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111th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    111-192

======================================================================

 
PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 2965) TO AMEND THE SMALL 
  BUSINESS ACT WITH RESPECT TO THE SMALL BUSINESS INNOVATION RESEARCH 
  PROGRAM AND THE SMALL BUSINESS TECHNOLOGY TRANSFER PROGRAM, AND FOR 
                             OTHER PURPOSES

                                _______
                                

July 7, 2009.--Referred to the House Calendar and ordered to be printed

                                _______
                                

                Mr. Polis, from the Committee on Rules, 
                        submitted the following

                              R E P O R T

                       [To accompany H. Res. 610]

    The Committee on Rules, having had under consideration 
House Resolution 610, by a nonrecord vote, report the same to 
the House with the recommendation that the resolution be 
adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for consideration of H.R. 2965, the 
Enhancing Small Business Research and Innovation Act of 2009, 
under a structured rule. The resolution provides one hour of 
general debate, with 40 minutes equally divided and controlled 
by the chair and ranking minority member of the Committee on 
Small Business and 20 minutes equally divided and controlled by 
the chair and ranking minority member of the Committee on 
Science and Technology. The resolution waives all points of 
order against consideration of the bill except clauses 9 and 10 
of rule XXI. The resolution provides that the amendment in the 
nature of a substitute recommended by the Committee on Small 
Business now printed in the bill shall be considered as an 
original bill for the purpose of amendment and shall be 
considered as read. The resolution waives all points of order 
against the amendment in the nature of a substitute except for 
clause 10 of rule XXI. This waiver does not affect the point of 
order available under clause 9 of rule XXI (regarding earmark 
disclosure).
    The resolution makes in order only those amendments printed 
in this report. The amendments made in order may be offered 
only in the order printed in this report, may be offered only 
by a Member designated in this report, shall be considered as 
read, shall be debatable for the time specified in this report 
equally divided and controlled by the proponent and an 
opponent, shall not be subject to amendment, and shall not be 
subject to a demand for a division of the question in the House 
or in the Committee of the Whole. The resolution provides that 
the proponent of any such amendment may modify its amendatory 
instructions. All points of order against the amendments except 
for clauses 9 and 10 of rule XXI are waived. The resolution 
provides that the previous question shall be considered as 
ordered on the bill and amendments thereto to final passage 
without intervening motion except one motion to recommit with 
or without instructions.
    The resolution also provides that the Chair may entertain a 
motion that the Committee rise only if offered by the chair of 
the Committee on Small Business or her designee. The resolution 
provides that the Chair may not entertain a motion to strike 
out the enacting words of the bill (as described in clause 9 of 
rule XVIII). Finally, the resolution provides that during 
consideration of H.R. 2965, the Chair may reduce to two minutes 
the minimum time for electronic voting under clause 6 of rule 
XVIII and clauses 8 and 9 of rule XX.

                         EXPLANATION OF WAIVERS

    The waiver of all points of order against consideration of 
the bill (except for clauses 9 and 10 of rule XXI) includes a 
waiver of clause 4(a) of rule XIII, requiring a three-day 
layover of the committee report and a waiver of clause 3(d)(2) 
of rule XIII requiring the inclusion of a cost estimate. 
Although the rule waives all points of order against the 
committee amendment in the nature of a substitute (except for 
clause 10 of rule XXI), the committee is not aware of any 
points of order against the substitute. The waiver is 
prophylactic.

                            COMMITTEE VOTES

    The results of each record vote on an amendment or motion 
to report, together with the names of those voting for and 
against, are printed below:

Rules Committee record vote No. 175

    Date: July 7, 2009.
    Measure: H.R. 2965.
    Motion by: Mr. Dreier.
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. King, Steve (IA), #33, which 
would prohibit ACORN and its affiliate organizations from 
participating in the new rural development and outreach program 
created in Sec. 301.
    Results: Defeated 4-7.
    Vote by Members: McGovern--Nay; Hastings--Nay; Matsui--Nay; 
Arcuri--Nay; Perlmutter--Nay; Pingree--Nay; Polis--Nay; 
Dreier--Yea; Diaz-Balart--Yea; Sessions--Yea; Foxx--Yea.

               SUMMARY OF AMENDMENTS TO BE MADE IN ORDER

    (Summaries derived from information provided by sponsors.)
    1. Velazquez (NY) Would (1) authorize the Small Business 
Administration to establish a program to provide matching 
grants to minority serving educational institutions to develop 
programs that encourage minority participation in SBIR/STTR 
programs; (2) give priority to applications from companies 
located in areas that have lost a major source of employment; 
(3) increase the maximum allowable award under Phase I of the 
SBIR program with respect to applications by veteran owned and 
controlled small businesses, increase the maximum allowable 
award under Phase II of the SBIR program with respect to 
applications by veteran owned and controlled small businesses, 
and permit small business concerns owned and controlled by 
veterans to bypass Phase I and apply directly for Phase II 
awards; (4) add language to require agencies to report specific 
reasons why those agency SBIR/STTR goals were or were not 
achieved; (5) provide special consideration in the awarding of 
SBIR funds to projects which address renewable energy 
technologies; (6) require that veterans be given priority when 
applying for SBIR and STTR awards; (7) require the Department 
of Agriculture and the Environmental Protection Agency to 
develop a SBIR solicitation that requests research proposals 
for improving the efficiency of water delivery systems and 
usage patterns in the U.S. and its territories; (8) expand 
outreach and support activities to Native American-owned small 
businesses; (9) prioritize SBIR outreach and support activities 
for areas with high unemployment, and give preference to SBIR 
and STTR award applications submitted by small businesses 
located in areas with high unemployment; and (10) make 
technical corrections to the legislation. (30 minutes)
    2. Brown-Waite (FL) Would require GAO to examine and report 
to Congress on the effect that the venture capital ownership 
restrictions in Section 102 (venture capital operating 
companies investment in small businesses) have on eligibility 
and participation under this act. (10 minutes)
    3. Kosmas (FL) Would require commercialization programs 
established by agencies with space shuttle related activities 
to include efforts to help small businesses affected by the 
termination of the space shuttle program commercialize 
technologies through SBIR. (10 minutes)
    4. Reichert (WA)/Adam Smith (WA) Would give preference to 
organizations that are located in underrepresented states and 
regions, or are women-, service-disabled veterans- or minority-
owned when awarding grants for Small Business Administration 
(SBA) outreach efforts authorized under Title III (rural 
development and outreach). (10 minutes)
    5. Paulsen (MN) Would add medical technology to the list of 
topics that deserve special consideration as SBIR research 
topics. (10 minutes)

                    TEXT OF AMENDMENTS MADE IN ORDER

1. An Amendment To Be Offered by Representative Velazquez of New York, 
               or Her Designee, Debatable for 30 Minutes

  Page 7, line 10, strike ``section 3(c)(1)'' and insert 
``subsection (a)(1) of section 3''.
  Page 7, line 11, strike ``80a-3(c)(1)'' and insert ``80a-3''.
  Page 7, beginning line 13, strike ``it is beneficially owned 
by less than 100 persons'' and insert ``of an exemption under 
subsection (c)(1) or subsection (c)(7) of such section''.
  Add at the end of the bill the following:

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 Administrator 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 increasing 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 information 
        and assurances as the Administrator may require.
          ``(3) Matching requirement.--As a condition of a 
        grant under paragraph (1), the Administrator shall 
        require that a minority institution provide 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.''.
  Add at the end of the bill the following:

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 recipients from geographic areas determined by 
the Administrator to have lost a major source of employment.''.
  Add at the end of the bill the following:

SEC. 417. ENHANCING VETERAN PARTICIPATION IN SBIR.

  Section 9 of the Small Business Act (15 U.S.C. 638), as 
amended, is further amended by adding at the end the following:
  ``(pp) Enhancing Veteran Participation in SBIR.--
Notwithstanding any other provision of this section, a small 
business concern owned and controlled by veterans may--
          ``(1) receive an award in the amount of $300,000 in 
        the first phase of an SBIR program and in the amount of 
        $2,250,000 in the second phase of an SBIR program, with 
        such amounts able to be exceeded if the Federal agency 
        making the award notifies the Administrator of such 
        excess; and
          ``(2) receive an award for the second phase of an 
        SBIR program with respect to a project without having 
        received a first phase award with respect to such 
        project.''.
  Page 13, line 7, strike ``met and a'' and insert ``met, a''.
  Page 13, line 8, insert after ``such data'' the following: 
``, and a description of the reasons why the goals were met or 
not met''.
  Page 8, line 7, insert ``renewable'' before ``energy-
related''.
  Page 8, line 16, after ``priorities'' insert ``(including 
renewable energy-related technologies)''.
  Add at the end of the bill the following:

SEC. 418. VETERAN PREFERENCE.

  Section 9 of the Small Business Act (15 U.S.C. 638), as 
amended, is further amended by adding at the end the following:
  ``(qq) Veteran Preference.--In making awards under this 
section, Federal agencies shall give priority to applications 
so as to increase the number of SBIR and STTR award recipients 
that are small business concerns owned and controlled by 
veterans.''.
  Add at the end of the bill the following:

        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 business innovation 
research solicitation that requests research 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.
  Page 16, line 19, strike ``both'' and insert ``more''.
  Page 17, after line 3, insert the following:
                  ``(C) Small business concerns owned and 
                controlled by Native Americans.
  Page 22, line 8, strike ``Rural preference'' and insert 
``Preferences''.
  Page 22, line 12, strike ``Rural preference'' and insert 
``Preferences''.
  Page 22, line 15, strike ``from rural areas.'' and insert 
``that are from rural areas, or that are small business 
concerns owned and controlled by Native Americans. The 
Administrator shall submit an annual report to Congress setting 
forth how many small business concerns owned and controlled by 
Native Americans were recipients of assistance under this 
section.''.
  Page 17, after line 3, insert the following:
                  ``(D) Small business concerns located in 
                geographic areas with an unemployment rate that 
                exceeds the national unemployment rate.
  Page 19, line 24, insert after ``geographic area'' the 
following: ``(including geographic areas with an unemployment 
rate that exceeds the national unemployment rate)''.
  Page 22, line 15, insert after ``recipients'' the following: 
``that are from areas with an unemployment rate that exceeds 
the national unemployment rate,''.
                              ----------                              


2. An Amendment To Be Offered by Representative Brown-Waite of Florida, 
               or Her Designee, Debatable for 10 Minutes

  Add at the end of the bill the following:

 TITLE V--GAO STUDY WITH RESPECT TO VENTURE CAPITAL OPERATING COMPANY 
                              INVOLVEMENT

SEC. 501. 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 section 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.
                              ----------                              


 3. An Amendment To Be Offered by Representative Kosmas of Florida, or 
                 Her Designee, Debatable for 10 Minutes

  Page 14, after line 4, insert the following:
          ``(2) Space shuttle program.--Each agency required to 
        establish a commercialization program under paragraph 
        (1) and that carries out construction, assembly, or 
        research and development activities with respect to the 
        space shuttle program (also known as the space 
        transportation system) shall include, as part of such 
        commercialization program, activities to assist small 
        business concerns affected by the termination of the 
        space shuttle program to commercialize technologies 
        through SBIR. Activities to assist such small business 
        concerns may include activities described in paragraph 
        (1) and other activities to assist small business 
        concerns making the transition from work relating to 
        the space shuttle program to work in related or 
        unrelated industries.
  Page 14, line 5, strike ``(2)'' and insert ``(3)''.
  Page 14, line 24, strike ``(3)'' and insert ``(4)''.
  Page 15, line 1, strike ``paragraphs (1) and (2)'' and insert 
``this subsection''.
                              ----------                              


4. An Amendment To Be Offered by Representative Reichert of Washington, 
               or His Designee, Debatable for 10 Minutes

  Page 20, after line 2, insert the following new subparagraph 
and redesignate subparagraphs (B) through (D) in lines 3 
through 14 as (C) through (E) respectively:
                  ``(B) criteria designed to give preference 
                (i) to applicants serving underrepresented 
                States and regions and (ii) to applicants who 
                are women-, service-disabled veterans-, or 
                minority-owned.''.
                              ----------                              


 5. An Amendment To Be Offered by Representative Paulsen of Minnesota, 
               or His Designee, Debatable for 10 Minutes

  Add at the end of the bill the following:

SEC. 415. 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 research 
topics'' the following: ``and research topics relating to 
medical technology''.