HR 2965 RDS
propriations Act, 2001 (Public Law 106–554), is amend-
ed— 
(1) by striking ‘‘of the Senate’’ and all that fol-
lows through ‘‘not later than 3’’ and inserting ‘‘of 
the Senate, not later than 3’’; and 
(2) by striking ‘‘; and’’ and all that follows 
through ‘‘update of such report’’. 
SEC. 410. EXPRESS AUTHORITY TO ‘‘FAST-TRACK’’ PHASE 
TWO AWARDS FOR PROMISING PHASE ONE 
RESEARCH. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended, is further amended by adding at the end the 
following: 
‘‘(ii) AUTHORITY TO ‘FAST-TRACK’ PHASE TWO 
AWARDS FOR PROMISING PHASE ONE RESEARCH.—To 
address the delay between an award for the first phase 
of an SBIR program and the application for and extension 
of an award for the second phase of such program, each 
Federal agency with an SBIR program may develop ‘fast- 
track’ programs to eliminate such delay by issuing second 
phase SBIR awards as soon as practicable, including in 
appropriate cases simultaneously with the issuance of the 
first phase SBIR award. The Administrator shall encour-
age the development of such ‘fast-track’ programs.’’. 
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SEC. 411. INCREASED SBIR AND STTR AWARD LEVELS. 
(a) SBIR AWARD LEVEL
AND ANNUAL ADJUST-
MENTS.—Section 9(j) of the Small Business Act (15 
U.S.C. 638(j)) is amended by adding at the end the fol-
lowing: 
‘‘(4) FURTHER ADDITIONAL MODIFICATIONS.—Not 
later than 180 days after the date of enactment of this 
paragraph and notwithstanding paragraph (2)(D), the Ad-
ministrator shall modify the policy directives issued pursu-
ant to this subsection to provide for an increase to 
$250,000 in the amount of funds which an agency may 
award in the first phase of an SBIR program, and to 
$2,000,000 in the second phase of an SBIR program, and 
a mandatory annual adjustment of such amounts to reflect 
economic adjustments and programmatic considerations.’’. 
(b) STTR AWARD LEVEL AND ANNUAL ADJUST-
MENTS.—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 ‘‘$750,000’’ 
and inserting ‘‘$250,000’’ and ‘‘$2,000,000’’, re-
spectively; and 
(2) by striking ‘‘greater or lesser amounts’’ and 
inserting ‘‘with a mandatory annual adjustment of 
such amounts to reflect economic adjustments and 
programmatic 
considerations, 
and 
with 
lesser 
amounts’’. 
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(c) LIMITATION ON CERTAIN AWARDS.—Section 9 of 
the Small Business Act (15 U.S.C. 638), as amended, is 
further amended by adding at the end the following: 
‘‘(jj) LIMITATION ON PHASE I AND II AWARDS.—No 
Federal agency shall issue an award under the SBIR pro-
gram or the STTR program if the size of the award ex-
ceeds the amounts established under subsections (j)(4) 
and (p)(2)(B)(ix).’’. 
SEC. 412. EXPRESS AUTHORITY FOR AN AGENCY TO AWARD 
SEQUENTIAL PHASE TWO AWARDS FOR SBIR- 
FUNDED PROJECTS. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended, is further amended by adding at the end the 
following: 
‘‘(kk) REQUIREMENTS RELATING
TO ADDITIONAL 
SECOND PHASE SBIR AWARDS.— 
‘‘(1) IN GENERAL.—A small business concern 
that receives a second phase SBIR award for a 
project remains eligible to receive additional second 
phase SBIR awards for such project. 
‘‘(2) TECHNICAL
OR
WEAPONS
SYSTEMS.— 
Agencies are expressly authorized to provide addi-
tional second phase SBIR awards for testing and 
evaluation assistance for the insertion of SBIR tech-
nologies into technical or weapons systems.’’. 
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SEC. 413. FIRST PHASE REQUIRED. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended, is further amended by adding at the end the 
following: 
‘‘(ll) FIRST PHASE REQUIRED.—Under this section, 
a Federal agency shall provide to a small business concern 
an award for the second phase of an SBIR program with 
respect to a project only if such agency finds that the 
small business concern has been provided an award for 
the first phase of an SBIR program with respect to such 
project or has completed the determinations described in 
subsection (e)(4)(A) with respect to such project despite 
not having been provided an award for the first phase.’’. 
SEC. 414. INVOLVEMENT OF CHIEF COUNSEL FOR ADVO-
CACY. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended, is further amended by adding at the end the 
following: 
‘‘(mm) INVOLVEMENT OF CHIEF COUNSEL FOR AD-
VOCACY.—The Chief Counsel for Advocacy, as described 
in section 201 of Public Law 94–305 (15 U.S.C. 634a), 
and any individual reporting to the Chief Counsel for Ad-
vocacy, without regard to whether such individual was 
hired under section 204 of Public Law 94–305 (15 U.S.C. 
634d), may not provide to the Administrator, to any indi-
vidual who reports directly or indirectly to the Adminis-
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trator, or to any Federal agency any advice, guidance, 
oversight, or review with respect to the programs author-
ized under this section.’’. 
SEC. 415. MINORITY INSTITUTION PROGRAM. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended, is further amended by adding at the end the 
following: 
‘‘(nn) MINORITY INSTITUTION PROGRAM.— 
‘‘(1) ESTABLISHMENT.—From amounts made 
available to carry out this subsection, the Adminis-
trator shall establish and carry out a program to 
make grants to minority institutions that partner 
with nonprofit organizations that have experience 
developing relationships between industry, minority 
institutions, and other entities, for the purpose of in-
creasing the number of SBIR and STTR program 
applications by minority-owned small businesses. 
‘‘(2) APPLICATION.—To be eligible to receive a 
grant under paragraph (1), a minority institution 
shall submit an application to the Administrator at 
such time, in such manner, and containing such in-
formation and assurances as the Administrator may 
require. 
‘‘(3) MATCHING REQUIREMENT.—As a condi-
tion of a grant under paragraph (1), the Adminis-
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trator shall require that a minority institution pro-
vide a matching amount from a source other than 
the Federal Government that is equal to the amount 
of the grant. 
‘‘(4) MINORITY
INSTITUTION
DEFINED.—In 
this subsection, the term ‘minority institution’ has 
the meaning given that term in section 365(3) of the 
Higher 
Education 
Act 
of 
1965 
(20 
U.S.C. 
1067k(3)). 
‘‘(5) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to carry out 
this subsection $4,000,000 for each of fiscal years 
2010 and 2011.’’. 
SEC. 416. AREAS THAT HAVE LOST A MAJOR SOURCE OF 
EMPLOYMENT. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended, is further amended by adding at the end the 
following: 
‘‘(oo) AREAS THAT HAVE LOST A MAJOR SOURCE 
OF EMPLOYMENT.—In making awards under this section, 
Federal agencies shall give priority to applications so as 
to increase the number of SBIR and STTR award recipi-
ents from geographic areas determined by the Adminis-
trator to have lost a major source of employment.’’. 
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STTR award recipients that are small business concerns 
owned and controlled by veterans.’’. 
SEC. 419. MEDICAL TECHNOLOGY. 
Section 9(g)(3) of the Small Business Act (15 U.S.C. 
638(g)(3)), as amended, is further amended in the matter 
preceding subparagraph (A) by inserting after ‘‘broad re-
search topics’’ the following: ‘‘and research topics relating 
to medical technology’’. 
TITLE 
V—IMPROVING 
WATER 
USE 
AND 
TRANSMISSION 
TECHNOLOGY 
SEC. 501. IMPROVING WATER USE AND TRANSMISSION 
TECHNOLOGY. 
Not later than 1 year after the date of the enactment 
of this Act, Federal agencies with an SBIR program, as 
appropriate, shall jointly develop and issue a small busi-
ness innovation research solicitation that requests re-
search proposals with respect to improving the efficiency 
of water delivery systems and usage patterns in the United 
States and its territories through the use of technology. 
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TITLE VI—GAO STUDY WITH RE-
SPECT TO VENTURE CAPITAL 
OPERATING 
COMPANY 
IN-
VOLVEMENT 
SEC. 601. GAO STUDY WITH RESPECT TO VENTURE CAPITAL 
OPERATING COMPANY INVOLVEMENT. 
The Comptroller General of the United States shall 
carry out a study of the impact of requirements relating 
to venture capital operating company involvement under 
section 9(aa) of the Small Business Act, as added by sec-
tion 102 of this Act. Not later than 1 year after the date 
of the enactment of this Act, the Comptroller General shall 
submit to Congress a report on the results of the study. 
Passed the House of Representatives July 8, 2009. 
Attest: 
LORRAINE C. MILLER, 
Clerk. 
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