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commits an offense described in paragraph (1) or (2) 
shall be subject to the same penalties as prescribed in 
those paragraphs. 
‘‘(b) CERTIFICATION REQUIREMENT.— 
‘‘(1) IN GENERAL.—No prosecution of any of-
fense described in this subsection may be undertaken 
by the United States, except under the certification in 
writing of the Attorney General, or his designee, 
that— 
‘‘(A) the State does not have jurisdiction; 
‘‘(B) the State has requested that the Fed-
eral Government assume jurisdiction; 
‘‘(C) the verdict or sentence obtained pursu-
ant 
to 
State 
charges 
left 
demonstratively 
unvindicated the Federal interest in eradicating 
bias-motivated violence; or 
‘‘(D) a prosecution by the United States is 
in the public interest and necessary to secure 
substantial justice. 
‘‘(2) RULE OF CONSTRUCTION.—Nothing in this 
subsection shall be construed to limit the authority of 
Federal officers, or a Federal grand jury, to inves-
tigate possible violations of this section. 
‘‘(c) DEFINITIONS.—In this section—
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‘‘(1) the term ‘‘bodily injury’’ has the meaning 
given such term in section 1365(h)(4) of this title, but 
does not include solely emotional or psychological 
harm to the victim; 
‘‘(2) the term ‘explosive or incendiary device’ has 
the meaning given such term in section 232 of this 
title; 
‘‘(3) the term ‘firearm’ has the meaning given 
such term in section 921(a) of this title; and 
‘‘(4) the term ‘gender identity’ for the purposes 
of this chapter means actual or perceived gender-re-
lated characteristics.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT.—The 
analysis for chapter 13 of title 18, United States Code, is 
amended by adding at the end the following: 
‘‘249. Hate crime acts.’’. 
SEC. 4708. STATISTICS. 
(a) IN GENERAL.—Subsection (b)(1) of the first section 
of the Hate Crime Statistics Act (28 U.S.C. 534 note) is 
amended by inserting ‘‘gender and gender identity,’’ after 
‘‘race,’’. 
(b) DATA.—Subsection (b)(5) of the first section of the 
Hate Crime Statistics Act (28 U.S.C. 534 note) is amended 
by inserting ‘‘, including data about crimes committed by, 
and crimes directed against, juveniles’’ after ‘‘data acquired 
under this section’’.
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SEC. 4709. SEVERABILITY. 
If any provision of this division, an amendment made 
by this division, or the application of such provision or 
amendment to any person or circumstance is held to be un-
constitutional, the remainder of this division, the amend-
ments made by this division, and the application of the pro-
visions of such to any person or circumstance shall not be 
affected thereby. 
SEC. 4710. RULE OF CONSTRUCTION. 
For purposes of construing this division and the 
amendments made by this division the following shall 
apply: 
(1) RELEVANT EVIDENCE.—Courts may consider 
relevant evidence of speech, beliefs, or expressive con-
duct to the extent that such evidence is offered to 
prove an element of a charged offense or is otherwise 
admissible under the Federal Rules of Evidence. Noth-
ing in this division is intended to affect the existing 
rules of evidence. 
(2) VIOLENT ACTS.—This division applies to vio-
lent acts motivated by actual or perceived race, color, 
religion, national origin, gender, sexual orientation, 
gender identity or disability of a victim. 
SEC. 4711. CONSTRUCTION AND APPLICATION. 
Nothing in this division, or an amendment made by 
this division, shall be construed or applied in a manner
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that infringes on any rights under the first amendment to 
the Constitution of the United States, or substantially bur-
dens any exercise of religion (regardless of whether com-
pelled by, or central to, a system of religious belief), speech, 
expression, association, if such exercise of religion, speech, 
expression, or association was not intended to— 
(1) plan or prepare for an act of physical vio-
lence; or 
(2) incite an imminent act of physical violence 
against another. 
(3) FREE EXPRESSION.—Nothing in this divi-
sion shall be construed to allow prosecution based 
solely upon an individual’s expression of racial, reli-
gious, political, or other beliefs or solely upon an in-
dividual’s membership in a group advocating or es-
pousing such beliefs. 
(4) FIRST AMENDMENT.—Nothing in this divi-
sion, or an amendment made by this division, shall 
be construed to diminish any rights under the first 
amendment to the Constitution of the United States. 
(5) CONSTITUTIONAL PROTECTIONS.—Nothing in 
this division shall be construed to prohibit any con-
stitutionally protected speech, expressive conduct or 
activities (regardless of whether compelled by, or cen-
tral to, a system of religious belief), including the ex-
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ercise of religion protected by the first amendment to 
the Constitution of the United States and peaceful 
picketing or demonstration. The Constitution does not 
protect speech, conduct or activities consisting of 
planning for, conspiring to commit, or committing an 
act of violence. 
SEC. 4712. LIMITATION ON PROSECUTIONS. 
(a) IN GENERAL.—All prosecutions under section 249 
of title 18, United States Code, as added by this Act, shall 
be undertaken pursuant to guideline, issued by the Attorney 
General— 
(1) to guide the exercise of the discretion of Fed-
eral prosecutors and the Attorney General in their de-
cisions whether to seek death sentences under such sec-
tion when the crime results in a loss of life; and 
(2) that identify with particularity the the type 
facts of such cases that will support the classification 
of individual cases in term of their culpability and 
death eligibility as low, medium, and high. 
(b) REQUIREMENTS
FOR DEATH PENALTY.—If the 
Government seeks a death sentence in crime under section 
249 of title 18, United States Code, as added by this Act, 
that results in a loss of life— 
(1) the Attorney General shall certify with par-
ticularity in the information or indictment how the
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facts of the case support the Government’s judgment 
that the case is properly classified among the cases 
involving a hate crime that resulted in a victim’s 
death; 
(2) the Attorney General shall document in a fil-
ing to the court— 
(A) the facts of the crime (including date of 
offense and arrest and location of the offense), 
charges, convictions, and sentences of all state 
and Federal hate crimes (committed before or 
after the effective date of this legislation) that re-
sulted in a loss of life and were known to the As-
sistant United States Attorney or the Attorney 
General; and 
(B) the actual or perceived race, color, na-
tional origin, ethnicity, religion, gender, sexual 
orientation, gender identity, or disability of the 
defendant and all victims; and 
(3)(A) the court, either at the close of the guilt 
trial or at the close of the penalty trial, shall conduct 
a proportionality review in which it shall examine 
whether the prosecutorial death seeking and death sen-
tencing rates in comparable cases in Federal prosecu-
tions are both greater than 50 percent; and
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(B) if the United States fails to satisfy the test 
under subparagraph (A), by a preponderance of the 
evidence, the court shall dismiss the Government’s ac-
tion seeking a death sentence in the case. 
SEC. 4713. GUIDELINES FOR HATE-CRIMES OFFENSES. 
Section 249(a) of title 18, United States Code, as 
added by section lll of this Act, is amended by adding 
at the end the following: 
‘‘(4) GUIDELINES.—All prosecutions conducted 
by the United States under this section shall be un-
dertaken pursuant to guidelines issued by the Attor-
ney General, or the designee of the Attorney General, 
to be included in the United States Attorneys’ Man-
ual that shall establish neutral and objective criteria 
for determining whether a crime was committed be-
cause of the actual or perceived status of any per-
son.’’. 
SEC. 4714. ATTACKS ON UNITED STATES SERVICEMEN. 
(a) IN GENERAL.—Chapter 67 of title 18, United 
States Code, is amended by adding at the end the following: 
‘‘§ 1389. Prohibition on attacks on United States serv-
icemen on account of service 
‘‘(a) IN GENERAL.—Whoever knowingly assaults or 
batters a United States serviceman or an immediate family 
member of a United States serviceman, or who knowingly
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(2) the terms ‘‘extramural budget’’, ‘‘Federal 
agency’’, ‘‘Small Business Innovation Research Pro-
gram’’, ‘‘SBIR’’, ‘‘Small Business Technology Trans-
fer Program’’, and ‘‘STTR’’ have the meanings given 
such terms in section 9 of the Small Business Act (15 
U.S.C. 638); and 
(3) the term ‘‘small business concern’’ has the 
same meaning as under section 3 of the Small Busi-
ness Act (15 U.S.C. 632). 
TITLE 
LI—REAUTHORIZATION 
OF THE SBIR AND STTR PRO-
GRAMS 
SEC. 5101. 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 in-
serting ‘‘2017’’. 
(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 ‘‘2017’’. 
SEC. 5102. STATUS OF THE OFFICE OF TECHNOLOGY. 
Section 9(b) of the Small Business Act (15 U.S.C. 
638(b)) is amended— 
(1) in paragraph (7), by striking ‘‘and’’ at the 
end;
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(2) in paragraph (8), by striking the period at 
the end and inserting ‘‘; and’’; 
(3) by redesignating paragraph (8) as para-
graph (9); and 
(4) by adding at the end the following: 
‘‘(10) to maintain an Office of Technology to 
carry out the responsibilities of the Administration 
under this section, which shall be— 
‘‘(A) headed by the Assistant Administrator 
for Technology, who shall report directly to the 
Administrator; and 
‘‘(B) independent from the Office of Govern-
ment Contracting of the Administration and suf-
ficiently staffed and funded to comply with the 
oversight, reporting, and public database respon-
sibilities assigned to the Office of Technology by 
the Administrator.’’. 
SEC. 5103. SBIR ALLOCATION INCREASE. 
Section 9(f) of the Small Business Act (15 U.S.C. 
638(f)) is amended— 
(1) in paragraph (1)— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘Each’’ and inserting ‘‘Except 
as provided in paragraph (2)(C), each’’;
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(B) in subparagraph (B), by striking ‘‘and’’ 
at the end; and 
(C) by striking subparagraph (C) and in-
serting the following: 
‘‘(C) not less than 2.5 percent of such budget 
in each of fiscal years 2009 and 2010; 
‘‘(D) not less than 2.6 percent of such budg-
et in fiscal year 2011; 
‘‘(E) not less than 2.7 percent of such budg-
et in fiscal year 2012; 
‘‘(F) not less than 2.8 percent of such budg-
et in fiscal year 2013; 
‘‘(G) not less than 2.9 percent of such budg-
et in fiscal year 2014; 
‘‘(H) not less than 3.0 percent of such budg-
et in fiscal year 2015; 
‘‘(I) not less than 3.1 percent of such budget 
in fiscal year 2016; 
‘‘(J) not less than 3.2 percent of such budget 
in fiscal year 2017; 
‘‘(K) not less than 3.3 percent of such budg-
et in fiscal year 2018; 
‘‘(L) not less than 3.4 percent of such budg-
et in fiscal year 2019; and
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‘‘(M) not less than 3.5 percent of such budg-
et in fiscal year 2020 and each fiscal year there-
after,’’; and 
(2) in paragraph (2)— 
(A) by redesignating subparagraphs (A) 
and (B) as clauses (i) and (ii), respectively, and 
adjusting the margins accordingly; 
(B) by striking ‘‘A Federal agency’’ and in-
serting the following: 
‘‘(A) IN GENERAL.—A Federal agency’’; and 
(C) by adding at the end the following: 
‘‘(B) DEPARTMENT OF DEFENSE AND DE-
PARTMENT OF ENERGY.—For the Department of 
Defense and the Department of Energy, to the 
greatest extent practicable, the percentage of the 
extramural budget in excess of 2.5 percent re-
quired to be expended with small business con-
cerns under subparagraphs (D) through (M) of 
paragraph (1)— 
‘‘(i) may not be used for new Phase I 
or Phase II awards; and 
‘‘(ii) shall be used for activities that 
further the readiness levels of technologies 
developed under Phase II awards, including 
conducting testing and evaluation to pro-
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mote the transition of such technologies into 
commercial or defense products, or systems 
furthering the mission needs of the Depart-
ment of Defense or the Department of En-
ergy, as the case may be.’’. 
SEC. 5104. STTR ALLOCATION INCREASE. 
Section 9(n)(1)(B) of the Small Business Act (15 
U.S.C. 638(n)(1)(B)) is amended— 
(1) in clause (i), by striking ‘‘and’’ at the end; 
(2) in clause (ii), by striking ‘‘thereafter.’’ and 
inserting ‘‘through fiscal year 2010;’’; and 
(3) by adding at the end the following: 
‘‘(iii) 0.4 percent for fiscal years 2011 
and 2012; 
‘‘(iv) 0.5 percent for fiscal years 2013 
and 2014; and 
‘‘(v) 0.6 percent for fiscal year 2015 
and each fiscal year thereafter.’’. 
SEC. 5105. SBIR AND STTR AWARD LEVELS. 
(a) SBIR ADJUSTMENTS.—Section 9(j)(2)(D) of the 
Small Business Act (15 U.S.C. 638(j)(2)(D)) is amended— 
(1) by striking ‘‘$100,000’’ and inserting 
‘‘$150,000’’; and 
(2) by striking ‘‘$750,000’’ and inserting 
‘‘$1,000,000’’.
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(b) STTR ADJUSTMENTS.—Section 9(p)(2)(B)(ix) of 
the Small Business Act (15 U.S.C. 638(p)(2)(B)(ix)) is 
amended— 
(1) by striking ‘‘$100,000’’ and inserting 
‘‘$150,000’’; and 
(2) by striking ‘‘$750,000’’ and inserting 
‘‘$1,000,000’’. 
(c) TRIENNIAL ADJUSTMENTS.—Section 9 of the Small 
Business Act (15 U.S.C. 638) is amended— 
(1) in subsection (j)(2)(D)— 
(A) by striking ‘‘5 years’’ and inserting ‘‘3 
years’’; and 
(B) by striking ‘‘and programmatic consid-
erations’’; and 
(2) in subsection (p)(2)(B)(ix) by striking 
‘‘greater or lesser amounts to be awarded at the dis-
cretion of the awarding agency,’’ and inserting ‘‘an 
adjustment for inflation of such amounts once every 
3 years,’’. 
(d) LIMITATION ON CERTAIN AWARDS.—Section 9 of 
the Small Business Act (15 U.S.C. 638) is amended by add-
ing at the end the following: 
‘‘(aa) LIMITATION ON CERTAIN AWARDS.— 
‘‘(1) LIMITATION.—No Federal agency may issue 
an award under the SBIR program or the STTR pro-
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gram if the size of the award exceeds the award guide-
lines established under this section by more than 50 
percent. 
‘‘(2) MAINTAINANCE OF INFORMATION.—Partici-
pating agencies shall maintain information on 
awards exceeding the guidelines established under this 
section, including— 
‘‘(A) the amount of each award; 
‘‘(B) a justification for exceeding the award 
amount; 
‘‘(C) the identity and location of each 
award recipient; and 
‘‘(D) whether a recipient has received any 
venture capital investment and, if so, whether 
the recipient is majority-owned and controlled 
by multiple venture capital companies. 
‘‘(3) REPORTS.—The Administrator shall in-
clude the information described in paragraph (2) in 
the annual report of the Administrator to Congress. 
‘‘(4) RULE OF CONSTRUCTION.—Nothing in this 
subsection shall be construed to prevent a Federal 
agency from supplementing an award under the 
SBIR program or the STTR program using funds of 
the Federal agency that are not part of the SBIR pro-
gram or the STTR program of the Federal agency.’’.
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SEC. 5106. AGENCY AND PROGRAM COLLABORATION. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended by this division, is amended by adding at the 
end the following: 
‘‘(bb) SUBSEQUENT PHASES.— 
‘‘(1) AGENCY COLLABORATION.—A small business 
concern that received an award from a Federal agen-
cy 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 or 
the relevant component of the Federal agency makes 
a written determination that the topics of the relevant 
awards are the same and both agencies report the 
awards to the Administrator for inclusion in the pub-
lic database under subsection (k). 
‘‘(2) SBIR AND STTR COLLABORATION.—A small 
business concern which received an award under this 
section under the SBIR program or the STTR pro-
gram may receive an award under this section for a 
subsequent phase in either the SBIR program or the 
STTR program and the participating agency or 
agencies shall report the awards to the Administrator 
for inclusion in the public database under subsection 
(k).’’.
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SEC. 5107. ELIMINATION OF PHASE II INVITATIONS. 
(a) IN GENERAL.—Section 9(e) of the Small Business 
Act (15 U.S.C. 638(e)) is amended— 
(1) in paragraph (4)(B), by striking ‘‘to further’’ 
and inserting: ‘‘which shall not include any invita-
tion, pre-screening, pre-selection, or down-selection 
process for eligibility for the second phase, that will 
further’’; and 
(2) in paragraph (6)(B), by striking ‘‘to further 
develop proposed ideas to’’ and inserting ‘‘which shall 
not include any invitation, pre-screening, pre-selec-
tion, or down-selection process for eligibility for the 
second phase, that will further develop proposals 
that’’. 
(b) TECHNICAL
AND CONFORMING AMENDMENTS.— 
The Small Business Act (15 U.S.C. 638) is amended— 
(1) in section 9— 
(A) in subsection (e)— 
(i) in paragraph (8), by striking 
‘‘and’’ at the end; 
(ii) in paragraph (9)— 
(I) by striking ‘‘the second or the 
third phase’’ and inserting ‘‘Phase II 
or Phase III’’; and 
(II) by striking the period at the 
end and inserting a semicolon; and
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(iii) by adding at the end the fol-
lowing: 
‘‘(10) the term ‘Phase I’ means— 
‘‘(A) with respect to the SBIR program, the 
first phase described in paragraph (4)(A); and 
‘‘(B) with respect to the STTR program, the 
first phase described in paragraph (6)(A); 
‘‘(11) the term ‘Phase II’ means— 
‘‘(A) with respect to the SBIR program, the 
second phase described in paragraph (4)(B); and 
‘‘(B) with respect to the STTR program, the 
second phase described in paragraph (6)(B); and 
‘‘(12) the term ‘Phase III’ means— 
‘‘(A) with respect to the SBIR program, the 
third phase described in paragraph (4)(C); and 
‘‘(B) with respect to the STTR program, the 
third phase described in paragraph (6)(C).’’; 
(B) in subsection (j)— 
(i) in paragraph (1)(B), by striking 
‘‘phase two’’ and inserting ‘‘Phase II’’; 
(ii) in paragraph (2)— 
(I) in subparagraph (B)— 
(aa) by striking ‘‘the third 
phase’’ each place it appears and 
inserting ‘‘Phase III’’; and
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(cc) 
by 
striking 
‘‘third 
phase’’ and inserting ‘‘Phase III’’; 
and 
(iii) in paragraph (3)— 
(I) in subparagraph (A)— 
(aa) by striking ‘‘the first 
phase (as described in subsection 
(e)(4)(A))’’ and inserting ‘‘Phase 
I’’; 
(bb) by striking ‘‘the second 
phase (as described in subsection 
(e)(4)(B))’’ and inserting ‘‘Phase 
II’’; and 
(cc) by striking ‘‘the third 
phase (as described in subsection 
(e)(4)(C))’’ and inserting ‘‘Phase 
III’’; and 
(II) in subparagraph (B), by 
striking ‘‘second phase’’ and inserting 
‘‘Phase II’’; 
(C) in subsection (k)— 
(i) by striking ‘‘first phase’’ each place 
it appears and inserting ‘‘Phase I’’; and 
(ii) by striking ‘‘second phase’’ each 
place it appears and inserting ‘‘Phase II’’;
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(D) in subsection (l)(2)— 
(i) by striking ‘‘the first phase’’ and 
inserting ‘‘Phase I’’; and 
(ii) by striking ‘‘the second phase’’ and 
inserting ‘‘Phase II’’; 
(E) in subsection (o)(13)— 
(i) in subparagraph (B), by striking 
‘‘second phase’’ and inserting ‘‘Phase II’’; 
and 
(ii) in subparagraph (C), by striking 
‘‘third phase’’ and inserting ‘‘Phase III’’; 
(F) in subsection (p)— 
(i) in paragraph (2)(B)— 
(I) in clause (vi)— 
(aa) by striking ‘‘the second 
phase’’ and inserting ‘‘Phase II’’; 
and 
(bb) by striking ‘‘the third 
phase’’ and inserting ‘‘Phase III’’; 
and 
(II) in clause (ix)— 
(aa) by striking ‘‘the first 
phase’’ and inserting ‘‘Phase I’’; 
and
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(bb) by striking ‘‘the second 
phase’’ and inserting ‘‘Phase II’’; 
and 
(ii) in paragraph (3)— 
(I) by striking ‘‘the first phase (as 
described in subsection (e)(6)(A))’’ and 
inserting ‘‘Phase I’’; 
(II) by striking ‘‘the second phase 
(as described in subsection (e)(6)(B))’’ 
and inserting ‘‘Phase II’’; and 
(III) by striking ‘‘the third phase 
(as described in subsection (e)(6)(A))’’ 
and inserting ‘‘Phase III’’; 
(G) in subsection (q)(3)— 
(i) in subparagraph (A)— 
(I) in the subparagraph heading, 
by striking ‘‘FIRST PHASE’’ and insert-
ing ‘‘PHASE I’’; and 
(II) by striking ‘‘first phase’’ and 
inserting ‘‘Phase I’’; and 
(ii) in subparagraph (B)— 
(I) in the subparagraph heading, 
by striking ‘‘SECOND PHASE’’ and in-
serting ‘‘PHASE II’’; and
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(II) by striking ‘‘second phase’’ 
and inserting ‘‘Phase II’’; 
(H) in subsection (r)— 
(i) in the subsection heading, by strik-
ing ‘‘THIRD PHASE’’ and inserting ‘‘PHASE 
III’’; 
(ii) in paragraph (1)— 
(I) in the first sentence— 
(aa) by striking ‘‘for the sec-
ond phase’’ and inserting ‘‘for 
Phase II’’; 
(bb) 
by 
striking 
‘‘third 
phase’’ and inserting ‘‘Phase III’’; 
and 
(cc) 
by 
striking 
‘‘second 
phase 
period’’ 
and 
inserting 
‘‘Phase II period’’; and 
(II) in the second sentence— 
(aa) 
by 
striking 
‘‘second 
phase’’ and inserting ‘‘Phase II’’; 
and 
(bb) 
by 
striking 
‘‘third 
phase’’ and inserting ‘‘Phase III’’; 
and
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(iii) in paragraph (2), by striking 
‘‘third phase’’ and inserting ‘‘Phase III’’; 
and 
(I) in subsection (u)(2)(B), by striking ‘‘the 
first phase’’ and inserting ‘‘Phase I’’; 
(2) in section 34— 
(A) in subsection (c)(2)(B)(ii), by striking 
‘‘first phase and second phase SBIR awards’’ 
and inserting ‘‘Phase I and Phase II SBIR 
awards (as defined in section 9(e))’’; and 
(B) in subsection (e)(2)(A)— 
(i) in clause (i), by striking ‘‘first 
phase awards’’ and all that follows and in-
serting ‘‘Phase I awards (as defined in sec-
tion 9(e));’’; and 
(ii) by striking ‘‘first phase’’ each 
place it appears and inserting ‘‘Phase I’’; 
and 
(3) in section 35(c)(2)(B)(vii), by striking ‘‘third 
phase’’ and inserting ‘‘Phase III’’. 
SEC. 5108. MAJORITY-VENTURE INVESTMENTS IN SBIR 
FIRMS. 
(a) IN GENERAL.—Section 9 of the Small Business Act 
(15 U.S.C. 638), as amended by this division, is amended 
by adding at the end the following:
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‘‘(cc) MAJORITY-VENTURE INVESTMENTS
IN SBIR 
FIRMS.— 
‘‘(1) AUTHORITY AND DETERMINATION.— 
‘‘(A) IN GENERAL.—Upon a written deter-
mination provided not later than 30 days in ad-
vance to the Administrator and to the Committee 
on Small Business and Entrepreneurship of the 
Senate and the Committee on Small Business of 
the House of Representatives— 
‘‘(i) the Director of the National Insti-
tutes of Health may award not more than 
18 percent of the SBIR funds of the Na-
tional Institutes of Health allocated in ac-
cordance with this Act, in the first full fis-
cal year beginning after the date of enact-
ment of this subsection, and each fiscal year 
thereafter, to small business concerns that 
are owned in majority part by venture cap-
ital companies and that satisfy the quali-
fication requirements under paragraph (2) 
through competitive, merit-based procedures 
that are open to all eligible small business 
concerns; and 
‘‘(ii) the head of any other Federal 
agency participating in the SBIR program
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may award not more than 8 percent of the 
SBIR funds of the Federal agency allocated 
in accordance with this Act, in the first full 
fiscal year beginning after the date of enact-
ment of this subsection, and each fiscal year 
thereafter, to small business concerns that 
are majority owned by venture capital com-
panies and that satisfy the qualification re-
quirements under paragraph (2) through 
competitive, merit-based procedures that are 
open to all eligible small business concerns. 
‘‘(B) DETERMINATION.—A written deter-
mination made under subparagraph (A) shall 
explain how the use of the authority under that 
subparagraph will induce additional venture 
capital funding of small business innovations, 
substantially contribute to the mission of the 
funding Federal agency, demonstrate a need for 
public research, and otherwise fulfill the capital 
needs of small business concerns for additional 
financing for the SBIR project. 
‘‘(2) QUALIFICATION REQUIREMENTS.—The Ad-
ministrator shall establish requirements relating to 
the affiliation by small business concerns with venture 
capital companies, which may not exclude a United
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States small business concern from participation in 
the program under paragraph (1) on the basis that 
the small business concern is owned in majority part 
by, or controlled by, more than 1 United States ven-
ture capital company, so long as no single venture 
capital company owns more than 49 percent of the 
small business concern. 
‘‘(3) REGISTRATION.—A small business concern 
that is majority owned and controlled by multiple 
venture capital companies and qualified for partici-
pation in the program authorized under paragraph 
(1) shall— 
‘‘(A) register with the Administrator on the 
date that the small business concern submits an 
application for an award under the SBIR pro-
gram; and 
‘‘(B) indicate whether the small business 
concern is registered under subparagraph (A) in 
any SBIR proposal. 
‘‘(4) COMPLIANCE.—A Federal agency described 
in paragraph (1) shall collect data regarding the 
number and dollar amounts of phase I, phase II, and 
all other categories of awards under the SBIR pro-
gram, and the Administrator shall report on the data 
and the compliance of each such Federal agency with
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the maximum amounts under paragraph (1) as part 
of the annual report by the Administration under 
subsection (b)(7). 
‘‘(5) 
ENFORCEMENT.—If 
a 
Federal 
agency 
awards more than the amount authorized under para-
graph (1) for a purpose described in paragraph (1), 
the amount awarded in excess of the amount author-
ized under paragraph (1) shall be transferred to the 
funds for general SBIR programs from the non-SBIR 
research and development funds of the Federal agency 
within 60 days of the date on which the Federal agen-
cy awarded more than the amount authorized under 
paragraph (1) for a purpose described in paragraph 
(1).’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT.—Sec-
tion 3 of the Small Business Act (15 U.S.C. 632) is amend-
ed by adding at the end the following: 
‘‘(t) VENTURE CAPITAL COMPANY.—In this Act, the 
term ‘venture capital company’ means an entity described 
in clause (i), (v), or (vi) of section 121.103(b)(5) of title 
13, Code of Federal Regulations (or any successor thereto).’’. 
(c) ASSISTANCE FOR DETERMINING AFFILIATES.—Not 
later than 30 days after the date of enactment of this Act, 
the Administrator shall post on the website of the Adminis-
tration (with a direct link displayed on the homepage of
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the website of the Administration or the SBIR website of 
the Administration)— 
(1) a clear explanation of the SBIR affiliation 
rules under part 121 of title 13, Code of Federal Reg-
ulations; and 
(2) contact information for officers or employees 
of the Administration who— 
(A) upon request, shall review an issue re-
lating to the rules described in paragraph (1); 
and 
(B) shall respond to a request under sub-
paragraph (A) not later than 20 business days 
after the date on which the request is received. 
SEC. 5109. SBIR AND STTR SPECIAL ACQUISITION PREF-
ERENCE. 
Section 9(r) of the Small Business Act (15 U.S.C. 
638(r)) is amended by adding at the end the following: 
‘‘(4) PHASE III AWARDS.—To the greatest extent 
practicable, Federal agencies and Federal prime con-
tractors shall issue Phase III awards relating to tech-
nology, including sole source awards, to the SBIR 
and STTR award recipients that developed the tech-
nology.’’.
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SEC. 5110. COLLABORATING WITH FEDERAL LABORATORIES 
AND RESEARCH AND DEVELOPMENT CEN-
TERS. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended by this division, is amended by adding at the 
end the following: 
‘‘(dd) COLLABORATING
WITH
FEDERAL
LABORA-
TORIES AND RESEARCH AND DEVELOPMENT CENTERS.— 
‘‘(1) AUTHORIZATION.—Subject to the limita-
tions under this section, the head of each partici-
pating Federal agency may make SBIR and STTR 
awards to any eligible small business concern that— 
‘‘(A) intends to enter into an agreement 
with a Federal laboratory or federally funded re-
search and development center for portions of the 
activities to be performed under that award; or 
‘‘(B) has entered into a cooperative research 
and development agreement (as defined in sec-
tion 12(d) of the Stevenson-Wydler Technology 
Innovation Act of 1980 (15 U.S.C. 3710a(d))) 
with a Federal laboratory. 
‘‘(2) PROHIBITION.—No Federal agency shall— 
‘‘(A) condition an SBIR or STTR award 
upon entering into agreement with any Federal 
laboratory or any federally funded laboratory or 
research and development center for any portion
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of the activities to be performed under that 
award; 
‘‘(B) approve an agreement between a small 
business concern receiving a SBIR or STTR 
award and a Federal laboratory or federally 
funded laboratory or research and development 
center, if the small business concern performs a 
lesser portion of the activities to be performed 
under that award than required by this section 
and by the SBIR Policy Directive and the STTR 
Policy Directive of the Administrator; or 
‘‘(C) approve an agreement that violates 
any provision, including any data rights protec-
tions provision, of this section or the SBIR and 
the STTR Policy Directives. 
‘‘(3) IMPLEMENTATION.—Not later than 180 
days after the date of enactment of this subsection, the 
Administrator shall modify the SBIR Policy Direc-
tive and the STTR Policy Directive issued under this 
section to ensure that small business concerns— 
‘‘(A) have the flexibility to use the resources 
of the Federal laboratories and federally funded 
research and development centers; and 
‘‘(B) are not mandated to enter into agree-
ment with any Federal laboratory or any feder-
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ally funded laboratory or research and develop-
ment center as a condition of an award.’’. 
SEC. 5111. NOTICE REQUIREMENT. 
The head of any Federal agency involved in a case or 
controversy before any Federal judicial or administrative 
tribunal concerning the SBIR program or the STTR pro-
gram shall provide timely notice, as determined by the Ad-
ministrator, of the case or controversy to the Administrator. 
TITLE LII—OUTREACH AND COM-
MERCIALIZATION 
INITIA-
TIVES 
SEC. 5201. RURAL AND STATE OUTREACH. 
(a) OUTREACH.—Section 9 of the Small Business Act 
(15 U.S.C. 638) is amended by inserting after subsection 
(r) the following: 
‘‘(s) OUTREACH.— 
‘‘(1) DEFINITION OF ELIGIBLE STATE.—In this 
subsection, the term ‘eligible State’ means a State— 
‘‘(A) for which the total value of contracts 
awarded to the State under this section during 
the most recent fiscal year for which data is 
available was less than $5,000,000; and 
‘‘(B) that certifies to the Administrator that 
the State will, upon receipt of assistance under 
this subsection, provide matching funds from
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non-Federal sources in an amount that is not 
less than 50 percent of the amount provided 
under this subsection. 
‘‘(2) PROGRAM AUTHORITY.—Of amounts made 
available to carry out this section for each of fiscal 
years 2010 through 2014, the Administrator may ex-
pend with eligible States not more than $5,000,000 in 
each such fiscal year in order to increase the partici-
pation of small business concerns located in those 
States in the programs under this section. 
‘‘(3) AMOUNT OF ASSISTANCE.—The amount of 
assistance provided to an eligible State under this 
subsection in any fiscal year— 
‘‘(A) shall be equal to not more than 50 per-
cent of the total amount of matching funds from 
non-Federal sources provided by the State; and 
‘‘(B) shall not exceed $100,000. 
‘‘(4) USE OF ASSISTANCE.—Assistance provided 
to an eligible State under this subsection shall be used 
by the State, in consultation with State and local de-
partments and agencies, for programs and activities 
to increase the participation of small business con-
cerns located in the State in the programs under this 
section, including—
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‘‘(A) the establishment of quantifiable per-
formance goals, including goals relating to— 
‘‘(i) the number of program awards 
under this section made to small business 
concerns in the State; and 
‘‘(ii) the total amount of Federal re-
search and development contracts awarded 
to small business concerns in the State; 
‘‘(B) the provision of competition outreach 
support to small business concerns in the State 
that are involved in research and development; 
and 
‘‘(C) the development and dissemination of 
educational and promotional information relat-
ing to the programs under this section to small 
business concerns in the State.’’. 
(b) FEDERAL AND STATE PROGRAM EXTENSION.— 
Section 34 of the Small Business Act (15 U.S.C. 657d) is 
amended— 
(1) in subsection (h), by striking ‘‘2001 through 
2005’’ each place it appears and inserting ‘‘2010 
through 2014’’; and 
(2) in subsection (i), by striking ‘‘2005’’ and in-
serting ‘‘2014’’.
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(c) MATCHING REQUIREMENTS.—Section 34(e)(2) of 
the Small Business Act (15 U.S.C. 657d(e)(2)) is amend-
ed— 
(1) in subparagraph (A)— 
(A) in clause (i), by striking ‘‘50 cents’’ and 
inserting ‘‘35 cents’’; and 
(B) in clause (iii), by striking ‘‘75 cents’’ 
and inserting ‘‘50 cents’’; 
(2) in subparagraph (B), by striking ‘‘50 cents’’ 
and inserting ‘‘35 cents’’; 
(3) by redesignating subparagraphs (C) and (D) 
as subparagraphs (D) and (E), respectively; and 
(4) by inserting after subparagraph (B) the fol-
lowing: 
‘‘(C) RURAL AREAS.— 
‘‘(i) IN GENERAL.—Except as provided 
in clause (ii), the non-Federal share of the 
cost of the activity carried out using an 
award or under a cooperative agreement 
under this section shall be 35 cents for each 
Federal dollar that will be directly allocated 
by a recipient described in paragraph (A) 
to serve small business concerns located in 
a rural area.
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‘‘(ii) ENHANCED RURAL AWARDS.—For 
a recipient located in a rural area that is 
located in a State described in subpara-
graph (A)(i), the non-Federal share of the 
cost of the activity carried out using an 
award or under a cooperative agreement 
under this section shall be 15 cents for each 
Federal dollar that will be directly allocated 
by a recipient described in paragraph (A) 
to serve small business concerns located in 
the rural area. 
‘‘(iii) DEFINITION OF RURAL AREA.— 
In this subparagraph, the term ‘rural area’ 
has the meaning given that term in section 
1393(a)(2)) of the Internal Revenue Code of 
1986.’’. 
SEC. 5202. SBIR–STEM WORKFORCE DEVELOPMENT GRANT 
PILOT PROGRAM. 
(a) PILOT PROGRAM ESTABLISHED.—From amounts 
made available to carry out this section, the Administrator 
shall establish a SBIR–STEM Workforce Development 
Grant Pilot Program to encourage the business community 
to provide workforce development opportunities for college 
students, in the fields of science, technology, engineering,
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and math (in this section referred to as ‘‘STEM college stu-
dents’’), by providing a SBIR bonus grant. 
(b) ELIGIBLE ENTITIES DEFINED.—In this section the 
term ‘‘eligible entity’’ means a grantee receiving a grant 
under the SBIR Program on the date of the bonus grant 
under subsection (a) that provides an internship program 
for STEM college students. 
(c) AWARDS.—An eligible entity shall receive a bonus 
grant equal to 10 percent of either a Phase I or Phase II 
grant, as applicable, with a total award maximum of not 
more than $10,000 per year. 
(d) EVALUATION.—Following the fourth year of fund-
ing under this section, the Administrator shall submit a 
report to Congress on the results of the SBIR–STEM Work-
force Development Grant Pilot Program. 
(e) AUTHORIZATION OF APPROPRIATIONS.—There are 
authorized to be appropriated to carry out this section— 
(1) $1,000,000 for fiscal year 2011; 
(2) $1,000,000 for fiscal year 2012; 
(3) $1,000,000 for fiscal year 2013; 
(4) $1,000,000 for fiscal year 2014; and 
(5) $1,000,000 for fiscal year 2015. 
SEC. 5203. TECHNICAL ASSISTANCE FOR AWARDEES. 
Section 9(q)(3) of the Small Business Act (15 U.S.C. 
638(q)(3)) is amended—
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† HR 2647 EAS 
(1) in subparagraph (A), by striking ‘‘$4,000’’ 
and inserting ‘‘$5,000’’; 
(2) in subparagraph (B)— 
(A) by striking ‘‘, with funds available from 
their SBIR awards,’’; and 
(B) by striking ‘‘$4,000 per year’’ and in-
serting ‘‘$5,000 per year, which shall be in addi-
tion to the amount of the recipient’s award’’; 
and 
(3) by adding at the end the following: 
‘‘(C) FLEXIBILITY.—In carrying out sub-
paragraphs (A) and (B), each Federal agency 
shall provide the allowable amounts to a recipi-
ent that meets the eligibility requirements under 
the applicable subparagraph, if the recipient re-
quests to seek technical assistance from an indi-
vidual or entity other than the vendor selected 
under paragraph (2) by the Federal agency. 
‘‘(D) LIMITATION.—A Federal agency may 
not— 
‘‘(i) use the amounts authorized under 
subparagraph (A) or (B) unless the vendor 
selected under paragraph (2) provides the 
technical assistance to the recipient; or
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† HR 2647 EAS 
‘‘(ii) enter a contract with a vendor 
under paragraph (2) under which the 
amount provided for technical assistance is 
based on total number of Phase I or Phase 
II awards.’’. 
SEC. 5204. COMMERCIALIZATION PROGRAM AT DEPART-
MENT OF DEFENSE. 
Section 9(y) of the Small Business Act (15 U.S.C. 
638(y)), as amended by section 834 of this Act, is amend-
ed— 
(1) in paragraph (1), by adding at the end the 
following: ‘‘The authority to create and administer a 
Commercialization Program under this subsection 
may not be construed to eliminate or replace any 
other SBIR program or STTR program that enhances 
the insertion or transition of SBIR or STTR tech-
nologies, including any such program in effect on the 
date of enactment of the National Defense Authoriza-
tion Act for Fiscal Year 2006 (Public Law 109–163; 
119 Stat. 3136).’’; 
(2) by redesignating paragraph (5) as para-
graph (7); and 
(3) by inserting after paragraph (4) the fol-
lowing:
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‘‘(5) INSERTION INCENTIVES.—For any contract 
with a value of not less than $100,000,000, the Sec-
retary of Defense is authorized to— 
‘‘(A) establish goals for the transition of 
Phase III technologies in subcontracting plans; 
and 
‘‘(B) require a prime contractor on such a 
contract to report the number and dollar amount 
of contracts entered into by that prime con-
tractor for Phase III SBIR or STTR projects. 
‘‘(6) GOAL FOR SBIR AND STTR TECHNOLOGY IN-
SERTION.—The Secretary of Defense shall— 
‘‘(A) set a goal to increase the number of 
Phase II SBIR contracts and the number of 
Phase II STTR contracts awarded by that Sec-
retary that lead to technology transition into 
programs of record or fielded systems; 
‘‘(B) use incentives in effect on the date of 
enactment of the SBIR/STTR Reauthorization 
Act of 2009, or create new incentives, to encour-
age agency program managers and prime con-
tractors to meet the goal under subparagraph 
(A); and 
‘‘(C) include in the annual report to Con-
gress the percentage of contracts described in sub-
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paragraph (A) awarded by that Secretary, and 
information on the ongoing status of projects 
funded through the Commercialization Program 
and efforts to transition these technologies into 
programs of record or fielded systems.’’. 
SEC. 5205. COMMERCIALIZATION PILOT PROGRAM FOR CI-
VILIAN AGENCIES. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended by this division, is amended by adding at the 
end the following: 
‘‘(ee) PILOT PROGRAM.— 
‘‘(1) AUTHORIZATION.—The head of each covered 
Federal agency may set aside not more than 10 per-
cent of the SBIR and STTR funds of such agency for 
further technology development, testing, and evalua-
tion of SBIR and STTR Phase II technologies. 
‘‘(2) APPLICATION BY FEDERAL AGENCY.— 
‘‘(A) IN
GENERAL.—A covered Federal 
agency may not establish a pilot program unless 
such agency makes a written application to the 
Administrator, not later than 90 days before to 
the first day of the fiscal year in which the pilot 
program is to be established, that describes a 
compelling reason that additional investment in 
SBIR or STTR technologies is necessary, includ-
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† HR 2647 EAS 
ing unusually high regulatory, systems integra-
tion, or other costs relating to development or 
manufacturing of identifiable, highly promising 
small business technologies or a class of such 
technologies expected to substantially advance the 
mission of the agency. 
‘‘(B) DETERMINATION.—The Administrator 
shall— 
‘‘(i) make a determination regarding 
an application submitted under subpara-
graph (A) not later than 30 days before the 
first day of the fiscal year for which the ap-
plication is submitted; 
‘‘(ii) publish the determination in the 
Federal Register; and 
‘‘(iii) make a copy of the determina-
tion and any related materials available to 
the Committee on Small Business and En-
trepreneurship of the Senate and the Com-
mittee on Small Business of the House of 
Representatives. 
‘‘(3) MAXIMUM AMOUNT OF AWARD.—The head of 
a Federal agency may not make an award under a 
pilot program in excess of 3 times the dollar amounts
1116 
† HR 2647 EAS 
‘‘(i) means a Federal agency partici-
pating in the SBIR program or the STTR 
program; and 
‘‘(ii) does not include the Department 
of Defense; and 
‘‘(B) the term ‘pilot program’ means the 
program established under paragraph (1).’’. 
SEC. 5206. NANOTECHNOLOGY INITIATIVE. 
(a) IN GENERAL.—Section 9 of the Small Business Act 
(15 U.S.C. 638), as amended by this division, is amended 
by adding at the end the following: 
‘‘(ff) NANOTECHNOLOGY INITIATIVE.—Each Federal 
agency participating in the SBIR or STTR program shall 
encourage the submission of applications for support of 
nanotechnology related projects to such program.’’. 
(b) SUNSET.—Effective October 1, 2014, subsection (ff) 
of the Small Business Act, as added by subsection (a) of 
this section, is repealed. 
SEC. 5207. ACCELERATING CURES. 
The Small Business Act (15 U.S.C. 631 et seq.) is 
amended— 
(1) by redesignating section 44 as section 45; 
and 
(2) by inserting after section 43 the following:
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† HR 2647 EAS 
‘‘SEC. 44. SMALL BUSINESS INNOVATION RESEARCH PRO-
GRAM. 
‘‘(a) NIH CURES PILOT.— 
‘‘(1) ESTABLISHMENT.—An independent advi-
sory board shall be established at the National Acad-
emy of Sciences (in this section referred to as the ‘ad-
visory board’) to conduct periodic evaluations of the 
SBIR program (as that term is defined in section 9) 
of each of the National Institutes of Health (referred 
to in this section as the ‘NIH’) institutes and centers 
for the purpose of improving the management of the 
SBIR program through data-driven assessment. 
‘‘(2) MEMBERSHIP.— 
‘‘(A) IN
GENERAL.—The advisory board 
shall consist of— 
‘‘(i) the Director of the NIH; 
‘‘(ii) the Director of the SBIR program 
of the NIH; 
‘‘(iii) senior NIH agency managers, se-
lected by the Director of NIH; 
‘‘(iv) industry experts, selected by the 
Council of the National Academy of 
Sciences in consultation with the Associate 
Administrator for Technology of the Admin-
istration and the Director of the Office of 
Science and Technology Policy; and
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‘‘(v) owners or operators of small busi-
ness concerns that have received an award 
under the SBIR program of the NIH, se-
lected by the Associate Administrator for 
Technology of the Administration. 
‘‘(B) NUMBER
OF
MEMBERS.—The total 
number of members selected under clauses (iii), 
(iv), and (v) of subparagraph (A) shall not ex-
ceed 10. 
‘‘(C) EQUAL REPRESENTATION.—The total 
number of members of the advisory board selected 
under clauses (i), (ii), (iii), and (iv) of subpara-
graph (A) shall be equal to the number of mem-
bers of the advisory board selected under sub-
paragraph (A)(v). 
‘‘(b) ADDRESSING DATA GAPS.—In order to enhance 
the evidence-base guiding SBIR program decisions and 
changes, the Director of the SBIR program of the NIH shall 
address the gaps and deficiencies in the data collection con-
cerns identified in the 2007 report of the National Acad-
emies of Science entitled ‘An Assessment of the Small Busi-
ness Innovation Research Program at the NIH’. 
‘‘(c) PILOT PROGRAM.— 
‘‘(1) IN GENERAL.—The Director of the SBIR 
program of the NIH may initiate a pilot program,
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under a formal mechanism for designing, imple-
menting, and evaluating pilot programs, to spur in-
novation and to test new strategies that may enhance 
the development of cures and therapies. 
‘‘(2) CONSIDERATIONS.—The Director of the 
SBIR program of the NIH may consider conducting 
a pilot program to include individuals with successful 
SBIR program experience in study sections, hiring 
individuals with small business development experi-
ence for staff positions, separating the commercial 
and scientific review processes, and examining the 
impact of the trend toward larger awards on the over-
all program. 
‘‘(d) REPORT TO CONGRESS.—The Director of the NIH 
shall submit an annual report to Congress and the advisory 
board on the activities of the SBIR program of the NIH 
under this section. 
‘‘(e) SBIR GRANTS AND CONTRACTS.— 
‘‘(1) IN
GENERAL.—In awarding grants and 
contracts under the SBIR program of the NIH each 
SBIR program manager shall place an emphasis on 
applications that identify products and services that 
may enhance the development of cures and therapies. 
‘‘(2) EXAMINATION OF COMMERCIALIZATION AND 
OTHER METRICS.—The advisory board shall evaluate
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the implementation of the requirement under para-
graph (1) by examining increased commercialization 
and other metrics, to be determined and collected by 
the SBIR program of the NIH. 
‘‘(3) PHASE I AND II.—To the greatest extent 
practicable, the Director of the SBIR program of the 
NIH shall reduce the time period between Phase I 
and Phase II funding of grants and contracts under 
the SBIR program of the NIH to 6 months. 
‘‘(f) LIMIT.—Not more than a total of 1 percent of the 
extramural budget (as defined in section 9 of the Small 
Business Act (15 U.S.C. 638)) of the NIH for research or 
research and development may be used for the pilot program 
under subsection (c) and to carry out subsection (e). 
‘‘(g) SUNSET.—This section shall cease to be effective 
on the date that is 5 years after the date of enactment of 
the SBIR/STTR Reauthorization Act of 2009.’’. 
TITLE LIII—OVERSIGHT AND 
EVALUATION 
SEC. 5301. STREAMLINING ANNUAL EVALUATION REQUIRE-
MENTS. 
Section 9(b) of the Small Business Act (15 U.S.C. 
638(b)), as amended by section l102 of this division, is 
amended— 
(1) in paragraph (7)—
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(A) by striking ‘‘STTR programs, including 
the data’’ and inserting the following: ‘‘STTR 
programs, including— 
‘‘(A) the data’’; 
(B) by striking ‘‘(g)(10), (o)(9), and (o)(15), 
the number’’ and all that follows through ‘‘under 
each of the SBIR and STTR programs, and a 
description’’ and inserting the following: ‘‘(g)(8) 
and (o)(9); and 
‘‘(B) the number of proposals received from, 
and the number and total amount of awards to, 
HUBZone small business concerns and firms 
with venture capital investment (including those 
majority owned and controlled by multiple ven-
ture capital firms) under each of the SBIR and 
STTR programs; 
‘‘(C) a description of the extent to which 
each Federal agency is increasing outreach and 
awards to firms owned and controlled by women 
and social or economically disadvantaged indi-
viduals under each of the SBIR and STTR pro-
grams; 
‘‘(D) general information about the imple-
mentation and compliance with the allocation of 
funds required under subsection (cc) for firms
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majority owned and controlled by multiple ven-
ture capital firms under each of the SBIR and 
STTR programs; 
‘‘(E) a detailed description of appeals of 
Phase III awards and notices of noncompliance 
with the SBIR and the STTR Policy Directives 
filed by the Administrator with Federal agencies; 
and 
‘‘(F) a description’’; and 
(2) by inserting after paragraph (7) the fol-
lowing: 
‘‘(8) to coordinate the implementation of elec-
tronic databases at each of the Federal agencies par-
ticipating in the SBIR program or the STTR pro-
gram, including the technical ability of the partici-
pating agencies to electronically share data;’’. 
SEC. 5302. DATA COLLECTION FROM AGENCIES FOR SBIR. 
Section 9(g) of the Small Business Act (15 U.S.C. 
638(g)) is amended— 
(1) by striking paragraph (10); 
(2) by redesignating paragraphs (8) and (9) as 
paragraphs (9) and (10), respectively; 
(3) by inserting after paragraph (7) the fol-
lowing:
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‘‘(8) collect annually, and maintain in a com-
mon format in accordance with the simplified report-
ing requirements under subsection (v), such informa-
tion from awardees as is necessary to assess the SBIR 
program, including information necessary to main-
tain the database described in subsection (k), includ-
ing— 
‘‘(A) whether an awardee— 
‘‘(i) has venture capital or is majority 
owned and controlled by multiple venture 
capital firms, and, if so— 
‘‘(I) the amount of venture capital 
that the awardee has received as of the 
date of the award; and 
‘‘(II) the amount of additional 
capital that the awardee has invested 
in the SBIR technology; 
‘‘(ii) has an investor that— 
‘‘(I) is an individual who is not a 
citizen of the United States or a lawful 
permanent resident of the United 
States, and if so, the name of any such 
individual; or 
‘‘(II) is a person that is not an 
individual and is not organized under
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the laws of a State or the United 
States, and if so the name of any such 
person; 
‘‘(iii) is owned by a woman or has a 
woman as a principal investigator; 
‘‘(iv) is owned by a socially or eco-
nomically disadvantaged individual or has 
a socially or economically disadvantaged 
individual as a principal investigator; 
‘‘(v) received assistance under the 
FAST program under section 34 or the out-
reach program under subsection (s); 
‘‘(vi) is a faculty member or a student 
of an institution of higher education, as 
that term is defined in section 101 of the 
Higher Education Act of 1965 (20 U.S.C. 
1001); or 
‘‘(vii) is located in a State described in 
subsection (u)(3); and 
‘‘(B) a justification statement from the 
agency, if an awardee receives an award in an 
amount that is more than the award guidelines 
under this section;’’; and 
(4) in paragraph (10), as so redesignated, by 
adding ‘‘and’’ at the end.
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SEC. 5303. DATA COLLECTION FROM AGENCIES FOR STTR. 
Section 9(o) of the Small Business Act (15 U.S.C. 
638(o)) is amended— 
(1) by striking paragraph (9) and inserting the 
following: 
‘‘(9) collect annually, and maintain in a com-
mon format in accordance with the simplified report-
ing requirements under subsection (v), such informa-
tion from applicants and awardees as is necessary to 
assess the STTR program outputs and outcomes, in-
cluding information necessary to maintain the data-
base described in subsection (k), including— 
‘‘(A) whether an applicant or awardee— 
‘‘(i) has venture capital or is majority 
owned and controlled by multiple venture 
capital firms, and, if so— 
‘‘(I) the amount of venture capital 
that the applicant or awardee has re-
ceived as of the date of the application 
or award, as applicable; and 
‘‘(II) the amount of additional 
capital that the applicant or awardee 
has invested in the SBIR technology; 
‘‘(ii) has an investor that— 
‘‘(I) is an individual who is not a 
citizen of the United States or a lawful
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permanent resident of the United 
States, and if so, the name of any such 
individual; or 
‘‘(II) is a person that is not an 
individual and is not organized under 
the laws of a State or the United 
States, and if so the name of any such 
person; 
‘‘(iii) is owned by a woman or has a 
woman as a principal investigator; 
‘‘(iv) is owned by a socially or eco-
nomically disadvantaged individual or has 
a socially or economically disadvantaged 
individual as a principal investigator; 
‘‘(v) received assistance under the 
FAST program under section 34 or the out-
reach program under subsection (s); 
‘‘(vi) is a faculty member or a student 
of an institution of higher education, as 
that term is defined in section 101 of the 
Higher Education Act of 1965 (20 U.S.C. 
1001); or 
‘‘(vii) is located in a State in which 
the total value of contracts awarded to 
small business concerns under all STTR
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programs is less than the total value of con-
tracts awarded to small business concerns 
in a majority of other States, as determined 
by the Administrator in biennial fiscal 
years, beginning with fiscal year 2008, 
based on the most recent statistics compiled 
by the Administrator; and 
‘‘(B) if an awardee receives an award in an 
amount that is more than the award guidelines 
under this section, a statement from the agency 
that justifies the award amount;’’; 
(2) in paragraph (14), by adding ‘‘and’’ at the 
end; 
(3) by striking paragraph (15); and 
(4) by redesignating paragraph (16) as para-
graph (15). 
SEC. 5304. PUBLIC DATABASE. 
Section 9(k)(1) of the Small Business Act (15 U.S.C. 
638(k)(1)) is amended— 
(1) in subparagraph (D), by striking ‘‘and’’ at 
the end; 
(2) in subparagraph (E), by striking the period 
at the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following:
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‘‘(F) for each small business concern that 
has received a Phase I or Phase II SBIR or 
STTR award from a Federal agency, whether the 
small business concern— 
‘‘(i) has venture capital and, if so, 
whether the small business concern is reg-
istered as majority owned and controlled by 
multiple venture capital companies as re-
quired under subsection (cc)(3); 
‘‘(ii) is owned by a woman or has a 
woman as a principal investigator; 
‘‘(iii) is owned by a socially or eco-
nomically disadvantaged individual or has 
a socially or economically disadvantaged 
individual as a principal investigator; 
‘‘(iv) received assistance under the 
FAST program under section 34 or the out-
reach program under subsection (s); or 
‘‘(v) is owned by a faculty member or 
a student of an institution of higher edu-
cation, as that term is defined in section 
101 of the Higher Education Act of 1965 
(20 U.S.C. 1001).’’.
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SEC. 5305. GOVERNMENT DATABASE. 
Section 9(k)(2) of the Small Business Act (15 U.S.C. 
638(k)(2)) is amended— 
(1) by redesignating subparagraphs (C), (D), 
and (E) as subparagraphs (D), (E), and (F), respec-
tively; 
(2) by inserting after subparagraph (B) the fol-
lowing: 
‘‘(C) includes, for each awardee— 
‘‘(i) the name, size, location, and any 
identifying number assigned to the awardee 
by the Administrator; 
‘‘(ii) whether the awardee has venture 
capital, and, if so— 
‘‘(I) the amount of venture capital 
as of the date of the award; 
‘‘(II) the percentage of ownership 
of the awardee held by a venture cap-
ital 
firm, 
including 
whether 
the 
awardee is majority owned and con-
trolled by multiple venture capital 
firms; and 
‘‘(III) the amount of additional 
capital that the awardee has invested 
in the SBIR technology, which infor-
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mation shall be collected on an annual 
basis; 
‘‘(iii) the names and locations of any 
affiliates of the awardee; 
‘‘(iv) the number of employees of the 
awardee; 
‘‘(v) the number of employees of the af-
filiates of the awardee; and 
‘‘(vi) the names of, and the percentage 
of ownership of the awardee held by— 
‘‘(I) any individual who is not a 
citizen of the United States or a lawful 
permanent resident of the United 
States; or 
‘‘(II) any person that is not an 
individual and is not organized under 
the laws of a State or the United 
States;’’; and 
(3) in subparagraph (D), as so redesignated— 
(A) in clause (ii), by striking ‘‘and’’ at the 
end; and 
(B) by adding at the end, the following: 
‘‘(iv) whether the applicant was major-
ity owned and controlled by multiple ven-
ture capital firms; and
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‘‘(v) the number of employees of the ap-
plicant;’’. 
SEC. 5306. ACCURACY IN FUNDING BASE CALCULATIONS. 
(a) IN GENERAL.—Not later than 1 year after the date 
of enactment of this Act, and every 3 years thereafter, the 
Comptroller General of the United States shall— 
(1) conduct a fiscal and management audit of 
the SBIR program and the STTR program for the 
applicable period to— 
(A) determine whether Federal agencies 
comply with the expenditure amount require-
ments under subsections (f)(1) and (n)(1) of sec-
tion 9 of the Small Business Act (15 U.S.C. 
638), as amended by this division; 
(B) assess the extent of compliance with the 
requirements of section 9(i)(2) of the Small Busi-
ness Act (15 U.S.C. 638(i)(2)) by Federal agen-
cies participating in the SBIR program or the 
STTR program and the Administration; 
(C) assess whether it would be more con-
sistent and effective to base the amount of the al-
locations under the SBIR program and the 
STTR program on a percentage of the research 
and development budget of a Federal agency,
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rather than the extramural budget of the Federal 
agency; and 
(D) determine the portion of the extramural 
research or research and development budget of a 
Federal agency that each Federal agency spends 
for administrative purposes relating to the SBIR 
program or STTR program, and for what spe-
cific purposes, including the portion, if any, of 
such budget the Federal agency spends for sala-
ries and expenses, travel to visit applicants, out-
reach events, marketing, and technical assist-
ance; and 
(2) submit a report to the Committee on Small 
Business and Entrepreneurship of the Senate and the 
Committee on Small Business of the House of Rep-
resentatives regarding the audit conducted under 
paragraph (1), including the assessments required 
under subparagraphs (B) and (C), and the deter-
mination made under subparagraph (D) of para-
graph (1). 
(b) DEFINITION OF APPLICABLE PERIOD.—In this sec-
tion, the term ‘‘applicable period’’ means— 
(1) for the first report submitted under this sec-
tion, the period beginning on October 1, 2000, and 
ending on September 30 of the last full fiscal year be-
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fore the date of enactment of this Act for which infor-
mation is available; and 
(2) for the second and each subsequent report 
submitted under this section, the period— 
(A) beginning on October 1 of the first fiscal 
year after the end of the most recent full fiscal 
year relating to which a report under this sec-
tion was submitted; and 
(B) ending on September 30 of the last full 
fiscal year before the date of the report. 
SEC. 5307. CONTINUED EVALUATION BY THE NATIONAL 
ACADEMY OF SCIENCES. 
Section 108 of the Small Business Reauthorization Act 
of 2000 (15 U.S.C. 638 note) is amended by adding at the 
end the following: 
‘‘(e) EXTENSIONS AND ENHANCEMENTS OF AUTHOR-
ITY.— 
‘‘(1) IN
GENERAL.—Not later than 6 months 
after the date of enactment of the SBIR/STTR Reau-
thorization Act of 2009, the head of each agency de-
scribed in subsection (a), in consultation with the 
Small Business Administration, shall cooperatively 
enter into an agreement with the National Academy 
of Sciences for the National Research Council to con-
duct a study described in subsection (a)(1) and make
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recommendations described in subsection (a)(2) not 
later than 4 years after the date of enactment of the 
SBIR/STTR Reauthorization Act of 2009, and every 
4 years thereafter. 
‘‘(2) REPORTING.—An agreement under para-
graph (1) shall require that not later than 4 years 
after the date of enactment of the SBIR/STTR Reau-
thorization Act of 2009, and every 4 years thereafter, 
the National Research Council shall submit to the 
head of the agency entering into the agreement, the 
Committee on Small Business and Entrepreneurship 
of the Senate, and the Committee on Small Business 
of the House of Representatives a report regarding the 
study conducted under paragraph (1) and containing 
the recommendations described in paragraph (1).’’. 
SEC. 5308. TECHNOLOGY INSERTION REPORTING REQUIRE-
MENTS. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended by this division, is amended by adding at the 
end the following: 
‘‘(gg) PHASE III REPORTING.—The annual SBIR or 
STTR report to Congress by the Administration under sub-
section (b)(7) shall include, for each Phase III award made 
by the Federal agency—
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‘‘(1) the name of the agency or component of the 
agency or the non-Federal source of capital making 
the Phase III award; 
‘‘(2) the name of the small business concern or 
individual receiving the Phase III award; and 
‘‘(3) the dollar amount of the Phase III award.’’. 
SEC. 5309. INTELLECTUAL PROPERTY PROTECTIONS. 
(a) IN GENERAL.—The Comptroller General of the 
United States shall conduct a study of the SBIR program 
to assess whether— 
(1) Federal agencies comply with the data rights 
protections for SBIR awardees and the technologies of 
SBIR awardees under section 9 of the Small Business 
Act (15 U.S.C. 638); 
(2) the laws and policy directives intended to 
clarify the scope of data rights, including in proto-
types and mentor-prote´ge´ relationships and agree-
ments with Federal laboratories, are sufficient to pro-
tect SBIR awardees; and 
(3) there is an effective grievance tracking proc-
ess for SBIR awardees who have grievances against 
a Federal agency regarding data rights and a process 
for resolving those grievances. 
(b) REPORT.—Not later than 18 months after the date 
of enactment of this Act, the Comptroller General shall sub-
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mit to the Committee on Small Business and Entrepreneur-
ship of the Senate and the Committee on Small Business 
of the House of Representatives a report regarding the study 
conducted under subsection (a). 
TITLE LIV—POLICY DIRECTIVES 
SEC. 5401. CONFORMING AMENDMENTS TO THE SBIR AND 
THE STTR POLICY DIRECTIVES. 
(a) IN GENERAL.—Not later than 180 days after the 
date of enactment of this Act, the Administrator shall pro-
mulgate amendments to the SBIR Policy Directive and the 
STTR Policy Directive to conform such directives to this 
division and the amendments made by this division. 
(b) PUBLISHING SBIR POLICY DIRECTIVE AND THE 
STTR POLICY DIRECTIVE IN THE FEDERAL REGISTER.— 
Not later than 180 days after the date of enactment of this 
Act, the Administrator shall publish the amended SBIR 
Policy Directive and the amended STTR Policy Directive 
in the Federal Register. 
SEC. 5402. PRIORITIES FOR CERTAIN RESEARCH INITIA-
TIVES. 
(a) IN GENERAL.—Section 9 of the Small Business Act 
(15 U.S.C. 638), as amended by this Act, is amended by 
adding at the end the following: 
‘‘(hh) RESEARCH INITIATIVES.—To the extent that 
such projects relate to the mission of the Federal agency,
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each Federal agency participating in the SBIR program 
or STTR program shall encourage the submission of appli-
cations for support of projects relating to security, energy, 
transportation, or improving the security and quality of 
the water supply of the United States to such program.’’. 
(b) SUNSET.—Effective October 1, 2014, section 9(hh) 
of the Small Business Act, as added by subsection (a) of 
this section, is repealed. 
SEC. 5403. REPORT ON SBIR AND STTR PROGRAM GOALS. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended by this Act, is amended by adding at the end 
the following: 
‘‘(ii) ANNUAL REPORT ON SBIR AND STTR PROGRAM 
GOALS.— 
‘‘(1) DEVELOPMENT OF METRICS.—The head of 
each Federal agency required to participate in the 
SBIR program or the STTR program shall develop 
metrics to evaluate the effectiveness, and the benefit to 
the people of the United States, of the SBIR program 
and the STTR program of the Federal agency that— 
‘‘(A) are science-based and statistically 
driven; 
‘‘(B) reflect the mission of the Federal agen-
cy; and