To reauthorize the Small Business Innovation Research (SBIR) Program and the Small Business Technology Transfer (STTR) Program, and for other purposes.

Summary: Science and Technology Innovation Act of 2008 - Amends the Small Business Act to: (1) extend through FY2010 the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs; (2) increase SBIR and STTR set-asides and award levels; (3) prohibit a small business from being excluded from SBIR or STTR program participation due to being owned by more than one equity provider, as long as no single equity provider owns more than 49% of such business; (4) require agency database updates in order to support SBIR and STTR program evaluation and technology utilization; (5) establish an Interagency SBIR/STTR Policy Committee; (6) allow federal agencies to use up to 3% of their SBIR funds for the payment of administrative costs; (7) allow SBIR technical assistance to include the implementation of manufacturing processes and production strategies for utilization; (8) allow federal agencies participating in the SBIR program to enter into agreements with the technical extension or assistance programs of other federal agencies in order to provide small business technical assistance; and (9) increase expenditure limits for the provision of such technical assistance.

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Science and 
Technology Innovation Act of 2008''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                  TITLE I--REAUTHORIZATION OF PROGRAMS

Sec. 101. Extension of SBIR and STTR Programs.
               TITLE II--FEDERAL INNOVATIONS INVESTMENTS

Sec. 201. SBIR cap increase.
Sec. 202. STTR cap increase.
Sec. 203. Adjustments in SBIR and STTR award levels.
Sec. 204. Majority equity investment in SBIR and STTR firms.
                     TITLE III--UTILIZATION SUPPORT

Sec. 301. Agency databases to support program evaluation.
Sec. 302. Agency databases to support technology utilization.
Sec. 303. Interagency Policy Committee.
              TITLE IV--OUTREACH AND TECHNICAL ASSISTANCE

Sec. 401. Use of program funds for administrative costs.
Sec. 402. SBIR discretionary technical assistance.
                        TITLE V--IMPLEMENTATION

Sec. 501. Conforming amendments to the SBIR and STTR policy directives.
Sec. 502. National Research Council SBIR Study.

                  TITLE I--REAUTHORIZATION OF PROGRAMS

SEC. 101. EXTENSION OF SBIR AND STTR PROGRAMS.

    (a) SBIR Program.--Section 9(m) of the Small Business Act (15 
U.S.C. 638(m)) is amended by striking ``2008'' and inserting ``2010''.
    (b) STTR Program.--Section 9(n)(1)(A) of the Small Business Act (15 
U.S.C. 638(n)(1)(A)) is amended by striking ``2009'' and inserting 
``2010''.

               TITLE II--FEDERAL INNOVATIONS INVESTMENTS

SEC. 201. SBIR CAP INCREASE.

    Section 9(f)(1) of the Small Business Act (15 U.S.C. 638(f)(1)) is 
amended--
            (1) in subparagraph (B), by striking ``and'' at the end;
            (2) in subparagraph (C), by striking ``each fiscal year 
        thereafter,'' and inserting ``each of fiscal years 1997 through 
        2008; and''; and
            (3) by adding after subparagraph (C) the following new 
        subparagraph:
                    ``(D) not less than 3 percent in fiscal year 2009 
                and each fiscal year thereafter,''.

SEC. 202. STTR CAP INCREASE.

    Section 9(n)(1)(B) of the Small Business Act (15 U.S.C. 
638(n)(1)(B)) is amended--
            (1) in clause (i), by striking ``and'' at the end;
            (2) in clause (ii), by striking ``fiscal year 2004 and each 
        fiscal year thereafter.'' and inserting ``each of fiscal years 
        2004 through 2008; and''; and
            (3) by adding after clause (ii) the following new clause:
                            ``(iii) 0.6 percent for fiscal year 2009 
                        and each fiscal year thereafter.''.

SEC. 203. ADJUSTMENTS IN SBIR AND STTR AWARD LEVELS.

    (a) SBIR Adjustments.--Section 9(j)(2)(D) of the Small Business Act 
(15 U.S.C. 638(j)(2)(D)) is amended--
            (1) by striking ``$100,000'' and inserting ``$300,000''; 
        and
            (2) by striking ``$750,000'' and inserting ``$2,200,000''.
    (b) STTR Adjustments.--Section 9(p)(2)(B)(ix) of the Small Business 
Act (15 U.S.C. 638(p)(2)(B)(ix)) is amended--
            (1) by striking ``$100,000'' and inserting ``$300,000''; 
        and
            (2) by striking ``$750,000'' and inserting ``$2,200,000''.
    (c) Annual Adjustments.--Section 9 of the Small Business Act (15 
U.S.C. 638) is amended--
            (1) in subsection (j)(2)(D), by striking ``and an 
        adjustment of such amounts once every 5 years to reflect 
        economic adjustments and programmatic considerations'' and 
        inserting ``and a mandatory annual adjustment of such amounts 
        to reflect economic adjustments and programmatic 
        considerations''; and
            (2) in subsection (p)(2)(B)(ix), by striking ``greater or 
        lesser amounts'' and inserting ``with a mandatory annual 
        adjustment of such amounts to reflect economic adjustments and 
        programmatic considerations, and with lesser amounts''.
    (d) Limitation on Certain Awards.--Section 9 of the Small Business 
Act (15 U.S.C. 638) is amended by adding at the end the following:
    ``(z) Limitation on Phase I and II Awards.--No Federal agency shall 
issue an award under the SBIR program or the STTR program if the size 
of the award exceeds the amounts established under subsections 
(j)(2)(D) and (p)(2)(B)(ix).
    ``(aa) Subsequent Phases.--
            ``(1) In general.--A small business concern which received 
        an award from a Federal agency under this section shall be 
        eligible to receive an award for a subsequent phase from 
        another Federal agency, if the head of each relevant Federal 
        agency makes a written determination that the topics of the 
        relevant awards are the same.
            ``(2) Crossover between programs.--A small business concern 
        which received an award under this section under the SBIR 
        program or the STTR program may, at the discretion of the 
        granting agency, receive an award under this section for a 
        subsequent phase in either the SBIR program or the STTR 
        program.
            ``(3) Phase ii sbir applications.--An agency may permit an 
        applicant to apply directly for a Phase II award, as described 
        in subsection (e)(4)(B), without first completing a Phase I 
        award, as described in subsection (e)(4)(A), if the applicant 
        can demonstrate that project feasibility was achieved without 
        SBIR or other Federal funding.
            ``(4) Phase ii sttr applications.--An agency may permit an 
        applicant to submit proposals for Phase II awards, as described 
        in subsection (e)(6)(B), without first completing a Phase I 
        award, as described in subsection (e)(6)(A), if the applicant 
        can demonstrate it has accomplished Phase I through cooperative 
        research and development achieved without STTR or other Federal 
        funding.
    ``(bb) Waiver of Minimum Work Requirement.--A Federal agency making 
an SBIR or STTR award under this section may waive the minimum small 
business concern or research institution work requirements under 
subsection (e)(7) if the agency determines that to provide such waiver 
would be consistent with the purposes of this section and consistent 
with achieving the objectives of the award proposal.''.

SEC. 204. MAJORITY EQUITY INVESTMENT IN SBIR AND STTR FIRMS.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
this Act, is further amended by adding at the end the following:
    ``(cc) Majority Equity Investment in SBIR and STTR Firms.--
            ``(1) Qualification requirements.--No small business 
        concern shall be excluded from participation in the SBIR or 
        STTR program on the ground that such small business concern is 
        owned in majority part by more than 1 equity provider, except 
        that no single equity provider shall be permitted to own more 
        than 49 percent of such small business concern.
            ``(2) Definitions.--For purposes of this subsection--
                    ``(A) the term `equity provider' means a venture 
                capital operating company; and
                    ``(B) the term `venture capital operating company' 
                means a business concern that--
                            ``(i) is a venture capital operating 
                        company, as that term is defined in regulations 
                        promulgated by the Secretary of Labor under the 
                        Employee Retirement Income Security Act of 
                        1974;
                            ``(ii) is registered under the Investment 
                        Company Act of 1940 (15 U.S.C. 80a-51 et seq.); 
                        or
                            ``(iii) is an investment company, as 
                        defined in section 3(c)(14) of such Act (15 
                        U.S.C. 80a-3(c)(14)), which is not registered 
                        under such Act because it is beneficially owned 
                        by less than 100 persons.''.

                     TITLE III--UTILIZATION SUPPORT

SEC. 301. AGENCY DATABASES TO SUPPORT PROGRAM EVALUATION.

    Section 9(k) of the Small Business Act (15 U.S.C. 638(k)) is 
amended--
            (1) in paragraph (2)(A)--
                    (A) by striking ``and'' at the end of clause (ii);
                    (B) by inserting ``and'' at the end of clause 
                (iii); and
                    (C) by adding at the end the following new clause:
                            ``(iv) information on the ownership 
                        structure of award recipients, both at the time 
                        of receipt of the award and upon completion of 
                        the award period;'';
            (2) by amending paragraph (3) to read as follows:
            ``(3) Updating information for database.--
                    ``(A) In general.--A Federal agency shall not make 
                a Phase I or Phase II payment to a small business 
                concern under this section unless the small business 
                concern has provided all information required under 
                this subsection with respect to the award under which 
                the payment is made, and with respect to any other 
                award under this section previously received by the 
                small business concern or a predecessor in interest to 
                the small business concern.
                    ``(B) Apportionment.--In complying with this 
                paragraph, a small business concern may apportion sales 
                or additional investment information relating to more 
                than one second phase award among those awards, if it 
                notes the apportionment for each award.
                    ``(C) Annual updates upon termination.--A small 
                business concern receiving an award under this section 
                shall--
                            ``(i) in the case of a second phase award, 
                        update information in the databases required 
                        under paragraphs (2) and (6) concerning that 
                        award at the termination of the award period;
                            ``(ii) in the case of award recipients not 
                        described in clause (iii), be requested to 
                        voluntarily update such information annually 
                        thereafter for a period of 5 years; and
                            ``(iii) in the case of a small business 
                        concern applying for a subsequent first phase 
                        or second phase award, be required to update 
                        such information annually thereafter for a 
                        period of 5 years.''; and
            (3) by adding at the end the following new paragraph:
            ``(6) Agency program evaluation databases.--Each Federal 
        agency required to establish an SBIR or STTR program under this 
        section shall develop and maintain, for the purpose of 
        evaluating such programs, a database containing information 
        required to be contained in the database under paragraph (2). 
        Each such database shall be designed to be accessible to other 
        agencies that are required to maintain a database under this 
        paragraph.''.

SEC. 302. AGENCY DATABASES TO SUPPORT TECHNOLOGY UTILIZATION.

    Section 9(k) of the Small Business Act (15 U.S.C. 638(k)), as 
amended by this Act, is further amended by adding at the end the 
following new paragraph:
            ``(7) Agency databases to support technology utilization.--
        Each Federal agency with an SBIR or STTR program shall create 
        and maintain a technology utilization database, which shall be 
        available to the public and shall contain data supplied by the 
        award recipients specifically to help them attract customers 
        for the products and services generated under the SBIR or STTR 
        project, and to attract additional investors and business 
        partners. Each database created under this paragraph shall 
        include information on the other databases created under this 
        paragraph by other Federal agencies. Participation in a 
        database under this paragraph shall be voluntary, except that 
        such participation is required of all award recipients who 
        received supplemental payments from SBIR and STTR program funds 
        above their initial Phase II award.''.

SEC. 303. INTERAGENCY POLICY COMMITTEE.

    (a) Establishment.--The Director of the Office of Science and 
Technology Policy shall establish an Interagency SBIR/STTR Policy 
Committee comprised of one representative from each Federal agency with 
an SBIR program.
    (b) Cochairs.--The Director of the Office of Science and Technology 
Policy and the Director of the National Institute of Standards and 
Technology shall jointly chair the Interagency Policy Committee.
    (c) Duties.--The Interagency Policy Committee shall review the 
following issues and make policy recommendations on ways to improve 
program effectiveness and efficiency:
            (1) The public and government databases described in 
        section 9(k)(1) and (2) of the Small Business Act (15 U.S.C. 
        638(k)(1) and (2)).
            (2) Federal agency flexibility in establishing Phase I and 
        II award sizes, and appropriate criteria to exercise such 
        flexibility.
            (3) Commercialization assistance best practices in Federal 
        agencies with significant potential to be employed by other 
        agencies, and the appropriate steps to achieve that leverage, 
        as well as proposals for new initiatives to address funding 
        gaps business concerns face after Phase II but before 
        commercialization.
    (d) Reports.--The Interagency Policy Committee shall transmit to 
the Committee on Science and Technology and the Committee on Small 
Business of the House of Representatives, and to the Committee on Small 
Business and Entrepreneurship of the Senate--
            (1) a report its review and recommendations under 
        subsection (c)(1) not later than 1 year after the date of 
        enactment of this Act;
            (2) a report its review and recommendations under 
        subsection (c)(2) not later than 18 months after the date of 
        enactment of this Act; and
            (3) a report its review and recommendations under 
        subsection (c)(3) not later than 2 years after the date of 
        enactment of this Act.

              TITLE IV--OUTREACH AND TECHNICAL ASSISTANCE

SEC. 401. USE OF PROGRAM FUNDS FOR ADMINISTRATIVE COSTS.

    Section 9 of the Small Business Act (15 U.S.C. 638) is amended--
            (1) in subsection (f)(2)(A), by striking ``any'' and 
        inserting ``more than 3.0 percent''; and
            (2) in subsection (n)(2)(A), by striking ``any'' and 
        inserting ``more than 3.0 percent''.

SEC. 402. SBIR DISCRETIONARY TECHNICAL ASSISTANCE.

    Section 9(q) of the Small Business Act (15 U.S.C. 638(q)) is 
amended--
            (1) in paragraph (1)--
                    (A) by striking ``paragraph (2)'' and inserting 
                ``paragraph (2)(A), or another Federal agency under 
                paragraph (2)(B),'';
                    (B) by striking ``and'' at the end of subparagraph 
                (C);
                    (C) by striking the period at the end of 
                subparagraph (D) and inserting ``; and''; and
                    (D) by adding at the end the following new 
                subparagraph:
                    ``(E) implementing manufacturing processes and 
                production strategies for utilization.'';
            (2) by amending paragraph (2) to read as follows:
            ``(2) Assistance providers.--
                    ``(A) Vendor selection.--Each agency may select a 
                vendor to assist small business concerns to meet the 
                goals listed in paragraph (1) for a term not to exceed 
                3 years. Such selection shall be competitive and shall 
                utilize merit-based criteria.
                    ``(B) Interagency collaboration.--In addition, each 
                agency may enter into a collaborative agreement with 
                the technical extension or assistance programs of other 
                Federal agencies in order to provide the assistance 
                described in paragraph (1).''; and
            (3) in paragraph (3)--
                    (A) in subparagraph (A), by striking ``$4,000'' and 
                inserting ``$5,000''; and
                    (B) by amending subparagraph (B) to read as 
                follows:
                    ``(B) Second phase.--Each agency referred to in 
                paragraph (1) may provide directly, or authorize any 
                second phase SBIR award recipient to purchase with 
                funds available from their SBIR awards, services 
                described in paragraph (1), in an amount equal to not 
                more than $8,000 per year, per award.''.

                        TITLE V--IMPLEMENTATION

SEC. 501. CONFORMING AMENDMENTS TO THE SBIR AND STTR POLICY DIRECTIVES.

    Not later than 180 days after the date of enactment of this Act, 
the Administrator of the Small Business Administration shall promulgate 
amendments to the SBIR and the STTR Policy Directives to conform such 
directives to this Act and the amendments made by this Act.

SEC. 502. NATIONAL RESEARCH COUNCIL SBIR STUDY.

    Section 108(d) of the Small Business Reauthorization Act of 2000 is 
amended--
            (1) by striking ``of the Senate'' and all that follows 
        through ``not later than 3'' and inserting ``of the Senate, not 
        later than 3''; and
            (2) by striking ``; and'' and all that follows through 
        ``update of such report''.