the
SBIR funds of the Federal agency allocated in accordance with
this Act, in the first full fiscal year beginning after the
date of enactment of this subsection, and each fiscal year
thereafter, to small business concerns that are majority
owned by venture capital companies and that satisfy the
qualification requirements under paragraph (2) through
competitive, merit-based procedures that are open to all
eligible small business concerns.
``(B) Determination.--A written determination made under
subparagraph (A) shall explain how the use of the authority
under that subparagraph will induce additional venture
capital funding of small business innovations, substantially
contribute to the mission of the funding Federal agency,
demonstrate a need for public research, and otherwise fulfill
the capital needs of small business concerns for additional
financing for the SBIR project.
``(2) Qualification requirements.--The Administrator shall
establish requirements relating to the affiliation by small
business concerns with venture capital companies, which may
not exclude a United States small business concern from
participation in the program under paragraph (1) on the basis
that the small business concern is owned in majority part by,
or controlled by, more than 1 United States venture capital
company, so long as no single venture capital company owns
more than 49 percent of the small business concern.
``(3) Registration.--A small business concern that is
majority owned and controlled by multiple venture capital
companies and qualified for participation in the program
authorized under paragraph (1) shall--
``(A) register with the Administrator on the date that the
small business concern submits an application for an award
under the SBIR program; and
``(B) indicate whether the small business concern is
registered under subparagraph (A) in any SBIR proposal.
``(4) Compliance.--A Federal agency described in paragraph
(1) shall collect data regarding the number and dollar
amounts of phase I, phase II, and all other categories of
awards under the SBIR program, and the Administrator shall
report on the data and the compliance of each such Federal
agency with the maximum amounts under paragraph (1) as part
of the annual report by the Administration under subsection
(b)(7).
``(5) Enforcement.--If a Federal agency awards more than
the amount authorized under paragraph (1) for a purpose
described in paragraph (1), the amount awarded in excess of
the amount authorized under paragraph (1) shall be
transferred to the funds for general SBIR programs from the
non-SBIR research and development funds of the Federal agency
within 60 days of the date on which the Federal agency
awarded more than the amount authorized under paragraph (1)
for a purpose described in paragraph (1).''.
(b) Technical and Conforming Amendment.--Section 3 of the
Small Business Act (15 U.S.C. 632) is amended by adding at
the end the following:
``(t) Venture Capital Company.--In this Act, the term
`venture capital company' means an entity described in clause
(i), (v), or (vi) of section 121.103(b)(5) of title 13, Code
of Federal Regulations (or any successor thereto).''.
(c) Assistance for Determining Affiliates.--Not later than
30 days after the date of enactment of this Act, the
Administrator shall post on the website of the Administration
(with a direct link displayed on the homepage of the website
of the Administration or the SBIR website of the
Administration)--
(1) a clear explanation of the SBIR affiliation rules under
part 121 of title 13, Code of Federal Regulations; and
(2) contact information for officers or employees of the
Administration who--
(A) upon request, shall review an issue relating to the
rules described in paragraph (1); and
(B) shall respond to a request under subparagraph (A) not
later than 20 business days after the date on which the
request is received.

SEC. 109. SBIR AND STTR SPECIAL ACQUISITION PREFERENCE.

Section 9(r) of the Small Business Act (15 U.S.C. 638(r))
is amended by adding at the end the following:
``(4) Phase iii awards.--To the greatest extent
practicable, Federal agencies and Federal prime contractors
shall issue Phase III awards relating to technology,
including sole source awards, to the SBIR and STTR award
recipients that developed the technology.''.

SEC. 110. COLLABORATING WITH FEDERAL LABORATORIES AND
RESEARCH AND DEVELOPMENT CENTERS.

Section 9 of the Small Business Act (15 U.S.C. 638), as
amended by this Act, is amended by adding at the end the
following:
``(dd) Collaborating With Federal Laboratories and Research
and Development Centers.--
``(1) Authorization.--Subject to the limitations under this
section, the head of each participating Federal agency may
make SBIR and STTR awards to any eligible small business
concern that--
``(A) intends to enter into an agreement with a Federal
laboratory or federally funded research and development
center for portions of the activities to be performed under
that award; or
``(B) has entered into a cooperative research and
development agreement (as defined in section 12(d) of the
Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C.
3710a(d))) with a Federal laboratory.
``(2) Prohibition.--No Federal agency shall--
``(A) condition an SBIR or STTR award upon entering into
agreement with any Federal laboratory or any federally funded
laboratory or research and development center for any portion
of the activities to be performed under that award;
``(B) approve an agreement between a small business concern
receiving a SBIR or STTR award and a Federal laboratory or
federally funded laboratory or research and development
center, if the small business concern performs a lesser
portion of the activities to be performed under that award
than required by this section and by the SBIR Policy
Directive and the STTR Policy Directive of the Administrator;
or
``(C) approve an agreement that violates any provision,
including any data rights protections provision, of this
section or the SBIR and the STTR Policy Directives.
``(3) Implementation.--Not later than 180 days after the
date of enactment of this subsection, the Administrator shall
modify the SBIR Policy Directive and the STTR Policy
Directive issued under this section to ensure that small
business concerns--
``(A) have the flexibility to use the resources of the
Federal laboratories and federally funded research and
development centers; and
``(B) are not mandated to enter into agreement with any
Federal laboratory or any federally funded laboratory or
research and development center as a condition of an
award.''.

SEC. 111. NOTICE REQUIREMENT.

The head of any Federal agency involved in a case or
controversy before any Federal judicial or administrative
tribunal concerning the SBIR program or the STTR program
shall provide timely notice, as determined by the
Administrator, of the case or controversy to the
Administrator.

TITLE II--OUTREACH AND COMMERCIALIZATION INITIATIVES

SEC. 201. RURAL AND STATE OUTREACH.

(a) Outreach.--Section 9 of the Small Business Act (15
U.S.C. 638) is amended by inserting after subsection (r) the
following:
``(s) Outreach.--
``(1) Definition of eligible state.--In this subsection,
the term `eligible State' means a State--
``(A) for which the total value of contracts awarded to the
State under this section during the most recent fiscal year
for which data is available was less than $5,000,000; and
``(B) that certifies to the Administrator that the State
will, upon receipt of assistance under this subsection,
provide matching funds from non-Federal sources in an amount
that is not less than 50 percent of the amount provided under
this subsection.
``(2) Program authority.--Of amounts made available to
carry out this section for each of fiscal years 2010 through
2014, the Administrator may expend with eligible States not
more than $5,000,000 in each such fiscal year in order to
increase the participation of small business concerns located
in those States in the programs under this section.
``(3) Amount of assistance.--The amount of assistance
provided to an eligible State under this subsection in any
fiscal year--
``(A) shall be equal to not more than 50 percent of the
total amount of matching funds from non-Federal sources
provided by the State; and
``(B) shall not exceed $100,000.
``(4) Use of assistance.--Assistance provided to an
eligible State under this subsection shall be used by the
State, in consultation with State and local departments and
agencies, for programs and activities to increase the
participation of small business concerns located in the State
in the programs under this section, including--
``(A) the establishment of quantifiable performance goals,
including goals relating to--
``(i) the number of program awards under this section made
to small business concerns in the State; and
``(ii) the total amount of Federal research and development
contracts awarded to small business concerns in the State;
``(B) the provision of competition outreach support to
small business concerns in the State that are involved in
research and development; and
``(C) the development and dissemination of educational and
promotional information relating to the programs under this
section to small business concerns in the State.''.
(b) Federal and State Program Extension.--Section 34 of the
Small Business Act (15 U.S.C. 657d) is amended--

[[Page S7436]]

(1) in subsection (h), by striking ``2001 through 2005''
each place it appears and inserting ``2010 through 2014'';
and
(2) in subsection (i), by striking ``2005'' and inserting
``2014''.
(c) Matching Requirements.--Section 34(e)(2) of the Small
Business Act (15 U.S.C. 657d(e)(2)) is amended--
(1) in subparagraph (A)--
(A) in clause (i), by striking ``50 cents'' and inserting
``35 cents''; and
(B) in clause (iii), by striking ``75 cents'' and inserting
``50 cents'';
(2) in subparagraph (B), by striking ``50 cents'' and
inserting ``35 cents'';
(3) by redesignating subparagraphs (C) and (D) as
subparagraphs (D) and (E), respectively; and
(4) by inserting after subparagraph (B) the following:
``(C) Rural areas.--
``(i) In general.--Except as provided in clause (ii), the
non-Federal share of the cost of the activity carried out
using an award or under a cooperative agreement under this
section shall be 35 cents for each Federal dollar that will
be directly allocated by a recipient described in paragraph
(A) to serve small business concerns located in a rural area.
``(ii) Enhanced rural awards.--For a recipient located in a
rural area that is located in a State described in
subparagraph (A)(i), the non-Federal share of the cost of the
activity carried out using an award or under a cooperative
agreement under this section shall be 15 cents for each
Federal dollar that will be directly allocated by a recipient
described in paragraph (A) to serve small business concerns
located in the rural area.
``(iii) Definition of rural area.--In this subparagraph,
the term `rural area' has the meaning given that term in
section 1393(a)(2)) of the Internal Revenue Code of 1986.''.

SEC. 202. SBIR-STEM WORKFORCE DEVELOPMENT GRANT PILOT
PROGRAM.

(a) Pilot Program Established.--From amounts made available
to carry out this section, the Administrator shall establish
a SBIR-STEM Workforce Development Grant Pilot Program to
encourage the business community to provide workforce
development opportunities for college students, in the fields
of science, technology, engineering, and math (in this
section referred to as ``STEM college students''), by
providing a SBIR bonus grant.
(b) Eligible Entities Defined.--In this section the term
``eligible entity'' means a grantee receiving a grant under
the SBIR Program on the date of the bonus grant under
subsection (a) that provides an internship program for STEM
college students.
(c) Awards.--An eligible entity shall receive a bonus grant
equal to 10 percent of either a Phase I or Phase II grant, as
applicable, with a total award maximum of not more than
$10,000 per year.
(d) Evaluation.--Following the fourth year of funding under
this section, the Administrator shall submit a report to
Congress on the results of the SBIR-STEM Workforce
Development Grant Pilot Program.
(e) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section--
(1) $1,000,000 for fiscal year 2011;
(2) $1,000,000 for fiscal year 2012;
(3) $1,000,000 for fiscal year 2013;
(4) $1,000,000 for fiscal year 2014; and
(5) $1,000,000 for fiscal year 2015.

SEC. 203. TECHNICAL ASSISTANCE FOR AWARDEES.

Section 9(q)(3) of the Small Business Act (15 U.S.C.
638(q)(3)) is amended--
(1) in subparagraph (A), by striking ``$4,000'' and
inserting ``$5,000'';
(2) in subparagraph (B)--
(A) by striking ``, with funds available from their SBIR
awards,''; and
(B) by striking ``$4,000 per year'' and inserting ``$5,000
per year, which shall be in addition to the amount of the
recipient's award''; and
(3) by adding at the end the following:
``(C) Flexibility.--In carrying out subparagraphs (A) and
(B), each Federal agency shall provide the allowable amounts
to a recipient that meets the eligibility requirements under
the applicable subparagraph, if the recipient requests to
seek technical assistance from an individual or entity other
than the vendor selected under paragraph (2) by the Federal
agency.
``(D) Limitation.--A Federal agency may not--
``(i) use the amounts authorized under subparagraph (A) or
(B) unless the vendor selected under paragraph (2) provides
the technical assistance to the recipient; or
``(ii) enter a contract with a vendor under paragraph (2)
under which the amount provided for technical assistance is
based on total number of Phase I or Phase II awards.''.

SEC. 204. COMMERCIALIZATION PROGRAM AT DEPARTMENT OF DEFENSE.

Section 9(y) of the Small Business Act (15 U.S.C. 638(y))
is amended--
(1) in the subsection heading, by striking ``Pilot'';
(2) by striking ``Pilot'' each place that term appears;
(3) in paragraph (1)--
(A) by inserting ``or Small Business Technology Transfer
Program'' after ``Small Business Innovation Research
Program''; and
(B) by adding at the end the following: ``The authority to
create and administer a Commercialization Program under this
subsection may not be construed to eliminate or replace any
other SBIR program or STTR program that enhances the
insertion or transition of SBIR or STTR technologies,
including any such program in effect on the date of enactment
of the National Defense Authorization Act for Fiscal Year
2006 (Public Law 109-163; 119 Stat. 3136).'';
(4) in paragraph (2), by inserting ``or Small Business
Technology Transfer Program'' after ``Small Business
Innovation Research Program'';
(5) in paragraph (4), by inserting ``or Small Business
Technology Transfer Program'' after ``Small Business
Innovation Research Program'';
(6) by striking paragraph (6);
(7) by redesignating paragraph (5) as paragraph (7); and
(8) by inserting after paragraph (4) the following:
``(5) Insertion incentives.--For any contract with a value
of not less than $100,000,000, the Secretary of Defense is
authorized to--
``(A) establish goals for the transition of Phase III
technologies in subcontracting plans; and
``(B) require a prime contractor on such a contract to
report the number and dollar amount of contracts entered into
by that prime contractor for Phase III SBIR or STTR projects.
``(6) Goal for sbir and sttr technology insertion.--The
Secretary of Defense shall--
``(A) set a goal to increase the number of Phase II SBIR
contracts and the number of Phase II STTR contracts awarded
by that Secretary that lead to technology transition into
programs of record or fielded systems;
``(B) use incentives in effect on the date of enactment of
the SBIR/STTR Reauthorization Act of 2009, or create new
incentives, to encourage agency program managers and prime
contractors to meet the goal under subparagraph (A); and
``(C) include in the annual report to Congress the
percentage of contracts described in subparagraph (A) awarded
by that Secretary, and information on the ongoing status of
projects funded through the Commercialization Program and
efforts to transition these technologies into programs of
record or fielded systems.''.

SEC. 205. COMMERCIALIZATION PILOT PROGRAM FOR CIVILIAN
AGENCIES.

Section 9 of the Small Business Act (15 U.S.C. 638), as
amended by this Act, is amended by adding at the end the
following:
``(ee) Pilot Program.--
``(1) Authorization.--The head of each covered Federal
agency may set aside not more than 10 percent of the SBIR and
STTR funds of such agency for further technology development,
testing, and evaluation of SBIR and STTR Phase II
technologies.
``(2) Application by federal agency.--
``(A) In general.--A covered Federal agency may not
establish a pilot program unless such agency makes a written
application to the Administrator, not later than 90 days
before to the first day of the fiscal year in which the pilot
program is to be established, that describes a compelling
reason that additional investment in SBIR or STTR
technologies is necessary, including unusually high
regulatory, systems integration, or other costs relating to
development or manufacturing of identifiable, highly
promising small business technologies or a class of such
technologies expected to substantially advance the mission of
the agency.
``(B) Determination.--The Administrator shall--
``(i) make a determination regarding an application
submitted under subparagraph (A) not later than 30 days
before the first day of the fiscal year for which the
application is submitted;
``(ii) publish the determination in the Federal Register;
and
``(iii) make a copy of the determination and any related
materials available to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives.
``(3) Maximum amount of award.--The head of a Federal
agency may not make an award under a pilot program in excess
of 3 times the dollar amounts generally established for Phase
II awards under subsection (j)(2)(D) or (p)(2)(B)(ix).
``(4) Matching.--The head of a Federal agency may not make
an award under a pilot program for SBIR or STTR Phase II
technology that will be acquired by the Federal Government
unless new private, Federal non-SBIR, or Federal non-STTR
funding that at least matches the award from the Federal
agency is provided for the SBIR or STTR Phase II technology.
``(5) Eligibility for award.--The head of a Federal agency
may make an award under a pilot program to any applicant that
is eligible to receive a Phase III award related to
technology developed in Phase II of an SBIR or STTR project.
``(6) Registration.--Any applicant that receives an award
under a pilot program shall register with the Administrator
in a registry that is available to the public.
``(7) Termination.--The authority to establish a pilot
program under this section expires at the end of fiscal year
2014.
``(8) Definitions.--In this section--
``(A) the term `covered Federal agency'--
``(i) means a Federal agency participating in the SBIR
program or the STTR program; and
``(ii) does not include the Department of Defense; and
``(B) the term `pilot program' means the program
established under paragraph (1).''.

SEC. 206. NANOTECHNOLOGY INITIATIVE.

(a) In General.--Section 9 of the Small Business Act (15
U.S.C. 638), as amended by this Act, is amended by adding at
the end the following:
``(ff) Nanotechnology Initiative.--Each Federal agency
participating in the SBIR or STTR program shall encourage the
submission of applications for support of nanotechnology
related projects to such program.''.
(b) Sunset.--Effective October 1, 2014, subsection (ff) of
the Small Business Act, as added by subsection (a) of this
section, is repealed.

SEC. 207. ACCELERATING CURES.

The Small Business Act (15 U.S.C. 631 et seq.) is amended--

[[Page S7437]]

(1) by redesignating section 44 as section 45; and
(2) by inserting after section 43 the following:

``SEC. 44. SMALL BUSINESS INNOVATION RESEARCH PROGRAM.

``(a) NIH Cures Pilot.--
``(1) Establishment.--An independent advisory board shall
be established at the National Academy of Sciences (in this
section referred to as the `advisory board') to conduct
periodic evaluations of the SBIR program (as that term is
defined in section 9) of each of the National Institutes of
Health (referred to in this section as the `NIH') institutes
and centers for the purpose of improving the management of
the SBIR program through data-driven assessment.
``(2) Membership.--
``(A) In general.--The advisory board shall consist of--
``(i) the Director of the NIH;
``(ii) the Director of the SBIR program of the NIH;
``(iii) senior NIH agency managers, selected by the
Director of NIH;
``(iv) industry experts, selected by the Council of the
National Academy of Sciences in consultation with the
Associate Administrator for Technology of the Administration
and the Director of the Office of Science and Technology
Policy; and
``(v) owners or operators of small business concerns that
have received an award under the SBIR program of the NIH,
selected by the Associate Administrator for Technology of the
Administration.
``(B) Number of members.--The total number of members
selected under clauses (iii), (iv), and (v) of subparagraph
(A) shall not exceed 10.
``(C) Equal representation.--The total number of members of
the advisory board selected under clauses (i), (ii), (iii),
and (iv) of subparagraph (A) shall be equal to the number of
members of the advisory board selected under subparagraph
(A)(v).
``(b) Addressing Data Gaps.--In order to enhance the
evidence-base guiding SBIR program decisions and changes, the
Director of the SBIR program of the NIH shall address the
gaps and deficiencies in the data collection concerns
identified in the 2007 report of the National Academies of
Science entitled `An Assessment of the Small Business
Innovation Research Program at the NIH'.
``(c) Pilot Program.--
``(1) In general.--The Director of the SBIR program of the
NIH may initiate a pilot program, under a formal mechanism
for designing, implementing, and evaluating pilot programs,
to spur innovation and to test new strategies that may
enhance the development of cures and therapies.
``(2) Considerations.--The Director of the SBIR program of
the NIH may consider conducting a pilot program to include
individuals with successful SBIR program experience in study
sections, hiring individuals with small business development
experience for staff positions, separating the commercial and
scientific review processes, and examining the impact of the
trend toward larger awards on the overall program.
``(d) Report to Congress.--The Director of the NIH shall
submit an annual report to Congress and the advisory board on
the activities of the SBIR program of the NIH under this
section.
``(e) SBIR Grants and Contracts.--
``(1) In general.--In awarding grants and contracts under
the SBIR program of the NIH each SBIR program manager shall
place an emphasis on applications that identify products and
services that may enhance the development of cures and
therapies.
``(2) Examination of commercialization and other metrics.--
The advisory board shall evaluate the implementation of the
requirement under paragraph (1) by examining increased
commercialization and other metrics, to be determined and
collected by the SBIR program of the NIH.
``(3) Phase i and ii.--To the greatest extent practicable,
the Director of the SBIR program of the NIH shall reduce the
time period between Phase I and Phase II funding of grants
and contracts under the SBIR program of the NIH to 6 months.
``(f) Limit.--Not more than a total of 1 percent of the
extramural budget (as defined in section 9 of the Small
Business Act (15 U.S.C. 638)) of the NIH for research or
research and development may be used for the pilot program
under subsection (c) and to carry out subsection (e).
``(g) Sunset.--This section shall cease to be effective on
the date that is 5 years after the date of enactment of the
SBIR/STTR Reauthorization Act of 2009.''.

TITLE III--OVERSIGHT AND EVALUATION

SEC. 301. STREAMLINING ANNUAL EVALUATION REQUIREMENTS.

Section 9(b) of the Small Business Act (15 U.S.C. 638(b)),
as amended by section 102 of this Act, is amended--
(1) in paragraph (7)--
(A) by striking ``STTR programs, including the data'' and
inserting the following: ``STTR programs, including--
``(A) the data'';
(B) by striking ``(g)(10), (o)(9), and (o)(15), the
number'' and all that follows through ``under each of the
SBIR and STTR programs, and a description'' and inserting the
following: ``(g)(8) and (o)(9); and
``(B) the number of proposals received from, and the number
and total amount of awards to, HUBZone small business
concerns and firms with venture capital investment (including
those majority owned and controlled by multiple venture
capital firms) under each of the SBIR and STTR programs;
``(C) a description of the extent to which each Federal
agency is increasing outreach and awards to firms owned and
controlled by women and social or economically disadvantaged
individuals under each of the SBIR and STTR programs;
``(D) general information about the implementation and
compliance with the allocation of funds required under
subsection (cc) for firms majority owned and controlled by
multiple venture capital firms under each of the SBIR and
STTR programs;
``(E) a detailed description of appeals of Phase III awards
and notices of noncompliance with the SBIR and the STTR
Policy Directives filed by the Administrator with Federal
agencies; and
``(F) a description''; and
(2) by inserting after paragraph (7) the following:
``(8) to coordinate the implementation of electronic
databases at each of the Federal agencies participating in
the SBIR program or the STTR program, including the technical
ability of the participating agencies to electronically share
data;''.

SEC. 302. DATA COLLECTION FROM AGENCIES FOR SBIR.

Section 9(g) of the Small Business Act (15 U.S.C. 638(g))
is amended--
(1) by striking paragraph (10);
(2) by redesignating paragraphs (8) and (9) as paragraphs
(9) and (10), respectively;
(3) by inserting after paragraph (7) the following:
``(8) collect annually, and maintain in a common format in
accordance with the simplified reporting requirements under
subsection (v), such information from awardees as is
necessary to assess the SBIR program, including information
necessary to maintain the database described in subsection
(k), including--
``(A) whether an awardee--
``(i) has venture capital or is majority owned and
controlled by multiple venture capital firms, and, if so--

``(I) the amount of venture capital that the awardee has
received as of the date of the award; and
``(II) the amount of additional capital that the awardee
has invested in the SBIR technology;

``(ii) has an investor that--

``(I) is an individual who is not a citizen of the United
States or a lawful permanent resident of the United States,
and if so, the name of any such individual; or
``(II) is a person that is not an individual and is not
organized under the laws of a State or the United States, and
if so the name of any such person;

``(iii) is owned by a woman or has a woman as a principal
investigator;
``(iv) is owned by a socially or economically disadvantaged
individual or has a socially or economically disadvantaged
individual as a principal investigator;
``(v) received assistance under the FAST program under
section 34 or the outreach program under subsection (s);
``(vi) is a faculty member or a student of an institution
of higher education, as that term is defined in section 101
of the Higher Education Act of 1965 (20 U.S.C. 1001); or
``(vii) is located in a State described in subsection
(u)(3); and
``(B) a justification statement from the agency, if an
awardee receives an award in an amount that is more than the
award guidelines under this section;''; and
(4) in paragraph (10), as so redesignated, by adding
``and'' at the end.

SEC. 303. DATA COLLECTION FROM AGENCIES FOR STTR.

Section 9(o) of the Small Business Act (15 U.S.C. 638(o))
is amended--
(1) by striking paragraph (9) and inserting the following:
``(9) collect annually, and maintain in a common format in
accordance with the simplified reporting requirements under
subsection (v), such information from applicants and awardees
as is necessary to assess the STTR program outputs and
outcomes, including information necessary to maintain the
database described in subsection (k), including--
``(A) whether an applicant or awardee--
``(i) has venture capital or is majority owned and
controlled by multiple venture capital firms, and, if so--

``(I) the amount of venture capital that the applicant or
awardee has received as of the date of the application or
award, as applicable; and
``(II) the amount of additional capital that the applicant
or awardee has invested in the SBIR technology;

``(ii) has an investor that--

``(I) is an individual who is not a citizen of the United
States or a lawful permanent resident of the United States,
and if so, the name of any such individual; or
``(II) is a person that is not an individual and is not
organized under the laws of a State or the United States, and
if so the name of any such person;

``(iii) is owned by a woman or has a woman as a principal
investigator;
``(iv) is owned by a socially or economically disadvantaged
individual or has a socially or economically disadvantaged
individual as a principal investigator;
``(v) received assistance under the FAST program under
section 34 or the outreach program under subsection (s);
``(vi) is a faculty member or a student of an institution
of higher education, as that term is defined in section 101
of the Higher Education Act of 1965 (20 U.S.C. 1001); or
``(vii) is located in a State in which the total value of
contracts awarded to small business concerns under all STTR
programs is less than the total value of contracts awarded to
small business concerns in a majority of other States, as
determined by the Administrator in biennial fiscal years,
beginning with fiscal year 2008, based on the most recent
statistics compiled by the Administrator; and

[[Page S7438]]

``(B) if an awardee receives an award in an amount that is
more than the award guidelines under this section, a
statement from the agency that justifies the award amount;'';
(2) in paragraph (14), by adding ``and'' at the end;
(3) by striking paragraph (15); and
(4) by redesignating paragraph (16) as paragraph (15).

SEC. 304. PUBLIC DATABASE.

Section 9(k)(1) of the Small Business Act (15 U.S.C.
638(k)(1)) is amended--
(1) in subparagraph (D), by striking ``and'' at the end;
(2) in subparagraph (E), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(F) for each small business concern that has received a
Phase I or Phase II SBIR or STTR award from a Federal agency,
whether the small business concern--
``(i) has venture capital and, if so, whether the small
business concern is registered as majority owned and
controlled by multiple venture capital companies as required
under subsection (cc)(3);
``(ii) is owned by a woman or has a woman as a principal
investigator;
``(iii) is owned by a socially or economically
disadvantaged individual or has a socially or economically
disadvantaged individual as a principal investigator;
``(iv) received assistance under the FAST program under
section 34 or the outreach program under subsection (s); or
``(v) is owned by a faculty member or a student of an
institution of higher education, as that term is defined in
section 101 of the Higher Education Act of 1965 (20 U.S.C.
1001).''.

SEC. 305. GOVERNMENT DATABASE.

Section 9(k)(2) of the Small Business Act (15 U.S.C.
638(k)(2)) is amended--
(1) by redesignating subparagraphs (C), (D), and (E) as
subparagraphs (D), (E), and (F), respectively;
(2) by inserting after subparagraph (B) the following:
``(C) includes, for each awardee--
``(i) the name, size, location, and any identifying number
assigned to the awardee by the Administrator;
``(ii) whether the awardee has venture capital, and, if
so--

``(I) the amount of venture capital as of the date of the
award;
``(II) the percentage of ownership of the awardee held by a
venture capital firm, including whether the awardee is
majority owned and controlled by multiple venture capital
firms; and
``(III) the amount of additional capital that the awardee
has invested in the SBIR technology, which information shall
be collected on an annual basis;

``(iii) the names and locations of any affiliates of the
awardee;
``(iv) the number of employees of the awardee;
``(v) the number of employees of the affiliates of the
awardee; and
``(vi) the names of, and the percentage of ownership of the
awardee held by--

``(I) any individual who is not a citizen of the United
States or a lawful permanent resident of the United States;
or
``(II) any person that is not an individual and is not
organized under the laws of a State or the United States;'';
and

(3) in subparagraph (D), as so redesignated--
(A) in clause (ii), by striking ``and'' at the end; and
(B) by adding at the end, the following:
``(iv) whether the applicant was majority owned and
controlled by multiple venture capital firms; and
``(v) the number of employees of the applicant;''.

SEC. 306. ACCURACY IN FUNDING BASE CALCULATIONS.

(a) In General.--Not later than 1 year after the date of
enactment of this Act, and every 3 years thereafter, the
Comptroller General of the United States shall--
(1) conduct a fiscal and management audit of the SBIR
program and the STTR program for the applicable period to--
(A) determine whether Federal agencies comply with the
expenditure amount requirements under subsections (f)(1) and
(n)(1) of section 9 of the Small Business Act (15 U.S.C.
638), as amended by this Act;
(B) assess the extent of compliance with the requirements
of section 9(i)(2) of the Small Business Act (15 U.S.C.
638(i)(2)) by Federal agencies participating in the SBIR
program or the STTR program and the Administration;
(C) assess whether it would be more consistent and
effective to base the amount of the allocations under the
SBIR program and the STTR program on a percentage of the
research and development budget of a Federal agency, rather
than the extramural budget of the Federal agency; and
(D) determine the portion of the extramural research or
research and development budget of a Federal agency that each
Federal agency spends for administrative purposes relating to
the SBIR program or STTR program, and for what specific
purposes, including the portion, if any, of such budget the
Federal agency spends for salaries and expenses, travel to
visit applicants, outreach events, marketing, and technical
assistance; and
(2) submit a report to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives regarding the audit
conducted under paragraph (1), including the assessments
required under subparagraphs (B) and (C), and the
determination made under subparagraph (D) of paragraph (1).
(b) Definition of Applicable Period.--In this section, the
term ``applicable period'' means--
(1) for the first report submitted under this section, the
period beginning on October 1, 2000, and ending on September
30 of the last full fiscal year before the date of enactment
of this Act for which information is available; and
(2) for the second and each subsequent report submitted
under this section, the period--
(A) beginning on October 1 of the first fiscal year after
the end of the most recent full fiscal year relating to which
a report under this section was submitted; and
(B) ending on September 30 of the last full fiscal year
before the date of the report.

SEC. 307. CONTINUED EVALUATION BY THE NATIONAL ACADEMY OF
SCIENCES.

Section 108 of the Small Business Reauthorization Act of
2000 (15 U.S.C. 638 note) is amended by adding at the end the
following:
``(e) Extensions and Enhancements of Authority.--
``(1) In general.--Not later than 6 months after the date
of enactment of the SBIR/STTR Reauthorization Act of 2009,
the head of each agency described in subsection (a), in
consultation with the Small Business Administration, shall
cooperatively enter into an agreement with the National
Academy of Sciences for the National Research Council to
conduct a study described in subsection (a)(1) and make
recommendations described in subsection (a)(2) not later than
4 years after the date of enactment of the SBIR/STTR
Reauthorization Act of 2009, and every 4 years thereafter.
``(2) Reporting.--An agreement under paragraph (1) shall
require that not later than 4 years after the date of
enactment of the SBIR/STTR Reauthorization Act of 2009, and
every 4 years thereafter, the National Research Council shall
submit to the head of the agency entering into the agreement,
the Committee on Small Business and Entrepreneurship of the
Senate, and the Committee on Small Business of the House of
Representatives a report regarding the study conducted under
paragraph (1) and containing the recommendations described in
paragraph (1).''.

SEC. 308. TECHNOLOGY INSERTION REPORTING REQUIREMENTS.

Section 9 of the Small Business Act (15 U.S.C. 638), as
amended by this Act, is amended by adding at the end the
following:
``(gg) Phase III Reporting.--The annual SBIR or STTR report
to Congress by the Administration under subsection (b)(7)
shall include, for each Phase III award made by the Federal
agency--
``(1) the name of the agency or component of the agency or
the non-Federal source of capital making the Phase III award;
``(2) the name of the small business concern or individual
receiving the Phase III award; and
``(3) the dollar amount of the Phase III award.''.

SEC. 309. INTELLECTUAL PROPERTY PROTECTIONS.

(a) In General.--The Comptroller General of the United
States shall conduct a study of the SBIR program to assess
whether--
(1) Federal agencies comply with the data rights
protections for SBIR awardees and the technologies of SBIR
awardees under section 9 of the Small Business Act (15 U.S.C.
638);
(2) the laws and policy directives intended to clarify the
scope of data rights, including in prototypes and mentor-
protege relationships and agreements with Federal
laboratories, are sufficient to protect SBIR awardees; and
(3) there is an effective grievance tracking process for
SBIR awardees who have grievances against a Federal agency
regarding data rights and a process for resolving those
grievances.
(b) Report.--Not later than 18 months after the date of
enactment of this Act, the Comptroller General shall submit
to the Committee on Small Business and Entrepreneurship of
the Senate and the Committee on Small Business of the House
of Representatives a report regarding the study conducted
under subsection (a).

TITLE IV--POLICY DIRECTIVES

SEC. 401. CONFORMING AMENDMENTS TO THE SBIR AND THE STTR
POLICY DIRECTIVES.

(a) In General.--Not later than 180 days after the date of
enactment of this Act, the Administrator shall promulgate
amendments to the SBIR Policy Directive and the STTR Policy
Directive to conform such directives to this Act and the
amendments made by this Act.
(b) Publishing SBIR Policy Directive and the STTR Policy
Directive in the Federal Register.--Not later than 180 days
after the date of enactment of this Act, the Administrator
shall publish the amended SBIR Policy Directive and the
amended STTR Policy Directive in the Federal Register.

SEC. 402. PRIORITIES FOR CERTAIN RESEARCH INITIATIVES.

(a) In General.--Section 9 of the Small Business Act (15
U.S.C. 638), as amended by this Act, is amended by adding at
the end the following:
``(hh) Research Initiatives.--To the extent that such
projects relate to the mission of the Federal agency, each
Federal agency participating in the SBIR program or STTR
program shall encourage the submission of applications for
support of projects relating to security, energy,
transportation, or improving the security and quality of the
water supply of the United States to such program.''.
(b) Sunset.--Effective October 1, 2014, section 9(hh) of
the Small Business Act, as added by subsection (a) of this
section, is repealed.

SEC. 403. REPORT ON SBIR AND STTR PROGRAM GOALS.

Section 9 of the Small Business Act (15 U.S.C. 638), as
amended by this Act, is amended by adding at the end the
following:
``(ii) Annual Report on SBIR and STTR Program Goals.--
``(1) Development of metrics.--The head of each Federal
agency required to participate in the SBIR program or the
STTR program shall develop metrics to evaluate the
effectiveness,

[[Page S7439]]

and the benefit to the people of the United States, of the
SBIR program and the STTR program of the Federal agency
that--
``(A) are science-based and statistically driven;
``(B) reflect the mission of the Federal agency; and
``(C) include factors relating to the economic impact of
the programs.
``(2) Evaluation.--The head of each Federal agency
described in paragraph (1) shall conduct an annual evaluation
using the metrics developed under paragraph (1) of--
``(A) the SBIR program and the STTR program of the Federal
agency; and
``(B) the benefits to the people of the United States of
the SBIR program and the STTR program of the Federal agency.
``(3) Report.--
``(A) In general.--The head of each Federal agency
described in paragraph (1) shall submit to the appropriate
committees of Congress and the Administrator an annual report
describing in detail the results of an evaluation conducted
under paragraph (2).
``(B) Public availability of report.--The head of each
Federal agency described in paragraph (1) shall make each
report submitted under subparagraph (A) available to the
public online.
``(C) Definition.--In this paragraph, the term `appropriate
committees of Congress' means--
``(i) the Committee on Small Business and Entrepreneurship
of the Senate; and
``(ii) the Committee on Small Business and the Committee on
Science and Technology of the House of Representatives.''.

SEC. 404. COMPETITIVE SELECTION PROCEDURES FOR SBIR AND STTR
PROGRAMS.

Section 9 of the Small Business Act (15 U.S.C. 638), as
amended by this Act, is amended by adding at the end the
following:
``(jj) Competitive Selection Procedures for SBIR and STTR
Programs.--All funds awarded, appropriated, or otherwise made
available in accordance with subsection (f) or (n) must be
awarded pursuant to competitive and merit-based selection
procedures.''.

____________________