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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1425 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 1425

 To reauthorize and improve the SBIR and STTR programs, and for other 
                               purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             April 7, 2011

 Mrs. Ellmers (for herself, Mr. Altmire, Mr. Quayle, Mr. Wu, Mr. Hall, 
  Ms. Eddie Bernice Johnson of Texas, Mr. Graves of Missouri, and Mr. 
  Richmond) introduced the following bill; which was referred to the 
  Committee on Science, Space, and Technology, and in addition to the 
  Committees on Small Business and Armed Services, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL

 
 To reauthorize and improve the SBIR and STTR programs, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Creating Jobs Through Small Business 
Innovation Act of 2011''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
         TITLE I--REAUTHORIZATION OF THE SBIR AND STTR PROGRAMS

Sec. 101. Extension of termination dates.
Sec. 102. SBIR and STTR award levels.
Sec. 103. Agency and program flexibility.
Sec. 104. Elimination of Phase II invitations.
Sec. 105. Phase flexibility.
Sec. 106. Participation by firms with substantial investment from 
                            multiple venture capital operating 
                            companies, hedge funds, or private equity 
                            firms in a portion of the SBIR program.
Sec. 107. Ensuring that innovative small businesses with substantial 
                            investment from venture capital operating 
                            companies, hedge funds, or private equity 
                            firms are able to participate in the SBIR 
                            and STTR programs.
Sec. 108. SBIR and STTR special acquisition preference.
Sec. 109. Collaborating with Federal laboratories and research and 
                            development centers.
Sec. 110. Notice requirement.
Sec. 111. Additional SBIR and STTR Awards.
          TITLE II--OUTREACH AND COMMERCIALIZATION INITIATIVES

Sec. 201. Technical assistance for awardees.
Sec. 202. Commercialization Readiness Program at Department of Defense.
Sec. 203. Commercialization Readiness Pilot Program for civilian 
                            agencies.
Sec. 204. Interagency Policy Committee.
Sec. 205. Clarifying the definition of ``Phase III''.
Sec. 206. Shortened period for final decisions on proposals and 
                            applications.
                  TITLE III--OVERSIGHT AND EVALUATION

Sec. 301. Streamlining annual evaluation requirements.
Sec. 302. Data collection from agencies for SBIR.
Sec. 303. Data collection from agencies for STTR.
Sec. 304. Public database.
Sec. 305. Government database.
Sec. 306. Accuracy in funding base calculations.
Sec. 307. Continued evaluation by the National Academy of Sciences.
Sec. 308. Technology insertion reporting requirements.
Sec. 309. Obtaining consent from SBIR and STTR applicants to release 
                            contact information to economic development 
                            organizations.
Sec. 310. Pilot to allow funding for administrative, oversight, and 
                            contract processing costs.
Sec. 311. GAO study with respect to venture capital operating company, 
                            hedge fund, and private equity firm 
                            involvement.
Sec. 312. Reducing vulnerability of SBIR and STTR programs to fraud, 
                            waste, and abuse.
Sec. 313. Simplified paperwork requirements.
                      TITLE IV--POLICY DIRECTIVES

Sec. 401. Conforming amendments to the SBIR and the STTR Policy 
                            Directives.
                       TITLE V--OTHER PROVISIONS

Sec. 501. Report on SBIR and STTR program goals.
Sec. 502. Competitive selection procedures for SBIR and STTR programs.
Sec. 503. Loan Restrictions.

SEC. 3. DEFINITIONS.

    In this Act--
            (1) the terms ``Administration'' and ``Administrator'' mean 
        the Small Business Administration and the Administrator 
        thereof, respectively;
            (2) the terms ``extramural budget'', ``Federal agency'', 
        ``Small Business Innovation Research Program'', ``SBIR'', 
        ``Small Business Technology Transfer Program'', and ``STTR'' 
        have the meanings given such terms in section 9 of the Small 
        Business Act (15 U.S.C. 638); and
            (3) the term ``small business concern'' has the meaning 
        given that term under section 3 of the Small Business Act (15 
        U.S.C. 632).

         TITLE I--REAUTHORIZATION OF THE SBIR AND STTR PROGRAMS

SEC. 101. EXTENSION OF TERMINATION DATES.

    (a) SBIR.--Section 9(m) of the Small Business Act (15 U.S.C. 
638(m)) is amended--
            (1) by striking ``Termination.--'' and all that follows 
        through ``the authorization'' and inserting ``Termination.--The 
        authorization'';
            (2) by striking ``2008'' and inserting ``2014''; and
            (3) by striking paragraph (2).
    (b) STTR.--Section 9(n)(1)(A) of the Small Business Act (15 U.S.C. 
638(n)(1)(A)) is amended--
            (1) by striking ``In general.--'' and all that follows 
        through ``with respect'' and inserting ``In general.--With 
        respect'';
            (2) by striking ``2009'' and inserting ``2014''; and
            (3) by striking clause (ii).

SEC. 102. 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 ``$150,000''; 
        and
            (2) by striking ``$750,000'' and inserting ``$1,000,000''.
    (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 ``$150,000''; 
        and
            (2) by striking ``$750,000'' and inserting ``$1,000,000''.
    (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 ``once every 5 
        years to reflect economic adjustments and programmatic 
        considerations'' and inserting ``every year for inflation''; 
        and
            (2) in subsection (p)(2)(B)(ix), as amended by subsection 
        (b) of this section, by inserting ``(each of which the 
        Administrator shall adjust for inflation annually)'' after 
        ``$1,000,000,''.
    (d) Limitation on Size of Awards.--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:
    ``(aa) Limitation on Size of Awards.--
            ``(1) Limitation.--No Federal agency may issue an award 
        under the SBIR program or the STTR program if the size of the 
        award exceeds the award guidelines established under this 
        section by more than 50 percent.
            ``(2) Maintenance of information.--Participating agencies 
        shall maintain information on awards exceeding the guidelines 
        established under this section, including--
                    ``(A) the amount of each award;
                    ``(B) a justification for exceeding the award 
                amount;
                    ``(C) the identity and location of each award 
                recipient; and
                    ``(D) whether an award recipient has received any 
                venture capital, hedge fund, or private equity firm 
                investment and, if so, whether the recipient is 
                majority-owned by multiple venture capital operating 
                companies, hedge funds, or private equity firms.
            ``(3) Reports.--The Administrator shall include the 
        information described in paragraph (2) in the annual report of 
        the Administrator to Congress.
            ``(4) Rule of construction.--Nothing in this subsection 
        shall be construed to prevent a Federal agency from 
        supplementing an award under the SBIR program or the STTR 
        program using funds of the Federal agency that are not part of 
        the SBIR program or the STTR program of the Federal agency.''.

SEC. 103. AGENCY AND PROGRAM FLEXIBILITY.

    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:
    ``(bb) Subsequent Phase II Awards.--
            ``(1) Agency flexibility.--A small business concern that 
        received a Phase I award from a Federal agency under this 
        section shall be eligible to receive a subsequent Phase II 
        award from another Federal agency, if the head of each relevant 
        Federal agency or the relevant component of the Federal agency 
        makes a written determination that the topics of the relevant 
        awards are the same and both agencies report the awards to the 
        Administrator for inclusion in the public database under 
        subsection (k).
            ``(2) SBIR and sttr program flexibility.--A small business 
        concern that received a Phase I award under this section under 
        the SBIR program or the STTR program may receive a subsequent 
        Phase II award in either the SBIR program or the STTR program 
        and the participating agency or agencies shall report the 
        awards to the Administrator for inclusion in the public 
        database under subsection (k).''.

SEC. 104. ELIMINATION OF PHASE II INVITATIONS.

    Section 9(e) of the Small Business Act (15 U.S.C. 638(e)) is 
amended--
            (1) in paragraph (4)(B), by striking ``to further'' and 
        inserting ``which shall not include any invitation, pre-
        screening, pre-selection, or down-selection process for 
        eligibility for Phase II, that will further''; and
            (2) in paragraph (6)(B), by striking ``to further develop 
        proposed ideas to'' and inserting ``which shall not include any 
        invitation, pre-screening, pre-selection, or down-selection 
        process for eligibility for Phase II, that will further develop 
        proposals that''.

SEC. 105. PHASE FLEXIBILITY.

    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) Phase I Required.--Under this section, a Federal agency 
shall provide to a small business concern an award under Phase II of an 
SBIR program with respect to a project only if such agency finds that 
the small business concern has been provided an award under Phase I of 
an SBIR program with respect to such project or has completed the 
determinations described in subsection (e)(4)(A) with respect to such 
project despite not having been provided a Phase I award.''.

SEC. 106. PARTICIPATION BY FIRMS WITH SUBSTANTIAL INVESTMENT FROM 
              MULTIPLE VENTURE CAPITAL OPERATING COMPANIES, HEDGE 
              FUNDS, OR PRIVATE EQUITY FIRMS IN A PORTION OF THE SBIR 
              PROGRAM.

    (a) In General.--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:
    ``(dd) Participation of Small Business Concerns Majority-Owned by 
Venture Capital Operating Companies, Hedge Funds, or Private Equity 
Firms in the SBIR Program.--
            ``(1) Authority.--Upon a written determination described in 
        paragraph (2) provided to the Administrator, the Committee on 
        Small Business and Entrepreneurship of the Senate, and the 
        Committee on Small Business and the Committee on Science, 
        Space, and Technology of the House of Representatives not later 
        than 30 days before the date on which an award is made--
                    ``(A) the Director of the National Institutes of 
                Health, the Secretary of Energy, and the Director of 
                the National Science Foundation may award not more than 
                45 percent of the funds allocated for the SBIR program 
                of the Federal agency to small business concerns that 
                are owned in majority part by multiple venture capital 
                operating companies, hedge funds, or private equity 
                firms through competitive, merit-based procedures that 
                are open to all eligible small business concerns; and
                    ``(B) the head of a Federal agency other than a 
                Federal agency described in subparagraph (A) that 
                participates in the SBIR program may award not more 
                than 35 percent of the funds allocated for the SBIR 
                program of the Federal agency to small business 
                concerns that are owned in majority part by multiple 
                venture capital operating companies, hedge funds, or 
                private equity firms through competitive, merit-based 
                procedures that are open to all eligible small business 
                concerns.
            ``(2) Determination.--A written determination described in 
        this paragraph is a written determination by the head of a 
        Federal agency that explains how the use of the authority under 
        paragraph (1) will--
                    ``(A) induce additional venture capital, hedge 
                fund, or private equity firm funding of small business 
                innovations;
                    ``(B) substantially contribute to the mission of 
                the Federal agency;
                    ``(C) demonstrate a need for public research; and
                    ``(D) otherwise fulfill the capital needs of small 
                business concerns for additional financing for the SBIR 
                project.
            ``(3) Registration.--A small business concern that is 
        majority-owned by multiple venture capital operating companies, 
        hedge funds, or private equity firms and qualified for 
        participation in the program authorized under paragraph (1) 
        shall--
                    ``(A) register with the Administrator on the date 
                that the small business concern submits an application 
                for an award under the SBIR program; and
                    ``(B) indicate in any SBIR proposal that the small 
                business concern is registered under subparagraph (A) 
                as majority-owned by multiple venture capital operating 
                companies, hedge funds, or private equity firms.
            ``(4) Compliance.--
                    ``(A) In general.--The head of a Federal agency 
                that makes an award under this subsection during a 
                fiscal year shall collect and submit to the 
                Administrator data relating to the number and dollar 
                amount of Phase I awards, Phase II awards, and any 
                other category of awards by the Federal agency under 
                the SBIR program during that fiscal year.
                    ``(B) Annual reporting.--The Administrator shall 
                include as part of each annual report by the 
                Administration under subsection (b)(7) any data 
                submitted under subparagraph (A) and a discussion of 
                the compliance of each Federal agency that makes an 
                award under this subsection during the fiscal year with 
                the maximum percentages under paragraph (1).
            ``(5) Enforcement.--If a Federal agency awards more than 
        the percent of the funds allocated for the SBIR program of the 
        Federal agency authorized under paragraph (1) for a purpose 
        described in paragraph (1), the head of the Federal agency 
        shall transfer an amount equal to the amount awarded in excess 
        of the amount authorized under paragraph (1) to the funds for 
        general SBIR programs from the non-SBIR and non-STTR research 
        and development funds of the Federal agency not later than 180 
        days after the date on which the Federal agency made the award 
        that caused the total awarded under paragraph (1) to be more 
        than the amount authorized under paragraph (1) for a purpose 
        described in paragraph (1).
            ``(6) Final decisions on applications under the sbir 
        program.--
                    ``(A) Definition.--In this paragraph, the term 
                `covered small business concern' means a small business 
                concern that--
                            ``(i) was not majority-owned by multiple 
                        venture capital operating companies, hedge 
                        funds, or private equity firms on the date on 
                        which the small business concern submitted an 
                        application in response to a solicitation under 
                        the SBIR programs; and
                            ``(ii) on the date of the award under the 
                        SBIR program is majority-owned by multiple 
                        venture capital operating companies, hedge 
                        funds, or private equity firms.
                    ``(B) In general.--If a Federal agency does not 
                make an award under a solicitation under the SBIR 
                program before the date that is 9 months after the date 
                on which the period for submitting applications under 
                the solicitation ends--
                            ``(i) a covered small business concern is 
                        eligible to receive the award, without regard 
                        to whether the covered small business concern 
                        meets the requirements for receiving an award 
                        under the SBIR program for a small business 
                        concern that is majority-owned by multiple 
                        venture capital operating companies, hedge 
                        funds, or private equity firms, if the covered 
                        small business concern meets all other 
                        requirements for such an award; and
                            ``(ii) the head of the Federal agency shall 
                        transfer an amount equal to any amount awarded 
                        to a covered small business concern under the 
                        solicitation to the funds for general SBIR 
                        programs from the non-SBIR and non-STTR 
                        research and development funds of the Federal 
                        agency, not later than 90 days after the date 
                        on which the Federal agency makes the award.
            ``(7) Evaluation criteria.--A Federal agency may not use 
        investment of venture capital or investment from hedge funds or 
        private equity firms as a criterion for the award of contracts 
        under the SBIR program or STTR program.''.
    (b) Technical and Conforming Amendment.--Section 3 of the Small 
Business Act (15 U.S.C. 632) is amended by adding at the end the 
following:
    ``(aa) Venture Capital Operating Company.--In this Act, the term 
`venture capital operating company' means an entity described in clause 
(i), (v), or (vi) of section 121.103(b)(5) of title 13, Code of Federal 
Regulations (or any successor thereto).
    ``(bb) Hedge Fund.--In this Act, the term `hedge fund' has the 
meaning given that term in section 13(h)(2) of the Bank Holding Company 
Act of 1956 (12 U.S.C. 1851(h)(2)).
    ``(cc) Private Equity Firm.--In this Act, the term `private equity 
firm' has the meaning given the term `private equity fund' in section 
13(h)(2) of the Bank Holding Company Act of 1956 (12 U.S.C. 
1851(h)(2)).''.

SEC. 107. ENSURING THAT INNOVATIVE SMALL BUSINESSES WITH SUBSTANTIAL 
              INVESTMENT FROM VENTURE CAPITAL OPERATING COMPANIES, 
              HEDGE FUNDS, OR PRIVATE EQUITY FIRMS ARE ABLE TO 
              PARTICIPATE IN THE SBIR AND STTR PROGRAMS.

    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:
    ``(ee) Venture Capital Operating Companies, Hedge Funds, and 
Private Equity Firms.--Effective only for the SBIR and STTR programs 
the following shall apply:
            ``(1) A business concern that has more than 500 employees 
        shall not qualify as a small business concern.
            ``(2) In determining whether a small business concern is 
        independently owned and operated under section 3(a)(1) or meets 
        the small business size standards instituted under section 
        3(a)(2), the Administrator shall not consider a business 
        concern to be affiliated with a venture capital operating 
        company, hedge fund, or private equity firm (or with any other 
        business that the venture capital operating company, hedge 
        fund, or private equity firm has financed) if--
                    ``(A) the venture capital operating company, hedge 
                fund, or private equity firm does not own 50 percent or 
                more of the business concern; and
                    ``(B) employees of the venture capital operating 
                company, hedge fund, or private equity firm do not 
                constitute a majority of the board of directors of the 
                business concern.
            ``(3) A business concern shall be deemed to be 
        `independently owned and operated' if--
                    ``(A) it is owned in majority part by one or more 
                natural persons or venture capital operating companies, 
                hedge funds, or private equity firms;
                    ``(B) there is no single venture capital operating 
                company, hedge fund, or private equity firm that owns 
                50 percent or more of the business concern; and
                    ``(C) there is no single venture capital operating 
                company, hedge fund, or private equity firm the 
                employees of which constitute a majority of the board 
                of directors of the business concern.
            ``(4) If a venture capital operating company, hedge fund, 
        or private equity firm controlled by a business with more than 
        500 employees (in this paragraph referred to as a `VCOC, hedge 
        fund, or private equity firm under large business control') has 
        an ownership interest in a small business concern that is owned 
        in majority part by venture capital operating companies, hedge 
        funds, or private equity firms, the small business concern is 
        eligible to receive an award under the SBIR or STTR program 
        only if--
                    ``(A) not more than two VCOCs, hedge funds, or 
                private equity firms under large business control have 
                an ownership interest in the small business concern; 
                and
                    ``(B) the VCOCs, hedge funds, or private equity 
                firms under large business control do not collectively 
                own more than 20 percent of the small business 
                concern.''.

SEC. 108. SBIR AND STTR SPECIAL ACQUISITION PREFERENCE.

    Section 9(r) of the Small Business Act (15 U.S.C. 638(r)) is 
amended by adding at the end the following:
            ``(4) Phase iii awards.--To the greatest extent 
        practicable, Federal agencies and Federal prime contractors 
        shall issue Phase III awards relating to technology, including 
        sole source awards, to the SBIR and STTR award recipients that 
        developed the technology.''.

SEC. 109. COLLABORATING WITH FEDERAL LABORATORIES AND RESEARCH AND 
              DEVELOPMENT CENTERS.

    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:
    ``(ff) Collaborating With Federal Laboratories and Research and 
Development Centers.--
            ``(1) Authorization.--Subject to the limitations under this 
        section, the head of each participating Federal agency may make 
        SBIR and STTR awards to any eligible small business concern 
        that--
                    ``(A) intends to enter into an agreement with a 
                Federal laboratory or federally funded research and 
                development center for portions of the activities to be 
                performed under that award; or
                    ``(B) has entered into a cooperative research and 
                development agreement (as defined in section 12(d) of 
                the Stevenson-Wydler Technology Innovation Act of 1980 
                (15 U.S.C. 3710a(d))) with a Federal laboratory.
            ``(2) Prohibition.--No Federal agency shall--
                    ``(A) condition an SBIR or STTR award upon entering 
                into agreement with any Federal laboratory or any 
                federally funded laboratory or research and development 
                center for any portion of the activities to be 
                performed under that award;
                    ``(B) approve an agreement between a small business 
                concern receiving a SBIR or STTR award and a Federal 
                laboratory or federally funded laboratory or research 
                and development center, if the small business concern 
                performs a lesser portion of the activities to be 
                performed under that award than required by this 
                section and by the SBIR Policy Directive and the STTR 
                Policy Directive of the Administrator; or
                    ``(C) approve an agreement that violates any 
                provision, including any data rights protections 
                provision, of this section or the SBIR and the STTR 
                Policy Directives.
            ``(3) Implementation.--Not later than 180 days after the 
        date of enactment of this subsection, the Administrator shall 
        modify the SBIR Policy Directive and the STTR Policy Directive 
        issued under this section to ensure that small business 
        concerns--
                    ``(A) have the flexibility to use the resources of 
                the Federal laboratories and federally funded research 
                and development centers; and
                    ``(B) are not mandated to enter into agreement with 
                any Federal laboratory or any federally funded 
                laboratory or research and development center as a 
                condition of an award.''.

SEC. 110. NOTICE REQUIREMENT.

    (a) SBIR Program.--Section 9(g) of the Small Business Act (15 
U.S.C. 638(g)) is amended--
            (1) in paragraph (10), by striking ``and'' at the end;
            (2) in paragraph (11), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(12) provide timely notice to the Administrator of any 
        case or controversy before any Federal judicial or 
        administrative tribunal concerning the SBIR program of the 
        Federal agency.''.
    (b) STTR Program.--Section 9(o) of the Small Business Act (15 
U.S.C. 638(o)) is amended--
            (1) by striking paragraph (15);
            (2) in paragraph (16), by striking the period at the end 
        and inserting ``; and'';
            (3) by redesignating paragraph (16) as paragraph (15); and
            (4) by adding at the end the following:
            ``(16) provide timely notice to the Administrator of any 
        case or controversy before any Federal judicial or 
        administrative tribunal concerning the STTR program of the 
        Federal agency.''.

SEC. 111. ADDITIONAL SBIR AND STTR AWARDS.

    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:
    ``(gg) Additional SBIR and STTR Awards.--
            ``(1) Express authority for awarding a sequential phase ii 
        award.--A small business concern that receives a Phase II SBIR 
        award or a Phase II STTR award for a project remains eligible 
        to receive one additional Phase II SBIR award or Phase II STTR 
        award for continued work on that project.
            ``(2) Preventing duplicative awards.--The head of a Federal 
        agency shall verify that any activity to be performed with 
        respect to a project with a Phase I or Phase II SBIR or STTR 
        award has not been funded under the SBIR program or STTR 
        program of another Federal agency.''.

          TITLE II--OUTREACH AND COMMERCIALIZATION INITIATIVES

SEC. 201. TECHNICAL ASSISTANCE FOR AWARDEES.

    Section 9(q) of the Small Business Act (15 U.S.C. 638(q)) is 
amended--
            (1) in paragraph (1)--
                    (A) by inserting ``or STTR program'' after ``SBIR 
                program''; and
                    (B) by striking ``SBIR projects'' and inserting 
                ``SBIR or STTR projects'';
            (2) in paragraph (2), by striking ``3 years'' and inserting 
        ``5 years''; and
            (3) in paragraph (3)--
                    (A) in subparagraph (A)--
                            (i) by inserting ``or STTR'' after 
                        ``SBIR''; and
                            (ii) by striking ``$4,000'' and inserting 
                        ``$5,000'';
                    (B) by striking subparagraph (B) and inserting the 
                following:
                    ``(B) Phase ii.--A Federal agency described in 
                paragraph (1) may--
                            ``(i) provide to the recipient of a Phase 
                        II SBIR or STTR award, through a vendor 
                        selected under paragraph (2), the services 
                        described in paragraph (1), in an amount equal 
                        to not more than $5,000 per year; or
                            ``(ii) authorize the recipient of a Phase 
                        II SBIR or STTR award to purchase the services 
                        described in paragraph (1), in an amount equal 
                        to not more than $5,000 per year, which shall 
                        be in addition to the amount of the recipient's 
                        award.''; and
                    (C) by adding at the end the following:
                    ``(C) Flexibility.--In carrying out subparagraphs 
                (A) and (B), each Federal agency shall provide the 
                allowable amounts to a recipient that meets the 
                eligibility requirements under the applicable 
                subparagraph, if the recipient requests to seek 
                technical assistance from an individual or entity other 
                than the vendor selected under paragraph (2) by the 
                Federal agency.
                    ``(D) Limitation.--A Federal agency may not--
                            ``(i) use the amounts authorized under 
                        subparagraph (A) or (B) unless the vendor 
                        selected under paragraph (2) provides the 
                        technical assistance to the recipient; or
                            ``(ii) enter a contract with a vendor under 
                        paragraph (2) under which the amount provided 
                        for technical assistance is based on total 
                        number of Phase I or Phase II awards.''.

SEC. 202. COMMERCIALIZATION READINESS PROGRAM AT DEPARTMENT OF DEFENSE.

    (a) In General.--Section 9(y) of the Small Business Act (15 U.S.C. 
638(y)) is amended--
            (1) in the subsection heading, by striking ``Pilot'' and 
        inserting ``Readiness'';
            (2) by striking ``Pilot'' each place that term appears and 
        inserting ``Readiness'';
            (3) in paragraph (1)--
                    (A) by inserting ``or Small Business Technology 
                Transfer Program'' after ``Small Business Innovation 
                Research Program''; and
                    (B) by adding at the end the following: ``The 
                authority to create and administer a Commercialization 
                Readiness Program under this subsection may not be 
                construed to eliminate or replace any other SBIR 
                program or STTR program that enhances the insertion or 
                transition of SBIR or STTR technologies, including any 
                such program in effect on the date of enactment of the 
                National Defense Authorization Act for Fiscal Year 2006 
                (Public Law 109-163; 119 Stat. 3136).'';
            (4) in paragraph (2), by inserting ``or Small Business 
        Technology Transfer Program'' after ``Small Business Innovation 
        Research Program'';
            (5) by striking paragraphs (5) and (6); and
            (6) by inserting after paragraph (4) the following:
            ``(5) Insertion incentives.--For any contract with a value 
        of not less than $100,000,000, the Secretary of Defense is 
        authorized to--
                    ``(A) establish goals for the transition of Phase 
                III technologies in subcontracting plans; and
                    ``(B) require a prime contractor on such a contract 
                to report the number and dollar amount of contracts 
                entered into by that prime contractor for Phase III 
                SBIR or STTR projects.
            ``(6) Goal for sbir and sttr technology insertion.--The 
        Secretary of Defense shall--
                    ``(A) set a goal to increase the number of Phase II 
                SBIR contracts and the number of Phase II STTR 
                contracts awarded by that Secretary that lead to 
                technology transition into programs of record or 
                fielded systems;
                    ``(B) use incentives in effect on the date of 
                enactment of the Creating Jobs Through Small Business 
                Innovation Act of 2011, or create new incentives, to 
                encourage agency program managers and prime contractors 
                to meet the goal under subparagraph (A); and
                    ``(C) include in the annual report to Congress the 
                percentage of contracts described in subparagraph (A) 
                awarded by that Secretary, and information on the 
                ongoing status of projects funded through the 
                Commercialization Readiness Program and efforts to 
                transition these technologies into programs of record 
                or fielded systems.''.
    (b) Technical and Conforming Amendment.--Section 9(i)(1) of the 
Small Business Act (15 U.S.C. 638(i)(1)) is amended by inserting 
``(including awards under subsection (y))'' after ``the number of 
awards''.

SEC. 203. COMMERCIALIZATION READINESS PILOT PROGRAM FOR CIVILIAN 
              AGENCIES.

    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:
    ``(hh) Pilot Program.--
            ``(1) Authorization.--The head of each covered Federal 
        agency may allocate not more than 10 percent of the funds 
        allocated to the SBIR program and the STTR program of the 
        covered Federal agency--
                    ``(A) for awards for technology development, 
                testing, evaluation, and commercialization assistance 
                for SBIR and STTR Phase II technologies; or
                    ``(B) to support the progress of research, research 
                and development, and commercialization conducted under 
                the SBIR or STTR programs to Phase III.
            ``(2) Application by federal agency.--
                    ``(A) In general.--A covered Federal agency may not 
                establish a pilot program unless the covered Federal 
                agency makes a written application to the 
                Administrator, not later than 90 days before the first 
                day of the fiscal year in which the pilot program is to 
                be established, that describes a compelling reason that 
                additional investment in SBIR or STTR technologies is 
                necessary, including unusually high regulatory, systems 
                integration, or other costs relating to development or 
                manufacturing of identifiable, highly promising small 
                business technologies or a class of such technologies 
                expected to substantially advance the mission of the 
                agency.
                    ``(B) Determination.--The Administrator shall--
                            ``(i) make a determination regarding an 
                        application submitted under subparagraph (A) 
                        not later than 30 days before the first day of 
                        the fiscal year for which the application is 
                        submitted;
                            ``(ii) publish the determination in the 
                        Federal Register; and
                            ``(iii) make a copy of the determination 
                        and any related materials available to the 
                        Committee on Small Business and 
                        Entrepreneurship of the Senate and the 
                        Committee on Small Business and the Committee 
                        on Science, Space, and Technology of the House 
                        of Representatives.
            ``(3) Maximum amount of award.--The head of a covered 
        Federal agency may not make an award under a pilot program in 
        excess of 3 times the dollar amounts generally established for 
        Phase II awards under subsection (j)(2)(D) or (p)(2)(B)(ix).
            ``(4) Registration.--Any applicant that receives an award 
        under a pilot program shall register with the Administrator in 
        a registry that is available to the public.
            ``(5) Report.--The head of each covered Federal agency 
        shall include in the annual report of the covered Federal 
        agency to the Administrator an analysis of the various 
        activities considered for inclusion in the pilot program of the 
        covered Federal agency and a statement of the reasons why each 
        activity considered was included or not included, as the case 
        may be.
            ``(6) Termination.--The authority to establish a pilot 
        program under this section expires at the end of fiscal year 
        2014.
            ``(7) Definitions.--In this subsection--
                    ``(A) the term `covered Federal agency'--
                            ``(i) means a Federal agency participating 
                        in the SBIR program or the STTR program; and
                            ``(ii) does not include the Department of 
                        Defense; and
                    ``(B) the term `pilot program' means the program 
                established under paragraph (1).''.

SEC. 204. INTERAGENCY POLICY COMMITTEE.

    (a) Establishment.--The Director of the Office of Science and 
Technology Policy shall establish an Interagency SBIR/STTR Policy 
Committee.
    (b) Duties.--The Interagency SBIR/STTR 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) of the Small Business Act (15 U.S.C. 638(k)).
            (2) Federal agency flexibility in establishing Phase I and 
        II award sizes, including appropriate criteria for exercising 
        such flexibility.
            (3) Commercialization assistance best practices of 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 that business concerns face after Phase II but before 
        commercialization.
            (4) Developing and incorporating a standard evaluation 
        framework to enable systematic assessment of SBIR and STTR, 
        including through improved tracking of awards and outcomes and 
        development of performance measures for the SBIR program and 
        STTR program of each Federal agency.
    (c) Reports.--The Interagency SBIR/STTR Policy Committee shall 
transmit to the Committee on Science, Space, 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 on its review and recommendations under 
        subsection (b)(1) not later than 1 year after the date of 
        enactment of this Act;
            (2) a report on its review and recommendations under 
        subsection (b)(2) not later than 18 months after the date of 
        enactment of this Act;
            (3) a report on its review and recommendations under 
        subsection (b)(3) not later than 2 years after the date of 
        enactment of this Act; and
            (4) a report on its review and recommendations under 
        subsection (b)(4) not later than 2 years after the date of 
        enactment of this Act.

SEC. 205. CLARIFYING THE DEFINITION OF ``PHASE III''.

    (a) Phase III Awards.--Section 9(e) of the Small Business Act (15 
U.S.C. 638(e)), as amended by this Act, is further amended--
            (1) in paragraph (4)(C), in the matter preceding clause 
        (i), by inserting ``for work that derives from, extends, or 
        completes efforts made under prior funding agreements under the 
        SBIR program'' after ``phase'';
            (2) in paragraph (6)(C), in the matter preceding clause 
        (i), by inserting ``for work that derives from, extends, or 
        completes efforts made under prior funding agreements under the 
        STTR program'' after ``phase'';
            (3) in paragraph (8), by striking ``and'' at the end;
            (4) in paragraph (9), by striking the period at the end and 
        inserting a semicolon; and
            (5) by adding at the end the following:
            ``(10) the term `commercialization' means--
                    ``(A) the process of developing products, 
                processes, technologies, or services; and
                    ``(B) the production and delivery of products, 
                processes, technologies, or services for sale (whether 
                by the originating party or by others) to or use by the 
                Federal Government or commercial markets;''.
    (b) Technical and Conforming Amendments.--Section 9 of the Small 
Business Act (15 U.S.C. 638), as amended by this Act, is further 
amended--
            (1) in subsection (e)--
                    (A) in paragraph (4)(C)(ii), by striking 
                ``scientific review criteria'' and inserting ``merit-
                based selection procedures'';
                    (B) in paragraph (9), by striking ``the second or 
                the third phase'' and inserting ``Phase II or Phase 
                III''; and
                    (C) by adding at the end the following:
            ``(11) the term `Phase I' means--
                    ``(A) with respect to the SBIR program, the first 
                phase described in paragraph (4)(A); and
                    ``(B) with respect to the STTR program, the first 
                phase described in paragraph (6)(A);
            ``(12) the term `Phase II' means--
                    ``(A) with respect to the SBIR program, the second 
                phase described in paragraph (4)(B); and
                    ``(B) with respect to the STTR program, the second 
                phase described in paragraph (6)(B); and
            ``(13) the term `Phase III' means--
                    ``(A) with respect to the SBIR program, the third 
                phase described in paragraph (4)(C); and
                    ``(B) with respect to the STTR program, the third 
                phase described in paragraph (6)(C).'';
            (2) in subsection (j)--
                    (A) in paragraph (1)(B), by striking ``phase two'' 
                and inserting ``Phase II'';
                    (B) in paragraph (2)--
                            (i) in subparagraph (B)--
                                    (I) by striking ``the third phase'' 
                                each place it appears and inserting 
                                ``Phase III''; and
                                    (II) by striking ``the second 
                                phase'' and inserting ``Phase II'';
                            (ii) in subparagraph (D)--
                                    (I) by striking ``the first phase'' 
                                and inserting ``Phase I''; and
                                    (II) by striking ``the second 
                                phase'' and inserting ``Phase II'';
                            (iii) in subparagraph (F), by striking 
                        ``the third phase'' and inserting ``Phase 
                        III'';
                            (iv) in subparagraph (G)--
                                    (I) by striking ``the first phase'' 
                                and inserting ``Phase I''; and
                                    (II) by striking ``the second 
                                phase'' and inserting ``Phase II''; and
                            (v) in subparagraph (H)--
                                    (I) by striking ``the first phase'' 
                                and inserting ``Phase I'';
                                    (II) by striking ``second phase'' 
                                each place it appears and inserting 
                                ``Phase II''; and
                                    (III) by striking ``third phase'' 
                                and inserting ``Phase III''; and
                    (C) in paragraph (3)--
                            (i) in subparagraph (A)--
                                    (I) by striking ``the first phase 
                                (as described in subsection 
                                (e)(4)(A))'' and inserting ``Phase I'';
                                    (II) by striking ``the second phase 
                                (as described in subsection 
                                (e)(4)(B))'' and inserting ``Phase 
                                II''; and
                                    (III) by striking ``the third phase 
                                (as described in subsection 
                                (e)(4)(C))'' and inserting ``Phase 
                                III''; and
                            (ii) in subparagraph (B), by striking 
                        ``second phase'' and inserting ``Phase II'';
            (3) in subsection (k)--
                    (A) by striking ``first phase'' each place it 
                appears and inserting ``Phase I''; and
                    (B) by striking ``second phase'' each place it 
                appears and inserting ``Phase II'';
            (4) in subsection (l)(2)--
                    (A) by striking ``the first phase'' and inserting 
                ``Phase I''; and
                    (B) by striking ``the second phase'' and inserting 
                ``Phase II'';
            (5) in subsection (o)(13)--
                    (A) in subparagraph (B), by striking ``second 
                phase'' and inserting ``Phase II''; and
                    (B) in subparagraph (C), by striking ``third 
                phase'' and inserting ``Phase III'';
            (6) in subsection (p)--
                    (A) in paragraph (2)(B)--
                            (i) in clause (vi)--
                                    (I) by striking ``the second 
                                phase'' and inserting ``Phase II''; and
                                    (II) by striking ``the third 
                                phase'' and inserting ``Phase III''; 
                                and
                            (ii) in clause (ix)--
                                    (I) by striking ``the first phase'' 
                                and inserting ``Phase I''; and
                                    (II) by striking ``the second 
                                phase'' and inserting ``Phase II''; and
                    (B) in paragraph (3)--
                            (i) by striking ``the first phase (as 
                        described in subsection (e)(6)(A))'' and 
                        inserting ``Phase I'';
                            (ii) by striking ``the second phase (as 
                        described in subsection (e)(6)(B))'' and 
                        inserting ``Phase II''; and
                            (iii) by striking ``the third phase (as 
                        described in subsection (e)(6)(C))'' and 
                        inserting ``Phase III'';
            (7) in subsection (q)(3)(A)--
                    (A) in the subparagraph heading, by striking 
                ``First phase'' and inserting ``Phase i''; and
                    (B) by striking ``first phase'' and inserting 
                ``Phase I'';
            (8) in subsection (r)--
                    (A) in the subsection heading, by striking ``Third 
                Phase'' and inserting ``Phase III'';
                    (B) in paragraph (1)--
                            (i) in the first sentence--
                                    (I) by striking ``for the second 
                                phase'' and inserting ``for Phase II'';
                                    (II) by striking ``third phase'' 
                                and inserting ``Phase III''; and
                                    (III) by striking ``second phase 
                                period'' and inserting ``Phase II 
                                period''; and
                            (ii) in the second sentence--
                                    (I) by striking ``second phase'' 
                                and inserting ``Phase II''; and
                                    (II) by striking ``third phase'' 
                                and inserting ``Phase III''; and
                    (C) in paragraph (2), by striking ``third phase'' 
                and inserting ``Phase III''; and
            (9) in subsection (u)(2)(B), by striking ``the first 
        phase'' and inserting ``Phase I''.

SEC. 206. SHORTENED PERIOD FOR FINAL DECISIONS ON PROPOSALS AND 
              APPLICATIONS.

    (a) In General.--Section 9 of the Small Business Act (15 U.S.C. 
638), as amended by this Act, is further amended--
            (1) in subsection (g)(4)--
                    (A) by inserting ``(A)'' after ``(4)'';
                    (B) by adding ``and'' after the semicolon at the 
                end; and
                    (C) by adding at the end the following:
            ``(B) make a final decision on each proposal submitted 
        under the SBIR program--
                    ``(i) not later than 90 days after the date on 
                which the solicitation closes; or
                    ``(ii) if the Administrator authorizes an extension 
                for a solicitation, not later than 180 days after the 
                date on which the solicitation closes;''; and
            (2) in subsection (o)(4)--
                    (A) by inserting ``(A)'' after ``(4)'';
                    (B) by adding ``and'' after the semicolon at the 
                end; and
                    (C) by adding at the end the following:
            ``(B) make a final decision on each proposal submitted 
        under the STTR program--
                    ``(i) not later than 90 days after the date on 
                which the solicitation closes; or
                    ``(ii) if the Administrator authorizes an extension 
                for a solicitation, not later than 180 days after the 
                date on which the solicitation closes;''.
    (b) NIH Peer Review Process.--
            (1) In general.--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:
    ``(ii) NIH Peer Review Process.--The Director of the National 
Institutes of Health may make an award under the SBIR program or the 
STTR program of the National Institutes of Health only if the 
application for the award has undergone technical and scientific peer 
review under section 492 of the Public Health Service Act (42 U.S.C. 
289a).''.
            (2) Technical and conforming amendments.--Section 105 of 
        the National Institutes of Health Reform Act of 2006 (42 U.S.C. 
        284n) is amended--
                    (A) in subsection (a)(3)--
                            (i) by striking ``A grant'' and inserting 
                        ``Except as provided in section 9(ii) of the 
                        Small Business Act (15 U.S.C. 638(ii)), a 
                        grant''; and
                            (ii) by striking ``section 402(k)'' and all 
                        that follows through ``Act)'' and inserting 
                        ``section 402(l) of such Act''; and
                    (B) in subsection (b)(5)--
                            (i) by striking ``A grant'' and inserting 
                        ``Except as provided in section 9(ii) of the 
                        Small Business Act (15 U.S.C. 638(ii)), a 
                        grant''; and
                            (ii) by striking ``section 402(k)'' and all 
                        that follows through ``Act)'' and inserting 
                        ``section 402(l) of such Act''.

                  TITLE III--OVERSIGHT AND EVALUATION

SEC. 301. STREAMLINING ANNUAL EVALUATION REQUIREMENTS.

    Section 9(b) of the Small Business Act (15 U.S.C. 638(b)) is 
amended--
            (1) in paragraph (7)--
                    (A) by striking ``STTR programs, including the 
                data'' and inserting the following: ``STTR programs, 
                including--
                    ``(A) the data'';
                    (B) by striking ``(g)(10), (o)(9), and (o)(15), the 
                number'' and all that follows through ``under each of 
                the SBIR and STTR programs, and a description'' and 
                inserting the following: ``(g)(8) and (o)(9); and
                    ``(B) the number of proposals received from, and 
                the number and total amount of awards to, HUBZone small 
                business concerns and firms with venture capital, hedge 
                fund, or private equity firm investment (including 
                those majority-owned by multiple venture capital 
                operating companies, hedge funds, or private equity 
                firms) under each of the SBIR and STTR programs;
                    ``(C) a description of the extent to which each 
                Federal agency is increasing outreach and awards to 
                firms owned and controlled by women and social or 
                economically disadvantaged individuals under each of 
                the SBIR and STTR programs;
                    ``(D) general information about the implementation 
                of, and compliance with the allocation of funds 
                required under, subsection (dd) for firms owned in 
                majority part by venture capital operating companies, 
                hedge funds, or private equity firms and participating 
                in the SBIR program;
                    ``(E) a detailed description of appeals of Phase 
                III awards and notices of noncompliance with the SBIR 
                Policy Directive and the STTR Policy Directive filed by 
                the Administrator with Federal agencies; and
                    ``(F) a description''; and
                    (C) by striking ``and'' at the end;
            (2) in paragraph (8), by striking the period at the end and 
        inserting ``; and''; and
            (3) by inserting after paragraph (8) the following:
            ``(9) to coordinate the implementation of electronic 
        databases at each of the Federal agencies participating in the 
        SBIR program or the STTR program, including the technical 
        ability of the participating agencies to electronically share 
        data.''.

SEC. 302. DATA COLLECTION FROM AGENCIES FOR SBIR.

    Section 9(g) of the Small Business Act (15 U.S.C. 638(g)), as 
amended by this Act, is further amended--
            (1) by striking paragraph (10);
            (2) by redesignating paragraphs (8) and (9) as paragraphs 
        (9) and (10), respectively; and
            (3) by inserting after paragraph (7) the following:
            ``(8) collect annually, and maintain in a common format in 
        accordance with the simplified reporting requirements under 
        subsection (v), such information from awardees as is necessary 
        to assess the SBIR program, including information necessary to 
        maintain the database described in subsection (k), including--
                    ``(A) whether an awardee--
                            ``(i) has venture capital, hedge fund, or 
                        private equity firm investment or is majority-
                        owned by multiple venture capital operating 
                        companies, hedge funds, or private equity 
                        firms, and, if so--
                                    ``(I) the amount of venture 
                                capital, hedge fund, or private equity 
                                firm investment that the awardee has 
                                received as of the date of the award; 
                                and
                                    ``(II) the amount of additional 
                                capital that the awardee has invested 
                                in the SBIR technology;
                            ``(ii) has an investor that--
                                    ``(I) is an individual who is not a 
                                citizen of the United States or a 
                                lawful permanent resident of the United 
                                States, and if so, the name of any such 
                                individual; or
                                    ``(II) is a person that is not an 
                                individual and is not organized under 
                                the laws of a State or the United 
                                States, and if so the name of any such 
                                person;
                            ``(iii) is owned by a woman or has a woman 
                        as a principal investigator;
                            ``(iv) is owned by a socially or 
                        economically disadvantaged individual or has a 
                        socially or economically disadvantaged 
                        individual as a principal investigator;
                            ``(v) is a faculty member or a student of 
                        an institution of higher education, as that 
                        term is defined in section 101 of the Higher 
                        Education Act of 1965 (20 U.S.C. 1001); or
                            ``(vi) is located in a State described in 
                        subsection (u)(3); and
                    ``(B) a justification statement from the agency, if 
                an awardee receives an award in an amount that is more 
                than the award guidelines under this section;''.

SEC. 303. DATA COLLECTION FROM AGENCIES FOR STTR.

    Section 9(o) of the Small Business Act (15 U.S.C. 638(o)), as 
amended by this Act, is further amended by striking paragraph (9) and 
inserting the following:
            ``(9) collect annually, and maintain in a common format in 
        accordance with the simplified reporting requirements under 
        subsection (v), such information from applicants and awardees 
        as is necessary to assess the STTR program outputs and 
        outcomes, including information necessary to maintain the 
        database described in subsection (k), including--
                    ``(A) whether an applicant or awardee--
                            ``(i) has venture capital, hedge fund, or 
                        private equity firm investment or is majority-
                        owned by multiple venture capital operating 
                        companies, hedge funds, or private equity 
                        firms, and, if so--
                                    ``(I) the amount of venture 
                                capital, hedge fund, or private equity 
                                firm investment that the applicant or 
                                awardee has received as of the date of 
                                the application or award, as 
                                applicable; and
                                    ``(II) the amount of additional 
                                capital that the applicant or awardee 
                                has invested in the SBIR technology;
                            ``(ii) has an investor that--
                                    ``(I) is an individual who is not a 
                                citizen of the United States or a 
                                lawful permanent resident of the United 
                                States, and if so, the name of any such 
                                individual; or
                                    ``(II) is a person that is not an 
                                individual and is not organized under 
                                the laws of a State or the United 
                                States, and if so the name of any such 
                                person;
                            ``(iii) is owned by a woman or has a woman 
                        as a principal investigator;
                            ``(iv) is owned by a socially or 
                        economically disadvantaged individual or has a 
                        socially or economically disadvantaged 
                        individual as a principal investigator;
                            ``(v) is a faculty member or a student of 
                        an institution of higher education, as that 
                        term is defined in section 101 of the Higher 
                        Education Act of 1965 (20 U.S.C. 1001); or
                            ``(vi) is located in a State in which the 
                        total value of contracts awarded to small 
                        business concerns under all STTR programs is 
                        less than the total value of contracts awarded 
                        to small business concerns in a majority of 
                        other States, as determined by the 
                        Administrator in biennial fiscal years, 
                        beginning with fiscal year 2008, based on the 
                        most recent statistics compiled by the 
                        Administrator; and
                    ``(B) if an awardee receives an award in an amount 
                that is more than the award guidelines under this 
                section, a statement from the agency that justifies the 
                award amount;''.

SEC. 304. PUBLIC DATABASE.

    Section 9(k)(1) of the Small Business Act (15 U.S.C. 638(k)(1)) is 
amended--
            (1) in subparagraph (D), by striking ``and'' at the end;
            (2) in subparagraph (E), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(F) for each small business concern that has 
                received a Phase I or Phase II SBIR or STTR award from 
                a Federal agency, whether the small business concern--
                            ``(i) has venture capital, hedge fund, or 
                        private equity firm investment and, if so, 
                        whether the small business concern is 
                        registered as majority-owned by multiple 
                        venture capital operating companies, hedge 
                        funds, or private equity firms as required 
                        under subsection (dd)(3);
                            ``(ii) is owned by a woman or has a woman 
                        as a principal investigator;
                            ``(iii) is owned by a socially or 
                        economically disadvantaged individual or has a 
                        socially or economically disadvantaged 
                        individual as a principal investigator; or
                            ``(iv) is owned by a faculty member or a 
                        student of an institution of higher education, 
                        as that term is defined in section 101 of the 
                        Higher Education Act of 1965 (20 U.S.C. 
                        1001).''.

SEC. 305. GOVERNMENT DATABASE.

    Section 9(k) of the Small Business Act (15 U.S.C. 638(k)) is 
amended--
            (1) in paragraph (2)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``Not later'' and all that follows through 
                ``Act of 2000'' and inserting ``Not later than 90 days 
                after the date of enactment of the Creating Jobs 
                Through Small Business Innovation Act of 2011'';
                    (B) by striking subparagraph (C);
                    (C) by redesignating subparagraphs (A) and (B) as 
                subparagraphs (B) and (C), respectively;
                    (D) by inserting before subparagraph (B), as so 
                redesignated, the following:
                    ``(A) contains, for each small business concern 
                that applies for, submits a proposal for, or receives 
                an award under Phase I or Phase II of the SBIR program 
                or the STTR program--
                            ``(i) the name, size, and location, and an 
                        identifying number assigned by the 
                        Administration of the small business concern;
                            ``(ii) an abstract of the project;
                            ``(iii) the specific aims of the project;
                            ``(iv) the number of employees of the small 
                        business concern;
                            ``(v) the names of key individuals that 
                        will carry out the project;
                            ``(vi) the percentage of effort each 
                        individual described in clause (iv) will 
                        contribute to the project;
                            ``(vii) whether the small business concern 
                        is majority-owned by multiple venture capital 
                        operating companies, hedge funds, or private 
                        equity firms; and
                            ``(viii) the Federal agency to which the 
                        application is made, and contact information 
                        for the person or office within the Federal 
                        agency that is responsible for reviewing 
                        applications and making awards under the SBIR 
                        program or the STTR program;'';
                    (E) by redesignating subparagraphs (D) and (E) as 
                subparagraphs (E) and (F), respectively;
                    (F) by inserting after subparagraph (C), as so 
                redesignated, the following:
                    ``(D) includes, for each awardee--
                            ``(i) the name, size, location, and any 
                        identifying number assigned to the awardee by 
                        the Administrator;
                            ``(ii) whether the awardee has venture 
                        capital, hedge fund, or private equity firm 
                        investment, and, if so--
                                    ``(I) the amount of venture 
                                capital, hedge fund, or private equity 
                                firm investment as of the date of the 
                                award;
                                    ``(II) the percentage of ownership 
                                of the awardee held by a venture 
                                capital operating company, hedge fund, 
                                or private equity firm, including 
                                whether the awardee is majority-owned 
                                by multiple venture capital operating 
                                companies, hedge funds, or private 
                                equity firms; and
                                    ``(III) the amount of additional 
                                capital that the awardee has invested 
                                in the SBIR technology, which 
                                information shall be collected on an 
                                annual basis;
                            ``(iii) the names and locations of any 
                        affiliates of the awardee;
                            ``(iv) the number of employees of the 
                        awardee;
                            ``(v) the number of employees of the 
                        affiliates of the awardee; and
                            ``(vi) the names of, and the percentage of 
                        ownership of the awardee held by--
                                    ``(I) any individual who is not a 
                                citizen of the United States or a 
                                lawful permanent resident of the United 
                                States; or
                                    ``(II) any person that is not an 
                                individual and is not organized under 
                                the laws of a State or the United 
                                States;'';
                    (G) in subparagraph (E), as so redesignated, by 
                striking ``and'' at the end;
                    (H) in subparagraph (F), as so redesignated, by 
                striking the period at the end and inserting ``; and''; 
                and
                    (I) by adding at the end the following:
                    ``(G) includes a timely and accurate list of any 
                individual or small business concern that has 
                participated in the SBIR program or STTR program that 
                has committed fraud, waste, or abuse relating to the 
                SBIR program or STTR program.''; and
            (2) in paragraph (3), by adding at the end the following:
                    ``(C) Government database.--Not later than 60 days 
                after the date established by a Federal agency for 
                submitting applications or proposals for a Phase I or 
                Phase II award under the SBIR program or STTR program, 
                the head of the Federal agency shall submit to the 
                Administrator the data required under paragraph (2) 
                with respect to each small business concern that 
                applies or submits a proposal for the Phase I or Phase 
                II award.''.

SEC. 306. ACCURACY IN FUNDING BASE CALCULATIONS.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, and every year thereafter until the date that is 5 years 
after the date of enactment of this Act, the Comptroller General of the 
United States shall--
            (1) conduct a fiscal and management audit of the SBIR 
        program and the STTR program for the applicable period to--
                    (A) determine whether Federal agencies comply with 
                the expenditure amount requirements under subsections 
                (f)(1) and (n)(1) of section 9 of the Small Business 
                Act (15 U.S.C. 638), as amended by this Act;
                    (B) assess the extent of compliance with the 
                requirements of section 9(i)(2) of the Small Business 
                Act (15 U.S.C. 638(i)(2)) by Federal agencies 
                participating in the SBIR program or the STTR program 
                and the Administration; and
                    (C) determine the portion of the extramural 
                research or research and development budget of a 
                Federal agency that each Federal agency spends for 
                administrative purposes relating to the SBIR program or 
                STTR program, and for what specific purposes, including 
                the portion, if any, of such budget the Federal agency 
                spends for salaries and expenses, travel to visit 
                applicants, outreach events, marketing, and technical 
                assistance; and
            (2) submit a report to the Committee on Small Business and 
        Entrepreneurship of the Senate and the Committee on Small 
        Business and the Committee on Science, Space, and Technology of 
        the House of Representatives regarding the audit conducted 
        under paragraph (1), including the assessments required under 
        subparagraph (B), and the determination made under subparagraph 
        (C) of paragraph (1).
    (b) Definition of Applicable Period.--In this section, the term 
``applicable period'' means--
            (1) for the first report submitted under this section, the 
        period beginning on October 1, 2005, and ending on September 30 
        of the last full fiscal year before the date of enactment of 
        this Act for which information is available; and
            (2) for the second and each subsequent report submitted 
        under this section, the period--
                    (A) beginning on October 1 of the first fiscal year 
                after the end of the most recent full fiscal year 
                relating to which a report under this section was 
                submitted; and
                    (B) ending on September 30 of the last full fiscal 
                year before the date of the report.

SEC. 307. CONTINUED EVALUATION BY THE NATIONAL ACADEMY OF SCIENCES.

    Section 108 of the Small Business Reauthorization Act of 2000 (15 
U.S.C. 638 note) is amended by adding at the end the following:
    ``(e) Extensions and Enhancements of Authority.--
            ``(1) In general.--Not later than 6 months after the date 
        of enactment of the Creating Jobs Through Small Business 
        Innovation Act of 2011, the head of each agency described in 
        subsection (a), in consultation with the Small Business 
        Administration, shall cooperatively enter into an agreement 
        with the National Academy of Sciences for the National Research 
        Council to, not later than 4 years after the date of enactment 
        of the Creating Jobs Through Small Business Innovation Act of 
        2011, and every 4 years thereafter--
                    ``(A) continue the most recent study under this 
                section relating to--
                            ``(i) the issues described in subparagraphs 
                        (A), (B), (C), and (E) of subsection (a)(1); 
                        and
                            ``(ii) the effectiveness of the government 
                        and public databases described in section 9(k) 
                        of the Small Business Act (15 U.S.C. 638(k)) in 
                        reducing vulnerabilities of the SBIR program 
                        and the STTR program to fraud, waste, and 
                        abuse, particularly with respect to Federal 
                        agencies funding duplicative proposals and 
                        business concerns falsifying information in 
                        proposals;
                    ``(B) make recommendations with respect to the 
                issues described in subparagraph (A)(ii) and 
                subparagraphs (A), (D), and (E) of subsection (a)(2); 
                and
                    ``(C) estimate, to the extent practicable, the 
                number of jobs created by the SBIR program or STTR 
                program of the agency.
            ``(2) Consultation.--An agreement under paragraph (1) shall 
        require the National Research Council to ensure there is 
        participation by and consultation with the small business 
        community, the Administration, and other interested parties as 
        described in subsection (b).
            ``(3) Reporting.--An agreement under paragraph (1) shall 
        require that not later than 4 years after the date of enactment 
        of the Creating Jobs Through Small Business Innovation Act of 
        2011, and every 4 years thereafter, the National Research 
        Council shall submit to the head of the agency entering into 
        the agreement, the Committee on Small Business and 
        Entrepreneurship of the Senate, and the Committee on Small 
        Business and the Committee on Science, Space, and Technology of 
        the House of Representatives a report regarding the study 
        conducted under paragraph (1) and containing the 
        recommendations described in paragraph (1).''.

SEC. 308. TECHNOLOGY INSERTION REPORTING REQUIREMENTS.

    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:
    ``(jj) Phase III Reporting.--The annual SBIR or STTR report to 
Congress by the Administration under subsection (b)(7) shall include, 
for each Phase III award made by the Federal agency--
            ``(1) the name of the agency or component of the agency or 
        the non-Federal source of capital making the Phase III award;
            ``(2) the name of the small business concern or individual 
        receiving the Phase III award; and
            ``(3) the dollar amount of the Phase III award.''.

SEC. 309. OBTAINING CONSENT FROM SBIR AND STTR APPLICANTS TO RELEASE 
              CONTACT INFORMATION TO ECONOMIC DEVELOPMENT 
              ORGANIZATIONS.

    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:
    ``(kk) Consent To Release Contact Information to Organizations.--
            ``(1) Enabling concern to give consent.--Each Federal 
        agency required by this section to conduct an SBIR program or 
        an STTR program shall enable a small business concern that is 
        an SBIR applicant or an STTR applicant to indicate to the 
        Federal agency whether the Federal agency has the consent of 
        the concern to--
                    ``(A) identify the concern to appropriate local and 
                State-level economic development organizations as an 
                SBIR applicant or an STTR applicant; and
                    ``(B) release the contact information of the 
                concern to such organizations.
            ``(2) Rules.--The Administrator shall establish rules to 
        implement this subsection. The rules shall include a 
        requirement that a Federal agency include in the SBIR and STTR 
        application a provision through which the applicant can 
        indicate consent for purposes of paragraph (1).''.

SEC. 310. PILOT TO ALLOW FUNDING FOR ADMINISTRATIVE, OVERSIGHT, AND 
              CONTRACT PROCESSING COSTS.

    (a) In General.--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:
    ``(ll) Assistance for Administrative, Oversight, and Contract 
Processing Costs.--
            ``(1) In general.--Subject to paragraph (2), for the 3 full 
        fiscal years beginning after the date of enactment of this 
        subsection, the Administrator shall allow each Federal agency 
        required to conduct an SBIR program to use not more than 3 
        percent of the funds allocated to the SBIR program of the 
        Federal agency for--
                    ``(A) the administration of the SBIR program or the 
                STTR program of the Federal agency;
                    ``(B) the provision of outreach and technical 
                assistance relating to the SBIR program or STTR program 
                of the Federal agency, including technical assistance 
                site visits and personnel interviews;
                    ``(C) the implementation of commercialization and 
                outreach initiatives that were not in effect on the 
                date of enactment of this subsection;
                    ``(D) carrying out the program under subsection 
                (y);
                    ``(E) activities relating to oversight and 
                congressional reporting, including the waste, fraud, 
                and abuse prevention activities described in section 
                312(a)(1)(B)(ii) of the Creating Jobs Through Small 
                Business Innovation Act of 2011;
                    ``(F) targeted reviews of recipients of awards 
                under the SBIR program or STTR program of the Federal 
                agency that the head of the Federal agency determines 
                are at high risk for fraud, waste, or abuse, to ensure 
                compliance with requirements of the SBIR program or 
                STTR program, respectively;
                    ``(G) the implementation of oversight and quality 
                control measures, including verification of reports and 
                invoices and cost reviews;
                    ``(H) carrying out subsection (dd);
                    ``(I) carrying out subsection (hh);
                    ``(J) contract processing costs relating to the 
                SBIR program or STTR program of the Federal agency; and
                    ``(K) funding for additional personnel and 
                assistance with application reviews.
            ``(2) Performance criteria.--A Federal agency may not use 
        funds as authorized under paragraph (1) until after the 
        effective date of performance criteria, which the Administrator 
        shall establish, to measure any benefits of using funds as 
        authorized under paragraph (1) and to assess continuation of 
        the authority under paragraph (1).
            ``(3) Rules.--Not later than 180 days after the date of 
        enactment of this subsection, the Administrator shall issue 
        rules to carry out this subsection.''.
    (b) Technical and Conforming Amendments.--
            (1) In general.--Section 9 of the Small Business Act (15 
        U.S.C. 638), as amended by this Act, is further amended--
                    (A) in subsection (f)(2), by striking ``shall not'' 
                and all that follows through ``make available for the 
                purpose'' and inserting ``shall not make available for 
                the purpose''; and
                    (B) in subsection (y)--
                            (i) by striking paragraph (4); and
                            (ii) by redesignating paragraphs (5) and 
                        (6) as paragraphs (4) and (5), respectively.
            (2) Transitional rule.--Notwithstanding the amendments made 
        by paragraph (1), subsection (f)(2) and (y)(4) of section 9 of 
        the Small Business Act (15 U.S.C. 638), as in effect on the day 
        before the date of enactment of this Act, shall continue to 
        apply to each Federal agency until the effective date of the 
        performance criteria established by the Administrator under 
        subsection (ll)(2) of section 9 of the Small Business Act, as 
        added by subsection (a).
            (3) Prospective repeal.--Effective on the first day of the 
        fourth full fiscal year following the date of enactment of this 
        Act, section 9 of the Small Business Act (15 U.S.C. 638), as 
        amended by paragraph (1) of this section, is amended--
                    (A) in subsection (f)(2), by striking ``shall not 
                make available for the purpose'' and inserting the 
                following: ``shall not--
                    ``(A) use any of its SBIR budget established 
                pursuant to paragraph (1) for the purpose of funding 
                administrative costs of the program, including costs 
                associated with salaries and expenses; or
                    ``(B) make available for the purpose''; and
                    (B) in subsection (y)--
                            (i) by redesignating paragraphs (4) and (5) 
                        as paragraphs (5) and (6), respectively; and
                            (ii) by inserting after paragraph (3) the 
                        following:
            ``(4) Funding.--
                    ``(A) In general.--The Secretary of Defense and 
                each Secretary of a military department may use not 
                more than an amount equal to 1 percent of the funds 
                available to the Department of Defense or the military 
                department pursuant to the Small Business Innovation 
                Research Program for payment of expenses incurred to 
                administer the Commercialization Pilot Program under 
                this subsection.
                    ``(B) Limitations.--The funds described in 
                subparagraph (A)--
                            ``(i) shall not be subject to the 
                        limitations on the use of funds in subsection 
                        (f)(2); and
                            ``(ii) shall not be used to make Phase III 
                        awards.''.

SEC. 311. GAO STUDY WITH RESPECT TO VENTURE CAPITAL OPERATING COMPANY, 
              HEDGE FUND, AND PRIVATE EQUITY FIRM INVOLVEMENT.

    Not later than 2 years after the date of enactment of this Act, and 
every 2 years thereafter, the Comptroller General of the United States 
shall--
            (1) conduct a study of the impact of requirements relating 
        to venture capital operating company, hedge fund, and private 
        equity firm involvement under section 9 of the Small Business 
        Act; and
            (2) submit to Congress a report regarding the study 
        conducted under paragraph (1).

SEC. 312. REDUCING VULNERABILITY OF SBIR AND STTR PROGRAMS TO FRAUD, 
              WASTE, AND ABUSE.

    (a) Fraud, Waste, and Abuse Prevention.--
            (1) Guidelines for fraud, waste, and abuse prevention.--
                    (A) Amendments required.--Not later than 90 days 
                after the date of enactment of this Act, the 
                Administrator shall amend the SBIR Policy Directive and 
                the STTR Policy Directive to include measures to 
                prevent fraud, waste, and abuse in the SBIR program and 
                the STTR program.
                    (B) Content of amendments.--The amendments required 
                under subparagraph (A) shall include--
                            (i) definitions or descriptions of fraud, 
                        waste, and abuse;
                            (ii) a requirement that the Inspectors 
                        General of each Federal agency that 
                        participates in the SBIR program or the STTR 
                        program cooperate to--
                                    (I) establish fraud detection 
                                indicators;
                                    (II) review regulations and 
                                operating procedures of the Federal 
                                agencies;
                                    (III) coordinate information 
                                sharing between the Federal agencies; 
                                and
                                    (IV) improve the education and 
                                training of, and outreach to--
                                            (aa) administrators of the 
                                        SBIR program and the STTR 
                                        program of each Federal agency;
                                            (bb) applicants to the SBIR 
                                        program or the STTR program; 
                                        and
                                            (cc) recipients of awards 
                                        under the SBIR program or the 
                                        STTR program;
                            (iii) guidelines for the monitoring and 
                        oversight of applicants to and recipients of 
                        awards under the SBIR program or the STTR 
                        program; and
                            (iv) a requirement that each Federal agency 
                        that participates in the SBIR program or STTR 
                        program include the telephone number of the 
                        hotline established under paragraph (2)--
                                    (I) on the Web site of the Federal 
                                agency; and
                                    (II) in any solicitation or notice 
                                of funding opportunity issued by the 
                                Federal agency for the SBIR program or 
                                the STTR program.
            (2) Fraud, waste, and abuse prevention hotline.--
                    (A) Hotline established.--The Administrator shall 
                establish a telephone hotline that allows individuals 
                to report fraud, waste, and abuse in the SBIR program 
                or STTR program.
                    (B) Publication.--The Administrator shall include 
                the telephone number for the hotline established under 
                subparagraph (A) on the Web site of the Administration.
    (b) Study and Report.--Not later than 1 year after the date of 
enactment of this Act, and every 3 years thereafter, the Comptroller 
General of the United States shall--
            (1) conduct a study that evaluates--
                    (A) the implementation by each Federal agency that 
                participates in the SBIR program or the STTR program of 
                the amendments to the SBIR Policy Directive and the 
                STTR Policy Directive made pursuant to subsection (a);
                    (B) the effectiveness of the management information 
                system of each Federal agency that participates in the 
                SBIR program or STTR program in identifying duplicative 
                SBIR and STTR projects;
                    (C) the effectiveness of the risk management 
                strategies of each Federal agency that participates in 
                the SBIR program or STTR program in identifying areas 
                of the SBIR program or the STTR program that are at 
                high risk for fraud;
                    (D) technological tools that may be used to detect 
                patterns of behavior that may indicate fraud by 
                applicants to the SBIR program or the STTR program;
                    (E) the success of each Federal agency that 
                participates in the SBIR program or STTR program in 
                reducing fraud, waste, and abuse in the SBIR program or 
                the STTR program of the Federal agency; and
                    (F) the extent to which the Inspector General of 
                each Federal agency that participates in the SBIR 
                program or STTR program effectively conducts 
                investigations of individuals alleged to have submitted 
                false claims or violated Federal law relating to fraud, 
                conflicts of interest, bribery, gratuity, or other 
                misconduct; and
            (2) submit to the Committee on Small Business and 
        Entrepreneurship of the Senate, the Committee on Small Business 
        and the Committee on Science, Space, and Technology of the 
        House of Representatives, and the head of each Federal agency 
        that participates in the SBIR program or STTR program a report 
        on the results of the study conducted under subparagraph (A).

SEC. 313. SIMPLIFIED PAPERWORK REQUIREMENTS.

    Section 9(v) of the Small Business Act (15 U.S.C. 638(v)) is 
amended--
            (1) in the subsection heading, by striking ``Simplified 
        Reporting Requirements'' and inserting ``Reducing Paperwork and 
        Compliance Burden'';
            (2) by striking ``The Administrator'' and inserting the 
        following:
            ``(1) Standardization of reporting requirements.--The 
        Administrator''; and
            (3) by adding at the end the following:
            ``(2) Simplification of application and award process.--Not 
        later than one year after the date of enactment of this 
        paragraph, and after a period of public comment, the 
        Administrator shall issue regulations or guidelines, taking 
        into consideration the unique needs of each Federal agency, to 
        ensure that each Federal agency required to carry out an SBIR 
        program or STTR program simplifies and standardizes the program 
        proposal, selection, contracting, compliance, and audit 
        procedures for the SBIR program or STTR program of the Federal 
        agency (including procedures relating to overhead rates for 
        applicants and documentation requirements) to reduce the 
        paperwork and regulatory compliance burden on small business 
        concerns applying to and participating in the SBIR program or 
        STTR program.''.

                      TITLE IV--POLICY DIRECTIVES

SEC. 401. CONFORMING AMENDMENTS TO THE SBIR AND THE STTR POLICY 
              DIRECTIVES.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Administrator shall promulgate amendments to 
the SBIR Policy Directive and the STTR Policy Directive to conform such 
directives to this Act and the amendments made by this Act.
    (b) Publishing SBIR Policy Directive and the STTR Policy Directive 
in the Federal Register.--Not later than 180 days after the date of 
enactment of this Act, the Administrator shall publish the amended SBIR 
Policy Directive and the amended STTR Policy Directive in the Federal 
Register.

                       TITLE V--OTHER PROVISIONS

SEC. 501. REPORT ON SBIR AND STTR PROGRAM GOALS.

    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:
    ``(mm) Annual Report on SBIR and STTR Program Goals.--
            ``(1) Development of metrics.--The head of each Federal 
        agency required to participate in the SBIR program or the STTR 
        program shall develop metrics to evaluate the effectiveness, 
        and the benefit to the people of the United States, of the SBIR 
        program and the STTR program of the Federal agency that--
                    ``(A) are science-based and statistically driven;
                    ``(B) reflect the mission of the Federal agency; 
                and
                    ``(C) include factors relating to the economic 
                impact of the programs.
            ``(2) Evaluation.--The head of each Federal agency 
        described in paragraph (1) shall conduct an annual evaluation 
        using the metrics developed under paragraph (1) of--
                    ``(A) the SBIR program and the STTR program of the 
                Federal agency; and
                    ``(B) the benefits to the people of the United 
                States of the SBIR program and the STTR program of the 
                Federal agency.
            ``(3) Report.--
                    ``(A) In general.--The head of each Federal agency 
                described in paragraph (1) shall submit to the 
                appropriate committees of Congress and the 
                Administrator an annual report describing in detail the 
                results of an evaluation conducted under paragraph (2).
                    ``(B) Public availability of report.--The head of 
                each Federal agency described in paragraph (1) shall 
                make each report submitted under subparagraph (A) 
                available to the public online.
                    ``(C) Definition.--In this paragraph, the term 
                `appropriate committees of Congress' means--
                            ``(i) the Committee on Small Business and 
                        Entrepreneurship of the Senate; and
                            ``(ii) the Committee on Small Business and 
                        the Committee on Science, Space, and Technology 
                        of the House of Representatives.''.

SEC. 502. COMPETITIVE SELECTION PROCEDURES FOR SBIR AND STTR PROGRAMS.

    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:
    ``(nn) Competitive Selection Procedures for SBIR and STTR 
Programs.--All funds awarded, appropriated, or otherwise made available 
in accordance with subsection (f) or (n) must be awarded pursuant to 
competitive and merit-based selection procedures.''.

SEC. 503. LOAN RESTRICTIONS.

    (a) Rule Required.--For purposes of section 9 of the Small Business 
Act (15 U.S.C. 638), the Administrator shall promulgate a rule not 
later than 180 days after the date of enactment of this Act that 
determines what restrictions, conditions, or covenants contained in a 
note, bond, debenture, other evidence of indebtedness, or preferred 
stock constitute affiliation for purposes of section 121.103(a) of 
title 13, Code of Federal Regulations, as in effect on January 1, 2011.
    (b) Failure to Promulgate.--If the Administrator fails to 
promulgate a rule in the time period required under subsection (a), the 
holder of a note, bond, debenture, other evidence of indebtedness, or 
preferred stock shall be considered to be affiliated with the debtor or 
issuer of the preferred stock until such time as the Administrator 
promulgates the rule required under subsection (a).
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