Title: SBIR and STTR Permanency and Improvement Act of 2019
Policy area: Commerce

Summary:
SBIR and STTR Permanency and Improvement Act of 2019
This bill permanently authorizes the Small Business Innovation and Research (SBIR) and Small Business Technology Transfer (STTR) programs and otherwise modifies provisions governing the administration of the programs.
Specifically, the bill increases the allocation of each federal agency's extramural research budget for the SBIR and STTR programs. The bill also requires each agency participating in the programs to reduce the time between application and award disbursement. Lastly, the bill authorizes each agency participating in the SBIR program to award up to 25% of allocated funding to small businesses that are backed by venture capital.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 2045 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  1st Session
                                S. 2045

   To reauthorize the SBIR and STTR programs, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 27, 2019

 Mrs. Shaheen (for herself, Mr. Rubio, and Mr. Cardin) introduced the 
 following bill; which was read twice and referred to the Committee on 
                  Small Business and Entrepreneurship

_______________________________________________________________________

                                 A BILL


 
   To reauthorize the SBIR and STTR programs, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``SBIR and STTR Permanency and 
Improvement Act of 2019''.

SEC. 2. PERMANENCY OF SBIR AND STTR PROGRAMS.

    (a) SBIR.--Section 9(m) of the Small Business Act (15 U.S.C. 
638(m)) is amended--
            (1) in the subsection heading, by striking ``Termination'' 
        and inserting ``SBIR Program Authorization''; and
            (2) by striking ``terminate on September 30, 2022'' and 
        inserting ``be in effect for each fiscal year''.
    (b) STTR.--Section 9(n)(1)(A) of the Small Business Act (15 U.S.C. 
638(n)(1)(A)) is amended by striking ``through fiscal year 2022''.

SEC. 3. ALLOCATION INCREASE.

    (a) SBIR.--Section 9(f)(1) of the Small Business Act (15 U.S.C. 
638(f)) is amended--
            (1) in the matter preceding subparagraph (A), by striking 
        ``expend'' and inserting ``obligate for expenditure'';
            (2) in subparagraph (H), by striking ``and'' at the end;
            (3) in subparagraph (I), by striking ``and each fiscal year 
        thereafter,'' and inserting a semicolon; and
            (4) by inserting after subparagraph (I) the following:
                    ``(J) not less than 3.5 percent of such budget in 
                fiscal year 2020;
                    ``(K) not less than 4 percent of such budget in 
                fiscal year 2021;
                    ``(L) not less than 5 percent of such budget in 
                fiscal year 2022;
                    ``(M) not less than 6 percent of such budget in 
                fiscal year 2023; and
                    ``(N) not less than 6.4 percent of such budget in 
                fiscal year 2024 and each fiscal year thereafter.''.
    (b) STTR.--Section 9(n)(1) of the Small Business Act (15 U.S.C. 
638(n)(1)) is amended--
            (1) in subparagraph (A), by striking ``expend'' and 
        inserting ``obligate for expenditure''; and
            (2) in subparagraph (B)--
                    (A) in clause (iv), by striking ``and'' at the end;
                    (B) in clause (v), by striking ``fiscal year 2016 
                and each fiscal year thereafter.'' and inserting 
                ``fiscal year 2019;''; and
                    (C) by adding at the end the following:
                            ``(vi) 0.55 percent for fiscal year 2020;
                            ``(vii) 0.65 percent for fiscal year 2021;
                            ``(viii) 0.75 percent for fiscal year 2022;
                            ``(ix) 0.85 percent for fiscal year 2023; 
                        and
                            ``(x) 1 percent for fiscal year 2024 and 
                        each fiscal year thereafter.''.

SEC. 4. ACCELERATING AWARD TIMELINES ACROSS AGENCIES.

    Section 9 of the Small Business Act (15 U.S.C. 638) is amended--
            (1) in subsection (g)(8)--
                    (A) in subparagraph (B), by striking ``and'' at the 
                end;
                    (B) in subparagraph (C), by adding ``and'' at the 
                end; and
                    (C) by adding at the end the following:
                    ``(D) the average and median amount of time that 
                each Federal agency with an SBIR program takes to 
                review and make a final decision on proposals submitted 
                under the program;'';
            (2) in subsection (o)(9)--
                    (A) in subparagraph (B), by striking ``and'' at the 
                end;
                    (B) in subparagraph (C), by adding ``and'' at the 
                end; and
                    (C) by adding at the end the following:
                    ``(D) the average and median amount of time that 
                each Federal agency with an STTR program takes to 
                review and make a final decision on proposals submitted 
                under the program;'';
            (3) in subsection (hh)--
                    (A) by adding at the end the following:
            ``(3) Requirement to accelerate all sbir and sttr awards.--
        Not later than 1 year after the date of enactment of this 
        paragraph, each Federal agency participating in the SBIR 
        program or STTR program, other than the Department of Defense, 
        shall establish a program to reduce the time for awards under 
        the SBIR and STTR programs of the Federal agency by--
                    ``(A) developing simplified and standardized 
                procedures and model contracts throughout the Federal 
                agency for Phase I, Phase II, and Phase III SBIR 
                awards;
                    ``(B) for Phase I SBIR and STTR awards, reducing 
                the amount of time between solicitation closure and 
                award;
                    ``(C) for Phase II SBIR and STTR awards, reducing 
                the amount of time between the end of a Phase I award 
                and the start of the Phase II award;
                    ``(D) for Phase II SBIR and STTR awards that skip 
                Phase I, reducing the amount of time between 
                solicitation closure and award;
                    ``(E) for sequential Phase II SBIR and STTR awards, 
                reducing the amount of time between Phase II awards; 
                and
                    ``(F) reducing the award times described in 
                subparagraphs (B), (C), (D), (E), and (F) to be as 
                close to 90 days as possible.''; and
            (4) in subsection (ii), by adding at the end the following:
            ``(3) Additional comptroller general reports.--The 
        Comptroller General of the United States shall submit to the 
        Committee on Small Business and Entrepreneurship of the Senate 
        and the Committee on Small Business of the House of 
        Representatives--
                    ``(A) not later than 2 years after the date of 
                enactment of this paragraph, a report that--
                            ``(i) provides the average and median 
                        amount of time that each Federal agency with an 
                        SBIR or STTR program takes to review and make a 
                        final decision on proposals submitted under the 
                        program; and
                            ``(ii) compares that average and median 
                        amount of time with that of the previous 5 
                        fiscal years; and
                    ``(B) not later than March 31, 2023, a report 
                that--
                            ``(i) includes the information described in 
                        subparagraph (A);
                            ``(ii) assesses where each Federal agency 
                        participating in the SBIR or STTR program needs 
                        improvement with respect to the proposal review 
                        and award times under the program;
                            ``(iii) identifies best practices for 
                        shortening the proposal review and award times 
                        under the SBIR and STTR programs; and
                            ``(iv) analyzes the efficacy of the program 
                        established under subsection (hh)(3).''.

SEC. 5. ENCOURAGING VENTURE CAPITAL-OWNED PROGRAM PARTICIPANTS.

    Section 9(dd) of the Small Business Act (15 U.S.C. 638(dd)) is 
amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(1) Authority.--The head of a Federal agency that 
        participates in the SBIR program--
                    ``(A) may award not more than 25 percent of the 
                funds allocated for the SBIR program of the Federal 
                agency to small business concerns that are owned in 
                majority part by multiple venture capital operating 
                companies, hedge funds, or private equity firms through 
                competitive, merit-based procedures that are open to 
                all eligible small business concerns; and
                    ``(B) may not award any funds allocated for the 
                SBIR program of the Federal agency to small business 
                concerns owned by venture capital operating companies, 
                hedge funds, or private equity firms whose owners do 
                not have United States citizenship.'';
            (2) by striking paragraph (2);
            (3) by redesignating paragraphs (3) through (7) as 
        paragraphs (2) through (6); and
            (4) in paragraph (2), as so redesignated--
                    (A) in subparagraph (A), by striking ``and'' at the 
                end;
                    (B) in subparagraph (B), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(C) indicate if any of the venture capital 
                operating companies, hedge fund, or private equity firm 
                owners of the small business concern do not have United 
                States citizenship.''.

SEC. 6. PHASE III AWARD EDUCATION.

    Section 9(r)(4) of the Small Business Act (15 U.S.C. 638(r)(4)) is 
amended--
            (1) in subparagraph (A), by striking ``and'' at the end;
            (2) in subparagraph (B), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(C) train contracting officers in the execution 
                of Phase III sole source award contracts.''.
                                 <all>