Title: Research Advancing to Market Production for Innovators Act
Policy area: Commerce

Summary:
Research Advancing to Market Production for Innovators Act
This bill provides commercialization services for federally funded small business research and development under the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs.
Specifically, the bill (1) expedites the application and award process for SBIR proposals and STTR solicitations, (2) requires determinations of commercialization potential for projects undertaken through SBIR and STTR awards, (3) provides continued flexibility of technical and business assistance for SBIR and STTR awardees, (4) instructs participating federal agencies to designate a technology commercialization official to help awardees commercialize, and (5) requires the Small Business Administration and the U.S. Patent Office to reach an interagency agreement to help SBIR and STTR awardees with intellectual property protection.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 3109 Introduced in Senate (IS)]

<DOC>






117th CONGRESS
  1st Session
                                S. 3109

To improve commercialization activities in the SBIR and STTR programs, 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 28, 2021

 Mr. Coons (for himself and Mr. Rubio) introduced the following bill; 
 which was read twice and referred to the Committee on Small Business 
                          and Entrepreneurship

_______________________________________________________________________

                                 A BILL


 
To improve commercialization activities in 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 ``Research Advancing to Market 
Production for Innovators Act''.

SEC. 2. IMPROVEMENTS TO COMMERCIALIZATION SELECTION.

    (a) In General.--Section 9 of the Small Business Act (15 U.S.C. 
638) is amended--
            (1) in subsection (g)--
                    (A) in paragraph (4)(B)(i), by striking ``1 year'' 
                and inserting ``180 days'';
                    (B) in paragraph (11), by striking ``and'' at the 
                end;
                    (C) in paragraph (12), by striking the period at 
                the end and inserting ``; and''; and
                    (D) by adding at the end the following:
            ``(13) with respect to peer review carried out under the 
        SBIR program, to the extent practicable, include in the peer 
        review--
                    ``(A) the likelihood of commercialization in 
                addition to scientific and technical merit and 
                feasibility; and
                    ``(B) not less than 1 reviewer with 
                commercialization expertise who is capable of assessing 
                the likelihood of commercialization.'';
            (2) in subsection (o)--
                    (A) in paragraph (4)(B)(i), by striking ``1 year'' 
                and inserting ``180 days'';
                    (B) in paragraph (15), by striking ``and'' at the 
                end;
                    (C) in paragraph (16), by striking the period at 
                the end and inserting ``; and''; and
                    (D) by adding at the end the following:
            ``(17) with respect to peer review carried out under the 
        STTR program, to the extent practicable, include in the peer 
        review--
                    ``(A) the likelhood of commercialization in 
                addition to scientific and technical merit and 
                feasibility; and
                    ``(B) not less than 1 reviewer with 
                commercialization expertise who is capable of assessing 
                the likelihood of commercialization.'';
            (3) in subsection (cc)--
                    (A) by striking ``During fiscal years 2012 through 
                2022, the National Institutes of Health, the Department 
                of Defense, and the Department of Education'' and 
                inserting the following:
            ``(1) In general.--During fiscal years 2022 through 2027, 
        each Federal agency with an SBIR or STTR program''; and
                    (B) by adding at the end the following:
            ``(2) Limitation.--The total value of awards provided by a 
        Federal agency under this subsection in a fiscal year shall 
        be--
                    ``(A) except as provided in subparagraph (B), not 
                more than 10 percent of the total funds allocated to 
                the SBIR and STTR programs of the Federal agency during 
                that fiscal year; and
                    ``(B) with respect to the National Institutes of 
                Health, not more than 15 percent of the total funds 
                allocated to the SBIR and STTR programs of the National 
                Institutes of Health during that fiscal year.
            ``(3) Extension.--During fiscal years 2026 and 2027, each 
        Federal agency with an SBIR or STTR program may continue phase 
        flexibility as described in this subsection only if the reports 
        required under subsection (tt)(1)(B) have been submitted to the 
        appropriate committees.'';
            (4) in subsection (hh)(2)(A)(i), by inserting ``application 
        process and requirements'' after ``simplified and 
        standardized''; and
            (5) by adding at the end the following:
    ``(vv) Technology Commercialization Official.--Each Federal agency 
participating in the SBIR or STTR program shall designate a Technology 
Commercialization Official in the Federal agency, who shall--
            ``(1) have sufficient commercialization experience;
            ``(2) provide assistance to SBIR and STTR program awardees 
        in commercializing and transitioning technologies;
            ``(3) identify SBIR and STTR program technologies with 
        sufficient technology and commercialization readiness to 
        advance to Phase III awards or other non-SBIR or STTR program 
        contracts;
            ``(4) coordinate with the Technology Commercialization 
        Officials of other Federal agencies to identify additional 
        markets and commercialization pathways for promising SBIR and 
        STTR program technologies;
            ``(5) submit to the Administration an annual report on the 
        number of technologies from the SBIR or STTR program that have 
        advanced commercialization activities, including information 
        required in the commercialization impact assessment under 
        subsection (xx);
            ``(6) submit to the Administration an annual report on 
        actions taken by the Federal agency, and the results of those 
        actions, to simplify, standardize, and expedite the application 
        process and requirements, procedures, and contracts as required 
        under subsection (hh) and described in subsection (xx)(E); and
            ``(7) carry out such other duties as the Federal agency 
        determines necessary.''.
    (b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Administrator of the Small Business Administration shall 
submit to the Committee on Small Business and Entrepreneurship of the 
Senate and the Committee on Small Business of the House of 
Representatives summarizing the metrics relating to and an evaluation 
of the authority provided under section 9(cc) of the Small Business 
Act, as amended by subsection (a), which shall include the size and 
location of the small business concerns receiving awards under the SBIR 
or STTR program.

SEC. 3. IMPROVEMENTS TO TECHNICAL AND BUSINESS ASSISTANCE; 
              COMMERCIALIZATION IMPACT ASSESSMENT; PATENT ASSISTANCE.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
section 2, is amended--
            (1) in subsection (q)--
                    (A) in paragraph (1), in the matter preceding 
                subparagraph (A)--
                            (i) by striking ``may enter into an 
                        agreement with 1 or more vendors selected under 
                        paragraph (2)(A)'' and inserting ``shall 
                        authorize recipients of awards under the SBIR 
                        or STTR program to select, if desired, 
                        commercialization activities provided under 
                        subparagraph (A), (B), or (C) of paragraph 
                        (2)''; and
                            (ii) by inserting ``, cybersecurity 
                        assistance'' after ``intellectual property 
                        protections'';
                    (B) in paragraph (2), by adding at the end the 
                following:
                    ``(C) Staff.--A small business concern may, by 
                contract or otherwise, use funding provided under this 
                section to hire new staff, augment staff, or direct 
                staff to conduct or participate in training activities 
                consistent with the goals listed in paragraph (1).'';
                    (C) in paragraph (3), by striking subparagraphs (A) 
                and (B) and inserting the following:
                    ``(A) Phase i.--A Federal agency described in 
                paragraph (1) shall authorize a recipient of a Phase I 
                SBIR or STTR award to utilize not more than $6,500 per 
                project, included as part of the award of the recipient 
                or in addition to the amount of the award of the 
                recipient as determined appropriate by the head of the 
                Federal agency, for the services described in paragraph 
                (1)--
                            ``(i) provided through a vendor selected 
                        under paragraph (2)(A);
                            ``(ii) provided through a vendor other than 
                        a vendor selected under paragraph (2)(A);
                            ``(iii) achieved through the activities 
                        described in paragraph (2)(C); or
                            ``(iv) provided or achieved through any 
                        combination of clauses (i), (ii), and (iii).
                    ``(B) Phase ii.--A Federal agency described in 
                paragraph (1) shall authorize a recipient of a Phase II 
                SBIR or STTR award to utilize not more than $50,000 per 
                project, included as part of the award of the recipient 
                or in addition to the amount of the award of the 
                recipient as determined appropriate by the head of the 
                Federal agency, for the services described in paragraph 
                (1)--
                            ``(i) provided through a vendor selected 
                        under paragraph (2)(A);
                            ``(ii) provided through a vendor other than 
                        a vendor selected under paragraph (2)(A);
                            ``(iii) achieved through the activities 
                        described in paragraph (2)(C); or
                            ``(iv) provided or achieved through any 
                        combination of clauses (i), (ii), and (iii).''; 
                        and
                    (D) by adding at the end the following:
            ``(5) Targeted review.--A Federal agency may perform 
        targeted reviews of technical and business assistance funding 
        as described in subsection (mm)(1)(F).''; and
            (2) by adding at the end the following:
    ``(ww) I-Corps Participation.--
            ``(1) In general.--Each Federal agency that is required to 
        conduct an SBIR or STTR program with an Innovation Corps 
        (commonly known as `I-Corps') program shall--
                    ``(A) provide an option for participation in an I-
                Corps teams course by recipients of an award under the 
                SBIR or STTR program; and
                    ``(B) authorize the recipients described in 
                subparagraph (A) to use an award provided under 
                subsection (q) to provide additional technical 
                assistance for participation in the I-Corps teams 
                course.
            ``(2) Cost of participation.--The cost of participation by 
        a recipient described in paragraph (1)(A) in an I-Corps course 
        may be provided by--
                    ``(A) an I-Corps team grant;
                    ``(B) funds awarded to the recipient under 
                subsection (q);
                    ``(C) the participating teams or other sources as 
                appropriate; or
                    ``(D) any combination of sources described in 
                subparagraphs (A), (B), and (C).
    ``(xx) Commercialization Impact Assessment.--
            ``(1) In general.--The Administrator shall coordinate with 
        each Federal agency with an SBIR or STTR program to develop an 
        annual commercialization impact assessment report of the 
        Federal agency, which shall measure, for the 5-year period 
        preceding the report--
                    ``(A) for Phase II contracts--
                            ``(i) the total amount of sales of new 
                        products and services to the Federal Government 
                        or other commercial markets;
                            ``(ii) the total outside investment from 
                        partnerships, joint ventures, or other private 
                        sector funding sources;
                            ``(iii) the total number of technologies 
                        licensed to other companies;
                            ``(iv) the total number of acquisitions of 
                        small business concerns participating in the 
                        SBIR program or the STTR program that are 
                        acquired by other entities;
                            ``(v) the total number of new spin-out 
                        companies;
                            ``(vi) the total outside investment from 
                        venture capital or angel investments;
                            ``(vii) the total number of patent 
                        applications;
                            ``(viii) the total number of patents 
                        acquired;
                            ``(ix) the year of first Phase I award and 
                        the total number of employees at time of first 
                        Phase I award;
                            ``(x) the total number of employees from 
                        the preceding completed year; and
                            ``(xi) the percent of revenue, as of the 
                        date of the report, generated through SBIR or 
                        STTR program funding;
                    ``(B) the total number and value of subsequent 
                Phase II awards, as described in subsection (bb), 
                awarded for each particular project or technology;
                    ``(C) the total number and value of Phase III 
                awards awarded subsequent to a Phase II award;
                    ``(D) the total number and value of non-SBIR and 
                STTR program Federal awards and contracts; and
                    ``(E) actions taken by the Federal agency, and the 
                results of those actions, relating to developing a 
                simplified and standardized application process and 
                requirements, procedures, and model contracts 
                throughout the Federal agency for Phase I, Phase II, 
                and Phase III SBIR program awards in subsection (hh).
            ``(2) Publication.--A commercialization impact assessment 
        report described in paragraph (1) of a Federal agency shall 
        be--
                    ``(A) included in the annual report of the Federal 
                agency required under this section; and
                    ``(B) published on the website of the 
                Administration.
    ``(yy) Patent Assistance.--
            ``(1) Definitions.--In this subsection--
                    ``(A) the term `low bono services' means services 
                provided at a reduced fee; and
                    ``(B) the term `USPTO' means the United States 
                Patent and Trademark Office.
            ``(2) Assistance.--The Administrator shall enter into an 
        interagency agreement with the USPTO to assist recipients of an 
        award under the SBIR or STTR program (in this paragraph 
        referred to as `SBIR and STTR recipients') relating to 
        intellectual property protection through--
                    ``(A) track one processing, under which the USPTO 
                may--
                            ``(i) allocate--
                                    ``(I) not less than 5 percent or 
                                500 track one requests, whichever is 
                                greater, per year to SBIR and STTR 
                                recipients on a first-come, first-
                                served basis; and
                                    ``(II) not more than 2 track one 
                                requests to an individual SBIR and STTR 
                                recipient, to expedite final 
                                disposition on SBIR and STTR program 
                                patent applications; and
                            ``(ii) waive the track one fee requirement 
                        for SBIR and STTR recipients; and
                    ``(B) through the USPTO Patent Pro Bono Program, 
                providing SBIR and STTR recipients--
                            ``(i) pro bono services if the recipient--
                                    ``(I) had a total gross income of 
                                more than $150,000 but less than 
                                $5,000,000 in the preceding calendar 
                                year, and expects a total gross income 
                                of more than $150,000 but less than 
                                $5,000,000 in the current calendar 
                                year;
                                    ``(II) is not under any obligation 
                                to assign the rights to the invention 
                                to another entity other than the 
                                Federal Government; and
                                    ``(III) has not previously received 
                                USPTO pro bono or low bono services; or
                            ``(ii) low bono services if the recipient--
                                    ``(I) had a total gross income of 
                                more than $5,000,000 but less than 
                                $10,000,000 in the preceding calendar 
                                year, and expects a total gross income 
                                of more than $5,000,000 but less than 
                                $10,000,000 in the current calendar 
                                year;
                                    ``(II) is not under any obligation 
                                to assign the rights to the invention 
                                to another entity other than the 
                                Federal Government; and
                                    ``(III) has not previously received 
                                USPTO pro bono or low bono services.
            ``(3) Outreach.--The Administrator shall coordinate with 
        the USPTO to provide outreach regarding the pro se assistance 
        program and scam prevention services of the USPTO.''.
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