II 113th CONGRESS 2d Session S. 2551 IN THE SENATE OF THE UNITED STATES June 26, 2014 Mrs. Gillibrand (for herself and Mr. Coats ) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship A BILL To amend the Small Business Act to establish the Innovative Approaches to Technology Transfer Grant Program.

1. Short title This Act may be cited as the Technology and Research Accelerating National Security and Future Economic Resiliency Act of 2014 or the TRANSFER Act . 2. Innovative approaches to technology transfer grant program Section 9(jj) of the Small Business Act ( 15 U.S.C. 638(jj) ) is amended to read as follows: (jj) Innovative approaches to technology transfer (1) Grant program (A) Definitions In this subsection— (i) the term covered agency means a Federal agency that is required to establish an STTR program under subsection (n); (ii) the term eligible institution means— (I) an institution of higher education; (II) a technology transfer organization that facilitates the commercialization of technologies developed by 1 or more institutions of higher education; (III) a Federal laboratory; (IV) a public or private nonprofit entity; or (V) a consortium of any of the entities described under subclause (I), (II), (III), or (IV); (iii) the term Federal laboratory has the meaning given that term under section 4(6) of the Stevenson-Wydler Technology Innovation Act of 1980 ( 15 U.S.C. 3703(6) ); (iv) the term institution of higher education has the meaning given that term under section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)); and (v) the term program means an Innovative Approaches to Technology Transfer Grant Program established by a covered agency under subparagraph (B). (B) Establishment of program The head of each covered agency shall establish a grant program, to be known as the Innovative Approaches to Technology Transfer Grant Program of the covered agency, to make grants to eligible institutions to improve or accelerate the commercialization of high quality and commercially viable federally funded research and technology by small business concerns. (C) Use of Funds Grants awarded under a program may be used to— (i) provide early-stage proof of concept funding for translational research; (ii) identify research and technology that have the potential for accelerated commercialization; (iii) support technology maturation activities, including prototype construction, experiment analysis, product comparison, and the collection of performance data; (iv) provide funding for technical validations, market research, clarifying intellectual property rights position and strategy, and investigating commercial and business opportunities; (v) provide advice, mentoring, entrepreneurial education, project management, and technology and business development expertise to innovators and recipients of technology transfer licenses to maximize commercialization potential; and (vi) conduct outreach to small business concerns as potential licensees of federally funded research and technology to provide technology transfer services to those small business concerns. (D) Application (i) In general An eligible institution desiring a grant under the program shall submit an application to a covered agency at such time, in such manner, and containing such information as the covered agency may require. (ii) Required information An application submitted for a grant under the program shall include— (I) (aa) a description of innovative approaches to technology transfer, technology development, and commercial readiness that have the potential to increase or accelerate technology transfer outcomes and can be adopted by other eligible institutions; or (bb) a demonstration of, or a plan to implement, proven technology transfer and commercialization strategies that can achieve greater commercialization of federally funded research and technology with a grant under the program; (II) a description of how the eligible institution will contribute to local and regional economic development efforts; (III) a plan for sustainability after grant amounts have been expended; and (IV) a plan to assemble an oversight board in accordance with subparagraph (F). (E) Competitive basis A covered agency shall award grants to eligible institutions under the program of the covered agency on a competitive basis. (F) Oversight board (i) In general An eligible institution that receives a grant under the program shall assemble an oversight board to— (I) establish award programs for individual projects, including an application process; (II) provide rigorous evaluation of project applications; (III) determine which projects should receive awards from the eligible institution; (IV) establish milestones and associated award amounts for projects that reach certain milestones; (V) determine whether a project is reaching the established milestones; and (VI) develop a process to reallocate outstanding award amounts from projects that are not reaching milestones to other projects with more potential to reach those milestones. (ii) Membership and qualifications (I) In general An oversight board assembled under clause (i) shall be composed of members who shall have demonstrated relevant technical, scientific, or business expertise, of whom three-fifths shall be drawn from relevant industries, start-up companies, venture capital or other equity investment mechanisms, technical enterprises, financial institutions, and business development organizations with a track record of success in commercializing innovations. (II) Conflicts of interest An oversight board assembled under clause (i) shall adopt policies that— (aa) prohibit conflicts of interest among members of the oversight board; (bb) ensure that relevant relationships are disclosed; and (cc) establish proper re­cus­al procedures in the event of a conflict of interest. (iii) Use of existing oversight boards An eligible institution may use oversight boards in existence on the date of the enactment of the Technology and Research Accelerating National Security and Future Economic Resiliency Act of 2014 that meet the requirements of this subparagraph. (G) Grant and award amounts (i) Grant amounts The amount of a grant made by a covered agency under the program of the covered agency shall be not more than $3,000,000. (ii) Award amounts An eligible institution that receives a grant under a program shall make awards for individual projects that support the activities of clauses (i), (iii) and (iv) of subparagraph (C), which— (I) shall not be more than $100,000; and (II) shall be provided in phased amounts, based on whether the project is reaching the milestones established by the oversight board of the eligible institution. (H) Authorized expenditures for the program (i) Expenditure amounts The percentage of the extramural budget for research, or research and development, required to be expended by a covered agency for the program of the covered agency shall be— (I) 0.05 percent for fiscal year 2015; and (II) 0.1 percent for each of fiscal years 2016 and 2017. (ii) Treatment of expenditures Any portion of the extramural budget expended by a covered agency for the program of the covered agency shall apply toward the STTR expenditure requirements of the covered agency under subsection (n). (2) Program evaluation and data collection and dissemination (A) Evaluation plan and data collection (i) In general Each covered agency shall develop a program evaluation plan to collect data to identify outcomes resulting from the transfer of technology under the program of the covered agency, including— (I) specific follow-on funding identified or obtained, including follow-on funding sources, such as Federal sources or private sources, not later than 3 years after the date on which an eligible institution makes an award for a project under the program; (II) the number of projects which, not later than 5 years after receiving an award from an eligible institution under the program, result in a license to a start-up company or an established company with sufficient resources for effective commercialization; (III) the number of invention disclosures received, United States patent applications filed, and United States patents issued not later than 5 years after the date on which an eligible institution makes an award for a project under the program; (IV) the number of projects receiving an award from an eligible institution under the program that secure Phase I or Phase II SBIR or STTR awards; (V) available information on revenue, sales, or other measures of products that have been commercialized as a result of projects receiving an award from an eligible institution under the program not later than 5 years after the date on which the eligible institution made the award; (VI) the number and location of jobs created as a result of projects receiving an award from an eligible institution under the program; and (VII) any other data as the covered agency may determine appropriate. (B) Evaluative report to Congress Not later than September 30, 2018, the head of each covered agency shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Science, Space, and Technology and the Committee on Small Business of the House of Representatives a report evaluating the activities of the program of the covered agency, which shall include— (i) a detailed description of the implementation of the program; (ii) a detailed description of selection process used by the covered agency to award a grant to an eligible institution under the program; (iii) an accounting of the funds used in the program; and (iv) a summary of the data collected under subparagraph (A). (C) Data dissemination For purposes of program transparency and the dissemination of best practices, the Administrator shall include on the public database under subsection (k)(1) information on the program of each covered agency, including— (i) the program evaluation plan required under subparagraph (A); (ii) a list of recipients of awards made by an eligible institution for projects under the program by State; and (iii) information on the use by recipients of awards made by an eligible institution for projects under the program. .