IB 

Union Calendar No. 687 

114TH CONGRESS 

2D SESSION H. R. 4783 

[Report No. 114–705, Part I] 

To reauthorize and improve the Small Business Innovation Research Program 

and the Small Business Technology Transfer Program, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 17, 2016 

Mr. CHABOT (for himself and Ms. VELA ́ZQUEZ) introduced the following bill; 

which was referred to the Committee on Small Business, and in addition 

to the Committee on Science, Space, and Technology, 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 

JULY 25, 2016 

Reported from the Committee on Small Business 

[Strike out all after the enacting clause and insert the part printed in italic] 

JULY 25, 2016 

Referral to the Committee on Science, Space, and Technology extended for a 

period ending not later than December 16, 2016 

DECEMBER 16, 2016 

The Committee on Science, Space, and Technology discharged; committed to 

the Committee of the Whole House on the State of the Union and ordered to be printed 

[For text of introduced bill, see copy of bill as introduced on March 17, 2016] 


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A BILL 

To reauthorize and improve the Small Business Innovation 

Research Program and the Small Business Technology 

Transfer Program, and for other purposes. 


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1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Commercializing on 

5 Small Business Innovation Act of 2016’’. 

6 SEC. 2. EXTENSION OF TERMINATION DATES. 

7 (a) SBIR.—Section 9(m) of the Small Business Act 

8 (15 U.S.C. 638(m)) is amended by striking ‘‘2017’’ and in9 serting ‘‘2022’’. 

10 (b) STTR.—Section 9(n)(1)(A) of the Small Business 

11 Act (15 U.S.C. 638(n)(1)(A)) is amended by striking 

12 ‘‘2017’’ and inserting ‘‘2022’’. 

13 (c) ADMINISTRATIVE FUNDING.—Section 9(mm)(1) of 

14 the Small Business Act (15 U.S.C. 638(mm)(1)) is amended 

15 by striking ‘‘2017’’ and inserting ‘‘2022’’. 

16 SEC. 3. REQUIRED EXPENDITURE AMOUNTS. 

17 (a) SBIR.—Section 9(f)(1) of the Small Business Act 

18 (15 U.S.C. 638(f)(1)) is amended— 

19 (1) in subparagraph (H), by striking the ‘‘and’’ 

20 at the end; 

21 (2) in subparagraph (I), by striking ‘‘and each 

22 fiscal year thereafter,’’ and inserting a semicolon; and 

23 (3) by inserting after subparagraph (I) the fol24 lowing new subparagraphs: 


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1 ‘‘(J) not less than 3.46 percent of such 

2 budget in fiscal year 2018; 

3 ‘‘(K) not less than 3.72 percent of such 

4 budget in fiscal year 2019; 

5 ‘‘(L) not less than 3.98 percent of such 

6 budget in fiscal year 2020; 

7 ‘‘(M) not less than 4.24 percent of such 

8 budget in fiscal year 2021; and 

9 ‘‘(N) not less than 4.50 percent of such 

10 budget in fiscal year 2022 and each fiscal year 

11 thereafter,’’. 

12 (b) STTR.—Section 9(n)(1)(B) of the Small Business 

13 Act (15 U.S.C. 638(n)(1)(B)) is amended— 

14 (1) in clause (iv), by striking the ‘‘and’’ at the 

15 end; 

16 (2) in clause (v), by striking ‘‘for fiscal year 

17 2016 and each fiscal year thereafter.’’ and inserting 

18 ‘‘for each of fiscal years 2016 and 2017;’’ ; and 

19 (3) by adding at the end the following new 

20 clauses: 

21 ‘‘(vi) 0.50 percent for each of fiscal 

22 years 2018 and 2019; 

23 ‘‘(vii) 0.55 percent for each of fiscal 

24 years 2020 and 2021; and 


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1 ‘‘(viii) 0.60 percent for fiscal year 

2 2022 and each fiscal year thereafter.’’. 

3 SEC. 4. REPORTING REQUIREMENTS. 

4 (a) ANNUAL REPORT TO CONGRESS.—Section 9(b)(7) 

5 of the Small Business Act (15 U.S.C. 638(b)(7)) is amended 

6 by striking ‘‘to report not less than annually’’ and inserting 

7 ‘‘to submit a report not later than December 31 of each 

8 year’’. 

9 (b) ANNUAL REPORTS TO THE ADMINISTRATOR RE10 QUIRED TO BE SUBMITTED NOT LATER THAN MARCH 30 

11 OF EACH YEAR.—Section 9 of the Small Business Act (15 

12 U.S.C. 638) is amended— 

13 (1) in subsection (g)(9), by striking ‘‘make an 

14 annual report’’ and inserting ‘‘not later than March 

15 30 of each year, submit a report’’; 

16 (2) in subsection (i)(1), by striking ‘‘shall report 

17 annually to the Small Business Administration’’ and 

18 inserting ‘‘shall, not later than March 30 of each 

19 year, submit a report to the Small Business Adminis20 tration that includes’’; 

21 (3) in subsection (j)— 

22 (A) in paragraph (1)(E), by striking ‘‘sim23 plified, standardized, and timely annual report’’ 

24 and inserting ‘‘not later than March 30 of each 

25 year, a simplified and standardized report’’; and 


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1 (B) in paragraph (3)(C), by striking ‘‘to re2 quire agencies to report to the Administration, 

3 not less frequently than annually, all instances 

4 in which an’’ and inserting ‘‘to require each 

5 agency, not later than March 30 of each year, to 

6 submit a report to the Administration on all in7 stance in which the’’; 

8 (4) in subsection (o)(10), by striking ‘‘submit an 

9 annual report’’ and inserting ‘‘not later than March 

10 30 of each year, submit a report’’; 

11 (5) in subsection (y)(6)(C), by striking ‘‘submit’’ 

12 and inserting ‘‘not later than March 30 of each year, 

13 submit’’; 

14 (6) in subsection (dd)(4)(A), by striking ‘‘and 

15 submit’’ and inserting ‘‘and, not later than March 30 

16 of each year, submit’’; 

17 (7) in subsection (gg)(6), by striking ‘‘include in 

18 the annual’’ and inserting ‘‘include, not later than 

19 March 30 of each year, a’’; 

20 (8) in subsection (ii) by inserting ‘‘, not later 

21 than March 30 of each year,’’ after ‘‘shall’’; 

22 (9) in subsection (mm)(6), by inserting ‘‘, not 

23 later than June 30 of each year,’’ after ‘‘shall’’; 

24 (10) in subsection (nn)(3)(A)— 


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1 (A) by striking ‘‘an annual’’ and inserting 

2 ‘‘a’’ ; and 

3 (B) by inserting ‘‘, not later than March 30 

4 of each year,’’ after ‘‘shall’’; and 

5 (11) in subsection (ss), by striking ‘‘October 1, 

6 2013, and annually thereafter,’’ and inserting ‘‘March 

7 30 of each year,’’. 

8 (c) FAILURE TO REPORT ADMINISTRATIVE FUNDS.— 

9 Section 9(mm) of the Small Business Act (15 U.S.C. 

10 638(mm)) is amended by adding at the end the following 

11 new paragraph: 

12 ‘‘(7) FAILURE TO REPORT ADMINISTRATIVE

13 FUNDS.— 

14 ‘‘(A) IN GENERAL.—Not later than March 

15 30 following each fiscal year for which funds are 

16 authorized to be used by a Federal agency under 

17 paragraph (1), the Federal agency shall submit 

18 a report to the Administrator that identifies how 

19 the Federal agency used such funds during such 

20 fiscal year. 

21 ‘‘(B) FAILURE TO SUBMIT A REPORT.—If a 

22 Federal agency fails to submit a report required 

23 under subparagraph (A), paragraph (1) shall not 

24 apply to such Federal agency unless— 

25 ‘‘(i) such report is submitted; and 


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1 ‘‘(ii) such Federal agency submits an 

2 additional report to the Administrator that 

3 identifies how such Federal agency plans to 

4 ensure timely reporting under this para5 graph.’’. 

6 SEC. 5. INDEXING AWARDS FOR INFLATION. 

7 Section 9 of the Small Business Act (15 U.S.C. 638) 

8 is amended— 

9 (1) in subsection (j)(2)— 

10 (A) by striking subparagraph (D); 

11 (B) by redesignating subparagraphs (E) 

12 through (I) as subparagraphs (D) through (H), 

13 respectively; and 

14 (C) in subparagraph (H), as so redesig15 nated, by striking ‘‘subparagraph (H)’’ and in16 serting ‘‘subparagraph (G)’’; 

17 (2) in subsection (p)(2)(B)— 

18 (A) in clause (vii), by adding ‘‘and’’ at the 

19 end; 

20 (B) in clause (viii), by striking ‘‘and’’ at 

21 the end; and 

22 (C) by striking clause (ix); 

23 (3) in subsection (gg)(3), by striking ‘‘awards 

24 under subsection (j)(2)(D) or (p)(2)(B)(ix).’’ and in25 serting ‘‘awards under subsection (tt)(2).’’; and 


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1 (4) by adding at the end the following new sub2 section: 

3 ‘‘(tt) AWARDS UNDER PHASE I AND PHASE II AD4 JUSTED FOR INFLATION.— 

5 ‘‘(1) PHASE I AWARDS.—An award for Phase I 

6 of an SBIR or STTR program may not exceed 

7 $150,000. 

8 ‘‘(2) PHASE II AWARDS.—An award for Phase II 

9 of an SBIR or STTR program may not exceed 

10 $1,000,000. 

11 ‘‘(3) ADJUSTMENT FOR INFLATION.—The Admin12 istrator shall adjust the dollar amounts under para13 graphs (1) and (2) for inflation in accordance with 

14 section 1908 of title 41, United States Code.’’. 

15 SEC. 6. REQUIREMENTS FOR INSERTION INCENTIVES. 

16 Section 9(y)(5) of the Small Business Act (15 U.S.C. 

17 638(y)(5)) is amended by striking ‘‘is authorized to’’ and 

18 inserting ‘‘shall’’. 

19 SEC. 7. CLARIFICATION OF ELIGIBILITY OF CERTAIN SMALL 

20 BUSINESSES. 

21 (a) SBIR.—Section 9(j) of the Small Business Act (15 

22 U.S.C. 638(j)) is amended by adding at the end the fol23 lowing new paragraph: 

24 ‘‘(4) MODIFICATION TO CLARIFY ELIGIBILITY OF

25 CERTAIN SMALL BUSINESSES.—Not later than 180 


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1 days after the date of the enactment of the Commer2 cializing on Small Business Innovation Act of 2016, 

3 the Administrator shall modify the policy directives 

4 issued pursuant to this subsection to clarify that the 

5 small business concerns described in subparagraphs 

6 (B), (C), and (D) of section 3(p)(3) are eligible to re7 ceive awards under the SBIR program.’’. 

8 (b) STTR.—Section 9(p) of the Small Business Act 

9 (15 U.S.C. 638(p)) is amended by adding at the end the 

10 following new paragraph: 

11 ‘‘(4) MODIFICATION TO CLARIFY ELIGIBILITY OF

12 CERTAIN SMALL BUSINESSES.—Not later than 180 

13 days after the date of the enactment of the Commer14 cializing on Small Business Innovation Act of 2016, 

15 the Administrator shall modify the policy directives 

16 issued pursuant to this subsection to clarify that the 

17 small business concerns described in subparagraphs 

18 (B), (C), and (D) of section 3(p)(3) are eligible to re19 ceive awards under the STTR program.’’. 

20 SEC. 8. COMMERCIALIZATION ASSISTANCE PILOT PRO21 GRAM. 

22 Section 9 of the Small Business Act (15 U.S.C. 638), 

23 as amended by section 5, is further amended by adding at 

24 the end the following new subsection: 


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1 ‘‘(uu) COMMERCIALIZATION ASSISTANCE PILOT PRO2 GRAMS.— 

3 ‘‘(1) PILOT PROGRAMS IMPLEMENTED.— 

4 ‘‘(A) IN GENERAL.—Except as provided in 

5 subparagraph (B), not later than one year after 

6 the date of the enactment of Commercializing on 

7 Small Business Innovation Act of 2016, a cov8 ered agency shall implement a commercialization 

9 assistance pilot program to award eligible enti10 ties with a second sequential SBIR award. 

11 ‘‘(B) EXCEPTION.—If the Administrator de12 termines that a covered agency has a program 

13 that is sufficiently similar to a commercializa14 tion assistance pilot program, such agency shall 

15 not be required to implement a commercializa16 tion assistance pilot program under subpara17 graph (A). 

18 ‘‘(C) PERCENT OF AGENCY FUNDS.—A cov19 ered agency may not use more than 5 percent of 

20 its total SBIR budget for awards under the com21 mercialization assistance pilot program. 

22 ‘‘(D) TERMINATION.—The commercializa23 tion assistance pilot programs shall terminate on 

24 September 30, 2022. 

25 ‘‘(2) MATCHING REQUIREMENT.— 


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1 ‘‘(A) IN GENERAL.—The Administrator 

2 shall require as a condition of any award made 

3 to an eligible entity under a commercialization 

4 assistance pilot program, that a matching 

5 amount (excluding any fees collected from recipi6 ents of such assistance) equal to the amount of 

7 such award be provided from an eligible third8 party investor, before the end of the commer9 cialization assistance pilot program award. 

10 ‘‘(B) INELIGIBLE FUNDING.—An eligible en11 tity may not use funding from ineligible sources 

12 to meet the matching requirement of subpara13 graph (A). 

14 ‘‘(3) AWARD.— 

15 ‘‘(A) SIZE OF AWARD.—An award under 

16 this subsection may not exceed the limitations in 

17 subsection (aa)(1). 

18 ‘‘(B) TIMING.—Awards provided under the 

19 commercialization assistance pilot program shall 

20 be distributed during the Phase II award period 

21 of the recipient eligible entity. 

22 ‘‘(4) APPLICATION.—In order to be selected to re23 ceive a second sequential SBIR award under a com24 mercialization assistance pilot program, an eligible 


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1 entity shall submit to the covered agency imple2 menting such pilot program— 

3 ‘‘(A) an application at such time, in such 

4 manner, and containing such information as the 

5 covered agency may require; and 

6 ‘‘(B) the source and amount of the matching 

7 funding required under paragraph (2). 

8 ‘‘(5) USE OF FUNDS.—The funds awarded under 

9 a commercialization assistance pilot program may 

10 only be used for research and development activities 

11 that build on the eligible entity’s Phase II program 

12 and catalyze acceleration towards commercialization. 

13 ‘‘(6) DETERMINATION OF RECIPIENTS.—In deter14 mining which applicants receive awards under the 

15 commercialization assistance pilot program, the head 

16 of a covered agency shall consider— 

17 ‘‘(A) the extent to which the supplemental 

18 funds awarded under the pilot program could 

19 aid the applicant commercialize its research; 

20 ‘‘(B) whether the proposed plan provides a 

21 sound approach for establishing technical feasi22 bility that could lead to commercialization; 

23 ‘‘(C) whether the proposed activity reflect 

24 changes to the Phase II commercialization plan 


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1 that further improves the chances of conversion 

2 of research in order to provide societal benefits; 

3 ‘‘(D) whether the small business concern has 

4 progressed satisfactorily in the Phase II activity 

5 to justify additional funding; 

6 ‘‘(E) the expectations of the third-party 

7 funding; and 

8 ‘‘(F) the likelihood that the third-party 

9 funded activity will lead to commercial and soci10 etal benefit. 

11 ‘‘(7) EVALUATION REPORT.—Not later than 3 

12 years after the date of the enactment of Commer13 cializing on Small Business Innovation Act of 2016, 

14 the Comptroller General of the United States shall 

15 submit to the Committee on Science, Space, and Tech16 nology and the Committee on Small Business of the 

17 House of Representatives and the Committee on 

18 Small Business and Entrepreneurship of the Senate 

19 an evaluative report that includes— 

20 ‘‘(A) a summary of the activities of the 

21 commercialization assistance pilot programs; 

22 ‘‘(B) a detailed compilation of results 

23 achieved by the commercialization assistance 

24 pilot programs, including the number of small 


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1 business concerns that received awards under the 

2 pilot program; 

3 ‘‘(C) the rate at which the recipients under 

4 the pilot program commercialized their research; 

5 ‘‘(D) the growth in employment and rev6 enue of companies that participated in the pilot 

7 program; 

8 ‘‘(E) a comparison of commercialization 

9 success of pilot program participants and recipi10 ents of a non-matching sequential Phase II 

11 award; 

12 ‘‘(F) demographic information such as eth13 nicity and geographic location of participant 

14 companies; 

15 ‘‘(G) an accounting of the funds used at 

16 each participating agency in the pilot program; 

17 ‘‘(H) a distribution of third-party funding 

18 by source; 

19 ‘‘(I) an analysis of the program’s effective20 ness at each participating agency; and 

21 ‘‘(J) recommendations for improvement to 

22 the pilot program, in the case that Congress were 

23 to make it permanent. 

24 ‘‘(8) DEFINITIONS.—For purposes of this sub25 section: 


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1 ‘‘(A) COVERED AGENCY.—The term ‘covered 

2 agency’ means a Federal agency required to have 

3 an SBIR program. 

4 ‘‘(B) ELIGIBLE ENTITY.—The term ‘eligible 

5 entity’ means a small business concern that has 

6 received a Phase II award and a Phase II se7 quential award from the covered agency to which 

8 such entity is applying for a second sequential 

9 SBIR award. 

10 ‘‘(C) ELIGIBLE THIRD-PARTY INVESTOR.— 

11 The term ‘eligible third-party investors’ means a 

12 small business concern other than the eligible en13 tity, a venture capital firm, an individual inves14 tor, a non-SBIR Federal, State or local govern15 ment, or any combination thereof. 

16 ‘‘(D) INELIGIBLE SOURCES.—The term ‘in17 eligible sources’ means the following: 

18 ‘‘(i) The awardee’s internal research 

19 and development funds. 

20 ‘‘(ii) Funding in forms other than cash 

21 such as in-kind or other intangible assets. 

22 ‘‘(iii) Funding from the owners of the 

23 eligible entity, or the family members or af24 filiates of such owners. 


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1 ‘‘(iv) Funding attained through loans 

2 or other forms of debt obligations.’’. 

3 SEC. 9. INCREASED UNDERSERVED POPULATION PARTICI4 PATION WAIVER REMOVED. 

5 (a) IN GENERAL.—Section 9(mm)(2) of the Small 

6 Business Act (15 U.S.C. 638(mm)(2)) is amended to read 

7 as follows: 

8 ‘‘(2) OUTREACH AND TECHNICAL ASSISTANCE.— 

9 A Federal agency participating in the program under 

10 this subsection shall use a portion of the funds au11 thorized for uses under paragraph (1) to carry out the 

12 policy directive required under subsection (j)(2)(F) 

13 and to increase the participation of States with re14 spect to which a low level of SBIR awards have his15 torically been awarded.’’. 

16 (b) CONFORMING AMENDMENT.—Section 9(mm)(6) of 

17 the Small Business Act (15 U.S.C. 638(mm)(6)) is amended 

18 by striking ‘‘(A) and any use of the waiver authority under 

19 paragraph (2)(B)’’. 


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Union Calendar No. 687 

114TH CONGRESS 

2D SESSION H. R. 4783 

[Report No. 114–705, Part I] 

A BILL 

To reauthorize and improve the Small Business Inother purposes. ness Technology Transfer Program, and for novation Research Program and the Small BusiDECEMBER 16, 2016 The Committee on Science, Space, and Technology disprinted House on the State of the Union and ordered to be charged; committed to the Committee of the Whole 


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