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106th CONGRESS

  1st Session

                               H. R. 2392

_______________________________________________________________________

                                 AN ACT

  To amend the Small Business Act to extend the authorization for the 
  Small Business Innovation Research Program, and for other purposes.
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
106th CONGRESS
  1st Session
                                H. R. 2392

_______________________________________________________________________

                                 AN ACT


 
  To amend the Small Business Act to extend the authorization for the 
  Small Business Innovation Research 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.

    This Act may be cited as the ``Small Business Innovation Research 
Program Reauthorization Act of 1999''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) the small business innovation research program 
        established under the Small Business Innovation Development Act 
        of 1982 and reauthorized by the Small Business Research and 
        Development Enhancement Act of 1992 (in this section referred 
        to as the ``SBIR program'') is highly successful in involving 
        small businesses in federally funded research and development;
            (2) the SBIR program made the cost-effective and unique 
        research and development capabilities possessed by the small 
        businesses of this Nation available to Federal agencies and 
        departments;
            (3) the innovative goods and services developed by small 
        businesses that participated in the SBIR program have produced 
        innovations of critical importance in a wide variety of high-
        technology fields, including biology, medicine, education, and 
        defense;
            (4) the SBIR program is a catalyst in the promotion of 
        research and development, the commercialization of innovative 
        technology, the development of new products and services, and 
        the continued excellence of this Nation's high-technology 
        industries; and
            (5) the continuation of the SBIR program will provide 
        expanded opportunities for one of the Nation's vital resources, 
        its small businesses, will foster invention, research, and 
        technology, will create jobs, and will increase this Nation's 
        competitiveness in international markets.

SEC. 3. EXTENSION OF SBIR PROGRAM.

    Section 9(m) of the Small Business Act (15 U.S.C. 638(m)) is 
amended to read as follows:
    ``(m) Termination.--The authorization to carry out the Small 
Business Innovation Research Program established under this section 
shall terminate on September 30, 2007.''.

SEC. 4. ANNUAL REPORT.

    Section 9(b)(7) of the Small Business Act (15 U.S.C. 638(b)(7)) is 
amended by striking ``and the Committee on Small Business of the House 
of Representatives'' and inserting ``, and to the Committee on Science 
and the Committee on Small Business of the House of Representatives,''.

SEC. 5. THIRD PHASE ASSISTANCE.

    Section 9(e)(4)(C)(i) of the Small Business Act (15 U.S.C. 
638(e)(4)(C)(i)) is amended by striking ``; and'' and inserting ``; 
or''.

SEC. 6. RIGHTS TO DATA.

    Section 9(j) of the Small Business Act (15 U.S.C. 638(j)) is 
amended by adding at the end the following new paragraph:
            ``(3) Additional modifications.--Not later than 90 days 
        after the enactment of the Small Business Innovation Research 
        Program Reauthorization Act of 1999, the Administrator shall 
        modify the policy directives issued pursuant to this subsection 
        to clarify that the rights provided for under subparagraph 
        (2)(A) of this subsection apply to all Federal funding awards 
        falling under the definitions of `first phase', `second phase', 
        or `third phase', as specified in subsection (e)(4).''.

SEC. 7. REPORT ON PROGRAMS FOR ANNUAL PERFORMANCE PLAN.

    Section 9(g) of the Small Business Act (15 U.S.C. 638(g)) is 
amended--
            (1) in paragraph (7), by striking ``and'' at the end;
            (2) in paragraph (8), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(9) include, as part of its annual performance plan as 
        required by subsections (a) and (b) of section 1115 of title 
        31, United States Code, a section on its SBIR program, and 
        shall submit such section to the Committee on Small Business of 
        the Senate, and the Committee on Science and the Committee on 
        Small Business of the House of Representatives.''.

SEC. 8. OUTPUT AND OUTCOME DATA.

    (a) Collection.--Section 9(g) of the Small Business Act (15 U.S.C. 
638(g)) is amended--
            (1) by striking ``and'' at the end of paragraph (7);
            (2) by striking the period at the end of paragraph (8) and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(9) collect and include in the report required by 
        paragraph (8) such data from awardees as is necessary to assess 
        SBIR program outputs and outcomes, including data necessary to 
        maintain the data base described in subsection (k).''.
    (b) Report to Congress.--Section 9(b)(7) of the Small Business Act 
(15 U.S.C. 638(b)(7)) is further amended by inserting ``, including the 
data on output and outcomes collected pursuant to subsections (g)(8) 
and (o)(9) and a description of the extent to which Federal agencies 
are providing in a timely manner information needed to maintain the 
data base described in subsection (k)'' before the period at the end.
    (c) Data Base.--Section 9 of the Small Business Act (15 U.S.C. 638) 
is amended by adding after subsection (j) the following new subsection:
    ``(k) Data Base.--
            ``(1) Public data base.--Not later than 180 days after the 
        date of the enactment of the Small Business Innovation Research 
        Program Reauthorization Act of 1999, the Administrator shall 
        develop, maintain, and make available to the public a 
        searchable, up-to-date, electronic data base that includes--
                    ``(A) the name, size, and location, and an 
                identifying number assigned by the Administration, of 
                each small business concern that has received a first 
                phase or second phase SBIR award from a Federal agency; 
                and
                    ``(B) a description of each first phase or second 
                phase SBIR award received by that small business 
                concern, including--
                            ``(i) an abstract of the project funded by 
                        the award;
                            ``(ii) the Federal agency making the award; 
                        and
                            ``(iii) the date and amount of the award.
            ``(2) Government data base.--Not later than 180 days after 
        the date of the enactment of the Small Business Innovation 
        Research Program Reauthorization Act of 1999, the 
        Administrator, in consultation with Federal agencies required 
        to have an SBIR program pursuant to subsection (f)(1), shall 
        develop and maintain a data base to be used for SBIR program 
        evaluation that--
                    ``(A) contains information, for each second phase 
                award made by a Federal agency, on--
                            ``(i) revenue from the sale of new products 
                        or services (other than research or research 
                        and development services) resulting from the 
                        technology developed under the award; and
                            ``(ii) additional investment from any 
                        source, other than the SBIR or STTR program, in 
                        activities that further the development or 
                        commercialization of the technology developed 
                        under the award, with commercialization 
                        investment identified separately;
                    ``(B) includes any brief narrative information that 
                a small business concern receiving a second phase award 
                submits to further describe the outputs and outcomes of 
                its award;
                    ``(C) includes for each applicant for a first phase 
                or second phase award which does not receive an award--
                            ``(i) the name, size, and location, and an 
                        identifying number assigned by the 
                        Administration;
                            ``(ii) an abstract of the project; and
                            ``(iii) the Federal agency to which the 
                        application was made; and
                    ``(D) is available for use only for program 
                evaluation purposes by the Federal Government or by 
                other authorized persons who are subject to a use and 
                nondisclosure agreement with the Federal Government 
                covering the use of the data base.
            ``(3) Protection of information.--Information provided 
        under paragraph (2) shall be considered privileged and 
        confidential and not subject to disclosure pursuant to section 
        552 of title 5, United States Code.''.

SEC. 9. AWARD AMOUNT AND DURATION.

    Section 9(j) of the Small Business Act (15 U.S.C. 638(j)) is 
further amended by adding at the end the following new paragraph:
            ``(4) Further modification.--Not later than 30 days after 
        the date of enactment of the Small Business Innovation Research 
        Program Reauthorization Act of 1999, the Administrator shall 
        modify the policy directives issued pursuant to this subsection 
        to--
                    ``(A) authorize awards exceeding the amounts 
                established under paragraph (2)(D) or for time periods 
                greater than those established pursuant to this 
                subsection;
                    ``(B) require agencies to give preference when 
                providing second phase awards that exceed the amounts 
                established under paragraph (2)(D) to projects that 
                have met the requirements of subsection (e)(4)(B)(ii) 
                and (iii); and
                    ``(C) require that notice of and a justification 
                for any award described in subparagraph (A) be included 
                in the report required under subsection (g)(8).''.

SEC. 10. SECOND PHASE COMMERCIAL PLAN.

    Section 9(j)(2) of the Small Business Act (15 U.S.C. 638(j)(2)) is 
further amended--
            (1) by striking ``and'' at the end of subparagraph (H);
            (2) by striking the period at the end of subparagraph (I) 
        and inserting ``; and''; and
            (3) by adding at the end the following new subparagraph:
                    ``(J) the requirement of a commercial plan with 
                each application for a second phase award.''.

SEC. 11. NATIONAL RESEARCH COUNCIL REPORT.

    (a) Study and Recommendations.--The heads of each agency with a 
budget of more than $65,000,000 for its SBIR program for fiscal year 
1999 shall, not later than 6 months after the date of the enactment of 
this Act, cooperatively enter into an agreement with the National 
Research Council for such Council, in consultation with the Office of 
Advocacy of the Small Business Administration and other interested 
parties, to--
            (1) conduct a comprehensive study of how the Small Business 
        Innovation Research Program has stimulated technological 
        innovation and used small businesses to meet Federal research 
        and development needs, including--
                    (A) a review of the importance that Federal 
                research agencies are assigning to the Small Business 
                Innovation Research Program, and of the quality of 
                research being conducted under such program;
                    (B) an evaluation of the economic rate of return of 
                the Small Business Innovation Research Program over the 
                life of the program;
                    (C) a comparison of the rate of technological 
                innovation by small businesses with that of large 
                businesses and universities;
                    (D) a comparison of the allocation for fiscal year 
                1999 of Federal research and development funds to small 
                businesses with such allocation for fiscal year 1983; 
                and
                    (E) an analysis of whether Federal agencies, in 
                fulfilling their procurement needs, are making 
                sufficient effort to use small businesses that have 
                completed a second phase award; and
            (2) make recommendations with respect to--
                    (A) measures of outcomes for strategic plans 
                submitted under section 306 of title 5, United States 
                Code, and performance plans submitted under section 
                1115 of title 31, United States Code, of each Federal 
                agency participating in the Small Business Innovation 
                Research Program;
                    (B) whether companies who can demonstrate project 
                feasibility, but who have not received a first phase 
                award, should be eligible for second phase awards, and 
                the potential impacts of such awards on the competitive 
                selection process of the program;
                    (C) whether the Federal Government should be 
                permitted to recoup some or all of its expenses if a 
                controlling interest in a company receiving an SBIR 
                award is sold to a foreign company or to a company 

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