Sec. 6. Accelerated commercialization of taxpayer-funded research
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In this section: The term Council means the Advisory Council on Innovation and Entrepreneurship of the Department of Commerce established pursuant to section 25(c) of the Stevenson-Wydler Technology Innovation Act of 1980 ( 15 U.S.C. 3720(c) ). The term eligible entity means— an institution of higher education; or a venture development organization. Except as provided in subparagraph (B), the term extramural budget means the sum of the total obligations minus amounts obligated for such activities by employees of the agency in or through Government-owned, Government-operated facilities.
The term extramural budget shall not include— with respect to the Department of Energy, amounts obligated for— atomic energy defense programs solely for weapons activities; or naval reactor programs; and with respect to United States Agency for International Development, amounts obligated solely for— general institutional support of international research centers; or grants to foreign countries. The term institution of higher education has the meaning given the term in section 101(a) of the Higher Education Act of 1965 ( 20 U.S.C. 1001(a) ).
The term nonprofit organization means an entity or organization— described in section 501(c)(3) of the Internal Revenue Code of 1986; and exempt from taxation under 501(a) of such Act; or described in paragraph
(1)or
(2)of section 170(c) of such Act. The terms research and research and development mean any activity that is— a systematic, intensive study directed toward greater knowledge or understanding of the subject studied; a systematic study directed specifically toward applying new knowledge to meet a recognized need; or a systematic application of knowledge toward the production of useful materials, devices, and systems or methods, including design, development, and improvement of prototypes and new processes to meet specific requirements. The term Secretary means the Secretary of Commerce. The term State organization means an entity that has been created by— a State; the Commonwealth of Puerto Rico; or the District of Columbia. The term venture development organization means a State or nonprofit organization that contributes to regional or sector-based economic prosperity by providing a portfolio of services intended to accomplish at least 3 of the following purposes: Accelerating the commercialization of research or research and development. Assisting in the creation of high-growth private enterprises that are commercializing technology. Strengthening the competitive position of existing small- and medium-sized enterprises through the development, commercial adoption, or deployment of technology. Providing expert assistance to— private companies; faculty, staff, and students of institutions of higher education who are commercializing new products or services; or entrepreneurs who are commercializing new products or services. Providing financial grants, loans, or direct financial investment in companies that are commercializing technology. Each Federal agency that has an extramural budget for research or research and development that is in excess of $100,000,000 for each of the fiscal years 2020 through 2024, shall transfer 0.15 percent of such extramural budget for each of such fiscal years to the Secretary to enable the Secretary to carry out a grant program in accordance with this subsection. From funds transferred pursuant to paragraph (1), the Secretary shall use the criteria developed by the Council to award grants to eligible entities for initiatives to improve commercialization and transfer of technology. Not later than 30 days after the Council submits the recommendations for criteria to the Secretary under subsection (c)(4)(B), and annually thereafter for each fiscal year for which the grant program is authorized, the Secretary shall release a request for proposals. Eligible entities that desire to receive a grant under this subsection shall submit an application to the Secretary not later than 90 days after the Secretary releases the request for proposals under clause (ii). The Secretary shall submit each application received under clause
(iii)to the Council for Council review. The Council shall review each application received under subclause
(I)and submit recommendations for grant awards to the Secretary, including funding recommendations for each proposal. The Council shall publicly release any recommendations made under subclause (II). In awarding grants under this subsection, the Secretary shall take into consideration the recommendations of the Council under subclause (II). The Secretary shall award grants to eligible entities to support specific innovative initiatives to improve the regional capacity for private companies, faculty, staff, and students of institutions of higher education, or entrepreneurs to commercialize technology originating from federally funded research. Grants shall be awarded under this subparagraph for— proposals demonstrating the capacity for accelerated commercialization, proof-of-concept proficiency, and translating scientific discoveries and cutting-edge inventions into technological innovations and new companies; and innovative approaches to achieving the goals referred to in subclause
(I)that can be replicated by other institutions of higher education or venture development organizations if the innovative approaches are successful. Grants awarded under this subsection shall use criteria for assessing the success of programs through the establishment of benchmarks. The Secretary is authorized to terminate grant funding to an eligible entity in accordance with the process and performance metrics recommended by the Council. A grant recipient may use not more than 10 percent of grant funds awarded under this subsection for the purpose of funding project management costs of the grant program. An eligible entity that receives a grant under this subsection shall use the grant funds to supplement, and not to supplant, non-Federal funds that would, in the absence of such grant funds, be made available for activities described in this section. Any funds transferred to the Secretary under paragraph
(1)for a fiscal year that are not expended by the end of such fiscal year may be expended in any subsequent fiscal year through fiscal year 2024. Any funds transferred under paragraph
(1)that are remaining at the end of the grant program's authorization under this subsection shall be transferred to the Treasury for deficit reduction. Not later than 120 days after the date of the enactment of this Act, the Council shall convene and develop recommendations for criteria in awarding grants to eligible entities under subsection (b). The Council shall— submit the recommendations described in paragraph
(1)to the Secretary; and release the recommendations to the public. The recommendations submitted by the Council under paragraph
(2)shall be determined by a majority vote of Council members. The Council shall develop and provide to the Secretary recommendations on performance metrics to be used to evaluate grants awarded under subsection (b). Not later than 180 days before the expiration of the grant program authorized under subsection (b), the Council shall evaluate the effect of the grant program on accelerating the commercialization of technology originating from federally funded research or research and development. The evaluation under subparagraph
(A)shall include— the recommendation of the Council as to whether the grant program should be continued or terminated; quantitative data related to the effect, if any, that the grant program has had on accelerating the commercialization of technology originating from federally funded research and research and development; and a description of the lessons learned in administering the grant program, and how such lessons could be applied to future efforts to accelerate the commercialization of technology originating from federally funded research or research and development. The results of the evaluation under subparagraph
(A)shall be made available on a public website and submitted to Congress. The Secretary shall notify all institutions of higher education when the evaluation is published and how it can be accessed. Nothing in this section may be construed to alter, modify, or amend any provision of chapter 18 of title 35, United States Code (commonly known as the Bayh-Dole Act ).
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