A bill to provide for business incubator activities, and for other purposes.

Summary: Entrepreneurial Incubators Development Act of 2001 - Directs the Secretary of Commerce to provide financial assistance, through grants, for the establishment and support of entities that provide business incubator services (services necessary for the initiation and initial sustainment of operations of a newly established business, including legal, intellectual property, and technology services and planning) for small- and medium-sized businesses.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Entrepreneurial Incubators 
Development Act of 2001''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) While small businesses have been an engine of economic 
        growth over the past decade, they often lack access to the 
        technology available to larger businesses.
            (2) Business incubators have proven an effective source of 
        economic growth in the States.
            (3) Scientific discoveries need to be quickly converted 
        into job and community ventures.

SEC. 3. GRANTS FOR SUPPORT OF BUSINESS INCUBATOR ACTIVITIES.

    (a) Purpose.--It is the purpose of this section to encourage 
entrepreneurial creativity and risk taking through the support of the 
furnishing of business incubator services for newly established small 
businesses and medium-sized businesses.
    (b) Grant Program.--To achieve the purpose of this section, the 
Secretary of Commerce (in this section, referred to as the 
``Secretary'') shall carry out a program to provide, through grants, 
financial assistance for the establishment and support of entities that 
provide business incubator services in support of the initiation and 
initial sustainment of business activities by newly established small 
businesses and medium-sized businesses.
    (c) Awards of Grants.--
            (1) Eligibility requirements.--The Secretary shall 
        prescribe the eligibility requirements for the awarding of 
        grants under this section.
            (2) Competitive selection.--The Secretary shall use a 
        competitive process for the awarding of grants under this 
        section and, under that process, select recipients of the 
        grants on the basis of merit, with priority given to 
        underserved rural and urban communities.
            (3) Applications for grants.--The Secretary shall prescribe 
        the form and content of applications required for grants under 
        this section.
    (d) Additional Administrative Authorities.--
            (1) Cost-sharing.--The Secretary may require the recipient 
        of a grant under this section to defray a specific level of its 
        operating expenses for business incubator services out of funds 
        available from sources other than the Federal Government.
            (2) Additional terms and conditions.--The Secretary, in 
        awarding a grant, may impose any other terms and conditions for 
        the use of the proceeds of the grant that the Secretary 
        determines appropriate for carrying out the purpose of this 
        section and to protect the interests of the United States, 
        including the requirement that entities providing business 
        incubator services that receive a grant under this section 
        develop a plan for ultimately becoming self-sufficient.
    (e) Definitions.--
            (1) Business incubator services.--In this section, the term 
        ``business incubator services'' includes professional and 
        technical services necessary for the initiation and initial 
        sustainment of operations of a newly established business, 
        including such services as the following:
                    (A) Legal services.--Legal services, including aid 
                in preparing corporate charters, partnership 
                agreements, and basic contracts.
                    (B) Intellectual property services.--Services in 
                support of the protection of intellectual property 
                through patents, trademarks, or otherwise.
                    (C) Technology services.--Services in support of 
                the acquisition and use of advanced technology, 
                including the use of Internet services and web-based 
                services.
                    (D) Planning.--Advice on--
                            (i) strategic planning; and
                            (ii) marketing, including advertising.
            (2) Small business and medium-sized business.--
                    (A) Secretary to prescribe.--The Secretary shall 
                prescribe the definitions of the terms ``small 
                business'' and ``medium-sized business'' for the 
                purpose of this section.
                    (B) Small business standards.--In defining the term 
                ``small business'' for the purpose of this section, the 
                Secretary shall apply the standards applicable for the 
                definition of the term ``small-business concern'' under 
                section 3 of the Small Business Act (15 U.S.C. 632).
    (f) Regulations.--The Secretary shall prescribe regulations for the 
grant program administered under this section.
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated for the Department of Commerce for carrying out this 
section $50,000,000 for fiscal year 2002, and $200,000,000 for each 
fiscal year thereafter.