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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 1373 Introduced in Senate (IS)]

110th CONGRESS
  1st Session
                                S. 1373

     To provide grants and loan guarantees for the development and 
 construction of science parks to promote the clustering of innovation 
                  through high technology activities.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              May 11, 2007

   Mr. Pryor introduced the following bill; which was read twice and 
   referred to the Committee on Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL

 
     To provide grants and loan guarantees for the development and 
 construction of science parks to promote the clustering of innovation 
                  through high technology activities.

    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 ``Building a Stronger America Act''.

SEC. 2. DEVELOPMENT OF SCIENCE PARKS.

    (a) Finding.--Section 2 of the Stevenson-Wydler Technology 
Innovation Act of 1980 (15 U.S.C. 3701) is amended by adding at the end 
the following:
            ``(12) It is in the best interests of the Nation to 
        encourage the formation of science parks to promote the 
        clustering of innovation through high technology activities.''.
    (b) Definition.--Section 4 of such Act (15 U.S.C. 3703) is amended 
by adding at the end the following:
            ``(14) `Business or industrial park' means a primarily for-
        profit real estate venture of businesses or industries which do 
        not necessarily reinforce each other through supply chain or 
        technology transfer mechanisms.
            ``(15) `Science park'--
                    ``(A) means a group of interrelated companies and 
                institutions, including suppliers, service providers, 
                institutions of higher education, start-up incubators, 
                and trade associations that--
                            ``(i) cooperate and compete with each 
                        other;
                            ``(ii) are located in a specific area or 
                        region that promotes real estate development, 
                        technology transfer, and partnerships between 
                        such companies and institutions;
                    ``(B) includes a science park, research park, 
                technology park, research and development park, 
                research and technology park, and science and 
                technology park; and
                    ``(C) does not include a business or industrial 
                park.
            ``(16) `Science park infrastructure' means facilities that 
        support the daily economic activity of a science park.''.
    (c) Science Parks.--The Stevenson-Wydler Technology Innovation Act 
of 1980 (15 U.S.C. 3701 et seq.) is amended by adding at the end the 
following:

``SEC. 24. SCIENCE PARKS.

    ``(a) Development of Plans for Construction of Science Parks.--
            ``(1) In general.--The Secretary shall award grants for the 
        development of feasibility studies and plans for the 
        construction of new or expansion of existing science parks.
            ``(2) Limitation on amount of grants.--The amount of a 
        grant awarded under this subsection may not exceed $750,000.
            ``(3) Award.--
                    ``(A) Competition required.--The Secretary shall 
                award any grant under this subsection pursuant to a 
                full and open competition.
                    ``(B) Geographic dispersion.--The Secretary is 
                encouraged to divide the grants awarded under this 
                subsection among low, medium, and high population 
                density States.
                    ``(C) Advertising.--The Secretary shall advertise 
                any competition under this paragraph in the Commerce 
                Business Daily.
                    ``(D) Selection criteria.--The Secretary shall 
                publish the criteria to be utilized in any competition 
                under this paragraph for the selection of recipients of 
                grants under this subsection, which shall include 
                requirements relating to--
                            ``(i) the number of jobs to be created at 
                        the science park each year during its first 5 
                        years;
                            ``(ii) the funding to be required to 
                        construct or expand the science park during its 
                        first 5 years;
                            ``(iii) the amount and type of cost 
                        matching by the applicant;
                            ``(iv) the types of businesses and research 
                        entities expected in the science park and 
                        surrounding community;
                            ``(v) letters of intent by businesses and 
                        research entities to locate in the science 
                        park;
                            ``(vi) the expansion capacity of the 
                        science park during a 25-year period;
                            ``(vii) the quality of life at the science 
                        park for employees at the science park;
                            ``(viii) the capability to attract a well 
                        trained workforce to the science park;
                            ``(ix) the management of the science park;
                            ``(x) expected risks in the construction 
                        and operation of the science park;
                            ``(xi) risk mitigation;
                            ``(xii) transportation and logistics;
                            ``(xiii) physical infrastructure, including 
                        telecommunications; and
                            ``(xiv) ability to collaborate with other 
                        science parks throughout the world.
            ``(4) Authorization of appropriations.--There are 
        authorized to be appropriated $7,500,000 for each of the fiscal 
        years 2008 through 2012 to carry out this subsection.
    ``(b) Loan Guarantees for Science Park Infrastructure.--
            ``(1) In general.--The Secretary may guarantee up to 80 
        percent of the loan amount for loans exceeding $10,000,000 for 
        projects for the construction of science park infrastructure.
            ``(2) Limitations on guarantee amounts.--The maximum amount 
        of loan principal guaranteed under this subsection may not 
        exceed--
                    ``(A) $50,000,000 with respect to any single 
                project; and
                    ``(B) $500,000,000 with respect to all projects.
            ``(3) Selection of guarantee recipients.--The Secretary 
        shall select recipients of loan guarantees under this 
        subsection based upon the ability of the recipient to 
        collateralize the loan amount through bonds, equity, property, 
        and other such criteria as the Secretary shall prescribe. 
        Entities receiving a grant under subsection (a) are not 
        eligible for a loan guarantee during the period of such grant.
            ``(4) Terms and conditions for loan guarantees.--The loans 
        guaranteed under this subsection shall be subject to such terms 
        and conditions as the Secretary may prescribe, except that--
                    ``(A) the final maturity of such loans made or 
                guaranteed may not exceed the lesser of--
                            ``(i) 30 years and 32 days; or
                            ``(ii) 90 percent of the useful life of any 
                        physical asset to be financed by such loan;
                    ``(B) a loan made or guaranteed under this 
                subsection may not be subordinated to another debt 
                contracted by the borrower or to any other claims 
                against the borrowers in the case of default;
                    ``(C) a loan may not be guaranteed under this 
                subsection unless the Secretary determines that the 
                lender is responsible and that adequate provision is 
                made for servicing the loan on reasonable terms and 
                protecting the financial interest of the United States;
                    ``(D) a loan may not be guaranteed under this 
                subsection if--
                            ``(i) the income from such loan is excluded 
                        from gross income for purposes of chapter 1 of 
                        the Internal Revenue Code of 1986; or
                            ``(ii) the guarantee provides significant 
                        collateral or security, as determined by the 
                        Secretary, for other obligations the income 
                        from which is so excluded;
                    ``(E) any guarantee provided under this subsection 
                shall be conclusive evidence that--
                            ``(i) the guarantee has been properly 
                        obtained;
                            ``(ii) the underlying loan qualified for 
                        such guarantee; and
                            ``(iii) absent fraud or material 
                        misrepresentation by the holder, the guarantee 
                        is presumed to be valid, legal, and 
                        enforceable;
                    ``(F) the Secretary shall prescribe explicit 
                standards for use in periodically assessing the credit 
                risk of new and existing direct loans or guaranteed 
                loans;
                    ``(G) the Secretary may not extend credit 
                assistance unless the Secretary has determined that 
                there is a reasonable assurance of repayment; and
                    ``(H) new loan guarantees may not be committed 
                except to the extent that appropriations of budget 
                authority to cover their costs are made in advance, as 
                required under section 504 of the Federal Credit Reform 
                Act of 1990 (2 U.S.C. 661c).
            ``(5) Payment of losses.--
                    ``(A) In general.--If, as a result of a default by 
                a borrower under a loan guaranteed under this 
                subsection, after the holder has made such further 
                collection efforts and instituted such enforcement 
                proceedings as the Secretary may require, the Secretary 
                determines that the holder has suffered a loss, the 
                Secretary shall pay to such holder the percentage of 
                such loss specified in the guarantee contract. Upon 
                making any such payment, the Secretary shall be 
                subrogated to all the rights of the recipient of the 
                payment. The Secretary shall be entitled to recover 
                from the borrower the amount of any payments made 
                pursuant to any guarantee entered into under this 
                section.
                    ``(B) Enforcement of rights.--The Attorney General 
                shall take such action as may be appropriate to enforce 
                any right accruing to the United States as a result of 
                the issuance of any guarantee under this section.
                    ``(C) Forbearance.--Nothing in this section may be 
                construed to preclude any forbearance for the benefit 
                of the borrower which may be agreed upon by the parties 
                to the guaranteed loan and approved by the Secretary, 
                if budget authority for any resulting subsidy costs (as 
                defined under the Federal Credit Reform Act of 1990) is 
                available.
                    ``(D) Management of property.--Notwithstanding any 
                other provision of law relating to the acquisition, 
                handling, or disposal of property by the United States, 
                the Secretary may complete, recondition, reconstruct, 
                renovate, repair, maintain, operate, or sell any 
                property acquired by the Secretary pursuant to the 
                provisions of this section.
            ``(6) Review.--The Comptroller General of the United States 
        shall, not later than 2 years after the date of the enactment 
        of this section--
                    ``(A) conduct a review of the subsidy estimates for 
                the loan guarantees under this subsection; and
                    ``(B) submit to Congress a report on the review 
                conducted under this paragraph.
            ``(7) Termination.--A loan may not be guaranteed under this 
        subsection after September 30, 2012.
            ``(8) Authorization of appropriations.--There are 
        authorized to be appropriated--
                    ``(A) $35,000,000 for the cost, as defined in 
                section 502(5) of the Federal Credit Reform Act of 
                1990, of guaranteeing $500,000,000 of loans under this 
                subsection; and
                    ``(B) $6,000,000 for administrative expenses for 
                fiscal year 2008, and such sums as necessary for 
                administrative expenses in subsequent years.
    ``(c) National Academy of Sciences Evaluation.--
            ``(1) In general.--The Secretary shall enter into an 
        agreement with the National Academy of Sciences under which the 
        Academy shall evaluate, every 3 years, the activities under 
        this section.
            ``(2) Tri-annual report.--Under the agreement entered into 
        under paragraph (1), the Academy shall submit to the Secretary 
        a report on its evaluation of science park development under 
        that paragraph. Each report may include such recommendations as 
        the Academy considers appropriate for additional activities to 
        promote and facilitate the development of science parks in the 
        United States.
    ``(d) Tri-Annual Report.--Not later than March 31 of every third 
year, the Secretary shall submit to Congress a report on the activities 
under this section during the preceding 3 years, including any 
recommendations made by the National Academy of Sciences under 
subsection (c)(2) during such period. Each report may include such 
recommendations for legislative or administrative action as the 
Secretary considers appropriate to further promote and facilitate the 
development of science parks in the United States.
    ``(e) Rulemaking.--Not later than 1 year after the date of the 
enactment of this section, the Secretary shall prescribe regulations to 
carry out this section in accordance with Office of Management and 
Budget Circular A-129, `Policies for Federal Credit Programs and Non-
Tax Receivables'.''.
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