TRANSFER Act of 2013

Summary: Technology and Research Accelerating National Security and Future Economic Resiliency Act of 2013 or the TRANSFER Act of 2013 - Amends the Small Business Act to replace provisions requiring the Director of the National Institutes of Health to use funds for a Proof of Concept Partnership pilot program to accelerate the creation of small businesses and the commercialization of research innovations made by certain institutions with provisions directing each federal agency required to establish a small business technology transfer (STTR) program to carry out an Innovative Approaches to Technology Transfer Grant Program to support innovative approaches to technology transfer at institutions of higher education, nonprofit research institutions, and federal laboratories in order to accelerate the commercialization of federally funded research and technology by small businesses.  Outlines activities eligible for funding, application requirements, and award procedures and amounts. Requires successful grant proposals to include a plan to assemble a program oversight board to establish award programs for individual projects and evaluate project applications. Provides the percentage of each agency's extramural budget to be expended on such Program for FY2014-FY2017. Directs each agency to: (1) develop a Program evaluation plan and collect information from grantees annually to evaluate the Program, and (2) submit a Program activities report to specified congressional committees. Requires the Administrator of the Small Business Administration (SBA) to include information on the Program on the public database of small businesses participating in STTR or Small Business Innovation Research programs.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Technology and Research Accelerating 
National Security and Future Economic Resiliency Act of 2013'' or the 
``TRANSFER Act of 2013''.

SEC. 2. INNOVATIVE APPROACHES TO TECHNOLOGY TRANSFER.

    Section 9(jj) of the Small Business Act (15 U.S.C. 638(jj)) is 
amended to read as follows:
    ``(jj) Innovative Approaches to Technology Transfer.--
            ``(1) Grant program.--
                    ``(A) In general.--Each Federal agency required by 
                subsection (n) to establish an STTR program shall carry 
                out a grant program to support innovative approaches to 
                technology transfer at institutions of higher education 
                (as defined in section 101(a) of the Higher Education 
                Act of 1965 (20 U.S.C. 1001(a)), nonprofit research 
                institutions and Federal laboratories in order to 
                accelerate the commercialization of federally funded 
                research and technology by small business concerns, 
                including new businesses.
                    ``(B) Awarding of grants and awards.--
                            ``(i) In general.--Each Federal agency 
                        required by subparagraph (A) to participate in 
                        this program, shall award, through a 
                        competitive, merit-based process, grants, in 
                        the amounts listed in subparagraph (C) to 
                        institutions of higher education, technology 
                        transfer organizations that facilitate the 
                        commercialization of technologies developed by 
                        one or more such institutions of higher 
                        education, Federal laboratories, other public 
                        and private nonprofit entities, and consortia 
                        thereof, for initiatives that help identify 
                        high-quality, commercially viable federally 
                        funded research and technologies and to 
                        facilitate and accelerate their transfer into 
                        the marketplace.
                            ``(ii) Use of funds.--Activities supported 
                        by grants under this subsection may include--
                                    ``(I) providing early-stage proof 
                                of concept funding for translational 
                                research;
                                    ``(II) identifying research and 
                                technologies at recipient institutions 
                                that have the potential for accelerated 
                                commercialization;
                                    ``(III) technology maturation 
                                funding to support activities such as 
                                prototype construction, experiment 
                                analysis, product comparison, and 
                                collecting performance data;
                                    ``(IV) technical validations, 
                                market research, clarifying 
                                intellectual property rights position 
                                and strategy, and investigating 
                                commercial and business opportunities; 
                                and
                                    ``(V) programs to provide advice, 
                                mentoring, entrepreneurial education, 
                                project management, and technology and 
                                business development expertise to 
                                innovators and recipients of technology 
                                transfer licenses to maximize 
                                commercialization potential.
                            ``(iii) Selection process and 
                        applications.--Qualifying institutions seeking 
                        a grant under this subsection shall submit an 
                        application to a Federal agency required by 
                        subparagraph (A) to participate in this program 
                        at such time, in such manner, and containing 
                        such information as the agency may require. The 
                        application shall include, at a minimum--
                                    ``(I) a description of innovative 
                                approaches to technology transfer, 
                                technology development, and commercial 
                                readiness that have the potential to 
                                increase or accelerate technology 
                                transfer outcomes and can be adopted by 
                                other qualifying institutions, or a 
                                demonstration of proven technology 
                                transfer and commercialization 
                                strategies, or a plan to implement 
                                proven technology transfer and 
                                commercialization strategies, that can 
                                achieve greater commercialization of 
                                federally funded research and 
                                technologies with program funding;
                                    ``(II) a description of how the 
                                qualifying institution will contribute 
                                to local and regional economic 
                                development efforts; and
                                    ``(III) a plan for sustainability 
                                beyond the duration of the funding 
                                award.
                            ``(iv) Program oversight boards.--
                                    ``(I) In general.--Successful 
                                proposals shall include a plan to 
                                assemble a Program Oversight Board, the 
                                members of which shall have technical, 
                                scientific, or business expertise and 
                                shall be drawn from industry, start-up 
                                companies, venture capital, technical 
                                enterprises, financial institutions, 
                                and business development organizations.
                                    ``(II) Program oversight boards 
                                responsibilities.--Program Oversight 
                                Boards shall--
                                            ``(aa) establish award 
                                        programs for individual 
                                        projects;
                                            ``(bb) provide rigorous 
                                        evaluation of project 
                                        applications;
                                            ``(cc) determine which 
                                        projects should receive awards, 
                                        in accordance with guidelines 
                                        established under subparagraph 
                                        (C)(ii);
                                            ``(dd) establish milestones 
                                        and associated award amounts 
                                        for projects that reach 
                                        milestones;
                                            ``(ee) determine whether 
                                        awarded projects are reaching 
                                        milestones; and
                                            ``(ff) develop a process to 
                                        reallocate outstanding award 
                                        amounts from projects that are 
                                        not reaching milestones to 
                                        other projects with more 
                                        potential.
                    ``(C) Grant and award amounts.--
                            ``(i) Grant amounts.--Each Federal agency 
                        required by subparagraph (A) to carry out a 
                        grant program may make grants to a qualifying 
                        institution for up to $1,000,000 per year for 
                        up to 3 years.
                            ``(ii) Award amounts.--Each qualifying 
                        institution that receives a grant under 
                        subparagraph (B) shall provide awards for 
                        individual projects of not more than $150,000, 
                        to be provided in phased amounts, based on 
                        reaching the milestones established by the 
                        qualifying institution's Program Oversight 
                        Board.
                    ``(D) Authorized expenditures for innovative 
                approaches to technology transfer grant program.--
                            ``(i) Percentage.--The percentage of the 
                        extramural budget each Federal agency required 
                        by subsection (n) to establish an STTR program 
                        shall expend on the Innovative Approaches to 
                        Technology Transfer Grant Program shall be--
                                    ``(I) 0.05 percent for each of 
                                fiscal years 2014 and 2015; and
                                    ``(II) 0.1 percent for each of 
                                fiscal years 2016 and 2017.
                            ``(ii) Treatment of expenditures.--Any 
                        portion of the extramural budget expended by a 
                        Federal agency on the Innovative Approaches to 
                        Technology Transfer Grant Program shall apply 
                        towards the agency's expenditure requirements 
                        under subsection (n).
            ``(2) Program evaluation and data collection and 
        dissemination.--
                    ``(A) Evaluation plan and data collection.--Each 
                Federal agency required by paragraph (1)(A) to 
                establish an Innovative Approaches to Technology 
                Transfer Grant Program shall develop a program 
                evaluation plan and collect annually such information 
                from grantees as is necessary to assess the Program. 
                Program evaluation plans shall require the collection 
                of data aimed at identifying outcomes resulting from 
                the transfer of technology with assistance from the 
                Innovative Approaches to Technology Transfer Grant 
                Program, such as--
                            ``(i) specific follow-on funding identified 
                        or obtained, including follow-on funding 
                        sources, such as Federal sources or private 
                        sources;
                            ``(ii) number of projects which result in a 
                        license to a start-up company or an established 
                        company with sufficient resources for effective 
                        commercialization within 5 years of receiving 
                        an award under paragraph (1);
                            ``(iii) invention disclosures and patents;
                            ``(iv) number of projects supported by 
                        qualifying institutions receiving a grant under 
                        paragraph (1) that secure Phase I or Phase II 
                        SBIR or STTR awards;
                            ``(v) available information on revenue, 
                        sales or other measures of products that have 
                        been commercialized as a result of projects 
                        awarded under paragraph (1);
                            ``(vi) number and location of jobs created 
                        resulting from projects awarded under paragraph 
                        (1); and
                            ``(vii) other data as deemed appropriate by 
                        a Federal agency required by this subparagraph 
                        to develop a program evaluation plan.
                    ``(B) Evaluative report to congress.--The head of 
                each Federal agency that participates in the Innovative 
                Approaches to Technology Transfer Grant Program shall 
                submit to the Committee on Science, Space, and 
                Technology and the Committee on Small Business of the 
                House of Representatives and the Committee on Small 
                Business and Entrepreneurship of the Senate an 
                evaluative report regarding the activities of the 
                program. The report shall include--
                            ``(i) a detailed description of the 
                        implementation of the program;
                            ``(ii) a detailed description of the 
                        grantee selection process;
                            ``(iii) an accounting of the funds used in 
                        the program; and
                            ``(iv) a summary of the data collected 
                        under subparagraph (A).
                    ``(C) Data dissemination.--For the purposes of 
                program transparency and dissemination of best 
                practices, the Administrator shall include on the 
                public database under subsection (k)(1) information on 
                the Innovative Approaches to Technology Transfer Grant 
                Program, including--
                            ``(i) the program evaluation plan required 
                        under subparagraph (A);
                            ``(ii) a list of recipients of awards under 
                        paragraph (1); and
                            ``(iii) information on the use of grants 
                        under paragraph (1) by recipient 
                        institutions.''.