Senate Legislative Counsel

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1Purpose: In the nature of a substitute. 2 3 4S. 2812 5

6To amend the Small Business Act to reauthorize and improve 7the Small Business Innovation Research Program and the Small 8Business Technology Transfer Program, and for other purposes. 9

10Referred to the Committee on ______and ordered to be 11printed

12Ordered to lie on the table and to be printed

13AMENDMENT IN THE NATURE OF A SUBSTITUTE INTENDED TO BE 14PROPOSED BY MRS. SHAHEEN (for herself and Mr. VITTER) 15Viz: 16 Strike all after the enacting clause and insert the following:

17SECTION 1. SHORT TITLE. 18 This Act may be cited as the “SBIR and STTR Reauthorization and Improvement Act of 192016”.

20SEC. 2. TABLE OF CONTENTS. 21 The table of contents for this Act is as follows: 22Sec.1.Short title. 23Sec.2.Table of contents.

24TITLE I—REAUTHORIZATION OF PROGRAMS 25Sec.101.Permanency of SBIR program and STTR program.

26TITLE II—ENHANCED SMALL BUSINESS ACCESS TO 27FEDERAL INNOVATION INVESTMENTS 28Sec.201.Allocation increases and transparency in base calculation compliance clarification. 29Sec.202.Regular oversight of award amounts.

30TITLE III—COMMERCIALIZATION IMPROVEMENTS 3 1 45／4／2018 512:58 AM 1Senate Legislative Counsel 2CompareRite of O:\HEN\HEN16812.XML and O:\HEN\HEN16818.XML

1Sec.301.Permanency of the commercialization pilot program for civilian agencies. 2Sec.302.Enforcement of national small business goal for Federal research and development. 3Sec.303.Tracking rapid innovation fund awards in annual congressional report. 4Sec.303.Protecting innovative technologies. 5Sec.304.Intellectual property protection for technology development. 6Sec.305.Annual Sec.304.Annual GAO audit of compliance with commercialization goals. 7Sec.306.Clarifying Sec.305.Clarifying the Phase III preference. 8Sec.307.Improvements Sec.306.Improvements to technical and business assistance. 9Sec.307.Extension of phase 0 proof of concept partnership pilot. 10Sec.308.Satisfaction of competition requirements for Department of Defense. 11Sec.309.Pilot program for streamlined technology transition from the SBIR and STTR 12programs of the Department of Defense.

13TITLE IV—PROGRAM DIVERSIFICATION INITIATIVES 14Sec.401.Regional SBIR State collaborative initiative pilot program. 15Sec.402.Federal and State Technology Partnership Program.

16TITLE V—OVERSIGHT AND SIMPLIFICATION 17INITIATIVES 18Sec.501.Data realignment and modernization summit. 19Sec.502.Implementation of outstanding reauthorization provisions. 20Sec.503.Strengthening of the requirement to shorten the application review and decision time. 21Sec.504.Continued GAO oversight of allocation compliance and accuracy in funding base 22calculations. 23Sec.505.Coordination between agencies on commercialization assistance.

24TITLE VI—PARTICIPATION BY WOMEN AND 25MINORITIES 26Sec.601.SBA coordination on increasing outreach for women and minority-owned businesses. 27Sec.602.Federal agency outreach requirements for women and minority-owned businesses. 28Sec.603.STTR policy directive modification. 29Sec.604.Interagency SBIR/STTR Policy Committee. 30Sec.605.Diversity and STEM workforce development pilot program.

31TITLE VII—TECHNICAL CHANGES 32Sec.701.Uniform reference to the Department of Health and Human Services.

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1Sec.702.Flexibility for Phase II award invitations.

2TITLE I—REAUTHORIZATION OF PROGRAMS

3SEC. 101. PERMANENCY OF SBIR PROGRAM AND STTR 4PROGRAM. 5 (a) SBIR.—Section 9(m) of the Small Business Act (15 U.S.C. 638(m)) is amended— 6 (1) in the subsection heading, by striking “Termination” and inserting “SBIR Program 7 Authorization”; and 8 (2) by striking “terminate on September 30, 2017” and inserting “be in effect for each 9 fiscal year”. 10 (b) STTR.—Section 9(n)(1)(A) of the Small Business Act (15 U.S.C. 638(n)(1)(A)) is 11amended by striking “through fiscal year 2017”.

12TITLE II—ENHANCED SMALL BUSINESS ACCESS TO 13FEDERAL INNOVATION INVESTMENTS

14SEC. 201. ALLOCATION INCREASES AND 15TRANSPARENCY IN BASE CALCULATION 16COMPLIANCE CLARIFICATION. 17 (a) SBIR.—Section 9(f)(1) of the Small Business Act (15 U.S.C. 638(f)) is amended— 18 (1) in paragraph (1)— 19 (A) in the matter preceding subparagraph (A), by striking “expend” and inserting 20 “obligate for expenditure”; 21 (B)(2) in subparagraph (H), by striking “and” at the end; 22 (C)(3) in subparagraph (I), by striking “and“in fiscal year 2017 and each fiscal year 23 thereafter,” and inserting a semicolon; and“in each of fiscal years 2017 through 2021”; 24 and 25 (D)(4) by inserting after subparagraph (I) the following: 26 “(J) for a Federal agency other than the National Science Foundation or the 27 Department of Defense— Health and Human Services— 28 “(i) not less than 3.5 3.4 percent of the extramural budget for research or 29 research and development of the Federal agency in each of fiscal years 2018 and 30 2019 year 2022; 31 “(ii) not less than 4 3.6 percent of such extramural budget in each of fiscal 32 years 2020 and 2021 year 2023; 33 “(iii) not less than 4.5 3.8 percent of such extramural budget in each of fiscal 34 years 2022 and 2023 year 2024;

1 “(iv) not less than 5 4 percent of such extramural budget in each of fiscal years 2 2024 and year 2025; 3 “(v) not less than 5.5 4.2 percent of such extramural budget in each of fiscal 4 years 2026 and 2027; and fiscal year 2026; 5 “(vi) not less than 6“(vi) not less than 4.4 percent of such extramural budget 6 in fiscal year 2027; and 7 “(vii) not less than 4.5 percent of such extramural budget in fiscal year 2028 8 and each fiscal year thereafter; and 9 “(K) for the National Science Foundation and the Department of Health and 10 Human Services, for fiscal year 2022 Department of Defense— 11 “(i) not less than 2.5 percent of the budget for research, development, test, and 12 evaluation of the Department of Defense in each of fiscal years 2018 and 2019; 13 “(ii) not less than 3 percent of such budget in each of fiscal years 2020 and 2021; 14 “(iii) not less than 3.5 percent of such budget in each of fiscal years 2022 and 2023; 15 “(iv) not less than 4 percent of such budget in each of fiscal years 2024 and 2025; 16 “(v) not less than 4.5 percent of such budget in each of fiscal years 2026 and 2027; 17 and 18 “(vi) not less than 5 percent of such budget in fiscal year 2028 and each fiscal year 19 thereafter, ”; the lesser of— 20 (2) in paragraph (2)(B), by inserting “(or for the Department of Defense, an 21 amount of the budget for basic research of the Department of Defense)” after 22 “research”; and“(i) the percentage of the extramural budget for research or 23 research and development of the National Science Foundation or the 24 Department of Health and Human Services, respectively, equal to the sum of 25 — 26 (3) in paragraph (4), by inserting “(or for the Department of Defense an 27 amount of the “(I) the percentage in effect under this paragraph for the 28 National Science Foundation or the Department of Health and Human 29 Services, respectively, for the previous fiscal year; and 30 “(II)(aa) 0.07 percent; or 31 “(bb) if the extramural budget for research, development, test, and 32 evaluation of the Department of Defense)” after “of the agency”. or 33 research and development of the National Science Foundation or the 34 Department of Health and Human Services, respectively, for the fiscal 35 year is not less than 103 percent of such extramural budget for the 36 previous fiscal year, 0.2 percent; or 37 “(ii) 4.5 percent of the extramural budget for research or research and 38 development of the National Science Foundation or the Department of 39 Health and Human Services, respectively,”. 40 (b) STTR.—Section 9(n)(1) of the Small Business Act (15 U.S.C. 638(n)(1)) is amended— 3 4 45／4／2018 512:58 AM 1Senate Legislative Counsel 2CompareRite of O:\HEN\HEN16812.XML and O:\HEN\HEN16818.XML

1 (1) in subparagraph (A)— 2 (A) by striking “expend” and inserting “obligate for expenditure”; and 3 (B) by striking “not less than the percentage of that extramural budget specified in 4 subparagraph (B)” and inserting “for a Federal agency other than the National Science 5 Foundation or the Department of Defense Health and Human Services, not less 6 than the percentage of that extramural budget specified in subparagraph (B) and, for , 7 and for the National Science Foundation and the Department of Defense Health 8 and Human Services, not less than the percentage of the budget for research, 9 development, test, and evaluation of the Department of Defense that extramural 10 budget specified in subparagraph (B)”(C)”; 11 (2) in subparagraph (B)—

12 (A) in the subparagraph heading, by inserting “OTHER THAN FOR NSF AND HHS” 13 after “AMOUNTS”; 14 (B) in the matter preceding clause (i), by striking “the extramural budget required to 15 be expended by an agency” and inserting “the extramural budget, for of a Federal 16 agency other than the Department of Defense, and of the budget for research, 17 development, test, and evaluation, for the Department of Defense, National Science 18 Foundation or the Department of Health and Human Services required to be 19 obligated for expenditure with small business concerns”; 20 (B)(C) in clause (iv), by striking “and” at the end; 21 (C)(D) in clause (v), by striking “fiscal year 2016 and each fiscal year thereafter.” 22 and inserting “each of fiscal years 2016 and 2017 through 2021;”; and 23 (D)(E) by adding at the end the following: 24 “(vi) 0.55 percent for each of fiscal years 2018 and 2019; 0.5 percent for fiscal 25 year 2022; 26 “(vii) 0.65 percent for each of fiscal years 2020 and 2021;“(vii) 0.55 percent 27 for fiscal year 2023; 28 “(viii) 0.75 percent for each of fiscal years 2022 and 2023; and 29 “(ix) 1“(viii) 0.6 percent for fiscal year 2024; 30 “(ix) 0.65 percent for fiscal year 2025; 31 “(x) 0.7 percent for fiscal year 2026; 32 “(xi) 0.75 percent for fiscal year 2027; 33 “(xii) 0.8 percent for fiscal year 2028; 34 “(xiii) 0.85 percent for fiscal year 2029; 35 “(xiv) 0.9 percent for fiscal year 2030; and 36 “(xv) 0.95 percent for fiscal year 2031 and each fiscal year thereafter.”; and 37 (3) by adding at the end the following:

1 “(C) EXPENDITURE AMOUNTS FOR NSF AND HHS.—The percentage of the 2 extramural budget required to be expended by the National Science Foundation 3 and the Department of Health and Human Services in accordance with 4 subparagraph (A) shall be— 5 “(i) for each of fiscal years 2016 through 2021, 0.45 percent; and 6 “(ii) for fiscal year 2022 and each fiscal year thereafter, the lesser of— 7 “(I) the percentage of the extramural budget for research or research 8 and development of the National Science Foundation or the Department 9 of Health and Human Services, respectively, equal to the sum of— 10 “(aa) the percentage in effect under this paragraph for the 11 National Science Foundation or the Department of Health and 12 Human Services, respectively, for the previous fiscal year; and 13 “(bb)(AA) 0 percent; or 14 “(BB) if the extramural budget for research or research and 15 development of the National Science Foundation or the Department 16 of Health and Human Services, respectively, for the fiscal year is 17 not less than 103 percent of such extramural budget for the 18 previous fiscal year, 0.05 percent; or 19 “(II) 0.95 percent of the extramural budget for research or research 20 and development of the National Science Foundation or the Department 21 of Health and Human Services, respectively.”. 22 (c) Department of Defense Funding Increase Pilot.—For each of fiscal years 2018, 2019, 23and 2020, the Secretary of Defense may authorize any program of the Department of 24Defense to expend funds through the Small Business Innovation Research program or the 25Small Business Technology Transfer program. Any additional funds expended under the 26authority under this subsection shall not count towards meeting the required expenditure 27requirements under subsection (f) or (n) of section 9 of the Small Business Act (15 U.S.C. 28638), as amended by this section.

29SEC. 202. REGULAR OVERSIGHT OF AWARD AMOUNTS. 30 (a) Elimination of Automatic Inflation Adjustments.—Section 9(j) of the Small Business Act 31(15 U.S.C. 638(j)) is amended— 32 (1) in paragraph (2)(D), by inserting “through fiscal year 2016” after “every year”; and 33 (2) by adding at the end the following:

34 “(4) 2016 MODIFICATIONS FOR DOLLAR VALUE OF AWARDS.—Not later than 120 days after 35 the date of enactment of the SBIR and STTR Reauthorization and Improvement Act of 36 2016, the Administrator shall modify the policy directives issued under this subsection to 37 clarify that Congress intends to review to— 38 “(A) eliminate the annual adjustments for inflation of the dollar value of awards 39 described in paragraph (2)(D); and

1 “(B) clarify that Congress intends to review the dollar value of awards every 3 fiscal 2 years.”. 3 (b) Sense of Congress Regarding Regular Review of the Award Sizes.—It Sizes.—

4 (1) IN GENERAL.—It is the sense of Congress that for fiscal year 2019, and every third 5 fiscal year thereafter, Congress should evaluate whether the maximum award sizes under 6 the Small Business Innovation Research Program and the Small Business Technology 7 Transfer Program under section 9 of the Small Business Act (15 U.S.C. 638) should be 8 adjusted and, if so, take appropriate action to direct that such adjustments be made under the 9 policy directives issued under subsection (j) of such section.

10 (2) POLICY CONSIDERATIONS.—In reviewing adjustments to the maximum award 11 sizes, Congress should take into consideration the balance of number of awards to size 12 of awards, the missions of Federal agencies, and the technology needed to support 13 national goals. 14 (c) Clarification of Sequential Phase II Awards.—Section 9(ff) of the Small Business Act (15 15U.S.C. 638(ff)) is amended by adding at the end the following:

16 “(3) CLARIFICATION OF SEQUENTIAL PHASE II AWARDS.—The head of a Federal agency shall 17 ensure that any sequential Phase II award is made in accordance with the limitations on 18 award sizes under subsection (aa).

19 “(4) CROSS-AGENCY SEQUENTIAL PHASE II AWARDS.—A small business concern that 20 receives a sequential Phase II SBIR or Phase II STTR award for a project from a Federal 21 agency is eligible to receive an additional sequential Phase II award that continues work on 22 that project from another Federal agency.”.

23TITLE III—COMMERCIALIZATION IMPROVEMENTS

24SEC. 301. PERMANENCY OF THE 25COMMERCIALIZATION PILOT PROGRAM FOR CIVILIAN 26AGENCIES. 27 Section 9(gg) of the Small Business Act (15 U.S.C. 638(gg)) is amended— 28 (1) in the subsection heading, by striking “Pilot Program” and inserting 29 “Commercialization Development Awards”; 30 (2) by striking paragraphs (2), (7), and (8); 31 (3) by redesignating paragraphs (3), (4), (5), and (6) as paragraphs (2), (3), (4), and (5), 32 respectively; 33 (4) by adding at the end the following:

34 “(6) DEFINITIONS.—In this subsection— 35 “(A) the term ‘commercialization development program’ means a program 36 established by a covered Federal agency under paragraph (1); and 37 “(B) the term ‘covered Federal agency’—

1 “(i) means a Federal agency participating in the SBIR program or the STTR 2 program; and 3 “(ii) does not include the Department of Defense.”; and 4 (5) by striking “pilot program” each place it appears and inserting “commercialization 5 development program”.

6SEC. 302. ENFORCEMENT OF NATIONAL SMALL 7BUSINESS GOAL FOR FEDERAL RESEARCH AND 8DEVELOPMENT. 9 Section 9(h) of the Small Business Act (15 U.S.C. 638(h)) is amended by inserting “, which 10may not be less than 10 percent for fiscal year 2018, and each fiscal year thereafter,” after “shall 11establish goals”.(h)) is amended to read as follows: 12 SEC. 303. TRACKING RAPID INNOVATION FUND AWARDS IN ANNUAL 13CONGRESSIONAL REPORT.“(h) National Small Business Goal for Federal Research and 14Development.—

15 Section 9(b)(7) of the Small Business Act (15 U.S.C. 638(b)(7)) is amended—“(1) IN 16 GENERAL.—The Administrator, in consultation with Federal agencies, shall establish a 17 Governmentwide goal for each fiscal year, which shall be not less than 10 percent, for 18 the percentage of the amounts made available for research or research and 19 development that shall be obligated for funding agreements— 20 (1) in subparagraph (F), by striking “and” at the end; 21 (2) in subparagraph (G), adding “and” at the end; and 22 (3) by adding at the end the following: 23 “(H) information regarding awards under the Rapid Innovation Program under 24 section 1073 of the Ike Skelton National Defense Authorization Act for Fiscal Year 25 2011 (Public Law 111383; 124 Stat. 4366; 10 U.S.C. 2359 note), including— 26 “(i) the number and dollar amount of awards made under the Rapid Innovation 27 Program to business concerns receiving an award under the SBIR program or the 28 STTR program; 29 “(ii) the proportion of awards under the Rapid Innovation Program made to business 30 concerns receiving an award under the SBIR program or the STTR program; 31 “(iii) the proportion of awards under the Rapid Innovation Program made to“(A) 32 with small business concerns; and or 33 “(iv) a projection of the effect on the number of awards under the Rapid Innovation 34 Program if amounts to carry out the program were made available as a fixed allocation 35 of the amount appropriated to the Department of Defense for research, development, 36 test, and evaluation, excluding amounts appropriated for the defense universities;”.“(B) 37 that will facilitate the development of research and development small business 38 concerns.

1 SEC. 304. INTELLECTUAL PROPERTY PROTECTION FOR TECHNOLOGY 2 DEVELOPMENT.“(2) AGENCY GOALS.—

3 “(A) IN GENERAL.—The head of each Federal agency which has a budget for 4 research or research and development in excess of $20,000,000, in consultation 5 with the Administrator, shall establish a goal for the Federal agency for each 6 fiscal year that is appropriate to the mission of the Federal agency for the 7 percentage of such budget that shall be obligated for funding agreements— 8 “(i) with small business concerns; or 9 “(ii) that will facilitate the development of research and development small 10 business concerns.

11 “(B) LIMITATION.—The head of a Federal agency may not establish a 12 percentage goal under subparagraph (A) for a fiscal year that is less than the 13 percentage goal that was established under subparagraph (A) for the Federal 14 agency for the previous fiscal year.”.

15SEC. 303. PROTECTING INNOVATIVE 16TECHNOLOGIES. 17 Section 9 of the Small Business Act (15 U.S.C. 638) is amended by adding at the end the 18following: 19 “(tt) Intellectual Property Protections.— Protecting Innovative Technologies.—

20 “(1) “(1) COST-REIMBURSEMENT CONTRACTS.—

21 “(A) IN GENERAL.—Subject to paragraph (2)(B) subparagraph (B)(ii), the cost of 22 seeking protection for intellectual property, including a trademark, copyright, or patent, 23 that was created through work performed under an SBIR or STTR award STTR 24 award that uses a cost-reimbursement contract or an SBIR award that uses a 25 cost-reimbursement contract is allowable as an indirect cost under that award.

26 “(2)“(B) CLARIFICATION OF PATENT COSTS.—

27 “(A)“(i) IN GENERAL.—A Federal agency shall not directly or indirectly inhibit, 28 through the policies, directives, or practices of the Federal agency, an otherwise 29 eligible small business concern performing under an SBIR or STTR award award 30 described in subparagraph (A) from recovering patent costs incurred as 31 requirements under that award, including— 32 “(i)“(I) the costs of preparing— 33 “(I)“(aa) invention disclosures; 34 “(II)“(bb) reports; and 35 “(III)“(cc) other documents; 36 “(ii)“(II) the costs for searching the art to the extent necessary to make the 37 invention disclosures; 38 “(iii)“(III) other costs in connection with the filing and prosecution of a 3 9 45／4／2018 512:58 AM 1Senate Legislative Counsel 2CompareRite of O:\HEN\HEN16812.XML and O:\HEN\HEN16818.XML

1 United States patent application where title or royalty-free license is to be 2 conveyed to the Federal Government; and 3 “(iv)“(IV) general counseling services relating to patent matters, including 4 advice on patent laws, regulations, clauses, and employee agreements. 5 “(B) Recovery limitations.—After consultation with contracting or auditing 6 authorities, the“(ii) RECOVERY LIMITATIONS.—The patent costs described in 7 subparagraph (A) clause (i) shall be allowable for technology developed under a 8 — 9 “(i)“(I) Phase I award, as indirect costs in an amount not greater than 10 $5,000; 11 “(ii)“(II) Phase II award, as indirect costs in an amount not greater than 12 $15,000; and 13 “(iii)“(III) Phase III award in which the Federal Government has 14 government purpose rights (as defined in section 227.7103-5 of title 48, 15 Code of Federal Regulations).”. Regulations).

16 SEC. 305“(2) FIRM FIXED-PRICE CONTRACTS.—An otherwise eligible small business 17 concern performing under an STTR award that uses a firm fixed-price contract or an 18 SBIR award that uses a firm fixed-price contract may recover fair and reasonable 19 costs arising from seeking protection for intellectual property, including a trademark, 20 copyright, or patent, that was created through work performed under that award.”.

21SEC. 304. ANNUAL GAO AUDIT OF COMPLIANCE WITH 22COMMERCIALIZATION GOALS. 23 Section 9(nn) of the Small Business Act (15 U.S.C. 638(nn)) is amended to read as follows: 24 “(nn) Annual GAO Report on Government Compliance With Goals, Incentives, and Phase III 25Preference.—Not later than 1 year after the date of enactment of the SBIR and STTR 26Reauthorization and Improvement Act of 2016, and every year thereafter until the date that is 5 27years after the date of enactment of the SBIR and STTR Reauthorization and Improvement Act 28of 2016, the Comptroller General of the United States shall submit to the Committee on Small 29Business and Entrepreneurship of the Senate and the Committee on Small Business of the House 30of Representatives a report that— 31 “(1) discusses the status of the compliance of Federal agencies with the requirements or 32 authorities established under— 33 “(A) subsection (h), relating to the establishment by certain Federal agencies of a 34 goal for funding agreements for research and research and development with small 35 business concerns; 36 “(B) subsection (y)(5)(A), relating to the requirement for the Department of Defense 37 to establish goals for the transition of Phase III technologies in subcontracting plans; 38 “(C) subsection (y)(5)(B), relating to the requirement for the Department of Defense 39 to establish procedures for a prime contractor to report the number and dollar amount 40 of contracts with small business concerns for Phase III SBIR projects or STTR projects 3 10 45／4／2018 512:58 AM 1Senate Legislative Counsel 2CompareRite of O:\HEN\HEN16812.XML and O:\HEN\HEN16818.XML

1 of the prime contractor; and 2 “(D) subsection (y)(6), relating to the requirement for the Department of Defense to 3 set a goal to increase the number of Phase II SBIR and STTR contracts that transition 4 into programs of record or fielded systems; 5 “(2) includes, for a Federal agency that is in compliance with a requirement described 6 under paragraph (1), a description of how the Federal agency achieved compliance; and 7 “(3) includes a list, organized by Federal agency, of small business concerns that have 8 asserted to an appropriate Federal agency that— 9 “(A) the Government or prime contractor— 10 “(i) did not protect the intellectual property of the small business concern in 11 accordance with data rights under the SBIR or STTR award; or 12 “(ii) issued a Phase III SBIR or STTR award conditional on relinquishing data 13 rights; 14 “(B) the Federal agency solicited bids for a contract, or provided funding to an entity 15 other than the small business concern receiving the SBIR or STTR award, that was for 16 work that derived from, extended, or completed efforts made under prior funding 17 agreements under the SBIR program or STTR program; 18 “(C) the Government or prime contractor did not comply with the SBIR and STTR 19 policy directives and the small business concern filed a comment or complaint to the 20 Office of the National Ombudsman or appealed to the Administrator for intervention; 21 or 22 “(D) the Federal agency did not comply with subsection (g)(12) or (o)(16) requiring 23 timely notice to the Administrator of any case or controversy before any Federal 24 judicial or administrative tribunal concerning the SBIR program or the STTR program 25 of the Federal agency.”.

26SEC. 306 305. CLARIFYING THE PHASE III PREFERENCE. 27 Section 9(r) of the Small Business Act (15 U.S.C. 638(r)) is amended— 28 (1) by striking paragraph (4); 29 (2) by redesignating paragraph (2) as paragraph (4), and transferring such paragraph to 30 after paragraph (3); and 31 (3) by inserting after paragraph (1) the following:

32 “(2) PHASE III AWARD DIRECTION FOR AGENCIES AND PRIME CONTRACTORS.—To the greatest 33 extent practicable, Federal agencies and Federal prime contractors shall issue Phase III 34 awards relating to technology, including sole source awards and awards under the Defense 35 Research and Development Rapid Innovation Program under section 1073 of the Ike 36 Skelton National Defense Authorization Act for Fiscal Year 2011 (Public Law 111383; 124 37 Stat. 4366; 10 U.S.C. 2359 note), to the SBIR and STTR award recipients that developed 38 the technology.”.

39SEC. 307 306. IMPROVEMENTS TO TECHNICAL AND 3 11 45／4／2018 512:58 AM 1Senate Legislative Counsel 2CompareRite of O:\HEN\HEN16812.XML and O:\HEN\HEN16818.XML

1BUSINESS ASSISTANCE. 2 Section 9(q) of the Small Business Act (15 U.S.C. 638(q)) is amended— 3 (1) in the subsection heading, by inserting “and Business” after “Technical”; 4 (2) in paragraph (1)— 5 (A) in the matter preceding subparagraph (A)— 6 (i) by striking “a vendor selected under paragraph (2)” and inserting “1 or more 7 vendors selected under paragraph (2)(A)”; 8 (ii) by inserting “and business” before “assistance services”; and 9 (iii) by inserting “assistance with product sales, intellectual property 10 protections, market research, market validation, and development of regulatory 11 plans and manufacturing plans,” after “technologies,”; and 12 (B) in subparagraph (D), by inserting “, including intellectual property protections” 13 before the period at the end; 14 (3) in paragraph (2)— 15 (A) by striking “Each agency may select a vendor to assist small business concerns 16 to meet” and inserting the following:

17 “(A) IN GENERAL.—Each agency may select 1 or more vendors from which small 18 business concerns may obtain assistance in meeting”; and 19 (B) by adding at the end the following:

20 “(B) SELECTION BY SMALL BUSINESS CONCERN.—A small business concern may, by 21 contract or otherwise, select 1 or more vendors to assist the small business concern in 22 meeting the goals listed in paragraph (1).”; and 23 (4) in paragraph (3)— 24 (A) by inserting “(A)” after “paragraph (2)” each place it appears; 25 (B) in subparagraph (A), by striking “$5,000 per year” each place it appears and 26 inserting “$6,500 per project”; 27 (C) in subparagraph (B)— 28 (i) by striking “$5,000 per year” each place it appears and inserting “$35,000 29 per project”; and 30 (ii) in clause (ii), by striking “which shall be in addition to the amount of the 31 recipient’s award” and inserting “which may, as determined appropriate by the 32 head of the Federal agency, be included as part of the recipient’s award or be in 33 addition to the amount of the recipient’s award”; 34 (D) in subparagraph (C)— 35 (i) by inserting “or business” after “technical”; 36 (ii) by striking “the vendor” and inserting “a vendor”; and

1 (iii) by adding at the end the following: “Business-related services aimed at 2 improving the commercialization success of a small business concern may be 3 obtained from an entity, such as a public or private organization or an agency of 4 or other entity established or funded by a State that facilitates or accelerates the 5 commercialization of technologies or assists in the creation and growth of private 6 enterprises that are commercializing technology.”; 7 (E) in subparagraph (D)— 8 (i) by inserting “or business” after “technical” each place it appears; and 9 (ii) in clause (i)— 10 (I) by striking “the vendor” and inserting “1 or more vendors”; and 11 (II) by striking “provides” and inserting “provide”; and 12 (F) by adding at the end the following:

13 “(E) MULTIPLE AWARD RECIPIENTS.—The Administrator shall establish a limit on the 14 amount of technical and business assistance services that may be received or purchased 15 under subparagraph (B) by small business concerns with respect to multiple Phase II 16 SBIR or STTR awards for a fiscal year.”.

17SEC. 307. EXTENSION OF PHASE 0 PROOF OF 18CONCEPT PARTNERSHIP PILOT. 19 Section 9(jj) of the Small Business Act (15 U.S.C. 638(jj)) is amended— 20 (1) in paragraph (6) by striking “The Director” and inserting “Not later than 21 February 1, 2019, the Director”; and 22 (2) in paragraph (7), by striking “2017” and inserting “2019”.

23SEC. 308. SATISFACTION OF COMPETITION 24REQUIREMENTS FOR DEPARTMENT OF DEFENSE. 25 All awards by the Department of Defense under the SBIR program or the STTR 26program shall be considered to meet the competition requirements under section 2304 of 27title 10, United States Code.

28SEC. 309. PILOT PROGRAM FOR STREAMLINED 29TECHNOLOGY TRANSITION FROM THE SBIR AND 30STTR PROGRAMS OF THE DEPARTMENT OF 31DEFENSE. 32 (a) Definitions.—In this section— 33 (1) the terms “commercialization”, “SBIR”, “STTR”, “Phase I”, “Phase II”, and 34 “Phase III” have the meanings given those terms in section 9(e) of the Small Business 35 Act (15 U.S.C. 638(e));

1 (2) the term “covered small business concern” means— 2 (A) a small business concern that completed a Phase II award under the SBIR 3 or STTR program of the Department of Defense; or 4 (B) a small business concern that— 5 (i) completed a Phase I award under the SBIR or STTR program of the 6 Department of Defense; and 7 (ii) a contracting officer for the Department of Defense recommends for 8 inclusion in a multiple award contract described in subsection (b); 9 (3) the term “multiple award contract” has the meaning given the term in section 10 3302(a) of title 41, United States Code; 11 (4) the term “pilot program” means the pilot program established under subsection 12 (b); and 13 ** 1 (6)(5) the term “small business concern” has the meaning given that the term under 14 in section 3 of the Small Business Act (15 U.S.C. 632). 15 (b) Establishment.—The Secretary of the Defense may establish a pilot program under 16which the Department of Defense shall award multiple award contracts to covered small 17business concerns for the purchase of technologies, supplies, or services that the covered 18small business concern has developed through the SBIR or STTR program. 19 (c) Waiver of Competition in Contracting Act Requirements.—The Secretary of the 20Defense may establish procedures to waive provisions of section 2304 of title 10, United 21States Code, for purposes of carrying out the pilot program. 22 (d) Use of Contract Vehicle.—A multiple award contract described in subsection (b) may 23be used by any service or component of the Department of Defense. 24 (e) Termination.—The pilot program established under this section shall terminate on 25September 30, 2022. 26 (f) Rule of Construction.—Nothing in this section shall be construed to prevent the 27commercialization of products and services produced by a small business concern under an 28SBIR or STTR program of a Federal agency through— 29 (1) direct awards for Phase III of an SBIR or STTR program; or 30 (2) any other contract vehicle.

31TITLE IV—PROGRAM DIVERSIFICATION INITIATIVES

32SEC. 401. REGIONAL SBIR STATE COLLABORATIVE 33INITIATIVE PILOT PROGRAM. 34 Section 9 of the Small Business Act (15 U.S.C. 638) is amended— 35 (1) in subsection (mm)— 36 (A) in paragraph (1)—

1 (i) in the matter preceding subparagraph (A), by striking “2017” and inserting 2 “2021”; 3 (ii) in subparagraph (I), by striking “and” at the end; 4 (iii) in subparagraph (J), by striking the period and inserting “; and”; and 5 (iv) by adding at the end the following: 6 “(K) funding for improvements that increase commonality across data systems, 7 reduce redundancy, and improve data oversight and accuracy.”; and 8 (B) by adding at the end the following:

9 “(7) SBIR AND STTR PROGRAMS; FAST PROGRAM.—

10 “(A) DEFINITION.—In this paragraph, the term ‘covered Federal agency’ means a 11 Federal agency that— 12 “(i) is required to conduct an SBIR program; and 13 “(ii) elects to use the funds allocated to the SBIR program of the Federal 14 agency for the purposes described in paragraph (1).

15 “(B) REQUIREMENT.—Each covered Federal agency shall transfer an amount equal to 16 15 percent of the funds that are used for the purposes described in paragraph (1) to the 17 Administration— 18 “(i) for the Regional SBIR State Collaborative Initiative Pilot Program 19 established under subsection (uu); 20 “(ii) for the Federal and State Technology Partnership Program established 21 under section 34; and 22 “(iii) to support the Office of the Administration that administers the SBIR 23 program and the STTR program, subject to agreement from other agencies about 24 how the funds will be used, in carrying out those programs and the programs 25 described in clauses (i) and (ii).

26 “(8) PILOT PROGRAM.—

27 “(A) IN GENERAL.—Of amounts provided to the Administration under paragraph (7), 28 not less than $5,000,000 shall be used to provide awards under the Regional SBIR 29 State Collaborative Initiative Pilot Program established under subsection (uu) for each 30 fiscal year in which the program is in effect.

31 “(B) DISBURSEMENT FLEXIBILITY.—The Administration may use any unused funds 32 made available under subparagraph (A) as of April 1 of each fiscal year for awards to 33 carry out clauses (ii) and (iii) of paragraph (7)(B) after providing written notice to— 34 “(i) the Committee on Small Business and Entrepreneurship and the Committee 35 on Appropriations of the Senate; and 36 “(ii) the Committee on Small Business and the Committee on Appropriations of 37 the House of Representatives.”; and 38 (2) by adding after subsection (tt), as added by section 304 303 of this Act, the following:

1 “(uu) Regional SBIR State Collaborative Initiative Pilot Program.—

2 “(1) DEFINITIONS.—In this subsection— 3 “(A) the term ‘eligible entity’ means— 4 “(i) a research institution; and 5 “(ii) a small business concern; 6 “(B) the term ‘eligible State’ means— 7 “(i) a State that the Administrator determines is in the bottom half of States, 8 based on the average number of annual SBIR program awards made to companies 9 in the State for the preceding 3 years for which the Administration has applicable 10 data; and 11 “(ii) an EPSCoR State that— 12 “(I) is a State described in clause (i); or 13 “(II) is— 14 “(aa) not a State described in clause (i); and 15 “(bb) invited to participate in a regional collaborative; 16 “(C) the term ‘EPSCoR State’ means a State that participates in the Experimental 17 Program to Stimulate Competitive Research of the National Science Foundation, as 18 established under section 113 of the National Science Foundation Authorization Act of 19 1988 (42 U.S.C. 1862g); 20 “(D) the term ‘FAST program’ means the Federal and State Technology Partnership 21 Program established under section 34; 22 “(E) the term ‘pilot program’ means the Regional SBIR State Collaborative 23 Initiative Pilot Program established under paragraph (2); 24 “(F) the term ‘regional collaborative’ means a collaborative consisting of eligible 25 entities that are located in not less than 3 eligible States; and 26 “(G) the term ‘State’ means any State of the United States, the District of Columbia, 27 the Commonwealth of Puerto Rico, and any territory or possession of the United 28 States.

29 “(2) ESTABLISHMENT.—The Administrator shall establish a pilot program, to be known as 30 the Regional SBIR State Collaborative Initiative Pilot Program, under which the 31 Administrator shall provide awards to regional collaboratives to address the needs of small 32 business concerns in order to be more competitive in the proposal and selection process for 33 awards under the SBIR program and the STTR program and to increase technology transfer 34 and commercialization.

35 “(3) GOALS.—The goals of the pilot program are— 36 “(A) to create regional collaboratives that allow eligible entities to work 37 cooperatively to leverage resources to address the needs of small business concerns; 38 “(B) to grow SBIR program and STTR program cooperative research and 3 16 45／4／2018 512:58 AM 1Senate Legislative Counsel 2CompareRite of O:\HEN\HEN16812.XML and O:\HEN\HEN16818.XML

1 development and commercialization through increased awards under those programs; 2 “(C) to increase the participation of States that have historically received a lower 3 level of awards under the SBIR program and the STTR program; 4 “(D) to utilize the strengths and advantages of regional collaboratives to better 5 leverage resources, best practices, and economies of scale in a region for the purpose 6 of increasing awards and increasing the commercialization of the SBIR program and 7 STTR projects; 8 “(E) to increase the competitiveness of the SBIR program and the STTR program; 9 “(F) to identify sources of outside funding for applicants for an award under the 10 SBIR program or the STTR program, including venture capitalists, angel investor 11 groups, private industry, crowd funding, and special loan programs; and 12 “(G) to offer increased one-on-one engagements with companies and entrepreneurs 13 for SBIR program and STTR program education, assistance, and successful outcomes.

14 “(4) APPLICATION.—

15 “(A) IN GENERAL.—A regional collaborative that desires to participate in the pilot 16 program shall submit to the Administrator an application at such time, in such manner, 17 and containing such information as the Administrator may require.

18 “(B) INCLUSION OF LEAD ELIGIBLE ENTITIES AND COORDINATOR.—A regional 19 collaborative shall include in an application submitted under subparagraph (A)— 20 “(i) the name of each lead eligible entity from each eligible State in the regional 21 collaborative, as designated under paragraph (5)(A); and 22 “(ii) the name of the coordinator for the regional collaborative, as designated 23 under paragraph (6).

24 “(C) AVOIDANCE OF DUPLICATION.—A regional collaborative shall include in an 25 application submitted under subparagraph (A) an explanation as to how the activities 26 of the regional collaborative under the pilot program would differ from other State and 27 Federal outreach activities in each eligible State in the regional collaborative.

28 “(5) LEAD ELIGIBLE ENTITY.—

29 “(A) IN GENERAL.—Each eligible State in a regional collaborative shall designate 1 30 eligible entity located in the eligible State to serve as the lead eligible entity for the 31 eligible State.

32 “(B) AUTHORIZATION BY GOVERNOR.—Each lead eligible entity designated under 33 subparagraph (A) shall be authorized to act as the lead eligible entity by the Governor 34 of the applicable eligible State.

35 “(C) RESPONSIBILITIES.—Each lead eligible entity designated under subparagraph (A) 36 shall be responsible for administering the activities and program initiatives described 37 in paragraph (7) in the applicable eligible State.

38 “(6) REGIONAL COLLABORATIVE COORDINATOR.—Each regional collaborative shall 39 designate a coordinator from amongst the eligible entities located in the eligible States in 40 the regional collaborative, who shall serve as the interface between the regional 3 17 45／4／2018 512:58 AM 1Senate Legislative Counsel 2CompareRite of O:\HEN\HEN16812.XML and O:\HEN\HEN16818.XML

1 collaborative and the Administration with respect to measuring cross-State collaboration 2 and program effectiveness and documenting best practices.

3 “(7) USE OF FUNDS.—Each regional collaborative that is provided an award under the pilot 4 program may, in each eligible State in which an eligible entity of the regional collaborative 5 is located— 6 “(A) establish an initiative under which first-time applicants for an award under the 7 SBIR program or the STTR program are reviewed by experienced, national experts in 8 the United States, as determined by the lead eligible entity designated under paragraph 9 (5)(A); 10 “(B) engage national mentors on a frequent basis to work directly with applicants for 11 an award under the SBIR program or the STTR program, particularly during Phase II, 12 to assist with the process of preparing and submitting a proposal; 13 “(C) create and make available an online mechanism to serve as a resource for 14 applicants for an award under the SBIR program or the STTR program to identify and 15 connect with Federal labs, prime government contractor companies, other industry 16 partners, and regional industry cluster organizations; 17 “(D) conduct focused and concentrated outreach efforts to increase participation in 18 the SBIR program and the STTR program by small business concerns owned and 19 controlled by women, small business concerns owned and controlled by veterans, 20 small business concerns owned and controlled by socially and economically 21 disadvantaged individuals (as defined in section 8(d)(3)(C)), and historically black 22 colleges and universities; 23 “(E) administer a structured program of training and technical assistance— 24 “(i) to prepare applicants for an award under the SBIR program or the STTR 25 program— 26 “(I) to compete more effectively for Phase I and Phase II awards; and 27 “(II) to develop and implement a successful commercialization plan; 28 “(ii) to assist eligible States focusing on transition and commercialization to 29 win Phase III awards from public and private partners; 30 “(iii) to create more competitive proposals to increase awards from all Federal 31 sources, with a focus on awards under the SBIR program and the STTR program; 32 and 33 “(iv) to assist first-time applicants by providing small grants for proof of 34 concept research; and 35 “(F) assist applicants for an award under the SBIR program or the STTR program to 36 identify sources of outside funding, including venture capitalists, angel investor 37 groups, private industry, crowd funding, and special loan programs.

38 “(8) AWARD AMOUNT.—

39 “(A) IN GENERAL.—The Administrator shall provide an award to each eligible State 40 in which an eligible entity of a regional collaborative is located in an amount that is not 3 18 45／4／2018 512:58 AM 1Senate Legislative Counsel 2CompareRite of O:\HEN\HEN16812.XML and O:\HEN\HEN16818.XML

1 more than $300,000 to carry out the activities described in paragraph (7).

2 “(B) LIMITATION.—

3 “(i) IN GENERAL.—An eligible State may not receive an award under both the 4 FAST program and the pilot program for the same year.

5 “(ii) RULE OF CONSTRUCTION.—Nothing in clause (i) shall be construed to 6 prevent an eligible State from applying for an award under the FAST program and 7 the pilot program for the same year.

8 “(9) DURATION OF AWARD.—An award provided under the pilot program shall be for a 9 period of not more than 1 year, and may be renewed by the Administrator for 1 additional 10 year.

11 “(10) TERMINATION.—The pilot program shall terminate on September 30, 2021.

12 “(11) REPORT.—Not later than February 1, 2021, the Administrator shall submit to the 13 Committee on Small Business and Entrepreneurship of the Senate and the Committee on 14 Small Business of the House of Representatives a report on the pilot program, which shall 15 include— 16 “(A) an assessment of the pilot program and the effectiveness of the pilot program in 17 meeting the goals described in paragraph (3); 18 “(B) an assessment of the best practices, including an analysis of how the pilot 19 program compares to the FAST program and a single-State approach; and 20 “(C) recommendations as to whether any aspect of the pilot program should be 21 extended or made permanent.”.

22SEC. 402. FEDERAL AND STATE TECHNOLOGY 23PARTNERSHIP PROGRAM. 24 Section 34 of the Small Business Act (15 U.S.C. 657d) is amended— 25 (1) in subsection (h)— 26 (A) in paragraph (1), by striking “2001 through 2005” and inserting “2017 through 27 2021”; and 28 (B) in paragraph (2), by striking “fiscal years 2001 through 2005” and inserting 29 “each of fiscal years 2017 through 2021”; and 30 (2) in subsection (i), by striking “September 30, 2005” and inserting “September 30, 31 2021”.

32TITLE V—OVERSIGHT AND SIMPLIFICATION 33INITIATIVES

34SEC. 501. DATA MODERNIZATION SUMMIT. 35REALIGNMENT AND MODERNIZATION. 36 (a) Definitions.—In this section— Section 9 of the Small Business Act (15 U.S.C. 638) is 3 19 45／4／2018 512:58 AM 1Senate Legislative Counsel 2CompareRite of O:\HEN\HEN16812.XML and O:\HEN\HEN16818.XML

1amended by adding after subsection (uu), as added by section 401 of this Act, the following: 2 (1) the term “Administration” means the Small Business Administration; 3 (2) the term “Committee” means the“(vv) SBIR and STTR Interagency Policy Committee.—

4 “(1) DEFINITIONS.—In this subsection— 5 “(A) the term ‘Committee’ means the SBIR and STTR Interagency Policy 6 Committee established under subsection (b); paragraph (2); 7 (3) the terms “Federal agency”, “SBIR”, and “STTR” have the meanings given such 8 terms under section 9(e) of the Small Business Act (15 U.S.C. 638(e)); 9 (4) the term “participating Federal agency”“(B) the term ‘participating Federal 10 agency’ means a Federal agency with an SBIR program or an STTR program; and 11 “(C)(5) the term “phase” ‘phase’ means Phase I, Phase II, and Phase III, as those 12 terms are defined under section 9(e) of the Small Business Act (15 U.S.C. 638(e)); and.

13 “(2) ESTABLISHMENT.—There is established an interagency committee to be known 14 as the ‘SBIR and STTR Interagency Policy Committee’.

15 “(3) MEMBERSHIP.—The Committee shall include— 16 17 * 1 (6) the term “small business concern” has the meaning given that term under 18 section 3 of the Small Business Act (15 U.S.C. 632). 19 (b) Establishment.—There is established an interagency committee to be known as 20 the “SBIR and STTR Interagency Policy Committee”. 21 (c) Membership.—The Committee shall include— 22 (1) 2“(A) 4 representatives from each participating Federal agency, of which— 23 (A)“(i) 1 shall have expertise with respect to the SBIR program and STTR 24 program of the Federal agency; 25 and“(ii) 1 shall have expertise with respect to the broader research and 26 development missions and programs of the Federal agency; 27 (B)“(iii) 1 shall have expertise with respect to marketplace 28 commercialization or to the transition of technologies to support the missions 29 of the Federal agency; and 30 “(iv) 1 shall have expertise with respect to the information technology systems 31 of the Federal agency; and 32 (2)“(B) 2 representatives from the Administration, of which— 33 (A)“(i) 1 shall serve as chairperson of the Committee; and 34 (B)“(ii) 1 shall be from the Information Technology Development Team of the 35 Office of Investment and Innovation of the Administration.

36 “(4) WORKING GROUPS.—

1 “(A) IN GENERAL.—The Committee shall establish working groups as necessary 2 to ensure consistency and clarity between the participating Federal agencies.

3 “(B) DATA REALIGNMENT AND MODERNIZATION WORKING GROUP.—

4 “(i) IN GENERAL.—The Committee shall establish a data alignment and 5 modernization working group, which(d) Duties.—The Committee shall review 6 the recommendations made in the report to Congress by the Office of Science and 7 Technology of the Administration entitled “SBIR/STTR ‘SBIR/STTR TechNet 8 Public & Government Databases” Databases’, dated September 15, 2014, and the 9 practices of participating Federal agencies to— 10 (1)“(I) determine how to collect data on achievements by small business 11 concerns in each phase of the SBIR program and the STTR program and 12 ensure collection and dissemination of such data in a timely, efficient, and 13 uniform manner; 14 (2)“(II) establish a uniform baseline for metrics that support improving 15 the solicitation, contracting, funding, and execution of program management 16 in the SBIR program and the STTR program; 17 (3)“(III) normalize formatting and database usage across participating 18 Federal agencies; and 19 (4)“(IV) determine the feasibility of developing a common system across 20 all participating Federal agencies and the paperwork requirements under 21 such a common system.

22 “(ii) MEMBERSHIP.—Each member of the Committee shall serve as a 23 member of the data alignment and modernization working group.

24 “(5)(e) IMPLEMENTATION.—Not later than September 31, 2018, the Committee shall brief 25 the Committee on Small Business and Entrepreneurship of the Senate and the Committee on 26 Small Business of the House of Representatives on the solutions identified by the 27 Committee working group under subsection (d) paragraph (4) and resources needed to 28 execute the solutions solutions.”.

29SEC. 502. IMPLEMENTATION OF OUTSTANDING 30REAUTHORIZATION PROVISIONS. 31 (a) In General.—Section 9(mm) of the Small Business Act (15 U.S.C. 638(mm)), as amended 32by section 401(1) of this Act, is amended— 33 (1) in paragraph (1), by striking “paragraph (3)” and inserting “paragraphs (3) and (9)”; 34 and 35 (2) by adding at the end the following:

36 “(9) SUSPENSION OF FUNDING.—

37 “(A) FOR FEDERAL AGENCIES.—

38 “(i) IN GENERAL.—For fiscal years 2018 and 2019, any Federal agency that has 39 not implemented each provision of law described in clause (ii)— 3 21 45／4／2018 512:58 AM 1Senate Legislative Counsel 2CompareRite of O:\HEN\HEN16812.XML and O:\HEN\HEN16818.XML

1 “(I) shall continue to provide amounts to the Administration in accordance 2 with paragraph (7)(B); and 3 “(II) may not use any additional amounts as described in paragraph (1) 4 until 30 days after the date on which the Federal agency submits to the 5 Committee on Small Business and Entrepreneurship of the Senate and the 6 Committee on Small Business of the House of Representatives 7 documentation demonstrating that the Federal agency has implemented and 8 is in compliance with each provision of law described in clause (ii).

9 “(ii) PROVISIONS.—The provisions of law described in this subparagraph clause 10 are the following: 11 “(I) Subsection (r)(4), relating to Phase III preferences. 12 “(II) Paragraphs (5) and (6) of subsection (y), relating to insertion goals. 13 “(III) Subsection (g)(4)(B), relating to shortening the decision time for 14 SBIR awards. 15 “(IV) Subsection (o)(4)(B), relating to shortening the decision time for 16 STTR awards. 17 “(V) Subsection (v), relating to reducing paperwork and compliance 18 burdens.

19 “(B) FOR ADMINISTRATION.—For fiscal years 2018 and 2019, if the Administration is 20 not in compliance with subsection (b)(7), relating to annual reports to Congress, the 21 Administration may not use amounts received under paragraph (7)(B) of this 22 subsection for a purpose described in clause (iii) of such paragraph (7)(B).”. 23 (b) Clarification of Reporting Requirement.—Section 9(b)(7) of the Small Business Act (15 24U.S.C. 638(b)(7)) is amended in the matter preceding subparagraph (A), by striking “not less 25than annually” and inserting “not later than December 31 of each year”.

26SEC. 503. STRENGTHENING OF THE REQUIREMENT TO 27SHORTEN THE APPLICATION REVIEW AND DECISION 28TIME. 29 Section 9 of the Small Business Act (15 U.S.C. 638) is amended— 30 (1) in subsection (g)(4), by striking subparagraph (B) and inserting the following: 31 “(B) make a final decision on each proposal submitted under the SBIR program— 32 “(i) for the Department of Health and Human Services, not later than 1 year after the 33 date on which the applicable solicitation closes, with a goal to reduce the review and 34 decision time to less than 10 months by September 30, 2019; 35 “(ii) for the Department of Agriculture and the National Science Foundation, not 36 later than 6 months after the date on which the applicable solicitation closes; or 37 “(iii) for any other Federal agency— 38 “(I) not later than 90 days after the date on which the applicable solicitation 3 22 45／4／2018 512:58 AM 1Senate Legislative Counsel 2CompareRite of O:\HEN\HEN16812.XML and O:\HEN\HEN16818.XML

1 closes; or 2 “(II) if the Administrator authorizes an extension with respect to a solicitation, 3 not later than 90 days after the date that would otherwise be applicable to the 4 Federal agency under subclause (I);”; and 5 (2) in subsection (o)(4), by striking subparagraph (B) and inserting the following: 6 “(B) make a final decision on each proposal submitted under the STTR program— 7 “(i) for the Department of Health and Human Services, not later than 1 year after the 8 date on which the applicable solicitation closes, with a goal to reduce the review and 9 decision time to less than 10 months by September 30, 2019; 10 “(ii) for the Department of Agriculture and the National Science Foundation, not 11 later than 6 months after the date on which the applicable solicitation closes; or 12 “(iii) for any other Federal agency— 13 “(I) not later than 90 days after the date on which the applicable solicitation 14 closes; or 15 “(II) if the Administrator authorizes an extension with respect to a solicitation, 16 not later than 90 days after the date that would otherwise be applicable to the 17 Federal agency under subclause (I);”.

18SEC. 504. CONTINUED GAO OVERSIGHT OF 19ALLOCATION COMPLIANCE AND ACCURACY IN 20FUNDING BASE CALCULATIONS. 21 Section 5136(a) of the National Defense Authorization Act for Fiscal Year 2012 (15 U.S.C. 22638 note) is amended— 23 (1) in the matter preceding paragraph (1), by striking “until the date that is 5 years after 24 the date of enactment of this Act” and insert “until the date on which the Comptroller 25 General of the United States submits the report relating to fiscal year 2019”; 26 (2) in paragraph (1), by striking subparagraph (C) and inserting the following: 27 “(C) assess whether the change in the base funding for the Department of Defense as 28 required by subparagraphs (J) and (K) of section 9(f)(1) of the Small Business Act (15 29 U.S.C. 638(f)(1)— 638(f)(1))— 30 “(i) improves transparency for determining whether the Department is 31 complying with the allocation requirements; 32 “(ii) reduces the burden of calculating the allocations; and 33 “(iii) improves the compliance of the Department with the allocation 34 requirements; and”; and 35 (3) in paragraph (2) by striking “under subparagraph (B)” and inserting “under 36 subparagraphs (B) and (C)”.

37SEC. 505. COORDINATION BETWEEN AGENCIES ON 3 23 45／4／2018 512:58 AM 1Senate Legislative Counsel 2CompareRite of O:\HEN\HEN16812.XML and O:\HEN\HEN16818.XML

1COMMERCIALIZATION ASSISTANCE. 2 Section 9 of the Small Business Act (15 U.S.C. 638) is amended— 3 (1) in subsection (j), as amended by section 202(a) of this Act, by adding at the end 4 the following:

5 “(5) COORDINATION OF COMMERCIALIZATION ASSISTANCE.—Not later than 120 days 6 after the date of enactment of this paragraph, the Administrator shall modify the 7 policy directive issued pursuant to this subsection to clarify that a small business 8 concern receiving training through the Innovation Corps program with administrative 9 funds made available under subsection (mm) shall not receive discretionary business 10 assistance funds for the same or similar activities as allowed under subsection (q).”; 11 and 12 (2) in subsection (p), by adding at the end the following:

13 “(4) COORDINATION OF COMMERCIALIZATION ASSISTANCE.—Not later than 120 days 14 after the date of enactment of this paragraph, the Administrator shall modify the 15 policy directive issued pursuant to this subsection to clarify that a small business 16 concern receiving training through the Innovation Corps program with administrative 17 funds made available under subsection (mm) shall not receive discretionary business 18 assistance funds for the same or similar activities as allowed under subsection (q).”.

19TITLE VI—PARTICIPATION BY WOMEN AND 20MINORITIES

21SEC. 601. SBA COORDINATION ON INCREASING 22OUTREACH FOR WOMEN AND MINORITY-OWNED 23BUSINESSES. 24 Section 9(b) of the Small Business Act (15 U.S.C. 638(b)) is amended— 25 (1) in paragraph (8), by striking “and” at the end; 26 (2) in paragraph (9), by striking the period at the end and inserting “; and”; and 27 (3) by adding at the end the following: 28 “(10) to coordinate with participating agencies on efforts to increase outreach and awards 29 under each of the SBIR and STTR programs to small business concerns owned and 30 controlled by women and socially and economically disadvantaged small business concerns, 31 as defined in section 8(a)(4).”.

32SEC. 602. FEDERAL AGENCY OUTREACH 33REQUIREMENTS FOR WOMEN AND MINORITY-OWNED 34BUSINESSES. 35 Section 9 of the Small Business Act (15 U.S.C. 638) is amended—

1 (1) in subsection (g)— 2 (A) in paragraph (11), by striking “and” at the end; 3 (B) in paragraph (12), by striking the period at the end and inserting “; and”; and 4 (C) by adding at the end the following: 5 “(13) implement an outreach program to small business concerns for the purpose of 6 enhancing its SBIR program, under which the Federal agency shall— 7 “(A) provide outreach to small business concerns owned and controlled by women 8 and socially and economically disadvantaged small business concerns, as defined in 9 section 8(a)(4); and 10 “(B) establish goals for outreach by the Federal agency to the small business 11 concerns described in subparagraph (A).”; and 12 (2) in subsection (o)(14), by striking “SBIR program;” and inserting “SBIR program, 13 under which the Federal agency shall— 14 “(A) provide outreach to small business concerns owned and controlled by women 15 and socially and economically disadvantaged small business concerns, as defined in 16 section 8(a)(4); and 17 “(B) establish goals for outreach by the Federal agency to the small business 18 concerns described in subparagraph (A).”.

19SEC. 603. STTR POLICY DIRECTIVE MODIFICATION. 20 Section 9(p) of the Small Business Act (15 U.S.C. 638(p)), as amended by section 505 of 21this Act, is amended by adding at the end the following:

22 “(4)“(5) ADDITIONAL MODIFICATIONS.—Not later than 120 days after the date of enactment 23 of this paragraph, the Administrator shall modify the policy directive issued pursuant to this 24 subsection to provide for enhanced outreach efforts to increase the participation of small 25 business concerns owned and controlled by women and socially and economically 26 disadvantaged small business concerns, as defined in section 8(a)(4), in technological 27 innovation and in STTR programs.”.

28SEC. 604. INTERAGENCY SBIR/STTR POLICY 29COMMITTEE. 30 Section 5124 of the SBIR/STTR Reauthorization Act of 2011 (Public Law 112–81; 125 Stat. 311837) is amended— 32 (1) by redesignating subsection (d) as subsection (e); and 33 (2) by inserting after subsection (c) the following: 34 “(d) Meetings.—

35 “(1) IN GENERAL.—The Interagency SBIR/STTR Policy Committee shall meet not less 36 than twice per year to carry out the duties under subsection (c).

37 “(2) OUTREACH AND TECHNICAL ASSISTANCE ACTIVITIES.—If the Interagency SBIR/STTR 3 25 45／4／2018 512:58 AM 1Senate Legislative Counsel 2CompareRite of O:\HEN\HEN16812.XML and O:\HEN\HEN16818.XML

1 Policy Committee meets to discuss outreach and technical assistance activities to increase 2 the participation of small business concerns that are underrepresented in the SBIR and 3 STTR programs, the Committee shall invite to the meeting— 4 “(A) a representative of the Minority Business Development Agency; and 5 “(B) relevant stakeholders that work to advance the interests of— 6 “(i) small business concerns owned and controlled by women, as defined in 7 section 3 of the Small Business Act (15 U.S.C. 632); and 8 “(ii) socially and economically disadvantaged small business concerns, as 9 defined in section 8(a)(4) of the Small Business Act (15 U.S.C. 637(a)(4)).”.

10SEC. 605. DIVERSITY AND STEM WORKFORCE 11DEVELOPMENT PILOT PROGRAM. 12 (a) Definitions.—In this section— 13 (1) the term “Administrator” means the Administrator of the Small Business 14 Administration; 15 (2) the term “covered STEM intern” means a student at, or recent graduate from, an 16 institution of higher education serving as an intern— 17 (A) whose course of study studied is focused on the STEM fields; and 18 (B) who is a woman or a person from an underrepresented population in the STEM 19 fields; 20 (3) the term “eligible entity” means a small business concern that— 21 (A) is receiving amounts under an award under the SBIR program or the STTR 22 program of a Federal agency on the date on which the Federal agency awards a grant to 23 the small business concern under subsection (b); and 24 (B) provides internships for covered STEM interns; 25 (4) the terms “Federal agency”, “SBIR”, and “STTR” have the meanings given those 26 terms under section 9(e) of the Small Business Act (15 U.S.C. 638(e)); 27 (5) the term “institution of higher education” has the meaning given the term under 28 section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)); 29 (6) the term “person from an underrepresented population in the STEM fields” means a 30 person from a group that is underrepresented in the population of STEM students, as 31 determined by the Administrator; 32 (7) the term “pilot program” means the Diversity and STEM Workforce Development 33 Pilot Program established under subsection (b); 34 (8) the term “recent graduate”, relating to a woman or a person from an underrepresented 35 population in the STEM fields, means that the woman or person from an underrepresented 36 population in the STEM fields earned an associate degree, baccalaureate degree, or 37 postbaccalaureate from an institution of higher education during the 1-year period 38 beginning on the date of the internship; 3 26 45／4／2018 512:58 AM 1Senate Legislative Counsel 2CompareRite of O:\HEN\HEN16812.XML and O:\HEN\HEN16818.XML

1 (9) the term “small business concern” has the meaning given the term under section 3 of 2 the Small Business Act (15 U.S.C. 632); and 3 (10) the term “STEM fields” means the fields of science, technology, engineering, and 4 math. 5 (b) Pilot Program for Internships for Women and People From Underrepresented Populations. 6—The Administrator shall establish a Diversity and STEM Workforce Development Pilot 7Program to encourage the business community to provide workforce development opportunities 8for covered STEM interns, under which a Federal agency participating in the SBIR program or 9STTR program may make a grant to 1 or more eligible entities for the costs of internships for 10covered STEM interns. 11 (c) Amount and Use of Grants.—

12 (1) AMOUNT.—A grant under subsection (b)— 13 (A) may not be in an amount of more than $15,000 per fiscal year; and 14 (B) shall be in addition to the amount of the award to the recipient under the SBIR 15 program or the STTR program.

16 (2) USE.—Not less than 90 percent of the amount of a grant under subsection (b) shall be 17 used by the eligible entity to provide stipends or other similar payments to interns. 18 (d) Evaluation.—Not later than January 31 of the first calendar year after the third fiscal year 19during which the Administrator carries out the pilot program, the Administrator shall submit to 20Congress— 21 (1) data on the results of the pilot program, such as the number and demographics of the 22 covered STEM interns participating in an internship funded under the pilot program and the 23 amount spent on such internships; and 24 (2) an assessment of whether the pilot program helped the SBIR program and STTR 25 program achieve the congressional objective of fostering and encouraging the participation 26 of women and persons from underrepresented populations in the STEM fields. 27 (e) Termination.—The pilot program shall terminate after the end of the fourth fiscal year 28during which the Administrator carries out the pilot program. 29 (f) Authorization of Appropriations.—There are authorized to be appropriated such sums as 30may be necessary to carry out the pilot program.

31TITLE VII—TECHNICAL CHANGES

32SEC. 701. UNIFORM REFERENCE TO THE DEPARTMENT 33OF HEALTH AND HUMAN SERVICES. 34 Section 9 of the Small Business Act (15 U.S.C. 638) is amended— 35 (1) in subsection (cc), by striking “National Institutes of Health” and inserting 36 “Department of Health and Human Services”; and 37 (2) in subsection (dd)(1)(A), by striking “Director of the National Institutes of Health” 38 and inserting “Secretary of Health and Human Services”. 3 27 45／4／2018 512:58 AM 1Senate Legislative Counsel 2CompareRite of O:\HEN\HEN16812.XML and O:\HEN\HEN16818.XML

1SEC. 702. FLEXIBILITY FOR PHASE II AWARD 2INVITATIONS. 3 Section 9(e)(4)(B) of the Small Business Act (15 U.S.C. 638(e)(4)(B)) is amended in the 4matter preceding clause (i)— 5 (1) by striking “, which shall not include any invitation, pre-screening, or pre-selection 6 process for eligibility for Phase II,”; and 7 (2) by inserting “in which eligibility for an award shall not be based only on an invitation, 8 pre-screening, or pre-selection process and” before “in which awards”.

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