To direct the Secretary of Commerce to establish a technology deployment and early-stage business investment grant program, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Technology Deployment and Early-
Stage Business Investment Act of 2010''.

SEC. 2. TECHNOLOGY DEPLOYMENT AND EARLY-STAGE BUSINESS INVESTMENT GRANT 
              PROGRAM.

    (a) Establishment.--Not later than 60 days after the date of 
enactment of this Act, the Secretary of Commerce shall establish a 
technology deployment and early-stage business investment grant program 
(in this section referred to as the ``program'') to support the 
development of early-stage businesses in targeted industries.
    (b) Grant Authority.--
            (1) In general.--In carrying out the program, the Secretary 
        is authorized to make grants to covered business accelerators.
            (2) Grant amounts.--
                    (A) Non-federal capital limitation.--A grant made 
                to a covered business accelerator under the program may 
                not be in an amount that exceeds the amount of the 
                accelerator's capital that--
                            (i) is not from a Federal source; and
                            (ii) is available for investment and 
                        business assistance services on or before the 
                        date on which a grant is drawn upon.
                    (B) Aggregate amount limitation.--The aggregate 
                amount of all grants made to a covered business 
                accelerator under the program may not exceed 
                $5,000,000.
    (c) Grant Award Process.--In making a grant under the program, the 
Secretary shall commit a grant amount to a covered business accelerator 
and the amount of each such commitment shall remain available to be 
drawn upon by the accelerator during the 5-year period beginning on the 
date on which each such commitment is first drawn upon.
    (d) Use of Grant.--
            (1) In general.--A grant made under the program may be used 
        by a covered business accelerator for the following:
                    (A) Making an investment in an early-stage business 
                in a targeted industry.
                    (B) Providing training, counseling, and other 
                assistance to an early-stage business in a targeted 
                industry to support the development of the business.
                    (C) Making investments in and providing support to 
                an early-stage business in a targeted industry to 
                assist the business with proof of concept activities 
                that accelerate the deployment and commercialization of 
                technology.
                    (D) Providing purchased services to an early-stage 
                business in a targeted industry.
                    (E) Conducting due diligence activities.
                    (F) Meeting operational expenses.
            (2) Limitations.--
                    (A) Proof of concept activities.--Not more than 40 
                percent of the amount of a grant made to a covered 
                business accelerator under the program may be used by 
                the accelerator to provide assistance for proof of 
                concept activities.
                    (B) Purchased services.--Not more than 20 percent 
                of the amount of a grant made to a covered business 
                accelerator under the program may be used by the 
                accelerator to provide purchased services to an early-
                stage business in a targeted industry.
                    (C) Due diligence activities.--Not more than 10 
                percent of the amount of a grant made to a covered 
                business accelerator under the program may be used by 
                the accelerator to conduct due diligence activities.
                    (D) Operational expenses.--Not more than 20 percent 
                of the amount of a grant made to a covered business 
                accelerator under the program may be used by the 
                accelerator to meet operational expenses.
            (3) Designation of grant uses.--In the application of a 
        covered business accelerator for a grant under the program, the 
        accelerator shall notify the Secretary of the percentage of the 
        grant amount that will be used for each of the activities 
        described in subparagraphs (A) through (F) of paragraph (1) and 
        provide a detailed description of the activities to be 
        undertaken.
    (e) Grant Conditions.--
            (1) Fund manager.--As a condition of receiving a grant 
        under the program, a covered business accelerator shall 
        designate an individual as the fund manager for the grant 
        amount and that individual shall administer and be responsible 
        to the Secretary for information with respect to the grant 
        amounts received.
            (2) Investment review.--As a condition of receiving a grant 
        under the program, a covered business accelerator shall 
        establish an investment evaluation process that involves not 
        fewer than 5 individuals (3 of whom may not be employed by or 
        related to the accelerator or an affiliate of the accelerator) 
        who shall--
                    (A) review proposals for and advise the accelerator 
                on the use of grant funds;
                    (B) provide letters of support and reference to the 
                Secretary with respect to proposals for the use of 
                grant funds by the accelerator; and
                    (C) submit periodic reports to the Secretary on the 
                results of activities carried out with grant funds.
            (3) Collaborator.--As a condition of receiving a grant 
        under the program, a covered business accelerator shall assign 
        to each early-stage business in a targeted industry that is 
        assisted with grant amounts a collaborator that shall be an 
        individual or organization not otherwise employed by or related 
        to the accelerator or an affiliate of the accelerator and that 
        shall assist the accelerator in providing support to the 
        business.
    (f) Federal Share of Activities.--The Federal share of the cost of 
an activity carried out by a covered business accelerator with the 
assistance of a grant under the program shall not exceed 75 percent.
    (g) Monitoring and Evaluation.--
            (1) In general.--The Secretary shall assess the 
        effectiveness of covered business accelerators that receive a 
        grant under the program.
            (2) Data from accelerators.--Not later than one year after 
        the date of receiving a grant under the program, a covered 
        business accelerator shall provide to the Secretary information 
        on the activities of the accelerator and the businesses 
        assisted under the grant, including--
                    (A) the number of technologies that the businesses 
                have moved from proof of concept activities to 
                commercialization;
                    (B) the number of jobs created by the businesses;
                    (C) the amount of taxes paid by the businesses and 
                the employees of the businesses;
                    (D) the amount of private investment the businesses 
                have received; and
                    (E) other data that, as determined by the 
                Secretary, may be used to measure the value of 
                assistance under the program.
    (h) Authorization of Appropriations.--
            (1) In general.--There is authorized to be appropriated to 
        carry out the program--
                    (A) $250,000,000 for the first full fiscal year 
                beginning after the date of enactment of this Act; and
                    (B) such sums as may be necessary for subsequent 
                fiscal years.
            (2) Prohibition on earmarks.--None of the funds 
        appropriated for the program may be used for a congressional 
        earmark as defined in clause 9(e) of rule XXI of the Rules of 
        the House of Representatives.
    (i) Definitions.--In this Act, the following definitions apply:
            (1) Covered business accelerator.--The term ``covered 
        business accelerator'' means a public or private not-for-profit 
        organization, including an academic institution, that--
                    (A) operates a program providing assistance to 
                early-stage businesses in targeted industries to 
                support the development of those businesses, including 
                assistance with proof of concept activities to 
                accelerate the deployment and commercialization of 
                technology;
                    (B) has a physical location and on-site management 
                for the program described under subparagraph (A); and
                    (C) has procedures for selecting businesses for and 
                graduating businesses from the program described under 
                subparagraph (A).
            (2) Due diligence activities.--The term ``due diligence 
        activities'' means activities undertaken to analyze and assess 
        the desirability, value, and potential of an opportunity to 
        provide assistance to an early-stage business in a targeted 
        industry, including activities to analyze and assess the 
        technology deployment and market potential of the business.
            (3) Early-stage business in a targeted industry.--The term 
        ``early-stage business in a targeted industry'' means a small 
        business concern that--
                    (A) is domiciled in a State;
                    (B) has not generated gross annual revenues 
                exceeding $5,000,000 in any of the previous 3 years; 
                and
                    (C) is engaged primarily in researching, 
                developing, manufacturing, producing, or bringing to 
                market goods or services with respect to any of the 
                following business sectors:
                            (i) Agricultural technology.
                            (ii) Energy technology.
                            (iii) Environmental technology.
                            (iv) Life science technology.
                            (v) Biotechnology.
                            (vi) Information technology.
                            (vii) Digital media.
                            (viii) Clean technology.
                            (ix) Defense technology.
                            (x) Photonics technology.
                            (xi) Electronic technology.
                            (xii) Semiconductor technology.
                            (xiii) Material science technology.
                            (xiv) Aerospace.
                            (xv) Communications.
                            (xvi) Transportation.
            (4) Operational expenses.--The term ``operational 
        expenses'' means the costs of operating a covered business 
        accelerator, including overhead and management expenses.
            (5) Proof of concept activities.--The term ``proof of 
        concept activities'' means activities carried out to validate 
        and confirm the commercial viability of a technology, including 
        the generation of data, prototypes, and pilot trials with 
        respect to the technology.
            (6) Purchased services.--The term ``purchased services'' 
        means any training, counseling, or other assistance provided to 
        an early-stage business in a targeted industry that is provided 
        by a covered business accelerator through an agreement with 
        another entity, and not by the accelerator directly.
            (7) Secretary.--The terms ``Secretary'' and ``Secretary of 
        Commerce'' mean the Secretary of Commerce acting through the 
        Assistant Secretary of Commerce for Economic Development.
            (8) Small business concern.--The term ``small business 
        concern'' has the meaning given that term in section 3 of the 
        Small Business Act (15 U.S.C. 632).

Summary: Technology Deployment and Early-Stage Business Investment Act of 2010 - Directs the Secretary of Commerce to establish a technology deployment and early-stage business investment grant program under which the Secretary makes grants to business accelerators to support the development of early-stage businesses in specified industries. Limits grants to $5 million per accelerator. Requires the Secretary to monitor and evaluate the effectiveness of each accelerator under the program.