HR 2965 IH
111th CONGRESS
1st Session
H. R. 2965
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.
IN THE HOUSE OF REPRESENTATIVES
June 19, 2009
Mr. ALTMIRE (for himself, Mr. WU, Mr. GRAVES, Ms. VELAZQUEZ, 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.
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 ‘Enhancing Small Business Research and Innovation Act of 2009’.
(b) Table of Contents- The table of contents for this Act is as follows:
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.
TITLE I--PROGRAM EXTENSION AND VENTURE CAPITAL OPERATING COMPANY INVOLVEMENT
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 ‘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’.
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.
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.’.
TITLE II--COMMERCIALIZATION ACTIVITIES AND RESEARCH TOPICS DESERVING SPECIAL CONSIDERATION
Full Text of Legislation