Text: H.R.6120 — 111th Congress (2009-2010)All Bill Information (Except Text)

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Introduced in House (09/14/2010)


111th CONGRESS
2d Session
H. R. 6120

To direct the Secretary of Commerce to establish a technology deployment and early-stage business investment grant program, and for other purposes.


IN THE HOUSE OF REPRESENTATIVES
September 14, 2010

Mr. Pastor of Arizona introduced the following bill; which was referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned


A BILL

To direct the Secretary of Commerce to establish a technology deployment and early-stage business investment grant program, 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 “Technology Deployment and Early-Stage Business Investment Act of 2010”.

SEC. 2. Technology deployment and early-stage business investment grant program.

(a) Establishment.—Not later than 60 days after the date of enactment of this Act, the Secretary of Commerce shall establish a technology deployment and early-stage business investment grant program (in this section referred to as the “program”) to support the development of early-stage businesses in targeted industries.

(b) Grant authority.—

(1) IN GENERAL.—In carrying out the program, the Secretary is authorized to make grants to covered business accelerators.

(2) GRANT AMOUNTS.—

(A) NON-FEDERAL CAPITAL LIMITATION.—A grant made to a covered business accelerator under the program may not be in an amount that exceeds the amount of the accelerator’s capital that—

(i) is not from a Federal source; and

(ii) is available for investment and business assistance services on or before the date on which a grant is drawn upon.

(B) AGGREGATE AMOUNT LIMITATION.—The aggregate amount of all grants made to a covered business accelerator under the program may not exceed $5,000,000.

(c) Grant award process.—In making a grant under the program, the Secretary shall commit a grant amount to a covered business accelerator and the amount of each such commitment shall remain available to be drawn upon by the accelerator during the 5-year period beginning on the date on which each such commitment is first drawn upon.

(d) Use of grant.—

(1) IN GENERAL.—A grant made under the program may be used by a covered business accelerator for the following:

(A) Making an investment in an early-stage business in a targeted industry.

(B) Providing training, counseling, and other assistance to an early-stage business in a targeted industry to support the development of the business.

(C) Making investments in and providing support to an early-stage business in a targeted industry to assist the business with proof of concept activities that accelerate the deployment and commercialization of technology.

(D) Providing purchased services to an early-stage business in a targeted industry.

(E) Conducting due diligence activities.

(F) Meeting operational expenses.

(2) LIMITATIONS.—

(A) PROOF OF CONCEPT ACTIVITIES.—Not more than 40 percent of the amount of a grant made to a covered business accelerator under the program may be used by the accelerator to provide assistance for proof of concept activities.

(B) PURCHASED SERVICES.—Not more than 20 percent of the amount of a grant made to a covered business accelerator under the program may be used by the accelerator to provide purchased services to an early-stage business in a targeted industry.

(C) DUE DILIGENCE ACTIVITIES.—Not more than 10 percent of the amount of a grant made to a covered business accelerator under the program may be used by the accelerator to conduct due diligence activities.

(D) OPERATIONAL EXPENSES.—Not more than 20 percent of the amount of a grant made to a covered business accelerator under the program may be used by the accelerator to meet operational expenses.

(3) DESIGNATION OF GRANT USES.—In the application of a covered business accelerator for a grant under the program, the accelerator shall notify the Secretary of the percentage of the grant amount that will be used for each of the activities described in subparagraphs (A) through (F) of paragraph (1) and provide a detailed description of the activities to be undertaken.

(e) Grant conditions.—

(1) FUND MANAGER.—As a condition of receiving a grant under the program, a covered business accelerator shall designate an individual as the fund manager for the grant amount and that individual shall administer and be responsible to the Secretary for information with respect to the grant amounts received.

(2) INVESTMENT REVIEW.—As a condition of receiving a grant under the program, a covered business accelerator shall establish an investment evaluation process that involves not fewer than 5 individuals (3 of whom may not be employed by or related to the accelerator or an affiliate of the accelerator) who shall—

(A) review proposals for and advise the accelerator on the use of grant funds;

(B) provide letters of support and reference to the Secretary with respect to proposals for the use of grant funds by the accelerator; and

(C) submit periodic reports to the Secretary on the results of activities carried out with grant funds.

(3) COLLABORATOR.—As a condition of receiving a grant under the program, a covered business accelerator shall assign to each early-stage business in a targeted industry that is assisted with grant amounts a collaborator that shall be an individual or organization not otherwise employed by or related to the accelerator or an affiliate of the accelerator and that shall assist the accelerator in providing support to the business.

(f) Federal share of activities.—The Federal share of the cost of an activity carried out by a covered business accelerator with the assistance of a grant under the program shall not exceed 75 percent.

(g) Monitoring and evaluation.—

(1) IN GENERAL.—The Secretary shall assess the effectiveness of covered business accelerators that receive a grant under the program.

(2) DATA FROM ACCELERATORS.—Not later than one year after the date of receiving a grant under the program, a covered business accelerator shall provide to the Secretary information on the activities of the accelerator and the businesses assisted under the grant, including—

(A) the number of technologies that the businesses have moved from proof of concept activities to commercialization;

(B) the number of jobs created by the businesses;

(C) the amount of taxes paid by the businesses and the employees of the businesses;

(D) the amount of private investment the businesses have received; and

(E) other data that, as determined by the Secretary, may be used to measure the value of assistance under the program.

(h) Authorization of appropriations.—

(1) IN GENERAL.—There is authorized to be appropriated to carry out the program—

(A) $250,000,000 for the first full fiscal year beginning after the date of enactment of this Act; and

(B) such sums as may be necessary for subsequent fiscal years.

(2) PROHIBITION ON EARMARKS.—None of the funds appropriated for the program may be used for a congressional earmark as defined in clause 9(e) of rule XXI of the Rules of the House of Representatives.

(i) Definitions.—In this Act, the following definitions apply:

(1) COVERED BUSINESS ACCELERATOR.—The term “covered business accelerator” means a public or private not-for-profit organization, including an academic institution, that—

(A) operates a program providing assistance to early-stage businesses in targeted industries to support the development of those businesses, including assistance with proof of concept activities to accelerate the deployment and commercialization of technology;

(B) has a physical location and on-site management for the program described under subparagraph (A); and

(C) has procedures for selecting businesses for and graduating businesses from the program described under subparagraph (A).

(2) DUE DILIGENCE ACTIVITIES.—The term “due diligence activities” means activities undertaken to analyze and assess the desirability, value, and potential of an opportunity to provide assistance to an early-stage business in a targeted industry, including activities to analyze and assess the technology deployment and market potential of the business.

(3) EARLY-STAGE BUSINESS IN A TARGETED INDUSTRY.—The term “early-stage business in a targeted industry” means a small business concern that—

(A) is domiciled in a State;

(B) has not generated gross annual revenues exceeding $5,000,000 in any of the previous 3 years; and

(C) is engaged primarily in researching, developing, manufacturing, producing, or bringing to market goods or services with respect to any of the following business sectors:

(i) Agricultural technology.

(ii) Energy technology.

(iii) Environmental technology.

(iv) Life science technology.

(v) Biotechnology.

(vi) Information technology.

(vii) Digital media.

(viii) Clean technology.

(ix) Defense technology.

(x) Photonics technology.

(xi) Electronic technology.

(xii) Semiconductor technology.

(xiii) Material science technology.

(xiv) Aerospace.

(xv) Communications.

(xvi) Transportation.

(4) OPERATIONAL EXPENSES.—The term “operational expenses” means the costs of operating a covered business accelerator, including overhead and management expenses.

(5) PROOF OF CONCEPT ACTIVITIES.—The term “proof of concept activities” means activities carried out to validate and confirm the commercial viability of a technology, including the generation of data, prototypes, and pilot trials with respect to the technology.

(6) PURCHASED SERVICES.—The term “purchased services” means any training, counseling, or other assistance provided to an early-stage business in a targeted industry that is provided by a covered business accelerator through an agreement with another entity, and not by the accelerator directly.

(7) SECRETARY.—The terms “Secretary” and “Secretary of Commerce” mean the Secretary of Commerce acting through the Assistant Secretary of Commerce for Economic Development.

(8) SMALL BUSINESS CONCERN.—The term “small business concern” has the meaning given that term in section 3 of the Small Business Act (15 U.S.C. 632).