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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5819 Referred in Senate (RFS)]

  2d Session
                                H. R. 5819

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             April 24, 2008

 Received; read twice and referred to the Committee on Small Business 
                          and Entrepreneurship

_______________________________________________________________________

                                 AN ACT

 
     To amend the Small Business Act to improve the Small Business 
 Innovation Research (SBIR) program and the Small Business Technology 
            Transfer (STTR) program, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``SBIR/STTR 
Reauthorization Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
            TITLE I--MODERNIZING THE SBIR AND STTR PROGRAMS

Sec. 101. Extension of termination dates.
Sec. 102. Increased SBIR and STTR award levels.
Sec. 103. Establishment of SBIR advisory boards.
Sec. 104. Increase in amount of technical assistance funds and option 
                            to purchase technical assistance directly.
Sec. 105. Increased number of research topic solicitations annually and 
                            shortened period for final decisions on 
                            applications.
Sec. 106. Inclusion of energy-related research topics and rare-disease-
                            related research topics as deserving 
                            ``special consideration'' as SBIR research 
                            topics.
Sec. 107. Agencies should fund vital R&D projects with the potential 
                            for commercialization.
Sec. 108. Federal agency engagement with SBIR awardees that have been 
                            awarded multiple Phase One awards but have 
                            not been awarded Phase Two awards.
Sec. 109. Limitation on certain awards.
Sec. 110. Comptroller General audit of how Federal agencies calculate 
                            extramural research budgets.
Sec. 111. Providing explanations to unsuccessful applicants.
             TITLE II--VENTURE CAPITAL INVESTMENT STANDARDS

Sec. 201. Ensuring that innovative small businesses with substantial 
                            investment from venture capital operating 
                            companies are able to participate in the 
                            SBIR program.
                TITLE III--SBIR AND ECONOMIC DEVELOPMENT

Sec. 301. Reauthorization and modernization of Federal and State 
                            Technology Partnership Program (FAST).
Sec. 302. Obtaining SBIR applicant's consent to release contact 
                            information to economic development 
                            organizations.
     TITLE IV--ADVANCING COMMERCIALIZATION OF SBIR-FUNDED RESEARCH

Sec. 401. Clarifying the definition of ``Phase Three''.
Sec. 402. Agency research goals.
Sec. 403. Express authority for an agency to award sequential Phase Two 
                            awards for SBIR-funded projects.
Sec. 404. Increased partnerships between SBIR awardees and prime 
                            contractors, venture capital investment 
                            companies, and larger businesses.
Sec. 405. Express authority to ``fast-track'' Phase Two awards for 
                            promising Phase One research.
Sec. 406. Commercialization programs.
Sec. 407. Report on efforts to enhance manufacturing activities.
                TITLE V--SUPPORTING PROGRAM UTILIZATION

Sec. 501. Agency databases to support program evaluation.
Sec. 502. Agency databases to support technology utilization.
Sec. 503. Interagency Policy Committee.
Sec. 504. Nanotechnology-related research topics.
Sec. 505. Rural preference.
Sec. 506. Priority for areas that have lost a major source of 
                            employment.
Sec. 507. Veterans preference.
Sec. 508. Initiative to publicize the SBIR program to veterans.
Sec. 509. Preference for organizations that are making significant 
                            contributions towards energy efficiency.
                        TITLE VI--IMPLEMENTATION

Sec. 601. Conforming amendments to the SBIR and STTR policy directives.
Sec. 602. National Research Council SBIR Study.
Sec. 603. SBIR awardee business operations.
Sec. 604. Prohibition of awards to aliens unlawfully present in the 
                            United States.
Sec. 605. Prohibition on awards to firms in violation of immigration 
                            laws.

            TITLE I--MODERNIZING 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 by striking ``2008'' and inserting ``2010''.
    (b) STTR.--Section 9(n)(1)(A) of the Small Business Act (15 U.S.C. 
638(n)(1)(A)) is amended by striking ``2009'' and inserting ``2010''.

SEC. 102. INCREASED SBIR AND STTR AWARD LEVELS.

    (a) SBIR Award Level.--Section 9(j)(2)(D) of the Small Business Act 
(15 U.S.C. 638(j)(2)(D)) is amended by striking ``$100,000'' and 
``$750,000'' and inserting ``$300,000'' and ``$2,200,000'', 
respectively.
    (b) STTR Award Level.--Section 9(p)(2)(B)(ix) of the Small Business 
Act (15 U.S.C. 638(p)(2)(B)(ix)) is amended by striking ``$100,000'' 
and ``$750,000'' and inserting ``$300,000'' and ``$2,200,000'', 
respectively.
    (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 ``and an 
        adjustment of such amounts once every 5 years to reflect 
        economic adjustments and programmatic considerations'' and 
        inserting ``and a mandatory annual adjustment of such amounts 
        to reflect economic adjustments and programmatic 
        considerations''; and
            (2) in subsection (p)(2)(B)(ix), by striking ``greater or 
        lesser amounts'' and inserting ``with a mandatory annual 
        adjustment of such amounts to reflect economic adjustments and 
        programmatic considerations, and with lesser amounts''.
    (d) Limitation on Certain Awards.--Section 9 of the Small Business 
Act (15 U.S.C. 638) is amended by adding at the end the following:
    ``(z) Limitation on Phase I and II Awards.--
            ``(1) In general.--No Federal agency shall issue an award 
        under the SBIR program or the STTR program if the size of the 
        award exceeds the amounts established under subsections 
        (j)(2)(D) and (p)(2)(B)(ix), except as provided in paragraph 
        (2).
            ``(2) Exception.--The prohibition in paragraph (1) does not 
        apply to an agency for a fiscal year if the head of the 
        agency--
                    ``(A) notifies the Administrator that the agency 
                intends to issue awards in that fiscal year without 
                regard to the prohibition in paragraph (1); and
                    ``(B) reports to the Committee on Small Business 
                and the Committee on Science and Technology of the 
                House of Representatives and the Committee on Small 
                Business and Entrepreneurship of the Senate at least 
                annually the number of instances in which the agency 
                issued an award that exceeds the amounts referred to in 
                paragraph (1) and the justification for each such 
                instance.''.

SEC. 103. ESTABLISHMENT OF SBIR ADVISORY BOARDS.

    (a) In General.--Section 9 of the Small Business Act (15 U.S.C. 
638) is amended by inserting after subsection (z) the following:
    ``(aa) SBIR Advisory Boards.--
            ``(1) Advisory boards required.--Each Federal agency that 
        is required by this section to conduct an SBIR program and that 
        administers annually $50,000,000 or more in SBIR grants shall 
        have an SBIR advisory board.
            ``(2) Members.--For each advisory board required by 
        paragraph (1), the members of the advisory board shall 
        include--
                    ``(A) at least two individuals who are employees of 
                the agency;
                    ``(B) at least two representatives of private 
                sector technology firms;
                    ``(C) at least one individual who is a veteran who 
                owns a small business concern owned and controlled by 
                veterans; and
                    ``(D) such other individuals as the agency 
                considers appropriate.
            ``(3) Security clearances.--Where it is appropriate to the 
        work of an advisory board required by paragraph (1) that the 
        members and staff of the advisory board have a security 
        clearance, the appropriate departments and agencies of the 
        executive branch shall cooperate with the advisory board to 
        expeditiously provide members and staff with appropriate 
        security clearances to the extent possible under applicable 
        procedures and requirements.
            ``(4) Meetings.--Each advisory board required by paragraph 
        (1) shall meet at least two times per year.
            ``(5) Duties.--Each advisory board required by paragraph 
        (1) shall--
                    ``(A) review the quarterly reports submitted under 
                subsection (g)(8);
                    ``(B) make recommendations to the agency about 
                potential modifications to the agency's SBIR program 
                that are intended to--
                            ``(i) encourage applications, particularly 
                        applications from small business concerns owned 
                        and controlled by women, small business 
                        concerns owned and controlled by minorities, 
                        small business concerns owned and controlled by 
                        service-disabled veterans, and small business 
                        concerns in States and regions that 
                        historically receive few SBIR awards; and
                            ``(ii) support commercialization of Federal 
                        research funded by SBIR awards; and
                    ``(C) submit to the Committee on Small Business and 
                the Committee on Science and Technology of the House of 
                Representatives and the Committee on Small Business and 
                Entrepreneurship of the Senate an annual report on the 
                SBIR program conducted by the agency.
            ``(6) Contents of annual report.--The annual report 
        required by paragraph (5)(C) shall include a description of how 
        that agency's SBIR program is functioning and any 
        recommendations of the advisory board for strengthening that 
        agency's SBIR program. The annual report shall also state the 
        number and dollar amount of awards under the agency's SBIR 
        program, and under the agency's STTR program, that were made to 
        small business concerns owned and controlled by women, small 
        business concerns owned and controlled by minorities, small 
        business concerns owned and controlled by veterans, and small 
        business concerns in States and regions that historically 
        receive few SBIR awards.
            ``(7) Non-applicability of faca.--The Federal Advisory 
        Committee Act (5 U.S.C. App.) shall not apply to an advisory 
        board required by paragraph (1).''.
    (b) Agency Reports to SBIR Advisory Boards.--Section 9(g)(8) of the 
Small Business Act (15 U.S.C. 638(g)(8)) is amended by inserting before 
the semicolon at the end the following: ``and, if the agency is 
required by subsection (aa) to have an SBIR advisory board, submit a 
quarterly report on the SBIR program to that SBIR advisory board''.

SEC. 104. INCREASE IN AMOUNT OF TECHNICAL ASSISTANCE FUNDS AND OPTION 
              TO PURCHASE TECHNICAL ASSISTANCE DIRECTLY.

    Section 9(q) of the Small Business Act (15 U.S.C. 638(q)) is 
amended--
            (1) in paragraph (1)--
                    (A) by striking ``paragraph (2)'' and inserting 
                ``paragraph (2)(A), or another Federal agency under 
                paragraph (2)(B),'';
                    (B) by striking ``and'' at the end of subparagraph 
                (C);
                    (C) by striking the period at the end of 
                subparagraph (D) and inserting ``; and''; and
                    (D) by adding at the end the following new 
                subparagraph:
                    ``(E) implementing manufacturing processes and 
                production strategies for utilization.'';
            (2) by amending paragraph (2) to read as follows:
            ``(2) Assistance providers.--
                    ``(A) Vendor selection.--Each agency may select a 
                vendor to assist small business concerns to meet the 
                goals listed in paragraph (1) for a term not to exceed 
                3 years. Such selection shall be competitive and shall 
                utilize merit-based criteria.
                    ``(B) Interagency collaboration.--In addition, each 
                agency may enter into a collaborative agreement with 
                the technical extension or assistance programs of other 
                Federal agencies in order to provide the assistance 
                described in paragraph (1).''; and
            (3) in paragraph (3)--
                    (A) in subparagraph (A) by striking ``$4,000'' and 
                inserting ``$5,000'';
                    (B) by amending subparagraph (B) to read as 
                follows:
                    ``(B) Second phase.--Each agency referred to in 
                paragraph (1) may provide directly, or authorize any 
                second phase SBIR award recipient to purchase with 
                funds available from their SBIR awards, services 
                described in paragraph (1), in an amount equal to not 
                more than $8,000 per year, per award.''; and
                    (C) by adding at the end the following:
                    ``(C) Authority to opt out.--The Administrator 
                shall establish guidelines under which an award 
                recipient eligible to receive services under 
                subparagraph (A) may decline those services and receive 
                instead an amount equal to not more than $2,500, which 
                shall be in addition to the amount of the recipient's 
                award and which shall be used to purchase services 
                described in paragraph (1).''.

SEC. 105. INCREASED NUMBER OF RESEARCH TOPIC SOLICITATIONS ANNUALLY AND 
              SHORTENED PERIOD FOR FINAL DECISIONS ON APPLICATIONS.

    (a) Increased Number of Research Topic Solicitations.--Section 
9(g)(2) of the Small Business Act (15 U.S.C. 638(g)(2)) is amended by 
inserting before the semicolon at the end the following: ``, but not 
less often than twice per year''.
    (b) Shortened Period for Final Decisions on Applications.--Section 
9(g)(4) of that Act (15 U.S.C. 638(g)(4)) is amended--
            (1) by inserting before the semicolon at the end the 
        following: ``: Provided, That if the agency is required by 
        subsection (aa) to have an SBIR advisory board--''; and
            (2) by adding at the end the following:
                    ``(A) a final decision on each proposal shall be 
                rendered not later than 90 days after the date on which 
                the solicitation closes;
                    ``(B) the SBIR advisory board may, on a case by 
                case basis, extend the 90 days to 180 days; and
                    ``(C) the SBIR advisory board shall include in each 
                annual report to Congress under subsection (aa) a 
                statement identifying how many times a decision was not 
                rendered in 90 days, how many times an extension was 
                granted, and how many times a decision was not rendered 
                in 180 days;''.

SEC. 106. INCLUSION OF ENERGY-RELATED RESEARCH TOPICS AND RARE-DISEASE-
              RELATED RESEARCH TOPICS AS DESERVING ``SPECIAL 
              CONSIDERATION'' AS SBIR RESEARCH TOPICS.

    Section 9(g)(3) of the Small Business Act (15 U.S.C. 638(g)(3)) is 
amended--
            (1) in the matter preceding subparagraph (A) by inserting 
        after ``critical technologies'' the following: ``or pressing 
        research priorities'';
            (2) at the end of subparagraph (A) by striking ``or''; and
            (3) by adding at the end the following:
                    ``(C) the National Academy of Sciences, in the 
                final report issued by the `America's Energy Future: 
                Technology Opportunities, Risks, and Tradeoffs' 
                project, and in subsequent reports issued by the 
                National Academy of Sciences on sustainability, energy, 
                and alternative fuels;
                    ``(D) the National Institutes of Health, in the 
                annual report on the rare diseases research activities 
                of the National Institutes of Health for fiscal year 
                2005, and in subsequent reports issued by the National 
                Institutes of Health on rare diseases research 
                activities;
                    ``(E) the National Academy of Sciences, in the 
                final report issued by the `Transit Research and 
                Development: Federal Role in the National Program' 
                project and the `Transportation Research, Development 
                and Technology Strategic Plan (2006-2010)' issued by 
                the United States Department of Transportation Research 
                and Innovative Technology Administration, and in 
                subsequent reports issued by the National Academy of 
                Sciences and United States Department of Transportation 
                on transportation and infrastructure; or''.

SEC. 107. AGENCIES SHOULD FUND VITAL R&D PROJECTS WITH THE POTENTIAL 
              FOR COMMERCIALIZATION.

    Section 9(j)(2) of the Small Business Act (15 U.S.C. 638(j)(2)), as 
amended by section 103, is further amended--
            (1) in subparagraph (H) by striking ``and'' at the end;
            (2) in subparagraph (I) by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(J) procedures to ensure that the Administrator, 
                on an annual basis, submits to the Committee on Small 
                Business and the Committee on Science and Technology of 
                the House of Representatives and the Committee on Small 
                Business and Entrepreneurship of the Senate a list 
                identifying each small business concern that, for the 
                period covered by the preceding 5 fiscal years, 
                received 15 or more first phase SBIR awards and no 
                second phase SBIR awards.''.

SEC. 108. FEDERAL AGENCY ENGAGEMENT WITH SBIR AWARDEES THAT HAVE BEEN 
              AWARDED MULTIPLE PHASE ONE AWARDS BUT HAVE NOT BEEN 
              AWARDED PHASE TWO AWARDS.

    Section 9(j) of the Small Business Act (15 U.S.C. 638(j)) is 
amended by adding at the end the following:
            ``(4) Requirements relating to federal agency engagement 
        with certain first phase sbir awardees.--The Administrator 
        shall modify the policy directives issued pursuant to this 
        subsection to provide for each Federal agency required by this 
        section to conduct an SBIR program to engage with SBIR awardees 
        that have been awarded multiple first phase SBIR awards but 
        have not been awarded any second phase SBIR awards and to 
        develop performance metrics to measure awardee progression in 
        the SBIR program.''.

SEC. 109. LIMITATION ON CERTAIN AWARDS.

    Section 9 of the Small Business Act (15 U.S.C. 638) is amended by 
adding at the end the following:
    ``(bb) Subsequent Phases.--
            ``(1) In general.--A small business concern which received 
        an award from a Federal agency under this section shall be 
        eligible to receive an award for a subsequent phase from 
        another Federal agency, if the head of each relevant Federal 
        agency makes a written determination that the topics of the 
        relevant awards are the same.
            ``(2) Crossover between programs.--A small business concern 
        which received an award under this section under the SBIR 
        program or the STTR program may, at the discretion of the 
        granting agency, receive an award under this section for a 
        subsequent phase in either the SBIR program or the STTR 
        program.
            ``(3) Phase ii sbir applications.--An agency may permit an 
        applicant to apply directly for a Phase II award, as described 
        in subsection (e)(4)(B), without first completing a Phase I 
        award, as described in subsection (e)(4)(A), if the applicant 
        can demonstrate that project feasibility was achieved without 
        SBIR or other Federal funding.
            ``(4) Phase ii sttr applications.--An agency may permit an 
        applicant to submit proposals for Phase II awards, as described 
        in subsection (e)(6)(B), without first completing a Phase I 
        award, as described in subsection (e)(6)(A), if the applicant 
        can demonstrate it has accomplished Phase I through cooperative 
        research and development achieved without STTR or other Federal 
        funding.
    ``(cc) Waiver of Minimum Work Requirement.--A Federal agency making 
an SBIR or STTR award under this section may waive the minimum small 
business concern or research institution work requirements under 
subsection (e)(7) if the agency determines that to provide such waiver 
would be consistent with the purposes of this section and consistent 
with achieving the objectives of the award proposal.''.

SEC. 110. COMPTROLLER GENERAL AUDIT OF HOW FEDERAL AGENCIES CALCULATE 
              EXTRAMURAL RESEARCH BUDGETS.

    The Comptroller General of the United States shall carry out a 
detailed audit of how Federal agencies calculate extramural research 
budgets for purposes of calculating the size of the agencies' Small 
Business Innovation Research and Small Business Technology Transfer 
budgets. Not later than 1 year after the date of the enactment of this 
Act, the Comptroller General shall submit to the Committee on Small 
Business and the Committee on Science and Technology of the House of 
Representatives and the Committee on Small Business and 
Entrepreneurship of the Senate a report on the results of the audit.

SEC. 111. PROVIDING EXPLANATIONS TO UNSUCCESSFUL APPLICANTS.

    Section 9 of the Small Business Act (15 U.S.C. 638) is amended by 
adding at the end the following:
    ``(dd) Providing Explanations to Unsuccessful Applicants.--Whenever 
an entity applies for, but does not receive, an award under an SBIR or 
STTR program under this section, the Federal agency conducting the 
program shall--
            ``(1) in a plain and conspicuous manner, notify that entity 
        that it can request an explanation (which must be of a 
        constructive nature) of the reasons why the entity did not 
        receive the award; and
            ``(2) provide such an explanation to that entity, if the 
        entity so requests.''.

             TITLE II--VENTURE CAPITAL INVESTMENT STANDARDS

SEC. 201. ENSURING THAT INNOVATIVE SMALL BUSINESSES WITH SUBSTANTIAL 
              INVESTMENT FROM VENTURE CAPITAL OPERATING COMPANIES ARE 
              ABLE TO PARTICIPATE IN THE SBIR PROGRAM.

    Section 9(e) of the Small Business Act (15 U.S.C. 638(e)) is 
amended by striking ``and'' at the end of paragraph (8), striking the 
period at the end of paragraph (9) and inserting ``; and'', and adding 
at the end the following:
            ``(10) effective only for the SBIR and STTR programs, 
        notwithstanding any other amendment made by the SBIR/STTR 
        Reauthorization Act, the following shall apply:
                    ``(A) A business concern that has more than 500 
                employees shall not qualify as a small business 
                concern.
                    ``(B) 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 
                (or with any other business that the venture capital 
                operating company has financed) if--
                            ``(i) the venture capital operating company 
                        does not own 50 percent or more of the business 
                        concern; and
                            ``(ii) employees of the venture capital 
                        operating company do not constitute a majority 
                        of the board of directors of the business 
                        concern.
                    ``(C) A business concern shall be deemed to be 
                `independently owned and operated' if--
                            ``(i) it is owned in majority part by one 
                        or more natural persons or venture capital 
                        operating companies;
                            ``(ii) there is no single venture capital 
                        operating company that owns 50 percent or more 
                        of the business concern; and
                            ``(iii) there is no single venture capital 
                        operating company the employees of which 
                        constitute a majority of the board of directors 
                        of the business concern.
                    ``(D) If a venture capital operating company 
                controlled by a business with more than 500 employees 
                (in this subparagraph referred to as a `VCOC under 
                large business control') has an ownership interest in a 
                small business concern that is owned in majority part 
                by venture capital operating companies, the small 
                business concern is eligible to receive an award under 
                the SBIR or STTR program only if--
                            ``(i) not more than two VCOCs under large 
                        business control have an ownership interest in 
                        the small business concern;
                            ``(ii) the VCOCs under large business 
                        control do not collectively own more than 20 
                        percent of the small business concern; and
                            ``(iii) the VCOCs under large business 
                        control do not collaborate with each other to 
                        exercise more control over the small business 
                        concern than they could otherwise exercise 
                        individually.
                    ``(E) The term `venture capital operating company' 
                means a business concern--
                            ``(i) that--
                                    ``(I) is a Venture Capital 
                                Operating Company, as that term is 
                                defined in regulations promulgated by 
                                the Secretary of Labor; or
                                    ``(II) is an entity that--
                                            ``(aa) is registered under 
                                        the Investment Company Act of 
                                        1940 (15 U.S.C. 80a-51 et 
                                        seq.); or
                                            ``(bb) is an investment 
                                        company, as defined in section 
                                        3(c)(14) of such Act (15 U.S.C. 
                                        80a-3(c)(14)), which is not 
                                        registered under such Act 
                                        because it is beneficially 
                                        owned by less than 100 persons; 
                                        and
                            ``(ii) that is itself organized or 
                        incorporated and domiciled in the United 
                        States, or is controlled by a business concern 
                        that is incorporated and domiciled in the 
                        United States.''.

                TITLE III--SBIR AND ECONOMIC DEVELOPMENT

SEC. 301. REAUTHORIZATION AND MODERNIZATION OF FEDERAL AND STATE 
              TECHNOLOGY PARTNERSHIP PROGRAM (FAST).

    Section 9 of the Small Business Act (15 U.S.C. 638) is amended by 
inserting after subsection (r) the following:
    ``(s) Outreach and Support Activities.--
            ``(1) In general.--Subject to the other provisions of this 
        subsection, the Administrator shall make grants on a 
        competitive basis to organizations, to be used by the 
        organizations to do one or both of the following:
                    ``(A) To conduct outreach efforts to increase 
                participation in the programs under this section.
                    ``(B) To provide application support and 
                entrepreneurial and business skills support to 
                prospective participants in the programs under this 
                section.
            ``(2) Program authority.--Of the amounts made available to 
        carry out this section for each of fiscal years 2009 through 
        2010, the Administrator may expend not more than $10,000,000 in 
        each such fiscal year to carry out paragraph (1).
            ``(3) Amount of assistance.--For each of subparagraphs (A) 
        and (B) of paragraph (1), the amount of assistance provided to 
        an organization under that subparagraph in any fiscal year--
                    ``(A) shall be equal to the total amount of 
                matching funds from non-Federal sources provided by the 
                organization; and
                    ``(B) shall not exceed $250,000.
            ``(4) Direction.--An organization receiving funds under 
        paragraph (1) shall, in using those funds, direct its 
        activities at one or both of the following:
                    ``(A) Small business concerns located in geographic 
                areas that are underrepresented in the programs under 
                this section.
                    ``(B) Small business concerns owned and controlled 
                by women, small business concerns owned and controlled 
                by service-disabled veterans, and small business 
                concerns owned and controlled by minorities.
            ``(5) Advisory board.--
                    ``(A) Establishment.--Not later than 90 days after 
                the date of the enactment of this subsection, the 
                Administrator shall establish an advisory board for the 
                activities carried out under this subsection.
                    ``(B) Non-applicability of faca.--The Federal 
                Advisory Committee Act (5 U.S.C. App.) shall not apply 
                to the advisory board.
                    ``(C) Members.--The members of the advisory board 
                shall include the following:
                            ``(i) The Administrator (or the 
                        Administrator's designee).
                            ``(ii) For each Federal agency required by 
                        this section to conduct an SBIR program, the 
                        head of the agency (or the designee of the head 
                        of the agency).
                            ``(iii) Representatives of small business 
                        concerns that are current or former recipients 
                        of SBIR awards, or representatives of 
                        organizations of such concerns.
                            ``(iv) Representatives of service providers 
                        of SBIR outreach and assistance, or 
                        representatives of organizations of such 
                        service providers.
                    ``(D) Duties.--The advisory board shall have the 
                following duties:
                            ``(i) To develop guidelines for awards 
                        under paragraph (1)(A), including guidelines 
                        relating to award sizes, proposal requirements, 
                        metrics for monitoring awardee performance, and 
                        metrics for measuring overall value of the 
                        activities carried out by the awardees.
                            ``(ii) To identify opportunities for 
                        coordinated outreach, technical assistance, and 
                        commercialization activities among Federal 
                        agencies, the recipients of the awards under 
                        paragraph (1)(A), and applicants and recipients 
                        of SBIR awards, including opportunities such 
                        as--
                                    ``(I) podcasting or webcasting for 
                                conferences, training workshops, and 
                                other events;
                                    ``(II) shared online resources to 
                                match prospective applicants with the 
                                network of paragraph (1)(A) recipients; 
                                and
                                    ``(III) venture capital conferences 
                                tied to technologies and sectors that 
                                cross agencies.
                            ``(iii) To review and recommend revisions 
                        to activities under paragraph (1)(A).
                            ``(iv) To submit to the Committee on Small 
                        Business and Entrepreneurship of the Senate and 
                        the Committee on Small Business and the 
                        Committee on Science and Technology of the 
                        House of Representatives an annual report on 
                        the activities carried out under paragraph 
                        (1)(A) and the effectiveness and impact of 
                        those activities.
            ``(6) Selection criteria.--In awarding grants under this 
        subsection, the Administrator shall use selection criteria 
        developed by the advisory board established under paragraph 
        (5). The criteria shall include--
                    ``(A) criteria designed to give preference to 
                applicants who propose to carry out activities that 
                will reach either an underperforming geographic area or 
                an underrepresented population group (as measured by 
                the number of SBIR applicants);
                    ``(B) criteria designed to give preference to 
                applicants who propose to carry out activities that 
                complement, and are integrated into, the existing 
                public-private innovation support system for the 
                targeted region or population;
                    ``(C) criteria designed to give preference to 
                applicants who propose to measure the effectiveness of 
                the proposed activities; and
                    ``(D) criteria designed to give preference to 
                applicants who include an SBDC program that is 
                accredited for its technology services.
            ``(7) Peer review.--In awarding grants under this 
        subsection, the Administrator shall use a peer review process. 
        Reviewers shall include--
                    ``(A) SBIR program managers for agencies required 
                by this section to conduct SBIR programs; and
                    ``(B) private individuals and organizations that 
                are knowledgeable about SBIR, the innovation process, 
                technology commercialization, and State and regional 
                technology-based economic development programs.
            ``(8) Per-state limitations.--
                    ``(A) In general.--To be eligible to receive a 
                grant under this subsection, the applicant must have 
                the written endorsement of the Governor of the State 
                where the targeted regions or populations are located 
                (if the regions or populations are located in more than 
                one State, the applicant must have the written 
                endorsement of the Governor of each such State). Such 
                an endorsement must indicate that the Governor will 
                ensure that the activities to be carried out under the 
                grant will be integrated with the balance of the 
                State's portfolio of investments to help small business 
                concerns commercialize technology.
                    ``(B) Limitation.--Each fiscal year, a Governor may 
                have in effect not more than one written endorsement 
                for a grant under paragraph (1)(A), and not more than 
                one written endorsement for a grant under paragraph 
                (1)(B).
            ``(9) Specific requirements for fast awards.--In making 
        awards under paragraph (1)(A) (to be known as `FAST' awards) 
        the Administrator shall ensure the following:
                    ``(A) Goals.--Priority shall be given applications 
                that address one or more of the following goals:
                            ``(i) Increasing the number of SBIR 
                        applications from underperforming geographic 
                        areas (as measured by the number of SBIR 
                        applicants).
                            ``(ii) Increasing the number of SBIR 
                        applications from underrepresented population 
                        groups (as measured by the number of SBIR 
                        applicants).
                    ``(B) Duration.--Each award shall be for a period 
                of 2 fiscal years. The Administrator shall establish 
                rules and performance goals for the disbursement of 
                funds for the second fiscal year, and funds shall not 
                be disbursed to a recipient for such a fiscal year 
                until after the advisory board established under this 
                subsection has determined that the recipient is in 
                compliance with the rules and performance goals.''.

SEC. 302. OBTAINING SBIR APPLICANT'S CONSENT TO RELEASE CONTACT 
              INFORMATION TO ECONOMIC DEVELOPMENT ORGANIZATIONS.

    Section 9 of the Small Business Act (15 U.S.C. 638) is amended in 
subsection (s) (as added by this title) by adding at the end the 
following:
            ``(5) Consent to release contact information to 
        organizations.--
                    ``(A) Enabling concern to give consent.--Each 
                Federal agency required by this section to conduct an 
                SBIR program shall enable a small business concern that 
                is an SBIR applicant to indicate to the agency whether 
                the agency has its consent to--
                            ``(i) identify the concern to appropriate 
                        local and State-level economic development 
                        organizations as an SBIR applicant; and
                            ``(ii) release the concern's contact 
                        information to such organizations.
                    ``(B) Rules.--The Administrator shall establish 
                rules to implement this paragraph. The rules shall 
                include a requirement that the agency include in its 
                SBIR application forms a provision through which the 
                applicant can indicate consent for purposes of 
                subparagraph (A).''.

     TITLE IV--ADVANCING COMMERCIALIZATION OF SBIR-FUNDED RESEARCH

SEC. 401. CLARIFYING THE DEFINITION OF ``PHASE THREE''.

    Section 9(e) of the Small Business Act (15 U.S.C. 638(e)) is 
amended--
            (1) in paragraph (4)(C)--
                    (A) in the matter preceding clause (i) by inserting 
                after ``a third phase'' the following: ``, which shall 
                consist of work that derives from, extends, or 
                logically concludes efforts performed under prior SBIR 
                funding agreements (which may be referred to as `Phase 
                III')''; and
                    (B) in clause (i) by inserting after ``non-SBIR 
                Federal funding awards'' the following: ``: Provided, 
                That for purposes of this clause, such sources of 
                capital and such funding awards include private 
                investment, private research, development, testing, and 
                evaluation (RDT&E) awards, private sales or licenses, 
                government RDT&E contracts and awards, and government 
                sales'';
            (2) in paragraph (8) by striking ``and'' at the end;
            (3) in paragraph (9) by striking the period at the end and 
        inserting ``; and''; and
            (4) by adding at the end the following:
            ``(10) the term `commercialization' means the process of 
        developing marketable products or services and producing and 
        delivering products or services for sale (whether by the 
        originating party or by others) to government or commercial 
        markets.''.

SEC. 402. AGENCY RESEARCH GOALS.

    Section 9 of the Small Business Act (15 U.S.C. 638) is amended by 
striking subsection (h) and inserting the following:
    ``(h) Agency Research Goals.--
            ``(1) In general.--In addition to the requirements of 
        subsection (f), each Federal agency that is required by this 
        section to have an SBIR program and that awards annually 
        $5,000,000,000 or more in procurement contracts shall, 
        effective for fiscal year 2009 and each fiscal year thereafter, 
        establish annual goals for commercialization of projects funded 
        by SBIR awards.
            ``(2) Specific goals.--The goals required by paragraph (1) 
        shall include specific goals for each of the following:
                    ``(A) The percentage of SBIR projects that receive 
                funding for the third phase (as defined in subsection 
                (e)(4)(C)).
                    ``(B) The percentage of SBIR projects that are 
                successfully integrated into a program of record.
                    ``(C) The amount of Federal dollars received by 
                SBIR projects through Federal contracts, not including 
                dollars received through the SBIR program.
            ``(3) Submission to advisory board.--For each fiscal year 
        for which goals are required by paragraph (1), the agency shall 
        submit to the agency's SBIR advisory board--
                    ``(A) not later than 60 days after the beginning of 
                the fiscal year, the goals; and
                    ``(B) not later than 90 days after the end of the 
                fiscal year, data on the extent to which the goals were 
                met and a description of the methodology used to 
                collect that data.''.

SEC. 403. EXPRESS AUTHORITY FOR AN AGENCY TO AWARD SEQUENTIAL PHASE TWO 
              AWARDS FOR SBIR-FUNDED PROJECTS.

    Section 9(j) of the Small Business Act (15 U.S.C. 638(j)) is 
amended by adding after paragraph (4) (as added by section 109) the 
following:
            ``(5) Requirements relating to additional second phase sbir 
        awards.--The Administrator shall modify the policy directives 
        issued pursuant to this subsection to provide the following:
                    ``(A) A small business concern that receives a 
                second phase SBIR award for a project remains eligible 
                to receive additional second phase SBIR awards.
                    ``(B) Agencies are expressly authorized to provide 
                additional second phase SBIR awards for testing and 
                evaluation assistance for the insertion of SBIR 
                technologies into technical or weapons systems.
                    ``(C) Each agency that is required by subsection 
                (aa) to have an SBIR advisory board shall include in 
                the quarterly reports submitted under subsection (g)(8) 
                the number of projects that have received additional 
                second phase SBIR awards and the total dollar amount of 
                those additional second phase SBIR awards.''.

SEC. 404. INCREASED PARTNERSHIPS BETWEEN SBIR AWARDEES AND PRIME 
              CONTRACTORS, VENTURE CAPITAL INVESTMENT COMPANIES, AND 
              LARGER BUSINESSES.

    Section 9(j) of the Small Business Act (15 U.S.C. 638(j)) is 
amended by adding after paragraph (5) (as added by section 403) the 
following:
            ``(6) Increased partnerships.--
                    ``(A) In general.--Each agency required by this 
                section to conduct an SBIR program shall establish 
                initiatives by which the agency encourages partnerships 
                between SBIR awardees and prime contractors, venture 
                capital investment companies, business incubators, and 
                larger businesses, for the purpose of facilitating the 
                progress of the SBIR awardees to the third phase. If 
                the agency is required by subsection (aa) to have an 
                SBIR advisory board, the advisory board shall include 
                in each report submitted under subsection (aa) a 
                description of the initiatives established and an 
                assessment of the effectiveness of such initiatives.
                    ``(B) Definition.--In this paragraph, the term 
                `business incubator' means an entity that provides 
                coordinated and specialized services to entrepreneurial 
                businesses which meet selected criteria during the 
                businesses' startup phases, including providing 
                services such as shared office space and office 
                services, access to equipment, access to 
                telecommunications and technology services, flexible 
                leases, specialized management assistance, access to 
                financing, mentoring and training services, or other 
                coordinated business or technical support services 
                designed to provide business development assistance to 
                entrepreneurial businesses during these businesses' 
                startup phases.''.

SEC. 405. EXPRESS AUTHORITY TO ``FAST-TRACK'' PHASE TWO AWARDS FOR 
              PROMISING PHASE ONE RESEARCH.

    Section 9(j)(2)(G) of the Small Business Act (15 U.S.C. 
638(j)(2)(G)) is amended by inserting before the semicolon at the end 
the following: ``, and to encourage agencies to develop `fast-track' 
programs to eliminate that delay by issuing second phase SBIR awards as 
soon as practicable, including in appropriate cases simultaneously with 
the issuance of the first phase SBIR award''.

SEC. 406. COMMERCIALIZATION PROGRAMS.

    Section 9(j) of the Small Business Act (15 U.S.C. 638(j)) is 
amended by adding after paragraph (6) (as added by section 404) the 
following:
            ``(7) Commercialization programs.--Each agency required by 
        this section to conduct an SBIR program shall establish a 
        commercialization program that supports the progress of SBIR 
        awardees to the third phase. The commercialization program may 
        include activities such as partnership databases, partnership 
        conferences, multiple second phases, mentoring between prime 
        contractors and SBIR awardees, multiple second phases with 
        matching private investment requirements, jumbo awards, SBIR 
        helpdesks, and transition assistance programs. The agency shall 
        include in its annual report an analysis of the various 
        activities considered for inclusion in the commercialization 
        program and a statement of the reasons why each activity 
        considered was included or not included, as the case may be. If 
        the agency is required by subsection (aa) to have an SBIR 
        advisory board, the advisory board shall include in each report 
        under subsection (aa) a statement identifying the number of 
        SBIR awardees that successfully progressed to the third phase.
            ``(8) Funding for commercialization programs.--
                    ``(A) In general.--From amounts made available to 
                carry out this paragraph, the Administrator may, on 
                petition by agencies required by this section to 
                conduct an SBIR program, transfer funds to such 
                agencies to support the commercialization programs of 
                such agencies.
                    ``(B) Petitions.--The Administrator shall establish 
                rules for making transfers under subparagraph (A). The 
                initial set of rules shall be promulgated not later 
                than 90 days after the date of the enactment of this 
                paragraph.
                    ``(C) Authorization of appropriations.--There is 
                authorized to be appropriated to the Administrator to 
                carry out this paragraph $27,500,000 for fiscal year 
                2009 and each fiscal year thereafter.
                    ``(D) Minority institution pilot program.--
                            ``(i) Establishment.--From amounts made 
                        available to carry out this subparagraph, the 
                        Administrator shall establish and carry out a 
                        pilot program to make grants to minority 
                        institutions that partner with nonprofit 
                        organizations that have experience developing 
                        relationships between industry, minority 
                        institutions, and other entities, for the 
                        purpose of increasing the number of SBIR and 
                        STTR program applications by minority-owned 
                        small businesses.
                            ``(ii) Application.--To be eligible to 
                        receive a grant under the pilot program 
                        established in clause (i), a minority 
                        institution shall submit an application to the 
                        Administrator at such time, in such manner, and 
                        containing such information and assurances as 
                        the Administrator may require.
                            ``(iii) Matching requirement.--As a 
                        condition of a grant under the pilot program, 
                        the Administrator shall require that a matching 
                        amount be provided from a source other than the 
                        Federal Government that is equal to the amount 
                        of the grant.
                            ``(iv) Minority institution.--In this 
                        subparagraph, the term `minority institution' 
                        has the meaning given that term in section 
                        365(3) of the Higher Education Act of 1965 (20 
                        U.S.C. 1067k(3)).
                            ``(v) Funding.--For each of fiscal years 
                        2009 through 2012, of the amounts appropriated 
                        pursuant to the authorization of appropriations 
                        in subparagraph (C), up to $4,000,000 shall be 
                        available to carry out this subparagraph.
            ``(9) Funding limitation.--For payment of expenses incurred 
        to administer the commercialization programs described in 
        paragraphs (7) and (8), the head of the agency may use not more 
        than an amount equal to 1 percent of the funds available to the 
        agency pursuant to the Small Business Innovation Research 
        program. Such funds--
                    ``(A) shall not be subject to the limitations on 
                the use of funds in subsection (f)(2); and
                    ``(B) shall not be used for the purpose of funding 
                costs associated with salaries and expenses of 
                employees of the United States Government.''.

SEC. 407. REPORT ON EFFORTS TO ENHANCE MANUFACTURING ACTIVITIES.

    Section 9(j) of the Small Business Act (15 U.S.C. 638(j)) is 
amended by adding after paragraph (9) (as added by section 406) the 
following:
            ``(10) Efforts to enhance manufacturing activities.--If an 
        agency is required by subsection (aa) to have an SBIR advisory 
        board, the advisory board shall include in each report under 
        subsection (aa) a part relating to efforts to enhance 
        manufacturing activities, which shall include--
                    ``(A) a comprehensive description of the actions 
                undertaken each year by the SBIR and STTR programs of 
                that agency in support of Executive Order No. 13329;
                    ``(B) an assessment of the effectiveness of such 
                actions toward enhancing the research and development 
                of manufacturing technologies and processes; and
                    ``(C) any recommendations that the program managers 
                of the SBIR and STTR programs consider appropriate for 
                additional actions to be undertaken in order to 
                increase the effectiveness toward enhancing 
                manufacturing activities within the defense industrial 
                base.''.

                TITLE V--SUPPORTING PROGRAM UTILIZATION

SEC. 501. AGENCY DATABASES TO SUPPORT PROGRAM EVALUATION.

    Section 9(k) of the Small Business Act (15 U.S.C. 638(k)) is 
amended--
            (1) in paragraph (2)(A)--
                    (A) by striking ``and'' at the end of clause (ii);
                    (B) by inserting ``and'' at the end of clause 
                (iii); and
                    (C) by adding at the end the following new clause:
                            ``(iv) information on the ownership 
                        structure of award recipients, both at the time 
                        of receipt of the award and upon completion of 
                        the award period;'';
            (2) by amending paragraph (3) to read as follows:
            ``(3) Updating information for database.--
                    ``(A) In general.--A Federal agency shall not make 
                a Phase I or Phase II payment to a small business 
                concern under this section unless the small business 
                concern has provided all information required under 
                this subsection with respect to the award under which 
                the payment is made, and with respect to any other 
                award under this section previously received by the 
                small business concern or a predecessor in interest to 
                the small business concern.
                    ``(B) Apportionment.--In complying with this 
                paragraph, a small business concern may apportion sales 
                or additional investment information relating to more 
                than one second phase award among those awards, if it 
                notes the apportionment for each award.
                    ``(C) Annual updates upon termination.--A small 
                business concern receiving an award under this section 
                shall--
                            ``(i) in the case of a second phase award, 
                        update information in the databases required 
                        under paragraphs (2) and (6) concerning that 
                        award at the termination of the award period;
                            ``(ii) in the case of award recipients not 
                        described in clause (iii), be requested to 
                        voluntarily update such information annually 
                        thereafter for a period of 5 years; and
                            ``(iii) in the case of a small business 
                        concern applying for a subsequent first phase 
                        or second phase award, be required to update 
                        such information annually thereafter for a 
                        period of 5 years.''; and
            (3) by adding at the end the following new paragraph:
            ``(6) Agency program evaluation databases.--Each Federal 
        agency required to establish an SBIR or STTR program under this 
        section shall develop and maintain, for the purpose of 
        evaluating such programs, a database containing information 
        required to be contained in the database under paragraph (2). 
        Each such database shall be designed to be accessible to other 
        agencies that are required to maintain a database under this 
        paragraph.''.

SEC. 502. AGENCY DATABASES TO SUPPORT TECHNOLOGY UTILIZATION.

    Section 9(k) of the Small Business Act (15 U.S.C. 638(k)), as 
amended by this Act, is further amended by adding at the end the 
following new paragraph:
            ``(7) Agency databases to support technology utilization.--
        Each Federal agency with an SBIR or STTR program shall create 
        and maintain a technology utilization database, which shall be 
        available to the public and shall contain data supplied by the 
        award recipients specifically to help them attract customers 
        for the products and services generated under the SBIR or STTR 
        project, and to attract additional investors and business 
        partners. Each database created under this paragraph shall 
        include information on the other databases created under this 
        paragraph by other Federal agencies. Participation in a 
        database under this paragraph shall be voluntary, except that 
        such participation is required of all award recipients who 
        received supplemental payments from SBIR and STTR program funds 
        above their initial Phase II award.''.

SEC. 503. INTERAGENCY POLICY COMMITTEE.

    (a) Establishment.--The Director of the Office of Science and 
Technology Policy shall establish an Interagency SBIR/STTR Policy 
Committee comprised of one representative from each Federal agency with 
an SBIR program.
    (b) Cochairs.--The Director of the Office of Science and Technology 
Policy and the Director of the National Institute of Standards and 
Technology shall jointly chair the Interagency Policy Committee.
    (c) Duties.--The Interagency 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)(1) and (2) of the Small Business Act (15 U.S.C. 
        638(k)(1) and (2)).
            (2) Federal agency flexibility in establishing Phase I and 
        II award sizes, and appropriate criteria to exercise such 
        flexibility.
            (3) Commercialization assistance best practices in 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 business concerns face after Phase II but before 
        commercialization.
    (d) Reports.--The Interagency Policy Committee shall transmit to 
the Committee on Science 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 (c)(1) not later than 1 year after the date of 
        enactment of this Act;
            (2) a report on its review and recommendations under 
        subsection (c)(2) not later than 18 months after the date of 
        enactment of this Act; and
            (3) a report on its review and recommendations under 
        subsection (c)(3) not later than 2 years after the date of 
        enactment of this Act.

SEC. 504. NANOTECHNOLOGY-RELATED RESEARCH TOPICS.

    (a) SBIR.--Section 9(g)(3) of the Small Business Act (15 U.S.C. 
638(g)(3)), as amended by section 107, is further amended by adding at 
the end the following new subparagraph:
                    ``(F) the national nanotechnology strategic plan 
                required under section 2(c)(4) of the 21st Century 
                Nanotechnology Research and Development Act (15 U.S.C. 
                7501(c)(4)) and in subsequent reports issued by the 
                National Science and Technology Council Committee on 
                Technology, focusing on areas of nanotechnology 
                identified in such plan;''.
    (b) STTR.--Section 9(o)(1) of the Small Business Act (15 U.S.C. 
638(o)(1)) is amended by inserting ``, giving special consideration to 
topics that further 1 or more critical technologies, as identified by 
the national nanotechnology strategic plan required under section 
2(c)(4) of the 21st Century Nanotechnology Research and Development Act 
(15 U.S.C. 7501(c)(4)) and in subsequent reports issued by the National 
Science and Technology Council Committee on Technology, focusing on 
areas of nanotechnology identified in such plan'' after ``its STTR 
program''.

SEC. 505. RURAL PREFERENCE.

    Section 9 of the Small Business Act (15 U.S.C. 638) is amended by 
adding at the end the following new subsection:
    ``(dd) Rural Preference.--In making awards under this section, 
Federal agencies shall give priority to applications so as to increase 
the number of SBIR and STTR award recipients from rural areas.''.

SEC. 506. PRIORITY FOR AREAS THAT HAVE LOST A MAJOR SOURCE OF 
              EMPLOYMENT.

    Section 9 of the Small Business Act (15 U.S.C. 638) is amended by 
adding at the end the following:
    ``(ee) Priority for Areas That Have Lost a Major Source of 
Employment.--In making awards under this section, Federal agencies 
shall give priority to applications from companies located in 
geographic areas that, as determined by the Administrator, have lost a 
major source of employment. Not later than 90 days after the date of 
the enactment of this subsection, the Administrator shall promulgate 
rules for making the determination required by this subsection.''.

SEC. 507. VETERANS PREFERENCE.

    Section 9 of the Small Business Act (15 U.S.C. 638) is further 
amended by adding at the end the following:
    ``(ff) Veterans Preference.--In making awards under this section, 
Federal agencies shall give priority to applications from veterans, as 
defined in section 101(2) of title 38, United States Code, so as to 
increase the number of SBIR and STTR award recipients who are 
veterans.''.

SEC. 508. INITIATIVE TO PUBLICIZE THE SBIR PROGRAM TO VETERANS.

    The Administrator of the Small Business Administration, in 
consultation with the Secretary of Veterans Affairs, shall develop an 
initiative to publicize the SBIR program to veterans returning from 
service and encourage those veterans with applicable technical skills 
to apply for SBIR grants.

SEC. 509. PREFERENCE FOR ORGANIZATIONS THAT ARE MAKING SIGNIFICANT 
              CONTRIBUTIONS TOWARDS ENERGY EFFICIENCY.

    Section 9 of the Small Business Act (15 U.S.C. 638) is further 
amended by adding at the end the following:
    ``(ff) Preference for Organizations That Are Making Significant 
Contributions Towards Energy Efficiency.--In making awards under this 
section, Federal agencies shall give priority to applications so as to 
increase the number of SBIR, STTR, and FAST award recipients from 
organizations that are making significant contributions towards energy 
efficiency, including organizations that are making efforts to reduce 
their carbon footprint or are carbon neutral.''.

                        TITLE VI--IMPLEMENTATION

SEC. 601. CONFORMING AMENDMENTS TO THE SBIR AND STTR POLICY DIRECTIVES.

    Not later than 180 days after the date of enactment of this Act, 
the Administrator of the Small Business Administration shall promulgate 
amendments to the SBIR and the STTR Policy Directives to conform such 
directives to this Act and the amendments made by this Act.

SEC. 602. NATIONAL RESEARCH COUNCIL SBIR STUDY.

    Section 108(d) of the Small Business Reauthorization Act of 2000 is 
amended--
            (1) by striking ``of the Senate'' and all that follows 
        through ``not later than 3'' and inserting ``of the Senate, not 
        later than 3''; and
            (2) by striking ``; and'' and all that follows through 
        ``update of such report''.

SEC. 603. SBIR AWARDEE BUSINESS OPERATIONS.

    Section 9 of the Small Business Act is further amended by adding at 
the end the following:
    ``(ee) SBIR Awardee Business Operations.--
            ``(1) In general.--To be eligible to receive an SBIR award, 
        an awardee must have its primary business operations in the 
        United States.
            ``(2) Definition.--In this subsection, the term `United 
        States' includes the District of Columbia, the Commonwealth of 
        Puerto Rico, and any other territory or possession of the 
        United States.''.

SEC. 604. PROHIBITION OF AWARDS TO ALIENS UNLAWFULLY PRESENT IN THE 
              UNITED STATES.

    Section 9 of the Small Business Act is amended by adding at the end 
the following:
    ``(ee) Prohibition of Awards to Aliens Unlawfully Present in the 
United States.--A concern is not eligible to receive an award under 
this section if an individual who is an alien unlawfully present in the 
United States--
            ``(1) has an ownership interest in that concern; or
            ``(2) has an ownership interest in another concern that 
        itself has an ownership interest in that concern.''.

SEC. 605. PROHIBITION ON AWARDS TO FIRMS IN VIOLATION OF IMMIGRATION 
              LAWS.

    Any applicant found, based on a determination by the Secretary of 
Homeland Security or the Attorney General to have engaged in a pattern 
or practice of hiring, recruiting or referring for a fee, for 
employment in the United States an alien knowing the person is an 
unauthorized alien shall not be eligible for the receipt of future 
awards under section 9 of the Small Business Act.

            Passed the House of Representatives April 23, 2008.

            Attest:

                                            LORRAINE C. MILLER,

                                                                 Clerk.
```