[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6120 Introduced in House (IH)]
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).
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