[Congressional Bills 110th Congress]
[From the U.S. Government Printing Office]
[H.R. 5819 Referred in Senate (RFS)]
2d Session
H. R. 5819
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 24, 2008
Received; read twice and referred to the Committee on Small Business
and Entrepreneurship
_______________________________________________________________________
AN ACT
To amend the Small Business Act to improve the Small Business
Innovation Research (SBIR) program and the Small Business Technology
Transfer (STTR) program, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``SBIR/STTR
Reauthorization Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--MODERNIZING THE SBIR AND STTR PROGRAMS
Sec. 101. Extension of termination dates.
Sec. 102. Increased SBIR and STTR award levels.
Sec. 103. Establishment of SBIR advisory boards.
Sec. 104. Increase in amount of technical assistance funds and option
to purchase technical assistance directly.
Sec. 105. Increased number of research topic solicitations annually and
shortened period for final decisions on
applications.
Sec. 106. Inclusion of energy-related research topics and rare-disease-
related research topics as deserving
``special consideration'' as SBIR research
topics.
Sec. 107. Agencies should fund vital R&D projects with the potential
for commercialization.
Sec. 108. Federal agency engagement with SBIR awardees that have been
awarded multiple Phase One awards but have
not been awarded Phase Two awards.
Sec. 109. Limitation on certain awards.
Sec. 110. Comptroller General audit of how Federal agencies calculate
extramural research budgets.
Sec. 111. Providing explanations to unsuccessful applicants.
TITLE II--VENTURE CAPITAL INVESTMENT STANDARDS
Sec. 201. Ensuring that innovative small businesses with substantial
investment from venture capital operating
companies are able to participate in the
SBIR program.
TITLE III--SBIR AND ECONOMIC DEVELOPMENT
Sec. 301. Reauthorization and modernization of Federal and State
Technology Partnership Program (FAST).
Sec. 302. Obtaining SBIR applicant's consent to release contact
information to economic development
organizations.
TITLE IV--ADVANCING COMMERCIALIZATION OF SBIR-FUNDED RESEARCH
Sec. 401. Clarifying the definition of ``Phase Three''.
Sec. 402. Agency research goals.
Sec. 403. Express authority for an agency to award sequential Phase Two
awards for SBIR-funded projects.
Sec. 404. Increased partnerships between SBIR awardees and prime
contractors, venture capital investment
companies, and larger businesses.
Sec. 405. Express authority to ``fast-track'' Phase Two awards for
promising Phase One research.
Sec. 406. Commercialization programs.
Sec. 407. Report on efforts to enhance manufacturing activities.
TITLE V--SUPPORTING PROGRAM UTILIZATION
Sec. 501. Agency databases to support program evaluation.
Sec. 502. Agency databases to support technology utilization.
Sec. 503. Interagency Policy Committee.
Sec. 504. Nanotechnology-related research topics.
Sec. 505. Rural preference.
Sec. 506. Priority for areas that have lost a major source of
employment.
Sec. 507. Veterans preference.
Sec. 508. Initiative to publicize the SBIR program to veterans.
Sec. 509. Preference for organizations that are making significant
contributions towards energy efficiency.
TITLE VI--IMPLEMENTATION
Sec. 601. Conforming amendments to the SBIR and STTR policy directives.
Sec. 602. National Research Council SBIR Study.
Sec. 603. SBIR awardee business operations.
Sec. 604. Prohibition of awards to aliens unlawfully present in the
United States.
Sec. 605. Prohibition on awards to firms in violation of immigration
laws.
TITLE I--MODERNIZING 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 ``2010''.
(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 ``2010''.
SEC. 102. INCREASED SBIR AND STTR AWARD LEVELS.
(a) SBIR Award Level.--Section 9(j)(2)(D) of the Small Business Act
(15 U.S.C. 638(j)(2)(D)) is amended by striking ``$100,000'' and
``$750,000'' and inserting ``$300,000'' and ``$2,200,000'',
respectively.
(b) STTR Award Level.--Section 9(p)(2)(B)(ix) of the Small Business
Act (15 U.S.C. 638(p)(2)(B)(ix)) is amended by striking ``$100,000''
and ``$750,000'' and inserting ``$300,000'' and ``$2,200,000'',
respectively.
(c) Annual Adjustments.--Section 9 of the Small Business Act (15
U.S.C. 638) is amended--
(1) in subsection (j)(2)(D), by striking ``and an
adjustment of such amounts once every 5 years to reflect
economic adjustments and programmatic considerations'' and
inserting ``and a mandatory annual adjustment of such amounts
to reflect economic adjustments and programmatic
considerations''; and
(2) in subsection (p)(2)(B)(ix), by striking ``greater or
lesser amounts'' and inserting ``with a mandatory annual
adjustment of such amounts to reflect economic adjustments and
programmatic considerations, and with lesser amounts''.
(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:
``(z) Limitation on Phase I and II Awards.--
``(1) In general.--No Federal agency shall issue an award
under the SBIR program or the STTR program if the size of the
award exceeds the amounts established under subsections
(j)(2)(D) and (p)(2)(B)(ix), except as provided in paragraph
(2).
``(2) Exception.--The prohibition in paragraph (1) does not
apply to an agency for a fiscal year if the head of the
agency--
``(A) notifies the Administrator that the agency
intends to issue awards in that fiscal year without
regard to the prohibition in paragraph (1); and
``(B) reports to the Committee on Small Business
and the Committee on Science and Technology of the
House of Representatives and the Committee on Small
Business and Entrepreneurship of the Senate at least
annually the number of instances in which the agency
issued an award that exceeds the amounts referred to in
paragraph (1) and the justification for each such
instance.''.
SEC. 103. ESTABLISHMENT OF SBIR ADVISORY BOARDS.
(a) In General.--Section 9 of the Small Business Act (15 U.S.C.
638) is amended by inserting after subsection (z) the following:
``(aa) SBIR Advisory Boards.--
``(1) Advisory boards required.--Each Federal agency that
is required by this section to conduct an SBIR program and that
administers annually $50,000,000 or more in SBIR grants shall
have an SBIR advisory board.
``(2) Members.--For each advisory board required by
paragraph (1), the members of the advisory board shall
include--
``(A) at least two individuals who are employees of
the agency;
``(B) at least two representatives of private
sector technology firms;
``(C) at least one individual who is a veteran who
owns a small business concern owned and controlled by
veterans; and
``(D) such other individuals as the agency
considers appropriate.
``(3) Security clearances.--Where it is appropriate to the
work of an advisory board required by paragraph (1) that the
members and staff of the advisory board have a security
clearance, the appropriate departments and agencies of the
executive branch shall cooperate with the advisory board to
expeditiously provide members and staff with appropriate
security clearances to the extent possible under applicable
procedures and requirements.
``(4) Meetings.--Each advisory board required by paragraph
(1) shall meet at least two times per year.
``(5) Duties.--Each advisory board required by paragraph
(1) shall--
``(A) review the quarterly reports submitted under
subsection (g)(8);
``(B) make recommendations to the agency about
potential modifications to the agency's SBIR program
that are intended to--
``(i) encourage applications, particularly
applications from small business concerns owned
and controlled by women, small business
concerns owned and controlled by minorities,
small business concerns owned and controlled by
service-disabled veterans, and small business
concerns in States and regions that
historically receive few SBIR awards; and
``(ii) support commercialization of Federal
research funded by SBIR awards; and
``(C) submit to the Committee on Small Business and
the Committee on Science and Technology of the House of
Representatives and the Committee on Small Business and
Entrepreneurship of the Senate an annual report on the
SBIR program conducted by the agency.
``(6) Contents of annual report.--The annual report
required by paragraph (5)(C) shall include a description of how
that agency's SBIR program is functioning and any
recommendations of the advisory board for strengthening that
agency's SBIR program. The annual report shall also state the
number and dollar amount of awards under the agency's SBIR
program, and under the agency's STTR program, that were made to
small business concerns owned and controlled by women, small
business concerns owned and controlled by minorities, small
business concerns owned and controlled by veterans, and small
business concerns in States and regions that historically
receive few SBIR awards.
``(7) Non-applicability of faca.--The Federal Advisory
Committee Act (5 U.S.C. App.) shall not apply to an advisory
board required by paragraph (1).''.
(b) Agency Reports to SBIR Advisory Boards.--Section 9(g)(8) of the
Small Business Act (15 U.S.C. 638(g)(8)) is amended by inserting before
the semicolon at the end the following: ``and, if the agency is
required by subsection (aa) to have an SBIR advisory board, submit a
quarterly report on the SBIR program to that SBIR advisory board''.
SEC. 104. INCREASE IN AMOUNT OF TECHNICAL ASSISTANCE FUNDS AND OPTION
TO PURCHASE TECHNICAL ASSISTANCE DIRECTLY.
Section 9(q) of the Small Business Act (15 U.S.C. 638(q)) is
amended--
(1) in paragraph (1)--
(A) by striking ``paragraph (2)'' and inserting
``paragraph (2)(A), or another Federal agency under
paragraph (2)(B),'';
(B) by striking ``and'' at the end of subparagraph
(C);
(C) by striking the period at the end of
subparagraph (D) and inserting ``; and''; and
(D) by adding at the end the following new
subparagraph:
``(E) implementing manufacturing processes and
production strategies for utilization.'';
(2) by amending paragraph (2) to read as follows:
``(2) Assistance providers.--
``(A) Vendor selection.--Each agency may select a
vendor to assist small business concerns to meet the
goals listed in paragraph (1) for a term not to exceed
3 years. Such selection shall be competitive and shall
utilize merit-based criteria.
``(B) Interagency collaboration.--In addition, each
agency may enter into a collaborative agreement with
the technical extension or assistance programs of other
Federal agencies in order to provide the assistance
described in paragraph (1).''; and
(3) in paragraph (3)--
(A) in subparagraph (A) by striking ``$4,000'' and
inserting ``$5,000'';
(B) by amending subparagraph (B) to read as
follows:
``(B) Second phase.--Each agency referred to in
paragraph (1) may provide directly, or authorize any
second phase SBIR award recipient to purchase with
funds available from their SBIR awards, services
described in paragraph (1), in an amount equal to not
more than $8,000 per year, per award.''; and
(C) by adding at the end the following:
``(C) Authority to opt out.--The Administrator
shall establish guidelines under which an award
recipient eligible to receive services under
subparagraph (A) may decline those services and receive
instead an amount equal to not more than $2,500, which
shall be in addition to the amount of the recipient's
award and which shall be used to purchase services
described in paragraph (1).''.
SEC. 105. INCREASED NUMBER OF RESEARCH TOPIC SOLICITATIONS ANNUALLY AND
SHORTENED PERIOD FOR FINAL DECISIONS ON APPLICATIONS.
(a) Increased Number of Research Topic Solicitations.--Section
9(g)(2) of the Small Business Act (15 U.S.C. 638(g)(2)) is amended by
inserting before the semicolon at the end the following: ``, but not
less often than twice per year''.
(b) Shortened Period for Final Decisions on Applications.--Section
9(g)(4) of that Act (15 U.S.C. 638(g)(4)) is amended--
(1) by inserting before the semicolon at the end the
following: ``: Provided, That if the agency is required by
subsection (aa) to have an SBIR advisory board--''; and
(2) by adding at the end the following:
``(A) a final decision on each proposal shall be
rendered not later than 90 days after the date on which
the solicitation closes;
``(B) the SBIR advisory board may, on a case by
case basis, extend the 90 days to 180 days; and
``(C) the SBIR advisory board shall include in each
annual report to Congress under subsection (aa) a
statement identifying how many times a decision was not
rendered in 90 days, how many times an extension was
granted, and how many times a decision was not rendered
in 180 days;''.
SEC. 106. INCLUSION OF ENERGY-RELATED RESEARCH TOPICS AND RARE-DISEASE-
RELATED RESEARCH TOPICS AS DESERVING ``SPECIAL
CONSIDERATION'' AS SBIR RESEARCH TOPICS.
Section 9(g)(3) of the Small Business Act (15 U.S.C. 638(g)(3)) is
amended--
(1) in the matter preceding subparagraph (A) by inserting
after ``critical technologies'' the following: ``or pressing
research priorities'';
(2) at the end of subparagraph (A) by striking ``or''; and
(3) by adding at the end the following:
``(C) the National Academy of Sciences, in the
final report issued by the `America's Energy Future:
Technology Opportunities, Risks, and Tradeoffs'
project, and in subsequent reports issued by the
National Academy of Sciences on sustainability, energy,
and alternative fuels;
``(D) the National Institutes of Health, in the
annual report on the rare diseases research activities
of the National Institutes of Health for fiscal year
2005, and in subsequent reports issued by the National
Institutes of Health on rare diseases research
activities;
``(E) the National Academy of Sciences, in the
final report issued by the `Transit Research and
Development: Federal Role in the National Program'
project and the `Transportation Research, Development
and Technology Strategic Plan (2006-2010)' issued by
the United States Department of Transportation Research
and Innovative Technology Administration, and in
subsequent reports issued by the National Academy of
Sciences and United States Department of Transportation
on transportation and infrastructure; or''.
SEC. 107. AGENCIES SHOULD FUND VITAL R&D PROJECTS WITH THE POTENTIAL
FOR COMMERCIALIZATION.
Section 9(j)(2) of the Small Business Act (15 U.S.C. 638(j)(2)), as
amended by section 103, is further amended--
(1) in subparagraph (H) by striking ``and'' at the end;
(2) in subparagraph (I) by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(J) procedures to ensure that the Administrator,
on an annual basis, submits to the Committee on Small
Business and the Committee on Science and Technology of
the House of Representatives and the Committee on Small
Business and Entrepreneurship of the Senate a list
identifying each small business concern that, for the
period covered by the preceding 5 fiscal years,
received 15 or more first phase SBIR awards and no
second phase SBIR awards.''.
SEC. 108. FEDERAL AGENCY ENGAGEMENT WITH SBIR AWARDEES THAT HAVE BEEN
AWARDED MULTIPLE PHASE ONE AWARDS BUT HAVE NOT BEEN
AWARDED PHASE TWO AWARDS.
Section 9(j) of the Small Business Act (15 U.S.C. 638(j)) is
amended by adding at the end the following:
``(4) Requirements relating to federal agency engagement
with certain first phase sbir awardees.--The Administrator
shall modify the policy directives issued pursuant to this
subsection to provide for each Federal agency required by this
section to conduct an SBIR program to engage with SBIR awardees
that have been awarded multiple first phase SBIR awards but
have not been awarded any second phase SBIR awards and to
develop performance metrics to measure awardee progression in
the SBIR program.''.
SEC. 109. 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:
``(bb) Subsequent Phases.--
``(1) In general.--A small business concern which 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 makes a written determination that the topics of the
relevant awards are the same.
``(2) Crossover between programs.--A small business concern
which received an award under this section under the SBIR
program or the STTR program may, at the discretion of the
granting agency, receive an award under this section for a
subsequent phase in either the SBIR program or the STTR
program.
``(3) Phase ii sbir applications.--An agency may permit an
applicant to apply directly for a Phase II award, as described
in subsection (e)(4)(B), without first completing a Phase I
award, as described in subsection (e)(4)(A), if the applicant
can demonstrate that project feasibility was achieved without
SBIR or other Federal funding.
``(4) Phase ii sttr applications.--An agency may permit an
applicant to submit proposals for Phase II awards, as described
in subsection (e)(6)(B), without first completing a Phase I
award, as described in subsection (e)(6)(A), if the applicant
can demonstrate it has accomplished Phase I through cooperative
research and development achieved without STTR or other Federal
funding.
``(cc) Waiver of Minimum Work Requirement.--A Federal agency making
an SBIR or STTR award under this section may waive the minimum small
business concern or research institution work requirements under
subsection (e)(7) if the agency determines that to provide such waiver
would be consistent with the purposes of this section and consistent
with achieving the objectives of the award proposal.''.
SEC. 110. COMPTROLLER GENERAL AUDIT OF HOW FEDERAL AGENCIES CALCULATE
EXTRAMURAL RESEARCH BUDGETS.
The Comptroller General of the United States shall carry out a
detailed audit of how Federal agencies calculate extramural research
budgets for purposes of calculating the size of the agencies' Small
Business Innovation Research and Small Business Technology Transfer
budgets. Not later than 1 year after the date of the enactment of this
Act, the Comptroller General shall submit to the Committee on Small
Business and the Committee on Science and Technology of the House of
Representatives and the Committee on Small Business and
Entrepreneurship of the Senate a report on the results of the audit.
SEC. 111. PROVIDING EXPLANATIONS TO UNSUCCESSFUL APPLICANTS.
Section 9 of the Small Business Act (15 U.S.C. 638) is amended by
adding at the end the following:
``(dd) Providing Explanations to Unsuccessful Applicants.--Whenever
an entity applies for, but does not receive, an award under an SBIR or
STTR program under this section, the Federal agency conducting the
program shall--
``(1) in a plain and conspicuous manner, notify that entity
that it can request an explanation (which must be of a
constructive nature) of the reasons why the entity did not
receive the award; and
``(2) provide such an explanation to that entity, if the
entity so requests.''.
TITLE II--VENTURE CAPITAL INVESTMENT STANDARDS
SEC. 201. ENSURING THAT INNOVATIVE SMALL BUSINESSES WITH SUBSTANTIAL
INVESTMENT FROM VENTURE CAPITAL OPERATING COMPANIES ARE
ABLE TO PARTICIPATE IN THE SBIR PROGRAM.
Section 9(e) of the Small Business Act (15 U.S.C. 638(e)) is
amended by striking ``and'' at the end of paragraph (8), striking the
period at the end of paragraph (9) and inserting ``; and'', and adding
at the end the following:
``(10) effective only for the SBIR and STTR programs,
notwithstanding any other amendment made by the SBIR/STTR
Reauthorization Act, the following shall apply:
``(A) A business concern that has more than 500
employees shall not qualify as a small business
concern.
``(B) In determining whether a small business
concern is independently owned and operated under
section 3(a)(1) or meets the small business size
standards instituted under section 3(a)(2), the
Administrator shall not consider a business concern to
be affiliated with a venture capital operating company
(or with any other business that the venture capital
operating company has financed) if--
``(i) the venture capital operating company
does not own 50 percent or more of the business
concern; and
``(ii) employees of the venture capital
operating company do not constitute a majority
of the board of directors of the business
concern.
``(C) A business concern shall be deemed to be
`independently owned and operated' if--
``(i) it is owned in majority part by one
or more natural persons or venture capital
operating companies;
``(ii) there is no single venture capital
operating company that owns 50 percent or more
of the business concern; and
``(iii) there is no single venture capital
operating company the employees of which
constitute a majority of the board of directors
of the business concern.
``(D) If a venture capital operating company
controlled by a business with more than 500 employees
(in this subparagraph referred to as a `VCOC under
large business control') has an ownership interest in a
small business concern that is owned in majority part
by venture capital operating companies, the small
business concern is eligible to receive an award under
the SBIR or STTR program only if--
``(i) not more than two VCOCs under large
business control have an ownership interest in
the small business concern;
``(ii) the VCOCs under large business
control do not collectively own more than 20
percent of the small business concern; and
``(iii) the VCOCs under large business
control do not collaborate with each other to
exercise more control over the small business
concern than they could otherwise exercise
individually.
``(E) The term `venture capital operating company'
means a business concern--
``(i) that--
``(I) is a Venture Capital
Operating Company, as that term is
defined in regulations promulgated by
the Secretary of Labor; or
``(II) is an entity that--
``(aa) is registered under
the Investment Company Act of
1940 (15 U.S.C. 80a-51 et
seq.); or
``(bb) is an investment
company, as defined in section
3(c)(14) of such Act (15 U.S.C.
80a-3(c)(14)), which is not
registered under such Act
because it is beneficially
owned by less than 100 persons;
and
``(ii) that is itself organized or
incorporated and domiciled in the United
States, or is controlled by a business concern
that is incorporated and domiciled in the
United States.''.
TITLE III--SBIR AND ECONOMIC DEVELOPMENT
SEC. 301. REAUTHORIZATION AND MODERNIZATION OF FEDERAL AND STATE
TECHNOLOGY PARTNERSHIP PROGRAM (FAST).
Section 9 of the Small Business Act (15 U.S.C. 638) is amended by
inserting after subsection (r) the following:
``(s) Outreach and Support Activities.--
``(1) In general.--Subject to the other provisions of this
subsection, the Administrator shall make grants on a
competitive basis to organizations, to be used by the
organizations to do one or both of the following:
``(A) To conduct outreach efforts to increase
participation in the programs under this section.
``(B) To provide application support and
entrepreneurial and business skills support to
prospective participants in the programs under this
section.
``(2) Program authority.--Of the amounts made available to
carry out this section for each of fiscal years 2009 through
2010, the Administrator may expend not more than $10,000,000 in
each such fiscal year to carry out paragraph (1).
``(3) Amount of assistance.--For each of subparagraphs (A)
and (B) of paragraph (1), the amount of assistance provided to
an organization under that subparagraph in any fiscal year--
``(A) shall be equal to the total amount of
matching funds from non-Federal sources provided by the
organization; and
``(B) shall not exceed $250,000.
``(4) Direction.--An organization receiving funds under
paragraph (1) shall, in using those funds, direct its
activities at one or both of the following:
``(A) Small business concerns located in geographic
areas that are underrepresented in the programs under
this section.
``(B) Small business concerns owned and controlled
by women, small business concerns owned and controlled
by service-disabled veterans, and small business
concerns owned and controlled by minorities.
``(5) Advisory board.--
``(A) Establishment.--Not later than 90 days after
the date of the enactment of this subsection, the
Administrator shall establish an advisory board for the
activities carried out under this subsection.
``(B) Non-applicability of faca.--The Federal
Advisory Committee Act (5 U.S.C. App.) shall not apply
to the advisory board.
``(C) Members.--The members of the advisory board
shall include the following:
``(i) The Administrator (or the
Administrator's designee).
``(ii) For each Federal agency required by
this section to conduct an SBIR program, the
head of the agency (or the designee of the head
of the agency).
``(iii) Representatives of small business
concerns that are current or former recipients
of SBIR awards, or representatives of
organizations of such concerns.
``(iv) Representatives of service providers
of SBIR outreach and assistance, or
representatives of organizations of such
service providers.
``(D) Duties.--The advisory board shall have the
following duties:
``(i) To develop guidelines for awards
under paragraph (1)(A), including guidelines
relating to award sizes, proposal requirements,
metrics for monitoring awardee performance, and
metrics for measuring overall value of the
activities carried out by the awardees.
``(ii) To identify opportunities for
coordinated outreach, technical assistance, and
commercialization activities among Federal
agencies, the recipients of the awards under
paragraph (1)(A), and applicants and recipients
of SBIR awards, including opportunities such
as--
``(I) podcasting or webcasting for
conferences, training workshops, and
other events;
``(II) shared online resources to
match prospective applicants with the
network of paragraph (1)(A) recipients;
and
``(III) venture capital conferences
tied to technologies and sectors that
cross agencies.
``(iii) To review and recommend revisions
to activities under paragraph (1)(A).
``(iv) To submit to the Committee on Small
Business and Entrepreneurship of the Senate and
the Committee on Small Business and the
Committee on Science and Technology of the
House of Representatives an annual report on
the activities carried out under paragraph
(1)(A) and the effectiveness and impact of
those activities.
``(6) Selection criteria.--In awarding grants under this
subsection, the Administrator shall use selection criteria
developed by the advisory board established under paragraph
(5). The criteria shall include--
``(A) criteria designed to give preference to
applicants who propose to carry out activities that
will reach either an underperforming geographic area or
an underrepresented population group (as measured by
the number of SBIR applicants);
``(B) criteria designed to give preference to
applicants who propose to carry out activities that
complement, and are integrated into, the existing
public-private innovation support system for the
targeted region or population;
``(C) criteria designed to give preference to
applicants who propose to measure the effectiveness of
the proposed activities; and
``(D) criteria designed to give preference to
applicants who include an SBDC program that is
accredited for its technology services.
``(7) Peer review.--In awarding grants under this
subsection, the Administrator shall use a peer review process.
Reviewers shall include--
``(A) SBIR program managers for agencies required
by this section to conduct SBIR programs; and
``(B) private individuals and organizations that
are knowledgeable about SBIR, the innovation process,
technology commercialization, and State and regional
technology-based economic development programs.
``(8) Per-state limitations.--
``(A) In general.--To be eligible to receive a
grant under this subsection, the applicant must have
the written endorsement of the Governor of the State
where the targeted regions or populations are located
(if the regions or populations are located in more than
one State, the applicant must have the written
endorsement of the Governor of each such State). Such
an endorsement must indicate that the Governor will
ensure that the activities to be carried out under the
grant will be integrated with the balance of the
State's portfolio of investments to help small business
concerns commercialize technology.
``(B) Limitation.--Each fiscal year, a Governor may
have in effect not more than one written endorsement
for a grant under paragraph (1)(A), and not more than
one written endorsement for a grant under paragraph
(1)(B).
``(9) Specific requirements for fast awards.--In making
awards under paragraph (1)(A) (to be known as `FAST' awards)
the Administrator shall ensure the following:
``(A) Goals.--Priority shall be given applications
that address one or more of the following goals:
``(i) Increasing the number of SBIR
applications from underperforming geographic
areas (as measured by the number of SBIR
applicants).
``(ii) Increasing the number of SBIR
applications from underrepresented population
groups (as measured by the number of SBIR
applicants).
``(B) Duration.--Each award shall be for a period
of 2 fiscal years. The Administrator shall establish
rules and performance goals for the disbursement of
funds for the second fiscal year, and funds shall not
be disbursed to a recipient for such a fiscal year
until after the advisory board established under this
subsection has determined that the recipient is in
compliance with the rules and performance goals.''.
SEC. 302. OBTAINING SBIR APPLICANT'S CONSENT TO RELEASE CONTACT
INFORMATION TO ECONOMIC DEVELOPMENT ORGANIZATIONS.
Section 9 of the Small Business Act (15 U.S.C. 638) is amended in
subsection (s) (as added by this title) by adding at the end the
following:
``(5) Consent to release contact information to
organizations.--
``(A) Enabling concern to give consent.--Each
Federal agency required by this section to conduct an
SBIR program shall enable a small business concern that
is an SBIR applicant to indicate to the agency whether
the agency has its consent to--
``(i) identify the concern to appropriate
local and State-level economic development
organizations as an SBIR applicant; and
``(ii) release the concern's contact
information to such organizations.
``(B) Rules.--The Administrator shall establish
rules to implement this paragraph. The rules shall
include a requirement that the agency include in its
SBIR application forms a provision through which the
applicant can indicate consent for purposes of
subparagraph (A).''.
TITLE IV--ADVANCING COMMERCIALIZATION OF SBIR-FUNDED RESEARCH
SEC. 401. CLARIFYING THE DEFINITION OF ``PHASE THREE''.
Section 9(e) of the Small Business Act (15 U.S.C. 638(e)) is
amended--
(1) in paragraph (4)(C)--
(A) in the matter preceding clause (i) by inserting
after ``a third phase'' the following: ``, which shall
consist of work that derives from, extends, or
logically concludes efforts performed under prior SBIR
funding agreements (which may be referred to as `Phase
III')''; and
(B) in clause (i) by inserting after ``non-SBIR
Federal funding awards'' the following: ``: Provided,
That for purposes of this clause, such sources of
capital and such funding awards include private
investment, private research, development, testing, and
evaluation (RDT&E) awards, private sales or licenses,
government RDT&E contracts and awards, and government
sales'';
(2) in paragraph (8) by striking ``and'' at the end;
(3) in paragraph (9) by striking the period at the end and
inserting ``; and''; and
(4) by adding at the end the following:
``(10) the term `commercialization' means the process of
developing marketable products or services and producing and
delivering products or services for sale (whether by the
originating party or by others) to government or commercial
markets.''.
SEC. 402. AGENCY RESEARCH GOALS.
Section 9 of the Small Business Act (15 U.S.C. 638) is amended by
striking subsection (h) and inserting the following:
``(h) Agency Research Goals.--
``(1) In general.--In addition to the requirements of
subsection (f), each Federal agency that is required by this
section to have an SBIR program and that awards annually
$5,000,000,000 or more in procurement contracts shall,
effective for fiscal year 2009 and each fiscal year thereafter,
establish annual goals for commercialization of projects funded
by SBIR awards.
``(2) Specific goals.--The goals required by paragraph (1)
shall include specific goals for each of the following:
``(A) The percentage of SBIR projects that receive
funding for the third phase (as defined in subsection
(e)(4)(C)).
``(B) The percentage of SBIR projects that are
successfully integrated into a program of record.
``(C) The amount of Federal dollars received by
SBIR projects through Federal contracts, not including
dollars received through the SBIR program.
``(3) Submission to advisory board.--For each fiscal year
for which goals are required by paragraph (1), the agency shall
submit to the agency's SBIR advisory board--
``(A) not later than 60 days after the beginning of
the fiscal year, the goals; and
``(B) not later than 90 days after the end of the
fiscal year, data on the extent to which the goals were
met and a description of the methodology used to
collect that data.''.
SEC. 403. EXPRESS AUTHORITY FOR AN AGENCY TO AWARD SEQUENTIAL PHASE TWO
AWARDS FOR SBIR-FUNDED PROJECTS.
Section 9(j) of the Small Business Act (15 U.S.C. 638(j)) is
amended by adding after paragraph (4) (as added by section 109) the
following:
``(5) Requirements relating to additional second phase sbir
awards.--The Administrator shall modify the policy directives
issued pursuant to this subsection to provide the following:
``(A) A small business concern that receives a
second phase SBIR award for a project remains eligible
to receive additional second phase SBIR awards.
``(B) Agencies are expressly authorized to provide
additional second phase SBIR awards for testing and
evaluation assistance for the insertion of SBIR
technologies into technical or weapons systems.
``(C) Each agency that is required by subsection
(aa) to have an SBIR advisory board shall include in
the quarterly reports submitted under subsection (g)(8)
the number of projects that have received additional
second phase SBIR awards and the total dollar amount of
those additional second phase SBIR awards.''.
SEC. 404. INCREASED PARTNERSHIPS BETWEEN SBIR AWARDEES AND PRIME
CONTRACTORS, VENTURE CAPITAL INVESTMENT COMPANIES, AND
LARGER BUSINESSES.
Section 9(j) of the Small Business Act (15 U.S.C. 638(j)) is
amended by adding after paragraph (5) (as added by section 403) the
following:
``(6) Increased partnerships.--
``(A) In general.--Each agency required by this
section to conduct an SBIR program shall establish
initiatives by which the agency encourages partnerships
between SBIR awardees and prime contractors, venture
capital investment companies, business incubators, and
larger businesses, for the purpose of facilitating the
progress of the SBIR awardees to the third phase. If
the agency is required by subsection (aa) to have an
SBIR advisory board, the advisory board shall include
in each report submitted under subsection (aa) a
description of the initiatives established and an
assessment of the effectiveness of such initiatives.
``(B) Definition.--In this paragraph, the term
`business incubator' means an entity that provides
coordinated and specialized services to entrepreneurial
businesses which meet selected criteria during the
businesses' startup phases, including providing
services such as shared office space and office
services, access to equipment, access to
telecommunications and technology services, flexible
leases, specialized management assistance, access to
financing, mentoring and training services, or other
coordinated business or technical support services
designed to provide business development assistance to
entrepreneurial businesses during these businesses'
startup phases.''.
SEC. 405. EXPRESS AUTHORITY TO ``FAST-TRACK'' PHASE TWO AWARDS FOR
PROMISING PHASE ONE RESEARCH.
Section 9(j)(2)(G) of the Small Business Act (15 U.S.C.
638(j)(2)(G)) is amended by inserting before the semicolon at the end
the following: ``, and to encourage agencies to develop `fast-track'
programs to eliminate that delay by issuing second phase SBIR awards as
soon as practicable, including in appropriate cases simultaneously with
the issuance of the first phase SBIR award''.
SEC. 406. COMMERCIALIZATION PROGRAMS.
Section 9(j) of the Small Business Act (15 U.S.C. 638(j)) is
amended by adding after paragraph (6) (as added by section 404) the
following:
``(7) Commercialization programs.--Each agency required by
this section to conduct an SBIR program shall establish a
commercialization program that supports the progress of SBIR
awardees to the third phase. The commercialization program may
include activities such as partnership databases, partnership
conferences, multiple second phases, mentoring between prime
contractors and SBIR awardees, multiple second phases with
matching private investment requirements, jumbo awards, SBIR
helpdesks, and transition assistance programs. The agency shall
include in its annual report an analysis of the various
activities considered for inclusion in the commercialization
program and a statement of the reasons why each activity
considered was included or not included, as the case may be. If
the agency is required by subsection (aa) to have an SBIR
advisory board, the advisory board shall include in each report
under subsection (aa) a statement identifying the number of
SBIR awardees that successfully progressed to the third phase.
``(8) Funding for commercialization programs.--
``(A) In general.--From amounts made available to
carry out this paragraph, the Administrator may, on
petition by agencies required by this section to
conduct an SBIR program, transfer funds to such
agencies to support the commercialization programs of
such agencies.
``(B) Petitions.--The Administrator shall establish
rules for making transfers under subparagraph (A). The
initial set of rules shall be promulgated not later
than 90 days after the date of the enactment of this
paragraph.
``(C) Authorization of appropriations.--There is
authorized to be appropriated to the Administrator to
carry out this paragraph $27,500,000 for fiscal year
2009 and each fiscal year thereafter.
``(D) Minority institution pilot program.--
``(i) Establishment.--From amounts made
available to carry out this subparagraph, the
Administrator shall establish and carry out a
pilot program to make grants to minority
institutions that partner with nonprofit
organizations that have experience developing
relationships between industry, minority
institutions, and other entities, for the
purpose of increasing the number of SBIR and
STTR program applications by minority-owned
small businesses.
``(ii) Application.--To be eligible to
receive a grant under the pilot program
established in clause (i), a minority
institution shall submit an application to the
Administrator at such time, in such manner, and
containing such information and assurances as
the Administrator may require.
``(iii) Matching requirement.--As a
condition of a grant under the pilot program,
the Administrator shall require that a matching
amount be provided from a source other than the
Federal Government that is equal to the amount
of the grant.
``(iv) Minority institution.--In this
subparagraph, the term `minority institution'
has the meaning given that term in section
365(3) of the Higher Education Act of 1965 (20
U.S.C. 1067k(3)).
``(v) Funding.--For each of fiscal years
2009 through 2012, of the amounts appropriated
pursuant to the authorization of appropriations
in subparagraph (C), up to $4,000,000 shall be
available to carry out this subparagraph.
``(9) Funding limitation.--For payment of expenses incurred
to administer the commercialization programs described in
paragraphs (7) and (8), the head of the agency may use not more
than an amount equal to 1 percent of the funds available to the
agency pursuant to the Small Business Innovation Research
program. Such funds--
``(A) shall not be subject to the limitations on
the use of funds in subsection (f)(2); and
``(B) shall not be used for the purpose of funding
costs associated with salaries and expenses of
employees of the United States Government.''.
SEC. 407. REPORT ON EFFORTS TO ENHANCE MANUFACTURING ACTIVITIES.
Section 9(j) of the Small Business Act (15 U.S.C. 638(j)) is
amended by adding after paragraph (9) (as added by section 406) the
following:
``(10) Efforts to enhance manufacturing activities.--If an
agency is required by subsection (aa) to have an SBIR advisory
board, the advisory board shall include in each report under
subsection (aa) a part relating to efforts to enhance
manufacturing activities, which shall include--
``(A) a comprehensive description of the actions
undertaken each year by the SBIR and STTR programs of
that agency in support of Executive Order No. 13329;
``(B) an assessment of the effectiveness of such
actions toward enhancing the research and development
of manufacturing technologies and processes; and
``(C) any recommendations that the program managers
of the SBIR and STTR programs consider appropriate for
additional actions to be undertaken in order to
increase the effectiveness toward enhancing
manufacturing activities within the defense industrial
base.''.
TITLE V--SUPPORTING PROGRAM UTILIZATION
SEC. 501. AGENCY DATABASES TO SUPPORT PROGRAM EVALUATION.
Section 9(k) of the Small Business Act (15 U.S.C. 638(k)) is
amended--
(1) in paragraph (2)(A)--
(A) by striking ``and'' at the end of clause (ii);
(B) by inserting ``and'' at the end of clause
(iii); and
(C) by adding at the end the following new clause:
``(iv) information on the ownership
structure of award recipients, both at the time
of receipt of the award and upon completion of
the award period;'';
(2) by amending paragraph (3) to read as follows:
``(3) Updating information for database.--
``(A) In general.--A Federal agency shall not make
a Phase I or Phase II payment to a small business
concern under this section unless the small business
concern has provided all information required under
this subsection with respect to the award under which
the payment is made, and with respect to any other
award under this section previously received by the
small business concern or a predecessor in interest to
the small business concern.
``(B) Apportionment.--In complying with this
paragraph, a small business concern may apportion sales
or additional investment information relating to more
than one second phase award among those awards, if it
notes the apportionment for each award.
``(C) Annual updates upon termination.--A small
business concern receiving an award under this section
shall--
``(i) in the case of a second phase award,
update information in the databases required
under paragraphs (2) and (6) concerning that
award at the termination of the award period;
``(ii) in the case of award recipients not
described in clause (iii), be requested to
voluntarily update such information annually
thereafter for a period of 5 years; and
``(iii) in the case of a small business
concern applying for a subsequent first phase
or second phase award, be required to update
such information annually thereafter for a
period of 5 years.''; and
(3) by adding at the end the following new paragraph:
``(6) Agency program evaluation databases.--Each Federal
agency required to establish an SBIR or STTR program under this
section shall develop and maintain, for the purpose of
evaluating such programs, a database containing information
required to be contained in the database under paragraph (2).
Each such database shall be designed to be accessible to other
agencies that are required to maintain a database under this
paragraph.''.
SEC. 502. AGENCY DATABASES TO SUPPORT TECHNOLOGY UTILIZATION.
Section 9(k) of the Small Business Act (15 U.S.C. 638(k)), as
amended by this Act, is further amended by adding at the end the
following new paragraph:
``(7) Agency databases to support technology utilization.--
Each Federal agency with an SBIR or STTR program shall create
and maintain a technology utilization database, which shall be
available to the public and shall contain data supplied by the
award recipients specifically to help them attract customers
for the products and services generated under the SBIR or STTR
project, and to attract additional investors and business
partners. Each database created under this paragraph shall
include information on the other databases created under this
paragraph by other Federal agencies. Participation in a
database under this paragraph shall be voluntary, except that
such participation is required of all award recipients who
received supplemental payments from SBIR and STTR program funds
above their initial Phase II award.''.
SEC. 503. INTERAGENCY POLICY COMMITTEE.
(a) Establishment.--The Director of the Office of Science and
Technology Policy shall establish an Interagency SBIR/STTR Policy
Committee comprised of one representative from each Federal agency with
an SBIR program.
(b) Cochairs.--The Director of the Office of Science and Technology
Policy and the Director of the National Institute of Standards and
Technology shall jointly chair the Interagency Policy Committee.
(c) Duties.--The Interagency Policy Committee shall review the
following issues and make policy recommendations on ways to improve
program effectiveness and efficiency:
(1) The public and government databases described in
section 9(k)(1) and (2) of the Small Business Act (15 U.S.C.
638(k)(1) and (2)).
(2) Federal agency flexibility in establishing Phase I and
II award sizes, and appropriate criteria to exercise such
flexibility.
(3) Commercialization assistance best practices in Federal
agencies with significant potential to be employed by other
agencies, and the appropriate steps to achieve that leverage,
as well as proposals for new initiatives to address funding
gaps business concerns face after Phase II but before
commercialization.
(d) Reports.--The Interagency Policy Committee shall transmit to
the Committee on Science and Technology and the Committee on Small
Business of the House of Representatives, and to the Committee on Small
Business and Entrepreneurship of the Senate--
(1) a report on its review and recommendations under
subsection (c)(1) not later than 1 year after the date of
enactment of this Act;
(2) a report on its review and recommendations under
subsection (c)(2) not later than 18 months after the date of
enactment of this Act; and
(3) a report on its review and recommendations under
subsection (c)(3) not later than 2 years after the date of
enactment of this Act.
SEC. 504. NANOTECHNOLOGY-RELATED RESEARCH TOPICS.
(a) SBIR.--Section 9(g)(3) of the Small Business Act (15 U.S.C.
638(g)(3)), as amended by section 107, is further amended by adding at
the end the following new subparagraph:
``(F) the national nanotechnology strategic plan
required under section 2(c)(4) of the 21st Century
Nanotechnology Research and Development Act (15 U.S.C.
7501(c)(4)) and in subsequent reports issued by the
National Science and Technology Council Committee on
Technology, focusing on areas of nanotechnology
identified in such plan;''.
(b) STTR.--Section 9(o)(1) of the Small Business Act (15 U.S.C.
638(o)(1)) is amended by inserting ``, giving special consideration to
topics that further 1 or more critical technologies, as identified by
the national nanotechnology strategic plan required under section
2(c)(4) of the 21st Century Nanotechnology Research and Development Act
(15 U.S.C. 7501(c)(4)) and in subsequent reports issued by the National
Science and Technology Council Committee on Technology, focusing on
areas of nanotechnology identified in such plan'' after ``its STTR
program''.
SEC. 505. RURAL PREFERENCE.
Section 9 of the Small Business Act (15 U.S.C. 638) is amended by
adding at the end the following new subsection:
``(dd) Rural Preference.--In making awards under this section,
Federal agencies shall give priority to applications so as to increase
the number of SBIR and STTR award recipients from rural areas.''.
SEC. 506. PRIORITY FOR AREAS THAT HAVE LOST A MAJOR SOURCE OF
EMPLOYMENT.
Section 9 of the Small Business Act (15 U.S.C. 638) is amended by
adding at the end the following:
``(ee) Priority for Areas That Have Lost a Major Source of
Employment.--In making awards under this section, Federal agencies
shall give priority to applications from companies located in
geographic areas that, as determined by the Administrator, have lost a
major source of employment. Not later than 90 days after the date of
the enactment of this subsection, the Administrator shall promulgate
rules for making the determination required by this subsection.''.
SEC. 507. VETERANS PREFERENCE.
Section 9 of the Small Business Act (15 U.S.C. 638) is further
amended by adding at the end the following:
``(ff) Veterans Preference.--In making awards under this section,
Federal agencies shall give priority to applications from veterans, as
defined in section 101(2) of title 38, United States Code, so as to
increase the number of SBIR and STTR award recipients who are
veterans.''.
SEC. 508. INITIATIVE TO PUBLICIZE THE SBIR PROGRAM TO VETERANS.
The Administrator of the Small Business Administration, in
consultation with the Secretary of Veterans Affairs, shall develop an
initiative to publicize the SBIR program to veterans returning from
service and encourage those veterans with applicable technical skills
to apply for SBIR grants.
SEC. 509. PREFERENCE FOR ORGANIZATIONS THAT ARE MAKING SIGNIFICANT
CONTRIBUTIONS TOWARDS ENERGY EFFICIENCY.
Section 9 of the Small Business Act (15 U.S.C. 638) is further
amended by adding at the end the following:
``(ff) Preference for Organizations That Are Making Significant
Contributions Towards Energy Efficiency.--In making awards under this
section, Federal agencies shall give priority to applications so as to
increase the number of SBIR, STTR, and FAST award recipients from
organizations that are making significant contributions towards energy
efficiency, including organizations that are making efforts to reduce
their carbon footprint or are carbon neutral.''.
TITLE VI--IMPLEMENTATION
SEC. 601. CONFORMING AMENDMENTS TO THE SBIR AND STTR POLICY DIRECTIVES.
Not later than 180 days after the date of enactment of this Act,
the Administrator of the Small Business Administration shall promulgate
amendments to the SBIR and the STTR Policy Directives to conform such
directives to this Act and the amendments made by this Act.
SEC. 602. NATIONAL RESEARCH COUNCIL SBIR STUDY.
Section 108(d) of the Small Business Reauthorization Act of 2000 is
amended--
(1) by striking ``of the Senate'' and all that follows
through ``not later than 3'' and inserting ``of the Senate, not
later than 3''; and
(2) by striking ``; and'' and all that follows through
``update of such report''.
SEC. 603. SBIR AWARDEE BUSINESS OPERATIONS.
Section 9 of the Small Business Act is further amended by adding at
the end the following:
``(ee) SBIR Awardee Business Operations.--
``(1) In general.--To be eligible to receive an SBIR award,
an awardee must have its primary business operations in the
United States.
``(2) Definition.--In this subsection, the term `United
States' includes the District of Columbia, the Commonwealth of
Puerto Rico, and any other territory or possession of the
United States.''.
SEC. 604. PROHIBITION OF AWARDS TO ALIENS UNLAWFULLY PRESENT IN THE
UNITED STATES.
Section 9 of the Small Business Act is amended by adding at the end
the following:
``(ee) Prohibition of Awards to Aliens Unlawfully Present in the
United States.--A concern is not eligible to receive an award under
this section if an individual who is an alien unlawfully present in the
United States--
``(1) has an ownership interest in that concern; or
``(2) has an ownership interest in another concern that
itself has an ownership interest in that concern.''.
SEC. 605. PROHIBITION ON AWARDS TO FIRMS IN VIOLATION OF IMMIGRATION
LAWS.
Any applicant found, based on a determination by the Secretary of
Homeland Security or the Attorney General to have engaged in a pattern
or practice of hiring, recruiting or referring for a fee, for
employment in the United States an alien knowing the person is an
unauthorized alien shall not be eligible for the receipt of future
awards under section 9 of the Small Business Act.
Passed the House of Representatives April 23, 2008.
Attest:
LORRAINE C. MILLER,
Clerk.