,i #aafth ,,congress #ast ,session ,h4 ,r4 #bjf ,,in ,,the ,,house ,,of ,,representatives ,january #c1 #bjai,mr4 ,rouda introduced the following bill2 which was referred to the ,committee on ,small ,business1 and in addition to the ,committee on ,science1 ,space1 and ,technology1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to amend the small business laws to create certain requirements with respect to the ,,sbir and ,,sttr program1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,encouraging ,small ,business ,innovation ,act4 #b4 ,inclusion of testing and evaluation in the definition of research and development ,section #i7;e77#e7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch7;e77#e77 is amended-- 7#a7 by redesignating subparagraphs 7,a71 7,b71 and 7,c7 as clauses 7i71 7ii71 and 7iii71 respectively 7and conforming the margins accordingly72 7#b7 by striking means any activity which is and inserting the following3 means-- 7,a7 any activity which is-- 2 and 7#c7 in clause 7iii71 as so redesignated1 by adding and after the semicolon at the end2 and 7#d7 by adding at the end the following new subparagraph3 7,b7 any testing or evaluation in connection with such an activity2 4 #c4 ,inclusion of small business investment companies in ,,sbir and ,,sttr ,section #i of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch7 is amended-- 7#a7 by striking or private equity firm investment each place such term appears and inserting private equity firm1 or ,,sbic investment2 7#b7 by striking or private equity firms and inserting private equity firms1 or ,s,b,i,cs2 7#c7 in subsection 7e7-- 7,a7 in paragraph 7#ab77;,b71 by striking and at the end2 7,b7 in paragraph 7#ac77;,b71 by striking the period at the end and inserting 2 and2 and 7,c7 by adding at the end the following new paragraph3 7#ad7 the term ,,sbic means a small business investment company as defined in section #ajc of the ,small ,business ,investment ,act of #aieh4 2 and 7#d7 in the heading for subsection 7dd71 by striking or ,private ,equity ,firms and inserting ,private ,equity ,firms1 or ,s,b,i,cs4 #d4 ,calculation of leverage of small business investment companies that invest in ,,sbir or ,,sttr participants ,section #cjc7;b77#b7 of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fhc7;b77#b77 is amended by adding at the end the following new subparagraph3 7,e7 ,investments in ,,sbir and ,,sttr participants 7i7 ,in general ,subject to clause 7ii71 in calculating the outstanding leverage of a company for purposes of subparagraph 7,a71 the ,administrator shall exclude the amount of any investment made in a ,,sbir or ,,sttr participant1 if such investment is made in the first fiscal year after the date of enactment of this subparagraph or any fiscal year thereafter by a company licensed during the applicable fiscal year4 7ii7 ,limitations 7,i7 ,amount of exclusion ,the amount excluded under clause 7i7 for a company shall not exceed #cc percent of the private capital of that company4 7,,ii7 ,maximum investment ,a company shall not make an investment in any one ,,sbir or ,,sttr participant in an amount equal to more than #bj percent of the private capital of that company4 7,,iii7 ,other terms ,the exclusion of amounts under clause 7i7 shall be subject to such terms as the ,administrator may impose to ensure that there is no cost 7as that term is defined in section #ejb of the ,federal ,credit ,reform ,act of #aiij 7#b ,u4,s4,c4 #ffa;a77 with respect to purchasing or guaranteeing any debenture involved4 7iii7 ,definitions ,in this subparagraph1 the term ,,sbir or ,,sttr participant means a small business concern that receives contracts or grants pursuant to section #i of the ,small ,business ,act4 4 #e4 ,encouraging participation in the mentor-protege program ,section #i of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch7 is amended by adding at the end the following3 7tt7 ,encouraging participation in the mentor-,protege program ,the ,administrator shall provide an increase to the past performance rating of any small business concern that has participated in the ,,sbir or ,,sttr program that serves as a mentor under section #de to a small business concern that seeks to participate in the ,,sbir or ,,sttr program4 4 #f4 ,annual meeting for ,federal agencies with a ,,sbir or ,,sttr program 7a7 ,in general ,section #i of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch71 as amended by section #c1 is further amended by adding at the end the following new subsection3 7uu7 ,annual meeting 7#a7 ,in general ,the head of each ,federal agency required to have a program under this section 7or a designee7 and the ,administrator 7or a designee7 shall meet annually to discuss methods-- 7,a7 to improve the collection of data under this section2 7,b7 to improve the reporting of data to the ,administrator under this section2 7,c7 to make the application processes for programs under this section more efficient2 and 7,d7 to increase participation in the programs under this section4 7#b7 ,reporting ,not later than #fj days after the date on which an annual meeting required under paragraph 7#a7 is held1 the ,administrator shall submit to the ,committee on ,small ,business and ,entrepreneurship of the ,senate1 and the ,committee on ,small ,business and the ,committee on ,science1 ,space1 and ,technology of the ,house of ,representatives1 a report on the findings of such meeting and recommendations on how to implement changes to programs under this section4 4 7b7 ,funding for annual meeting ,section #i7mm77#a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch7mm77#a77 is amended-- 7#a7 in subparagraph 7,i71 by striking the and at the end2 7#b7 in subparagraph 7,j71 by striking the period at the end and inserting 2 and2 and 7#c7 by adding at the end the following new subparagraph3 7,k7 the annual meeting required under subsection 7uu74 4 #g4 ,increasing participation of underserved populations in the ,,sbir and ,,sttr programs 7a7 ,in general ,section #i7mm77#b7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch7mm77#b77 is amended to read as follows3 7#b7 ,outreach and technical assistance ,a ,federal agency participating in the program under this subsection shall use a portion of the funds authorized for uses under paragraph 7#a7 to carry out the policy directive required under subsection 7j77#b77;,f7 and to increase the participation of ,states with respect to which a low level of ,,sbir awards have historically been awarded4 4 7b7 ,conforming amendment ,section #i7mm77#f7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch7mm77#f77 is amended by striking paragraph 7#b77;,a7 and any use of the waiver authority under paragraph 7#b77;,b7 and inserting paragraph 7#b74