,,ii #aafth ,,congress #b;d ,session ,s4 #ccbi ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,february #be1 #bjbj,ms4 ,hassan 7for herself and ,mr4 ,hawley7 introduced the following bill2 which was read twice and referred to the ,committee on ,commerce1 ,science1 and ,transportation ,a ,,bill ,to establish an incubator network and startup success program1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,incubator ,network and ,startup ,success ,act4 #b4 ,definitions ,in this ,act3 7#a7 ,startup incubator ,the term startup incubator means a business or a nonprofit organization that-- 7,a7 provides resources and services designed to accelerate the growth and success of businesses1 which may include-- 7i7 physical workspace and facilities1 including affordable or shared office space2 7ii7 access to capital1 business education1 and counseling2 7iii7 networking and mentorship opportunities2 7iv7 access to advanced tools and other technology2 and 7v7 other services intended to aid in developing a business2 and 7,b7 serves businesses1 of which not less than #ij percent are startups4 7#b7 ,startup incubator network ,the term startup incubator network means a group of startup incubators with an agreement to-- 7,a7 share resources among network members1 which may include-- 7i7 reciprocal facility privileges to an incubator member of a network member2 and 7ii7 common access to capital raising1 business education1 and networking programs2 7,b7 share information and best practices among network members2 7,c7 designate not less than #a employee of a network member to be the official point of contact for the network members2 and 7,d7 establish a public website for the startup incubator network4 7#c7 ,category #a startup incubator network ,the term category #a startup incubator network means a startup incubator network with a good faith estimate that not less than #ej percent of the incubator members of the startup incubator network have disadvantaged entrepreneur ownership4 7#d7 ,category #b startup incubator network ,the term category #b startup incubator network means a startup incubator network with a good faith estimate that not less than #be percent and less than #ej percent of the incubator members of the startup incubator network have disadvantaged entrepreneur ownership4 7#e7 ,category #c startup incubator network ,the term category #c startup incubator network means a startup incubator network with a good faith estimate that less than #be percent of the incubator members of the startup incubator network have disadvantaged entrepreneur ownership4 7#f7 ,director ,the term ,director means the ,director of the ,office of ,innovation and ,entrepreneurship of the ,department of ,commerce4 7#g7 ,disadvantaged entrepreneur ,the term disadvantaged entrepreneur means an entrepreneur who is-- 7,a7 a socially disadvantaged individual or an economically disadvantaged individual1 as those terms are described in paragraphs 7#e7 and 7#f77;,a7 of section #h7;a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcg7;a77#e71 #fcg7;a77#f77;,a772 7,b7 a woman2 7,c7 a veteran1 as defined in section #aja of title #ch1 ,united ,states ,code2 or 7,d7 an individual with a disability1 as defined in section #c of the ,americans with ,disabilities ,act of #aiij 7#db ,u4,s4,c4 #abajb74 7#h7 ,disadvantaged entrepreneur ownership ,the term disadvantaged entrepreneur ownership means-- 7,a7 in the case of-- 7i7 a business1 not less than #ea percent ownership by one or more disadvantaged entrepreneurs2 or 7ii7 a publicly owned business1 not less than #ea percent ownership of the stock by one or more disadvantaged entrepreneurs2 and 7,b7 control of the management and daily operations of the business by one or more disadvantaged entrepreneurs4 7#i7 ,eligible entity ,the term eligible entity-- 7,a7 means-- 7i7 a category #a startup incubator network2 7ii7 a category #b or category #c startup incubator network that has submitted a formal plan under section #c7;f77#b7 or #c7;f77#c71 respectively2 or 7iii7 a planned startup incubator network that has submitted a formal plan to establish a startup incubator network under section #c7;f77#a72 7,b7 includes a startup incubator network that has received funding under-- 7i7 the ,small ,business ,act 7#ae ,u4,s4,c4 #fca et seq472 7ii7 the ,public ,works and ,economic ,development ,act of #aife 7#db ,u4,s4,c4 #caba et seq472 and 7iii7 other ,federal programs2 and 7,c7 does not include a startup incubator network that has received a grant under section #c7;a7 during the #c-year period ending on the date on which an application is submitted under section #c7;g74 7#aj7 ,incubator member ,the term incubator member means a business that is served by a startup incubator4 7#aa7 ,network member ,the term network member means a startup incubator that is a part of a startup incubator network or planned startup incubator network4 7#ab7 ,planned startup incubator network ,the term planned startup incubator network means a startup incubator network that multiple startup incubators intend to create4 7#ac7 ,rural area ,the term rural area has the meaning given the term in section #cdc7;a7 of the ,consolidated ,farm and ,rural ,development ,act 7#g ,u4,s4,c4 #aiia7;a774 7#ad7 ,startup ,the term startup means a business that-- 7,a7 has less than #aj1jjj1jjj in annual gross receipts2 7,b7 has not more than #e years of gross receipts2 and 7,c7 has been an active trade or business for less than #aj years4 7#ae7 ,state ,the term ,state means each of the several ,states1 the ,district of ,columbia1 and any other territory or possession of the ,united ,states4 #c4 ,incubator network and startup success program 7a7 ,in general ,not later than #a year after the date of enactment of this ,act1 the ,director shall establish in the ,office of ,innovation and ,entrepreneurship of the ,department of ,commerce an incubator network and startup success program with the purpose of carrying out the grants described in subsection 7b74 7b7 ,grants authorized ,the ,director is authorized to award grants under this section on a competitive basis in the amount of #ej1jjj to each network member of an eligible entity selected based on the application submitted under subsection 7g7 and the criteria described in subsection 7h74 7c7 ,maximum amount ,the total amount of grants made by the ,director under subsection 7b7 in a fiscal year shall not exceed #b1jjj1jjj4 7d7 ,matching requirement ,the ,director may not make a grant to the network members of an eligible entity under this section unless each network member demonstrates the ability to raise or plans to raise non-,federal contributions in an amount equal to the amount of ,federal funds provided to each network member under the grant4 7e7 ,announcement ,the ,director shall widely announce the incubator network and startup success program established under subsection 7a71 including on the website of the ,office of ,innovation and ,entrepreneurship of the ,department of ,commerce4 7f7 ,formal plans for preliminary eligibility ,to be eligible to receive a grant under this section-- 7#a7 a planned startup incubator network shall submit to the ,director a formal plan to form a startup incubator network within #a year of the receipt of a grant under subsection 7b7 at such time1 in such manner1 and containing such information as the ,director may require2 7#b7 a category #b startup incubator network shall submit to the ,director at such time1 in such manner1 and containing such information as the ,director may require-- 7,a7 a formal plan detailing planned efforts to increase access to the startup incubator network for businesses with disadvantaged entrepreneur ownership2 and 7,b7 evidence relating to the likelihood of the successful implementation of the plan described in subparagraph 7,a71 including evidence of past success in increasing access to the startup incubator network for businesses with disadvantaged entrepreneur ownership2 and 7#c7 a category #c startup incubator network shall submit to the ,director at such time1 in such manner1 and containing such information as the ,director may require-- 7,a7 a formal plan to increase the percentage of disadvantaged entrepreneur-owned incubator members by #e percent within #e years of the receipt of a grant under subsection 7b72 and 7,b7 evidence relating to the likelihood of the successful implementation of the plan described in subparagraph 7,a71 including evidence of past success in increasing access to the startup incubator network for businesses with disadvantaged entrepreneur ownership4 7g7 ,application 7#a7 ,in general ,each eligible entity that desires the network members of the eligible entity to receive a grant under subsection 7b7 shall submit an application on behalf of the network members of the eligible entity to the ,director1 at such time1 in such manner1 and accompanied by such additional information as the ,director may require4 7#b7 ,contents ,each application submitted pursuant to paragraph 7#a7 shall include-- 7,a7 a report that-- 7i7 specifies whether the eligible entity is a category #a1 category #b1 or category #c startup incubator network2 and 7ii7 provides a good faith estimate of the percentage of incubator members of the eligible entity with disadvantaged entrepreneur ownership2 7,b7 the contact information of the official point of contact for the eligible entity to coordinate with the ,director on behalf of network members2 and 7,c7 a plan that demonstrates that the receipt of a grant under subsection 7b7 would increase certain measures of success for the eligible entity1 which may include an increase in-- 7i7 access to startup incubator network activities in the geographical region of the startup incubator network2 7ii7 access to startup incubator network activities in rural areas2 7iii7 the variety of startup incubator network activities available to incubator members2 7iv7 the number of businesses applying to become incubator members of network members2 7v7 the number of incubator members retained by network members2 and 7vi7 the number of incubator members that complete the incubation program of the network member1 including the number of incubator members that exceed the criteria of a startup established under section #b4 7h7 ,criteria ,in making grants under this section1 the ,director shall evaluate eligible entities based upon-- 7#a7 the likelihood that the eligible entity will successfully implement the plan described in subsection 7g77#b77;,c72 7#b7 in the case of a planned startup incubator network1 a category #b incubator network1 or a category #c incubator network1 the likelihood that the eligible entity will successfully implement a plan described in subsection 7f72 7#c7 in the case of a category #b incubator network or a category #c incubator network1 the evidence of past success submitted under subsection 7f77#b77;,b7 or 7f77#c77;,b71 respectively2 7#d7 the likely economic impact of successfully implementing the plan described in subsection 7g77#b77;,c7 or a plan described in subsection 7f71 including the potential for creating jobs2 7#e7 the likelihood that the eligible entity will remain a startup incubator network following the receipt of an award2 and 7#f7 other competitive criteria that the ,director may develop4 7i7 ,use of funds 7#a7 ,in general ,a network member receiving an award under subsection 7b7 shall use not less than #be percent of the award and not less than #be percent of the matching funds raised pursuant to subsection 7d7 to-- 7,a7 create a new startup incubator network2 or 7,b7 support and expand existing startup incubator network activities4 7#b7 ,category #c startup incubator networks ,in addition to the requirements for the use of funds under paragraph 7#a71 a network member of a category #c startup incubator network receiving an award under subsection 7b7 shall-- 7,a7 use not less than #e percent of the award and not less than #e percent of the matching funds raised pursuant to subsection 7d7 to implement the appropriate formal plan the category #c startup incubator network submitted pursuant to subsection 7f77#c72 and 7,b7 satisfy any additional requirements for the use of funds determined by the ,director1 which may include requirements that reflect demographic data for the area served by the category #c startup incubator network4 #d4 ,personnel to support startup incubator networks 7a7 ,hiring authority of the ,director ,the ,assistant ,secretary of ,commerce is authorized to hire #b additional employees in the ,office of ,innovation and ,entrepreneurship of the ,department of ,commerce1 who shall be charged with duties1 which may include-- 7#a7 administering the incubator network and startup success program established under section #c7;a72 7#b7 facilitating existing and new startup incubator network activities2 7#c7 facilitating the planning and formation of new startup incubator networks2 7#d7 facilitating-- 7,a7 the development and implementation of plans of startup incubator networks to increase services to businesses with disadvantaged entrepreneur ownership2 and 7,b7 the design of inclusive programming2 and 7#e7 coordinating with the ,state designees described in subsection 7c74 7b7 ,state assignments ,the ,director shall assign to not less than one of the additional employees hired under subsection 7a7 a list of ,states in which the employee shall take primary responsibility for startup incubator network activities1 so that each of the ,states has #a employee assigned to the ,state4 7c7 ,state designees ,the governor of a ,state may designate an employee of an agency of the ,state that is responsible for economic development as the ,state designee to coordinate with the employee of the ,office of ,innovation and ,entrepreneurship of the ,department of ,commerce assigned to the ,state under subsection 7b74 #e4 ,authorization of appropriations ,there is authorized to be appropriated to carry out this ,act #b1cjj1jjj for fiscal year #bjbj and each fiscal year thereafter4