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Text of the Don’t Ask, Don’t Tell Repeal Act of 2010

This bill was enacted after being signed by the President on December 22, 2010. The text of the bill below is as of Jun 19, 2009 (Introduced).

This is not the latest text of this bill.

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I

111th CONGRESS

1st Session

H. R. 2965

IN THE HOUSE OF REPRESENTATIVES

June 19, 2009

(for himself, Mr. Wu, Mr. Graves, Ms. Velázquez, Mr. Schock, Mr. Nye, Mrs. Halvorson, and Mr. Bright) introduced the following bill; which was referred to the Committee on Small Business, and in addition to the Committee on Science and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

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.

1.

Short title; table of contents

(a)

Short title

This Act may be cited as the Enhancing Small Business Research and Innovation Act of 2009.

(b)

Table of contents

The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.

Title I—Program extension and venture capital operating company involvement

Sec. 101. Extension of termination dates.

Sec. 102. Ensuring that innovative small businesses with substantial investment from venture capital operating companies are able to participate in the SBIR and STTR programs.

Title II—Commercialization activities and research topics deserving special consideration

Sec. 201. Focus on commercialization.

Sec. 202. Inclusion of energy-related research topics and rare disease-related research topics as deserving special consideration as SBIR research topics.

Sec. 203. Nanotechnology-related research topics.

Sec. 204. Clarifying the definition of Phase Three.

Sec. 205. Agency research goals.

Sec. 206. Commercialization programs.

Title III—Rural development and outreach

Sec. 301. Outreach and support activities.

Sec. 302. Rural preference.

Sec. 303. Obtaining SBIR applicant’s consent to release contact information to economic development organizations.

Sec. 304. Increased partnerships between SBIR awardees and prime contractors, venture capital investment companies, and larger businesses.

Title IV—SBIR and STTR enhancement

Sec. 401. Increased number of research topic solicitations annually and shortened period for final decisions on applications.

Sec. 402. Agencies should fund vital R&D projects with the potential for commercialization.

Sec. 403. Federal agency engagement with SBIR awardees that have been awarded multiple Phase One awards but have not been awarded Phase Two awards.

Sec. 404. Funding for administrative, oversight, and contract processing costs.

Sec. 405. Comptroller general audit of how Federal agencies calculate extramural research budgets.

Sec. 406. Agency databases to support program evaluation.

Sec. 407. Agency databases to support technology utilization.

Sec. 408. Interagency Policy Committee.

Sec. 409. National Research Council SBIR Study.

Sec. 410. Express authority to fast-track Phase Two awards for promising Phase One research.

Sec. 411. Increased SBIR and STTR award levels.

Sec. 412. Express authority for an agency to award sequential Phase Two awards for SBIR-funded projects.

Sec. 413. First phase required.

I

Program extension and venture capital operating company involvement

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 2011.

(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 2011.

102.

Ensuring that innovative small businesses with substantial investment from venture capital operating companies are able to participate in the SBIR and STTR programs

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

(aa)

Venture capital operating companies

Effective only for the SBIR and STTR programs the following shall apply:

(1)

A business concern that has more than 500 employees shall not qualify as a small business concern.

(2)

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—

(A)

the venture capital operating company does not own 50 percent or more of the business concern; and

(B)

employees of the venture capital operating company do not constitute a majority of the board of directors of the business concern.

(3)

A business concern shall be deemed to be independently owned and operated if—

(A)

it is owned in majority part by one or more natural persons or venture capital operating companies;

(B)

there is no single venture capital operating company that owns 50 percent or more of the business concern; and

(C)

there is no single venture capital operating company the employees of which constitute a majority of the board of directors of the business concern.

(4)

If a venture capital operating company controlled by a business with more than 500 employees (in this paragraph 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—

(A)

not more than two VCOCs under large business control have an ownership interest in the small business concern; and

(B)

the VCOCs under large business control do not collectively own more than 20 percent of the small business concern.

(5)

The term venture capital operating company means a business concern—

(A)

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—

(I)

is registered under the Investment Company Act of 1940 (15 U.S.C. 80a–51 et seq.); or

(II)

is an investment company, as defined in section 3(c)(1) of such Act (15 U.S.C. 80a–3(c)(1)), which is not registered under such Act because it is beneficially owned by less than 100 persons; and

(B)

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.

.

II

Commercialization activities and research topics deserving special consideration

201.

Focus on commercialization

Section 9(a) of the Small Business Act (15 U.S.C. 638(a)) is amended by adding at the end the following: It is further the policy of Congress that the programs established in this section should focus on promoting research and development of projects governed by commercial business plans, which have significant potential to produce products or services for the marketplace or for acquisition by Federal agencies..

202.

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; or

(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;

.

203.

Nanotechnology-related research topics

(a)

SBIR

Section 9(g)(3) of the Small Business Act (15 U.S.C. 638(g)(3)), as amended, is further amended—

(1)

at the end of subparagraph (D) by striking or;

(2)

at the end of subparagraph (E) by adding or; and

(3)

by adding at the end the following:

(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)(3) of the Small Business Act (15 U.S.C. 638(o)(3)) is amended—

(1)

at the end of subparagraph (A) by striking or;

(2)

at the end of subparagraph (B) by adding or; and

(3)

by adding at the end the following:

(C)

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;

.

204.

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) 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);

(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.

.

205.

Agency research goals

Section 9 of the Small Business Act (15 U.S.C. 638), as amended, is further 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 2010 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 committees

For each fiscal year for which goals are required by paragraph (1), the agency 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)

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 such data.

.

206.

Commercialization programs

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

(bb)

Commercialization programs

(1)

In general

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.

(2)

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 2010 and each fiscal year thereafter.

(3)

Funding limitation

For payment of expenses incurred to administer the commercialization programs described in paragraphs (1) and (2), the head of an agency may use not more than an amount equal to 1 percent of the funds set aside for the agency’s 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 Federal Government.

.

III

Rural development and outreach

301.

Outreach and support activities

Section 9 of the Small Business Act (15 U.S.C. 638), as amended, is further 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)

Authorization of appropriations

There is authorized to be appropriated to the Administrator $10,000,000 to carry out paragraph (1) for each of fiscal years 2010 and 2011.

(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), including guidelines relating to award sizes, proposal requirements, measures for monitoring awardee performance, and measures for determining the 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), 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) 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).

(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) 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 a Small Business Development Center 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 awards

In making awards under paragraph (1) the Administrator shall ensure that 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.

.

302.

Rural preference

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

(cc)

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.

.

303.

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), as amended, is further amended by adding at the end the following:

(dd)

Consent To release contact information to organizations

(1)

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—

(A)

identify the concern to appropriate local and State-level economic development organizations as an SBIR applicant; and

(B)

release the concern’s contact information to such organizations.

(2)

Rules

The Administrator shall establish rules to implement this subsection. 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 paragraph (1).

.

304.

Increased partnerships between SBIR awardees and prime contractors, venture capital investment companies, and larger businesses

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

(ee)

Increased partnerships

(1)

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.

(2)

Definition

In this subsection, 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.

.

IV

SBIR and STTR enhancement

401.

Increased number of research topic solicitations annually and shortened period for final decisions on applications

(a)

Increased number of research topic solicitations annually

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 the Small Business Act (15 U.S.C. 638(g)(4)) is amended by inserting before the semicolon at the end the following: , but a final decision on each proposal shall be rendered not later than 90 days after the date on which the solicitation closes unless the Administrator determines, on a case by case basis, that a decision may be extended from 90 days to 180 days.

402.

Agencies should fund vital R&D projects with the potential for commercialization

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

(ff)

Multiple first phase SBIR awards report

The Administrator shall, on an annual basis, 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 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.

.

403.

Federal agency engagement with SBIR awardees that have been awarded multiple Phase One awards but have not been awarded Phase Two awards

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

(gg)

Requirements relating to Federal agency engagement with certain first phase SBIR awardees

Each Federal agency required by this section to conduct an SBIR program shall engage with SBIR awardees that have been awarded multiple first phase SBIR awards but have not been awarded any second phase SBIR awards and shall develop performance measures with respect to awardee progression in the SBIR program.

.

404.

Funding for administrative, oversight, and contract processing costs

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

(hh)

Assistance for administrative, oversight, and contract processing costs

(1)

In general

From amounts made available to carry out this subsection, the Administrator may, on petition by Federal agencies required by this section to conduct an SBIR program, transfer funds to such agencies to assist with the administrative, oversight, and contract processing costs relating to such program.

(2)

Petitions

The Administrator shall establish rules for making transfers under paragraph (1). The initial set of rules shall be promulgated not later than 180 days after the date of the enactment of this subsection.

(3)

Limit on transfer

A Federal agency may not receive under this subsection in a fiscal year an amount greater than 3 percent of the SBIR budget of such agency for such fiscal year.

(4)

Authorization of appropriations

There is authorized to be appropriated to the Administrator to carry out this subsection $27,500,000 for each of fiscal years 2010 and 2011.

.

405.

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 Program and Small Business Technology Transfer Program 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.

406.

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 and available at the time 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. Each such database shall be developed and operated in a manner to ensure that each such database is relevant to and contributes to the agency’s oversight and evaluation of the SBIR and STTR programs. Paragraphs (4) and (5) apply to each database under this paragraph.

.

407.

Agency databases to support technology utilization

Section 9(k) of the Small Business Act (15 U.S.C. 638(k)), as amended, 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. Each database created under this paragraph shall be developed and operated in a manner to ensure that each such database is relevant to and contributes to the agency’s oversight and evaluation of the SBIR and STTR programs.

.

408.

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 SBIR/STTR Policy Committee.

(c)

Duties

The Interagency SBIR/STTR 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 SBIR/STTR 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.

409.

National Research Council SBIR Study

Section 108(d) of the Small Business Reauthorization Act of 2000, enacted into law by reference under section 1(a)(9) of the Consolidated Appropriations Act, 2001 (Public Law 106–554), 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.

410.

Express authority to fast-track Phase Two awards for promising Phase One research

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

(ii)

Authority To fast-track phase two awards for promising phase one research

To address the delay between an award for the first phase of an SBIR program and the application for and extension of an award for the second phase of such program, each Federal agency with an SBIR program may develop fast-track programs to eliminate such 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. The Administrator shall encourage the development of such fast-track programs.

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411.

Increased SBIR and STTR award levels

(a)

SBIR award level and annual adjustments

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

(4)

Further additional modifications

Not later than 180 days after the date of enactment of this paragraph and notwithstanding paragraph (2)(D), the Administrator shall modify the policy directives issued pursuant to this subsection to provide for an increase to $250,000 in the amount of funds which an agency may award in the first phase of an SBIR program, and to $2,000,000 in the second phase of an SBIR program, and a mandatory annual adjustment of such amounts to reflect economic adjustments and programmatic considerations.

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(b)

STTR award level and annual 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 $750,000 and inserting $250,000 and $2,000,000, respectively; and

(2)

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.

(c)

Limitation on certain awards

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

(jj)

Limitation on phase I and II awards

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)(4) and (p)(2)(B)(ix).

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412.

Express authority for an agency to award sequential Phase Two awards for SBIR-funded projects

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

(kk)

Requirements relating to additional second phase SBIR awards

(1)

In general

A small business concern that receives a second phase SBIR award for a project remains eligible to receive additional second phase SBIR awards for such project.

(2)

Technical or weapons systems

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.

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413.

First phase required

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

(ll)

First phase required

Under this section, a Federal agency shall provide to a small business concern an award for the second phase of an SBIR program with respect to a project only if such agency finds that the small business concern has been provided an award for the first phase of an SBIR program with respect to such project or has completed the determinations described in subsection (e)(4)(A) with respect to such project despite not having been provided an award for the first phase.

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