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 con-
cerned 
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 or-
dered to be printed 
[For text of introduced bill, see copy of bill as introduced on March 17, 2016] 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Commercializing on 
Small Business Innovation Act of 2016’’. 
SEC. 2. EXTENSION OF TERMINATION DATES. 
(a) SBIR.—Section 9(m) of the Small Business Act 
(15 U.S.C. 638(m)) is amended by striking ‘‘2017’’ and in-
serting ‘‘2022’’. 
(b) STTR.—Section 9(n)(1)(A) of the Small Business 
Act (15 U.S.C. 638(n)(1)(A)) is amended by striking 
‘‘2017’’ and inserting ‘‘2022’’. 
(c) ADMINISTRATIVE FUNDING.—Section 9(mm)(1) of 
the Small Business Act (15 U.S.C. 638(mm)(1)) is amended 
by striking ‘‘2017’’ and inserting ‘‘2022’’. 
SEC. 3. REQUIRED EXPENDITURE AMOUNTS. 
(a) SBIR.—Section 9(f)(1) of the Small Business Act 
(15 U.S.C. 638(f)(1)) is amended— 
(1) in subparagraph (H), by striking the ‘‘and’’ 
at the end; 
(2) in subparagraph (I), by striking ‘‘and each 
fiscal year thereafter,’’ and inserting a semicolon; and 
(3) by inserting after subparagraph (I) the fol-
lowing new subparagraphs: 
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‘‘(J) not less than 3.46 percent of such 
budget in fiscal year 2018; 
‘‘(K) not less than 3.72 percent of such 
budget in fiscal year 2019; 
‘‘(L) not less than 3.98 percent of such 
budget in fiscal year 2020; 
‘‘(M) not less than 4.24 percent of such 
budget in fiscal year 2021; and 
‘‘(N) not less than 4.50 percent of such 
budget in fiscal year 2022 and each fiscal year 
thereafter,’’. 
(b) STTR.—Section 9(n)(1)(B) of the Small Business 
Act (15 U.S.C. 638(n)(1)(B)) is amended— 
(1) in clause (iv), by striking the ‘‘and’’ at the 
end; 
(2) in clause (v), by striking ‘‘for fiscal year 
2016 and each fiscal year thereafter.’’ and inserting 
‘‘for each of fiscal years 2016 and 2017;’’ ; and 
(3) by adding at the end the following new 
clauses: 
‘‘(vi) 0.50 percent for each of fiscal 
years 2018 and 2019; 
‘‘(vii) 0.55 percent for each of fiscal 
years 2020 and 2021; and 
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‘‘(viii) 0.60 percent for fiscal year 
2022 and each fiscal year thereafter.’’. 
SEC. 4. REPORTING REQUIREMENTS. 
(a) ANNUAL REPORT TO CONGRESS.—Section 9(b)(7) 
of the Small Business Act (15 U.S.C. 638(b)(7)) is amended 
by striking ‘‘to report not less than annually’’ and inserting 
‘‘to submit a report not later than December 31 of each 
year’’. 
(b) ANNUAL REPORTS TO THE ADMINISTRATOR RE-
QUIRED TO BE SUBMITTED NOT LATER THAN MARCH 30 
OF EACH YEAR.—Section 9 of the Small Business Act (15 
U.S.C. 638) is amended— 
(1) in subsection (g)(9), by striking ‘‘make an 
annual report’’ and inserting ‘‘not later than March 
30 of each year, submit a report’’; 
(2) in subsection (i)(1), by striking ‘‘shall report 
annually to the Small Business Administration’’ and 
inserting ‘‘shall, not later than March 30 of each 
year, submit a report to the Small Business Adminis-
tration that includes’’; 
(3) in subsection (j)— 
(A) in paragraph (1)(E), by striking ‘‘sim-
plified, standardized, and timely annual report’’ 
and inserting ‘‘not later than March 30 of each 
year, a simplified and standardized report’’; and 
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(B) in paragraph (3)(C), by striking ‘‘to re-
quire agencies to report to the Administration, 
not less frequently than annually, all instances 
in which an’’ and inserting ‘‘to require each 
agency, not later than March 30 of each year, to 
submit a report to the Administration on all in-
stance in which the’’; 
(4) in subsection (o)(10), by striking ‘‘submit an 
annual report’’ and inserting ‘‘not later than March 
30 of each year, submit a report’’; 
(5) in subsection (y)(6)(C), by striking ‘‘submit’’ 
and inserting ‘‘not later than March 30 of each year, 
submit’’; 
(6) in subsection (dd)(4)(A), by striking ‘‘and 
submit’’ and inserting ‘‘and, not later than March 30 
of each year, submit’’; 
(7) in subsection (gg)(6), by striking ‘‘include in 
the annual’’ and inserting ‘‘include, not later than 
March 30 of each year, a’’; 
(8) in subsection (ii) by inserting ‘‘, not later 
than March 30 of each year,’’ after ‘‘shall’’; 
(9) in subsection (mm)(6), by inserting ‘‘, not 
later than June 30 of each year,’’ after ‘‘shall’’; 
(10) in subsection (nn)(3)(A)— 
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(A) by striking ‘‘an annual’’ and inserting 
‘‘a’’ ; and 
(B) by inserting ‘‘, not later than March 30 
of each year,’’ after ‘‘shall’’; and 
(11) in subsection (ss), by striking ‘‘October 1, 
2013, and annually thereafter,’’ and inserting ‘‘March 
30 of each year,’’. 
(c) FAILURE TO REPORT ADMINISTRATIVE FUNDS.— 
Section 9(mm) of the Small Business Act (15 U.S.C. 
638(mm)) is amended by adding at the end the following 
new paragraph: 
‘‘(7) FAILURE
TO
REPORT
ADMINISTRATIVE 
FUNDS.— 
‘‘(A) IN GENERAL.—Not later than March 
30 following each fiscal year for which funds are 
authorized to be used by a Federal agency under 
paragraph (1), the Federal agency shall submit 
a report to the Administrator that identifies how 
the Federal agency used such funds during such 
fiscal year. 
‘‘(B) FAILURE TO SUBMIT A REPORT.—If a 
Federal agency fails to submit a report required 
under subparagraph (A), paragraph (1) shall not 
apply to such Federal agency unless— 
‘‘(i) such report is submitted; and 
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‘‘(ii) such Federal agency submits an 
additional report to the Administrator that 
identifies how such Federal agency plans to 
ensure timely reporting under this para-
graph.’’. 
SEC. 5. INDEXING AWARDS FOR INFLATION. 
Section 9 of the Small Business Act (15 U.S.C. 638) 
is amended— 
(1) in subsection (j)(2)— 
(A) by striking subparagraph (D); 
(B) by redesignating subparagraphs (E) 
through (I) as subparagraphs (D) through (H), 
respectively; and 
(C) in subparagraph (H), as so redesig-
nated, by striking ‘‘subparagraph (H)’’ and in-
serting ‘‘subparagraph (G)’’; 
(2) in subsection (p)(2)(B)— 
(A) in clause (vii), by adding ‘‘and’’ at the 
end; 
(B) in clause (viii), by striking ‘‘and’’ at 
the end; and 
(C) by striking clause (ix); 
(3) in subsection (gg)(3), by striking ‘‘awards 
under subsection (j)(2)(D) or (p)(2)(B)(ix).’’ and in-
serting ‘‘awards under subsection (tt)(2).’’; and 
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(4) by adding at the end the following new sub-
section: 
‘‘(tt) AWARDS UNDER PHASE I AND PHASE II AD-
JUSTED FOR INFLATION.— 
‘‘(1) PHASE I AWARDS.—An award for Phase I 
of an SBIR or STTR program may not exceed 
$150,000. 
‘‘(2) PHASE II AWARDS.—An award for Phase II 
of an SBIR or STTR program may not exceed 
$1,000,000. 
‘‘(3) ADJUSTMENT FOR INFLATION.—The Admin-
istrator shall adjust the dollar amounts under para-
graphs (1) and (2) for inflation in accordance with 
section 1908 of title 41, United States Code.’’. 
SEC. 6. REQUIREMENTS FOR INSERTION INCENTIVES. 
Section 9(y)(5) of the Small Business Act (15 U.S.C. 
638(y)(5)) is amended by striking ‘‘is authorized to’’ and 
inserting ‘‘shall’’. 
SEC. 7. CLARIFICATION OF ELIGIBILITY OF CERTAIN SMALL 
BUSINESSES. 
(a) SBIR.—Section 9(j) of the Small Business Act (15 
U.S.C. 638(j)) is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(4) MODIFICATION TO CLARIFY ELIGIBILITY OF 
CERTAIN
SMALL
BUSINESSES.—Not later than 180 
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days after the date of the enactment of the Commer-
cializing on Small Business Innovation Act of 2016, 
the Administrator shall modify the policy directives 
issued pursuant to this subsection to clarify that the 
small business concerns described in subparagraphs 
(B), (C), and (D) of section 3(p)(3) are eligible to re-
ceive awards under the SBIR program.’’. 
(b) STTR.—Section 9(p) of the Small Business Act 
(15 U.S.C. 638(p)) is amended by adding at the end the 
following new paragraph: 
‘‘(4) MODIFICATION TO CLARIFY ELIGIBILITY OF 
CERTAIN
SMALL
BUSINESSES.—Not later than 180 
days after the date of the enactment of the Commer-
cializing on Small Business Innovation Act of 2016, 
the Administrator shall modify the policy directives 
issued pursuant to this subsection to clarify that the 
small business concerns described in subparagraphs 
(B), (C), and (D) of section 3(p)(3) are eligible to re-
ceive awards under the STTR program.’’. 
SEC. 8. COMMERCIALIZATION ASSISTANCE PILOT PRO-
GRAM. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended by section 5, is further amended by adding at 
the end the following new subsection: 
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‘‘(uu) COMMERCIALIZATION ASSISTANCE PILOT PRO-
GRAMS.— 
‘‘(1) PILOT PROGRAMS IMPLEMENTED.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), not later than one year after 
the date of the enactment of Commercializing on 
Small Business Innovation Act of 2016, a cov-
ered agency shall implement a commercialization 
assistance pilot program to award eligible enti-
ties with a second sequential SBIR award. 
‘‘(B) EXCEPTION.—If the Administrator de-
termines that a covered agency has a program 
that is sufficiently similar to a commercializa-
tion assistance pilot program, such agency shall 
not be required to implement a commercializa-
tion assistance pilot program under subpara-
graph (A). 
‘‘(C) PERCENT OF AGENCY FUNDS.—A cov-
ered agency may not use more than 5 percent of 
its total SBIR budget for awards under the com-
mercialization assistance pilot program. 
‘‘(D) TERMINATION.—The commercializa-
tion assistance pilot programs shall terminate on 
September 30, 2022. 
‘‘(2) MATCHING REQUIREMENT.— 
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‘‘(A) IN
GENERAL.—The Administrator 
shall require as a condition of any award made 
to an eligible entity under a commercialization 
assistance pilot program, that a matching 
amount (excluding any fees collected from recipi-
ents of such assistance) equal to the amount of 
such award be provided from an eligible third- 
party investor, before the end of the commer-
cialization assistance pilot program award. 
‘‘(B) INELIGIBLE FUNDING.—An eligible en-
tity may not use funding from ineligible sources 
to meet the matching requirement of subpara-
graph (A). 
‘‘(3) AWARD.— 
‘‘(A) SIZE OF AWARD.—An award under 
this subsection may not exceed the limitations in 
subsection (aa)(1). 
‘‘(B) TIMING.—Awards provided under the 
commercialization assistance pilot program shall 
be distributed during the Phase II award period 
of the recipient eligible entity. 
‘‘(4) APPLICATION.—In order to be selected to re-
ceive a second sequential SBIR award under a com-
mercialization assistance pilot program, an eligible 
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entity shall submit to the covered agency imple-
menting such pilot program— 
‘‘(A) an application at such time, in such 
manner, and containing such information as the 
covered agency may require; and 
‘‘(B) the source and amount of the matching 
funding required under paragraph (2). 
‘‘(5) USE OF FUNDS.—The funds awarded under 
a commercialization assistance pilot program may 
only be used for research and development activities 
that build on the eligible entity’s Phase II program 
and catalyze acceleration towards commercialization. 
‘‘(6) DETERMINATION OF RECIPIENTS.—In deter-
mining which applicants receive awards under the 
commercialization assistance pilot program, the head 
of a covered agency shall consider— 
‘‘(A) the extent to which the supplemental 
funds awarded under the pilot program could 
aid the applicant commercialize its research; 
‘‘(B) whether the proposed plan provides a 
sound approach for establishing technical feasi-
bility that could lead to commercialization; 
‘‘(C) whether the proposed activity reflect 
changes to the Phase II commercialization plan 
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that further improves the chances of conversion 
of research in order to provide societal benefits; 
‘‘(D) whether the small business concern has 
progressed satisfactorily in the Phase II activity 
to justify additional funding; 
‘‘(E) the expectations of the third-party 
funding; and 
‘‘(F) the likelihood that the third-party 
funded activity will lead to commercial and soci-
etal benefit. 
‘‘(7) EVALUATION
REPORT.—Not later than 3 
years after the date of the enactment of Commer-
cializing on Small Business Innovation Act of 2016, 
the Comptroller General of the United States shall 
submit to the Committee on Science, Space, and Tech-
nology and the Committee on Small Business of the 
House of Representatives and the Committee on 
Small Business and Entrepreneurship of the Senate 
an evaluative report that includes— 
‘‘(A) a summary of the activities of the 
commercialization assistance pilot programs; 
‘‘(B) a detailed compilation of results 
achieved by the commercialization assistance 
pilot programs, including the number of small 
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business concerns that received awards under the 
pilot program; 
‘‘(C) the rate at which the recipients under 
the pilot program commercialized their research; 
‘‘(D) the growth in employment and rev-
enue of companies that participated in the pilot 
program; 
‘‘(E) a comparison of commercialization 
success of pilot program participants and recipi-
ents of a non-matching sequential Phase II 
award; 
‘‘(F) demographic information such as eth-
nicity and geographic location of participant 
companies; 
‘‘(G) an accounting of the funds used at 
each participating agency in the pilot program; 
‘‘(H) a distribution of third-party funding 
by source; 
‘‘(I) an analysis of the program’s effective-
ness at each participating agency; and 
‘‘(J) recommendations for improvement to 
the pilot program, in the case that Congress were 
to make it permanent. 
‘‘(8) DEFINITIONS.—For purposes of this sub-
section: 
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‘‘(A) COVERED AGENCY.—The term ‘covered 
agency’ means a Federal agency required to have 
an SBIR program. 
‘‘(B) ELIGIBLE ENTITY.—The term ‘eligible 
entity’ means a small business concern that has 
received a Phase II award and a Phase II se-
quential award from the covered agency to which 
such entity is applying for a second sequential 
SBIR award. 
‘‘(C) ELIGIBLE THIRD-PARTY INVESTOR.— 
The term ‘eligible third-party investors’ means a 
small business concern other than the eligible en-
tity, a venture capital firm, an individual inves-
tor, a non-SBIR Federal, State or local govern-
ment, or any combination thereof. 
‘‘(D) INELIGIBLE SOURCES.—The term ‘in-
eligible sources’ means the following: 
‘‘(i) The awardee’s internal research 
and development funds. 
‘‘(ii) Funding in forms other than cash 
such as in-kind or other intangible assets. 
‘‘(iii) Funding from the owners of the 
eligible entity, or the family members or af-
filiates of such owners. 
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‘‘(iv) Funding attained through loans 
or other forms of debt obligations.’’. 
SEC. 9. INCREASED UNDERSERVED POPULATION PARTICI-
PATION WAIVER REMOVED. 
(a) IN GENERAL.—Section 9(mm)(2) of the Small 
Business Act (15 U.S.C. 638(mm)(2)) is amended to read 
as follows: 
‘‘(2) OUTREACH AND TECHNICAL ASSISTANCE.— 
A Federal agency participating in the program under 
this subsection shall use a portion of the funds au-
thorized for uses under paragraph (1) to carry out the 
policy directive required under subsection (j)(2)(F) 
and to increase the participation of States with re-
spect to which a low level of SBIR awards have his-
torically been awarded.’’. 
(b) CONFORMING AMENDMENT.—Section 9(mm)(6) of 
the Small Business Act (15 U.S.C. 638(mm)(6)) is amended 
by striking ‘‘(A) and any use of the waiver authority under 
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 In-
novation Research Program and the Small Busi-
ness Technology Transfer Program, and for 
other purposes. 
DECEMBER 16, 2016 
The Committee on Science, Space, and Technology dis-
charged; committed to the Committee of the Whole 
House on the State of the Union and ordered to be 
printed 
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