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Mar 17, 2016viewing Reported in House Mr. Chabot (for himself and Ms. Velázquez) introduced the following bill; which was referred to the Committee on Small Business, and in addition to the Committee on Science, Space, 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 See what changed
Mar 17, 2016 Introduced in House Mr. Chabot (for himself and Ms. Velázquez) introduced the following bill; which was referred to the Committee on Small Business, and in addition to the Committee on Science, Space, 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

H.R. 4783 — what changed

Commercializing on Small Business Innovation Act of 2016

From Introduced in House to Reported in House. 4 sections amended and 2 added between Introduced in House and Reported in House.

Sec. 2 Extension of termination dates

(a)

SBIR— Section 9(m) of the Small Business Act (15 U.S.C. 638(m)) is amended by striking “2017” and inserting “2022”.

(b)

STTR— Section 9(n)(1)(A) of the Small Business Act (15 U.S.C. 638(n)(1)(A)) is amended by striking “2017” and inserting “2022”.

(c)

added Administrative funding— Section 9(mm)(1) of the Small Business Act (15 U.S.C. 638(mm)(1)) is amended by striking “2017” and inserting “2022”.

Sec. 3 Required expenditure amounts

(a)

SBIR— Section 9(f)(1) of the Small Business Act (15 U.S.C. 638(f)(1)) is amended—

(1)

in subparagraph (H), by striking the “and” at the end;

(2)

in subparagraph (I), by striking “and each fiscal year thereafter,” and inserting a semicolon; and

(3)

by inserting after subparagraph (I) the following new subparagraphs:

“(J) not less than 3.46 percent of such budget in fiscal year 2018;

“(K) not less than 3.72 percent of such budget in fiscal year 2019;

“(L) not less than 3.98 percent of such budget in fiscal year 2020;

“(M) not less than 4.24 percent of such budget in fiscal year 2021; and

“(N) not less than 4.50 percent of such budget in fiscal year 2022 and each fiscal year thereafter,”

(b)

STTR— Section 9(n)(1)(B) of the Small Business Act (15 U.S.C. 638(n)(1)(B)) is amended—

(1)

in clause (iv), by striking the “and” at the end;

(2)

changed in clause (v), by striking “for fiscal year 2016 and each fiscal year thereafter.” and inserting “for each of fiscal years 2016 and ~~2017;”;~~ 2017;” ; and

(3)

by adding at the end the following new clauses:

“(vi) 0.50 percent for each of fiscal years 2018 and 2019;

“(vii) 0.55 percent for each of fiscal years 2020 and 2021; and

“(viii) 0.60 percent for fiscal year 2022 and each fiscal year thereafter.”

Sec. 4 Reporting requirements

(a)

Annual report to Congress— Section 9(b)(7) of the Small Business Act (15 U.S.C. 638(b)(7)) is amended by striking “to report not less than annually” and inserting “to submit a report not later than December 31 of each year”.

(b)

changed Annual reports to the Administrator required To to be submitted not later than March 30 of each year— Section 9 of the Small Business Act (15 U.S.C. 638) is amended—

(1)

in subsection (g)(9), by striking “make an annual report” and inserting “not later than March 30 of each year, submit a report”;

(2)

in subsection (i)(1), by striking “shall report annually to the Small Business Administration” and inserting “shall, not later than March 30 of each year, submit a report to the Small Business Administration that includes”;

(3)

in subsection (j)—

(A)

in paragraph (1)(E), by striking “simplified, standardized, and timely annual report” and inserting “not later than March 30 of each year, a simplified and standardized report”; and

(B)

changed in paragraph (3)(C), by striking “to require agencies to report to the Administration, not less frequently than annually, all instances in which an” and inserting “to require each agency, not later than March 30 of each year, to submit a report to the Administration on all ~~instances~~ instance in which the”;

(4)

in subsection (o)(10), by striking “submit an annual report” and inserting “not later than March 30 of each year, submit a report”;

(5)

in subsection (y)(6)(C), by striking “submit” and inserting “not later than March 30 of each year, submit”;

(6)

changed in subsection (dd)(4)(A), by striking “and submit” and inserting “and, not later than March 30 of each year, submit”;

(7)

in subsection (gg)(6), by striking “include in the annual” and inserting “include, not later than March 30 of each year, a”;

(8)

in subsection (ii) by inserting “, not later than March 30 of each year,” after “shall”;

(9)

added in subsection (mm)(6), by inserting “, not later than June 30 of each year,” after “shall”;

(10)

renumbered was (3)(11) in subsection (nn)(3)(A)—

(A)

renumbered was (3)(11)(2) by striking “an annual” and inserting “a” ; and

(B)

renumbered was (3)(11)(3) by inserting “, not later than March 30 of each year,” after “shall”; and

(11)

renumbered was (3)(12) in subsection (ss), by striking “October 1, 2013, and annually thereafter,” and inserting “March 30 of each year,”.

(c)

added Failure to report administrative funds— Section 9(mm) of the Small Business Act (15 U.S.C. 638(mm)) is amended by adding at the end the following new paragraph:

added “(7) Failure to report administrative funds

added “(A) In general—Not later than March 30 following each fiscal year for which funds are authorized to be used by a Federal agency under paragraph (1), the Federal agency shall submit a report to the Administrator that identifies how the Federal agency used such funds during such fiscal year.

added “(B) Failure to submit a report—If a Federal agency fails to submit a report required under subparagraph (A), paragraph (1) shall not apply to such Federal agency unless—

added “(i) such report is submitted; and

added “(ii) such Federal agency submits an additional report to the Administrator that identifies how such Federal agency plans to ensure timely reporting under this paragraph.”

Sec. 5 Indexing awards for inflation

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

(1)

in subsection (j)(2)—

(A)

by striking subparagraph (D);

(B)

changed by redesignating subparagraphs (E) through (I) as subparagraphs (D) through ~~(H);~~ (H), respectively; and

(C)

in subparagraph (H), as so redesignated, by striking “subparagraph (H)” and inserting “subparagraph (G)”;

(2)

in subsection (p)(2)(B)—

(A)

in clause (vii), by adding “and” at the end;

(B)

changed in clause (viii), by striking ~~the~~ “and” at the end; and

(C)

by striking clause (ix);

(3)

in subsection (gg)(3), by striking “awards under subsection (j)(2)(D) or (p)(2)(B)(ix).” and inserting “awards under subsection (tt)(2).”; and

(4)

by adding at the end the following new subsection:

“(tt) Awards under Phase I and Phase II adjusted for inflation

“(1) Phase I awards—An award for Phase I of an SBIR or STTR program may not exceed $150,000.

“(2) Phase II awards—An award for Phase II of an SBIR or STTR program may not exceed $1,000,000.

“(3) Adjustment for inflation—The Administrator shall adjust the dollar amounts under paragraphs (1) and (2) for inflation in accordance with section 1908 of title 41, United States Code.”

Sec. 8 Commercialization Assistance Pilot Program

added

added Section 9 of the Small Business Act (15 U.S.C. 638), as amended by section 5, is further amended by adding at the end the following new subsection:

added “(uu) Commercialization Assistance Pilot Programs

added “(1) Pilot programs implemented

added “(A) In general—Except as provided in subparagraph (B), not later than one year after the date of the enactment of Commercializing on Small Business Innovation Act of 2016, a covered agency shall implement a commercialization assistance pilot program to award eligible entities with a second sequential SBIR award.

added “(B) Exception—If the Administrator determines that a covered agency has a program that is sufficiently similar to a commercialization assistance pilot program, such agency shall not be required to implement a commercialization assistance pilot program under subparagraph (A).

added “(C) Percent of agency funds—A covered agency may not use more than 5 percent of its total SBIR budget for awards under the commercialization assistance pilot program.

added “(D) Termination—The commercialization assistance pilot programs shall terminate on September 30, 2022.

added “(2) Matching Requirement

added “(A) In general—The Administrator shall require as a condition of any award made to an eligible entity under a commercialization assistance pilot program, that a matching amount (excluding any fees collected from recipients of such assistance) equal to the amount of such award be provided from an eligible third-party investor, before the end of the commercialization assistance pilot program award.

added “(B) Ineligible funding—An eligible entity may not use funding from ineligible sources to meet the matching requirement of subparagraph (A).

added “(3) Award

added “(A) Size of award—An award under this subsection may not exceed the limitations in subsection (aa)(1).

added “(B) Timing—Awards provided under the commercialization assistance pilot program shall be distributed during the Phase II award period of the recipient eligible entity.

added “(4) Application—In order to be selected to receive a second sequential SBIR award under a commercialization assistance pilot program, an eligible entity shall submit to the covered agency implementing such pilot program—

added “(A) an application at such time, in such manner, and containing such information as the covered agency may require; and

added “(B) the source and amount of the matching funding required under paragraph (2).

added “(5) Use of Funds—The funds awarded under a commercialization assistance pilot program may only be used for research and development activities that build on the eligible entity’s Phase II program and catalyze acceleration towards commercialization.

added “(6) Determination of recipients—In determining which applicants receive awards under the commercialization assistance pilot program, the head of a covered agency shall consider—

added “(A) the extent to which the supplemental funds awarded under the pilot program could aid the applicant commercialize its research;

added “(B) whether the proposed plan provides a sound approach for establishing technical feasibility that could lead to commercialization;

added “(C) whether the proposed activity reflect changes to the Phase II commercialization plan that further improves the chances of conversion of research in order to provide societal benefits;

added “(D) whether the small business concern has progressed satisfactorily in the Phase II activity to justify additional funding;

added “(E) the expectations of the third-party funding; and

added “(F) the likelihood that the third-party funded activity will lead to commercial and societal benefit.

added “(7) Evaluation Report—Not later than 3 years after the date of the enactment of Commercializing on Small Business Innovation Act of 2016, the Comptroller General of the United States shall submit to the Committee on Science, Space, and Technology and the Committee on Small Business of the House of Representatives and the Committee on Small Business and Entrepreneurship of the Senate an evaluative report that includes—

added “(A) a summary of the activities of the commercialization assistance pilot programs;

added “(B) a detailed compilation of results achieved by the commercialization assistance pilot programs, including the number of small business concerns that received awards under the pilot program;

added “(C) the rate at which the recipients under the pilot program commercialized their research;

added “(D) the growth in employment and revenue of companies that participated in the pilot program;

added “(E) a comparison of commercialization success of pilot program participants and recipients of a non-matching sequential Phase II award;

added “(F) demographic information such as ethnicity and geographic location of participant companies;

added “(G) an accounting of the funds used at each participating agency in the pilot program;

added “(H) a distribution of third-party funding by source;

added “(I) an analysis of the program’s effectiveness at each participating agency; and

added “(J) recommendations for improvement to the pilot program, in the case that Congress were to make it permanent.

added “(8) Definitions—For purposes of this subsection:

added “(A) Covered agency—The term “covered agency” means a Federal agency required to have an SBIR program.

added “(B) Eligible entity—The term “eligible entity” means a small business concern that has received a Phase II award and a Phase II sequential award from the covered agency to which such entity is applying for a second sequential SBIR award.

added “(C) Eligible third-party investor—The term “eligible third-party investors” means a small business concern other than the eligible entity, a venture capital firm, an individual investor, a non-SBIR Federal, State or local government, or any combination thereof.

added “(D) Ineligible sources—The term “ineligible sources” means the following:

added “(i) The awardee’s internal research and development funds.

added “(ii) Funding in forms other than cash such as in-kind or other intangible assets.

added “(iii) Funding from the owners of the eligible entity, or the family members or affiliates of such owners.

added “(iv) Funding attained through loans or other forms of debt obligations.”

Sec. 9 Increased underserved population participation waiver removed

added

(a)

added In general— Section 9(mm)(2) of the Small Business Act (15 U.S.C. 638(mm)(2)) is amended to read as follows:

added “(2) Outreach and technical assistance—A Federal agency participating in the program under this subsection shall use a portion of the funds authorized for uses under paragraph (1) to carry out the policy directive required under subsection (j)(2)(F) and to increase the participation of States with respect to which a low level of SBIR awards have historically been awarded.”

(b)

added Conforming amendment— Section 9(mm)(6) of the Small Business Act (15 U.S.C. 638(mm)(6)) is amended by striking “(A) and any use of the waiver authority under paragraph (2)(B)”.